Cover
Cover | 9 Months Ended |
Jun. 30, 2022 | |
Cover [Abstract] | |
Document Type | S-1/A |
Amendment Flag | true |
Amendment Description | AMENDMENT NO. 1 |
Entity Registrant Name | PERMEX PETROLEUM CORPORATION |
Entity Central Index Key | 0001922639 |
Entity Primary SIC Number | 1381 |
Entity Tax Identification Number | 98-1384682 |
Entity Incorporation, State or Country Code | A1 |
Entity Address, Address Line One | 2911 Turtle Creek Blvd |
Entity Address, Address Line Two | Suite 925 |
Entity Address, City or Town | Dallas |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 75219 |
City Area Code | (469) |
Local Phone Number | 804-1306 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets | Jun. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) |
Current assets | |||
Cash | $ 5,366,789 | $ 25,806 | $ 5,517 |
Trade and other receivables | 186,740 | 12,984 | 44,702 |
Prepaid expenses and deposits | 878,119 | 46,151 | 15,603 |
Assets held for sale | 2,924,465 | ||
Total current assets | 6,431,648 | 84,941 | 2,990,287 |
Non-current assets | |||
Reclamation deposits | 145,052 | 144,847 | 194,750 |
Property and equipment | 7,838,520 | 7,846,145 | 3,765,914 |
Right of use asset | 37,369 | 72,539 | 49,870 |
Total assets | 14,452,589 | 8,148,472 | 7,000,821 |
Current liabilities | |||
Trade and other payables | 1,123,635 | 402,979 | 713,696 |
Amounts due to related party | 8,687 | 16,628 | 151,353 |
Convertible debentures | 77,600 | 78,500 | 75,000 |
Lease liability – current portion | 39,493 | 51,963 | 21,202 |
Liabilities held for sale | 1,801,221 | ||
Total current liabilities | 1,249,415 | 550,070 | 2,762,472 |
Non-current liabilities | |||
Decommissioning obligations | 1,645,171 | 1,627,465 | 792,814 |
Convertible debentures | 75,000 | ||
Lease liability | 3,313 | 26,986 | 31,926 |
Loan payable | 31,400 | 30,000 | |
Total liabilities | 2,897,899 | 2,235,921 | 3,692,212 |
Equity | |||
Common shares no par value per share; unlimited shares authorized, 1,932,600 and 1,103,006 shares issued and outstanding as of June 30, 2022 and September 30, 2021, respectively | 14,381,071 | 8,976,747 | 6,453,039 |
Share subscription proceeds | 30,456 | 30,456 | 30,456 |
Reserves | 4,585,598 | 2,352,649 | 1,192,123 |
Accumulated other comprehensive loss | (394,654) | (128,532) | (270,235) |
Deficit | (7,047,781) | (5,318,769) | (4,096,774) |
Total equity | 11,554,690 | 5,912,551 | 3,308,609 |
Total liabilities and equity | $ 14,452,589 | $ 8,148,472 | $ 7,000,821 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2020 | Sep. 30, 2021 | |
Statement of Financial Position [Abstract] | |||
Common Stock, No Par Value | $ 0 | $ 0 | |
Common Stock, Shares Authorized, Unlimited [Fixed List] | Unlimited | Unlimited | |
Common Stock, Shares, Outstanding | 1,932,600 | 667,069 | 1,103,006 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Loss and Comprehensive Loss | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) $ / shares | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) $ / shares | Sep. 30, 2021 USD ($) $ / shares | Sep. 30, 2020 USD ($) $ / shares | |
Revenue | ||||||
Total revenue | $ 276,722 | $ 34,298 | $ 625,057 | $ 37,392 | $ 84,625 | $ 682,786 |
Expenses | ||||||
Producing | 135,467 | 11,179 | 332,346 | 21,392 | 59,671 | 557,624 |
Accounting and audit | 77,673 | 16,783 | 143,153 | 46,730 | 78,090 | 66,710 |
Accretion on decommissioning obligations | 8,238 | 2,987 | 24,714 | 8,792 | 11,722 | 45,371 |
Consulting | 47,436 | 3,571 | 64,209 | 17,474 | 18,394 | 41,724 |
Depletion and depreciation | 73,093 | 12,717 | 161,988 | 21,955 | 60,479 | 37,291 |
Filing and transfer agent | 19,484 | 8,925 | 59,309 | 43,285 | 54,822 | 27,922 |
Interest | 2,597 | 1,348 | 6,285 | 11,116 | 13,506 | 15,905 |
Investor relations | 54,860 | 43,685 | 96,593 | 46,091 | 72,196 | 45,490 |
Legal fees | 179,190 | 2,666 | 203,016 | 3,336 | 14,803 | 11,218 |
Management fees | 67,216 | 37,362 | 176,989 | 112,478 | 149,806 | 144,288 |
Marketing and promotion | 469,096 | 4,148 | 517,914 | 24,802 | 27,251 | 13,984 |
Office and general | 75,456 | 16,122 | 105,679 | 26,780 | 32,203 | 28,150 |
Rent | 21,389 | 14,655 | 54,907 | 34,791 | 54,336 | 27,010 |
Salaries | 7,500 | 7,500 | 24,816 | |||
Share-based payments | 185 | 486 | 604,861 | 2,401 | 2,870 | 4,175 |
Travel | 39,371 | 1,227 | 44,289 | 2,099 | 11,483 | 10,069 |
Total operating expenses | (1,278,251) | (177,861) | (2,603,752) | (423,522) | (661,632) | (1,101,747) |
Operating loss | (1,001,529) | (143,563) | (1,978,695) | (386,130) | (577,007) | (418,961) |
Foreign exchange gain (loss) | 222,539 | (14,195) | 214,404 | (41,347) | (24,301) | 5,402 |
Forfeiture of reclamation deposit | 318 | (50,165) | (50,165) | |||
Forgiveness of loan payable | 7,900 | 7,900 | ||||
Gain on settlement of decommissioning obligations | 10,415 | |||||
Other income | 9,787 | 2,515 | 27,379 | 7,643 | 10,191 | 9,683 |
Settlement of trade payables | 1,965 | 9,683 | 9,682 | 23,329 | ||
Loss on disposal of property and equipment | (613,457) | (879,070) | ||||
Non-operating income (expense) | 240,226 | (9,397) | 249,683 | (74,186) | ||
Net loss | (761,303) | (152,960) | (1,729,012) | (460,316) | (1,245,057) | (1,249,202) |
Other comprehensive income | ||||||
Foreign currency translation adjustment | (375,809) | 49,419 | (266,122) | 245,969 | 141,703 | (39,084) |
Comprehensive loss | $ (1,137,112) | $ (103,541) | $ (1,995,134) | $ (214,347) | $ (1,102,709) | $ (1,288,083) |
Basic and diluted loss per common share | $ / shares | $ (0.16) | $ (0.23) | $ (1.23) | $ (0.68) | $ (1.83) | $ (1.87) |
Oil and Gas [Member] | ||||||
Revenue | ||||||
Total revenue | $ 258,757 | $ 34,298 | $ 577,244 | $ 37,392 | $ 46,703 | $ 682,786 |
Royalty [Member] | ||||||
Revenue | ||||||
Total revenue | $ 17,965 | $ 47,813 | $ 37,922 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity - USD ($) | Total | Share Capital [Member] | Reserves [Member] | Share Subscription Proceeds [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | |
Balance at Sep. 30, 2019 | $ 4,592,720 | $ 6,453,039 | $ 1,387,846 | $ 30,456 | $ (231,151) | $ (3,047,470) | |
Balance, shares at Sep. 30, 2019 | [1] | 667,069 | |||||
Share-based payments | 4,175 | 4,175 | |||||
Adjustment on cancelation of stock options | (199,898) | 199,898 | |||||
Net loss | (1,249,202) | (1,249,202) | |||||
Other comprehensive income | (39,084) | (39,084) | |||||
Balance at Sep. 30, 2020 | 3,308,609 | $ 6,453,039 | 1,192,123 | 30,456 | (270,235) | (4,096,774) | |
Balance, shares at Sep. 30, 2020 | [1],[2] | 667,069 | |||||
Share-based payments | 2,401 | 2,401 | |||||
Shares issued for services | 54,958 | $ 54,958 | |||||
Shares issued for services, shares | [2] | 19,270 | |||||
Net loss | (460,316) | (460,316) | |||||
Other comprehensive income | 245,969 | 245,969 | |||||
Balance at Jun. 30, 2021 | 3,151,621 | $ 6,507,997 | 1,194,524 | 30,456 | (24,266) | (4,557,090) | |
Balance, shares at Jun. 30, 2021 | [3] | 686,339 | |||||
Balance at Sep. 30, 2020 | 3,308,609 | $ 6,453,039 | 1,192,123 | 30,456 | (270,235) | (4,096,774) | |
Balance, shares at Sep. 30, 2020 | [1],[2] | 667,069 | |||||
Share-based payments | 2,870 | 2,870 | |||||
Adjustment on cancelation of stock options | (23,062) | 23,062 | |||||
Net loss | (1,245,057) | (1,245,057) | |||||
Other comprehensive income | 141,703 | 141,703 | |||||
Acquisition of property | 2,468,750 | $ 2,468,750 | |||||
Acquisition of property, shares | [1] | 416,666 | |||||
Acquisition of property - warrants | 1,180,718 | 1,180,718 | |||||
Share issuance costs | 54,958 | $ 54,958 | |||||
Shares issued for service, shares | [1] | 19,271 | |||||
Balance at Sep. 30, 2021 | 5,912,551 | $ 8,976,747 | 2,352,649 | 30,456 | (128,532) | (5,318,769) | |
Balance, shares at Sep. 30, 2021 | [1],[2] | 1,103,006 | |||||
Balance at Mar. 31, 2021 | 3,219,826 | $ 6,473,147 | 1,194,038 | 30,456 | (73,685) | (4,404,130) | |
Balance, shares at Mar. 31, 2021 | [3] | 678,006 | |||||
Share-based payments | 486 | 486 | |||||
Shares issued for services | 34,850 | $ 34,850 | |||||
Shares issued for services, shares | [3] | 8,333 | |||||
Net loss | (152,960) | (152,960) | |||||
Other comprehensive income | 49,419 | 49,419 | |||||
Balance at Jun. 30, 2021 | 3,151,621 | $ 6,507,997 | 1,194,524 | 30,456 | (24,266) | (4,557,090) | |
Balance, shares at Jun. 30, 2021 | [3] | 686,339 | |||||
Balance at Sep. 30, 2021 | 5,912,551 | $ 8,976,747 | 2,352,649 | 30,456 | (128,532) | (5,318,769) | |
Balance, shares at Sep. 30, 2021 | [1],[2] | 1,103,006 | |||||
Share-based payments | 604,861 | 604,861 | |||||
Private placements | 8,112,340 | $ 7,367,224 | 745,116 | ||||
Private placements, shares | [2] | 829,594 | |||||
Net loss | (1,729,012) | (1,729,012) | |||||
Other comprehensive income | (266,122) | (266,122) | |||||
Share issuance costs | (1,079,928) | (1,962,900) | 882,972 | ||||
Balance at Jun. 30, 2022 | 11,554,690 | $ 14,381,071 | 4,585,598 | 30,456 | (394,654) | (7,047,781) | |
Balance, shares at Jun. 30, 2022 | [3] | 1,932,600 | |||||
Balance at Mar. 31, 2022 | 12,709,919 | $ 14,399,373 | 4,585,413 | 3,456 | (18,845) | (6,286,478) | |
Balance, shares at Mar. 31, 2022 | [3] | 1,932,600 | |||||
Share-based payments | 185 | 185 | |||||
Net loss | (761,303) | (761,303) | |||||
Other comprehensive income | (375,809) | (375,809) | |||||
Share issuance costs | (18,302) | (18,302) | |||||
Balance at Jun. 30, 2022 | $ 11,554,690 | $ 14,381,071 | $ 4,585,598 | $ 30,456 | $ (394,654) | $ (7,047,781) | |
Balance, shares at Jun. 30, 2022 | [3] | 1,932,600 | |||||
[1]The number of shares has been restated to reflect the 60:1 share consolidation (Note 1).[2]The number of shares has been restated to reflect the 60:1 share consolidation (Note 1)[3]The number of shares has been restated to reflect the 60:1 share consolidation (Note 1) |
Condensed Interim Consolidated
Condensed Interim Consolidated Statements of Cash Flows | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net loss | $ (761,303) | $ (152,960) | $ (1,729,012) | $ (460,316) | $ (1,245,057) | $ (1,249,202) |
Adjustments to reconcile net loss to net cash from operating activities: | ||||||
Accretion on decommissioning obligations | 8,238 | 2,987 | 24,714 | 8,792 | 11,722 | 45,371 |
Depletion and depreciation | 73,093 | 12,717 | 161,988 | 21,955 | 60,479 | 37,291 |
Foreign exchange loss (gain) | (214,133) | 109,102 | 87,747 | (2,209) | ||
Forfeiture of reclamation bond | 50,165 | 50,165 | ||||
Forgiveness of loan payable | (7,900) | (7,900) | ||||
Interest | 2,597 | 1,348 | 6,285 | 11,116 | 13,506 | 15,905 |
Gain on settlement of decommissioning obligations | (10,415) | |||||
Settlement of trade payables | (1,965) | (9,683) | (9,682) | (23,329) | ||
Proceeds from redemption of credit card deposit | 18,600 | |||||
Share-based payments | 185 | 486 | 604,861 | 2,401 | 2,870 | 4,175 |
Shares issued for services | 54,958 | 54,958 | ||||
Loss on disposal of property and equipment | 613,457 | 879,070 | ||||
Trade and other receivables | (174,362) | 35,414 | 34,092 | 58,169 | ||
Prepaid expenses and deposits | (833,922) | (21,336) | (29,977) | 40,218 | ||
Trade and other payables | 711,083 | (293,869) | (234,475) | 82,876 | ||
Amounts due to related parties | (10,618) | (164,560) | (162,598) | 102,052 | ||
Right of use asset and lease liability | 40,731 | 32,669 | 46,942 | 24,194 | ||
Net cash used in operating activities | (1,420,285) | (623,192) | (705,851) | 22,766 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Capital expenditures on property and equipment | (202,136) | (283,298) | (265,717) | (128,752) | ||
Proceeds from sale of oil and gas interests | 1,123,244 | 1,123,244 | ||||
Net cash provided by (used in) investing activities | (202,136) | 839,946 | 857,527 | (128,752) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from issuance of share capital | 8,112,340 | |||||
Share issuance costs | (1,079,928) | |||||
Convertible debenture repayment | (79,000) | |||||
Loan repayment | (23,700) | |||||
Convertible debentures | (79,000) | 148,800 | ||||
Loan proceeds | 29,760 | |||||
Loan from related party | (3,647) | (6,329) | (8,455) | (48,793) | ||
Lease payments | (41,661) | (30,193) | (43,932) | (20,962) | ||
Net cash provided by (used in) financing activities | 6,963,404 | (115,522) | (131,387) | 108,805 | ||
Change in cash during the period | 5,340,983 | 101,232 | 20,289 | 2,819 | ||
Cash, beginning of the period | 25,806 | 5,517 | 5,517 | 2,698 | ||
Cash, end of the period | $ 5,366,789 | $ 106,749 | 5,366,789 | 106,749 | 25,806 | 5,517 |
Supplemental disclosures of non-cash investing and financing activities: | ||||||
Common stock issued in connection with property acquisition agreement | 2,468,750 | |||||
Common stock purchase warrants issued in connection with property acquisition agreement | 1,180,718 | |||||
Trade and other payables related to property and equipment | 93,960 | 69,262 | 68,735 | 157,240 | ||
Share purchase warrants issued in connection with private placement | 1,628,088 | |||||
Adjustments to decommissioning liabilities | 796,809 | 189,375 | ||||
Supplemental cash flow disclosures: | ||||||
Interest paid | $ 18,960 | $ 13,090 | $ 13,090 |
BACKGROUND
BACKGROUND | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
BACKGROUND | 1. BACKGROUND Permex Petroleum Corporation (the “Company”) was incorporated on April 24, 2017 under the laws of British Columbia, Canada and maintains its head office at Suite 500, 666 Burrard Street, Vancouver, British Columbia, Canada, V6C 2X8 and its US office at Suite 700, 100 Crescent Court, Dallas, Texas, 75201. Its registered office is located at 10 th On October 26, 2022, the Company’s board of directors approved a reverse stock split of the Company’s issued and outstanding common stock at a 1 for 60 ratio, which was effective November 2, 2022. The par value and authorized shares of common stock were not adjusted as a result of the reverse stock split. All issued and outstanding common stock, options, and warrants to purchase common stock and per share amounts contained in the financial statements have been retroactively adjusted to reflect the reverse stock split for all periods presented. | 1. BACKGROUND Permex Petroleum Corporation (the “Company”) was incorporated on April 24, 2017 under the laws of British Columbia, Canada and maintains its head office at Suite 500, 666 Burrard Street, Vancouver, British Columbia, Canada, V6C 2X8 and its US office at Suite 700, 100 Crescent Court, Dallas, Texas, 75201. Its registered office is located at 10 th On October 26, 2022, the Company’s board of directors approved a reverse stock split of the Company’s issued and outstanding common stock at a 1 for 60 ratio, which was effective November 2, 2022. The par value and authorized shares of common stock were not adjusted as a result of the reverse stock split. All issued and outstanding common stock, options, and warrants to purchase common stock and per share amounts contained in the financial statements have been retroactively adjusted to reflect the reverse stock split for all periods presented. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Accounting Policies [Abstract] | ||
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The unaudited condensed interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed consolidated financial statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of the Company’s financial position and of the results of operations and cash flows for the periods presented. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending September 30, 2022 or for any other interim period or for any other future fiscal year. These condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s amended Form S-1 for the fiscal year ended September 30, 2021 filed with the Securities and Exchange Commission (“SEC”) on August 8, 2022. There have been no material changes in the Company’s significant accounting policies from those that were disclosed in the fiscal 2021 financial statements, except as noted below. Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities, revenue and expenses of the Company’s wholly-owned subsidiary. All intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) amounts subject to allowances and returns; (ii) the fair value of assets when determining the existence of impairment factors and the amount of impairment, if any; (iii) the costs of site restoration when determining decommissioning liabilities; (iv) income taxes receivable or payable; (v) the useful lives of assets for the purposes of depreciation; (vi) petroleum and natural gas reserves; and (vii) share-based payments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates. PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) 2. Significant Accounting Policies Foreign Currency These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Permex Petroleum US Corporation. These consolidated financial statements are presented in United States dollars (“USD,” “US” or “$”). The functional currency of the Company is the Canadian dollar (“CAD”). The functional currency for the subsidiary of the Company is USD. Recently adopted accounting pronouncement None. | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Permex Petroleum US Corporation and have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). These consolidated financial statements are presented in United States dollars (“USD”). The functional currency of the Company is the Canadian dollar (“CAD”). The functional currency for the subsidiary of the Company is the United States dollar (“USD”). Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities, revenue and expenses of all wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) amounts subject to allowances and returns; (ii) the fair value of assets when determining the existence of impairment factors and the amount of impairment, if any; (iii) the costs of site restoration when determining decommissioning liabilities; (iv) income taxes receivable or payable; (v) the useful lives of assets for the purposes of depreciation; (vi) petroleum and natural gas reserves; and (vii) share-based payments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates. Cash The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash and cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 2. Significant Accounting Policies Trade and other receivables Trade and other receivables are stated at net realizable value. The majority of customers are not extended credit and therefore time to maturity for receivables is short. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance or if any accounts should be written off based on a past history of write-offs, collections, and current credit conditions. A receivable is considered past due if the Company has not received payments based on agreed-upon terms. Given the nature and balances of the Company’s receivables the Company has no material loss allowance as at September 30, 2021 and September 30, 2020. Property and equipment The Company follows the successful efforts method of accounting for its oil and gas properties. All costs for development wells along with related acquisition costs, the costs of drilling development wells, and related asset retirement obligation (ARO) assets are capitalized. Exploration costs, such as exploratory geological and geophysical costs, and costs associated with non-productive exploratory wells, delay rentals and exploration overhead are expensed. Costs of drilling exploratory wells are capitalized pending determination of whether the wells found proved reserves. Costs of wells that are assigned proved reserves remain capitalized. Costs also are capitalized for exploratory wells that have found crude oil and natural gas reserves even if the reserves cannot be classified as proved when the drilling is completed, provided the exploratory well has found a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. The Company groups its oil and gas properties with a common geological structure or stratigraphic condition (“common operating field”) for purposes of computing depletion expenses, assessing proved property impairments and accounting for asset dispositions. Capitalized costs of proved oil and gas properties are depleted by individual field using a unit-of-production method based on proved and probable developed reserves. Proved reserves are estimated using reserve engineer reports and represent the estimated quantities of crude oil, natural gas and natural gas liquids, which geological, geophysical and engineering data demonstrate with a specified degree of certainty to be recoverable in future years from known reservoirs and which are considered commercially producible. Proved oil and natural gas properties are assessed for possible impairment by comparing their carrying values with their associated undiscounted, future net cash flows. Events that can trigger assessments for possible impairments include write-downs of proved reserves based on field performance, significant decreases in the market value of an asset (including changes to the commodity price forecast or carbon costs), significant change in the extent or manner of use of or a physical change in an asset, and a more-likely-than-not expectation that a long-lived asset or asset group will be sold or otherwise disposed of significantly sooner than the end of its previously estimated useful life. Impaired assets are written down to their estimated fair values, generally their discounted, future net cash flows. For proved oil and natural gas properties, the Company performs impairment reviews on a field basis, annually or as appropriate. Other corporate equipment consist primarily of leasehold improvements and computer equipment and are stated at cost less accumulated depreciation. The capitalized costs are generally depreciated on a straight line basis over their estimated useful lives as follows: SCHEDULE OF ESTIMATED USEFUL LIVES Computer equipment 2 years Leasehold improvements 5 years PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 3. SIGNIFICANT ACCOUNTING POLICIES Property and equipment For property dispositions, measurement is at fair value, unless the transaction lacks commercial substance or fair value cannot be reliably measured. Where the exchange is measured at fair value, a gain or loss is recognized in net income. Any deferred consideration recorded on property dispositions are recognized as revenue in the statement of loss and comprehensive loss over the reserve life. Gains or losses are recorded for sales or dispositions of oil and gas properties which constitute an entire common operating field or which result in a significant alteration of the common operating field’s depletion rate. These gains and losses are classified as asset dispositions in the accompanying consolidated statements of loss and comprehensive loss. Partial common operating field sales or dispositions deemed not to significantly alter the depletion rates are generally accounted for as adjustments to capitalized costs with no gain or loss recognized. Impairment of long-lived assets The Company assesses long-lived assets for impairment in accordance with the provisions of Financial Accounting Standards Board ASC 360, Property, Plant and Equipment Decommissioning liabilities The Company’s activities give rise to dismantling, decommissioning, and site disturbance remediation activities. A provision is made for the estimated cost of site restoration and capitalized in the relevant asset category. Decommissioning liabilities are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. Changes in the present value of the estimated expenditure are reflected as an adjustment to the provision and the relevant asset. The unwinding of the discount on the decommissioning provision is recognized as an accretion expense. Actual costs incurred upon settlement of the decommissioning liabilities are charged against the provision to the extent the provision was recognized. Decommissioning obligations require the use of management’s best estimates of future decommissioning expenditures, expected timing of expenditures and future inflation rates. 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. Provisions are not recognized for future operating losses. Provisions for decommissioning associated with the Company’s oil and gas operations are based on current legal and constructive requirements, technology, price levels and expected plans for remediation. Actual costs and cash outflows may differ from estimates due to changes in laws and regulations, public expectations, prices, discovery and analysis of site conditions and changes in clean up technology. Estimates are made using internal and external information. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 3. SIGNIFICANT ACCOUNTING POLICIES Fair value measurement Fair value accounting is applied for all assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company follows the established framework for measuring fair value and expands disclosures about fair value measurements. The Company categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Assets and liabilities valued at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 Level 2 Level 3 The financial statements as of and for the years ended September 30, 2021 and 2020, do not include any recurring or nonrecurring fair value measurements relating to assets or liabilities. Subsequent to initial recognition, the Company may re-measure the carrying value of assets and liabilities measured on a nonrecurring basis to fair value. Adjustments to fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their fair value. Professional standards allow entities the irrevocable option to elect to measure certain financial instruments and other items at fair value for the initial and subsequent measurement on an instrument-by-instrument basis. The Company has not elected to measure any existing financial instruments at fair value. However, it may elect to measure newly acquired financial instruments at fair value in the future. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 3. SIGNIFICANT ACCOUNTING POLICIES Leases At inception of a contract, the Company assesses whether a contract is, or contains a lease based on whether the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. The Company recognizes a right-of-use asset and a lease obligation at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease obligation adjusted for any lease payments made at or before the commencement date. The lease obligation is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Variable lease payments that do not depend on an index or rate are not included in the measurement of the lease obligation. The lease obligation is subsequently measured at amortized cost using the effective interest rate method. Share capital The Company records proceeds from the issuance of its Common Shares as equity. Incremental costs directly attributable to the issue of new Common Shares are shown in equity as a deduction, net of tax, from the proceeds. Common Shares issued for consideration other than cash are valued based on their market value at the date that the shares are issued. Warrants issued with private placement units are classified as equity and initially recorded at fair value with no subsequent remeasurement. Proceeds from the issuance of private placement units are allocated between the private placement warrants and Common Shares on a relative fair value basis. Earnings (loss) per share Basic earnings (loss) per share (“EPS”) is calculated by dividing the EPS attributable to common shareholders by the weighted average number of Common Shares outstanding in the period. The diluted EPS reflects all dilutive potential Common Shares equivalents, in the weighted average number of Common Shares outstanding during the period, if dilutive. All of the outstanding convertible securities, stock options and warrants were anti-dilutive for the years ended September 30, 2021 and 2020. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 3. SIGNIFICANT ACCOUNTING POLICIES Share-based payments The Company issues stock options and other share-based compensation to directors, employees and others service providers. Equity awards including stock options and share purchase warrants are measured at grant date at the fair value of the instruments issued and amortized over the vesting periods using a graded approach. The amount recognized as an expense is adjusted to reflect the actual number of share options that are expected to vest. Each tranche in an award is considered a separate grant with a different vesting date and fair value and is accounted for on that basis. The offset to the recorded cost is to share-based payments reserve. The number of options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount ultimately recognized as an expense is based on the number of options that eventually vest. Consideration received on the exercise of stock options is recorded as share capital and the related share-based payments reserve is transferred to share capital. The fair value of the equity awards is determined using the Black-Scholes option pricing model. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility), weighted average expected life of the instruments (based on historical experience), expected dividends, and the risk-free interest rate (based on government bonds). Revenue In accordance with ASC 606, Revenue from Contracts with Customers, For natural gas, this is generally at the time product enters the pipeline. For crude oil, this is generally at the time the product reaches a trucking terminal. For natural gas liquids, this is generally at the time the product reaches a gas plant. Revenue is measured net of discounts, customs duties, royalties and withholding tax. Royalty income represents net revenue interests from the sale of crude oil and natural gas and is recognized upon the operators of the properties completing the sale of crude oil and natural gas. The Company records revenue in the month production is delivered to the purchaser. However, production statements for oil and gas sales may not be received until the following month end after the products are purchased, and as a result, the Company is required to estimate the amount of revenue to be received. The Company records the differences between its estimates and the actual amounts received for revenue in the month that payment is received from the customer. Identified differences between the Company’s revenue estimates and actual revenue received historically have not been significant. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the revenue related to sales volumes and prices for those good sold are estimated and recorded. The Company does not have any contract assets or liabilities, or capitalized contract costs. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 3. SIGNIFICANT ACCOUNTING POLICIES Foreign currencies Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary assets and liabilities are translated using the historical rate on the date of the transaction. Non-monetary assets and liabilities that are stated at fair value are translated using the historical rate on the date that the fair value was determined. All gains and losses on translation of these foreign currency transactions are charged to profit or loss. Financial statements of the parent company prepared under their functional currencies are translated into United States dollars for consolidation purposes as follows: assets and liabilities are translated using the exchange rate prevailing at the reporting date; revenue and expenses are translated using the average rates of exchange for the period. Gains and losses resulting from translation adjustments are recorded to other comprehensive income (loss) and accumulated as a separate component of shareholders’ equity, described as foreign currency translation adjustment. Income taxes Current taxes receivable or payable are estimated on taxable income or loss for the current year at the statutory tax rates enacted or substantively enacted at the reporting date. Deferred income tax is recognized on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax assets and liabilities are measured at the tax rates that have been enacted or substantially enacted at the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets also result from unused loss carry forwards, resource related pools and other deductions. At the end of each reporting year the Company reassesses unrecognized deferred tax assets. Deferred income tax assets are recognized for unused tax losses, tax credits and deductible temporary differences, only to the extent that it is probable that future taxable profit will be available against which they can be utilized. Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right exists to offset current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 3. SIGNIFICANT ACCOUNTING POLICIES New accounting standards In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) – Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity In June 2016, the FASB issued ASU No. 2016-13 (Topic 326), Financial Instruments — Credit Losses – Measurement of Credit Losses on Financial Instruments Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | ||
CONCENTRATION OF CREDIT RISK | 3. CONCENTRATION OF CREDIT RISK The Company’s cash balances sometimes exceed the United States’ Federal Deposit Insurance Corporation insurance limits. The Company mitigates this risk by placing its cash and cash equivalents with high credit quality financial institutions and attempts to limit the amount of credit exposure with any one institution. To date, the Company has not recognized any losses caused by uninsured balances. During the nine months ended June 30, 2022, the Company generated 54 % of total revenue from one customer (2021 - 100 %). As at June 30, 2022, one customer represented $ 107,738 ( 71 %) of the trade receivable balance (September 30, 2021 - $ 2,927 ( 26 %)). It is in management’s opinion that the Company is not exposed to significant credit risk. | 3. CONCENTRATION OF CREDIT RISK The Company’s cash balances sometimes exceed the United States’ Federal Deposit Insurance Corporation insurance limits. The Company mitigates this risk by placing its cash and cash equivalents with high credit quality financial institutions and attempts to limit the amount of credit exposure with any one institution. To date, the Company has not recognized any losses caused by uninsured balances. During the year ended September 30, 2021, the Company generated 49 % of total revenue from one customer (2020 - 45 %). As at September 30, 2021, one customer represented $ 2,927 ( 26 %) of the trade receivable balance (2020 - one customer represented $ 38,465 ( 95 %)). It is in management’s opinion that the Company is not exposed to significant credit risk. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 |
NON-CURRENT ASSETS
NON-CURRENT ASSETS | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Non-current Assets | ||
NON-CURRENT ASSETS | 4. NON-CURRENT ASSETS The Company is engaged in the exploration for, and the development of, petroleum and natural gas projects in the United States. The Company holds 100 % working interests and 71.9 % to 81.75 % net revenue interests and certain royalty interests in the various oil and gas properties located in Texas and New Mexico. Reclamation bonds As of June 30, 2022, the Company held reclamation bonds of $ 145,052 (September 30, 2021 - $ 144,847 ), which are expected to be released after all reclamation work has been completed with regard to its oil and natural gas interests. During the year ended September 30, 2021, the Company wrote off US$ 50,165 of reclamation deposit forfeited by the Texas State government due to violation on a previous owned property. Acquisition During the year ended September 30, 2021, the Company, through its wholly owned subsidiary, Permex Petroleum US Corporation , acquired a 100 % Working Interest and a 81.75 % Net Revenue Interest in the Breedlove “B” Clearfork leases located in Martin County, Texas. The Company issued 416,666 common shares and 208,333 share purchase warrants as consideration for this acquisition. The Company valued the 416,666 common shares issued at a fair value of $ 2,468,750 . The share purchase warrants were valued at $ 1,180,718 using the Black-Scholes option pricing model (assuming a risk-free interest rate of 1.51 %, an expected life of 10 -years, annualized volatility of 131.82 % and a dividend rate of 0 %). The warrants have an exercise price $ 9.42 per share (CAD$ 12.00 ) and are exercisable until October 1, 2031 . PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) 4. NON-CURRENT ASSETS Property and equipment Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT June 30, September 30, Oil and natural gas properties, at cost $ 8,044,184 $ 7,954,807 Vehicle, at cost 63,918 - Less: accumulated depletion and depreciation (269,582 ) (108,662 ) Property and equipment, net $ 7,838,520 $ 7,846,145 Depletion and depreciation expense was $ 161,988 and $ 21,955 for the nine month periods ended June 30, 2022 and 2021, respectively. | 4. NON-CURRENT ASSETS The Company is engaged in the exploration for, and the development of, petroleum and natural gas projects in the United States. The Company holds 100 % working interests and 71.9 % to 81.75 % net revenue interests and certain royalty interests in the various oil and gas properties located in Texas and New Mexico. Reclamation bonds As of September 30, 2021, the Company held reclamation bonds of $ 144,847 (2020 - $ 194,750 ), which are expected to be released after all reclamation work has been completed with regard to its oil and natural gas interests. During the year ended September 30, 2021, the Company wrote off $ 50,165 of reclamation deposit forfeited by the Texas State government due to violation on a previous owned property. Property and equipment Property and equipment as of September 30, 2021 and 2020 consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT 2021 2020 Oil and natural gas properties $ 7,954,807 $ 3,803,800 Corporate assets - 42,436 Property and equipment, at cost 7,954,807 3,846,236 Less: accumulated depreciation and depletion (108,662 ) (80,322 ) Property and equipment, net $ 7,846,145 $ 3,765,914 Depreciation and depletion expense was $ 60,479 and $ 37,291 for the years ended September 30, 2021 and 2020, respectively. Acquisition During the year ended September 30, 2021, the Company, through its wholly owned subsidiary, Permex Petroleum US Corporation, acquired a 100 % Working Interest and a 81.75 % Net Revenue Interest in the Breedlove “B” Clearfork leases located in Martin County, Texas. The Company issued 416,666 Common Shares and 208,333 share purchase warrants as consideration for this acquisition. The Company valued the 416,666 Common Shares issued at a fair value of $ 2,468,750 . The share purchase warrants were valued at $ 1,180,718 using the Black-Scholes option pricing model (assuming a risk-free interest rate of 1.51 %, an expected life of 10 -years, annualized volatility of 131.82 % and a dividend rate of 0 %). The warrants have an exercise price $ 9.42 per share (CAD$ 12.0 ) and are exercisable until October 1, 2031. Dispositions During the year ended September 30, 2021, the Company sold its interests in the Peavy leases together with reclamation obligations for $ 10,000 and recognized a loss of $ 604,687 from the sale. The Company also recognized a loss of $ 8,770 from the disposal of equipment. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 4. NON-CURRENT ASSETS Assets held for sale During the year ended September 30, 2020, the Company initiated a plan to dispose of its interest in certain oil and gas leases. As a result, the carrying costs of the related assets and its associated decommissioning liabilities were included in a disposal group and classified as assets held for sale and liabilities held for sale, respectively, at September 30, 2020. The disposal group classified as held for sale were measured at the fair value less costs to sell and an impairment loss of $ 879,070 was recognized in the profit and loss during the year ended September 30, 2020. The Company believes the disposal group is not a separate major line of business; therefore, disclosure of discontinued operation is not being presented. The recoverable amount of the disposal group as of September 30, 2020 is as follows. SCHEDULE OF RECOVERABLE AMOUNT Assets held for sale Oil and gas properties $ 2,924,465 Liabilities held for sale Decommissioning liabilities $ 1,801,221 During the year ended September 30, 2021, the Company sold its interest in the oil and gas leases classified in assets and liabilities held for sale for $ 1,123,244 . |
DECOMMISSIONING OBLIGATIONS
DECOMMISSIONING OBLIGATIONS | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
DECOMMISSIONING OBLIGATIONS | 5. DECOMMISSIONING OBLIGATIONS The total future decommissioning obligations are based on the Company’s net ownership in wells and facilities, estimated costs to reclaim and abandon the wells and facilities, and the estimated timing of the costs to be incurred in future periods. The total undiscounted amount of estimated cash flows required to settle the Company’s obligations is approximately $ 2,245,388 as at June 30, 2022 (September 30, 2021 - $ 2,836,777 ) and expected to be incurred between 2031 to 2041. The estimated net present value of the decommissioning obligations was calculated using an inflation factor of 2.0 % (2021 - 2.0 %) and discounted using a risk-free rate of 2.02 % (2021 - 1.93 %) based on expected settlement date. Changes to the decommissioning obligations are as follows: SCHEDULE OF DECOMMISSIONING OBLIGATIONS June 30, September 30, Decommissioning obligations, beginning of the year $ 1,627,465 $ 792,814 Obligations acquired - 784,418 Obligations derecognized - (140,704 ) Change in estimates - 234,331 Change in discount rate - (81,236 ) Accretion expense 24,714 11,722 Foreign exchange movement (7,008 ) 26,120 Decommissioning obligation $ 1,645,171 $ 1,627,465 During the year ended September 30, 2021, the Company derecognized $ 140,704 in decommissioning obligations as a result of an assignment of certain oil and gas interests. The decommissioning obligations were offset by the decommissioning provision of $ 127,510 and a gain of $ 13,194 was netted against the loss realized from the sale of properties. PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) | 5. DECOMMISSIONING OBLIGATIONS The total future decommissioning obligations are based on the Company’s net ownership in wells and facilities, estimated costs to reclaim and abandon the wells and facilities, and the estimated timing of the costs to be incurred in future periods. The total undiscounted amount of estimated cash flows required to settle the Company’s obligations is approximately $ 2,836,777 as at September 30, 2021 (2020 - $ 1,271,020 ) and expected to be incurred between 2031 to 2041. The estimated net present value of the decommissioning obligations was calculated using an inflation factor of 2.0 % (2020 - 2.0 %) and discounted using a risk-free rate of 2.02 % (2020 - 1.93 %) based on expected settlement date. Changes to the decommissioning obligations are as follows: SCHEDULE OF DECOMMISSIONING OBLIGATIONS 2021 2020 Decommissioning obligations, beginning of the year $ 792,814 $ 2,382,573 Obligations acquired 784,418 - Obligations derecognized (140,704 ) (116,192 ) Change in estimates 234,331 - Change in discount rate (81,236 ) 295,152 Accretion expense 11,722 45,371 Reclassification to liabilities held for sale - (1,801,221 ) Foreign exchange movement 26,120 (12,869 ) Decommissioning obligation $ 1,627,465 $ 792,814 PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 5. DECOMMISSIONING OBLIGATIONS During the year ended September 30, 2021, the Company derecognized $ 140,704 (2020 - $ 116,192 ) in decommissioning obligations as a result of an assignment of certain oil and gas interests. The decommissioning obligations were offset by the decommissioning provision of $ 127,510 (2020 - $ 105,777 ) and a gain of $ 13,194 was netted against the loss realized from the sale of properties (2020 - a gain of $ 10,415 realized). |
DEBT
DEBT | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Debt Disclosure [Abstract] | ||
DEBT | 6. DEBT Convertible debentures The Company issued a total of $ 157,000 (CAD$ 200,000 ) in convertible debentures to the CEO and a director of the Company on October 17, 2019 and February 21, 2020 for cash. The debentures are secured by an interest in all of the Company’s right, title, and interest in all of its oil and gas assets, had a maturity date of September 30, 2021 and February 20, 2022 , and bear interest at a rate of 12 % per annum, payable on maturity. The debentures are convertible at the holder’s option into units of the Company at $ 7.20 (CAD$ 9.00 ) per unit. Each unit will be comprised of one common share of the Company and one share purchase warrant. Each warrant entitles the holder to acquire one additional common share for a period of three years at an exercise price of $ 9.60 (CAD$ 12.00 ). As of June 30, 2022, $ 77,600 (CAD$ 100,000 ) (September 30, 2021 - $ 78,500 ) of debenture loan remained outstanding and the interest accrued on the loan was $ 4,241 (September 30, 2021 - $ 15,176 ). During the nine months ended June 30, 2022 and 2021, the Company recorded interest of $ 6,285 and $ 11,116 , respectively, and is included within amounts due to related party on the condensed consolidated balance sheets. During the year ended September 30, 2021, the Company repaid $ 79,000 (CAD$ 100,000 ) of the convertible debenture together with accrued interest of $ 13,090 . During the nine months ended June 30, 2022, the Company paid interest of $ 18,960 (2021 - $ 13,090 ) accrued on the debentures. Loan payable In May 2020, the Company opened a Canada Emergency Business Account (“CEBA”) and received a loan of $ 32,000 (CAD$ 40,000 ) from the Canadian Government. The CEBA program was established to provide interest-free loans of up to CAD$ 60,000 to small businesses and not-for-profits to help them cover operating costs during the COVID-19 pandemic. The loan was unsecured and non-interest bearing with an original repayment deadline of December 31, 2022. In January 2022, the Canadian government extended the repayment deadline to December 31, 2023 in order for the loan to be considered for partial forgiveness of up to one-third of the balance. Any loans not repaid by December 31, 2023 convert to two-year term loans bearing interest at an annual rate of 5 % starting January 1, 2024, with loans fully due by December 31, 2025. During the nine months ended June 30, 2022, the Company repaid the loan balance of $ 23,700 (CAD$ 30,000 ) and recognized a gain of $ 7,900 (CAD$ 10,000 ) on the forgiven amount. | 6. DEBT Convertible debentures The Company issued a total of $ 150,000 (CAD$ 200,000 ) in convertible debentures to the CEO and a director of the Company on October 17, 2019 and February 21, 2020 for cash. The debentures are secured by an interest in all of the Company’s right, title, and interest in all of its oil and gas assets, have a maturity date of September 30, 2021 and February 20, 2022 , and bear interest at a rate of 12 % per annum, payable on maturity. The debentures are convertible at the holder’s option into units of the Company at $ 7.20 (CAD$ 9.00 ) per unit. Each unit will be comprised of one common share of the Company and one share purchase warrant; each warrant entitles the holder to acquire one additional common share for a period of three years at an exercise price of $ 9.60 (CAD$ 12.00 ). During the year ended September 30, 2021 and 2020, the Company accrued interest of $ 9,480 and $ 13,991 , respectively, and is included within amounts due to related party on the consolidated balance sheets. During the year ended September 30, 2021, the Company repaid $ 79,000 (CAD$ 100,000 ) of the convertible debenture together with accrued interest of $ 13,090 . Loan payable In May 2020, the Company opened a Canada Emergency Business Account (“CEBA”) and received a loan of $ 30,000 40,000 ) from the Canadian Government. The CEBA program was established to provide interest-free loans of up to CAD$ 60,000 to small businesses and not-for-profits to help them cover operating costs during the COVID-19 pandemic. The loan is unsecured and non-interest bearing with an original repayment deadline of December 31, 2022. In January 2022, the Canadian government extended the repayment deadline to December 31, 2023 in order for the loan to be considered for partial forgiveness of up to one-third of the balance. Any loans not repaid by December 31, 2023 convert to two-year term loans bearing interest at an annual rate of 5 % starting January 1, 2024, with loans fully due by December 31, 2025. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
COMMITMENTS AND CONTINGENCIES | 7. COMMITMENTS AND CONTINGENCIES Lease Liability The Company has entered into office lease agreements for its office premises for terms ending in 2023. As of June 30, 2022, the Company’s lease had a weighted-average remaining term of 0.93 year. The undiscounted future lease payments as of June 30, 2022 are as follows: SCHEDULE OF UNDISCOUNTED FUTURE LEASE PAYMENTS 2022 $ 13,785 2023 31,643 Total lease payments $ 45,428 PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) 7. COMMITMENTS AND CONTINGENCIES The components of lease expense for the nine month periods ended June 30 were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE 2022 2021 Fixed lease expense $ 41,661 $ 30,194 Variable lease expense 13,246 4,597 Total $ 54,907 $ 34,791 The following is a continuity schedule of the lease liability: SCHEDULE OF LEASE LIABILITY June 30, September 30, Balance, beginning of the year $ 78,949 $ 53,128 Addition - 57,357 Interest expense 5,714 9,812 Lease payments (41,661 ) (43,932 ) Foreign exchange movement (196 ) 2,584 Balance, end of the year $ 42,806 $ 78,949 Current liability $ 39,493 $ 51,963 Long-term liability $ 3,313 $ 26,986 | 7. COMMITMENTS AND CONTINGENCIES Lease Liability The Company has entered into office lease agreements for its office premises for terms ending in 2023. As of September 30, 2021, the Company’s lease had a weighted-average remaining term of 1.6 years. The undiscounted future lease payments as of September 30, 2021 are as follows: SCHEDULE OF UNDISCOUNTED FUTURE LEASE PAYMENTS 2022 $ 55,402 2023 31,885 Total lease payments $ 87,287 PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 7. COMMITMENTS AND CONTINGENCIES Lease Liability The components of lease expense were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE 2021 2020 Fixed lease expense $ 43,932 $ 20,962 Variable lease expense 10,404 6,048 Total $ 54,336 $ 27,010 The following is a continuity schedule of lease liability: SCHEDULE OF LEASE LIABILITY 2021 2020 Balance, beginning of the year $ 53,128 $ - Addition 57,357 66,432 Interest expense 9,812 7,233 Lease payments (43,932 ) (20,962 ) Foreign exchange movement 2,584 425 Balance, end of the year $ 78,949 $ 53,128 Current liability $ 51,963 $ 21,202 Long-term liability $ 26,986 $ 31,926 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | 8. RELATED PARTY TRANSACTIONS During the year ended September 30, 2020, the Company issued a total of $ 157,000 (CAD$ 200,000 ) in convertible debentures to the CEO and a director of the Company for cash. During the year ended September 30, 2021, the Company repaid $ 79,000 (CAD$ 100,000 ) of the convertible debenture due to a director of the Company together with accrued interest of $ 13,090 . As of June 30, 2022, $ 77,600 (CAD$ 100,000 ) (September 30, 2021 - $ 78,500 ) of debenture loan remained outstanding and the interest accrued on the loan was $ 4,241 (September 30, 2021 - $ 15,176 ). During the nine months ended June 30, 2022, the Company incurred management fees of $ 176,989 (2021 - $ 112,478 ) to the CEO of the Company. The Company considers this a related party transaction, as it relates to key management personnel and entities over which it has control or significant influence. On May 1, 2022, the Company amended the employment with the CEO of the Company for an annual base salary of $ 250,000 , with no specified term. The CEO is also eligible on an annual basis for a cash bonus of up to 100% of annual salary. The employment agreement may be terminated with a termination payment equal to three years of base salary and a bonus equal to 20% of the annual base salary. On May 1, 2022, the Company entered into an employment with the CFO of the Company for an annual base salary of $ 50,000 , with no specified term. The CFO is also eligible on an annual basis for a cash bonus of up to 100% of annual salary. The employment agreement may be terminated with a termination payment equal to two months of base salary. PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) | 8. RELATED PARTY TRANSACTIONS During the year ended September 30, 2020, the Company issued a total of $ 150,000 (CAD$ 200,000 ) in convertible debentures to the CEO and a director of the Company for cash (Note 6). During the year ended September 30, 2021, the Company repaid $ 79,000 (CAD$ 100,000 ) of the convertible debenture due to a director of the Company together with accrued interest of $ 13,090 . As of September 30, 2021, $ 78,500 (CAD$ 100,000 ) of the debenture loan remained outstanding and the interest accrued on the loan was $ 15,176 (2020 - $ 14,104 ). During the year ended September 30, 2021, the Company incurred management fees of $ 149,806 (2020 - $ 144,288 ) to a company controlled by the CEO of the Company. The Company considers this a related party transaction, as it relates to key management personnel and entities over which it has control or significant influence. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 |
EQUITY
EQUITY | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | ||
EQUITY | 9. EQUITY Common shares The Company has authorized an unlimited number of common shares with no par value. At June 30, 2022 and September 30, 2021, the Company had 1,932,600 and 1,103,006 common shares issued and outstanding, respectively. During the nine months ended June 30, 2022, the Company: a) Completed a non-brokered private placement of 44,117 units at a price of $ 13.20 (CAD$ 16.20 ) per unit for gross proceeds of $ 571,760 (CAD$ 714,700 ). Each unit is comprised of one common share and one half of one share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share for a period of 24 months at an exercise price of $ 25.80 (CAD$ 32.40 ). The Company allocated $ 137,946 of the proceeds to the warrants. The Company paid $ 34,733 and issued 2,680 agent’s warrants as a finders’ fee. The finder’s warrants have the same terms as the warrants issued under the private placement. The finder’s warrants were valued at $ 24,543 using the Black-Scholes option pricing model (assuming a risk-free interest rate of 0.98 %, an expected life of 2 years, annualized volatility of 153.02 % and a dividend rate of 0 %). The Company also incurred filing and other expenses of $ 800 in connection with the private placement. b) Completed a brokered private placement of 785,477 units at a price of $ 9.60 per unit for gross proceeds of $ 7,540,580 . Each unit is comprised of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share for a period of 5 years at an exercise price of $ 12.60 . The Company allocated $ 607,170 of the proceeds to the warrants. ThinkEquity LLC (“ThinkEquity”) acted as sole placement agent for the private placement. In connection with the private placement, ThinkEquity received a cash commission of $ 754,058 , 78,548 broker warrants and expense reimbursement of $ 131,560 . The broker’s warrants have the same terms as the warrants issued under the private placement. The broker’s warrants were valued at $ 858,429 using the Black-Scholes option pricing model (assuming a risk-free interest rate of 2.45 %, an expected life of 5 years, annualized volatility of 134.66 % and a dividend rate of 0 %). The Company also incurred filing and other expenses of $ 140,475 in connection with the private placement. During the year ended September 30, 2021, the Company: a) Issued 19,271 common shares of the Company with a fair value of $ 54,313 pursuant to service agreements. b) Issued 416,666 common shares of the Company with a value of $ 2,468,750 pursuant to a property acquisition agreement. PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) 9. EQUITY Share-based payments Stock options The Company has a stock option plan (the “Plan”) in place under which it is authorized to grant options to executive officers and directors, employees and consultants. Pursuant to the Plan, the Company may issue aggregate stock options totaling up to 10 % of the issued and outstanding common shares of the Company. Further, the Plan calls for the exercise price of each option to be equal to the market price of the Company’s shares as calculated on the date of grant. The options can be granted for a maximum term of 10 years and vest at the discretion of the Board of Directors at the time of grant. Stock option transactions are summarized as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS Number Weighted Price Balance, September 30, 2020 39,003 $ 18.75 Cancelled (1,086 ) 23.70 Balance, September 30, 2021 37,917 $ 19.51 Granted 55,000 11.38 Balance, June 30, 2022 92,917 $ 14.49 Exercisable at June 30, 2022 91,667 $ 15.10 Weighted average fair value of options granted $ 11.40 (2021 - $ nil ) The aggregate intrinsic value of options outstanding and exercisable as at June 30, 2022 was $ nil (2021 - $ nil ). The options outstanding as of June 30, 2022 equaled 92,917 shares, and have exercise prices in the range of $ 2.36 to $ 23.55 and a weighted average remaining contractual life of 7.88 years. The weighted average fair value of options granted during the nine months ended June 30, 2022 was $ 11.40 . There were no options granted during the year ended September 30, 2021. During the nine months ended June 30, 2022 and 2021, the Company recognized share-based payment expense of $ 604,861 and $ 2,401 , respectively, for the portion of stock options that vested during the period. The following weighted average assumptions were used for the Black-Scholes valuation of stock options granted: SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE 2022 2021 Risk-free interest rate 1.50 % - Expected life of options 10 Years - Expected annualized volatility 131 % - Dividend rate Nil - PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) 9. EQUITY Share-based payments As at June 30, 2022, the following stock options were outstanding: SCHEDULE OF STOCK OPTIONS OUTSTANDING Number Exercise Price Expiry Date 27,917 $ 23.55 December 4, 2027 5,000 $ 14.13 November 1, 2028 5,000 $ 2.36 March 16, 2030 55,000 $ 11.17 October 6, 2031 92,917 Warrants Warrants are measured at fair value on the date of the grant as determined using the Black-Scholes option pricing model. Warrant transactions are summarized as follows: SCHEDULE OF WARRANTS TRANSACTIONS Number Weighted Average Price Balance, September 30, 2020 80,087 $ 12.77 Granted 208,333 9.48 Warrants expired (80,087 ) 13.46 Balance, September 30, 2021 208,333 $ 9.42 Granted 888,763 12.81 Balance, June 30, 2022 1,097,097 $ 11.96 As at June 30, 2022, the following warrants were outstanding: SCHEDULE OF WARRANTS OUTSTANDING Number Exercise Price Expiry Date 24,739 $ 25.14 November 4, 2023 864,025 $ 12.22 March 29, 2027 208,333 $ 9.42 October 1, 2031 1,097,097 PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) | 9. EQUITY Common stock The Company has authorized an unlimited number of common shares with no par value. At September 30, 2021 and 2020, the Company had 1,103,006 and 667,069 common shares issued and outstanding, respectively. During the year ended September 30, 2021, the Company issued the following shares: a) 19,271 common shares of the Company with a fair value of $ 54,313 pursuant to service agreements. b) 416,666 common shares of the Company with a value of $ 2,468,750 pursuant to a property acquisition agreement (Note 4). There were no common shares issued during the year ended September 30, 2020. Share-based payments Stock options The Company has a stock option plan (the “Plan”) in place under which it is authorized to grant options to executive officers and directors, employees and consultants. Pursuant to the Plan, the Company may issue aggregate stock options totaling up to 10 % of the issued and outstanding common stock of the Company. Further, the Plan calls for the exercise price of each option to be equal to the market price of the Company’s stock as calculated on the date of grant. The options can be granted for a maximum term of 10 years and vest at the discretion of the Board of Directors at the time of grant. Stock option transactions are summarized as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS Number Weighted Balance, September 30, 2019 42,336 $ 21.58 Granted 5,000 2.23 Cancelled (8,333 ) 22.32 Balance, September 30, 2020 39,003 $ 18.75 Cancelled (1,086 ) 23.70 Balance, September 30, 2021 37,917 $ 19.51 Exercisable at September 30, 2021 35,417 $ 20.72 Weighted average fair value of options granted during the year $ nil (2020 - $ 1.69 ) The aggregate intrinsic value of options outstanding and exercisable as at September 30, 2021 was $ nil (2020 - $ nil ). PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 9. EQUITY Share-based payments The options outstanding as of September 30, 2021 equaled 37,917 shares, and have exercise prices in the range of $ 2.36 to $ 23.55 and a weighted average remaining contractual life of 6.60 years. The weighted average fair value of options granted during the year ended September 30, 2020 was $ 1.69 . There were no options granted during the year ended September 30, 2021. During the years ended September 30, 2021 and 2020, the Company recognized share-based payment expense of $ 2,870 and $ 4,175 , respectively, for the portion of stock options that vested during the year. The following weighted average assumptions were used for the Black-Scholes valuation of stock options granted: SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE 2021 2020 Risk-free interest rate - 0.78 % Expected life of options - 10 Years Expected annualized volatility - 120 % Dividend rate - Nil As at September 30, 2021, the following stock options were outstanding: SCHEDULE OF STOCK OPTIONS OUTSTANDING Number Exercise Price Expiry Date 27,917 $ 23.55 December 4, 2027 5,000 $ 14.13 November 1, 2028 5,000 $ 2.36 March 16, 2030 37,917 Warrants Warrant transactions are summarized as follows: SCHEDULE OF WARRANTS TRANSACTIONS Number Weighted Balance, September 30, 2019 and 2020 80,087 $ 12.77 Granted 208,333 9.48 Warrants expired (80,087 ) 13.46 Balance, September 30, 2021 208,333 $ 9.42 The 208,333 warrants outstanding at September 30, 2021 have an exercise price of $ 9.42 and expire on October 1, 2031. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 |
LOSS PER SHARE
LOSS PER SHARE | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||
LOSS PER SHARE | 10. LOSS PER SHARE The calculation of basic and diluted loss per share for the nine month periods ended June 30, 2022 and 2021 was based on the losses attributable to common shareholders. The following table sets forth the computation of basic and diluted loss per share: SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE 2022 2021 Net loss $ (1,729,012 ) $ (460,316 ) Weighted average common shares outstanding 1,411,734 676,470 Basic and diluted loss per share $ (1.23 ) $ (0.68 ) As of June 30, 2022, $ 77,600 (CAD$ 100,000 ) of convertible debentures convertible into 11,111 common shares, 92,917 (2021 - 37,917 ) stock options and 1,097,097 (2021 - 208,333 ) warrants were excluded from the diluted weighted average number of common shares calculation as their effect would have been anti-dilutive. | 10. LOSS PER SHARE The calculation of basic and diluted loss per share for the years ended September 30, 2021 and 2020 was based on the losses attributable to common shareholders. The following table sets forth the computation of basic and diluted loss per share: SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE 2021 2020 Net loss $ (1,245,057 ) $ (1,249,202 ) Weighted average common shares outstanding 678,958 667,069 Basic and diluted loss per share $ (1.83 ) $ (1.87 ) As of September 30, 2021, $ 78,500 (CAD$ 100,000 ) of convertible debentures convertible into 11,111 common shares, 37,917 (2020 – 39,003 ) stock options and 208,333 (2020 – 80,087 ) warrants were excluded from the diluted weighted average number of common shares calculation as their effect would have been anti-dilutive. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 11. INCOME TAXES A reconciliation of income taxes at statutory rates with the reported taxes is as follows: SCHEDULE OF RECONCILIATION OF INCOME TAX 2021 2020 Loss before income taxes $ (1,245,057 ) $ (1,249,202 ) Expected income tax recovery at statutory rates $ (336,000 ) $ (337,000 ) Change in statutory, foreign tax, foreign exchange rates and other (26,000 ) (6,000 ) Permanent differences 1,000 2,000 Adjustment to prior years provision versus statutory tax returns (11,000 ) (13,000 ) Unrecognized temporary differences 372,000 354,000 Deferred income tax recovery $ - $ - The significant components of the Company’s deferred tax assets and liabilities are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 2021 2020 Non-capital losses available for future periods $ 780,000 $ 571,000 Property and equipment (9,000 ) (204,000 ) Financing fees 38,000 70,000 Total gross deferred tax assets 809,000 437,000 Unrecognized deferred income tax assets (809,000 ) (437,000 ) Net deferred income tax assets $ - $ - The significant components of the Company’s temporary differences include financing fees and non-capital losses available for future periods. For the years ended September 30, 2021 and 2020, the Company had financing fees of $ 140,000 and $ 254,000 , respectively, with expiration dates between 2041 and 2043 . The Company also had non-capital losses available for future periods in both Canada and the United States. For the years ended September 30, 2021 and 2020, the Canada losses totaled $ 2,703,000 and $ 1,241,000 , respectively, with expiration dates ranging from 2037 to 2041 and 2037 to 2040 , respectively. The United States non-capital losses for the years ended September 30, 2021 and 2020 totaled $ 213,000 and $ 106,000 , respectively, and had no expiration dates. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting [Abstract] | ||
SEGMENTED INFORMATION | 11. SEGMENTED INFORMATION Operating segments The Company operates in a single reportable segment – the acquisition, development and production of oil and gas properties in the United States. | 12. SEGMENTED INFORMATION Operating segments The Company operates in a single reportable segment – the acquisition, development and production of oil and gas properties in the United States. |
EVENTS AFTER THE REPORTING PERI
EVENTS AFTER THE REPORTING PERIOD | 12 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
EVENTS AFTER THE REPORTING PERIOD | 13. EVENTS AFTER THE REPORTING PERIOD Subsequent to September 30, 2021, The Company i) Completed a non-brokered private placement of 44,117 units at a price of $ 13.20 (CAD$ 16.20 ) per unit for gross proceeds of $ 571,760 (CAD$ 714,700 ). Each unit is comprised of one common share and one half of one share purchase warrant; each whole warrant entitles the holder to acquire one additional common share for a period of 24 months at an exercise price of $ 25.80 (CAD$ 32.40 ). $ 137,946 of the proceeds was allocated to the warrants. The Company paid $ 34,733 and issued 2,680 agent’s warrants as a finders’ fee. The finder’s warrants have the same terms as the warrants issued under the private placement. The finder’s warrants were valued at $ 24,543 using the Black-Scholes option pricing model (assuming a risk-free interest rate of 0.98 %, an expected life of 2 year, annualized volatility of 153.02 % and a dividend rate of 0 %). The Company also incurred filing and other expenses of $ 800 in connection with the private placement. ii) Completed a brokered private placement of 785,477 units at a price of $ 9.60 per unit for gross proceeds of $ 7,540,580 . Each unit is comprised of one common share and one common share purchase warrant; each warrant entitles the holder to acquire one additional common share for a period of 5 years at an exercise price of $ 12.60 . $ 607,170 of the proceeds was allocated to the warrants. ThinkEquity LLC acted as sole placement agent for the private placement. In connection with the private placement, ThinkEquity received a cash commission of $ 754,058 , broker warrants of 78,548 and expense reimbursement of $ 131,560 . The broker’s warrants have the same terms as the warrants issued under the private placement. The broker’s warrants were valued at $ 858,429 using the Black-Scholes option pricing model (assuming a risk-free interest rate of 2.45 %, an expected life of 5 year, annualized volatility of 134.66 % and a dividend rate of 0 %). The Company also incurred filing and other expenses of $ 140,475 in connection with the private placement. iii) Granted stock options to directors and consultants of the Company to purchase 55,000 common shares at an exercise price of $ 11.40 (CAD$ 14.40 ) per share for a period of 10 years. iv) Amended the employment with the CEO of the Company for an annual base salary of $ 250,000 , with no specified term. The CEO is also eligible on an annual basis for a cash bonus of up to 100 % of annual salary. The employment agreement may be terminated with a termination payment equal to three years of base salary and a bonus equal to 20 % of the annual base salary. v) Entered into an employment with the CFO of the Company for an annual base salary of $ 50,000 , with no specified term. The CFO is also eligible on an annual basis for a cash bonus of up to 100 % of annual salary. The employment agreement may be terminated with a termination payment equal to two months of base salary. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 |
SUPPLEMENTAL INFORMATION ON OIL
SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS (UNAUDITED) | 12 Months Ended |
Sep. 30, 2021 | |
Supplemental Information On Oil And Gas Operations | |
SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS (UNAUDITED) | 14. SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS (UNAUDITED) Supplemental unaudited information regarding Permex’s oil and gas activities is presented in this note. All of Permex’s reserves are located within the U.S. Costs Incurred in Oil and Gas Producing Activities SCHEDULE OF COST INCURRED IN PRODUCING ACTIVITIES 12 Months Ended 12 Months Ended September 30, 2021 September 30, 2020 Acquisition of proved properties $ 4,612,981 $ — Acquisition of unproved properties — — Development costs 162,498 254,299 Exploration costs — — Total costs incurred $ 4,775,479 $ 254,299 Results of Operations from Oil and Gas Producing Activities 12 Months Ended 12 Months Ended September 30, 2021 September 30, 2020 Oil and gas revenues $ 84,625 $ 682,786 Production costs (59,671 ) (557,624 ) Exploration expenses — — Depletion, depreciation and amortization (52,439 ) (28,660 ) Impairment of oil and gas properties — — Result of oil and gas producing operations before income taxes (27,485 ) 96,502 Provision for income taxes — — Results of oil and gas producing activities $ (27,485 ) $ 96,502 Proved Reserves The Company’s proved oil and natural gas reserves have been estimated by the certified independent engineering firm, MKM Engineering. Proved reserves are the estimated quantities that geologic and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are the quantities expected to be recovered through existing wells with existing equipment and operating methods when the estimates were made. Due to the inherent uncertainties and the limited nature of reservoir data, such estimates are subject to change as additional information becomes available. The reserves actually recovered and the timing of production of these reserves may be substantially different from the original estimate. Revisions result primarily from new information obtained from development drilling and production history; acquisitions of oil and natural gas properties; and changes in economic factors. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 14. SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS (UNAUDITED) Our proved reserves are summarized in the table below: SCHEDULE OF PROVED RESERVES Oil (Barrels) Natural Gas (Mcf) BOE (Barrels) Proved developed and undeveloped reserves: September 30, 2019 3,992,240 498,180 4,075,270 Revisions(1) 440,160 251,196 482,026 Discoveries and extensions — — — Sale of reserves(2) (709,800 ) — (709,800 ) Production (16,240 ) (9,196 ) (17,773 ) September 30, 2020 3,706,360 740,180 3,829,723 Revisions(3) (88,263 ) 38,640 (81,823 ) Purchase of proved reserves(4) 5,408,560 2,859,590 5,885,158 Sale reserves(5) (2,826,290 ) (618,650 ) (2,929,398 ) Production (947 ) (1,410 ) (1,182 ) September 30, 2021 6,199,420 3,018,350 6,702,478 Proved developed reserves: September 30, 2019 921,410 104,000 938,743 September 30, 2020 549,390 82,430 563,128 September 30, 2021 587,450 411,910 656,102 Proved undeveloped reserves: September 30, 2019 3,070,830 394,180 3,136,527 September 30, 2020 3,156,970 657,750 3,266,595 September 30, 2021 5,611,970 2,606,440 6,046,377 (1) Revisions in 2020 included 120,850 bbls additional proved undeveloped reserves due to economic conditions and approximately 373,000 bbls of oil and 242,000 mcf of natural gas added to the ODC Gaines County property due to two additional productive zones evaluated and included in proved reserves. (2) During 2020, the Company sold their McMurtry-Loving property. (3) Revisions in 2021 included 120,850 bbls in proved undeveloped reserves being classified as probable in the 2021 reserve report, net of other immaterial revisions in several properties. (4) During 2021, the Company purchased 6,046 net acres in Martin County, Texas. (5) During 2021, the Company sold ODC and Taylor properties. Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves The following information is based on the Company’s best estimate of the required data for the Standardized Measure of Discounted Future Net Cash Flows as of September 30, 2021 and September 30, 2020 in accordance with ASC 932, “Extractive Activities – Oil and Gas” which requires the use of a 10% discount rate. This information is not the fair market value, nor does it represent the expected present value of future cash flows of the Company’s proved oil and gas reserves. Future cash inflows for the years ended September 30, 2021 and September 30, 2020 were estimated as specified by the SEC through calculation of an average price based on the 12-month unweighted arithmetic average of the first-day-of-the-month price for the period from October through September during each respective fiscal year. The resulting net cash flow are reduced to present value by applying a 10% discount factor. SCHEDULE OF NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES 12 Months Ended September 30, 2021 September 30, 2020 Future cash inflows $ 355,958,000 $ 150,694,000 Future production costs(1) (69,683,000 ) (50,268,000 ) Future development costs (71,700,000 ) (26,263,000 ) Future income tax expenses (57,206,000 ) (19,689,000 ) Future net cash flows 157,369,000 54,474,000 10% annual discount for estimated timing of cash flows (84,100,000 ) (33,677,000 ) Standardized measure of discounted future net cash flows at the end of the fiscal year $ 73,269,000 $ 20,797,000 (1) Production costs include crude oil and natural gas operations expense, production ad valorem taxes, transportation costs and G&A expense supporting the Company’s crude oil and natural gas operations. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 14. SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS (UNAUDITED) Average hydrocarbon prices are set forth in the table below. SCHEDULE OF AVERAGE HYDROCARBON PRICES Average Price Natural Crude Oil (Bbl) Gas (Mcf) Year ended September 30, 2019 (1) $ 53.60 $ 2.51 Year ended September 30, 2020 (1) $ 40.30 $ 1.77 Year ended September 30, 2021 (1) $ 55.98 $ 2.95 (1) Average prices were based on 12-month unweighted arithmetic average of the first-day-of-the-month prices for the period from October through September during each respective fiscal year. Future production and development costs, which include dismantlement and restoration expense, are computed by estimating the expenditures to be incurred in developing and producing the Company’s proved crude oil and natural gas reserves at the end of the year, based on year-end costs, and assuming continuation of existing economic conditions. Sources of Changes in Discounted Future Net Cash Flows Principal changes in the aggregate standardized measure of discounted future net cash flows attributable to the Company’s proved crude oil and natural gas reserves, as required by ASC 932, at fiscal year-end are set forth in the table below. SCHEDULE OF CHANGES IN DISCOUNTED FUTURE NET CASH FLOWS 12 Months Ended September 30, 2021 September 30, 2020 Standardized measure of discounted future net cash flows at the beginning of the year $ 20,797,000 $ 40,833,000 Extensions, discoveries and improved recovery, less related costs — — Sales of minerals in place (62,682,000 ) (7,509,000 ) Purchase of minerals in place 125,927,000 — Revisions of previous quantity estimates (1,751,000 ) 5,099,000 Net changes in prices and production costs 32,573,000 (21,863,000 ) Accretion of discount 1,498,000 3,416,000 Sales of oil produced, net of production costs 13,000 (125,000 ) Changes in future development costs (21,339,000 ) (919,000 ) Changes in timing of future production (2,580,000 ) (5,562,000 ) Net changes in income taxes (19,187,000 ) 7,427,000 Standardized measure of discounted future net cash flows at the end of the year $ 73,269,000 $ 20,797,000 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Accounting Policies [Abstract] | ||
Basis of presentation | Basis of presentation The unaudited condensed interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed consolidated financial statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of the Company’s financial position and of the results of operations and cash flows for the periods presented. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending September 30, 2022 or for any other interim period or for any other future fiscal year. These condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s amended Form S-1 for the fiscal year ended September 30, 2021 filed with the Securities and Exchange Commission (“SEC”) on August 8, 2022. There have been no material changes in the Company’s significant accounting policies from those that were disclosed in the fiscal 2021 financial statements, except as noted below. | Basis of presentation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Permex Petroleum US Corporation and have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). These consolidated financial statements are presented in United States dollars (“USD”). The functional currency of the Company is the Canadian dollar (“CAD”). The functional currency for the subsidiary of the Company is the United States dollar (“USD”). |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities, revenue and expenses of the Company’s wholly-owned subsidiary. All intercompany balances and transactions have been eliminated. | Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities, revenue and expenses of all wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) amounts subject to allowances and returns; (ii) the fair value of assets when determining the existence of impairment factors and the amount of impairment, if any; (iii) the costs of site restoration when determining decommissioning liabilities; (iv) income taxes receivable or payable; (v) the useful lives of assets for the purposes of depreciation; (vi) petroleum and natural gas reserves; and (vii) share-based payments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates. PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) 2. Significant Accounting Policies | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) amounts subject to allowances and returns; (ii) the fair value of assets when determining the existence of impairment factors and the amount of impairment, if any; (iii) the costs of site restoration when determining decommissioning liabilities; (iv) income taxes receivable or payable; (v) the useful lives of assets for the purposes of depreciation; (vi) petroleum and natural gas reserves; and (vii) share-based payments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates. |
Cash | Cash The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash and cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 2. Significant Accounting Policies | |
Trade and other receivables | Trade and other receivables Trade and other receivables are stated at net realizable value. The majority of customers are not extended credit and therefore time to maturity for receivables is short. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance or if any accounts should be written off based on a past history of write-offs, collections, and current credit conditions. A receivable is considered past due if the Company has not received payments based on agreed-upon terms. Given the nature and balances of the Company’s receivables the Company has no material loss allowance as at September 30, 2021 and September 30, 2020. | |
Property and equipment | Property and equipment The Company follows the successful efforts method of accounting for its oil and gas properties. All costs for development wells along with related acquisition costs, the costs of drilling development wells, and related asset retirement obligation (ARO) assets are capitalized. Exploration costs, such as exploratory geological and geophysical costs, and costs associated with non-productive exploratory wells, delay rentals and exploration overhead are expensed. Costs of drilling exploratory wells are capitalized pending determination of whether the wells found proved reserves. Costs of wells that are assigned proved reserves remain capitalized. Costs also are capitalized for exploratory wells that have found crude oil and natural gas reserves even if the reserves cannot be classified as proved when the drilling is completed, provided the exploratory well has found a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. The Company groups its oil and gas properties with a common geological structure or stratigraphic condition (“common operating field”) for purposes of computing depletion expenses, assessing proved property impairments and accounting for asset dispositions. Capitalized costs of proved oil and gas properties are depleted by individual field using a unit-of-production method based on proved and probable developed reserves. Proved reserves are estimated using reserve engineer reports and represent the estimated quantities of crude oil, natural gas and natural gas liquids, which geological, geophysical and engineering data demonstrate with a specified degree of certainty to be recoverable in future years from known reservoirs and which are considered commercially producible. Proved oil and natural gas properties are assessed for possible impairment by comparing their carrying values with their associated undiscounted, future net cash flows. Events that can trigger assessments for possible impairments include write-downs of proved reserves based on field performance, significant decreases in the market value of an asset (including changes to the commodity price forecast or carbon costs), significant change in the extent or manner of use of or a physical change in an asset, and a more-likely-than-not expectation that a long-lived asset or asset group will be sold or otherwise disposed of significantly sooner than the end of its previously estimated useful life. Impaired assets are written down to their estimated fair values, generally their discounted, future net cash flows. For proved oil and natural gas properties, the Company performs impairment reviews on a field basis, annually or as appropriate. Other corporate equipment consist primarily of leasehold improvements and computer equipment and are stated at cost less accumulated depreciation. The capitalized costs are generally depreciated on a straight line basis over their estimated useful lives as follows: SCHEDULE OF ESTIMATED USEFUL LIVES Computer equipment 2 years Leasehold improvements 5 years PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 3. SIGNIFICANT ACCOUNTING POLICIES Property and equipment For property dispositions, measurement is at fair value, unless the transaction lacks commercial substance or fair value cannot be reliably measured. Where the exchange is measured at fair value, a gain or loss is recognized in net income. Any deferred consideration recorded on property dispositions are recognized as revenue in the statement of loss and comprehensive loss over the reserve life. Gains or losses are recorded for sales or dispositions of oil and gas properties which constitute an entire common operating field or which result in a significant alteration of the common operating field’s depletion rate. These gains and losses are classified as asset dispositions in the accompanying consolidated statements of loss and comprehensive loss. Partial common operating field sales or dispositions deemed not to significantly alter the depletion rates are generally accounted for as adjustments to capitalized costs with no gain or loss recognized. | |
Impairment of long-lived assets | Impairment of long-lived assets The Company assesses long-lived assets for impairment in accordance with the provisions of Financial Accounting Standards Board ASC 360, Property, Plant and Equipment | |
Decommissioning liabilities | Decommissioning liabilities The Company’s activities give rise to dismantling, decommissioning, and site disturbance remediation activities. A provision is made for the estimated cost of site restoration and capitalized in the relevant asset category. Decommissioning liabilities are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. Changes in the present value of the estimated expenditure are reflected as an adjustment to the provision and the relevant asset. The unwinding of the discount on the decommissioning provision is recognized as an accretion expense. Actual costs incurred upon settlement of the decommissioning liabilities are charged against the provision to the extent the provision was recognized. Decommissioning obligations require the use of management’s best estimates of future decommissioning expenditures, expected timing of expenditures and future inflation rates. 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. Provisions are not recognized for future operating losses. Provisions for decommissioning associated with the Company’s oil and gas operations are based on current legal and constructive requirements, technology, price levels and expected plans for remediation. Actual costs and cash outflows may differ from estimates due to changes in laws and regulations, public expectations, prices, discovery and analysis of site conditions and changes in clean up technology. Estimates are made using internal and external information. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 3. SIGNIFICANT ACCOUNTING POLICIES | |
Fair value measurement | Fair value measurement Fair value accounting is applied for all assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company follows the established framework for measuring fair value and expands disclosures about fair value measurements. The Company categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Assets and liabilities valued at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 Level 2 Level 3 The financial statements as of and for the years ended September 30, 2021 and 2020, do not include any recurring or nonrecurring fair value measurements relating to assets or liabilities. Subsequent to initial recognition, the Company may re-measure the carrying value of assets and liabilities measured on a nonrecurring basis to fair value. Adjustments to fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their fair value. Professional standards allow entities the irrevocable option to elect to measure certain financial instruments and other items at fair value for the initial and subsequent measurement on an instrument-by-instrument basis. The Company has not elected to measure any existing financial instruments at fair value. However, it may elect to measure newly acquired financial instruments at fair value in the future. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 3. SIGNIFICANT ACCOUNTING POLICIES | |
Leases | Leases At inception of a contract, the Company assesses whether a contract is, or contains a lease based on whether the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. The Company recognizes a right-of-use asset and a lease obligation at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease obligation adjusted for any lease payments made at or before the commencement date. The lease obligation is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Variable lease payments that do not depend on an index or rate are not included in the measurement of the lease obligation. The lease obligation is subsequently measured at amortized cost using the effective interest rate method. | |
Share capital | Share capital The Company records proceeds from the issuance of its Common Shares as equity. Incremental costs directly attributable to the issue of new Common Shares are shown in equity as a deduction, net of tax, from the proceeds. Common Shares issued for consideration other than cash are valued based on their market value at the date that the shares are issued. Warrants issued with private placement units are classified as equity and initially recorded at fair value with no subsequent remeasurement. Proceeds from the issuance of private placement units are allocated between the private placement warrants and Common Shares on a relative fair value basis. | |
Earnings (loss) per share | Earnings (loss) per share Basic earnings (loss) per share (“EPS”) is calculated by dividing the EPS attributable to common shareholders by the weighted average number of Common Shares outstanding in the period. The diluted EPS reflects all dilutive potential Common Shares equivalents, in the weighted average number of Common Shares outstanding during the period, if dilutive. All of the outstanding convertible securities, stock options and warrants were anti-dilutive for the years ended September 30, 2021 and 2020. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 3. SIGNIFICANT ACCOUNTING POLICIES | |
Share-based payments | Share-based payments The Company issues stock options and other share-based compensation to directors, employees and others service providers. Equity awards including stock options and share purchase warrants are measured at grant date at the fair value of the instruments issued and amortized over the vesting periods using a graded approach. The amount recognized as an expense is adjusted to reflect the actual number of share options that are expected to vest. Each tranche in an award is considered a separate grant with a different vesting date and fair value and is accounted for on that basis. The offset to the recorded cost is to share-based payments reserve. The number of options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount ultimately recognized as an expense is based on the number of options that eventually vest. Consideration received on the exercise of stock options is recorded as share capital and the related share-based payments reserve is transferred to share capital. The fair value of the equity awards is determined using the Black-Scholes option pricing model. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility), weighted average expected life of the instruments (based on historical experience), expected dividends, and the risk-free interest rate (based on government bonds). | |
Revenue | Revenue In accordance with ASC 606, Revenue from Contracts with Customers, For natural gas, this is generally at the time product enters the pipeline. For crude oil, this is generally at the time the product reaches a trucking terminal. For natural gas liquids, this is generally at the time the product reaches a gas plant. Revenue is measured net of discounts, customs duties, royalties and withholding tax. Royalty income represents net revenue interests from the sale of crude oil and natural gas and is recognized upon the operators of the properties completing the sale of crude oil and natural gas. The Company records revenue in the month production is delivered to the purchaser. However, production statements for oil and gas sales may not be received until the following month end after the products are purchased, and as a result, the Company is required to estimate the amount of revenue to be received. The Company records the differences between its estimates and the actual amounts received for revenue in the month that payment is received from the customer. Identified differences between the Company’s revenue estimates and actual revenue received historically have not been significant. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the revenue related to sales volumes and prices for those good sold are estimated and recorded. The Company does not have any contract assets or liabilities, or capitalized contract costs. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 3. SIGNIFICANT ACCOUNTING POLICIES | |
Foreign Currency | Foreign Currency These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Permex Petroleum US Corporation. These consolidated financial statements are presented in United States dollars (“USD,” “US” or “$”). The functional currency of the Company is the Canadian dollar (“CAD”). The functional currency for the subsidiary of the Company is USD. | Foreign currencies Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary assets and liabilities are translated using the historical rate on the date of the transaction. Non-monetary assets and liabilities that are stated at fair value are translated using the historical rate on the date that the fair value was determined. All gains and losses on translation of these foreign currency transactions are charged to profit or loss. Financial statements of the parent company prepared under their functional currencies are translated into United States dollars for consolidation purposes as follows: assets and liabilities are translated using the exchange rate prevailing at the reporting date; revenue and expenses are translated using the average rates of exchange for the period. Gains and losses resulting from translation adjustments are recorded to other comprehensive income (loss) and accumulated as a separate component of shareholders’ equity, described as foreign currency translation adjustment. |
Income taxes | Income taxes Current taxes receivable or payable are estimated on taxable income or loss for the current year at the statutory tax rates enacted or substantively enacted at the reporting date. Deferred income tax is recognized on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax assets and liabilities are measured at the tax rates that have been enacted or substantially enacted at the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets also result from unused loss carry forwards, resource related pools and other deductions. At the end of each reporting year the Company reassesses unrecognized deferred tax assets. Deferred income tax assets are recognized for unused tax losses, tax credits and deductible temporary differences, only to the extent that it is probable that future taxable profit will be available against which they can be utilized. Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right exists to offset current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority. PERMEX PETROLEUM CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2021 AND 2020 3. SIGNIFICANT ACCOUNTING POLICIES | |
Recently adopted accounting pronouncement | Recently adopted accounting pronouncement None. | New accounting standards In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) – Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity In June 2016, the FASB issued ASU No. 2016-13 (Topic 326), Financial Instruments — Credit Losses – Measurement of Credit Losses on Financial Instruments Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ESTIMATED USEFUL LIVES | SCHEDULE OF ESTIMATED USEFUL LIVES Computer equipment 2 years Leasehold improvements 5 years |
NON-CURRENT ASSETS (Tables)
NON-CURRENT ASSETS (Tables) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Non-current Assets | ||
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT June 30, September 30, Oil and natural gas properties, at cost $ 8,044,184 $ 7,954,807 Vehicle, at cost 63,918 - Less: accumulated depletion and depreciation (269,582 ) (108,662 ) Property and equipment, net $ 7,838,520 $ 7,846,145 | Property and equipment as of September 30, 2021 and 2020 consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT 2021 2020 Oil and natural gas properties $ 7,954,807 $ 3,803,800 Corporate assets - 42,436 Property and equipment, at cost 7,954,807 3,846,236 Less: accumulated depreciation and depletion (108,662 ) (80,322 ) Property and equipment, net $ 7,846,145 $ 3,765,914 |
SCHEDULE OF RECOVERABLE AMOUNT | The recoverable amount of the disposal group as of September 30, 2020 is as follows. SCHEDULE OF RECOVERABLE AMOUNT Assets held for sale Oil and gas properties $ 2,924,465 Liabilities held for sale Decommissioning liabilities $ 1,801,221 |
DECOMMISSIONING OBLIGATIONS (Ta
DECOMMISSIONING OBLIGATIONS (Tables) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
SCHEDULE OF DECOMMISSIONING OBLIGATIONS | Changes to the decommissioning obligations are as follows: SCHEDULE OF DECOMMISSIONING OBLIGATIONS June 30, September 30, Decommissioning obligations, beginning of the year $ 1,627,465 $ 792,814 Obligations acquired - 784,418 Obligations derecognized - (140,704 ) Change in estimates - 234,331 Change in discount rate - (81,236 ) Accretion expense 24,714 11,722 Foreign exchange movement (7,008 ) 26,120 Decommissioning obligation $ 1,645,171 $ 1,627,465 | Changes to the decommissioning obligations are as follows: SCHEDULE OF DECOMMISSIONING OBLIGATIONS 2021 2020 Decommissioning obligations, beginning of the year $ 792,814 $ 2,382,573 Obligations acquired 784,418 - Obligations derecognized (140,704 ) (116,192 ) Change in estimates 234,331 - Change in discount rate (81,236 ) 295,152 Accretion expense 11,722 45,371 Reclassification to liabilities held for sale - (1,801,221 ) Foreign exchange movement 26,120 (12,869 ) Decommissioning obligation $ 1,627,465 $ 792,814 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
SCHEDULE OF UNDISCOUNTED FUTURE LEASE PAYMENTS | SCHEDULE OF UNDISCOUNTED FUTURE LEASE PAYMENTS 2022 $ 13,785 2023 31,643 Total lease payments $ 45,428 | SCHEDULE OF UNDISCOUNTED FUTURE LEASE PAYMENTS 2022 $ 55,402 2023 31,885 Total lease payments $ 87,287 |
SCHEDULE OF COMPONENTS OF LEASE EXPENSE | The components of lease expense for the nine month periods ended June 30 were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE 2022 2021 Fixed lease expense $ 41,661 $ 30,194 Variable lease expense 13,246 4,597 Total $ 54,907 $ 34,791 | The components of lease expense were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE 2021 2020 Fixed lease expense $ 43,932 $ 20,962 Variable lease expense 10,404 6,048 Total $ 54,336 $ 27,010 |
SCHEDULE OF LEASE LIABILITY | The following is a continuity schedule of the lease liability: SCHEDULE OF LEASE LIABILITY June 30, September 30, Balance, beginning of the year $ 78,949 $ 53,128 Addition - 57,357 Interest expense 5,714 9,812 Lease payments (41,661 ) (43,932 ) Foreign exchange movement (196 ) 2,584 Balance, end of the year $ 42,806 $ 78,949 Current liability $ 39,493 $ 51,963 Long-term liability $ 3,313 $ 26,986 | The following is a continuity schedule of lease liability: SCHEDULE OF LEASE LIABILITY 2021 2020 Balance, beginning of the year $ 53,128 $ - Addition 57,357 66,432 Interest expense 9,812 7,233 Lease payments (43,932 ) (20,962 ) Foreign exchange movement 2,584 425 Balance, end of the year $ 78,949 $ 53,128 Current liability $ 51,963 $ 21,202 Long-term liability $ 26,986 $ 31,926 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | ||
SCHEDULE OF STOCK OPTION TRANSACTIONS | Stock option transactions are summarized as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS Number Weighted Price Balance, September 30, 2020 39,003 $ 18.75 Cancelled (1,086 ) 23.70 Balance, September 30, 2021 37,917 $ 19.51 Granted 55,000 11.38 Balance, June 30, 2022 92,917 $ 14.49 Exercisable at June 30, 2022 91,667 $ 15.10 Weighted average fair value of options granted $ 11.40 (2021 - $ nil ) | Stock option transactions are summarized as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS Number Weighted Balance, September 30, 2019 42,336 $ 21.58 Granted 5,000 2.23 Cancelled (8,333 ) 22.32 Balance, September 30, 2020 39,003 $ 18.75 Cancelled (1,086 ) 23.70 Balance, September 30, 2021 37,917 $ 19.51 Exercisable at September 30, 2021 35,417 $ 20.72 Weighted average fair value of options granted during the year $ nil (2020 - $ 1.69 ) |
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE | SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE 2022 2021 Risk-free interest rate 1.50 % - Expected life of options 10 Years - Expected annualized volatility 131 % - Dividend rate Nil - | SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE 2021 2020 Risk-free interest rate - 0.78 % Expected life of options - 10 Years Expected annualized volatility - 120 % Dividend rate - Nil |
SCHEDULE OF STOCK OPTIONS OUTSTANDING | As at June 30, 2022, the following stock options were outstanding: SCHEDULE OF STOCK OPTIONS OUTSTANDING Number Exercise Price Expiry Date 27,917 $ 23.55 December 4, 2027 5,000 $ 14.13 November 1, 2028 5,000 $ 2.36 March 16, 2030 55,000 $ 11.17 October 6, 2031 92,917 | As at September 30, 2021, the following stock options were outstanding: SCHEDULE OF STOCK OPTIONS OUTSTANDING Number Exercise Price Expiry Date 27,917 $ 23.55 December 4, 2027 5,000 $ 14.13 November 1, 2028 5,000 $ 2.36 March 16, 2030 37,917 |
SCHEDULE OF WARRANTS TRANSACTIONS | Warrant transactions are summarized as follows: SCHEDULE OF WARRANTS TRANSACTIONS Number Weighted Average Price Balance, September 30, 2020 80,087 $ 12.77 Granted 208,333 9.48 Warrants expired (80,087 ) 13.46 Balance, September 30, 2021 208,333 $ 9.42 Granted 888,763 12.81 Balance, June 30, 2022 1,097,097 $ 11.96 | Warrant transactions are summarized as follows: SCHEDULE OF WARRANTS TRANSACTIONS Number Weighted Balance, September 30, 2019 and 2020 80,087 $ 12.77 Granted 208,333 9.48 Warrants expired (80,087 ) 13.46 Balance, September 30, 2021 208,333 $ 9.42 |
SCHEDULE OF WARRANTS OUTSTANDING | As at June 30, 2022, the following warrants were outstanding: SCHEDULE OF WARRANTS OUTSTANDING Number Exercise Price Expiry Date 24,739 $ 25.14 November 4, 2023 864,025 $ 12.22 March 29, 2027 208,333 $ 9.42 October 1, 2031 1,097,097 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||
SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE | SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE 2022 2021 Net loss $ (1,729,012 ) $ (460,316 ) Weighted average common shares outstanding 1,411,734 676,470 Basic and diluted loss per share $ (1.23 ) $ (0.68 ) | SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE 2021 2020 Net loss $ (1,245,057 ) $ (1,249,202 ) Weighted average common shares outstanding 678,958 667,069 Basic and diluted loss per share $ (1.83 ) $ (1.87 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF RECONCILIATION OF INCOME TAX | A reconciliation of income taxes at statutory rates with the reported taxes is as follows: SCHEDULE OF RECONCILIATION OF INCOME TAX 2021 2020 Loss before income taxes $ (1,245,057 ) $ (1,249,202 ) Expected income tax recovery at statutory rates $ (336,000 ) $ (337,000 ) Change in statutory, foreign tax, foreign exchange rates and other (26,000 ) (6,000 ) Permanent differences 1,000 2,000 Adjustment to prior years provision versus statutory tax returns (11,000 ) (13,000 ) Unrecognized temporary differences 372,000 354,000 Deferred income tax recovery $ - $ - |
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The significant components of the Company’s deferred tax assets and liabilities are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 2021 2020 Non-capital losses available for future periods $ 780,000 $ 571,000 Property and equipment (9,000 ) (204,000 ) Financing fees 38,000 70,000 Total gross deferred tax assets 809,000 437,000 Unrecognized deferred income tax assets (809,000 ) (437,000 ) Net deferred income tax assets $ - $ - |
SUPPLEMENTAL INFORMATION ON O_2
SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Supplemental Information On Oil And Gas Operations | |
SCHEDULE OF COST INCURRED IN PRODUCING ACTIVITIES | SCHEDULE OF COST INCURRED IN PRODUCING ACTIVITIES 12 Months Ended 12 Months Ended September 30, 2021 September 30, 2020 Acquisition of proved properties $ 4,612,981 $ — Acquisition of unproved properties — — Development costs 162,498 254,299 Exploration costs — — Total costs incurred $ 4,775,479 $ 254,299 Results of Operations from Oil and Gas Producing Activities 12 Months Ended 12 Months Ended September 30, 2021 September 30, 2020 Oil and gas revenues $ 84,625 $ 682,786 Production costs (59,671 ) (557,624 ) Exploration expenses — — Depletion, depreciation and amortization (52,439 ) (28,660 ) Impairment of oil and gas properties — — Result of oil and gas producing operations before income taxes (27,485 ) 96,502 Provision for income taxes — — Results of oil and gas producing activities $ (27,485 ) $ 96,502 |
SCHEDULE OF PROVED RESERVES | Our proved reserves are summarized in the table below: SCHEDULE OF PROVED RESERVES Oil (Barrels) Natural Gas (Mcf) BOE (Barrels) Proved developed and undeveloped reserves: September 30, 2019 3,992,240 498,180 4,075,270 Revisions(1) 440,160 251,196 482,026 Discoveries and extensions — — — Sale of reserves(2) (709,800 ) — (709,800 ) Production (16,240 ) (9,196 ) (17,773 ) September 30, 2020 3,706,360 740,180 3,829,723 Revisions(3) (88,263 ) 38,640 (81,823 ) Purchase of proved reserves(4) 5,408,560 2,859,590 5,885,158 Sale reserves(5) (2,826,290 ) (618,650 ) (2,929,398 ) Production (947 ) (1,410 ) (1,182 ) September 30, 2021 6,199,420 3,018,350 6,702,478 Proved developed reserves: September 30, 2019 921,410 104,000 938,743 September 30, 2020 549,390 82,430 563,128 September 30, 2021 587,450 411,910 656,102 Proved undeveloped reserves: September 30, 2019 3,070,830 394,180 3,136,527 September 30, 2020 3,156,970 657,750 3,266,595 September 30, 2021 5,611,970 2,606,440 6,046,377 (1) Revisions in 2020 included 120,850 bbls additional proved undeveloped reserves due to economic conditions and approximately 373,000 bbls of oil and 242,000 mcf of natural gas added to the ODC Gaines County property due to two additional productive zones evaluated and included in proved reserves. (2) During 2020, the Company sold their McMurtry-Loving property. (3) Revisions in 2021 included 120,850 bbls in proved undeveloped reserves being classified as probable in the 2021 reserve report, net of other immaterial revisions in several properties. (4) During 2021, the Company purchased 6,046 net acres in Martin County, Texas. (5) During 2021, the Company sold ODC and Taylor properties. |
SCHEDULE OF NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES | SCHEDULE OF NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES 12 Months Ended September 30, 2021 September 30, 2020 Future cash inflows $ 355,958,000 $ 150,694,000 Future production costs(1) (69,683,000 ) (50,268,000 ) Future development costs (71,700,000 ) (26,263,000 ) Future income tax expenses (57,206,000 ) (19,689,000 ) Future net cash flows 157,369,000 54,474,000 10% annual discount for estimated timing of cash flows (84,100,000 ) (33,677,000 ) Standardized measure of discounted future net cash flows at the end of the fiscal year $ 73,269,000 $ 20,797,000 (1) Production costs include crude oil and natural gas operations expense, production ad valorem taxes, transportation costs and G&A expense supporting the Company’s crude oil and natural gas operations. |
SCHEDULE OF AVERAGE HYDROCARBON PRICES | Average hydrocarbon prices are set forth in the table below. SCHEDULE OF AVERAGE HYDROCARBON PRICES Average Price Natural Crude Oil (Bbl) Gas (Mcf) Year ended September 30, 2019 (1) $ 53.60 $ 2.51 Year ended September 30, 2020 (1) $ 40.30 $ 1.77 Year ended September 30, 2021 (1) $ 55.98 $ 2.95 (1) Average prices were based on 12-month unweighted arithmetic average of the first-day-of-the-month prices for the period from October through September during each respective fiscal year. |
SCHEDULE OF CHANGES IN DISCOUNTED FUTURE NET CASH FLOWS | SCHEDULE OF CHANGES IN DISCOUNTED FUTURE NET CASH FLOWS 12 Months Ended September 30, 2021 September 30, 2020 Standardized measure of discounted future net cash flows at the beginning of the year $ 20,797,000 $ 40,833,000 Extensions, discoveries and improved recovery, less related costs — — Sales of minerals in place (62,682,000 ) (7,509,000 ) Purchase of minerals in place 125,927,000 — Revisions of previous quantity estimates (1,751,000 ) 5,099,000 Net changes in prices and production costs 32,573,000 (21,863,000 ) Accretion of discount 1,498,000 3,416,000 Sales of oil produced, net of production costs 13,000 (125,000 ) Changes in future development costs (21,339,000 ) (919,000 ) Changes in timing of future production (2,580,000 ) (5,562,000 ) Net changes in income taxes (19,187,000 ) 7,427,000 Standardized measure of discounted future net cash flows at the end of the year $ 73,269,000 $ 20,797,000 |
BACKGROUND (Details Narrative)
BACKGROUND (Details Narrative) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Entity Incorporation, Date of Incorporation | Apr. 24, 2017 | Apr. 24, 2017 |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES (Details) | 12 Months Ended |
Sep. 30, 2021 | |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Concentration Risk [Line Items] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 276,722 | $ 34,298 | $ 625,057 | $ 37,392 | $ 84,625 | $ 682,786 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration Risk, Percentage | 54% | 100% | 49% | 45% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration Risk, Percentage | 71% | 26% | 95% | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 107,738 | $ 2,927 | $ 38,465 | |||
Accounts Receivable [Member] | One Customer [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,927 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 7,954,807 | $ 3,846,236 | |
Less: accumulated depletion and depreciation | $ (269,582) | (108,662) | (80,322) |
Property and equipment, net | 7,838,520 | 7,846,145 | 3,765,914 |
Oil and Gas Properties [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 8,044,184 | 7,954,807 | 3,803,800 |
Corporate Segment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 42,436 | ||
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 63,918 |
SCHEDULE OF RECOVERABLE AMOUNT
SCHEDULE OF RECOVERABLE AMOUNT (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Non-current Assets | |||
Assets held for sale, Oil and gas properties | $ 1,123,244 | $ 2,924,465 | |
Liabilities held for sale, Decommissioning liabilities | $ 1,801,221 |
NON-CURRENT ASSETS (Details Nar
NON-CURRENT ASSETS (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2020 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 $ / shares | |
Property, Plant and Equipment [Line Items] | ||||||||
[custom:HoldingWorkingInterestByParent-0] | 100% | 100% | 100% | |||||
[custom:ReclamationBonds-0] | $ 145,052 | $ 145,052 | $ 144,847 | $ 194,750 | ||||
[custom:ForfeitureOfReclamationDeposit] | $ (318) | $ 50,165 | 50,165 | |||||
[custom:DepletionAndDepreciation] | 73,093 | $ 12,717 | 161,988 | $ 21,955 | 60,479 | 37,291 | ||
Common Stock, Value, Issued | $ 14,381,071 | $ 14,381,071 | $ 8,976,747 | $ 6,453,039 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.50% | 0.78% | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 10 years | 10 years | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 131% | 120% | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | ||||||||
Long-Term Debt and Lease Obligation, Current | $ 10,000 | |||||||
Gain (Loss) on Termination of Lease | 604,687 | |||||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Noncurrent | 8,770 | |||||||
Impairment, Long-Lived Asset, Held-for-Use | $ 879,070 | |||||||
Assets Held-for-sale, Not Part of Disposal Group, Current | 2,924,465 | $ 1,123,244 | ||||||
Depreciation, Depletion and Amortization | $ 161,988 | $ 21,955 | $ 52,439 | $ 28,660 | ||||
Permex Petroleum US Corporation [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
[custom:NetRevenueInterestRate-0] | 81.75% | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | |||||||
Common Stock, Shares, Issued | shares | 416,666 | |||||||
[custom:NumberOfSharesPurchaseWarrantsAsConsideration] | shares | 208,333 | |||||||
Common Stock, Value, Issued | $ 2,468,750 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.51% | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 10 years | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 131.82% | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0% | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | (per share) | $ 9.42 | $ 12 | ||||||
Business Acquisition, Name of Acquired Entity | Permex Petroleum US Corporation | |||||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Oct. 01, 2031 | |||||||
Permex Petroleum US Corporation [Member] | Valuation Technique, Option Pricing Model [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
[custom:SharePurchaseWarrants] | $ 1,180,718 | |||||||
Oil and Gas Properties [Member] | TEXAS | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
[custom:NetRevenueInterestRate-0] | 71.90% | 71.90% | 71.90% | |||||
Oil and Gas Properties [Member] | NEW MEXICO | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
[custom:RoyaltyInterestRate-0] | 81.75% | 81.75% | 81.75% |
SCHEDULE OF DECOMMISSIONING OBL
SCHEDULE OF DECOMMISSIONING OBLIGATIONS (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |||
Decommissioning obligations, beginning of the year | $ 1,627,465 | $ 792,814 | $ 2,382,573 |
Obligations acquired | 784,418 | ||
Obligations derecognized | (140,704) | (116,192) | |
Change in estimates | 234,331 | ||
Change in discount rate | (81,236) | 295,152 | |
Accretion expense | 24,714 | 11,722 | 45,371 |
Reclassification to liabilities held for sale | (1,801,221) | ||
Foreign exchange movement | (7,008) | 26,120 | (12,869) |
Decommissioning obligation | $ 1,645,171 | $ 1,627,465 | $ 792,814 |
DECOMMISSIONING OBLIGATIONS (De
DECOMMISSIONING OBLIGATIONS (Details Narrative) | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Jun. 30, 2021 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Accrual for Environmental Loss Contingencies, Gross | $ 2,245,388 | $ 2,836,777 | $ 1,271,020 | |
Asset Retirement Obligation, Liabilities Settled | 140,704 | 116,192 | ||
Asset Retirement Obligation, Cash Paid to Settle | 127,510 | 105,777 | ||
Debt Securities, Available-for-Sale, Gain (Loss) | $ 13,194 | $ 10,415 | ||
Measurement Input, Price Volatility [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Debt Instrument, Measurement Input | 2 | 2 | 2 | 2 |
Measurement Input, Risk Free Interest Rate [Member] | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Debt Instrument, Measurement Input | 2.02 | 2.02 | 1.93 | 1.93 |
DEBT (Details Narrative)
DEBT (Details Narrative) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
May 31, 2020 USD ($) | May 31, 2020 CAD ($) | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2022 CAD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) $ / shares | Sep. 30, 2021 CAD ($) | Sep. 30, 2020 USD ($) | Jun. 30, 2022 CAD ($) $ / shares | Sep. 30, 2021 CAD ($) $ / shares | Feb. 21, 2020 USD ($) | Feb. 21, 2020 CAD ($) | |
Short-Term Debt [Line Items] | ||||||||||||||
Interest Expense, Debt | $ 6,285 | $ 11,116 | $ 9,480 | $ 13,991 | ||||||||||
Repayments of Debt | 79,000 | $ 100,000 | ||||||||||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 18,960 | 13,090 | 13,090 | |||||||||||
Convertible Debt, Current | $ 77,600 | 77,600 | 78,500 | 75,000 | $ 100,000 | $ 100,000 | ||||||||
Notes Payable | 4,241 | 4,241 | $ 15,176 | $ 14,104 | ||||||||||
Repayments of Short-Term Debt | 23,700 | $ 30,000 | ||||||||||||
[custom:ForgivenessOfLoanPayable] | $ 7,900 | $ 7,900 | $ 10,000 | |||||||||||
Loans Payable [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Debt Instrument, Maturity Date, Description | December 31, 2023 convert to two-year term | December 31, 2023 convert to two-year term | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5% | |||||||||||||
Proceeds from Loans | $ 32,000 | $ 40,000 | ||||||||||||
Loans Payable to Bank, Current | $ 60,000 | |||||||||||||
Debt Instrument, Description | The loan was unsecured and non-interest bearing with an original repayment deadline of December 31, 2022. In January 2022, the Canadian government extended the repayment deadline to December 31, 2023 in order for the loan to be considered for partial forgiveness of up to one-third of the balance. Any loans not repaid by | The loan was unsecured and non-interest bearing with an original repayment deadline of December 31, 2022. In January 2022, the Canadian government extended the repayment deadline to December 31, 2023 in order for the loan to be considered for partial forgiveness of up to one-third of the balance. Any loans not repaid by | ||||||||||||
Loans Payable [Member] | CEBA [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Proceeds from Loans | $ 30,000 | |||||||||||||
Convertible Debt [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Debt Instrument, Maturity Date, Description | maturity date of September 30, 2021 and February 20, 2022 | maturity date of September 30, 2021 and February 20, 2022 | maturity date of September 30, 2021 and February 20, 2022 | maturity date of September 30, 2021 and February 20, 2022 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12% | 12% | 12% | 12% | 12% | |||||||||
Debt Instrument, Convertible, Conversion Price | (per share) | $ 7.20 | $ 7.20 | $ 7.20 | $ 9 | $ 9 | |||||||||
Debt Instrument, Term | 3 years | 3 years | 3 years | 3 years | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | (per share) | $ 9.60 | $ 9.60 | $ 9.60 | $ 12 | $ 12 | |||||||||
Convertible Debt, Current | $ 77,600 | $ 77,600 | $ 78,500 | $ 100,000 | ||||||||||
Notes Payable | $ 4,241 | $ 4,241 | $ 15,176 | |||||||||||
CEO And Director [Member] | Convertible Debenture [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Convertible Debt | $ 150,000 | $ 200,000 | ||||||||||||
CEO And Director [Member] | Convertible Debt [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Convertible Debt | $ 157,000 | $ 200,000 |
SCHEDULE OF UNDISCOUNTED FUTURE
SCHEDULE OF UNDISCOUNTED FUTURE LEASE PAYMENTS (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
2022 | $ 13,785 | $ 55,402 |
2023 | 31,643 | 31,885 |
Total lease payments | $ 45,428 | $ 87,287 |
SCHEDULE OF COMPONENTS OF LEASE
SCHEDULE OF COMPONENTS OF LEASE EXPENSE (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Fixed lease expense | $ 41,661 | $ 30,194 | $ 43,932 | $ 20,962 |
Variable lease expense | 13,246 | 4,597 | 10,404 | 6,048 |
Total | $ 54,907 | $ 34,791 | $ 54,336 | $ 27,010 |
SCHEDULE OF LEASE LIABILITY (De
SCHEDULE OF LEASE LIABILITY (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Beginning balance | $ 78,949 | $ 53,128 | |
Addition | 57,357 | 66,432 | |
Interest expense | 5,714 | 9,812 | 7,233 |
Lease payments | (41,661) | (43,932) | (20,962) |
Foreign exchange movement | (196) | 2,584 | 425 |
Ending balance | 42,806 | 78,949 | 53,128 |
Current liability | 39,493 | 51,963 | 21,202 |
Long-term liability | $ 3,313 | $ 26,986 | $ 31,926 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) | Jun. 30, 2022 | Sep. 30, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 11 months 4 days | 1 year 7 months 6 days |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
May 01, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 CAD ($) | Sep. 30, 2020 USD ($) | Jun. 30, 2022 CAD ($) | Sep. 30, 2021 CAD ($) | Sep. 30, 2020 CAD ($) | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Repayments of Convertible Debt | $ 79,000 | ||||||||||
Convertible Debt, Current | $ 77,600 | 77,600 | $ 78,500 | $ 75,000 | $ 100,000 | $ 100,000 | |||||
Notes Payable | 4,241 | 4,241 | 15,176 | 14,104 | |||||||
Management Fee Expense | 67,216 | $ 37,362 | 176,989 | 112,478 | 149,806 | 144,288 | |||||
Salary and Wage, NonOfficer, Excluding Cost of Good and Service Sold | $ 7,500 | 7,500 | 24,816 | ||||||||
Director [Member] | Convertible Debentures [Member] | |||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Convertible Debt | 150,000 | $ 200,000 | |||||||||
Repayments of Convertible Debt | 79,000 | $ 100,000 | |||||||||
Interest Payable | 13,090 | ||||||||||
Chief Executive Officer [Member] | |||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Management Fee Expense | $ 176,989 | $ 112,478 | $ 149,806 | 144,288 | |||||||
Salary and Wage, NonOfficer, Excluding Cost of Good and Service Sold | $ 250,000 | ||||||||||
Related Party Transaction, Description of Transaction | The CEO is also eligible on an annual basis for a cash bonus of up to 100% of annual salary. The employment agreement may be terminated with a termination payment equal to three years of base salary and a bonus equal to 20% of the annual base salary. | ||||||||||
CEO And Director [Member] | Convertible Debentures [Member] | |||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Convertible Debt | $ 157,000 | $ 200,000 | |||||||||
Chief Financial Officer [Member] | |||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||
Salary and Wage, NonOfficer, Excluding Cost of Good and Service Sold | $ 50,000 | ||||||||||
Related Party Transaction, Description of Transaction | The CFO is also eligible on an annual basis for a cash bonus of up to 100% of annual salary. The employment agreement may be terminated with a termination payment equal to two months of base salary. |
SCHEDULE OF STOCK OPTION TRANSA
SCHEDULE OF STOCK OPTION TRANSACTIONS (Details) - $ / shares | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity [Abstract] | ||||
Number of options, beginning balance | 37,917 | 39,003 | 39,003 | 42,336 |
Weighted average exercise price,beginning balance | $ 19.51 | $ 18.75 | $ 18.75 | $ 21.58 |
Granted | 55,000 | 0 | 5,000 | |
Weighted average exercise price, granted | $ 11.38 | $ 2.23 | ||
Cancelled | (1,086) | (8,333) | ||
Weighted average exercise price, cancelled | $ 23.70 | $ 22.32 | ||
Number of options, ending balance | 92,917 | 37,917 | 39,003 | |
Weighted average exercise price, ending balance | $ 14.49 | $ 19.51 | $ 18.75 | |
Exercisable | 91,667 | 35,417 | ||
Exercisable | $ 15.10 | $ 20.72 | ||
Weighted average fair value of options granted | 11.40 | $ 1.69 | ||
Weighted average exercise price, exercisable | $ 15.10 | $ 20.72 |
SCHEDULE OF WEIGHTED AVERAGE AS
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE (Details) | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity [Abstract] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.50% | 0.78% | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 10 years | 10 years | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 131% | 120% | ||
Dividend rate |
SCHEDULE OF STOCK OPTIONS OUTST
SCHEDULE OF STOCK OPTIONS OUTSTANDING (Details) - $ / shares | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Offsetting Assets [Line Items] | ||||
Number of options | 92,917 | 37,917 | 39,003 | 42,336 |
Exercise Price | $ 14.49 | $ 19.51 | $ 18.75 | $ 21.58 |
Stock Option One [Member] | ||||
Offsetting Assets [Line Items] | ||||
Number of options | 27,917 | 27,917 | ||
Exercise Price | $ 23.55 | $ 23.55 | ||
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate] | Dec. 04, 2027 | Dec. 04, 2027 | ||
Stock Option Two [Member] | ||||
Offsetting Assets [Line Items] | ||||
Number of options | 5,000 | 5,000 | ||
Exercise Price | $ 14.13 | $ 14.13 | ||
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate] | Nov. 01, 2028 | Nov. 01, 2028 | ||
Stock Option Three [Member] | ||||
Offsetting Assets [Line Items] | ||||
Number of options | 5,000 | 5,000 | ||
Exercise Price | $ 2.36 | $ 2.36 | ||
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate] | Mar. 16, 2030 | Mar. 16, 2030 | ||
Stock Option Four [Member] | ||||
Offsetting Assets [Line Items] | ||||
Number of options | 55,000 | |||
Exercise Price | $ 11.17 | |||
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate] | Oct. 06, 2031 |
SCHEDULE OF WARRANTS TRANSACTIO
SCHEDULE OF WARRANTS TRANSACTIONS (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | ||
Number of warrants, beginning balance | 208,333 | 80,087 |
Weighted Average Exercise Price | $ 9.42 | $ 12.77 |
Granted | 888,763 | 208,333 |
Weighted average exercise price, granted | $ 12.81 | $ 9.48 |
Warrants expired | (80,087) | |
Weighted average exercise price, warrants expired | $ 13.46 | |
Number of warrants, ending balance | 1,097,097 | 208,333 |
Weighted Average Exercise Price | $ 11.96 | $ 9.42 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2022 CAD ($) shares | Jun. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2021 CAD ($) shares | Sep. 30, 2020 USD ($) $ / shares shares | Jun. 30, 2022 $ / shares | Sep. 30, 2021 $ / shares | |
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Common Stock, Shares Authorized, Unlimited [Fixed List] | Unlimited | Unlimited | Unlimited | |||||||
Common Stock, No Par Value | $ / shares | $ 0 | $ 0 | ||||||||
Common Stock, Shares, Outstanding | shares | 1,932,600 | 1,932,600 | 1,103,006 | 667,069 | ||||||
Stock Issued During Period, Value, Issued for Services | $ 34,850 | $ 54,958 | ||||||||
Stock Issued During Period, Value, Acquisitions | $ 2,468,750 | |||||||||
[custom:PercentageIssuedAndOutstandingForCommonStock-0] | 10% | 10% | 10% | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 10 years | 10 years | 10 years | 10 years | ||||||
Aggregate intrinsic value of options outstanding and exercisable | ||||||||||
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | shares | 92,917 | 37,917 | 92,917 | 37,917 | 37,917 | 39,003 | ||||
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | $ / shares | $ 2.36 | $ 2.36 | ||||||||
Share-Based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ / shares | $ 23.55 | $ 23.55 | ||||||||
Share-Based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 7 years 10 months 17 days | 7 years 10 months 17 days | 6 years 7 months 6 days | 6 years 7 months 6 days | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 11.40 | $ 1.69 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | shares | 55,000 | 55,000 | 0 | 0 | 5,000 | |||||
Share-Based Payment Arrangement, Expense | $ 185 | $ 486 | $ 604,861 | $ 2,401 | $ 2,870 | $ 4,175 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding, Number | shares | 1,097,097 | 208,333 | 1,097,097 | 208,333 | 208,333 | 80,087 | ||||
[custom:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue-0] | $ / shares | $ 11.96 | $ 11.96 | $ 9.42 | $ 12.77 | ||||||
Warrants and Rights Outstanding | $ 1,097,097 | $ 1,097,097 | ||||||||
Stock Issued During Period, Value, New Issues | (18,302) | $ (1,079,928) | $ 54,958 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.50% | 1.50% | 0.78% | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 10 years | 10 years | 10 years | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 131% | 131% | 120% | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | ||||||||||
Cash | 5,366,789 | $ 5,366,789 | $ 25,806 | $ 5,517 | ||||||
Think Equity LLC [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Other Expenses | 131,560 | 131,560 | ||||||||
Cash | $ 754,058 | $ 754,058 | $ 754,058 | |||||||
Class of Warrant or Right, Outstanding | shares | 78,548 | 78,548 | 78,548 | |||||||
Adjustment of Warrants Granted for Services | $ 858,429 | $ 858,429 | ||||||||
Non-brokered Private Placement [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Stock Issued During Period, Shares, New Issues | shares | 44,117 | 44,117 | 44,117 | 44,117 | ||||||
Sale of Stock, Price Per Share | (per share) | $ 13.20 | $ 13.20 | $ 13.20 | $ 16.20 | $ 16.20 | |||||
Proceeds from Issuance of Common Stock | $ 571,760 | $ 714,700 | $ 571,760 | $ 714,700 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | (per share) | $ 25.80 | $ 25.80 | $ 25.80 | $ 32.40 | $ 32.40 | |||||
Proceeds from Issuance of Warrants | $ 137,946 | $ 137,946 | ||||||||
Warrants and Rights Outstanding | $ 34,733 | $ 34,733 | $ 34,733 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.98% | 0.98% | 0.98% | 0.98% | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 2 years | 2 years | 2 years | 2 years | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 153.02% | 153.02% | 153.02% | 153.02% | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0% | 0% | 0% | 0% | ||||||
Other Expenses | $ 800 | $ 800 | ||||||||
Non-brokered Private Placement [Member] | Warrant [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Stock Issued During Period, Shares, New Issues | shares | 2,680 | 2,680 | 2,680 | 2,680 | ||||||
Stock Issued During Period, Value, New Issues | $ 24,543 | $ 24,543 | ||||||||
Brokered Private Placement [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Stock Issued During Period, Shares, New Issues | shares | 785,477 | 785,477 | 785,477 | 785,477 | ||||||
Sale of Stock, Price Per Share | $ / shares | $ 9.60 | $ 9.60 | $ 9.60 | |||||||
Proceeds from Issuance of Common Stock | $ 7,540,580 | $ 7,540,580 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 12.60 | $ 12.60 | $ 12.60 | |||||||
Proceeds from Issuance of Warrants | $ 607,170 | $ 607,170 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.45% | 2.45% | 2.45% | 2.45% | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 5 years | 5 years | 5 years | 5 years | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 134.66% | 134.66% | 134.66% | 134.66% | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0% | 0% | 0% | 0% | ||||||
Other Expenses | $ 140,475 | $ 140,475 | ||||||||
Warrants and Rights Outstanding, Term | 5 years | 5 years | 5 years | |||||||
Service Agreement [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Stock Issued During Period, Shares, Issued for Services | shares | 19,271 | 19,271 | ||||||||
Stock Issued During Period, Value, Issued for Services | $ 54,313 | |||||||||
Property Acquisition Agreement [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 416,666 | 416,666 | ||||||||
Stock Issued During Period, Value, Acquisitions | $ 2,468,750 |
SCHEDULE OF BASIC AND DILUTED L
SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||||
Net loss | $ (761,303) | $ (152,960) | $ (1,729,012) | $ (460,316) | $ (1,245,057) | $ (1,249,202) |
Weighted average common shares outstanding | 1,411,734 | 676,470 | 678,958 | 667,069 | ||
Basic and diluted loss per share | $ (0.16) | $ (0.23) | $ (1.23) | $ (0.68) | $ (1.83) | $ (1.87) |
LOSS PER SHARE (Details Narrati
LOSS PER SHARE (Details Narrative) | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) shares | Jun. 30, 2022 CAD ($) shares | Sep. 30, 2021 CAD ($) shares | Jun. 30, 2021 shares | Sep. 30, 2020 USD ($) shares | |
Earnings Per Share [Abstract] | ||||||
Convertible Debt, Current | $ 77,600 | $ 78,500 | $ 100,000 | $ 100,000 | $ 75,000 | |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 11,111 | 11,111 | ||||
Share-Based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 92,917 | 37,917 | 92,917 | 37,917 | 37,917 | 39,003 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 1,097,097 | 208,333 | 1,097,097 | 208,333 | 208,333 | 80,087 |
SCHEDULE OF RECONCILIATION OF I
SCHEDULE OF RECONCILIATION OF INCOME TAX (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||||
Loss before income taxes | $ (761,303) | $ (152,960) | $ (1,729,012) | $ (460,316) | $ (1,245,057) | $ (1,249,202) |
Expected income tax recovery at statutory rates | (336,000) | (337,000) | ||||
Change in statutory, foreign tax, foreign exchange rates and other | (26,000) | (6,000) | ||||
Permanent differences | 1,000 | 2,000 | ||||
Adjustment to prior years provision versus statutory tax returns | (11,000) | (13,000) | ||||
Unrecognized temporary differences | 372,000 | 354,000 | ||||
Deferred income tax recovery |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Income Tax Disclosure [Abstract] | ||
Non-capital losses available for future periods | $ 780,000 | $ 571,000 |
Property and equipment | (9,000) | (204,000) |
Financing fees | 38,000 | 70,000 |
Total gross deferred tax assets | 809,000 | 437,000 |
Unrecognized deferred income tax assets | (809,000) | (437,000) |
Net deferred income tax assets |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Deferred Tax Asset, Tax Deferred Expense, Reserve and Accrual, Financing Receivable, Allowance for Credit Loss | $ 140,000 | $ 254,000 |
[custom:IncomeTaxExpratiinDateFinancingFees] | expiration dates between 2041 and 2043 | |
[custom:DeferredTaxAssetsNonCapitalLossCarryforwards-0] | $ 780,000 | 571,000 |
CANADA | ||
[custom:DeferredTaxAssetsNonCapitalLossCarryforwards-0] | $ 2,703,000 | 1,241,000 |
[custom:IncomeTaxExpratiinDateNonCapitalLosses] | with expiration dates ranging from 2037 to 2041 and 2037 to 2040 | |
UNITED STATES | ||
[custom:DeferredTaxAssetsNonCapitalLossCarryforwards-0] | $ 213,000 | $ 106,000 |
EVENTS AFTER THE REPORTING PE_2
EVENTS AFTER THE REPORTING PERIOD (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2022 CAD ($) shares | Jun. 30, 2021 | Sep. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2021 CAD ($) shares | Sep. 30, 2020 USD ($) | Jun. 30, 2022 $ / shares | Sep. 30, 2021 $ / shares | |
Warrants and Rights Outstanding | $ 1,097,097 | $ 1,097,097 | |||||||
Stock Issued During Period, Value, New Issues | (18,302) | $ (1,079,928) | $ 54,958 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.50% | 1.50% | 0.78% | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 10 years | 10 years | 10 years | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 131% | 131% | 120% | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | |||||||||
Cash | 5,366,789 | $ 5,366,789 | $ 25,806 | $ 5,517 | |||||
Directors and consultants [Member] | |||||||||
Sale of Stock, Price Per Share | (per share) | $ 11.40 | $ 14.40 | |||||||
Stock Issued During Period, Shares, Issued for Services | shares | 55,000 | 55,000 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 10 years | 10 years | |||||||
Chief Executive Officer [Member] | |||||||||
Accrued Salaries, Current | $ 250,000 | ||||||||
[custom:CashBonusPercentage] | 100% | 100% | |||||||
[custom:SalaryAndBonusPercentage] | 20% | 20% | |||||||
Chief Financial Officer [Member] | |||||||||
Accrued Salaries, Current | $ 50,000 | ||||||||
[custom:CashBonusPercentage] | 100% | 100% | |||||||
Think Equity LLC [Member] | |||||||||
Other Expenses | 131,560 | $ 131,560 | |||||||
Cash | $ 754,058 | $ 754,058 | $ 754,058 | ||||||
Class of Warrant or Right, Outstanding | shares | 78,548 | 78,548 | 78,548 | ||||||
Adjustment of Warrants Granted for Services | $ 858,429 | $ 858,429 | |||||||
Non-brokered Private Placement [Member] | |||||||||
Stock Issued During Period, Shares, New Issues | shares | 44,117 | 44,117 | 44,117 | 44,117 | |||||
Sale of Stock, Price Per Share | (per share) | $ 13.20 | $ 13.20 | $ 13.20 | $ 16.20 | 16.20 | ||||
Proceeds from Issuance of Common Stock | $ 571,760 | $ 714,700 | $ 571,760 | $ 714,700 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | (per share) | $ 25.80 | $ 25.80 | $ 25.80 | $ 32.40 | $ 32.40 | ||||
Proceeds from Issuance of Warrants | $ 137,946 | $ 137,946 | |||||||
Warrants and Rights Outstanding | $ 34,733 | $ 34,733 | $ 34,733 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.98% | 0.98% | 0.98% | 0.98% | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 2 years | 2 years | 2 years | 2 years | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 153.02% | 153.02% | 153.02% | 153.02% | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0% | 0% | 0% | 0% | |||||
Other Expenses | $ 800 | $ 800 | |||||||
Non-brokered Private Placement [Member] | Warrant [Member] | |||||||||
Stock Issued During Period, Shares, New Issues | shares | 2,680 | 2,680 | 2,680 | 2,680 | |||||
Stock Issued During Period, Value, New Issues | $ 24,543 | $ 24,543 | |||||||
Brokered Private Placement [Member] | |||||||||
Stock Issued During Period, Shares, New Issues | shares | 785,477 | 785,477 | 785,477 | 785,477 | |||||
Sale of Stock, Price Per Share | $ / shares | $ 9.60 | $ 9.60 | $ 9.60 | ||||||
Proceeds from Issuance of Common Stock | $ 7,540,580 | $ 7,540,580 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 12.60 | $ 12.60 | $ 12.60 | ||||||
Proceeds from Issuance of Warrants | $ 607,170 | $ 607,170 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.45% | 2.45% | 2.45% | 2.45% | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term | 5 years | 5 years | 5 years | 5 years | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 134.66% | 134.66% | 134.66% | 134.66% | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0% | 0% | 0% | 0% | |||||
Other Expenses | $ 140,475 | $ 140,475 | |||||||
Warrants and Rights Outstanding, Term | 5 years | 5 years | 5 years |
SCHEDULE OF COST INCURRED IN PR
SCHEDULE OF COST INCURRED IN PRODUCING ACTIVITIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental Information On Oil And Gas Operations | ||||||
Acquisition of proved properties | $ 4,612,981 | |||||
Acquisition of unproved properties | ||||||
Development costs | 162,498 | 254,299 | ||||
Exploration costs | ||||||
Total costs incurred | 4,775,479 | 254,299 | ||||
Oil and gas revenues | 84,625 | 682,786 | ||||
Production costs | $ (135,467) | $ (11,179) | $ (332,346) | $ (21,392) | (59,671) | (557,624) |
Exploration expenses | ||||||
Depletion, depreciation and amortization | $ (161,988) | $ (21,955) | (52,439) | (28,660) | ||
Impairment of oil and gas properties | ||||||
Result of oil and gas producing operations before income taxes | (27,485) | 96,502 | ||||
Provision for income taxes | ||||||
Results of oil and gas producing activities | $ (27,485) | $ 96,502 |
SCHEDULE OF PROVED RESERVES (De
SCHEDULE OF PROVED RESERVES (Details) | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2021 bbl | Sep. 30, 2021 bbl Mcf | Sep. 30, 2021 Boe bbl | Sep. 30, 2020 bbl | Sep. 30, 2020 bbl Mcf | Sep. 30, 2020 Boe bbl | Sep. 30, 2021 Mcf | Sep. 30, 2021 Boe | Sep. 30, 2020 Mcf | Sep. 30, 2020 Boe | Sep. 30, 2019 bbl | Sep. 30, 2019 Mcf | Sep. 30, 2019 Boe | ||||||||
Supplemental Information On Oil And Gas Operations | ||||||||||||||||||||
Beginning balance | 3,706,360 | 740,180 | 3,992,240 | 498,180 | ||||||||||||||||
Beginning balance, BOE (Barrels) | 3,829,723 | 4,075,270 | ||||||||||||||||||
Revisions | (88,263) | [1] | 38,640 | [1] | 440,160 | [2] | 251,196 | [2] | ||||||||||||
Revisions, BOE (Barrels) | (81,823) | [1] | 482,026 | [2] | ||||||||||||||||
Discoveries and extensions | ||||||||||||||||||||
Discoveries and extensions, BOE (Barrels) | ||||||||||||||||||||
Sale reserves | (2,826,290) | [3] | (618,650) | [3] | (709,800) | [4] | [4] | |||||||||||||
Sale reserves, BOE (Barrels) | (2,929,398) | [3] | (709,800) | [4] | ||||||||||||||||
Production | (947) | (1,410) | (16,240) | (9,196) | ||||||||||||||||
Production, BOE (Barrels) | (1,182) | (17,773) | ||||||||||||||||||
Purchase of proved reserves | [5] | 5,408,560 | 2,859,590 | |||||||||||||||||
Purchase of proved reserves, BOE (Barrels) | [5] | 5,885,158 | ||||||||||||||||||
Ending balance | 6,199,420 | 3,018,350 | 3,706,360 | 740,180 | ||||||||||||||||
Ending balance, BOE (Barrels) | 6,702,478 | 3,829,723 | ||||||||||||||||||
Proved developed reserves | 587,450 | 587,450 | 587,450 | 549,390 | 549,390 | 549,390 | 411,910 | 82,430 | 921,410 | 104,000 | ||||||||||
Proved developed reserves, BOE (Barrels) | 656,102 | 563,128 | 938,743 | |||||||||||||||||
Proved undeveloped reserves | 5,611,970 | 5,611,970 | 5,611,970 | 3,156,970 | 3,156,970 | 3,156,970 | 2,606,440 | 657,750 | 3,070,830 | 394,180 | ||||||||||
Proved undeveloped reserves, BOE (Barrels) | 6,046,377 | 3,266,595 | 3,136,527 | |||||||||||||||||
[1]Revisions in 2021 included[2]Revisions in 2020 included[3]During 2021, the Company sold ODC and Taylor properties.[4]During 2020, the Company sold their McMurtry-Loving property.[5]During 2021, the Company purchased |
SCHEDULE OF PROVED RESERVES (_2
SCHEDULE OF PROVED RESERVES (Details) (Paranthetiacal) | 12 Months Ended | ||||||||||||
Sep. 30, 2021 a Boe bbl | Sep. 30, 2021 a Boe Mcf | Sep. 30, 2021 a Boe | Sep. 30, 2020 Boe bbl | Sep. 30, 2020 Boe Mcf | Sep. 30, 2020 Boe | Sep. 30, 2019 Boe | |||||||
Reserve Quantities [Line Items] | |||||||||||||
Proved Developed and Undeveloped Reserve, Net (Energy), Period Increase (Decrease) | (81,823) | [1] | 482,026 | [2] | |||||||||
Proved Developed and Undeveloped Reserves, Revisions of Previous Estimates | (88,263) | [1] | 38,640 | [1] | 440,160 | [2] | 251,196 | [2] | |||||
Proved Undeveloped Reserves (Energy) | 6,046,377 | 6,046,377 | 6,046,377 | 3,266,595 | 3,266,595 | 3,266,595 | 3,136,527 | ||||||
Area of Land | a | 6,046 | 6,046 | 6,046 | ||||||||||
Other Nonrenewable Natural Resources [Member] | |||||||||||||
Reserve Quantities [Line Items] | |||||||||||||
Proved Developed and Undeveloped Reserve, Net (Energy), Period Increase (Decrease) | 120,850 | ||||||||||||
Proved Undeveloped Reserves (Energy) | 120,850 | 120,850 | 120,850 | ||||||||||
Oil [Member] | |||||||||||||
Reserve Quantities [Line Items] | |||||||||||||
Proved Developed and Undeveloped Reserves, Revisions of Previous Estimates | bbl | 373,000 | ||||||||||||
Natural Gas [Member] | |||||||||||||
Reserve Quantities [Line Items] | |||||||||||||
Proved Developed and Undeveloped Reserves, Revisions of Previous Estimates | Mcf | 242,000 | ||||||||||||
[1]Revisions in 2021 included[2]Revisions in 2020 included |
SCHEDULE OF NET CASH FLOWS RELA
SCHEDULE OF NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Supplemental Information On Oil And Gas Operations | ||||
Future cash inflows | $ 355,958,000 | $ 150,694,000 | ||
Future production costs(1) | [1] | (69,683,000) | (50,268,000) | |
Future development costs | (71,700,000) | (26,263,000) | ||
Future income tax expenses | (57,206,000) | (19,689,000) | ||
Future net cash flows | 157,369,000 | 54,474,000 | ||
10% annual discount for estimated timing of cash flows | (84,100,000) | (33,677,000) | ||
Standardized measure of discounted future net cash flows at the end of the fiscal year | $ 73,269,000 | $ 20,797,000 | $ 40,833,000 | |
[1]Production costs include crude oil and natural gas operations expense, production ad valorem taxes, transportation costs and G&A expense supporting the Company’s crude oil and natural gas operations. |
SCHEDULE OF AVERAGE HYDROCARBON
SCHEDULE OF AVERAGE HYDROCARBON PRICES (Details) - $ / shares | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Oil [Member] | ||||
Reserve Quantities [Line Items] | ||||
Average Price | [1] | $ 55.98 | $ 40.30 | $ 53.60 |
Natural Gas [Member] | ||||
Reserve Quantities [Line Items] | ||||
Average Price | [1] | $ 2.95 | $ 1.77 | $ 2.51 |
[1]Average prices were based on 12-month unweighted arithmetic average of the first-day-of-the-month prices for the period from October through September during each respective fiscal year. |
SCHEDULE OF CHANGES IN DISCOUNT
SCHEDULE OF CHANGES IN DISCOUNTED FUTURE NET CASH FLOWS (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental Information On Oil And Gas Operations | ||
Standardized measure of discounted future net cash flows at the beginning of the year | $ 20,797,000 | $ 40,833,000 |
Extensions, discoveries and improved recovery, less related costs | ||
Sales of minerals in place | (62,682,000) | (7,509,000) |
Purchase of minerals in place | 125,927,000 | |
Revisions of previous quantity estimates | (1,751,000) | 5,099,000 |
Net changes in prices and production costs | 32,573,000 | (21,863,000) |
Accretion of discount | 1,498,000 | 3,416,000 |
Sales of oil produced, net of production costs | 13,000 | (125,000) |
Changes in future development costs | (21,339,000) | (919,000) |
Changes in timing of future production | (2,580,000) | (5,562,000) |
Net changes in income taxes | (19,187,000) | 7,427,000 |
Standardized measure of discounted future net cash flows at the end of the year | $ 73,269,000 | $ 20,797,000 |
SCHEDULE OF WARRANTS OUTSTANDIN
SCHEDULE OF WARRANTS OUTSTANDING (Details) | 9 Months Ended |
Jun. 30, 2022 USD ($) $ / shares | |
Class of Warrant or Right [Line Items] | |
Number of options | $ 1,097,097 |
Warrant One [Member] | |
Class of Warrant or Right [Line Items] | |
Number of options | $ 24,739 |
Exercise price | $ / shares | $ 25.14 |
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate] | Nov. 04, 2023 |
Warrant Two [Member] | |
Class of Warrant or Right [Line Items] | |
Number of options | $ 864,025 |
Exercise price | $ / shares | $ 12.22 |
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate] | Mar. 29, 2027 |
Warrant Three [Member] | |
Class of Warrant or Right [Line Items] | |
Number of options | $ 208,333 |
Exercise price | $ / shares | $ 9.42 |
[custom:SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate] | Oct. 01, 2031 |