COMMITMENTS

12 Months Ended

Sep. 30, 2016

COMMITMENTS [Abstract]

COMMITMENTS

NOTE 13: COMMITMENTS

See Note 9.

(a)	The Company, as an owner or lessee and operator of oil and gas properties, is subject to various federal, state and local laws and regulations relating to discharge of materials into, and protection of, the environment. These laws and regulations may, among other things, impose liability on the lessee under an oil and gas lease for the cost of pollution clean-up resulting from operations and subject the lessee to liability for pollution damages. In some instances, the Company may be directed to suspend or cease operations in the affected area. The Company maintains insurance coverage, which it believes is customary in the industry, although the Company is not fully insured against all environmental risks. The Company is not aware of any environmental claims existing as of September 30, 2016, which have not been provided for, covered by insurance or otherwise have a material impact on its financial position or results of operations. There can be no assurance, however, that current regulatory requirements will not change, or past noncompliance with environmental laws will not be discovered on the Company’s properties.
(b)	On June 10, 2011, the Company commenced a lease agreement for a period of 62 months. The monthly base rate begins at $2,750 and increases every 12 months at the average rate of $3,208 per month over the term of the lease. Lease expense for the year ended September 30, 2016 under this lease was $64,160 (2015 - $59,739).
(c)	On June 1, 2016, the Company commenced a lease agreement for a period of 36 months. The monthly base rate begins at $2,346 and increases to $2,529 per month for the last 12 months. Lease expense for the year ended September 30, 2016 under this lease was $15,000 (2015 - $nil). Lease payments at the monthly base rate for the remainder of the lease term are as follows:

2017	$	28,182
2018	$	28,881
2019	$	20,230

(d) On December 14, 2012, the Company reached a preliminary settlement with Ms. Billie Eustice, whereby it is contemplated that the Company will pay Ms. Eustice $150,000 over four years beginning January 28, 2013 in 48 equal monthly installments in settlement of all outstanding matters and issues between Ms. Eustice and the Company, including the balance owing on the consulting agreement in the amount of $125,000, oil barrels in the tanks at time of purchase, and a refund of $12,000 that was a tax refund prior to the purchase of Provident Energy and cashed by Provident Energy after the purchase. During the year ended September 30, 2013, the Company recorded a loss of $29,165 on settlement of debt which represents the difference between the amount recorded in accounts payable before the settlement and the agreed settlement amount of $150,000. During the year ended September 30, 2016, the Company repaid a total of $37,500 (2015 - $37,500) to Ms. Eustice. At September 30, 2016, there is a total balance owing of $9,375. The following principal payments are required:

2017 $  9,375