Quarterly report pursuant to Section 13 or 15(d)

STATEMENTS OF CASH FLOWS (Unaudited)

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STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash Flows from Operating Activities    
Net loss $ (1,131,230) $ (1,263,494)
Adjustment to reconcile net loss to net cash provided by/(used in) operating activities:    
Depreciation and amortization 59,210 88,492
Accretion of debt discount 62,405 40,934
Impairment of Oil & Gas Properties 668,073 0
Loss on Conversion of Debt 69,107 0
ARO accretion 0 547
Stock-based compensation expense - employees 33,778 589,130
Stock-based compensation expense – consultants 0 399,000
Changes in operating assets and liabilities    
Accounts receivable (2,335) (17,910)
Other assets 7,647 15,731
Accounts payable 39,220 (26,185)
Accrued liabilities 1,147 1,081
Deferred rent 0 (1,867)
Net cash flows from operating activities (192,978) (174,541)
Cash Flows from Investing Activities    
Purchase of property and equipment 0 (18,876)
Proceeds from sale of property and equipment 4,525 0
Capital expenditures on oil and gas properties 0 (587,582)
Cash flows from investing activities 4,525 (606,458)
Cash Flows from Financing Activities    
Proceeds from issuance of common stock 140,000 690,004
Proceeds from shareholder advances 60,000 0
Payments on notes payable (7,867) (6,356)
Cash flows from financing activities 192,133 683,648
Net change in cash and cash equivalents 3,680 (97,351)
Cash and cash equivalents    
Beginning of period 24,688 122,162
End of period 28,368 24,811
SUPPLEMENTAL DISCLOSURES    
Interest Paid 8,716 18,329
NON-CASH INVESTING AND FINANCIAL DISCLOSURES    
Change in accounts payable for expenditures on oil and gas properties 0 7,103
Conversion of debt 60,000 0
Initial recognition of asset retirement obligations 0 9,437
Note Payable for Equipment $ 0 $ 54,541