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SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Policies)
 3 Months Ended
Oct. 31, 2012
Accounting Policies [Abstract]  
BASIS OF ACCOUNTING

BASIS OF ACCOUNTING

The accompanying financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America and are presented in U.S. dollars.  The Company is currently an exploration stage enterprise.  An exploration stage enterprise is one  in which  planned  principal  operations  have  not  commenced  or if  its operations  have commenced,  there has been no significant  revenues there from. All losses accumulated since the inception of the business have been considered as part of its exploration stage activities.
USE OF ESTIMATES

USE OF ESTIMATES

The preparation of financial  statements in conformity  with generally  accepted accounting principles of the United States requires management to make estimates and assumptions  that affect the reported  amounts of assets and liabilities and disclosure of  contingent  assets and  liabilities  at the date of the financial statements  and the reported  amounts of revenues and expenses  during the year. The  more  significant  areas  requiring  the  use of  estimates  include  asset impairment,  stock-based compensation, and future income tax amounts. Management bases its estimates on historical experience and on other assumptions considered to be reasonable under the circumstances.  However, actual results may differ from the estimates.
CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS

Cash  and cash  equivalents  include  cash in hand  and  cash in time  deposits, certificates  of deposit and all highly  liquid debt  instruments  with original maturities of three months or less.  The Company had $1,225 of cash at October 31, 2012.
FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company's financial instruments consist of cash, accounts payable and accrued expenses, and an amount due to a related party. The carrying amounts of these financial instruments approximate fair value due either to length of maturity or interest rates that approximate prevailing rates unless otherwise disclosed in these financial statements.
REVENUE RECOGNITION

REVENUE RECOGNITION

The Company has yet to realize revenues from operations and is still in the exploration stage. The Company will recognize revenue when delivery of goods or completion of services has occurred provided there is persuasive  evidence of an agreement,  acceptance has been approved by its  customers,  the fee is fixed or determinable  based on the  completion  of  stated  terms  and  conditions,  and collection of any related receivable is reasonably assured.
OIL AND GAS PROPERTIES

OIL AND GAS PROPERTIES

The Company uses the full cost method of accounting for oil and natural gas properties.  Under this method, all acquisition, exploration and development costs, including certain payroll, asset retirement costs, other internal costs, and interest incurred for the purpose of finding oil and natural gas reserves, are capitalized.  Internal costs that are capitalized are directly attributable to acquisition, exploration and development activities and do not include costs related to production, general corporate overhead or similar activities.  Costs associated with production and general corporate activities are expensed in the period incurred.  Proceeds from the sale of oil and natural gas properties are applied to reduce the capitalized costs of oil and natural gas properties unless the sale would significantly alter the relationship between capitalized costs and proved reserves, in which case a gain or loss is recognized.

 

Capitalized  costs  associated with impaired  properties and  capitalized  costs related  to  properties  having  proved  reserves,  plus  the  estimated  future development  costs, and asset  retirement costs under ASC 410 "Asset  Retirement and  Environmental  Obligations",  are  amortized  using the  unit-of-production method  based on  proved  reserves.  Capitalized costs of oil and natural gas properties, net of accumulated amortization and deferred income taxes, are

limited to the total of  estimated  future  net cash  flows from  proved oil and natural gas reserves,  discounted at ten percent,  plus the cost of  unevaluated properties.

 

There  are  many  factors,  including  global  events  that  may  influence  the production,  processing, marketing and price of oil and natural gas. A reduction in the valuation of oil and natural gas properties resulting from declining prices or production could adversely impact depletion rates and capitalized cost limitations.  Capitalized  costs  associated  with properties that have not been evaluated   through   drilling  or  seismic   analysis  are  excluded  from  the unit-of-production  amortization.  Exclusions are adjusted annually based on drilling results and interpretative analysis.

 

Sales of oil and natural gas  properties are accounted for as adjustments to the net full cost pool with no gain or loss recognized,  unless the adjustment would significantly  alter the  relationship  between  capitalized  costs  and  proved reserves.  If it is determined that the relationship is  significantly  altered, the  corresponding  gain  or  loss  will  be  recognized  in the  statements  of operations.

 

Costs of oil and gas  properties  are  amortized  using the units of  production method.

 

CEILING TEST:  Under the full cost method of  accounting,  the net book value of oil and gas properties,  less related  deferred  income taxes,  may not exceed a calculated  "ceiling".  The ceiling limitation is the estimated after-tax future

net cash flows from proved oil and gas  reserves,  discounted  at 10 percent per annum and adjusted for cash flow hedges. Estimated future net cash flows exclude future  cash  outflows   associated  with  settling   accrued  asset  retirement obligations.  The Company has adopted U.S.  Securities  and Exchange  Commission ("SEC") Release 33-8995 and the amendments to ASC 932, "Extractive  Industries - Oil and Gas" (the Modernization Rules). Under the Modernization Rules, estimated future net cash flows are calculated using end-of-period costs and an unweighted arithmetic average of commodity prices in effect on the first day of each of the previous 12 months,  held flat for the life of  production,  except where prices are defined by contractual arrangements.

 

Any excess of the net book value of proved oil and gas properties,  less related deferred  income taxes,  over the ceiling is charged to expense and reflected as additional  depletion,  depreciation  and  amortization  expense ("DD&A") in the accompanying statement of operations.  Such limitations are tested quarterly. As of October 31, 2012,  capitalized costs did not exceed the ceiling limitation,  and no write-down was indicated.
STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

The Company  accounts for employee  stock-based  compensation in accordance with the  guidance of FASB ASC Topic 718,  COMPENSATION  - STOCK  COMPENSATION  which requires all  share-based  payments to employees,  including  grants of employee stock options, to be recognized in the financial  statements based on their fair

values.  The  fair  value  of the  equity  instrument  is  charged  directly  to compensation  expense and credited to additional paid-in capital over the period during which services are rendered.  There has been no stock-based  compensation issued to employees.

 

The Company  follows ASC Topic  505-50,  formerly  EITF 96-18,  "ACCOUNTING  FOR EQUITY INSTRUMENTS THAT ARE ISSUED TO OTHER THAN EMPLOYEES FOR ACQUIRING,  OR IN CONJUNCTION  WITH SELLING  GOODS AND  SERVICES,"  for stock options and warrants issued to  consultants  and other  non-employees.  In accordance  with ASC Topic 505-50,  these stock options and warrants  issued as  compensation  for services provided  to the  Company  are  accounted  for based  upon the fair value of the services  provided or the estimated  fair market value of the option or warrant, whichever  can be  more  clearly  determined.  There  has  been  no  stock-based compensation issued to non-employees.
INCOME TAXES

INCOME TAXES

The Company  provides  for income taxes using an asset and  liability  approach. Deferred  tax assets  and  liabilities  are  recorded  based on the  differences between the financial  statement and tax bases of assets and liabilities and the tax rates in effect  currently.  Deferred  tax assets are reduced by a valuation allowance if, based on the weight of available evidence,  it is more likely than not  that  some or all of the  deferred  tax  assets  will not be  realized.  No provision for income taxes is included in the  statement  due to its  immaterial amount, net of the allowance account,  based on the likelihood of the Company to utilize the loss carry-forward.
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE

Basic income  (loss) per share is  calculated by dividing the Company's net loss applicable  to common  shareholders  by the  weighted  average  number of common shares during the period.  Diluted  earnings per share is calculated by dividing the  Company's  net  income  available  to common  shareholders  by the  diluted weighted  average  number of shares  outstanding  during the year.  The  diluted weighted  average number of shares  outstanding is the basic weighted  number of shares adjusted for any potentially  dilutive debt or equity.  There are no such common stock equivalents outstanding as of October 31, 2012.
RECENT ACCOUNTING PRONOUNCEMENTS

RECENT ACCOUNTING PRONOUNCEMENTS

The  Company  does  not  expect  the  adoption  of  recently  issued  accounting pronouncements  to  have a  significant  impact  on  the  Company's  results  of operations, financial position or cash flow.