Commitment and Contingencies

3 Months Ended

Jun. 30, 2012

COMMITMENTS AND CONTINGENCIES

Commitments and Contingencies Disclosure [Text Block]

NOTE 9– COMMITMENTS AND CONTINGENCIES 

On July 1, 2008, the Company leased office space for a period of three years for a fixed monthly rental of $1,500 (See Note 12).  On December 1, 2011, the Company leased office space for a period of four years for fixed monthly rental of $2,500.  Accordingly, the Company's commitment to make these lease payments for each successive year is $30,000.

The Company is obligated to pay royalties to holders of oil and natural gas interests in both North Dakota and Kansas operations.  The Company also is obligated to pay working interest holders a pro-rata portion of revenue in oil operations net of shared operating expenses.  The amounts are based on monthly oil and natural gas sales and are charged monthly net of to oil and gas revenue and recognized as "Due to royalty and working interest holders" on the Company's balance sheet.