Income Statements

ARÊTE INDUSTRIES, INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENT OF OPERATIONS
For the years ended
 
   
Three Months
   
Three Months
   
Nine Months
   
Nine Months
 
   
Ended September 30,
   
Ended September 30,
   
Ended September 30,
   
Ended September 30,
 
   
2010
   
2011
   
2010
   
2011
 
Revenues
                       
   Oil & natural gas revenue
  $ 34,606     $ 436,764     $ 135,086     $ 482,403  
   Other income
    -       -       -       -  
   Gain of sale of oil & natural gas assets
    -       2,479,934       -       2,479,934  
                                 
Total revenues
    34,606       2,916,698       135,086       2,962,337  
                                 
Operating expenses
                               
   Lease operating expenses including
                               
     production taxes
    79,629     226,095       247,278       337,468  
   Acquisition costs
    -       11,821       -       469,322  
   Depreciation, depletion, and accretion
    11,065       89,121       33,174       111,231  
   Rent
    1,009       887       2,679       3,030  
   General and administrative
    188,793       289,090       528,602       1,001,513  
                                 
Total operating expenses
    280,496       617,014       811,733       1,922,564  
                                 
Net income (loss) from operations
    (245,890 )     2,299,684       (676,647 )     1,039,773  
                                 
Other income (expense):
                               
    Interest expense
    (11,798 )     (148,936 )     (35,393 )     (183,378 )
    Interest income
    -       196       -       475  
                                 
Total other income (expense)
    (11,798 )     (148,740 )     (35,393 )     (182,903 )
                                 
                                 
Net income (loss)
  $ (257,688 )   $ 2,150,944     $ (712,040 )   $ 856,870  
                                 
Basic and diluted income (loss) per share
  $ (0.05 )   $ 0.28     $ (0.14 )   $ 0.13  
                                 
                                 
Weighted average common shares outstanding
    4,950,000       7,715,000       4,940,000       6,575,000