10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________to _____________

Commission File Number:  333-178251

NORTH TEXAS ENERGY, INC.
(Exact name of registrant as specified in its charter)
Nevada	27-4556048
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
5057 KELLER SPRINGS ROAD, SUITE 300	75001
(Address of principal executive offices)	(Zip Code)

469-718-5572

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x   No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No  o

No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer r	Accelerated filer  r
Non-accelerated filer  r	Smaller reporting company  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes    r No      x

As of August 31, 2015, the Company had outstanding 6,623,490 shares of its common stock.

NORTH TEXAS ENERGY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	June 30,			December 31,
	2015			2014
Assets
Current assets
Cash	$	50,512		$	92,426
Accounts receivable		-			5,369
Total current assets		50,512			97,795
Oil and gas properties, full cost method
Costs not being amortized		1,497,427			1,398,782
Accumulated depletion, depreciation and amortization		(2,934	)		(2,934	)
Total oil and gas properties, full cost method		1,494,493			1,395,848
Total assets	$	1,545,005		$	1,493,643
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued liabilities	$	154,799		$	110,521
Common stock payable		141,350			40,000
Accrued lease liabilities		65,881			65,881
Total current liabilities		362,030			216,402
Asset retirement obligations		44,282			44,282
Total liabilities		406,312			260,684
Commitments and contingencies
Shareholders' equity
Common stock, $0.00001 par value, 100,000,000 shares authorized, 6,540,315 and 6,467,065 shares issued, respectively		65			65
Additional paid-in capital		3,132,607			2,986,107
Accumulated deficit		(1,993,979	)		(1,753,213	)
Total shareholders' equity		1,138,693			1,232,959
Total liabilities and shareholders' equity	$	1,545,005		$	1,493,643

See notes to the unaudited consolidated financial statements.

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NORTH TEXAS ENERGY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Revenues	$	3,507		$	20,410		$	10,925		$	38,635
Operating expenses:
Lease operating expenses		70,342			17,090			75,473			29,387
Depletion and accretion		-			1,595			-			3,266
General and administrative expenses		79,496			50,441			137,390			85,294
Legal and professional fees		28,778			29,130			38,828			29,620
Total  operating expenses		178,616			98,256			251,691			147,567
Net operating loss		(175,109	)		(77,846	)		(240,766	)		(108,932	)
Net loss	$	(175,109	)	$	(77,846	)	$	(240,766	)	$	(108,932	)
Basic and diluted loss per common share	$	(0.03	)	$	(0.01	)	$	(0.04	)	$	(0.02	)
Weighted average number of common shares outstanding - basic and diluted		6,535,810			6,231,265			6,512,000			6,218,624

See notes to the unaudited consolidated financial statements.

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NORTH TEXAS ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six Months Ended  June 30, 2015			Six Months Ended  June 30, 2014
Cash flows from operating activities:
Net loss	$	(240,766	)	$	(108,932	)
Adjustments to reconcile net loss to net cash from operating activities:
Depletion, and accretion expense		-			3,266
Stock issued for services		6,000			-
Changes in operating assets and liabilities:
Accounts receivable		5,369			(3,065	)
Inventory		-			1,013
Accounts payable and accrued liabilities		44,278			(16,074	)
Net cash used in operating activities		(185,119	)		(123,792	)
Cash flows from investing activities:
Payments for proved oil and gas properties		(98,645	)		(182,883	)
Net cash used in investing activities		(98,645	)		(182,883	)
Cash flows from financing activities:
Proceeds from sales of common stock		241,850			308,000
Net cash provided by financing activities		241,850			308,000
Net increase (decrease) in cash		(41,914	)		1,325
Cash at beginning of period		92,426			50,924
Cash at end of period	$	50,512		$	52,249
Supplemental cash flows information:
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-
Noncash investing and financing activities:
Asset retirement obligations	$	-		$	(19,984	)

See notes to the unaudited consolidated financial statements.

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NORTH TEXAS ENERGY, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 1 – Business and Organization

North Texas Energy, Inc. (“the Company”) was incorporated in the State of Nevada on January 12, 2011. The Company intends to focus on re-entering non-producing oil fields and re-starting production with existing oil and gas wells. On February 25, 2011, the Company entered into a Purchase and Sale Agreement with Remington Oil & Gas, Inc. (“Remington”) to acquire Remington’s interest in an oil and gas lease in Upshur and Milam County, Texas along with wellhead equipment and certain lease obligations.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim consolidated financial statements of North Texas Energy, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual report on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein.  The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited consolidated financial statements for the most recent fiscal year ended December 31, 2014 have been omitted.

Cash and Cash Equivalents

Cash equivalents are highly liquid investments with an original maturity of three months or less.

Oil and Gas Properties

The Company uses the full cost method of accounting for exploration and development activities as defined by the SEC. Under this method of accounting, the costs for unsuccessful, as well as successful, exploration and development activities are capitalized as oil and gas properties. Capitalized costs include lease acquisition, geological and geophysical work, delay rentals, costs of drilling, completing and equipping the wells and any internal costs that are directly related to acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Proceeds from the sale or other disposition of oil and gas properties are generally treated as a reduction in the capitalized costs of oil and gas properties, unless the impact of such a reduction would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a country.

The Company categorizes its full cost pools as costs subject to amortization and costs not being amortized. The sum of net capitalized costs subject to amortization, including estimated future development and abandonment costs, are amortized using the unit-of-production method.

Oil and gas properties include costs that are excluded from capitalized costs being amortized. These amounts represent costs of investments in unproved properties. The Company excludes these costs on a country-by-country basis until proved reserves are found or until it is determined that the costs are impaired. All costs excluded are reviewed annually to determine if impairment has occurred. The amount of any impairment is transferred to the costs subject to amortization. The Company currently only owns unproved properties. As of June 30, 2015, management believes that there is no impairment for the Company’s unproved oil and gas properties.

Ceiling Test and Impairment

Under the full cost method of accounting, a ceiling test is performed each quarter for proved properties. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X. The ceiling test determines a limit, on a country-by-country basis, on the book value of oil and gas properties. The capitalized costs of proved oil and gas properties, net of accumulated depreciation, depletion, amortization and impairment(“DD&A”) and the related deferred income taxes, may not exceed the estimated future net cash flows from proved oil and gas reserves, calculated using the average oil and natural gas sales price received by the Company as of the first trading day of each month over the preceding twelve months (such prices are held constant throughout the life of the properties) with consideration of price change only to the extent provided by contractual arrangement, discounted at 10%, net of related tax effects. If capitalized costs exceed this limit, the excess is charged to expense and reflected as additional accumulated DD&A.  The Company has no proved properties subject to the full cost ceiling test as of June 30, 2015.

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Asset Retirement Obligations

Asset retirement obligations (“ARO”) represent the future abandonment costs of tangible assets such as platforms, wells, service assets, pipelines, and other facilities. The fair value of a liability for an asset's retirement obligation is recorded in the period in which it is incurred if a reasonable estimate of fair value can be made, and that the corresponding cost is capitalized as part of the carrying amount of the related long-lived asset. The liability is accreted to its then present value each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount, an adjustment is made to the full cost pool, with no gain or loss recognized, unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves. The ARO assets, which are carried on the balance sheet as part of the full cost pool, will be included in our amortization base for the purposes of calculating depreciation, depletion and amortization expense. For the purposes of calculating the ceiling test, the future cash outflows associated with settling the ARO liability is included in the computation of the discounted present value of estimated future net revenues. The liability is adjusted for any changes in the estimate of the liability and for the disposal of previously held oil and gas leases net of accretion expense.

Revenue Recognition

The Company generally sells crude oil and natural gas under short-term agreements at prevailing market prices. Revenues are recognized when the products are delivered, which occurs when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable, and collectability is reasonably assured.

Income Taxes

Deferred income taxes are provided on a liability method whereby deferred tax assets and liabilities are established for the difference between the financial reporting and income tax basis of assets and liabilities as well as operating loss and tax credit carry forwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carry-forwards are expected to be available to reduce taxable income. At June 30, 2015 and December 31, 2014 the Company has recorded a 100% valuation allowance as management has no assurance that deferred tax assets will be realized.

At June 30, 2015, the Company had net operating loss carry forwards of approximately $1 million that will expire between 2031 through 2034.

Net Loss Per Common Share

Basic net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average number of common and common equivalent shares outstanding during the period. Common share equivalents included in the diluted computation represent shares issuable upon assumed exercise of stock options and warrants using the treasury stock and “if converted” method. For periods in which net losses are incurred, weighted average shares outstanding is the same for basic and diluted loss per share calculations, as the inclusion of common share equivalents would have an anti-dilutive effect. As of June 30, 2015, there are no potentially dilutive shares.

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Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at year-end and the reported amounts of revenues and expenses during the year and the reported amount of proved natural gas and oil reserves. Management bases its estimates on historical experience and various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments that are not readily apparent from other sources. Actual results could differ from these estimates and changes in these estimates are recorded when known.

Subsequent Events

The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration.

Reclassifications

Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.

Recently Issued Accounting Pronouncements

There were various accounting standards and interpretations issued during the six months ended June 30, 2015, none of which are expected to have a material impact on the Company’s financial position, operations, or cash flows.

Note 3 – Going Concern

As shown in the accompanying financial statements, the Company has incurred losses from operations and has generated limited revenue at this time. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. In addition to the offering of securities for sale to the public, the Company currently is diligently searching for other short-term and long-term sources of liquidity for its producing operations.

Note 4 – Oil and Gas Properties

The Company’s oil and gas properties at June 30, 2015 and December 31, 2014 were located adjacent to each other in the State of Texas in the United States and all in Milam County.

During the six months ended June 30, 2015, the Company invested $98,645 in the drilling of new wells.

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Note 5 – Accrued Lease Liabilities

The Company has an accrued lease liability to KADs Oil, Inc., the lessor of the leases in Milam County, Texas which the Company currently owns. As a result of the Purchase and Sale Agreement with Remington, the Company assumed the leasehold obligation of $50,000. Payments are to be made when oil and gas is recovered and delivered to market at the rate of 25% of the sale price after all operating expenses.

On May 10, 2011, the Company entered into an oil, gas and mineral lease agreement for its oil and gas properties located in Milam County, Texas. Pursuant to the lease agreement, the Company will pay the lessor $15,881 for the lease which is recorded as an accrued leasehold liability on the Company’s balance sheets at June 30, 2015 and December 31, 2014.

Note 6 – Equity

During the six months ended June 30, 2015, the Company issued 70,250 shares of common stock for $140,500 cash and 3,000 shares of common stock for geophysical data.

During the six months ended June 30, 2015, the Company received $101,350 for 50,675 shares of common stock that were issued subsequent to June 30, 2015.

Note 7 – Subsequent Events

Subsequent to June 30, 2015, the Company received $70,000 cash for the sale of 35,000 shares of its common stock and returned $5,000 cash to a former investor who returned 2,500 common shares to the Company for cancellation.

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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview

The results of operations show how capital intensive and profitless the oil and gas production business is at start up. The progress so far has been limited by severely limited access to working capital. One of the most important economic factors in the U.S economy is the successful exploration and production of crude oil and natural gas. North Texas Energy, Inc. is committing its business and resources to the production of crude oil and natural gas that remains in geological formations in oil fields that have been previously explored and have produced significant amounts of crude oil already. Data and research produced by the Department of Energy indicates that additional significant reserves of crude oil and natural gas remain in fields that were once productive in the past. In previous years and with the price of crude oil steady at about eighty seven dollars per barrel (since 2008), new production methods have emerged as cost-effective in recovering the substantial remaining oil that has not been recovered using standard methods. North Texas Energy, Inc. entered into the business of recovering oil in previously drilled and producing fields in 2009 by acquiring oil and natural gas leases in north Texas. The Company’s predecessor operated in year 2010 for a short period of time. During that time, the Company had access to private capital from sales of common stock to shareholders. The capital from investment by private shareholders was limited and sales were terminated late in 2010. The funds invested at that time were used mainly to begin the process of refurbishing wells and preparing well head installations for re-use. The short operations history shows that without on-going sources of working capital, the initial cost of getting wells and drill bores functional to begin the process of recovering oil that remains in the geological formation will not be met and significant delays in recovering the remaining oil would occur.

Results of Operations

Three Months ended June 30, 2015 Compared to Three Months ended June 30, 2014

For the three months ended June 30, 2015 and 2014, the Company had net losses of $175,109 and $77,846, respectively.

Revenues

The total net production value of the oil for the three months ended June 30, 2015 was $3,507 compared to a value of $20,410 for the three months ended June 30, 2014.  The reason for the decrease is because the wells were shut down for two months during 2015 due to severe weather conditions.

Operating Expenses

The Company had lease operating expenses of $70,342 and general operating expenses of $108,274 for the three months ended June 30, 2015 compared to $17,090 and $79,571, respectively, for the three months ended June 30, 2014. The increase in lease operating expenses is due to the Company repairing damages to the wells caused by severe weather conditions.  The Company also incurred more travel expense related to the trips the Company’s management made to manage the wells and sell the Company’s shares.

Six Months ended June 30, 2015 Compared to Six Months ended June 30, 2014

For the six months ended June 30, 2015 and 2014, the Company had net losses of $240,766 and $108,932, respectively.

Revenues

The Company began delivering crude oil to market from its producing wells in the first quarter of 2014. The total net production value of the oil for the six months ended June 30, 2015 was $10,925 compared to a value of $38,635 for the six months ended June 30, 2014.  The reason for the decrease is because the wells were shut down for two months during 2015 due to severe weather conditions.

Operating Expenses

The Company had lease operating expenses of $75,473 and general operating expenses of $176,218 for the six months ended June 30, 2015 compared to $29,387 and $114,914, respectively, for the six months ended June 30, 2014. The increase in lease operating expenses is due to the Company repairing damages to the wells caused by severe weather conditions.  The Company also incurred more travel expense related to the trips the Company’s management made to manage the wells and sell the Company’s shares.

Liquidity

The Company began selling its common shares in accordance with its registration statement which became effective on March 29, 2013. On March 29, 2014, the Company filed an amendment of its Prospectus that relates to the common stock sales extending the time past the original one year sales period. The Company will continue to sell shares as allowed and use those funds for the further development of its oil and gas properties. The Company believes that it can continue to sell its common stock and use those funds as well as the funds it generates from crude oil production to continue its operations. The Company has no immediate sources of debt or equity funding that is not related to the offering of its shares. The Company believes it can avoid accumulating debt or using other non-traditional forms of financing to provide liquidity.

At June 30, 2015, our cash balance was $50,512.

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Net cash used in operating activities was $185,119 for the six months ended June 30, 2015, compared to $123,792 for the six months ended June 30, 2014.  The change is mainly due to more payments made to the vendors and professionals during the current year.

Net cash used in investing activities was $98,645 for the six months ended June 30, 2015, compared to $182,883 for the six months ended June 30, 2014.  The change is mainly due to less drilling activities of the Company.

Net cash provided by financing activities during the six months ended June 30, 2015 was $241,850 compared to $308,000 for the six months ended June 30, 2014.  The change is mainly due the Company selling more shares of common stock in the prior year.

Without additional investment capital from shareholders or other sources, the Company has no short term source of liquidity. In order to bring wells on-line and produce crude oil and natural gas to bring to market, significant amounts of working capital will be needed to continue. Accordingly, the Company plans to systematically bring wells on-line that have the greatest initial production possibility as capital is available. The Company’s illiquid financial position could cause it to not be able to start producing oil in the near future unless working capital from the offering or some other source of short term liquidity is developed.

Management does not believe that the Company’s current capital resources will be sufficient to fund its operating activity and other capital resource demands during the next year. Our ability to continue as a going concern is contingent upon our ability to obtain capital through the sale of equity or issuance of debt, and ultimately attaining profitable operations. There is no assurance that we will be able to successfully complete any one of these activities.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

As a smaller reporting company, we are not required to provide disclosure under this Item 3.

Item 4. Controls and Procedures.

Evaluation of Effectiveness of disclosure controls and procedures

The management of the Company (CEO/CFO) have undertaken to establish a system of internal controls that are designed to assure that the Company prepares financial reports or statements that are published are prepared by applying the highest standard of compliance to the rules and regulations that guide their preparation in accordance with generally accepted accounting principles in the United States. Specifically, the management has implemented and enforces controls that:

Provide that a system of record keeping is maintained and used to accurately and in sufficient detail record the transactions and assets of the Company and any disposition of the Company’s assets.

A.	Provide for the accurate and timely recording of the transactions that are necessary for the preparation of financial statements in accordance with Generally Accepted Accounting Principles in the United States. Further, in place are systems that assure that the Company makes expenditures and collects receipts in accordance with the directives and authorization of management.
B.	Provide that a system is in place to detect or disclose to management in a timely manner any misuse or un-authorized use or disposition of the Company’s assets that could have a material effect on the financial statements issued by the Company.

As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company's Principal Executive Officer and Principal Financial Officer of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in rules 13a-15(e) and 15d-15(e)) under the Exchange Act. Based on that evaluation, the certifying officers have concluded that, as of June 30, 2015, the disclosure controls and procedures in place were not effective as of the end of and for the period covered by this report due to the material weaknesses described in Management's Report on Internal Control over Financial Reporting as reported in our Form 10-K for the year ended December 31, 2014.

Changes in internal control over financial reporting

The Certifying Officers reviewed our internal control over financial reporting (as defined in rules 13a-15(f) and 15d-15(f)) under the Exchange Act as of the Evaluation Date and concluded that no changes occurred in such control or in other factors during the quarter ended June 30, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 

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PART II—OTHER INFORMATION

Item 1.  Legal Proceedings.

The Company is not currently enjoined in any legal proceeding and no previous legal proceedings exist.

Item 1A.   Risk Factors

As a smaller reporting company, we are not required to provide disclosure under this Item 1A.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

The Company made no sales of not-registered securities during the period from December 31, 2014 to June 30, 2015.

Item 3.   Defaults upon Senior Securities.

No default on any senior, subordinated or other debt has occurred.

Item 4.   Mine Safety Disclosures

Not applicable.

Item 5.  Other Information.

None.

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Item 6.  Exhibits.

Number	Exhibit Description
2.2	Purchase and Sales Agreement (Previously filed 2/23/2012)
3.1	Articles of Incorporation of North Texas Energy, Inc. (Previously filed 12/30/2011)
3.2	By-Laws of North Texas Energy, Inc. (Previously filed 12/30/2011)
31.1	Certificate of principal executive officer and principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the  Sarbanes-Oxley Act of 2002
31.2	Certificate of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the   Sarbanes-Oxley Act of 2002
32.1	Certificate of principal executive officer and principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002
32.2	Certificate of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the   Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Schema Document
101.CAL	XBRL Calculation Linkbase Document
101.DEF	XBRL Definition Linkbase Document
101.LAB	XBRL Label Linkbase Document
101.PRE	XBRL Presentation Linkbase Document

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	North Texas Energy, Inc.
Date: September 3, 2015
	By: /s/ Kevin Jones
	Kevin Jones
	Chief Executive Officer (Principal Executive Officer)
	North Texas Energy, Inc.
Date: September 3, 2015	By: /s/ Sanah Marah, Jr.
	Sanah Marah, Jr.
	Chief Financial Officer (Principal Financial Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Kevin Jones, certify that:

1. I have reviewed this quarterly report on Form 10-Q of North Texas Energy, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weakness in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 3, 2015	/s/ Kevin Jones
	Kevin Jones
	Chief Executive Officer and Director (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Sanah Marah, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of North Texas Energy, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weakness in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 3, 2015	/s/ Sanah Marah, Jr.
	Sanah Marah, Jr.
	Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of North Texas Energy, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kevin Jones, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

	/s/ Kevin Jones
Name:	Kevin Jones
Title:	Chief Executive Officer and Director
Date:	September 3, 2015

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of North Texas Energy, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Sanah Marah, Jr., Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

	/s/ Sanah Marah, Jr.
Name:	Sanah Marah, Jr.
Title:	Chief Financial Officer (Principal Financial Officer)
Date:	September 3, 2015

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Note 1 - Business and Organization (Details)	6 Months Ended
	Jun. 30, 2015
Details
Entity Incorporation, State Country Name	State of Nevada
Entity Incorporation, Date of Incorporation	Jan. 12, 2011

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Note 4 - Oil and Gas Properties

6 Months Ended

Jun. 30, 2015

Notes

Note 4 - Oil and Gas Properties

Note 4 – Oil and Gas Properties

The Company’s oil and gas properties at June 30, 2015 and December 31, 2014 were located adjacent to each other in the State of Texas in the United States and all in Milam County.

During the six months ended June 30, 2015, the Company invested $98,645 in the drilling of new wells. 

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Note 6 - Equity (Details) - 6 months ended Jun. 30, 2015 - USD ($)	Total
Issuance 1
Stock Issued During Period, Shares, New Issues	70,250
Stock Issued During Period, Value, New Issues	$ 140,500
Issuance 2
Stock Issued During Period, Shares, New Issues	50,675
Stock Issued During Period, Value, New Issues	$ 101,350

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Note 5 - Accrued Lease Liabilities (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Accrued lease liabilities	$ 65,881	$ 65,881
KADs Oil, Inc.
Accrued lease liabilities	50,000
Other
Accrued lease liabilities	$ 15,881

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Note 7 - Subsequent Events (Details) - 6 months ended Jun. 30, 2015 - Issuance 3 - USD ($)	Total
Stock Issued During Period, Value, New Issues	$ 70,000
Stock Issued During Period, Shares, New Issues	35,000

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Note 3 - Going Concern

6 Months Ended

Jun. 30, 2015

Notes

Note 3 - Going Concern

Note 3 – Going Concern

As shown in the accompanying financial statements, the Company has incurred losses from operations and has generated limited revenue at this time. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. In addition to the offering of securities for sale to the public, the Company currently is diligently searching for other short-term and long-term sources of liquidity for its producing operations.

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CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current assets
Cash	$ 50,512	$ 92,426
Accounts Receivable		5,369
Total current assets	50,512	97,795
Oil and gas properties, full cost method
Costs not being amortized	1,497,427	1,398,782
Accumulated depletion, depreciation and amortization	(2,934)	(2,934)
Total oil and gas properties, full cost method	1,494,493	1,395,848
Total assets	1,545,005	1,493,643
Current liabilities
Accounts payable and accrued liabilities	154,799	110,521
Common stock payable	141,350	40,000
Accrued lease liabilities	65,881	65,881
Total current liabilities	362,030	216,402
Asset retirement obligations	44,282	44,282
Total liabilities	$ 406,312	$ 260,684
Commitments and contingencies
Shareholders' equity
Common stock, $0.00001 par value, 100,000,000 shares authorized, 6,540,315 and 6,467,065 shares issued, respectively	$ 65	$ 65
Additional paid-in capital	3,132,607	2,986,107
Accumulated deficit	(1,993,979)	(1,753,213)
Total shareholders' equity	1,138,693	1,232,959
Total liabilities and shareholders' equity	$ 1,545,005	$ 1,493,643

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Note 1 - Business and Organization

6 Months Ended

Jun. 30, 2015

Notes

Note 1 - Business and Organization

Note 1 – Business and Organization

North Texas Energy, Inc. (“the Company”) was incorporated in the State of Nevada on January 12, 2011. The Company intends to focus on re-entering non-producing oil fields and re-starting production with existing oil and gas wells. On February 25, 2011, the Company entered into a Purchase and Sale Agreement with Remington Oil & Gas, Inc. (“Remington”) to acquire Remington’s interest in an oil and gas lease in Upshur and Milam County, Texas along with wellhead equipment and certain lease obligations.

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Note 2 - Summary of Significant Accounting Policies: Subsequent Events (Policies)

6 Months Ended

Jun. 30, 2015

Policies

Subsequent Events

Subsequent Events

The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration.

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Note 2 - Summary of Significant Accounting Policies: Recently Issued Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2015

Policies

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

There were various accounting standards and interpretations issued during the six months ended June 30, 2015, none of which are expected to have a material impact on the Company’s financial position, operations, or cash flows.

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Note 2 - Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2015

Notes

Note 2 - Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim consolidated financial statements of North Texas Energy, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual report on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein.  The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited consolidated financial statements for the most recent fiscal year ended December 31, 2014 have been omitted.

Cash and Cash Equivalents

Cash equivalents are highly liquid investments with an original maturity of three months or less.

Oil and Gas Properties

The Company uses the full cost method of accounting for exploration and development activities as defined by the SEC. Under this method of accounting, the costs for unsuccessful, as well as successful, exploration and development activities are capitalized as oil and gas properties. Capitalized costs include lease acquisition, geological and geophysical work, delay rentals, costs of drilling, completing and equipping the wells and any internal costs that are directly related to acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Proceeds from the sale or other disposition of oil and gas properties are generally treated as a reduction in the capitalized costs of oil and gas properties, unless the impact of such a reduction would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a country.

The Company categorizes its full cost pools as costs subject to amortization and costs not being amortized. The sum of net capitalized costs subject to amortization, including estimated future development and abandonment costs, are amortized using the unit-of-production method.

Oil and gas properties include costs that are excluded from capitalized costs being amortized. These amounts represent costs of investments in unproved properties. The Company excludes these costs on a country-by-country basis until proved reserves are found or until it is determined that the costs are impaired. All costs excluded are reviewed annually to determine if impairment has occurred. The amount of any impairment is transferred to the costs subject to amortization. The Company currently only owns unproved properties. As of June 30, 2015, management believes that there is no impairment for the Company’s unproved oil and gas properties.

Ceiling Test and Impairment

Under the full cost method of accounting, a ceiling test is performed each quarter for proved properties. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X. The ceiling test determines a limit, on a country-by-country basis, on the book value of oil and gas properties. The capitalized costs of proved oil and gas properties, net of accumulated depreciation, depletion, amortization and impairment(“DD&A”) and the related deferred income taxes, may not exceed the estimated future net cash flows from proved oil and gas reserves, calculated using the average oil and natural gas sales price received by the Company as of the first trading day of each month over the preceding twelve months (such prices are held constant throughout the life of the properties) with consideration of price change only to the extent provided by contractual arrangement, discounted at 10%, net of related tax effects. If capitalized costs exceed this limit, the excess is charged to expense and reflected as additional accumulated DD&A.  The Company has no proved properties subject to the full cost ceiling test as of June 30, 2015. 

Asset Retirement Obligations

Asset retirement obligations (“ARO”) represent the future abandonment costs of tangible assets such as platforms, wells, service assets, pipelines, and other facilities. The fair value of a liability for an asset's retirement obligation is recorded in the period in which it is incurred if a reasonable estimate of fair value can be made, and that the corresponding cost is capitalized as part of the carrying amount of the related long-lived asset. The liability is accreted to its then present value each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount, an adjustment is made to the full cost pool, with no gain or loss recognized, unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves. The ARO assets, which are carried on the balance sheet as part of the full cost pool, will be included in our amortization base for the purposes of calculating depreciation, depletion and amortization expense. For the purposes of calculating the ceiling test, the future cash outflows associated with settling the ARO liability is included in the computation of the discounted present value of estimated future net revenues. The liability is adjusted for any changes in the estimate of the liability and for the disposal of previously held oil and gas leases net of accretion expense.

Revenue Recognition

The Company generally sells crude oil and natural gas under short-term agreements at prevailing market prices. Revenues are recognized when the products are delivered, which occurs when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable, and collectability is reasonably assured.

Income Taxes

Deferred income taxes are provided on a liability method whereby deferred tax assets and liabilities are established for the difference between the financial reporting and income tax basis of assets and liabilities as well as operating loss and tax credit carry forwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carry-forwards are expected to be available to reduce taxable income. At June 30, 2015 and December 31, 2014 the Company has recorded a 100% valuation allowance as management has no assurance that deferred tax assets will be realized.

At June 30, 2015, the Company had net operating loss carry forwards of approximately $1 million that will expire between 2031 through 2034.

Net Loss Per Common Share

Basic net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average number of common and common equivalent shares outstanding during the period. Common share equivalents included in the diluted computation represent shares issuable upon assumed exercise of stock options and warrants using the treasury stock and “if converted” method. For periods in which net losses are incurred, weighted average shares outstanding is the same for basic and diluted loss per share calculations, as the inclusion of common share equivalents would have an anti-dilutive effect. As of June 30, 2015, there are no potentially dilutive shares. 

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at year-end and the reported amounts of revenues and expenses during the year and the reported amount of proved natural gas and oil reserves. Management bases its estimates on historical experience and various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments that are not readily apparent from other sources. Actual results could differ from these estimates and changes in these estimates are recorded when known.

Subsequent Events

The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration.

Reclassifications

Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.

Recently Issued Accounting Pronouncements

There were various accounting standards and interpretations issued during the six months ended June 30, 2015, none of which are expected to have a material impact on the Company’s financial position, operations, or cash flows.

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CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares	Jun. 30, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS PARENTHETICAL
Common stock par value	$ 0.00001	$ 0.00001
Common stock shares authorized	100,000,000	100,000,000
Common stock shares issued	6,450,315	6,467,065
Common stock shares outstanding	6,450,315	6,467,065

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Note 2 - Summary of Significant Accounting Policies: Asset Retirement Obligations (Policies)

6 Months Ended

Jun. 30, 2015

Policies

Asset Retirement Obligations

Asset Retirement Obligations

Asset retirement obligations (“ARO”) represent the future abandonment costs of tangible assets such as platforms, wells, service assets, pipelines, and other facilities. The fair value of a liability for an asset's retirement obligation is recorded in the period in which it is incurred if a reasonable estimate of fair value can be made, and that the corresponding cost is capitalized as part of the carrying amount of the related long-lived asset. The liability is accreted to its then present value each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount, an adjustment is made to the full cost pool, with no gain or loss recognized, unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves. The ARO assets, which are carried on the balance sheet as part of the full cost pool, will be included in our amortization base for the purposes of calculating depreciation, depletion and amortization expense. For the purposes of calculating the ceiling test, the future cash outflows associated with settling the ARO liability is included in the computation of the discounted present value of estimated future net revenues. The liability is adjusted for any changes in the estimate of the liability and for the disposal of previously held oil and gas leases net of accretion expense.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 31, 2015
Document and Entity Information:
Entity Registrant Name	NORTH TEXAS ENERGY, INC.
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Trading Symbol	ntex
Amendment Flag	false
Entity Central Index Key	0001514994
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		6,623,490
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Entity Incorporation, State Country Name	State of Nevada
Entity Incorporation, Date of Incorporation	Jan. 12, 2011

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Note 2 - Summary of Significant Accounting Policies: Revenue Recognition (Policies)

6 Months Ended

Jun. 30, 2015

Policies

Revenue Recognition

Revenue Recognition

The Company generally sells crude oil and natural gas under short-term agreements at prevailing market prices. Revenues are recognized when the products are delivered, which occurs when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable, and collectability is reasonably assured.

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue
Revenues	$ 3,507	$ 20,410	$ 10,925	$ 38,635
Operating expenses:
Lease operating expenses	70,342	17,090	75,473	29,387
Depletion and accretion		1,595		3,266
General and administrative expenses	79,496	50,441	137,390	85,294
Legal and professional fees	28,778	29,130	38,828	29,620
Total operating expenses	178,616	98,256	251,691	147,567
Net operating loss	(175,109)	(77,846)	(240,766)	(108,932)
Net loss	$ (175,109)	$ (77,846)	$ (240,766)	$ (108,932)
Basic and Diluted Loss Per Common Share	$ (0.03)	$ (0.01)	$ (0.04)	$ (0.02)
Weighted Average Number of Common Shares Outstanding - Basic and Diluted	6,535,810	6,231,265	6,512,000	6,218,624

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Note 7 - Subsequent Events

6 Months Ended

Jun. 30, 2015

Notes

Note 7 - Subsequent Events

Note 7 – Subsequent Events

Subsequent to June 30, 2015, the Company received $70,000 cash for the sale of 35,000 shares of its common stock and returned $5,000 cash to a former investor who returned 2,500 common shares to the Company for cancellation.

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Note 6 - Equity

6 Months Ended

Jun. 30, 2015

Notes

Note 6 - Equity

Note 6 – Equity

During the six months ended June 30, 2015, the Company issued 70,250 shares of common stock for $140,500 cash and 3,000 shares of common stock for geophysical data.

During the six months ended June 30, 2015, the Company received $101,350 for 50,675 shares of common stock that were issued subsequent to June 30, 2015.

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Note 2 - Summary of Significant Accounting Policies: Reclassifications (Policies)

6 Months Ended

Jun. 30, 2015

Policies

Reclassifications

Reclassifications

Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.

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Note 2 - Summary of Significant Accounting Policies: Income Taxes (Policies)

6 Months Ended

Jun. 30, 2015

Policies

Income Taxes

Income Taxes

Deferred income taxes are provided on a liability method whereby deferred tax assets and liabilities are established for the difference between the financial reporting and income tax basis of assets and liabilities as well as operating loss and tax credit carry forwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carry-forwards are expected to be available to reduce taxable income. At June 30, 2015 and December 31, 2014 the Company has recorded a 100% valuation allowance as management has no assurance that deferred tax assets will be realized.

At June 30, 2015, the Company had net operating loss carry forwards of approximately $1 million that will expire between 2031 through 2034.

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Note 2 - Summary of Significant Accounting Policies: Oil and Gas Properties (Policies)

6 Months Ended

Jun. 30, 2015

Policies

Oil and Gas Properties

Oil and Gas Properties

The Company uses the full cost method of accounting for exploration and development activities as defined by the SEC. Under this method of accounting, the costs for unsuccessful, as well as successful, exploration and development activities are capitalized as oil and gas properties. Capitalized costs include lease acquisition, geological and geophysical work, delay rentals, costs of drilling, completing and equipping the wells and any internal costs that are directly related to acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Proceeds from the sale or other disposition of oil and gas properties are generally treated as a reduction in the capitalized costs of oil and gas properties, unless the impact of such a reduction would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a country.

The Company categorizes its full cost pools as costs subject to amortization and costs not being amortized. The sum of net capitalized costs subject to amortization, including estimated future development and abandonment costs, are amortized using the unit-of-production method.

Oil and gas properties include costs that are excluded from capitalized costs being amortized. These amounts represent costs of investments in unproved properties. The Company excludes these costs on a country-by-country basis until proved reserves are found or until it is determined that the costs are impaired. All costs excluded are reviewed annually to determine if impairment has occurred. The amount of any impairment is transferred to the costs subject to amortization. The Company currently only owns unproved properties. As of June 30, 2015, management believes that there is no impairment for the Company’s unproved oil and gas properties.

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Note 2 - Summary of Significant Accounting Policies: Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2015

Policies

Basis of Presentation

Basis of Presentation

The accompanying unaudited interim consolidated financial statements of North Texas Energy, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual report on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein.  The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited consolidated financial statements for the most recent fiscal year ended December 31, 2014 have been omitted.

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Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)

6 Months Ended

Jun. 30, 2015

Policies

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash equivalents are highly liquid investments with an original maturity of three months or less.

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Note 2 - Summary of Significant Accounting Policies: Ceiling Test and Impairment (Policies)

6 Months Ended

Jun. 30, 2015

Policies

Ceiling Test and Impairment

Ceiling Test and Impairment

Under the full cost method of accounting, a ceiling test is performed each quarter for proved properties. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X. The ceiling test determines a limit, on a country-by-country basis, on the book value of oil and gas properties. The capitalized costs of proved oil and gas properties, net of accumulated depreciation, depletion, amortization and impairment(“DD&A”) and the related deferred income taxes, may not exceed the estimated future net cash flows from proved oil and gas reserves, calculated using the average oil and natural gas sales price received by the Company as of the first trading day of each month over the preceding twelve months (such prices are held constant throughout the life of the properties) with consideration of price change only to the extent provided by contractual arrangement, discounted at 10%, net of related tax effects. If capitalized costs exceed this limit, the excess is charged to expense and reflected as additional accumulated DD&A.  The Company has no proved properties subject to the full cost ceiling test as of June 30, 2015. 

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Note 2 - Summary of Significant Accounting Policies: Use of Accounting Estimates (Policies)

6 Months Ended

Jun. 30, 2015

Policies

Use of Accounting Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at year-end and the reported amounts of revenues and expenses during the year and the reported amount of proved natural gas and oil reserves. Management bases its estimates on historical experience and various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments that are not readily apparent from other sources. Actual results could differ from these estimates and changes in these estimates are recorded when known.

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Note 2 - Summary of Significant Accounting Policies: Income Taxes (Details) $ in Millions	Jun. 30, 2015 USD ($)
Details
Operating Loss Carryforwards	$ 1

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss	$ (240,766)	$ (108,932)
Adjustments to reconcile net loss to net cash from operating activities:
Depletion, and accretion expense		3,266
Stock issued for services	6,000
Changes in operating assets and liabilities:
Change in Accounts receivable	5,369	(3,065)
Change in Inventory		1,013
Change in Accounts payable and accrued liabilities	44,278	(16,074)
Net cash used in operating activities	(185,119)	(123,792)
Cash flows from investing activities:
Payments for proved oil and gas properties	(98,645)	(182,883)
Net cash used in investing activities	(98,645)	(182,883)
Cash flows from financing activities:
Proceeds from sales of common stock	241,850	308,000
Net cash provided by financing activities	241,850	308,000
Net increase (decrease) in cash	(41,914)	1,325
Cash at beginning of period	92,426	50,924
Cash at end of period	$ 50,512	$ 52,249
Supplemental cash flows information:
Cash paid for interest
Cash paid for income taxes
Noncash investing and financing activities:
Asset retirement obligations	$ 44,282	$ (19,984)

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Note 5 - Accrued Lease Liabilities

6 Months Ended

Jun. 30, 2015

Notes

Note 5 - Accrued Lease Liabilities

Note 5 – Accrued Lease Liabilities

The Company has an accrued lease liability to KADs Oil, Inc., the lessor of the leases in Milam County, Texas which the Company currently owns. As a result of the Purchase and Sale Agreement with Remington, the Company assumed the leasehold obligation of $50,000. Payments are to be made when oil and gas is recovered and delivered to market at the rate of 25% of the sale price after all operating expenses.

On May 10, 2011, the Company entered into an oil, gas and mineral lease agreement for its oil and gas properties located in Milam County, Texas. Pursuant to the lease agreement, the Company will pay the lessor $15,881 for the lease which is recorded as an accrued leasehold liability on the Company’s balance sheets at June 30, 2015 and December 31, 2014.

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Note 4 - Oil and Gas Properties (Details)	6 Months Ended
	Jun. 30, 2015 USD ($)
Details
Exploration and Production Costs	$ 98,645

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Note 2 - Summary of Significant Accounting Policies: Basic and Diluted Net Loss Per Share (Policies)

6 Months Ended

Jun. 30, 2015

Policies

Basic and Diluted Net Loss Per Share

Net Loss Per Common Share

Basic net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average number of common and common equivalent shares outstanding during the period. Common share equivalents included in the diluted computation represent shares issuable upon assumed exercise of stock options and warrants using the treasury stock and “if converted” method. For periods in which net losses are incurred, weighted average shares outstanding is the same for basic and diluted loss per share calculations, as the inclusion of common share equivalents would have an anti-dilutive effect. As of June 30, 2015, there are no potentially dilutive shares.