Annual report pursuant to Section 13 and 15(d)

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

v2.4.1.9
NOTE 10. SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Tables)
 12 Months Ended
Dec. 31, 2014
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] Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development. 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,
 2014
   
Fiscal Year Ended
December 31,
2013
 
Property acquisitions
               
Unevaluated
 
$
-
   
$
-
 
Evaluated
   
-
     
-
 
Exploration
   
-
     
-
 
Development
   
675,426
     
756,219
 
Total Costs Incurred
 
$
675,426
   
$
756,219
 
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure [Table Text Block] Capitalized costs. 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, 2014
 
December 31, 2013
 
Capitalized costs
           
Unevaluated properties
 
$
  -
   
$
-
 
Evaluated properties
   
3,715,779
     
2,954,854
 
     
  3,715,779
     
2,954,854
 
Less: Accumulated DD&A
   
(251,185
)
   
(102,091
) 
Net capitalized costs
 
$
3,464,594
   
$
2,852,763
 
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block]
   
December 31, 2014
   
December 31, 2013
 
                 
Estimated Quantities of Proved Developed Reserves – Oil (Bbls)
   
79,100
     
29,900
 
Estimated Quantities of Proved Undeveloped Reserves – Oil (Bbls)
   
222,800
     
196,700
 
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,
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
 
   
December 31,
2014
 
         
Future cash inflows
 
$
27,417,550
 
Future production costs
   
(14,381,500
)
Future development costs
   
(2,507,000
)
Future income taxes
   
-
 
         
Future net cash flows
   
10,529,050
 
Discount of future net cash flows at 10% per annum
   
(4,225,170
)
         
Standardized measure of discounted future net cash flows
 
$
6,303,880
 
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows [Table Text Block] Changes in standardized measure of discounted future cash flows

Changes in standardized measure of discounted future cash flows
       
   
12/31/14
   
12/31/13
 
             
Beginning of year
   
7,966,550
     
4,440,757
 
Sales and transfers of oil & gas produced, net of production costs
   
(392,979
)
   
(144,845
)
Net changes in prices and production costs
   
(1,454,390
)    
808,717
 
Development costs incurred
   
675,426
     
829,168
 
Changes in estimated future development costs
   
(1,896,600
) 
   
316,612
 
Acquisitions of minerals in place, net of production costs
   
2,966,532
     
1,183,256
 
Revision of previous estimates
   
(867,355
)
   
(180,497
) 
Change in discount
   
796,655
     
444,076
 
Change in production rate or other
   
(1,489,959
)    
269,306
 
                 
End of year
   
6,303,880
     
7,966,550
 
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, 2012
   
219,614
 
Revisions of prior estimates
   
(8,537
)
Purchases of reserves in place
   
18,991
 
Production
   
(3,468
)
December 31, 2013
   
226,600
 
Revisions of prior estimates
   
(59,218
)
Purchases of reserves in place
   
142,080
 
Production
   
(7,562
)
December 31, 2014
   
301,900