RESTATEMENT OF OPERATIONS

9 Months Ended

Sep. 30, 2013

RESTATEMENT OF OPERATIONS [Abstract]

RESTATEMENT OF OPERATIONS

NOTE 14 - RESTATEMENT OF OPERATIONS

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Subsequent to the issuance of the Company's unaudited  financial  statements for

the quarter ended September 30, 2013 and as a result of review by the Securities

and  Exchange   Commission   (SEC)  staff  in  connection   with  the  Company's

Registration  on Form 10-12G and its  Registration  Statement  on Form S-1,  the

Company  determined  that it would  restate  its  financial  statements  for the

quarter ended September 30, 2013.

The  aforementioned  Five Jab oil and gas  properties  that were acquired by the

Company  effective June 30, 2013 and September 1, 2013 were determined to be the

oil and gas  operations  of the  Company's  predecessor  prior  to the  date the

Company  effectively  acquired such properties.  As a result,  it was determined

that the  unaudited  financial  statements at September 30, 2013 and the periods

presented  should  include  not only the  accounts  of the  Company but also the

accounts of the Five Jab oil and gas operations.

The Five Jab oil and gas  operations  are owned  separately  by various  working

interest  owners and,  therefore are taxed as a disregard  entity for income tax

purposes and as such each of the owners report  separately  their pro rata share

of income,  deductions and losses.  Therefore,  no provision for income taxes is

made in the accompanying financial statements.  In addition, the accounts of the

Five Jab oil and gas  operations are comprised of revenues and expenses from oil

and gas activity and the related distributions to the working interest owners of

such net cash flow from the oil and gas operations.

As a result,  the Company as reported below in detail,  has  understated its oil

and gas sales and its  operating  expenses and  overstated  its net loss for the

three  months  ended  September  30, 2013 and 2012 and for the nine months ended

September  30,  2013 and for the  period  March  28,  2012  (inception)  through

September  30, 2012.  There was no effect at September 30, 2013 on the Company's

total assets, total liabilities, deficit or equity.

                    SEPTEMBER 30, 2013 DETAILS OF RESTATED FINANCIAL STATEMENTS

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                                       At September 30, 2013

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                                                                 Previously

                                               Restated           Reported           Change

                                           -------------------------------------------------------

Total assets                                       7,655,915          7,655,915                 -

Total liabilities                                  4,848,206          4,848,206                 -

Accumulated deficit                                2,099,834          2,099,834                 -

Total equity                                       2,807,709          2,807,709                 -

                              For The Three Months Ended September 30,

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                   2013

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Total revenues                                       629,762            282,058           347,704

Total operating expenses                             841,518            666,909           174,609

Net loss                                            (215,592)          (388,687)          173,095

Net loss per common share

  basic and diluted                                    (0.02)             (0.03)             0.01

                   2012

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Total revenues                                       102,537                  -           102,537

Total operating expenses                             386,061            220,063           165,998

Net loss                                            (283,524)          (220,063)          (63,461)

Net loss per common share

  basic and diluted                                    (0.04)             (0.03)            (0.01)

                            For the Nine Months Ended September 30, 2013

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Total revenues                                     2,010,134            346,058         1,664,076

Total operating expenses                           2,399,051          1,612,260           786,791

Net loss from continuing

  operations                                        (368,740)        (1,246,025)          877,285

Income from discontinued

  operations                                         127,478            127,478                 -

Net loss                                            (241,262)        (1,118,547)          877,285

Net loss from continuing

  operations                                           (0.03)             (0.11)             0.08

Net loss per common share

  basic and diluted                                    (0.02)             (0.10)             0.08

Net cash provided by (used in)

  operating activities                                77,453           (880,912)          958,365

Net cash (used in) investing

  activities                                      (1,382,436)        (1,382,436)                -

Net cash provided by

  financing activities                             2,845,433          3,803,798          (958,365)

                For the Period March 28, 2012 (inception) through September 30, 2012

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Total revenues                                       524,881                  -           524,881

Total operating expenses                             825,679            491,311           334,368

Net loss from continuing

  operations                                        (300,798)          (491,311)          190,513

Net loss from discontinued

  operations                                               -                  -                 -

Net loss                                            (300,798)          (491,311)          190,513

Net loss per common share

  basic and diluted                                    (0.04)             (0.06)             0.02

Net cash (used in) operating

  activities                                        (206,112)          (446,585)          240,473

Net cash (used in) investing

  activities                                        (351,738)          (351,738)                -

Net cash provided by

  financing activities                             1,033,790          1,274,263          (240,473)