Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Net Loss $ (2,226,319) $ (2,416,092)
Adjustments to Reconcile Net Loss to Cash Used in Operating Activities:    
Impairment of Oil and Natural Gas Properties 396,273 2,424,885
Depreciation 6,667 6,667
Debt Discount Amortization 91,369 2,054,820
Capitalization of Interest Expense (2,823,899)
Loss Recorded to Interest Expense Related to Warrant Derivative Associated with the Issuance of Convertible Notes 32,539
Loss (Gain) on Debt Extinguishment (405,502) 1,513,334
Stock Based Compensation 96,875 470,457
(Gain) Loss on Derivative Financial Instruments 177,366 (2,636,473)
Changes in Operating Assets and Liabilities:    
Decrease in Accounts Receivable 37,233 3,476,998
Decrease in Prepaid Expenses and Other Current Assets 29,732 298,458
Decrease in Accounts Payable (206,858) (3,510,419)
(Decrease) Increase in Related Party Payable (13,515) 52,080
Increase in Accrued Interest Payable 462,203 719,172
Decrease in Deferred Credit (7,307) (28,448)
Net Cash Used in Operating Activities (1,561,782) (365,921)
Proceeds from Disposal of Property and Equipment 133,108 101,000
Insurance Proceeds Received Related to Oil and Natural Gas Properties 223,650 7,541,820
Investments in Oil and Natural Gas Properties (145,180) (2,573,050)
Purchases of Property and Equipment (2,165)
Net Cash Provided by Investing Activities 209,413 5,069,770
Payments on Convertible Notes Payable (2,920,650)
Payments on Notes Payable (320,527) (267,000)
Proceeds from Issuance of Convertible Notes Payable and Warrants 535,300
Net Cash Used in Financing Activities (320,527) (2,652,350)
Net Increase (Decrease) in Cash (1,672,897) 2,051,499
Beginning Cash Balance 3,190,418 1,138,919
Ending Cash Balance 1,517,522 3,190,418
Supplemental Schedule of Cash Flow Activities:    
Cash Paid for Interest, Net of Capitalized Amounts 424 5,272
Non-Cash Investing and Financing Activities:    
Prepaid Asset Financed Through Notes Payable 220,629
Common Stock Issued to Extinguish Accrued Interest 17,500 2,216,858
Derivative Liability Recorded at Issuance of Convertible Notes Recorded as Deferred Loan Costs 433,425
Settlement of Accrued Expenses by Issuance of Common Stock 1,613,775
Debt Issuance Costs Retained by Lender Related to Convertible Debentures 65,000
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 86,902 19,300
Reduction in Derivative Liability due to Loan Payment in Full 46,621  
Accrued PPP Loan Interest Forgiven 662  
Purchase of Capital Expenditures    
Included in Accounts Payable 2,960 35,917
Through Stock Based Compensation to Employees $ 497,800