Allied Resources (ALOD) 10-K 31 Mar 14 2013 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Mar. 31, 2014
Document and Entity Information:	'	'
Entity Registrant Name	'ALLIED RESOURCES INC	'
Document Type	'10-K	'
Document Period End Date	31-Dec-13	'
Amendment Flag	'false	'
Entity Central Index Key	'0001211524	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	5.653011
Entity Public Float	'	$3,573,011
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'FY	'

ALLIED_RESOURCES_INC_BALANCE_S

ALLIED RESOURCES, INC BALANCE SHEETS DECEMBER 31, 2013 AND 2012 (USD $)	Dec. 31, 2013	Dec. 31, 2012
Assets, Current	'	'
Cash and Cash Equivalents, at Carrying Value	$1,390,041	$1,323,032
Accounts Receivable, Net, Current	41,800	62,096
Assets, Current	1,431,841	1,385,128
Assets, Noncurrent	'	'
Oil and gas properties (proven), net (successful efforts method)	665,560	718,627
Deposits Assets, Noncurrent	704,701	704,701
Assets	2,802,102	2,808,456
Liabilities, Current	'	'
Accounts Payable, Current	12,857	35,149
Liabilities, Current	12,857	35,149
Liabilities, Noncurrent	'	'
Asset retirement obligation	213,001	202,956
Liabilities	225,858	238,105
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	'	'
Common Stock, Value, Issued	5,653	5,653
Additional Paid in Capital, Common Stock	9,916,458	9,897,143
Retained Earnings (Accumulated Deficit)	-7,345,867	-7,332,445
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	2,576,244	2,570,351
Liabilities and Equity	$2,802,102	$2,808,456

Statement_of_Financial_Positio

Statement of Financial Position - Parenthetical Allied Resources Balance Sheets December 31, 2013 and December 31, 2012 (USD $)	Dec. 31, 2013	Dec. 31, 2012
Condensed Consolidated Balance Sheets Parenthetical	'	'
Preferred Stock, Par Value	$0	$0
Preferred Stock, Shares Authorized	0	0
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value	$0.00	$0.00
Common Stock, Shares Authorized	50,000,000	50,000,000
Common Stock, Shares Issued	5,653,011	5,653,011
Common Stock, Shares Outstanding	5,653,011	5,653,011
Common Stock, Value, Outstanding	$5,653	$5,653

ALLIED_RESOURCES_INC_STATEMENT

ALLIED RESOURCES INC STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2013 AND 2012 (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Revenues	'	'
Oil and gas Revenues	$612,759	$521,271
Revenues	612,759	521,271
Operating Expenses	'	'
Production Costs	356,304	341,250
Amortization of Deferred Charges	'	'
Depreciation Depletion and Amortization	53,067	82,117
General and Administrative Expense	220,121	234,884
Operating Expenses	629,492	658,251
Operating Income (Loss)	-16,733	-136,980
Investment Income, Nonoperating	'	'
Investment Income, Net	3,311	9,306
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	-13,422	-127,674
Net Income (Loss) Available to Common Stockholders, Basic	($13,422)	($127,674)
Earnings Per Share	'	'
Earnings Per Share, Basic and Diluted	'	($0.02)
Weighted Average Number of Shares Outstanding, Basic and Diluted	5,653,000	5,653,000

ALLIED_RESOURCES_INC_STATEMENT1

ALLIED RESOURCES, INC. STATEMENT OF CASH FLOWS YEARS ENDED DECEMBER 31, 2013 AND 2012 (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Net Cash Provided by (Used in) Operating Activities	'	'
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	($13,422)	($127,674)
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities	'	'
Depreciation and Amortization	53,067	82,117
Stock option compensation expense	19,315	38,631
Accretion Expense	10,045	7,574
Increase (Decrease) in Operating Assets	'	'
Increase (Decrease) in Receivables	20,296	10,560
Increase (Decrease) in Operating Liabilities	'	'
Increase (Decrease) in Accounts Payable	-22,292	15,923
Net Cash Provided by (Used in) Operating Activities	67,009	27,131
Cash and Cash Equivalents, Period Increase (Decrease)	67,009	27,131
CASH BEGINNING PERIOD	1,323,032	1,295,901
CASH END PERIOD	$1,390,041	$1,323,032

Consolidated_Statement_of_Shar

Consolidated Statement of Shareholders' Equity Allied Resources Years ended December 31, 2013 and 2012 (USD $)	Common Stock	Additional Paid-in Capital	Retained Earnings	Total
Stockholders' Equity, before treasury stock at Dec. 31, 2011	$5,653	$9,858,512	($7,204,771)	$2,659,394
Shares, Outstanding at Dec. 31, 2011	5,653,011	'	'	5,653,011
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs	'	38,631	'	38,631
Net Income (Loss), per basic and diluted share	'	'	($127,674)	($127,674)
Stockholders' Equity, before treasury stock at Dec. 31, 2012	5,653	9,897,143	-7,332,445	2,570,351
Shares, Outstanding at Dec. 31, 2012	5,653,011	'	'	5,653,011
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs	'	19,315	'	19,315
Net Income (Loss), per basic and diluted share	'	'	($13,422)	($13,422)
Stockholders' Equity, before treasury stock at Dec. 31, 2013	$5,653	$9,916,458	($7,345,867)	$2,576,244
Shares, Outstanding at Dec. 31, 2013	5,653,011	'	'	5,653,011

Note_1_Organization_and_Summar

Note 1 - Organization and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2013
Notes	'
Note 1 - Organization and Summary of Significant Accounting Policies	'
	Note 1 – Organization and Summary of Significant Accounting Policies
	Organization
	Allied Resources, Inc. (the Company) was incorporated on April 5, 2002. The Company is primarily engaged in the business of acquiring, developing, producing and selling oil and gas production and properties to companies located in the continental United States.
	Cash and Cash Equivalents
	For purposes of the statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less to be cash equivalents.
	Accounts Receivable
	Accounts receivable are amounts due on oil and gas sales and are unsecured. Accounts receivable are carried at their estimated collectible amounts. Credit is generally extended on a short-term basis; thus accounts receivable do not bear interest although a finance charge may be applied to such receivables that are more than thirty days past due. Accounts receivable are periodically evaluated for collectibility based on past credit history with clients. Provisions for losses on accounts receivable are determined on the basis of loss experience, known and inherent risk in the account balance, and current economic conditions.
	Concentration of Credit Risk
	The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.
	Oil and Gas Producing Activities
	The Company utilizes the successful efforts method of accounting for its oil and gas producing activities. Under this method, all costs associated with productive exploratory wells and productive or nonproductive development wells are capitalized while the costs of nonproductive exploratory wells are expensed.
	If an exploratory well finds oil and gas reserves, but a determination that such reserves can be classified as proved is not made after one year following completion of drilling, the costs of drilling are charged to operations. Indirect exploratory expenditures, including geophysical costs and annual lease rentals, are expensed as incurred. Unproved oil and gas properties that are individually significant are periodically assessed for impairment of value and a loss is recognized at the time of impairment by providing an impairment allowance. Other unproved properties are amortized based on the Company’s experience of successful drillings and average holding period. Capitalized costs of producing oil and gas properties, after considering estimated dismantlement and abandonment costs and estimated salvage values, are depreciated and depleted by the units-of-production method. Support equipment and other property and equipment are depreciated over their estimated useful lives.
	On the sale or retirement of a complete unit of a proved property, the cost and related accumulated depreciation, depletion and amortization are eliminated from the property accounts, and the resultant gain or loss is recognized. On the retirement or sale of a partial unit of proved property, the cost is charged to accumulated depreciation, depletion and amortization with a resulting gain or loss recognized in income.
	On the sale of an entire interest in an unproved property for cash or cash equivalent, gain or loss on the sale is recognized, taking into consideration the amount of any recorded impairment if the property has been assessed individually. If a partial interest in an unproved property is sold, the amount received is treated as a reduction of the cost of the interest retained.
	The continued carrying value of the Company’s oil and natural gas properties depends primarily upon the estimated reserves and the prices it receives for oil and natural gas production. Oil and natural gas prices historically have been volatile and are likely to continue to be volatile in the future. The Company’s production quantities of oil and natural gas are in decline. Any decrease in oil and natural gas prices without an offsetting increase in reserve quantities could result in an impairment of the Company’s assets.
	Current accounting standards may require companies involved in the oil and gas industry to reclassify oil and gas contract based drilling rights from tangible to intangible assets and to provide the related intangible assets disclosures under Accounting Standards Codification (ASC) 350. Since the Company does not have any contract based oil and gas drilling rights, any disclosure related to this possible requirement would not have an affect on the Company’s financial statements.
	Income Taxes
	Deferred income taxes arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or noncurrent, depending on the classification of the assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or noncurrent depending on the periods in which the temporary differences are expected to reverse.
	The Company considers many factors when evaluating and estimating its tax positions and tax benefits. Tax positions are recognized only when it is more likely than not (likelihood of greater than 50%), based on technical merits, that the positions will be sustained upon examination. Reserves are established if it is believed certain positions may be challenged and potentially disallowed. If facts and circumstances change, reserves are adjusted through the provision for income taxes. The Company recognizes interest expense and penalties related to unrecognized tax benefits with the provision for income taxes.
	Earnings Per Share
	The computation of basic earnings per common share is based on the weighted average number of shares outstanding during each year.
	The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the year plus the common stock equivalents which would arise from the exercise of stock options and warrants outstanding using the treasury stock method and the average market price per share during the year. Common stock equivalents are not included in the diluted earnings per share calculation when their effect is antidilutive.
	Revenue Recognition
	Revenue is recognized from oil sales at such time as the oil is delivered to the buyer. Revenue is recognized from gas sales when the gas passes through the pipeline at the well head. The Company believes that both oil and gas revenues should be recognized at these times because ownership of the oil and gas generally passes to the customer at these times. Management believes that this policy meets the criteria of Staff Accounting Bulletin 101 in that there is persuasive evidence of an existing contract or arrangement, delivery has occurred, the price is fixed and determinable and the collectibility is reasonably assured.
	The Company does not have any gas balancing arrangements.
	Stock-Based Compensation
	At December 31, 2013, the Company has a stock option plan, which is described more fully in Note 8. The Company accounts for stock compensation under ASC 718. This requires the Company to recognize compensation cost based on the grant date fair value of options granted.
	Use of Estimates in the Preparation of Financial Statements
	The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates.
	Significant estimates include volumes of oil and natural gas reserves used in calculating depletion of proved oil and natural gas properties, future net revenues and abandonment obligations, future taxable income and related assets/liabilities, the collectibility of outstanding accounts receivable, stock-based compensation expense, and contingencies. Oil and natural gas reserve estimates, which are the basis for unit-of-production depletion, have numerous inherent uncertainties. The accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Subsequent drilling results, testing and production may justify revision of such estimates. Accordingly, reserve estimates are often different from the quantities of oil and natural gas that are ultimately recovered. In addition, reserve estimates are vulnerable to changes in wellhead prices of crude oil and natural gas. Such prices have been volatile in the past and can be expected to be volatile in the future.
	The significant estimates are based on current assumptions that may be materially affected by changes to future economic conditions such as the market prices received for sales of volumes of oil and natural gas, the creditworthiness of counterparties,  interest rates, the market value of the Company’s common stock and corresponding volatility and the Company’s ability to generate future taxable income. Future changes to these assumptions may affect these significant estimates materially in the near term.

Note_2_Oil_and_Gas_Properties

Note 2 - Oil and Gas Properties	12 Months Ended
	Dec. 31, 2013
Notes	'
Note 2 - Oil and Gas Properties	'
	Note 2 – Oil and Gas Properties
	Oil and gas properties consist of the following:
			December 31,
			2013	2012
	Proved oil and gas properties and related equipment	$	8,513,291	8,513,291
	Asset retirement obligation		93,499	93,499
			8,606,790	8,606,790
	Accumulated depreciation, depletion, amortization
	and valuation allowances		(7,941,230)	(7,888,163)
		$	665,560	718,627

Note_3_Deposits

Note 3 - Deposits	12 Months Ended
	Dec. 31, 2013
Notes	'
Note 3 - Deposits	'
	Note 3 – Deposits
	The Company has an operating agreement with one of the operators of the Company’s oil and gas wells. Terms of the agreement allow the operator to withhold a portion of the Company’s share of revenue for possible future costs associated with the wells. The terms of the agreement require that these funds be held in escrow. As of December 31, 2013 and 2012 amounts on deposit were approximately $705,000 and $705,000, respectively.

Note_4_Asset_Retirement_Obliga

Note 4 - Asset Retirement Obligation	12 Months Ended
	Dec. 31, 2013
Notes	'
Note 4 - Asset Retirement Obligation	'
	Note 4 – Asset Retirement Obligation
	The Company is subject to certain regulations implemented to protect the environment. These regulations require that when oil and gas wells are abandoned, the owners must perform certain reclamation activities related to the oil and gas wells. Accordingly, a liability has been established equal to the present value of the Company’s estimated prorata share of the obligation. The Company has no assets that are legally restricted for the purpose of settling this obligation.
	Following is a reconciliation of the aggregate retirement liability associated with the Company’s obligation to plug and abandon its oil and gas properties:
	Schedule of Asset Retirement Obligations.
			2013	2012
	Balance at beginning of year	$	202,956	195,382
	Accretion expense		10,045	7,574
	Balance at end of year	$	213,001	202,956

Note_5_Income_Taxes

Note 5 - Income Taxes	12 Months Ended
	Dec. 31, 2013
Notes	'
Note 5 - Income Taxes	'
	Note 5 – Income Taxes
	The provision (benefit) for income taxes differs from the amount computed at federal statutory rates as follows:
			2013	2012
	Federal income tax benefit at statutory rate	$	(2,000)	(43,000)
	State income tax benefit, net of federal tax benefit		(1,000)	(5,000)
	Expiration of net operating loss carry-forward		5,000	-
	Change in valuation allowance		(3,000)	41,000
	Other		1,000	7,000
		$	-	-
	Deferred tax assets (liabilities) are comprised of the following:
			2013	2012
	Net operating loss carry-forwards	$	732,000	757,000
	Asset retirement obligation		62,000	56,000
	Depletion and amortization		120,000	111,000
	Stock compensation expense		66,000	59,000
			980,000	983,000
	Less valuation allowance		(980,000)	(983,000)
		$	-	-
	As of December 31, 2013, the Company had net operating loss (NOL) carryforwards of approximately $2,155,000. If substantial changes in the Company’s ownership should occur there would be an annual limitation of the amount of NOL carryforwards which could be utilized. Also, the ultimate realization of these carryforwards is due, in part, on the tax law in effect at the time and future events, which cannot be determined.
	The Company’s NOL amounts and related years of expiration are as follows:
	Year			Year of
	Generated		Amount	Expiration
	1998		80,000	2018
	1999		1,980,000	2019
	2001		4,000	2021
	2002		78,000	2022
	2011		12,000	2031
	2012		1,000	2032
		$	2,155,000
	The Company is no longer subject to examination by federal and state taxing authorities for years prior to 2010.

Note_6_Related_Party_Transacti

Note 6 - Related Party Transactions	12 Months Ended
	Dec. 31, 2013
Notes	'
Note 6 - Related Party Transactions	'
	Note 6 – Related Party Transactions
	The Company leases office space on a month-to-month basis from the CEO of the Company. The lease requires monthly payments of $1,000. The Company incurred rent expense of approximately $12,000 during the years ended December 31, 2013 and 2012. At December 31, 2013 and 2012, $1,000 was included in accounts payable for rent.
	The Company has a consulting agreement with its CEO to provide management services. The agreement requires monthly payments of $10,000. The Company incurred management and consulting fees of approximately $120,000 during the years ended December 31, 2013 and 2012. At December 31, 2013 and 2012, $10,000 was included in accounts payable for management services.

Note_7_Supplemental_Disclosure

Note 7 - Supplemental Disclosures of Cash Flow Information	12 Months Ended
	Dec. 31, 2013
Notes	'
Note 7 - Supplemental Disclosures of Cash Flow Information	'
	Note 7 – Supplemental Disclosures of Cash Flow Information
	No amounts were paid for interest or income taxes during the years ended December 31, 2013 and 2012.

Note_8_Stock_Options

Note 8 - Stock Options	12 Months Ended
	Dec. 31, 2013
Notes	'
Note 8 - Stock Options	'
	Note 8 – Stock Options
	The Company has a stock option plan (the Plan) which allows for the issuance of the Company’s common stock or the grant of options to acquire the Company’s common stock from time to time to employees, directors, officers, consultants or advisors of the Company on the terms and conditions set forth in the Plan. At December 31, 2013 and 2012, the Company had 600,000 options outstanding at an exercise price of $0.35. During the years ended December 31, 2013 and 2012, the Company did not have any changes in the number of outstanding options.

Note_9_Stock_Based_Compensatio

Note 9 - Stock Based Compensation	12 Months Ended
	Dec. 31, 2013
Notes	'
Note 9 - Stock Based Compensation	'
	Note 9 – Stock Based Compensation
	The following table summarizes information about common stock options outstanding at December 31, 2013:
	Outstanding				Exercisable
			Weighted
			Average	Weighted		Weighted
			Remaining	Average		Average
	Exercise	Number	Contractual	Exercise	Number	Exercise
	Price	Outstanding	Life (Years)	Price	Exercisable	Price
	$  0.35	600,000	5	$  0.35	600,000	$  0.35

Note_10_Fair_Value_of_Financia

Note 10 - Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2013
Notes	'
Note 10 - Fair Value of Financial Instruments	'
	Note 10 – Fair Value of Financial Instruments
	The Company estimates that the fair value of all financial instruments at December 31, 2013 and 2012 does not differ materially from the aggregate carrying value of its financial instruments recorded in the accompanying balance sheet. Carrying value approximates fair value due to the short maturity of the instruments identified as current assets and liabilities. The Company’s financial instruments are held for non-trading purposes.

Note_11_Commitments_and_Contin

Note 11 - Commitments and Contingencies	12 Months Ended
	Dec. 31, 2013
Notes	'
Note 11 - Commitments and Contingencies	'
	Note 11 – Commitments and Contingencies
	Oil and Gas Operating Agreement
	The Company has agreements with the operators of the oil and gas wells in which the Company owns an interest. These agreements require the Company to pay a percentage of the fees and production costs of operating the wells.
	Litigation
	The Company may become or is subject to investigations, claims or lawsuits ensuing out of the conduct of its business, including those related to environmental safety and health, commercial transactions, etc. The Company is currently not aware of any such item which it believes could have a material adverse affect on its financial position.

Note_12_Risks_and_Uncertaintie

Note 12 - Risks and Uncertainties	12 Months Ended
	Dec. 31, 2013
Notes	'
Note 12 - Risks and Uncertainties	'
	Note 12 – Risks and Uncertainties
	The Company’s oil and gas reserves are continually declining, which will eventually result in a reduction of the amount of oil and gas produced, oil and gas revenues and cash flows. The Company has historically replaced reserves through both drilling and acquisitions, however, there is no assurance that oil and gas reserves can be located through drilling or acquisition or that even if reserves are located, that such reserves will allow the recovery of all or part of the investment made by the Company to obtain these reserves.
	The Company’s carrying cost of its oil and gas properties are subject to possible future impairment based on the estimated future cash flows of these properties. These estimated future cash flows are in turn subject to oil and gas prices that are subject to fluctuations and, as a consequence, no assurance can be given that oil and gas prices will decrease, increase or remain stable.

Note_13_Subsequent_Events

Note 13 - Subsequent Events	12 Months Ended
	Dec. 31, 2013
Notes	'
Note 13 - Subsequent Events	'
	Note 13 – Subsequent Events
	The Company evaluated its December 31, 2013, financial statements for subsequent events through the date the financial statements were issued. The Company is not aware of any subsequent events which would require recognition or disclosure in the financial statements.

Note_14_Recent_Accounting_Pron

Note 14 - Recent Accounting Pronouncements	12 Months Ended
	Dec. 31, 2013
Notes	'
Note 14 - Recent Accounting Pronouncements	'
	Note 14 – Recent Accounting Pronouncements
	The Company’s management has evaluated the recently issued accounting pronouncements through the filing date of these financial statements and has determined that the application of these pronouncements will not have a material impact on the Company’s financial position and results of operations.

Note_1_Organization_and_Summar1

Note 1 - Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	12 Months Ended
	Dec. 31, 2013
Policies	'
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	For purposes of the statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less to be cash equivalents.

Note_1_Organization_and_Summar2

Note 1 - Organization and Summary of Significant Accounting Policies: Accounts Receivable (Policies)	12 Months Ended
	Dec. 31, 2013
Policies	'
Accounts Receivable	'
	Accounts Receivable
	Accounts receivable are amounts due on oil and gas sales and are unsecured. Accounts receivable are carried at their estimated collectible amounts. Credit is generally extended on a short-term basis; thus accounts receivable do not bear interest although a finance charge may be applied to such receivables that are more than thirty days past due. Accounts receivable are periodically evaluated for collectibility based on past credit history with clients. Provisions for losses on accounts receivable are determined on the basis of loss experience, known and inherent risk in the account balance, and current economic conditions.

Note_1_Organization_and_Summar3

Note 1 - Organization and Summary of Significant Accounting Policies: Concentration of Credit Risk (Policies)	12 Months Ended
	Dec. 31, 2013
Policies	'
Concentration of Credit Risk	'
	Concentration of Credit Risk
	The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.

Note_1_Organization_and_Summar4

Note 1 - Organization and Summary of Significant Accounting Policies: Oil and Gas Producing Activities (Policies)	12 Months Ended
	Dec. 31, 2013
Policies	'
Oil and Gas Producing Activities	'
	Oil and Gas Producing Activities
	The Company utilizes the successful efforts method of accounting for its oil and gas producing activities. Under this method, all costs associated with productive exploratory wells and productive or nonproductive development wells are capitalized while the costs of nonproductive exploratory wells are expensed.
	If an exploratory well finds oil and gas reserves, but a determination that such reserves can be classified as proved is not made after one year following completion of drilling, the costs of drilling are charged to operations. Indirect exploratory expenditures, including geophysical costs and annual lease rentals, are expensed as incurred. Unproved oil and gas properties that are individually significant are periodically assessed for impairment of value and a loss is recognized at the time of impairment by providing an impairment allowance. Other unproved properties are amortized based on the Company’s experience of successful drillings and average holding period. Capitalized costs of producing oil and gas properties, after considering estimated dismantlement and abandonment costs and estimated salvage values, are depreciated and depleted by the units-of-production method. Support equipment and other property and equipment are depreciated over their estimated useful lives.
	On the sale or retirement of a complete unit of a proved property, the cost and related accumulated depreciation, depletion and amortization are eliminated from the property accounts, and the resultant gain or loss is recognized. On the retirement or sale of a partial unit of proved property, the cost is charged to accumulated depreciation, depletion and amortization with a resulting gain or loss recognized in income.
	On the sale of an entire interest in an unproved property for cash or cash equivalent, gain or loss on the sale is recognized, taking into consideration the amount of any recorded impairment if the property has been assessed individually. If a partial interest in an unproved property is sold, the amount received is treated as a reduction of the cost of the interest retained.
	The continued carrying value of the Company’s oil and natural gas properties depends primarily upon the estimated reserves and the prices it receives for oil and natural gas production. Oil and natural gas prices historically have been volatile and are likely to continue to be volatile in the future. The Company’s production quantities of oil and natural gas are in decline. Any decrease in oil and natural gas prices without an offsetting increase in reserve quantities could result in an impairment of the Company’s assets.
	Current accounting standards may require companies involved in the oil and gas industry to reclassify oil and gas contract based drilling rights from tangible to intangible assets and to provide the related intangible assets disclosures under Accounting Standards Codification (ASC) 350. Since the Company does not have any contract based oil and gas drilling rights, any disclosure related to this possible requirement would not have an affect on the Company’s financial statements.

Note_1_Organization_and_Summar5

Note 1 - Organization and Summary of Significant Accounting Policies: Earnings Per Share (Policies)	12 Months Ended
	Dec. 31, 2013
Policies	'
Earnings Per Share	'
	Earnings Per Share
	The computation of basic earnings per common share is based on the weighted average number of shares outstanding during each year.
	The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the year plus the common stock equivalents which would arise from the exercise of stock options and warrants outstanding using the treasury stock method and the average market price per share during the year. Common stock equivalents are not included in the diluted earnings per share calculation when their effect is antidilutive.

Note_1_Organization_and_Summar6

Note 1 - Organization and Summary of Significant Accounting Policies: Use of Estimates in The Preparation of Financial Statements (Policies)	12 Months Ended
	Dec. 31, 2013
Policies	'
Use of Estimates in The Preparation of Financial Statements	'
	Use of Estimates in the Preparation of Financial Statements
	The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates.
	Significant estimates include volumes of oil and natural gas reserves used in calculating depletion of proved oil and natural gas properties, future net revenues and abandonment obligations, future taxable income and related assets/liabilities, the collectibility of outstanding accounts receivable, stock-based compensation expense, and contingencies. Oil and natural gas reserve estimates, which are the basis for unit-of-production depletion, have numerous inherent uncertainties. The accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Subsequent drilling results, testing and production may justify revision of such estimates. Accordingly, reserve estimates are often different from the quantities of oil and natural gas that are ultimately recovered. In addition, reserve estimates are vulnerable to changes in wellhead prices of crude oil and natural gas. Such prices have been volatile in the past and can be expected to be volatile in the future.
	The significant estimates are based on current assumptions that may be materially affected by changes to future economic conditions such as the market prices received for sales of volumes of oil and natural gas, the creditworthiness of counterparties,  interest rates, the market value of the Company’s common stock and corresponding volatility and the Company’s ability to generate future taxable income. Future changes to these assumptions may affect these significant estimates materially in the near term.

Note_4_Asset_Retirement_Obliga1

Note 4 - Asset Retirement Obligation: Schedule of Asset Retirement Obligations (Tables)	12 Months Ended
	Dec. 31, 2013
Tables/Schedules	'
Schedule of Asset Retirement Obligations	'
			2013	2012
	Balance at beginning of year	$	202,956	195,382
	Accretion expense		10,045	7,574
	Balance at end of year	$	213,001	202,956