NOTE 3 - OIL AND GAS PROPERTIES, UNPROVED

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

NOTE 3 - OIL AND GAS PROPERTIES, UNPROVED

NOTE 3 – OIL AND GAS PROPERTIES, UNPROVED

At March 31, 2017 and 2016, the Company had $66,396 and $20,108 in unproved oil and gas properties representing 17,306 and 960 acres in the Rocky Mountain range located in the State of Colorado, respectively. In the years ended March 31, 2017 and 2016, the Company paid $46,289 and $20,107 to lease 16,346 and 960 acres for a 5-year term, respectively. Initially the Company is required to pay the first year’s lease plus any lease bonus payments. Thereafter, the Company is responsible for making annual lease payments of $2.50 per acre to the State of Colorado for the next four years. Annual lease payments for future fiscal years are as follows:

Fiscal Year Ended March 31,	Acres Leased	Annual Lease Commitment
2018	17,306	$43,268
2019	17,306	$43,268
2020	17,306	$43,268
2021	17,306	$40,868

Annually, the oil and gas properties are tested for impairment. The Company determined that there was no impairment of the unproved oil and gas properties for the years ended March 31, 2017 and 2016.