CONSOLIDATED STATEMENT OF CASH FLOW (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
CASH FLOW FROM OPERATING ACTIVITIES
Net income (loss)	$ (2,664,241)	$ 18,258
Adjustment to reconcile net income (loss) from operations to net cash used in operating activities
Amortization of debt discount and financing warrents	468,936
Debentures converted to common stock	902,908
Depletion	40,179	74,949
Depreciation	591
Gain on settlement with former officer		(404,623)
Stock based compensation	87,750
Tax benefit of debenture discount	(466,703)
Warrants for services	130,200	8,640
Change in working capital
Accounts receivable	(13,561)	29,323
Accounts receivable - related party	(26,333)
Prepaid expense	17,396	35,016
Accounts payable	(101,909)	146,848
Accounts payable - related party	(130,289)
Accrued liabilities	141,298	(5,144)
Net cash used in operating activities	(1,613,778)	(96,733)
CASH FLOWS FROM INVESTING ACTIVITIES
Drilled wells	(417,567)
Purchase of wells	(8,329)
Net cash used in investing activities	(425,896)
CASH FLOWS FROM FINANCING ACTIVITIES
Sale of debentures	2,270,000
Bank line of credit - net repayments	(68,667)	(18,305)
Proceeds from notes payable to related parties		162,000
Payments on notes payable to related party	(50,000)
Net cash provided by financing activities	2,151,333	143,695
Net change in cash and cash equivalents	111,659	46,962
Beginning cash and cash equivalents	111,572	22,076
Ending cash and cash equivalents	223,231	69,038
Supplemental schedule of non-cash investing and financing activities:
Preferred stock converted to common stock	53,490
Debentures exchanged for common stock	1,112,500
Common stock exchanged for accrued interest	37,940
Deferred tax liability	305,352
Cash paid during the period for
Interest	19,872
Income taxes