OWNED SECURITIES

3 Months Ended

Nov. 30, 2011

OWNED SECURITIES [Text Block]

4.	OWNED SECURITIES
	Owned securities includes, 375,000 common shares and 375,000 warrants of Cheetah Oil & Gas Ltd. and 499,893 common shares and 499,893 warrants of Lexaria Corp, obtained through the disposal of the Company’s oil and gas properties in Mississippi in 2010. The Company classified the securities owned as held-for-trade and recorded at fair value. The Chairman of the Company is a Director and Officer of Lexaria Corp.
	On January 6, 2012, the Company entered into a share purchase agreement (the “Agreement”) with a third party (“Purchaser”). The Company has agreed to sell to Purchaser, and Purchaser has agreed to purchase from the Company, 250,000 units of Lexaria Corp. at a purchase price of US$0.15 per unit, for a total of US$37,500, by the effective closing date of January 6, 2012. In addition, pursuant to the terms of the Agreement, Purchaser will have an option, at his sole discretion, to pay US$0.25 per unit or approximately US$62,500 to purchase the remaining 249,893 units on or before March 2 nd , 2012.

                    As at November 30, 2011, the Company wrote down the value of 499,893 shares of Lexaria and warrants to $100,000.

The fair values of the common shares of Cheetah Oil & Gas Ltd. as at November 30, 2011 were $0.06 per share. The fair values of warrants of Cheetah Oil & Gas Ltd. as at November 30, 2011 were $0.046. The above fair values of warrants have been estimated as of November 30, 2011 by using the Black-Scholes option pricing model with the following assumptions:

	Cheetah Oil & Gas Ltd.
Expected volatility	359.92%
Risk-free interest rate	1.01%
Expected life	.50 years
Dividend yield	0.00%