Petrolia Energy (BBLSQ) 10-Q 23 Nov 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 16, 2015
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		41,639,957
Amendment Flag	false
Entity Central Index Key	1,368,637
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	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash	$ 8,451	$ 24,688
Accounts receivable	22,957	26,176
Other current assets	33,317	40,801
Total current assets	64,725	91,665
Oil and gas, on the basis of full cost accounting
Evaluated properties	4,436,637	3,715,779
Furniture, equipment & software	108,234	94,283
Less accumulated depreciation & impairment	(1,029,616)	(283,984)
Net property and equipment	3,515,255	3,526,078
Total Assets	3,579,980	3,617,743
Current liabilities
Accounts payable	159,929	99,425
Accrued liabilities	8,120	8,875
Current maturities of installment notes payable	18,877	18,877
Advances from shareholders	4,000	0
Deferred rent	2,816	2,816
Total current liabilities	193,742	129,993
Asset retirement obligations	109,865	100,175
Convertible debt - related party, net of discount of $221,034 and $324,553	328,966	225,447
Installment note payable	13,724	26,362
Total Liabilities	646,297	481,977
Stockholders' Equity
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; 33,139,957 and 19,353,152 shares issued and outstanding	33,140	19,353
Additional paid in capital	8,469,640	7,351,640
Accumulated deficit	(5,569,097)	(4,235,227)
Total Stockholders' Equity	2,933,683	3,135,766
Total Liabilities and Stockholders' Equity	$ 3,579,980	$ 3,617,743

BALANCE SHEETS (Unaudited) (Par

BALANCE SHEETS (Unaudited) (Parentheticals) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Convertible debt, discount (in Dollars)	$ 221,034	$ 324,553
Preferred stock, par value (in Dollars per share)	$ 0.10	$ 0.10
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	33,139,957	19,353,152
Common stock, shares outstanding	33,139,957	19,353,152

STATEMENT OF OPERATIONS (Unaudi

STATEMENT OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Oil and gas sales	$ 34,689	$ 187,302	$ 162,848	$ 547,946
Operating expenses
Lease operating expense	45,368	77,319	179,422	240,455
Production tax	1,447	8,632	7,364	24,704
General and administrative expenses	122,203	234,091	365,685	1,530,719
Depreciation, depletion and amortization	19,727	47,414	78,937	135,906
Impairment of Oil & Gas Properties	0	0	668,073	0
Asset retirement obligation accretion	8,733	572	8,733	1,119
Total operating expenses	197,478	368,028	1,308,214	1,932,903
Loss from operations	(162,789)	(180,726)	(1,145,366)	(1,384,957)
Interest (expense)	(49,851)	(29,556)	(137,881)	(88,819)
Loss on conversion of debt	0	0	(69,107)	0
Other Income (expense)	10,000	0	18,484	0
Net loss from continuing operations before taxes	(202,640)	(210,282)	(1,333,870)	(1,473,776)
Net loss	$ (202,640)	$ (210,282)	$ (1,333,870)	$ (1,473,776)
Loss per share (Basic and fully diluted) (in Dollars per share)	$ (0.01)	$ (0.01)	$ (0.07)	$ (0.08)
Weighted average number of common shares outstanding (in Shares)	22,134,757	19,895,858	20,368,565	17,676,828

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows from Operating Activities
Net loss	$ (1,333,870)	$ (1,473,776)
Adjustment to reconcile net loss to net cash provided by/(used in) operating activities:
Depreciation and amortization	78,937	135,906
Accretion of debt discount	103,520	61,662
Impairment of Oil & Gas Properties	668,073	0
Loss on sale/disposal of assets	0	11,258
Loss on Conversion of Debt	69,107	0
ARO accretion	8,733	1,119
Stock-based compensation expense - employees	44,779	672,635
Stock-based compensation expense – consultants	0	399,000
Changes in operating assets and liabilities
Accounts receivable	3,219	8,408
Other assets	7,484	9,058
Accounts payable	60,504	(25,542)
Accrued liabilities	(755)	533
Deferred rent	0	(3,023)
Net cash flows from operating activities	(290,270)	(202,762)
Cash Flows from Investing Activities
Purchase of property and equipment	(19,854)	(18,876)
Proceeds from sale of property and equipment	4,525	0
Capital expenditures on oil and gas properties	0	(655,556)
Cash flows from investing activities	(15,329)	(674,432)
Cash Flows from Financing Activities
Proceeds from issuance of common stock	238,000	780,024
Proceeds from shareholder advances	71,000	0
Payments on shareholder advances	(7,000)	0
Payments on notes payable	(12,638)	(13,020)
Cash flows from financing activities	289,362	767,004
Net change in cash and cash equivalents	(16,237)	(110,190)
Cash and cash equivalents
Beginning of period	24,688	122,162
End of period	8,451	11,972
SUPPLEMENTAL DISCLOSURES
Interest Paid	34,361	27,257
NON-CASH INVESTING AND FINANCIAL DISCLOSURES
Change in accounts payable for expenditures on oil and gas properties	0	11,028
Conversion of debt	60,000	0
Initial recognition of asset retirement obligations	958	14,428
Note Payable for Equipment	0	54,541
Cancellation of shares	400	1,000
Sale of vehicle to related party for assumption of note payable	0	33,250
Shares issued for oil and gas property interest	$ 719,902	$ 0

NOTE 1. ORGANIZATION AND BASIS

NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2015
Disclosure Text Block [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION Rockdale Resources Corporation (“we”, “us”, and the “Company”) was formed for the purpose of oil and gas exploration, development, and production. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”). 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, 2014, 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, 2015
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting policies applied in the preparation of the accompanying financial statements follows. Management Estimates Recent Accounting Pronouncements The Company has evaluated all the recent accounting pronouncements through the filing date and believes that none of them will have a material effect on the Company.

NOTE 3. PROPERTY AND EQUIPMENT.

NOTE 3. PROPERTY AND EQUIPMENT.	9 Months Ended
	Sep. 30, 2015
Oil and Gas Property [Abstract]
Oil and Gas Properties [Text Block]	NOTE 3. PROPERTY AND EQUIPMENT. SUDS Purchase On September 23, 2015, we entered into a Purchase and Sale Agreement with SUDS Properties, LLC (“SUDS” and the “Purchase Agreement”). SUDS is 100% owned by Jovian Resources LLC (“Jovian”). Mr. Zel C. Khan, our President and CEO, is the former manager of Jovian. Pursuant to the Purchase Agreement, we acquired a 10% working interest in the SUDS field located in Creek County Oklahoma, in exchange for 10,586,805 shares of restricted common stock, representing 33% of our outstanding common stock. Based on that current market value of Rockdale stock at $0.068 per share, the price paid was $719, 902. Concurrently with the purchase, Jovian agreed to assign to Rockdale all rights to be the operator of the SUDS unit under a standard operating agreement. Impairment of Oil & Gas Properties Pursuant to Full-cost accounting rules, the Company recognized impairment expense relating to its oil & gas properties, subject to amortization in the amount of $0 and $668,073; during the three months and nine months ended on September 30, 2015, respectively. Impairment of oil & gas properties represents a non-cash charge against the Company’s earnings. We recognized the impairment based on SEC rules, which require proved oil and gas reserves to be valued using an unweighted arithmetic average of oil and gas prices on the first day of each month for the preceding twelve-month period.

NOTE 4. GOING CONCERN

NOTE 4. GOING CONCERN	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Substantial Doubt about Going Concern [Text Block]	NOTE 4. 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 reworking its existing oil or gas wells and drilling additional wells, as needed. The Company will need to raise funds through either the sale of its securities, issuance of corporate bonds, joint venture agreements and/or bank financing to accomplish its goals. The Company does not have any commitments or arrangements from any person to provide the Company with any additional capital, at this time. 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 and/or rework existing oil wells. Any additional wells that the Company may drill may be non-productive. Management believes that actions presently being taken to secure additional funding for the reworking of its existing infrastructure will provide the opportunity for the Company to continue as a going concern. Since the Company has an oil-producing asset, its goal is to increase the production rate by optimizing its current infrastructure. 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 5. EQUITY

NOTE 5. EQUITY	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	Preferred Stock – Common Stock – Stock based compensation of $33,778 shares was recorded related to shares issued to David N. Baker, former CEO and Director of the Company, during the three months ended March 31, 2015. The Company received 400,000 shares from David N. Baker upon his resignation and cancelled the certificates with its transfer agent. On May 12, 2015 Mr. Leo Womack, the Chairman of the Board, filed a Form 4 disclosing that an affiliated Family Trust had purchased 1,630,000 shares of common stock from Mr. David Baker in a private transaction at a cash price of $0.08 cents per share. Combined with prior ownership, Mr. Womack then controlled approximately 10% of the total outstanding common stock of the Company. On May 1, 2015, the Company commenced a private offering of its securities under Regulation D to accredited investors. Each unit is comprised of 100,000 shares of common stock at a price of $0.10 cents per share and warrants to purchase an additional 100,000 shares of common stock at a price of $0.12 cents per share at any time prior to August 5, 2018. As of September 30, 2015 fourteen (14) units had been subscribed for and 1,400,000 shares of common stock had been purchased and eight (8) units were subscribed for and 600,000 shares were issued for conversion of debt. Subsequently, fifteen (15) more units have been sold and will be reflected in the 4Q of 2015. Mr. Leo Womack, Chairman of Rockdale Resources, purchased 300,000 units through the Leo B. Womack Family Trust. Mr. Lee Lytton, a Director of the Company, purchased 300,000 units, Mr. Joel Oppenheim, a Director, purchased 300,000 units through a related entity, and Jovian Petroleum Corporation, an entity beneficially owned by the Company’s Chief Executive Officer and President, Zel C. Khan, purchased 100,000 units. A total of $60,000 in advances from affiliates that was disclosed as a liability in the financial statements as of March 31, 2015 were converted to equity in this offering. The conversion resulted in a $69,107 loss. On September 1, 2015, the Company commenced a private offering of its securities under Regulation D to accredited investors. Each unit is comprised of 100,000 shares of common stock at a price of $0.06 cents per share and one warrant to purchase an additional 100,000 shares of common stock at a price of $0.10 cents per share at any time prior to August 31, 2018. As of September 30, 2015 thirteen (13) units had been subscribed for and 1,300,000 shares of common stock had been purchased. On September 23, 2015, the Board of Directors granted Leo B. Womack, the Chairman of the Board of Directors of the Company an option to purchase 1 million shares of the Company’s common stock at an exercise price of $0.06 per share, which vests on January 1, 2016, and is exercisable for 36 months thereafter. The Board also granted Lee Lytton and Joel Oppenheim, members of the Board of Directors each an option to purchase 500,000 shares of the Company’s common stock at an exercise price of $0.06 per share, which vest on January 1, 2016, and are exercisable for 36 months thereafter. The fair value of the options granted on September 23, 2015 is $129,126. On September 23, 2015, Rockdale’s Board of Directors agreed to issue Mr. Zel C. Khan, the CEO and President of the Company, 1,000,000 shares of Rockdale’s restricted common stock with a fair value of $60,000, in consideration for entering into an employment agreement with the Company, and were issued subsequent to September 30, 2015. On September 24, 2015, the Board of Directors of the Company approved the adoption of the 2015 Stock Incentive Plan (the “Plan”). The plan provides an opportunity, subject to approval of our Board of Directors of individual grants and awards, for any employee, officer, director or consultant of the Company. The maximum aggregate number of shares of common stock which may be issued pursuant to awards under the Plan is 4,000,000 shares with a fair value of $129,128. The Company plans to seek stockholder ratification of the adoption of the Plan at the Company’s next annual meeting of stockholders. Summary information regarding common stock warrants issued and outstanding as of September 30, 2015, is as follows: Warrants Weighted Average Exercise Price Aggregate intrinsic value Weighted average remaining contractual life (years) Outstanding at year end December 31, 2014 4,170,111 $ 0.77 $ - 6.06 Granted 3,500,000 0.11 - 2.87 Exercised - - - Expired - - - Outstanding at September 30, 2015 7,670,111 $ 0.47 $ - 4.61

NOTE 6. COMMITMENTS AND CONTING

NOTE 6. COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 6. 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, 2015, 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.

NOTE 7. SUBSEQUENT EVENTS

NOTE 7. SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 7. SUBSEQUENT EVENTS Twin Lakes San Andres Unit Interest Acquisition On November 4, 2015, we acquired a 15% net working interest in the “Twin Lakes San Andres Unit” or “TLSAU” field located in Chavez County, New Mexico (the “Net Working Interest”) and all operating equipment on the field, pursuant to the terms of a Memorandum of Agreement between the Company and Blue Sky NM, Inc. (“BSNM”), which was dated November 4, 2015 (the “Purchase Agreement”). The total purchase price for the acquisition of the Net Working Interest and equipment rights was $196,875. The Company paid $50,000 in cash to BSNM and executed a Promissory Note for the remaining balance ($146,875) (the “Note”). The Note is due on or before December 31, 2015, accrues interest at the rate of 10% per annum and the repayment of the Note is secured by 1,000,000 shares of restricted common stock of the Company. The Company also has the right to a one-time extension of the maturity date of the note (extending the maturity date for 90 days) if we issue BSNM 500,000 additional shares of restricted common stock. In connection with the acquisition we were also required to place necessary bonds with the New Mexico Energy Department, not to exceed $400,000 in value. The Company became the new operator of the field effective November 15, 2015. TLSAU is 45 miles from Roswell, New Mexico and consists of 4,864 acres with 130 wells of which only 6 are currently online. The last independent reserve report was prepared in November 2013 by American Energy Advisors, Inc. and reflects approximately 2.8 million barrels of proven oil reserves for 100% interest. Promissory Note Acquisition The Company also acquired an Installment Promissory Note with a face value of $1.3 million from BSNM on November 4, 2015, who had previously purchased the note from the Bankruptcy Trustee appointed by the United States Bankruptcy Court for the district of New Mexico, in connection with the Bankruptcy of Orbit Petroleum, Inc., pursuant to the terms of a Memorandum of Agreement between the Company and BSNM, dated November 4, 2015. The note originally issued in September 2010, evidences amounts due from Canyon E&P Company to the Bankruptcy Trustee (now us pursuant to the acquisition), which are past due and in default and currently accrue interest at the rate of 10% per annum. The note is secured by a significant amount of surface equipment and several mineral leases, including the TLSAU lease noted above. The note was purchased for total consideration of six million shares of Rockdale Resources unregistered restricted common stock. Offering On September 1, 2015, the Company began a new private offering of “Units” (each consisting of 100,000 shares of restricted common stock and a warrant to purchase an additional 100,000 shares of common stock at an exercise price of $0.10 per share at any time prior to August 31, 2018), with each unit being sold for $6,000 per Unit. Subsequent to September 30, 2015, we sold 15 Units (1.5 million restricted shares of common stock and warrants to purchase 1.5 million shares of common stock) for an aggregate of $90,000.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Use of Estimates, Policy [Policy Text Block]	Management Estimates
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements The Company has evaluated all the recent accounting pronouncements through the filing date and believes that none of them will have a material effect on the Company.

NOTE 5. EQUITY (Tables)

NOTE 5. EQUITY (Tables)	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	Summary information regarding common stock warrants issued and outstanding as of September 30, 2015, is as follows: Warrants Weighted Average Exercise Price Aggregate intrinsic value Weighted average remaining contractual life (years) Outstanding at year end December 31, 2014 4,170,111 $ 0.77 $ - 6.06 Granted 3,500,000 0.11 - 2.87 Exercised - - - Expired - - - Outstanding at September 30, 2015 7,670,111 $ 0.47 $ - 4.61

NOTE 3. PROPERTY AND EQUIPMEN15

NOTE 3. PROPERTY AND EQUIPMENT. (Details) - USD ($)	Sep. 23, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
NOTE 3. PROPERTY AND EQUIPMENT. (Details) [Line Items]
Equity Method Investment, Ownership Percentage	33.00%
Working interest	10.00%
Stock Issued During Period, Shares, Purchase of Assets	10,586,805
Share Price	$ 0.068
Stock Issued During Period, Value, Purchase of Assets	$ 719,902
Impairment of Oil and Gas Properties		$ 0	$ 0	$ 668,073	$ 0
Affiliated Entity [Member]
NOTE 3. PROPERTY AND EQUIPMENT. (Details) [Line Items]
Equity Method Investment, Ownership Percentage	100.00%

NOTE 5. EQUITY (Details)

NOTE 5. EQUITY (Details)

Nov. 04, 2015shares

Sep. 23, 2015USD ($)$ / sharesshares

Sep. 01, 2015USD ($)$ / sharesshares

May. 12, 2015shares

May. 01, 2015USD ($)shares

Sep. 30, 2015$ / shares$ / itemshares

May. 30, 2015$ / sharesshares

Nov. 20, 2015USD ($)$ / shares$ / itemshares

Sep. 30, 2015USD ($)$ / sharesshares

Mar. 31, 2015USD ($)$ / sharesshares

Sep. 30, 2014USD ($)

Sep. 30, 2015USD ($)$ / shares$ / itemshares

Sep. 30, 2014USD ($)

Dec. 31, 2014shares

NOTE 5. EQUITY (Details) [Line Items]

Preferred Stock, Shares Authorized

1,000,000

1,000,000

1,000,000

1,000,000

Share-based Compensation (in Dollars) | $

$ 44,779

$ 672,635

Equity Method Investment, Ownership Percentage

33.00%

Gains (Losses) on Restructuring of Debt (in Dollars) | $

$ 0

$ 0

$ (69,107)

$ 0

Class of Warrant or Right, Granted

3,500,000

Private Placement [Member]

NOTE 5. EQUITY (Details) [Line Items]

Stock Issued During Period, Shares, New Issues

1,300,000

1,400,000

1,300,000

2,200,000

3,500,000

Number of Private Placements

2

Number of Units Sold

13

13

22

Unit Description

Each unit is comprised of 100,000 shares of common stock at a price of $0.06 cents per share and one warrant to purchase an additional 100,000 shares of common stock at a price of $0.10 cents per share at any time prior to August 31, 2018

each unit including 100,000 shares of common stock and warrants to purchase 100,000 shares of common stock at an exercise price of $0.10 per share at any time prior to August 31, 2018

each unit including 100,000 shares of common stock and warrants to purchase 100,000 shares of common stock at an exercise price of $0.12 per share at any time prior to August 5, 2018

Each unit is comprised of 100,000 shares of common stock at a price of $0.10 cents per share and warrants to purchase an additional 100,000 shares of common stock at a price of $0.12 cents per share at any time prior to August 5, 2018.

Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares

$ 0.10

$ 0.10

$ 0.12

$ 0.10

$ 0.10

Unit, Price per unit (in Dollars per Item) | $ / item

6,000

10,000

Sale of Stock, Price Per Share (in Dollars per share) | $ / shares

$ 0.06

Units Subscribed

14

Proceeds from Issuance or Sale of Equity (in Dollars) | $

$ 60,000

Gains (Losses) on Restructuring of Debt (in Dollars) | $

$ (69,107)

Class of Warrant or Right, Granted

1

Warrant, Number of Shares Granted Upon Exercise of Warrant

100,000

Subsequent Event [Member]

NOTE 5. EQUITY (Details) [Line Items]

Stock Issued During Period, Shares, Restricted Stock Award, Gross

6,000,000

Subsequent Event [Member] | Private Placement [Member]

NOTE 5. EQUITY (Details) [Line Items]

Stock Issued During Period, Shares, New Issues

1,500,000

Number of Units Sold

15

Unit Description

each consisting of 100,000 shares of restricted common stock and a warrant to purchase an additional 100,000 shares of common stock at an exercise price of $0.10 per share at any time prior to August 31, 2018

Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares

$ 0.10

Unit, Price per unit (in Dollars per Item) | $ / item

6,000

Proceeds from Issuance or Sale of Equity (in Dollars) | $

$ 90,000

Class of Warrant or Right, Granted

1,500,000

Employee Stock Option [Member]

NOTE 5. EQUITY (Details) [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

1,000,000

500,000

Option Exercise Price (in Dollars per share) | $ / shares

$ 0.06

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

36 months

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Fair Value (in Dollars) | $

$ 129,126

Stock Issued During Period, Shares, Restricted Stock Award, Gross

1,000,000

Stock Issued During Period, Value, Restricted Stock Award, Gross (in Dollars) | $

$ 60,000

Former CEO [Member]

NOTE 5. EQUITY (Details) [Line Items]

Share-based Compensation (in Dollars) | $

$ 33,778

Stock Repurchased and Retired During Period, Shares

400,000

Board of Directors Chairman [Member]

NOTE 5. EQUITY (Details) [Line Items]

Stock Issued During Period, Shares, New Issues

1,630,000

Sale of Stock, Price Per Share (in Dollars per share) | $ / shares

$ 0.08

Equity Method Investment, Ownership Percentage

10.00%

Immediate Family Member of Management or Principal Owner [Member] | Private Placement [Member]

NOTE 5. EQUITY (Details) [Line Items]

Stock Issued During Period, Shares, New Issues

300,000

Director [Member] | Private Placement [Member]

NOTE 5. EQUITY (Details) [Line Items]

Stock Issued During Period, Shares, New Issues

300,000

Director [Member] | Employee Stock Option [Member]

NOTE 5. EQUITY (Details) [Line Items]

Option Exercise Price (in Dollars per share) | $ / shares

$ 0.06

Director #2 [Member] | Private Placement [Member]

NOTE 5. EQUITY (Details) [Line Items]

Stock Issued During Period, Shares, New Issues

300,000

Contract Operator [Member] | Private Placement [Member]

NOTE 5. EQUITY (Details) [Line Items]

Stock Issued During Period, Shares, New Issues

100,000

Affiliated Entity [Member]

NOTE 5. EQUITY (Details) [Line Items]

Equity Method Investment, Ownership Percentage

100.00%

Affiliated Entity [Member] | Employee Stock Option [Member]

NOTE 5. EQUITY (Details) [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

36 months

2015 Stock Incentive Plan [Member]

NOTE 5. EQUITY (Details) [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized

4,000,000

Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized, Fair Value (in Dollars) | $

$ 129,128

Conversion of Debt [Member]

NOTE 5. EQUITY (Details) [Line Items]

Units Subscribed

8

Stock Issued During Period, Shares, Conversion of Convertible Securities

600,000

NOTE 5. EQUITY (Details) - Sch

NOTE 5. EQUITY (Details) - Schedule of Stockholders' Equity Note, Warrants or Rights - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Schedule of Stockholders' Equity Note, Warrants or Rights [Abstract]
Warrants Outstanding		4,170,111
Warrants Outstanding, Weighted Average Exercise Price		$ 0.77
Warrants Outstanding, Aggregate Intrinsic Value		$ 0
Warrants Outstanding, Weighted Average Remianing Contractual Term	4 years 222 days	6 years 21 days
Granted	3,500,000
Granted	$ 0.11
Granted	2 years 317 days
Exercised	0
Exercised	$ 0
Expired	0
Expired	$ 0
Warrants Outstanding	7,670,111
Warrants Outstanding, Weighted Average Exercise Price	$ 0.47
Warrants Outstanding, Aggregate Intrinsic Value	$ 0

NOTE 7. SUBSEQUENT EVENTS (Deta

NOTE 7. SUBSEQUENT EVENTS (Details) $ / shares in Units, bbl in Millions	Nov. 04, 2015USD ($)asharesbbl	Sep. 23, 2015	Sep. 01, 2015$ / sharesshares	May. 01, 2015USD ($)shares	Sep. 30, 2015$ / shares$ / itemshares	May. 30, 2015$ / sharesshares	Nov. 20, 2015USD ($)$ / shares$ / itemshares	Sep. 30, 2015$ / shares$ / itemshares
NOTE 7. SUBSEQUENT EVENTS (Details) [Line Items]
Working interest		10.00%
Debt Instrument, Collateral	1,000,000 shares of restricted common stock of the Company
Class of Warrant or Right, Granted (in Shares) | shares								3,500,000
Private Placement [Member]
NOTE 7. SUBSEQUENT EVENTS (Details) [Line Items]
Unit Description			Each unit is comprised of 100,000 shares of common stock at a price of $0.06 cents per share and one warrant to purchase an additional 100,000 shares of common stock at a price of $0.10 cents per share at any time prior to August 31, 2018		each unit including 100,000 shares of common stock and warrants to purchase 100,000 shares of common stock at an exercise price of $0.10 per share at any time prior to August 31, 2018	each unit including 100,000 shares of common stock and warrants to purchase 100,000 shares of common stock at an exercise price of $0.12 per share at any time prior to August 5, 2018		Each unit is comprised of 100,000 shares of common stock at a price of $0.10 cents per share and warrants to purchase an additional 100,000 shares of common stock at a price of $0.12 cents per share at any time prior to August 5, 2018.
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares			$ 0.10		$ 0.10	$ 0.12		$ 0.10
Unit, Price per unit (in Dollars per Item) | $ / item					6,000			10,000
Number of Units Sold			13		13	22
Stock Issued During Period, Shares, New Issues (in Shares) | shares			1,300,000	1,400,000	1,300,000	2,200,000		3,500,000
Class of Warrant or Right, Granted (in Shares) | shares			1
Proceeds from Issuance or Sale of Equity (in Dollars)				$ 60,000
Subsequent Event [Member]
NOTE 7. SUBSEQUENT EVENTS (Details) [Line Items]
Financing Receivable, Net (in Dollars)	$ 1,300,000
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares) | shares	6,000,000
Subsequent Event [Member] | Private Placement [Member]
NOTE 7. SUBSEQUENT EVENTS (Details) [Line Items]
Unit Description							each consisting of 100,000 shares of restricted common stock and a warrant to purchase an additional 100,000 shares of common stock at an exercise price of $0.10 per share at any time prior to August 31, 2018
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share) | $ / shares							$ 0.10
Unit, Price per unit (in Dollars per Item) | $ / item							6,000
Number of Units Sold							15
Stock Issued During Period, Shares, New Issues (in Shares) | shares							1,500,000
Class of Warrant or Right, Granted (in Shares) | shares							1,500,000
Proceeds from Issuance or Sale of Equity (in Dollars)							$ 90,000
Subsequent Event [Member] | Twin Lakes San Andres Unit Interest Acquisition [Member
NOTE 7. SUBSEQUENT EVENTS (Details) [Line Items]
Working interest	15.00%
Acquisition Costs, Period Cost (in Dollars)	$ 196,875
Payments to Acquire Oil and Gas Property and Equipment (in Dollars)	50,000
Debt Instrument, Face Amount (in Dollars)	$ 146,875
Debt Instrument, Maturity Date	Dec. 31, 2015
Note Receivable, Interest Rate	10.00%
Debt Instrument, Maturity Date, Description	The Company also has the right to a one-time extension of the maturity date of the note (extending the maturity date for 90 days) if we issue BSNM 500,000 additional shares of restricted common stock
Gas and Oil Area, Developed, Net (in Acres) | a	4,864
Productive Oil Wells, Number of Wells, Gross	130
Productive Oil Wells, Number of Wells, Net	6
Proved Developed Reserves (Volume) (in Barrels (of Oil)) | bbl	2.8
Oil and Gas Interest	100.00%
Maximum [Member] | Subsequent Event [Member] | Twin Lakes San Andres Unit Interest Acquisition [Member
NOTE 7. SUBSEQUENT EVENTS (Details) [Line Items]
Other Commitment (in Dollars)	$ 400,000