Annual report pursuant to section 13 and 15(d)

Consolidated Statements of Operations

v2.3.0.11
Consolidated Statements of Operations (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Revenues:    
Oil and natural gas sales $ 1,005,149  
Gain of sale of oil and natural gas properties 2,479,934  
Gas gathering income 45,638 167,625
Total revenues 3,530,721 167,625
Oil and gas producing activities:    
Lease operating expenses 449,854  
Production taxes 89,109  
Depreciation, depletion, amortization and accretion 310,308  
Cost of operations:    
Related Party 30,815 104,606
Unrelated parties 92,420 222,985
Depreciation 44,219 44,229
General and administrative expenses:    
Director fees 120,000 100,450
Investor relations 309,703 138,889
Acquisition investigation and due diligence 514,579 22,050
Legal, auditing and transfer agent 198,873 30,974
Accounting, financial reporting and rent - related party 83,802 53,000
Consulting fees:    
Related parties 167,500 122,500
Unrelated parties 297,950 238,700
Office, travel and other 46,441 16,546
Depreciation 570  
Total operating expenses 2,756,143 1,094,929
Operating income (loss) 774,578 (927,304)
Other income (expense):    
Gain on extinguishment of debt 111,690 121,870
Interest income 604 13
Interest expense (391,606) (47,191)
Total other income (expense) (279,312) 74,692
Income (loss) before income taxes 495,266 (852,612)
Income tax benefit (expense)    
Net income (loss) 495,266 (852,612)
Net Income (Loss) Applicable to Common Stockholders:    
Accrued Preferred stock dividends (196,000)  
Net income (loss) applicable to common shareholders $ 299,266 $ (852,612)
Earnings (Loss) Per Share Applicable to Common Stockholders:    
Basic $ 0.04 $ (0.17)
Diluted $ 0.04 $ (0.17)
Weighted Average Number of Common Shares Outstanding:    
Basic 6,875,000 4,950,000
Diluted 6,875,000 4,950,000