Quarterly report pursuant to sections 13 or 15(d)

STATEMENTS OF CASH FLOWS (Unaudited)

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STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Cash Flows from Operating Activities    
Net loss $ (590,656) $ (371,933)
Adjustment to reconcile net loss to net cash provided by/(used in) operating activities:    
Depreciation and amortization 34,270 20,235
Accretion expense 23,462 0
ARO accretion 150 1,595
Stock-based compensation expense - employees 19,973 0
Stock-based compensation expense – consultants 380,000 0
Changes in operating assets and liabilities    
Accounts receivable - related party 0 4,805
Accounts receivable 13,869 0
Other assets 9,126 (8,744)
Accounts payable 21,115 (13,906)
Accounts payable - related party 0 3,561
Accrued liabilities 97,480 42,571
Deferred rent (821) (498)
Net cash flows from operating activities 7,968 (322,314)
Cash Flows from Investing Activities    
Capital expenditures on oil and gas properties (289,686) (3,318)
Cash flows from investing activities (289,686) (3,318)
Cash Flows from Financing Activities    
Proceeds from issuance of common stock 455,004 0
Payments on notes payable (3,825) 0
Cash flows from financing activities 451,179 0
Net change in cash and cash equivalents 169,461 (325,632)
Cash and cash equivalents    
Beginning of period 122,162 731,043
End of period 291,623 405,411
SUPPLEMENTAL DISCLOSURES    
Interest Paid 9,634 0
NON-CASH INVESTING AND FINANCIAL DISCLOSURES    
Accrual for purchase of treasury shares 0 900
Change in accounts payable for expenditures on oil and gas properties 38,958 0
Cancellation of treasury shares 0 5,000
Initial recognition of asset retirement obligations $ 1,936 $ 0