8. RELATED PARTY TRANSACTIONS AND BALANCES	6 Months Ended
Jun. 30, 2015
Related Party Transactions [Abstract]
8. RELATED PARTY TRANSACTIONS AND BALANCES	NOTE 8: RELATED PARTY TRANSACTIONS AND BALANCES At June 30, 2015 and December 31, 2014, advances, net of repayments, made to the Company by the Chief Executive Officer (“Officer”) for its working capital requirements amounted to $100 and $100, respectively. Amounts due to the Officer are unsecured, non-interest bearing and due on demand without specific repayment terms. On June 1, 2013, the Company entered into a business consulting and marketing agreement with its non-executive director for a twelve month period at the rate of $2,500 per month. The agreement terminated on May 31, 2014 and the non-executive director continued to provide services to the Company for adhoc fees. The Company recorded an expense of $22,500 and $55,000 as consulting fees for the three months and six months periods ended June 30, 2015 as compared to $12,500 and $20,000 for the same comparable periods ended June 30, 2014. On July 1, 2014, the Company entered into a business advisory and consulting agreement for a twelve months term, with a management company related to the Chief Executive Officer. The Company agreed to pay $5,000 monthly cash payment and issued 400,000 shares of its common stock valued at $56,000. The common shares issued are valued at the closing price of stock on the effective date of the consulting agreement and the value is recorded as a prepaid expense to be amortized over the service period. The Company recorded an expense of $29,000 and $58,000 as consulting expense for the three months and six months periods ended June 30, 2015 as compared to $0 and $0 for the same comparable periods in 2014. The Company engages an entity owned by a director of the Company to be the operator on its oil and gas lease properties in Wilson County, Kansas. The Company has recorded an expense of $18,049 and $58,110 for lease operating expenses and administration for these oil and gas leases for the three months and six months periods ended June 30, 2015. The Company paid the operator $24,786 and $243,573 for lease operating expenses and administration for these oil and gas leases for the same comparable periods ended on June 30, 2014. Amount payable to the entity owned by the director was $40,322 and $26,635 at June 30, 2015 and December 31, 2014, respectively. On August 31, 2014, the Company acquired the remaining 12.5% working interest in Volunteer and Lander Leases in Wilson County, Kansas (“Leases”), from an entity owned by a director for $125,000 and obtained the 100% working interest in the Leases. The Company paid $15,000 in cash and executed a promissory note for $110,000 (See Note 6). The Company recorded an interest expense of $1,375 and $2,750 for the three months and six months periods ended June 30, 2015. Interest payable to the director amounted to $4,583 as of June 30, 2015 and $1,833 as of December 31, 2014. The Company recorded director fee expense of $12,000 and $24,000 for the three months and six months periods ended June 30, 2015 and $12,000 and $24,000 for the three months and six months periods ended June 30, 2014. Director fees of $57,000 and $35,000 remains payable as of June 30, 2015 and December 31, 2014, respectively.

8. RELATED PARTY TRANSACTIONS AND BALANCES

6 Months Ended

Jun. 30, 2015

NOTE 8: RELATED PARTY TRANSACTIONS AND BALANCES

At June 30, 2015 and December 31, 2014, advances, net of repayments, made to the Company by the Chief Executive Officer (“Officer”) for its working capital requirements amounted to $100 and $100, respectively. Amounts due to the Officer are unsecured, non-interest bearing and due on demand without specific repayment terms.

On June 1, 2013, the Company entered into a business consulting and marketing agreement with its non-executive director for a twelve month period at the rate of $2,500 per month. The agreement terminated on May 31, 2014 and the non-executive director continued to provide services to the Company for adhoc fees. The Company recorded an expense of $22,500 and $55,000 as consulting fees for the three months and six months periods ended June 30, 2015 as compared to $12,500 and $20,000 for the same comparable periods ended June 30, 2014.

On July 1, 2014, the Company entered into a business advisory and consulting agreement for a twelve months term, with a management company related to the Chief Executive Officer. The Company agreed to pay $5,000 monthly cash payment and issued 400,000 shares of its common stock valued at $56,000. The common shares issued are valued at the closing price of stock on the effective date of the consulting agreement and the value is recorded as a prepaid expense to be amortized over the service period. The Company recorded an expense of $29,000 and $58,000 as consulting expense for the three months and six months periods ended June 30, 2015 as compared to $0 and $0 for the same comparable periods in 2014.

The Company engages an entity owned by a director of the Company to be the operator on its oil and gas lease properties in Wilson County, Kansas. The Company has recorded an expense of $18,049 and $58,110 for lease operating expenses and administration for these oil and gas leases for the three months and six months periods ended June 30, 2015. The Company paid the operator $24,786 and $243,573 for lease operating expenses and administration for these oil and gas leases for the same comparable periods ended on June 30, 2014. Amount payable to the entity owned by the director was $40,322 and $26,635 at June 30, 2015 and December 31, 2014, respectively.

On August 31, 2014, the Company acquired the remaining 12.5% working interest in Volunteer and Lander Leases in Wilson County, Kansas (“Leases”), from an entity owned by a director for $125,000 and obtained the 100% working interest in the Leases. The Company paid $15,000 in cash and executed a promissory note for $110,000 (See Note 6). The Company recorded an interest expense of $1,375 and $2,750 for the three months and six months periods ended June 30, 2015. Interest payable to the director amounted to $4,583 as of June 30, 2015 and $1,833 as of December 31, 2014.

The Company recorded director fee expense of $12,000 and $24,000 for the three months and six months periods ended June 30, 2015 and $12,000 and $24,000 for the three months and six months periods ended June 30, 2014. Director fees of $57,000 and $35,000 remains payable as of June 30, 2015 and December 31, 2014, respectively.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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