Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 14, 2014 | |
Document - Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'SKPI | ' |
Entity Registrant Name | 'SKY PETROLEUM, INC. | ' |
Entity Central Index Key | '0001183276 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 76,133,709 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $16,031 | $277,995 |
Total Current Assets | 16,031 | 277,995 |
Investment in oil and gas properties, net | 0 | 0 |
Fixed assets, net | 8,399 | 13,575 |
Deposits and other assets | 11,929 | 11,929 |
Total Assets | 36,359 | 303,499 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 1,124,669 | 2,004,712 |
Accounts payable, related party | 76,560 | 238,344 |
Current portion of long term note payable | 204,404 | 0 |
Accrued interest | 2,992 | 11,704 |
Note payable, related party | 150,000 | 150,000 |
Total Current Liabilities | 1,558,625 | 2,404,760 |
Long term note payable | 78,362 | 0 |
Total Liabilities | 1,636,987 | 2,404,760 |
Stockholders' deficit: | ' | ' |
Common stock, $0.001 par value, 150,000,000 shares authorized, 76,133,709 and 68,133,709 shares issued and 76,383,704 and 68,383,709 outstanding, respectively | 76,134 | 68,134 |
Additional paid-in capital | 43,730,330 | 43,316,055 |
Obligations due from Shareholders, related party | -156,000 | 0 |
Accumulated deficit | -53,071,092 | -53,305,450 |
Total Stockholders' deficit: | -1,600,628 | -2,101,261 |
Total Liabilities and Stockholders’ Deficit | 36,359 | 303,499 |
Series A Preferred Stock [Member] | ' | ' |
Stockholders' deficit: | ' | ' |
Preferred stock | 0 | 0 |
Series B Preferred Stock [Member] | ' | ' |
Stockholders' deficit: | ' | ' |
Preferred stock | $7,820,000 | $7,820,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | 31-May-14 | Dec. 31, 2013 | 31-May-12 | Oct. 31, 2011 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 08, 2010 |
Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | |||||||
Preferred stock, par value | ' | ' | ' | ' | ' | ' | $0.00 | $0.00 | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | ' | ' | ' | ' | 10,000,000 | 10,000,000 | 5,000,000 | 5,000,000 | ' | 5,000,000 |
Preferred stock, shares issued | ' | 100,000 | ' | ' | ' | ' | ' | ' | 3,863,636 | 3,863,636 | ' | ' |
Preferred stock, shares outstanding | ' | ' | ' | ' | ' | ' | 0 | 0 | 3,863,636 | 3,863,636 | 3,863,636 | ' |
Common stock, par value | $0.00 | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 150,000,000 | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | 76,133,709 | ' | ' | 68,133,709 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | 76,383,709 | ' | ' | 68,383,709 | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Oil revenues | $0 | $0 | $0 | $0 |
Expenses: | ' | ' | ' | ' |
Depreciation | 1,136 | 2,551 | 5,176 | 7,651 |
Arbitration expense | 0 | 0 | 0 | 941,314 |
Legal and accounting | 46,344 | 27,042 | 164,892 | 611,905 |
Travel | 44,068 | 33,800 | 44,068 | 252,725 |
Consulting services | 5,636 | 53,510 | 54,727 | 170,067 |
Impairment expense of oil & gas investment in Albania | 0 | 0 | 0 | 10,205,220 |
Gain on settlement of accounts payable | 0 | 0 | -760,202 | 0 |
Other general and administrative | 116,448 | 138,541 | 244,022 | 379,409 |
Total expenses (income) | 213,632 | 255,444 | -247,317 | 12,568,291 |
Net operating income (loss) | -213,632 | -255,444 | 247,317 | -12,568,291 |
Interest income (expense) | -6,059 | -8,578 | -12,959 | -8,578 |
Net income (loss) | ($219,691) | ($264,022) | $234,358 | ($12,576,869) |
Basic earnings (loss) per share - net income | $0 | $0 | $0 | ($0.18) |
Weighted average number of common shares outstanding: Basic | 76,383,709 | 68,383,709 | 71,988,105 | 68,383,709 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $234,358 | ($12,576,869) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation | 5,176 | 7,651 |
Share based compensation | 22,275 | 35,356 |
Amortization of debt discount | 4,082 | 0 |
Impairment of oil & gas investment in Albania | 0 | 10,205,220 |
Gain on settlement of accounts payable | -760,202 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Other current assets | 0 | 152,746 |
Accounts payable and accrued liabilities | 38,347 | 775,123 |
Net cash used in operating activities | -455,964 | -1,400,773 |
Cash flows from financing activities: | ' | ' |
Proceeds from convertible debt issuance | 0 | 150,000 |
Proceeds from issuance of shares | 244,000 | ' |
Payments on debt | -50,000 | 0 |
Net cash provided by financing activities | 194,000 | 150,000 |
Net decrease in cash and cash equivalents | -261,964 | -1,250,773 |
Cash and cash equivalents at the beginning of period | 277,995 | 1,546,058 |
Cash and cash equivalents at the end of period | 16,031 | 295,285 |
Supplemental disclosures of cash flow information: | ' | ' |
Total non-cash exchange of accounts payable for debt | 350,000 | 0 |
Total cash paid for interest - related party | $17,589 | $0 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization and Basis of Presentation | ' |
Organization and Basis of Presentation | |
The Company was organized on August 22, 2002 under the laws of the State of Nevada, as The Flower Valet. On December 20, | |
2004 the Company amended its articles of incorporation to change its name to Seaside Explorations, Inc. Subsequently, on March 28, 2005 the Company changed its name to Sky Petroleum, Inc. ("Sky", "Sky Petroleum", or "Company"). The Company has four wholly-owned subsidiaries, two incorporated in Cyprus: Sastaro Limited (“Sastaro”) and Bekata Limited (Bekata”) which owns 100% of Sastaro, of which the companies relate to our Mubarek field operations, and a third Sky Petroleum (Albania) Inc., ("Sky Petroleum Albania") a Cayman Islands corporation, incorporated for the purposes of holding and operating interests in Albania. The Company owns 100% of Sky Petroleum UK Limited (the "JV Sub"), incorporated in England and Wales which owns 75% of Hyde Resources Ltd. (the "JV Corporation"). The purpose of the JV Corporation is to obtain licenses and to conduct technical, environmental and exploration due diligence; raise capital and enter into one or more joint venture projects (each a “JVC Project”) for the purposes of conducting, exploration, development and commercialization of oil and gas project in an Area of Interest. The Company is engaged in the exploration and development of oil and natural gas properties of others under arrangements in which we finance the costs in exchange for interests in the oil or natural gas revenue generated by the properties. Such arrangements are commonly referred to as farm-ins to us, or farm-outs by the property owners farming out to us. | |
The Company cannot be certain that its existing sources of cash will be adequate to meet our liquidity requirements. However, management has implemented plans to improve liquidity through slowing or stopping certain planned expenditures and negotiations with creditors to reduce its debt obligations. management plans to obtain funding through equity, debt or other security offerings. There can be no assurance that the capital raising efforts will be successful or that our results of operations will materially improve in either the short-term or long-term and accordingly, we may be unable to meet our obligations as they become due. | |
Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in this Form 10- Q Quarterly Report pursuant to certain rules and regulations of the Securities and Exchange Commission ("SEC"). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
A fundamental principle of the preparation of financial statements in accordance with generally accepted accounting principles is the assumption that an entity will continue in existence as a going concern, which contemplates continuity of operations and the realization of assets and settlement of liabilities occurring in the ordinary course of business. However, this principle is applicable to all entities except for entities in liquidation or entities for which liquidation appears imminent. In accordance with this requirement, our policy is to prepare our consolidated financial statements on a going concern basis unless we intend to liquidate or have no other alternative but to liquidate. The Company's consolidated financial statements have been prepared on a going concern basis and do not reflect any adjustments that might specifically result from the outcome of this uncertainty. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the | |
United States of America ("U.S. GAAP") pursuant to the rules and regulations of the SEC and stated in US dollars. | |
Basis of Consolidation | |
The financial statements present the consolidated accounts of the Company and its wholly owned subsidiaries, Bekata, Sastaro | |
and Sky Petroleum Albania and Sky Petroleum UK Limited (which owns 75% of Hyde Resources Ltd). All intercompany account balances and transactions have been eliminated. | |
Nature of Operations | |
The Company's focus is on the acquisition, development and exploitation of long-lived oil and natural gas reserves and, to a lesser extent, exploration for new oil and natural gas reserves. | |
Property and Equipment | |
Oil and natural gas properties: | |
The Company uses the full cost method of accounting for its oil and natural gas producing activities. Accordingly, all costs associated with acquisition, exploration, and development of oil and natural gas reserves, including directly related overhead costs, are capitalized. Management and service fees received under contractual arrangements, if any, are treated as reimbursement of costs, offsetting the costs incurred to provide those services. | |
Depletion is provided using the units-of-production method based upon estimates of proved oil and natural gas reserves with oil | |
and natural gas production being converted to a common unit of measure based upon their relative energy content. Investments | |
in 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 carrying | |
value of the assets is reduced accordingly. Once the assessment of unproved properties is complete and when major development projects are evaluated, the costs previously excluded from amortization are transferred to the full cost pool and amortization begins. | |
Under the full cost method of accounting, the net book value of oil and natural gas properties, less related deferred income taxes, may not exceed a calculated “ceiling”. The ceiling limitation is the discounted estimated after-tax future net cash flows from proved oil and natural gas properties. In calculating future net cash flows, current prices and costs are generally held constant indefinitely. The net book value of oil and natural gas properties, less related deferred income taxes is compared to the ceiling on a quarterly and annual basis. Any excess of the net book value, less related deferred income taxes, is generally written off as an expense. Under rules and regulations of the SEC, all or a portion of the excess above the ceiling may not be written off if, subsequent to the end of the quarter or year but prior to the release of the financial results, prices have increased sufficiently that all or a portion of such excess above the ceiling would not have existed if the increased prices were used in the calculations. | |
As of September 30, 2014, the net carrying value of the Company's acquisition and development costs for oil and gas projects in | |
Albania was $0. | |
Sales of proved and unproved properties are accounted for as an adjustment of capitalized costs with no gain or loss recognized, | |
unless such adjustments would significantly alter the relationship between capitalized costs and proved oil and natural gas reserves, in which case the gain or loss is recognized. | |
Other Property and Equipment: | |
Maintenance and repairs are charged to operations. Renewals and betterments are capitalized to the appropriate property and | |
equipment accounts. | |
Upon retirement or disposition of assets other than oil and natural gas properties, the cost and related accumulated depreciation | |
are removed from the accounts with the resulting gains or losses, if any, recognized in income. Depreciation of other property and equipment is computed using the straight-line method based on the estimated useful lives of the property and equipment. | |
Income Taxes | |
Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. | |
Undistributed earnings of the Company's foreign subsidiaries are considered to be indefinitely reinvested and, accordingly, no | |
provision for U.S. federal income taxes has been provided thereon. Upon distribution of those earnings in the form of dividends | |
or otherwise, the Company may be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and | |
withholding taxes payable to the foreign countries. | |
The Company's wholly owned subsidiaries have prepared required foreign tax returns that were due for the years ended | |
December 31, 2005 through 2012. The Company has accrued approximately $33,000. This amount includes potential tax | |
liabilities, penalties and interest which will be due upon filing the returns with the appropriate countries. | |
Stock-Based Compensation | |
The Company measures all share-based payments, including grants of employee stock options, using a fair-value based method | |
in accordance with U.S. GAAP. The cost of services received in exchange for awards of equity instruments is recognized in the consolidated statement of operations based on the grant date fair value of those awards amortized over the requisite service period. | |
Use of Estimates in the Preparation of Consolidated Financial Statements | |
Preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Fair Value of Financial Instruments | |
The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of accounts payable and accrued liabilities approximate their carrying amounts due to the relatively short maturity of these instruments. None of these instruments are held for trading purposes. The carrying value of note payable, related party approximates fair value since this instrument bears market rate of interest. Additional non-interest bearing long term instruments have been reduced by a market interest rate. | |
U.S. GAAP establishes a framework for measuring fair value and requires certain disclosures about fair value measurements. In general, fair values of financial instruments are based upon quoted market prices, where available (Level 1). If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters (Level 2). Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the customer's creditworthiness, among other things, as well as unobservable parameters (Level 3). Any such valuation adjustments are applied consistently over time. | |
Cash Equivalents | |
For purposes of the consolidated statements of cash flows, the Company considers all demand deposits, money market accounts | |
and certificates of deposit purchased with an original maturity of three months or less to be cash equivalents. | |
Revenue Recognition | |
Oil and natural gas revenues are recorded using the sales method, whereby the Company recognizes oil and natural gas revenue | |
based on the amount of oil and natural gas sold to purchasers. As of September 30, 2014 and December 31, 2013, the Company | |
did not have any oil or natural gas imbalances recorded. The Company does not recognize revenues until they are realized or | |
realizable and earned. Revenues are considered realized or realizable and earned when: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the seller's price to the buyer is fixed or determinable; and (iv) collectability is reasonably assured. | |
In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance in this update supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition". Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU No, 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently evaluating the impact of adopting the guidance on our consolidated financial statements. |
Investment_in_Oil_and_Gas_Prop
Investment in Oil and Gas Properties | 9 Months Ended |
Sep. 30, 2014 | |
Extractive Industries [Abstract] | ' |
Investment in Oil and Gas Properties | ' |
Investment in Oil and Gas Properties | |
As of September 30, 2014, the Company's investment in oil and gas properties was zero. | |
On June 24, 2010, Sky entered into a Production Sharing Contract (“PSC”) with the Ministry of Economy, Trade and Energy of | |
Albania, acting through the National Agency of Natural Resources of Albania (“AKBN”). The PSC granted Sky Petroleum exclusive rights to three exploration blocks (Block Four, Block Five and Block Dumre) in the Republic of Albania (the “Concession Area”). The Concession Area covered approximately 1.2 million acres, representing approximately 20% of the landmass of Albania. | |
On December 23, 2011, Sky Petroleum delivered Notice of Arbitration under the Arbitration Rules of the United Nations | |
Commission on Internal Trade Law to National Agency of Natural Resources and to the Ministry of Economy, Trade and Energy of Albania to institute an arbitration proceeding against the Ministry of Economy, Trade and Energy of Albania, acting by and through AKBN, for breach of the PSC in accordance with Article XXI of the PSC. The arbitration proceeding arose out of the alleged termination of the PSC in breach of the expressed termination provisions in the PSC. The Arbitration Tribunal ruled that the PSC was properly terminated. See "Commitments & Contingencies" in Note 7 to the condensed Consolidated Financial Statements for further details. | |
The Company's expenditures related to the Albania exploration blocks consisted of acquisition costs totaling $50,000, and | |
$700,000 for fees to consultants for locating and negotiating the Company's investment in the Albania exploration blocks, | |
$415,220 for fees related to evaluations and assessments of the concession area, and $50,000 towards the $100,000 allocation | |
for training and education for the first year exploration period. In addition, 3 million shares of common stock with a fair value | |
of $1,170,000, plus 3,863,636 Preferred Shares Series B with a value of $7,820,000, were issued to a Consultant for expertise | |
provided to the Company in acquiring and negotiating the acquisition of oil and gas properties. | |
As a result of the ruling Sky Petroleum impaired Investment in Oil and Gas Properties, net, related to acquisition and | |
development costs for oil and gas projects in Albania to $0, and for the year ended December 31, 2013, Sky Petroleum had an | |
impairment charge of $10,205,220; and accrued a liability of $501,511 (EUR 382,774) related to liability arising from the | |
obligation to reimburse AKBN for total fees and expenses in connection with the Arbitration proceeding. As of September 30, 2014, the obligation to pay AKBN remains outstanding. | |
On May 18, 2005, our wholly owned subsidiary Sastaro entered into a Participation Agreement with Buttes Gas and Oil Co. | |
International Inc. (which we refer to as “Buttes”), a wholly-owned subsidiary of Crescent Petroleum Company International | |
Limited (which we refer to as “Crescent”) for the financing of a drilling program in the Mubarek field. The field is an offshore | |
region in a concession area surrounding Abu Musa Island in the Arabian Gulf. Under the terms of the Participation Agreement, | |
the Company participated in a share of the future production revenue by contributing $25 million in drilling and completion | |
costs related to two wells in an off-shore oil and natural gas project in the United Arab Emirates. The operator of the drilling program, Crescent completed the first well in 2006 and the second well in 2007. As of December 31, 2009, the first well produced a total of 150,413 gross barrels, and the second well produced a total of 149,471 gross barrels. Both wells terminated production in 2009. | |
On December 31, 2009, Sastaro received written notice from Buttes that Buttes unilaterally and solely determined that the | |
Mubarek Field had reached the end of its economic life. Buttes also notified Sastaro that the Concession Agreement, dated | |
December 29, 1969, between the His Highness Sheikh Sultan bin Mohamed Al-Qassimi III, The Ruler of Sharjah, UAE and | |
Buttes with respect to the Mubarek Field was terminated. Buttes stated it handed over the Mubarek Field operations and | |
facilities to representatives of His Highness Sheikh Sultan bin Mohamed Al-Qassimi III on December 28, 2009. |
Bank_Guarantee
Bank Guarantee | 9 Months Ended |
Sep. 30, 2014 | |
Bank Guarantee [Abstract] | ' |
Restricted Cash and Bank Guarantee | ' |
Bank Guarantee | |
On August 10, 2011, the Company delivered a bank guarantee in the form of a letter of credit under the terms of the PSC with AKBN. In connection with the bank guarantee, Sky Petroleum made a cash deposit of $1,500,000 with Texas Citizens Bank N.A. in 2011. The cash deposit was considered restricted cash. | |
The letter of credit was effective through February 22, 2013. The principal under the letter of credit would be reduced every month or three months, as agreed between AKBN and the Company during the First Exploration Period, as defined under the PSC, by an amount equal to the sum spent by the Company on its work program obligations, as defined under the PSC, during such month or three months, such reductions to be effected in accordance with monthly or quarterly written statements issued by AKBN to the Company. As of March 29, 2013 the letter of credit had matured and the proceeds were moved to unrestricted cash. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||||||
Stockholders' Equity | |||||||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||||||
We have authorized 10 million shares of $0.001 par value Preferred Stock. There were no shares of Preferred Stock outstanding as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||
On October 8, 2010, pursuant to the terms of a consulting agreement ("the Consulting Agreement"), dated May 18, 2010, as amended September 29, 2010 and October 3, 2010, by and between the Company and consultant, the Company filed a Certificate of Designation with the Secretary of State for the State of Nevada to designate 5,000,000 shares of the Company's preferred stock as shares of Series B Preferred Stock (the "Series B Preferred Shares"). | |||||||||||||||||||||||||
The Series B Preferred Shares are participating with no preferences or voting rights, and shall not be converted by any holder, in whole or in part for a period of twelve months from the date of initial issuance. Each Series B Preferred Share is convertible into 4.4 shares of common stock of the Company, however, the shares may not be converted into more than 4.99% of beneficial ownership unless the holder waives the beneficial ownership limitation with 61 days notice. | |||||||||||||||||||||||||
In connection with the Series B designation and the consultant agreement, the Company issued 3,863,636 shares, with a fair value of $7,820,000. These shares were issued to the consultant for expertise provided to the Company in acquiring and negotiating the acquisition of oil and gas properties in Albania. As of September 30, 2014 and December 31, 2013, 3,863,636 shares of Series B Preferred Stock were outstanding. | |||||||||||||||||||||||||
On June 25, 2012, the Company issued a stop order notice to its transfer agent under which the transfer agent was instructed to: | |||||||||||||||||||||||||
not to remove the restrictive legends from the share certificates representing the Series B Preferred Shares; not to effect or facilitate the transfer, assignment, conveyance or sale of any of the Series B Preferred Shares; and not to effect the conversion of the Series B Preferred Stock into shares of common stock of the Company, unless the transfer agent receives the expressed written instructions of the Secretary of the Registrant. The Company has determined that consultant breached numerous terms of the Consulting Agreement and committed other actions that resulted in substantial harm and damage to the Company and its shareholders. | |||||||||||||||||||||||||
Common Stock and Stock Options | |||||||||||||||||||||||||
On July 26, 2005, the Company adopted the Sky Petroleum, Inc. Non-U.S. Stock Option Plan (the “Non-U.S. Plan”), effective as of April 1, 2005. The Non-U.S. Plan authorizes the issuance of stock options to acquire up to 10% of the Company's issued and outstanding shares of common stock. | |||||||||||||||||||||||||
On August 25, 2005, the Company adopted the Sky Petroleum, Inc. 2005 U.S. Stock Incentive Plan (the “U.S. Plan”). The U.S. | |||||||||||||||||||||||||
Plan authorizes the issuance of stock options and other awards to acquire up to a maximum of 3,321,600 shares of the Company's common stock (less the number of shares issuable upon exercise of options granted by the Company under all other stock incentive plans on the date of any grant under the U.S. Plan). The U.S. Plan provides for the grant of incentive stock options (within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended), options that are not incentive stock options, stock appreciation rights and various other stock-based grants. | |||||||||||||||||||||||||
On August 7, 2012, the Company granted 300,000 stock options under the Non-US Plan. The options are exercisable at $0.25 per share with vesting over the next three years and were valued at $56,767. | |||||||||||||||||||||||||
The 2012 stock options fair value was determined using the following attributes and assumptions for each separate issuance: share prices ranging from $0.05 to $0.18, risk-free interest rates of approximately 1.55%, expected dividend yields of 0%, expected life of 4 years, and expected volatility of 207% to 291%. The Company estimates forfeitures based on historical experience. | |||||||||||||||||||||||||
For the three and nine months ended September 30, 2014, the Company recorded $6,174 and $18,486, respectively of compensation expense based on its use of the Black Scholes model to estimate the grant-date fair value of these stock option awards. No options were granted or exercised for the three and nine months September 30, 2014. Compensation expense is based upon straight-line amortization of the grant-date fair value over the vesting period of the underlying stock option. In accordance with U.S. GAAP, the fair value of each stock option grant was estimated on the date of the grant, using the Black-Scholes option-pricing model. As of September 30, 2014, there was approximately $30,874 unrecognized compensation expenses related to non-vested stock option agreements. | |||||||||||||||||||||||||
A summary of stock options outstanding as of September 30, 2014, is as follows: | |||||||||||||||||||||||||
Shares Underlying Options Outstanding | Shares Underlying Options Exercisable | ||||||||||||||||||||||||
Range of | Shares | Weighted | Weighted | Shares | Weighted | ||||||||||||||||||||
Exercise Prices | Underlying | Average | Average | Underlying | Average | ||||||||||||||||||||
Options | Remaining | Exercise | Options | Exercise | |||||||||||||||||||||
Outstanding | Contractual | Price | Exercisable | Price | |||||||||||||||||||||
Life (Years) | |||||||||||||||||||||||||
$ | 0.18 | 750,000 | 3.7 | $ | 0.18 | 716,667 | $ | 0.18 | |||||||||||||||||
$ | 0.25 | 550,000 | 4.03 | $ | 0.25 | 450,000 | $ | 0.25 | |||||||||||||||||
$ | 0.5 | 200,000 | 2.1 | $ | 0.5 | 200,000 | $ | 0.5 | |||||||||||||||||
$ | 1.29 | 600,000 | 0.99 | $ | 1.29 | 600,000 | $ | 1.29 | |||||||||||||||||
The aggregate intrinsic value of exercisable options as of September 30, 2014 is $0. The aggregate intrinsic value of options outstanding as of September 30, 2014 is $0. | |||||||||||||||||||||||||
The following is a summary of stock option activity for the nine months ended September 30, 2014: | |||||||||||||||||||||||||
Number | Weighted | Weighted Average | |||||||||||||||||||||||
Of Shares | Average | Remaining Contract Life (Years) | |||||||||||||||||||||||
Exercise Price | |||||||||||||||||||||||||
Balance, December 31, 2013 | 2,100,000 | 0.55 | 3.36 | ||||||||||||||||||||||
Options canceled | — | ||||||||||||||||||||||||
Options granted | — | ||||||||||||||||||||||||
Balance at September 30, 2014 | 2,100,000 | 0.55 | 2.86 | ||||||||||||||||||||||
Exercisable at September 30, 2014 | 1,966,667 | $ | 0.57 | 2.79 | |||||||||||||||||||||
Class A Units and Class A Warrants and Class B Units and Class B Warrants | |||||||||||||||||||||||||
In October 2011, the Company initiated subscriptions agreements for a non-brokered private placement to raise $1,000,000. Upon receipt of proceeds the Company issued 4,000,000 Class A Units at $0.25 per unit to investors. Each Class A Unit consisted of one share of common stock of the Company, par value $0.001 and one Class A Warrant. Each Class A Warrant was exercisable to acquire one Class B Unit of the Company at an exercise price of $0.35 per Class B Unit until January 20, 2013, which expired. Each Class B Unit consists of one share of common stock of the Company, par value $0.001 and one Class B Warrant. Each Class B Warrant was exercisable to acquire one common share of the Company, par value $0.001 at an exercise price of $0.60 per Class B Warrant Share until January 20, 2014, which expired. The Company received $860,000 in proceeds prior to the year ended December 31, 2011 for the offering, and received $140,000 in 2012. The Company had received all $1,000,000 in proceeds as of December 31, 2012. | |||||||||||||||||||||||||
In May 2012, the Company initiated subscriptions agreements for a non-brokered private placement to raise $500,000. The | |||||||||||||||||||||||||
Company issued 2,000,000 Class A Units at $0.25 per unit to an investor in May 2012. Each Class A Unit consisted of one share of common stock of the Company, par value $0.001 and one Class A Warrant. Each Class A Warrant was exercisable to acquire one Class B Unit of the Company at an exercise price of $0.35 per Class B Unit until May 14, 2013, which expired. Each Class B Unit consists of one share of common stock of the Company, par value $0.001 and one Class B Warrant. Each Class B Warrant was exercisable to acquire one common share of the Company, par value $0.001 at an exercise price of $0.60 per Class B Warrant Share until May 14, 2014, which expired. The Company received $500,000 in proceeds as of December 31, 2012. | |||||||||||||||||||||||||
Class D Units | |||||||||||||||||||||||||
In May 2014, the Company initiated subscriptions agreements for a non-brokered private placement to raise $400,000. Upon | |||||||||||||||||||||||||
receipt of proceeds the Company will issue up to 8,000,000 Class D Units at $0.05 per unit to investors. Each Class D Unit consists of one share of common stock of the Company, par value US$0.001 (a “Common Share”) and one Class D Warrant (each, a “Class D Warrant”). Each Class D Warrant is exercisable to acquire one common share of the Company, par value US$0.001 at an exercise price of US$0.10 per Class D Warrant Share until May 29, 2016 (the two (2) year anniversary of the Closing Date). A related party invested $325,000 in units and paid in multiple transactions. The first payment was on June 23, 2014 for $55,000. The second payment was on June 25, 2014 for $45,000. A third payment was received on July 7, 2014 for $69,000 leaving a balance of $156,000 as of the date of this filing. A receivable from shareholder of $156,000 is due as of September 30, 2014, see Note 9, Related Party Transactions. Another accredited investor invested $75,000 in units and paid on June 12, 2014. As of September 30, 2014, the 8,000,000 common shares were granted to the investors. | |||||||||||||||||||||||||
In connection with the offering of the Class D Units, the Company issued a reservation order reserving Common Shares for issuance as follows: | |||||||||||||||||||||||||
Warrant Class/ | Number of Shares | Aggregate Exercise | |||||||||||||||||||||||
Exercise Price | Common Stock | Price | |||||||||||||||||||||||
(Reserved) | |||||||||||||||||||||||||
Class D Warrants | 8,000,000 | $800,000 | |||||||||||||||||||||||
(US$0.10) | |||||||||||||||||||||||||
Total | 8,000,000 | $800,000 | |||||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||||
Restricted stock awards are awards of common stock that are subject to the restrictions on transfer and to a risk of forfeiture if the awardee terminates with the Company prior to the lapse of the restrictions. During the six months ended June 30, 2014, the Company issued 100,000 shares of restricted stock. The shares vest 50,000 over 90 days and 50,000 over one year. The fair value of such stock was determined using the closing price on the grant date and compensation expense is recorded over the applicable vesting periods. For the three months ended September 30, 2014 we recognized $3,789 of stock-based compensation expense related to restricted stock awards. As of September 30, 2014 there was approximately $2,211 of unrecognized compensation expense related to restricted stock awards. | |||||||||||||||||||||||||
The following table summarizes the restricted stock activity for the nine months ended September 30, 2014 : | |||||||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||||||
Of Shares | Average | ||||||||||||||||||||||||
Grant Date Fair Value Per Share | |||||||||||||||||||||||||
Nonvested, June 30, 2014 | — | $ | — | ||||||||||||||||||||||
Granted | 100,000 | $ | 0.06 | ||||||||||||||||||||||
Vested | 50,000 | $ | 0.06 | ||||||||||||||||||||||
Canceled/Forfeited | — | ||||||||||||||||||||||||
Nonvested, September 30, 2014 | 50,000 | $ | 0.06 | ||||||||||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
For the three months ended September 30, 2014, the Company had net operating loss carryforwards, accordingly, no provision for income taxes has been recorded. In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets. At September 30, 2014, the Company has accumulated operating losses totaling approximately $60 million. The net operating loss carry forwards will begin to expire in 2020 if not utilized. The Company has recorded net operating losses in each year since its inception through September 30, 2014. Based upon all available objective evidence, including the Company’s loss history, management believes it is more likely than not that, the net deferred assets will not be fully realized. Therefore, the Company has provided a valuation allowance against its deferred tax assets at September 30, 2014. | |
Undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested and, accordingly, no provision for U.S. federal income taxes has been provided thereon. Upon distribution of those earnings in the form of dividends | |
or otherwise, the Company may be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the foreign countries. | |
The Company’s wholly owned subsidiaries have prepared the required foreign tax returns for the years ended December 31, 2005 through December 31, 2008. Foreign taxes have been estimated at approximately $33,000 for tax years 2005 through 2008. Management has engaged qualified firms to identify and prepare foreign tax returns for filing for the years ended December 31, 2005 through 2013. The Company believes amounts due, if any, would not be material due to changes in Cyprus tax laws during those periods, and due to net operating losses from foreign operations carried forward. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Contingencies | |
Commitments and Contingencies | |
On May 7, 2013, the Arbitration Tribunal ruled that the PSC was properly terminated on November 17, 2011, and ruled Sky Petroleum to reimburse AKBN for total fees and expenses in connection with the Arbitration proceeding in the amount of EUR 382,774 ($501,511). As a result of the ruling Sky Petroleum impaired Investment in Oil and Gas Properties, net, related to acquisition and development costs for oil and gas projects in Albania to $0, and for the period ended September 30, 2013, Sky Petroleum had an impairment charge of $10,205,220; and accrued a liability of $501,511 (EUR 382,774) related to liability arising from the obligation to reimburse AKBN for total fees and expenses in connection with the Arbitration proceeding. We have not had sufficient funds to pay this award and have received demands for payment from the Tribunal. | |
The Company has guaranteed to, the due and punctual performance of all obligations of the JV Sub under or in connection with the JV Agreement if and when they become performable in accordance with the terms of the joint venture agreement (the "Guaranteed Obligations"). The Company further agreed to indemnify in full and on demand from and against all and any losses, costs and expenses suffered or incurred arising out of, or in connection with: (a) any failure of the JV Sub to perform or discharge the Guaranteed Obligations; or (b) any of the Guaranteed Obligations being or becoming totally or partially unenforceable by reason of illegality, incapacity, lack or exceeding of powers, ineffectiveness or execution or any other matters; but the Company's obligations or liability under the indemnity shall be no greater than the JV Sub's obligations or liability under the JV Agreement. As of September 30, 2014 no obligation have risen and no activity has occurred within the JV Sub. |
Note_Payable_Related_Party_Tra
Note Payable, Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Note Payable, Related Party Transactions [Abstract] | ' |
Note Payable, Related Party Transactions | ' |
Note Payable, Related Party Transactions | |
On January 8, 2013, Mark Rachovides, Director of the Company, gave proceeds in the amount of $150,000 for a convertible | |
promissory note at 8% to mature on January 8, 2014. The note converts to 600,000 shares of Common Stock of the Company. | |
Subsequent to the period-end, the note was extended to May 8, 2015. | |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
In May 2014, OceanRidge Investments S.A., a company controlled by Karim Jobanputra, the Company's Chairman and Interim Principal Executive Officer, was issued share certificates representing 6,500,000 Class D Units representing shares of common stock at US$0.05 per unit for aggregate consideration of US$325,000 in proceeds and one Class D Warrant. Each Class D Warrant is exercisable to acquire one common share of the Company, par value US$0.001 (a “Class D Warrant Share”) at an exercise price of US$0.10 per Class D Warrant Share until May 29, 2016 (the two (2) year anniversary of the Closing Date). | |
As of September 30, 2014, OceanRidge, paid the subscription price as follows: $169,000 in cash ($55,000 on June 23, 2014; $45,000 on June 25, 2014 and $69,000 on July 7, 2014) and $156,000 was considered a receivable from shareholder. |
LongTerm_Note_Payable
Long-Term Note Payable | 9 Months Ended |
Sep. 30, 2014 | |
Notes Payable [Abstract] | ' |
Long-Term Note Payable | ' |
Long-Term Note Payable | |
Effective May 15, 2014, the Company and Dorsey & Whitney LLP , ("Dorsey") entered into a Fee Settlement Arrangement to | |
settle an obligation for professional fees for services rendered and for expenses and other disbursement through April 30, 2014 in an amount of $1,088,886. On the terms and subject to the conditions of this Agreement, the Company agreed to pay Dorsey an aggregate of $350,000 (the "Settlement Payment") in full satisfaction of these obligations. The Settlement Payment will be paid as follows: (a) $50,000 on or before May 30, 2014 (paid), and (b) $300,000 paid in eighteen (18) monthly installments of $16,667 beginning on September 1, 2014: provided, however, the Company will pay the balance of the settlement payment on the earlier of (i) the date the Company raises financing in the aggregate of $5,000,000 or more in one or more transactions or (ii) the date the Company closes an Acquisition Transaction. "Acquisition Transaction" means (i) any sale of equity securities or securities convertible into equity securities of the Company; (ii) any merger, consolidation, statutory share exchange or acquisition transaction involving the Company or any material subsidiary of the Company; (iii) any sale of substantially all of the assets of the Company or any material subsidiary of the Company; (iv) any similar transaction involving the issuance, cancellation or restructuring of equity securities of the Company unless, following the completion of such transaction, the then existing shareholder of Company own or control, directly or indirectly, at least 50% of the voting power or liquidation rights of Company or the successor of such merger, consolidation or statutory share exchange. This settlement resulted in the Company having a gain of $760,202 for the three and nine months September 30, 2014. | |
The debt obligation is at a 0% interest rate, management calculated the imputed interest rates at 8% which is the rate the Company is currently paying for other debt obligations. Unamortized debt discount in the amount of $17,378 is netted against the note payable and is displayed net of discount. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Earnings Per Share | |||||||||||||||||
U.S. GAAP provides for the calculation of basic and diluted earnings per share. Basic earnings per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of shares outstanding for the period. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of the Company. | |||||||||||||||||
Potential common stock shares consist of shares that may arise from outstanding dilutive common stock warrants and options (the number of which is computed using the "treasury stock method" and from outstanding convertible debentures (the number of which is computed using the "if converted method". | |||||||||||||||||
Diluted EPS considers the potential dilution that could occur if the Company's outstanding common stock options, warrants, and convertible debentures were converted into common stock that then shared in the Company's earnings (as adjusted for interest expense) that would longer occur if the debentures were converted. | |||||||||||||||||
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | ||||||||||||||
Basic earnings per share: | |||||||||||||||||
Net Income | $ | (219,691 | ) | $ | (264,022 | ) | $ | 234,358 | $ | (12,576,869 | ) | ||||||
Average number of common shares outstanding | 76,383,709 | 68,383,709 | 71,988,105 | 68,383,709 | |||||||||||||
Basic earnings per share - net income | $ | — | $ | — | $ | — | $ | (0.18 | ) | ||||||||
Net Income | (219,691 | ) | (264,022 | ) | 234,358 | (12,576,869 | ) | ||||||||||
Adjustment to net earnings from assumed conversion of debentures (1) | — | — | — | — | |||||||||||||
Adjusted Net Income | $ | (219,691 | ) | $ | (264,022 | ) | $ | 234,358 | $ | (12,576,869 | ) | ||||||
Average number of common share outstanding: | |||||||||||||||||
Common shares outstanding | 76,383,709 | 68,383,709 | 71,988,105 | 68,383,709 | |||||||||||||
Potential dilutive shares resulting from exercise of warrant and options (2) | — | — | — | — | |||||||||||||
Potential dilutive shares resulting from conversion of debentures (3) | — | — | — | — | |||||||||||||
Total average number of common shares outstanding used for dilution | 76,383,709 | 68,383,709 | 71,988,105 | 68,383,709 | |||||||||||||
Diluted earnings per share - net income | $ | — | $ | — | $ | — | $ | (0.18 | ) | ||||||||
(1) Represents interest expense on dilutive convertible debentures that would not occurred if they were assumed converted. | |||||||||||||||||
(2) All outstanding warrants and options were not considered for the EPS computation as they are anti-dilutive. these totaled 2,100,000 outstanding options, 8,000,000 outstanding warrants, and 100,000 in restricted stock. | |||||||||||||||||
(3) Convertible debentures (principal) outstanding at the three and nine months ended September 30, 2014 totaling $150,000 were convertible into common stock at a price of $0.25 per share in 2014. These have been excluded from earnings per share due to being anti-dilutive. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
The Board approved unanimously to appoint Ms. Muriel Dube to the Board of Directors of the Company as of November 12, 2014. Ms. Dube has been granted options to purchase 300,000 shares of the Corporation's common stock at an exercise price of $0.08 per share, vesting in arrears one-third (1/3) annually over the course of three years from the effective date of the appointment. The Stock Options shall terminate on November 11, 2021, which is seven (7) years from the date of the grant. Additionally, Ms. Dube was granted 50,000 shares of common stock of the Corporation as a signing bonus. The shares were not issued as of the date of this filing. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Consolidation | ' |
The financial statements present the consolidated accounts of the Company and its wholly owned subsidiaries, Bekata, Sastaro | |
and Sky Petroleum Albania and Sky Petroleum UK Limited (which owns 75% of Hyde Resources Ltd). All intercompany account balances and transactions have been eliminated. | |
Property and Equipment | ' |
Oil and natural gas properties: | |
The Company uses the full cost method of accounting for its oil and natural gas producing activities. Accordingly, all costs associated with acquisition, exploration, and development of oil and natural gas reserves, including directly related overhead costs, are capitalized. Management and service fees received under contractual arrangements, if any, are treated as reimbursement of costs, offsetting the costs incurred to provide those services. | |
Depletion is provided using the units-of-production method based upon estimates of proved oil and natural gas reserves with oil | |
and natural gas production being converted to a common unit of measure based upon their relative energy content. Investments | |
in 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 carrying | |
value of the assets is reduced accordingly. Once the assessment of unproved properties is complete and when major development projects are evaluated, the costs previously excluded from amortization are transferred to the full cost pool and amortization begins. | |
Under the full cost method of accounting, the net book value of oil and natural gas properties, less related deferred income taxes, may not exceed a calculated “ceiling”. The ceiling limitation is the discounted estimated after-tax future net cash flows from proved oil and natural gas properties. In calculating future net cash flows, current prices and costs are generally held constant indefinitely. The net book value of oil and natural gas properties, less related deferred income taxes is compared to the ceiling on a quarterly and annual basis. Any excess of the net book value, less related deferred income taxes, is generally written off as an expense. Under rules and regulations of the SEC, all or a portion of the excess above the ceiling may not be written off if, subsequent to the end of the quarter or year but prior to the release of the financial results, prices have increased sufficiently that all or a portion of such excess above the ceiling would not have existed if the increased prices were used in the calculations. | |
As of September 30, 2014, the net carrying value of the Company's acquisition and development costs for oil and gas projects in | |
Albania was $0. | |
Sales of proved and unproved properties are accounted for as an adjustment of capitalized costs with no gain or loss recognized, | |
unless such adjustments would significantly alter the relationship between capitalized costs and proved oil and natural gas reserves, in which case the gain or loss is recognized. | |
Other Property and Equipment: | |
Maintenance and repairs are charged to operations. Renewals and betterments are capitalized to the appropriate property and | |
equipment accounts. | |
Upon retirement or disposition of assets other than oil and natural gas properties, the cost and related accumulated depreciation | |
are removed from the accounts with the resulting gains or losses, if any, recognized in income. Depreciation of other property and equipment is computed using the straight-line method based on the estimated useful lives of the property and equipment. | |
Income Taxes | ' |
Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. | |
Undistributed earnings of the Company's foreign subsidiaries are considered to be indefinitely reinvested and, accordingly, no | |
provision for U.S. federal income taxes has been provided thereon. Upon distribution of those earnings in the form of dividends | |
or otherwise, the Company may be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and | |
withholding taxes payable to the foreign countries. | |
The Company's wholly owned subsidiaries have prepared required foreign tax returns that were due for the years ended | |
December 31, 2005 through 2012. The Company has accrued approximately $33,000. This amount includes potential tax | |
liabilities, penalties and interest which will be due upon filing the returns with the appropriate countries. | |
Stock-Based Compensation | ' |
The Company measures all share-based payments, including grants of employee stock options, using a fair-value based method | |
in accordance with U.S. GAAP. The cost of services received in exchange for awards of equity instruments is recognized in the consolidated statement of operations based on the grant date fair value of those awards amortized over the requisite service period. | |
Use of Estimates in the Preparation of Consolidated Financial Statements | ' |
Preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Fair Value of Financial Instruments | ' |
The Company calculates the fair value of its assets and liabilities which qualify as financial instruments and includes this additional information in the notes to consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of accounts payable and accrued liabilities approximate their carrying amounts due to the relatively short maturity of these instruments. None of these instruments are held for trading purposes. The carrying value of note payable, related party approximates fair value since this instrument bears market rate of interest. Additional non-interest bearing long term instruments have been reduced by a market interest rate. | |
U.S. GAAP establishes a framework for measuring fair value and requires certain disclosures about fair value measurements. In general, fair values of financial instruments are based upon quoted market prices, where available (Level 1). If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters (Level 2). Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the customer's creditworthiness, among other things, as well as unobservable parameters (Level 3). Any such valuation adjustments are applied consistently over time. | |
Cash Equivalents | ' |
For purposes of the consolidated statements of cash flows, the Company considers all demand deposits, money market accounts | |
and certificates of deposit purchased with an original maturity of three months or less to be cash equivalents. | |
Revenue Recognition | ' |
Oil and natural gas revenues are recorded using the sales method, whereby the Company recognizes oil and natural gas revenue | |
based on the amount of oil and natural gas sold to purchasers. As of September 30, 2014 and December 31, 2013, the Company | |
did not have any oil or natural gas imbalances recorded. The Company does not recognize revenues until they are realized or | |
realizable and earned. Revenues are considered realized or realizable and earned when: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred or services have been rendered; (iii) the seller's price to the buyer is fixed or determinable; and (iv) collectability is reasonably assured. | |
In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance in this update supersedes the revenue recognition requirements in Topic 605, "Revenue Recognition". Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU No, 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently evaluating the impact of adopting the guidance on our consolidated financial statements. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Stock Option Outstanding | ' | ||||||||||||||||||||||||
A summary of stock options outstanding as of September 30, 2014, is as follows: | |||||||||||||||||||||||||
Shares Underlying Options Outstanding | Shares Underlying Options Exercisable | ||||||||||||||||||||||||
Range of | Shares | Weighted | Weighted | Shares | Weighted | ||||||||||||||||||||
Exercise Prices | Underlying | Average | Average | Underlying | Average | ||||||||||||||||||||
Options | Remaining | Exercise | Options | Exercise | |||||||||||||||||||||
Outstanding | Contractual | Price | Exercisable | Price | |||||||||||||||||||||
Life (Years) | |||||||||||||||||||||||||
$ | 0.18 | 750,000 | 3.7 | $ | 0.18 | 716,667 | $ | 0.18 | |||||||||||||||||
$ | 0.25 | 550,000 | 4.03 | $ | 0.25 | 450,000 | $ | 0.25 | |||||||||||||||||
$ | 0.5 | 200,000 | 2.1 | $ | 0.5 | 200,000 | $ | 0.5 | |||||||||||||||||
$ | 1.29 | 600,000 | 0.99 | $ | 1.29 | 600,000 | $ | 1.29 | |||||||||||||||||
Schedule of Stock Options Activity | ' | ||||||||||||||||||||||||
The following is a summary of stock option activity for the nine months ended September 30, 2014: | |||||||||||||||||||||||||
Number | Weighted | Weighted Average | |||||||||||||||||||||||
Of Shares | Average | Remaining Contract Life (Years) | |||||||||||||||||||||||
Exercise Price | |||||||||||||||||||||||||
Balance, December 31, 2013 | 2,100,000 | 0.55 | 3.36 | ||||||||||||||||||||||
Options canceled | — | ||||||||||||||||||||||||
Options granted | — | ||||||||||||||||||||||||
Balance at September 30, 2014 | 2,100,000 | 0.55 | 2.86 | ||||||||||||||||||||||
Exercisable at September 30, 2014 | 1,966,667 | $ | 0.57 | 2.79 | |||||||||||||||||||||
Schedule of Warrants by Class Reserved | ' | ||||||||||||||||||||||||
In connection with the offering of the Class D Units, the Company issued a reservation order reserving Common Shares for issuance as follows: | |||||||||||||||||||||||||
Warrant Class/ | Number of Shares | Aggregate Exercise | |||||||||||||||||||||||
Exercise Price | Common Stock | Price | |||||||||||||||||||||||
(Reserved) | |||||||||||||||||||||||||
Class D Warrants | 8,000,000 | $800,000 | |||||||||||||||||||||||
(US$0.10) | |||||||||||||||||||||||||
Total | 8,000,000 | $800,000 | |||||||||||||||||||||||
Schedule of Unvested Restricted Stock Units Roll Forward | ' | ||||||||||||||||||||||||
The following table summarizes the restricted stock activity for the nine months ended September 30, 2014 : | |||||||||||||||||||||||||
Number | Weighted | ||||||||||||||||||||||||
Of Shares | Average | ||||||||||||||||||||||||
Grant Date Fair Value Per Share | |||||||||||||||||||||||||
Nonvested, June 30, 2014 | — | $ | — | ||||||||||||||||||||||
Granted | 100,000 | $ | 0.06 | ||||||||||||||||||||||
Vested | 50,000 | $ | 0.06 | ||||||||||||||||||||||
Canceled/Forfeited | — | ||||||||||||||||||||||||
Nonvested, September 30, 2014 | 50,000 | $ | 0.06 | ||||||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||||||||||
Diluted EPS considers the potential dilution that could occur if the Company's outstanding common stock options, warrants, and convertible debentures were converted into common stock that then shared in the Company's earnings (as adjusted for interest expense) that would longer occur if the debentures were converted. | |||||||||||||||||
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | ||||||||||||||
Basic earnings per share: | |||||||||||||||||
Net Income | $ | (219,691 | ) | $ | (264,022 | ) | $ | 234,358 | $ | (12,576,869 | ) | ||||||
Average number of common shares outstanding | 76,383,709 | 68,383,709 | 71,988,105 | 68,383,709 | |||||||||||||
Basic earnings per share - net income | $ | — | $ | — | $ | — | $ | (0.18 | ) | ||||||||
Net Income | (219,691 | ) | (264,022 | ) | 234,358 | (12,576,869 | ) | ||||||||||
Adjustment to net earnings from assumed conversion of debentures (1) | — | — | — | — | |||||||||||||
Adjusted Net Income | $ | (219,691 | ) | $ | (264,022 | ) | $ | 234,358 | $ | (12,576,869 | ) | ||||||
Average number of common share outstanding: | |||||||||||||||||
Common shares outstanding | 76,383,709 | 68,383,709 | 71,988,105 | 68,383,709 | |||||||||||||
Potential dilutive shares resulting from exercise of warrant and options (2) | — | — | — | — | |||||||||||||
Potential dilutive shares resulting from conversion of debentures (3) | — | — | — | — | |||||||||||||
Total average number of common shares outstanding used for dilution | 76,383,709 | 68,383,709 | 71,988,105 | 68,383,709 | |||||||||||||
Diluted earnings per share - net income | $ | — | $ | — | $ | — | $ | (0.18 | ) | ||||||||
(1) Represents interest expense on dilutive convertible debentures that would not occurred if they were assumed converted. | |||||||||||||||||
(2) All outstanding warrants and options were not considered for the EPS computation as they are anti-dilutive. these totaled 2,100,000 outstanding options, 8,000,000 outstanding warrants, and 100,000 in restricted stock. | |||||||||||||||||
(3) Convertible debentures (principal) outstanding at the three and nine months ended September 30, 2014 totaling $150,000 were convertible into common stock at a price of $0.25 per share in 2014. These have been excluded from earnings per share due to being anti-dilutive. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Details) | Sep. 30, 2014 |
Sky Petroleum UK Limited [Member] | ' |
Productive Wells [Line Items] | ' |
Noncontrolling interest, ownership percentage by parent | 100.00% |
Hyde Resources Limited [Member] | ' |
Productive Wells [Line Items] | ' |
Noncontrolling interest, ownership percentage by parent | 75.00% |
Sastaro [Member] | ' |
Productive Wells [Line Items] | ' |
Wholly-owned subsidiary, ownership percentage | 100.00% |
Bekata Limited [Member] | ' |
Productive Wells [Line Items] | ' |
Wholly-owned subsidiary, ownership percentage | 100.00% |
Sky Petroleum (Albania) Inc. [Member] | ' |
Productive Wells [Line Items] | ' |
Wholly-owned subsidiary, ownership percentage | 100.00% |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | 96 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-14 | Dec. 31, 2013 | 31-May-12 | Oct. 31, 2011 | Dec. 31, 2013 | 7-May-13 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | 31-May-14 | Jun. 26, 2014 | Jun. 26, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Mubarek Wells [Member] | ALBANIA [Member] | ALBANIA [Member] | ALBANIA [Member] | Hyde Resources Limited [Member] | Class D Warrants (US$0.10) [Member] | Over Ninety Day Period [Member] | Over One Year Period [Member] | Common Stock [Member] | Warrant [Member] | Restricted Stock [Member] | ||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling interest, ownership percentage by parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' |
Cost-method investments, aggregate carrying amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of investment | 0 | 0 | 0 | 10,205,220 | ' | ' | ' | ' | ' | ' | 10,205,220 | 10,205,220 | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in oil and gas properties, net | 0 | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Foreign taxes recorded | ' | ' | ' | ' | 33,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable stock options | 1,966,667 | ' | 1,966,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equivalents, common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | 8,000,000 | 100,000 |
Stock options granted | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | 50,000 | ' | ' | ' |
Increasing in capital | ' | ' | ' | ' | ' | $400,000 | ' | $500,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of warrant or right, reserved | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' |
Common stock, par value | $0.00 | ' | $0.00 | ' | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | 76,383,709 | ' | 76,383,709 | ' | ' | ' | 68,383,709 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment_in_Oil_and_Gas_Prop1
Investment in Oil and Gas Properties (Details) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | 7-May-13 | Jun. 24, 2010 | Dec. 31, 2013 | Sep. 30, 2014 | Apr. 05, 2011 | 7-May-13 | 7-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2009 | Dec. 31, 2009 | Dec. 31, 2013 | 18-May-05 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Mubarek Wells [Member] | ALBANIA [Member] | ALBANIA [Member] | ALBANIA [Member] | ALBANIA [Member] | ALBANIA [Member] | ALBANIA [Member] | ALBANIA [Member] | ALBANIA [Member] | ALBANIA [Member] | Mubarek H2 [Member] | Mubarek K2-ST4 [Member] | Albania Exploration Blocks [Member] | Buttes [Member] | Orsett [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | ||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Production Sharing Breach of Contract [Member] | Production Sharing Breach of Contract [Member] | Production Sharing Breach of Contract [Member] | Production Sharing Breach of Contract [Member] | Boe | Boe | USD ($) | Mubarek Wells [Member] | USD ($) | USD ($) | USD ($) | |||||||
blocks | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | ||||||||||||||||||
acre | |||||||||||||||||||||||
Productive Wells [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost-method investments, aggregate carrying amount | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of exploration blocks | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of land | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of land, percentage of landmass | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount allocated for training and education | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount paid toward allocation for training and education | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' |
Consulting fees paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' |
Evaluations and assessments fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 415,220 | ' | ' | ' | ' |
Common stock, shares issued | 76,133,709 | ' | 76,133,709 | ' | ' | 68,133,709 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' |
Common stock, value issued | 76,134 | ' | 76,134 | ' | ' | 68,134 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,170,000 | ' | ' |
Preferred stock, shares issued | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,863,636 | 3,863,636 |
Preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,820,000 | 7,820,000 |
Investment in oil and gas properties, net | 0 | ' | 0 | ' | ' | 0 | ' | 0 | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of investment | 0 | 0 | 0 | 10,205,220 | ' | ' | ' | 10,205,220 | ' | 10,205,220 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement, expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 501,511 | 382,774 | 501,511 | 382,774 | ' | ' | ' | ' | ' | ' | ' |
Contribution in drilling and completion costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25,000,000 | ' | ' | ' |
Number of produced gross barrels | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,413 | 149,471 | ' | ' | ' | ' | ' |
Bank_Guarantee_Details
Bank Guarantee (Details) (Letter of Credit [Member], Texas Citizens Bank N.A. [Member], USD $) | Aug. 10, 2011 |
In Thousands, unless otherwise specified | |
Letter of Credit [Member] | Texas Citizens Bank N.A. [Member] | ' |
Productive Wells [Line Items] | ' |
Expenditure commitments | $1,500 |
Stockholders_Equity_Preferred_
Stockholders' Equity (Preferred Stock) (Narrative) (Details) (USD $) | Jun. 30, 2014 | Oct. 08, 2010 | Sep. 30, 2014 | Dec. 31, 2013 | Oct. 08, 2010 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Maximum [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | ||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | 10,000,000 | 10,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | ' |
Preferred stock, par value | ' | ' | $0.00 | $0.00 | ' | ' | ' | ' |
Preferred stock, shares outstanding | ' | ' | 0 | 0 | ' | 3,863,636 | 3,863,636 | 3,863,636 |
Preferred share converted into common stock | ' | ' | ' | ' | 4.4 | ' | ' | ' |
Percent of beneficial ownership that can be converted | ' | 4.99% | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued | 100,000 | ' | ' | ' | ' | 3,863,636 | 3,863,636 | ' |
Preferred stock | ' | ' | $0 | $0 | ' | $7,820,000 | $7,820,000 | ' |
Stockholders_Equity_Common_Sto
Stockholders' Equity (Common Stock and Stock Options) (Narrative) (Details) (USD $) | 9 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Aug. 07, 2012 | Sep. 30, 2014 | Aug. 25, 2005 | Sep. 30, 2014 | Sep. 30, 2014 | |
Non-U.S. Plan [Member] | Non-U.S. Plan [Member] | U.S. Plan [Member] | Stock Option [Member] | Stock Option [Member] | |||||
Maximum [Member] | |||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent to be acquired of entity issued and outstanding common stock | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' |
Common stock, shares authorized | 150,000,000 | ' | ' | 150,000,000 | ' | ' | 3,321,600 | ' | ' |
Stock options granted | 0 | ' | ' | ' | 300,000 | ' | ' | ' | ' |
Range of exercise prices | ' | ' | $0.05 | ' | $0.25 | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | '3 years | ' | ' | ' | ' |
Range of exercise prices, maximum | ' | ' | $0.18 | ' | ' | ' | ' | ' | ' |
Risk-free interest rates | ' | ' | 1.55% | ' | ' | ' | ' | ' | ' |
Expected dividend yields | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' |
Expected life | ' | ' | '4 years | ' | ' | ' | ' | ' | ' |
Expected volatility, minimum | ' | ' | 207.00% | ' | ' | ' | ' | ' | ' |
Expected volatility, maximum | ' | ' | 291.00% | ' | ' | ' | ' | ' | ' |
Share based compensation | $22,275 | $35,356 | ' | ' | ' | ' | ' | $6,174 | $18,486 |
Unrecognized compensation expenses related to non-vested option agreements | 30,874 | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of exercisable shares | 0 | ' | ' | ' | 56,767 | ' | ' | ' | ' |
Aggregate intrinsic value of options outstanding | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Schedule_o
Stockholders' Equity (Schedule of Stock Option Outstanding) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 9 Months Ended | |||||
Sep. 30, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
$0.18 [Member] | $0.25 [Member] | $0.50 [Member] | $1.29 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Underlying Options Outstanding, Range of Exercise Prices | ' | ' | $0.05 | ' | $0.18 | $0.25 | $0.50 | $1.29 |
Shares Underlying Options Outstanding | 2,100,000 | ' | ' | 2,100,000 | 750,000 | 550,000 | 200,000 | 600,000 |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life (Years) | '2 years 10 months 10 days | '3 years 4 months 10 days | ' | ' | '3 years 8 months 12 days | '4 years 0 months 11 days | '2 years 1 month 6 days | '11 months 27 days |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $0.55 | ' | ' | $0.55 | $0.18 | $0.25 | $0.50 | $1.29 |
Shares Underlying Options Exercisable | ' | ' | ' | ' | 716,667 | 450,000 | 200,000 | 600,000 |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $0.57 | ' | ' | ' | $0.18 | $0.25 | $0.50 | $1.29 |
Stockholders_Equity_Schedule_o1
Stockholders' Equity (Schedule of Stock Options Activity) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Mar. 31, 2013 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Number Of Shares, Beginning Balance | ' | ' | 2,100,000 |
Weighted Average Exercise Price, Beginning Balance | ' | ' | $0.55 |
Options cancelled | ' | ' | 0 |
Number of Shares, Options granted | ' | ' | 0 |
Number Of Shares, Ending Balance | 2,100,000 | ' | 2,100,000 |
Weighted Average Exercise Price, Ending Balance | $0.55 | ' | $0.55 |
Weighted Average Remaining Contract Life (Years), Outstanding | '2 years 10 months 10 days | '3 years 4 months 10 days | ' |
Weighted Average Exercise Price, Exercisable | $0.57 | ' | $0.57 |
Weighted Average Remaining Contract Life (Years), Exercisable | '2 years 9 months 15 days | ' | ' |
Stockholders_Equity_Class_A_Un
Stockholders' Equity (Class A Units and Class A Warrants and Class B Units and Class B Warrants) (Narrative) (Details) (USD $) | 9 Months Ended | 12 Months Ended | 15 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | 31-May-14 | Dec. 31, 2013 | 31-May-12 | Oct. 31, 2011 | 31-May-12 | Oct. 31, 2011 | 31-May-12 | Oct. 31, 2011 | 31-May-12 | 31-May-14 | Sep. 30, 2014 | 29-May-14 | Sep. 30, 2014 | Jul. 07, 2014 | 31-May-14 | Jun. 12, 2014 | 31-May-14 | 31-May-14 | 31-May-14 | |
Class A Units [Member] | Class A Units [Member] | Class B Units [Member] | Class B Units [Member] | Class B Warrants (US$0.60) [Member] | Class D Warrants (US$0.10) [Member] | Class D Warrants (US$0.10) [Member] | Class D Warrants (US$0.10) [Member] | Class D Warrants [Member] | Class D Warrants [Member] | Class D Warrants [Member] | Class D Warrants [Member] | Class D Warrants [Member] | Payment on June 23, 2014 [Member] | Payment on June 25, 2014 [Member] | |||||||||
Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Investor [Member] | Investor [Member] | Class D Warrants [Member] | Class D Warrants [Member] | ||||||||||||||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increasing in capital | ' | ' | ' | ' | $400,000 | ' | $500,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | $325,000 | ' | ' | ' | ' | ' | ' | ' |
Class of warrant or right, reserved | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | 2,000,000 | 4,000,000 | ' | ' | ' | 8,000,000 | ' | 6,500,000 | ' | ' | 8,000,000 | ' | ' | ' | ' |
Exercise price of warrants or rights | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | $0.25 | $0.35 | $0.35 | $0.60 | ' | ' | $0.05 | ' | ' | $0.10 | ' | $0.05 | ' | ' |
Common stock, par value | $0.00 | ' | ' | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of Units from Related Party, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 325,000 | ' | ' | ' | ' |
Payment from Related Party for purchase of units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | 55,000 | 45,000 |
Receivable from Shareholders or Affiliates for Issuance of Capital Stock | 156,000 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due from Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 69,000 | ' | ' | ' | ' | ' |
Subscriptions receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 156,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock | $244,000 | $140,000 | $860,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | 76,133,709 | ' | ' | ' | ' | 68,133,709 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | 76,383,709 | ' | ' | ' | ' | 68,383,709 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Schedule_o2
Stockholders' Equity (Schedule of Warrants by Class) (Details) (USD $) | 31-May-14 | 31-May-12 | 31-May-14 |
Class B Warrants (US$0.60) [Member] | Class D Warrants (US$0.10) [Member] | ||
Class of Warrant or Right [Line Items] | ' | ' | ' |
Warrant Class/Exercise Price (per Unit) | ' | $0.60 | ' |
Number of Shares Common Stock (Reserved) | 8,000,000 | ' | 8,000,000 |
Aggregate Exercise Price | $800,000 | ' | $800,000 |
Stockholders_Equity_Restricted
Stockholders' Equity (Restricted Stock) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 26, 2014 | Jun. 26, 2014 | Jun. 26, 2014 | Jun. 26, 2014 | |
Restricted Stock [Member] | Restricted Stock [Member] | Over Ninety Day Period [Member] | Over One Year Period [Member] | Minimum [Member] | Minimum [Member] | |||||
Over Ninety Day Period [Member] | Over One Year Period [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' |
Share based compensation | $22,275 | $35,356 | ' | ' | $3,789 | ' | ' | ' | ' | ' |
Unrecognized compensation expense | ' | ' | ' | ' | $2,211 | ' | ' | ' | ' | ' |
Number Of Shares, Beginning Balance | 2,100,000 | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Stock options granted | 0 | ' | ' | ' | ' | 100,000 | 50,000 | 50,000 | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | '1 year |
Vested | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' |
Canceled/Forfeited | 0 | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Number Of Shares, Ending Balance | 2,100,000 | ' | ' | ' | 50,000 | 50,000 | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value Per Share, Granted | ' | ' | ' | ' | ' | $0.06 | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value Per Share, Vested | ' | ' | ' | ' | ' | $0.06 | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value Per Share, Nonvested | $0.55 | ' | ' | $0.55 | $0.06 | $0.06 | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended | 96 Months Ended |
Sep. 30, 2014 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Accumulated operating losses | $60,000,000 | ' |
Expiration of operating loss carry forward | 31-Dec-20 | ' |
Foreign taxes recorded | ' | $33,000 |
Contingencies_Details
Contingencies (Details) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | 7-May-13 | Dec. 31, 2013 | Sep. 30, 2014 | 7-May-13 | 7-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ALBANIA [Member] | ALBANIA [Member] | ALBANIA [Member] | ALBANIA [Member] | ALBANIA [Member] | ALBANIA [Member] | ALBANIA [Member] | |
USD ($) | USD ($) | USD ($) | Production Sharing Breach of Contract [Member] | Production Sharing Breach of Contract [Member] | Production Sharing Breach of Contract [Member] | Production Sharing Breach of Contract [Member] | ||||||
USD ($) | EUR (€) | USD ($) | EUR (€) | |||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement, expense | ' | ' | ' | ' | ' | ' | ' | ' | $501,511 | € 382,774 | $501,511 | € 382,774 |
Investment in oil and gas properties, net | 0 | ' | 0 | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' |
Impairment of investment | 0 | 0 | 0 | 10,205,220 | ' | 10,205,220 | 10,205,220 | ' | ' | ' | ' | ' |
Settlement liabilities | ' | ' | ' | ' | ' | ' | ' | ' | $382,774 | € 501,511 | ' | ' |
Note_Payable_Related_Party_Tra1
Note Payable, Related Party Transactions (Details) (USD $) | 0 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jan. 08, 2013 |
Related Party Transaction [Line Items] | ' |
Proceeds from issuance of debt | $150 |
Convertible Notes Payable [Member] | ' |
Related Party Transaction [Line Items] | ' |
Interest rate, stated percentage | 8.00% |
Debt instrument, convertible, number of equity instruments | 600,000 |
Related_Party_Transactions_Rel
Related Party Transactions Related Party Transactions (Details) (USD $) | Sep. 30, 2014 | 31-May-14 | Dec. 31, 2013 | 31-May-12 | Oct. 31, 2011 | 31-May-14 | Jul. 07, 2014 | 31-May-14 | Jun. 25, 2014 | Jun. 23, 2014 | Sep. 30, 2014 | 29-May-14 |
Class D Warrants (US$0.10) [Member] | Class D Warrants [Member] | Class D Warrants [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | ||||||
Class D Warrants (US$0.10) [Member] | Class D Warrants (US$0.10) [Member] | Class D Warrants (US$0.10) [Member] | Class D Warrants (US$0.10) [Member] | |||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of warrant or right, reserved | ' | 8,000,000 | ' | ' | ' | 8,000,000 | ' | 8,000,000 | ' | ' | ' | 6,500,000 |
Exercise price of warrants or rights | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | $0.05 |
Increasing in capital | ' | $400,000 | ' | $500,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | $325,000 |
Common stock, par value | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Warrants | ' | ' | ' | ' | ' | ' | ' | ' | 45,000 | 55,000 | 169,000 | ' |
Due from Related Parties | ' | ' | ' | ' | ' | ' | 69,000 | ' | ' | ' | ' | ' |
Subscriptions receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $156,000 | ' |
LongTerm_Note_Payable_Details
Long-Term Note Payable (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Dorsey & Whitney LLP, (Dorsey) [Member] | On or before May 30, 2014 [Member] | Beginning on September 1, 2014 [Member] | Subordinated Debt Obligations [Member] | Other Debt Obligations [Member] | |||||
Dorsey & Whitney LLP, (Dorsey) [Member] | Dorsey & Whitney LLP, (Dorsey) [Member] | ||||||||
installment | |||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due to Related Parties | ' | ' | ' | ' | $1,088,886 | ' | ' | ' | ' |
Gain related to settlement of accounts payable | 0 | 0 | 760,202 | 0 | ' | ' | ' | ' | ' |
Effective percentage | ' | ' | ' | ' | ' | ' | ' | 0.00% | 8.00% |
Unamortized debt discount | 17,378 | ' | 17,378 | ' | ' | ' | ' | ' | ' |
Settlement payment | ' | ' | ' | ' | 350,000 | 50,000 | 300,000 | ' | ' |
Number of settlement periodic payment | ' | ' | ' | ' | ' | ' | 18 | ' | ' |
Professional fees, periodic payment, amount | ' | ' | ' | ' | ' | ' | 16,667 | ' | ' |
Minimum amount raised in a single or more transactions in order to make settlement payment | ' | ' | ' | ' | $5,000,000 | ' | ' | ' | ' |
Minimum percent of voting power or liquidation rights owned | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Net Income | ($219,691) | ($264,022) | $234,358 | ($12,576,869) |
Average number of common shares outstanding | 76,383,709 | 68,383,709 | 71,988,105 | 68,383,709 |
Basic earnings per share - Net Income | $0 | $0 | $0 | ($0.18) |
Adjustment to net earning from assumed conversion of debentures | 0 | 0 | 0 | 0 |
Adjusted Net Income | -219,691 | -264,022 | 234,358 | -12,576,869 |
Potential dilutive shares resulting from exercise of warrant and options | 0 | 0 | 0 | 0 |
Potential dilutive shares resulting from conversion of debentures | 0 | 0 | 0 | 0 |
Total average number of common shares outstanding used for dilution | 76,383,709 | 68,383,709 | 71,988,105 | 68,383,709 |
Diluted earnings per share - net income | $0 | $0 | $0 | ($0.18) |
Convertible debentures, outstanding amount | $150,000 | ' | $150,000 | ' |
Convertible Debentures, Conversion Price per Common Share | $0.25 | ' | $0.25 | ' |
Restricted Stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Equivalents, Common Stock, Shares Outstanding | 100,000 | ' | 100,000 | ' |
Warrant [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Equivalents, Common Stock, Shares Outstanding | 8,000,000 | ' | 8,000,000 | ' |
Common Stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Equivalents, Common Stock, Shares Outstanding | 2,100,000 | ' | 2,100,000 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], Ms. Muriel Dube [Member], Common Stock [Member], USD $) | 0 Months Ended |
Nov. 12, 2014 | |
Subsequent Event [Line Items] | ' |
Shares granted | 300,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted in Period, Exercise Price | $0.08 |
Vesting period | '3 years |
Signing Bonus [Member] | ' |
Subsequent Event [Line Items] | ' |
Shares granted | 50,000 |