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Document And Entity Information

v3.3.1.900
Document And Entity Information - shares
 9 Months Ended
Nov. 30, 2015
Jan. 14, 2016
Document And Entity Information [Abstract]    
Entity Registrant Name INTERNATIONAL WESTERN PETROLEUM, INC.  
Entity Central Index Key 0001603793  
Document Type 10-Q  
Document Period End Date Nov. 30, 2015  
Amendment Flag false  
Current Fiscal Year End Date --02-29  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   44,281,630
Trading Symbol IWPO  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2016  

Balance Sheets (Unaudited)

v3.3.1.900
Balance Sheets (Unaudited) - USD ($)
Nov. 30, 2015
Feb. 28, 2015
Current assets    
Cash $ 600,613 $ 41,783
Accounts receivable - oil and gas 26,605
Total current assets 627,218 $ 41,783
Oil and gas properties, full cost method    
Properties subject to amortization 471,438
Accumulated depletion (9,438)
Tot oil and gas properties, net $ 462,000
Pre-acquisition costs $ 88,000
Fixed asset $ 23,708
TOTAL ASSETS 1,112,926 $ 129,783
Current liabilities    
Accounts payable and accrued expenses 6,799 4,784
Advances from related party 3,070 3,070
Total current liabilities 9,869 $ 7,854
Long-term liabilities    
Asset retirement obligations 8,917
TOTAL LIABILITIES $ 18,786 $ 7,854
STOCKHOLDERS' EQUITY    
Preferred stock, $0.001 par value per share, 10,000,000 shares authorized; -0- shares issued and outstanding
Common stock, $0.001 par value per share, 90,000,000 shares authorized; 44,281,630 and 43,554,964 shares issued and outstanding on November 30, 2015 and February 28, 2015, respectively $ 44,282 $ 43,555
Additional paid-in capital 759,508 215,235
Retained earnings (accumulated deficit) 290,350 (136,861)
TOTAL STOCKHOLDERS' EQUITY 1,094,140 121,929
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,112,926 $ 129,783

Balance Sheets (Unaudited) (Parenthetical)

v3.3.1.900
Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Nov. 30, 2015
Feb. 28, 2015
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.001 $ 0.001
Preferred Stock, shares authorized 10,000,000 10,000,000
Preferred Stock, shares issued 0 0
Preferred Stock, shares outstanding 0 0
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 90,000,000 90,000,000
Common stock, shares issued 44,281,630 43,554,964
Common stock, shares outstanding 44,281,630 43,554,964

Statements of Operations (Unaudited)

v3.3.1.900
Statements of Operations (Unaudited) - USD ($)
 3 Months Ended 9 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2015
Nov. 30, 2014
REVENUES:        
Oil and gas sales $ 53,110 $ 146,174
Consulting services - related party 81,100 583,100
TOTAL REVENUES 134,210 729,274
OPERATING EXPENSES:        
Lease operating expenses 87,830 194,490
Professional fees 20,823 $ 10,131 65,998 $ 25,681
Other general and administrative expenses 14,734 $ 6,090 30,866 $ 29,432
Depletion and accretion 4,871 10,709
TOTAL OPERATING EXPENSES 128,258 $ 16,221 302,063 $ 55,113
NET INCOME (LOSS) $ 5,952 $ (16,221) $ 427,211 $ (55,113)
Net income (loss) per common share - basic and diluted $ 0.00 $ (0.00) $ 0.01 $ (0.00)
Weighted average number of common shares outstanding - basic and diluted 44,281,630 43,507,790 44,079,182 43,419,982

Statements of Cash Flows (Unaudited)

v3.3.1.900
Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Nov. 30, 2015
Nov. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ 427,211 $ (55,113)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depletion and accretion 10,709
Changes in operating assets and liabilities:    
Accounts receivable - oil and gas (26,605)
Accounts payable and accrued expenses 2,015 $ 4,750
NET CASH PROVIDED (USED) IN OPERATING ACTIVITIES 413,330 $ (50,363)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of fixed asset $ (24,500)
Pre-acquisition costs $ (88,000)
NET CASH USED IN INVESTING ACTIVITIES $ (24,500) (88,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Advances from related party 13,000
Payments for related party advances (22,250)
Proceeds from issuance of common stock $ 170,000 215,522
NET CASH PROVIDED BY FINANCING ACTIVITIES 170,000 206,272
INCREASE IN CASH 558,830 $ 67,609
CASH - BEGINNING OF PERIOD 41,783
CASH - END OF PERIOD $ 600,613 $ 67,609
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid for income taxes
Cash paid for interest
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Common stock issued for acquisition of oil and gas properties $ 375,000
Reclassification of pre-acquisition costs to oil and gas properties 88,000
Asset retirement obligations from acquisition of oil and gas properties 6,067
Asset retirement obligations from drilling of additional wells $ 2,371

Organization, Nature of Operations and Summary of Significant Accounting Policies

v3.3.1.900
Organization, Nature of Operations and Summary of Significant Accounting Policies
 9 Months Ended
Nov. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Nature of Operations and Summary of Significant Accounting Policies

Note 1 – Organization, Nature of Operations and Summary of Significant Accounting Policies

 

International Western Petroleum, Inc. (“IWP” or the “Company”) was incorporated on February 19, 2014 as a Nevada corporation. The Company was formed to conduct operations in the oil and gas industry.

 

The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission and should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended February 28, 2015. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the unaudited interim consolidated financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year as reported in the Form 10-K have been omitted.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expense during the period. Actual results could differ from those estimates.

 

Fair Value of Financial Instruments

 

The carrying amount of the Company’s accounts payable and accrued expenses and advances from officer approximates its estimated fair value due to the short-term nature of that financial instrument.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company had $600,613 and $41,783 of cash and cash equivalents at November 30, 2015 and February 28, 2015, respectively.

 

Concentrations of Credit Risk

 

Financial instruments which potentially subject the Company to concentrations of credit risk include cash deposits placed with financial institutions. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits as guaranteed by the Federal Deposit Insurance Corporation (FDIC). At November 30, 2015, $348,908 of the Company’s cash balances were uninsured. The Company has not experienced any losses on such accounts.

 

Accounts Receivable

 

Accounts receivable typically consist of oil and gas receivables. The Company has classified these as short-term assets in the balance sheet because the Company expects repayment or recovery within the next 12 months. The Company evaluates these accounts receivable for collectability considering the results of operations of these related entities and when necessary records allowances for expected unrecoverable amounts. To date, no allowances have been recorded.

 

Oil and Gas Properties

 

The Company follows the full cost method of accounting for its investments in oil and gas properties, whereby all costs incurred in connection with the acquisition, exploration for and development of petroleum and natural gas reserves, including unproductive wells, are capitalized. Such costs include lease acquisition, geological and geophysical activities, rentals on non-producing leases, drilling, completing and equipping of oil and gas wells and administrative costs directly attributable to those activities, and asset retirement costs. General and administrative costs related to production and general overhead are expensed as incurred.

 

Disposition of oil and gas properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capital costs and proved reserves of oil, in which case the gain or loss is recognized in the statement of operations.

 

Future development, site restoration, dismantlement and abandonment costs, are estimated property by property, based upon current economic conditions and regulatory requirements, and are included in amortization of our oil and natural gas property costs.

 

Depletion of capitalized oil properties and estimated future development costs, excluding unproved properties, are based on the unit-of-production method based on proved reserves.

 

At the end of each quarter, the unamortized cost of oil and natural gas properties, net of related deferred income taxes, is limited to the sum of the estimated future after-tax net revenues from proved properties, after giving effect to cash flow hedge positions, discounted at 10%, and the lower of cost or fair value of unproved properties, adjusted for related income tax effects. This limitation is known as the “ceiling test,” and is based on SEC rules for the full cost oil and gas accounting method. There was no ceiling test write-down recorded during the nine months ended November 30, 2015 and 2014.

 

The Company assesses the carrying value of its unproved properties for impairment periodically. If the results of an assessment indicate that an unproved property is impaired (which was assessed in connection with the Company’s evaluation of goodwill impairment), then the carrying value of the unproved properties is added to the proved oil property costs to be amortized and subject to the ceiling test.

 

Fixed asset

 

Fixed asset is stated at cost and depreciated using the straight-line method over the five-year estimated useful life of the asset.

 

Asset Retirement Obligations

 

If a reasonable estimate of the fair value of an obligation to perform site reclamation, dismantle facilities or plug and abandon wells can be made, the Company will record a liability (an asset retirement obligation or “ARO”) on its consolidated balance sheet and capitalize the present value of the asset retirement cost in oil and gas properties in the period in which the retirement obligation is incurred. In general, the amount of an ARO and the costs capitalized will be equal to the estimated future cost to satisfy the abandonment obligation assuming the normal operation of the asset, using current prices that are escalated by an assumed inflation factor up to the estimated settlement date, which is then discounted back to the date that the abandonment obligation was incurred using an assumed cost of funds for the Company. After recording these amounts, the ARO will be accreted to its future estimated value using the same assumed cost of funds and the capitalized costs are depreciated on a unit-of-production basis over the estimated proved developed reserves. Both the accretion and the depreciation will be included in depreciation, depletion and amortization expense on our consolidated statements of operations.

 

Revenue Recognition

 

All revenue is recognized when persuasive evidence of an arrangement exists, the service or sale is complete, the price is fixed or determinable and collectability is reasonably assured. Revenue is derived from the sale of crude oil and natural gas. Revenue from crude oil and natural gas sales is recognized when the product is delivered to the purchaser and collectability is reasonably assured. The Company follows the “sales method” of accounting for oil and natural gas revenue, so it recognizes revenue on all natural gas or crude oil sold to purchasers, regardless of whether the sales are proportionate to its ownership in the property. A receivable or liability is recognized only to the extent that the Company has an imbalance on a specific property greater than its share of the expected remaining proved reserves. If collection is uncertain, revenue is recognized when cash is collected.

 

Income Taxes

 

Income taxes are accounted for in accordance with the provisions of ASC Topic No. 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized.

 

Stock-Based Compensation

 

The Company measures stock-based compensation cost at the grant date based on the fair value of the award and recognize it as expense, over the vesting or service period, as applicable, of the stock award.

 

Basic and Diluted Net Income (Loss) per Common Share

 

Basic net loss per common share amounts are computed by dividing the net loss available to International Western Petroleum, Inc. shareholders by the weighted average number of common shares outstanding over the reporting period. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. For the three and nine months ended November 30, 2015, there were no potentially dilutive securities outstanding.

 

Reclassifications

 

Certain reclassifications have been made to amounts in prior periods to conform to the current period presentation. All reclassifications have been applied consistently to the periods presented.

 

Subsequent Events

 

The Company evaluated all transactions from November 30, 2015 through the financial statement issuance date for subsequent event disclosure consideration.

 

Recent Accounting Pronouncements

 

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flows.

Going Concern

v3.3.1.900
Going Concern
 9 Months Ended
Nov. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern

Note 2 – Going Concern

 

As reflected in the accompanying financial statements, the Company has generated net income of $427,211 and cash flows from operations of $413,330 during the nine months ended November 30, 2015. This revenue is mainly generated from consulting services provided to a related party and oil and gas sales from the Company’s oil and gas properties.

 

Management has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company will be required to raise additional funds to fully execute its business plan, however, the Company believes it has sufficient cash on hand and limited near term obligations to sustain its current operations for the next twelve months.

Oil and Gas Properties

v3.3.1.900
Oil and Gas Properties
 9 Months Ended
Nov. 30, 2015
Extractive Industries [Abstract]  
Oil and Gas Properties

Note 3 – Oil and Gas Properties

 

The following table summarizes the Company’s oil and gas activities by classification for the nine months ended November 30, 2015:

 

   

February 28,

2015

     Additions     Reclass (1)    

November 30,

2015

  
                         
Oil and gas properties, subject to amortization   $ -     $ 375,000     $ 88,000     $ 463,000  
Asset retirement costs     -       8,438       -       8,438  
Accumulated depletion     -       (9,438 )     -       (9,438 )
Total oil and gas assets   $ -     $ 374,000     $ 88,000     $ 462,000  

 

  (1) The Company reclassified $88,000 of pre-acquisition costs associated with the Bend Arch properties acquired to oil and gas properties subject to amortization.

 

The depletion recorded for production on proved properties for the three months ended November 30, 2015 and 2014, amounted to $3,869 and $0, respectively. The depletion recorded for production on proved properties for the nine months ended November 30, 2015 and 2014, amounted to $9,438 and $0, respectively. The Company recorded no impairment of its oil and gas properties during the three and nine months ended November 30, 2015 and 2014.

 

Acquisition of Properties from International Western Oil Corp.

 

On May 4, 2015, the Company completed the acquisition of interests in the Joint Venture 1A and 1B oil and gas properties from International Western Oil Corp. (“IWO”), a related party.

 

As consideration for the acquisition, the Company issued to IWO, 500,000 shares of common stock valued at $0.75 per share.

 

The following table summarizes the purchase price and allocation of the purchase price to the net assets acquired:

 

Purchase price on May 4, 2015      
Fair value of common stock issued   $ 375,000  
Total purchase price   $ 375,000  
         
Fair value of net assets at May 4, 2015        
Oil and gas properties, subject to amortization   $ 375,000  
Asset retirement cost     6,067  
Total assets     381,067  
         
Asset retirement obligations     (6,067 )
Total liabilities     (6,067 )
Net assets acquired   $ 375,000  

Fixed Asset

v3.3.1.900
Fixed Asset
 9 Months Ended
Nov. 30, 2015
Property, Plant and Equipment [Abstract]  
Fixed Asset

Note 4 – Fixed Asset

 

The Company’s fixed asset consists of a used vehicle and has a remaining estimated useful life of five years. Fixed asset consists of the following:

 

    November 30, 2015     November 30, 2014  
Vehicle   $ 24,500     $ -  
Less accumulated depreciation     (792 )     -  
Total   $ 23,708     $ -  

 

The Company recorded depreciation expense of $792 and $0 during the nine months ended November 30, 2015 and 2014, respectively.

Asset Retirement Obligations

v3.3.1.900
Asset Retirement Obligations
 9 Months Ended
Nov. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

Note 5 – Asset Retirement Obligations

 

The following table summarizes the change in the Company’s asset retirement obligations during the nine months ended November 30, 2015:

 

    Amount  
Asset retirement obligations as of February 28, 2015   $ -  
Additions     8,438  
Current year revision of previous estimates     -  
Accretion during the nine months ended November 30, 2015     479  
Asset retirement obligations as of November 30, 2015   $ 8,917  

 

During the three months ended November 30, 2015 and 2014, the Company recognized accretion expense of $210 and $0, respectively. During the nine months ended November 30, 2015 and 2014, the Company recognized accretion expense of $479 and $0, respectively.

Related Party Transactions

v3.3.1.900
Related Party Transactions
 9 Months Ended
Nov. 30, 2015
Related Party Transactions [Abstract]  
Related Party Transactions

Note 6 – Related Party Transactions

 

During the nine months ended November 30, 2015, the Company recognized $583,100 of revenue for consulting services provided to IWO for which it has been fully paid.

 

On May 4, 2015, the Company acquired an interest in the Joint Venture 1A and 1B oil and gas properties from IWO (See Note 3).

 

As a part of its amended agreement with IWO, the Company agreed to adjust the existing monthly retainer from $22,263 to $27,600 starting October 1, 2015 for its Texas-based operating license and field services due to an increase in a number of new producing wells under operations.

 

During the nine months ended November 30, 2014, Benjamin Tran, one of the Company’s major shareholders and a director, advanced $13,000 to the Company to fund its operations. During the nine months ended November 30, 2014, the Company made repayments of $22,250 for such advances (Dr. Tran had previously advanced $10,320 during the fiscal year that ended on February 28, 2014 and advanced $2,000 between December 1, 2014 and February 28, 2015). As of November 30, 2015 and February 28, 2015, the remaining amount due to such majority shareholder and director was $3,070. The advances to the Company are unsecured, non-interest bearing and are payable upon demand.

Equity

v3.3.1.900
Equity
 9 Months Ended
Nov. 30, 2015
Equity [Abstract]  
Equity

Note 7 – Equity

 

During the nine months ending November 30, 2015, the Company sold 226,666 shares of common stock of the Company for net cash proceeds of $170,000.

 

During the nine months ending November 30, 2014, the Company sold 287,364 shares of common stock of the Company for net cash proceeds of $215,522.

Organization, Nature of Operations and Summary of Significant Accounting Policies (Policies)

v3.3.1.900
Organization, Nature of Operations and Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Nov. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expense during the period. Actual results could differ from those estimates.
Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

The carrying amount of the Company’s accounts payable and accrued expenses and advances from officer approximates its estimated fair value due to the short-term nature of that financial instrument.
Cash and Cash Equivalents

Cash and Cash Equivalents

 

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company had $600,613 and $41,783 of cash and cash equivalents at November 30, 2015 and February 28, 2015, respectively.
Concentrations of Credit Risk

Concentrations of Credit Risk

 

Financial instruments which potentially subject the Company to concentrations of credit risk include cash deposits placed with financial institutions. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits as guaranteed by the Federal Deposit Insurance Corporation (FDIC). At November 30, 2015, $348,908 of the Company’s cash balances were uninsured. The Company has not experienced any losses on such accounts.
Accounts Receivable

Accounts Receivable

 

Accounts receivable typically consist of oil and gas receivables. The Company has classified these as short-term assets in the balance sheet because the Company expects repayment or recovery within the next 12 months. The Company evaluates these accounts receivable for collectability considering the results of operations of these related entities and when necessary records allowances for expected unrecoverable amounts. To date, no allowances have been recorded.
Oil and Gas Properties

Oil and Gas Properties

 

The Company follows the full cost method of accounting for its investments in oil and gas properties, whereby all costs incurred in connection with the acquisition, exploration for and development of petroleum and natural gas reserves, including unproductive wells, are capitalized. Such costs include lease acquisition, geological and geophysical activities, rentals on non-producing leases, drilling, completing and equipping of oil and gas wells and administrative costs directly attributable to those activities, and asset retirement costs. General and administrative costs related to production and general overhead are expensed as incurred.

 

Disposition of oil and gas properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capital costs and proved reserves of oil, in which case the gain or loss is recognized in the statement of operations.

 

Future development, site restoration, dismantlement and abandonment costs, are estimated property by property, based upon current economic conditions and regulatory requirements, and are included in amortization of our oil and natural gas property costs.

 

Depletion of capitalized oil properties and estimated future development costs, excluding unproved properties, are based on the unit-of-production method based on proved reserves.

 

At the end of each quarter, the unamortized cost of oil and natural gas properties, net of related deferred income taxes, is limited to the sum of the estimated future after-tax net revenues from proved properties, after giving effect to cash flow hedge positions, discounted at 10%, and the lower of cost or fair value of unproved properties, adjusted for related income tax effects. This limitation is known as the “ceiling test,” and is based on SEC rules for the full cost oil and gas accounting method. There was no ceiling test write-down recorded during the nine months ended November 30, 2015 and 2014.

 

The Company assesses the carrying value of its unproved properties for impairment periodically. If the results of an assessment indicate that an unproved property is impaired (which was assessed in connection with the Company’s evaluation of goodwill impairment), then the carrying value of the unproved properties is added to the proved oil property costs to be amortized and subject to the ceiling test.
Fixed Assets

Fixed asset

 

Fixed asset is stated at cost and depreciated using the straight-line method over the five-year estimated useful life of the asset.
Asset Retirement Obligations

Asset Retirement Obligations

 

If a reasonable estimate of the fair value of an obligation to perform site reclamation, dismantle facilities or plug and abandon wells can be made, the Company will record a liability (an asset retirement obligation or “ARO”) on its consolidated balance sheet and capitalize the present value of the asset retirement cost in oil and gas properties in the period in which the retirement obligation is incurred. In general, the amount of an ARO and the costs capitalized will be equal to the estimated future cost to satisfy the abandonment obligation assuming the normal operation of the asset, using current prices that are escalated by an assumed inflation factor up to the estimated settlement date, which is then discounted back to the date that the abandonment obligation was incurred using an assumed cost of funds for the Company. After recording these amounts, the ARO will be accreted to its future estimated value using the same assumed cost of funds and the capitalized costs are depreciated on a unit-of-production basis over the estimated proved developed reserves. Both the accretion and the depreciation will be included in depreciation, depletion and amortization expense on our consolidated statements of operations.
Revenue Recognition

Revenue Recognition

 

All revenue is recognized when persuasive evidence of an arrangement exists, the service or sale is complete, the price is fixed or determinable and collectability is reasonably assured. Revenue is derived from the sale of crude oil and natural gas. Revenue from crude oil and natural gas sales is recognized when the product is delivered to the purchaser and collectability is reasonably assured. The Company follows the “sales method” of accounting for oil and natural gas revenue, so it recognizes revenue on all natural gas or crude oil sold to purchasers, regardless of whether the sales are proportionate to its ownership in the property. A receivable or liability is recognized only to the extent that the Company has an imbalance on a specific property greater than its share of the expected remaining proved reserves. If collection is uncertain, revenue is recognized when cash is collected.
Income Taxes

Income Taxes

 

Income taxes are accounted for in accordance with the provisions of ASC Topic No. 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized.
Stock-based Compensation

Stock-Based Compensation

 

The Company measures stock-based compensation cost at the grant date based on the fair value of the award and recognize it as expense, over the vesting or service period, as applicable, of the stock award.
Basic and Diluted Net Loss Per Common Share

Basic and Diluted Net Income (Loss) per Common Share

 

Basic net loss per common share amounts are computed by dividing the net loss available to International Western Petroleum, Inc. shareholders by the weighted average number of common shares outstanding over the reporting period. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. For the three and nine months ended November 30, 2015, there were no potentially dilutive securities outstanding.
Reclassifications

Reclassifications

 

Certain reclassifications have been made to amounts in prior periods to conform to the current period presentation. All reclassifications have been applied consistently to the periods presented.
Subsequent Events

Subsequent Events

 

The Company evaluated all transactions from November 30, 2015 through the financial statement issuance date for subsequent event disclosure consideration.
Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flows.

Oil and Gas Properties (Tables)

v3.3.1.900
Oil and Gas Properties (Tables)
 9 Months Ended
Nov. 30, 2015
Extractive Industries [Abstract]  
Summary of Oil and Gas Activities

The following table summarizes the Company’s oil and gas activities by classification for the nine months ended November 30, 2015:

 

   

February 28,

2015

     Additions     Reclass (1)    

November 30,

2015

  
                         
Oil and gas properties, subject to amortization   $ -     $ 375,000     $ 88,000     $ 463,000  
Asset retirement costs     -       8,438       -       8,438  
Accumulated depletion     -       (9,438 )     -       (9,438 )
Total oil and gas assets   $ -     $ 374,000     $ 88,000     $ 462,000  

 

  (1) The Company reclassified $88,000 of pre-acquisition costs associated with the Bend Arch properties acquired to oil and gas properties subject to amortization.
Summary of Allocation of Purchase Price to Net Assets Acquired

The following table summarizes the purchase price and allocation of the purchase price to the net assets acquired:

 

Purchase price on May 4, 2015      
Fair value of common stock issued   $ 375,000  
Total purchase price   $ 375,000  
         
Fair value of net assets at May 4, 2015        
Oil and gas properties, subject to amortization   $ 375,000  
Asset retirement cost     6,067  
Total assets     381,067  
         
Asset retirement obligations     (6,067 )
Total liabilities     (6,067 )
Net assets acquired   $ 375,000  

Fixed Asset (Tables)

v3.3.1.900
Fixed Asset (Tables)
 9 Months Ended
Nov. 30, 2015
Property, Plant and Equipment [Abstract]  
Schedule of Fixed Assets

The Company’s fixed asset consists of a used vehicle and has a remaining estimated useful life of five years. Fixed asset consists of the following:

 

    November 30, 2015     November 30, 2014  
Vehicle   $ 24,500     $ -  
Less accumulated depreciation     (792 )     -  
Total   $ 23,708     $ -  

Asset Retirement Obligations (Tables)

v3.3.1.900
Asset Retirement Obligations (Tables)
 9 Months Ended
Nov. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]  
Schedule of Asset Retirement Obligation

The following table summarizes the change in the Company’s asset retirement obligations during the nine months ended November 30, 2015:

 

    Amount  
Asset retirement obligations as of February 28, 2015   $ -  
Additions     8,438  
Current year revision of previous estimates     -  
Accretion during the nine months ended November 30, 2015     479  
Asset retirement obligations as of November 30, 2015   $ 8,917  

Organization, Nature of Operations and Summary of Significant Accounting Policies (Details Narrative)

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Organization, Nature of Operations and Summary of Significant Accounting Policies (Details Narrative) - USD ($)
 9 Months Ended
Nov. 30, 2015
Feb. 28, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Cash and cash equivalents $ 600,613 $ 41,783
Cash balances were uninsured $ 348,908  
Percentage of discount on revenue from proved properties 10.00%  

Going Concern (Details Narrative)

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Going Concern (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2015
Nov. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Net income $ 5,952 $ (16,221) $ 427,211 $ (55,113)
Cash flows from operations     $ 413,330 $ (50,363)

Oil and Gas Properties (Details Narrative)

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Oil and Gas Properties (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended
May. 04, 2015
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2015
Nov. 30, 2014
Accumulated depletion   $ 3,869 $ 0 $ 9,438 $ 0
Impairment of oil and gas properties   $ 0 $ 0 $ 0 $ 0
1A and 1B Oil and Gas Properties [Member]          
Number of common stock shares issued for acquisition 500,000        
Stock issued price per share $ 0.75        

Oil and Gas Properties - Summary of Oil and Gas Activities (Details)

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Oil and Gas Properties - Summary of Oil and Gas Activities (Details) - USD ($)
Nov. 30, 2015
Feb. 28, 2015
Oil and gas properties, subject to amortization $ 463,000
Asset retirement costs 8,438
Accumulated depletion (9,438)
Total oil and gas assets 462,000
Additions [Member]    
Oil and gas properties, subject to amortization 375,000  
Asset retirement costs 8,438  
Accumulated depletion (9,438)  
Total oil and gas assets 374,000  
Reclass [Member]    
Oil and gas properties, subject to amortization [1] $ 88,000  
Asset retirement costs [1]  
Accumulated depletion [1]  
Total oil and gas assets [1] $ 88,000  
[1] The Company reclassified $88,000 of pre-acquisition costs associated with the Bend Arch properties acquired to oil and gas properties subject to amortization.

Oil and Gas Properties - Summary of Oil and Gas Activities (Details) (Parenthetical)

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Oil and Gas Properties - Summary of Oil and Gas Activities (Details) (Parenthetical) - USD ($)
 9 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Extractive Industries [Abstract]    
Reclassification of pre-acquisition costs to oil and gas properties $ 88,000

Oil and Gas Properties - Summary of Allocation of Purchase Price to Net Assets Acquired (Details)

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Oil and Gas Properties - Summary of Allocation of Purchase Price to Net Assets Acquired (Details)
May. 04, 2015
USD ($)
Extractive Industries [Abstract]  
Fair value of common stock issued $ 375,000
Total purchase price 375,000
Oil and gas properties, subject to amortization 375,000
Asset retirement cost 6,067
Total assets 381,067
Asset retirement obligations (6,067)
Total liabilities (6,067)
Net assets acquired $ 375,000

Fixed Asset (Details Narrative)

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Fixed Asset (Details Narrative) - USD ($)
 9 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Depreciation expense $ 792 $ 0
Vehicle [Member]    
Fixed assets estimated useful life 5 years  

Fixed Assets - Schedule of Fixed Assets (Details)

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Fixed Assets - Schedule of Fixed Assets (Details) - USD ($)
Nov. 30, 2015
Feb. 28, 2015
Nov. 30, 2014
Property, Plant and Equipment [Abstract]      
Vehicle $ 24,500  
Less accumulated depreciation (792)  
Total $ 23,708

Asset Retirement Obligations (Details Narrative)

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Asset Retirement Obligations (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2015
Nov. 30, 2014
Asset Retirement Obligation Disclosure [Abstract]        
Accretion expense $ 210 $ 0 $ 479 $ 0

Asset Retirement Obligations - Schedule of Asset Retirement Obligation (Details)

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Asset Retirement Obligations - Schedule of Asset Retirement Obligation (Details)
 9 Months Ended
Nov. 30, 2015
USD ($)
Asset Retirement Obligation Disclosure [Abstract]  
Asset retirement obligations as of February 28, 2015
Additions $ 8,438
Current year revision of previous estimates
Accretion during the nine months ended November 30, 2015 $ 479
Asset retirement obligations as of November 30, 2015 $ 8,917

Related Party Transactions (Details Narrative)

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Related Party Transactions (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
May. 04, 2015
Nov. 30, 2015
Feb. 28, 2015
Nov. 30, 2014
Nov. 30, 2015
Nov. 30, 2014
Feb. 28, 2014
Revenue from consulting services - related party   $ 81,100   $ 583,100  
Advances from related party     $ 2,000   $ 13,000 $ 10,320
Repayments for related party advances         $ 22,250  
Due to majority shareholder and director   $ 3,070 $ 3,070   $ 3,070    
1A and 1B Oil and Gas Properties [Member] | Minimum [Member]              
Monthly retainer amount to be paid $ 22,263            
1A and 1B Oil and Gas Properties [Member] | Maximum [Member]              
Monthly retainer amount to be paid $ 27,600            

Equity (Details Narrative)

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Equity (Details Narrative) - USD ($)
 9 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Equity [Abstract]    
Number of common stock shares sold during period 226,666 287,364
Cash proceeds from sale of common stock $ 170,000 $ 215,522