Commitments

9 Months Ended

Jun. 30, 2013

Commitments and Legal Actions [Abstract]

Commitments

14.           Commitments

Compensation to Directors

Since the acquisition of Northern Alberta Oil Ltd., the Company and Northern have entered into the following contracts with the following companies for the services of their officers:

1.)   Portwest Investments Ltd. (“Portwest”), a company owned 100% by Dr. Horst A. Schmid (the “Consultant”), for providing services to the Company as Chief Executive Officer and President for Cdn $12,500 per month. On July 1, 2005, the Company entered into a consulting agreement (the “Prior Agreement”) with Portwest, as filed with the Company’s annual report on Form 10-KSB filed on February 23, 2007, and incorporated by reference herein. As of June 20, 2013, the Company owed Portwest Cdn $352,958 for services Portwest provided to the Company from 2010 thru June 20, 2013. On July 10, 2013, the Company and Portwest agreed to amend (the “Amending Agreement”) the Prior Agreement whereby the following was settled and amended:

i.   Effective date of the Amending Agreement will be June 20, 2013;

ii.   Term of Agreement will be until December 31, 2014;

iii.   The Consultant shall continue to provide services as Chief Executive Officer and President of the Company until the termination of the Agreement;

iv.   The fees payable to the Consultant in the Prior Agreement will be terminated and the Company will grant the Consultant 5-year options on 1,000,000 of its common shares exercisable at $0.05 per share. One half of these shares are vested immediately and the remaining one half will be vested on June 20, 2014;

v.   As consideration for the execution of the Amending Agreement and the Termination of parts of the Prior Agreement, the Consultant will receive:

a.   $70,000 CDN, and

b.   850,000 units of the Company’s shares and warrants at a price of $0.05 per unit. Each unit shall be comprised of one restricted Company common share and one 3 year full warrant entitling Portwest to be able to purchase another share for $0.075. The warrants expire on June 20, 2016.

As of June 30, 2013, the Company had settled Cdn $302,958 accrued payables in the amount of Cdn $352,958 owing to Portwest Investments Ltd., up to June 20, 2013 for the services of Dr. Schmid as Chief Executive Officer and President of the Company. Remaining balance for accrued amount of Cdn $50,000 had been paid in the earlier of July, 2013.

2.) Concorde Consulting, a company owned 100% by Mr. Curtis J. Sparrow, for providing services as Chief Financial Officer to the Company for Cdn $15,000 per month. As of September 30, 2012 and June 30, 2013 the Company owes Concorde Consulting Cdn $138,725 and Cdn $168,403, respectively.

Rental Agreement

On November 20, 2007 and December 1, 2008, the Company entered into two office lease agreements commencing December 1, 2007 and January 1, 2009 and expiring on November 30, 2012 and December 31, 2013, respectively. One of the Company’s office lease agreements has since expired and will not be renewed. The annual payments due are as follows:

2013 Q4 (July - September)	$	10,625
2014 Q1 (October - December)	$	10,625