Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.8.0.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from the amount computed by applying the federal statutory income tax rate (35%) on operations due primarily to permanent differences attributable to organizational expenses.

 

    Fiscal Year
 Ended
 December 31,
 2017
    Fiscal Year
 Ended
 December 31,
 2016
 
             
Income tax expense computed at statutory rates   $ (1,141,449 )   $ (656,523 )
Non-deductible items     536,470       219,438  
Change in valuation allowance     604,979       437,085  
                 
Total   $     $  
Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred tax asset were as follows: 

 

   

December 31, 2016

 
    Gross Values     Tax Effect  
Deferred tax assets

          $    
Book Impairment   $ 668,073     $ 233,825  
Net operating loss carryforwards     7,120,879       2,492,308  
Asset retirement obligation            
Other            
Total deferred tax assets     7,788,952       2,726,133  
                 
Deferred tax liabilities                
O&G Properties     (6,496,717 )     (2,273,851 )
Other            
Total deferred tax liabilities     (6,496,717 )     (2,273,851 )
Less: Valuation allowance     (1,292,235 )     (452,282 )
Net deferred tax assets (liabilities)   $     $  

 

    December 31, 2017  
  Gross Values     Tax Effect  
Deferred tax assets           $    
Book Impairment   $ 668,073     $ 140,295  
Net operating loss carryforwards     8,924,934       1,874,236  
Asset retirement obligation            
Other            
Total deferred tax assets     9,593,007       2,014,531  
                 
Deferred tax liabilities                
O&G Properties     (1,556,593 )     (326,884 )
Other            
Total deferred tax liabilities     (1,556,593 )     (326,884 )
Less: Valuation allowance     (8,036,415 )     (1,687,647 )
Net deferred tax assets (liabilities)   $     $