OIL AND GAS CONCESSIONS

9 Months Ended

Jun. 30, 2015

OIL AND GAS CONCESSIONS [Abstract]

OIL AND GAS CONCESSIONS

NOTE 3 – OIL AND GAS CONCESSIONS

The following is an analysis of the cost of oil and gas concessions at June 30, 2015 and September 30, 2014:

	June 30, 2015		September 30, 2014
DRSTP concession	$	3,113,795	$	3,113,795
Chad concession		2,829,870		2,800,600
Pending concessions in other African countries		131,093		91,840
	$	6,074,758	$	6,006,235

In October, 2013, the Company entered into a farm-out agreement with CEPSA Kenya Limited, an affiliate of Compañía Española de Petróleos, S.A.U., an international oil and gas company ("CEPSA"). Under the terms of this agreement, the Company assigned and transferred 55% of its participating interest in Kenya Block 11A to CEPSA. In connection with this farm-out, the Company recognized a gain of $239,515 of reimbursement of exploration costs incurred during the nine months ended June 30, 2015.

In exchange for the transferred rights, CEPSA will carry the Company's proportionate share of obligations and financial costs under the terms and conditions outlined in the farm-out agreement. The agreement was approved in January 2014 by the Kenyan Government and from February 2014, CEPSA took over from ERHC as operator under the production sharing contract ("PSC") for Kenya Block 11A.