The Company is restating its financial statements to properly account for the 2011 acquisition of Knox Gas LLC. The amendment is necessary to report the actual cost incurred by the Company in acquiring the assets that were conveyed to the company through the purchase of all membership interests. The original transaction was recorded as a purchase in exchange for two promissory notes of $250,000 each issued to Joel Senes and Barabara Reed. The actual cost to acquire these leases was $71,000.During the audit of the 2013 financial statements, it was determined that the Company had actually made and expensed the payments to acquire the assets held by Knox Gas LLC during 2010 and 2011. In addition, a operator is currently extracting gas from the properties and paying royalties directly to the land owners. Negotiations with the operator to pay a royalty to the Company failed during the first quarter of 2014. The Company intends to file suit to protect its rights to the income generated by the wells. As of the date of this amendment the Company has not taken legal action. The impact of the restatement on the financial statements was as follows:

	Originally
	Reported			Restated
2012:
Evaluated Oil & Gas Properties	$	213,881		$	71,000
Additional paid in capital	$	14,038,295		$	13,482,569
Accumulated deficit	$	(14,454,189	)	$	(14,041,344	)
Net loss	$	(2,036,343	)	$	(1,720,306	)
Loss per common share	$	(.05	)	$	(.04	)

2011:
Evaluated Oil & Gas Properties	$	500,000		$	71,000
Accrued interest payable-related party	$	25,808		$	0
Note payable-related party	$	500,000		$	0
Accumulated deficit	$	(12,417,846	)	$	(12,321,038	)
Net loss	$	(979,279	)	$	(898,471	)
Loss per common share	$	(.06	)	$	(.05	)