Annual report pursuant to section 13 and 15(d)

Consolidated Balance Sheets

v2.3.0.11
Consolidated Balance Sheets (USD $)
Dec. 31, 2011
Dec. 31, 2010
Current Assets:    
Cash and equivalents $ 219,566 $ 15,990
Receivable from DNR Oil and Gas Inc.:    
Oil and gas sales, net of production costs 165,283 0
Other 15,597 12,625
Prepaid expenses and other 207,338 85,139
Total Current Assets 607,784 113,754
Oil and gas properties, at cost, successful efforts method:    
Proved properties 9,056,032 0
Unproved properties 287,728 0
Natural gas gathering system 442,195 442,195
Furniture and equipment 22,522 19,662
Total property and equipment 9,808,477 461,857
Less accumulated depreciation, depletion and amortization (525,154) (184,121)
Net Property and Equipment 9,283,323 277,736
TOTAL ASSETS 9,891,107 391,490
Payable to DNR Oil & Gas, Inc.:    
Oil and gas property acquisition costs 826,791 0
Gas gathering operating costs 416,835 402,558
Operator fees and other 151,748 117,518
Notes and advances payable:    
Unrelated parties 92,019 60,029
Directors 109,319 704,475
Accrued interest expense 88,303 152,943
Unrelated parties 250,000 0
Director fees payable 90,000 98,000
Commissions payable for private placement of preferred stock 105,000 0
Accrued payroll taxes 0 111,690
Accrued consulting services payable in common stock 18,750 536,528
Current portion of asset retirement obligations 15,398 0
Other accrued costs and expenses 111,061 40,596
Total Current Liabilities 2,275,224 2,224,337
Asset Retirement Obligations, net of current portion 637,842 0
Total Liabilities 2,913,066 2,224,337
Commitments and Contingencies (Notes 3, 4 and 10)    
Stockholders' Equity (Deficit)    
Common stock, no par value; authorized 499,000,000 shares, issued and outstanding 4,972,635 in 2010 and 7,764,476 in 2011 16,904,154 13,611,903
Accumulated deficit (14,949,484) (15,444,750)
Total Stockholders' Equity (Deficit) 6,978,041 (1,832,847)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) 9,891,107 391,490
Preferred Class A [Member]
   
Stockholders' Equity (Deficit)    
Preferred stock value 0 0
Series One Preferred Stock
   
Stockholders' Equity (Deficit)    
Preferred stock value 5,023,371 0
Series Two Preferred Stock
   
Stockholders' Equity (Deficit)    
Preferred stock value $ 0 $ 0