4. OIL AND GAS PROPERTIES

6 Months Ended

Jun. 30, 2015

Extractive Industries [Abstract]

4. OIL AND GAS PROPERTIES

NOTE 4: OIL AND GAS PROPERTIES

The Company's aggregate capitalized costs related to oil properties consist of the following:

Name of the Property	Type	June 30, 2015 (Unaudited)			December 31, 2014
Rogers County, OK - Glass Lease	Oil	$	—		$	221,000
Rogers County, OK - Phillips Lease	Oil		—			130,000
Rogers County, OK (9) Leases	Oil		—			378,600
Chautauqua County, KS - B&W Ranch Lease	Oil & Gas		75,000			75,000
Chautauqua County, KS - Charles & Nancy Smith Lease	Oil & Gas		24,750			24,750
Chautauqua County, KS - Lloyd & Patricia Fields Lease	Oil & Gas		14,400			14,400
Chautauqua County, KS - Rinck Lease	Oil & Gas		24,750			24,750
Wilson County, KS – Farwell, Puckett & Farwell/Eagle Lease	Oil & Gas		251,208			251,208
Doug & Wendy Strauch – Brown Lease, Montana	Oil & Gas		5,040			—
Nowata County, OK (4) Leases	Gas		—			35,000
Shackelford County, TX – Terry Heirs	Oil		9,722			9,722
			404,870			1,164,430
Asset Retirement Obligation			4,718			4,000
Impairment allowance			(150,914	)		(919,603	)
Total		$	258,674		$	248,827

There were no exploration well costs capitalized for more than one year following the completion of drilling.

The following oil and gas leases were acquired and sold during the six months ended June 30, 2015.

Acquisition of Oil and Gas Leases in Montana

In February 2015, the Company entered into a Lease Purchase Agreement with a third party to acquire oil and gas lease properties, wells and equipment located in Counties of Yellowstone, Golden Valley, Treasure, Musselshell and surrounding Counties of the Crooked Creek Field within South Central Montana. The Company has paid a purchase consideration of $4,000 to the third party for such acquisition of leases. On May 26, 2015, the Company extended the terms of the Lease Purchase Agreement and paid an additional consideration of $1,040 to the third party as additional acquisition cost. The Company has not started any exploration and production as of June 30, 2015.

Assignment of Rogers County and Nowata County, Oklahoma Leases

Glass Lease, and (9) Leases- Jackson Lease, Anna Lease, Kerrigan Lease, Everett Lease, Jameson Lease, Thomas Lease, Winchester Lease, Winchester II Lease, Roberts Lease, Roebuck Lease, Taylor Lease and Walker Lease (“Leases”)

On January 22, 2015, the Company entered into an agreement with a third party to assigns all of its rights and ownership interests in these Leases for $100,000. The transaction closed on March 1, 2015 and the Company has received $90,000 of the sale price on March 3, 2015. The remaining balance of $10,000 will be received subject to completion of takeover of the Leases. As a result of assignment of these Leases, the Company has recorded a loss of $33,886 on assignment for the six months ended June 30, 2015.