SUBSEQUENT EVENT (UNAUDITED)

12 Months Ended

Dec. 31, 2013

SUBSEQUENT EVENT (UNAUDITED) [Abstract]

SUBSEQUENT EVENT (UNAUDITED)

13. SUBSEQUENT EVENT (UNAUDITED)

Subsequent to December 31, 2013, the Company participated in a successful development well in the Taylor Serbin field, for which the net cost was approximately $1,000,000. We drew $500,000 from our line of credit to finance approximately half of the costs of this well. Production on the well began in late January 2014.

As of February 1, 2014, the Company no longer rents office space from the estate of our former President, Ray Reaves. On January 24, 2014, the Company entered into a two year lease for office space in Austin, Texas, for approximately $3,000 per month.

In January 2014, the Company entered into a consulting agreement with a relative of a Board member for petroleum engineering services related to our oil and natural gas properties. Services rendered under this agreement were $28,000 in January to March, 2014.

On January 1, 2014 FieldPoint Petroleum Corp. ("FieldPoint") signed an exploration agreement ("the agreement") with Riley Exploration, LLC ("Riley").  The agreement provides for an Area of Mutual Interest ("AMI") and a 90 day due diligence period, after which both Companies will cross assign their working interest and vertical wells with a targeted ownership for FieldPoint of 25%.  The agreement also provides for a development plan with the intent to drill up to twelve horizontal wells during the initial twelve month period after closing.  FieldPoint may elect to be the drilling operator of every fifth well.  The agreement also provides for a standard Joint Operating Agreement which allows either partner to participate or decline to participate in every well with no obligatory wells.