Annual report pursuant to Section 13 and 15(d)

NOTE 6. NOTES PAYABLE (Tables)

NOTE 6. NOTES PAYABLE (Tables)

12 Months Ended

Dec. 31, 2016

Shareholder Advances (Related Party Only)
	Amount
Balance at December 31, 2015	$	46,000

Additions
Rig Loan (1)		60,000
Bridge loan – Working Capital (2)		230,000
Advance (3)		98,000
Total Additions		388,000

Payments
Debt Conversion to Shares (4)		150,000
Cash (5)		92,000
Total Payments		242,000

Balance at December 31, 2016	$	192,000

(1)	Represents funds that were provided to purchase a pulling rig for maintenance work on the Company’s wells

(2)	Funds that were provided as pre-bridge working capital loans. These loans earn interest at 10% and are due in 60 days from issuance.

(3)	Funds that were provided by related parties as shareholder advances.

(4)	Shares were issued to extinguish outstanding liabilities of the Company. These liabilities could be outstanding shareholder advances, pre-bridge working capital loans or service related accounts payable.

(5)	Funds that were paid in cash by the Company to various related parties to reimburse for funds that were previously loaned as a shareholder advances.

Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]

As of December 31, 2016, future maturities on our notes payable, which include the $550,000 convertible notes payable-related party, $1,000,000 Promissory Note, $3,000,000 Production Payment Note, $200,000 Short Term Notes, $192,000 Related Party Notes, $75,000 Investor Notes, and the $26,186 remaining balance of the installment note described above, were as follows:

Fiscal year ending:
2017	$	2,139,166
2018		922,608
2019		1,121,267
2020		860,145
Total	$	5,043,186