Oil and Gas Properties	12 Months Ended
Jul. 31, 2019
Extractive Industries [Abstract]
Oil and Gas Properties	*Active Projects:* *J.E. Richey Lease - Coleman County – Three well rework/re-completion project* We hold a 24% working interest in one producing well (“Concho Richey #1”) on the lease and a 100% working interest in the remainder of the 206-acre J. E Richey Lease. The Concho Richey #1 well is currently producing 2.8 barrels of oil and 16 MCF of gas per day. The Richey #1 well was plugged on January 3, 2018. As of July 31, 2019, management determined that the $50,000 asset carried on the balance sheet was impaired resulting in a loss on impairment of $21,200 lowering the value of the investment in the Richey lease to $28,800. Further work is planned during the next fiscal year on the J. E. Richey lease on well #3 in an effort to improve its production of oil and natural gas. *Olson Lease, Jones County, Texas:* We have a 100% interest in the 160-acre oil and gas Olsen lease located in the north central part of Jones County, Texas. The principal target formation is the Palo Pinto Reef. The Palo Pinto Reef is a known productive formation in the area with a high yield of cumulative oil production. An example in the area is the Strand Oil Field which is a Palo Pinto Reef Oil Field. The field discovered in 1940, consists of only 8 wells on approximately 160 acres produced a total of 1,700,000 barrels of oil, an average of 212,500 barrels of oil per oil well. The 160 Olson Lease lies approximately 1.5 miles southeast of the Strand Palo Pinto Reef Oil Field. We held 100% of the working interest in this lease until it expiration date of April 27, 2019. No extension of its existing oil and gas lease was obtained and therefore the Olson lease expired prior to the Company's fiscal year ended July 31, 2019. All expenditures on this property had been expensed prior to its expiration. *89 Guy #4 Well – Cased Well* The 89 Guy Well #4 is located on the Guy Ranch property in Shackelford County. The well is an abandoned cased well that was drilled in October 2010 and completed in the Patio Sand at the interval of 3,144’ - 3,154’. This interval produced 2 barrels of oil and 20 thousand cubic feet of natural gas from a 100 sac gel frac. The interval perforated (3,144 – 3,154’) is above the best productive part of the formation. The cased well was purchased from the mineral owner through an independent geologist followed by an application to the Texas Railroad Commission to assume liability of the case well. Kathis Energy owns 100% of the working interest with a 75% net revenue interest in the 20-acre lease with the cased well. On April 16, 2018, Kathis Energy acquired the 89 Guy Well #4 located on a 20-acre tract on the Guy Ranch property in Shackelford County, Texas. Kathis paid $22,500 for the cased well. A completion attempt during the fiscal year ended July 31, 2019 to re-complete in the 3,144’-3,154’ interval recovered very nominal oil production. No further work has been conducted subsequent to July 31, 2019 and is currently being evaluated to place into production or plug the well and salvage equipment. All expenditures on this property have been expensed. *McClure 2B – Gas Well – Palo Pinto County, Texas* On February 6, 2018 the Company acquired the McClure # 2B producing gas well on a 40 -acre oil & gas lease located in Palo Pinto County near the Community of Graford, Texas. The McClure 2B well was drilled in 2006 to a total depth of 4,739’ and was re-completed in the Strawn formation in January 2011. The McClure 2B gas well is among a large number of gas wells that are producing in the area from the Strawn formation. The location of the McClure 2B gas well is 1 mile southwest of the Community of Graford, Texas in Palo Pinto County on a 40 acre tract. The lease is off a main county road and the lease road can have washouts depending on the amount of rain as the McClure 2B gas well is on top of a hill. There are two natural gas lines 1) high pressure and the 2) is low pressure. On December 31, 2018 the Company entered into an agreement with a third party whereby the Company received $85,900 to rework the McClure 2B gas well. In consideration for the $85,900 the Company issued 859,000 shares of its common stock and agreed to convey 100% of the revenues from the sale of natural gas until the investment capital was recovered then revert to a 60/40 split in favor of the third party. On July 31, 2019 the Company entered into an agreement with the operator of the lease to assume the obligations of the December 31, 2018 agreement entered into with a third party to perform certain work in exchange for share of the Company’s common stock. As a result of this transaction the Company recognized a $25,250 loss on the property. *Carter & Foster Wells – Producing* During the fiscal year ended July 31, 2018 the Company acquired the Carter and Foster wells located west of the Community of Atwell, Texas in Callahan County. The Carter lease consists of 40 acres and has one well. The Foster lease has 10 acres around each well of the three wells, all of which are fully equipped with surface and subsurface equipment. All four wells are completed in the Palo Pinto Limestone formation at approximately 1,900 feet. The wells on the Carter and Foster leases were drilled in 1992-93. Most of the wells were treated with 5,000 gallons of 21% acid and yielded initial rates of production of 40 barrels of oil per day then gradually declined to 3 barrels per day by the end of the first year. The wells now are 25 plus years old and are producing 90% or better oil cut in the fluid being produced. The production is very nominal at the present time however no secondary acid stimulation has been conducted since they were originally brought into production in the early 1990’s. All four wells on the Carter and Foster leases are fully equipped and have their own production facilities and have electricity to each of the wells. On December 30, 2018 the Company entered into an agreement with a third party whereby the Company received $60,000 to rework the Carter and Foster wells. In consideration for the $60,000 the Company issued 600,000 shares of its common stock and agreed to convey 100% of the revenues from the sale of crude oil sales until the investment capital was recovered then revert to a 60/40 split in favor of the third party. On July 31, 2019 the Company entered into an agreement with the operator of the lease to assume the obligations of the agreement entered into with a third party to perform certain work in exchange for shares of the Company’s common stock.

Oil and Gas Properties

12 Months Ended

Jul. 31, 2019

Active Projects:

J.E. Richey Lease - Coleman County – Three well rework/re-completion project

We hold a 24% working interest in one producing well (“Concho Richey #1”) on the lease and a 100% working interest in the remainder of the 206-acre J. E Richey Lease. The Concho Richey #1 well is currently producing 2.8 barrels of oil and 16 MCF of gas per day.

The Richey #1 well was plugged on January 3, 2018. As of July 31, 2019, management determined that the $50,000 asset carried on the balance sheet was impaired resulting in a loss on impairment of $21,200 lowering the value of the investment in the Richey lease to $28,800.

Further work is planned during the next fiscal year on the J. E. Richey lease on well #3 in an effort to improve its production of oil and natural gas.

Olson Lease, Jones County, Texas:

We have a 100% interest in the 160-acre oil and gas Olsen lease located in the north central part of Jones County, Texas. The principal target formation is the Palo Pinto Reef. The Palo Pinto Reef is a known productive formation in the area with a high yield of cumulative oil production. An example in the area is the Strand Oil Field which is a Palo Pinto Reef Oil Field. The field discovered in 1940, consists of only 8 wells on approximately 160 acres produced a total of 1,700,000 barrels of oil, an average of 212,500 barrels of oil per oil well. The 160 Olson Lease lies approximately 1.5 miles southeast of the Strand Palo Pinto Reef Oil Field. We held 100% of the working interest in this lease until it expiration date of April 27, 2019. No extension of its existing oil and gas lease was obtained and therefore the Olson lease expired prior to the Company's fiscal year ended July 31, 2019. All expenditures on this property had been expensed prior to its expiration.

89 Guy #4 Well – Cased Well

The 89 Guy Well #4 is located on the Guy Ranch property in Shackelford County. The well is an abandoned cased well that was drilled in October 2010 and completed in the Patio Sand at the interval of 3,144’ - 3,154’. This interval produced 2 barrels of oil and 20 thousand cubic feet of natural gas from a 100 sac gel frac. The interval perforated (3,144 – 3,154’) is above the best productive part of the formation. The cased well was purchased from the mineral owner through an independent geologist followed by an application to the Texas Railroad Commission to assume liability of the case well.

Kathis Energy owns 100% of the working interest with a 75% net revenue interest in the 20-acre lease with the cased well. On April 16, 2018, Kathis Energy acquired the 89 Guy Well #4 located on a 20-acre tract on the Guy Ranch property in Shackelford County, Texas. Kathis paid $22,500 for the cased well. A completion attempt during the fiscal year ended July 31, 2019 to re-complete in the 3,144’-3,154’ interval recovered very nominal oil production. No further work has been conducted subsequent to July 31, 2019 and is currently being evaluated to place into production or plug the well and salvage equipment. All expenditures on this property have been expensed.

McClure 2B – Gas Well – Palo Pinto County, Texas

On February 6, 2018 the Company acquired the McClure # 2B producing gas well on a 40 -acre oil & gas lease located in Palo Pinto County near the Community of Graford, Texas. The McClure 2B well was drilled in 2006 to a total depth of 4,739’ and was re-completed in the Strawn formation in January 2011. The McClure 2B gas well is among a large number of gas wells that are producing in the area from the Strawn formation.

The location of the McClure 2B gas well is 1 mile southwest of the Community of Graford, Texas in Palo Pinto County on a 40 acre tract. The lease is off a main county road and the lease road can have washouts depending on the amount of rain as the McClure 2B gas well is on top of a hill. There are two natural gas lines 1) high pressure and the 2) is low pressure.

On December 31, 2018 the Company entered into an agreement with a third party whereby the Company received $85,900 to rework the McClure 2B gas well. In consideration for the $85,900 the Company issued 859,000 shares of its common stock and agreed to convey 100% of the revenues from the sale of natural gas until the investment capital was recovered then revert to a 60/40 split in favor of the third party. On July 31, 2019 the Company entered into an agreement with the operator of the lease to assume the obligations of the December 31, 2018 agreement entered into with a third party to perform certain work in exchange for share of the Company’s common stock. As a result of this transaction the Company recognized a $25,250 loss on the property.

Carter & Foster Wells – Producing

During the fiscal year ended July 31, 2018 the Company acquired the Carter and Foster wells located west of the Community of Atwell, Texas in Callahan County. The Carter lease consists of 40 acres and has one well. The Foster lease has 10 acres around each well of the three wells, all of which are fully equipped with surface and subsurface equipment. All four wells are completed in the Palo Pinto Limestone formation at approximately 1,900 feet.

The wells on the Carter and Foster leases were drilled in 1992-93. Most of the wells were treated with 5,000 gallons of 21% acid and yielded initial rates of production of 40 barrels of oil per day then gradually declined to 3 barrels per day by the end of the first year. The wells now are 25 plus years old and are producing 90% or better oil cut in the fluid being produced. The production is very nominal at the present time however no secondary acid stimulation has been conducted since they were originally brought into production in the early 1990’s. All four wells on the Carter and Foster leases are fully equipped and have their own production facilities and have electricity to each of the wells. On December 30, 2018 the Company entered into an agreement with a third party whereby the Company received $60,000 to rework the Carter and Foster wells. In consideration for the $60,000 the Company issued 600,000 shares of its common stock and agreed to convey 100% of the revenues from the sale of crude oil sales until the investment capital was recovered then revert to a 60/40 split in favor of the third party. On July 31, 2019 the Company entered into an agreement with the operator of the lease to assume the obligations of the agreement entered into with a third party to perform certain work in exchange for shares of the Company’s common stock.