Quarterly report pursuant to Section 13 or 15(d)

STATEMENTS OF CASH FLOWS (Unaudited)

v3.5.0.2
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash Flows from Operating Activities    
Net loss $ (1,301,351) $ (1,333,871)
Adjustment to reconcile net loss to net cash provided by/(used in) operating activities:    
Depreciation and amortization 50,964 78,937
Accretion of debt discount 171,573 103,520
Impairment of Oil & Gas Properties 0 668,073
Loss on Conveyance of PORRI warrants 14,336 69,107
ARO accretion 21,232 8,733
Stock-based compensation expense – Board of Directors 195,264 0
Debt Issuance Costs 22,166 0
Stock-based compensation expense - employees 118,425 44,779
Changes in operating assets and liabilities    
Accounts receivable (122,056) 3,219
Inventory 33,330 0
Other assets 1,824 7,484
Accounts payable 258,470 60,504
Accrued liabilities 220,775 (755)
Net cash flows from operating activities (315,048) (290,270)
Cash Flows from Investing Activities    
Cash acquired from investment in Askarii 114 0
Proceeds from sale of property and equipment 30,000 4,525
Purchase of fixed asset (93,476) (19,854)
Cash flows from investing activities (63,362) (15,329)
Cash Flows from Financing Activities    
Payments of shareholder advances (112,000) (7,000)
Proceeds from shareholder advances 368,000 71,000
Proceeds from issuance of common stock 48,000 238,000
Proceeds from short term loans 85,000 0
Payments on notes payable (1,610) (12,638)
Cash flows from financing activities 387,390 289,362
Net change in cash and cash equivalents 8,980 (16,237)
Cash and cash equivalents    
Beginning of period 3,091 24,688
End of period 12,071 8,451
SUPPLEMENTAL DISCLOSURES    
Interest Paid 24,770 34,361
NON-CASH INVESTING AND FINANCIAL DISCLOSURES    
Purchase of Askarii 50,000 0
Initial recognition of asset retirement obligation 50,296 958
Share issued for oil and gas property interest 4,723,186 719,902
Note payable for oil and gas property interest 4,000,000 0
Cancellation of shares 0 400
Transfer to Askarii Inventory 146,861 0
Shares Issued as Payment for Affiliated Note [Member]    
NON-CASH INVESTING AND FINANCIAL DISCLOSURES    
Debt conversion, original debt amount 146,876 0
Shares Issued as Settlement of Accounts Payable [Member]    
NON-CASH INVESTING AND FINANCIAL DISCLOSURES    
Debt conversion, original debt amount 110,106 0
Shares Issued as Payment of Shareholder Advances [Member]    
NON-CASH INVESTING AND FINANCIAL DISCLOSURES    
Debt conversion, original debt amount 150,000 0
Shares Issued for Conversion of Debt [Member]    
NON-CASH INVESTING AND FINANCIAL DISCLOSURES    
Debt conversion, original debt amount $ 0 $ 60,000