Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2018 | Apr. 17, 2019 | |
Statements Line Items | ||
Document Type | 20-F | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 | |
Trading Symbol | dxi | |
Entity Registrant Name | DXI Energy Inc. | |
Entity Central Index Key | 0001323838 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 149,658,420 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well Known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | FY | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current | ||
Cash and cash equivalents | $ 26 | $ 1,010 |
Accounts receivable | 185 | 388 |
Prepaids and deposits | 58 | 29 |
Current Assets | 269 | 1,427 |
Non-current | ||
Deposits | 215 | 212 |
Exploration and evaluation assets | 8 | |
Property and equipment | 2,681 | 17,162 |
Total Assets | 3,165 | 18,809 |
Current | ||
Accounts payable and accrued liabilities | 2,057 | 1,291 |
Loans from related parties | 1,542 | 1,458 |
Convertible debt | 32 | |
Flow-through shares liability | 93 | |
Financial contract liability | 6,752 | |
Current Liabilities | 3,631 | 9,594 |
Non-current | ||
Loans from related parties | 3,553 | 3,150 |
Convertible debt | 356 | |
Decommissioning liability | 3,808 | 3,971 |
Total Liabilities | 11,348 | 16,715 |
SHAREHOLDERS' EQUITY (DEFICIT) | ||
Share capital | 101,715 | 101,715 |
Contributed surplus | 13,934 | 13,752 |
Deficit | (127,477) | (115,845) |
Accumulated other comprehensive income | 3,645 | 2,472 |
Total Shareholders' Equity (Deficit) | (8,183) | 2,094 |
Total Liabilities and Shareholders' Equity (Deficit) | $ 3,165 | $ 18,809 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
REVENUES | |||
Gross revenues | $ 1,951 | $ 2,816 | $ 4,808 |
Royalties | (207) | (336) | (735) |
Total Revenues, net of royalties | 1,744 | 2,480 | 4,073 |
EXPENSES | |||
Operating and transportation | 1,811 | 2,085 | 2,971 |
Amortization, depletion and impairment losses | 15,728 | 2,628 | 4,493 |
General and administrative | 1,082 | 1,673 | 1,571 |
Financing expenses | 1,025 | 1,039 | 1,579 |
Stock based compensation | 77 | 8 | 188 |
Foreign exchange loss (gain) | 605 | (486) | (212) |
Loss on disposal of E&E assets | 175 | ||
Change in fair value of derivative liability | (153) | (1,073) | |
Loss on debt extinguishment | 918 | ||
Gain on settlement of financial contract liability | (6,857) | ||
Adjustment to financial contract liability | (63) | ||
Total Expenses | 13,471 | 7,712 | 9,629 |
Loss before income taxes and other items | (11,727) | (5,232) | (5,556) |
Other income | 95 | 23 | 70 |
Loss for the year | (11,632) | (5,209) | (5,486) |
Items that may be subsequently reclassified to profit or loss: | |||
Foreign currency translation adjustment | 1,173 | (973) | (673) |
Comprehensive loss | $ (10,459) | $ (6,182) | $ (6,159) |
Loss per common share - basic and diluted | $ (0.11) | $ (0.08) | $ (0.13) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY - CAD ($) $ in Thousands | Share Capital [Member] | Contributed Surplus [Member] | Deficit [Member] | Accumulated other comprehensive income (loss) [Member] | Total |
Beginning Balance at Dec. 31, 2015 | $ 97,162 | $ 10,438 | $ (105,150) | $ 4,118 | $ 6,568 |
Beginning Balance (Shares) at Dec. 31, 2015 | 36,509,953 | ||||
Statements Line Items | |||||
Shares issued via private placements, net of issuance costs | 949 | $ 949 | |||
Shares issued via private placements, net of issuance costs (Shares) | 8,298,333 | ||||
Stock-based compensation | 188 | $ 188 | |||
Loss | (5,486) | (5,486) | |||
Foreign currency translation adjustment | (673) | (673) | |||
Ending Balance at Dec. 31, 2016 | 98,111 | 10,626 | (110,636) | 3,445 | $ 1,546 |
Ending Balance (Shares) at Dec. 31, 2016 | 44,808,286 | ||||
Statements Line Items | |||||
Shares issued via private placements, net of issuance costs | 3,718 | $ 3,718 | |||
Shares issued via private placements, net of issuance costs (Shares) | 58,797,802 | ||||
Flow-through share liability | (114) | $ (114) | |||
Contributed surplus related to value of conversion feature on loans from related parties | 3,118 | 3,118 | |||
Stock-based compensation | 8 | 8 | |||
Loss | (5,209) | (5,209) | |||
Foreign currency translation adjustment | (973) | (973) | |||
Ending Balance at Dec. 31, 2017 | 101,715 | 13,752 | (115,845) | 2,472 | $ 2,094 |
Ending Balance (Shares) at Dec. 31, 2017 | 103,606,088 | ||||
Statements Line Items | |||||
Contributed surplus related to value of conversion feature on convertible debt | 105 | $ 105 | |||
Stock-based compensation | 77 | 77 | |||
Loss | (11,632) | (11,632) | |||
Foreign currency translation adjustment | 1,173 | 1,173 | |||
Ending Balance at Dec. 31, 2018 | $ 101,715 | $ 13,934 | $ (127,477) | $ 3,645 | $ (8,183) |
Ending Balance (Shares) at Dec. 31, 2018 | 103,606,088 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | |||
Loss for the period | $ (11,632,000) | $ (5,209,000) | $ (5,486,000) |
Adjustment for items not affecting cash: | |||
Amortization, depletion and impairment losses | 15,728,000 | 2,628,000 | 4,493,000 |
Stock based compensation | 77,000 | 8,000 | 188,000 |
Non-cash financing expenses | 575,000 | 530,000 | 961,000 |
Non-cash foreign exchange on financial contract liability | 591,000 | (474,000) | (212,000) |
Miscellaneous non-cash items | (93,000) | (25,000) | |
Gain on settlement of financial contract liability | (6,857,000) | ||
Loss on disposal of E&E assets | 175,000 | ||
Change in fair value of derivative liability | (153,000) | (1,073,000) | |
Loss on debt extinguishment | 918,000 | ||
Adjustment to financial contract liability | (63,000) | ||
Cash flows used in operations | (1,611,000) | (1,777,000) | (1,017,000) |
Changes in operating working capital | 720,000 | 219,000 | 667,000 |
Total Cash Flows used in Operating Activities | (891,000) | (1,558,000) | (350,000) |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | |||
Deposits | (3,000) | 34,000 | 48,000 |
E&E expenditures | (7,000) | (2,000) | |
Additions to property and equipment | (781,000) | (449,000) | (528,000) |
Proceeds from sale of E&E assets | 84,000 | ||
Reclamation expenditures | (15,000) | (3,000) | (53,000) |
Changes in investing working capital | 214,000 | 32,000 | 178,000 |
Total Cash Flows used in Investing Activities | (585,000) | (393,000) | (273,000) |
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | |||
Repayment of bank credit facility | (147,000) | ||
Advance of loans from related parties | 450,000 | 350,000 | |
Repayment of loans from related parties | (300,000) | ||
Convertible debt, net of financing costs | 486,000 | ||
Shares issued for cash, net of share issue costs | 2,332,000 | 884,000 | |
Changes in financing working capital | 6,000 | 38,000 | (61,000) |
Total Cash Flows from Financing Activities | 492,000 | 2,820,000 | 726,000 |
CHANGE IN CASH AND CASH EQUIVALENTS | (984,000) | 869,000 | 103,000 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 1,010,000 | 141,000 | 38,000 |
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 26,000 | $ 1,010,000 | $ 141,000 |
CORPORATE INFORMATION
CORPORATE INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
CORPORATE INFORMATION [Text Block] | NOTE 1 – CORPORATE INFORMATION DXI Energy Inc. (the “Company”) is a public company trading on the Toronto Stock Exchange (“TSX”) under the symbol “DXI” in Canada and the OTCQB (“OTCQB”) under the symbol “DXIEF” in the United States. The Company is in the business of exploring and developing energy properties with a focus on oil and gas in North America. The address of its registered office is 520 – 999 Canada Place, Vancouver, British Columbia. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Dejour Energy (USA) Corp. (“Dejour USA”), incorporated in Nevada, Dejour Energy (Alberta) Ltd. (“DEAL”), incorporated in Alberta, and 0855524 B.C. Ltd., incorporated in British Columbia. All intercompany transactions are eliminated upon consolidation. The consolidated financial statements are presented in Canadian dollars, which is also the functional currency of the parent company. These consolidated financial statements were authorized and approved for issuance by the Board of Directors on April 16, 2019. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
BASIS OF PRESENTATION [Text Block] | NOTE 2 – BASIS OF PRESENTATION (a) Basis of presentation The consolidated financial statements (the “financial statements”) are presented under International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and the International Financial Reporting Interpretations Committee (“IFRIC”). A summary of the Company’s significant accounting policies under IFRS is presented in note 3. (b) Going concern The financial statements were prepared on a going concern basis. The going concern basis assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company incurred a loss of $11.6 million during the year ended December 31, 2018 and as of that date has a working capital deficiency of $3.4 million and an accumulated deficit of $127.5 million. The Company’s ability to continue as a going concern is dependent upon attaining profitable operations and sourcing additional equity and debt capital from financiers, other than the present non-arm’s length lenders to the Company, to provide the Company with sufficient capital to meet capital expenditure commitments and continue exploration and development activities. The present non-arm’s length lenders to the Company have informed the Company they will not provide any significant additional capital to the Company. There is no assurance that future financing and exploration and development activities will be successful. These material uncertainties cast substantial doubt upon the Company’s ability to continue as a going concern. These consolidated financial statements do not reflect the adjustments to the carrying values of assets and liabilities, the reported revenues and expenses, and the balance sheet classifications used that would be necessary if the going concern assumptions were not appropriate. (c) Basis of measurement The consolidated financial statements have been prepared on the historical cost basis except for certain financial liabilities are measured at fair value, as explained in the accounting policies in note 3. (d) Use of estimates and judgments The preparation of consolidated financial statements in compliance with IFRS requires management to make certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4. (e) Functional and presentation currency Subsidiaries measure items using the currency of the primary economic environment in which the entity operates with entities having a functional currency different from the parent company, translated into Canadian dollars. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block] | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies used in the preparation of the consolidated financial statements are as follows: (a) Basis of consolidation The consolidated financial statements include the financial statements of the Company and subsidiaries controlled by the Company. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Company obtains control, and continue to be consolidated until the date that such control ceases. All intra-group balances, transactions, income and expenses are eliminated in full on consolidation. The financial statements of the subsidiaries are prepared using the same reporting period as the parent company, using consistent accounting policies. Exploration, development, and production activities may be conducted jointly with others and accordingly, the Company accounts for the assets, liabilities, revenues and expenses related to its interest in the joint operations from the date that joint control commences until the date that it ceases. (b) Foreign currency The financial statements of entities within the consolidated group that have a functional currency different from that of the Company (“foreign operations”) are translated into Canadian dollars as follows: assets and liabilities – at the closing rate as at the balance sheet date, and income and expenses – at the average rate of the period (as this is considered a reasonable approximation to actual rates). All resulting changes are recognized in other comprehensive loss as cumulative translation differences. When the Company disposes of its entire interests in a foreign operation, or loses control, joint control, or significant influence over a foreign operation, the foreign currency gains or losses accumulated in other comprehensive loss related to the foreign operation are recognized in profit or loss. If an entity disposes of part of an interest in a foreign operation which remains a subsidiary, a proportionate amount of foreign currency gains or losses accumulated in other comprehensive income related to the subsidiary are reallocated between controlling and non-controlling interests. Transactions in foreign currencies are translated into the functional currency at exchange rates at the date of the transactions. Foreign currency differences arising on translation are recognized in profit or loss. Foreign currency monetary assets and liabilities are translated at the functional currency exchange rate at the balance sheet date. Non- monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Exchange differences recognized in the profit or loss statement of the Company’s entities’ separate financial statements on the translation of monetary items forming part of the Company’s net investment in the foreign operation are reclassified to foreign exchange reserve on consolidation. (c) Cash and cash equivalents Cash and cash equivalents consist of cash and highly liquid investments having maturity dates of three months or less from the date of acquisition that are readily convertible to cash. (d) Resource properties Exploration and evaluation (“E&E”) costs Pre-license costs are expensed in the period in which they are incurred. E&E costs are initially capitalized as either tangible or intangible E&E assets according to the nature of the assets acquired. Intangible E&E assets may include costs of license acquisition, technical services and studies, seismic acquisition, exploration drilling and testing, and directly attributable overhead and administration expenses. The costs are accumulated in cost centers by well, field or exploration area pending determination of technical feasibility and commercial viability. E&E assets are assessed for impairment if sufficient data exists to determine technical feasibility and commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For purposes of impairment testing, E&E assets are assessed at the individual asset level. If it is not possible to estimate the recoverable amount of the individual asset, exploration and evaluation assets are allocated to cash-generating units (“CGU’s”). Such CGU’s are not larger than an operating segment. Exploration assets are not depleted and are carried forward until technical feasibility and commercial viability of extracting a mineral resource is considered to be determinable or sufficient/continued progress is made in assessing the commercial viability of the E&E assets. The technical feasibility and commercial viability of extracting a mineral resource is considered to be determinable when proven reserves are determined to exist. A review of each exploration license or field is carried out, at least annually, to confirm whether the Company intends further appraisal activity or to otherwise extract value from the property. When this is no longer the case, the costs are written off. Upon determination of proven reserves, E&E assets attributable to those reserves are first tested for impairment and then reclassified from E&E assets to oil and natural gas properties. The Company may occasionally enter into arrangements, whereby the Company will transfer part of an oil and gas interest, as consideration, for an agreement by the transferee to meet certain E&E expenditures which would have otherwise been undertaken by the Company. The Company does not record any expenditures made by the transferee. Any cash consideration received from the agreement is credited against the costs previously capitalized to the oil and gas interest given up by the Company, with any excess cash accounted for as a gain on disposal. Oil and gas properties and other property and equipment costs Items of property and equipment, which include oil and gas development and production assets, are measured at cost less accumulated depletion and depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of the decommissioning obligation and, for qualifying assets, borrowing costs. The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. When significant parts of an item of property and equipment, including oil and natural gas interests, have different useful lives, they are accounted for as separate items (major components). Depletion and Depreciation Oil and gas development and production assets are depreciated, by significant component, on a unit-of-production basis over proved and probable reserve volumes, taking into account estimated future development costs necessary to bring those reserves into production. Future development costs are estimated by taking into account the level of development required to produce the reserves. These estimates are reviewed by independent reserve engineers at least annually. Changes in reserve estimates are dealt with prospectively. Proved and probable reserves are estimated using independent reserve engineer reports and represent the estimated quantities of oil, natural gas and gas liquids. Other property and equipment are depreciated based on a declining balance basis, which approximates the estimated useful lives of the asset, at the following rates: Office furniture and equipment 20% Computer equipment 45% Vehicle 30% Leasehold improvements term of lease Depreciation methods, useful lives and residual values are reviewed at each reporting date. Other property and equipment are allocated to each of the Company’s primary cash-generating units, based on estimated future net revenue, consistent with the recoverable values applied in the most recent impairment test. Derecognition The carrying amount of an item of property and equipment is derecognized on disposal, when no beneficial interest is retained, or when no future economic benefits are expected from its use or disposal. The gain or loss arising from derecognition is included in profit or loss when the item is derecognized and is measured as the difference between the net disposal proceeds, if any, and the carrying amount of the item. The date of disposal is the date when the Company is no longer subject to the risks of ownership and is no longer the beneficiary of the rewards of ownership. Where the asset is derecognized, the date of disposal coincides with the date the revenue from the sale of the asset is recognized. On the disposition of an undivided interest in a property, where an economic benefit remains, the Company recognizes the farm out only on the receipt of consideration by reducing the carrying amount of the related property with any excess recognized in profit or loss of the period. Major maintenance and repairs The costs of day-to-day servicing are expensed as incurred. These primarily include the costs of labor, consumables and small parts. Material costs of replaced parts, turnarounds and major inspections are capitalized as it is probable that future economic benefits will be received. The carrying value of a replaced part is derecognized in accordance with the derecognition principles above. Jointly controlled operations The Company conducts its oil and gas development and production activities through jointly controlled operations and the accounts reflect only its interest in such activities. A joint arrangement exists where the parties take their share of the output and is accounted for by recognizing the Company’s share of assets and liabilities jointly owned and incurred, and the recognition of its share of revenue and expenses of the joint operation. At December 31, 2018, the Company’s material joint operation in Canada is Drake/Woodrush. The principal activity is oil and gas production and the ownership percentage is 99% (December 31, 2017 – 99%). (e) Provisions A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the liability. Decommissioning liability A decommissioning liability is recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of obligation can be made. A corresponding amount equivalent to the provision is also recognized as part of the cost of the related asset. The amount recognized is management’s estimated cost of decommissioning, discounted to its present value using a risk free rate. Changes in the estimated timing of decommissioning or decommissioning cost estimates are dealt with prospectively by recording an adjustment to the provision and a corresponding adjustment to the related asset unless the change arises from production. The unwinding of the discount on the decommissioning provision is included as a finance cost. Actual costs incurred upon settlement of the decommissioning liability are charged against the provision to the extent the provision was established. (f) Earnings (loss) per share Basic earnings (loss) per share figures have been calculated using the weighted average number of common shares outstanding during the respective periods. Diluted earnings (loss) per common share is calculated by dividing the profit or loss applicable to common shares by the sum of the weighted average number of common shares issued and outstanding and all additional common shares that would have been outstanding if potentially dilutive instruments were converted. The diluted earnings (loss) per share figure is equal to that of basic earnings (loss) per share since the effects of options and warrants have been excluded as they are anti-dilutive. (g) Share based payments Where equity-settled share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Performance vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognized over the vesting period is based on the number of options that will eventually vest. Where equity instruments are granted to employees, they are recorded at the instruments grant date fair value. Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to non-employees, they are recorded at the fair value of the goods or services received in profit or loss, unless they are related to the issuance of shares. Amounts related to the issuance of shares are recorded as a reduction of share capital. When the value of goods or services received in exchange for the share-based payment to non-employees cannot be reliably estimated, the fair value of the share-based payment is measured by use of a valuation model to measure the value of the equity instruments issued. The expected life used in the model is adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations. All equity-settled share based payments are reflected in contributed surplus, until exercised. Upon exercise, shares are issued from treasury and the amount reflected in contributed surplus is credited to share capital along with any consideration received. Where a grant of options is cancelled or settled during the vesting period, excluding forfeitures when vesting conditions are not satisfied, the Company immediately accounts for the cancellation as an acceleration of vesting and recognizes the amount that otherwise would have been recognized for services received over the remainder of the vesting period. Any payment made to the employee on the cancellation is accounted for as the repurchase of an equity interest except to the extent the payment exceeds the fair value of the equity instrument granted, measured at the repurchase date. Any such excess is recognized as an expense. (h) Revenue recognition The Company adopted IFRS 15, Revenue from Contracts with Customers, as of January 1, 2018, under the modified retrospective method where the cumulative effect is recognized at the date of initial application. The adoption of IFRS 15 did not have a material effect on the financial statements. Comparative figures did not require restatement as a result of this adoption. The Company derives revenue from product sales contracts with its marketers (one for each commodity type) for the delivery of oil, natural gas, and natural gas liquids (“Goods”). The contract with the marketers has an open-ended term that may last one month to several years and may operate on an evergreen basis. Payment is due on the contract near the end of the month following the month in which the product was delivered. Applying the five-step model required by IFRS 15, Revenue from Contracts with Customers, revenue is recognized as follows for these contracts: Step in Model Product Sales Identify the contract The contractual arrangement executed with the customer, specifying the quantity and market price. Identify distinct performance obligations Contract is for the delivery of the Goods on the specified date. Estimate transaction price Transaction price is based on current commodity market prices. Allocate transaction price to performance obligations The transaction price is allocated to the Goods delivery. Recognize revenue as performance obligations are satisfied Revenue to be recognized at a point in time once control passes to the customer (i.e. when the oil or gas is delivered or picked up by the customer). Costs related to processing the oil and delivering the oil to pipelines are netted from the payment received from the customer. These costs are recognized separately in the statement of comprehensive loss at the same time as revenue recognition. The costs associated with production-based royalty expenses and operating and transportation costs are recognized in the same period in which the related revenue is earned and recorded. (i) Financial instruments As the Company adopted IFRS 9, Financial Instruments, as of January 1, 2018 cumulatively without restatement of comparative figures, different policies apply to the 2018 period presented than the comparative periods. IFRS 9 supersedes IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 includes revised guidance on the classification and measurement of financial assets and liabilities; and new guidance for measuring impairment on financial assets. The adoption of IFRS 9 did not have a material effect on the financial statements. The Company’s financial instruments include cash and cash equivalent, accounts receivables, accounts payable and accrued liabilities, loans from related parties and convertible debt. Financial assets At December 31, 2018, financial assets were initially recorded at fair value and are designated into one of the following three categories: amortized cost, fair value through profit or loss (“FVTPL”), or fair value through other comprehensive loss (“FVOCI”). These assets arise principally from the provision of goods and services to customers. These assets are initially recognized at fair value plus directly attributable transaction costs. Subsequently, they are recorded at amortized cost using the effective interest rate method, less any impairment losses. A financial asset is classified as FVOCI if the asset is held with the objective to both collect contractual cash flows and sell the financial asset. All other financial assets are measured at FVTPL. As at December 31, 2018, the Company held no financial instrument in both FVTPL category and FVOCI category. IFRS 9 replaces the incurred loss model in IAS 39 with an expected credit loss (ECL) model. This applies to financial assets measured at amortized cost. Under IFRS 9, credit losses are recognized in general, earlier than under IAS 39. The Company's financial assets measured at amortized cost are cash and cash equivalents and accounts receivable. The Company has four customers and the ECL related to the customers is nil. At December 31, 2017, financial assets (cash and cash equivalents and accounts receivable) were initially recorded at fair value and were subsequently measured as amortized cost. Financial liabilities The Company classifies its financial instruments into one of two categories, depending on the purpose for which the liability was acquired. • Fair value through profit or loss: this category does not comprise any liabilities at December 31, 2018. These liabilities are classified and measured at fair value through profit and loss. • Other financial liabilities: this category includes accounts payables and accrued liabilities, loans from related parties and convertible debt, which are initially recognized at fair value and subsequently carried at amortized cost using the effective interest method. The Company has derivative financial instruments in the form of warrants issued in US dollars, or with certain adjustment provisions, and contracts entered into to manage its exposure to volatility in commodity prices. Commodity contracts are not used for trading or other speculative purposes. Such derivative financial instruments are initially recognized at fair value at the date at which the derivatives are issued and are subsequently re-measured at fair value. These derivatives do not qualify for hedge accounting and changes in fair value are recognized immediately in profit and loss. For outstanding warrants at each reporting period, the change in the fair value of the liability between reporting periods is recorded in the consolidated statement of comprehensive income (loss). As warrants are exercised, immediately before exercise, the liability on these exercised warrants is re-measured and the valuation change is recorded in the consolidated statement of comprehensive income (loss). Upon exercise, the re-measured warrant liability on these exercised warrants is eliminated and there is an offsetting entry to share capital. Impairment of financial assets At each reporting date, the Company assesses the expected credit losses (“ECL”) associated with its financial assets to determine whether any financial asset is impaired. (j) Impairment For accounts receivable, the Company applies the simplified approach required by IFRS 9, which requires the ECL allowances to be recognized at the initial recognition of the receivables. The ECL for financial assets are based on the assumptions about risk of default and expected credit losses. The Company uses judgment in making these assumptions and selecting inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Non-financial assets For the purpose of impairment testing, assets are grouped together in CGUs, which are the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets. The carrying value of long-term assets is reviewed at each period for indicators that the carrying value of an asset or a CGU may not be recoverable. The Company uses geographical proximity, geological similarities, analysis of shared infrastructure, commodity type, assessment of exposure to market risks and materiality to define its CGUs. If indicators of impairment exist, the recoverable amount of the asset or CGU is estimated. If the carrying value of the asset or CGU exceeds the recoverable amount, the asset or CGU is written down with an impairment recognized in profit or loss. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Fair value is determined to be the amount for which the asset could be sold in an arm’s length transaction. For resource properties, fair value less costs to sell may be determined by using discounted future net cash flows of proved and probable reserves using forecast prices and costs. Value in use is determined by estimating the net present value of future net cash flows expected from the continued use of the asset or CGU. Impairment losses recognized in prior years are assessed at each reporting date for any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimate used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depletion and depreciation, if no impairment loss had been recognized. (k) Taxes Income taxes Income tax expense comprises current and deferred tax. Income tax expense is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized on temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and affects neither accounting profit nor taxable profit. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when the asset is realized or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, when they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Production taxes Royalties, resource rent taxes and revenue-based taxes are accounted for under International Accounting Standards (‘IAS’) 12 when they have characteristics of an income tax. This is considered to be the case when they are imposed under Government authority and the amount is payable based on taxable income, rather than based on quantity produced or as a percentage of revenue, after adjustment for temporary differences. For such arrangements, current and deferred tax is provided on the same basis as described above for other forms of taxation. Obligations arising from royalty arrangements that do not satisfy these criteria are recognized as a reduction of revenues. (l) Share capital The Company’s common shares, stock options, share purchase warrants and flow-through shares are classified as equity instruments only to the extent that they do not meet the definition of a financial liability or financial asset. Incremental costs directly attributable to the issue of equity instruments are shown in equity as a deduction, net of tax, from the proceeds. (m) Flow-through shares The Company will from time to time, issue flow-through common shares to finance a portion of its exploration program. Pursuant to the terms of the flow-through share agreements, these shares transfer the tax deductibility of qualifying resource expenditures to investors. On issuance, the Company separates the flow-through share into i) a flow-through share premium, equal to the estimated premium, if any, investors pay for the flow-through feature, which is recognized as a liability and; ii) share capital. Upon expenditures being incurred, the Company derecognizes the liability and recognizes a deferred income tax recovery for the amount of tax reduction renounced to the shareholders. (n) Future accounting pronouncements Certain pronouncements were issued by “IASB” or “IFRIC” that are mandatory for accounting periods beginning after January 1, 2019 or later periods. The following new accounting standards, amendments to accounting standards and interpretations, have not been early adopted in these consolidated financial statements: IFRS 16, “Leases”: In January 2016, the IASB issued the standard to replace IAS 17 “Leases”. IFRS 16 eliminates the distinction between operating leases and finance leases for lessees and requires the recognition of right-of-use assets and lease liabilities on the balance sheet. The Company will elect to apply the exemptions for short-term leases and leases of low-value assets. Theses leases will not be required to be recognized on the balance sheet. The standard is effective for annual reporting periods beginning on or after January 1, 2019. The Company plans to adopt IFRS 16 on January 1, 2019 using the modified retrospective approach. As at December 31, 2018, the Company continues to evaluate and assess the potential effect of the adoption of IFRS 16 on its consolidated financial statements. The Company anticipates there will be an impact on its consolidated financial statements due to the operating lease commitments as disclosed in note 17. |
CRITICAL ACCOUNTING ESTIMATES A
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS [Text Block] | NOTE 4 - CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The preparation of financial statements in accordance with IFRS requires management to make estimates and judgments that affect reported assets, liabilities, revenues, expenses, gains, and losses. These estimates and judgments are subject to change based on experience and new information. The financial statement areas that require significant estimates and judgments are as follows: Decommissioning liability The Company recognizes decommissioning liabilities for its exploration and evaluation assets and property and equipment. Measurement of the decommissioning liabilities involves estimates and judgements as to the cost and timing of incurrence of future decommissioning programs. It also involves assessment of appropriate discount rates, rates of inflation applicable to future costs and the rate used to measure the accretion charge for each reporting period. Measurement of the liability also reflects current engineering methodologies as well as current and expected future environmental legislation and standards. Actual decommissioning costs will ultimately depend on future market prices for the decommissioning costs which will reflect the market conditions at the time the decommissioning costs are actually incurred. The final cost of the currently recognized decommissioning provisions may be higher or lower than currently provided for. Exploration and evaluation expenditures The application of the Company’s accounting policy for exploration and evaluation expenditures requires judgment in determining whether it is likely that future economic benefits will flow to the Company, which is based on assumptions about future events or circumstances. Estimates and assumptions made may change if new information becomes available. If, after the expenditure is capitalized, information becomes available suggesting that the recovery of the expenditure is unlikely, the amount capitalized is written off in profit or loss in the period in which the new information becomes available. Share-based payment transactions The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Management uses judgment to determine the most appropriate valuation model to estimate the fair value for share-based payment transactions. The inputs to the valuation model, including the expected life of the share option, volatility and dividend yield, require judgment for determination. Financial contract liability The application of the Company’s accounting policy for financial liabilities requires the Company to adjust the carrying amounts of the financial liabilities in the event it revises its payments or receipts to reflect actual and revised estimated cash flows. The Company’s financial contract liability was originally recognized at fair value using the effective interest method which ensures that any interest expense over the period of repayment is at a constant rate on the balance of the liability carried in the balance sheet. Effective June 30, 2014, the Company’s financial contract liability was reduced by the residual reserve value of its working interest in the wellbores at September 30, 2016. At December 31, 2017, the financial contract liability was adjusted to reflect the present value of the amount outstanding at year-end, net of the present value of the residual reserves of its working interest in the wellbores. During the year ended December 31, 2018, the Company reached a settlement agreement with the Drilling Fund by assigning certain non-producing, non-core leasehold interests in the Piceance Basin of Colorado to retire the financial contract liability in full, leaving $Nil balance at December 31, 2018 (note 11). Impairment Management applies judgment in assessing the existence of impairment and impairment reversal indicators based on various internal and external factors. The recoverable amounts of CGUs and individual assets have been determined based on the higher of fair value less costs to sell or value-in-use. The key estimates the Company applies in determining the recoverable amount normally include anticipated future commodity prices, expected production volumes, future operating and development costs, and discount rates. Changes to these assumptions will affect the recoverable amounts of CGUs and individual assets and may then require a material adjustment to their related carrying value. At December 31, 2018, the Company has one CGU in Canada (Drake/Woodrush) and one CGU in the United States (Kokopelli) – Note 5. Financial instruments When estimating the fair value of financial instruments, the Company uses valuation methodologies that utilize observable market data where available. In addition to market information, the Company incorporates transaction specific details that market participants would utilize in a fair value measurement, including the impact of non-performance risk. See note 9 for the basis of valuation of loans from related parties and warrants issued in the year. Reserves The estimate of reserves is used in forecasting the recoverability and economic viability of the Company’s oil and gas properties, and in the depletion and impairment calculations. The process of estimating reserves is complex and requires significant interpretation and judgment. It is affected by economic conditions, production, operating and development activities, and is performed using available geological, geophysical, engineering, and economic data. Reserves are evaluated at least annually by the Company’s independent reserve evaluators and updates to those reserves, if any, are estimated internally. Future development costs are estimated using assumptions as to the number of wells required to produce the commercial reserves, the cost of such wells and associated production facilities and other capital costs. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
PROPERTY AND EQUIPMENT [Text Block] | NOTE 5 – PROPERTY AND EQUIPMENT Canadian Oil United States and Gas Oil and Gas Corporate and Properties Properties Other Assets Total $ $ $ $ Cost: Balance at January 1, 2017 33,628 16,372 182 50,182 Additions 405 39 5 449 Change in decommissioning provision 94 (3 ) - 91 Disposals - - (29 ) (29 ) Foreign currency translation and other - (1,060 ) - (1,060 ) Balance at December 31, 2017 34,127 15,348 158 49,633 Additions 778 1 2 781 Change in decommissioning provision (232 ) (2 ) - (234 ) Disposals (Note 11) - (486 ) (1 ) (487 ) Foreign currency translation and other - 1,363 - 1,363 Balance at December 31, 2018 34,673 16,224 159 51,056 Canadian Oil United States and Gas Oil and Gas Corporate and Properties Properties Other Assets Total $ $ $ $ Accumulated amortization, depletion and impairment losses: Balance at January 1, 2017 (29,092 ) (1,714 ) (164 ) (30,970 ) Amortization and depletion (561 ) (223 ) (3 ) (787 ) Impairment losses (870 ) - - (870 ) Disposals - - 25 25 Foreign currency translation and other - 131 - 131 Balance at December 31, 2017 (30,523 ) (1,806 ) (142 ) (32,471 ) Amortization and depletion (Note 6) (951 ) (205 ) (4 ) (1,160 ) Impairment losses (Note 6) (3,100 ) (11,459 ) - (14,559 ) Foreign currency translation and other - (185 ) - (185 ) Balance at December 31, 2018 (34,574 ) (13,655 ) (146 ) (48,375 ) Canadian Oil United States and Gas Oil and Gas Corporate and Properties Properties Other Assets Total $ $ $ $ Carrying amounts: At December 31, 2017 3,604 13,542 16 17,162 At December 31, 2018 99 2,569 13 2,681 On December 31, 2018, the Company assigned certain non-producing, non-core leasehold interests at its Kokopelli properties in United States to settle in full a financial contract liability. The settlement resulted in a non-recurring gain on settlement of $6,857,000 (Note 11). Amortization and Depletion Amortization and depletion is computed using the unit of production method by reference to the total production for the CGU over the estimated net proved and probable reserves of oil and gas for the CGU determined by independent consultants. The calculation of amortization and depletion for the year ended December 31, 2018 included estimated future development costs as estimated by the Company’s external reserves evaluator. The following table summarizes the factors used to calculate the amortization and depletion: Estimated Future Development Costs Country CGU 2018 2017 $ $ Canada Drake/Woodrush Nil Nil United States Kokopelli 5,286 83,700 Impairment In accordance with IFRS, impairment tests were conducted at December 31, 2018 on each of the Company’s CGUs. The estimated recoverable amounts were determined using fair value less cost to sell. In determining the recoverability of oil and gas interests and making these evaluations, the Company used the net present value of the cash flows from proved plus probable oil and gas reserves of each CGU as estimated by the Company’s independent reserve evaluator. Key input estimates used in the determination of cash flows from oil and gas reserves include the following: a) Reserves – Assumptions that are valid at the time of reserve estimation may change significantly when new information becomes available. Changes in forward price estimates, production costs or recovery rates may change the economic status of reserves and may ultimately result in reserves being restated. b) Crude oil and natural gas prices – Forward price estimates of the crude oil and natural gas prices are used in the cash flow model. Commodity prices have fluctuated widely in recent years due to global and regional factors including supply and demand fundamentals, inventory levels, exchange rates, weather, economic and geopolitical factors. c) Discount rate – The discount rate used to calculate the net present value of cash flows is an after-tax discount rate. The discount rates used ranged from 12.75% to 14.5%. Below are the following forward commodity price estimates used in the December 31, 2018 impairment test: Natural gas NGL Crude oil NYMEX Year (AECO) (Edmonton Pentanes Plus) (Edmonton Par) WTI Oil Henry Hub Gas Cdn $ / mmbtu Cdn $ / bbl Cdn $ / bbl US$ / bbl US$ / mmbtu 2019 1.85 67.67 63.33 56.25 3.00 2020 2.29 79.22 75.32 63.00 3.15 2021 2.67 83.54 79.75 67.00 3.35 2022 2.90 85.49 81.48 70.00 3.50 2023 3.14 87.80 83.54 72.50 3.63 2024 3.23 90.30 86.06 75.00 3.70 2025 3.34 93.33 89.09 77.50 3.77 2026 3.41 96.86 92.62 80.41 3.85 2027 3.48 98.81 94.57 82.02 3.93 2028 3.54 100.80 96.56 83.66 4.00 Each benchmark price increased on average approximately 2% thereafter At December 31, 2018, indicators of impairment were determined to exist in the Company’s Drake/Woodrush CGU, as a result of negative technical reserve revisions due to continued low natural gas prices in northeastern British Columbia. An impairment test was carried out on the Drake/Woodrush CGU, resulting in an impairment of $3,100,000 (December 31, 2017 - $870,000). The impairment was recognized because the carrying value exceeded the recoverable amount. The recoverable amount was determined using the fair value less costs of disposal methodology which is classified as Level 3 fair value measurements. At December 31, 2018, the Company determined that indicators of impairment existed in its Kokopelli CGU, as a result of the assignment of certain non-core, non-producing leasehold interests to settle in full the financial contract liability (note 11). The assigned leasehold interests reduced certain of the Company’s probable reserves and, in turn, a significant portion of the Level 3 fair value for purposes of measuring impairment. An impairment test was conducted on the Kokopelli CGU, resulting in an impairment of $11,459,000 (December 31, 2017 - $Nil). The impairment was recognized because the carrying value exceeded the recoverable amount. The recoverable amount was determined using the fair value less costs of disposal methodology which is classified as Level 3 fair value measurements. |
AMORTIZATION, DEPLETION AND IMP
AMORTIZATION, DEPLETION AND IMPAIRMENT LOSSES | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
AMORTIZATION, DEPLETION AND IMPAIRMENT LOSSES [Text Block] | NOTE 6 – AMORTIZATION, DEPLETION AND IMPAIRMENT LOSSES Year ended December 31 2018 2017 2016 $ $ $ Exploration and Evaluation Assets (E & E assets) Impairment losses 9 971 1,790 Property and Equipment (D & P assets) Amortization and depletion (Note 5) 1,160 787 1,633 Impairment losses (Note 5) 14,559 870 1,070 15,728 2,628 4,493 |
LOANS FROM RELATED PARTIES
LOANS FROM RELATED PARTIES | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
LOANS FROM RELATED PARTIES [Text Block] | NOTE 7 – LOANS FROM RELATED PARTIES (a) Loan from Hodgkinson Equity Corporation (“HEC”) (i) $4,500,000 loan On June 5, 2017, the Company entered into an amended loan agreement with Hodgkinson Equities Corporation (“HEC”) for the loan amount of $4,500,000 whereby the parties agreed to (a) extend the due date from November 30, 2018 to June 5, 2022; (b) reduce the interest rate to Canadian prime rate plus 1% per annum; (c) provide the right to convert the entire outstanding amount into 58,441,558 common shares of the Company at a price of $0.077 per share; and (d) secure the loan by all assets of Dejour USA and issue a first mortgage in favour of HEC on DEAL’s oil and gas properties. The first mortgage security so issued ranked “pari passu” with HVI’s first mortgage security interest (note 7(b)). As at December 31, 2018, the carrying value of the loan liability is as follows: $ Balance upon initial recognition 2,337 Accretion expense 265 Cash interest (104 ) Balance at December 31, 2017 2,498 Accretion expense 539 Cash interest (200 ) Balance at December 31, 2018 2,837 Current portion (375 ) Non-current portion 2,462 Other terms of the loan are: • the Company may repay the loan at any time without penalty; • the Company, through DEAL, must receive HEC’s approval to further encumber DEAL’s Canadian oil and gas properties; and • In the event of default, all the indebtedness secured by the promissory note becomes due and payable and the interest rate is immediately increased to Canadian prime rate plus 4.5% per annum. Subsequent to December 31, 2018, the Company entered into an agreement with HEC to convert $2,500,000 into 41,666,666 shares of the Company. The agreement is subject to “disinterested shareholder” approval at the Company’s “Annual General and Special Meeting of Shareholders” in April 2019. (ii) $1,000,000 loan On April 2, 2018, HEC has agreed to assume the loan of $1,000,000 from a director of the Company and his spouse. The loan bears interest at 10% per annum and is secured with a 2 nd Subsequent to December 31, 2018, the Company entered into an agreement with HEC to convert $1,000,000 into 16,666,666 shares of the Company. The agreement is subject to “disinterested shareholder” approval at the Company’s “Annual General and Special Meeting of Shareholders” in April 2019. (b) Loan from Hodgkinson Ventures Inc. (“HVI”) On June 5, 2017, the Company entered into an amended loan agreement with Hodgkinson Ventures Inc. (“HVI”) for the loan amount of $2,000,000 whereby the parties agreed to (a) extend the due date from November 30, 2018 to June 5, 2022; (b) reduce the interest rate to Canadian prime rate plus 1% per annum; (c) provide the right to convert the entire outstanding amount into 25,974,025 common shares of the Company at a price of $0.077 per share; and issued a first mortgage in favour of HVI on DEAL’s oil and gas properties. The first mortgage security so issued ranked “pari passu” with HEC’s first mortgage security interest (note 7(a)). As at December 31, 2018, the carrying value of the loan liability and derivative liability are as follows: $ Balance upon initial recognition 1,039 Accretion expense 117 Cash interest (46 ) Balance at December 31, 2017 1,110 Accretion expense 241 Cash interest (93 ) Balance at December 31, 2018 1,258 Current portion (167 ) Non-current portion 1,091 Other terms of the loan are: • the Company may repay the loan at any time without penalty; • the Company, through DEAL, must receive HVI’s approval to further encumber DEAL’s Canadian oil and gas properties; and • In the event of default, all the indebtedness secured by the promissory note becomes due and payable and the interest rate is immediately increased to Canadian prime rate plus 4.5% per annum. On December 10, 2018, HEC and HVI each signed a Waiver of Deferred Payment of Interest (“Waiver”) to the Company to defer and extend payment of all interest amounts owing in respect of the secured promissory notes through to and inclusive of April 30, 2019. The amounts owing at December 31, 2018 are approximately $15,000. The Waiver does not amend the due date of the HEC and HVI loans. Accordingly, no loan principal payments are in default. |
CONVERTIBLE DEBT
CONVERTIBLE DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
CONVERTIBLE DEBT [Text Block] | NOTE 8 – CONVERTIBLE DEBT In October 2018, the Company contracted with four arm’s length US accredited investors to borrow $780,000 on a first secured basis ranking “pari passu” with HEC and HVI (note 7). The loans bear interest at Canadian prime rate plus 1% per annum, are due on June 5, 2022, and are convertible into 12,999,998 common shares of the Company at a price of $0.06 per share. An initial closing of $520,000 was completed on October 5, 2018 upon receipt of all regulatory approvals. On January 16, 2019, the Company closed the final tranche of $260,000 upon receipt of all regulatory approvals. The fair value of the $520,000 loan was determined by applying a risk-adjusted rate of 13% to discount the contractual cash flows over the life of the loan. The fair value of the liability component of $407,000 is then deducted from the face value of the loan ($520,000), with the balance being taken directly to equity. Related financing costs of $34,000 were allocated to the liability and equity components. For equity, the costs of $8,000 are accounted for as a deduction from equity. For liability, the costs of $26,000 are accounted for as a deduction from the carrying amount of the liability. At December 31, 2018, the carrying value of the convertible debt is as follows: $ Balance upon initial recognition 381 Accretion expense 14 Cash interest (7 ) Balance at December 31, 2018 388 Current portion (32 ) Non-current portion 356 In February 2019, all four US accredited investors exercised the right to convert their debts into 12,999,998 common shares of the Company. The transaction was completed on February 14, 2019. |
FLOW-THROUGH SHARES LIABILITY
FLOW-THROUGH SHARES LIABILITY | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
FLOW-THROUGH SHARES LIABILITY [Text Block] | NOTE 9 – FLOW-THROUGH SHARES LIABILITY The following is a continuity schedule of the liability portion of the flow-through shares issuances: Issued in Issued in October December 2017 2017 Total $ $ $ Balance at January 1, 2017 - - - Liability incurred on flow-through shares issued 21 93 114 Settlement of flow-through share liability on incurring expenditures (21 ) - (21 ) Balance at December 31, 2017 - 93 93 Settlement of flow-through share liability on incurring expenditures - (93 ) (93 ) Balance at December 31, 2018 - - - |
DECOMMISSIONING LIABILITY
DECOMMISSIONING LIABILITY | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
DECOMMISSIONING LIABILITY [Text Block] | NOTE 10 – DECOMMISSIONING LIABILITY Canadian United States Oil and Gas Oil and Gas Properties (1) Properties (1) Total $ $ $ Balance at January 1, 2017 3,636 140 3,776 Change in estimated future cash flows 146 (3 ) 143 Actual costs incurred and other (3 ) (8 ) (11 ) Unwinding of discount 60 3 63 Balance at December 31, 2017 3,839 132 3,971 Additions 60 - 60 Change in estimated future cash flows (296 ) (3 ) (299 ) Actual costs incurred and other (15 ) 12 (3 ) Unwinding of discount 76 3 79 Balance at December 31, 2018 3,664 144 3,808 (1) The present value of the decommissioning liability was calculated using the following weighted average inputs: Canadian Oil United States and Gas Oil and Gas Properties Properties As at December 31, 2018: Discount rate 1.94% 2.15% Inflation rate 2.00% 2.00% As at December 31, 2017: Discount rate 1.94% 2.20% Inflation rate 2.00% 2.00% |
FINANCIAL CONTRACT LIABILITY
FINANCIAL CONTRACT LIABILITY | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
FINANCIAL CONTRACT LIABILITY [Text Block] | NOTE 11 – FINANCIAL CONTRACT LIABILITY On December 31, 2012, Dejour USA entered into a financial contract with a U.S. oil and gas drilling fund (“Drilling Fund”) to fund the drilling of up to three wells and the completion of up to four wells in the State of Colorado. The total amount contributed by the Drilling Fund was US$7,000,000. The financial contract contains a provision whereby Dejour USA must purchase the Drilling Funds’ working interest in the four wells funded by the US$7,000,000 if the Drilling Fund fails to obtain a certain minimum return on investment by September 30, 2016. A subsequent amendment limited Dejour USA’s cash exposure to a potential “put” by the Drilling Fund to US$3,000,000, with the difference to be settled by an assignment of working interests in certain P&NG properties owned by Dejour USA. The Company is not a party to the financial contract. On September 30, 2016, the Drilling Fund served notice to Dejour USA requiring Dejour USA to purchase the Drilling Funds’ working interest in the 4 wellbores in accordance with the contract. However, prior to serving such notice, the Drilling Fund executed certain assignments transferring ownership of its working interests in the 4 wellbores to another entity and the assignee mortgaged its interest therein. Effective December 31, 2018, Dejour USA reached a settlement agreement with the Drilling Fund by assigning certain non-producing, non-core leasehold interests in the Piceance Basin of Colorado. As a result, a gain on settlement of the liability of $6,857,000 (US$5,026,000) was recognized as follows: $ Balance at January 1, 2017 (US$5,382) 7,226 Foreign exchange gain (474 ) Balance at December 31, 2017 (US$5,382) 6,752 Non-cash consideration for settlement of the liability (US$356) (486 ) Gain on settlement of the liability (US$5,026) (6,857 ) Foreign exchange loss 591 Balance at December 31, 2018 - |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
SHARE CAPITAL [Text Block] | NOTE 12 – SHARE CAPITAL Authorized The Company is authorized to issue an unlimited number of common voting shares, an unlimited number of first preferred shares issuable in series, and an unlimited number of second preferred shares issuable in series. In January 2018, the Company renounced $523,000 flow-through funds to investors, using the look-back rule. The flow-through funds had been fully spent by March 31, 2018. As a result of renunciation, a deferred income tax recovery of $93,000 was recognized on settlement of flow-through shares liability. In December 2017, the Company renounced $149,000 flow-through funds to investors, using the general rule. The flow-through funds had been fully spent by December 31, 2017. As a result of renunciation, a deferred income tax recovery of $21,000 was recognized on settlement of the flow-through shares liability. In December 2017, the Company completed a private placement and 8,633,166 common shares were issued at a price of $0.075 per share for gross proceeds of $647,000 and an additional 5,738,665 flow-through shares were issued for gross proceeds of $523,000 (5,091,165 at $0.09 per share and 647,500 at $0.10 per share). The Company paid finders’ fees of $51,000 and other costs of $24,000 related to this offering. 946,667 of the common shares were issued at $0.075 per share to certain creditors of the Company to settle the amounts owing to them. In October 2017, the Company completed a private placement and 42,297,400 common shares were issued at a price of $0.06 per share for gross proceeds of $2,538,000 and additional 2,128,571 flow-through shares were issued at a price of $0.07 per share for gross proceeds of $149,000. The Company paid finders’ fees of $41,000 and other costs of $23,000 related to this offering. 21,924,067 of the common shares were issued at $0.06 per share to Directors and Officers of the Company (17,967,644) and certain creditors of the Company (3,956,423) to settle the amounts owing to them. In June and July 2016, the Company completed a dual tranche private placement and 8,298,333 common shares were issued at a price of $0.12 per share for total gross proceeds of $995,800. The Company paid finders’ fees of $18,000 and other costs of $29,000 related to this offering. Directors and Officers of the Company purchased 3,600,000 common shares of this offering. |
STOCK OPTIONS
STOCK OPTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
STOCK OPTIONS | NOTE 13 – STOCK OPTIONS The Stock Option Plan (the “Plan”) is a 10% “rolling” plan pursuant to which the number of common shares reserved for issuance is 10% of the Company’s issued and outstanding common shares as constituted on the date of any grant of options. The Plan provides for the grant of options to purchase common shares to eligible directors, senior officers, employees and consultants of the Company (“Participants”). The exercise periods and vesting periods of options granted under the Plan are to be determined by the Company with approval from the Board of Directors. The expiration of any option will be accelerated if the participant’s employment or other relationship with the Company terminates. The exercise price of an option is to be set by the Company at the time of grant but shall not be lower than the market price (as defined in the Plan) at the time of grant. The following table summarizes information about outstanding stock option transactions: Weighted Number of average options exercise price $ Balance at January 1, 2017 and December 31, 2017 3,400,000 0.16 Options granted 1,850,000 0.09 Options cancelled (400,000 ) 0.16 Balance at December 31, 2018 4,850,000 0.13 Details of the stock options as at December 31, 2018 are as follows: Outstanding Exercisable Weighted average Weighted average Number exercise contractual Number exercise contractual of options price life (years) of options price life (years) $ $ $0.09 1,850,000 0.09 2.00 1,850,000 0.09 2.00 $0.16 3,000,000 0.16 2.43 3,000,000 0.16 2.43 4,850,000 0.13 2.26 4,850,000 0.13 2.26 The fair value of the options issued during the year ended December 31, 2018 (2017 – no stock options were granted) was estimated using the Black Scholes option pricing model with the following weighted average inputs: For the year ended December 31 2018 Fair value at grant date $ 0.04 Expected volatility 100.59% Expected option life 1.46 years Dividends 0.0% Risk-free interest rate 1.80% Estimated forfeiture rate 5.04% Expected volatility is based on historical volatility and average weekly stock prices were used to calculate volatility. Management believes that the annualized weekly average of volatility is the best measure of expected volatility. |
SUPPLEMENTAL INFORMATION
SUPPLEMENTAL INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
SUPPLEMENTAL INFORMATION [Text Block] | NOTE 14 – SUPPLEMENTAL INFORMATION (a) Changes in working capital consisted of the following: Year ended December 31 2018 2017 2016 $ $ $ Changes in working capital: Accounts receivable 203 284 1,530 Prepaids and deposits (29 ) (10 ) 12 Accounts payable and accrued liabilities 766 15 (758 ) 940 289 784 Comprised of: Operating activities 720 219 667 Investing activities 214 32 178 Financing activities 6 38 (61 ) 940 289 784 Other cash flow information: Cash paid for interest 397 480 596 Income taxes paid - - - (b) Per share amounts: Basic loss per share amounts has been calculated by dividing the net loss for the year attributable to the shareholders’ of the Company by the weighted average number of common shares outstanding. Stock options and share purchase warrants were excluded from the calculation. The basic and diluted net loss per share is the same as the stock options and share purchase warrants were anti-dilutive. The following table summarizes the common shares used in calculating basic and diluted net loss per common share: Year ended December 31, 2018 2017 2016 Weighted average common shares outstanding Basic 103,606,088 61,682,462 42,095,366 Diluted 103,606,088 61,682,462 42,095,366 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
RELATED PARTY TRANSACTIONS [Text Block] | NOTE 15 – RELATED PARTY TRANSACTIONS During the years ended December 31, 2018, 2017 and 2016 and in addition to the loans from related parties (note 7), the Company entered into the following transactions with related parties: (a) Compensation awarded to key management included a total of salaries and consulting fees of $230,000 (2017 - $466,000 and 2016 - $470,000) and non-cash stock-based compensation of $77,000 (2017 - $Nil and 2016 - $80,000). Key management includes the Company’s officers and directors. The salaries and consulting fees are included in general and administrative expenses. Included in accounts payable and accrued liabilities at December 31, 2018 is $207,000 (December 31, 2017 - $131,000 and December 31, 2016 - $262,000) owing to the two officers of the Company. (b) Interest expenses of $397,000 (2017 - $370,000 and 2016 - $595,000) related to the loans from related parties were paid in cash to a director of the Company and his spouse or the companies controlled by or associated with a director of the Company. And, interest expenses of $Nil (2017 - $139,000 and 2016 - $Nil) related to the loans from related parties were paid via issuance of the Company’s shares to the companies controlled by or associated with a director of the Company. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
INCOME TAXES [Text Block] | NOTE 16 – INCOME TAXES The actual income tax provisions differ from the expected amounts calculated by applying the Canadian combined federal and provincial corporate income tax rates to the Company’s loss before income taxes. The components of these differences are as follows: 2018 2017 2016 $ $ $ Loss before income taxes (11,727 ) (5,232 ) (5,486 ) Corporate tax rate 27.00% 26.44% 26.59% Expected tax recovery (3,166 ) (1,383 ) (1,459 ) Increase (decrease) resulting from: Differences in foreign tax rates and change in statutory tax rates 73 6,381 (231 ) Impact of foreign exchange rate changes (1,343 ) 1,277 506 Change in unrecognized deferred tax assets 4,288 (6,507 ) 1,290 Stock based compensation and expiry of losses 148 33 198 Non taxable/deductible amounts - 199 (304 ) Deferred income tax recovery - - - No deferred tax asset has been recognized in respect of the following losses and deductible temporary differences as it is not considered probable that sufficient future taxable profit will allow the deferred tax assets to be recovered. 2018 2017 2016 $ $ $ Deferred income tax assets Non-capital losses available 22,683 20,998 26,679 Capital losses available 1,113 1,113 1,072 Resource tax pools in excess of net book value 7,506 5,279 4,846 Share issue costs and others 1,030 654 1,171 Unrecognized deferred tax assets 32,332 28,044 33,768 The Company has the approximate amounts of tax pools available as follows: As at December 31 2018 2017 2016 $ $ $ Canada: Exploration and development expenditures 17,810 17,100 16,750 Unamortized share issue costs 176 261 292 Capital losses 8,242 8,242 8,242 Non-capital losses 34,979 33,120 30,783 61,207 58,723 56,067 United States: Exploration and development expenditures 9,317 15,883 17,149 Undeducted expenses 3,001 2,760 2,954 Non-capital losses 58,992 53,733 58,247 71,310 72,376 78,350 Total 132,517 131,099 134,417 The exploration and development expenditures at December 31, 2018 can be carried forward to reduce future income taxes indefinitely. The non-capital losses for income tax purposes expire as follows: Canada United States Total $ $ $ 2026 24 2,753 2,777 2027 3,606 3,669 7,275 2028 4,674 276 4,950 2029 3,842 3,552 7,394 2030 2,068 3,017 5,085 2031 2,408 3,038 5,446 2032 4,372 8,271 12,643 2033 2,167 17,632 19,799 2034 3,966 13,773 17,739 2035 2,292 590 2,882 2036 1,815 1,783 3,598 2037 2,354 80 2,434 2038 1,391 558 1,949 34,979 58,992 93,971 The Company does not recognize deferred tax assets related to the foregoing tax pools because it is not probable that future taxable profit will be available against which the tax pools can be utilized. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
COMMITMENTS [Text Block] | NOTE 17 – COMMITMENTS The following is a summary of the Company’s undiscounted contractual obligations and commitments as at December 31, 2018: Payments Due by Period 1 Year 2-3 Years 4-5 Years Total $ $ $ $ Debt repayments (1) 1,000 - 7,020 8,020 Interest payments (2) 50 - - 50 Operating leases 75 17 - 92 1,125 17 7,020 8,162 (1) Short-term and long-term loans from related parties and convertible debt (2) Fixed interest payments on loan from related parties of $1,000,000 |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
OPERATING SEGMENTS [Text Block] | NOTE 18 – OPERATING SEGMENTS Segment information is provided on the basis of geographic segments as the Company manages its business through two geographic regions – Canada and the United States. The two geographic segments presented reflect the way in which the Company’s management reviews business performance. The Company’s revenue and losses of each geographic segment are as follows: Canada United States Total 2018 2017 2016 2018 2017 2016 2018 2017 2016 $ $ $ $ $ $ $ Year ended December 31 Revenues, net of royalties 1,219 1,814 3,190 525 666 883 1,744 2,480 4,073 Segmented loss (6,268 ) (4,948 ) (3,279 ) (5,364 ) (261 ) (2,207 ) (11,632 ) (5,209 ) (5,486 ) Amortization, depletion and impairment losses 4,062 1,785 2,324 11,666 844 2,169 15,728 2,629 4,493 Interest expense 901 950 1,236 - - 294 901 950 1,530 Capital expenditures 780 414 305 1 42 225 781 456 530 |
DETERMINATION OF FAIR VALUES
DETERMINATION OF FAIR VALUES | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
DETERMINATION OF FAIR VALUES [Text Block] | NOTE 19 – DETERMINATION OF FAIR VALUES A number of the Company’s accounting policies and disclosures require the determination of fair value. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that financial asset or financial liability. Due to the use of subjective judgments and uncertainties in the determination of these fair values the values should not be interpreted as being realizable in an immediate settlement of the financial instruments. The Company classifies the fair value of financial instruments according to the following hierarchy based on the amount of observable inputs used to value the instruments: • Level 1: Values based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. • Level 2: Values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. • Level 3: Values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. The following tables provide fair value measurement information for financial assets and liabilities as at December 31, 2018 and December 31, 2017: Quoted Prices in Significant Other Significant Carrying Fair Active Markets Observable Inputs Unobservable December 31, 2018 Amount Value (Level 1) (Level 2) Inputs (Level 3) $ $ $ $ $ Financial Assets: Cash and cash equivalents 26 26 26 - - Accounts receivable 185 185 185 - - Financial Liabilities: Accounts payable 1,507 1,507 1,507 - - Loans from related parties 5,095 5,095 - - 5,095 Convertible debt 388 388 - - 388 Quoted Prices in Significant Other Significant Carrying Fair Active Markets Observable Inputs Unobservable December 31, 2017 Amount Value (Level 1) (Level 2) Inputs (Level 3) $ $ $ $ $ Financial Assets: Cash and cash equivalents 1,010 1,010 1,010 - - Accounts receivable 388 388 388 - - Financial Liabilities: Accounts payable 658 658 658 - - Loans from related parties 4,608 4,608 - - 4,608 Financial contract liability 6,752 6,752 - - 6,752 |
FINANCIAL INSTRUMENTS AND CAPIT
FINANCIAL INSTRUMENTS AND CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
FINANCIAL INSTRUMENTS AND CAPITAL MANAGEMENT [Text Block] | NOTE 20 – FINANCIAL INSTRUMENTS AND CAPITAL MANAGEMENT The Company operates in the United States, giving rise to exposure to market risks from changes in foreign currency rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk. The Company also has exposure to a number of risks from its use of financial instruments including: credit risk, liquidity risk, and market risk. This note presents information about the Company’s exposure to each of these risks and the Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of capital. (a) Credit Risk Credit risk arises from credit exposure to receivables due from joint operating partners and marketers included in accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The Company is exposed to third party credit risk through its contractual arrangements with its current or future joint operating partners, marketers of its petroleum and natural gas production and other parties. In the event such entities fail to meet their contractual obligations to the Company, such failures may have a material adverse effect on the Company’s business, financial condition, and results of operations. The objective of managing the third party credit risk is to minimize losses in financial assets. The Company assesses the credit quality of the partners, taking into account their financial position, past experience, and other factors. The Company mitigates the risk of non-collection of certain amounts by obtaining the joint operating partners’ share of capital expenditures in advance of a project and by monitoring accounts receivable on a regular basis. As at December 31, 2018 and 2017, no accounts receivable has been deemed uncollectible or written off during the year. As at December 31, 2018, the Company’s receivables consist of $137,000 (2017 - $196,000) from joint operating partners, $12,000 (2017 - $121,000) from oil and natural gas marketers and $36,000 (2017 - $71,000) from other trade receivables. The Company considers all amounts outstanding for more than 90 days as past due. Currently, there is no indication that amounts are non-collectable; thus a provision for doubtful accounts has not been set up. As at December 31, 2018, $Nil (2017 - $Nil) of accounts receivable are past due. (b) Liquidity Risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they are due. The nature of the oil and gas industry is capital intensive and the Company maintains and monitors a certain level of cash flow to finance operating and capital expenditures. The Company’s ongoing liquidity and cash flow are impacted by various events and conditions. These events and conditions include but are not limited to commodity price fluctuations, general credit and market conditions, operation and regulatory factors, such as government permits, the availability of drilling and other equipment, lands and pipeline access, weather, and reservoir quality. To mitigate the liquidity risk, the Company closely monitors its credit facility, production level and capital expenditures to ensure that it has adequate liquidity to satisfy its financial obligations. (c) Market Risk Market risk is the risk that changes in market prices, such as foreign exchange rates, commodity prices, and interest rates will affect the Company’s net earnings. The objective of market risk management is to manage and control market risk exposures within acceptable limits, while maximizing returns. The Company utilizes financial derivatives to manage certain market risks. All such transactions are conducted in accordance with the risk management policy that has been approved by the Board of Directors. (i) Foreign Currency Exchange Risk Foreign currency exchange rate risk is the risk that the fair value of financial instruments or future cash flows will fluctuate as a result of changes in foreign exchange rates. Although substantially all of the Company’s oil and natural gas sales are denominated in Canadian dollars, the underlying market prices in Canada for oil and natural gas are impacted by changes in the exchange rate between the Canadian and United States dollars. Given that changes in exchange rate have an indirect influence, the impact of changing exchange rates cannot be accurately quantified. The Company had no forward exchange rate contracts in place as at or during the year ended December 31, 2018 and 2017. The Company was exposed to the following foreign currency risk at December 31: 2018 2017 Expressed in foreign currencies CND$ CND$ Cash and cash equivalents 17 30 Accounts receivable 100 228 Accounts payable and accrued liabilities (199 ) (213 ) Balance sheet exposure (82 ) 45 The following foreign exchange rates applied for the year ended and as at December 31: 2018 2017 December 31, reporting date rate 1.3642 1.2545 YTD average USD to CAD 1.2957 1.2986 The Company has performed a sensitivity analysis on its foreign currency denominated financial instruments. Based on the Company’s foreign currency exposure noted above and assuming that all other variables remain constant, a 10% appreciation of the US dollar against the Canadian dollar would result in the increase of net loss of $8,000 at December 31, 2018 (2017 – decrease of net loss of $5,000). For a 10% depreciation of the above foreign currencies against the Canadian dollar, assuming all other variables remain constant, there would be an equal and opposite impact on net loss. (ii) Interest Rate Risk Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. At December 31, 2018, the Company was exposed to interest rate fluctuations on the loans from related parties which bore a floating rate of interest. Assuming all other variables remain constant, an increase or decrease of 1% in market interest rate at December 31, 2018 would have increased or decreased net loss by $70,000. The Company had no interest rate swap contracts in place at or during the year ended December 31, 2018 and 2017. (iii) Commodity Price Risk Revenues and consequently cash flows fluctuate with commodity prices and the US/Canadian dollar exchange rate. Commodity prices are determined on a global basis and circumstances that occur in various parts of the world are outside of the control of the Company. The Company may protect itself from fluctuations in prices by using the financial derivative sales contracts. The Company may enter into commodity price contracts to manage the risks associated with price volatility and thereby protect its cash flows used to fund its capital program. Assuming all other variables remain constant, an increase or decrease of oil price of $1 per bbl and gas price of $0.01 per mcf at December 31, 2018 would have decreased or increased net loss by $25,000. The Company had no commodity contracts in place at December 31, 2018. (d) Capital Management Strategy The Company’s policy on capital management is to maintain a prudent capital structure so as to maintain financial flexibility, preserve access to capital markets, maintain investor, creditor and market confidence, and to allow the Company to fund future developments. The Company considers its capital structure to include share capital, cash and cash equivalents, and working capital. In order to maintain or adjust capital structure, the Company may from time to time issue shares or enter into debt agreements and adjust its capital spending to manage current and projected operating cash flows and debt levels. The Company’s share capital is not subject to any external restrictions. The Company has not paid or declared any dividends, nor are any contemplated in the foreseeable future. There have been no changes to the Company’s capital management strategy during the year ended December 31, 2018. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
SUBSEQUENT EVENTS [Text Block] | NOTE 21 – SUBSEQUENT EVENTS Subsequent to December 31, 2018, the Company completed the following transactions, all of which have been approved by the appropriate Canadian regulatory authorities and, in the case of item (d), the Company’s shareholders: a) Issued by way of private placement 33,052,334 shares at a price of $0.06 per share for gross (and net) proceeds of $1,983,000; b) converted $780,000 in secured convertible debt to 12,999,998 shares; c) Signed an agreement whereby certain secured lenders agreed to convert $3,500,000 in secured loans to the Company for 58,333,332 shares. The agreement is subject to “disinterested shareholder” approval at the Company’s “Annual General and Special Meeting of Shareholders” currently scheduled for April 29, 2019; and d) Issued 3,500,000 stock options with an exercise price of $0.06 each to a senior officer of the Company. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Basis of consolidation [Policy Text Block] | (a) Basis of consolidation The consolidated financial statements include the financial statements of the Company and subsidiaries controlled by the Company. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Company obtains control, and continue to be consolidated until the date that such control ceases. All intra-group balances, transactions, income and expenses are eliminated in full on consolidation. The financial statements of the subsidiaries are prepared using the same reporting period as the parent company, using consistent accounting policies. Exploration, development, and production activities may be conducted jointly with others and accordingly, the Company accounts for the assets, liabilities, revenues and expenses related to its interest in the joint operations from the date that joint control commences until the date that it ceases. |
Foreign currency [Policy Text Block] | (b) Foreign currency The financial statements of entities within the consolidated group that have a functional currency different from that of the Company (“foreign operations”) are translated into Canadian dollars as follows: assets and liabilities – at the closing rate as at the balance sheet date, and income and expenses – at the average rate of the period (as this is considered a reasonable approximation to actual rates). All resulting changes are recognized in other comprehensive loss as cumulative translation differences. When the Company disposes of its entire interests in a foreign operation, or loses control, joint control, or significant influence over a foreign operation, the foreign currency gains or losses accumulated in other comprehensive loss related to the foreign operation are recognized in profit or loss. If an entity disposes of part of an interest in a foreign operation which remains a subsidiary, a proportionate amount of foreign currency gains or losses accumulated in other comprehensive income related to the subsidiary are reallocated between controlling and non-controlling interests. Transactions in foreign currencies are translated into the functional currency at exchange rates at the date of the transactions. Foreign currency differences arising on translation are recognized in profit or loss. Foreign currency monetary assets and liabilities are translated at the functional currency exchange rate at the balance sheet date. Non- monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Exchange differences recognized in the profit or loss statement of the Company’s entities’ separate financial statements on the translation of monetary items forming part of the Company’s net investment in the foreign operation are reclassified to foreign exchange reserve on consolidation. |
Cash and cash equivalents [Policy Text Block] | (c) Cash and cash equivalents Cash and cash equivalents consist of cash and highly liquid investments having maturity dates of three months or less from the date of acquisition that are readily convertible to cash. |
Resource properties [Policy Text Block] | (d) Resource properties Exploration and evaluation (“E&E”) costs Pre-license costs are expensed in the period in which they are incurred. E&E costs are initially capitalized as either tangible or intangible E&E assets according to the nature of the assets acquired. Intangible E&E assets may include costs of license acquisition, technical services and studies, seismic acquisition, exploration drilling and testing, and directly attributable overhead and administration expenses. The costs are accumulated in cost centers by well, field or exploration area pending determination of technical feasibility and commercial viability. E&E assets are assessed for impairment if sufficient data exists to determine technical feasibility and commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For purposes of impairment testing, E&E assets are assessed at the individual asset level. If it is not possible to estimate the recoverable amount of the individual asset, exploration and evaluation assets are allocated to cash-generating units (“CGU’s”). Such CGU’s are not larger than an operating segment. Exploration assets are not depleted and are carried forward until technical feasibility and commercial viability of extracting a mineral resource is considered to be determinable or sufficient/continued progress is made in assessing the commercial viability of the E&E assets. The technical feasibility and commercial viability of extracting a mineral resource is considered to be determinable when proven reserves are determined to exist. A review of each exploration license or field is carried out, at least annually, to confirm whether the Company intends further appraisal activity or to otherwise extract value from the property. When this is no longer the case, the costs are written off. Upon determination of proven reserves, E&E assets attributable to those reserves are first tested for impairment and then reclassified from E&E assets to oil and natural gas properties. The Company may occasionally enter into arrangements, whereby the Company will transfer part of an oil and gas interest, as consideration, for an agreement by the transferee to meet certain E&E expenditures which would have otherwise been undertaken by the Company. The Company does not record any expenditures made by the transferee. Any cash consideration received from the agreement is credited against the costs previously capitalized to the oil and gas interest given up by the Company, with any excess cash accounted for as a gain on disposal. Oil and gas properties and other property and equipment costs Items of property and equipment, which include oil and gas development and production assets, are measured at cost less accumulated depletion and depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of the decommissioning obligation and, for qualifying assets, borrowing costs. The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. When significant parts of an item of property and equipment, including oil and natural gas interests, have different useful lives, they are accounted for as separate items (major components). Depletion and Depreciation Oil and gas development and production assets are depreciated, by significant component, on a unit-of-production basis over proved and probable reserve volumes, taking into account estimated future development costs necessary to bring those reserves into production. Future development costs are estimated by taking into account the level of development required to produce the reserves. These estimates are reviewed by independent reserve engineers at least annually. Changes in reserve estimates are dealt with prospectively. Proved and probable reserves are estimated using independent reserve engineer reports and represent the estimated quantities of oil, natural gas and gas liquids. Other property and equipment are depreciated based on a declining balance basis, which approximates the estimated useful lives of the asset, at the following rates: Office furniture and equipment 20% Computer equipment 45% Vehicle 30% Leasehold improvements term of lease Depreciation methods, useful lives and residual values are reviewed at each reporting date. Other property and equipment are allocated to each of the Company’s primary cash-generating units, based on estimated future net revenue, consistent with the recoverable values applied in the most recent impairment test. Derecognition The carrying amount of an item of property and equipment is derecognized on disposal, when no beneficial interest is retained, or when no future economic benefits are expected from its use or disposal. The gain or loss arising from derecognition is included in profit or loss when the item is derecognized and is measured as the difference between the net disposal proceeds, if any, and the carrying amount of the item. The date of disposal is the date when the Company is no longer subject to the risks of ownership and is no longer the beneficiary of the rewards of ownership. Where the asset is derecognized, the date of disposal coincides with the date the revenue from the sale of the asset is recognized. On the disposition of an undivided interest in a property, where an economic benefit remains, the Company recognizes the farm out only on the receipt of consideration by reducing the carrying amount of the related property with any excess recognized in profit or loss of the period. Major maintenance and repairs The costs of day-to-day servicing are expensed as incurred. These primarily include the costs of labor, consumables and small parts. Material costs of replaced parts, turnarounds and major inspections are capitalized as it is probable that future economic benefits will be received. The carrying value of a replaced part is derecognized in accordance with the derecognition principles above. Jointly controlled operations The Company conducts its oil and gas development and production activities through jointly controlled operations and the accounts reflect only its interest in such activities. A joint arrangement exists where the parties take their share of the output and is accounted for by recognizing the Company’s share of assets and liabilities jointly owned and incurred, and the recognition of its share of revenue and expenses of the joint operation. At December 31, 2018, the Company’s material joint operation in Canada is Drake/Woodrush. The principal activity is oil and gas production and the ownership percentage is 99% (December 31, 2017 – 99%). |
Provisions [Policy Text Block] | (e) Provisions A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the liability. Decommissioning liability A decommissioning liability is recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of obligation can be made. A corresponding amount equivalent to the provision is also recognized as part of the cost of the related asset. The amount recognized is management’s estimated cost of decommissioning, discounted to its present value using a risk free rate. Changes in the estimated timing of decommissioning or decommissioning cost estimates are dealt with prospectively by recording an adjustment to the provision and a corresponding adjustment to the related asset unless the change arises from production. The unwinding of the discount on the decommissioning provision is included as a finance cost. Actual costs incurred upon settlement of the decommissioning liability are charged against the provision to the extent the provision was established. |
Earnings (loss) per share [Policy Text Block] | (f) Earnings (loss) per share Basic earnings (loss) per share figures have been calculated using the weighted average number of common shares outstanding during the respective periods. Diluted earnings (loss) per common share is calculated by dividing the profit or loss applicable to common shares by the sum of the weighted average number of common shares issued and outstanding and all additional common shares that would have been outstanding if potentially dilutive instruments were converted. The diluted earnings (loss) per share figure is equal to that of basic earnings (loss) per share since the effects of options and warrants have been excluded as they are anti-dilutive. |
Share based payments [Policy Text Block] | (g) Share based payments Where equity-settled share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Performance vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognized over the vesting period is based on the number of options that will eventually vest. Where equity instruments are granted to employees, they are recorded at the instruments grant date fair value. Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to non-employees, they are recorded at the fair value of the goods or services received in profit or loss, unless they are related to the issuance of shares. Amounts related to the issuance of shares are recorded as a reduction of share capital. When the value of goods or services received in exchange for the share-based payment to non-employees cannot be reliably estimated, the fair value of the share-based payment is measured by use of a valuation model to measure the value of the equity instruments issued. The expected life used in the model is adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations. All equity-settled share based payments are reflected in contributed surplus, until exercised. Upon exercise, shares are issued from treasury and the amount reflected in contributed surplus is credited to share capital along with any consideration received. Where a grant of options is cancelled or settled during the vesting period, excluding forfeitures when vesting conditions are not satisfied, the Company immediately accounts for the cancellation as an acceleration of vesting and recognizes the amount that otherwise would have been recognized for services received over the remainder of the vesting period. Any payment made to the employee on the cancellation is accounted for as the repurchase of an equity interest except to the extent the payment exceeds the fair value of the equity instrument granted, measured at the repurchase date. Any such excess is recognized as an expense. |
Revenue recognition [Policy Text Block] | (h) Revenue recognition The Company adopted IFRS 15, Revenue from Contracts with Customers, as of January 1, 2018, under the modified retrospective method where the cumulative effect is recognized at the date of initial application. The adoption of IFRS 15 did not have a material effect on the financial statements. Comparative figures did not require restatement as a result of this adoption. The Company derives revenue from product sales contracts with its marketers (one for each commodity type) for the delivery of oil, natural gas, and natural gas liquids (“Goods”). The contract with the marketers has an open-ended term that may last one month to several years and may operate on an evergreen basis. Payment is due on the contract near the end of the month following the month in which the product was delivered. Applying the five-step model required by IFRS 15, Revenue from Contracts with Customers, revenue is recognized as follows for these contracts: Step in Model Product Sales Identify the contract The contractual arrangement executed with the customer, specifying the quantity and market price. Identify distinct performance obligations Contract is for the delivery of the Goods on the specified date. Estimate transaction price Transaction price is based on current commodity market prices. Allocate transaction price to performance obligations The transaction price is allocated to the Goods delivery. Recognize revenue as performance obligations are satisfied Revenue to be recognized at a point in time once control passes to the customer (i.e. when the oil or gas is delivered or picked up by the customer). Costs related to processing the oil and delivering the oil to pipelines are netted from the payment received from the customer. These costs are recognized separately in the statement of comprehensive loss at the same time as revenue recognition. The costs associated with production-based royalty expenses and operating and transportation costs are recognized in the same period in which the related revenue is earned and recorded. |
Financial instruments [Policy Text Block] | (i) Financial instruments As the Company adopted IFRS 9, Financial Instruments, as of January 1, 2018 cumulatively without restatement of comparative figures, different policies apply to the 2018 period presented than the comparative periods. IFRS 9 supersedes IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 includes revised guidance on the classification and measurement of financial assets and liabilities; and new guidance for measuring impairment on financial assets. The adoption of IFRS 9 did not have a material effect on the financial statements. The Company’s financial instruments include cash and cash equivalent, accounts receivables, accounts payable and accrued liabilities, loans from related parties and convertible debt. Financial assets At December 31, 2018, financial assets were initially recorded at fair value and are designated into one of the following three categories: amortized cost, fair value through profit or loss (“FVTPL”), or fair value through other comprehensive loss (“FVOCI”). These assets arise principally from the provision of goods and services to customers. These assets are initially recognized at fair value plus directly attributable transaction costs. Subsequently, they are recorded at amortized cost using the effective interest rate method, less any impairment losses. A financial asset is classified as FVOCI if the asset is held with the objective to both collect contractual cash flows and sell the financial asset. All other financial assets are measured at FVTPL. As at December 31, 2018, the Company held no financial instrument in both FVTPL category and FVOCI category. IFRS 9 replaces the incurred loss model in IAS 39 with an expected credit loss (ECL) model. This applies to financial assets measured at amortized cost. Under IFRS 9, credit losses are recognized in general, earlier than under IAS 39. The Company's financial assets measured at amortized cost are cash and cash equivalents and accounts receivable. The Company has four customers and the ECL related to the customers is nil. At December 31, 2017, financial assets (cash and cash equivalents and accounts receivable) were initially recorded at fair value and were subsequently measured as amortized cost. Financial liabilities The Company classifies its financial instruments into one of two categories, depending on the purpose for which the liability was acquired. • Fair value through profit or loss: this category does not comprise any liabilities at December 31, 2018. These liabilities are classified and measured at fair value through profit and loss. • Other financial liabilities: this category includes accounts payables and accrued liabilities, loans from related parties and convertible debt, which are initially recognized at fair value and subsequently carried at amortized cost using the effective interest method. The Company has derivative financial instruments in the form of warrants issued in US dollars, or with certain adjustment provisions, and contracts entered into to manage its exposure to volatility in commodity prices. Commodity contracts are not used for trading or other speculative purposes. Such derivative financial instruments are initially recognized at fair value at the date at which the derivatives are issued and are subsequently re-measured at fair value. These derivatives do not qualify for hedge accounting and changes in fair value are recognized immediately in profit and loss. For outstanding warrants at each reporting period, the change in the fair value of the liability between reporting periods is recorded in the consolidated statement of comprehensive income (loss). As warrants are exercised, immediately before exercise, the liability on these exercised warrants is re-measured and the valuation change is recorded in the consolidated statement of comprehensive income (loss). Upon exercise, the re-measured warrant liability on these exercised warrants is eliminated and there is an offsetting entry to share capital. Impairment of financial assets At each reporting date, the Company assesses the expected credit losses (“ECL”) associated with its financial assets to determine whether any financial asset is impaired. |
Impairment [Policy Text Block] | (j) Impairment For accounts receivable, the Company applies the simplified approach required by IFRS 9, which requires the ECL allowances to be recognized at the initial recognition of the receivables. The ECL for financial assets are based on the assumptions about risk of default and expected credit losses. The Company uses judgment in making these assumptions and selecting inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Non-financial assets For the purpose of impairment testing, assets are grouped together in CGUs, which are the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets. The carrying value of long-term assets is reviewed at each period for indicators that the carrying value of an asset or a CGU may not be recoverable. The Company uses geographical proximity, geological similarities, analysis of shared infrastructure, commodity type, assessment of exposure to market risks and materiality to define its CGUs. If indicators of impairment exist, the recoverable amount of the asset or CGU is estimated. If the carrying value of the asset or CGU exceeds the recoverable amount, the asset or CGU is written down with an impairment recognized in profit or loss. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Fair value is determined to be the amount for which the asset could be sold in an arm’s length transaction. For resource properties, fair value less costs to sell may be determined by using discounted future net cash flows of proved and probable reserves using forecast prices and costs. Value in use is determined by estimating the net present value of future net cash flows expected from the continued use of the asset or CGU. Impairment losses recognized in prior years are assessed at each reporting date for any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimate used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depletion and depreciation, if no impairment loss had been recognized. |
Taxes [Policy Text Block] | (k) Taxes Income taxes Income tax expense comprises current and deferred tax. Income tax expense is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized on temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and affects neither accounting profit nor taxable profit. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when the asset is realized or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, when they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Production taxes Royalties, resource rent taxes and revenue-based taxes are accounted for under International Accounting Standards (‘IAS’) 12 when they have characteristics of an income tax. This is considered to be the case when they are imposed under Government authority and the amount is payable based on taxable income, rather than based on quantity produced or as a percentage of revenue, after adjustment for temporary differences. For such arrangements, current and deferred tax is provided on the same basis as described above for other forms of taxation. Obligations arising from royalty arrangements that do not satisfy these criteria are recognized as a reduction of revenues. |
Share capital [Policy Text Block] | (l) Share capital The Company’s common shares, stock options, share purchase warrants and flow-through shares are classified as equity instruments only to the extent that they do not meet the definition of a financial liability or financial asset. Incremental costs directly attributable to the issue of equity instruments are shown in equity as a deduction, net of tax, from the proceeds. |
Flow-through shares [Policy Text Block] | (m) Flow-through shares The Company will from time to time, issue flow-through common shares to finance a portion of its exploration program. Pursuant to the terms of the flow-through share agreements, these shares transfer the tax deductibility of qualifying resource expenditures to investors. On issuance, the Company separates the flow-through share into i) a flow-through share premium, equal to the estimated premium, if any, investors pay for the flow-through feature, which is recognized as a liability and; ii) share capital. Upon expenditures being incurred, the Company derecognizes the liability and recognizes a deferred income tax recovery for the amount of tax reduction renounced to the shareholders. |
Future accounting pronouncements [Policy Text Block] | (n) Future accounting pronouncements Certain pronouncements were issued by “IASB” or “IFRIC” that are mandatory for accounting periods beginning after January 1, 2019 or later periods. The following new accounting standards, amendments to accounting standards and interpretations, have not been early adopted in these consolidated financial statements: IFRS 16, “Leases”: In January 2016, the IASB issued the standard to replace IAS 17 “Leases”. IFRS 16 eliminates the distinction between operating leases and finance leases for lessees and requires the recognition of right-of-use assets and lease liabilities on the balance sheet. The Company will elect to apply the exemptions for short-term leases and leases of low-value assets. Theses leases will not be required to be recognized on the balance sheet. The standard is effective for annual reporting periods beginning on or after January 1, 2019. The Company plans to adopt IFRS 16 on January 1, 2019 using the modified retrospective approach. As at December 31, 2018, the Company continues to evaluate and assess the potential effect of the adoption of IFRS 16 on its consolidated financial statements. The Company anticipates there will be an impact on its consolidated financial statements due to the operating lease commitments as disclosed in note 17. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Disclosure of detailed information about estimated useful life or depreciation rate [Table Text Block] | Office furniture and equipment 20% Computer equipment 45% Vehicle 30% Leasehold improvements term of lease |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Disclosure of detailed information about property, plant and equipment [Table Text Block] | Canadian Oil United States and Gas Oil and Gas Corporate and Properties Properties Other Assets Total $ $ $ $ Cost: Balance at January 1, 2017 33,628 16,372 182 50,182 Additions 405 39 5 449 Change in decommissioning provision 94 (3 ) - 91 Disposals - - (29 ) (29 ) Foreign currency translation and other - (1,060 ) - (1,060 ) Balance at December 31, 2017 34,127 15,348 158 49,633 Additions 778 1 2 781 Change in decommissioning provision (232 ) (2 ) - (234 ) Disposals (Note 11) - (486 ) (1 ) (487 ) Foreign currency translation and other - 1,363 - 1,363 Balance at December 31, 2018 34,673 16,224 159 51,056 |
Disclosure of detailed information about accumulated amortization, depletion and impairment losses of property and equipment [Table Text Block] | Canadian Oil United States and Gas Oil and Gas Corporate and Properties Properties Other Assets Total $ $ $ $ Accumulated amortization, depletion and impairment losses: Balance at January 1, 2017 (29,092 ) (1,714 ) (164 ) (30,970 ) Amortization and depletion (561 ) (223 ) (3 ) (787 ) Impairment losses (870 ) - - (870 ) Disposals - - 25 25 Foreign currency translation and other - 131 - 131 Balance at December 31, 2017 (30,523 ) (1,806 ) (142 ) (32,471 ) Amortization and depletion (Note 6) (951 ) (205 ) (4 ) (1,160 ) Impairment losses (Note 6) (3,100 ) (11,459 ) - (14,559 ) Foreign currency translation and other - (185 ) - (185 ) Balance at December 31, 2018 (34,574 ) (13,655 ) (146 ) (48,375 ) |
Disclosure of detailed information about carrying amount of property and equipment [Table Text Block] | Canadian Oil United States and Gas Oil and Gas Corporate and Properties Properties Other Assets Total $ $ $ $ Carrying amounts: At December 31, 2017 3,604 13,542 16 17,162 At December 31, 2018 99 2,569 13 2,681 |
Disclosure of detailed information about factors used to calculate the amortization and depletion [Table Text Block] | Estimated Future Development Costs Country CGU 2018 2017 $ $ Canada Drake/Woodrush Nil Nil United States Kokopelli 5,286 83,700 |
Disclosure of detailed information about commodity price estimates [Table Text Block] | Natural gas NGL Crude oil NYMEX Year (AECO) (Edmonton Pentanes Plus) (Edmonton Par) WTI Oil Henry Hub Gas Cdn $ / mmbtu Cdn $ / bbl Cdn $ / bbl US$ / bbl US$ / mmbtu 2019 1.85 67.67 63.33 56.25 3.00 2020 2.29 79.22 75.32 63.00 3.15 2021 2.67 83.54 79.75 67.00 3.35 2022 2.90 85.49 81.48 70.00 3.50 2023 3.14 87.80 83.54 72.50 3.63 2024 3.23 90.30 86.06 75.00 3.70 2025 3.34 93.33 89.09 77.50 3.77 2026 3.41 96.86 92.62 80.41 3.85 2027 3.48 98.81 94.57 82.02 3.93 2028 3.54 100.80 96.56 83.66 4.00 Each benchmark price increased on average approximately 2% thereafter |
AMORTIZATION, DEPLETION AND I_2
AMORTIZATION, DEPLETION AND IMPAIRMENT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Disclosure of impairment of assets [Table Text Block] | Year ended December 31 2018 2017 2016 $ $ $ Exploration and Evaluation Assets (E & E assets) Impairment losses 9 971 1,790 Property and Equipment (D & P assets) Amortization and depletion (Note 5) 1,160 787 1,633 Impairment losses (Note 5) 14,559 870 1,070 15,728 2,628 4,493 |
LOANS FROM RELATED PARTIES (Tab
LOANS FROM RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Hodgkinson Equity Corporation (HEC) [Member] | |
Statements Line Items | |
Disclosure of detailed information about debt activity [Table Text Block] | $ Balance upon initial recognition 2,337 Accretion expense 265 Cash interest (104 ) Balance at December 31, 2017 2,498 Accretion expense 539 Cash interest (200 ) Balance at December 31, 2018 2,837 Current portion (375 ) Non-current portion 2,462 |
Hodgkinson Ventures Inc. (HVI) [Member] | |
Statements Line Items | |
Disclosure of detailed information about debt activity [Table Text Block] | $ Balance upon initial recognition 1,039 Accretion expense 117 Cash interest (46 ) Balance at December 31, 2017 1,110 Accretion expense 241 Cash interest (93 ) Balance at December 31, 2018 1,258 Current portion (167 ) Non-current portion 1,091 |
CONVERTIBLE DEBT (Tables)
CONVERTIBLE DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Disclosure of detailed information about Convertible Debt [Table Text Block] | $ Balance upon initial recognition 381 Accretion expense 14 Cash interest (7 ) Balance at December 31, 2018 388 Current portion (32 ) Non-current portion 356 |
FLOW-THROUGH SHARES LIABILITY (
FLOW-THROUGH SHARES LIABILITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Disclosure of detailed information about liability portion of the flow-through shares issuances [Table Text Block] | Issued in Issued in October December 2017 2017 Total $ $ $ Balance at January 1, 2017 - - - Liability incurred on flow-through shares issued 21 93 114 Settlement of flow-through share liability on incurring expenditures (21 ) - (21 ) Balance at December 31, 2017 - 93 93 Settlement of flow-through share liability on incurring expenditures - (93 ) (93 ) Balance at December 31, 2018 - - - |
DECOMMISSIONING LIABILITY (Tabl
DECOMMISSIONING LIABILITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Disclosure of detailed information about decommissioning liability [Table Text Block] | Canadian United States Oil and Gas Oil and Gas Properties (1) Properties (1) Total $ $ $ Balance at January 1, 2017 3,636 140 3,776 Change in estimated future cash flows 146 (3 ) 143 Actual costs incurred and other (3 ) (8 ) (11 ) Unwinding of discount 60 3 63 Balance at December 31, 2017 3,839 132 3,971 Additions 60 - 60 Change in estimated future cash flows (296 ) (3 ) (299 ) Actual costs incurred and other (15 ) 12 (3 ) Unwinding of discount 76 3 79 Balance at December 31, 2018 3,664 144 3,808 (1) |
Disclosure of detailed information about present value of the decommissioning liability [Table Text Block] | Canadian Oil United States and Gas Oil and Gas Properties Properties As at December 31, 2018: Discount rate 1.94% 2.15% Inflation rate 2.00% 2.00% As at December 31, 2017: Discount rate 1.94% 2.20% Inflation rate 2.00% 2.00% |
FINANCIAL CONTRACT LIABILITY (T
FINANCIAL CONTRACT LIABILITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Disclosure of detailed information about financial contract liability [Table Text Block] | $ Balance at January 1, 2017 (US$5,382) 7,226 Foreign exchange gain (474 ) Balance at December 31, 2017 (US$5,382) 6,752 Non-cash consideration for settlement of the liability (US$356) (486 ) Gain on settlement of the liability (US$5,026) (6,857 ) Foreign exchange loss 591 Balance at December 31, 2018 - |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Disclosure of number and weighted average exercise prices of share options [Table Text Block] | Weighted Number of average options exercise price $ Balance at January 1, 2017 and December 31, 2017 3,400,000 0.16 Options granted 1,850,000 0.09 Options cancelled (400,000 ) 0.16 Balance at December 31, 2018 4,850,000 0.13 |
Disclosure of number and weighted average remaining contractual life of outstanding share options [Table Text Block] | Outstanding Exercisable Weighted average Weighted average Number exercise contractual Number exercise contractual of options price life (years) of options price life (years) $ $ $0.09 1,850,000 0.09 2.00 1,850,000 0.09 2.00 $0.16 3,000,000 0.16 2.43 3,000,000 0.16 2.43 4,850,000 0.13 2.26 4,850,000 0.13 2.26 |
Disclosure of detailed information about options, valuation assumptions [Table Text Block] | For the year ended December 31 2018 Fair value at grant date $ 0.04 Expected volatility 100.59% Expected option life 1.46 years Dividends 0.0% Risk-free interest rate 1.80% Estimated forfeiture rate 5.04% |
SUPPLEMENTAL INFORMATION (Table
SUPPLEMENTAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Disclosure of detailed information about supplemental cash flow information [Table Text Block] | Year ended December 31 2018 2017 2016 $ $ $ Changes in working capital: Accounts receivable 203 284 1,530 Prepaids and deposits (29 ) (10 ) 12 Accounts payable and accrued liabilities 766 15 (758 ) 940 289 784 Comprised of: Operating activities 720 219 667 Investing activities 214 32 178 Financing activities 6 38 (61 ) 940 289 784 Other cash flow information: Cash paid for interest 397 480 596 Income taxes paid - - - |
Disclosure of detailed information about per share amounts [Table Text Block] | Year ended December 31, 2018 2017 2016 Weighted average common shares outstanding Basic 103,606,088 61,682,462 42,095,366 Diluted 103,606,088 61,682,462 42,095,366 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Disclosure of detailed information about effective income tax expense recovery [Table Text Block] | 2018 2017 2016 $ $ $ Loss before income taxes (11,727 ) (5,232 ) (5,486 ) Corporate tax rate 27.00% 26.44% 26.59% Expected tax recovery (3,166 ) (1,383 ) (1,459 ) Increase (decrease) resulting from: Differences in foreign tax rates and change in statutory tax rates 73 6,381 (231 ) Impact of foreign exchange rate changes (1,343 ) 1,277 506 Change in unrecognized deferred tax assets 4,288 (6,507 ) 1,290 Stock based compensation and expiry of losses 148 33 198 Non taxable/deductible amounts - 199 (304 ) Deferred income tax recovery - - - |
Disclosure of deferred taxes [Table Text Block] | 2018 2017 2016 $ $ $ Deferred income tax assets Non-capital losses available 22,683 20,998 26,679 Capital losses available 1,113 1,113 1,072 Resource tax pools in excess of net book value 7,506 5,279 4,846 Share issue costs and others 1,030 654 1,171 Unrecognized deferred tax assets 32,332 28,044 33,768 |
Disclosure of detailed information about tax pools available [Table Text Block] | As at December 31 2018 2017 2016 $ $ $ Canada: Exploration and development expenditures 17,810 17,100 16,750 Unamortized share issue costs 176 261 292 Capital losses 8,242 8,242 8,242 Non-capital losses 34,979 33,120 30,783 61,207 58,723 56,067 United States: Exploration and development expenditures 9,317 15,883 17,149 Undeducted expenses 3,001 2,760 2,954 Non-capital losses 58,992 53,733 58,247 71,310 72,376 78,350 Total 132,517 131,099 134,417 |
Disclosure of detailed information about expiration of non capital losses for income tax [Table Text Block] | Canada United States Total $ $ $ 2026 24 2,753 2,777 2027 3,606 3,669 7,275 2028 4,674 276 4,950 2029 3,842 3,552 7,394 2030 2,068 3,017 5,085 2031 2,408 3,038 5,446 2032 4,372 8,271 12,643 2033 2,167 17,632 19,799 2034 3,966 13,773 17,739 2035 2,292 590 2,882 2036 1,815 1,783 3,598 2037 2,354 80 2,434 2038 1,391 558 1,949 34,979 58,992 93,971 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Disclosure of detailed information about commitments [Table Text Block] | Payments Due by Period 1 Year 2-3 Years 4-5 Years Total $ $ $ $ Debt repayments (1) 1,000 - 7,020 8,020 Interest payments (2) 50 - - 50 Operating leases 75 17 - 92 1,125 17 7,020 8,162 (1) Short-term and long-term loans from related parties and convertible debt (2) Fixed interest payments on loan from related parties of $1,000,000 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Disclosure of detailed information about revenue and expenses by reportable segments [Table Text Block] | Canada United States Total 2018 2017 2016 2018 2017 2016 2018 2017 2016 $ $ $ $ $ $ $ Year ended December 31 Revenues, net of royalties 1,219 1,814 3,190 525 666 883 1,744 2,480 4,073 Segmented loss (6,268 ) (4,948 ) (3,279 ) (5,364 ) (261 ) (2,207 ) (11,632 ) (5,209 ) (5,486 ) Amortization, depletion and impairment losses 4,062 1,785 2,324 11,666 844 2,169 15,728 2,629 4,493 Interest expense 901 950 1,236 - - 294 901 950 1,530 Capital expenditures 780 414 305 1 42 225 781 456 530 |
DETERMINATION OF FAIR VALUES (T
DETERMINATION OF FAIR VALUES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Disclosure of fair value of financial instruments [Table Text Block] | Quoted Prices in Significant Other Significant Carrying Fair Active Markets Observable Inputs Unobservable December 31, 2018 Amount Value (Level 1) (Level 2) Inputs (Level 3) $ $ $ $ $ Financial Assets: Cash and cash equivalents 26 26 26 - - Accounts receivable 185 185 185 - - Financial Liabilities: Accounts payable 1,507 1,507 1,507 - - Loans from related parties 5,095 5,095 - - 5,095 Convertible debt 388 388 - - 388 Quoted Prices in Significant Other Significant Carrying Fair Active Markets Observable Inputs Unobservable December 31, 2017 Amount Value (Level 1) (Level 2) Inputs (Level 3) $ $ $ $ $ Financial Assets: Cash and cash equivalents 1,010 1,010 1,010 - - Accounts receivable 388 388 388 - - Financial Liabilities: Accounts payable 658 658 658 - - Loans from related parties 4,608 4,608 - - 4,608 Financial contract liability 6,752 6,752 - - 6,752 |
FINANCIAL INSTRUMENTS AND CAP_2
FINANCIAL INSTRUMENTS AND CAPITAL MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Disclosure of detailed information about foreign currency risk [Table Text Block] | 2018 2017 Expressed in foreign currencies CND$ CND$ Cash and cash equivalents 17 30 Accounts receivable 100 228 Accounts payable and accrued liabilities (199 ) (213 ) Balance sheet exposure (82 ) 45 |
Disclosure of detailed information about exposed foreign currency risk [Table Text Block] | 2018 2017 December 31, reporting date rate 1.3642 1.2545 YTD average USD to CAD 1.2957 1.2986 |
BASIS OF PRESENTATION (Narrativ
BASIS OF PRESENTATION (Narrative) (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statements Line Items | |||
Loss | $ (11,632) | $ (5,209) | $ (5,486) |
Working capital deficiency | 3,400 | ||
Accumulated deficit | $ (127,477) | $ (115,845) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements Line Items | ||
Proportion of ownership interest in joint operation | 99.00% | 99.00% |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statements Line Items | |||
Gain on settlement of financial contract liability | $ 6,857 | ||
Impairment loss recognised in profit or loss, property and equipment | $ 14,559 | $ 870 | $ 1,070 |
Minimum [Member] | |||
Statements Line Items | |||
Discount rate used to calculate the net present value of cash flows | 12.75% | ||
Maximum [Member] | |||
Statements Line Items | |||
Discount rate used to calculate the net present value of cash flows | 14.50% | ||
Canada, Drake/Woodrush [Member] | |||
Statements Line Items | |||
Impairment loss recognised in profit or loss, property and equipment | $ 3,100 | 870 | |
United States, Kokopelli [Member] | |||
Statements Line Items | |||
Impairment loss recognised in profit or loss, property and equipment | $ 11,459 |
LOANS FROM RELATED PARTIES (Nar
LOANS FROM RELATED PARTIES (Narrative) (Details) - CAD ($) | Jun. 05, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Apr. 02, 2018 |
Statements Line Items | ||||
Interest payable | $ 50,000 | $ 50,000 | ||
Deferred payment of interest | $ 15,000 | |||
Loan from Hodgkinson Equity Corporation (HEC) [Member] | $4,500,000 loan | ||||
Statements Line Items | ||||
Borrowings | $ 4,500,000 | |||
Borrowings, interest rate basis | Canadian prime rate plus 1% per annum | |||
Borrowings, convertible, amount of shares | 58,441,558 | |||
Borrowings, convertible, conversion rate | $ 0.077 | |||
Borrowings, interest rate basis upon default | The interest rate is immediately increased to Canadian prime rate plus 4.5% per annum | |||
Loan from Hodgkinson Equity Corporation (HEC) [Member] | $4,500,000 loan | Events after reporting period [Member] | ||||
Statements Line Items | ||||
Conversion of convertible debt, amount converted | $ 2,500,000 | |||
Conversion of convertible debt, shares issued | 41,666,666 | |||
Loan from Hodgkinson Equity Corporation (HEC) [Member] | $1,000,000 loan | ||||
Statements Line Items | ||||
Borrowings | $ 1,000,000 | |||
Borrowings, interest rate | 10.00% | |||
Mortgage used as security for loan | $ 1,000,000 | |||
Loan from Hodgkinson Equity Corporation (HEC) [Member] | $1,000,000 loan | Events after reporting period [Member] | ||||
Statements Line Items | ||||
Conversion of convertible debt, amount converted | $ 1,000,000 | |||
Conversion of convertible debt, shares issued | 16,666,666 | |||
Loan from Hodgkinson Ventures Inc. (HVI) [Member] | ||||
Statements Line Items | ||||
Borrowings | $ 2,000,000 | |||
Borrowings, interest rate basis | Canadian prime rate plus 1% per annum | |||
Borrowings, convertible, amount of shares | 25,974,025 | |||
Borrowings, convertible, conversion rate | $ 0.077 | |||
Borrowings, interest rate basis upon default | The interest rate is immediately increased to Canadian prime rate plus 4.5% per annum |
CONVERTIBLE DEBT (Narrative) (D
CONVERTIBLE DEBT (Narrative) (Details) - Four arms length US accredited investors [Member] - CAD ($) | Oct. 05, 2018 | Feb. 14, 2019 | Jan. 16, 2019 | Oct. 31, 2018 |
Statements Line Items | ||||
Borrowings, interest rate basis | Canadian prime rate plus 1% | |||
Borrowings, convertible, amount of shares | 12,999,998 | |||
Borrowings, convertible, conversion rate | $ 0.06 | |||
Risk-adjusted rate | 13.00% | |||
Fair value of liability component | $ 407,000 | |||
Financing costs allocated to liability and equity components | 34,000 | |||
Financing costs allocated to equity component | 8,000 | |||
Financing costs allocated to liability component | $ 26,000 | |||
Events after reporting period [Member] | ||||
Statements Line Items | ||||
Conversion of convertible debt, amount converted | $ 780,000 | |||
Conversion of convertible debt, shares issued | 12,999,998 | |||
Tranche One [Member] | ||||
Statements Line Items | ||||
Proceeds from closing of convertible debt | $ 520,000 | |||
Tranche Two [Member] | Events after reporting period [Member] | ||||
Statements Line Items | ||||
Proceeds from closing of convertible debt | $ 260,000 |
FINANCIAL CONTRACT LIABILITY (N
FINANCIAL CONTRACT LIABILITY (Narrative) (Details) $ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | |
Statements Line Items | ||
Gain on settlement of financial contract liability | $ 6,857 | |
Dejour USA [Member] | ||
Statements Line Items | ||
Amount contributed by Drilling Fund | $ 7,000 | |
Explanation of estimated financial effect of contingent liabilities | A subsequent amendment limited Dejour USA's cash exposure to a potential "put" by the Drilling Fund to US$3,000,000, with the difference to be settled by an assignment of working interests in certain P&NG properties owned by Dejour USA. | A subsequent amendment limited Dejour USA's cash exposure to a potential "put" by the Drilling Fund to US$3,000,000, with the difference to be settled by an assignment of working interests in certain P&NG properties owned by Dejour USA. |
Gain on settlement of financial contract liability | $ 6,857 | $ 5,026 |
SHARE CAPITAL (Narrative) (Deta
SHARE CAPITAL (Narrative) (Details) - CAD ($) | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||
Jan. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2017 | Jul. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statements Line Items | ||||||
Flow-through shares renounced | $ 523,000 | $ 149,000 | ||||
Deferred income tax recovery on settlement of flow-through shares liability | $ 93,000 | $ 21,000 | ||||
Shares issued via private placements, net of issuance costs (Shares) | 8,633,166 | 42,297,400 | 8,298,333 | 58,797,802 | 8,298,333 | |
Equity issuance, price per share | $ 0.075 | $ 0.06 | $ 0.12 | |||
Proceeds from issuing shares | $ 647,000 | $ 2,538,000 | $ 995,800 | $ 2,332,000 | $ 884,000 | |
Flow-through shares issued during period | 5,738,665 | |||||
Proceeds from flow-through shares issued | 523,000 | |||||
Payments for finders' fees | 51,000 | 41,000 | 18,000 | |||
Payments for other share issue costs | $ 24,000 | $ 23,000 | $ 29,000 | |||
Shares issued during period to directors, officers, and certain creditors | 21,924,067 | |||||
Shares issued during period for settle amounts owing | 946,667 | 3,956,423 | ||||
Flow-through shares 1 [Member] | ||||||
Statements Line Items | ||||||
Equity issuance, price per share | $ 0.09 | $ 0.07 | ||||
Flow-through shares issued during period | 5,091,165 | 2,128,571 | ||||
Proceeds from flow-through shares issued | 149,000 | |||||
Flow-through shares 2 [Member] | ||||||
Statements Line Items | ||||||
Equity issuance, price per share | $ 0.10 | |||||
Flow-through shares issued during period | 647,500 | |||||
Directors and Officers [Member] | ||||||
Statements Line Items | ||||||
Shares issued via private placements, net of issuance costs (Shares) | 17,967,644 | 3,600,000 |
STOCK OPTIONS (Narrative) (Deta
STOCK OPTIONS (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Statements Line Items | |
Percentage of shares reserved for issuance under stock option plan | 10.00% |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statements Line Items | |||
Key management personnel compensation, short-term employee benefits | $ 230,000 | $ 466,000 | $ 470,000 |
Key management personnel compensation, share-based payment | 77,000 | 0 | 80,000 |
Amounts payable, related party transactions | 207,000 | 131,000 | 262,000 |
Interest expenses, related party transactions | 397,000 | 370,000 | 595,000 |
Interest expenses paid by shares, related party transactions | $ 0 | $ 139,000 | $ 0 |
COMMITMENTS (Narrative) (Detail
COMMITMENTS (Narrative) (Details) | Dec. 31, 2018CAD ($) |
Statements Line Items | |
Loan from related parties | $ 1,000,000 |
FINANCIAL INSTRUMENTS AND CAP_3
FINANCIAL INSTRUMENTS AND CAPITAL MANAGEMENT (Narrative) (Details) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Statements Line Items | ||
Receivables due from joint ventures | $ 137,000 | $ 196,000 |
Receivables due from oil and natural gas marketers | 12,000 | 121,000 |
Other trade receivables | $ 36,000 | 71,000 |
Foreign Currency Exchange Risk [Member] | ||
Statements Line Items | ||
Sensitivity analysis, confidence interval | 10.00% | |
Value at risk | $ 8,000 | (5,000) |
Interest Rate Risk [Member] | ||
Statements Line Items | ||
Sensitivity analysis, confidence interval | 1.00% | |
Value at risk | $ 70,000 | |
Commodity Price Risk [Member] | ||
Statements Line Items | ||
Sensitivity analysis, confidence interval (oil price per bbl) | 1 | |
Sensitivity analysis, confidence interval (gas price per mcf) | 0.01 | |
Value at risk | 25,000 | |
Past due [Member] | ||
Statements Line Items | ||
Value at risk | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||||
Feb. 14, 2019CAD ($)shares | Oct. 31, 2018$ / sharesshares | Dec. 31, 2017CAD ($) | Oct. 31, 2017CAD ($) | Jul. 31, 2016CAD ($) | Dec. 31, 2018CAD ($)Share$ / sharesshares | Dec. 31, 2017CAD ($) | Dec. 31, 2016CAD ($) | |
Statements Line Items | ||||||||
Number of share options granted in share-based payment arrangement | Share | 1,850,000 | |||||||
Weighted average exercise price of share options granted in share-based payment arrangement | $ 0.09 | |||||||
Gross and net proceeds from issuance of shares | $ 647,000 | $ 2,538,000 | $ 995,800 | $ 2,332,000 | $ 884,000 | |||
Four arms length US accredited investors [Member] | ||||||||
Statements Line Items | ||||||||
Stock issued price per share | $ / shares | $ 0.06 | |||||||
Common shares issued for conversion of convertible securities | shares | 12,999,998 | |||||||
Events after reporting period [Member] | ||||||||
Statements Line Items | ||||||||
Conversion of secured loans, amount converted | $ 3,500,000 | |||||||
Conversion of secured loans, shares issued | shares | 58,333,332 | |||||||
Events after reporting period [Member] | Four arms length US accredited investors [Member] | ||||||||
Statements Line Items | ||||||||
Conversion of convertible debt, amount converted | $ 780,000 | |||||||
Conversion of convertible debt, shares issued | shares | 12,999,998 | |||||||
Events after reporting period [Member] | Senior officer | ||||||||
Statements Line Items | ||||||||
Number of share options granted in share-based payment arrangement | Share | 3,500,000 | |||||||
Weighted average exercise price of share options granted in share-based payment arrangement | $ 0.06 | |||||||
Events after reporting period [Member] | Private placement | ||||||||
Statements Line Items | ||||||||
Number of share options granted in share-based payment arrangement | Share | 33,052,334 | |||||||
Stock issued price per share | $ / shares | $ 0.06 | |||||||
Gross and net proceeds from issuance of shares | $ 1,983,000 |
Disclosure of detailed informat
Disclosure of detailed information about estimated useful life or depreciation rate (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Office furniture and equipment [Member] | |
Statements Line Items | |
Useful lives or depreciation rates, property, plant and equipment | 20% |
Computer equipment [Member] | |
Statements Line Items | |
Useful lives or depreciation rates, property, plant and equipment | 45% |
Vehicle [Member] | |
Statements Line Items | |
Useful lives or depreciation rates, property, plant and equipment | 30% |
Leasehold improvements [Member] | |
Statements Line Items | |
Useful lives or depreciation rates, property, plant and equipment | term of lease |
Disclosure of detailed inform_2
Disclosure of detailed information about property, plant and equipment (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements Line Items | ||
Property and equipment at beginning of period | $ 17,162 | |
Property and equipment at end of period | 2,681 | $ 17,162 |
Canadian Oil and Gas Properties [Member] | ||
Statements Line Items | ||
Property and equipment at beginning of period | 3,604 | |
Property and equipment at end of period | 99 | 3,604 |
United States Oil and Gas Properties [Member] | ||
Statements Line Items | ||
Property and equipment at beginning of period | 13,542 | |
Property and equipment at end of period | 2,569 | 13,542 |
Corporate and Other Assets [Member] | ||
Statements Line Items | ||
Property and equipment at beginning of period | 16 | |
Property and equipment at end of period | 13 | 16 |
Cost [Member] | ||
Statements Line Items | ||
Property and equipment at beginning of period | 49,633 | 50,182 |
Additions | 781 | 449 |
Change in decommissioning provision | (234) | 91 |
Disposals | (487) | (29) |
Foreign currency translation and other | 1,363 | (1,060) |
Property and equipment at end of period | 51,056 | 49,633 |
Cost [Member] | Canadian Oil and Gas Properties [Member] | ||
Statements Line Items | ||
Property and equipment at beginning of period | 34,127 | 33,628 |
Additions | 778 | 405 |
Change in decommissioning provision | (232) | 94 |
Disposals | 0 | 0 |
Foreign currency translation and other | 0 | 0 |
Property and equipment at end of period | 34,673 | 34,127 |
Cost [Member] | United States Oil and Gas Properties [Member] | ||
Statements Line Items | ||
Property and equipment at beginning of period | 15,348 | 16,372 |
Additions | 1 | 39 |
Change in decommissioning provision | (2) | (3) |
Disposals | (486) | 0 |
Foreign currency translation and other | 1,363 | (1,060) |
Property and equipment at end of period | 16,224 | 15,348 |
Cost [Member] | Corporate and Other Assets [Member] | ||
Statements Line Items | ||
Property and equipment at beginning of period | 158 | 182 |
Additions | 2 | 5 |
Change in decommissioning provision | 0 | 0 |
Disposals | (1) | (29) |
Foreign currency translation and other | 0 | 0 |
Property and equipment at end of period | $ 159 | $ 158 |
Disclosure of detailed inform_3
Disclosure of detailed information about accumulated amortization, depletion and impairment losses of property and equipment (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statements Line Items | |||
Property and equipment at beginning of period | $ (17,162) | ||
Amortization and depletion | (1,160) | $ (787) | $ (1,633) |
Impairment losses | (14,559) | (870) | (1,070) |
Property and equipment at end of period | (2,681) | (17,162) | |
Canadian Oil and Gas Properties [Member] | |||
Statements Line Items | |||
Property and equipment at beginning of period | (3,604) | ||
Property and equipment at end of period | (99) | (3,604) | |
United States Oil and Gas Properties [Member] | |||
Statements Line Items | |||
Property and equipment at beginning of period | (13,542) | ||
Property and equipment at end of period | (2,569) | (13,542) | |
Corporate and Other Assets [Member] | |||
Statements Line Items | |||
Property and equipment at beginning of period | (16) | ||
Property and equipment at end of period | (13) | (16) | |
Accumulated amortization, depletion and impairment losses [Member] | |||
Statements Line Items | |||
Property and equipment at beginning of period | (32,471) | (30,970) | |
Amortization and depletion | (1,160) | (787) | |
Impairment losses | (14,559) | (870) | |
Disposals | 25 | ||
Foreign currency translation and other | (185) | 131 | |
Property and equipment at end of period | (48,375) | (32,471) | (30,970) |
Accumulated amortization, depletion and impairment losses [Member] | Canadian Oil and Gas Properties [Member] | |||
Statements Line Items | |||
Property and equipment at beginning of period | (30,523) | (29,092) | |
Amortization and depletion | (951) | (561) | |
Impairment losses | (3,100) | (870) | |
Disposals | 0 | ||
Foreign currency translation and other | 0 | 0 | |
Property and equipment at end of period | (34,574) | (30,523) | (29,092) |
Accumulated amortization, depletion and impairment losses [Member] | United States Oil and Gas Properties [Member] | |||
Statements Line Items | |||
Property and equipment at beginning of period | (1,806) | (1,714) | |
Amortization and depletion | (205) | (223) | |
Impairment losses | (11,459) | 0 | |
Disposals | 0 | ||
Foreign currency translation and other | (185) | 131 | |
Property and equipment at end of period | (13,655) | (1,806) | (1,714) |
Accumulated amortization, depletion and impairment losses [Member] | Corporate and Other Assets [Member] | |||
Statements Line Items | |||
Property and equipment at beginning of period | (142) | (164) | |
Amortization and depletion | (4) | (3) | |
Impairment losses | 0 | 0 | |
Disposals | 25 | ||
Foreign currency translation and other | 0 | 0 | |
Property and equipment at end of period | $ (146) | $ (142) | $ (164) |
Disclosure of detailed inform_4
Disclosure of detailed information about carrying amount of property and equipment (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statements Line Items | ||
Property and equipment | $ 2,681 | $ 17,162 |
Canadian Oil and Gas Properties [Member] | ||
Statements Line Items | ||
Property and equipment | 99 | 3,604 |
United States Oil and Gas Properties [Member] | ||
Statements Line Items | ||
Property and equipment | 2,569 | 13,542 |
Corporate and Other Assets [Member] | ||
Statements Line Items | ||
Property and equipment | $ 13 | $ 16 |
Disclosure of detailed inform_5
Disclosure of detailed information about factors used to calculate the amortization and depletion (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Canada, Drake/Woodrush [Member] | ||
Statements Line Items | ||
Estimated Future Development Costs | ||
United States, Kokopelli [Member] | ||
Statements Line Items | ||
Estimated Future Development Costs | $ 5,286 | $ 83,700 |
Disclosure of detailed inform_6
Disclosure of detailed information about commodity price estimates (Details) | Dec. 31, 2018CAD ($) |
Statements Line Items | |
Benchmark price increase thereafter | 2.00% |
Natural gas (AECO) [Member] | 2019 [Member] | |
Statements Line Items | |
Forward commodity price estimate | $ 1.85 |
Natural gas (AECO) [Member] | 2020 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 2.29 |
Natural gas (AECO) [Member] | 2021 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 2.67 |
Natural gas (AECO) [Member] | 2022 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 2.90 |
Natural gas (AECO) [Member] | 2023 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3.14 |
Natural gas (AECO) [Member] | 2024 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3.23 |
Natural gas (AECO) [Member] | 2025 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3.34 |
Natural gas (AECO) [Member] | 2026 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3.41 |
Natural gas (AECO) [Member] | 2027 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3.48 |
Natural gas (AECO) [Member] | 2028 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3.54 |
NGL (Edmonton Pentanes Plus) [Member] | 2019 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 67.67 |
NGL (Edmonton Pentanes Plus) [Member] | 2020 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 79.22 |
NGL (Edmonton Pentanes Plus) [Member] | 2021 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 83.54 |
NGL (Edmonton Pentanes Plus) [Member] | 2022 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 85.49 |
NGL (Edmonton Pentanes Plus) [Member] | 2023 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 87.80 |
NGL (Edmonton Pentanes Plus) [Member] | 2024 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 90.30 |
NGL (Edmonton Pentanes Plus) [Member] | 2025 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 93.33 |
NGL (Edmonton Pentanes Plus) [Member] | 2026 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 96.86 |
NGL (Edmonton Pentanes Plus) [Member] | 2027 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 98.81 |
NGL (Edmonton Pentanes Plus) [Member] | 2028 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 100.80 |
Crude oil (Edmonton Par) [Member] | 2019 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 63.33 |
Crude oil (Edmonton Par) [Member] | 2020 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 75.32 |
Crude oil (Edmonton Par) [Member] | 2021 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 79.75 |
Crude oil (Edmonton Par) [Member] | 2022 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 81.48 |
Crude oil (Edmonton Par) [Member] | 2023 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 83.54 |
Crude oil (Edmonton Par) [Member] | 2024 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 86.06 |
Crude oil (Edmonton Par) [Member] | 2025 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 89.09 |
Crude oil (Edmonton Par) [Member] | 2026 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 92.62 |
Crude oil (Edmonton Par) [Member] | 2027 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 94.57 |
Crude oil (Edmonton Par) [Member] | 2028 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 96.56 |
WTI Oil [Member] | 2019 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 56.25 |
WTI Oil [Member] | 2020 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 63 |
WTI Oil [Member] | 2021 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 67 |
WTI Oil [Member] | 2022 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 70 |
WTI Oil [Member] | 2023 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 72.50 |
WTI Oil [Member] | 2024 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 75 |
WTI Oil [Member] | 2025 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 77.50 |
WTI Oil [Member] | 2026 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 80.41 |
WTI Oil [Member] | 2027 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 82.02 |
WTI Oil [Member] | 2028 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 83.66 |
NYMEX Henry Hub Gas [Member] | 2019 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3 |
NYMEX Henry Hub Gas [Member] | 2020 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3.15 |
NYMEX Henry Hub Gas [Member] | 2021 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3.35 |
NYMEX Henry Hub Gas [Member] | 2022 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3.50 |
NYMEX Henry Hub Gas [Member] | 2023 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3.63 |
NYMEX Henry Hub Gas [Member] | 2024 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3.70 |
NYMEX Henry Hub Gas [Member] | 2025 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3.77 |
NYMEX Henry Hub Gas [Member] | 2026 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3.85 |
NYMEX Henry Hub Gas [Member] | 2027 [Member] | |
Statements Line Items | |
Forward commodity price estimate | 3.93 |
NYMEX Henry Hub Gas [Member] | 2028 [Member] | |
Statements Line Items | |
Forward commodity price estimate | $ 4 |
Disclosure of impairment of ass
Disclosure of impairment of assets (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statements Line Items | |||
Impairment losses (E & E assets) | $ 9 | $ 971 | $ 1,790 |
Amortization and depletion (D & P assets) | 1,160 | 787 | 1,633 |
Impairment losses (D & P assets) | 14,559 | 870 | 1,070 |
Amortization, depletion and impairment losses | $ 15,728 | $ 2,628 | $ 4,493 |
Disclosure of detailed inform_7
Disclosure of detailed information about debt activity (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statements Line Items | ||
Cash interest | $ (50) | |
Hodgkinson Equity Corporation (HEC) [Member] | ||
Statements Line Items | ||
Balance upon initial recognition | $ 2,337 | |
Accretion expense | 539 | 265 |
Cash interest | (200) | (104) |
Borrowings | 2,837 | 2,498 |
Current portion | (375) | |
Non-current portion | 2,462 | |
Hodgkinson Ventures Inc. (HVI) [Member] | ||
Statements Line Items | ||
Balance upon initial recognition | 1,039 | |
Accretion expense | 241 | 117 |
Cash interest | (93) | (46) |
Borrowings | 1,258 | $ 1,110 |
Current portion | (167) | |
Non-current portion | $ 1,091 |
Disclosure of detailed inform_8
Disclosure of detailed information about carrying value of the convertible debt (Details) $ in Thousands | 2 Months Ended |
Dec. 31, 2018CAD ($) | |
Statements Line Items | |
Balance at Beginning | $ 381 |
Accretion expense | 14 |
Cash interest | (7) |
Balance at Ending | 388 |
Current portion | (32) |
Non-current portion | $ 356 |
Disclosure of detailed inform_9
Disclosure of detailed information about liability portion of the flow-through shares issuances (Details) - CAD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Oct. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statements Line Items | ||||
Flow-through shares liability, beginning of period | $ 93 | |||
Liability incurred on flow-through shares issued | $ 93 | $ 21 | $ 114 | |
Settlement of flow-through share liability on incurring expenditures | 0 | (21) | $ (93) | (21) |
Flow-through shares liability, end of period | $ 93 | $ 0 | $ 93 |
Disclosure of detailed infor_10
Disclosure of detailed information about decommissioning liability (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements Line Items | ||
Decommissioning liability, beginning of period | $ 3,971 | $ 3,776 |
Additions | 60 | |
Change in estimated future cash flows | (299) | 143 |
Actual costs incurred and other | (3) | (11) |
Unwinding of discount | 79 | 63 |
Decommissioning liability, end of period | 3,808 | 3,971 |
Canadian Oil and Gas Properties [Member] | ||
Statements Line Items | ||
Decommissioning liability, beginning of period | 3,839 | 3,636 |
Additions | 60 | |
Change in estimated future cash flows | (296) | 146 |
Actual costs incurred and other | (15) | (3) |
Unwinding of discount | 76 | 60 |
Decommissioning liability, end of period | 3,664 | 3,839 |
United States Oil and Gas Properties [Member] | ||
Statements Line Items | ||
Decommissioning liability, beginning of period | 132 | 140 |
Additions | 0 | |
Change in estimated future cash flows | (3) | (3) |
Actual costs incurred and other | 12 | (8) |
Unwinding of discount | 3 | 3 |
Decommissioning liability, end of period | $ 144 | $ 132 |
Disclosure of detailed infor_11
Disclosure of detailed information about present value of the decommissioning liability (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Canadian Oil and Gas Properties [Member] | ||
Statements Line Items | ||
Discount rate | 1.94% | 1.94% |
Inflation rate | 2.00% | 2.00% |
United States Oil and Gas Properties [Member] | ||
Statements Line Items | ||
Discount rate | 2.15% | 2.20% |
Inflation rate | 2.00% | 2.00% |
Disclosure of detailed infor_12
Disclosure of detailed information about financial contract liability (Details) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2017USD ($) | |
Statements Line Items | ||||
Gain on settlement of financial contract liability | $ (6,857) | |||
Dejour USA [Member] | ||||
Statements Line Items | ||||
Financial contract liability, beginning of period | 6,752 | $ 5,382 | $ 7,226 | $ 5,382 |
Non-cash consideration for settlement of the liability | (486) | (356) | ||
Gain on settlement of financial contract liability | (6,857) | $ (5,026) | ||
Foreign exchange gain (loss) | 591 | (474) | ||
Financial contract liability, end of period | $ 0 | $ 6,752 | $ 5,382 |
Disclosure of number and weight
Disclosure of number and weighted average exercise prices of share options (Details) | 12 Months Ended |
Dec. 31, 2018CAD ($)Share | |
Statements Line Items | |
Number of share options outstanding in share-based payment arrangement at beginning of period | Share | 3,400,000 |
Weighted average exercise price of share options outstanding in share-based payment arrangement at beginning of period | $ | $ 0.16 |
Number of share options granted in share-based payment arrangement | Share | 1,850,000 |
Weighted average exercise price of share options granted in share-based payment arrangement | $ | $ 0.09 |
Number of share options expired in share-based payment arrangement | Share | (400,000) |
Weighted average exercise price of share options expired in share-based payment arrangement | $ | $ 0.16 |
Number of share options outstanding in share-based payment arrangement at end of period | Share | 4,850,000 |
Weighted average exercise price of share options outstanding in share-based payment arrangement at end of period | $ | $ 0.13 |
Disclosure of number and weig_2
Disclosure of number and weighted average remaining contractual life of outstanding share options (Details) | Dec. 31, 2018CAD ($)ShareYear | Dec. 31, 2017CAD ($)Share |
Statements Line Items | ||
Number of share options outstanding in share-based payment arrangement | Share | 4,850,000 | 3,400,000 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ 0.13 | $ 0.16 |
Weighted average remaining contractual life of outstanding share options | Year | 2.26 | |
Number of share options exercisable in share-based payment arrangement | Share | 4,850,000 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ 0.13 | |
Weighted average remaining contractual life of exercisable share options | Year | 2.26 | |
Exercise price of $0.09 [Member] | ||
Statements Line Items | ||
Exercise price of outstanding share options | $ 0.09 | |
Number of share options outstanding in share-based payment arrangement | Share | 1,850,000 | |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ 0.09 | |
Weighted average remaining contractual life of outstanding share options | Year | 2 | |
Number of share options exercisable in share-based payment arrangement | Share | 1,850,000 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ 0.09 | |
Weighted average remaining contractual life of exercisable share options | Year | 2 | |
Exercise price of $0.16 [Member] | ||
Statements Line Items | ||
Exercise price of outstanding share options | $ 0.16 | |
Number of share options outstanding in share-based payment arrangement | Share | 3,000,000 | |
Weighted average exercise price of share options outstanding in share-based payment arrangement | $ 0.16 | |
Weighted average remaining contractual life of outstanding share options | Year | 2.43 | |
Number of share options exercisable in share-based payment arrangement | Share | 3,000,000 | |
Weighted average exercise price of share options exercisable in share-based payment arrangement | $ 0.16 | |
Weighted average remaining contractual life of exercisable share options | Year | 2.43 |
Disclosure of detailed infor_13
Disclosure of detailed information about options, valuation assumptions (Details) | 12 Months Ended |
Dec. 31, 2018CAD ($)Year | |
Statements Line Items | |
Fair value at grant date | $ | $ 0.04 |
Expected volatility | 100.59% |
Expected option life | Year | 1.46 |
Dividends | 0.00% |
Risk-free interest rate | 1.80% |
Estimated forfeiture rate | 5.04% |
Disclosure of detailed infor_14
Disclosure of detailed information about supplemental cash flow information (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statements Line Items | |||
Accounts receivable | $ 203 | $ 284 | $ 1,530 |
Prepaids and deposits | (29) | (10) | 12 |
Accounts payable and accrued liabilities | 766 | 15 | (758) |
Changes in operating working capital | 720 | 219 | 667 |
Changes in investing working capital | 214 | 32 | 178 |
Changes in financing working capital | 6 | 38 | (61) |
Changes in working capital | 940 | 289 | 784 |
Cash paid for interest | 397 | 480 | 596 |
Income taxes paid | $ 0 | $ 0 | $ 0 |
Disclosure of detailed infor_15
Disclosure of detailed information about per share amounts (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statements Line Items | |||
Weighted average common shares outstanding Basic | 103,606,088 | 61,682,462 | 42,095,366 |
Weighted average common shares outstanding Diluted | 103,606,088 | 61,682,462 | 42,095,366 |
Disclosure of detailed infor_16
Disclosure of detailed information about effective income tax expense recovery (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statements Line Items | |||
Loss before income taxes | $ (11,727) | $ (5,232) | $ (5,486) |
Corporate tax rate | 27.00% | 26.44% | 26.59% |
Expected tax recovery | $ (3,166) | $ (1,383) | $ (1,459) |
Differences in foreign tax rates and change in statutory tax rates | 73 | 6,381 | (231) |
Impact of foreign exchange rate changes | (1,343) | 1,277 | 506 |
Change in unrecognized deferred tax assets | 4,288 | (6,507) | 1,290 |
Stock based compensation and expiry of losses | 148 | 33 | 198 |
Non taxable/deductible amounts | 0 | 199 | (304) |
Deferred income tax recovery | $ 0 | $ 0 | $ 0 |
Disclosure of deferred taxes (D
Disclosure of deferred taxes (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statements Line Items | |||
Unrecognized deferred tax assets | $ 32,332 | $ 28,044 | $ 33,768 |
Non-capital losses available [Member] | |||
Statements Line Items | |||
Unrecognized deferred tax assets | 22,683 | 20,998 | 26,679 |
Capital losses available [Member] | |||
Statements Line Items | |||
Unrecognized deferred tax assets | 1,113 | 1,113 | 1,072 |
Resource tax pools in excess of net book value [Member] | |||
Statements Line Items | |||
Unrecognized deferred tax assets | 7,506 | 5,279 | 4,846 |
Share issue costs and others [Member] | |||
Statements Line Items | |||
Unrecognized deferred tax assets | $ 1,030 | $ 654 | $ 1,171 |
Disclosure of detailed infor_17
Disclosure of detailed information about tax pools available (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statements Line Items | |||
Deferred tax assets | $ 132,517 | $ 131,099 | $ 134,417 |
Non-capital losses [Member] | |||
Statements Line Items | |||
Deferred tax assets | 93,971 | ||
Canada [Member] | |||
Statements Line Items | |||
Deferred tax assets | 61,207 | 58,723 | 56,067 |
Canada [Member] | Exploration and development expenditures [Member] | |||
Statements Line Items | |||
Deferred tax assets | 17,810 | 17,100 | 16,750 |
Canada [Member] | Unamortized share issue costs [Member] | |||
Statements Line Items | |||
Deferred tax assets | 176 | 261 | 292 |
Canada [Member] | Capital losses [Member] | |||
Statements Line Items | |||
Deferred tax assets | 8,242 | 8,242 | 8,242 |
Canada [Member] | Non-capital losses [Member] | |||
Statements Line Items | |||
Deferred tax assets | 34,979 | 33,120 | 30,783 |
United States [Member] | |||
Statements Line Items | |||
Deferred tax assets | 71,310 | 72,376 | 78,350 |
United States [Member] | Exploration and development expenditures [Member] | |||
Statements Line Items | |||
Deferred tax assets | 9,317 | 15,883 | 17,149 |
United States [Member] | Undeducted expenses [Member] | |||
Statements Line Items | |||
Deferred tax assets | 3,001 | 2,760 | 2,954 |
United States [Member] | Non-capital losses [Member] | |||
Statements Line Items | |||
Deferred tax assets | $ 58,992 | $ 53,733 | $ 58,247 |
Disclosure of detailed infor_18
Disclosure of detailed information about expiration of non capital losses for income tax (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statements Line Items | |||
Deferred tax assets | $ 132,517 | $ 131,099 | $ 134,417 |
Non-capital losses [Member] | |||
Statements Line Items | |||
Deferred tax assets | 93,971 | ||
Non-capital losses [Member] | 2026 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 2,777 | ||
Non-capital losses [Member] | 2027 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 7,275 | ||
Non-capital losses [Member] | 2028 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 4,950 | ||
Non-capital losses [Member] | 2029 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 7,394 | ||
Non-capital losses [Member] | 2030 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 5,085 | ||
Non-capital losses [Member] | 2031 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 5,446 | ||
Non-capital losses [Member] | 2032 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 12,643 | ||
Non-capital losses [Member] | 2033 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 19,799 | ||
Non-capital losses [Member] | 2034 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 17,739 | ||
Non-capital losses [Member] | 2035 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 2,882 | ||
Non-capital losses [Member] | 2036 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 3,598 | ||
Non-capital losses [Member] | 2037 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 2,434 | ||
Non-capital losses [Member] | 2038 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 1,949 | ||
Canada [Member] | |||
Statements Line Items | |||
Deferred tax assets | 61,207 | 58,723 | 56,067 |
Canada [Member] | Non-capital losses [Member] | |||
Statements Line Items | |||
Deferred tax assets | 34,979 | 33,120 | 30,783 |
Canada [Member] | Non-capital losses [Member] | 2026 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 24 | ||
Canada [Member] | Non-capital losses [Member] | 2027 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 3,606 | ||
Canada [Member] | Non-capital losses [Member] | 2028 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 4,674 | ||
Canada [Member] | Non-capital losses [Member] | 2029 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 3,842 | ||
Canada [Member] | Non-capital losses [Member] | 2030 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 2,068 | ||
Canada [Member] | Non-capital losses [Member] | 2031 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 2,408 | ||
Canada [Member] | Non-capital losses [Member] | 2032 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 4,372 | ||
Canada [Member] | Non-capital losses [Member] | 2033 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 2,167 | ||
Canada [Member] | Non-capital losses [Member] | 2034 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 3,966 | ||
Canada [Member] | Non-capital losses [Member] | 2035 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 2,292 | ||
Canada [Member] | Non-capital losses [Member] | 2036 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 1,815 | ||
Canada [Member] | Non-capital losses [Member] | 2037 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 2,354 | ||
Canada [Member] | Non-capital losses [Member] | 2038 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 1,391 | ||
United States [Member] | |||
Statements Line Items | |||
Deferred tax assets | 71,310 | 72,376 | 78,350 |
United States [Member] | Non-capital losses [Member] | |||
Statements Line Items | |||
Deferred tax assets | 58,992 | $ 53,733 | $ 58,247 |
United States [Member] | Non-capital losses [Member] | 2026 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 2,753 | ||
United States [Member] | Non-capital losses [Member] | 2027 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 3,669 | ||
United States [Member] | Non-capital losses [Member] | 2028 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 276 | ||
United States [Member] | Non-capital losses [Member] | 2029 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 3,552 | ||
United States [Member] | Non-capital losses [Member] | 2030 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 3,017 | ||
United States [Member] | Non-capital losses [Member] | 2031 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 3,038 | ||
United States [Member] | Non-capital losses [Member] | 2032 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 8,271 | ||
United States [Member] | Non-capital losses [Member] | 2033 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 17,632 | ||
United States [Member] | Non-capital losses [Member] | 2034 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 13,773 | ||
United States [Member] | Non-capital losses [Member] | 2035 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 590 | ||
United States [Member] | Non-capital losses [Member] | 2036 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 1,783 | ||
United States [Member] | Non-capital losses [Member] | 2037 [Member] | |||
Statements Line Items | |||
Deferred tax assets | 80 | ||
United States [Member] | Non-capital losses [Member] | 2038 [Member] | |||
Statements Line Items | |||
Deferred tax assets | $ 558 |
Disclosure of detailed infor_19
Disclosure of detailed information about commitments (Details) $ in Thousands | Dec. 31, 2018CAD ($) |
Statements Line Items | |
Debt repayments | $ 8,020 |
Interest payments | 50 |
Operating leases | 92 |
Undiscounted contractual obligations and commitments | 8,162 |
1 Year [Member] | |
Statements Line Items | |
Debt repayments | 1,000 |
Interest payments | 50 |
Operating leases | 75 |
Undiscounted contractual obligations and commitments | 1,125 |
2-3 Years [Member] | |
Statements Line Items | |
Debt repayments | 0 |
Interest payments | 0 |
Operating leases | 17 |
Undiscounted contractual obligations and commitments | 17 |
4-5 Years [Member] | |
Statements Line Items | |
Debt repayments | 7,020 |
Interest payments | 0 |
Operating leases | 0 |
Undiscounted contractual obligations and commitments | $ 7,020 |
Disclosure of detailed infor_20
Disclosure of detailed information about revenue and expenses by reportable segments (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statements Line Items | |||
Revenues, net of royalties | $ 1,744 | $ 2,480 | $ 4,073 |
Segmented loss | (11,632) | (5,209) | (5,486) |
Amortization, depletion and impairment losses | 15,728 | 2,628 | 4,493 |
Interest expense | 901 | 950 | 1,530 |
Capital expenditures | 781 | 456 | 530 |
Canada [Member] | |||
Statements Line Items | |||
Revenues, net of royalties | 1,219 | 1,814 | 3,190 |
Segmented loss | (6,268) | (4,948) | (3,279) |
Amortization, depletion and impairment losses | 4,062 | 1,785 | 2,324 |
Interest expense | 901 | 950 | 1,236 |
Capital expenditures | 780 | 414 | 305 |
United States [Member] | |||
Statements Line Items | |||
Revenues, net of royalties | 525 | 666 | 883 |
Segmented loss | (5,364) | (261) | (2,207) |
Amortization, depletion and impairment losses | 11,666 | 844 | 2,169 |
Interest expense | 0 | 0 | 294 |
Capital expenditures | $ 1 | $ 42 | $ 225 |
Disclosure of fair value of fin
Disclosure of fair value of financial instruments (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Oct. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Statements Line Items | |||||
Cash and cash equivalents | $ 26 | $ 1,010 | $ 141 | $ 38 | |
Accounts receivable | 185 | 388 | |||
Accounts payable | 1,507 | 658 | |||
Loans from related parties | 5,095 | 4,608 | |||
Convertible debt | 388 | $ 381 | |||
Financial contract liability | 6,752 | ||||
Fair Value [Member] | |||||
Statements Line Items | |||||
Cash and cash equivalents | 26 | 1,010 | |||
Accounts receivable | 185 | 388 | |||
Accounts payable | 1,507 | 658 | |||
Loans from related parties | 5,095 | 4,608 | |||
Convertible debt | 388 | ||||
Financial contract liability | 6,752 | ||||
Quoted Price in Active Markets (Level 1) [Member] | |||||
Statements Line Items | |||||
Cash and cash equivalents | 26 | 1,010 | |||
Accounts receivable | 185 | 388 | |||
Accounts payable | 1,507 | 658 | |||
Loans from related parties | 0 | 0 | |||
Convertible debt | 0 | ||||
Financial contract liability | 0 | ||||
Significant Other Observable Inputs (Level 2) [Member] | |||||
Statements Line Items | |||||
Cash and cash equivalents | 0 | 0 | |||
Accounts receivable | 0 | 0 | |||
Accounts payable | 0 | 0 | |||
Loans from related parties | 0 | 0 | |||
Convertible debt | 0 | ||||
Financial contract liability | 0 | ||||
Significant Unobservable Inputs (Level 3) [Member] | |||||
Statements Line Items | |||||
Cash and cash equivalents | 0 | 0 | |||
Accounts receivable | 0 | 0 | |||
Accounts payable | 0 | 0 | |||
Loans from related parties | 5,095 | 4,608 | |||
Convertible debt | $ 0 | ||||
Financial contract liability | $ 6,752 |
Disclosure of detailed infor_21
Disclosure of detailed information about foreign currency risk (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Statements Line Items | ||||
Cash and cash equivalents | $ 26 | $ 1,010 | $ 141 | $ 38 |
Accounts receivable | 185 | 388 | ||
Accounts payable and accrued liabilities | (2,057) | (1,291) | ||
Foreign Currency Exchange Risk [Member] | ||||
Statements Line Items | ||||
Cash and cash equivalents | 17 | 30 | ||
Accounts receivable | 100 | 228 | ||
Accounts payable and accrued liabilities | (199) | (213) | ||
Balance sheet exposure | $ (82) | $ 45 |
Disclosure of detailed infor_22
Disclosure of detailed information about exposed foreign currency risk (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statements Line Items | ||
Closing foreign exchange rate | 1.3642 | 1.2545 |
Average foreign exchange rate | 1.2957 | 1.2986 |