Legend Oil & Gas 10-Q 23 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - $ / shares	3 Months Ended
	Mar. 31, 2016	May. 23, 2016
Document And Entity Information
Entity Registrant Name	Legend Oil & Gas, Ltd.
Entity Central Index Key	1,140,414
Document Type	10-Q
Trading Symbol	LOGL
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		942,683,273
Entity Common Stock, Par Value Per Share	$ 0.001
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current Assets
Cash and cash equivalents	$ 663,160	$ 463,503
Accounts receivable-trade	198,742	183,773
Prepaid expenses	202,805	281,737
Other current assets	180,140	137,475
Total Current Assets	1,244,847	1,066,488
Property, plant and equipment net	3,326,438	3,610,854
Assets held for sale	398,680
Intangible Assets	305,079	317,242
Total Assets	5,275,044	4,994,584
Current Liabilities
Accounts payable and accrued expenses	659,570	823,799
Accounts payable-related party	30,000	240,000
Accrued interest	143,530	106,505
Accrued interest - related party	19,290	10,034
Short term debt	256,819	249,348
Current portion of long term debt	1,230,187	1,074,781
Total Current Liabilities	2,339,396	2,504,467
Long term debt, net of debt discount of $0 and $0, respectively	2,239,725	2,040,518
Asset retirement obligations	118,425	96,129
Long term convertible debt - related party, net of discount of $279,949 and $89,323, respectively	1,570,239	564,677
Total Liabilities	6,267,785	5,205,791
Stockholders' Deficit
Preferred stock - $0.001 par value, 100,000,000 shares authorized; Series A convertible preferred stock - $0.001 par value; 0 and 600 shares issued outstanding, respectively; Series B preferred stock - $0.001 par value; 9,643 shares issued and 9,643 outstanding	10	10
Common stock - 4,900,000,000 shares authorized; $0.001 par value; 942,083,273 and 936,083,273 shares issued and outstanding, respectively	942,083	936,083
Additional paid-in capital	44,849,747	44,844,948
Accumulated deficit	(46,784,581)	(45,992,248)
Total Stockholders' Deficit	(992,741)	(211,207)
Total Liabilities and Stockholders' Deficit	$ 5,275,044	$ 4,994,584

CONSOLIDATED BALANCE SHEETS (u3

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Preferred stock, par value	$ 0.001	$ .001
Preferred stock, shares authorized	100,000,000	100,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	4,900,000,000	4,900,000,000
Common stock, shares issued	942,083,273	936,083,273
Common stock, shares outstanding	942,083,273	936,083,273
Series A Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	600	600
Preferred stock, shares issued	600	600
Preferred stock, shares outstanding	600	600
Series B Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ .001
Preferred stock, shares authorized	9,643	9,643
Preferred stock, shares issued	9,643	9,643
Preferred stock, shares outstanding	9,643	9,643
Convertible Debt [Member]
Long term debt discount	$ 279,949	$ 89,323

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATION (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenue	$ 1,176,828
Operating expenses:
Cost of revenues	721,991
General and administrative	925,340	$ 629,763
Depletion, depreciation, and amortization	190,307
Accretion of asset retirement obligation	22,296	2,385
Loss on disposal of oil and gas properties	31,272
Total operating expenses	1,891,206	632,148
Operating loss	(714,378)	(632,148)
Other income (expense)
Interest expense	(74,988)	(309,978)
Change in fair value of embedded derivative liabilities		(6,551,333)
Total other expenses	(74,988)	(6,861,311)
Loss from continuing operations	(789,366)	(7,493,459)
Loss from discontinued operations	(2,967)	(1,417,617)
Net loss	$ (792,333)	$ (8,911,076)
Net loss per common share from continuing operations - basic and diluted	$ 0	$ (0.04)
Net loss per common share from discontinued operations - basic and diluted	$ 0	$ (0.01)
Weighted average number of common shares outstanding - basic and diluted	582,612,256	187,583,273

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (792,333)	$ (8,911,076)
Net loss attributable to discountined operations	2,967	1,417,617
Adjustments to reconcile net loss to cash flows provided by (used in) operating activities:
Stock-based compensation	10,800
Depletion, depreciation, and amortization	190,307
Accretion of asset retirement obligations	22,296	2,385
Loss on disposal of property	31,272
Amortization of discounts on notes payable	15,562	26,252
Change in fair value of embedded derivative liabilities		6,551,333
Changes in operating assets and liabilites:
Accounts receivable	(14,969)
Prepaid expenses and other assets	235,820	(389,999)
Other assets	(42,665)
Accounts payable	(244,141)	88,336
Accounts payable-related party	(90,000)	(170,000)
Accrued interest payable	37,818	(44,444)
Accrued interest payable-related party	9,256
Net cash flows used in operating activities - continuing operations	(628,009)	(1,429,597)
Net cash flows provided by operating activities - discontinued operations	(2,967)	115,110
Net cash flows (used in) provided by operating activities	(630,976)	(1,314,487)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for property, plant and equipment	(28,000)
Net cash flows used in investing activities - continuing operations	(28,000)
Net cash flows provided by investing activities - discontinued operations		1,204,290
Net cash flows (used in) provided by investing activities	(28,000)	1,204,290
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on short term debt	(201,367)
Proceeds from short term debt	70,000
Proceeds from convertible debt - related party, net	990,000
Net cash flows provided by investing activities - continuing operations	858,633
Net cash flows used in investing activities - discontinued operations		(449,044)
Net cash flows provided by (used in) financing activities	858,633	(449,044)
Net change in cash and cash equivalents	199,657	(559,241)
Cash and cash equivalents, beginning of period	463,503	701,848
Cash and cash equivalents, end of period	663,160	142,607
Cash paid during the year for:
Interest	5,054	$ 572,851
NON-CASH INVESTING AND FINANCING ACTIVITIES
Financing for prepaid insurance	156,888
Debt issued for acquisition of property, plant and equipment	448,848
Reclassification of property, plant and equipment to assets held for sale	398,680
Reclassification of accounts payable to short-term debt	40,850
Capitalization of accrued interest on short-term debt	$ 793

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF OPERATIONS	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND DESCRIPTION OF OPERATIONS	NOTE 1 – ORGANIZATION AND DESCRIPTION OF OPERATIONS Description of Business Legend Oil and Gas, Ltd. (the "Company" or "Legend") is a crude oil hauling and trucking company with principal operations in the Bakken region of North Dakota. These crude oil hauling operations commenced through our acquisition of Black Diamond Energy Holdings, LLC ("Maxxon") on April 3, 2015. Further, through October 27, 2015, we were also an oil and gas exploration, development and production company, which are presented as discontinued operations. Our oil and gas property interests were located in the United States (Kansas and Oklahoma). Our current business focus is to expand our crude oil hauling operations into other basins within Colorado, Texas and Oklahoma. Through October 2015, our business was to acquire producing and non-producing oil and gas interests and develop oil and gas properties that we owned or in which we had a leasehold interest. We sold our oil and gas exploration operations on October 27, 2015. Currently, our operations are managed by employees based principally in North Dakota and Denver, Colorado, with the Company's contract CEO and CFO based out of Georgia. Our former oil and gas exploration workers were outsourced to consultants and independent contractors.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements for the three month period ended and at March 31, 2016 include the accounts of the Company, and our wholly-owned subsidiary, Black Diamond Energy Holdings, LLC and its wholly-owned subsidiaries Maxxon Energy, LLC and Treeline Diesel Center, LLC. Intercompany transactions and balances have been eliminated in consolidation. Basis of Presentation The accompanying consolidated financial statements of the Company, have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes thereto contained in Legend’s latest Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate disclosures contained in the audited financial statements for the most recent fiscal year, as reported in the Form 10-K filed with the SEC on April 7, 2016, have been omitted. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Management’s judgments and estimates in these areas are to be based on information available from both internal and external sources, consultants and historical experience in similar matters. The more significant reporting areas impacted by management’s judgments and estimates are fair values of the Company’s equity-linked instruments, accruals related to revenues and expenses, estimates used in the impairment of property, plant and equipment, and the estimated future timing and cost of asset retirement obligations. Actual results could differ from the estimates as additional information becomes known. Cash and Cash Equivalents We consider all highly liquid short-term investments with original maturities of three months or less to be cash equivalents. Concentrations During the three month period ended March 31, 2016, crude hauling revenue from Statoil ASA (“Statoil”) and Inland Slawson represents 84% and 9%, respectively, of our crude oil hauling business. We believe that the loss of Statoil as a customer would result in a material adverse effect to our company's financial results. Financial instruments which potentially subject the Company to concentrations of credit risk include cash deposits placed with financial institutions. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits as guaranteed by the Federal Deposit Insurance Corporation (FDIC). At March 31, 2016, $669 of the Company's cash balances were uninsured. The Company has not experienced any losses on such accounts. Accounts Receivable Accounts receivable typically consist of crude oil hauling customer receivables, and are presented on the consolidated balance sheets net of allowances for doubtful accounts. The Company establishes provisions for losses on accounts receivable for estimated uncollectible accounts and regularly review collectability and establishes or adjusts the allowance as necessary using the specific identification method. Account balances that are deemed uncollectible are charged off against the allowance. No allowance for doubtful accounts was necessary as of either March 31, 2016 or December 31, 2015. Prepaid Expense Prepaid expenses consist primarily of prepaid insurance premiums. The Company amortizes these prepayments to expense over the life of the policy. Assets held for sale Long-lived assets that are expected to be recovered through a sale or disposition are classified as held for sale. Assets classified as held for sale are evaluated for impairment using the lower of fair value less disposal costs and carrying value. Assets held for sale are not depreciated. During the three months ended March 31, 2016 and 2015, no impairment loss was recorded. Equipment Equipment is stated at cost less accumulated depreciation and amortization. Maintenance and repairs are charged to expense as incurred. Renewals and betterments which extend the life or improve existing equipment are capitalized. Upon disposition or retirement of equipment, the cost and related accumulated depreciation are removed and any resulting gain or loss is reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are 5-7 years. Intangibles Intangible assets are comprised of a customer list, a trademark and a non-compete agreement obtained in the acquisition of Maxxon during the year ended December 31, 2015. The intangible assets are amortized on a straight-line basis over the assets’ respective life, ranging from 36 months to 120 months. Impairment of Long-Lived Assets The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost-carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of the asset by estimating the future net undiscounted cash flows expected to result from the asset, including eventual disposition. If the future net undiscounted cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and estimated fair value. Asset Retirement Obligation The Company records the fair value of a liability for an asset retirement obligation in the period in which the asset is acquired and a corresponding increase in the carrying amount of the related long-lived asset if a reasonable estimate of fair value can be made. The associated asset retirement cost capitalized as part of the related asset is allocated to expense over the asset’s useful life. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized. The asset retirement obligation is recorded at its estimated fair value and accretion is recognized over time as the discounted liability is accreted to its expected settlement value. Fair value is determined by using the expected future cash outflows discounted at our credit-adjusted risk-free interest rate. The asset retirement obligation and the accompanying consolidated balance sheet at both March 31, 2016 and December 31, 2015, is related to our nonproducing Van Pelt lease in Oklahoma. Oil Hauling and Service Revenue Recognition Our wholly-owned subsidiary, Maxxon, recognizes revenue based on the relative transit time of the freight transported and as other services are provided. Accordingly, a portion of the total revenue that will be billed to the customer once a load is delivered is recognized in each reporting period based on the percentage of the freight pickup and delivery service that has been completed at the end of the reporting period. The Company records revenues on the gross basis at amounts charged to its customers because the Company is the primary obligor, a principal in the transaction, it invoices its customers and retains all credit risks, and maintains discretion over pricing. Additionally, the Company is responsible for the selection of third-party transportation providers. Independent contractor providers of revenue equipment are classified as purchased transportation expense in the consolidated statements of operations. Income Taxes The Company recognizes income taxes on an accrual basis based on a tax position taken or expected to be taken in its tax returns. A tax position is defined as a position in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected in measuring current or deferred income tax assets or liabilities. Tax positions are recognized only when it is more likely than not (i.e., likelihood of greater than 50%), based on technical merits, that the position would be sustained upon examination by taxing authorities. Tax positions that meet the more likely than not threshold are measured using a probability-weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. A valuation allowance is established to reduce deferred tax assets if all, or some portion, of such assets will more likely than not be realized. A valuation allowance for the full amount of the net deferred tax asset was recorded for the three month period ended march 31, 2016 and December 31, 2015. Should they occur, interest and penalties related to tax positions would be recorded as interest expense. No such interest or penalties have been incurred as of either March 31, 2016 or December 31, 2015. The Company is no longer subject to federal examination for years before 2008. Stock-based compensation The Company measures compensation cost for stock-based payment awards at fair value and recognizes it as compensation expense over the service period for awards expected to vest. Legend’s policy is to issue new shares when options are exercised. Compensation cost from the issuance of stock options and stock grants is recorded as a component of general and administrative expenses in the consolidated statements of operations, and amounted to $30,000 and -0- for three months ended March 31, 2016 and 2015, respectively. The Black-Scholes option pricing model is used to estimate the fair value of employee stock option awards at the date of grant, which requires the input of highly subjective assumptions, including expected volatility and expected life. Changes in these inputs and assumptions can materially affect the measure of estimated fair value of our share-based compensation. These assumptions are subjective and generally require significant analysis and judgment to develop. When estimating fair value, some of the assumptions will be based on, or determined from, external data and other assumptions may be derived from our historical experience with stock-based payment arrangements. The appropriate weight to place on historical experience is a matter of judgment, based on relevant facts and circumstances. The Company estimates volatility by considering the historical stock volatility. The Company has opted to use the simplified method for estimating expected term, which is generally equal to the midpoint between the vesting period and the contractual term. Net Loss Per Common Share The computation of basic net loss per common share is based on the weighted average number of shares that were outstanding during the period, including contingently redeemable common stock. The computation of diluted net loss per common share is based on the weighted average number of shares used in the basic net loss per share calculation plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding. Potentially dilutive common shares include convertible preferred stock and convertible debentures. March 31, March 31, Potentially dilutive of common stock equivalents: Options — — Convertible Debt 61,672,933 20,348,718 Convertible preferred stock 327,499,200 — Derivative Financial Instruments The Company evaluates financial instruments for freestanding or embedded derivatives. Derivative instruments that do not qualify for permanent equity classification as the instruments have been determined not to be indexed to the Company’s stock are recorded as liabilities at fair value, with changes in value recognized as other income (expense) in the consolidated statements of operations in the period of change. Derivative liabilities are categorized as either short-term or long-term based upon management’s estimates as to when the derivative instrument may be realized or based upon the holder’s ability to realize the instrument. Fair Value Measurements The Company follows FASB ASC 820, Fair Value Measurement (“ASC 820”), which clarifies fair value as an exit price, establishes a hierarchal disclosure framework for measuring fair value, and requires extended disclosures about fair value measurements. The provisions of ASC 820 apply to all financial assets and liabilities measured at fair value. As defined in ASC 820, fair value, clarified as an exit price, represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a result, fair value is a market-based approach that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering these assumptions, ASC 820 defines a three-tier value hierarchy that prioritizes the inputs used in the valuation methodologies in measuring fair value. Level 1: Observable market inputs such as quoted prices in active markets; Level 2: Observable market inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs where there is little or no market data, which require the reporting entity to develop its own assumptions. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed below, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In May 2014, FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers In April 2015, FASB issued Accounting Standards Update No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In November 2015, FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-2, Leases Subsequent Events The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration.

GOING CONCERN

GOING CONCERN	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN	NOTE 3 – GOING CONCERN The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has incurred significant losses from continuing operations of $789,366 for the three months ended March 31, 2016 and $14,989,835 for the year ended December 31, 2015 and had negative working capital of $695,869 at March 31, 2016 and $1,437,979 at December 31, 2015. Additionally, the Company is dependent on a small number of customers in obtaining its revenue goals. Further, obtaining additional debt and/or equity financing to roll-out and scale its planned principal business operations may be limited due our losses from operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters consist principally of seeking additional debt and/or equity financing combined with restructuring its current debt obligations, and expected cash flows from our crude oil hauling company and assets that it may acquire. There can be no assurance that the Company's efforts will be successful. The financial statements do not include any adjustments that may result from the outcome of this uncertainty.

ACQUISITION OF MAXXON

ACQUISITION OF MAXXON	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
ACQUISITION OF MAXXON	NOTE 4 - ACQUISITION OF MAXXON On April 3, 2015, the Company entered into a Membership Interest Purchase Agreement ("MIPA") with Sher Trucking, LLC ("Sher"), Albert Valentin ("Valentin") and Steven Wallace ("Wallace"), which made up all of the members of Maxxon to purchase all of the outstanding membership interests of Maxxon. The Company paid $1,500,000 in cash to Sher; issued a secured promissory note to Sher in the amount of $2,854,000; issued 90,817,356 shares of the Company's common stock to Valentin, valued at $526,741; agreed to issue 57,682,644 shares of the Company's common stock to Wallace valued at $334,559 which was issued in December 2015. The principal amount of the note to Sher bears interest at five percent (5%) per annum and is due and payable in full on April 3, 2016. The note is secured by certain rolling stock trucks and trailers owned by subsidiaries of Maxxon. The Company also paid $125,000 to Sher after closing as an advance against an anticipated purchase price adjustment related to the working capital changes of Maxxon. The post-closing payment was included in final purchase price as a result of the working capital adjustments. Purchase price on April 4, 2015 Cash paid $ 1,625,000 Promissory note 2,854,000 Fair value of common stock issued 861,300 Total purchase price 5,340,300 Fair value of net assets at April 4, 2015 Cash $ 435,339 Accounts receivable 1,063,629 Inventory 207,437 Prepaid and other current assets 199,132 Property and equipment 3,188,615 Intangibles 354,000 Goodwill 438,106 Total assets 5,886,258 Accounts payable (455,632 ) Other current liabilities (90,326 ) Total liabilities (545,958 ) Net assets acquired $ 5,340,300

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 5 – PROPERTY AND EQUIPMENT The amount of capitalized costs related to property and equipment and the amount of related accumulated depreciation and impairment are as follows: March 31, December 31, 2016 2015 Drilling rig $ — $ 465,000 Trucks, trailers, and vehicles 3,764,315 3,488,246 Furniture and equipment 444,713 444,713 Property and equipment, at cost 4,209,028 4,397,959 Accumulated depreciation (657,755 ) (562,270 ) Accumulated impairment (224,835 ) (224,835 ) Property and equipment, net $ 3,326,438 $ 3,610,854 The Company has assigned a useful life of 5 years to all assets. The drilling rig was previously included in property and equipment, and has been reclassified to assets held for sale, as the Company has ceased all drilling operations. The Company recorded depreciation expense of $178,145 and $0 during the three months ended March 31, 2016 and 2015, respectively. During the three months ended March 31, 2016, the Company exchanged vehicles with a carrying value of $184,439 for new vehicles with a purchase price of $198,211. In addition, the vehicles traded were financed with an outstanding principal balance of $166,614 owed at the date of the exchange, which was extinguished in full. The Company assumed liabilities for the new vehicles of $211,658. Accordingly, the Company recorded a loss on the disposition of the vehicles of $31,272. In March 2016, the Company purchased 7 tanker trailers from a third party. The trailers’ purchase price was $278,636. The Company paid $28,000 as a down payment and financed the remaining balance of $250,636. The financing requires monthly payments of $6,962 for the next 3 years and has a 0% interest rate. During the third quarter of 2015, the Company closed the repair facility operation for its subsidiary, Treeline Diesel Center LLC. As of December 31, 2015, the Company impaired the value of the assets of $224,835.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 6 - INTANGIBLE ASSETS During the year ended December 31, 2015, the Company completed its acquisition of Maxxon. The Company performed an assessment of the net assets acquired and identified it had acquired significant customer relationships, a trademark and a non-compete agreement with the sellers of Maxxon. Below is a summary of the cost attributable to the acquired intangibles. March 31, December 31, 2016 2015 Non-compete agreement $ 39,200 $ 39,200 Trademark 47,800 47,800 Customer relationships 267,000 267,000 Goodwill 438,106 438,106 Total intangible assets 792,106 792,106 Accumulated amortization of intangible assets (48,921 ) (36,758 ) Accumulated impairment of intangible assets (438,106 ) (438,106 ) Net Intangible assets ending balance, March 31 305,079 317,242 After completing the purchase price allocation for the acquisition of Maxxon, the Company noted that its total purchase price of $5,340,300 exceeded the net assets acquired of Maxxon by $438,106 and accordingly, recorded goodwill for the excess amount. As of December 31, 2015, the Company assessed its goodwill for impairment and determined that goodwill was impaired. Accordingly, the Company recorded impairment and loss of $438,106 to fully impair the recorded goodwill. During the three months ended March 31, 2016, the Company recorded $12,163 in amortization expense on its intangible assets.

ASSET RETIREMENT OBLIGATION

ASSET RETIREMENT OBLIGATION	3 Months Ended
	Mar. 31, 2016
Asset Retirement Obligation Disclosure [Abstract]
ASSET RETIREMENT OBLIGATION	NOTE 7 – ASSET RETIREMENT OBLIGATION During 2015, the Company sold all of its producing properties. The asset retirement obligation recorded as of both March 31, 2016 and December 31, 2015 was related to the Van Pelt lease, a non-producing field, that the Company acquired during 2015, and which the Company still owned as of year-end. The asset retirement obligation at both March 31, 2016 and December 31, 2015 was $118,425 and $96,129, respectively. The Company recorded $22,296 and $2,385 in accretion expense of the asset retirement obligation liability during the three months ended March 31, 2016 and 2015, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 8 – RELATED PARTY TRANSACTIONS During the year ended December 31, 2015, the related party amounts due to NPE were reduced by payments of $180,400, with additions for brokerage fees on the acquisition of Maxxon of $55,000, with a remaining balance due NPE of $451,600. In July 2015, NPE agreed to forgive the payable of $451,600. As of December 31, 2015, there was an amount due to NPE of $120,000, as a result of the bonus accrual under the NPE letter agreement for CEO services, which was paid out during the three months ended March 31, 2016. On May 1, 2015, Hillair converted all of its 600 Series A Convertible Preferred Stock to 600 million shares of common stock. During the year ended December 31, 2015, the Company entered into various secured debt debentures with Hillair to finance the Company’s oil and gas operations and acquisitions, in the aggregate amount of $9,824,976. These debentures accrued interest from 8% - 8.5% per annum and were secured in the Company’s oil and gas properties. On October 22, 2015, the Company consummated a Securities Exchange Agreement with Hillair, its controlling shareholder, pursuant to which it issued 9,643 shares of Series B Convertible Preferred Stock (the "Series B Preferred Shares") with conversion price of $0.03 in exchange for the cancellation of debentures held by Hillair with a total carrying value of $9,824,976 (the "Exchanged Debentures"). The shares can be converted into 327,499,200 shares of the Company's common stock. Also, on October 22, 2015, the Company consummated a Securities Purchase Agreement with Hillair pursuant to which it issued an Original Issue Discount Senior Secured Convertible Debenture in the aggregate amount of $654,000, payable in full on March 1, 2017 and accrues interest at 8% per annum. The debenture is convertible into up to 21,800,000 shares of common stock at a conversion price of $0.03 per share. After taking into account the original issue discount, legal and diligence fees of $104,000 reimbursed to Hillair, the net proceeds received by the Company was $550,000. On January 29, 2016, the Company and Hillair amended the Securities Purchase Agreement (the “Amended SPA”) to increase the aggregate amount available to the Company. The Amended SPA increased the amount from $654,000 to $1,439,400. As a result, the Company received $630,000 in new proceeds, net of original issue discount, legal and diligence fees of $155,400 which were recorded as a debt discount. The debenture is convertible into up to 381,313,333 shares of common stock at a conversion price of $0.03 per share. The Amended SPA also extended the maturity date from March 1, 2017 to March 1, 2018. All other terms of the debenture remain the same. On March 25, 2016, the Company consummated a Senior Convertible Debenture with Hillair in the amount of $410,788. The debenture has a maturity date of March 1, 2018 and accrues interest at 8% per annum. The debenture is convertible into up to 13,692,933 shares of common stock at a conversion price of $0.03 per share. The Company received net proceeds of $360,000, net of original issue discount, legal and diligence fees of $50,788 which were recorded as a debt discount. During the three months ended March 31, 2016 and 2015, the Company amortized the debt discounts associated with its convertible debentures in the amount of $15,562 and $26,252, respectively. These amounts were recorded as interest expense.

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTE 9 – NOTES PAYABLE Notes payable consist of the following: March 31, 2016 December 31, 2015 a) On October 28, 2013, a vendor filed a complaint against the Company seeking to collect $68,913, plus interest at 12% for services rendered on or before November 30, 2012. This claim has been satisfactorily resolved between the parties, and Legend is remitting $2,500 per month in settlement of this claim, until such balance is fully repaid. During the three months ended March 31, 2016, the Company made principal payments of $7,500 and capitalized $757 of interest expense to the principal balance. During the year ended December 31, 2015, the Company made principal payments of $30,000 and capitalized $5,199 of interest expense to the principal balance. $ 39,063 $ 45,805 b) On April 1, 2014, the Company issued a note payable to New Western Energy Corporation (“NWTR”) for $75,000 as part of the plan for merger with NWTR. The note has no interest provision and was due on February 28, 2015. On January 6, 2015, the Company entered into a settlement with NWTR to repay the remainder of principal in 5 installments starting on February 15, 2015. The Company made aggregate principal and interest payments of $38,336 during the year ended December 31, 2015. No payments have been made to NWTR during the quarter ended March 31 2016. The note was in default as of March 31, 2016, but the Company has not received a default notice from NWTR. 26,664 26,664 c) On June 19, 2014, a vendor filed a complaint against the Company seeking to collect $35,787, plus interest at 12% for services rendered. This claim has been satisfactorily resolved between the parties, and Legend previously remitted $2,000 per month in settlement of this claim, until such balance was fully repaid. During the three months ended March 31, 2016, the Company repaid this note, including accrued interest, in full. During the year ended December 31, 2015, the Company made principal payments of $22,000 and capitalized $1,402 of interest expense to the principal balance. 2,782 3,041 d) On October 20, 2014, the Company issued a note payable for the purchase of drilling rig for $315,000. The note bears interest at 6% per annum and was due on April 12, 2016. The Company is required to make monthly payment of $18,343. The Company made aggregate principal and interest payments of $55,029 and $219,208 for the three months ended March 31, 2016 and year ended December 31, 2015. This note is fully repaid at the date of this report. 19,160 73,372 e) On April 3, 2015, as part of the Maxxon acquisition, the Company issued a secured promissory note to Sher Trucking in the amount of $2,854,000. The note bears interest at 5% per annum and was due in full on April 3, 2016. On April 5, 2016, the Company entered into an agreement with Sher that restructured the secured promissory note ($2,854,000), with a restructuring fee ($250,000) plus accrued interest ($142,700) (the “Restructuring”), totaling $3,246,700 to Sher. The terms of that Restructuring are that (1) the Company will paid $1,000,000 to Sher by April 8, 2016 (the Company entered into a debenture with Hillair that nets to $1,000,000 in cash proceeds to the Company, which was paid by us directly to Sher; (2) the remaining balance on the Sher Note of $2,256,700 at 15% interest per annum, will be due and payable on April 3, 2018; (3) the Company included a restructuring fee of $250,000 in the principal balance of the note which is due on April 3, 2018; and, (4) the Sher Note will remain collateralized by the same collateral as the original promissory note to Sher. 2,854,000 2,854,000 f) On November 1, 2015, the Company purchased three trucks from A&H Sterling Energy, LLC. The trucks were financed by A&H Sterling Energy, LLC with an outstanding promissory note in the aggregate amount of $96,407 owed to Cunard Holdings LLC. The Company assumed the outstanding promissory note as part of the acquisition. The note bears interest at 7% and is due on January 1, 2018. 78,996 89,511 g) On October 19, 2015, the Company entered into secured note agreement with a financial institution for the purchase of a vehicle in the amount of $118,110. The notes bore interest at 5.99% and was due on December 3, 2020. In February 2016, the Company traded in the vehicle for a new vehicle. As part of the trade in, the note was settled and a new note was issued with a principal of $135,278 with interest at 3.99% and is due on April 1, 2021. 135,278 116,411 h) On November 12, 2015, the Company entered into a secured note agreement with a financial institution for the purchase of vehicle in the amount of $57,106. The notes bears interest at 3.99% and was due on November 12, 2020. In February 2016, the Company traded in the vehicle for a new vehicle. As part of the trade in, the note was settled and a new note was issued with a principal of $76,380 with interest at 3.90% and is due on April 5, 2021. 76,380 55,843 i) On December 16, 2015, the Company entered into a secured line of credit facility with State Bank and Trust Company in the aggregate amount of $275,000. The facility bears interest at 4% and due on December 16, 2016. The note is collateralized by certain property of Maxxon. During the three months ended March 31, 2016, the Company drew $70,000 and paid interest of $1,369 on this line of credit. 170,000 100,000 j) In January 2016, the Company entered into a forebearance agreement to transfer amounts owed on a credit card to Origin Bank into a note agreement, in the aggregate amount of $40,850. The note bears interest at 4% per annum and is payable in 12 monthly payments beginning April 15, 2016 of $3,000 per month with the remaining balance and accrued interest due on April 15, 2017. 40,850 — k) In March 2016, the Company entered into a financing agreement to purchase trailers from a third party. The trailers’ purchase price was $278,636. The Company paid $28,000 as a down payment and financed the remaining balance of $250,636. The financing requires monthly payments of $6,962 for the next 3 years and has a 0% interest rate. 250,636 — l) During the three months ended March 31, 2016, the Company entered into various insurance financing agreements in the aggregate amount of $146,786. The agreements are payable in nine monthly payments and accrue interest at 4.61% per annum. The Company made payments of $114,830 in principal and interest on these financing agreements. 32,921 — Total $ 3,726,731 $ 3,364,647 Less short term debt 256,819 (249,348 Less current portion of long term debt 1,230,187 (1,074,781 ) Long term debt $ 2,239,725 $ 2,040,518

EMBEDDED DERIVATIVE LIABILITIES

EMBEDDED DERIVATIVE LIABILITIES	3 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
EMBEDDED DERIVATIVE LIABILITIES	NOTE 10 – EMBEDDED DERIVATIVE LIABILITIES The following table is a reconciliation of embedded derivative liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2015. There were no embedded derivative liabilities recorded during the three months ended March 31, 2016. Embedded Balance, January 1, 2015 $ 1,128,667 Fair value of warrants issued — Fair value upon conversion of preferred stock to common stock (7,680,000 ) Change in fair value 6,551,333 Balance, March 31, 2015 $ — The Company used the market price of $0.0128 for its common stock on the date of conversion of the Series A Convertible Preferred Stock to calculate the fair value of the embedded derivative extinguished during the year ended December 31, 2015. The Company valued the embedded derivative liabilities using a Black-Scholes model. A summary of quantitative information with respect to valuation methodology, estimated using a Black-Scholes model, and significant unobservable inputs used for the Company’s embedded derivative liabilities for the year ended December 31, 2015 is as follows: Expected dividend yield — Strike price $0.001-0.01 Expected stock price volatility 196.27-218.76 % Risk-free interest rate 1.52-1.78 % Expected term (in years) 4-5

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT)	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY (DEFICIT)	NOTE 11 – STOCKHOLDERS’ EQUITY (DEFICIT) On December 21, 2015, the Company obtained stockholder approval to amend the Company's Articles of Incorporation to effect an increase in the amount of authorized shares of from 1,100,000,000 to 5,000,000,000. The Company increased the number of authorized shares of common stock from 1 billion shares, with a par value of $0.001, to 4.9 billion shares, with a par value of $0.001 and 100 million shares designated as blank check preferred stock. On November 13, 2014, the Company designated 600 shares of its 100 million shares of blank check preferred stock as Series A Convertible Preferred Stock. On October 21, 2015, the Company designated 9,643 shares of its 100 million shares of blank check preferred stock as Series B Convertible Preferred Stock. Convertible Preferred Stock On October 22 2015, the Company consummated a Securities Exchange Agreement with Hillair pursuant to which it issued 9,643 shares of Series B Convertible Preferred Stock (the " Series B Preferred Shares ") in exchange for the cancellation of debentures held by Hillair with a total principal value of $9,642,546 and accrued interest of $182,430. As of December 31, 2014, the Company had issued and outstanding 600 shares of its Series A Convertible Preferred Stock. This convertible preferred stock has a 0% dividend rate. The shares of preferred stock are convertible into 600 million shares of the Company¹s common stock at $0.0001 per share, and have a non-dilution provision. The shares were converted to 600 million shares of common stock in May 2015. Common Stock Issuances In April 2015, the Company issued 90,817,356 shares of common stock to Albert Valentin as part of its purchase of Maxxon. The stock had a fair value of $526,741. The fair value of the common stock was determined using the closing price of the shares on the grant date. In December 2015, the Company issued 57,682,644 shares of common stock to Steven Wallace as part of its purchase of Maxxon. The stock had a fair value of $334,559. The fair value of the common stock was determined using the closing price of the shares on the grant date. On March 2, 2016, the Company issued common stock to an employee. A total of 6 million shares were issued with a fair value of $10,800 using the closing market price on the date of issuance. Warrants There was no warrant activity during the year ended December 31, 2015. Options There was no option activity during the year ended December 31, 2015.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	3 Months Ended
	Mar. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	NOTE 12 – DISCONTINUED OPERATIONS The amounts of net assets and liabilities related to the discontinued operations of the Company’s oil and gas operations as of March 31, 2016 and December 31, 2015 were $0 and $0, respectively. The table below summarizes the operations of the Company’s oil and gas activities for the three months ended March 31, 2106 and 2015. March 31, 2016 March 31, 2015 Revenues $ — $ 170,015 Production expenses — 205,167 Operating expenses 2,967 29,877 Depletion, depreciation, and amortization — 53,899 Loss on sale of oil and gas properties — 892,131 Impairment loss on oil and gas properties — 406,558 Loss from discontinued operations $ (2,967 ) $ (1,417,617 )

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 13 – COMMITMENTS AND CONTINGENCIES The Company is not aware of any pending or threatened legal proceedings, nor is the Company aware of any pending or threatened legal proceedings, affecting any current officer, director or control shareholder, or their affiliates. As part of its regular operations, the Company may become party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning its’ commercial operations, products, employees and other matters. Although the Company can give no assurance about the outcome of these or any other pending legal and administrative proceedings and the effect such outcomes may have on the Company, the Company believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by insurance, will not have a material adverse effect on the Company’s financial condition or results of operations. The Company owes $9,266 in property taxes, penalties, and interest to the state of North Dakota from operations during the year 2012. We entered into a payment plan with the state of North Dakota whereby we pay them $500 per month until the above balance is fully repaid. On October 28, 2013, a vendor filed a complaint against the Company seeking to collect $68,913, plus interest for services rendered on or before November 30, 2012. This claim has been satisfactorily resolved between the parties, and Legend is remitting approximately $2,500 per month in settlement of this claim, until such balance is fully repaid. During the period ended March 31, 2016, the Company made principal payments of $7,500. The Company recorded interest of approximately $757 on the settlement liability for the period ended March 31, 2016. As of March 31, 2016, the Company had a principal balance of $22,369 outstanding on the settlement liability. On May 18, 2015, the Company entered into a trailer lease agreement with Polar Service Centers. The Company leased seven trailers at a monthly rent of $17,500 for 28 months commencing on June 1, 2015 and continue until September 30, 2017. The Company evaluated the lease for capitalization and concluded the lease did not meet the criteria of a capital lease. On February 15, 2016, the Company entered into a trailer lease agreement with Wallwork Truck Center. The Company leased 10 trailers at a monthly rent of $17,335 for 48 months commencing on February 12, 2016 and continue until February 12, 2020. Future minimum lease payments for the trailer lease as of the three months ended March 31, 2016 are as follows: 2016 $ 313,519 2017 365,526 Thereafter 450,722 Total net minimum payments $ 1,129,767 The Company leases office space on a month-to-month basis, with monthly rental payments due of approximately $2,200. The Company leases office space, a diesel repair shop, and employee housing under non-cancelable lease agreements. The leases provide that we pay taxes, insurance, utilities, and maintenance expenses related to the leased assets. During March 2016, we entered into an agreement in principle with the property owner/landlord, where the facility lease has been restructured to a 60 month lease commencing April 1, 2016. The restructured lease indicates that we will not pay any cash lease payments while we deplete our $120,000 security deposit held by the landlord, which is included in other assets on the accompanying balance sheets. The revised lease and its payment structure will be such that we will receive a credit of $6,000 per month while WTI oil prices remain below $60.00 per barrel, for any 30 day period. When the price of WTI oil goes above $60.00 per barrel but less than $80.00 per barrel for any 30 day period, we will receive a credit against our deposit of $7,500 per month. Upon the price of WTI oil being above the $80.00 per barrel level for a 30 day period, the Company’s rent credit and/or payment will be $10,000 per month, the maximum rental payment under the restructured lease agreement.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 14 – INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company established a valuation allowance for the full amount of the net deferred tax asset as management currently does not believe that it is more likely than not that these assets will be recovered in the foreseeable future. The increase in the valuation allowance was approximately $220,000 and $2.9 million at March 31, 2016 and December 31, 2015, respectively. The net operating loss at March 31, 2016 was approximately $15.4 million, and at December 31, 2015 the net operating loss was approximately $14.6 million, and begins to expire in 2020 and fully expires in 2035.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 15 – SUBSEQUENT EVENTS On April 5, 2016, the Company entered into an agreement with Sher that restructured the existing secured promissory note ($2,854,000) plus accrued interest ($142,700) and a $250,000 restructuring fee, (the “Restructuring”), with an amended and restated note totaling $3,246,700. The terms of that Restructuring are that the Company will pay $1,000,000 to Sher by April 11, 2016. In order to pay the $1,000,000 to Sher, the Company entered into a convertible debenture with Hillair on April 6, 2016, totaling $1,150,206, with interest accruing at 8% per annum, due and payable on March 1, 2018. The Hillair debenture will be convertible into 38,340,200 shares of the Company's stock at $0.03 per share. The remaining balance on the Sher Note of $2,246,700 at 15% interest per annum will be due and payable on April 3, 2018. Further, commencing with the quarter ending June 30, 2016, and at each year end, we will pay Sher, within 10 days of issuing our quarterly report on Form 10-Q or annual report on Form 10-K, 20% of any positive net operating cash flows for the quarter as presented on the Statement of Cash Flows for the particular quarter. The Sher Note will remain collateralized by the same collateral as the original promissory note to Sher, subject to sales of such collateral by the Company reducing the principal balance of the note with proceeds of such collateral sales. As a result of the restructuring, the note has been reclassified to long-term debt on the Company's March 31, 2016 and December 31, 2015 balance sheet. On April 8, 2016, the Company entered into a trailer purchase agreement with Southwest Truck & Trailer, Inc. The Company purchased 6 trailers valued at $217,369. The Company paid $32,400 at closing and entered into a financing agreement for the remaining balance. The agreement calls for monthly payments of $5,138 for 36 months commencing on April 8, 2016 with the balance due on April 8, 2019.

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements for the three month period ended and at March 31, 2016 include the accounts of the Company, and our wholly-owned subsidiary, Black Diamond Energy Holdings, LLC and its wholly-owned subsidiaries Maxxon Energy, LLC and Treeline Diesel Center, LLC. Intercompany transactions and balances have been eliminated in consolidation.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements of the Company, have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes thereto contained in Legend’s latest Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate disclosures contained in the audited financial statements for the most recent fiscal year, as reported in the Form 10-K filed with the SEC on April 7, 2016, have been omitted.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Management’s judgments and estimates in these areas are to be based on information available from both internal and external sources, consultants and historical experience in similar matters. The more significant reporting areas impacted by management’s judgments and estimates are fair values of the Company’s equity-linked instruments, accruals related to revenues and expenses, estimates used in the impairment of property, plant and equipment, and the estimated future timing and cost of asset retirement obligations. Actual results could differ from the estimates as additional information becomes known.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all highly liquid short-term investments with original maturities of three months or less to be cash equivalents.
Concentrations	Concentrations During the three month period ended March 31, 2016, crude hauling revenue from Statoil ASA (“Statoil”) and Inland Slawson represents 84% and 9%, respectively, of our crude oil hauling business. We believe that the loss of Statoil as a customer would result in a material adverse effect to our company's financial results. Financial instruments which potentially subject the Company to concentrations of credit risk include cash deposits placed with financial institutions. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits as guaranteed by the Federal Deposit Insurance Corporation (FDIC). At March 31, 2016, $669 of the Company's cash balances were uninsured. The Company has not experienced any losses on such accounts.
Accounts Receivable	Accounts Receivable Accounts receivable typically consist of crude oil hauling customer receivables, and are presented on the consolidated balance sheets net of allowances for doubtful accounts. The Company establishes provisions for losses on accounts receivable for estimated uncollectible accounts and regularly review collectability and establishes or adjusts the allowance as necessary using the specific identification method. Account balances that are deemed uncollectible are charged off against the allowance. No allowance for doubtful accounts was necessary as of either March 31, 2016 or December 31, 2015.
Prepaid Expense	Prepaid Expense Prepaid expenses consist primarily of prepaid insurance premiums. The Company amortizes these prepayments to expense over the life of the policy.
Assets held for sale	Assets held for sale Long-lived assets that are expected to be recovered through a sale or disposition are classified as held for sale. Assets classified as held for sale are evaluated for impairment using the lower of fair value less disposal costs and carrying value. Assets held for sale are not depreciated. During the three months ended March 31, 2016 and 2015, no impairment loss was recorded.
Equipment	Equipment Equipment is stated at cost less accumulated depreciation and amortization. Maintenance and repairs are charged to expense as incurred. Renewals and betterments which extend the life or improve existing equipment are capitalized. Upon disposition or retirement of equipment, the cost and related accumulated depreciation are removed and any resulting gain or loss is reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are 5-7 years.
Intangibles	Intangibles Intangible assets are comprised of a customer list, a trademark and a non-compete agreement obtained in the acquisition of Maxxon during the year ended December 31, 2015. The intangible assets are amortized on a straight-line basis over the assets’ respective life, ranging from 36 months to 120 months.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost-carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of the asset by estimating the future net undiscounted cash flows expected to result from the asset, including eventual disposition. If the future net undiscounted cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and estimated fair value.
Asset Retirement Obligations	Asset Retirement Obligation The Company records the fair value of a liability for an asset retirement obligation in the period in which the asset is acquired and a corresponding increase in the carrying amount of the related long-lived asset if a reasonable estimate of fair value can be made. The associated asset retirement cost capitalized as part of the related asset is allocated to expense over the asset’s useful life. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized. The asset retirement obligation is recorded at its estimated fair value and accretion is recognized over time as the discounted liability is accreted to its expected settlement value. Fair value is determined by using the expected future cash outflows discounted at our credit-adjusted risk-free interest rate. The asset retirement obligation and the accompanying consolidated balance sheet at both March 31, 2016 and December 31, 2015, is related to our nonproducing Van Pelt lease in Oklahoma.
Oil Hauling and Service Revenue Recognition	Oil Hauling and Service Revenue Recognition Our wholly-owned subsidiary, Maxxon, recognizes revenue based on the relative transit time of the freight transported and as other services are provided. Accordingly, a portion of the total revenue that will be billed to the customer once a load is delivered is recognized in each reporting period based on the percentage of the freight pickup and delivery service that has been completed at the end of the reporting period. The Company records revenues on the gross basis at amounts charged to its customers because the Company is the primary obligor, a principal in the transaction, it invoices its customers and retains all credit risks, and maintains discretion over pricing. Additionally, the Company is responsible for the selection of third-party transportation providers. Independent contractor providers of revenue equipment are classified as purchased transportation expense in the consolidated statements of operations.
Income Taxes	Income Taxes The Company recognizes income taxes on an accrual basis based on a tax position taken or expected to be taken in its tax returns. A tax position is defined as a position in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected in measuring current or deferred income tax assets or liabilities. Tax positions are recognized only when it is more likely than not (i.e., likelihood of greater than 50%), based on technical merits, that the position would be sustained upon examination by taxing authorities. Tax positions that meet the more likely than not threshold are measured using a probability-weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. A valuation allowance is established to reduce deferred tax assets if all, or some portion, of such assets will more likely than not be realized. A valuation allowance for the full amount of the net deferred tax asset was recorded for the three month period ended march 31, 2016 and December 31, 2015. Should they occur, interest and penalties related to tax positions would be recorded as interest expense. No such interest or penalties have been incurred as of either March 31, 2016 or December 31, 2015. The Company is no longer subject to federal examination for years before 2008.
Stock-based compensation	Stock-based compensation The Company measures compensation cost for stock-based payment awards at fair value and recognizes it as compensation expense over the service period for awards expected to vest. Legend’s policy is to issue new shares when options are exercised. Compensation cost from the issuance of stock options and stock grants is recorded as a component of general and administrative expenses in the consolidated statements of operations, and amounted to $30,000 and -0- for three months ended March 31, 2016 and 2015, respectively. The Black-Scholes option pricing model is used to estimate the fair value of employee stock option awards at the date of grant, which requires the input of highly subjective assumptions, including expected volatility and expected life. Changes in these inputs and assumptions can materially affect the measure of estimated fair value of our share-based compensation. These assumptions are subjective and generally require significant analysis and judgment to develop. When estimating fair value, some of the assumptions will be based on, or determined from, external data and other assumptions may be derived from our historical experience with stock-based payment arrangements. The appropriate weight to place on historical experience is a matter of judgment, based on relevant facts and circumstances. The Company estimates volatility by considering the historical stock volatility. The Company has opted to use the simplified method for estimating expected term, which is generally equal to the midpoint between the vesting period and the contractual term.
Net Loss Per Common Share	Net Loss Per Common Share The computation of basic net loss per common share is based on the weighted average number of shares that were outstanding during the period, including contingently redeemable common stock. The computation of diluted net loss per common share is based on the weighted average number of shares used in the basic net loss per share calculation plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares outstanding. Potentially dilutive common shares include convertible preferred stock and convertible debentures. March 31, March 31, Potentially dilutive of common stock equivalents: Options — — Convertible Debt 61,672,933 20,348,718 Convertible preferred stock 327,499,200 —
Derivative Financial Instruments	Derivative Financial Instruments The Company evaluates financial instruments for freestanding or embedded derivatives. Derivative instruments that do not qualify for permanent equity classification as the instruments have been determined not to be indexed to the Company’s stock are recorded as liabilities at fair value, with changes in value recognized as other income (expense) in the consolidated statements of operations in the period of change. Derivative liabilities are categorized as either short-term or long-term based upon management’s estimates as to when the derivative instrument may be realized or based upon the holder’s ability to realize the instrument.
Fair Value Measurements	Fair Value Measurements The Company follows FASB ASC 820, Fair Value Measurement (“ASC 820”), which clarifies fair value as an exit price, establishes a hierarchal disclosure framework for measuring fair value, and requires extended disclosures about fair value measurements. The provisions of ASC 820 apply to all financial assets and liabilities measured at fair value. As defined in ASC 820, fair value, clarified as an exit price, represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a result, fair value is a market-based approach that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering these assumptions, ASC 820 defines a three-tier value hierarchy that prioritizes the inputs used in the valuation methodologies in measuring fair value. Level 1: Observable market inputs such as quoted prices in active markets; Level 2: Observable market inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs where there is little or no market data, which require the reporting entity to develop its own assumptions.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed below, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In May 2014, FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers In April 2015, FASB issued Accounting Standards Update No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In November 2015, FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-2, Leases
Subsequent Events	Subsequent Events The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration.

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2016
Summary Of Significant Accounting Policies Tables
Schedule of net loss per common share	March 31, March 31, Potentially dilutive of common stock equivalents: Options — — Convertible Debt 61,672,933 20,348,718 Convertible preferred stock

ACQUISITION OF MAXXON (Tables)

ACQUISITION OF MAXXON (Tables)	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Purchase price and allocation of the purchase price to the net assets acquired	Purchase price on April 4, 2015 Cash paid $ 1,625,000 Promissory note 2,854,000 Fair value of common stock issued 861,300 Total purchase price 5,340,300 Fair value of net assets at April 4, 2015 Cash $ 435,339 Accounts receivable 1,063,629 Inventory 207,437 Prepaid and other current assets 199,132 Property and equipment 3,188,615 Intangibles 354,000 Goodwill 438,106 Total assets 5,886,258 Accounts payable (455,632 ) Other current liabilities (90,326 ) Total liabilities (545,958 ) Net assets acquired $ 5,340,300

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of capitalized costs related to oil and gas property	The amount of capitalized costs related to property and equipment and the amount of related accumulated depreciation and impairment are as follows: March 31, December 31, 2016 2015 Drilling rig $ — $ 465,000 Trucks, trailers, and vehicles 3,764,315 3,488,246 Furniture and equipment 444,713 444,713 Property and equipment, at cost 4,209,028 4,397,959 Accumulated depreciation (657,755 ) (562,270 ) Accumulated impairment (224,835 ) (224,835 ) Property and equipment, net $ 3,326,438 $ 3,610,854

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of acquired intangibles	Below is a summary of the cost attributable to the acquired intangibles. March 31, December 31, 2016 2015 Non-compete agreement $ 39,200 $ 39,200 Trademark 47,800 47,800 Customer relationships 267,000 267,000 Goodwill 438,106 438,106 Total intangible assets 792,106 792,106 Accumulated amortization of intangible assets (48,921 ) (36,758 ) Accumulated impairment of intangible assets (438,106 ) (438,106 ) Net Intangible assets ending balance, March 31 305,079 317,242

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of notes payable	Notes payable consist of the following: March 31, 2016 December 31, 2015 a) On October 28, 2013, a vendor filed a complaint against the Company seeking to collect $68,913, plus interest at 12% for services rendered on or before November 30, 2012. This claim has been satisfactorily resolved between the parties, and Legend is remitting $2,500 per month in settlement of this claim, until such balance is fully repaid. During the three months ended March 31, 2016, the Company made principal payments of $7,500 and capitalized $757 of interest expense to the principal balance. During the year ended December 31, 2015, the Company made principal payments of $30,000 and capitalized $5,199 of interest expense to the principal balance. $ 39,063 $ 45,805 b) On April 1, 2014, the Company issued a note payable to New Western Energy Corporation (“NWTR”) for $75,000 as part of the plan for merger with NWTR. The note has no interest provision and was due on February 28, 2015. On January 6, 2015, the Company entered into a settlement with NWTR to repay the remainder of principal in 5 installments starting on February 15, 2015. The Company made aggregate principal and interest payments of $38,336 during the year ended December 31, 2015. No payments have been made to NWTR during the quarter ended March 31 2016. The note was in default as of March 31, 2016, but the Company has not received a default notice from NWTR. 26,664 26,664 c) On June 19, 2014, a vendor filed a complaint against the Company seeking to collect $35,787, plus interest at 12% for services rendered. This claim has been satisfactorily resolved between the parties, and Legend previously remitted $2,000 per month in settlement of this claim, until such balance was fully repaid. During the three months ended March 31, 2016, the Company repaid this note, including accrued interest, in full. During the year ended December 31, 2015, the Company made principal payments of $22,000 and capitalized $1,402 of interest expense to the principal balance. 2,782 3,041 d) On October 20, 2014, the Company issued a note payable for the purchase of drilling rig for $315,000. The note bears interest at 6% per annum and was due on April 12, 2016. The Company is required to make monthly payment of $18,343. The Company made aggregate principal and interest payments of $55,029 and $219,208 for the three months ended March 31, 2016 and year ended December 31, 2015. This note is fully repaid at the date of this report. 19,160 73,372 e) On April 3, 2015, as part of the Maxxon acquisition, the Company issued a secured promissory note to Sher Trucking in the amount of $2,854,000. The note bears interest at 5% per annum and was due in full on April 3, 2016. On April 5, 2016, the Company entered into an agreement with Sher that restructured the secured promissory note ($2,854,000), with a restructuring fee ($250,000) plus accrued interest ($142,700) (the “Restructuring”), totaling $3,246,700 to Sher. The terms of that Restructuring are that (1) the Company will paid $1,000,000 to Sher by April 8, 2016 (the Company entered into a debenture with Hillair that nets to $1,000,000 in cash proceeds to the Company, which was paid by us directly to Sher; (2) the remaining balance on the Sher Note of $2,256,700 at 15% interest per annum, will be due and payable on April 3, 2018; (3) the Company included a restructuring fee of $250,000 in the principal balance of the note which is due on April 3, 2018; and, (4) the Sher Note will remain collateralized by the same collateral as the original promissory note to Sher. 2,854,000 2,854,000 f) On November 1, 2015, the Company purchased three trucks from A&H Sterling Energy, LLC. The trucks were financed by A&H Sterling Energy, LLC with an outstanding promissory note in the aggregate amount of $96,407 owed to Cunard Holdings LLC. The Company assumed the outstanding promissory note as part of the acquisition. The note bears interest at 7% and is due on January 1, 2018. 78,996 89,511 g) On October 19, 2015, the Company entered into secured note agreement with a financial institution for the purchase of a vehicle in the amount of $118,110. The notes bore interest at 5.99% and was due on December 3, 2020. In February 2016, the Company traded in the vehicle for a new vehicle. As part of the trade in, the note was settled and a new note was issued with a principal of $135,278 with interest at 3.99% and is due on April 1, 2021. 135,278 116,411 h) On November 12, 2015, the Company entered into a secured note agreement with a financial institution for the purchase of vehicle in the amount of $57,106. The notes bears interest at 3.99% and was due on November 12, 2020. In February 2016, the Company traded in the vehicle for a new vehicle. As part of the trade in, the note was settled and a new note was issued with a principal of $76,380 with interest at 3.90% and is due on April 5, 2021. 76,380 55,843 i) On December 16, 2015, the Company entered into a secured line of credit facility with State Bank and Trust Company in the aggregate amount of $275,000. The facility bears interest at 4% and due on December 16, 2016. The note is collateralized by certain property of Maxxon. During the three months ended March 31, 2016, the Company drew $70,000 and paid interest of $1,369 on this line of credit. 170,000 100,000 j) In January 2016, the Company entered into a forebearance agreement to transfer amounts owed on a credit card to Origin Bank into a note agreement, in the aggregate amount of $40,850. The note bears interest at 4% per annum and is payable in 12 monthly payments beginning April 15, 2016 of $3,000 per month with the remaining balance and accrued interest due on April 15, 2017. 40,850 — k) In March 2016, the Company entered into a financing agreement to purchase trailers from a third party. The trailers’ purchase price was $278,636. The Company paid $28,000 as a down payment and financed the remaining balance of $250,636. The financing requires monthly payments of $6,962 for the next 3 years and has a 0% interest rate. 250,636 — l) During the three months ended March 31, 2016, the Company entered into various insurance financing agreements in the aggregate amount of $146,786. The agreements are payable in nine monthly payments and accrue interest at 4.61% per annum. The Company made payments of $114,830 in principal and interest on these financing agreements. 32,921 — Total $ 3,726,731 $ 3,364,647 Less short term debt 256,819 (249,348 Less current portion of long term debt 1,230,187 (1,074,781 ) Long term debt $ 2,239,725 $ 2,040,518

EMBEDDED DERIVATIVE LIABILITI27

EMBEDDED DERIVATIVE LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of reconciliation of embedded derivative liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)	The following table is a reconciliation of embedded derivative liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2015. There were no embedded derivative liabilities recorded during the three months ended March 31, 2016. Embedded Balance, January 1, 2015 $ 1,128,667 Fair value of warrants issued — Fair value upon conversion of preferred stock to common stock (7,680,000 ) Change in fair value 6,551,333 Balance, March 31, 2015 $ —
Summary of significant unobservable inputs in determining fair value	A summary of quantitative information with respect to valuation methodology, estimated using a Black-Scholes model, and significant unobservable inputs used for the Company’s embedded derivative liabilities for the year ended December 31, 2015 is as follows: Expected dividend yield — Strike price $0.001-0.01 Expected stock price volatility 196.27-218.76 % Risk-free interest rate 1.52-1.78 % Expected term (in years) 4-5

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	3 Months Ended
	Mar. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
Schedule of operations related to the discontinued operations	The table below summarizes the operations of the Company’s oil and gas activities for the three months ended March 31, 2106 and 2015. March 31, 2016 March 31, 2015 Revenues $ — $ 170,015 Production expenses — 205,167 Operating expenses 2,967 29,877 Depletion, depreciation, and amortization — 53,899 Loss on sale of oil and gas properties — 892,131 Impairment loss on oil and gas properties — 406,558 Loss from discontinued operations $ (2,967 ) $ (1,417,617 )

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum lease payments	Future minimum lease payments for the trailer lease as of the three months ended March 31, 2016 are as follows: 2016 $ 313,519 2017 365,526 Thereafter 450,722 Total net minimum payments $ 1,129,767

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Uninsured cash	$ 669
Equipment useful life	5 years
Stock-based compensation	$ 30,000	$ 0
Minimum [Member] | Intangible Assets [Member]
Intangible assets useful life	36 months
Maximum [Member] | Intangible Assets [Member]
Intangible assets useful life	120 months
Property And Equipment [Member] | Minimum [Member]
Equipment useful life	5 years
Property And Equipment [Member] | Maximum [Member]
Equipment useful life	7 years
Sales [Member] | Statoil [Member]
Concentration risk	84.00%
Sales [Member] | Inland Slawson [Member]
Concentration risk	9.00%

SUMMARY OF SIGNIFICANT ACCOUN31

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Convertible Debt [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive of common stock equivalents	61,672,933	20,348,718
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive of common stock equivalents	327,499,200

GOING CONCERN (Details Narrativ

GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Loss from continuing operations	$ (789,366)	$ (7,493,459)	$ (14,989,835)
Working capital	$ (695,869)		$ (1,437,979)

ACQUISITION OF MAXXON (Details

ACQUISITION OF MAXXON (Details Narrative) - USD ($)	Apr. 03, 2015	Mar. 31, 2016	Apr. 04, 2015
Cash			$ 435,339
Debt face amount		$ 211,658
Membership Interest Purchase Agreement [Member] | Maxxon Energy [Member] | Sher Trucking, LLC [Member]
Cash	$ 1,500,000
Additional payamet towards acquisition	125,000
Membership Interest Purchase Agreement [Member] | Maxxon Energy [Member] | Sher Trucking, LLC [Member] | 5% Secured Promissory Note Due April 3, 2016 [Member]
Debt face amount	$ 2,854,000
Interest Rate	5.00%
Membership Interest Purchase Agreement [Member] | Maxxon Energy [Member] | Albert Valentin [Member]
Number of shares issued upon acquisition	90,817,356
Value of shares issued upon acquisition	$ 526,741
Membership Interest Purchase Agreement [Member] | Maxxon Energy [Member] | Steven Wallace [Member]
Number of shares issued upon acquisition	57,682,644
Value of shares issued upon acquisition	$ 334,559

ACQUISITION OF MAXXON (Details)

ACQUISITION OF MAXXON (Details)	Apr. 04, 2015USD ($)
Business Combinations [Abstract]
Cash paid	$ 1,625,000
Promissory note	2,854,000
Fair value of common stock issued	861,300
Total purchase price	5,340,300
Cash	435,339
Accounts receivable	1,063,629
Inventory	207,437
Prepaid and other current assets	199,132
Property and equipment	3,188,615
Intangibles	354,000
Goodwill	438,106
Total assets	5,886,258
Accounts payable	(455,632)
Other current liabilities	(90,326)
Total liabilities	(545,958)
Net assets acquired	$ 5,340,300

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Useful lives of assets	5 years
Depreciation	$ 178,145	$ 0
Carrying value of vehicles exchanged	184,439
Purchase price of new vehicles	198,211
Debt principal amount extinguised with exchange	166,614
Liabilities assumed on new vehicles	211,658
Loss on disposition of equipment	(31,272)
Impairment of property, plant, and equipment			$ 224,835
Trailers [Member]
Purchase price of new vehicles	278,636
Cash paid for the purchase of fixed assets	$ 28,000
Periodic payment frequency	Monthly
Periodic payment	$ 6,962
Debt term	3 years
Debt interest rate	0.00%

PROPERTY AND EQUIPMENT (Detai36

PROPERTY AND EQUIPMENT (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,209,028	$ 4,397,959
Accumulated depreciation	(657,755)	(562,270)
Accumulated impairment	(224,835)	(224,835)
Property and equipment, net	3,326,438	3,610,854
Drilling Rig [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross		465,000
Trucks, Trailers and Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,764,315	3,488,246
Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 444,713	$ 444,713

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 438,106	$ 438,106
Amortization of intangible assets	$ 12,163

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Goodwill, gross	$ 438,106	$ 438,106
Intangible assets, gross, including goodwill	792,106	792,106
Accumulated amortization of intangible assets	(48,921)	(36,758)
Accumulated impairment of intangible assets	(438,106)	(438,106)
Net Intangible assets ending balance, including goodwill	305,079	317,242
Noncompete Agreements [Member]
Intangible assets, gross, excluding goodwill	39,200	39,200
Trademark [Member]
Intangible assets, gross, excluding goodwill	47,800	47,800
Customer Relationships [Member]
Intangible assets, gross, excluding goodwill	$ 267,000	$ 267,000

ASSET RETIREMENT OBLIGATION (De

ASSET RETIREMENT OBLIGATION (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations	$ 118,425		$ 96,129
Accretion of asset retirement obligation	$ 22,296	$ 2,385

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative)	Oct. 22, 2015USD ($)N$ / sharesshares	May. 01, 2015shares	Mar. 31, 2016USD ($)N$ / shares	Mar. 31, 2016USD ($)N$ / shares	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Proceeds from senior debt				$ 990,000
Debt face amount			$ 211,658	211,658
Amortization of debt discount				15,562	$ 26,252
Hillair Senior Secured Convertible Note Payable [Member]
Debt face amount	$ 654,000
Debt interest rate	8.00%
Conversion price (in dollars per share) | $ / shares	$ 0.03
Maturity date of debt	Mar. 1, 2017
Number of equity instruments for convertible | N	21,800,000
Discount and legal and diligence fees	$ 104,000
Proceeds from convertible debt	$ 550,000
Hillair Senior Secured Convertible Note Payable [Member]
Debt face amount			$ 1,439,400	$ 1,439,400
Debt interest rate			8.00%	8.00%
Conversion price (in dollars per share) | $ / shares			$ 0.03	$ 0.03
Number of equity instruments for convertible | N			47,980,000	381,313,333
Proceeds from convertible debt			$ 630,000	$ 630,000
Hillair Senior Secured Convertible Note Payable [Member]
Debt face amount			$ 410,788	$ 410,788
Debt interest rate			8.00%	8.00%
Conversion price (in dollars per share) | $ / shares			$ 0.03	$ 0.03
Number of equity instruments for convertible | N				13,692,933
Discount and legal and diligence fees			$ 50,788	$ 50,788
Proceeds from convertible debt				$ 360,000
Series A Convertible Preferred Stock [Member]
Shares converted | shares		(600)
Common Stock [Member]
Shares converted | shares		600,000,000
Series B Preferred Stock [Member]
Shares issued | shares	9,643
Preferred stock conversion price	$0.03 per share
Debentures satisfied with issuance of stock	$ 9,824,976
Total common shares that preferred shares can be converted into | shares	327,499,200
Hillair Senior Debentures [Member]
Proceeds from senior debt						$ 9,824,976
Hillair Senior Debentures [Member] | Minimum [Member]
Debt interest rate						8.00%
Hillair Senior Debentures [Member] | Maximum [Member]
Debt interest rate						8.50%
NPE [Member]
Repayment related party					$ 120,000	$ 180,400
Brokerage fees						55,000
Forgiveness of debt						451,600
Due to related parties						$ 120,000

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Apr. 05, 2016
Debt face amount	$ 211,658
Accrued interest payable	$ 143,530		$ 106,505
Preferred stock price per share	$ 0.001		$ .001
Repayments of short term debt	$ 201,367
Interest expense	$ 74,988	$ 309,978
Vendor #1 [Member]
Interest rate	12.00%
Vendor complaint amount	$ 68,913
Debt payment amount	2,500
Capitalized interest	757		$ 5,199
Repayment of other payable	7,500		30,000
NWTR [Member]
Debt face amount	75,000
Repayment of other payable	$ 0		38,336
Vendor #2 [Member]
Interest rate	12.00%
Vendor complaint amount	$ 35,787
Debt payment amount	2,000
Capitalized interest			1,402
Repayment of other payable			22,000
Drilling Rig Note [Member]
Debt face amount	$ 315,000
Interest rate	6.00%
Debt payment amount	$ 18,343
Repayment of other payable	55,029		219,208
Sher Trucking [Member]
Debt face amount	$ 2,854,000
Interest rate	5.00%
Sher Trucking [Member] | Subsequent Event [Member]
Debt face amount	$ 3,246,700
Sher Trucking Restructured Note [Member] | Subsequent Event [Member]
Debt face amount				$ 2,996,700
Accrued interest payable				$ 142,700
Interest rate				15.00%
Resturcturing fee payable				$ 250,000
Long term debt due in year one				$ 1,000,000
A&H Sterling Energy Note [Member]
Debt face amount	$ 96,407
Interest rate	7.00%
Financial Instution Secured Note #1 [Member]
Debt face amount	$ 135,278		$ 118,110
Interest rate	3.99%		5.99%
Financial Institution Secured Note #2 [Member]
Debt face amount	$ 76,380		$ 57,106
Interest rate	3.90%		3.99%
State Bank and Trust Company [Member]
Interest rate	4.00%
Line of credit - borrowing capacity	$ 275,000
Proceeds from line of credit	70,000
Interest expense	1,369
Origin Bank Note [Member]
Debt face amount	$ 40,850
Interest rate	4.00%
Debt payment amount	$ 3,000
Trailer Purchase Note [Member]
Debt face amount	$ 250,636
Interest rate	0.00%
Insurance Financing Agreements [Member]
Debt face amount	$ 146,786
Interest rate	4.61%
Repayment of other payable	$ 114,830

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Notes payable	$ 3,726,731	$ 3,364,647
Less short term	256,819	249,348
Less current portion of long term	(1,230,187)	(1,074,781)
Long term	2,239,725	2,040,518
Vendor #1 [Member]
Notes payable	39,063	45,805
NWTR [Member]
Notes payable	26,664	26,664
Vendor #2 [Member]
Notes payable	2,782	3,041
Drilling Rig Note [Member]
Notes payable	19,160	73,372
Sher Trucking [Member]
Notes payable	2,854,000	2,854,000
A&H Sterling Energy Note [Member]
Notes payable	78,996	89,511
Financial Instution Secured Note #1 [Member]
Notes payable	135,278	116,411
Financial Institution Secured Note #2 [Member]
Notes payable	76,380	55,843
State Bank and Trust Company [Member]
Notes payable	170,000	$ 100,000
Origin Bank Note [Member]
Notes payable	40,850
Trailer Purchase Note [Member]
Notes payable	250,636
Insurance Financing Agreements [Member]
Notes payable	$ 32,921

CONVERTIBLE DEBT (Details Narra

CONVERTIBLE DEBT (Details Narrative)	Oct. 22, 2015USD ($)N$ / shares	Oct. 02, 2015USD ($)	Mar. 31, 2016USD ($)N$ / shares	Mar. 31, 2016USD ($)N$ / shares	Dec. 31, 2015USD ($)$ / shares
Debt face amount			$ 211,658	$ 211,658
Hillair Various Senior Secured Convertible Debenture [Member]
Interest rate					8.00%
Debt face amount					$ 1,396,000
Conversion price (in dollars per share) | $ / shares					$ 0.03
Proceeds from convertible debt				1,200,000
Amount of debt converted - principal				9,642,546
Amount of debt converted - interest				$ 182,430
Hillair Senior Secured Convertible Note Payable [Member]
Interest rate	8.00%
Debt face amount	$ 654,000
Conversion price (in dollars per share) | $ / shares	$ 0.03
Number of equity instruments for convertible | N	21,800,000
Proceeds from convertible debt	$ 550,000
Hillair Senior Secured Convertible Note Payable [Member] | Series B Preferred Stock [Member]
Amount of debt converted - principal		$ 1,396,000
Amount of debt converted - interest		$ 45,675
Hillair Senior Secured Convertible Note Payable [Member]
Interest rate			8.00%	8.00%
Debt face amount			$ 1,439,400	$ 1,439,400
Conversion price (in dollars per share) | $ / shares			$ 0.03	$ 0.03
Number of equity instruments for convertible | N			47,980,000	381,313,333
Debt unamortized discount			$ 155,400	$ 155,400
Proceeds from convertible debt			630,000	$ 630,000
Legal and diligence fees			$ 30,000
Hillair Senior Secured Convertible Note Payable [Member]
Interest rate			8.00%	8.00%
Debt face amount			$ 410,788	$ 410,788
Conversion price (in dollars per share) | $ / shares			$ 0.03	$ 0.03
Number of equity instruments for convertible | N				13,692,933
Debt unamortized discount			$ 50,788	$ 50,788
Convertible debt			$ 564,677	564,677
Proceeds from convertible debt				360,000
Legal and diligence fees				$ 15,000

CONVERTIBLE DEBT (Details)

CONVERTIBLE DEBT (Details)	Mar. 31, 2016USD ($)
Hillair Senior Secured Convertible Note Payable [Member]
Convertible debt	$ 564,677

EMBEDDED DERIVATIVE LIABILITI45

EMBEDDED DERIVATIVE LIABILITIES (Details Narrative)	Dec. 31, 2015$ / shares
Series A Convertible Preferred Stock [Member]
Share price	$ 0.0128

EMBEDDED DERIVATIVE LIABILITI46

EMBEDDED DERIVATIVE LIABILITIES (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Begining balance	$ 1,128,667
Fair value upon conversion of preferred stock to common stock	(7,680,000)
Changes in fair value	$ 6,551,333

EMBEDDED DERIVATIVE LIABILITI47

EMBEDDED DERIVATIVE LIABILITIES (Details 1)	12 Months Ended
	Dec. 31, 2015$ / shares
Minimum [Member]
Strike price	$ 0.001
Expected stock price volatility	196.27%
Risk free interest rate	1.52%
Expected term (in years)	4 years
Maximum [Member]
Strike price	$ 0.01
Expected stock price volatility	218.76%
Risk free interest rate	1.78%
Expected term (in years)	5 years

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT) (Details Narrative) - USD ($)	1 Months Ended			3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Apr. 30, 2015	Mar. 31, 2016	May. 31, 2015
Preferred stock, shares authorized	100,000,000	100,000,000		100,000,000
Common stock, shares authorized	4,900,000,000	4,900,000,000		4,900,000,000
Common stock par value (in dollars per share)	$ 0.001	$ 0.001		$ 0.001
Convertible preferred stock dividend rate				0.00%
Number of shares upon conversion					600,000,000
Convertible conversion price (in dollars per share)					$ 0.0001
Discount rate				1.80%
Expected stock price volatility				217.70%
Hillair Various Senior Secured Convertible Debenture [Member]
Amount of debt converted - principal				$ 9,642,546
Amount of debt converted - interest				$ 182,430
Valentin [Member]
Fair value of stock issued in acquisition			$ 526,741
Fair value of stock issued in acquisition, shares			90,817,356
Wallace [Member]
Fair value of stock issued in acquisition		$ 334,559
Fair value of stock issued in acquisition, shares		57,682,644
Employee [Member]
Fair value of stock issued in acquisition	$ 10,800
Fair value of stock issued in acquisition, shares	6,000,000

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details Narrative) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
Total assets of discontinued operations	$ 0	$ 0
Total liabilities of discontinuted operations	$ 0	$ 0

DISCONTINUED OPERATIONS (Deta50

DISCONTINUED OPERATIONS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss from discontinued operations	$ (2,967)	$ (1,417,617)
Legend Canada [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues		170,015
Production expenses		205,167
Operating expenses	2,967	29,877
Depletion, depreciation, and amortization		53,899
Loss on sale of oil and gas properties		892,131
Impairment loss on oil and gas properties		406,558
Loss from discontinued operations	$ (2,967)	$ (1,417,617)

COMMITMENTS AND CONTINGENCIES51

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	Oct. 28, 2013	Mar. 31, 2016
Property taxes, penalties & interest, owed		$ 9,266
Property taxes, penalties & interest monthly payment		500
Carrying value of equipment sold		184,439
Gain (loss) on sale of equipment		(31,272)
Purchase of equipment		198,211
Trailer Lease [Member]
Monthly rental payments due		$ 17,500
Lease term		28 months
Trailer Lease [Member]
Monthly rental payments due		$ 17,335
Lease term		48 months
Office Lease [Member]
Monthly rental payments due		$ 2,200
Lease term		60 months
RR Donnelly & Sons [Member]
Amount sought in litigation	$ 68,913
Settlement - monthly amount payable	$ 2,500

COMMITMENTS AND CONTINGENCIES52

COMMITMENTS AND CONTINGENCIES (Details) - Trailer Lease [Member]	Mar. 31, 2016USD ($)
2,016	$ 313,519
2,017	365,525
Thereafter	450,722
Net minimum lease payments	$ 1,129,766

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Increase in valuation allowance	$ 220,000	$ 2,900,000
Operating loss carryforwards	$ 15,400,000	$ 14,600,000

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	2 Months Ended	3 Months Ended
	Mar. 31, 2016USD ($)$ / shares	Mar. 31, 2016USD ($)$ / sharesshares
Debt face amount	$ 211,658	$ 211,658
Purchase price of new vehicles		$ 198,211
Trailers [Member]
Interest rate	0.00%	0.00%
Purchase price of new vehicles		$ 278,636
Cash paid for the purchase of fixed assets		28,000
Periodic payment		$ 6,962
Debt term		3 years
Hillair Senior Secured Convertible Note Payable [Member]
Debt face amount	$ 1,439,400	$ 1,439,400
Interest rate	8.00%	8.00%
Conversion price (in dollars per share) | $ / shares	$ 0.03	$ 0.03
Proceeds from convertible debt	$ 630,000	$ 630,000
Sher Trucking [Member]
Debt face amount	$ 2,854,000	$ 2,854,000
Interest rate	5.00%	5.00%
Subsequent Event [Member] | Trailers [Member]
Purchase price of new vehicles		$ 271,369
Cash paid for the purchase of fixed assets		32,400
Periodic payment		$ 5,138
Debt term		36 months
Subsequent Event [Member] | Hillair Senior Secured Convertible Note Payable [Member]
Debt face amount	$ 1,150,206	$ 1,150,206
Interest rate	8.00%	8.00%
Convertible amount of shares | shares		38,340,200
Conversion price (in dollars per share) | $ / shares	$ 0.03	$ 0.03
Debt maturity date		Mar. 1, 2018
Subsequent Event [Member] | Sher Trucking [Member]
Debt face amount	$ 3,246,700	$ 3,246,700
Number of days after filing the payment of net operating cash flows due		6 days