10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number: 000-55539

PARK PLACE ENERGY INC.

(Exact name of small business issuer as specified in its charter)

Delaware	47-4488552
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2200 Ross Ave., Suite 4500E Dallas, TX USA	75201
(Address of principal executive offices)	(Zip Code)

(214) 220-4340

Registrant’s telephone number, including area code

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨    (Do not check if a smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 49,981,482 shares of common stock as of May 6, 2016.

PARK PLACE ENERGY INC.

Form 10-Q

Table of Contents

	Caption	Page
PART I – FINANCIAL INFORMATION			3
Item 1.	Financial Statements		3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		11
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		15
Item 4.	Controls and Procedures		15
PART II – OTHER INFORMATION			15
Item 1.	Legal Proceedings		15
Item 1A.	Risk Factors		15
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		15
Item 3.	Defaults Upon Senior Securities		15
Item 4.	Mine Safety Disclosures		15
Item 5.	Other Information		15
Item 6.	Exhibits		16
SIGNATURES			17

2

PART I

Item 1. Financial Statements

PARK PLACE ENERGY INC.

Consolidated Balance Sheets

	March 31, 2016			December 31, 2015
	(unaudited)
ASSETS
Current assets:
Cash	$	29,196		$	75,561
Receivables		143			583
Prepaid expenses and deposits		17,612			13,347
Total current assets		46,951			89,491
Oil and gas properties		2,769,557			2,701,182
Deposit for Tiway acquisition		500,000			500,000
Note receivable		41,063			39,490
Total assets	$	3,357,571		$	3,330,163
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	263,647		$	119,006
Total liabilities		263,647			119,006
Commitments and contingencies
Stockholders’ equity:
Common stock
Authorized: 250,000,000 shares, par value $0.00001
Issued and outstanding: 45,731,482 shares		457			457
Additional paid-in capital		17,289,158			17,258,619
Stock subscriptions and stock to be issued		375,000			350,000
Accumulated other comprehensive gain		965			1,190
Accumulated deficit		(14,571,656	)		(14,399,109	)
Total stockholders’ equity		3,093,924			3,211,157
Total liabilities and stockholders’ equity	$	3,357,571		$	3,330,163

See accompanying notes to consolidated financial statements.

3

PARK PLACE ENERGY INC.

Consolidated Statements of Operations

(unaudited)

	Three Months Ended March 31,
	2016			2015
Expenses
General and administrative	$	177,528		$	216,431
Total expenses		177,528			216,431
Loss before other expenses		(177,528	)		(216,431	)
Other income (expenses)
Foreign exchange gain (loss)		4,981			(49,089	)
Total other income (expenses)		4,981			(49,089	)
Net loss for the period	$	(172,547	)	$	(265,520	)
Loss per share, basic and diluted	$	(0.00	)	$	(0.01	)
Weighted average number of shares outstanding		49,827,636			45,725,535

See accompanying notes to consolidated financial statements.

PARK PLACE ENERGY INC.

Consolidated Statements of Comprehensive Loss

(unaudited)

	Three Months Ended March 31,
	2016			2015
Net loss for the period	$	(172,547	)	$	(265,520	)
Other comprehensive income (loss):
Foreign currency cumulative translation adjustment		(225	)		643
Comprehensive loss for the period	$	(172,772	)	$	(264,877	)

See accompanying notes to consolidated financial statements.

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PARK PLACE ENERGY INC.

Consolidated Statement of Stockholders’ Equity

(unaudited)

	Common Stock				Additional paid-in capital		Stock subscriptions and stock to be issued		Accumulated other comprehensive income			Accumulated deficit			Total
	Shares		Amount
Balance, December 31, 2015		45,731,482	$	457	$	17,258,619	$	350,000	$	1,190		$	(14,399,109	)	$	3,211,157
Stock subscriptions received		—		—		—		25,000		—			—			25,000
Stock-based compensation expense		—		—		18,200		—		—			—			18,200
Capitalized stock based compensation		—		—		12,339		—		—			—			12,339
Currency translation adjustment		—		—		—		—		(225	)		—			(225	)
Net loss		—		—		—		—		—			(172,547	)		(172,547	)
Balance, March 31, 2016		45,731,482	$	457	$	17,289,158	$	375,000	$	965		$	(14,571,656	)	$	3,093,924

See accompanying notes to consolidated financial statements.

5

PARK PLACE ENERGY INC.

Consolidated Statements of Cash Flows

(unaudited)

	Three Months Ended March 31,
	2016			2015
Operating activities:
Net loss for the period	$	(172,547	)	$	(265,520	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		18,200			10,375
Changes in operating assets and liabilities:
Receivables		440			2,858
Prepaid expenses and deposits		(4,265	)		(1,296	)
Accounts payable and accrued liabilities		99,976			(57,175	)
Net cash used in operating activities		(58,196	)		(310,758	)
Investing activities:
Issuance of note receivable		(1,573	)		—
Oil and gas properties expenditures		(11,371	)		(97,599	)
Net cash used in investing activities		(12,944	)		(97,599	)
Financing activities:
Proceeds from stock subscriptions received		25,000			—
Net cash provided by financing activities		25,000			—
Effect of exchange rate changes on cash and cash equivalents		(225	)		643
Decrease in cash		(46,365	)		(407,714	)
Cash, beginning of period		75,561			1,539,439
Cash, end of period	$	29,196		$	1,131,725
Non-cash investing and financing activities:
Oil and gas expenditures included in accounts payable	$	44,665		$	19,678
Restricted stock issued for oil and gas properties	$	19,059		$	85,200
Stock issued for restricted stock units	$	—		$	46,116

See accompanying notes to consolidated financial statements.

6

PARK PLACE ENERGY INC.

Notes to the Consolidated Financial Statements

(unaudited)

1) Summary of Significant Accounting Policies

(a) Basis of Presentation

These consolidated financial statements are unaudited and have been prepared from the books and records of Park Place Energy Inc. and its consolidated subsidiaries (“Park Place”, the “Company”, “we”, or “our”). In our opinion, all normal and recurring adjustments necessary for a fair presentation of the financial position of the Company as of March 31, 2016, and the results of operations for the three months ended March 31, 2016 and 2015, and cash flows for the three months ended March 31, 2016 and 2015, have been made in conformity with generally accepted accounting principles. All significant intercompany accounts and transactions have been eliminated. These interim financial statements and notes are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited consolidated financial statements of the Company included in its Form 10-K for the year ended December 31, 2015.

(b) Loss Per Share

The Company computes loss per share of Company stock in accordance with ASC 260 (“Earnings per Share”), which requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing the loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes dilutive potential shares if their effect is anti-dilutive. For the three months ended March 31, 2016 and 2015, the Company had 15,268,001 and 14,370,993 potentially dilutive shares outstanding that were excluded for the diluted EPS calculation, respectively.

2.) Going Concern

As shown in the accompanying consolidated financial statements, the Company has no revenues and has incurred continuous losses from operations and had an accumulated deficit of $14,571,656 at March 31, 2016. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management is actively pursuing new ventures to increase revenues. In addition, the Company is currently seeking additional sources of capital to fund short term operations. The Company, however, is dependent upon its ability to secure equity and/or debt financing and there are no assurances that the Company will be successful, therefore, without sufficient financing it would be unlikely for the Company to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company’s ability to continue as a going concern. The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

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3.) Oil and Gas Properties

	March 31, 2016		December 31, 2015
Unproven properties
Bulgaria	$	2,769,557	$	2,701,182

The Company holds a 98,205 acre oil and gas exploration claim in the Dobrudja Basin located in northeast Bulgaria. The Company intends to conduct exploration for natural gas and test production activities over a five year period in accordance with or exceeding its minimum work program obligation. The Company intends to commence its work program efforts once it receives all regular regulatory approvals of its work programs.

4.) Note Receivable

In April 2015, the Company loaned $38,570 to a Bulgarian company pursuant to a revolving credit facility, enabling such Bulgarian company to buy and manage land in Bulgaria to be leased by the Company for future well sites. The credit facility has a maximum loan obligation of BGN 1,000,000 ($576,900 at March 31, 2016), bears interest at 6.32%, has a five-year term and is secured by the land the Bulgarian company buys. Payment on the facility is due the earlier of the end of the five-year term (April 6, 2020) or demand by the Company. As of March 31, 2016 the outstanding balance on the loan obligation was $41,063.

5.) Tiway Acquisition

The Company entered into a share purchase agreement on December 22, 2015 to acquire the three subsidiaries of Tiway Oil B.V. (“Tiway”), a company currently in bankruptcy in the Netherlands. These Tiway subsidiaries are oil and gas exploration and production companies operating in the Republic of Turkey. They own interests in 3 producing oil and gas fields, one offshore and two onshore, as well as a number of exploration licenses and operate one of the onshore fields. Current production for the Tiway subsidiaries is about 430 Boe/d (barrels per day equivalent). The purchase price is $2.1 million USD and the Company paid at signing a $500,000 deposit toward the purchase price. Prior to submitting the winning bid in the bankruptcy auction, the Company spent the prior 6 months actively gathering and evaluating a large amount of data derived from earlier exploration and production activities on Tiway properties.

The transaction is subject to obtaining the approval of two regulatory agencies in Turkey, the GDPA which regulates the oil and gas licenses and EMRA which regulates gas marketing. The applications plus supplementary materials have been submitted. During the period prior to closing, in consultation with the Tiway staff and partners in the various fields, the Company has prepared work programs for 2016 and into the future.

The transaction was scheduled for closing April 28, 2016, that date has been extended until May 26, 2016 to allow sufficient time to secure the approvals from the respective regulatory agencies. To facilitate closing, the Company has formed a new wholly owned subsidiary, Park Place Energy (Bermuda) Ltd. which will become the acquirer of the shares of the Tiway subsidiaries

6.) Common Stock

In March 2016, the Company received subscriptions for 250,000 shares of common stock at $0.10 per share for total proceeds of $25,000 which is included in stock subscriptions received.

8

7.) Stock Options

The following table summarizes the Company’s stock options as of March 31, 2016.

	Number of options			Weighted average exercise price		Weighted average fair value		Aggregate intrinsic value
Outstanding, December 31, 2015		2,250,000		$	0.17	$	0.14	$	—
Granted		—			—		—		—
Expired		(100,000	)	$	0.10		—		—
Outstanding, March 31, 2016		2,150,000		$	0.17	$	0.14	$	—

Additional information regarding stock options as of March 31, 2016, is as follows:

	Outstanding			Exercisable
Range of exercise prices	Number of shares	Weighted average remaining contractual life (years)	Weighted average exercise price	Number of shares	Weighted average exercise price
$0.10	950,000	1.7	$    0.10	950,000	$    0.10
$0.14	150,000	2.0	$    0.14	150,000	$    0.14
$0.20	100,000	0.8	$    0.20	50,000	$    0.20
$0.23-0.235	850,000	0.6	$    0.23	825,000	$    0.23
$0.28	100,000	1.3	$    0.28	50,000	$    0.28
	2,150,000	1.3	$    0.17	2,025,000	$    0.16

There was no compensation expense related to stock options recognized during the three months ended March 31, 2016 and 2015. At March 31, 2016, the Company had $25,130 in unrecognized compensation expense related to stock options that will be expensed through January 2017.

8.) Restricted Stock Units

	Number of restricted stock units		Weighted average fair value per award
Balance, December 31, 2015		2,118,001	$	0.18
Issued		—	$	—
Vested		—	$	—
Balance, March 31, 2016		2,118,001	$	0.18

For the three months ended March 31, 2016 and 2015, restricted stock expense recorded as stock-based compensation was $18,200 and $10,375, respectively, and capitalized stock based compensation was $12,339 and $85,200, respectively.

At March 31, 2016 unrecognized compensation expense related to RSUs totaled $81,435 that will be recognized over a weighted average period of approximately eight months.

9.) Segment Information

The Company’s operations are in the resource industry in Bulgaria with head offices in the United States and a satellite office in Sofia, Bulgaria. The Company operates as a single reportable segment and its oil and gas properties are located in Bulgaria.

9

10.) Income Taxes

The Company is subject to United States federal and state income taxes at a rate of 34%. The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax expense as reported is as follows:

	Three Months Ended March 31,
	2016			2015
Benefit at statutory rate	$	(58,666	)	$	(90,277	)
Permanent differences and other		134			161
Valuation allowance change		58,532			90,116
Income tax provision	$	—		$	—

10

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to provide readers of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity, and certain other factors that may affect our future results. Our MD&A is presented in the following sections:

• Executive Summary

• Results of Operations

• Liquidity and Capital Resources

• Recent Accounting Pronouncements

• Forward-Looking Statements.

Our MD&A should be read in conjunction with our unaudited financial statements of Park Place Energy Inc. (“Park Place”, Company”, “we”, and “our”) and related Notes in Part I, Item 1 of the Quarterly Report on Form 10-Q and Item 8, Financial Statements and Supplementary Data, of the Annual Report on Form 10-K for the year ended December 31, 2015.

Our website can be found at www.parkplaceenergy.com. Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed with or furnished to the U.S. Securities and Exchange Commission (“SEC”), pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (“Exchange Act”), can be accessed free of charge by linking directly from our website under the “Investor Relations—SEC Filings” caption to the SEC’s Edgar Database.

Executive Summary

Park Place is an energy company engaged in oil and gas exploration in Bulgaria.

On November 12, 2015, Park Place became the successor registrant to Park Place Energy Corp, a Nevada corporation (“PPEC Nevada”), following a reincorporation merger, approved by the stockholders of PPEC Nevada to provide a better organizational structure for future acquisitions and management of operations. See Park Place’s Annual Report on Form 10-K for the year ended December 31, 2015 for more information on the reincorporation.

The Company holds a 98,205 acre oil and gas exploration claim in the Dobrudja Basin located in northeast Bulgaria. The Company intends to conduct exploration for natural gas and test production activities over a five year period in accordance with or exceeding its minimum work program obligation. The Company intends to commence its work program efforts once it receives all regular regulatory approvals of its work programs.

On August 26, 2014, the Bulgarian environmental agency approved the Company’s overall work program and first year annual work program. A number of parties appealed the decision of the environmental agency and an appeal proceeding was commenced before an administrative judge panel. Since then, there have been several hearings resulting in a number of appellants being dismissed and empaneling a panel of experts to confirm the correctness of the approval by the environmental agency. The next hearing has not yet been scheduled. The Company is participating in that proceeding as an interested party. The Company is continuing its data gathering, evaluation and planning, is acquiring the land for future well sites and is performing an environmental baseline survey of the license area. The initial term of the License Agreement will not begin until (i) the appeal proceeding is completed and the decision upheld and (ii) the Bulgarian energy agency has approved the Company’s work programs.

The Company entered into a share purchase agreement on December 22, 2015 to acquire the three subsidiaries of Tiway Oil B.V. (“Tiway”), a company currently in bankruptcy in the Netherlands. These Tiway subsidiaries are oil and gas exploration and production companies operating in the Republic of Turkey. They own interests in 3 producing oil and gas fields, one offshore and two onshore, as well as a number of exploration licenses and operate one of the onshore fields. Current production for the Tiway subsidiaries is about 430 Boe/d (barrels per day equivalent). The purchase price is $2.1 million USD and the Company paid at signing a $500,000 deposit toward the purchase price. Prior to submitting the winning bid in the bankruptcy auction, the Company spent the prior 6 months actively gathering and evaluating a large amount of data derived from earlier exploration and production activities on Tiway properties.

11

The transaction is subject to obtaining the approval of two regulatory agencies in Turkey, the GDPA (which regulates the oil and gas licenses) and EMRA (which regulates gas marketing). The applications, plus supplementary materials, have been submitted. During the period prior to closing, in consultation with the Tiway staff and partners in the various fields, the Company has prepared work programs for 2016 and into the future.

The transaction was originally scheduled for closing April 28, 2016, that date has been extended until May 26, 2016 to allow sufficient time to secure the approvals from the respective regulatory agencies. To facilitate closing, the Company has formed a new wholly owned subsidiary, Park Place Energy (Bermuda) Ltd. which will become the acquirer of the shares of the Tiway subsidiaries.

Results of Operations

The following summary of our results of operations should be read in conjunction with our unaudited consolidated financial statements for the periods ended March 31, 2016 and 2015, which are included herein.

Revenue

We are a pre-revenue stage company, and our future revenues depend upon successful exploration of oil and gas assets.

Expenses

Our general and administrative expenses for the three months ended March 31, 2016 were $177,528 compared to $216,431 for the three months ended March 31, 2015. The decrease was primarily due to reduced consulting and professional services costs.

Other Income (Expenses)

For the three months ended March 31, 2016, other income was $4,981 due to a foreign exchange gain. For the three months ended March 31, 2015, other expense was a loss of $49,089 attributable to foreign exchange losses.

Loss

Our net loss for the three months ended March 31, 2016 was $172,547 compared to a loss of $265,520 for the three months ended March 31, 2015. The decrease in net loss was a result of decreased activities in all areas of operations and the factors described above.

12

Liquidity and Capital Resources

The following table summarizes our liquidity position:

	March 31, 2016 (Unaudited)			December 31, 2015
Cash	$	29,196		$	75,561
Working deficit		(216,696	)		(29,515	)
Total assets		3,357,571			3,330,163
Total liabilities		263,647			119,006
Stockholders’ equity		3,093,924			3,211,157

Cash Used in Operating Activities

We used net cash of $58,196 in operating activities for the three months ended March 31, 2016 compared to $310,758 for the three months ended March 31, 2015. The decrease was due to decreased activities in all areas of operations.

Cash Flow from Investing Activities

Net cash used in investing activities for the three months ended March 31, 2016 was $12,944 compared to $97,599 for the three months ended March 31, 2015. This decrease was primarily due to decreased expenditures on the Bulgarian project.

Cash Provided by Financing Activities

We have funded our business to date primarily from sales of our common stock through private placements. During the three months ended March 31, 2016, we received cash of $25,000 for stock subscriptions. We did not have any common stock sales during the three months ended March 31, 2015.

Future Operating Requirements

Based on our current plan of operations, we estimate that we will require approximately $3.6 million to pursue our plan of operations over the next 12 months: $1.6 million to close the acquisition of the Tiway companies, $1.1 million for planned work programs on assets owned by the Tiway companies post-acquisition and $900,000 for ongoing operating costs and corporate expenditures.

The Company has no revenues and has incurred continuous losses from operations and had an accumulated deficit of $14,571,656 at March 31, 2016. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management is actively pursuing new ventures to increase revenues. In addition, the Company is currently seeking additional sources of capital to fund short term operations and fund the Tiway acquisition. The Company, however, is dependent upon its ability to secure equity and/or debt financing and there are no assurances that the Company will be successful, therefore, without sufficient financing it would be unlikely for the Company to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company’s ability to continue as a going concern. The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

13

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Forward-Looking Information

Certain statements in this Quarterly Report on Form 10-Q constitute “forward-looking statements” within the meaning of applicable U.S. securities legislation. Additionally, forward-looking statements may be made orally or in press releases, conferences, reports, on our website or otherwise, in the future, by us or on our behalf. Such statements are generally identifiable by the terminology used such as “plans,” “expects,” “estimates,” “budgets,” “intends,” “anticipates,” “believes,” “projects,” “indicates,” “targets,” “objective,” “could,” “should,” “may” or other similar words.

By their very nature, forward-looking statements require us to make assumptions that may not materialize or that may not be accurate. Forward-looking statements are subject to known and unknown risks and uncertainties and other factors that may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements, including the factors discussed under Item 1A. Risk Factors in our most recent Annual Report on Form 10-K. Such factors include, but are not limited to, the following: fluctuations in and volatility of the market prices for oil and natural gas products; the ability to produce and transport oil and natural gas; the results of exploration and development drilling and related activities; global economic conditions, particularly in the countries in which we carry on business, especially economic slowdowns; actions by governmental authorities including increases in taxes, legislative and regulatory initiatives related to fracture stimulation activities, changes in environmental and other regulations, and renegotiations of contracts; political uncertainty, including actions by insurgent groups or other conflicts; the negotiation and closing of material contracts; future capital requirements and the availability of financing; estimates and economic assumptions used in connection with our acquisitions; risks associated with drilling, operating and decommissioning wells; actions of third-party co-owners of interests in properties in which we also own an interest; our ability to effectively integrate companies and properties that we acquire; our limited operating history; our history of operating losses; our lack of insurance coverage; and the other factors discussed in other documents that we file with or furnish to the U.S. Securities and Exchange Commission. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are interdependent upon other factors and our course of action would depend upon our assessment of the future, considering all information then available. In that regard, any statements as to: future oil or natural gas production levels; capital expenditures; the allocation of capital expenditures to exploration and development activities; sources of funding for our capital expenditure programs; drilling of new wells; demand for oil and natural gas products; expenditures and allowances relating to environmental matters; dates by which certain areas will be developed or will come on-stream; expected finding and development costs; future production rates; ultimate recoverability of reserves, including the ability to convert probable and possible reserves to proved reserves; dates by which transactions are expected to close; future cash flows, uses of cash flows, collectability of receivables and availability of trade credit; expected operating costs; changes in any of the foregoing and other statements using forward-looking terminology are forward-looking statements, and there can be no assurance that the expectations conveyed by such forward-looking statements will, in fact, be realized.

Although we believe that the expectations conveyed by the forward-looking statements are reasonable based on information available to us on the date such forward-looking statements were made, no assurances can be given as to future results, levels of activity, achievements or financial condition.

Readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results, which may not occur as anticipated. Actual results could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described above, as well as others not now anticipated. The foregoing statements are not exclusive and further information concerning us, including factors that potentially could materially affect our financial results, may emerge from time to time. We do not intend to update forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable because we are a smaller reporting company.

Item 4. Controls and Procedures

Evaluation of Disclosure of Controls and Procedures

We carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of March 31, 2016 (the “Evaluation Date”). This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, we concluded that our disclosure controls and procedures were effective.

We believe that our consolidated financial statements contained in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 fairly present our financial condition, results of operations and cash flows in all material respects.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are not currently involved in any legal proceedings and we are unaware of any pending proceedings, except that the Company is a participant as an interested party in opposition to the appeals that have been filed in Bulgaria against the Bulgarian environmental agency that approved the Company’s overall work program and first year annual work program.

Item 1A. Risk Factors

Not applicable because we are a smaller reporting company. See risk factors described in Item 1A of the Company’s most recent Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mining Safety Disclosures

Not applicable.

Item 5. Other Information

None

15

Item 6. Exhibits

31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities and Exchange Act of 1934, as amended
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities and Exchange Act of 1934, as amended
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The Company’s unaudited Condensed Consolidated Financial Statements and related Notes for the quarter ended March 31, 2016 from this Quarterly Report on Form 10-Q, formatted in XBRL (eXtensible Business Reporting Language).

16

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

PARK PLACE ENERGY INC.
By:	/s/ “Scott C. Larsen”
	Scott C. Larsen
	President and CEO (Principal Executive Officer)
	Date: May 13, 2016
By:	/s/ “Charles Michel”
	Charles Michel
	Chief Financial Officer (Principal Financial Officer)
	Date: May 13, 2016

17

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Scott C. Larsen, certify that:

1. I have reviewed this report on Form 10-Q for the quarterly period ended March 31, 2016 of Park Place Energy Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 13, 2016

/s/ “Scott C. Larsen”
By:	Scott C. Larsen
Title:	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Charles Michel, certify that:

1. I have reviewed this report on Form 10-Q for the quarterly period ended March 31, 2016 of Park Place Energy Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 13, 2016

/s/ “Charles Michel”
By:	Charles Michel
Title:	Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Scott C. Larsen, President and Chief Executive Officer and Charles Michel, the Chief Financial Officer, of Park Place Energy Inc. (the “Company”), hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to their knowledge, the Quarterly Report on Form 10-Q for the period ended March 31, 2016, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Quarterly Report on Form 10-Q, as amended, fairly presents in all material respects the financial condition and results of operations of the Company.

/s/ “Scott C. Larsen”

Scott C. Larsen

President and CEO (Principal Executive Officer)

Date: May 13, 2016

/s/“Charles Michel”

Charles Michel

Chief Financial Officer (Principal Financial Officer)

Date: May 13, 2016

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signatures that appear in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 06, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Trading Symbol	PKPL
Entity Registrant Name	Park Place Energy Inc.
Entity Central Index Key	0001648636
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		49,981,482

XML

Consolidated Balance Sheets - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash	$ 29,196	$ 75,561
Receivables	143	583
Prepaid expenses and deposits	17,612	13,347
Total current assets	46,951	89,491
Oil and gas properties	2,769,557	2,701,182
Deposit for Tiway acquisition	500,000	500,000
Note receivable	41,063	39,490
Total assets	3,357,571	3,330,163
Current liabilities:
Accounts payable and accrued liabilities	263,647	119,006
Total liabilities	$ 263,647	$ 119,006
Commitments and contingencies
Stockholders' equity:
Common stock Authorized: 250,000,000 shares, par value $0.00001 Issued and outstanding: 45,731,482 shares	$ 457	$ 457
Additional paid-in capital	17,289,158	17,258,619
Stock subscriptions and stock to be issued	375,000	350,000
Accumulated other comprehensive gain	965	1,190
Accumulated deficit	(14,571,656)	(14,399,109)
Total stockholders' equity	3,093,924	3,211,157
Total liabilities and stockholders' equity	$ 3,357,571	$ 3,330,163

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, shares authorized	250,000,000	250,000,000
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares issued	45,731,482	45,731,482
Common stock, shares outstanding	45,731,482	45,731,482

XML

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Expenses
General and administrative	$ 177,528	$ 216,431
Total expenses	177,528	216,431
Loss before other expenses	(177,528)	(216,431)
Other income (expenses)
Foreign exchange gain (loss)	4,981	(49,089)
Total other income (expenses)	4,981	(49,089)
Net loss for the period	$ (172,547)	$ (265,520)
Loss per share, basic and diluted	$ 0.00	$ (0.01)
Weighted average number of shares outstanding	49,827,636	45,725,535

XML

Consolidated Statements of Comprehensive Loss - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss for the period	$ (172,547)	$ (265,520)
Other comprehensive income (loss):
Foreign currency cumulative translation adjustment	(225)	643
Comprehensive loss for the period	$ (172,772)	$ (264,877)

XML

Consolidated Statement of Stockholders' Equity - 3 months ended Mar. 31, 2016 - USD ($)	Total	Common Stock [Member]	Additional paid-in capital [Member]	Stock subscriptions and stock to be issued [Member]	Accumulated other comprehensive income [Member]	Accumulated Deficit [Member]
Beginning Balance at Dec. 31, 2015	$ 3,211,157	$ 457	$ 17,258,619	$ 350,000	$ 1,190	$ (14,399,109)
Beginning Balance, Shares at Dec. 31, 2015	45,731,482	45,731,482
Stock subscriptions received	$ 25,000			25,000
Stock-based compensation expense	18,200		18,200
Capitalized stock based compensation	12,339		12,339
Currency translation adjustment	(225)				(225)
Net loss	(172,547)					(172,547)
Ending Balance at Mar. 31, 2016	$ 3,093,924	$ 457	$ 17,289,158	$ 375,000	$ 965	$ (14,571,656)
Ending Balance, Shares at Mar. 31, 2016	45,731,482	45,731,482

XML

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities:
Net loss for the period	$ (172,547)	$ (265,520)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	18,200	10,375
Changes in operating assets and liabilities:
Receivables	440	2,858
Prepaid expenses and deposits	(4,265)	(1,296)
Accounts payable and accrued liabilities	99,976	(57,175)
Net cash used in operating activities	(58,196)	(310,758)
Investing activities:
Issuance of note receivable	(1,573)
Oil and gas properties expenditures	(11,371)	(97,599)
Net cash used in investing activities	(12,944)	(97,599)
Financing activities:
Proceeds from stock subscriptions received	25,000
Net cash provided by financing activities	25,000
Effect of exchange rate changes on cash and cash equivalents	(225)	643
Decrease in cash	(46,365)	(407,714)
Cash, beginning of period	75,561	1,539,439
Cash, end of period	29,196	1,131,725
Non-cash investing and financing activities:
Oil and gas expenditures included in accounts payable	44,665	19,678
Restricted stock issued for oil and gas properties	$ 19,059	85,200
Stock issued for restricted stock units		$ 46,116

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1) Summary of Significant Accounting Policies

(a) Basis of Presentation

These consolidated financial statements are unaudited and have been prepared from the books and records of Park Place Energy Inc. and its consolidated subsidiaries (“Park Place”, the “Company”, “we”, or “our”). In our opinion, all normal and recurring adjustments necessary for a fair presentation of the financial position of the Company as of March 31, 2016, and the results of operations for the three months ended March 31, 2016 and 2015, and cash flows for the three months ended March 31, 2016 and 2015, have been made in conformity with generally accepted accounting principles. All significant intercompany accounts and transactions have been eliminated. These interim financial statements and notes are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited consolidated financial statements of the Company included in its Form 10-K for the year ended December 31, 2015.

(b) Loss Per Share

The Company computes loss per share of Company stock in accordance with ASC 260 (“Earnings per Share”), which requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing the loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes dilutive potential shares if their effect is anti-dilutive. For the three months ended March 31, 2016 and 2015, the Company had 15,268,001 and 14,370,993 potentially dilutive shares outstanding that were excluded for the diluted EPS calculation, respectively.

XML

Going Concern

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Going Concern

2.) Going Concern

As shown in the accompanying consolidated financial statements, the Company has no revenues and has incurred continuous losses from operations and had an accumulated deficit of $14,571,656 at March 31, 2016. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management is actively pursuing new ventures to increase revenues. In addition, the Company is currently seeking additional sources of capital to fund short term operations. The Company, however, is dependent upon its ability to secure equity and/or debt financing and there are no assurances that the Company will be successful, therefore, without sufficient financing it would be unlikely for the Company to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company’s ability to continue as a going concern. The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

XML

Oil and Gas Properties

3 Months Ended

Mar. 31, 2016

Extractive Industries [Abstract]

Oil and Gas Properties

3.) Oil and Gas Properties

	March 31, 2016		December 31, 2015
Unproven properties
Bulgaria	$	2,769,557	$	2,701,182

The Company holds a 98,205 acre oil and gas exploration claim in the Dobrudja Basin located in northeast Bulgaria. The Company intends to conduct exploration for natural gas and test production activities over a five year period in accordance with or exceeding its minimum work program obligation. The Company intends to commence its work program efforts once it receives all regular regulatory approvals of its work programs.

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Note Receivable

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Note Receivable

4.) Note Receivable

In April 2015, the Company loaned $38,570 to a Bulgarian company pursuant to a revolving credit facility, enabling such Bulgarian company to buy and manage land in Bulgaria to be leased by the Company for future well sites. The credit facility has a maximum loan obligation of BGN 1,000,000 ($576,900 at March 31, 2016), bears interest at 6.32%, has a five-year term and is secured by the land the Bulgarian company buys. Payment on the facility is due the earlier of the end of the five-year term (April 6, 2020) or demand by the Company. As of March 31, 2016 the outstanding balance on the loan obligation was $41,063.

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Tiway Acquisition

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Tiway Acquisition

5.) Tiway Acquisition

The Company entered into a share purchase agreement on December 22, 2015 to acquire the three subsidiaries of Tiway Oil B.V. (“Tiway”), a company currently in bankruptcy in the Netherlands. These Tiway subsidiaries are oil and gas exploration and production companies operating in the Republic of Turkey. They own interests in 3 producing oil and gas fields, one offshore and two onshore, as well as a number of exploration licenses and operate one of the onshore fields. Current production for the Tiway subsidiaries is about 430 Boe/d (barrels per day equivalent). The purchase price is $2.1 million USD and the Company paid at signing a $500,000 deposit toward the purchase price. Prior to submitting the winning bid in the bankruptcy auction, the Company spent the prior 6 months actively gathering and evaluating a large amount of data derived from earlier exploration and production activities on Tiway properties.

The transaction is subject to obtaining the approval of two regulatory agencies in Turkey, the GDPA which regulates the oil and gas licenses and EMRA which regulates gas marketing. The applications plus supplementary materials have been submitted. During the period prior to closing, in consultation with the Tiway staff and partners in the various fields, the Company has prepared work programs for 2016 and into the future.

The transaction was scheduled for closing April 28, 2016, that date has been extended until May 26, 2016 to allow sufficient time to secure the approvals from the respective regulatory agencies. To facilitate closing, the Company has formed a new wholly owned subsidiary, Park Place Energy (Bermuda) Ltd. which will become the acquirer of the shares of the Tiway subsidiaries

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Common Stock

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Common Stock

6.) Common Stock

In March 2016, the Company received subscriptions for 250,000 shares of common stock at $0.10 per share for total proceeds of $25,000 which is included in stock subscriptions received.

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Stock Options

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Options

7.) Stock Options

The following table summarizes the Company’s stock options as of March 31, 2016.

	Number of options			Weighted average exercise price		Weighted average fair value		Aggregate intrinsic value
Outstanding, December 31, 2015		2,250,000		$	0.17	$	0.14	$	—
Granted		—			—		—		—
Expired		(100,000	)	$	0.10		—		—
Outstanding, March 31, 2016		2,150,000		$	0.17	$	0.14	$	—

Additional information regarding stock options as of March 31, 2016, is as follows:

	Outstanding			Exercisable
Range of exercise prices	Number of shares	Weighted average remaining contractual life (years)	Weighted average exercise price	Number of shares	Weighted average exercise price
$0.10	950,000	1.7	$    0.10	950,000	$    0.10
$0.14	150,000	2.0	$    0.14	150,000	$    0.14
$0.20	100,000	0.8	$    0.20	50,000	$    0.20
$0.23-0.235	850,000	0.6	$    0.23	825,000	$    0.23
$0.28	100,000	1.3	$    0.28	50,000	$    0.28
	2,150,000	1.3	$    0.17	2,025,000	$    0.16

There was no compensation expense related to stock options recognized during the three months ended March 31, 2016 and 2015. At March 31, 2016, the Company had $25,130 in unrecognized compensation expense related to stock options that will be expensed through January 2017.

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Restricted Stock Units

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Restricted Stock Units

8.) Restricted Stock Units

	Number of restricted stock units		Weighted average fair value per award
Balance, December 31, 2015		2,118,001	$	0.18
Issued		—	$	—
Vested		—	$	—
Balance, March 31, 2016		2,118,001	$	0.18

For the three months ended March 31, 2016 and 2015, restricted stock expense recorded as stock-based compensation was $18,200 and $10,375, respectively, and capitalized stock based compensation was $12,339 and $85,200, respectively.

At March 31, 2016 unrecognized compensation expense related to RSUs totaled $81,435 that will be recognized over a weighted average period of approximately eight months.

XML

Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

9.) Segment Information

The Company’s operations are in the resource industry in Bulgaria with head offices in the United States and a satellite office in Sofia, Bulgaria. The Company operates as a single reportable segment and its oil and gas properties are located in Bulgaria.

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Income Taxes

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

10.) Income Taxes

The Company is subject to United States federal and state income taxes at a rate of 34%. The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax expense as reported is as follows:

	Three Months Ended March 31,
	2016			2015
Benefit at statutory rate	$	(58,666	)	$	(90,277	)
Permanent differences and other		134			161
Valuation allowance change		58,532			90,116
Income tax provision	$	—		$	—

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation

(a) Basis of Presentation

These consolidated financial statements are unaudited and have been prepared from the books and records of Park Place Energy Inc. and its consolidated subsidiaries (“Park Place”, the “Company”, “we”, or “our”). In our opinion, all normal and recurring adjustments necessary for a fair presentation of the financial position of the Company as of March 31, 2016, and the results of operations for the three months ended March 31, 2016 and 2015, and cash flows for the three months ended March 31, 2016 and 2015, have been made in conformity with generally accepted accounting principles. All significant intercompany accounts and transactions have been eliminated. These interim financial statements and notes are condensed as permitted by the instructions to Form 10-Q and should be read in conjunction with the audited consolidated financial statements of the Company included in its Form 10-K for the year ended December 31, 2015.

Loss Per Share

(b) Loss Per Share

The Company computes loss per share of Company stock in accordance with ASC 260 (“Earnings per Share”), which requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing the loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes dilutive potential shares if their effect is anti-dilutive. For the three months ended March 31, 2016 and 2015, the Company had 15,268,001 and 14,370,993 potentially dilutive shares outstanding that were excluded for the diluted EPS calculation, respectively.

XML

Oil and Gas Properties (Tables)

3 Months Ended

Mar. 31, 2016

Extractive Industries [Abstract]

Schedule of Unproved Properties

	March 31, 2016		December 31, 2015
Unproven properties
Bulgaria	$	2,769,557	$	2,701,182

XML

Stock Options (Tables)

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock Options Activity

The following table summarizes the Company’s stock options as of March 31, 2016.

	Number of options			Weighted average exercise price		Weighted average fair value		Aggregate intrinsic value
Outstanding, December 31, 2015		2,250,000		$	0.17	$	0.14	$	—
Granted		—			—		—		—
Expired		(100,000	)	$	0.10		—		—
Outstanding, March 31, 2016		2,150,000		$	0.17	$	0.14	$	—

Summary of Additional Information Regarding Stock Options

Additional information regarding stock options as of March 31, 2016, is as follows:

	Outstanding			Exercisable
Range of exercise prices	Number of shares	Weighted average remaining contractual life (years)	Weighted average exercise price	Number of shares	Weighted average exercise price
$0.10	950,000	1.7	$    0.10	950,000	$    0.10
$0.14	150,000	2.0	$    0.14	150,000	$    0.14
$0.20	100,000	0.8	$    0.20	50,000	$    0.20
$0.23-0.235	850,000	0.6	$    0.23	825,000	$    0.23
$0.28	100,000	1.3	$    0.28	50,000	$    0.28
	2,150,000	1.3	$    0.17	2,025,000	$    0.16

XML

Restricted Stock Units (Tables)

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Restricted Stock Units Activity

	Number of restricted stock units		Weighted average fair value per award
Balance, December 31, 2015		2,118,001	$	0.18
Issued		—	$	—
Vested		—	$	—
Balance, March 31, 2016		2,118,001	$	0.18

XML

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Reconciliation of Provision for Income Taxes

The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax expense as reported is as follows:

	Three Months Ended March 31,
	2016			2015
Benefit at statutory rate	$	(58,666	)	$	(90,277	)
Permanent differences and other		134			161
Valuation allowance change		58,532			90,116
Income tax provision	$	—		$	—

XML

Summary of Significant Accounting Policies - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accounting Policies [Abstract]
Antidilutive securities excluded from computation of earnings per share	15,268,001	14,370,993

XML

Going Concern - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revenue	$ 0
Accumulated deficit	$ (14,571,656)	$ (14,399,109)

XML

Oil and Gas Properties - Schedule of Unproved Properties (Detail) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items]
Unproven properties	$ 2,769,557	$ 2,701,182
Bulgaria [Member]
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items]
Unproven properties	$ 2,769,557	$ 2,701,182

XML

Oil and Gas Properties - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016 a
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Abstract]
Oil and gas acreage, undeveloped, net	98,205
Initial term for natural gas and test production activities	5 years

XML

Note Receivable - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2016 BGN	Apr. 30, 2015 USD ($)
Notes, Loans and Financing Receivable, Net, Noncurrent [Abstract]
Note receivable	$ 41,063		$ 38,570
Borrowing capacity	$ 576,900	BGN 1,000,000
Line of credit facility, interest rate	6.32%
Line of credit facility, period	5 years

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Tiway Acquisition - Additional Information (Detail) - Tiway [Member]	Dec. 22, 2015 USD ($) Boe Business
Business Acquisition [Line Items]
Number of acquired businesses | Business	3
Current production, per day | Boe	430
Total purchase price	$ 2,100,000
Business Acquisition, Name of Acquired Entity	Tiway Oil B.V.
Business Acquisition, Agreement Date of Acquisition	Dec. 22, 2015
Deposit on acquisition	$ 500,000
Business acquisition, effective date of acquisition	May 26, 2016

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Common Stock - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016 USD ($) $ / shares shares
Stockholders' Equity Note [Abstract]
Stock subscriptions, value | $	$ 25,000
Stock subscriptions, share | shares	250,000
Common stock subscriptions per share | $ / shares	$ 0.10

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Stock Options - Summary of Stock Options Activity (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of options, Outstanding beginning balance	2,250,000
Number of options, Granted	0
Number of options, Expired	(100,000)
Number of options, Outstanding ending balance	2,150,000
Weighted average exercise price, Outstanding beginning balance	$ 0.17
Weighted average exercise price, Granted	0
Weighted average exercise price, Expired	0.10
Weighted average exercise price, Outstanding ending balance	0.17
Weighted average fair value, Outstanding beginning balance	0.14
Weighted average fair value, Granted	0
Weighted average fair value, Outstanding ending balance	$ 0.14
Aggregate intrinsic value, Outstanding	$ 0	$ 0

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Stock Options - Summary of Additional Information Regarding Stock Options (Detail)	3 Months Ended
	Mar. 31, 2016 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option, outstanding number of shares | shares	2,150,000
Stock option, outstanding weighted average remaining contractual life	1 year 3 months 18 days
Stock option, outstanding weighted average exercise price	$ 0.17
Stock option, exercisable number of shares | shares	2,025,000
Stock option, exercisable weighted average exercise price	$ 0.16
$0.10 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option, outstanding number of shares | shares	950,000
Stock option, outstanding weighted average remaining contractual life	1 year 8 months 12 days
Stock option, outstanding weighted average exercise price	$ 0.10
Stock option, exercisable number of shares | shares	950,000
Stock option, exercisable weighted average exercise price	$ 0.10
$0.14 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option, outstanding number of shares | shares	150,000
Stock option, outstanding weighted average remaining contractual life	2 years
Stock option, outstanding weighted average exercise price	$ 0.14
Stock option, exercisable number of shares | shares	150,000
Stock option, exercisable weighted average exercise price	$ 0.14
$0.20 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option, outstanding number of shares | shares	100,000
Stock option, outstanding weighted average remaining contractual life	9 months 18 days
Stock option, outstanding weighted average exercise price	$ 0.20
Stock option, exercisable number of shares | shares	50,000
Stock option, exercisable weighted average exercise price	$ 0.20
$0.23-0.235 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options exercise prices, lower range	0.23
Stock options exercise prices, upper range	$ 0.235
Stock option, outstanding number of shares | shares	850,000
Stock option, outstanding weighted average remaining contractual life	7 months 6 days
Stock option, outstanding weighted average exercise price	$ 0.23
Stock option, exercisable number of shares | shares	825,000
Stock option, exercisable weighted average exercise price	$ 0.23
$0.28 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option, outstanding number of shares | shares	100,000
Stock option, outstanding weighted average remaining contractual life	1 year 3 months 18 days
Stock option, outstanding weighted average exercise price	$ 0.28
Stock option, exercisable number of shares | shares	50,000
Stock option, exercisable weighted average exercise price	$ 0.28

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Stock Options - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to stock options	$ 25,130
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 0	$ 0

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Restricted Stock Units - Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Mar. 31, 2016 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units, Beginning Balance | shares	2,118,001
Number of restricted stock units, Issued | shares	0
Number of restricted stock units, Vested | shares	0
Number of restricted stock units, Ending Balance | shares	2,118,001
Weighted average fair value per award, Beginning Balance | $ / shares	$ 0.18
Weighted average fair value per award, Issued | $ / shares	0
Weighted average fair value per award, Vested | $ / shares	0
Weighted average fair value per award, Ending Balance | $ / shares	$ 0.18

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Restricted Stock Units - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 18,200	$ 10,375
Capitalized stock based compensation	12,339
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	18,200	10,375
Capitalized stock based compensation	12,339	$ 85,200
Unrecognized compensation expense	$ 81,435
Weighted average period	8 months

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Segment Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016 Segment
Segment Reporting [Abstract]
Number of reportable segments	1

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Income Taxes - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income tax rate	34.00%

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Income Taxes - Schedule of Reconciliation of Provision for Income Taxes (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Benefit at statutory rate	$ (58,666)	$ (90,277)
Permanent differences and other	134	161
Valuation allowance change	58,532	90,116
Income tax provision	$ 0	$ 0