Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Net Loss $ (2,416,092) $ (13,723,753)
Adjustments to Reconcile Net Loss to Cash Used in Operating Activities:    
Impairment of Oil and Natural Gas Properties 2,424,885 6,000,517
Depreciation 6,667 5,619
Debt Discount Amortization 2,054,820 625,919
Capitalization of Interest Expense (2,823,899) (1,109,823)
Loss Recorded to Interest Expense Related to Warrant Derivative Associated with the Issuance of Convertible Notes 32,539 1,758,073
Loss on Asset Retirement   3,835
Loss on Debt Extinguishment 1,513,334 5,099,340
Stock Based Compensation 470,457 744,945
Gain on Derivative Financial Instruments (2,636,473) (600,853)
Changes in Operating Assets and Liabilities:    
(Increase) Decrease in Accounts Receivable 3,476,998 (5,843,958)
Decrease in Prepaid Expenses and Other Current Assets 298,458 41,179
Decrease in Deposits from Joint Interest Owners   (4,078,786)
Increase (Decrease) in Accounts Payable (3,510,419) 4,065,384
Increase in Related Party Payable 52,080 59,518
Increase in Accrued Interest Payable 719,172 549,978
(Decrease) in Deferred Credit (28,448)  
(Decrease) in Other Assets/Liabilities, net   (1,978)
Net Cash Used in Operating Activities (365,921) (6,404,844)
Lease Rentals Paid   (61,629)
Proceeds from Sale of Property, Plant and Equipment 101,000  
Insurance Proceeds Received Related to Oil and Natural Gas Properties 7,541,820 860,680
Investments in Oil and Natural Gas Properties (2,573,050) (11,419,188)
Deposits for and Purchases of Property, Plant & Equipment   (7,681)
Net Cash Provided by (Used in) Investing Activities 5,069,770 (10,627,818)
Payments on Convertible Notes Payable (2,920,650) (146,310)
Payments on Notes Payable (267,000)  
Proceeds from Issuance of Convertible Notes Payable and Warrants 535,300 13,252,000
Deferred Loan and Equity Issuance Costs   (555,923)
Net Cash Provided by (Used in) Financing Activities (2,652,350) 12,549,767
Net Increase (Decrease) in Cash 2,051,499 (4,482,895)
Beginning Cash Balance 1,138,919 5,621,814
Ending Cash Balance 3,190,418 1,138,919
Supplemental Schedule of Cash Flow Activities:    
Cash Paid for Interest, Net of Capitalized Amounts 5,272 4,343
Non-Cash Investing and Financing Activities:    
Prepaid Asset Financed Through Notes Payable 220,629 146,310
Funds Received from Capital Raise Transferred to Equity Upon Issuance of Common Stock   965,800
Common Stock Issued upon Conversion of Convertible Notes Payable and Accrued Interest 2,216,858  
Term Loans Extinguished Through Exercise of Warrants   10,000,000
Derivative Liability Recorded at Issuance of Convertible Notes Recorded as Deferred Loan Costs 433,425 2,137,450
Warrants Issued with Term Loans and Bridge Financing Note Extensions recorded as Deferred Loan Costs   5,349,374
Settlement of Accrued Expenses by Issuance of Common Stock 1,613,775  
Debt Issuance Costs Retained by Lender Related to Convertible Debentures 65,000 333,000
Accounts Receivable Exchanged for Working Interest in Oil and Natural Gas Properties 3,629,789  
Reduction of Oil and Natural Gas Properties due to Vendor Credits Received 2,311,247  
Accounts Receivable Recovery through Vendor Credits Received 4,591,484  
Warrants Issued to extend maturity of debt instrument 19,300 152,078
Accrued Professional Fees Recorded as Deferred Loan Costs   17,296
Accrued Professional Fees Capitalized as Equity Issuance Costs   142,051
Purchase of Capital Expenditures    
Included in Accounts Payable 35,917 2,611,913
Through Stock Based Compensation to Employees $ 497,800 $ 884,839