OIL AND GAS PROPERTIES

12 Months Ended

Dec. 31, 2013

Extractive Industries [Abstract]

OIL AND GAS PROPERTIES

NOTE 4 - OIL AND GAS PROPERTIES

Total additions for oil and gas properties for the year ended December 31, 2013 and 2012 were $29,708,602 and $25,080,332, respectively. Depreciation, depletion, and amortization expenses on oil and gas properties were $5,664,047 and $3,563,599 for the years ended December 31, 2013 and 2012, respectively. For 2012, the Company recorded an impairment of $10,132,702 to write down oil and gas properties related to its shallow wells to its fair market value of approximately $2,625,000 of net cash proceeds. As noted below, the shallow wells met the requirements to be classified as assets held for sale as of December 31, 2012; therefore, $22,107,091 of cost and $19,385,400 of accumulated depletion was reclassified to the Other Asset section of the Balance Sheet (see note 6).