NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES

6 Months Ended

Jun. 30, 2011

Oil and Gas Exploration and Production Industries Disclosures [Text Block]

NOTE 3  – OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES

Oil and gas properties, equipment and fixtures consist of the following:

	June 30, 2011			December 31, 2010
Oil and Gas
Producing properties, including drilling costs	$	26,442,399		$	25,637,549
Undeveloped properties		619,168			512,573
Lease and well equipment		9,943,437			9,750,303
		37,005,004			35,900,425
Accumulated depletion, depreciation & amortization		(26,454,638	)		(26,333,243	)
		10,550,366			9,567,182
Commercial and Other
Real estate, including furniture and fixtures	$	502,344		$	502,344
Vehicles		151,669			158,250
Furniture and equipment		1,303,992			1,285,744
		1,958,005			1,946,338
Accumulated depreciation		(1,266,925	)		(1,255,280	)
		691,080			691,058
	$	11,241,446		$	10,258,240

The guidance set forth in the Continued Capitalization of Exploratory Well Costs paragraph of the Extractive Activities Topic of the FASB Accounting Standards Codification (ASC) requires that we evaluate all existing capitalized exploratory well costs and disclose the extent to which any such capitalized costs have become impaired and are expensed or reclassified during a fiscal period. We did not make any additions to capitalized exploratory well costs pending a determination of proved reserves during 2011 or 2010.

	Six Months ended June 30,
	2011			2010
Beginning balance at January 1	$	0		$	0
Additions to capitalized exploratory well costs pending the      determination of proved reserves		0			433,220
Reclassifications to wells, facilities, and equipment based on      the determination of proved reserves		(0	)		(433,220	)
Ending balance at June 30	$	0		$	0