Note 4 - Property and Equipment

6 Months Ended

Jun. 30, 2011

Property, Plant and Equipment Disclosure [Text Block]

Note 4 – Property and Equipment

Property and equipment at June 30, 2011 and December 31, 2010, consisted of the following:

	June 30,			December 31,
	2011			2010
Oil and gas properties, full cost method:
Unevaluated costs, not subject to amortization or ceiling test	$	13,132,727		$	4,343,389
Evaluated costs		5,517,373			-
		18,650,100			4,343,389
Other property and equipment		40,533			15,706
		18,690,633			4,359,095
Less: Accumulated depreciation, amortization and depletion		(109,692	)		(13,725	)
Total property and equipment, net	$	18,580,941		$	4,345,370

The following table shows depreciation, depletion, and amortization expense by type of asset:

	June 30,		June 30,
	2011		2010
Depletion of costs for evaluated oil and gas properties	$	104,530	$	-
Depreciation and amortization of other property and equipment		6,082		619
Total depreciation, amortization and depletion	$	110,612	$	619