Notes Payable

9 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Notes Payable

NOTE 6 – NOTES PAYABLE

Notes payable, all classified as current at June 30, 2017 and September 30, 2016, consists of the following:

	June 30, 2017						September 30, 2016
			Accrued						Accrued
	Principal		Interest		Total		Principal		Interest		Total
Lane Ventures	$	488	$	89	$	577	$	488	$	45	$	533
Alpha Capital		40,010		6,024		46,034		40,010		2,419		42,429
Alpha Capital		37,037		7,927		44,964		37,037		5,711		42,748
Alpha Capital		7,315		2,460		9,775		7,315		681		7,996
Alpha Capital		10,000		388		10,388		-		-		-
Alpha Capital		12,510		736		13,246		-		-		-
Lane Ventures		2,469		603		3,072		2,469		381		2,850
Total	$	109,829	$	18,227	$	128,056	$	87,319	$	9,237	$	96,556

Related Party	June 30, 2017						September 30, 2016
			Accrued						Accrued
	Principal		Interest		Total		Principal		Interest		Total
Mill City Venture	$	5,195	$	951	$	6,146	$	5,195	$	484	$	5,679
Mill City Venture		30,000		6,940		36,940		30,000		5,125		35,125
Mill City Venture		24,691		3,385		28,076		24,691		1,161		25,852
Mill City Venture		10,000		931		10,931		-		-		-
Mill City Venture		10,000		1,387		11,387		-		-		-
Mill City Venture		12,500		814		13,314		-		-		-
Total	$	92,386	$	14,408	$	106,794	$	59,886	$	6,770	$	66,656

On June 15, 2015, the Company received funds from a demanded Promissory Note (the “Note”) that it entered into on June 8, 2015 in the amount of $99,999 in favor of Pacific Oil & Gas, LLC (the “Lender”). The Note bears an interest rate of 12% per annum and all principal and accrued interest will be due and payable by the Company to the Lender on December 31, 2015. The Note is secured by a Mortgage, Deed of Trust, Assignment of Production, Security Agreement and Financing Statement that was filed on June 25, 2015 against the Company’s Evans 9-1 lease in McPherson County, Kansas. The trustee of the Lender is the Company’s director, Clancy Cottman, and the funds delivered to the Company by the Lender were provided by a group of the Company’s Series A 6% Convertible Preferred shareholders. As of June 30, 2017, the Company received proceeds of $97,500. On January 26, 2016, Lender extended the maturity date to March 1, 2016. During the period ended May 26, 2016, the Company accrued $10,849 interest expense under this note. On May 26, 2016, as part of the PCA (see Note 2), the Lender forgave the principal and interest of $110,848. On May 10, 2016, the Company and the Lender (a company managed by Clancy Cottman, the Company’s then-director), restated the Pacific Note by assigning the amounts due to four different creditors based on their initial participation in the Pacific Note as reflected in the Restated Pacific Note (see Note 5). The restated Pacific note was accounted for by separate notes. The balance of $39,771 (includes principal and accrued interest) that was forgiven was offset to additional paid-in capital.

As part of the settlement with the Preferred Shareholders, and in association with the PCA, on May 10, 2016 certain creditors of the Company agreed to release and waive all amounts owed to them by the Company, including all amounts owed to Pacific Oil & Gas, LLC under the Restated Pacific Note.

On December 22, 2015, the Company entered into a promissory note with Mill City Ventures III, Ltd. for $5,195. The note matures on December 22, 2016 and bears interest at the rate of 12%. As of June 30, 2017, the accrued interest was $951. This note is in default as of June 30, 2017.

On December 22, 2015, the Company entered into a promissory note with Chisholm Partners II, LLC for $7,002. The note matures on December 22, 2016 and bears interest at the rate of 12%. During the period ended May 26, 2016, the Company accrued $322 interest expense under this note. On May 26, 2016, as part of the PCA (see Note 2), the Lender forgave the principal and interest of $7,324 as offset to additional paid-in capital. This note is in default as of June 30, 2017.

On December 22, 2015, the Company entered into a promissory note with Lane Ventures, Inc. for $488. The note matures on December 22, 2016 and bears interest at the rate of 12%. During the nine months ended June 30, 2017, the Company accrued $15 interest expense under this note. As of June 30, 2017, the accrued interest was $89. This note is in default as of June 30, 2017.

On December 22, 2015, the Company entered into a promissory note with Alpha Capital Anstalt for $7,315. The note matures on December 22, 2016 and bears interest at the rate of 12%. During the nine months ended June 30, 2017, the Company accrued $221 interest expense under this note. As of June 30, 2017, the accrued interest was $2,460. This note is in default as of June 30, 2017.

On February 17, 2016, the Company entered into a promissory note with Mill City Ventures III, Ltd. for $30,000. The note matures on January 28, 2017 and bears interest at the rate of 12%. During the nine months ended June 30, 2017, the Company accrued $907 interest expense under this note. As of June 30, 2017, the accrued interest was $6,940. This note is in default as of June 30, 2017. See Note 5.

On March 30, 2016, the Company entered into a promissory note with Alpha Capital Anstalt for $40,010. The note matures on March 30, 2017 and bears interest at the rate of 12%. During the nine months ended June 30, 2017, the Company accrued $1,210 interest expense under this note. As of June 30, 2017, the accrued interest was $6,024.

On October 18, 2016, the Company entered into a promissory note with Mill City for $10,000. The promissory note bears an interest rate of 12% per annum and all principal and accrued interest of $11,200 will be due and payable by the Company to Mills City on October 17, 2017. As of June 30, 2017, the accrued interest was $1,387. See Note 5.

On December 16, 2016, the Company entered into a promissory note with Mill City for $12,500. The note is payable on December 15, 2017 in the amount of $14,000. The note bears interest of 12% which is payable on December 15, 2017. As of June 30, 2017, the accrued interest was $814. See Note 5.

On December 22, 2016, the promissory notes with Mill City, Ltd., Lane Ventures, Inc., and Alpha Capital Anstalt, matured, and are in default (see Note 5).

On January 4, 2017, the Company entered into a promissory note with Alpha Capital Anstalt for $12,510. The note is payable on January 3, 2018 in the amount of $14,000. The note bears interest of 12%. As of June 30, 2017, the accrued interest was $736.

On January 31, 2017, the Company entered into a promissory note with Mill City for $10,000. The note is payable on January 31, 2018. The note bears interest of 12%. As of June 30, 2017, the accrued interest was $931.

On March 6, 2017, the Company entered into a promissory note with Alpha Capital Anstalt for $10,000. The note is payable on March 6, 2018. The note beards interest of 12%. As of June 30, 2017, the accrued interest was $388.

On May 10, 2016, the Company and one of its creditors, Pacific Oil & Gas Company, LLC (a company managed by Clancy Cottman, the Company’s then-director), restated the Pacific Note by assigning the amounts due to three different creditors based on their initial participation in the Pacific Note. The reallocation in the Restated Promissory Note (the “Restated Pacific Note”) is as follows:

Name of Creditor	Amount of Principal Due		Amount of Interest Due		Total Amount Due
Alpha Capital Anstalt	$	37,037	$	7,927	$	44,964
Lane Ventures Inc.	$	2,469	$	603	$	3,072
Mill City Ventures III, Ltd	$	24,691	$	3,385	$	28,076

As of June 30, 2017, these notes are in default.