GOING CONCERN	3 Months Ended
Mar. 31, 2017
GOING CONCERN
GOING CONCERN	NOTE 4—GOING CONCERN Pursuant to the FASB ASU 2014-15, the Company has assessed its ability to continue as a going concern for a period of one year from the date of the issuance of these financial statements. Substantial doubt about an entity's ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year from the financial statement issuance date. As shown in the accompanying financial statements, the Company incurred a net loss of $2.1 million during the three months ended March 31, 2017, and as of that date, the Company's current liabilities exceeded its current assets by $6.9 million. At March 31, 2017, the Company had a cash balance of approximately $4.9 million and other current assets of approximately $3.2 million. Subsequent to March 31, 2017, the Company's cash balance has decreased as it has paid certain acquisition and development costs, including costs previously accrued, and general and administrative expenses. In June 2017, the Company is obligated to repay approximately $3.6 million in principal and approximately $250,000 in accrued interest to satisfy the terms of its supplemental line of credit, an approximately $500,000 accrued interest payment on the Company's initial line of credit, and an approximately $500,000 accrued interest payment on the Company's outstanding convertible promissory notes (Note 7). The Company also will incur additional expenses related to its operated drilling program during the second and third quarters of this year. As of March 31, 2017, the Company has insufficient working capital and revenues from operations to meet its debt obligations and other liabilities incurred in connection with the Company's development activities. The Company will need to generate sufficient cash flow from operations and sell equity or debt to fund further operations and acquisitions. If sufficient cash flow and additional financing is not available, the Company may be compelled to reduce the scope of its business activities, reduce general and administrative expenses and/or sell a portion of the Company's interests in its oil and gas properties. This, in turn, may have an adverse effect on its ability to realize the values of its assets. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's financial statements do not include any adjustments related to the realization of the carrying value of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. The Company's ability to continue as a going concern is dependent upon its ability to obtain additional financing. Management believes that it can be successful in obtaining equity and/or debt financing which will enable the Company to continue as a going concern.

NOTE 4—GOING CONCERN

Pursuant to the FASB ASU 2014-15, the Company has assessed its ability to continue as a going concern for a period of one year from the date of the issuance of these financial statements. Substantial doubt about an entity's ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year from the financial statement issuance date. As shown in the accompanying financial statements, the Company incurred a net loss of $2.1 million during the three months ended March 31, 2017, and as of that date, the Company's current liabilities exceeded its current assets by $6.9 million.

At March 31, 2017, the Company had a cash balance of approximately $4.9 million and other current assets of approximately $3.2 million. Subsequent to March 31, 2017, the Company's cash balance has decreased as it has paid certain acquisition and development costs, including costs previously accrued, and general and administrative expenses. In June 2017, the Company is obligated to repay approximately $3.6 million in principal and approximately $250,000 in accrued interest to satisfy the terms of its supplemental line of credit, an approximately $500,000 accrued interest payment on the Company's initial line of credit, and an approximately $500,000 accrued interest payment on the Company's outstanding convertible promissory notes (Note 7). The Company also will incur additional expenses related to its operated drilling program during the second and third quarters of this year.

As of March 31, 2017, the Company has insufficient working capital and revenues from operations to meet its debt obligations and other liabilities incurred in connection with the Company's development activities. The Company will need to generate sufficient cash flow from operations and sell equity or debt to fund further operations and acquisitions. If sufficient cash flow and additional financing is not available, the Company may be compelled to reduce the scope of its business activities, reduce general and administrative expenses and/or sell a portion of the Company's interests in its oil and gas properties. This, in turn, may have an adverse effect on its ability to realize the values of its assets. These factors raise substantial doubt about the Company's ability to continue as a going concern.

The Company's financial statements do not include any adjustments related to the realization of the carrying value of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. The Company's ability to continue as a going concern is dependent upon its ability to obtain additional financing. Management believes that it can be successful in obtaining equity and/or debt financing which will enable the Company to continue as a going concern.