XML 26 R15.htm IDEA: XBRL DOCUMENT v3.19.1
Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Related Party Policy [Policy Text Block]
Related party policy
 
In accordance with ASC
850,
the Company discloses: the nature of the related party relationship(s) involved; a description of the transactions, including transactions to which
no
amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and amounts due from or to related parties as of the date of each balance sheet presented and, if
not
otherwise apparent, the terms and manner of settlement.
Revenue from Contract with Customer [Policy Text Block]
Revenue and Cost Recognition
 
The Company records revenues from the sales of natural gas and crude oil when the production is produced and sold, and also when collectability is ensured. The Company
may
in the future have an interest with other producers in certain properties, in which case the Company will use the sales method to account for gas imbalances. Under this method, revenue will be recorded on the basis of natural gas actually sold by the Company. The Company also reduces revenue for other owners’ natural gas sold by the Company that cannot be volumetrically balanced in the future due to insufficient remaining reserves. The Company’s remaining over- and under-produced gas balancing positions are considered in the Company’s proved oil and natural gas reserves. The Company had
no
gas imbalances at
March 31, 2019
or
December 31, 2018.
The Company recorded revenues of
$2,270
and
$1,540
and costs of revenues totaling
$2,902
and
$842
 during the
three
months ended
March 1, 2019
and
2018.
There were
no
accounts receivable at
March 31, 2019
and
December 31, 2018.
Derivatives, Policy [Policy Text Block]
Derivative Liabilities
 
The Company records a debt discount related to the issuance of convertible debts that have conversion features at adjustable rates. The debt discount for the convertible instruments is recognized and measured by allocating a portion of the proceeds as an increase in additional paid-in capital and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features. The debt discount will be accreted by recording additional non-cash gains and losses related to the change in fair market values of derivative liabilities over the life of the convertible notes.
New Accounting Pronouncements, Policy [Policy Text Block]
Accounting Standards Adopted During the Quarter Ended
March 31, 2019 
 
The Company adopted Accounting Standards Update (“ASU”)
No.
2016
-
02,
Leases (Topic
842
), as of
January 1, 2019,
using the modified retrospective approach.  The modified retrospective approach provides a method for recording existing leases at the application date.  In addition, the Company elected the available practical expedients permitted under the transaction guidance within the new standard.  There was
no
impact from the adoption of the new standard as the Company does
not
currently have any operating leases.
 
Recently Issued Accounting Standards
Not
Yet Adopted
 
The Company has reviewed all recently issued, but
not
yet adopted, accounting standards, in order to determine their effects, if any, on its results of operations, financial position or cash flows. Based on that review, the Company believes that
no
other pronouncements will have a significant effect on its financial statements.