Annual report pursuant to Section 13 and 15(d)

Related Party Notes Payable (Tables)

Related Party Notes Payable (Tables)
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Schedule of Related Party Notes Payable

The chart below summarizes the related party Notes Payable as of December 31, 2018 and 2017.


    Interest rate     Date of maturity   December 31, 2018     December 31, 2017  
Leo Womack (i)         On demand     3,000        
Lee Lytton (i)         On demand     3,500       3,500  
Quinten Beasley     10 %   October 14, 2016     10,000       10,000  
Joel Oppenheim (i)         On demand     215,333       47,000  
Jovian Petroleum Resources (i)         On demand           146,600  
Bow (i)         On demand     33,144        
Blue Sky Resources (i)         On demand     131,699        
Jovian Petroleum Resources (ii)     3.5 %   February 9, 2019     35,210        
Ivar Siem (iii)     12 %   October 17, 2018     20,000        
Joel Oppenheim (iii)     12 %   October 17, 2018     10,000        
Blue Sky Resources (iv)     9 %   May 31, 2019     148,862        
                $ 610,748     $ 207,100  


  (i) Balances are non-interest bearing and due on demand.


  (ii) On February 9, 2018, the Company entered into a Revolving Line of Credit Agreement (“LOC”) for $200,000 (subsequently increased to $500,000 on April 12, 2018) with Jovian Petroleum Corporation. The CEO of Jovian is Quinten Beasley, our former director (resigned October 31, 2018), and 25% of Jovian is owned by Zel C. Khan, our CEO and director. The initial agreement is for a period of 6 months and can be extended for up to 5 additional terms of 6 months each. All amounts advanced pursuant to the LOC will bear interest from the date of advance until paid in full at 3.5% simple interest per annum. Interest will be calculated on a basis of a 360-day year and charged for the actual number of days elapsed. Subsequent to year-end this LOC has been extended until December 31, 2019.


  (iii) On August 17, 2018, the Company sold an aggregate of $90,000 in convertible promissory notes (the “Director Convertible Notes”), to the Company’s directors, Ivar Siem ($20,000) through an entity that he is affiliated with; Leo Womack ($60,000); and Joel Oppenheim ($10,000). The Director Convertible Notes accrue interest at the rate of 12% per annum until paid in full and were due and payable on October 17, 2018. The amount owed may be prepaid at any time without penalty. The outstanding principal and interest owed under the Director Convertible Notes are convertible into common stock of the Company, from time to time, at the option of the holders of the notes, at a conversion price of $0.10 per share. As additional consideration for entering into the notes, the Company agreed to grant warrants to purchase one share of the Company’s common stock at an exercise price of $0.10 per share for each dollar loaned pursuant to the Director Convertible Notes (the “Bridge Note Warrants”). The warrants had a contractual life of one year. As such, the Company granted (a) 20,000 Bridge Note Warrants to an entity affiliated with Ivar Siem; (b) 60,000 Bridge Note Warrants to Leo Womack; and (c) 10,000 Bridge Note Warrants to Joel Oppenheim. The Director Convertible Notes contain standard and customary events of default. The Company fair valued the warrants issued using the Black-Scholes Option Pricing Model for a total fair value of $6,249. On October 22, 2018, $60,000 in Director Convertible Notes were settled by offsetting against $60,000 proceeds required for the exercise of warrants.


  (iv) On June 8, 2018, the Company entered into the Acquisition Note with Blue Sky in the amount of CAD$406,181. The Note bears interest at 9% per annum and is due in full at maturity on November 30, 2018. The Company may, at its sole discretion, extend the maturity date for a period of six months with notice to the lender and payment of 25% of the principal amount. At December 31, 2018, the maturity date had been extended to May 31, 2019. On April 1, 2019, the Company utilized its LOC with Jovian to pay off in its entirety the June 8, 2018 Acquisition Note with Blue Sky.
Schedule of Future Minimum Repayments of Related Party Notes Payable

The following is a schedule of future minimum repayments of related party notes payable as of December 31, 2018:


2019   $ 610,748  
    $ 610,748