Annual report pursuant to section 13 and 15(d)

NOTE 10. SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Tables)

v2.4.0.8
NOTE 10. SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Tables)
 12 Months Ended
Dec. 31, 2013
NOTE 10. SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Tables) [Line Items]  
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure [Table Text Block] Amounts reported as costs incurred include both capitalized costs and costs charged to expense during the year for oil and gas property acquisition, exploration and development activities. Costs incurred also include new asset retirement obligations established in the current year, as well as increases or decreases to the asset retirement obligations resulting from changes to cost estimates during the year. Exploration costs presented below include the costs of drilling and equipping successful exploration wells, as well as dry hole costs, leasehold impairments, geological and geophysical expenses, and the costs of retaining undeveloped leaseholds. Development costs include the costs of drilling and equipping development wells, and construction of related production facilities.

   
Fiscal Year Ended
December 31,
 2013
   
Fiscal Year Ended
December 31,
2012
 
Property acquisitions
               
Unevaluated
 
$
-
   
$
-
 
Evaluated
   
-
     
475,000
 
Exploration
   
-
     
106,109
 
Development
   
756,219
     
1,617,526
 
Total Costs Incurred
 
$
756,219
   
$
2,198,635
 
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure [Table Text Block] Capitalized costs include the cost of properties, equipment and facilities for oil and natural-gas producing activities. Capitalized costs for proved properties include costs for oil and natural-gas leaseholds where proved reserves have been identified, development wells, and related equipment and facilities, including development wells in progress. Capitalized costs for unproved properties include costs for acquiring oil and gas leaseholds and geological and geophysical expenses where no proved reserves have been identified.

   
December 31, 2013
 
December 31, 2012
 
Capitalized costs
           
Unevaluated properties
 
$
  -
   
$
72,950
 
Evaluated properties
   
2,954,854
     
2,125,685
 
     
  2,954,854
     
2,198,635
 
Less: Accumulated DD&A
   
(102,091
)
   
(28,291
) 
Net capitalized costs
 
$
2,852,763
   
$
2,170,344
 
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block]
   
December 31, 2013
   
December 31, 2012
 
                 
Estimated Quantities of Proved Developed Reserves – Oil (Bbls)
   
29,900
     
59,971
 
Estimated Quantities of Proved Undeveloped Reserves – Oil (Bbls)
   
196,700
     
159,643
 
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure [Table Text Block] The following table sets forth the changes in standardized measure of discounted future net cash flows relating to proved oil and gas reserves for the periods indicated.

   
December 31,
2012
 
         
Future cash inflows
 
$
20,863,274
 
Future production costs
   
(13,343,179
)
Future development costs
   
(2,400,000
)
Future income taxes
   
-
 
         
Future net cash flows
   
5,120,095
 
Discount of future net cash flows at 10% per annum
   
(679,338
)
         
Standardized measure of discounted future net cash flows
 
$
4,440,757
 
   
December 31,
2013
 
         
Future cash inflows
 
$
21,168,740
 
Future production costs
   
(7,050,170
)
Future development costs
   
(2,060,100
)
Future income taxes
   
-
 
         
Future net cash flows
   
12,058,470
 
Discount of future net cash flows at 10% per annum
   
(4,091,920
)
         
Standardized measure of discounted future net cash flows
 
$
7,966,550
 
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows [Table Text Block]
Changes in standardized measure of discounted future cash flows
       
   
12/31/13
   
12/31/12
 
             
Beginning of year
   
4,440,757
     
-
 
Sales and transfers of oil & gas produced, net of production costs
   
(144,845
)
   
(51,254
)
Net changes in prices and production costs
   
808,717
     
-
 
Development costs incurred
   
829,168
     
-
 
Changes in estimated future development costs
   
316,612
     
-
 
Acquisitions of minerals in place, net of production costs
   
1,183,256
     
4,492,011
 
Revision of previous estimates
   
(180,497
)
   
-
 
Change in discount
   
444,076
     
-
 
Change in production rate or other
   
269,306
     
-
 
                 
End of year
   
7,966,550
     
4,440,757
 
Rollforward of Proved Reserves [Member]
  
NOTE 10. SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Tables) [Line Items]  
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block] The following table sets forth estimates of the proved oil and gas reserves (net of royalty interests) for the Company and changes therein, for the periods indicated.

   
Oil
 
   
(Bbls)
 
         
December 31, 2011
   
-
 
Revisions of prior estimates
   
-
 
Purchases of reserves in place
   
220,995
 
Production
   
(1,381
)
December 31, 2012
   
219,614
 
Revisions of prior estimates    
(8,537
)
Purchases of reserves in place    
18,991
 
Production    
(3,468
)
December 31, 2012    
226,600