Acquisition of Canadian Properties (Details Narrative) |
9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Sep. 17, 2018
USD ($)
|
Jun. 29, 2018
a
Number
|
Jun. 08, 2018 |
Jun. 01, 2018
USD ($)
|
Jun. 01, 2018
CAD ($)
|
May 09, 2018
USD ($)
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
|
Acquisition percentage | 3.00% | 25.00% | ||||||
Number of acres | a | 41,526 | |||||||
Description on properties | The Canadian Properties currently encompass 64 sections, with 240 oil and 12 natural gas wells currently producing on the properties. Additionally, there are several idle wells with potential for reactivation and 34 sections of undeveloped land (approximately 21,760 acres). | |||||||
Number of producing oil wells | Number | 240 | |||||||
Number of producing natural gas wells | Number | 12 | |||||||
Area of land | a | 41,526 | |||||||
Cash paid | $ 25,452 | $ 22,782 | ||||||
Debt instrument description | The Company entered into a Memorandum of Understanding ("MOU") with Blue Sky. Pursuant to the MOU, the Company acquired an additional 3% working interest in the Canadian Properties, increasing our Working Interest to 28%. Total consideration paid from the Company to Blue Sky for the additional 3% Working Interest was $150,000. | |||||||
Increased working interest | 28.00% | |||||||
Acquisition Note [Member] | ||||||||
Debt interest rate | 9.00% | |||||||
Debt instrument maturity date | Nov. 30, 2018 | |||||||
Debt instrument description | Extend the maturity date for a period six months with 10 days' notice to Blue Sky, in the event we pay 25% of the principal amount of the Acquisition Note at the time of extension. | |||||||
Loan Agreement [Member] | ||||||||
Promissory note | $ 200,000 | |||||||
Cash payment for working interest acquired | $ 1,530,000 | |||||||
Debt interest rate | 12.00% | 12.00% | ||||||
Debt default percentage | 19.00% | |||||||
Debt instrument maturity date | Oct. 17, 2019 | May 11, 2021 | May 11, 2021 | |||||
Undeveloped Land [Member] | ||||||||
Area of land | a | 21,760 | |||||||
Blue Sky [Member] | ||||||||
Acquisition percentage | 3.00% | 80.00% | ||||||
Cash payment for working interest acquired | $ 150,000 | |||||||
Blue Sky Resources Ltd [Member] | ||||||||
Acquisition consideration | $ 1,096,216 | |||||||
Cash paid | 782,441 | |||||||
Promissory note | 313,775 | |||||||
Blue Sky Resources Ltd [Member] | Canadian Dollars [Member] | ||||||||
Acquisition consideration | $ 1,428,581 | |||||||
Cash paid | $ 1,022,400 | |||||||
Promissory note | $ 406,181 |