ACQUISITIONS (Tables)

6 Months Ended

Jun. 30, 2012

Summary of assets acquired and the liabilities assumed

The following table summarizes the assets acquired and the liabilities assumed:

Proved developed and undeveloped oil and gas properties	$	2,358,483
Asset retirement obligation		(62,255)
Total Identifiable Net Assets	$	2,296,228

Summary of Fair Value of assets acquired and the liabilities assumed

The following table summarizes the fair values of the assets acquired and the liabilities assumed:

Assets Acquired
Accounts receivable	$	52,278
Proved developed and undeveloped oil and gas properties		1,810,662
Liabilities Assumed
Accounts payable		(32,181)
Asset retirement obligation		(39,594)
Total Identifiable Net Assets	$	1,791,165

Summary of Fair Value of assets acquired and the liabilities assumed Fisher II

The following table summarizes the fair values of the assets acquired and the liabilities assumed:

Proved developed and undeveloped oil and gas properties	$	1,915,152
Asset retirement obligation		(167,392)
Total Identifiable Net Assets	$	1,747,760

Fair Value of the Net Assets Acquired

The common shares were valued at the fair value of the net assets acquired as follows:

Cash	$	10,887,561
Note payable to Ring cancelled		2,003,122
Prepaid expenses		26,942
Property and equipment		187,637
Accounts payable		(9,893)
Fair value of net assets	$	13,095,369

Pro Forma Results from Operations

Pro Forma Results from Operations – The following unaudited pro forma information is presented to reflect the operations of the Company as if the acquisitions had been completed on January 1, 2012 and 2011, respectively:

	For The Three	For The Three	For The Six	For The Six
	Months Ended	Months Ended	Months Ended	Months Ended
	June 30, 2012	June 30, 2011	June 30, 2012	June 30, 2011

Oil and Natural Gas Revenues	$ 342,522	$ 259,972	$ 670,525	$ 557,756
Net Income (Loss)	(544,657)	1,603	(1,253,916)	23,158