Balance Sheets

ARÊTE INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
   
December 31,
    
September 30,
  
   
2010
    
2011
  
ASSETS
Current assets
            
    Cash and cash equivalents
   $ 15,990     $ 498,886  
    Prepaid expenses
     85,139       326,736  
    Revenue receivable
     12,625       981,997  
Total current assets
     113,754       1,807,619  
                 
Property and equipment
                
    Oil and natural gas properties, at cost, successful efforts method:                
       net of accumulated depletion, and depreciation of $64,608 (2011)
     -       8,734,162  
    Furniture and equipment, at cost net of accumulated
                
       depreciation of $173,076(2010) and $217,296(2011)
     277,736       247,421  
Total property and equipment
     277,736       8,981,583  
                 
TOTAL ASSETS
   $ 391,490     $ 10,789,202  
                 
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
                 
Current liabilities
                
    Accounts payable
   $ 604,271     $ 1,287,440  
    Accrued expenses
     267,373       250,246  
    Accrued payroll taxes
     111,690       111,690  
    Notes payable
     -       1,050,000  
    Current portion of ARO
     -       1,934  
    Contracts payable
     536,528       18,750  
    Notes payable & advances related parties
     704,475       108,069  
Total current liabilities
     2,224,337       2,828,129  
                 
Long-term portion of ARO
     -       621,428  
                 
Total current liabilities
     2,224,337       3,449,557  
                 
Stockholders' equity
                
    Convertible Class A preferred stock; $10,000 face value,                
      10,000 shares authorized
                
      Series 1, 750 shares authorized, 0 (2010)
                
      and 522.5 (2011) shares issued and outstanding, liquidation preference $5,225,000
     -       5,023,371  
      Series 2, 2,500 shares authorized, 0 (2010)
                
      and 0 (2011) shares issued and outstanding
     -       -  
    Common stock, no par value; 499,000,000 shares
                
      authorized, 4,972,635 (2010) and 7,764,476 (2011)
     13,611,903       16,904,154  
      shares issued and outstanding
                
    Accumulated deficit
     (15,444,750 )     (14,587,880 )
                 
Total stockholders' (deficit) equity
     (1,832,847 )     7,339,645  
                 
                 
      TOTAL LIABILITIES AND STOCKHOLDERS'  (DEFICIT) EQUITY   $ 391,490     $ 10,789,202