Nevada
|
Optional
|
(Jurisdiction
of Incorporation)
|
(I.R.S.
Employer Identification No.)
|
604-700
West Pender Street Vancouver Canada
|
V6G
1G8
|
(Address
of principal executive offices)
|
(Zip
Code)
|
3
|
|
3
|
|
3
|
|
3
|
|
3
|
|
4
|
|
4
|
|
4
|
|
4
|
|
4
|
|
4
|
|
5
|
|
5
|
|
5
|
|
5
|
|
5
|
|
7
|
|
7
|
|
8
|
|
9
|
|
9
|
|
9
|
|
10
|
|
11
|
|
12
|
|
12
|
|
12
|
Current
Year Issuances
|
Valued
at
|
Shares
|
|||||
Carried
from 12/31/05
|
55,535,970
|
||||||
Issue
4/01/07: Registered for services
|
$
|
750,000
|
3,000,000
|
||||
Total
Issued and Outstanding 12/31/05
|
$
|
750,000
|
58,535,970
|
PERIOD
|
HIGH
BID
|
LOW
BID
|
VOLUME
|
|||
1st
2004
|
0.58
|
0.24
|
41,233,640
|
|||
2nd
2004
|
0.33
|
0.10
|
12,618,360
|
|||
Reverse
Split: Ten shares to One Share
|
||||||
3rd
2004
|
0.18
|
0.12
|
4,784,580
|
|||
4th
2004
|
0.34
|
0.12
|
22,427,460
|
|||
1st
2005
|
0.38
|
0.21
|
59,337,300
|
|||
2nd
2005
|
0.29
|
0.12
|
15,100,140
|
|||
3rd
2005
|
0.19
|
0.12
|
11,437,060
|
|||
4th
2005
|
0.14
|
0.06
|
10,552,140
|
|||
1st
2006
|
0.23
|
0.06
|
13,434,000
|
|||
2nd
2006
|
0.22
|
0.03
|
7,754,000
|
|||
3rd
2006
|
0.14
|
0.07
|
6,864,000
|
|||
4th
2006
|
0.11
|
0.07
|
9,134,000
|
1)
|
In
the spacing unit for the Earning Well, a 1.500% interest in the
petroleum
and natural gas below the base of the Mannville excluding natural
gas in
the Leduc formation, and a 3.00% interest in the natural gas in
the Leduc
formation before payout subject to payment of an Overriding Royalty
which
is convertible upon payout at the Royalty Owners option to 50%
of our
interest.
|
2)
|
A
1.200% interest in the rights below the base line of the Shunda
formation
in Section 10,Township 38, Range
9W5M
|
3)
|
A
0.966% interest in the rights below the base of the Shunda formation
in
sections 15 & 16,Township 38,Range 9W5M, down to the base of the
deepest formation penetrated.
|
Long
Term Compensation
|
||||||||||||||||
Annual
Compensation
|
Awards
|
Payouts
|
||||||||||||||
a
|
b
|
c
|
d
|
e
|
f
|
g
|
h
|
i
|
||||||||
Name
and
Principal
Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Other
Annual
Compen-sation
($)
|
Restric-ted
Stock
Awards
($)
|
Securi-ties
Under-
lying
Options
SARs
(#)
|
LTIP
Payouts
($)
|
All
Other
Compen-sation
($)
|
||||||||
CHISTOPER
PATON-GAY,
Chairman,
CEO
|
2006
|
0
|
0
|
0
|
0
|
0
|
0
|
660.0000
|
||||||||
2005
|
0
|
0
|
0
|
0
|
0
|
0
|
180,500
|
|||||||||
2004
|
0
|
0
|
0
|
0
|
0
|
277,000
|
||||||||||
KULWANT
SANDHER
Treasurer,
CFO
|
2006
|
0
|
0
|
0
|
0
|
0
|
0
|
72,000
|
||||||||
2005
|
0
|
0
|
0
|
0
|
0
|
0
|
116,000
|
|||||||||
2004
|
0
|
0
|
0
|
0
|
0
|
0
|
97,500
|
|||||||||
DONALD
JACKSON WELLS,
Director
|
2006
|
0
|
0
|
0
|
0
|
0
|
0
|
23,750
|
||||||||
2005
|
0
|
0
|
0
|
0
|
0
|
0
|
29,750
|
|||||||||
2004
|
0
|
0
|
0
|
0
|
0
|
0
|
37,000
|
|||||||||
JOSEPH
A. KANE
Director
|
2006
|
0
|
0
|
0
|
0
|
0
|
0
|
23,750
|
||||||||
2005
|
0
|
0
|
0
|
0
|
0
|
0
|
29,750
|
|||||||||
2004
|
0
|
0
|
0
|
0
|
0
|
0
|
37,000
|
NAME
AND ADDRESS OF BENEFICIAL OWNER
|
SHARE
OWNERSHIP
|
%
|
||||||||
Christopher
Paton-Gay
6160
Genoa Bay Road
Duncan
B.C. Canada
|
Chairman/CEO
Director
|
2,285,000
|
3.90
|
|||||||
Kulwant
Sander
6160
Genoa Bay Road
Duncan
B.C. Canada
|
Treasurer/CFO
|
1,252,395
|
2.14
|
|||||||
Donald
Jackson Wells
3131
S.W. Freeway #46
Houston
TX 77098
|
Director
|
75,800
|
0.13
|
|||||||
Joseph
Kane
3131
S.W. Freeway #46
Houston
TX 77098
|
Director
|
75,800
|
0.13
|
|||||||
All
Officers and Directors as a Group
|
3,688,995
|
6.30
|
||||||||
Total
Issued and Outstanding
|
58,535,970
|
100.00
|
||||||||
All
Affiliates
|
(3,688,995
|
)
|
(6.30
|
)
|
||||||
Indicated
Total Non-Affiliate Ownership
|
54,846,975
|
93.70
|
Christopher
Paton-Gay
|
Donald
Jackson Wells
|
Joseph
Kane
|
||
Christopher
Paton-Gay
|
Donald
Jackson Wells
|
Joseph
Kane
|
Report
of Independent Registered Pubic Accounting Firm
|
3
|
Consolidated
Balance Sheets
|
4
|
Consolidated
Statements of Operations
|
5
|
Consolidated
Statements of Stockholders’ Equity
|
6
|
Consolidated
Statements of Cash Flows
|
8
|
Notes
to the Consolidated Financial statements
|
10
|
ASSETS
|
|||||||
December
31,
2006
|
December
31,
2005
|
||||||
CURRENT
ASSETS
|
|||||||
Cash
|
$
|
-
|
$
|
78,848
|
|||
Accounts
receivable
|
8,910
|
2,546
|
|||||
Total
Current Assets
|
8,910
|
81,394
|
|||||
OIL
AND GAS PROPERTIES USING FULL COST ACCOUNTING
|
|||||||
Properties
subject to amortization
|
28,177
|
38,175
|
|||||
Unproved
properties
|
925,544
|
164,054
|
|||||
Net
Oil and Gas Properties
|
953,721
|
202,229
|
|||||
OTHER
ASSETS
|
|||||||
Investments
- Marketable Securities available for sale
|
604,349
|
155,651
|
|||||
Total
Other Assets
|
604,349
|
155,651
|
|||||
TOTAL
ASSETS
|
$
|
1,566,980
|
$
|
439,274
|
|||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
CURRENT
LIABILITIES
|
|||||||
Bank
Overdraft
|
$
|
3,397
|
-
|
||||
Accounts
payable
|
400,410
|
$
|
5,958
|
||||
Notes
payable, related party
|
23,658
|
23,658
|
|||||
Total
Current Liabilities
|
427,465
|
29,616
|
|||||
Total
Liabilities
|
427,465
|
29,616
|
|||||
Other
Commitments or Contingencies
|
-
|
-
|
|||||
STOCKHOLDERS'
EQUITY
|
|||||||
Common
stock, 100,000,000 shares authorized of $0.001 par value, 58,535,984
and
53,385,984 shares issued and outstanding, respectively
|
58,537
|
53,387
|
|||||
Capital
in excess of par value
|
4,697,173
|
4,185,323
|
|||||
Accumulated
other comprehensive income
|
495,283
|
(4,810
|
)
|
||||
Deficit
accumulated during the development stage
|
(4,111,478
|
)
|
(3,824,242
|
)
|
|||
Total
Stockholders' Equity
|
1,139,515
|
409,658
|
|||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
1,566,980
|
$
|
439,274
|
For
the
Three
Months Ended
December
31,
|
For
the
Year
Ended
December
31,
|
From
Inception
on
April
21, 1999
Through
December
31,
|
||||||||||||||
2006
|
2005
|
2006
|
2005
|
2006
|
||||||||||||
REVENUE
|
||||||||||||||||
Royalties
received
|
$
|
985
|
$
|
-
|
$
|
9,813
|
$
|
1,640
|
$
|
20,874
|
||||||
EXPENSES
|
||||||||||||||||
Cost
of production
|
-
|
-
|
-
|
42,403
|
51,753
|
|||||||||||
Depletion
|
5,000
|
2,500
|
10,000
|
-
|
20,767
|
|||||||||||
General
and administrative
|
377,941
|
1,012
|
713,345
|
669,980
|
4,695,178
|
|||||||||||
Total
Expenses
|
382,941
|
3,512
|
723,345
|
712,383
|
4,767,698
|
|||||||||||
NET
OPERATING LOSS
|
(381,956
|
)
|
(3,512
|
)
|
(713,532
|
)
|
(710,743
|
)
|
(4,746,824
|
)
|
||||||
OTHER
INCOME (EXPENSE)
|
||||||||||||||||
Gain
on sale of investments
|
366,134
|
237,825
|
426,295
|
237,825
|
638,638
|
|||||||||||
Interest
expense
|
-
|
-
|
-
|
-
|
(3,292
|
)
|
||||||||||
Total
Other Income (Expense)
|
366,134
|
237,825
|
426,295
|
237,825
|
635,346
|
|||||||||||
NET
PROFIT/(LOSS) BEFORE INCOME TAX
|
$
|
(15,822
|
)
|
$
|
234,313
|
$
|
(287,236
|
)
|
$
|
(472,918
|
)
|
$
|
(4,111,478
|
)
|
||
Income
tax
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
NET
PROFIT/(LOSS)
|
$
|
(15,822
|
)
|
$
|
234,313
|
$
|
(287,236
|
)
|
$
|
(472,918
|
)
|
$
|
(4,111,478
|
)
|
||
BASIC
LOSS PER COMMON SHARE
|
$
|
(0.00
|
)
|
$
|
0.00
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
|||||
WEIGHTED
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
|
55,651,737
|
49,694,775
|
55,651,737
|
50,743,518
|
||||||||||||
COMPREHENSIVE
INCOME (LOSS)
|
||||||||||||||||
NET
LOSS
|
$
|
(15,822
|
)
|
$
|
234,313
|
$
|
(287,236
|
)
|
$
|
(472,918
|
)
|
$
|
(4,111,478
|
)
|
||
OTHER
COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||
Unrealized
Gain on Marketable Securities
|
499,368
|
-
|
499,368
|
|||||||||||||
Foreign
Currency Translation
|
-
|
-
|
(725
|
)
|
(725
|
)
|
(4,085
|
)
|
||||||||
COMPREHENSIVE
INCOME (LOSS)
|
$
|
(15,822
|
)
|
$
|
234,313
|
$
|
211,407
|
$
|
(473,643
|
)
|
$
|
(3,616,195
|
)
|
Shares
|
Amount
|
Additional
Paid-in-Capital
|
Comprehensive
Income/(Loss)
|
Retained
Earnings
|
Subscription
Receivable
|
||||||||||||||
Balance
at inception April 21, 1999
|
0
|
0
|
0
|
||||||||||||||||
Shares
issued for services during 1999
|
41,080
|
41
|
5,094
|
||||||||||||||||
Shares
issued for cash during 1999
|
16,000
|
16
|
99,984
|
||||||||||||||||
Net
Loss for the period ended December 31, 1999
|
|
|
|
|
(96,935
|
)
|
|
||||||||||||
Balance
at December 31, 1999
|
57,080
|
57
|
105,078
|
0
|
(96,935
|
)
|
0
|
||||||||||||
Net
Loss for the period ended December 31, 2000
|
|
|
|
|
(27,242
|
)
|
|
||||||||||||
Balance
at December 31, 2000
|
57,080
|
57
|
105,078
|
0
|
(124,177
|
)
|
0
|
||||||||||||
Net
Loss for the period ended December 31, 2001
|
|
|
|
|
(65,380
|
)
|
|
||||||||||||
Balance
at December 31, 2001
|
57,080
|
57
|
105,078
|
0
|
(189,557
|
)
|
0
|
||||||||||||
Shares
issued for debt reduction during 2002
|
8,000
|
8
|
99,992
|
||||||||||||||||
Shares
issued for services during 2002
|
2,190,150
|
2,190
|
1,092,885
|
||||||||||||||||
Net
Loss for the period ended December 31, 2002
|
|
|
|
|
(1,240,008
|
)
|
|
||||||||||||
Balance
at December 31, 2002
|
2,255,230
|
2,255
|
1,297,955
|
0
|
(1,429,565
|
)
|
0
|
||||||||||||
Shares
issued for services at $.02 per share
|
1,500,000
|
1,500
|
298,500
|
||||||||||||||||
Rounding
of shares from reverse split
|
2,000
|
2
|
(2
|
)
|
|||||||||||||||
Shares
issued for accounts payable at $.05 Per share
|
8,000,000
|
8,000
|
392,000
|
||||||||||||||||
Shares
issued for services at $.015 per share
|
31,729,200
|
31,729
|
444,209
|
||||||||||||||||
Shares
issued for services at $.015 per share
|
9,487,504
|
9,488
|
132,825
|
||||||||||||||||
Shares
issued pursuant to S-8 registration at $.05 per share
|
2,000,000
|
2,000
|
98,000
|
||||||||||||||||
Shares
issued pursuant to S-8 registration at $.05 per share
|
650,000
|
650
|
31,850
|
||||||||||||||||
Cancellation
of Common Stock
|
(16,691,520
|
)
|
(16,692
|
)
|
(220,459
|
)
|
|||||||||||||
Shares
issued for cash at $.05 per share
|
3,000,000
|
3,000
|
147,000
|
||||||||||||||||
Shares
issued for cash at $.30 per share
|
100,000
|
100
|
29,900
|
||||||||||||||||
Shares
issued for cash at $.35 per share
|
528,570
|
529
|
184,471
|
||||||||||||||||
Foreign
Currency Translation
|
(1,718
|
)
|
|||||||||||||||||
Net
Loss for the period ended December 31, 2003
|
0
|
0
|
0
|
|
(1,137,760
|
)
|
|
||||||||||||
Balance
at December 31, 2003
|
42,560,984
|
42,561
|
2,836,249
|
(1,718
|
)
|
(2,567,325
|
)
|
0
|
Shares
|
Amount
|
Additional
Paid-in-Capital
|
Comprehensive
Income/(Loss)
|
Retained
Earnings
|
Subscription
Receivable
|
||||||||||||||
Shares
issued pursuant to S-8 registration at $.20 per share
|
932,500
|
933
|
185,567
|
||||||||||||||||
Shares
issued pursuant to S-8 registration at $.08 per share
|
1,597,500
|
1,598
|
126,202
|
||||||||||||||||
Shares
issued pursuant to S-8 registration at $.08 per share
|
1,000,000
|
1,000
|
79,000
|
||||||||||||||||
Shares
issued pursuant to S-8 registration at $.11 per share
|
85,000
|
85
|
9,265
|
||||||||||||||||
9/30/2004
|
|||||||||||||||||||
Shares
issued pursuant to S-8 registration at $.20 per share
|
1,385,000
|
1,385
|
275,615
|
||||||||||||||||
Shares
issued for Cash at $.05 per share
|
975,000
|
975
|
47,775
|
||||||||||||||||
Subscription
Recievable
|
(48,750
|
)
|
|||||||||||||||||
Foreign
Currency Translation
|
(2,367
|
)
|
|||||||||||||||||
Net
Loss for the period ended December 31, 2004
|
0
|
0
|
0
|
0
|
(784,001
|
)
|
|
||||||||||||
Balance
at December 31, 2004
|
48,535,984
|
48,537
|
3,559,673
|
(4,085
|
)
|
(3,351,325
|
)
|
(48,750
|
)
|
||||||||||
Shares
issued pursuant to S-8 registration at $.13 per share
|
2,850,000
|
2,850
|
367,650
|
||||||||||||||||
Shares
issued pursuant to S-8 registration at $.13 per share
|
2,000,000
|
2,000
|
258,000
|
||||||||||||||||
Foreign
Currency Translation
|
(725
|
)
|
|||||||||||||||||
Subscription
Recievable
|
48,750
|
||||||||||||||||||
Net
Loss for the period ended December 31, 2005
|
(472,917
|
)
|
|||||||||||||||||
Balance
at December 31, 2005
|
53,385,984
|
53,387
|
4,185,323
|
(4,810
|
)
|
(3,824,242
|
)
|
0
|
|||||||||||
Shares
issued pursuant to S-8 registration at $.13 per share
|
2,000,000
|
2,000
|
258,000
|
||||||||||||||||
Shares
issued pursuant to S-8 registration at $.08 per share
|
1,600,000
|
1,600
|
126400
|
||||||||||||||||
Shares
issued pursuant to S-8 registration at $.08 per share
|
1,450,000
|
1,450
|
114,550
|
||||||||||||||||
Shares
issued under Rule 144 at $0.13 per share
|
100,000
|
100
|
12,900
|
||||||||||||||||
Net
Income for the year ended December 31, 2006
|
500,093
|
(287,236
|
)
|
||||||||||||||||
Balance
as at December 31, 2006
|
58,535,984
|
58,537
|
4,697,173
|
495,283
|
(4,111,478
|
)
|
0
|
For
the Year Ended
December
31,
|
From
Inception
on
April
21, 1999
Through
December
31,
|
|||||||||
2006
|
2005
|
2006
|
||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||
Net
loss
|
$
|
(287,234
|
)
|
$
|
(472,917
|
)
|
$
|
(4,111,478
|
)
|
|
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||||
Depletion
|
(761,490
|
)
|
-
|
20,767
|
||||||
Loss
on abandonment of property
|
-
|
-
|
25,481
|
|||||||
Gain
on sale of Investment
|
(436,388
|
)
|
(237,825
|
)
|
(674,213
|
)
|
||||
Common
stock issued for services rendered
|
517,000
|
630,501
|
4,241,960
|
|||||||
Non-cash
Effect from Foreign Currency Translation
|
725
|
(725
|
)
|
(4,080
|
)
|
|||||
Changes
in operating assets and liabilities:
|
||||||||||
Increase
(Decrease) in bank Overdraft
|
3,397
|
-
|
3,397
|
|||||||
Increase
(Decrease) in accounts receivable
|
(6,364
|
)
|
2,263
|
(289
|
)
|
|||||
Increase
(Decrease) in accounts payable - related Party
|
-
|
23,659
|
||||||||
Increase
in accounts payable and accrued expenses
|
394,450
|
(13,094
|
)
|
291,782
|
||||||
Net
Cash Used in Operating Activities
|
(575,904
|
)
|
(91,797
|
)
|
(183,014
|
)
|
||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||
Proceeds
from sale of investments
|
487,058
|
263,758
|
807,522
|
|||||||
Investing
in new Oil & Gas working interests
|
9,998
|
(164,054
|
)
|
(825,544
|
)
|
|||||
Expenditures
for oil and gas property development
|
-
|
(312,714
|
)
|
|||||||
Net
Cash Used in Investing Activities
|
497,056
|
99,704
|
(330,736
|
)
|
||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||
Proceeds
from issuance of common stock
|
-
|
-
|
465,000
|
|||||||
Receipt
of subscription receivable
|
-
|
48,750
|
48,750
|
|||||||
Net
Cash Provided by Financing Activities
|
-
|
48,750
|
513,750
|
|||||||
NET
INCREASE (DECREASE) IN CASH
|
(78,848
|
)
|
56,657
|
-
|
||||||
CASH
AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
78,848
|
22,191
|
-
|
|||||||
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
-
|
$
|
78,848
|
$
|
-
|
For
the Year Ended
December
31,
|
From
Inception
on
April
21, 1999
Through
Dec-31
|
|||||||||
2006
|
2005
|
2006
|
||||||||
SUPPLEMENTAL
CASH FLOW INFORMATION
|
||||||||||
CASH
PAID FOR:
|
||||||||||
Interest
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Income
taxes
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
NON-CASH
FINANCING ACTIVITIES
|
||||||||||
Common
stock issued for services rendered
|
$
|
517,000
|
$
|
630,501
|
$
|
3,709,460
|
||||
Common
stock issued for retirement of payables
|
$
|
-
|
$
|
-
|
$
|
532,500
|
NOTE
1 -
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
NOTE
1 -
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
|
Income
(Loss)
(Numerator)
|
Shares
(Denominator)
|
Per-Share
Amount
|
||||||||
For
the year ended December 31, 2006:
|
||||||||||
Basic
EPS
|
||||||||||
Income
(loss) to common stockholders
|
$
|
212,132
|
55,651,737
|
$
|
0.00
|
|||||
For
the year ended December 31, 2005:
|
||||||||||
Basic
EPS
|
||||||||||
Income
(loss) to common stockholders
|
$
|
(472,918
|
)
|
50,743,518
|
$
|
(0.01
|
)
|
NOTE
1 -
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
|
December
31,
2006
|
December
31,
2005
|
||||||
Deferred
tax assets:
|
|||||||
Net
operation loss carry-forwards
|
$
|
3,612,110
|
$
|
3,946,812
|
|||
Total
Deferred Tax Assets
|
1,228,123
|
1,341,916
|
|||||
Valuation
allowance for deferred tax assets
|
(1,228,123
|
)
|
(1,341,916
|
)
|
|||
$
|
-
|
$
|
-
|
2006
|
2005
|
||||||
Book
loss from operations
|
$
|
72,125
|
$
|
-
-
|
|||
Not
Used
|
(72,125
|
)
|
|||||
Common
stock issued for services
|
175,780
|
308,856
|
|||||
Valuation
allowance
|
(175,780
|
)
|
(308,856
|
)
|
|||
$
|
-
|
$
|
-
|
NOTE
1 -
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
|
NOTE
1 -
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
|
NOTE
1 -
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
|
2006
|
2005
|
||||||
Accounts
Receivable
|
$
|
8,911
|
$
|
2,546
|
|||
Less:
Allowance for Doubtful Debts
|
-
|
-
|
|||||
Net
Accounts Receivable
|
$
|
8,891
|
$
|
2,546
|
NOTE
2 -
|
GOING
CONCERN
|
NOTE
3 -
|
OIL
& GAS PROPERTIES
|
NOTE
4 -
|
STOCK
TRANSACTIONS
|
NOTE
5 -
|
INVESTMENTS
AND SALE OF OILS & GAS
PROPERTIES
|
NOTE
6 -
|
OTHER
COMPREHENSIVE INCOME
|
December
31,
|
|||||||
2006
|
2005
|
||||||
Balance,
beginning of year
|
$
|
(4,810
|
)
|
$
|
(4,085
|
)
|
|
Unrealized
gain on marketable securities
|
$
|
499,368
|
$
|
nil
|
|||
Effect
of currency exchange rate changes
|
725
|
(725
|
)
|
||||
Balance,
end of year
|
$
|
495,283
|
$
|
(4,810
|
)
|
NOTE
7 -
|
RELATED
PARTY TRANSACTION
|
December
31,
|
|||||||
Note
payable
|
2006
|
2005
|
|||||
Balance,
beginning of year
|
$
|
23,658
|
$
|
35,000
|
|||
Advances
received
|
$
|
0
|
$
|
(11,866
|
)
|
||
Effect
of currency exchange rate changes
|
$
|
0
|
$
|
524
|
|||
Balance,
end of year
|
$
|
23,658
|
$
|
23,658
|
NOTE
8 -
|
LEASE
COMMITMENTS
|
Year
ended December 31, 2007
|
$
|
40,338
|
||
Year
ended December 31, 2008
|
$
|
40,338
|
||
Year
ended December 31, 2009
|
$
|
30,254
|
(1)
|
Capitalized
Costs Relating to Oil and Gas Producing Activities
|
December
31,
|
|||||||
2006
|
2005
|
||||||
Proved
oil and gas producing properties and related lease and well
equipment
|
$
|
48,942
|
$
|
48,942
|
|||
Accumulated
depreciation and depletion
|
(20,767
|
)
|
(10,767
|
)
|
|||
Net
Capitalized Costs
|
$
|
28,177
|
$
|
38,175
|
(2)
|
Costs
Incurred in Oil and Gas Property Acquisition, Exploration, and
Development
Activities
|
For
the Years Ended
December
31,
|
|||||||
2006
|
2005
|
||||||
Acquisition
of Properties
|
|||||||
Proved
|
$
|
-
|
$
|
-
|
|||
Unproved
|
264,054
|
-
|
|||||
Exploration
Costs
|
-
|
-
|
|||||
Development
Costs
|
661,490
|
164,054
|
|||||
Total
Costs Incurred
|
$
|
925,544
|
$
|
164,054
|
(3)
|
Results
of Operations for Producing Activities
|
For
the Years Ended December
31,
|
|||||||
2006
|
2005
|
||||||
Sales
|
$
|
9,813
|
$
|
1,640
|
|||
Production
costs
|
(10,000
|
)
|
(2,564
|
)
|
|||
Depreciation
and depletion
|
-
|
(10,000
|
)
|
||||
Results
of operations for producing activities (excluding corporate overhead
and
interest costs)
|
$
|
(187
|
)
|
$
|
(10,924
|
)
|
(4)
|
Reserve
Quantity Information
|
Oil
BBL
|
Gas
MMCF
|
||||||
Proved
developed and undeveloped reserves:
|
|||||||
Balance,
December 31, 2005
|
-
|
4.67
|
|||||
Change
in estimates
|
-
|
-
|
|||||
Production
|
-
|
.99
|
|||||
Balance,
December 31, 2006
|
-
|
3.68
|
Proved
developed reserves:
|
Oil
BBL
|
Gas
MMCF
|
|||||
Beginning
of the year ended December 31, 2006
|
-
|
4.67
|
|||||
End
of the year ended December 31, 2006
|
-
|
3.68
|