Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($)
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (1,068,294) $ (3,018,956)
Adjustments to reconcile net loss to net cash used in operating activities    
Amortization of debt discount and financing warrants 20,412 20,412
Accretion of asset retirement obligations 1,597 3,828
Depletion, depreciation, and amortization 74,689 247,186
Gain on settlement and sale of oil and gas properties (64,824) 0
Impairment of oil and natural gas properties 0 306,387
Stock based compensation 57,409 47,239
Stock grants in exchange for services 0 143,505
Change in operating assets and liabilities    
Accounts receivable (20,274) 6,966
Accounts receivable - affiliate (2,641) (1,865)
Prepaid expense 3,492 14,585
Accounts payable 15,599 220,016
Accrued liabilities - related parties 215,683 96,226
Accrued liabilities (140,319) 267,320
Net cash used in operating activities (907,471) (1,647,151)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Lease purchases, drilling capital expenditures (18,442) (517,776)
Proceeds from the sale of assets 8,294 0
Net cash used in investing activities (10,148) (517,776)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Non-controlling interest contributions 972,000 2,175,000
Principal payments of debt financing 0 (10,000)
Net cash provided by financing activities 972,000 2,165,000
Net Change in Cash and Cash Equivalents 54,381 73
Beginning Cash and Cash Equivalents 2,384 2,941
Ending Cash and Cash Equivalents 56,765 3,014
Cash paid for:    
Interest 22,412 20,525
Non-cash investing and financing activities:    
Asset retirement obligation 0 2,506
Accrued capital expenditures $ 305,983 $ 663,896