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Going Concern
9 Months Ended
Sep. 30, 2017
Going Concern [Abstract]  
GOING CONCERN

2. GOING CONCERN

 

Financial Condition

 

The Company’s financial statements for the nine months ended September 30, 2017 have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities in the normal course of business. The Company has incurred net losses and as of September 30, 2017 has an accumulated deficit of $7,245,673 which raises substantial doubt about the Company’s ability to continue as a going concern. 

 

Management Plans to Continue as a Going Concern

 

Delta has signed a contract for the sale of 18% of Tartagal and Morillo properties in Argentina for a total of $2,000,000 in cash and $2,000,000 in royalties produced from the properties, of which Delta is the beneficiary to 75% of the sales price and the new owner of SAHF is the beneficiary to 25% of the sales price. $500,000 has already been transferred to Delta as a deposit. Management is working diligently to close this deal.

 

In the second and third quarters of 2017, Delta has loaned $300,000 in two 18-month promissory notes at 9% to 2 different oil and gas exploration and producing companies. Along with this loan, Delta also owns 3.5% of Second Chance Oil (“SCO”), a California company, and 3.75% carried interest in the first two re-entry wells to be drilled in a lease in West Texas by Landmaster Partners, Inc. (“Landmaster”). Both SCO and Landmaster Partners have commenced drilling in August 2017.

 

Delta anticipates that the contract with High Luck will close for the sale of Tartagal and Morillo before year-end, that the loans interest payments will continue to be received, that early loan paybacks will commence before year-end, and that the interests held in the Texas property will begin to payout before year-end. Management expects that all of these expected capital contribution streams will strengthen the Company’s liquidity, financial statements, and ability to continue operating. However, the Company cannot offer any assurance that it will be successful in executing the aforementioned plans to continue as a going concern. The Company’s financial statements as of September 30, 2017 do not include any adjustments that might result from the outcome of this uncertainty.