Annual report pursuant to section 13 and 15(d)

NOTE 10. SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Tables)

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NOTE 10. SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Tables)
 12 Months Ended
Dec. 31, 2012
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure [Table Text Block]
Amounts reported as costs incurred include both capitalized costs and costs charged to expense during the year for oil and gas property acquisition, exploration and development activities. Costs incurred also include new asset retirement obligations established in the current year, as well as increases or decreases to the asset retirement obligations resulting from changes to cost estimates during the year. Exploration costs presented below include the costs of drilling and equipping successful exploration wells, as well as dry hole costs, leasehold impairments, geological and geophysical expenses, and the costs of retaining undeveloped leaseholds. Development costs include the costs of drilling and equipping development wells, and construction of related production facilities.

   
Fiscal Year Ended
December 31,
 2012
   
Fiscal Year Ended
December 31,
2011
 
Property acquisitions                
Unproved
  $ -     $ -  
Proved
    475,000       -  
Exploration
    106,109       -  
Development
    1,617,526       -  
Total Costs Incurred
  $ 2,198,635     $ -  
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure [Table Text Block]
Capitalized costs include the cost of properties, equipment and facilities for oil and natural-gas producing activities. Capitalized costs for proved properties include costs for oil and natural-gas leaseholds where proved reserves have been identified, development wells, and related equipment and facilities, including development wells in progress. Capitalized costs for unproved properties include costs for acquiring oil and gas leaseholds and geological and geophysical expenses where no proved reserves have been identified.

   
December 31, 2012
 
December 31, 2011
 
Capitalized costs
           
Unproved properties
 
$
72,950
   
$
-
 
Proved properties
   
2,125,685
     
-
 
     
2,198,635
     
-
 
Less: Accumulated DD&A
   
(28,291
)    
-
 
Net capitalized costs
 
$
2,170,344
   
$
-
 
Schedule of Capitalized Costs of Unproved Properties Excluded from Amortization [Table Text Block]
The following table sets forth a summary of oil and gas property costs not being amortized at December 31, 2012, by the period in which such costs were incurred. There are no individually significant properties or significant development projects included in costs not being amortized. The majority of the evaluation activities are expected to be completed within five years.

       
Fiscal Year
Ended
 
   
Total
 
December 31, 2012
 
                 
Property acquisition costs
 
$
-
   
$
-
 
Exploration and development
   
72,950
     
-
 
Capitalized interest
   
-
     
-
 
Total
 
$
72,950
   
$
-
 
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block]
The following table sets forth estimates of the proved oil and gas reserves (net of royalty interests) for the Company for the periods indicated:

   
December 31, 2012
   
December 31, 2011
 
                 
Estimated Quantities of Proved Developed Reserves – Oil (Bbls)
   
59,971
     
-
 
Estimated Quantities of Proved Undeveloped Reserves – Oil (Bbls)
   
159,643
     
-
 
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure [Table Text Block]
The following table sets forth the changes in standardized measure of discounted future net cash flows relating to proved oil and gas reserves for the periods indicated.

   
December 31,
2012
 
         
Future cash inflows
 
$
20,863,274
 
Future production costs
   
(13,343,179
)
Future development costs
   
(2,400,000
)
Future income taxes
   
-
 
         
Future net cash flows
   
5,120,095
 
Discount of future net cash flows at 10% per annum
   
(679,338
)
         
Standardized measure of discounted future net cash flows
 
$
4,440,757
 
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows [Table Text Block]
The following table sets forth the changes in standardized measure of discounted future net cash flows relating to proved oil and gas reserves for the periods indicated.

Standardized measure of discounted future net cash flows, beginning of year
 
$
-
 
Changes in the year resulting from:
       
Sales, less production costs
   
(51,254
) 
         
Revisions of previous quantity estimates
   
-
 
         
Extensions, discoveries and other additions
   
- 
 
         
Net change in prices and production costs
   
-
 
         
Changes in estimated future development costs
   
-
 
Previously estimated development costs incurred during the period
   
-
 
Purchases of minerals in place
   
4,492,011
 
Accretion of discount
   
-
 
Divestiture of Reserves
   
-
 
Net change in income taxes
   
-
 
Timing differences and other
   
-
 
Standardized measure of discounted future net cash flows, end of year
 
$
4,440,757
 
Rollforward of Proved Reserves [Member]
  
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block]
The following table sets forth estimates of the proved oil and gas reserves (net of royalty interests) for the Company and changes therein, for the periods indicated.

   
Oil
 
   
(Bbls)
 
         
December 31, 2011
   
-
 
Revisions of prior estimates
    -
 
Purchases of reserves in place
   
220,995
 
Production
   
(1,381
)
December 31, 2012
   
219,614