XML 50 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Cash Flows from Operating Activities:    
Net income (loss) $ (494,055) $ 495,266
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation, depletion and amortization expense 977,864 341,033
Accretion of discount on asset retirement obligations 35,621 14,064
Gain on sale of oil and gas properties (533,048) (2,479,934)
Common stock issued in exchange for services 246,942 1,235,973
Common stock issued in exchange for accrued interest 10,462  
Gain on extinguishment of debt   (111,690)
Changes in operating assets and liabilities:    
Accounts receivable 23,079 (183,979)
Prepaid expenses and other 152,986 (122,199)
Accounts payable (15,096) 59,397
Accrued costs and expenses (49,867) (2,175)
Net cash provided by (used in) operating activities 354,888 (754,244)
Cash Flows from Investing Activities:    
Capital expenditures for property and equipment (935,322) (1,131,670)
Proceeds from sale of oil and gas properties 1,108,709  
Contingent consideration paid to DNR under sharing arrangement (282,704)  
Net cash used in investing activities (109,317) (1,131,670)
Cash Flows from Financing Activities:    
Proceeds from notes and advance payable 825,000 2,064,100
Principal payments on notes payable (432,010) (5,306,481)
Payment of dividends on preferred stock (783,750)  
Proceeds from sale of common stock   203,500
Proceeds from sale of preferred stock   5,225,000
Payment of preferred stock offering costs (67,456) (96,629)
Net cash provided by (used in) financing activities (458,216) 2,089,490
Net increase (decrease) in cash and equivalents (212,645) 203,576
Cash and equivalents, beginning of year 219,566 15,990
Cash and equivalents, end of year 6,921 219,566
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 122,633 319,246
Cash paid for income taxes      
Supplemental Disclosure of Non-cash Investing and Financing Activities:    
Conversion of notes payable to 897,500 shares of common stock   1,335,000
Note payable for acquisition of oil and gas properties   10,100,000
Proceeds from sale of Separate Interests applied to note payable   5,101,047
Pre-acquisition oil and gas sales applied to note payable   766,728
Contingent payable for acquisition of oil and gas properties 250,000 826,791
Asset retirement obligations incurred upon acquisition of oil and gas properties   639,176
Asset retirement obligations assumed upon sale of oil and gas properties 16,411  
Increase in oil and gas properties due to revision of asset retirement obligations $ 55,825