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Subsequent Events | 12 Months Ended
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Dec. 31, 2011
Subsequent Events |
Subsequent Events | Note 6: Subsequent Events Common Stock – During January 2012 the Company issued 1,071,180 shares of common stock in a non-public offering at $4.00 per share to a limited number of investors for total consideration of $4,284,720. Costs associated with the issuance of these shares amounted to $4,165 resulting in net proceeds to the Company of $4,280,555. Letter of Intent – During February 2012 the Company entered into a second non-binding letter of intent with the Stanford Majority Stockholders (“LOI”). Pursuant to the LOI, the Company would issue 3,440,000 shares of its common stock in exchange for all of the issued and outstanding shares of common stock of Stanford. At the closing of the transaction contemplated by the LOI, the Company represents that it will have $9,000,000 in total assets and Stanford will provide an engineering report covering properties in Andrews County, Texas, (the “Andrews County Properties”), dated effective as of December 31, 2011 reflecting a present value $80,000,000 (using the estimated future oil and gas revenues, net of estimated direct expenses and income taxes, discounted at an annual discount rate of 10%) and provide evidence that such Andrews County Properties are owned by Stanford. The closing of the contemplated transaction is anticipated to be on or before March 30, 2012 having an effective date of January 1, 2012. Letter Agreement – On March 1, 2012, the Company entered into a letter agreement with Patriot Royalty & Land, LLC to purchase a 100% working interest, with a corresponding 75% net revenue interest in leases contain approximately 161.4 acres located in Andrews County, Texas. The purchase price for the lease is $700 per acre for a total of $112,980. To the extent seller is not able to provide satisfactory title to all 161.4 acres, it will provide satisfactory title to a minimum of 137.19 acres at $700 per acre, thus reducing the purchase price to $96,033. Closing is scheduled for April 10, 2012, and is subject to completion satisfactory due diligence by the Company. In the event any of the leases expires and is extended by the Company prior to January 31, 2016, the Company has agreed to assign the seller a 1.5% overriding royalty in the renewed or extended lease. Also, the Company has placed $82,800 in escrow for the purchase from Fisher Royalties of a working interest in approximately 280 acres located in Andrews County, Texas. Closing of the transaction is subject to completion of satisfactory due diligence by the Company.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References No definition available. + Details
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