Quarterly report pursuant to sections 13 or 15(d)

STATEMENTS OF CASH FLOWS (Unaudited)

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STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash Flows From Operating Activities:    
Net loss $ (616,654) $ (12,766)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 2,026 210
Bad debt expense – related party 24,800  
Loss on disposal of assets 250  
Stock-based compensation expense 4,200  
Changes in operating assets and liabilities:    
Other assets (41,326)  
Other assets-related party (13,500)  
Accounts payable 35,948 2,751
Accounts payable – related party (2,350)  
Accrued liabilities 4,159  
Deferred rent 10,880  
Net cash used in operating activities (591,567) (9,805)
Cash Flows From Investing Activities:    
Purchase of property and equipment (16,823)  
Purchase of oil and gas properties (475,000)  
Capital expenditures on oil and gas properties (1,375,000)  
Loan to affiliated company   (9,600)
Net cash used in investing activities (1,866,823) (9,600)
Cash Flows From Financing Activities:    
Advances from officer   1,500
Short term borrowing from related parties 110,557  
Short term payments to related parties (156,108)  
Purchase of treasury stock (9,126)  
Proceeds from issuance of common stock 3,349,203  
Net cash provided by financing activities 3,294,526 1,500
Net Increase (Decrease) In Cash 836,136 (17,905)
Cash At The Beginning Of The Period 392 18,766
Cash At The End Of The Period 836,528 861
Supplemental Disclosure    
Cash paid for interest 0 0
Cash paid for income taxes $ 0 $ 0