Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes Tables

Deferred tax assets and deferred tax liabilities

The income tax effect, utilizing a 34% income tax rate, of temporary differences comprising the deferred tax assets and deferred tax liabilities is a result of the following at December 31:

	2012			2011
Deferred tax assets:
Net operating loss carryforwards	$	1,852,000		$	1,768,000
Oil and gas properties		106,000			109,000
		1,958,000			1,877,000
Valuation allowance		(1,958,000	)		(1,877,000	)
Net deferred tax assets	$	-		$	-

A reconciliation between the statutory federal income tax rate (34%) and the effective rate of income tax expense

A reconciliation between the statutory federal income tax rate (34%) and the effective rate of income tax expense for the years ended December 31 follows:

	2012			2011
Statutory federal income tax rate		34	%		(34	%)
Non-taxable losses (gains)		0	%		(40	%)
Valuation allowance		(34	%)		6	%
		0	%		0	%