Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 13, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Rockdale Resources Corp | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 14,103,041 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001368637 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
BALANCE_SHEETS_Unaudited
BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current assets | ' | ' |
Cash | $118,461 | $731,043 |
Accounts receivable-related party, net | 0 | 4,805 |
Accounts receivable | 41,039 | 0 |
Other current assets | 46,805 | 28,225 |
Total current assets | 206,305 | 764,073 |
Property & equipment | ' | ' |
Proved properties | 2,969,475 | 2,125,685 |
Unproved properties and properties under Development, not being amortized | 0 | 72,950 |
Furniture, equipment & software | 30,966 | 47,876 |
Less accumulated depreciation | -92,348 | -36,057 |
Net property and equipment | 2,908,093 | 2,210,454 |
Other assets | 20,000 | 20,000 |
Total assets | 3,134,398 | 2,994,527 |
Current liabilities | ' | ' |
Accounts payable | 36,814 | 43,892 |
Accounts payable - related party | 2,700 | 0 |
Accrued liabilities | 2,705 | 22,279 |
Deferred rent | 3,746 | 2,788 |
Total current liabilities | 45,965 | 68,959 |
Deferred rent | 4,070 | 7,096 |
Asset retirement obligations | 84,997 | 52,644 |
Note payable related party | 450,000 | 0 |
Discount on note payable | -327,722 | ' |
Total Liabilities | 257,310 | 128,699 |
Stockholders' Equity (Deficit) | ' | ' |
Preferred stock, $.10 par value; 1,000,000 shares authorized; No shares issued & outstanding | 0 | 0 |
Common stock, $.001 par value; 50,000,000 shares authorized; 14,003,041 and 17,159,748 shares issued and outstanding | 14,003 | 17,160 |
Additional paid in capital | 5,273,173 | 4,519,856 |
Treasury stock: 0 and 20,000 shares respectively | 0 | -5,000 |
Accumulated deficit | -2,410,088 | -1,666,188 |
Total Stockholders' Equity (Deficit) | 2,877,088 | 2,865,828 |
Total Liabilities and Stockholders' Equity (Deficit) | $3,134,398 | $2,994,527 |
BALANCE_SHEETS_Unaudited_Paren
BALANCE SHEETS (Unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Preferred stock, par value (in Dollars per share) | $0.10 | $0.10 |
Preferred stock, shares authorized (in Shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in Shares) | 0 | 0 |
Preferred stock, shares outstanding (in Shares) | 0 | 0 |
Common stock par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in Shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in Shares) | 14,003,041 | 17,159,748 |
Common stock, shares outstanding (in Shares) | 14,003,041 | 17,159,748 |
Treasury stock, shares (in Shares) | 0 | 20,000 |
STATEMENT_OF_EXPENSES_Unaudite
STATEMENT OF EXPENSES (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Oil and gas sales | $82,722 | $39,452 | $177,171 | $39,452 |
Lease operating expense | 57,214 | 16,089 | 120,395 | 16,089 |
Production tax | 3,812 | 1,818 | 8,165 | 1,818 |
General and administrative expenses | 113,294 | 543,011 | 710,815 | 1,132,838 |
Bad debt - related party | 0 | 0 | 0 | 24,800 |
Depreciation, depletion and amortization | 25,722 | 2,103 | 60,178 | 4,129 |
Asset retirement obligation accretion | 2,507 | 0 | 6,009 | 0 |
Total operating expenses | 202,549 | 563,021 | 905,561 | 1,179,675 |
Loss from operations | -119,827 | -523,569 | -728,390 | -1,140,223 |
Interest (expense) | 15,510 | 0 | 15,510 | 0 |
Net loss from continuing operations before taxes | -135,337 | -523,569 | -743,900 | -1,140,223 |
Net loss | ($135,337) | ($523,569) | ($743,900) | ($1,140,223) |
Loss per share (Basic and fully diluted) (in Dollars per share) | ($0.01) | ($0.03) | ($0.05) | ($0.09) |
Weighted average number of common shares outstanding (in Shares) | 14,003,041 | 16,716,143 | 14,944,922 | 13,178,805 |
STATEMENTS_OF_CASH_FLOWS_Unaud
STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash Flows from Operating Activities | ' | ' |
Net loss | ($743,900) | ($1,140,223) |
Adjustment to reconcile net income to net cash provided by/(used in) operating activities: | ' | ' |
Depreciation and amortization | 60,178 | 4,129 |
Accretion Expense | 15,510 | 0 |
Loss on disposal of assets | 5,609 | 250 |
ARO Accretion | 6,009 | 0 |
Stock-based compensation | 17,827 | 77,700 |
Bad debt expense – related party | 0 | 24,800 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable – related party | 4,805 | -16,450 |
Accounts receivable | -41,039 | 0 |
Other assets | -19,623 | -39,782 |
Accounts payable | -7,078 | 6,151 |
Accounts payable - related party | 2,700 | -2,350 |
Accrued liabilities | -19,574 | 4,201 |
Deferred rent | -2,067 | 10,382 |
Net cash flows from operating activities | -720,642 | -1,071,192 |
Cash Flows from Investing Activities | ' | ' |
Purchase property and equipment | -6,200 | -16,823 |
Proceeds from sale of property and equipment | 20,000 | 0 |
Purchase of oil and gas properties | 0 | -475,000 |
Capital expenditures on oil and gas properties | -354,840 | -1,525,000 |
Cash flows from investing activities: | -341,040 | -2,016,823 |
Cash Flows from Financing Activities | ' | ' |
Borrowings on convertible debt – related parties | 450,000 | 0 |
Short term borrowing from related parties | 0 | 110,557 |
Short term payments to related parties | 0 | -156,108 |
Purchase of outstanding shares | -900 | -9,126 |
Proceeds from issuance of common stock | 0 | 4,272,403 |
Cash flows from financing activities | 449,100 | 4,217,726 |
Net change in cash and cash equivalents | -612,582 | 1,129,711 |
Cash and cash equivalents | ' | ' |
Beginning of period | 731,043 | 392 |
End of period | 118,461 | 1,130,103 |
NON-CASH FINANCING DISCLOSURES | ' | ' |
Cancellation of treasury shares (Note 6) | 5,000 | 0 |
Discount on related party convertible note payable – warrants and conversion feature (Note 5) | 343,232 | 0 |
Fair value of shares issued in purchase of oil and gas properties (Note 5) | 395,000 | 0 |
Cash paid for interest | 0 | 0 |
Cash paid for taxes | $0 | $0 |
NOTE_1_ORGANIZATION_AND_BASIS_
NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION: | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION: | |
Art Design, Inc. was incorporated in the State of Colorado on January 16, 2002. In April 2012, the Company discontinued its prior operations and became involved in the exploration and development of oil and gas. On May 4, 2012, the Company amended its articles of incorporation to change its name to Rockdale Resources Corporation. | |
Basis of Presentation | |
The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America 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 the Company’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 results of operations for the interim periods presented have been reflected herein. The results of operations for such interim periods are not necessarily indicative of operations for a full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year, 2012, as reported in Form 10-K, have been omitted. | |
NOTE_2_SUMMARY_OF_SIGNIFICANT_
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
As of September 30, 2013, the Company’s significant accounting policies are consistent with those discussed in the audited financial statements as of December 31, 2012. | |
Earnings Per Share – Basic earnings per share have been calculated based upon the weighted-average number of common shares outstanding. The weighted-average number of common shares outstanding used in the computations of earnings per share was 14,944,922 for the nine-month period ended September 30, 2013 and 13,178,805 for the nine-month period ended September 30, 2012. | |
Recently Issued Accounting Pronouncements – Various accounting standards updates have been recently issued, most of which represented technical corrections to the accounting literature or were applicable to specific industries. No new accounting pronouncements have been issued that are likely to have a material impact to the Company's financial statements. | |
Use of Estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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 reporting period. Actual results could differ from those estimates. | |
NOTE_3_GOING_CONCERN
NOTE 3. GOING CONCERN | 9 Months Ended |
Sep. 30, 2013 | |
Going Concern Disclosure [Abstract] | ' |
Going Concern Disclosure [Text Block] | ' |
NOTE 3. GOING CONCERN | |
The Company has suffered recurring losses from operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company plans to generate profits by drilling productive oil or gas wells. However, the Company will need to raise the funds required to drill new wells through the sale of its securities, through loans from third parties or from third parties willing to pay the Company’s share of drilling and completing the wells. The Company does not have any commitments or arrangements from any person to provide the Company with any additional capital. If additional financing is not available when needed, the Company may need to cease operations. The Company may not be successful in raising the capital needed to drill oil or gas wells. Any wells which the Company may drill may not be productive of oil or gas. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern. We have plans to finance our activities through private offerings of our securities, issuance of corporate bonds and/or joint venture agreements. The accompanying financial statements have been prepared assuming the Company will continue as a going concern; no adjustments to the financial statements have been made to account for this uncertainty. | |
NOTE_4_RELATED_PARTY_TRANSACTI
NOTE 4. RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE 4. RELATED PARTY TRANSACTIONS | |
At September 30, 2013 the Company had accounts payable – related-party of $2,700. This amount constitutes the net payment due to RTO Operating, LLC for a piece of equipment purchased in September 2013. RTO Operating, LLC was the Company’s operator of record prior to August 1, 2013. RTO Operating, LLC is partially owned by a significant shareholder. | |
NOTE_5_EQUITY
NOTE 5. EQUITY | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
NOTE 5. EQUITY | |
Preferred Stock – 1,000,000 shares authorized, none issued or outstanding. | |
Common Stock –In March 2013, Michael Smith transferred 1,600,000 shares of the Company’s common stock to the Company for consideration of $100. These shares were returned to treasury and cancelled. In addition, in March 2013, John Barton, a former officer and director of the Company, and a number of other shareholders transferred an aggregate of 2,031,707 shares of the Company’s common stock to the Company for aggregate consideration of $800. All such shares were returned to treasury and cancelled. | |
In March 2013, an additional 45,000 outstanding shares of common stock were cancelled, including 20,000 of treasury stock. | |
In April 2013, the Company was assigned a 100% working interest (75% net revenue interest) in a 623-acre lease in Milam County, Texas. (The Company had previously been assigned an aggregate of 202.5 acres out of this 623-acre lease via an assignment in March 2012 of 200 acres and an assignment in October 2012 of 2.5 acres. See “The Subsequent Kingman Assignment” in Item 5 of the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2013, filed with the Securities and Exchange Commission on August 14, 2013.) The Company issued 500,000 shares of its common stock valued at $395,000 as consideration for the release of a security interest encumbering this 623-acre lease. | |
In June 2013 the Company issued 20,000 shares of its common stock valued at $5,400 as employee compensation. | |
On August 5, 2013, Matthew Ferguson was appointed to the Board of Directors of the Company. On the same date, the Company issued 500,000 shares of restricted stock to Matthew Ferguson, as consideration for Mr. Ferguson’s future services. 200,000 shares shall vest in equal quarterly increments over the course of twelve months beginning on November 5, 2013. The remaining 300,000 shares shall vest upon the Company’s attainment of certain production milestones, in increments of 100,000 shares per occurrence. Vesting of all shares is subject to Mr. Ferguson’s continued service as a director. These shares were issued pursuant to a Stand-Alone Restricted Stock Award Agreement between the Company and Mr. Ferguson, and were valued at $0.27 per share, or an aggregate of $135,000.00, on the date of grant. As of September 30, 2013, the Company has incurred $8,285 of stock based compensation expense related to these shares. | |
On August 5, 2013, the Company issued 300,000 shares of restricted stock to Marc Spezialy as consideration for Mr. Spezialy’s continued service as an executive officer of the Company. These shares shall vest upon the Company’s attainment of certain production milestones, in increments of 100,000 shares per occurrence. Vesting of all shares is subject to Mr. Spezialy’s continued service as an executive officer. These shares were issued pursuant to a Stand-Alone Restricted Stock Award Agreement between the Company and Mr. Spezialy, and were valued at $0.27 per share, or an aggregate of $81,000, on the date of grant. | |
On August 5, 2013, the Company issued 100,000 shares of restricted stock to a Company employee as consideration for such employee’s continued service. These shares shall vest in equal quarterly increments over the course of twelve months beginning on November 5, 2013. Vesting of all shares is subject to the employee’s continued service. These shares were issued pursuant to a Stand-Alone Restricted Stock Award Agreement between the Company and the employee, and were valued at $0.27 per share, or an aggregate of $27,000, on the date of grant. As of September 30, 2013, the Company has incurred $4,142 of stock based compensation expense related to these shares. | |
NOTE_6_CONVERTIBLE_DEBT_RELATE
NOTE 6. CONVERTIBLE DEBT - RELATED PARTY | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Long-term Debt [Text Block] | ' |
NOTE 6. CONVERTIBLE DEBT – RELATED PARTY | |
On June 17, 2013, the Company entered into a Convertible Secured Note and Warrant Purchase Agreement (the “Purchase Agreement”) with Rick Wilber. Pursuant to the Purchase Agreement, the Company agreed to sell, and Mr. Wilber agreed to buy, for aggregate consideration of $350,000, a convertible secured promissory note in the principal amount of $350,000 (the “Note”) convertible at $0.30 per share, and a warrant to purchase 1,000,000 shares of the Company’s common stock (the “Warrant”) at an exercise price of $0.80 per share. The Company analyzed the Note and the Warrant for derivative accounting consideration and determined that derivative accounting is not applicable for these debts. The Warrant vests immediately and has a term of 10 years. The relative fair value of the Warrant was measured using the Black-Scholes option pricing model and determined to be $148,925, which was recorded as a debt discount. Variables used in the Black-Scholes option pricing model for the Warrant included: (1) discount rate of 2.19%, (2), expected life of ten years, (3) expected volatility of 196% and (4) zero expected dividends. The Note was then evaluated for a beneficial conversion feature and it was determined that a beneficial conversion feature existed. The intrinsic value of the beneficial conversion feature was determined to be $102,259 and was recorded as a debt discount. The debt discounts are being amortized over the life of the Note using the effective interest method. | |
On September 30, 2013, the Company entered into a Convertible Secured Note and Warrant Purchase Agreement (the “September Purchase Agreement”) with Rick Wilber. Pursuant to the September Purchase Agreement, the Company agreed to sell, and Mr. Wilber agreed to buy, for aggregate consideration of $100,000, a convertible secured promissory note in the principal amount of $100,000 (the “September Note”) convertible at $0.30 per share, and a warrant to purchase 285,000 shares of the Company’s common stock (the “September Warrant”) at an exercise price of $0.80 per share. The Company analyzed the September Note and the September Warrant for derivative accounting consideration and determined that derivative accounting is not applicable for these debts. The September Warrant vests immediately and has a term of 10 years. The relative fair value of the September Warrant was measured using the Black-Scholes option pricing model and determined to be $46,024 which was recorded as a debt discount. Variables used in the Black-Scholes option pricing model for the September Warrant included: (1) discount rate of 2.64%, (2), expected life of ten years, (3) expected volatility of 196.3% and (4) zero expected dividends. The September Note was then evaluated for a beneficial conversion feature and it was determined that a beneficial conversion feature existed. The intrinsic value of the beneficial conversion feature was determined to be $46,024 and was recorded as a debt discount. The debt discounts are being amortized over the life of the September Note using the effective interest method. | |
NOTE_7_COMMITMENTS_AND_CONTING
NOTE 7. COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
NOTE 7. COMMITMENTS AND CONTINGENCIES | |
The Company, as a lessee of oil and gas properties, is subject to various federal, state and local laws and regulations relating to discharge of materials into, and protection of, the environment. These laws and regulations may, among other things, impose liability on the Company for the cost of pollution clean-up resulting from operations and subject the Company to liability for pollution damages. In some instances, the Company may be directed to suspend or cease operations in the affected area. The Company is not aware of any environmental claims existing as of September 30, 2013, which have not been provided for, or covered by insurance or which may have a material impact on its financial position or results of operations. There can be no assurance, however, that current regulatory requirements will not change, or past noncompliance with environmental laws will not be discovered on the Company’s properties. | |
Office rental expense was approximately $43,521 and $40,039 for the nine months ended September 30, 2013 and 2012, respectively. Deferred rent was approximately $7,817 as of September 30, 2013. Effective November 1, 2013, the Company sublet its office space. The subtenant has assumed the Company’s rent obligations under the prime lease, but the Company remains liable under the prime lease should the subtenant default. | |
NOTE_8_SUBSEQUENT_EVENTS
NOTE 8. SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 8. SUBSEQUENT EVENTS | |
On October 2, 2013, the Company executed a Paid Up Oil and Gas Lease (the “New Lease”) between Noack Farms, LLC (“Noack”), as Lessor, and the Company, as Lessee.(1) Under the New Lease, Noack leased to the Company 623.29 acres in Milam County, Texas, for the purpose of exploring for, developing, producing, and marketing oil and gas, along with all hydrocarbon and hydrocarbon substances produced in association therewith. The New Lease provides for royalties of 1/6th of the production from the leased premises to be paid to Noack. | |
The land described in the New Lease was subject to a pre-existing Paid Up Oil and Gas Lease dated June 20, 2011, from Noack, as Lessor, to Ardent 1, LLC, as Lessee (the “Prior Lease”). The New Lease provided that it was subordinate to the Prior Lease, and that it would not become effective until the termination or release of the Prior Lease. | |
By virtue of a series of assignments, the Prior Lease previously had been assigned to the Company as Lessee effective as of March 20, 2012. (The assignment to the Company is filed as Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2013, filed with the Securities and Exchange Commission on August 14, 2013, and the Prior Lease is filed as Exhibit 10.8 to such Quarterly Report.) All of the Company’s current wells are drilled on the 623.29 acres that constitute the leased premises under the New Lease and the Prior Lease. | |
On October 24, 2013, the Company filed a release of the Prior Lease. | |
As consideration for the New Lease, concurrently with Noack’s execution of the New Lease in June 2013, the Company paid Noack $3,116.45. As further consideration for the New Lease, on October 24, 2013, the Company issued Noack 100,000 shares of the Company’s common stock. Under the New Lease, the Company must pay $1,000.00 per acre for well sites (with payments for fractions of an acre to be prorated based on the fraction of the acre used) as compensation for surface damages. The Company is also obligated to pay for certain other damages actually caused to the leased premises. | |
In conjunction with Noack’s execution of the New Lease, on May 31, 2013, the Company entered into a Defense and Indemnity Agreement with Noack Farms, LLC (the “Defense Agreement”). Under the Defense Agreement, the Company agreed to defend and indemnify Noack and certain parties related to Noack against certain claims asserted by any third party relating to the negotiation, execution, recording, or existence of the New Lease. | |
(1) The New Lease is dated June 3, 2013. Noack executed the New Lease on June 2, 2013, and the Company executed the New Lease on October 2, 2013. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Earnings Per Share, Policy [Policy Text Block] | ' |
Earnings Per Share – Basic earnings per share have been calculated based upon the weighted-average number of common shares outstanding. The weighted-average number of common shares outstanding used in the computations of earnings per share was 14,944,922 for the nine-month period ended September 30, 2013 and 13,178,805 for the nine-month period ended September 30, 2012. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recently Issued Accounting Pronouncements – Various accounting standards updates have been recently issued, most of which represented technical corrections to the accounting literature or were applicable to specific industries. No new accounting pronouncements have been issued that are likely to have a material impact to the Company's financial statements. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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 reporting period. Actual results could differ from those estimates. |
NOTE_2_SUMMARY_OF_SIGNIFICANT_1
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Weighted Average Number of Shares Outstanding, Basic and Diluted (in Shares) | 14,003,041 | 16,716,143 | 14,944,922 | 13,178,805 |
NOTE_4_RELATED_PARTY_TRANSACTI1
NOTE 4. RELATED PARTY TRANSACTIONS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Related Party Transactions [Abstract] | ' | ' |
Accounts Payable, Related Parties, Current | $2,700 | $0 |
NOTE_5_EQUITY_Details
NOTE 5. EQUITY (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
NOTE 5. EQUITY (Details) [Line Items] | ' | ' | ' |
Preferred Stock, Shares Authorized | 1,000,000 | ' | 1,000,000 |
Payments for Repurchase of Common Stock (in Dollars) | $900 | $9,126 | ' |
Treasury Stock, Shares, Retired | 20,000 | ' | ' |
Stock Issued During Period, Value, New Issues (in Dollars) | 395,000 | ' | ' |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 20,000 | ' | ' |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures (in Dollars) | 5,400 | ' | ' |
Restricted Stock [Member] | Director [Member] | ' | ' | ' |
NOTE 5. EQUITY (Details) [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 500,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | '200,000 shares shall vest in equal quarterly increments over the course of twelve months beginning on November 5, 2013.The remaining 300,000 shares shall vest upon the Company's attainment of certain production milestones, in increments of 100,000 shares per occurrence.Vesting of all shares is subject to Mr. Ferguson's continued service as a director | ' | ' |
Shares Issued, Price Per Share (in Dollars per share) | $0.27 | ' | ' |
Stock Issued During Period, Value, Restricted Stock Award, Gross (in Dollars) | 135,000 | ' | ' |
Allocated Share-based Compensation Expense (in Dollars) | 8,285 | ' | ' |
Restricted Stock [Member] | Chief Financial Officer [Member] | ' | ' | ' |
NOTE 5. EQUITY (Details) [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 300,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 'These shares shall vest upon the Company's attainment of certain production milestones, in increments of 100,000 shares per occurrence.Vesting of all shares is subject to Mr. Spezialy's continued service as an executive officer | ' | ' |
Shares Issued, Price Per Share (in Dollars per share) | $0.27 | ' | ' |
Stock Issued During Period, Value, Restricted Stock Award, Gross (in Dollars) | 81,000 | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
NOTE 5. EQUITY (Details) [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 100,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 'These shares shall vest in equal quarterly increments over the course of twelve months beginning on November 5, 2013.Vesting of all shares is subject to the employee's continued service | ' | ' |
Shares Issued, Price Per Share (in Dollars per share) | $0.27 | ' | ' |
Stock Issued During Period, Value, Restricted Stock Award, Gross (in Dollars) | 27,000 | ' | ' |
Allocated Share-based Compensation Expense (in Dollars) | 4,142 | ' | ' |
Common Stock Shares Transferred, Michael Smith [Member] | ' | ' | ' |
NOTE 5. EQUITY (Details) [Line Items] | ' | ' | ' |
Stock Repurchased and Retired During Period, Shares | 1,600,000 | ' | ' |
Payments for Repurchase of Common Stock (in Dollars) | 100 | ' | ' |
Common Stock Shares Transferred, John Barton [Member] | ' | ' | ' |
NOTE 5. EQUITY (Details) [Line Items] | ' | ' | ' |
Stock Repurchased and Retired During Period, Shares | 2,031,707 | ' | ' |
Payments for Repurchase of Common Stock (in Dollars) | $800 | ' | ' |
Additional Shares Cancelled [Member] | ' | ' | ' |
NOTE 5. EQUITY (Details) [Line Items] | ' | ' | ' |
Stock Repurchased and Retired During Period, Shares | 45,000 | ' | ' |
Lease Assignment in Milam County, Texas [Member] | ' | ' | ' |
NOTE 5. EQUITY (Details) [Line Items] | ' | ' | ' |
Working interest in property | 100.00% | ' | ' |
Net revenue interest in property | 75.00% | ' | ' |
Area of Land (in Acres) | 623 | ' | ' |
Land Assignment, Description | 'The Company had previously been assigned an aggregate of 202.5 acres out of this 623-acre lease via an assignment in March 2012 of 200 acres and an assignment in October 2012 of 2.5 acres. | ' | ' |
Stock Issued During Period, Shares, New Issues | 500,000 | ' | ' |
NOTE_6_CONVERTIBLE_DEBT_RELATE1
NOTE 6. CONVERTIBLE DEBT - RELATED PARTY (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
NOTE 6. CONVERTIBLE DEBT - RELATED PARTY (Details) [Line Items] | ' | ' |
Proceeds from Convertible Debt | $450,000 | $0 |
Debt Instrument, Unamortized Discount | 327,722 | ' |
Convertible Secured Note June 17, 2013 [Member] | ' | ' |
NOTE 6. CONVERTIBLE DEBT - RELATED PARTY (Details) [Line Items] | ' | ' |
Proceeds from Convertible Debt | 350,000 | ' |
Debt Instrument, Face Amount | 350,000 | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $0.30 | ' |
Class of Warrant or Right, Granted (in Shares) | 1,000,000 | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | 0.8 | ' |
Class of Warrant or Right, Term | '10 years | ' |
Debt Instrument, Convertible, Beneficial Conversion Feature | 148,925 | ' |
Fair Value Assumptions, Risk Free Interest Rate | 2.19% | ' |
Fair Value Assumptions, Expected Term | '10 years | ' |
Fair Value Assumptions, Expected Volatility Rate | 196.00% | ' |
Fair Value Assumptions, Expected Dividend Rate | 0.00% | ' |
Debt Instrument, Unamortized Discount | 102,259 | ' |
Convertible Secured Note September 30, 2013 [Member] | ' | ' |
NOTE 6. CONVERTIBLE DEBT - RELATED PARTY (Details) [Line Items] | ' | ' |
Proceeds from Convertible Debt | 100,000 | ' |
Debt Instrument, Face Amount | 100,000 | ' |
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $0.30 | ' |
Class of Warrant or Right, Granted (in Shares) | 285,000 | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item) | 0.8 | ' |
Class of Warrant or Right, Term | '10 years | ' |
Debt Instrument, Convertible, Beneficial Conversion Feature | $46,024 | ' |
Fair Value Assumptions, Risk Free Interest Rate | 2.64% | ' |
Fair Value Assumptions, Expected Term | '10 years | ' |
Fair Value Assumptions, Expected Volatility Rate | 196.30% | ' |
Fair Value Assumptions, Expected Dividend Rate | 0.00% | ' |
NOTE_7_COMMITMENTS_AND_CONTING1
NOTE 7. COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Operating Leases, Rent Expense | $43,521 | $40,039 |
Deferred Rent Credit | $7,817 | ' |
NOTE_8_SUBSEQUENT_EVENTS_Detai
NOTE 8. SUBSEQUENT EVENTS (Details) (USD $) | 9 Months Ended | 0 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Oct. 24, 2013 | |
Subsequent Event [Member] | |||
acre | |||
NOTE 8. SUBSEQUENT EVENTS (Details) [Line Items] | ' | ' | ' |
Area of Land (in Acres) | ' | ' | 623.29 |
Payments to Acquire Oil and Gas Property (in Dollars) | $0 | $475,000 | $3,116.45 |
Stock Issued During Period, Shares, Acquisitions | ' | ' | 100,000 |