NOTE 5: OIL AND GAS PROPERTY ACTIVITY

12 Months Ended

Mar. 31, 2012

Notes to Financial Statements

NOTE 5: OIL AND GAS PROPERTY ACTIVITY

NOTE 4: OIL AND GAS PROPERTY ACTIVITY

The table below shows the Company’s working interests in the Grace Wells as of March 31, 2012 and 2011:

Well	March 31, 2011 Working Interest			Additional Acquisition		March 31, 2012 Working Interest
Grace #1		65.25	%	0	%	65.25	%
Grace #2		55.75	%	0	%	55.75	%
Grace #3		64.00	%	0	%	64.00	%
Grace #5A		52.00	%	0	%	52.00	%
Grace #6		58.00	%	0	%	58.00	%

The Company has reached an agreement to purchase a 13.50% working interest in the Grace # 1, a 22.50% working interest in the Grace # 2, a 14.50% working interest in the Grace # 3 and an 11.50% working interest in the Grace # 5A, and a 21.50% working interest in the Grace #6, for $43,837, from 17 working interest owners. We closed this purchase in January 2011.  

We also purchased a 5.75% working interest in the Grace # 1, a 6.25% working interest in the Grace # 2, an 8.5% working interest in the Grace # 3, a 4.50% working interest in the Grace # 5A and a 3.50% working interest in the Grace # 6, during the year ended March 31, 2011 by issuing 294,000 shares of common stock to two (2) working interest owners.

Producing oil and gas properties consist of the following:

	March 31, 2012			March 31, 2011
Lincoln County, Oklahoma	$	67,565		$	67,565
Other properties, net		1,049,514			1,049,514
Asset retirement obligation		46,364			49,260
Property impairments		(481,072	)		(481,072	)
Less: Depletion		(474,090	)		(453,547	)
Net	$	208,281		$	231,720