Quarterly report pursuant to sections 13 or 15(d)

STATEMENTS OF CASH FLOWS (Unaudited)

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STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Cash Flows From Operating Activities:    
Net loss $ (1,140,223) $ (21,920)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 4,129 315
Bad debt expense – related party 24,800  
Loss on disposal of assets 250  
Stock-based compensation expense 77,700  
Accounts receivable – related party (16,450)  
Other assets (39,782)  
Accounts payable 6,151 7,300
Accounts payable – related party (2,350) 2,350
Accrued liabilities 4,201  
Deferred rent 10,382  
Net cash used in operating activities (1,071,192) (11,955)
Cash Flows From Investing Activities:    
Purchase of property and equipment (16,823)  
Purchase of oil and gas properties (475,000)  
Capital expenditures on oil and gas properties (1,525,000)  
Loan to affiliated company   (9,800)
Net cash used in investing activities (2,016,823) (9,800)
Cash Flows From Financing Activities:    
Advances from officer      
Short term borrowing from related parties 110,557 3,500
Short term payments to related parties (156,108)  
Purchase of treasury stock (9,126)  
Proceeds from issuance of common stock 4,272,403  
Net cash provided by financing activities 4,217,726 3,500
Net Increase (Decrease) In Cash 1,129,711 (18,255)
Cash At The Beginning Of The Period 392 18,766
Cash At The End Of The Period 1,130,103 511
Non-Cash Transactions    
Conversion of accounts payable into Notes payable   3,250
Cash paid for interest 0 0
Cash paid for income taxes $ 0 $ 0