Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash Flows from Operating Activities:    
Net Income (loss) $ 325,907 $ (16,119)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation, depletion and amortization 486,061 516,502
Accretion of discount on asset retirement obligations 49,712 50,034
Gain on sale of oil and gas properties (350,951) (28,449)
Common stock issued in exchange for services   18,000
Changes in operating assets and liabilities:    
Accounts receivable (208,639) (164,471)
Prepaid expenses and other (2,552) 30,166
Accounts payable 83,069 (71,389)
Directors fees and officers services payable 19,200  
Accrued costs and expenses 12,781 (138,558)
Net cash provided by operating activities 414,588 195,716
Cash Flows from Investing Activities:    
Capital expenditures for property and equipment (449,791) (274,467)
Proceeds from sale of oil and gas properties 263,438 28,449
Net cash (used in) investing activities (186,353) (246,018)
Cash Flows from Financing Activities:    
Proceeds from notes and advance payable 622,638 1,041,920
Principal payments on notes payable (1,080,776) (549,274)
Payment of dividends on preferred stock   (391,875)
Redemption of common stock (228,000)  
Redemption of preferred stock (15,500) (50,000)
Net cash provided by (used in) financing activities (701,638) 50,771
Net decrease in cash and equivalents (473,403) 469
Cash and equivalents, beginning of period 476,323 6,921
Cash and equivalents, end of period 2,920 7,390
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 77,589 84,581
Cash paid for income taxes 0 0
Supplemental Disclosure of Non-cash Investing and Financing Activities:    
Conversion of Series A-1 Preferred Stock to Notes Payable $ 62,000 $ 600,000