Quarterly report pursuant to sections 13 or 15(d)

BALANCE SHEETS (Unaudited)

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BALANCE SHEETS (Unaudited) (USD $)
Jun. 30, 2013
Dec. 31, 2012
Current assets    
Cash $ 331,242 $ 731,043
Accounts receivable-related party, net   4,805
Other current assets 28,381 28,225
Total current assets 359,623 764,073
Oil and gas, on the basis of full cost accounting    
Proved properties 2,810,281 2,125,685
Unproved properties and properties under Development, not being amortized 0 72,950
Furniture, equipment & software 25,621 47,876
Less accumulated depreciation (67,147) (36,057)
Net property and equipment 2,768,755 2,210,454
Deferred Tax Assets 0 0
Other Assets 20,000 20,000
Total Assets 3,148,378 2,994,527
Current liabilities    
Accounts payable 22,692 43,892
Accounts payable - related party 6,586 0
Accrued liabilities 38,843 22,279
Deferred rent 3,432 2,788
Total current liabilities 71,553 68,959
Deferred rent 5,224 7,096
Asset retirement obligations 64,836 52,644
Convertible debt – related parties, net of debt discounts of $251,184 and $0 98,816 0
Total Liabilities 240,429 128,699
Stockholders' Equity    
Preferred stock, $.10 par value; 1,000,000 shares authorized; No shares issued & outstanding 0 0
Common stock, $.001 par value; 50,000,000 shares authorized; 14,003,041 and 10,820,600 shares issued and outstanding 14,003 17,160
Additional paid in capital 5,168,697 4,519,856
Treasury stock: 20,000 and 0 shares respectively 0 (5,000)
Accumulated deficit (2,274,751) (1,666,188)
Total Stockholders' Equity 2,907,949 2,865,828
Total Liabilities and Stockholders' Equity $ 3,148,378 $ 2,994,527