Subsequent Events

12 Months Ended

Sep. 30, 2013

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

17.           SUBSEQUENT EVENTS

On October 9, 2013, and in connection to the SAGD Project Agreement dated July 30, 2013, the Company entered into a Water Rights Conveyance Agreement whereby the Company acquired a 50% (25% post Farmout) working interest in one water source well and one water disposal well for a cost of Cdn $850,000, which in turn was reimbursed to the Company by the Farmee. In accordance with the Farmout Agreement dated July 31, 2013, the Farmee has agreed to provide up to $40,000,000 in funding for the Company’s portion of the costs for the SAGD Demonstration Project, in return for a net 25% working interest in 12 sections where the Company has a working interest of 50%. Also pursuant to the Water Rights Conveyance Agreement dated October 9, 2013 and the SAGD Project Agreement dated July 30, 2013, the Company was issued a cash call in the amount of Cdn $1,058,568 for the expenditures relating to the water source well, water disposal well and pipelines to connect to the SAGD Project surface facility. The Farmee has since paid this cash call in the amount of Cdn $1,058,568 pursuant to the Farmout Agreement dated July 31, 2013.

On October 10, 2013, the Company extended the expiration date of two warrants to purchase up to an aggregate of 29,047,617 shares of the Company’s common stock. The exercise price of the warrants remains unchanged at $0.105 per share. As a result of this extension, the expiration date of the warrants has been amended from the original expiry date of November 9, 2013 to November 23, 2015.

On October 28, 2013, the Company granted a contractor an option to purchase 250,000 shares of common stock at an exercise price of $0.30 per common share, all vesting immediately, with a five-year life, for his services in connection with the Farmout Agreement dated July 31, 2013.