Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 25, 2021 | Mar. 31, 2020 | |
Document Information Line Items | |||
Entity Registrant Name | DEEP WELL OIL & GAS INC | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Common Stock, Shares Outstanding | 229,374,605 | ||
Entity Public Float | $ 1,708,373 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000869495 | ||
Entity Current Reporting Status | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Sep. 30, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | false | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Interactive Data Current | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Current Assets | ||
Cash and cash equivalents | $ (12,073) | $ 49,715 |
Accounts receivable | 244,598 | 83,398 |
Prepaid expenses | 22,672 | 34,266 |
Total Current Assets | 255,197 | 167,379 |
Long-term investments | 399,151 | 396,782 |
Oil and gas properties, net, based on full cost method of accounting | 22,054,560 | 22,040,307 |
Property and equipment, net | 60,056 | 73,509 |
TOTAL ASSETS | 22,768,964 | 22,677,977 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 204,847 | 69,617 |
Accounts payable and accrued liabilities – related parties | 22,941 | 1,375 |
Total Current Liabilities | 227,788 | 70,992 |
Asset retirement obligations (Note 10) | 515,394 | 500,392 |
Loan payable (Note 3) | 22,491 | |
Total Non- Current Liabilities | 537,885 | 500,392 |
TOTAL LIABILITIES | 765,673 | 571,384 |
(Commitments and contingencies Note 15) | ||
SHAREHOLDERS’ EQUITY | ||
Common Stock: Authorized: 600,000,000 shares at $0.001 par value Issued and outstanding: 230,574,603 shares (September 30, 2019 – 230,574,603 shares) | 230,574 | 230,574 |
Additional paid in capital | 43,104,276 | 43,104,276 |
Accumulated deficit | (21,331,559) | (21,228,257) |
Total Shareholders’ Equity | 22,003,291 | 22,106,593 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 22,768,964 | $ 22,677,977 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2020 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued | 230,574,603 | 230,574,603 |
Common stock, shares outstanding | 230,574,603 | 230,574,603 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||
Revenue | ||
Royalty refunds (expenses) | ||
Revenue, net of royalty | ||
Expenses | ||
Operating expenses | 93,299 | 97,643 |
Operating expense covered by Farmout | (93,299) | (97,643) |
General and administrative | 124,688 | 165,405 |
Depreciation, accretion and depletion | 43,026 | 46,036 |
Net loss from operations | (167,714) | (211,441) |
Other income and expenses | ||
Rental and other income | 59,237 | 6,612 |
Interest income | 5,175 | 7,694 |
Net loss | $ (103,302) | $ (197,135) |
Net loss per common share | ||
Basic and Diluted (in Dollars per share) | $ (0.0004) | $ (0.0009) |
Weighted Average Outstanding Shares (in thousands) | ||
Basic and Diluted (in Shares) | 230,574 | 230,574 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity - USD ($) | Common Shares | Additional Paid in Capital | Subscription Receivable | Accumulated Deficit | Total |
Balance at Sep. 30, 2018 | $ 230,574 | $ 43,104,276 | $ (15,000) | $ (21,031,122) | $ 22,288,728 |
Balance (in Shares) at Sep. 30, 2018 | 230,574,603 | ||||
Subscription receivable collected | 15,000 | 15,000 | |||
Net loss | (197,135) | (197,135) | |||
Balance at Sep. 30, 2019 | $ 230,574 | 43,104,276 | (21,228,257) | 22,106,593 | |
Balance (in Shares) at Sep. 30, 2019 | 230,574,603 | ||||
Net loss | (103,302) | (103,302) | |||
Balance at Sep. 30, 2020 | $ 230,574 | $ 43,104,276 | $ (21,331,559) | $ 22,003,291 | |
Balance (in Shares) at Sep. 30, 2020 | 230,574,603 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Activities | ||
Net loss | $ (103,302) | $ (197,135) |
Items not affecting cash: | ||
Depreciation, accretion and depletion | 43,026 | 46,036 |
Net changes in non-cash working capital (Note 13) | 7,190 | (26,159) |
Net Cash Used in Operating Activities | (53,086) | (177,258) |
Investing Activities | ||
Purchase of equipment | (882) | |
Investment in oil and gas properties | (36,400) | (93,078) |
Long-term investments | 5,207 | 7,692 |
Net Cash Used in Investing Activities | (31,193) | (86,268) |
Financing Activities | ||
Subscription receivable collected | 15,000 | |
Loan payable | 22,491 | |
Net Cash Provided by Financing Activities | 22,491 | 15,000 |
Decrease in cash and cash equivalents | (61,788) | (248,526) |
Cash and cash equivalents, beginning of year | 49,715 | 298,241 |
Cash and cash equivalents, end of year | (12,073) | 49,715 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | ||
Cash paid for income taxes |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
NATURE OF BUSINESS AND BASIS OF PRESENTATION | 1. NATURE OF BUSINESS AND BASIS OF PRESENTATION Nature of Business Deep Well Oil & Gas, Inc. was originally incorporated on July 18, 1988 under the laws of the state of Nevada as Worldwide Stock Transfer, Inc. (Worldwide Stock Transfer, Inc. later changed its name to Allied Devices Corporation) and in connection with a plan of reorganization, effective on September 10, 2003, the company was reorganized and changed its name to Deep Well Oil & Gas, Inc. (“Deep Well”). Deep Well together with its subsidiaries, Northern Alberta Oil Ltd. and Deep Well Oil & Gas (Alberta) Ltd, (collectively referred to as the “Company”) is an independent junior oil sands exploration and development company with an existing oil sands land base in the Peace River oil sands area in Alberta, Canada. These consolidated financial statements have been prepared showing the name “Deep Well Oil & Gas, Inc. (and Subsidiaries)” (“the Company”) and the post-split common stock, with $0.001 par value. Going Concern The Company’s consolidated financial statements are prepared using generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As of September 30, 2020, the Company has a working capital deficit, and continues to have an accumulated deficit and has generated negative cash flows from operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. In order to continue as a going concern and achieve a profitable level of operations, the Company will need, among other things, additional capital resources and to develop a consistent source of dependent upon the ability to raise equity or debt financing, and the attainment of profitable operations from the Company’s operations. The management of the Company is developing a strategy, which it hopes will accomplish this objective through short-term related party loans and additional equity funding, which will enable the Company to operate for the coming year. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Basis of Presentation The consolidated financial statements for the year ended September 30, 2020 included herein have been prepared by the Company, without audit. These consolidated financial statements are expressed in U.S. dollars and are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These statements reflect all adjustments, consisting solely of normal recurring adjustments (unless otherwise disclosed) which, in the opinion of management, are necessary for a fair presentation of the information contained herein. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation These consolidated financial statements include the accounts of two wholly owned subsidiaries: (1) Northern Alberta Oil Ltd. (“Northern”) from the date of acquisition, being June 7, 2005, incorporated under the Business Corporations Act (Alberta), Canada; and (2) Deep Well Oil & Gas (Alberta) Ltd., incorporated under the Business Corporations Act (Alberta), Canada on September 15, 2005. All inter-company balances and transactions have been eliminated. Cash and Cash Equivalents The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. Allowance for Doubtful Accounts The Company determines allowances for doubtful accounts based on aging of specific accounts. Accounts receivable are stated at the historical carrying amounts net of allowances for doubtful accounts and include only the amounts the Company deems to be collectable. The allowance for bad debts was $nil and $nil at September 30, 2020 and September 30, 2019, respectively. Crude oil and natural gas properties The Company follows the full cost method of accounting for oil sands properties pursuant to SEC Regulation S-X Rule 4-10. The full cost method of accounting for oil and gas operations requires that all costs associated with the exploration for and development of oil and gas reserves be capitalized on a country by country basis. Such costs include lease acquisition costs, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells, production equipment and overhead charges directly related to acquisition, exploration and development activities. Under the full cost method, oil and gas properties are subject to the ceiling test performed quarterly. A ceiling test write-down is recognized in net earnings if the carrying amount of a cost centre exceeds the “cost centre ceiling”. The carrying amount of the cost centre includes the capitalized costs of proved oil and natural gas properties, net of accumulated depletion and deferred income taxes. The cost centre ceiling is the sum of (A) present value of the estimated future net cash flows from proved oil and natural gas reserves using a 10 percent per year discount factor, (B) the costs of unproved properties not being amortized, and (C) the lower of cost or fair value of unproved properties included in the costs being amortized; less (D) related income tax effects. During the 2020 fiscal year, no ceiling test write-downs were recorded for the Company’s oil and gas properties. Costs associated with unproved properties are excluded from the depletion calculation until it is determined that proved reserves are attributable or impairment has occurred. The Company’s unproved properties are assessed annually for impairment. Costs that have been impaired are included in the costs subject to depletion within the full cost pool. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the declining balance method over the estimated useful life of the asset. Only half of the depreciation rate is taken in the year of acquisition. The following is a summary of the depreciation rates used in computing depreciation expense: % Software 100 Computer equipment 55 Portable work camp 30 Vehicles 30 Road Mats 30 Wellhead 25 Office furniture and equipment 20 Oilfield Equipment 20 Tanks 10 Expenditures for major repairs and renewals that extend the useful life of the asset are capitalized. Minor repair expenditures are charged to expense as incurred. Leasehold improvements are amortized over the greater of five years or the remaining life of the lease agreement. Depreciation, Depletion and Amortization - Costs of acquiring and evaluating unproved properties and major development projects are initially excluded from the depletion and depreciation calculation until it is determined whether or not proved reserves can be assigned to such properties. Costs of unproved properties and major development projects are transferred to depletable costs based on the percentage of reserves assigned to each project over the expected total reserves when the project was initiated. These costs are assessed periodically to ascertain whether impairment has occurred. Since there was no production in the last two fiscal years no depletion has been booked in either year. Asset Retirement Obligations The Company accounts for asset retirement obligations by recording the fair value of the estimated future cost of the Company’s plugging and abandonment obligations. The asset retirement obligation is recorded when there is a legal obligation associated with the retirement of a tangible long-lived asset and the fair value of the liability can reasonably be estimated. Upon initial recognition of an asset retirement obligation, the Company increases the carrying amount of the long-lived asset by the same amount as the liability. Over time, the liabilities are accreted for the change in their present value through charges to oil and gas production and well operations costs. The initial capitalized costs are depleted over the useful lives of the related assets through charges to depreciation, depletion, and amortization. If the fair value of the estimated asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the asset retirement cost. Revisions in estimated liabilities can result from revisions of estimated inflation rates, escalating retirement costs, and changes in the estimated timing of settling asset retirement obligations. As of September 30, 2020, and 2019, asset retirement obligations amount to $515,394 and $500,392, respectively. The Company has posted bonds, where required, with the Government of Alberta based on the amount the government estimates the cost of abandonment and reclamation to be. Foreign Currency Translation The functional currency of the Company is the US dollar, but the functional currency of the Company’s Canadian subsidiaries is the Canadian dollar. Consequently, monetary assets and liabilities are remeasured into United States dollars at the exchange rate on the balance sheet date and non-monetary items are remeasured at the rate of exchange in effect when the assets are acquired, or obligations incurred. Revenues and expenses are remeasured at the average exchange rate prevailing during the period. Foreign currency transaction gains and losses have not been material and therefore are included in results of operations and not separately reported as a component of comprehensive income. Accounting Method The Company recognizes income and expenses based on the accrual method of accounting. Dividend Policy The Company has not yet adopted a policy regarding payment of dividends. Financial, Concentration and Credit Risk The Company’s consideration or related financial credit risk related to cash and cash equivalents depends on if funds are fully insured by either The Canada Deposit Insurance Corporation (“CDIC”), or The Credit Union Deposit Guarantee Corporation (“CUDGC”) deposit insurance limit. As of the 2020 fiscal year end, the Company has approximately $1,922 funds that are in excess of deposit insurance limits, which may have financial credit risk. For the Company funds that are maintained in a financial institution which has its deposits fully guaranteed by CUDGC, there is no financial credit risk. The Company is not directly subject to credit risk resulting from the concentration of its crude oil sales. For the year ended September 30, 2020 and September 30, 2019, the Company recorded no oil sales. Income Taxes The Company utilizes the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax bases of the assets and liabilities, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized. Due to the uncertainty regarding the Company’s profitability, a valuation allowance has been recorded against the future tax benefits of its losses and no net benefit has been recorded in the consolidated financial statements. Revenue Recognition The Company is in the business of exploring for, developing, producing, and selling crude oil. Crude oil revenue is recognized when the product is taken from the storage tanks on the lease and delivered to the purchaser and title transfers to the purchaser. Payment is generally received one to three months after the sale has occurred. Occasionally the Company may sell specific leases, and the gain or loss associated with these transactions will be shown separately from the profit or loss from the operations or sales of oil products. Such gain or losses will be measured and recognized when all of the following have occurred: (1) there is persuasive evidence of an arrangement to sell; (2) the price of the sale is fixed or determinable; (3) the title to the lease has transferred; and (4) collection is reasonably assured. Advertising and Market Development The Company expenses advertising and market development costs as incurred. Basic and Diluted Net Loss Per Share Basic net loss per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net loss per share amounts are computed using the weighted average number of common shares and common equivalent shares outstanding as if shares had been issued on the exercise of the common share rights, unless the exercise becomes antidilutive and then the basic and diluted per share amounts are the same. There was no potentially dilutive securities excluded from the the diluted earnings per share calculation because their effect would be antidilutive. Financial Instruments Financial instruments include cash and cash equivalents, accounts receivable, long-term investments, investment in equity securities, accounts payable and accounts payable - related parties. The fair value of these financial instruments approximates their carrying value because of the short-term maturity of these items unless otherwise noted. The fair value of the investment in equity securities cannot be determined as the market value is not readily obtainable. The equity securities are reported using the cost method. Environmental Requirements The Company is subject to federal, provincial and local environmental laws and regulations. These laws generally provide for control of pollutants released into the environment and protection of the environment. Under these laws and regulations, the Company could be liable for clean-up costs, other environmental damages and fines or penalties related to the Company’s oilsands operations. When the responsibility to remediate is probable and the amount of associated costs can be reasonably estimated environmental remediation liabilities are recorded. At the report date, environmental requirements related to the oil properties acquired are unknown and therefore an estimate of any future cost cannot be made. Share-Based Compensation The Company accounts for stock options granted to directors, officers, employees and non-employees using the fair value method of accounting. The fair value of stock options for directors, officers, employees and their corporate entities are calculated at the date of grant and are expensed over the vesting period of the options on a straight-line basis. For non-employees, the fair value of the options is measured on the earlier of the date at which the counterparty performance is complete or the date at which the performance commitment is reached. The Company uses the Black-Scholes model to calculate the fair value of stock options issued, which requires certain assumptions to be made at the time the options are awarded, including the expected life of the option, the expected number of granted options that will vest and the expected future volatility of the stock. The Company reflects estimates of award forfeitures at the time of grant and revises in subsequent periods, if necessary, when forfeiture rates are expected to change. Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” requiring lessees to recognize lease assets and lease liabilities for most leases classified as operating leases under previous U.S. GAAP. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company will be required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. This ASU does not apply to the Company’s oil sand leases. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements because the Company has no leases that the new accounting standard applies to. Estimates and Assumptions Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used in preparing these consolidated financial statements. Significant estimates by management include valuations of oil properties, valuation of accounts receivable, useful lives of long-lived assets, asset retirement obligations, valuation of share-based compensation, and the realizability of future income taxes. Covid-19 Impact On March 11, 2020, the World Health Organization assessed and characterized the novel coronavirus disease (“COVID-19”) as a pandemic. In an effort to contain and mitigate the spread of COVID-19, several measures have been implemented in Canada and the rest of the world in response to the impact from COVID-19. The Company continues to operate its business at this time and continues to monitor the COVID-19 developments but since the duration and impact of the COVID-19 pandemic is unknown at this time, it is not possible to reliably estimate the length of the outbreak, or the severity of its impact will have on the Company. The ongoing spread of COVID-19 and mitigation measures to prevent its spread, along with a decline in oil prices, could have a material adverse effect on the Company’s business, financial condition, results of operations and its future ability to raise funds. The Company, if eligible, has or will apply for any financial relief available to the Company. |
Loan Payable
Loan Payable | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
LOAN PAYABLE | 3. LOAN PAYABLE On April 20, 2020, one of the Company’s Canadian subsidiaries received a loan from that subsidiary’s Canadian chartered bank in the amount of $29,988 ($40,000 Cdn) as part of the Canadian government’s COVID-19 relief program. Under this loan program, eligible businesses receive a $40,000 Cdn interest-free loan until December 31, 2022. If $30,000 Cdn is repaid on or before December 31, 2022, the remaining amount of the loan is eligible for complete forgiveness. If the loan is not repaid by December 31, 2022, it will be extended for an additional 3-year term bearing an interest rate of 5% per annum. It is the Company’s intention to repay $30,000 Cdn of the loan on or before December 31, 2022. As such, the forgivable portion of the loan $ 7,437 |
Oil and Gas Properties
Oil and Gas Properties | 12 Months Ended |
Sep. 30, 2020 | |
Oil and Gas Property [Abstract] | |
OIL AND GAS PROPERTIES | 4. OIL AND GAS PROPERTIES The Company’s oil sands acreage as of September 30, 2020, covers 17,712 gross acres (11,734 net acres) of land under six oil sands leases. The lease expiration dates of the Company’s oil sands leases are as follows: 1. The Company has five oil sands leases that cover 14,549 gross acres (8,571 net acres) and have no set expiry date. These continued leases are now held by the Company for perpetuity, subject to yearly escalating rental payments until they are deemed to be producing leases; 2. 3,163 gross acres (3,163 net acres) under one oil sands lease are set to expire on April 9, 2024. The Company will be applying to continue this lease into perpetuity. Lease Rental Commitments The Company has acquired interests in certain oil sands properties located in North Central Alberta, Canada. The lease terms include certain commitments related to oil sands properties that require the payments of yearly rents. As required by the amended Oil Sands Tenure Regulation of the Mines and Minerals Act of Alberta continued oil sands leases past their expiry dates are subject to escalating rental payments in respect of each term year of a continued lease that is designated as non-producing. Annual and escalating rent of continued leases are due at the beginning of each term year. As of September 30, 2020, the following table sets out the estimated net payments due under lease rental commitments for non-producing continued leases, which could be as high as, until the leases are classified as producing continued leases: (USD $) (Cdn $) 2021 $ 17,144 $ 22,868 2022 $ 28,059 $ 37,426 2023 $ 28,059 $ 37,426 2024 $ 30,938 $ 41,266 2025 $ 46,537 $ 62,074 Subsequent $ 257,185 $ 343,048 The Company follows the full cost method of accounting for costs of oil properties. Under this method, oil and gas properties, for which no proved reserves have been assigned, must be assessed at least annually to ascertain whether or not a write down should occur. Unproven properties are assessed annually for potential write down. Estimates of expected future cash flows represent management’s best estimate based on reasonable and supportable assumptions. No write downs were recognized for the year ended September 30, 2020. Capitalized costs of proven oil properties will be depleted using the unit-of-production method when the property is placed in production. Many of the Company’s oil activities are conducted jointly with others. The accounts reflect only the Company’s proportionate interest in such activities. Farmout Agreement On July 31, 2013, the Company entered into a Farmout agreement (the “Farmout Agreement”) with an additional joint venture partner (the “Farmee”) to fund the Company’s share of the Alberta Energy Regulator (“AER”) approved joint Steam Assisted Gravity Drainage Demonstration project (“SAGD Project”) at the Company’s Sawn Lake heavy oil reservoir in North Central Alberta, Canada. In accordance with the Farmout Agreement the Farmee has agreed to provide up to $40,000,000 in funding for the Farmee’s share and the Company’s share of the capital costs and operating expenses for the SAGD Project, in return for a net 25% working interest in 12 sections (now 11 sections) where the Company had a working interest of 50% (before the execution of the Farmout Agreement). The Farmee will also provide funding to cover monthly operating expenses of the Company, of which the first such monthly payment began in respect of the month of August 2013 and shall not to exceed $30,000 per month. See “Subsequent Events” in the notes to the Condensed Consolidated Financial Statements for the year ended September 30, 2020, as disclosed herein. |
Capitalization of Costs Incurre
Capitalization of Costs Incurred in Oil and Gas Activities | 12 Months Ended |
Sep. 30, 2020 | |
Capitalized Costs Relating To Oil And Gas Producing Activities [Abstract] | |
CAPITALIZATION OF COSTS INCURRED IN OIL AND GAS ACTIVITIES | 5. CAPITALIZATION OF COSTS INCURRED IN OIL AND GAS ACTIVITIES The following table illustrates capitalized costs relating to oil producing activities for the year ended September 30, 2020 and September 30, 2019: September 30, September 30, Unproved Oil and Gas Properties $ 22,172,761 $ 22,147,367 Accumulated Depreciation and Depletion (118,201 ) (107,060 ) Net Capitalized Cost $ 22,054,560 $ 22,040,307 Depreciation and depletion expenses for the years ended September 30, 2020 and 2019 were $11,141 and $11,141 respectively. |
Exploration Activities
Exploration Activities | 12 Months Ended |
Sep. 30, 2020 | |
Exploration Activities [Abstract] | |
EXPLORATION ACTIVITIES | 6. EXPLORATION ACTIVITIES The following table presents information regarding the Company’s costs incurred in the oil property acquisition, exploration and development activities for the years ended September 30, 2020 and September 30, 2019: September 30, September 30, Acquisition of Properties: Proved $ – $ – Unproved $ – $ – Exploration costs $ 25,394 $ 75,580 Development costs $ – $ – |
Investment in Equity Securities
Investment in Equity Securities | 12 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN EQUITY SECURITIES | 7. INVESTMENT IN EQUITY SECURITIES On February 25, 2005, the Company acquired an interest in Signet Energy Inc. (“Signet” formerly Surge Global Energy, Inc.) as a result of a Farmout Agreement dated February 25, 2005. Signet amalgamated with Andora Energy Corporation (“Andora”) in 2007. As of November 19, 2008, the Company converted its Signet shares into 2,241,558 shares of Andora, which presently represents an equity interest in Andora of approximately 2.24% as of September 30, 2020 which is Andora’s first quarter end. These shares are carried at a nominal value using the cost method and their value is included under oil and gas properties on the Company’s balance sheet. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 8. PROPERTY AND EQUIPMENT September 30, 2020 Accumulated Net Book Cost Depreciation Value Computer equipment $ 36,569 $ 36,113 $ 456 Office furniture and equipment 34,130 32,286 1,844 Software 5,826 5,826 – Leasehold improvements 4,936 4,936 – Portable work camp 170,580 167,779 2,801 Vehicles 38,077 38,077 – Oilfield equipment 249,046 228,863 20,182 Road mats 364,614 358,486 6,128 Wellhead 3,254 3,254 – Tanks 96,085 67,440 28,645 $ 1,003,117 $ 943,060 $ 60,056 September 30, 2019 Accumulated Net Book Cost Depreciation Value Computer equipment $ 36,569 $ 35,177 $ 1,392 Office furniture and equipment 34,130 31,826 2,304 Software 5,826 5,826 – Leasehold improvements 4,936 4,936 – Portable work camp 170,580 166,578 4,002 Vehicles 38,077 38,077 – Oilfield equipment 249,046 223,818 25,228 Road mats 364,614 355,859 8,755 Wellhead 3,254 3,254 – Tanks 96,085 64,257 31,828 $ 1,003,117 $ 929,608 $ 73,509 There was $13,453 of depreciation expense for the year ended September 30, 2020 (September 30, 2019 - $16,889). |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Sep. 30, 2020 | |
Long-term Investments [Abstract] | |
LONG-TERM INVESTMENTS | 9. LONG-TERM INVESTMENTS Our Long-term investments consist of cash held in trust on behalf of our potential obligations with the AER. These cash investments earn an interest rate of prime minus 0.375% and mature once our obligations to the AER are satisfied. These investments are required by the AER to ensure that there are sufficient future cash reserves to meet the expected future asset retirement obligations for abandonment and reclamation of the Company’s wells and wellsites and are restricted for this purpose. |
Significant Transactions with R
Significant Transactions with Related Parties | 12 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES | 10. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES Accounts payable – related parties were $22,941 as of September 30, 2020 (September 30, 2019 - $1,375) for expenses to be reimbursed to directors. This amount is unsecured, non-interest bearing, and has no fixed terms of repayment. As of September 30, 2020, officers, directors, their families, and their controlled entities have acquired 53.08% of the Company’s outstanding common capital stock. This percentage does not include unexercised stock options. The Company incurred expenses $133,866 to one related party, Concorde Consulting, an entity controlled by a director, for professional fees and consulting services provided to the Company during the year ended September 30, 2020 (September 30, 2019 - $135,666). |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Sep. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | 11. ASSET RETIREMENT OBLIGATIONS The total future asset retirement obligation is estimated by management based on the Company’s net working interests in all wells and facilities, estimated costs as determined by the AER to reclaim and abandon wells and facilities and the estimated timing of the costs to be incurred in future periods. At September 30, 2020, the Company estimates the undiscounted cash flows related to asset retirement obligation to total approximately $605,926 (September 30, 2019 - $610,291). The fair value of the liability at September 30, 2020 is estimated to be $515,394 (September 30, 2019 - $500,392) using a risk free rate of 3.74% and an inflation rate of 2%. The actual costs to settle the obligation are expected to occur in approximately 23 years. Changes to the asset retirement obligation were as follows: September 30, September 30, Balance, beginning of period $ 500,392 $ 493,467 Liabilities incurred – – Effect of foreign exchange (3,430 ) (11,081 ) Disposal – – Accretion expense 18,432 18,006 Balance, end of period $ 515,394 $ 500,392 |
Common Stock
Common Stock | 12 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | 12. COMMON STOCK Common Stock Issued and Outstanding As of September 30, 2020, the Company had outstanding 230,574,603 shares of common stock. See “Subsequent Events” in the notes to the Consolidated Financial Statements for the year ended September 30, 2020, as disclosed herein. Warrants There were no warrants outstanding as of September 30, 2020 (September 30, 2019 – Nil). |
Stock Options
Stock Options | 12 Months Ended |
Sep. 30, 2020 | |
Stock Option Activity [Abstract] | |
STOCK OPTIONS | 13. STOCK OPTIONS On November 28, 2005, and as amended on December 4, 2013, the Board of Deep Well adopted the Deep Well Oil & Gas, Inc. Stock Option Plan (the “Plan’). The Plan was approved by the majority of shareholders at the February 24, 2010 general meeting of shareholders. The Plan, is administered by the Board, permits options to acquire shares of the Company’s common stock (the “Common Shares”) to be granted to directors, senior officers and employees of the Company and its subsidiaries, as well as certain consultants and other persons providing services to the Company or its subsidiaries. The maximum number of shares, which may be reserved for issuance under the Plan, may not exceed 10% of the Company’s issued and outstanding Common Shares, subject to adjustment as contemplated by the Plan. The aggregate number of Common Shares with respect to which options may be vested to any one person (together with their associates) under the plan, together with all other incentive plans of the Company in any one year shall not exceed 2% of the total number of Common Shares outstanding, and in total may not exceed 6% of the total number of Common Shares outstanding. For the year ended September 30, 2020, the Company recorded no share-based compensation expense related to stock options (September 30, 2019 – $Nil). As of September 30, 2020, there was no unrecognized compensation cost related to option awards. Compensation expense is based upon straight-line depreciation of the grant-date fair value over the vesting period of the underlying unit option. Shares Underlying Shares Underlying Range of Exercise Prices Shares Underlying Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Shares Underlying Options Exercisable Weighted Average Exercise Price As of September 30, 2020 – – $ – – $ – The aggregate intrinsic value of exercisable options as of September 30, 2020, was $Nil (September 30, 2019 - $Nil). The following is a summary of stock option activity as at September 30, 2020: Number of Underlying Shares Weighted Average Exercise Price Weighted Average Fair Market Value Balance, September 30, 2019 600,000 $ 0.23 $ 0.18 Expired, November 17, 2019 (600,000 ) 0.23 0.18 Balance, September 30, 2020 – $ – $ – Exercisable, September 30, 2020 – $ – $ – A summary of stock options at September 30, 2020 and 2019 and changes during the periods then ended is presented below: September 30, 2020 September 30, 2019 Shares Weighted Shares Weighted Outstanding balance at beginning of period 600,000 $ 0.23 8,080,000 $ 0.36 Expired, October 28, 2018 (250,000 ) 0.30 Expired, December 4, 2018 (450,000 ) 0.34 Expired, September 19, 2019 (6,780,000 ) 0.38 Expired, November 17, 2019 (600,000 ) 0.23 Outstanding at end of period – $ – 600,000 $ 0.23 Exercisable – $ – 600,000 $ 0.23 There were no remaining unvested stock options outstanding as of September 30, 2020 (September 30, 2019 – Nil). See “Subsequent Events” in the notes to the Condensed Consolidated Financial Statements for the year ended September 30, 2020, as disclosed herein. Measurement Uncertainty for Stock Options The Company used the Black-Scholes pricing model (“Black-Scholes”) to value the stock options. This pricing model was developed for use in estimating the fair value of traded “European” options. The stock options that are granted to employees, directors and consultants are non-transferable and some vest over time and are “American” options. This pricing model requires the input of subjective assumptions including expected share price volatility. The fair value estimate can vary materially as a result of changes in the assumptions, and therefore can materially affect the calculated fair value of the stock options. The following assumptions were used in the Black-Scholes pricing model to value the stock options: Expected Term – Expected term of 5 years represents the period that the Company’s stock-based awards are expected to be outstanding. Expected Volatility – Expected volatilities are based on historical volatility of the Company’s stock, adjusted where determined by management for unusual and non-representative stock price activity not expected to recur. The expected volatility used ranged from 102% to 122%. Expected Dividend – The Black-Scholes valuation model calls for a single expected dividend yield as an input. The Company currently pays no dividends and does not expect to pay dividends in the foreseeable future. Risk-Free Interest rate – The Company bases the risk-free interest rate on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term. The risk-free rate used ranged from 1.31% to 2.07%. |
Changes in Non-Cash Working Cap
Changes in Non-Cash Working Capital | 12 Months Ended |
Sep. 30, 2020 | |
Changes in Non-Cash Working Capital [Abstract] | |
CHANGES IN NON-CASH WORKING CAPITAL | 14. CHANGES IN NON-CASH WORKING CAPITAL September 30, September 30, 2020 2019 Accounts receivable $ (161,200 ) $ (42,478 ) Prepaid expenses 11,594 (9,536 ) Accounts payable 156,796 25,855 $ 7,190 $ (26,159 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 15. INCOME TAXES As of September 30, 2020, the Company has approximately $ 6,557,601 (2019 – $2,190,855) of operating losses expiring through 2040 that may be used to offset future taxable income but are subject to various limitations imposed by rules and regulations of the Internal Revenue Service. The net operating losses are limited each year to offset future taxable income, if any, due to the change of ownership in the Company’s outstanding shares of common stock. In addition, at September 30, 2020, the Company had an unused Canadian net operating loss carry-forward of approximately $7,735,325 (2019 – $7,865,973), expiring through 2040. These operating loss carry-forwards may result in future income tax benefits of approximately $3,291,854. However, because realization is uncertain at this time, a valuation reserve in the same amount has been established. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the net deferred tax asset, the statutory tax rate, the effective rate and the elected amount of the valuation allowance are as follows: Year Ended Year Ended Statutory and effective tax rate Domestic Statutory U.S. federal rate 21 % 21 % Foreign 24.75 % 26.75 % Year Ended Year Ended Income taxes recovered at the statutory and effective tax rate Domestic Statutory U.S. federal rate $ 18,314 $ 24,637 Foreign 3,983 21,347 Timing differences: Non-deductible expenses (10,490 ) (12,534 ) Other deductible charges Benefit of tax losses not recognized in the year (11,808 ) (33,450 ) Income tax recovery (expense) recognized in the year $ – $ – The approximate tax effects of each type of temporary difference that gives rise to deferred tax assets are as follows: Year Ended Year Ended Deferred income tax assets (liabilities) Net operating loss carry-forwards $ 3,291,854 $ 2,563,850 Oil and gas properties (1,934,917 ) (2,043,926 ) Equipment 188,996 204,147 Valuation allowance (1,545,934 ) (724,071 ) Net deferred income tax assets $ – $ – In accordance with generally accepted accounting principles, the Company has its filing positions in all jurisdictions where it is required to file income tax returns for the open tax years in such jurisdictions. The Company has identified its federal income tax returns for the previous five years remain subject to examination. The Company’s income tax returns in state income tax jurisdictions also remain subject to examination for the previous five years. The Company currently believes that all significant filing positions are highly certain and that all of its significant income tax filing positions and deductions would be sustained upon audit. Therefore, the Company has no significant reserves for uncertain tax positions, and no adjustments to such reserves were required by generally accepted accounting principles. No interest or penalties have been levied against the Company and none are anticipated, therefore no interest or penalty has been included in the provision for income taxes in the consolidated statements of operations. |
Commitments
Commitments | 12 Months Ended |
Sep. 30, 2020 | |
Commitments [Abstract] | |
COMMITMENTS | 16. COMMITMENTS Office Lease On June 24, 2020, the Company extended the Edmonton office lease commencing effective on July 1, 2020 and expiring on June 30, 2021. The quarterly payments due, under the original lease, are as follows: USD $ Cdn $ 2021 Q1 (October - December) 3,722 4,965 2021 Q2 (January - March) 3,722 4,965 2021 Q3 (April - June) 3,722 4,965 In an effort to contain and mitigate the spread of COVID-19, Canada has imposed unprecedented, but are not limited to, restrictions on businesses, including mandatory work from home measures unless the employer determines a physical presence is required for operational effectiveness. Due to COVID-19 the Company implemented a work from home program for its staff beginning on March 14, 2020. Therefore the Company has moved out of this office space. See “Subsequent Events” in the notes to the Condensed Consolidated Financial Statements for the year ended September 30, 2020, as disclosed herein. Compensation to Executive Officers Concorde Consulting, a company owned 100% by Mr. Curtis J. Sparrow, for providing services as Chief Financial Officer to the Company for $11,156 per month (Cdn $15,000 per month). |
Crude Oil and Natural Gas Prope
Crude Oil and Natural Gas Property Information (Unaudited) | 12 Months Ended |
Sep. 30, 2020 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
CRUDE OIL AND NATURAL GAS PROPERTY INFORMATION (Unaudited) | 17. CRUDE OIL AND NATURAL GAS PROPERTY INFORMATION (Unaudited) Results of Operations from Oil and Gas Producing Activities The following table sets forth the results of the Company’s operations from oil producing activities from the Company’s Sawn Lake oil sands properties located in Alberta, Canada, for the years ending September 30, 2020 and 2019: September 30, September 30, Oil sales after royalties $ – $ – Production (Operating) expenses – – Depreciation, accretion and depletion (41,629 ) (44,457 ) Oil sales less expenses (41,629 ) (44,457 ) Income tax expenses – – Results of operations from producing activities $ (41,629 ) $ (44,457 ) There was no production volumes or revenues for the fiscal years ending September 30, 2020 and 2019, due to a majority of the Company’s Joint Venture partners voting to temporarily suspend operations of the SAGD Project at the end of February 2016. In accordance with the Farmout Agreement the Company entered into on July 31, 2013, the Farmee has agreed to provide up to $40,000,000 in funding for the Company’s working interest portion of the costs of the SAGD Project before the execution of the Farmout Agreement in return for a net 25% working interest in two oil sands leases where the Company had a working interest of 50%. The Farmee is also required to provide funding to cover monthly administrative expenses of the Company provided that such funding shall not exceed $30,000 per month. The Farmee shall continue to cover the Company’s administrative costs up to $30,000 per month, under the Farmout Agreement, until completion in all substantial respects of the SAGD Project agreement entered into between the Company and the operator of the SAGD Project. Operating expenses are zero since at this time they are paid for under the Farmout Agreement. Transportation costs are included in these operating costs. The total share of the capital costs and operating expenses of the Company’s joint Steam Assisted Gravity Drainage Demonstration project (“SAGD Project”), has been funded in accordance with the Farmout Agreement, at a net cost to the Company of $Nil. As required by the Farmout Agreement, as of September 30, 2020, the Farmee has reimbursed the Company and/or paid the operator up to a total of approximately Cdn $27.5 million, which depending upon the exchange rates used over time could presently be approximately $20.6 million USD SAGD Project Outlook - ● confirmed that the SAGD process works in the Bluesky formation at Sawn Lake; ● established characteristics of ramp up through stabilization of SAGD performance; ● indicated the productive capability and steam-oil ratio (“SOR”) of the reservoir; and ● provided critical information required for well and facility design associated with future commercial development. The first SAGD well pair, for the SAGD Project, was drilled to a vertical depth of approximately 650 meters with a horizontal length of 780 meters each. Steam injection commenced in May 2014 and production started in September of 2014. Production from this one SAGD well pair increased significantly over the 18-month period it produced. Over January and February of 2016 production from the SAGD Project averaged 615 bopd, on a 100% basis (154 bopd net to the Company), and achieved an instantaneous Steam Oil Ratio (“ISOR”) efficiency of 2.1 from one SAGD well pair, demonstrating the productive capability of our Sawn Lake reservoir. The ISOR is reflective of the amount of steam needed to produce one barrel of oil. The lower the ISOR the lower the production costs and emissions per barrel of oil produced. In early May of 2016, an amended application was submitted to the Alberta Energy Regulator (“AER”) for a commercial expansion of the existing SAGD Project facility site and received regulatory approval in December 2017. This expansion application sought approval to expand the existing SAGD Project facility site to 3,200 bopd (100% basis). The Company anticipates that only five SAGD well pairs will need to be operating to achieve this production level. The Company anticipates that the commercial expansion to 3,200 bopd (100% basis) would include the reactivation of the existing demonstration project SAGD facility and existing SAGD well pair, the drilling of an additional four wellpairs and expansion of the existing SAGD facility to generate the additional necessary steam. As 2021 and 2022 proceeds, the operator of the SAGD Project should be consulting with its joint venture partners regarding development potential and alternatives for the SAGD Project. Capitalized Costs Relating Specifically to the SAGD Project The Company entered into a Farmout Agreement dated July 31, 2013, whereby the Company’s costs of the SAGD Project are paid in full by the Farmee in accordance with the Farmout Agreement; therefore, the Company has not capitalized any of the capital costs and operating expenses paid by the Farmee to the operator of the SAGD Project. See Note 5 herein “Capitalization of Costs Incurred in Oil and Gas Activities”. Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development See Note 5 herein “Exploration Activities”. |
Legal Actions
Legal Actions | 12 Months Ended |
Sep. 30, 2020 | |
Legal Actions Disclosure [Abstract] | |
LEGAL ACTIONS | 18. LEGAL ACTIONS Provident Premier Master Fund Ltd. vs Northern Alberta Oil Ltd., Deep Well Oil & Gas (Alberta) Ltd., Andora Energy Corporation and MP Energy West Canada Corp. On October 28, 2019, Provident Premier Master Fund Ltd. (the “Plaintiff”), filed and served an Amended Statement of Claim against Northern Alberta Oil Ltd., Deep Well Oil & Gas (Alberta) Ltd., Andora Energy Corporation and MP Energy West Canada Corp. (the “Defendants”) in the Court of Queen’s Bench of Alberta Judicial District of Calgary. The Original Statement of Claim had been filed on November 1, 2018 but the Company states that it was never served, so the Company was not aware of the claim until served with the Amended Statement of Claim. The Plaintiff claims that on December 12, 2003, Nearshore Petroleum Corporation (“Nearshore”) entered into a royalty agreement with Northern Alberta Oil Ltd. (“Northern”) in which Northern supposedly granted a 6.5% gross overriding royalty (the “Purported GORR”) in all petroleum substances produced, saved and marketed from certain oil sands leases located within the Company’s Sawn Lake properties. The Plaintiff further claims that on September 22, 2006, Nearshore and Gemini Strategies LLC (“Gemini”) entered into a royalty conveyance agreement whereby Nearshore sold 1% of the Purported GORR to Gemini. The Plaintiff further states that Gemini acquired the 1% of the Purported GORR as agent for Provident, Grey K Fund LP (“Grey K”) and Grey K Offshore Fund Ltd. (“Grey K Offshore”). The Plaintiff further claims that on September 22, 2006, Gemini delivered a notice of assignment, in accordance with the 1993 Canadian Association of Petroleum Landmen Assignment Procedure (the “1993 CAPL”), to the grantors of the 1% of the Purported GORR, novating Provident (66.67%, net 0.6667%), Grey K (19.33%, net 0.1933%) and Grey K Offshore (14%, net 0.14%) into the Purported GORR agreement. The Plaintiff further claims that on September 2, 2009, any legal title in the Purported GORR beneficially owned by Grey K and Grey K Offshore vested in the Crown in right of Alberta pursuant to Section 229(1) of the Business Corporations Act and pursuant to section 15 of the Unclaimed Personal Property and Vested Property Act. The Plaintiff further claims that the Purported GORR was payable by one or more of the Defendants to Provident and that the Defendants are in breach of the Purported GORR agreement by failing to pay the Purported GORR. Despite the allegation within the claim that the Purported GORR was payable to each of Provident, Grey K and Grey K Offshore, the only Plaintiff named in the Amended Statement of Claim is Provident and relief is only being sought by Provident in relation to its purported 0.67% interest. The Plaintiff seeks: 1) A declaration that the Plaintiff is the legal owner of 0.67% of the Purported GORR payable on all oil sands produced from the lands which is payable by one or more of the Defendants; 2) An accounting to determine the amount of the outstanding royalty of which judgment is estimated by the Plaintiff to be in the amount of $74,970 ($100,000 Cdn); and 3) Interest and costs. The Company continues to deny the validity of the Purported GORR in the first instance. As well, if the Purported GORR was valid, which is denied, it was not a gross overriding interest, but rather an overriding interest, which allowed for the deduction of operating and marketing costs. The Company plans to vigorously defend itself against the Plaintiff’s claims. As at September 30, 2020, no contingent liability has been recorded, as a successful outcome for the Plaintiff is not probable. See “Subsequent Events” in the notes to the Condensed Consolidated Financial Statements for the year ended September 30, 2020, as disclosed herein. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 19. SUBSEQUENT EVENTS Loan As previously disclosed in Note 3 above, on April 20, 2020, one of the Company’s Canadian subsidiaries, received a loan from that subsidiary’s Canadian chartered bank in the amount of $29,988 ($40,000 Cdn) as part of the Canadian government’s COVID-19 relief program. In addition, on December 18, 2020, the Company’s Canadian subsidiary, received an additional $14,994 ($20,000 Cdn) under the same COVID-19 relief program. Office Lease From March 14, 2020 thru to September 30, 2021, the Company did not utilize its office space, and therefore the Company did not renew its office lease on June 30, 2021. Due to COVID-19 and certain governmental restrictions and recommendations, the Company’s staff have continued to work from home. Effective February 2021, the Company currently rents office space on a month-to-month basis with no lease commitment. The quarterly payments due are as follows: USD $ Cdn $ 2021 Q2 (January - March) 1,612 2,150 2021 Q3 (April - June) 2,418 3,225 Legal Actions Provident Premier Master Fund Ltd. vs Northern Alberta Oil Ltd., Deep Well Oil & Gas (Alberta) Ltd., Andora Energy Corporation and MP Energy West Canada Corp. On October 22, 2020, Provident Premier Master Fund Ltd. (the “Plaintiff”), filed and served a Second Amended Statement of Claim against Northern Alberta Oil Ltd., Deep Well Oil & Gas (Alberta) Ltd., Andora Energy Corporation and MP Energy West Canada Corp. (the “Defendants”) in the Court of Queen’s Bench of Alberta Judicial District of Calgary. The Original Statement of Claim had been filed on November 1, 2018, but the Company states that it was never served, so the Company was not aware of the claim until served with the first Amended Statement of Claim filed with the Court of Queen’s Bench of Alberta Judicial District of Calgary on October 24, 2019. The Plaintiff claims that on December 12, 2003, Nearshore Petroleum Corporation (“Nearshore”) entered into a royalty agreement with Northern Alberta Oil Ltd. (“Northern”) in which Northern granted a 6.5% gross overriding royalty (the “Purported GORR”) in all petroleum substances produced, saved and marketed from certain oil sands leases held by the Company located within the Company’s Sawn Lake properties. The Plaintiff seeks: 1) A declaration that the Plaintiff is the legal owner of 0.67% of the Purported GORR payable on all oil sands produced from the lands which is payable by one or more of the Defendants; 2) As stated in Clause 18(b) of the Second Amended Statement of Claim, an accounting to determine the amount of the outstanding royalty; 3.) Judgment or restitution in the amount determined pursuant to clause 18(b) in the approximate amount of $74,970 ($100,000 Cdn) plus such further amounts as come due following the filing of the action; and 4) Interest and costs. On November 30, 2020, the Defendants filed a Statement of Defence against the Plaintiff in the Court of Queen’s Bench of Alberta Judicial District of Calgary. The Defendants continue to deny the validity of the Purported GORR in the first instance. As well, if the Purported GORR was valid, which is denied, it was not a gross overriding interest, but rather an overriding interest, which allowed for the deduction of operating and marketing costs. The Defendants plan to vigorously defend itself against the Plaintiff’s claims. December 21,2020, Northern Alberta Oil Ltd., Deep Well Oil & Gas (Alberta) Ltd. (the “Third-Party Defendants”) filed a Statement of Defence to Third Party Claim against the Plaintiff in the Court of Queen’s Bench of Alberta Judicial District of Calgary. The remedy sought by the Third-Party Defendants is: 1.) the Third-Party Defendants ask that the Plaintiff’s claim against MP Energy West Canada Corp. and Andora Energy Corporation be dismissed, with costs payable by the Plaintiff; and 2.) The Third-Party Defendants ask that no costs be payable in relation to the Third-Party Claim. Andora Energy Corporation vs Northern Alberta Oil Ltd. and Deep Well Oil & Gas (Alberta), Ltd. On December 3, 2020, Andora Energy Corporation (the “Plaintiff”), filed a Statement of Claim against Northern Alberta Oil Ltd. and Deep Well Oil & Gas (Alberta) Ltd. (the “Defendants”) in the Court of Queen’s Bench of Alberta Judicial District of Calgary. The Company states that it was first served with this Statement of Claim on January 26, 2021. The Plaintiff claims that the Defendants owe the Plaintiff $100,316 ($133,808 Cdn) for unpaid joint interest billings. The Plaintiff seeks: 1.) Judgment, or alternatively damages, in the amount of the indebtedness, or such further amounts as may be due and owing as at the date of trail; 2.) Interest on the amount found to be owing; 3.) Costs of this action; and 4.) Such further and other relief as counsel may advise and the court deems just. On February 17, 2021, the Defendants filed a Statement of Defence against the Plaintiff in the Court of Queen’s Bench of Alberta Judicial District of Calgary. The Defendants claimed that the Plaintiff owes monies to the Defendants for leases operated by the Defendants, and that the Defendants have a right to off-set costs against any monies that may be owed to the Plaintiff’s. On March 18, 2021, Andora Energy Corporation (the “Plaintiff”), filed an Application for Summary of Judgment and Affidavit to support the Application for Summary of Judgment against Northern Alberta Oil Ltd. and Deep Well Oil & Gas (Alberta) Ltd. (the “Defendants”) in the Court of Queen’s Bench of Alberta Judicial District of Calgary. The Plaintiff seeks the repayment of outstanding joint interest billings pursuant to a joint operating agreement between the parties (the “JOA”). The Plaintiff seeks an Order granting the following relief: 1.) summary judgment in favour of Plaintiff as against the Defendant Northern Alberta Oil Ltd. in the amount of $98,367 ($131,209 Cdn); 2.) summary judgment in favour of Plaintiff as the Defendant Deep Well Oil & Gas (Alberta) Ltd. in the amount of $14,777 ($19,710 Cdn); 3.) interest on the amounts pursuant to the contractual interest rate prescribed by the JOA, or alternatively, pursuant to the Judgement Interest Act On June 21, 2021, the Defendants filed an Affidavit against the Plaintiff’s application for an order for Summary of Judgment against the Defendants in the Court of Queen’s Bench of Alberta Judicial District of Calgary. The Defendants claim that the Plaintiff owes $128,597 ($171,531 Cdn) to the Defendants for, but are not limited to, for expenses incurred on leases operated by the Defendants, and that the Defendants have a right to off-set costs against any monies that may be owed to the Plaintiff’s. On June 22, 2021, upon an application by the Plaintiff for an order for Summary of Judgment against the Defendants and upon the Court reviewing the Affidavits filed by the Plaintiff and Defendants and upon hearing counsel for the Plaintiff and counsel for the Defendants, the Court denied the Plaintiff’s order for a Summary of Judgment against the Defendants. The Defendants deny the Plaintiff’s claim regarding all of the monies which are claimed to be owed to the Defendants by the Plaintiff. The Defendants plan to vigorously defend itself against the Plaintiff’s claims, but has provided for some of the claimed amounts in the Company’s books. Common Stock Issued and Outstanding As previously disclosed in the Company’s Annual Report on Form 10-K for the year ending September 30, 2019, between June 8 to 10, 2018, five directors, two contractors and one employee of the Company, exercised a total of 3,150,000 option shares at an exercise price of $0.05 by way of a cashless exercise to acquire a total of 899,998 common shares of the Company. On June 19, 2018, one director of the Company acquired 300,000 common shares of the Company upon exercising stock options, at an exercise price of $0.05 per common share for total gross proceeds to the Company of $15,000. All of the stock certificates from the exercise of these stock options are held in escrow upon final approval and release by Management of the Company. Subsequently, on June 8, 2021, Management of the Company determined that the conditions to issue the common shares were not met and 1,199,998 common shares previously exercised in June of 2018 will be returned to treasury and $15,000 will be booked as a loan from one director. Farmout Agreement In accordance with the Farmout Agreement the Company entered into on July 31, 2013, the Farmee is required to provide up to $30,000 per month to cover the Company’s monthly administrative expenses. Since March of 2020, the Farmee has been delinquent in making its monthly payments in full to the Company. Currently the Farmee has only been paying about half of the $30,000 per month payments to the Company late and not on a consistent monthly basis. To date the Farmee owes the Company approximately $345,000 in administrative costs as required by the Farmout Agreement. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation These consolidated financial statements include the accounts of two wholly owned subsidiaries: (1) Northern Alberta Oil Ltd. (“Northern”) from the date of acquisition, being June 7, 2005, incorporated under the Business Corporations Act (Alberta), Canada; and (2) Deep Well Oil & Gas (Alberta) Ltd., incorporated under the Business Corporations Act (Alberta), Canada on September 15, 2005. All inter-company balances and transactions have been eliminated. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company determines allowances for doubtful accounts based on aging of specific accounts. Accounts receivable are stated at the historical carrying amounts net of allowances for doubtful accounts and include only the amounts the Company deems to be collectable. The allowance for bad debts was $nil and $nil at September 30, 2020 and September 30, 2019, respectively. |
Crude oil and natural gas properties | Crude oil and natural gas properties The Company follows the full cost method of accounting for oil sands properties pursuant to SEC Regulation S-X Rule 4-10. The full cost method of accounting for oil and gas operations requires that all costs associated with the exploration for and development of oil and gas reserves be capitalized on a country by country basis. Such costs include lease acquisition costs, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling both productive and non-productive wells, production equipment and overhead charges directly related to acquisition, exploration and development activities. Under the full cost method, oil and gas properties are subject to the ceiling test performed quarterly. A ceiling test write-down is recognized in net earnings if the carrying amount of a cost centre exceeds the “cost centre ceiling”. The carrying amount of the cost centre includes the capitalized costs of proved oil and natural gas properties, net of accumulated depletion and deferred income taxes. The cost centre ceiling is the sum of (A) present value of the estimated future net cash flows from proved oil and natural gas reserves using a 10 percent per year discount factor, (B) the costs of unproved properties not being amortized, and (C) the lower of cost or fair value of unproved properties included in the costs being amortized; less (D) related income tax effects. During the 2020 fiscal year, no ceiling test write-downs were recorded for the Company’s oil and gas properties. Costs associated with unproved properties are excluded from the depletion calculation until it is determined that proved reserves are attributable or impairment has occurred. The Company’s unproved properties are assessed annually for impairment. Costs that have been impaired are included in the costs subject to depletion within the full cost pool. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the declining balance method over the estimated useful life of the asset. Only half of the depreciation rate is taken in the year of acquisition. The following is a summary of the depreciation rates used in computing depreciation expense: % Software 100 Computer equipment 55 Portable work camp 30 Vehicles 30 Road Mats 30 Wellhead 25 Office furniture and equipment 20 Oilfield Equipment 20 Tanks 10 Expenditures for major repairs and renewals that extend the useful life of the asset are capitalized. Minor repair expenditures are charged to expense as incurred. Leasehold improvements are amortized over the greater of five years or the remaining life of the lease agreement. Depreciation, Depletion and Amortization - Costs of acquiring and evaluating unproved properties and major development projects are initially excluded from the depletion and depreciation calculation until it is determined whether or not proved reserves can be assigned to such properties. Costs of unproved properties and major development projects are transferred to depletable costs based on the percentage of reserves assigned to each project over the expected total reserves when the project was initiated. These costs are assessed periodically to ascertain whether impairment has occurred. Since there was no production in the last two fiscal years no depletion has been booked in either year. |
Asset Retirement Obligations | Asset Retirement Obligations The Company accounts for asset retirement obligations by recording the fair value of the estimated future cost of the Company’s plugging and abandonment obligations. The asset retirement obligation is recorded when there is a legal obligation associated with the retirement of a tangible long-lived asset and the fair value of the liability can reasonably be estimated. Upon initial recognition of an asset retirement obligation, the Company increases the carrying amount of the long-lived asset by the same amount as the liability. Over time, the liabilities are accreted for the change in their present value through charges to oil and gas production and well operations costs. The initial capitalized costs are depleted over the useful lives of the related assets through charges to depreciation, depletion, and amortization. If the fair value of the estimated asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the asset retirement cost. Revisions in estimated liabilities can result from revisions of estimated inflation rates, escalating retirement costs, and changes in the estimated timing of settling asset retirement obligations. As of September 30, 2020, and 2019, asset retirement obligations amount to $515,394 and $500,392, respectively. The Company has posted bonds, where required, with the Government of Alberta based on the amount the government estimates the cost of abandonment and reclamation to be. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company is the US dollar, but the functional currency of the Company’s Canadian subsidiaries is the Canadian dollar. Consequently, monetary assets and liabilities are remeasured into United States dollars at the exchange rate on the balance sheet date and non-monetary items are remeasured at the rate of exchange in effect when the assets are acquired, or obligations incurred. Revenues and expenses are remeasured at the average exchange rate prevailing during the period. Foreign currency transaction gains and losses have not been material and therefore are included in results of operations and not separately reported as a component of comprehensive income. |
Accounting Method | Accounting Method The Company recognizes income and expenses based on the accrual method of accounting. |
Dividend Policy | Dividend Policy The Company has not yet adopted a policy regarding payment of dividends. |
Financial, Concentration and Credit Risk | Financial, Concentration and Credit Risk The Company’s consideration or related financial credit risk related to cash and cash equivalents depends on if funds are fully insured by either The Canada Deposit Insurance Corporation (“CDIC”), or The Credit Union Deposit Guarantee Corporation (“CUDGC”) deposit insurance limit. As of the 2020 fiscal year end, the Company has approximately $1,922 funds that are in excess of deposit insurance limits, which may have financial credit risk. For the Company funds that are maintained in a financial institution which has its deposits fully guaranteed by CUDGC, there is no financial credit risk. The Company is not directly subject to credit risk resulting from the concentration of its crude oil sales. For the year ended September 30, 2020 and September 30, 2019, the Company recorded no oil sales. |
Income Taxes | Income Taxes The Company utilizes the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax bases of the assets and liabilities, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized. Due to the uncertainty regarding the Company’s profitability, a valuation allowance has been recorded against the future tax benefits of its losses and no net benefit has been recorded in the consolidated financial statements. |
Revenue Recognition | Revenue Recognition The Company is in the business of exploring for, developing, producing, and selling crude oil. Crude oil revenue is recognized when the product is taken from the storage tanks on the lease and delivered to the purchaser and title transfers to the purchaser. Payment is generally received one to three months after the sale has occurred. Occasionally the Company may sell specific leases, and the gain or loss associated with these transactions will be shown separately from the profit or loss from the operations or sales of oil products. Such gain or losses will be measured and recognized when all of the following have occurred: (1) there is persuasive evidence of an arrangement to sell; (2) the price of the sale is fixed or determinable; (3) the title to the lease has transferred; and (4) collection is reasonably assured. |
Advertising and Market Development | Advertising and Market Development The Company expenses advertising and market development costs as incurred. |
Basic and Diluted Net Loss Per Share | Basic and Diluted Net Loss Per Share Basic net loss per share amounts are computed based on the weighted average number of shares actually outstanding. Diluted net loss per share amounts are computed using the weighted average number of common shares and common equivalent shares outstanding as if shares had been issued on the exercise of the common share rights, unless the exercise becomes antidilutive and then the basic and diluted per share amounts are the same. There was no potentially dilutive securities excluded from the the diluted earnings per share calculation because their effect would be antidilutive. |
Financial Instruments | Financial Instruments Financial instruments include cash and cash equivalents, accounts receivable, long-term investments, investment in equity securities, accounts payable and accounts payable - related parties. The fair value of these financial instruments approximates their carrying value because of the short-term maturity of these items unless otherwise noted. The fair value of the investment in equity securities cannot be determined as the market value is not readily obtainable. The equity securities are reported using the cost method. |
Environmental Requirements | Environmental Requirements The Company is subject to federal, provincial and local environmental laws and regulations. These laws generally provide for control of pollutants released into the environment and protection of the environment. Under these laws and regulations, the Company could be liable for clean-up costs, other environmental damages and fines or penalties related to the Company’s oilsands operations. When the responsibility to remediate is probable and the amount of associated costs can be reasonably estimated environmental remediation liabilities are recorded. At the report date, environmental requirements related to the oil properties acquired are unknown and therefore an estimate of any future cost cannot be made. |
Share-Based Compensation | Share-Based Compensation The Company accounts for stock options granted to directors, officers, employees and non-employees using the fair value method of accounting. The fair value of stock options for directors, officers, employees and their corporate entities are calculated at the date of grant and are expensed over the vesting period of the options on a straight-line basis. For non-employees, the fair value of the options is measured on the earlier of the date at which the counterparty performance is complete or the date at which the performance commitment is reached. The Company uses the Black-Scholes model to calculate the fair value of stock options issued, which requires certain assumptions to be made at the time the options are awarded, including the expected life of the option, the expected number of granted options that will vest and the expected future volatility of the stock. The Company reflects estimates of award forfeitures at the time of grant and revises in subsequent periods, if necessary, when forfeiture rates are expected to change. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” requiring lessees to recognize lease assets and lease liabilities for most leases classified as operating leases under previous U.S. GAAP. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company will be required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. This ASU does not apply to the Company’s oil sand leases. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements because the Company has no leases that the new accounting standard applies to. |
Estimates and Assumptions | Estimates and Assumptions Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used in preparing these consolidated financial statements. Significant estimates by management include valuations of oil properties, valuation of accounts receivable, useful lives of long-lived assets, asset retirement obligations, valuation of share-based compensation, and the realizability of future income taxes. |
COVID-19 Impact | Covid-19 Impact On March 11, 2020, the World Health Organization assessed and characterized the novel coronavirus disease (“COVID-19”) as a pandemic. In an effort to contain and mitigate the spread of COVID-19, several measures have been implemented in Canada and the rest of the world in response to the impact from COVID-19. The Company continues to operate its business at this time and continues to monitor the COVID-19 developments but since the duration and impact of the COVID-19 pandemic is unknown at this time, it is not possible to reliably estimate the length of the outbreak, or the severity of its impact will have on the Company. The ongoing spread of COVID-19 and mitigation measures to prevent its spread, along with a decline in oil prices, could have a material adverse effect on the Company’s business, financial condition, results of operations and its future ability to raise funds. The Company, if eligible, has or will apply for any financial relief available to the Company. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of depreciation expense | % Software 100 Computer equipment 55 Portable work camp 30 Vehicles 30 Road Mats 30 Wellhead 25 Office furniture and equipment 20 Oilfield Equipment 20 Tanks 10 |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Oil and Gas Property [Abstract] | |
Schedule of net payments due in lease rental commitment | (USD $) (Cdn $) 2021 $ 17,144 $ 22,868 2022 $ 28,059 $ 37,426 2023 $ 28,059 $ 37,426 2024 $ 30,938 $ 41,266 2025 $ 46,537 $ 62,074 Subsequent $ 257,185 $ 343,048 |
Capitalization of Costs Incur_2
Capitalization of Costs Incurred in Oil and Gas Activities (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Capitalized Costs Relating To Oil And Gas Producing Activities [Abstract] | |
Schedule of capitalized costs relating to oil and gas activities | September 30, September 30, Unproved Oil and Gas Properties $ 22,172,761 $ 22,147,367 Accumulated Depreciation and Depletion (118,201 ) (107,060 ) Net Capitalized Cost $ 22,054,560 $ 22,040,307 |
Exploration Activities (Tables)
Exploration Activities (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Exploration Activities [Abstract] | |
Schedule of costs incurred in the oil property acquisition, exploration and development activities | September 30, September 30, Acquisition of Properties: Proved $ – $ – Unproved $ – $ – Exploration costs $ 25,394 $ 75,580 Development costs $ – $ – |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | September 30, 2020 Accumulated Net Book Cost Depreciation Value Computer equipment $ 36,569 $ 36,113 $ 456 Office furniture and equipment 34,130 32,286 1,844 Software 5,826 5,826 – Leasehold improvements 4,936 4,936 – Portable work camp 170,580 167,779 2,801 Vehicles 38,077 38,077 – Oilfield equipment 249,046 228,863 20,182 Road mats 364,614 358,486 6,128 Wellhead 3,254 3,254 – Tanks 96,085 67,440 28,645 $ 1,003,117 $ 943,060 $ 60,056 September 30, 2019 Accumulated Net Book Cost Depreciation Value Computer equipment $ 36,569 $ 35,177 $ 1,392 Office furniture and equipment 34,130 31,826 2,304 Software 5,826 5,826 – Leasehold improvements 4,936 4,936 – Portable work camp 170,580 166,578 4,002 Vehicles 38,077 38,077 – Oilfield equipment 249,046 223,818 25,228 Road mats 364,614 355,859 8,755 Wellhead 3,254 3,254 – Tanks 96,085 64,257 31,828 $ 1,003,117 $ 929,608 $ 73,509 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of changes to the asset retirement obligation | September 30, September 30, Balance, beginning of period $ 500,392 $ 493,467 Liabilities incurred – – Effect of foreign exchange (3,430 ) (11,081 ) Disposal – – Accretion expense 18,432 18,006 Balance, end of period $ 515,394 $ 500,392 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Stock Option Activity [Abstract] | |
Schedule of stock options | Shares Underlying Shares Underlying Range of Exercise Prices Shares Underlying Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Shares Underlying Options Exercisable Weighted Average Exercise Price As of September 30, 2020 – – $ – – $ – |
Schedule of stock option activity | Number of Underlying Shares Weighted Average Exercise Price Weighted Average Fair Market Value Balance, September 30, 2019 600,000 $ 0.23 $ 0.18 Expired, November 17, 2019 (600,000 ) 0.23 0.18 Balance, September 30, 2020 – $ – $ – Exercisable, September 30, 2020 – $ – $ – |
Schedule of options exercised and expired | September 30, 2020 September 30, 2019 Shares Weighted Shares Weighted Outstanding balance at beginning of period 600,000 $ 0.23 8,080,000 $ 0.36 Expired, October 28, 2018 (250,000 ) 0.30 Expired, December 4, 2018 (450,000 ) 0.34 Expired, September 19, 2019 (6,780,000 ) 0.38 Expired, November 17, 2019 (600,000 ) 0.23 Outstanding at end of period – $ – 600,000 $ 0.23 Exercisable – $ – 600,000 $ 0.23 |
Changes in Non-Cash Working C_2
Changes in Non-Cash Working Capital (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Working Capital Information [Abstract] | |
Schedule of changes in non-cash working capital | September 30, September 30, 2020 2019 Accounts receivable $ (161,200 ) $ (42,478 ) Prepaid expenses 11,594 (9,536 ) Accounts payable 156,796 25,855 $ 7,190 $ (26,159 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of net deferred tax asset, the statutory tax rate, the effective rate and the elected amount of the valuation allowance | Year Ended Year Ended Statutory and effective tax rate Domestic Statutory U.S. federal rate 21 % 21 % Foreign 24.75 % 26.75 % |
Schedule of income taxes recovered at statutory and effective tax rate | Year Ended Year Ended Income taxes recovered at the statutory and effective tax rate Domestic Statutory U.S. federal rate $ 18,314 $ 24,637 Foreign 3,983 21,347 Timing differences: Non-deductible expenses (10,490 ) (12,534 ) Other deductible charges Benefit of tax losses not recognized in the year (11,808 ) (33,450 ) Income tax recovery (expense) recognized in the year $ – $ – |
Schedule of approximate tax effects of each type of temporary difference that gives rise to deferred tax assets | Year Ended Year Ended Deferred income tax assets (liabilities) Net operating loss carry-forwards $ 3,291,854 $ 2,563,850 Oil and gas properties (1,934,917 ) (2,043,926 ) Equipment 188,996 204,147 Valuation allowance (1,545,934 ) (724,071 ) Net deferred income tax assets $ – $ – |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Commitments [Abstract] | |
Schedule of office lease | USD $ Cdn $ 2021 Q1 (October - December) 3,722 4,965 2021 Q2 (January - March) 3,722 4,965 2021 Q3 (April - June) 3,722 4,965 |
Crude Oil and Natural Gas Pro_2
Crude Oil and Natural Gas Property Information (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Schedule of operations from oil producing activities | September 30, September 30, Oil sales after royalties $ – $ – Production (Operating) expenses – – Depreciation, accretion and depletion (41,629 ) (44,457 ) Oil sales less expenses (41,629 ) (44,457 ) Income tax expenses – – Results of operations from producing activities $ (41,629 ) $ (44,457 ) |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Schedule of quarterly payments | USD $ Cdn $ 2021 Q2 (January - March) 1,612 2,150 2021 Q3 (April - June) 2,418 3,225 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Details) - $ / shares | Sep. 30, 2020 | Sep. 30, 2019 |
Accounting Policies [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Accounting Policies [Abstract] | ||
Discount factor of oil and natural gas reserves | 10.00% | |
Asset retirement obligations | $ 515,394 | $ 500,392 |
Excess of deposit insurance limits | $ 1,922 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of depreciation expense | 12 Months Ended |
Sep. 30, 2020 | |
Software and Software Development Costs [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment | 100.00% |
Computer Equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment | 55.00% |
Portable work camp [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment | 30.00% |
Vehicles [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment | 30.00% |
Road Mats [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment | 30.00% |
Wellhead [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment | 25.00% |
Office Furniture and Equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment | 20.00% |
Oilfield Equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment | 20.00% |
Tanks [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment | 10.00% |
Loan Payable (Details)
Loan Payable (Details) | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Loan payable, description | one of the Company’s Canadian subsidiaries received a loan from that subsidiary’s Canadian chartered bank in the amount of $29,988 ($40,000 Cdn) as part of the Canadian government’s COVID-19 relief program. Under this loan program, eligible businesses receive a $40,000 Cdn interest-free loan until December 31, 2022. If $30,000 Cdn is repaid on or before December 31, 2022, the remaining amount of the loan is eligible for complete forgiveness. If the loan is not repaid by December 31, 2022, it will be extended for an additional 3-year term bearing an interest rate of 5% per annum. It is the Company’s intention to repay $30,000 Cdn of the loan on or before December 31, 2022. As such, the forgivable portion of the loan $7,437 ($10,000 Cdn) has been recorded as income; and $22,491 ($30,000 Cdn) has been recorded as loan payable. |
Oil and Gas Properties (Details
Oil and Gas Properties (Details) | 12 Months Ended |
Sep. 30, 2020a | |
Oil and Gas Property [Abstract] | |
Oil sands acreage, gross acres | 17,712 |
Oil sands acreage, net acres | 11,734 |
Five oil sands leases, description | The Company has five oil sands leases that cover 14,549 gross acres (8,571 net acres) and have no set expiry date. These continued leases are now held by the Company for perpetuity, subject to yearly escalating rental payments until they are deemed to be producing leases; |
One oil sands lease, description | 3,163 gross acres (3,163 net acres) under one oil sands lease are set to expire on April 9, 2024. |
Oil and Gas Properties (Detai_2
Oil and Gas Properties (Details) - Schedule of net payments due in lease rental commitment - Sep. 30, 2020 | USD ($) | CAD ($) |
Schedule of net payments due in lease rental commitment [Abstract] | ||
2021 | $ 17,144 | $ 22,868 |
2022 | 28,059 | 37,426 |
2023 | 28,059 | 37,426 |
2024 | 30,938 | 41,266 |
2025 | 46,537 | 62,074 |
Subsequent | $ 257,185 | $ 343,048 |
Capitalization of Costs Incur_3
Capitalization of Costs Incurred in Oil and Gas Activities (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Capitalization of Costs Incurred in Oil and Gas Activities [Abstract] | ||
Depreciation and depletion expense | $ 11,141 | $ 11,141 |
Capitalization of Costs Incur_4
Capitalization of Costs Incurred in Oil and Gas Activities (Details) - Schedule of capitalized costs relating to oil and gas activities - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Schedule of capitalized costs relating to oil and gas activities [Abstract] | ||
Unproved Oil and Gas Properties | $ 22,172,761 | $ 22,147,367 |
Accumulated Depreciation and Depletion | (118,201) | (107,060) |
Net Capitalized Cost | $ 22,054,560 | $ 22,040,307 |
Exploration Activities (Details
Exploration Activities (Details) - Schedule of costs incurred in the oil property acquisition, exploration and development activities - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Acquisition of Properties: | ||
Proved | ||
Unproved | ||
Exploration costs | 25,394 | 75,580 |
Development costs |
Investment in Equity Securiti_2
Investment in Equity Securities (Details) - shares | 1 Months Ended | |
Nov. 19, 2008 | Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Converted shares | 2,241,558 | |
Equity interest | 2.24% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 13,453 | $ 16,889 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 1,003,117 | $ 1,003,117 |
Accumulated Depreciation | 943,060 | 929,608 |
Net Book Value | 60,056 | 73,509 |
Computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 36,569 | 36,569 |
Accumulated Depreciation | 36,113 | 35,177 |
Net Book Value | 456 | 1,392 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 34,130 | 34,130 |
Accumulated Depreciation | 32,286 | 31,826 |
Net Book Value | 1,844 | 2,304 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 5,826 | 5,826 |
Accumulated Depreciation | 5,826 | 5,826 |
Net Book Value | ||
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 4,936 | 4,936 |
Accumulated Depreciation | 4,936 | 4,936 |
Net Book Value | ||
Portable work camp [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 170,580 | 170,580 |
Accumulated Depreciation | 167,779 | 166,578 |
Net Book Value | 2,801 | 4,002 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 38,077 | 38,077 |
Accumulated Depreciation | 38,077 | 38,077 |
Net Book Value | ||
Oilfield equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 249,046 | 249,046 |
Accumulated Depreciation | 228,863 | 223,818 |
Net Book Value | 20,182 | 25,228 |
Road mats [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 364,614 | 364,614 |
Accumulated Depreciation | 358,486 | 355,859 |
Net Book Value | 6,128 | 8,755 |
Wellhead [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 3,254 | 3,254 |
Accumulated Depreciation | 3,254 | 3,254 |
Net Book Value | ||
Tanks [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 96,085 | 96,085 |
Accumulated Depreciation | 67,440 | 64,257 |
Net Book Value | $ 28,645 | $ 31,828 |
Long-Term Investments (Details)
Long-Term Investments (Details) | 12 Months Ended |
Sep. 30, 2020 | |
Long-term Investments [Abstract] | |
Long-term investment rate percentage below prime rate | 0.375% |
Significant Transactions with_2
Significant Transactions with Related Parties (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Related Party Transactions [Abstract] | ||
Accounts payable - related parties | $ 22,941 | $ 1,375 |
Percentage of outstanding common capital stock | 53.08% | |
Professional fees to related party | $ 133,866 | $ 135,666 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Estimate of undiscounted cash flows related to asset retirement obligation | $ 605,926 | $ 610,291 |
Fair value of liability | $ 515,394 | $ 500,392 |
Risk free rate | 3.74% | |
Inflation rate | 2.00% | |
Term of settlement of the obligation | 23 years |
Asset Retirement Obligations _2
Asset Retirement Obligations (Details) - Schedule of changes to the asset retirement obligation - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of changes to the asset retirement obligation [Abstract] | ||
Balance, beginning of period | $ 500,392 | $ 493,467 |
Liabilities incurred | ||
Effect of foreign exchange | (3,430) | (11,081) |
Disposal | ||
Accretion expense | 18,432 | 18,006 |
Balance, end of period | $ 515,394 | $ 500,392 |
Common Stock (Details)
Common Stock (Details) - shares | Sep. 30, 2020 | Sep. 30, 2019 |
Stockholders' Equity Note [Abstract] | ||
Common stock, shares outstanding | 230,574,603 | 230,574,603 |
Warrants outstanding |
Stock Options (Details)
Stock Options (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Stock Options (Details) [Line Items] | ||
Common stock issued and outstanding, percentage | 10.00% | |
Common stock vested, description | The aggregate number of Common Shares with respect to which options may be vested to any one person (together with their associates) under the plan, together with all other incentive plans of the Company in any one year shall not exceed 2% of the total number of Common Shares outstanding, and in total may not exceed 6% of the total number of Common Shares outstanding. | |
Stock Options [Member] | ||
Stock Options (Details) [Line Items] | ||
Share-based compensation expense related to stock options (in Dollars) | ||
Aggregate intrinsic value of exercisable options (in Dollars) | ||
Unvested stock options outstanding (in Shares) | ||
Expected term | 5 years | |
Expected volatility range, minimum | 102.00% | |
Expected volatility range, maximum | 122.00% | |
Risk-free Interest rate, minimum | 1.31% | |
Risk-free rate, minimum | 2.07% |
Stock Options (Details) - Sched
Stock Options (Details) - Schedule of stock options | 12 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Schedule of stock options [Abstract] | |
Shares Underlying Options Outstanding | shares | |
Shares Underlying Options Outstanding, Weighted Average Remaining Contractual Life | |
Shares Underlying Options Outstanding, Weighted Average Exercise Price | $ / shares | |
Shares Underlying Options Exercisable | shares | |
Shares Underlying Options Exercisable, Weighted Average Exercise Price | $ / shares |
Stock Options (Details) - Sch_2
Stock Options (Details) - Schedule of stock option activity - Stock Option Activity [Member] | 12 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Stock Options (Details) - Schedule of stock option activity [Line Items] | |
Number of Underlying Shares, Beginning Balance (in Shares) | shares | 600,000 |
Weighted Average Exercise Price, Beginning Balance | $ 0.23 |
Weighted Average Fair Market Value, Beginning Balance | $ 0.18 |
Number of Underlying Shares, Expired (in Shares) | shares | (600,000) |
Weighted Average Exercise Price, Expired | $ 0.23 |
Weighted Average Fair Market Value, Expired | $ 0.18 |
Number of Underlying Shares, Ending Balance (in Shares) | shares | |
Weighted Average Exercise Price, Ending Balance | |
Weighted Average Fair Market Value, Ending Balance | |
Number of Underlying Shares, Exercisable (in Shares) | shares | |
Weighted Average Exercise Price, Exercisable | |
Weighted Average Fair Market Value, Exercisable |
Stock Options (Details) - Sch_3
Stock Options (Details) - Schedule of options exercised and expired - Stock Option Activity [Member] - $ / shares | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Stock Options (Details) - Schedule of options exercised and expired [Line Items] | ||
Shares, Outstanding balance at beginning of period | 600,000 | 8,080,000 |
Weighted Average Exercise Price, Outstanding balance at beginning of period | $ 0.23 | $ 0.36 |
Shares, Outstanding at end of period | 600,000 | |
Weighted Average Exercise Price, Outstanding at end of period | $ 0.23 | |
Shares, Exercisable | 600,000 | |
Weighted Average Exercise Price, Exercisable | $ 0.23 | |
October 28, 2018 [Member] | ||
Stock Options (Details) - Schedule of options exercised and expired [Line Items] | ||
Shares, Expired | (250,000) | |
Weighted Average Exercise Price, Expired | $ 0.30 | |
December 4, 2018 [Member] | ||
Stock Options (Details) - Schedule of options exercised and expired [Line Items] | ||
Shares, Expired | (450,000) | |
Weighted Average Exercise Price, Expired | $ 0.34 | |
September 19, 2019 [Member] | ||
Stock Options (Details) - Schedule of options exercised and expired [Line Items] | ||
Shares, Expired | (6,780,000) | |
Weighted Average Exercise Price, Expired | $ 0.38 | |
November 17, 2019 [Member] | ||
Stock Options (Details) - Schedule of options exercised and expired [Line Items] | ||
Shares, Expired | (600,000) | |
Weighted Average Exercise Price, Expired | $ 0.23 |
Changes in Non-Cash Working C_3
Changes in Non-Cash Working Capital (Details) - Schedule of changes in non-cash working capital - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of changes in non-cash working capital [Abstract] | ||
Accounts receivable | $ (161,200) | $ (42,478) |
Prepaid expenses | 11,594 | (9,536) |
Accounts payable | 156,796 | 25,855 |
Changes in non-cash working capital | $ 7,190 | $ (26,159) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Income Taxes (Details) [Line Items] | ||
Operating loss carryforwards | $ 6,557,601 | $ 2,190,855 |
Operating loss carryforwards, expiration date | 2040 | |
Operating loss carry-forwards in future income tax benefits | $ 3,291,854 | |
CAD [Member] | ||
Income Taxes (Details) [Line Items] | ||
Operating loss carryforwards | $ 7,735,325 | $ 7,865,973 |
Operating loss carryforwards, expiration date | 2040 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of net deferred tax asset, the statutory tax rate, the effective rate and the elected amount of the valuation allowance | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Domestic | ||
Statutory U.S. federal rate | 21.00% | 21.00% |
Foreign | 24.75% | 26.75% |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of income taxes recovered at statutory and effective tax rate - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Domestic | ||
Statutory U.S. federal rate | $ 18,314 | $ 24,637 |
Foreign | 3,983 | 21,347 |
Timing differences: | ||
Non-deductible expenses | (10,490) | (12,534) |
Other deductible charges | ||
Benefit of tax losses not recognized in the year | (11,808) | (33,450) |
Income tax recovery (expense) recognized in the year |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of approximate tax effects of each type of temporary difference that gives rise to deferred tax assets - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Deferred income tax assets (liabilities) | ||
Net operating loss carry-forwards | $ 3,291,854 | $ 2,563,850 |
Oil and gas properties | (1,934,917) | (2,043,926) |
Equipment | 188,996 | 204,147 |
Valuation allowance | (1,545,934) | (724,071) |
Net deferred income tax assets |
Commitments (Details)
Commitments (Details) | 12 Months Ended | |
Sep. 30, 2020USD ($) | Sep. 30, 2020CAD ($) | |
Commitments [Abstract] | ||
Officer ownership of consulting company | 100.00% | 100.00% |
Compensation paid per month to executive officer consulting company | $ 11,156 | $ 15,000 |
Commitments (Details) - Schedul
Commitments (Details) - Schedule of office lease - Jun. 30, 2020 | USD ($) | CAD ($) |
2021 Q1 (October - December) [Member] | ||
Commitments (Details) - Schedule of office lease [Line Items] | ||
Total commitments | $ 3,722 | $ 4,965 |
2021 Q2 (January - March) [Member] | ||
Commitments (Details) - Schedule of office lease [Line Items] | ||
Total commitments | 3,722 | 4,965 |
2021 Q3 (April - June) [Member] | ||
Commitments (Details) - Schedule of office lease [Line Items] | ||
Total commitments | $ 3,722 | $ 4,965 |
Crude Oil and Natural Gas Pro_3
Crude Oil and Natural Gas Property Information (Unaudited) (Details) - 12 months ended Sep. 30, 2020 $ in Millions, $ in Millions | USD ($) | CAD ($) |
Farmout Agreement [Member] | ||
Crude Oil and Natural Gas Property Information (Unaudited) (Details) [Line Items] | ||
Operating expenses | $ 0 | |
Net cost | ||
SAGD Project [Member] | ||
Crude Oil and Natural Gas Property Information (Unaudited) (Details) [Line Items] | ||
SAGD Project working interest 100% basis | 100.00% | 100.00% |
Total capital costs and operating costs | $ 20.6 | $ 27.5 |
Estimated gross capital costs SAGD project steam plant facility | $ 26.5 | $ 34.8 |
Sagd project, description | The first SAGD well pair, for the SAGD Project, was drilled to a vertical depth of approximately 650 meters with a horizontal length of 780 meters each. Steam injection commenced in May 2014 and production started in September of 2014. Production from this one SAGD well pair increased significantly over the 18-month period it produced. Over January and February of 2016 production from the SAGD Project averaged 615 bopd, on a 100% basis (154 bopd net to the Company), and achieved an instantaneous Steam Oil Ratio (“ISOR”) efficiency of 2.1 from one SAGD well pair, demonstrating the productive capability of our Sawn Lake reservoir. The ISOR is reflective of the amount of steam needed to produce one barrel of oil. The lower the ISOR the lower the production costs and emissions per barrel of oil produced. In early May of 2016, an amended application was submitted to the Alberta Energy Regulator (“AER”) for a commercial expansion of the existing SAGD Project facility site and received regulatory approval in December 2017. This expansion application sought approval to expand the existing SAGD Project facility site to 3,200 bopd (100% basis). The Company anticipates that only five SAGD well pairs will need to be operating to achieve this production level. The Company anticipates that the commercial expansion to 3,200 bopd (100% basis) would include the reactivation of the existing demonstration project SAGD facility and existing SAGD well pair, the drilling of an additional four wellpairs and expansion of the existing SAGD facility to generate the additional necessary steam. As 2021 and 2022 proceeds, the operator of the SAGD Project should be consulting with its joint venture partners regarding development potential and alternatives for the SAGD Project. | The first SAGD well pair, for the SAGD Project, was drilled to a vertical depth of approximately 650 meters with a horizontal length of 780 meters each. Steam injection commenced in May 2014 and production started in September of 2014. Production from this one SAGD well pair increased significantly over the 18-month period it produced. Over January and February of 2016 production from the SAGD Project averaged 615 bopd, on a 100% basis (154 bopd net to the Company), and achieved an instantaneous Steam Oil Ratio (“ISOR”) efficiency of 2.1 from one SAGD well pair, demonstrating the productive capability of our Sawn Lake reservoir. The ISOR is reflective of the amount of steam needed to produce one barrel of oil. The lower the ISOR the lower the production costs and emissions per barrel of oil produced. In early May of 2016, an amended application was submitted to the Alberta Energy Regulator (“AER”) for a commercial expansion of the existing SAGD Project facility site and received regulatory approval in December 2017. This expansion application sought approval to expand the existing SAGD Project facility site to 3,200 bopd (100% basis). The Company anticipates that only five SAGD well pairs will need to be operating to achieve this production level. The Company anticipates that the commercial expansion to 3,200 bopd (100% basis) would include the reactivation of the existing demonstration project SAGD facility and existing SAGD well pair, the drilling of an additional four wellpairs and expansion of the existing SAGD facility to generate the additional necessary steam. As 2021 and 2022 proceeds, the operator of the SAGD Project should be consulting with its joint venture partners regarding development potential and alternatives for the SAGD Project. |
SAGD Project [Member] | Farmout Agreement [Member] | ||
Crude Oil and Natural Gas Property Information (Unaudited) (Details) [Line Items] | ||
Description and terms of farmout agreement | In accordance with the Farmout Agreement the Company entered into on July 31, 2013, the Farmee has agreed to provide up to $40,000,000 in funding for the Company’s working interest portion of the costs of the SAGD Project before the execution of the Farmout Agreement in return for a net 25% working interest in two oil sands leases where the Company had a working interest of 50%. The Farmee is also required to provide funding to cover monthly administrative expenses of the Company provided that such funding shall not exceed $30,000 per month. The Farmee shall continue to cover the Company’s administrative costs up to $30,000 per month, under the Farmout Agreement, until completion in all substantial respects of the SAGD Project agreement entered into between the Company and the operator of the SAGD Project. | In accordance with the Farmout Agreement the Company entered into on July 31, 2013, the Farmee has agreed to provide up to $40,000,000 in funding for the Company’s working interest portion of the costs of the SAGD Project before the execution of the Farmout Agreement in return for a net 25% working interest in two oil sands leases where the Company had a working interest of 50%. The Farmee is also required to provide funding to cover monthly administrative expenses of the Company provided that such funding shall not exceed $30,000 per month. The Farmee shall continue to cover the Company’s administrative costs up to $30,000 per month, under the Farmout Agreement, until completion in all substantial respects of the SAGD Project agreement entered into between the Company and the operator of the SAGD Project. |
SAGD Project working interest 100% basis | 25.00% | 25.00% |
Crude Oil and Natural Gas Pro_4
Crude Oil and Natural Gas Property Information (Unaudited) (Details) - Schedule of operations from oil producing activities - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of operations from oil producing activities [Abstract] | ||
Oil sales after royalties | ||
Production (Operating) expenses | ||
Depreciation, accretion and depletion | (41,629) | (44,457) |
Oil sales less expenses | (41,629) | (44,457) |
Income tax expenses | ||
Results of operations from producing activities | $ (41,629) | $ (44,457) |
Legal Actions (Details)
Legal Actions (Details) | 12 Months Ended |
Sep. 30, 2020 | |
Legal Actions Disclosure [Abstract] | |
Plaintiff statement of claim, description | On October 28, 2019, Provident Premier Master Fund Ltd. (the “Plaintiff”), filed and served an Amended Statement of Claim against Northern Alberta Oil Ltd., Deep Well Oil & Gas (Alberta) Ltd., Andora Energy Corporation and MP Energy West Canada Corp. (the “Defendants”) in the Court of Queen’s Bench of Alberta Judicial District of Calgary. The Original Statement of Claim had been filed on November 1, 2018 but the Company states that it was never served, so the Company was not aware of the claim until served with the Amended Statement of Claim. The Plaintiff claims that on December 12, 2003, Nearshore Petroleum Corporation (“Nearshore”) entered into a royalty agreement with Northern Alberta Oil Ltd. (“Northern”) in which Northern supposedly granted a 6.5% gross overriding royalty (the “Purported GORR”) in all petroleum substances produced, saved and marketed from certain oil sands leases located within the Company’s Sawn Lake properties. The Plaintiff further claims that on September 22, 2006, Nearshore and Gemini Strategies LLC (“Gemini”) entered into a royalty conveyance agreement whereby Nearshore sold 1% of the Purported GORR to Gemini. The Plaintiff further states that Gemini acquired the 1% of the Purported GORR as agent for Provident, Grey K Fund LP (“Grey K”) and Grey K Offshore Fund Ltd. (“Grey K Offshore”). The Plaintiff further claims that on September 22, 2006, Gemini delivered a notice of assignment, in accordance with the 1993 Canadian Association of Petroleum Landmen Assignment Procedure (the “1993 CAPL”), to the grantors of the 1% of the Purported GORR, novating Provident (66.67%, net 0.6667%), Grey K (19.33%, net 0.1933%) and Grey K Offshore (14%, net 0.14%) into the Purported GORR agreement. The Plaintiff further claims that on September 2, 2009, any legal title in the Purported GORR beneficially owned by Grey K and Grey K Offshore vested in the Crown in right of Alberta pursuant to Section 229(1) of the Business Corporations Act and pursuant to section 15 of the Unclaimed Personal Property and Vested Property Act. The Plaintiff further claims that the Purported GORR was payable by one or more of the Defendants to Provident and that the Defendants are in breach of the Purported GORR agreement by failing to pay the Purported GORR. Despite the allegation within the claim that the Purported GORR was payable to each of Provident, Grey K and Grey K Offshore, the only Plaintiff named in the Amended Statement of Claim is Provident and relief is only being sought by Provident in relation to its purported 0.67% interest. |
Claim percentage | 0.67% |
Plaintiff statement of claim, description | The Plaintiff seeks: 1) A declaration that the Plaintiff is the legal owner of 0.67% of the Purported GORR payable on all oil sands produced from the lands which is payable by one or more of the Defendants; 2) An accounting to determine the amount of the outstanding royalty of which judgment is estimated by the Plaintiff to be in the amount of $74,970 ($100,000 Cdn); and 3) Interest and costs. |
Defendants declaration, description | The Company continues to deny the validity of the Purported GORR in the first instance. As well, if the Purported GORR was valid, which is denied, it was not a gross overriding interest, but rather an overriding interest, which allowed for the deduction of operating and marketing costs. The Company plans to vigorously defend itself against the Plaintiff’s claims. As at September 30, 2020, no contingent liability has been recorded, as a successful outcome for the Plaintiff is not probable. |
Subsequent Events (Details)
Subsequent Events (Details) | Jun. 08, 2021USD ($)shares | Jun. 21, 2021USD ($) | Jun. 21, 2021CAD ($) | Mar. 18, 2021 | Dec. 18, 2020USD ($) | Dec. 18, 2020CAD ($) | Dec. 03, 2020 | Oct. 22, 2020 | Apr. 20, 2020USD ($) | Apr. 20, 2020CAD ($) | Mar. 31, 2020USD ($) | Jun. 19, 2018USD ($)$ / sharesshares | Jul. 31, 2013USD ($) | Sep. 30, 2020 |
Subsequent Events (Details) [Line Items] | ||||||||||||||
Received a loan | $ 29,988 | $ 40,000 | ||||||||||||
Sale of stock, description | As previously disclosed in the Company’s Annual Report on Form 10-K for the year ending September 30, 2019, between June 8 to 10, 2018, five directors, two contractors and one employee of the Company, exercised a total of 3,150,000 option shares at an exercise price of $0.05 by way of a cashless exercise to acquire a total of 899,998 common shares of the Company. | |||||||||||||
Administrative expenses | $ 30,000 | $ 30,000 | ||||||||||||
Subsequent Event [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Percentage of purported overriding royalty | 6.50% | |||||||||||||
Plaintiff Statement of Claim, description | 1) A declaration that the Plaintiff is the legal owner of 0.67% of the Purported GORR payable on all oil sands produced from the lands which is payable by one or more of the Defendants; 2) As stated in Clause 18(b) of the Second Amended Statement of Claim, an accounting to determine the amount of the outstanding royalty; 3.) Judgment or restitution in the amount determined pursuant to clause 18(b) in the approximate amount of $74,970 ($100,000 Cdn) plus such further amounts as come due following the filing of the action; and 4) Interest and costs. | |||||||||||||
Farmout Agreement Type [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Farmee administrative costs owed to farmor | $ 345,000 | |||||||||||||
Director [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Number of directors | 1 | |||||||||||||
Shares to be returned to treasury (in Shares) | shares | 300,000 | |||||||||||||
Exercise price (in Dollars per share) | $ / shares | $ 0.05 | |||||||||||||
Gross proceed of shares acquired | $ 15,000 | |||||||||||||
Forecast [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Additional received a loan | $ 14,994 | $ 20,000 | ||||||||||||
Plaintiff Statement of Claim, description | The Plaintiff claims that the Defendants owe the Plaintiff $100,316 ($133,808 Cdn) for unpaid joint interest billings. The Plaintiff seeks: 1.) Judgment, or alternatively damages, in the amount of the indebtedness, or such further amounts as may be due and owing as at the date of trail; 2.) Interest on the amount found to be owing; 3.) Costs of this action; and 4.) Such further and other relief as counsel may advise and the court deems just. | |||||||||||||
Plaintiff statement of claim, description | Andora Energy Corporation (the “Plaintiff”), filed an Application for Summary of Judgment and Affidavit to support the Application for Summary of Judgment against Northern Alberta Oil Ltd. and Deep Well Oil & Gas (Alberta) Ltd. (the “Defendants”) in the Court of Queen’s Bench of Alberta Judicial District of Calgary. The Plaintiff seeks the repayment of outstanding joint interest billings pursuant to a joint operating agreement between the parties (the “JOA”). The Plaintiff seeks an Order granting the following relief: 1.) summary judgment in favour of Plaintiff as against the Defendant Northern Alberta Oil Ltd. in the amount of $98,367 ($131,209 Cdn); 2.) summary judgment in favour of Plaintiff as the Defendant Deep Well Oil & Gas (Alberta) Ltd. in the amount of $14,777 ($19,710 Cdn); 3.) interest on the amounts pursuant to the contractual interest rate prescribed by the JOA, or alternatively, pursuant to the Judgement Interest Act RSA 2000, c J-1; 4.) costs of this Action, including costs of this Application, on such basis as the Court deems appropriate; and 5.) such further and other relief as counsel may advices and the Court may deem just. | |||||||||||||
Defendants claim | $ 128,597 | $ 171,531 | ||||||||||||
Forecast [Member] | Director [Member] | ||||||||||||||
Subsequent Events (Details) [Line Items] | ||||||||||||||
Received a loan | $ 15,000 | |||||||||||||
Return shares to treasury (in Shares) | shares | 1,199,998 |
Subsequent Events (Details) - S
Subsequent Events (Details) - Schedule of quarterly payments - Feb. 28, 2021 - Forecast [Member] | USD ($) | CAD ($) |
Subsequent Events (Details) - Schedule of quarterly payments [Line Items] | ||
2021 Q2 (January - March) | $ 1,612 | $ 2,150 |
2021 Q3 (April - June) | $ 2,418 | $ 3,225 |