1. Organization of The Company and Significant Accounting Policies: Fixed Assets (Policies)

3 Months Ended

Mar. 31, 2013

Policies

Fixed Assets

Fixed Assets- Fixed assets are stated at cost. Depreciation expense is computed using the straight-line method over the estimated useful life of the asset. The following is a summary of the estimated useful lives used in computing depreciation expense:

Well equipment 5 years

Expenditures for major repairs and renewals that extend the useful life of the asset are capitalized. Minor repair expenditures are charged to expense as incurred.