INVESTMENT IN CROSS BORDER RESOURCES, INC.	3 Months Ended
Aug. 31, 2011
INVESTMENT IN CROSS BORDER RESOURCES, INC.	NOTE 5. INVESTMENT IN CROSS BORDER RESOURCES, INC. On May 23, 2011, the Company entered into a securities purchase agreement with Cross Border, a publicly traded company, pursuant to which the Company purchased 2,136,164 units. Each unit included one share of the common stock of Cross Border and one warrant to acquire an additional share of common stock of Cross Border. The aggregate purchase price of the units was $3,204,261. The warrants have an exercise price of $2.25 per share. The warrants are exercisable for a five year term and become exercisable on the sixth month anniversary of the issuance date. On August 16, 2011, the Company entered into a stock purchase and sale agreement pursuant to which the Company acquired 218,535 shares of common stock of Cross Border from a third party in exchange for the issuance of 273,169 shares of the Company's common stock. The Company determined the investment should be presented as available-for-sale instruments. Available-for-sale instruments are measured at fair value with unrealized gains and losses recognized in other comprehensive income (loss) and reported in shareholders’ equity. As of August 31, 2011, the fair value of the units of Cross Border decreased by approximately $1,533,292 to $4,763,915. The Company valued the warrants as of August 31, 2011 at $485,138 using the Black-Scholes valuation model. In determining this valuation, the Company used a volatility rate of 94%, a risk free interest rate of 0.96%, an estimated life of 4.75 years and a dividend rate of zero.

NOTE 5. INVESTMENT IN CROSS BORDER RESOURCES, INC.

On May 23, 2011, the Company entered into a securities purchase agreement with Cross Border, a publicly traded company, pursuant to which the Company purchased 2,136,164 units. Each unit included one share of the common stock of Cross Border and one warrant to acquire an additional share of common stock of Cross Border. The aggregate purchase price of the units was $3,204,261. The warrants have an exercise price of $2.25 per share. The warrants are exercisable for a five year term and become exercisable on the sixth month anniversary of the issuance date.

On August 16, 2011, the Company entered into a stock purchase and sale agreement pursuant to which the Company acquired 218,535 shares of common stock of Cross Border from a third party in exchange for the issuance of 273,169 shares of the Company's common stock.

The Company determined the investment should be presented as available-for-sale instruments. Available-for-sale instruments are measured at fair value with unrealized gains and losses recognized in other comprehensive income (loss) and reported in shareholders’ equity.

As of August 31, 2011, the fair value of the units of Cross Border decreased by approximately $1,533,292 to $4,763,915. The Company valued the warrants as of August 31, 2011 at $485,138 using the Black-Scholes valuation model. In determining this valuation, the Company used a volatility rate of 94%, a risk free interest rate of 0.96%, an estimated life of 4.75 years and a dividend rate of zero.