Financials

v3.8.0.1
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Current Assets:    
Cash $ 67,946 $ 171,370
Accounts receivable - oil and gas sales 6,734 14,014
Prepaid expenses and other 11,206 3,032
Total Current Assets 85,886 188,416
Oil and gas properties, at cost, successful efforts method:    
Proved properties 5,199,370 5,325,381
Unproved properties 154,982 154,977
Furniture and equipment 22,522 22,522
Total property and equipment 5,376,874 5,502,880
Less accumulated depreciation, depletion and amortization (3,807,522) (3,684,522)
Net Property and Equipment 1,569,352 1,818,358
TOTAL ASSETS 1,655,238 2,006,774
Accounts payable:    
Trade accounts payable 169,228 133,343
Accounts payable - DNR Oil & Gas, Inc. 372,917 453,439
Accounts payable - directors and affiliates 145,398 77,616
Dividends payable:    
Dividends payable 41,992 5,998
Dividends payable - directors and affiliates 79,930 41,992
Accrued interest expense:    
Accrued interest expense 7,353 5,254
Accrued interest expense - directors and affiliates 25,368 18,567
Notes and advances payable - current portion:    
Notes and advances payable 1,270,528 240,750
Notes and advances payable - directors and affiliates 135,598 134,839
Current portion of asset retirement obligations 445,900 425,200
Other accrued costs and expenses 61,745 61,745
Total Current Liabilities 2,755,957 1,598,743
Notes and advances payable, net of current portion:    
Notes and advances payable, net of discount 5,651 1,032,928
Notes and advances payable - Directors and affiliates 5,187 16,435
Asset retirement obligations, net of current portion 714,100 659,800
Total Long-Term Liabilities 724,938 1,709,163
Total Liabilities 3,480,895 3,307,906
Stockholders' Equity (Deficit):    
Convertible Class A preferred stock; $10,000 face value per share, authorized 1,000,000 shares: Series 1; 30,000 shares authorized, none issued and outstanding. Series 2; authorized 2,500 shares, 272 shares issued and outstanding at September 30, 2017 and December 31, 2016, liquidation preference $2,841,922. 2,720,000 2,720,000
Common stock, no par value; 499,000,000 shares authorized, 14,674,580 issued and outstanding at September 30, 2017 and December 31, 2016. 21,535,469 21,535,469
Accumulated deficit (26,081,126) (25,556,601)
Total Stockholders' Equity (Deficit) (1,825,657) (1,301,132)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) 1,655,238 2,006,774
Series A1 Preferred Stock [Member]    
Stockholders' Equity (Deficit):    
Convertible Class A preferred stock; $10,000 face value per share, authorized 1,000,000 shares: Series 1; 30,000 shares authorized, none issued and outstanding. Series 2; authorized 2,500 shares, 272 shares issued and outstanding at September 30, 2017 and December 31, 2016, liquidation preference $2,841,922. 0 0
Series A2 Preferred Stock [Member]    
Stockholders' Equity (Deficit):    
Convertible Class A preferred stock; $10,000 face value per share, authorized 1,000,000 shares: Series 1; 30,000 shares authorized, none issued and outstanding. Series 2; authorized 2,500 shares, 272 shares issued and outstanding at September 30, 2017 and December 31, 2016, liquidation preference $2,841,922. $ 2,720,000 $ 2,720,000
v3.8.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Revenues:        
Oil sales $ 243,848 $ 219,404 $ 683,827 $ 633,961
Natural gas sales 21,385 20,220 55,828 65,638
Royalty revenues 0 483 1,959 1,760
Total revenues 265,233 240,107 741,614 701,359
Oil and gas producing activities:        
Lease operating expenses 215,167 313,086 660,197 800,541
Production taxes 18,595 19,367 47,604 55,434
Depreciation, depletion, amortization and accretion 62,000 104,523 198,000 403,333
Impairment 0 0 0 252,000
General and administrative expenses:        
Director fees 10,000 10,000 30,000 30,000
Investor relations 1,108 1,097 4,962 8,410
Legal, auditing and professional fees 2,473 23,185 66,219 109,069
Consulting fees executive services-Related Parties 8,812 14,000 40,030 54,732
Other administrative expenses 8,132 10,103 24,428 33,275
Total operating expenses 326,287 495,361 1,071,440 1,746,794
Operating loss (61,054) (255,254) (329,826) (1,045,435)
Other income (expense):        
Gain on sale of oil & gas properties 23,844 0 23,844 0
Other income 0 0 2,218 0
Interest income (expense), net (25,296) (25,067) (77,831) (70,019)
Total other income (expense) (1,452) (25,067) (51,769) (70,019)
Loss before income taxes (62,506) (280,321) (381,595) (1,115,454)
Income tax benefit (expense) 0 0 0 0
Net loss (62,506) (280,321) (381,595) (1,115,454)
Net Loss Applicable to Common Stockholders:        
Net loss (62,506) (280,321) (381,595) (1,115,454)
Preferred stock dividends declared (47,990) (47,991) (142,930) (143,970)
Net loss applicable to common stockholders $ (110,496) $ (328,312) $ (524,525) $ (1,259,424)
Loss Per Share Applicable to Common Stockholders:        
Basic $ (0.01) $ (0.02) $ (0.04) $ (0.09)
Diluted $ (0.01) $ (0.02) $ (0.04) $ (0.09)
Weighted Average Number of Common Shares Outstanding:        
Basic 14,674,580 14,673,700 14,674,580 14,450,550
Diluted 14,674,580 14,673,700 14,674,580 14,450,550
v3.8.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash Flows from Operating Activities:    
Net loss $ (381,595) $ (1,115,454)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation, depletion and amortization 123,000 328,000
Accretion of discount on asset retirement obligations 75,000 75,333
Amortization of loan servicing fees 1,875 938
Settlement of Asset Retirement Obligation   (4,530)
Gain on sale of oil and gas properties (23,844) 0
Impairment expense 0 252,000
Common stock issued in exchange for services 0 25,334
Changes in operating assets and liabilities:    
Accounts receivable 7,280 (16,042)
Prepaid expenses and other (8,174) 20,722
Accounts payable 35,885 (2,078)
Accounts payable - DNR Oil & Gas (80,522) 0
Accounts payable - related parties and director's fees 67,782 0
Other accrued expenses and accrued interest 8,900 1,551
Net cash (used in) operating activities (174,413) (434,226)
Cash Flows from Investing Activities:    
Capital expenditures for property and equipment (150) (373)
Proceeds from sale of oil and gas properties 150,000 0
Net cash provided by (used in) investing activities 149,850 (373)
Cash Flows from Financing Activities:    
Proceeds from notes payable 32,526 250,500
Principal payments on notes payable (31,900) (127,369)
Principal payments on notes payable - related parties (10,489) (9,879)
Proceeds received from subscription receivable 0 105,000
Proceeds received from issuance of Series A Two preferred stock 0 50,000
Preferred stock dividends paid (68,998) (95,979)
Net cash (used in) Provided by financing activities (78,861) 172,273
Net increase (decrease) in cash and equivalents (103,424) (262,326)
Cash and equivalents, beginning of period 171,370 521,666
Cash and equivalents, end of period 67,946 259,340
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 64,499 60,080
Cash paid for interest - related parties 1,362 1,972
Cash paid for finance expenses 1,195 0
Accrued dividends 121,922 47,990
Common stock issued for loan closing costs $ 0 $ 7,500