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Document and Entity Information

v2.4.0.8
Document and Entity Information
3 Months Ended
Jul. 31, 2015
Sep. 21, 2015
Document And Entity Information    
Entity Registrant Name Petro River Oil Corp.  
Entity Central Index Key 0001172298  
Document Type 10-Q  
Document Period End Date Jul. 31, 2015  
Amendment Flag false  
Current Fiscal Year End Date --04-30  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   851,901,079
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2015  

Condensed Consolidated Balance Sheets

v2.4.0.8
Condensed Consolidated Balance Sheets (USD $)
Jul. 31, 2015
Apr. 30, 2015
Current Assets:    
Cash and cash equivalents $ 763,270 $ 1,010,543
Certificate of deposit - restricted 125,000 125,000
Accounts receivable 903 42,688
Prepaid expenses and other current assets 51,433 52,771
Total Current Assets 940,606 1,231,002
Oil and gas assets, net 15,432,926 15,757,011
Property, plant and equipment, net of accumulated depreciation of $317,070 and $313,508 57,391 60,953
Intangible assets, net 2,173,280 2,203,393
Other assets 31,541 27,922
Total Other Assets 17,695,138 18,049,279
Total Assets 18,635,744 19,280,281
Current Liabilities:    
Accounts payable and accrued expenses 136,994 252,227
Asset retirement obligations, current portion 541,958 541,959
Total Current Liabilities 678,952 794,186
Long-term liabilities:    
Asset retirement obligations, net of current portion 386,528 376,471
Total Long-term Liabilities 386,528 376,471
Total Liabilities 1,065,480 1,170,657
Stockholders' Equity:    
Preferred Shares - 5,000,000 authorized; par value $0.00001 per share; Preferred B shares - 29,500 authorized; 0 issued with a $100 stated value, par value $0.00001 per share      
Common shares - 2,250,000,000 authorized; par value $0.00001 per share; Issued and outstanding; 851,901,079 and 851,901,079, respectively 8,519 8,519
Additional paid-in capital 31,335,745 31,106,815
Accumulated deficit (17,335,417) (16,650,486)
Total Stockholders' Equity 14,008,847 14,464,848
Non-controlling interests 3,561,417 3,644,776
Total Stockholders' Equity 17,570,264 18,109,624
Total Liabilities and Stockholders' Equity $ 18,635,744 $ 19,280,281

Condensed Consolidated Balance Sheets (Parenthetical)

v2.4.0.8
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Jul. 31, 2015
Apr. 30, 2015
Accumulated depreciation of Property, plant and equipment $ 317,070 $ 313,508
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, par value $ 0.00001 $ 0.00001
Preferred stock, shares issued 0 0
Common stock, shares authorized 2,250,000,000 2,250,000,000
Common stock, par value $ 0.00001 $ 0.00001
Common stock, shares issued 851,901,079 851,901,079
Common stock, shares outstanding 851,901,079 851,901,079
Preferred B Shares [Member]
   
Preferred stock, shares authorized 29,500 29,500
Preferred stock, par value $ 0.00001 $ 0.00001
Preferred stock, shares issued 0 0
Preferred shares, stated value per share   $ 100

Condensed Consolidated Statements of Operations

v2.4.0.8
Condensed Consolidated Statements of Operations (USD $)
3 Months Ended
Jul. 31, 2015
Jul. 31, 2014
Operations Revenue    
Oil and natural gas sales $ 62,841 $ 666,276
Total Revenues 62,841 666,276
Operating Expenses    
Operating 175,953 340,668
General and administrative 559,975 1,861,532
Depreciation, depletion and accretion 65,973 182,152
Amortization 30,113   
Total Expenses 832,014 2,384,352
Operating loss (769,173) (1,718,076)
Other income 883 33
Net loss (768,290) (1,718,043)
Net loss attributable to non-controlling interest (83,359) (402,711)
Net loss attributable to Petro River Oil Corp. and Subsidiaries $ (684,931) $ (1,315,332)
Net loss per Common Share Basic and Diluted      
Weighted Average Number of Common Shares Outstanding - Basic and Diluted 851,901,079 818,567,746

Condensed Consolidated Statements of Cash Flows (Unaudited)

v2.4.0.8
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
3 Months Ended
Jul. 31, 2015
Jul. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (768,290) $ (1,718,043)
Adjustments to reconcile net loss to net cash used in operating activities    
Stock-based compensation 228,930 189,244
Depreciation, depletion and amortization 55,917 169,510
Accretion of asset retirement obligation 10,056 12,642
Amortization of intangible assets 30,113   
Changes in operating assets and liabilities:    
Accounts receivable 41,785 (767,005)
Prepaid expenses and other assets 1,338 7,320
Other assets (3,619)   
Accounts payable and accrued expenses (115,233) 470,040
Net Cash Used in Operating Activities (519,003) (1,636,292)
Cash Flows From Investing Activities:    
Capitalized expenditures on oil and gas assets (7,283) (8,305,732)
Cash received upon disposal of oil and gas assets 279,013   
Purchase of equipment    (3,796)
Net Cash Provided by (Used in) Investing Activities 271,730 (8,309,528)
Cash Flows From Financing Activities:    
Cash received from non-controlling interest contribution    5,000,000
Net Cash Provided by Financing Activities    5,000,000
Change in cash and cash equivalents (247,273) (4,945,820)
Cash and cash equivalents, beginning of period 1,010,543 8,352,949
Cash and cash equivalents, end of period 763,270 3,407,129
Cash paid during the period for:    
Income taxes 14,482   
Interest paid      
Non-cash investing and financing activities:    
Acquisition of oil and gas assets    $ 76,541

Organization

v2.4.0.8
Organization
3 Months Ended
Jul. 31, 2015
Organization And Liquidity  
Organization

Petro River Oil Corp (the “Company”) is an independent exploration and production company with a focus on drilling, completion, recompletions, and applying modern technologies to both conventional and unconventional oil and gas assets. The Company’s core holdings are in the Mid Continent region in Oklahoma and Kansas. The Company’s operations are currently focused on the Mississippi Lime play, capitalizing on the experience, knowledge, and drilling techniques of its team. The Company is driven to utilize its expertise both in the region and in similar formations to exploit hydrocarbon prone resources with tight and/or challenging characteristics in order to create value for the Company and its shareholders. The Company’s principal administrative office is located in Houston, Texas and its principal operations are in Oklahoma with secondary operations in Kansas and Western Missouri. The Company also has an office in New York, New York, which is also headquarters to Petro Spring LLC (“Petro Spring”), the Company’s technology focused subsidiary.

 

Petro River Oil LLC (“Petro”), was incorporated under the laws of the State of Delaware on March 3, 2011. Through proceeds received from the issuance of various promissory notes, on February 1, 2012, Petro purchased various interests in oil and gas leases, wells, records, data and related personal property located along the Mississippi Lime play in the state of Kansas from Metro Energy Corporation (“Metro”), a Louisiana company, and other interrelated entities, through a court approved order as Metro was undergoing Chapter 11 Bankruptcy proceedings as a Debtor-In-Possession of these various oil and gas assets. Petro purchased these assets for cash consideration of $2,000,000 as well as a 25% non-managing membership interest in Petro. The Company engaged Energy Source Advisors to renew a number of the leases acquired in the Metro purchase and to lease additional acreage. As a result of the asset purchase from Metro and the completion of the additional lease renewals and additional acreage purchases, the Company obtained a total of 115,000 gross (85,000 net acres) of leases, having unproven reserves at the time of acquisition, in the Mississippi Lime in Southeast Kansas for total cost of $12.2 million.

 

On April 23, 2013, the Company executed a securities purchase agreement by and among the Company, Petro, and the investors in Petro (the “Investors”), namely, the holders of outstanding secured promissory notes of Petro (the “Notes”), and those holding membership interests in Petro (the “Membership Interests”, and, together with the Notes, the “Acquired Securities”) sold by Petro (the “Share Exchange”). In the Share Exchange, the Investors exchanged their Acquired Securities for 591,021,011 newly issued shares of the Company's common stock. Upon completion of the Share Exchange, Petro became the Company’s wholly owned subsidiary.

 

As a result of the Share Exchange, the Company acquired 100% of the membership units of Petro and consequently, control of the business and operations of Petro. Under generally accepted accounting principles in the United States (“U.S. GAAP”), because Petro’s former members and note holders held 80% of the issued and outstanding shares of the Company as a result of the Share Exchange, Petro is deemed the accounting acquirer while the Company remains the legal acquirer. Petro adopted the fiscal year of the Company. Prior to the Share Exchange, all historical financial statements presented are those of Petro. The equity of the Company is the historical equity of Petro, restated to reflect the number of shares issued by the Company in the transaction.

 

Recent Developments

 

Acquistion of Havelide and Coalthane Assets.  On February 18, 2015, Petro Spring I, LLC ("Petro Spring I"), a Delaware limited liability company wholly owned by Petro Spring, entered into a definitive asset purchase agreement ("Havelide Purchase Agreement") to purchase substantially all of the assets of Havelide GTL LLC ("Havelide") and Coalthane Tech LLC ("Coalthane"), consisting of certain patents and other intellectual property, trade secrets, and assets developed and owned by Havelide to produce a gasoline-like liquid and high-purity hydrogen from natural gas, at low temperature and at low pressure (the "Havelide Assets") and consisting of certain patents and other intellectual property, trade secrets, and assets developed and owned by Coalthane to reduce the methane from coal mines and other wells (the "Coalthane Assets").. The purchase of the Coalthane and Havelide Assets was consummated on February 27, 2015. The acquisitions reflect the increased focus on technology solutions in an effort to diversify our business amid a challenging oil price environment. We believe the patents acquired can potentially be licensed or sold for a profit.

 

Change in Personia West Concession.  On July 31, 2015, the Company received formal notice from the Osage Mineral Council that the new concession terms for the Pearsonia West Concession (“Pearsonia West”) are effective and formalized. Pearsonia West is a 106,500 contiguous acre position in Osage County, Oklahoma which the Company owns a controlling interest in through its investment in Bandolier Energy LLC, whole owner of the concession.  

 

The new terms allow for vertical drilling obligations to hold the concession which previously had horizontal drilling obligations.  This provides a significant cost savings to the Company and preserves potential control of its core asset until 2018, assuming the negotiated obligations are met. Previously, the concession required 11 horizontal wells to be drilled by the end of 2015 with the concession terminating in the event these wells were not drilled.  The estimated cost of this obligation was approximately $22.1 million.

 

Pursuant to the new terms, assuming completion costs of $300,000 per vertical well, the drilling obligations only require capital expenditures of: $1.8 million in 2016, $2.7 million in 2017, and $3.6 million in 2018, collectively $8.1 million to hold the entire concession.  This represents a cost savings to the Company of approximately $14.0 million while gaining an extra three years of potential control.  

 

The Company is currently exploring multiple options for development for the Pearsonia Concession including entertaining inquiries from industry and joint venture partners.

 

Termination of Renzhi MOU.  On July 9, 2014 the Company and Sichuan Renzhi Oilfield Technology Services Co. Ltd., a corporation incorporated under the laws of The People’s Republic of China and traded on the Shenzhen Stock Exchange (“Renzhi”) entered into a memorandum of understanding (“MOU”) for the sale of one of the Company’s wholly owned subsidiaries to Renzhi and the joint development by the Company and Renzhi of oil and gas technology and properties (collectively, the “Transactions”). As of June 30, 2015, the Company has ceased all discussions and negotiations with Renzhi, including discussions regarding the completion of the Transactions contemplated by the MOU.

 

Approval of Reverse Stock Split.   At its 2015 annual meeting of stockholders held on July 8, 2015, stockholders approved a resolution to authorize the Company’s Board of Directors, in its sole and absolute discretion, without further action of the stockholders, to amend its Certificate of Incorporation to (i) implement a reverse stock split of its common stock at a ratio of not less than 1-for-2, and not greater than 1-for-250, within one year from the date of the annual meeting, with the exact ratio to be determined by the Board of Directors (the “Reverse Split”); and (ii) immediately following the Reverse Split, increase the total number of authorized shares of its Common Stock to 100.0 million. As of the date of this filing, the Company has not formally applied for the reverse stock split.

 

Acquisition of Interest in Bandolier Energy LLC.   On May 30, 2014, the Company entered into a Subscription Agreement pursuant to which the Company was issued a 50% interest in Bandolier Energy, LLC (“Bandolier”) in exchange for a capital contribution of $5.0 million (the “Bandolier Acquisition”). In connection with the Bandolier Acquisition, the Company has the right to appoint a majority of the board of managers of Bandolier. The Company’s Executive Chairman is a manager of, and investor in, Pearsonia West Investment Group, LLC (“PWIG”), a special purpose vehicle formed for the purpose of investing in Bandolier with the Company and Ranger Station, LLC (“Ranger Station”). Concurrently with the Bandolier Acquisition, PWIG was issued a 44% interest in Bandolier for cash consideration of $4.4 million, and Ranger Station was issued a 6% interest in Bandolier for cash consideration of $600,000. In connection with PWIG’s investment in Bandolier, the Company and PWIG entered into an agreement, dated May 30, 2014, granting the members of PWIG an option, exercisable at any time prior to May 30, 2017, to exchange their pro rata share of the Bandolier membership interests for shares of the Company’s common stock, at a price of $0.08 per share, subject to adjustment (the “Option”). The Option, if fully exercised, would result in the Company issuing 55,000,000 shares of its common stock, or 6% to the members of PWIG. 

 

The Company has operational control along with a 50% ownership interest in Bandolier. As a result, the Company consolidates Bandolier. The remaining 50% non–controlling interest represents the equity investment from PWIG and Ranger Station. The Company will allocate the proportionate share of the net operating income/loss to both the Company and the non-controlling interest.

 

Subsequent to the initial capitalization of Bandolier, Bandolier acquired for $8,712,893, less a $407,161 claw back, all of the issued and outstanding equity of Spyglass Energy Group, LLC (“Spyglass”), the owner of oil and gas leases, leaseholds, lands, and options and concessions thereto located in Osage County, Oklahoma. Spyglass controls a significant contiguous oil and gas acreage position in Northeastern Oklahoma, consisting of approximately 106,000 acres, with substantial original oil in place, stacked reservoirs, as well as exploratory and development opportunities that can be accessed through both horizontal and vertical drilling. Significant infrastructure is already in place including 32 square miles of 3D seismic, 3 phase power, a dedicated sub-station as well as multiple oil producing horizontal wells.  No additional contingencies were assumed.

 

As a result of Bandolier’s subsequent acquisition of Spyglass, the Company has both proven developed and proven undeveloped oil and gas assets. 

 

 

The Company recorded the purchase of Spyglass using the acquisition method of accounting as specified in ASC 805 “Business Combinations.” This method of accounting requires the acquirer to (i) record purchase consideration issued to sellers in a business combination at fair value on the date control is obtained, (ii) determine the fair value of any non-controlling interest, and (iii) allocate the purchase consideration to all tangible and intangible assets acquired and liabilities assumed based on their acquisition date fair values. Further, the Company commenced reporting the results of Spyglass on a consolidated basis with those of the Company effective upon the date of the acquisition.

 

The Company consolidated Bandolier as of May 30, 2014, and the results of operations of the Company include that of Bandolier from June 1, 2014.

 

The following table summarizes, on an unaudited pro forma basis, the results of operations of the Company as though the acquisition had occurred as of May 1, 2014. The pro forma amounts presented are not necessarily indicative of either the actual operation results had the acquisition transaction occurred as of May 1, 2014.

 

        For the Three Months Ended  
        July 31, 2014  
Revenues       $ 1,033,092  
Net loss       (1,506,454 )
Loss per share of common share - Basic and diluted       $ (0.00 )
Weighted average number of common shares Outstanding - Basic and diluted         818,567,746  

 

At July 31, 2015 the non–controlling interest in Bandolier was as follows:

 

Non–controlling interest at April 30, 2015   $ 3,644,776  
Non–controlling share of net loss     (83,359 )
Non–controlling interest at July 31, 2015   $ 3,561,417  

 

As of April 30, 2015, the Company performed a ceiling test on the Oklahoma oil and gas assets.  As a result, the Company recognized an impairment charge of $1,246,975 on the Oklahoma oil and gas assets. No further impairment was recognized on these assets during the three month ended July 31, 2015.

 

 

Going Concern and Management’s Plan

v2.4.0.8
Going Concern and Management’s Plan
3 Months Ended
Jul. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern and Management’s Plan:

 

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of July 31, 2015, the Company had an accumulated deficit of $17,335,417.  The Company has incurred significant losses since inception. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

At July 31, 2015, the Company had working capital of approximately $262,000.  As a result of the utilization of cash in its operating activities, and the development of its assets, the Company has incurred losses since it commenced operations. In addition, the Company has a limited operating history prior to acquisition of Bandolier.  At July 31, 2015, the Company had cash and cash equivalents of approximately $0.8 million.  The Company’s primary source of operating funds since inception has been equity financings.

 

Management is currently in the process of evaluating all paths for the Company at this point amid a difficult oil price environment.  This includes curtailing oil and gas operations and increasing focus on the Company’s technology initiatives.  Obtaining funding in this environment for exploration and production assets is challenging though the Company continues to work hard to meet its capital needs.  The Company is exploring farm in and joint venture opportunities for its oil and gas assets as well as exit opportunities through an outright sale.

 

The Company is currently focused on developing its core position in the Mississippi Lime, specifically in the Pearsonia West Concession in Osage County acquired during the Bandolier Acquisition and Bandolier’s acquisition of Spyglass. Over the last 12 months the Company has continued to build out its leadership and technical team with individuals with extensive experience in the Mississippi Lime play. Additionally, the Company has been in discussions with industry partners to capitalize and develop additional acreage in the Mississippi Lime. The Company continues to seek out joint venture partners and acquisition targets.

 

Basis of Preparation

v2.4.0.8
Basis of Preparation
3 Months Ended
Jul. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Preparation

The condensed consolidated financial statements and accompanying footnotes are prepared in accordance with U.S. GAAP and include the accounts of the Company and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Non–controlling interest represents the minority equity investment in the Company’s subsidiaries, plus the minority investors’ share of the net operating results and other components of equity relating to the non–controlling interest.

 

These condensed consolidated financial statements include the below subsidiaries:

 

Petro River Oil LLC, Petro Spring, LLC, PO1, LLC and MegaWest Energy USA Corp. and its wholly owned subsidiaries:

 

MegaWest Energy Texas Corp.

MegaWest Energy Kentucky Corp.

MegaWest Energy Missouri Corp.

MegaWest Energy Kansas Corp.

MegaWest Energy Montana Corp.

 

Also contained in the condensed consolidated financial statements is the financial information of the Company’s 50% owned subsidiary, Bandolier Energy LLC.

 

The unaudited condensed consolidated financial information furnished herein reflects all adjustments, consisting solely of normal recurring items, which in the opinion of management are necessary to fairly state the financial position of the Company and the results of its operations for the periods presented. This report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended April 30, 2015 filed with the Securities and Exchange Commission (the “SEC”) on August 13, 2015. The Company assumes that the users of the interim financial information herein have read or have access to the audited financial statements for the preceding fiscal year and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. Accordingly, footnote disclosure, which would substantially duplicate the disclosure contained in the Company’s Form 10-K for the year ended April 30, 2015 has been omitted. The results of operations for the interim periods presented are not necessarily indicative of results for the entire year ending April 30, 2016.

Significant Accounting Policies and Estimates

v2.4.0.8
Significant Accounting Policies and Estimates
3 Months Ended
Jul. 31, 2015
Accounting Policies [Abstract]  
Significant Accounting Policies and Estimates

The Company’s significant accounting policies are disclosed in Note 4 — Significant Accounting Policies in the 2015 Annual Report. Since the date of the 2015 Annual Report, there have been no material changes to the Company’s significant accounting policies. The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes.   These estimates and assumptions include volumes of oil and natural gas reserves, abandonment obligations, impairment of oil and natural gas properties, depreciation and accretion, income taxes, fair value of financial instruments, and contingencies. Actual results could differ from the estimates.

 

 (a)   Per Share Amounts:

 

Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, which is the case for the three months ended July 31, 2015 and 2014, as presented in these financial statements, the weighted-average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. 

 

The Company had the following common stock equivalents at July 31, 2015 and 2014:

 

As at   July 31, 2015     July 31, 2014  
Stock Options     108,188,281       87,938,281  
Stock Purchase Warrants     67,291,667       40,625,000  
      175,479,948       128,563,281  

 

 (b)   Recent Accounting Pronouncements:

 

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014–09, Revenue from Contracts with Customers. Amendments in this Update create Topic 606, Revenue from Contracts with Customers, and supersede the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry–specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendments supersede the cost guidance in Subtopic 605–35, Revenue Recognition—Construction–Type and Production–Type Contracts, and create new Subtopic 340–40, Other Assets and Deferred Costs—Contracts with Customers. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2011–230—Revenue Recognition (Topic 605) and Proposed Accounting Standards Update 2011–250—Revenue Recognition (Topic 605): Codification Amendments, both of which have been deleted. Accounting Standards Update 2014–09. The amendments in this Update are effective for the Company for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the effects of ASU 2014–09 on the consolidated financial statements.

  

Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying condensed consolidated financial statements.  

Oil and Gas Assets

v2.4.0.8
Oil and Gas Assets
3 Months Ended
Jul. 31, 2015
Extractive Industries [Abstract]  
Oil and Gas Assets

 

The following table summarizes the oil and gas assets by project:

 

Cost   Oklahoma     Kansas     Missouri     Other    

 

Total

 
Balance May 1, 2015   $ 6,935,000     $ 7,803,020     $ 918,991     $ 100,000     $ 15,757,011  
Additions     7,283       -       -       -       7,283  
Disposals     (279,013 )     -       -       -       (279,013 )
Depreciation, depletion and amortization     (23,037     (29,318 )     -       -       (52,355 )
Balance July 31, 2015   $ 6,640,233     $ 7,773,702     $ 918,991     $ 100,000     $ 15,432,926  

 

 

Intangible Assets

v2.4.0.8
Intangible Assets
3 Months Ended
Jul. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

The Company’s primary additional asset is Petro Spring, a wholly owned technology focused subsidiary of the Company. It was launched with an intentionally broad mandate to acquire and commercialize cutting edge technologies with the intent to capitalize on the significant technological experience of its leadership team and network of industry relationships within the energy sector.

 

The Company’s intangibles assets consisted of the following:

 

  Estimated useful life   July 31, 2015     April 30, 2015  
Patent rights 15 years   $ 2,223,686     $ 2,223,686  
Less: Accumulated amortization       (50,406 )     (20,293 )
Intangible assets, net     $ 2,173,280     $ 2,203,393  

 

The Company recorded amortization expense of $30,113 and $0 for the three months ended July 31, 2015 and 2014, respectively.

 

The following table outlines estimated future annual amortization expense for the next five years and thereafter:

 

April 30,      
2016 (remainder of year)   $ 89,602  
2017     119,469  
2018     119,469  
2019     119,469  
2020     119,469  
Thereafter     1,605,802  
    $ 2,173,280  

 

Asset Retirement Obligations

v2.4.0.8
Asset Retirement Obligations
3 Months Ended
Jul. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

The total future asset retirement obligation was estimated based on the Company’s ownership interest in all wells and facilities, the estimated legal obligations required to retire, dismantle, abandon and reclaim the wells and facilities and the estimated timing of such payments. The Company estimated the present value of its asset retirement obligations at both July 31, 2015 and April 30, 2015, based on a future undiscounted liability of $1,144,990 and $1,143,857, respectively. These costs are expected to be incurred within one to 24 years. A credit-adjusted risk-free discount rate of 10% and an inflation rate of 2% were used to calculate the present value.

 

Changes to the asset retirement obligation were as follows:

 

    July 31, 2015     April 30, 2015  
Balance, beginning of period   $ 918,430     $ 818,010  
Additions     -       52,514  
Accretion     10,056       47,906  
      928,486       918,430  
Less: Current portion for cash flows expected to be incurred within one year     (541,958 )     (541,959 )
Long-term portion, end of period   $ 386,528     $ 376,471  

 

Expected timing of asset retirement obligations:

 

Year Ending April 30,      
2016 (remainder of year)     541,958  
2017     212,000  
2018     -  
2019     -  
2020     -  
Thereafter     391,032  
      1,144,990  
Effect of discount     (216,504 )
Total   $ 928,486  

 

As of July 31, 2015 and April 30, 2015, the Company has $0 of reclamation deposits with authorities to secure certain abandonment liabilities.

 

Stockholders' Equity

v2.4.0.8
Stockholders' Equity
3 Months Ended
Jul. 31, 2015
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

As of July 31, 2015 and April 30, 2015, the Company had 5,000,000 shares of blank check preferred stock authorized with a par value of $0.00001 per share. None of the blank check preferred shares were issued or outstanding.

 

As of July 31, 2015 and April 30, 2015, the Company had 29,500 shares of preferred B shares authorized with a par value of $0.00001 per share. No preferred B shares are issued or outstanding. 

 

Stock Options

v2.4.0.8
Stock Options
3 Months Ended
Jul. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Options

The following table summarizes information about the options outstanding and exercisable at July 31, 2015:

 

    Options    

Weighted Average

Exercise Prices

 
             
Outstanding April 30, 2015     108,188,281     $ 0.06  
Exercisable – April 30, 2015     31,648,280     $    
Granted     -     $ -  
Exercised     -     $ -  
Forfeited/Cancelled     -     $ -  
Outstanding July 31, 2015     108,188,281     $ 0.06  
Exercisable – July 31, 2015     33,108,280     $    
                 
Outstanding - Aggregate Intrinsic Value           $ -  
Exercisable - Aggregate Intrinsic Value           $ -  

 

The following table summarizes information about the options outstanding and exercisable at July 31, 2015:

 

      Options Outstanding   Options Exercisable  
Exercise Price   Options  

Weighted Avg.

Life Remaining

 

Weighted Avg.

Exercise Price

  Options  

Weighted Avg.

Exercise Price

 
$ 0.22     465,116   0.01 years   $ 0.22   465,116   $ 0.22  
$ 0.06     105,723,165   8.18 years     0.06   30,323,164     0.06  
$ 0.03     2,000,000   9.50 years   $ 0.03   2,320,000   $ 0.03  
        108,188,281              33,108,280        
Aggregate Intrinsic Value             $ -       $ -  

  

During the three months ended July 31, 2015 and 2014, the Company expensed an aggregate $228,930 and $189,244 to general and administrative expenses for stock based compensation pursuant to employment and consulting agreements.

 

As of July 31, 2015, no intrinsic value was attributable to stock-based compensation.

 

During the three months ended July 31, 2015, the Company had no other stock based compensation expense.

 

As of July 31, 2015, the Company has $1,972,023 in unrecognized stock based compensation expense, which will be amortized over a weighted average exercise period of 1.61 years.

 

Warrants:

 

   

Number of

 Warrants

   

Weighted

Average

Exercise Price

   

Weighted

Average Life

Remaining

 
Outstanding and exercisable – April 30, 2015     67,291,667       0.10       2.29  
Forfeited     -       -       -  
Granted     -       -       -  
Outstanding and exercisable – July 31, 2015     67,291,667       0.10       2.04  

 

The aggregate intrinsic value of the warrants was $0.

 

Contingency and Contractual Obligations

v2.4.0.8
Contingency and Contractual Obligations
3 Months Ended
Jul. 31, 2015
Commitments and Contingencies Disclosure [Abstract]  
Contingency and Contractual Obligations

 

As a result of the Share Exchange, the Company inherited the following contingencies:

 

(a) In January 2010, the Company experienced a flood in its Calgary office premises as a result of a broken water pipe. There was significant damage to the premises rendering them unusable until the landlord had completed remediation. Pursuant to the lease contract, the Company asserted that rent should be abated during the remediation process and accordingly, the Company did not pay any rent after December 2009. During the remediation process, the Company engaged an independent environmental testing company to test for air quality and for the existence of other potentially hazardous conditions. The testing revealed the existence of potentially hazardous mold and the consultant provided specific written instructions for the effective remediation of the premises. During the remediation process, the landlord did not follow the consultant’s instructions and correct the potentially hazardous mold situation and subsequently in June 2010 gave notice and declared the premises to be ready for occupancy. The Company re-engaged the consultant to re-test the premises and the testing results again revealed the presence of potentially hazardous mold. The Company determined that the premises were not fit for re-occupancy and considered the landlord to be in default of the lease and the lease terminated.

 

On January 30, 2014 the landlord filed a Statement of Claim against the Company for rental arrears in the amount aggregating approximately CAD $759,000. On October 20, 2014, the Company filed a summary judgment application stating that the landlord’s claim is barred as it was commenced outside the 2-year statute of limitation period under the Alberta Limitations Act. The landlord subsequently filed a cross-application to amend its Statement of Claim to add a claim for loss of prospective rent in an amount of approximately CAD $665,000. The applications were heard on June 25, 2015.   On July 3, 2015 the court issued a decision allowing both applications.  On the basis of this decision, the landlord’s claim for rental arrears in the approximate amount of CAD $759,000 has now been replaced by a claim for loss of prospective rent in the approximate amount of CAD $665,000 (which the Company believes is more accurately quantified at approximately CAD $450,000).  The decision has been appealed by both parties and the appeal hearing has been scheduled for March 16, 2016.

 

(b) In September 2013, the Company was notified by the Railroad Commission of Texas (the “Commission”) that the Company was not in compliance with regulations promulgated by the Commission. The Company was therefore deemed to have lost its corporate privileges within the State of Texas and as a result, all wells within the state would have to be plugged. The Commission therefore collected $25,000 from the Company, which was originally deposited with the Commission, to cover a portion of the estimated costs of $88,960 to plug the wells. In addition to the above, the Commission also reserved its right to separately seek any remedies against the Company resulting from its noncompliance.

  

(c) On August 11, 2014, Martha Donelson and John Friend amended their complaint in an existing lawsuit by filing a class action complaint styled: Martha Donelson and John Friend, et al. v. United States of America, Department of the Interior, Bureau of Indian Affairs and Devon Energy Production, LP, et al., Case No. 14-CV-316-JHP-TLW, United States District Court for the Northern District of Oklahoma (the “Proceeding”).  The plaintiffs added as defendants twenty-seven (27) specifically named operators, including the Company, as well as all Osage County lessees and operators who have obtained a concession agreement, lease or drilling permit approved by the Bureau of Indian Affairs (“BIA”) in Osage County allegedly in violation of National Environmental Policy Act (“NEPA”).  Plaintiffs seek a declaratory judgment that the BIA improperly approved oil and gas leases, concession agreements and drilling permits prior to August 12, 2014, without satisfying the BIA’s obligations under federal regulations or NEPA, and seek a determination that such oil and gas leases, concession agreements and drilling permits are void ab initio.  Plaintiffs are seeking damages against the defendants for alleged nuisance, trespass, negligence and unjust enrichment.  The potential consequences of such complaint could jeopardize the corresponding leases.

 

On October 7, 2014 Spyglass, along with other defendants, filed a motion to dismiss the August 11, 2014 Proceeding on various procedural and legal arguments.  Plaintiffs filed their response to the motion to dismiss on October 27, 2014.  Spyglass filed its reply brief on November 10, 2014 and the plaintiffs were granted leave until November 19, 2014 to file a reply to Spyglass’ reply brief.  Once the briefing cycle concluded on November 19, 2014, the motion to dismiss became ripe for determination by the court.  Oral arguments may be ordered by the court.  There is no specific timeline by which the court must render a ruling.

 

(d) Mega West Energy Missouri Corp. (“Mega West”), a wholly owned subsidiary of the Company, is involved in two cases related to oil leases in West Central, Missouri.  The first case (James Long and Jodeane Long v. Mega West Energy Missouri and Petro River Oil Corp., case number 13B4-CV00019) is a case for unlawful detainer, pursuant to which the plaintiffs contend that Mega West oil and gas lease has expired and Mega West is unlawfully possessing the plaintiffs real property by asserting that the leases remain in effect.  The case was originally filed in Vernon County, Missouri on September 20, 2013.  Mega West filed an Answer and Counterclaims on November 26, 2013 and the plaintiffs filed a motion to dismiss the counterclaims. Mega West filed a motion for Change of Judge and Change of Venue and the case was transferred to Barton County.  The court granted the motion to dismiss the counterclaims on February 3, 2014.  As to the other allegations in the complaint, the matter is still pending.

 

Mega West filed a second case on October 14, 2014 (Mega West Energy Missouri Corp. v. James Long, Jodeane Long, and Arrow Mines LLC, case number 14VE-CV00599).  This case is pending in Vernon County, Missouri.  Although the two cases are separate, they are interrelated.  In the Vernon County case, Mega West has made claims for: (1) replevin for personal property; (2) conversion of personal property; (3) breach of the covenant of quiet enjoyment regarding the lease; (4) constructive eviction of the lease; (5) breach of fiduciary obligation against James Long; (6) declaratory judgment that the oil and gas lease did not terminate; and (7) injunctive relief to enjoin the action pending in Barton County, Missouri.  The plaintiffs filed a motion to dismiss on November 4, 2014, and Arrow Mines, LLC filed a motion to dismiss on November 13, 2014.  Both motions remain pending, and Mega West will file an opposition to the motions in the near future. 

 

(e) The Company is from time to time involved in legal proceedings in the ordinary course of business. It does not believe that any of these claims and proceedings against it is likely to have, individually or in the aggregate, a material adverse effect on its financial condition or results of operations.

 

Significant Accounting Policies (Policies)

v2.4.0.8
Significant Accounting Policies (Policies)
3 Months Ended
Jul. 31, 2015
Accounting Policies [Abstract]  
Per Share Amounts

 

Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, which is the case for the three months ended July 31, 2015 and 2014, as presented in these financial statements, the weighted-average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. 

 

The Company had the following common stock equivalents at July 31, 2015 and 2014:

 

As at   July 31, 2015     July 31, 2014  
Stock Options     108,188,281       87,938,281  
Stock Purchase Warrants     67,291,667       40,625,000  
      175,479,948       128,563,281  

 

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014–09, Revenue from Contracts with Customers. Amendments in this Update create Topic 606, Revenue from Contracts with Customers, and supersede the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry–specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendments supersede the cost guidance in Subtopic 605–35, Revenue Recognition—Construction–Type and Production–Type Contracts, and create new Subtopic 340–40, Other Assets and Deferred Costs—Contracts with Customers. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2011–230—Revenue Recognition (Topic 605) and Proposed Accounting Standards Update 2011–250—Revenue Recognition (Topic 605): Codification Amendments, both of which have been deleted. Accounting Standards Update 2014–09. The amendments in this Update are effective for the Company for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the effects of ASU 2014–09 on the consolidated financial statements.

  

Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying condensed consolidated financial statements.  

Organization (Tables)

v2.4.0.8
Organization (Tables)
3 Months Ended
Jul. 31, 2015
Organization And Liquidity Tables  
Schedule of Pro Forma Basis, Results of Operations
        For the Three Months Ended  
        July 31, 2014  
Revenues       $ 1,033,092  
Net loss       (1,506,454 )
Loss per share of common share - Basic and diluted       $ (0.00 )
Weighted average number of common shares Outstanding - Basic and diluted         818,567,746  
Schedule of Non-controlling Interest
Non–controlling interest at April 30, 2015   $ 3,644,776  
Non–controlling share of net loss     (83,359 )
Non–controlling interest at July 31, 2015   $ 3,561,417  

Significant Accounting Policies (Tables)

v2.4.0.8
Significant Accounting Policies (Tables)
3 Months Ended
Jul. 31, 2015
Accounting Policies [Abstract]  
Schedule of Common Stock Equivalents
As at   July 31, 2015     July 31, 2014  
Stock Options     108,188,281       87,938,281  
Stock Purchase Warrants     67,291,667       40,625,000  
      175,479,948       128,563,281  

Oil and Gas Assets (Tables)

v2.4.0.8
Oil and Gas Assets (Tables)
3 Months Ended
Jul. 31, 2015
Extractive Industries [Abstract]  
Schedule of Oil and Gas Assets
Cost   Oklahoma     Kansas     Missouri     Other    

 

Total

 
Balance May 1, 2015   $ 6,935,000     $ 7,803,020     $ 918,991     $ 100,000     $ 15,757,011  
Additions     7,283       -       -       -       7,283  
Disposals     (279,013 )     -       -       -       (279,013 )
Depreciation, depletion and amortization     (23,037     (29,318 )     -       -       (52,355 )
Balance July 31, 2015   $ 6,640,233     $ 7,773,702     $ 918,991     $ 100,000     $ 15,432,926  

Intangible Assets (Tables)

v2.4.0.8
Intangible Assets (Tables)
3 Months Ended
Jul. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible assets
  Estimated useful life   July 31, 2015     April 30, 2015  
Patent rights 15 years   $ 2,223,686     $ 2,223,686  
Less: Accumulated amortization       (50,406 )     (20,293 )
Intangible assets, net     $ 2,173,280     $ 2,203,393  
Future annual amortization expense
April 30,      
2016 (remainder of year)   $ 89,602  
2017     119,469  
2018     119,469  
2019     119,469  
2020     119,469  
Thereafter     1,605,802  
    $ 2,173,280  

Asset Retirement Obligations (Tables)

v2.4.0.8
Asset Retirement Obligations (Tables)
3 Months Ended
Jul. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]  
Schedule of Changes to Asset Retirement Obligation
    July 31, 2015     April 30, 2015  
Balance, beginning of period   $ 918,430     $ 818,010  
Additions     -       52,514  
Accretion     10,056       47,906  
      928,486       918,430  
Less: Current portion for cash flows expected to be incurred within one year     (541,958 )     (541,959 )
Long-term portion, end of period   $ 386,528     $ 376,471  
Schedule of Expected Timing of Asset Retirement Obligations
Year Ending April 30,      
2016 (remainder of year)     541,958  
2017     212,000  
2018     -  
2019     -  
2020     -  
Thereafter     391,032  
      1,144,990  
Effect of discount     (216,504 )
Total   $ 928,486  

Stock Options (Tables)

v2.4.0.8
Stock Options (Tables)
3 Months Ended
Jul. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Changes in Stock Options
    Options    

Weighted Average

Exercise Prices

 
             
Outstanding April 30, 2015     108,188,281     $ 0.06  
Exercisable – April 30, 2015     31,648,280     $    
Granted     -     $ -  
Exercised     -     $ -  
Forfeited/Cancelled     -     $ -  
Outstanding July 31, 2015     108,188,281     $ 0.06  
Exercisable – July 31, 2015     33,108,280     $    
                 
Outstanding - Aggregate Intrinsic Value           $ -  
Exercisable - Aggregate Intrinsic Value           $ -  
Summary of Options Outstanding and Exercisable
      Options Outstanding   Options Exercisable  
Exercise Price   Options  

Weighted Avg.

Life Remaining

 

Weighted Avg.

Exercise Price

  Options  

Weighted Avg.

Exercise Price

 
$ 0.22     465,116   0.01 years   $ 0.22   465,116   $ 0.22  
$ 0.06     105,723,165   8.18 years     0.06   30,323,164     0.06  
$ 0.03     2,000,000   9.50 years   $ 0.03   2,320,000   $ 0.03  
        108,188,281              33,108,280        
Aggregate Intrinsic Value             $ -       $ -  
Summary of Warrants Outstanding and Exercisable
   

Number of

 Warrants

   

Weighted

Average

Exercise Price

   

Weighted

Average Life

Remaining

 
Outstanding and exercisable – April 30, 2015     67,291,667       0.10       2.29  
Forfeited     -       -       -  
Granted     -       -       -  
Outstanding and exercisable – July 31, 2015     67,291,667       0.10       2.04  

Organization (Details)

v2.4.0.8
Organization (Details) (USD $)
3 Months Ended
Jul. 31, 2014
Organization Details  
Revenues $ 1,033,092
Net loss $ (1,506,454)
Loss per share of common share - Basic and diluted $ 0.00
Weighted average number of common shares Outstanding - Basic and diluted 818,567,746

Organization (Details 1)

v2.4.0.8
Organization (Details 1) (USD $)
3 Months Ended
Jul. 31, 2015
Jul. 31, 2014
Organization And Liquidity Tables    
Non-controlling interest at beginning balance $ 3,644,776  
Non-controlling share of net loss (83,359) (402,711)
Non-controlling interest at Ending balance $ 3,561,417  

Organization (Details Narrative)

v2.4.0.8
Organization (Details Narrative) (USD $)
3 Months Ended 12 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended
Jul. 31, 2015
Jul. 31, 2014
Apr. 30, 2015
acre
Apr. 30, 2014
Apr. 30, 2015
OKLAHOMA
May 30, 2014
OKLAHOMA
acre
Jul. 08, 2015
Minimum [Member]
Jul. 08, 2014
Minimum [Member]
May 30, 2014
Ranger Station [Member]
Apr. 30, 2015
Petro's Former's Holder [Member]
Apr. 30, 2015
Petro [Member]
May 30, 2014
PWIG [Member]
May 30, 2014
Bandolier Energy LLC. [Member]
May 31, 2014
Clawback [Member]
May 30, 2014
Spyglass Energy Group, LLC [Member]
acre
Apr. 30, 2015
Persona West [Member]
Cash paid for purchase assets     $ 2,000,000                         $ 22,000,000
Non-Managing membership interest     25.00%                          
Land subject to leases, gross     115,000                          
Land subject to leases, net     85,000                          
Value of leased land     12,200,000                          
Number of stock newly issued during the period     591,021,011                          
Percentage of ownership interest                   80.00% 100.00%          
Percentage of minority ownership interest by parents                 6.00%     44.00% 50.00%      
Exchange for capital contribution    5,000,000 5,000,000                    5,000,000      
Cash consideration payment amount                 600,000     400,000        
Option exercisable date                       May 30, 2017        
Common stock price per share                       $ 0.08        
Number of shares grants during period      21,000,000 87,938,281               55,000,000        
Business acquisition for purchase price of issued and outstanding equity                         8,712,893 407,161 8,712,893  
Area of land for oil and gas           106,880                 106,000  
Working capital deficiency     1,100,000                          
Cash and cash equivalents 763,270 3,407,129 1,010,543 8,352,949                        
Stockholders' deficiency 14,008,847   14,464,848                          
Reverse split ratio             Not less than 1-for-2 Not greater than 1-for-250                
Impairment of oil and gas assets         (1,246,975)                      
Net income (loss) $ (684,931) $ (1,315,332) $ (6,344,579) $ (8,953,529)                        

Going Concern and Management’s Plan (Details Narrative)

v2.4.0.8
Going Concern and Management’s Plan (Details Narrative) (USD $)
Jul. 31, 2015
Apr. 30, 2015
Jul. 31, 2014
Apr. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Accumulated deficit $ (17,335,417) $ (16,650,486)    
Working capital 262,000      
Cash and cash equivalents $ 763,270 $ 1,010,543 $ 3,407,129 $ 8,352,949

Significant Accounting Policies - Schedule of Common Stock Equivalents (Details)

v2.4.0.8
Significant Accounting Policies - Schedule of Common Stock Equivalents (Details)
3 Months Ended
Jul. 31, 2015
Jul. 31, 2014
Common stock equivalent shares 175,479,948 128,563,281
Stock Options [Member]
   
Common stock equivalent shares 108,188,281 87,938,281
Stock Purchase Warrant [Member]
   
Common stock equivalent shares 67,291,667 40,625,000

Oil and Gas Assets (Details)

v2.4.0.8
Oil and Gas Assets (Details) (USD $)
3 Months Ended
Jul. 31, 2015
Balance at beginning $ 15,757,011
Additions 7,279
Disposals (279,013)
Depreciation, depletion and amortization (52,355)
Balance at ending 15,432,926
Oklahoma Bandolier [Member]
 
Balance at beginning 6,935,000
Additions 7,279
Disposals (279,013)
Depreciation, depletion and amortization (23,037)
Balance at ending 6,640,229
Kansas [Member]
 
Balance at beginning 7,803,020
Additions   
Disposals   
Depreciation, depletion and amortization (29,318)
Balance at ending 7,773,702
Missouri [Member]
 
Balance at beginning 918,991
Additions   
Disposals   
Depreciation, depletion and amortization   
Balance at ending 918,991
Other [Member]
 
Balance at beginning 100,000
Additions   
Disposals   
Balance at ending $ 100,000

Oil and Gas Assets (Details Narrative)

v2.4.0.8
Oil and Gas Assets (Details Narrative) (USD $)
3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended
Jul. 31, 2015
Apr. 30, 2015
acre
Jul. 31, 2015
Oklahoma Bandolier [Member]
Apr. 30, 2015
Oklahoma Bandolier [Member]
May 30, 2014
Oklahoma Bandolier [Member]
acre
Feb. 01, 2012
Kansas [Member]
acre
Jul. 31, 2015
Kansas [Member]
Apr. 30, 2014
Kansas [Member]
Jul. 31, 2015
Missouri [Member]
acre
Ownership interest         50.00% 25.00%      
Cash consideration paid for acquisition           $ 200,000      
Area of land for oil and gas         106,880        
Proved developed oil and gas assets         2,460,632        
Proven undeveloped oil and gas assets         5,921,641        
Additions 7,279   7,279              
(Disposals) (279,013)   (279,013)              
Non-Managing membership interest   25.00%              
Gross acres of oil and gas leases   115,000       115,000     389
Land subject to leases, net   85,000       85,000      
Value of leased land   12,200,000       12,200,000      
Impairment of oil and gas assets       $ 1,246,975       $ 4,638,973  
Percentage of working interest                 98.40%

Intangible Assets (Details)

v2.4.0.8
Intangible Assets (Details) (USD $)
3 Months Ended
Jul. 31, 2015
Apr. 30, 2015
Jul. 31, 2015
Patents [Member]
Estimated useful life     15 years
Patent rights $ 2,223,686 $ 2,223,686  
Less: Accumulated amortization (50,406) (20,293)  
Intangible assets, net $ 2,173,280 $ 2,203,393  

Intangible Assets (Details 1)

v2.4.0.8
Intangible Assets (Details 1) (USD $)
Jul. 31, 2015
Apr. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]    
2016 $ 89,602  
2017 119,469  
2018 119,469  
2019 119,469  
2020 119,469  
Thereafter 1,605,802  
Intangible assets, net $ 2,173,280 $ 2,203,393

Intangible Assets (Details Narrative)

v2.4.0.8
Intangible Assets (Details Narrative) (USD $)
3 Months Ended
Jul. 31, 2015
Jul. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]    
Amortization expense $ 30,113   

Asset Retirement Obligations (Details)

v2.4.0.8
Asset Retirement Obligations (Details) (USD $)
3 Months Ended 12 Months Ended
Jul. 31, 2015
Jul. 31, 2014
Apr. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]      
Asset Retirement Obligations, beginning of period $ 918,430 $ 818,010 $ 818,010
Additions      52,514
Accretion 10,056 12,642 216,504
Asset Retirement Obligations 928,486   918,430
Less: Current portion for cash flows expected to be incurred within one year (541,958)   (541,959)
Long-term portion, end of period $ 386,528   $ 376,471

Asset Retirement Obligations (Details 1)

v2.4.0.8
Asset Retirement Obligations (Details 1) (USD $)
3 Months Ended 12 Months Ended
Jul. 31, 2015
Jul. 31, 2014
Apr. 30, 2015
Apr. 30, 2014
Asset Retirement Obligation Disclosure [Abstract]        
2016 $ 541,958   $ 541,959  
2017 212,000      
2018         
2019         
2020         
Thereafter 391,032      
Total, before discount 1,144,990   1,143,857  
Effect of discount (10,056) (12,642) (216,504)  
Asset Retirement Obligations $ 928,486   $ 918,430 $ 818,010

Asset Retirement Obligations (Details Narrative)

v2.4.0.8
Asset Retirement Obligations (Details Narrative) (USD $)
3 Months Ended
Jul. 31, 2015
Apr. 30, 2015
Asset Retirement Obligation, future liability $ 1,144,990 $ 1,143,857
Credit-adjusted risk-free discount rate 10.00%  
Percentage of inflation rate 2.00%  
Reclamation deposits $ 0 $ 0
Minimum [Member]
   
Costs are expected to be incurred, minimum period 1 year  
Maximum [Member]
   
Costs are expected to be incurred, minimum period 24 years  

Stockholders' Equity (Details Narrative)

v2.4.0.8
Stockholders' Equity (Details Narrative) (USD $)
Jul. 31, 2015
Apr. 30, 2015
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, par value $ 0.00001 $ 0.00001
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Preferred B Shares [Member]
   
Preferred stock, shares authorized 29,500 29,500
Preferred stock, par value $ 0.00001 $ 0.00001
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0

Stock Options - Schedule of Changes in Stock Options (Details)

v2.4.0.8
Stock Options - Schedule of Changes in Stock Options (Details) (USD $)
3 Months Ended 12 Months Ended
Jul. 31, 2015
Apr. 30, 2015
Apr. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]      
Number of Options, Outstanding, beginning balance 108,188,281    
Number of Options, Exercisable, beginning balance 31,648,280    
Number of Options, Granted    21,000,000 87,938,281
Number of Options, Exercised       
Number of Options, Forfeited/Cancelled       
Number of Options, Outstanding, ending balance 108,188,281 108,188,281  
Number of Options, Exercisable, ending balance 33,108,280 31,648,280  
Weighted Avg. Exercise Price, Outstanding $ 0.06    
Weighted Avg. Exercise Price, Exercisable $ 0.06    
Weighted Avg. Exercise Price, Granted       
Weighted Avg. Exercise Price, Exercised       
Weighted Avg. Exercise Price, Forfeited/Cancelled       
Weighted Avg. Exercise Price, Outstanding $ 0.06 $ 0.06  
Weighted Avg. Exercise Price, Exercisable $ 0.06 $ 0.06  
Outstanding - Aggregate Intrinsic Value       
Exercisable - Aggregate Intrinsic Value       

Stock Options (Details 1)

v2.4.0.8
Stock Options (Details 1) (USD $)
3 Months Ended
Jul. 31, 2015
Options Outstanding 108,188,281
Options Exercisable 33,108,280
Options Outstanding - Aggregate Intrinsic Value   
Options Exercisable - Aggregate Intrinsic Value   
Exercise Price Range One [Member]
 
Exercise Price $ 0.22
Options Outstanding 465,116
Options Outstanding, Weighted Avg. Life Remaining 0 years 0 months 4 days
Options Outstanding, Weighted Avg. Exercise Price $ 0.22
Options Exercisable 465,116
Options Exercisable, Weighted Avg. Exercise Price $ 0.22
Exercise Price Range Two [Member]
 
Exercise Price $ 0.06
Options Outstanding 105,723,165
Options Outstanding, Weighted Avg. Life Remaining 8 years 6 months 15 days
Options Outstanding, Weighted Avg. Exercise Price $ 0.06
Options Exercisable 32,643,164
Options Exercisable, Weighted Avg. Exercise Price $ 0.06
Exercise Price Range Three [Member]
 
Exercise Price $ 0.03
Options Outstanding 2,000,000
Options Outstanding, Weighted Avg. Life Remaining 9 years 6 months
Options Outstanding, Weighted Avg. Exercise Price $ 0.03
Options Exercisable 2,320,000
Options Exercisable, Weighted Avg. Exercise Price $ 0.03

Stock Options (Details 2)

v2.4.0.8
Stock Options (Details 2) (USD $)
3 Months Ended
Jul. 31, 2015
Weighted Avg. Exercise Price, Granted   
Stock Purchase Warrants [Member]
 
Number of Warrants, Outstanding and exercisable, Beginning balance 67,291,667
Number of Warrants, Forfeited   
Number of Warrants, Granted   
Number of Warrants, Outstanding and exercisable, Ending balance 67,291,667
Weighted Avg. Exercise Price, Outstanding and exercisable $ 0.10
Weighted Avg. Exercise Price, Forfeited   
Weighted Avg. Exercise Price, Granted   
Weighted Avg. Exercise Price, Outstanding and exercisable $ 0.10
Weighted Avg. Life Remaining, Outstanding and exercisable, beginning 2 years 3 months 14 days
Weighted Avg. Life Remaining, Outstanding and exercisable, ending 2 years 14 days

Stock Options (Details Narrative)

v2.4.0.8
Stock Options (Details Narrative) (USD $)
3 Months Ended
Jul. 31, 2015
Jul. 31, 2014
Unrecognized stock based compensation expense $ 1,972,023  
Unrecognized Share-based Compensation, Period for Recognition 1 year 7 months 13 days  
Aggregate intrinsic value of warrants 0  
General and Administrative Expense [Member]
   
Allocated stock based compensation expense 228,930 189,244
Other (Expense) [Member]
   
Allocated stock based compensation expense   $ 0

Contingency and Contractual Obligations (Details Narrative)

v2.4.0.8
Contingency and Contractual Obligations (Details Narrative) (USD $)
0 Months Ended 1 Months Ended
Jan. 30, 2014
Feb. 28, 2014
Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]      
Landlord filed a statement against company for the amount $ 759,000 $ 665,000  
Amount collected by Railroad Commission of Taxes     25,000
Estimated cost of plug     $ 88,960