Oil and natural gas properties

9 Months Ended

Sep. 30, 2011

Oil and natural gas properties

Note 3 – Oil and natural gas properties

Oil and natural gas properties are comprised of the following as of:

	September 30,			December 31,
	2011			2010
Option on oil and gas property	$	25,000		$	25,000
Drilling in process costs		417,567			-
Proved property – drilled wells		1,753,026			1,753,026
Proved property – purchased wells		3,015,322			3,015,322
Total oil and natural gas properties, cost		5,210,915			4,793,348
Less: accumulated depletion and impairment		(4,294,798	)		(4,254,619	)
Oil and natural gas properties, net	$	916,117		$	538,729

Drilling in process costs for the nine months ended September 30, 2011 reflects the acquisition costs and our share of the operating and drilling costs for our respective working interest in the Jones County, Texas, and Atwood (Booch) prospect in Hughes County, Oklahoma operated by CO Energy, a working interest in the Bootleg Canyon (formerly Tunis Creek) prospect operated by V-F Petroleum Inc., and a working interest in the Alwan West natural gas prospect in Wharton County, Texas operated by Miramar Petroleum, Inc.