Meta Materials (MMATQ) 10-K/A 21 Oct 14 2013 FY Annual report (amended) Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Mar. 20, 2014	Jun. 30, 2013
Document and Entity Information	'	'	'
Entity Registrant Name	'TORCHLIGHT ENERGY RESOURCES INC	'	'
Document Type	'10-K	'	'
Document Period End Date	31-Dec-13	'	'
Amendment Flag	'true	'	'
Amendment Decription	'This amendment is being filed to comply with regulations	'	'
Entity Central Index Key	'0001431959	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Common Stock, Shares Outstanding	'	18,270,408	'
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	'	'
Entity Public Float	'	'	$16,402,207

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Dec. 31, 2012
Current assets:	'	'
Cash	$1,811,713	$63,252
Accounts receivable	429,699	92,897
Prepaid expenses	9,144	8,346
Total current assets	2,250,556	164,495
Investment in oil and gas properties, net	13,038,751	3,461,686
Office equipment	11,604	'
Debt issuance costs, net	920,947	473,785
Goodwill,	447,084	447,084
Other Assets	74,379	0
TOTAL ASSETS	16,743,321	4,547,050
Current liabilities:	'	'
Accounts payable	985,123	89,247
Accrued liabilities	0	62,055
Related party payables	90,000	768,648
Notes payable	753,904	51,000
Due to working interest owners	580,484	0
Interest payable	309,498	10,581
Total current liabilities	2,719,009	981,531
Convertible promissory notes, net of discount of $5,500,462 and $521,864 at December 31, 2013 and December 31, 2012, respectively	4,802,711	580,636
Asset retirement obligation	24,382	12,614
Commitments and contingencies,	'	'
Stockholders' equity:	'	'
Common stock, par value $0.001 per share; 75,000,000 shares authorized;16,141,765 issued and outstanding at December 30, 2013 13,564,815 issued and outstanding at December 31, 2012	16,142	13,565
Additional paid-in capital	21,978,616	8,381,001
Warrants outstanding	3,043,420	0
Accumulated deficit	-15,840,959	-5,422,297
Total stockholders' equity	9,197,219	2,972,269
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$16,743,321	$4,547,050

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Assets [Abstract]	'	'
Discount of Promissory notes	$5,500,462	$521,864
Common Stock, par or stated value	$0.00	$0.00
Common Stock, shares authorized	75,000,000	75,000,000
Common Stock, shares issued	16,141,765	13,564,815
Common Stock, shares outstanding	16,141,765	13,564,815

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Revenues [Abstract]	'	'
Oil and gas sales	$1,243,998	$1,037,247
Royalties	51,501	0
Cost of revenue	-434,119	-500,053
Gross income	861,380	537,194
Operating expenses:	'	'
General and administrative	6,682,377	2,430,884
Depreciation, depletion and amortization	652,179	551,890
Total operating expenses	7,334,556	2,982,774
Other income (expense)	'	'
Forgiveness of debt income	660,000	0
Interest income	59	12
Interest and accretion expense	-4,605,545	-363,235
Total other income (expense)	-3,945,486	-363,223
Net loss before taxes	-10,418,662	-2,808,803
Provision for income taxes	0	0
Net (loss)	($10,418,662)	($2,808,803)
Loss per share:	'	'
Basic and Diluted	($0.74)	($0.21)
Weighted average shares outstanding:	'	'
Basic and Diluted,	14,016,240	13,564,815

CONSOLIDATED_STATEMENT_OF_STOC

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $)	Common Stock Shares	Common Stock Amount	Additional Paid In Capital	Accumulated Deficit	Warrants Outstanding	Total
			USD ($)	USD ($)	USD ($)	USD ($)
Balance at Jan. 01, 2012	14,664,815	14,665	5,861,985	-2,613,494	'	3,263,156
Issuance of common stock for services	425,000	425	329,450	'	'	329,875
Shares issued in connection with promissory notes	75,000	75	67,650	'	'	67,725
Warrants issued in connection with promissory notes	'	'	$791,376	'	'	$791,376
Beneficial conversion feature on convertible notes	'	'	390,600	'	'	390,600
Warrants issued for services	'	'	938,340	'	'	938,340
Common stock retired	-1,600,000	-1,600	1,600	'	'	'
Net loss	'	'	'	-2,808,803	'	-2,808,803
Balance at Dec. 31, 2012	13,564,815	13,565	8,381,001	-5,422,297	'	2,972,269
Issuance of common stock for services	735,752	735	1,438,245	'	'	1,438,980
Shares issued in connection with promissory notes	968,628	969	1,694,123	'	'	1,695,092
Warrants issued in connection with CV promissory notes	'	'	2,531,321	'	'	2,531,321
Beneficial conversion feature on convertible notes	'	'	5,770,654	'	'	5,770,654
Warrants exercised	101,714	102	203,326	'	'	203,428
Warrants issued for services	'	'	'	'	2,920,170	2,920,170
Warrants issued in connection with stock issuance	'	'	-123,250	'	123,250	'
Common stock issued	212,500	213	849,787	'	'	850,000
Common stock issued for mineral leases	558,356	558	1,233,409	'	'	1,233,967
Net loss	'	'	'	($10,418,662)	'	($10,418,662)
Balance at Dec. 31, 2013	16,141,765	16,142	21,978,616	-15,840,959	3,043,420	9,197,219

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOW (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash Flows From Operating Activities	'	'
Net (loss),	($10,418,662)	($2,808,803)
Adjustments to reconcile net loss to net cash from operating activities:	'	'
Stock based compensation	4,331,143	1,268,216
Accretion of convertible note discounts	3,894,389	313,963
Depreciation, depletion and amortization,	652,179	551,890
Debt cancellation income	-660,000	0
Change in:	'	'
Accounts receivable,	-336,803	-75,623
Prepaid expenses,	-798	7,921
Debt issuance costs,	-967,020	0
Increase in other assets,	-74,379	0
Accounts payable and accrued liabilities,	833,820	106,291
Related party payable,	-18,648	509,898
Due to working interest owners,	255,484	0
ARO accretion,	1,360	0
Interest payable,	245,299	-4,027
Net cash used in operating activities	-2,262,636	-130,274
Cash Flows From Investing Activities	'	'
Investment in oil and gas properties,	-9,663,504	-905,326
Proceeds from the sale of oil and gas properties	0	74,571
Proceeds from sale of leases	1,076,400	0
Net cash used in investing activities	-8,587,104	-830,755
Cash Flows From Financing Activities	'	'
Proceeds from promissory notes	10,855,773	1,049,000
Repayment of promissory notes	-61,000	-543,000
Proceeds from promissory notes,	750,000	0
Proceeds from warrant exercise	203,428	0
Issuance of common stock	850,000	0
Net cash provided by financing activities	12,598,201	506,000
Net increase (decrease) in cash	1,748,461	-455,029
Cash - beginning of period	63,252	518,281
Cash - end of period	1,811,713	63,252
Supplemental disclosure of cash flow information:	'	'
Cash paid for interest expense	468,841	105,488
Cash paid for income taxes	0	0
Non cash transactions:	'	'
Common stock issued for leases	1,233,967	0
Common stock issued in connection with promissory notes	1,695,100	67,725
Warrants issued in connection with promissory notes	2,531,321	791,376
Warrants issued in connection with common stock issuance	123,250	0
Beneficial conversion feature on promissory notes	5,770,654	390,600
Exchange of promissory notes	0	412,500
Retirement of common stock	0	1,600
Asset retirement obligation	10,407	693
CV Note issued for debt issuance costs	40,000	0
Liabilities assumed in purchase of oil and gas properties	1,809,572	0
Sale of oil and gas properties in exchange for note receivable	990,000	0
Capitalized interest cost	$56,347	$0

NATURE_OF_BUSINESS

NATURE OF BUSINESS	12 Months Ended
	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
NATURE OF BUSINESS	'
	Torchlight Energy Resources, Inc. was incorporated in October 2007 under the laws of the State of Nevada as Pole Perfect Studios, Inc. (“PPS”).  From its incorporation to November 2010, the company was primarily engaged in business start-up activities.
	On November 23, 2010, we entered into and closed a Share Exchange Agreement (the “Exchange Agreement”) between the major shareholders of PPS and the shareholders of Torchlight Energy, Inc. (“TEI”).  As a result of the transactions effected by the Exchange Agreement, at closing TEI became our wholly-owned subsidiary, and the business of TEI became our sole business.  TEI was incorporated under the laws of the State of Nevada in June 2010.  We are engaged in the acquisition, exploitation and/or development of oil and natural gas properties in the United States.  In addition to TEI, we also operate our business through Torchlight Energy Operating, LLC, a Texas limited liability company and wholly-owned subsidiary.
	On December 10, 2010, we effected a 4-for-1 forward split of our shares of common stock outstanding.  All owners of record at the close of business on December 10, 2010 (record date) received three additional shares for every one share they owned.  All share amounts reflected throughout this report take into account the 4-for-1 forward split.
	Effective February 8, 2011, we changed our name to “Torchlight Energy Resources, Inc.”  In connection with the name change, our ticker symbol changed from “PPFT” to “TRCH.”
	The Company is engaged in the acquisition, exploration, development and production of oil and gas properties within the United States. The Company’s success will depend in large part on its ability to obtain and develop profitable oil and gas interests.

GOING_CONCERN

GOING CONCERN	12 Months Ended
	Dec. 31, 2013
GOING CONCERN	'
GOING CONCERN	'
	These consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year.
	At December 31, 2013, the Company had not yet achieved profitable operations, had accumulated losses of $15,840,959 since its inception and expects to incur further losses in the development of its business.  The Company’s ability to continue as a going concern is dependent on its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.  Management’s plan to address the Company’s ability to continue as a going concern includes:  (1) obtaining debt or equity funding from private placement or institutional sources; (2) obtain loans from financial institutions, where possible, or (3) participating in joint venture transactions with third parties.  Although management believes that it will be able to obtain the necessary funding to allow the Company to remain a going concern through the methods discussed above, there can be no assurances that such methods will prove successful.  The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

SIGNIFICANT_ACCOUNTING_POLICIE

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
Significant Accounting Policies	'
	3. SIGNIFICANT ACCOUNTING POLICIES
	The Company maintains its accounts on the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America. Accounting principles followed and the methods of applying those principles, which materially affect the determination of financial position, results of operations and cash flows are summarized below:
	Use of estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and certain assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ from these estimates.
	Basis of presentation—The financial statements are presented on a consolidated basis and include all of the accounts of Torchlight Energy Resources Inc. and its wholly owned subsidiary, Torchlight Energy, Inc. All significant intercompany balances and transactions have been eliminated.
	Risks and uncertainties – The Company’s operations are subject to significant risks and uncertainties, including financial, operational, technological and other risks associated with operating an emerging business, including the potential risk of business failure.
	Concentration of risks – The Company’s cash is placed with a highly rated financial institution, and the Company periodically reviews the credit worthiness of the financial institutions with which it does business. At times the Company’s cash balances are in excess of amounts guaranteed by the Federal Deposit Insurance Corporation.
	Fair value of financial instruments – Financial instruments consist of cash, accounts receivable, accounts payable, notes payable to related party and convertible promissory notes. The estimated fair values of cash, accounts receivable, accounts payable and related party payables approximate the carrying amount due to the relatively short maturity of these instruments. The carrying amounts of the convertible promissory notes approximate their fair value giving affect for the term of the note and the effective interest rates.
	For assets and liabilities that require re-measurement to fair value the Company categorizes them in a three-level fair value hierarchy as follows:
	·         Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
	·         Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration.
	·         Level 3 inputs are unobservable inputs based on management’s own assumptions used to measure assets and liabilities at fair value.
	A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.
	Accounts receivable – Accounts receivable consist of uncollateralized oil and natural gas revenues due under normal trade terms, as well as amounts due from working interest owners of oil and gas properties for their share of expenses paid on their behalf by the Company. Management reviews receivables periodically and reduces the carrying amount by a valuation allowance that reflects management’s best estimate of the amount that may not be collectible. As of December 31, 2013 and December 31, 2012 no valuation allowance was considered necessary.
	Investment in oil and gas properties – The Company uses the full cost method of accounting for exploration and development activities as defined by the Securities and Exchange Commission (“SEC”). Under this method of accounting, the costs of unsuccessful, as well as successful, exploration and development activities are capitalized as properties and equipment. This includes any internal costs that are directly related to property acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Gain or loss on the sale or other disposition of oil and gas properties is not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves.
	Oil and gas properties include costs that are excluded from costs being depleted or amortized. Oil and natural gas property costs excluded represent investments in unevaluated properties and include non-producing leasehold, geological and geophysical costs associated with leasehold or drilling interests and exploration drilling costs. The Company allocates a portion of its acquisition costs to unevaluated properties based on relative value. Costs are transferred to the full cost pool as the properties are evaluated over the life of the reservoir.
	Capitalized interest - The Company capitalizes interest on unevaluated properties during the periods in which they are excluded from costs being depleted or amortized.  During years ended December 31, 2013 and 2012, the Company capitalized $104,821 and $48,474, respectively, of interest on unevaluated properties.
	Depreciation, depletion and amortization –The depreciable base for oil and natural gas properties includes the sum of all capitalized costs net of accumulated depreciation, depletion and amortization (“DD&A”), estimated future development costs and asset retirement costs not included in oil and natural gas properties, less costs excluded from amortization. The depreciable base of oil and natural gas properties is amortized on a unit-of-production method.
	Ceiling test – Future production volumes from oil and gas properties are a significant factor in determining the full cost ceiling limitation of capitalized costs. Under the full cost method of accounting, the Company is required to periodically perform a “ceiling test” that determines a limit on the book value of oil and gas properties. If the net capitalized cost of proved oil and gas properties, net of related deferred income taxes, plus the cost of unproved oil and gas properties, exceeds the present value of estimated future net cash flows discounted at 10 percent, net of related tax affects, plus the cost of unproved oil and gas properties, the excess is charged to expense and reflected as additional accumulated DD&A. The ceiling test calculation uses a commodity price assumption which is based on the unweighted arithmetic average of the price on the first day of each month for each month within the prior 12 month period and excludes future cash outflows related to estimated abandonment costs. The Company did not recognize impairment on its oil and gas properties during the years ended December 31, 2013 and 2012. Due to the volatility of commodity prices, should oil and natural gas prices decline in the future, it is possible that a write-down could occur.
	Proved reserves are estimated quantities of crude oil, natural gas, and natural gas liquids, which geological and engineering data demonstrate with reasonable certainty to be recoverable from known reservoirs under existing economic and operating conditions. The independent engineering estimates include only those amounts considered to be proved reserves and do not include additional amounts which may result from new discoveries in the future, or from application of secondary and tertiary recovery processes where facilities are not in place or for which transportation and/or marketing contracts are not in place. Estimated reserves to be developed through secondary or tertiary recovery processes are classified as unevaluated properties.
	The determination of oil and gas reserves is a subjective process, and the accuracy of any reserve estimate depends on the quality of available data and the application of engineering and geological interpretation and judgment. Estimates of economically recoverable reserves and future net cash flows depend on a number of variable factors and assumptions that are difficult to predict and may vary considerably from actual results. In particular, reserve estimates for wells with limited or no production history are less reliable than those based on actual production. Subsequent re-evaluation of reserves and cost estimates related to future development of proved oil and gas reserves could result in significant revisions to proved reserves.  Other issues, such as changes in regulatory requirements, technological advances and other factors which are difficult to predict could also affect estimates of proved reserves in the future.
	Gains and losses on the sale of oil and gas properties are not generally reflected in income. Sales of less than 100% of the Company’s interest in the oil and gas property are treated as a reduction of the capital cost of the field, with no gain or loss recognized, as long as doing so does not significantly affect the unit-of-production depletion rate. Costs of retired equipment, net of salvage value, are usually charged to accumulated depreciation.
	Goodwill - Goodwill represents the excess of the purchase price over the fair value of the net identifiable tangible and intangible assets of acquired companies. Goodwill is not amortized; instead, it is tested for impairment annually or more frequently if indicators of impairment exist.
	Goodwill was $447,084 as of December 31, 2013 and December 31, 2012, and was acquired on November 23, 2010 in connection with the Company’s reverse acquisition (Note 1).
	Asset retirement obligations – Accounting principles require that the fair value of a liability for an asset’s retirement obligation (“ARO”) be recorded in the period in which it is incurred if a reasonable estimate of fair value can be made, and that the corresponding cost be capitalized as part of the carrying amount of the related long-lived asset. The liability is accreted to its then-present value each subsequent period, and the capitalized cost is depleted over the useful life of the related asset. Abandonment cost incurred is recorded as a reduction to the ARO liability.
	Inherent in the fair value calculation of an ARO are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the oil and gas property balance. Settlements greater than or less than amounts accrued as ARO are recorded as a gain or loss upon settlement.
	Asset retirement obligation activity is disclosed in Note 10.
	Share-based compensation– Compensation cost for equity awards is based on the fair value of the equity instrument on the date of grant and is recognized over the period during which an employee is required to provide service in exchange for the award. Compensation cost for liability awards is based on the fair value of the vested award at the end of each period.
	Revenue recognition – The Company recognizes oil and gas revenues when production is sold at a fixed or determinable price, persuasive evidence of an arrangement exists, delivery has occurred and title has transferred, and collectability is reasonably assured.
	Basic and diluted earnings (loss) per share - Basic earnings (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per common share is computed in the same way as basic earnings (loss) per common share except that the denominator is increased to include the number of additional common shares that would be outstanding if all potential common shares had been issued and if the additional common shares were dilutive.  The Company has not included potentially dilutive securities in the calculation of loss per share for any periods presented as the effects would be anti-dilutive.
	Environmental laws and regulations – The Company is subject to extensive federal, state and local environmental laws and regulations. Environmental expenditures are expensed or capitalized depending on their future economic benefit. The Company believes that it is in compliance with existing laws and regulations.
	Recent accounting pronouncements – In September 2011, the FASB issued guidance that amends and simplifies the rules related to testing goodwill for impairment. The revised guidance allows an entity to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination whether it is more likely than not that the fair value of reporting unit is less than its carrying amount. The results of this assessment will determine whether it is necessary to perform the currently required two-step impairment test. Under this update, an entity also has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the two-step goodwill impairment test. This guidance is effective for annual periods beginning after December 15, 2011. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements.
	Other recently issued or adopted accounting pronouncements are not expected to have, or did not have, a material impact on the Company’s financial position or results from operations.
	Subsequent events – The Company evaluated subsequent events through March 28 2014, the date of issuance of the financial statements. Subsequent events are disclosed in Note 11.

RELATED_PARTY_PAYABLES

RELATED PARTY PAYABLES.	12 Months Ended
	Dec. 31, 2013
RELATED PARTY PAYABLES.	'
RELATED PARTY PAYABLES.	'
	4. RELATED PARTY PAYABLES
	As of December 31, 2013, related party payables consisted of accrued and unpaid compensation to two of our executive officers totaling $90,000. The related party payables at December 31, 2012 included $660,000 of accrued compensation due to our executive officers and directors. The officers forgave the $660,000 of related party debt during third quarter, 2013.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2013
COMMITMENTS AND CONTINGENCIES	'
COMMITMENTS AND CONTINGENCIES	'
	5. COMMITMENTS AND CONTINGENCIES
	The Company is subject to contingencies as a result of environmental laws and regulations.  Present and future environmental laws and regulations applicable to the Company’s operations could require substantial capital expenditures or could adversely affect its operations in other ways that cannot be predicted at this time.  As of December 31, 2013 and 2012, no amounts had been recorded because no specific liability has been identified that is reasonably probable of requiring the Company to fund any future material amounts.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2013
Stockholders' equity:	'
STOCKHOLDERS' EQUITY	'
	6. STOCKHOLDERS’ EQUITY
	The Board of Directors does not currently have the authority to issue any shares of preferred stock. As of December 31, 2013 and 2012 there were no issued and outstanding shares of preferred stock and there were no agreements or understandings for the issuance of preferred stock.
	During the years ended December 31, 2013 and 2012, the Company issued 735,752 and 425,000 shares of common stock, respectively, as compensation for services, with total values of $1,438,977 and $329,875.
	During the years ended December 31, 2013 and 2012, the Company issued 2,403,174 and -0- warrants, respectively, as compensation for services, with a total values of $2,920,170 and $-0-.
	During the year ended December 31, 2013 and 2012, the Company issued 1,308,124 and 126,000 warrants, respectively, in connection with financing transactions discussed in Note 9, including 552,057 and -0- warrants issued to the placement agent.
	During the year ended December 31, 2013, the Company issued 558,356 shares of Common Stock as acquisition of lease interests valued at $1,233,967.
	During the year ended December 31, 2013 the Company issued 969,000 shares of Common Stock in conversions of 12% Convertible Notes Payable valued at $1,695,100.
	During the year ended December 31, 2013 the Company issued 101,714 shares of Common Stock resulting from Warrant exercises for cash totaling $203,428.
	During December 2013 and early January 2014, we sold to investors in a private offering an aggregate of 350,000 shares of restricted common stock and 87,500 warrants to purchase shares of restricted common stock.  Each warrant has an exercise price of $6.00 per share and expires on December 31, 2018.  We received aggregate consideration of $1,400,000 for the securities, $850,000 in December and $550,000 in January, 2014. Warrants were issued in connection with the $850,000 in notes issued in December – 53,125 valued at $123,250.
	A summary of stock options and warrants outstanding as of December 31, 2013 by exercise price and year of expiration is presented below:
	Exercise			Expiration Date in
	Price		2014	2015	2016	2017	2018	Total
	$	1.75	80,000	855,000	1,235,714	-	-	2,170,714
	$	2	-	-	1,050,264	126,000	1,696,380	2,872,644
	$	2.09	-	-	-	-	1,100,000	1,100,000
	$	2.5	225,000	50,000	100,000	-	-	375,000
	$	2.75	-	-	250,000	-	-	250,000
	$	2.82	-	-	-	-	38,174	38,174
	$	3	-	-	100,000	-	-	100,000
	$	5	778,356	-	25,000	-	-	803,356
	$	6	-	-	-	-	53,125	53,125
			1,083,356	905,000	2,760,978	126,000	2,887,679	7,763,013
	At December 31, 2013 the Company had reserved 7,763,013 shares for future exercise of warrants.
	Warrants issued in relation to the promissory notes issued (see note 9) were valued using the Black Scholes Option Pricing Model. The assumptions used in calculating the fair value of the warrants issued are as follows:
	Risk-free interest rate	0.78%
	Expected volatility of common stock	191% - 253%
	Dividend yield	0.00%
	Discount due to lack of marketability	30.00%
	Expected life of warrant	3 years - 5 years

CAPITALIZED_COSTS

CAPITALIZED COSTS	12 Months Ended
	Dec. 31, 2013
CAPITALIZED COSTS	'
CAPITALIZED COSTS	'
	The following table presents the capitalized costs of the Company as of December 31, 2013 and December 31, 2012:
		2013			2012
	Evaluated costs subject to amortization	$	9,484,014		$	3,435,918
	Unevaluated costs		4,758,806			577,658
	Total capitalized costs		14,242,820			4,013,576
	Less accumulated depreciation, depletion  and amortization		(1,204,069	)		(551,890	)
	Net capitalized costs	$	13,038,751		$	3,461,686
	Unevaluated costs as of December 31, 2013 consisted of $639,609 associated with the Company’s interest in the Coulter #1 well.  The Coulter #1 wells is undergoing production and test operations with the goal of removing sufficient water from the wellbore to allow production of natural gas.  The unevaluated costs as of December 31, 2013 consisted entirely of the Company’s interest in the Coulter #1 well.
	In April 2013, we entered into an agreement to acquire certain assets of Xtreme Oil & Gas, Inc. of Plano, Texas (“Xtreme”).  Included in that agreement were the Smokey Hills Prospect in McPherson County, Kansas, the Cimarron Area Hunton Project in Logan County, Oklahoma,  and an interest in a salt water disposal facility in Seminole, Oklahoma.  Total consideration for all the properties was $1.6 million allocated to $940,820 to the Smokey Hills Project and $659,180 to the Cimarron Area.

INCOME_TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2013
Income Taxes	'
Income Tax Disclosure	'
	8. INCOME TAXES
	Income taxes are accounted for under the asset and liability method.  Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.  A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized.  The Company has placed a 100% valuation allowance against the net deferred tax asset because future realization of these assets is not assured.
	Authoritative guidance for uncertainty in income taxes requires that the Company recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an examination.  Management has reviewed the Company’s tax positions and determined there were no uncertain tax positions requiring recognition in the consolidated financial statements.  The Company’s tax returns remain subject to Federal and State tax examinations for all tax years since inception as none of the statutes have expired.  Generally, the applicable statutes of limitation are three to four years from their respective filings.
	Estimated interest and penalties related to potential underpayment on any unrecognized tax benefits are classified as a component of tax expense in the statement of operation.  The Company has not recorded any interest or penalties associated with unrecognized tax benefits for any periods covered by these financial statements.
	The following is a reconciliation between the federal income tax benefit computed at the statutory federal income tax rate of 34% and actual income tax provision for the years ended December 31, 2013 and December 31, 2012:
		Year ended		Year ended
		Dec. 31, 2013		Dec. 31, 2012
	Federal income tax benefit at statutory rate	-3,542,345		-954,993
	Permanent Differences	696,631		84,574
	Other	-470,413		-22,185
	Change in valuation allowance	3,316,127		892,604
	Provision for income taxes	0		0
	The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities at December 31, 2013 and December 31, 2012 are as follows:
		Dec. 31, 2013			Dec. 31, 2012
	Deferred tax assets:
	Net operating loss carryforward	$	4,229,034		$	1,988,631
	Accruals		30,600			163,200
	Reserves		1,132,778			372
	Deferred tax liabilities:
	Intangible drilling and other costs for oil and gas properties		-318,039			-393,958
	Net deferred tax assets and liabilities		5,074,373			1,758,245
	Less valuation allowance		-5,074,373			-1,758,245
	Total deferred tax assets and liabilities	$	-		$	-
	The Company had a net deferred tax asset related to federal net operating loss carry forwards of $12,620,377 and $5,616,449 at December 31, 2013 and December 31, 2012, respectively.  The federal net operating loss carry forward will begin to expire in 2030.  Realization of the deferred tax asset is dependent, in part, on generating sufficient taxable income prior to expiration of the loss carry forwards.  The Company has placed a 100% valuation allowance against the net deferred tax asset because future realization of these assets is not assured.

PROMISSORY_NOTES

PROMISSORY NOTES	12 Months Ended
	Dec. 31, 2013
PROMISSORY NOTES	'
Promissory Notes	'
	9. PROMISSORY NOTES
	On December 18, 2012, the Company exchanged $412,500 of outstanding convertible promissory notes for new 12% Series A Secured Convertible Promissory Notes (12% Notes) described below.  The 12% Notes were issued as part of a larger offering with senior liens on the Company’s oil and gas properties.  In order to induce the holders of the previously outstanding convertible promissory notes to exchange such promissory notes and to relinquish their priority liens on the Company’s oil and gas properties in favor of all 12% Convertible Promissory Note Holders, the Company agreed to grant the note holders a total of 235,714 four year warrants to purchase common stock at $1.75 per share, valued at $240,428, and 235,714 four year warrants to purchase common stock at $2.00 per share, valued at $233,357.  The total of these warrants, $473,785, is reflected as debt issuance costs on the balance sheet as of December 31, 2012, as these costs relate to the larger offering of 12% Convertible Promissory Notes.
	On December 18, 2012, the Company issued $690,000 of 12% Notes to new investors.  Together with the conversion described above, there was $1,102,500 of principal amount outstanding as of December 31, 2012.  The 12% Notes are due and payable on March 31, 2015 and provide for conversion into common stock at a price of $1.75 per share and include the issuance of 8,000 warrants for each $70,000 of principal amount purchase.  The warrants carry a five year term and have an exercise price of $2.00 per share.  They were valued at $137,340, which is reflected as a discount on the 12% Notes, to be amortized over the life of the debt under the effective interest method.  Since the conversion price on the 12% Notes was below the market price of the Company’s common stock on the date of issuance, this constitutes a beneficial conversion feature.  The amount is calculated as the difference between the market price of the common stock on the date of closing and the effective conversion price as adjusted by the discount for the warrants issued.  The amount of the beneficial conversion feature was $390,600, and is also reflected as a discount on the 12% Notes.  The fair value of the Convertible Promissory Notes is determined utilizing Level 2 measurements in the fair value hierarchy.
	During the year ended December 31, 2013, the Company issued an additional $11,405,773 in principal value of 12% Notes.  Such notes carry the same terms as described above.  In connection therewith, the Company also issued a total of 1,308,082 five-year warrants to purchase common stock at an exercise price of $2.00 per share.  The value of the warrant shares was $1,917,158 and the amount recorded for the beneficial conversion feature was $5,770,654.  These amounts were recorded as a discount on the 12% Notes.  In addition, the Company engaged a placement agent to source investors for the majority of these additional notes.  This placement agent was paid a fee of 10% of the principal amount of the notes plus a non-accountable expense reimbursement of up to 2% of the principal raised by the agent.  The placement agent also received 552,057 warrants to purchase common shares at $2.00 per share for a period of three years, valued at $614,163.  All the amounts paid to the placement agent have been included in debt issuance costs and will be amortized into interest expense over the life of the 12% Notes.
	The 12% Notes have a first priority lien on all of the assets of the Company.  The Company was previously required to set aside in a separate account, an amount of funds equal to the (x) outstanding principal amount of each 12% Note divided by the total number of full calendar months after the date of issuance of that 12% Note until the maturity date, plus (y) the annual amount of simple interest to accrue on the outstanding principal amount of that 12% Note divided by 12.    The sinking fund requirement was waived by the note holders during the quarter that ended September 30, 2013.
	The Company is obligated on a short term note payable for $750,000 which is due June 12, 2014 with 10% interest at maturity.

ASSET_RETIREMENT_OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS	12 Months Ended
	Dec. 31, 2013
ASSET RETIREMENT OBLIGATIONS	'
ASSET RETIREMENT OBLIGATIONS	'
	10. ASSET RETIREMENT OBLIGATIONS
	The following is a reconciliation of the asset retirement obligation liability through December 31, 2013:
	Asset retirement obligation – January 1, 2012	$	11,369
	Adjustment to estimated liability		693
	Accretion expense		552
	Asset retirement obligation – December 31, 2012	$	12,614
	Estimated liabilities recorded	$	10,407
	Accretion Expense		1,361
	Asset retirement obligation – December 31, 2013	$	24,382

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2013
SUBSEQUENT EVENTS	'
SUBSEQUENT EVENTS	'
	During December 2013 and early January 2014, we sold to investors in a private offering an aggregate of 350,000 shares of restricted common stock and 87,500 warrants to purchase shares of restricted common stock.  Each warrant has an exercise price of $6.00 per share and expires on December 31, 2018.  We received aggregate consideration of $1,400,000 for the securities, $850,000 in December and $550,000 in January 2014.
	On January 31, 2014, we sold to investors in a private offering an aggregate of 1,400,000 shares of restricted common stock and 350,041 warrants to purchase shares of restricted common stock.  Each warrant has an exercise price of $6.00 per share and expires on December 31, 2018.  The securities were sold in units, each of which consisted of one share of common stock and ј of a warrant to purchase a share of common stock (the “Units”).  We received aggregate consideration of $5,600,000 for the securities.  In connection with the sale of these securities, we paid National Securities Corporation, the placement agent, a fee of $560,000 and paid additional transaction expenses of approximately $25,000 plus issued the placement agent warrants to purchase a total of 140,000 Units at an exercise price of $6.00 per Unit until December 31, 2018.
	We also granted registration rights to the purchasers in both offerings, whereby, under certain terms and conditions, we agreed to use our best efforts to file a registration statement with the Securities and Exchange Commission covering the resale of the common stock purchased in the offerings and the shares of common stock underlying the warrants purchased in the offerings.

Unaudited_Supplementary_Inform

Unaudited Supplementary Information	12 Months Ended
	Dec. 31, 2013
Unaudited Supplementary Information	'
Unaudited supplementary information	'
	December 31, 2013 and 2012
	Investment in oil and gas properties for 2013 is detailed as follows:
		2013			2012
	Property acquisition costs	$	6,274,154		$	529,184
	Development costs		3,885,730			323,955
	Exploratory costs	$	-0-		$	-0-
	Oil and Natural Gas Reserves
	Standardized Measure of Oil & Gas Quantities - Volume Rollforward
	Years Ended December 31, 2013 and 2012
	The following table sets forth the Company’s net proved reserves, including the changes therein, and proved developed reserves:
		2013						2012
		Oil (Bbls)			Gas (Mcf)			Oil (Bbls)			Gas (Mcf)
	TOTAL PROVED RESERVES:
	Beginning of period		417,500			-			-			-
	Acquisition		572,461			3,139,596			-			-
	Extensions and discoveries		101,229			-			428,155			-
	Revisions of previous estimates		(34,743	)		3,539			-			-
	Production		(13,286	)		(3,540	)		(10,655	)		-
	End of period		1,043,161			3,139,595			417,500			-
	PROVED DEVELOPED RESERVES
	Proved developed producing		64,858			108,001			24,800			-
	Proved developed nonproducing		48,234			205,250			-			-
	Total		113,092			313,251			24,800			-
	Total PUD		930,069			2,826,344			392,700			-
	The preceding table shows significant increase in  the Acquisition  category for 2013 as compared to 2012.
	The 2013 Extension and Discoveries is impacted by drilling of the Johnson #2 well in the Buda formation, which resulted in the addition of two new proved undeveloped locations.  Additionally, four new proved undeveloped locations offset to the Johnson #1 in the Austin Chalk formation were added.  The Buda locations account for a 45,613 BO increase in proved reserves, and the Austin Chalk locations account for 55,616 BO in additional proved reserves.  All locations assigned are within one offsetting location away from the nearest proved producing well in the same formation.
	The 2013 Revisions of Previous Estimates are composed of revisions to the proved producing and proved undeveloped reserves. The negative 34,743 BO total revision is comprised of a positive 12,700 BO adjustment due primarily to improved performance from the Johnson 1 and Johnson 4 wells, and a negative 47,443 BO adjustment for two proved undeveloped locations in the Eagle Ford formation.  Performance of offset producing Eagle Ford wells is analyzed to estimate proved undeveloped reserves on the Company's lease, and the 2013 analysis of the offset wells resulted in a reduction of their estimated ultimate recoveries compared to 2012 estimates.
	Standardized Measure of Oil & Gas Quantities
	Year Ended December 31, 2013 & 2012
	The standardized measure of discounted future net cash flows relating
	to proved oil and natural gas reserves is as follows (in thousands):	2013			2012
	Future cash inflows	$	119,629,906		$	41,103,000
	Future production costs		(31,656,853	)		(12,413,000	)
	Future development costs		(34,152,898	)		(18,755,000	)
	Future income tax expense		(11,264,101	)		(1,012,000	)
	Future net cash flows		42,556,054			8,923,000
	10% annual discount for estimated
	timing of cash flows		(22,865,456	)		(6,014,000	)
	Standardized measure of discounted future
	net cash flows related to proved reserves	$	19,690,598		$	2,909,000
	A summary of the changes in the standardized measure of discounted
	future net cash flows applicable to proved oil and natural gas reserves
	is as follows (in thousands):
			2013			2012
	Balance, beginning of period	$	2,909,000		$	-
	Sales and transfers of oil and gas produced during the period		(905,125	)		-
	Net change in sales and transfer prices and in production (lifting) costs related to future production		2,267,471			-
	Net change due to purchases of minerals in place		30,474,988			-
	Net change due to extensions and discoveries		2,814,577			-
	Changes in estimated future development costs		(17,355,723	)		-
	Previously estimated development costs incurred during the period		3,181,356			-
	Net change due to revisions in quantity estimates		(949,883	)		-
	Other		2,001,122			-
	Accretion of discount		329,960			-
	Net change in income taxes		(5,077,145	)		-
	Balance, end of period	$	19,690,598		$	-
	Due to the inherent uncertainties and the limited nature of reservoir data, proved reserves are subject to change as additional information becomes available. The estimates of reserves, future cash flows, and present value are based on various assumptions, including those prescribed by the SEC, and are inherently imprecise. Although we believe these estimates are reasonable, actual future production, cash flows, taxes, development expenditures, operating expenses, and quantities of recoverable oil and natural gas reserves may vary substantially from these estimates.
	Reserve Estimation Process, Controls and Technologies
	The reserve estimates, including PV-10 estimates, set forth above were prepared by Netherland, Sewell & Associates, Inc. and Wright & Company, Inc.  A copy of their full reports with regard to our reserves is attached as Exhibit 99.1 to this annual report on Form 10-K.  These calculations were prepared using standard geological and engineering methods generally accepted by the petroleum industry and in accordance with SEC financial accounting and reporting standards.
	Results of Operations for Oil and Gas Producing Activities
	For the Year Ended December 31, 2013	Total			Texas			Oklahoma			Kansas
	Oil and Gas revenue	$	1,295,499		$	1,179,855		$	115,644		$	-
	Production costs		434,119			379,149			54,970			-
Depreciation, depletion, and amortization		652,179			627,997			24,182			-
Exploration expenses		-			-			-			-
		1,086,298			1,007,146			79,152			-
Income tax expense		-			-			-			-
Results of Operations (excluding corporate overhead
and interest costs)	$	209,201		$	172,709		$	36,492		$	-

SIGNIFICANT_ACCOUNTING_POLICIE1

SIGNIFICANT ACCOUNTING POLICIES (POLICIES)	12 Months Ended
	Dec. 31, 2013
Significant Accounting Policies {1}	'
Use of estimates	'
	Use of estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and certain assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ from these estimates.
Basis of presentation	'
	Basis of presentation—The financial statements are presented on a consolidated basis and include all of the accounts of Torchlight Energy Resources Inc. and its wholly owned subsidiary, Torchlight Energy, Inc. All significant intercompany balances and transactions have been eliminated.
Risks and uncertainties	'
	Risks and uncertainties – The Company’s operations are subject to significant risks and uncertainties, including financial, operational, technological and other risks associated with operating an emerging business, including the potential risk of business failure.
Concentration of risks	'Concentration of risks – The Company’s cash is placed with a highly rated financial institution, and the Company periodically reviews the credit worthiness of the financial institutions with which it does business. At times the Company’s cash balances are in excess of amounts guaranteed by the Federal Deposit Insurance Corporation
Fair value of financial instruments	'
	Fair value of financial instruments – Financial instruments consist of cash, accounts receivable, accounts payable, notes payable to related party and convertible promissory notes. The estimated fair values of cash, accounts receivable, accounts payable and related party payables approximate the carrying amount due to the relatively short maturity of these instruments. The carrying amounts of the convertible promissory notes approximate their fair value giving affect for the term of the note and the effective interest rates.
	For assets and liabilities that require re-measurement to fair value the Company categorizes them in a three-level fair value hierarchy as follows:
	·         Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
	·         Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration.
	·         Level 3 inputs are unobservable inputs based on management’s own assumptions used to measure assets and liabilities at fair value.
	A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.
Accounts receivable Policy	'
	Accounts receivable – Accounts receivable consist of uncollateralized oil and natural gas revenues due under normal trade terms, as well as amounts due from working interest owners of oil and gas properties for their share of expenses paid on their behalf by the Company. Management reviews receivables periodically and reduces the carrying amount by a valuation allowance that reflects management’s best estimate of the amount that may not be collectible. As of December 31, 2013 and December 31, 2012 no valuation allowance was considered necessary.
Investment in oil and gas properties Policy	'
	Investment in oil and gas properties – The Company uses the full cost method of accounting for exploration and development activities as defined by the Securities and Exchange Commission (“SEC”). Under this method of accounting, the costs of unsuccessful, as well as successful, exploration and development activities are capitalized as properties and equipment. This includes any internal costs that are directly related to property acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Gain or loss on the sale or other disposition of oil and gas properties is not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves.
	Oil and gas properties include costs that are excluded from costs being depleted or amortized. Oil and natural gas property costs excluded represent investments in unevaluated properties and include non-producing leasehold, geological and geophysical costs associated with leasehold or drilling interests and exploration drilling costs. The Company allocates a portion of its acquisition costs to unevaluated properties based on relative value. Costs are transferred to the full cost pool as the properties are evaluated over the life of the reservoir.
Capitalized interest	'
	Capitalized interest - The Company capitalizes interest on unevaluated properties during the periods in which they are excluded from costs being depleted or amortized.  During years ended December 31, 2013 and 2012, the Company capitalized $104,821 and $48,474, respectively, of interest on unevaluated properties.
Depreciation, depletion and amortization Policy	'
	Depreciation, depletion and amortization –The depreciable base for oil and natural gas properties includes the sum of all capitalized costs net of accumulated depreciation, depletion and amortization (“DD&A”), estimated future development costs and asset retirement costs not included in oil and natural gas properties, less costs excluded from amortization. The depreciable base of oil and natural gas properties is amortized on a unit-of-production method.
Ceiling test	'
	Ceiling test – Future production volumes from oil and gas properties are a significant factor in determining the full cost ceiling limitation of capitalized costs. Under the full cost method of accounting, the Company is required to periodically perform a “ceiling test” that determines a limit on the book value of oil and gas properties. If the net capitalized cost of proved oil and gas properties, net of related deferred income taxes, plus the cost of unproved oil and gas properties, exceeds the present value of estimated future net cash flows discounted at 10 percent, net of related tax affects, plus the cost of unproved oil and gas properties, the excess is charged to expense and reflected as additional accumulated DD&A. The ceiling test calculation uses a commodity price assumption which is based on the unweighted arithmetic average of the price on the first day of each month for each month within the prior 12 month period and excludes future cash outflows related to estimated abandonment costs. The Company did not recognize impairment on its oil and gas properties during the years ended December 31, 2013 and 2012. Due to the volatility of commodity prices, should oil and natural gas prices decline in the future, it is possible that a write-down could occur.
	Proved reserves are estimated quantities of crude oil, natural gas, and natural gas liquids, which geological and engineering data demonstrate with reasonable certainty to be recoverable from known reservoirs under existing economic and operating conditions. The independent engineering estimates include only those amounts considered to be proved reserves and do not include additional amounts which may result from new discoveries in the future, or from application of secondary and tertiary recovery processes where facilities are not in place or for which transportation and/or marketing contracts are not in place. Estimated reserves to be developed through secondary or tertiary recovery processes are classified as unevaluated properties.
	The determination of oil and gas reserves is a subjective process, and the accuracy of any reserve estimate depends on the quality of available data and the application of engineering and geological interpretation and judgment. Estimates of economically recoverable reserves and future net cash flows depend on a number of variable factors and assumptions that are difficult to predict and may vary considerably from actual results. In particular, reserve estimates for wells with limited or no production history are less reliable than those based on actual production. Subsequent re-evaluation of reserves and cost estimates related to future development of proved oil and gas reserves could result in significant revisions to proved reserves.  Other issues, such as changes in regulatory requirements, technological advances and other factors which are difficult to predict could also affect estimates of proved reserves in the future.
	Gains and losses on the sale of oil and gas properties are not generally reflected in income. Sales of less than 100% of the Company’s interest in the oil and gas property are treated as a reduction of the capital cost of the field, with no gain or loss recognized, as long as doing so does not significantly affect the unit-of-production depletion rate. Costs of retired equipment, net of salvage value, are usually charged to accumulated depreciation.
Goodwill	'
	Goodwill - Goodwill represents the excess of the purchase price over the fair value of the net identifiable tangible and intangible assets of acquired companies. Goodwill is not amortized; instead, it is tested for impairment annually or more frequently if indicators of impairment exist.
	Goodwill was $447,084 as of December 31, 2013 and December 31, 2012, and was acquired on November 23, 2010 in connection with the Company’s reverse acquisition (Note 1).
Asset retirement obligations Policy	'
	Asset retirement obligations – Accounting principles require that the fair value of a liability for an asset’s retirement obligation (“ARO”) be recorded in the period in which it is incurred if a reasonable estimate of fair value can be made, and that the corresponding cost be capitalized as part of the carrying amount of the related long-lived asset. The liability is accreted to its then-present value each subsequent period, and the capitalized cost is depleted over the useful life of the related asset. Abandonment cost incurred is recorded as a reduction to the ARO liability.
	Inherent in the fair value calculation of an ARO are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the oil and gas property balance. Settlements greater than or less than amounts accrued as ARO are recorded as a gain or loss upon settlement.
	Asset retirement obligation activity is disclosed in Note 10.
Share-Based Compensation Policy	'
	Share-based compensation– Compensation cost for equity awards is based on the fair value of the equity instrument on the date of grant and is recognized over the period during which an employee is required to provide service in exchange for the award. Compensation cost for liability awards is based on the fair value of the vested award at the end of each period.
Revenue Recognition	'
	Revenue recognition – The Company recognizes oil and gas revenues when production is sold at a fixed or determinable price, persuasive evidence of an arrangement exists, delivery has occurred and title has transferred, and collectability is reasonably assured.
Basic and Diluted Earnings (Loss) Per Share	'
	Basic and diluted earnings (loss) per share - Basic earnings (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per common share is computed in the same way as basic earnings (loss) per common share except that the denominator is increased to include the number of additional common shares that would be outstanding if all potential common shares had been issued and if the additional common shares were dilutive.  The Company has not included potentially dilutive securities in the calculation of loss per share for any periods presented as the effects would be anti-dilutive.
Environmental laws and regulations	'
	Environmental laws and regulations – The Company is subject to extensive federal, state and local environmental laws and regulations. Environmental expenditures are expensed or capitalized depending on their future economic benefit. The Company believes that it is in compliance with existing laws and regulations.
Recent accounting pronouncements	'
	Recent accounting pronouncements – In September 2011, the FASB issued guidance that amends and simplifies the rules related to testing goodwill for impairment. The revised guidance allows an entity to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination whether it is more likely than not that the fair value of reporting unit is less than its carrying amount. The results of this assessment will determine whether it is necessary to perform the currently required two-step impairment test. Under this update, an entity also has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the two-step goodwill impairment test. This guidance is effective for annual periods beginning after December 15, 2011. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements.
	Other recently issued or adopted accounting pronouncements are not expected to have, or did not have, a material impact on the Company’s financial position or results from operations.
Subsequent Events Policy	'
	Subsequent events – The Company evaluated subsequent events through March 28 2014, the date of issuance of the financial statements. Subsequent events are disclosed in Note 11.

STOCKHOLDERS_EQUITY_TABLES

STOCKHOLDERS' EQUITY (TABLES)	12 Months Ended
	Dec. 31, 2013
STOCKHOLDERS' EQUITY (TABLES)	'
Summary of warrant activity	'
	A summary of stock options and warrants outstanding as of December 31, 2013 by exercise price and year of expiration is presented below:
	Exercise			Expiration Date in
	Price		2014	2015	2016	2017	2018	Total
	$	1.75	80,000	855,000	1,235,714	-	-	2,170,714
	$	2	-	-	1,050,264	126,000	1,696,380	2,872,644
	$	2.09	-	-	-	-	1,100,000	1,100,000
	$	2.5	225,000	50,000	100,000	-	-	375,000
	$	2.75	-	-	250,000	-	-	250,000
	$	2.82	-	-	-	-	38,174	38,174
	$	3	-	-	100,000	-	-	100,000
	$	5	778,356	-	25,000	-	-	803,356
	$	6	-	-	-	-	53,125	53,125
			1,083,356	905,000	2,760,978	126,000	2,887,679	7,763,013
Assumptions used in calculating the fair value of the warrants	'
	The assumptions used in calculating the fair value of the warrants issued are as follows:
	Risk-free interest rate	0.78%
	Expected volatility of common stock	191% - 253%
	Dividend yield	0.00%
	Discount due to lack of marketability	30.00%
	Expected life of warrant	3 years - 5 years

Capitalized_Costs_Table

Capitalized Costs (Table)	12 Months Ended
	Dec. 31, 2013
Capitalized Costs (Table):	'
Capitalized Costs (Table)	'
		2013			2012
	Evaluated costs subject to amortization	$	9,484,014		$	3,435,918
	Unevaluated costs		4,758,806			577,658
	Total capitalized costs		14,242,820			4,013,576
	Less accumulated depreciation, depletion  and amortization		(1,204,069	)		(551,890	)
	Net capitalized costs	$	13,038,751		$	3,461,686

Schedule_of_Income_Taxes_Table

Schedule of Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2013
Schedule of Income Taxes:	'
Schedule of Effective Income Tax Rate Reconciliation	'
	The following is a reconciliation between the federal income tax benefit computed at the statutory federal income tax rate of 34% and actual income tax provision for the years ended December 31, 2013 and December 31, 2012:
		Year ended		Year ended
		Dec. 31, 2013		Dec. 31, 2012
	Federal income tax benefit at statutory rate	-3,542,345		-954,993
	Permanent Differences	696,631		84,574
	Other	-470,413		-22,185
	Change in valuation allowance	3,316,127		892,604
	Provision for income taxes	0		0
Schedule of Deferred Tax Assets and Liabilities	'
	The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities at December 31, 2013 and December 31, 2012 are as follows:
		Dec. 31, 2013			Dec. 31, 2012
	Deferred tax assets:
	Net operating loss carryforward	$	4,229,034		$	1,988,631
	Accruals		30,600			163,200
	Reserves		1,132,778			372
	Deferred tax liabilities:
	Intangible drilling and other costs for oil and gas properties		-318,039			-393,958
	Net deferred tax assets and liabilities		5,074,373			1,758,245
	Less valuation allowance		-5,074,373			-1,758,245
	Total deferred tax assets and liabilities	$	-		$	-

ASSET_RETIREMENT_OBLIGATIONS_T

ASSET RETIREMENT OBLIGATIONS (Tables)	12 Months Ended
	Dec. 31, 2013
ASSET RETIREMENT OBLIGATIONS (Tables)	'
Reconciliation of the asset retirement obligation liability	'
	The following is a reconciliation of the asset retirement obligation liability through December 31, 2013:
	Asset retirement obligation – January 1, 2012	$	11,369
	Adjustment to estimated liability		693
	Accretion expense		552
	Asset retirement obligation – December 31, 2012	$	12,614
	Estimated liabilities recorded	$	10,407
	Accretion Expense		1,361
	Asset retirement obligation – December 31, 2013	$	24,382

Going_Concern_Accumulated_Loss

Going Concern Accumulated Losses (Details) (USD $)	Dec. 31, 2013
Going Concern Accumulated Losses	'
Accumulated Losses since inception	$15,840,959

Recovered_Sheet1

Significant Accounting Policies Text (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Nov. 23, 2010
Significant Accounting Policies {1}	'	'	'
Capitalized interest on unevaluated properties	$104,821	$48,474	'
Balance Goodwill	$447,084	$447,084	$447,084

Related_Party_Transactions_pay

Related Party Transactions payments (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Related Party Transactions payments due to related party	'	'
Related party payable accrued and unpaid compensation to two of the executive officers	$90,000	$660,000
Related party debt forgiven by the officers	$660,000	'

The_following_table_presents_t

The following table presents the capitalized costs of the Company (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
The following table presents the capitalized costs of the Company as of December 31, 2013 and December 31, 2012:	'	'
Evaluated costs subject to amortization	$9,484,014	$3,435,918
Unevaluated costs	4,758,806	577,658
Total capitalized costs.	14,242,820	4,013,576
Less accumulated depreciation, depletion and amortization	-1,204,069	-551,890
Net capitalized costs.	$13,038,751	$3,461,686

Capitalized_costs_Text_Details

Capitalized costs Text (Details) (USD $)	Dec. 31, 2013
Capitalized costs Text	'
Unevaluated costs associated with company's interest in Coulter#1 well	$639,609
Total consideration for all the properties	1,600,000
Amount Allocated to Smokey Hills Project	940,820
Amount Allocated to Cimarron Area	$659,180

Capital_Stock_Transactions_Det

Capital Stock Transactions (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Capital Stock Transactions:	'	'
Issued shares of preferred stock	0	0
Issued shares of common stock as compensation for services	735,752	425,000
Common stock as compensation for services, with a total value	$1,438,977	$329,875
Issued warrants for common stock as compensation for services	2,403,174	0
warrants as compensation for services, with a total value	2,920,170	0
Shares of common stock issued in connection financing transactions	1,308,124	126,000
warrants issued to the placement agent.,	552,057	0
Shares of common stock issued in connection to acquire lease interests	558,356	0
Shares of common stock issued in connection to acquire lease interests Value	1,233,967	'
Issued shares in connection with conversions of 12% convertible notes	969,000	'
Principal amount for which shares Issued on account of 12% convertible notes	1,695,100	'
Common Stock resulting from Warrant exercises for cash totaling	$203,428	'
Common Stock resulting from Warrant exercises for shares	101,714	'

Summary_of_warrants_outstandin

Summary of warrants outstanding as of Dec. 31, 2013 (Details) (USD $)	Expiring in the year 2015	Expiring in the year 2016	Expiring in the year 2017	Expiring in the year 2018	Total warrants	Expiring in the year 2014
Outstanding warrants at Dec. 31, 2012	'	'	'	'	'	0
Exercise price 1.75	855,000	1,235,714	0	0	2,170,714	80,000
Exercise Price 2.00	0	1,050,264	126,000	1,696,380	2,872,644	0
Exercise Price 2.09	0	0	0	1,100,000	1,100,000	0
Exercise Price 2.50	50,000	100,000	0	0	375,000	225,000
Exercise Price 2.75	0	250,000	0	0	250,000	0
Exercise Price 2.82	0	0	0	38,174	38,174	0
Exercise Price 3.00	0	100,000	0	0	100,000	0
Exercise Price 5.00	0	25,000	0	0	803,356	778,356
Exercise Price 6.00	0	0	0	53,125	53,125	0
Total warrants Outstanding at Dec. 31, 2013	905,000	2,760,978	126,000	2,887,679	7,763,013	1,083,356

Equity_Issue_Subscriptions_Det

Equity Issue Subscriptions (Details) (USD $)	Jan. 10, 2014
Stockholders Equity Issue Subscriptions	'
Shares sold to investors in private offering restricted common stock	350,000
Sale of warrants to purchase share of restricted common stock shares of	87,500
Exercise price for each warrant expires on Dec. 31, 2018,	$6
Aggregate consideration received for securities Total,	$1,400,000
Aggregate consideration received for securities in Dec. 2013,	850,000
Aggregate consideration received for securities in Jan.2014,	550,000
notes issued in December - value of notes	850,000
Warrants issued in connection with abovesaid notes	53,125
Value of the warrants issued	$123,250

Shares_Reserved_for_future_Det

Shares Reserved for future (Details)	Dec. 31, 2013
Shares Reserved for future warrants	'
Shares reserved for future exercise of warrants.	7,763,013

Issue_of_Prefered_Stock_Detail

Issue of Prefered Stock (Details)	Dec. 31, 2013
Issue of Prefered Stock	'
Authorised To Issue Preferred Stock	5,000,000

Assumptions_used_in_calculatin

Assumptions used in calculating the fair value of the warrants issued are as follows (Details)	Dec. 31, 2013
Assumptions used in calculating the fair value of the warrants issued are as follows:	'
Risk-free interest rate.	0.78%
Expected volatility of common stock Minimum	191.00%
Expected volatility of common stock Maximum	253.00%
Dividend yield	0.00%
Discount due to lack of marketability	30.00%
Expected life of warrant in years Minimum	3
Expected life of warrant in years Maximum	5

Income_Taxes_Operating_loss_ca

Income Taxes Operating loss carryforwards (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Income Taxes Operating loss carryforwards	'	'
Net deferred tax asset related to federal net operating loss carryforwards of	$12,620,377	$5,616,449

Tax_Reconciliation_and_provisi

Tax Reconciliation and provision for income taxes (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Tax Reconciliation and provision for income taxes	'	'
Federal income rate %	34.00%	34.00%
Federal income tax benefit at statutory rate	($3,542,345)	($954,993)
Permanent Differences	696,631	84,574
Other	-470,413	-22,185
Change in valuation allowance	3,316,127	892,604
Provision for income taxes	$0	$0

The_tax_effects_of_temporary_d

The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Deferred tax assets:	'	'
Net operating loss carryforward	$4,229,034	$1,988,631
Accruals	30,600	163,200
Reserves	1,132,778	372
Intangible drilling and other costs for oil and gas properties	-318,039	-393,958
Net deferred tax assets and liabilities	5,074,373	1,758,245
Less valuation allowance	($5,074,373)	($1,758,245)

PROMISSORY_NOTES_DETAILS

PROMISSORY NOTES (DETAILS) (USD $)	Jun. 12, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 18, 2012
PROMISSORY NOTES {1}	'	'	'	'
Exchange of outstanding convertible notes for new series of 12% Convertible Promissory Notes	'	'	'	$412,500
Four year warrants granted to the note holders	'	'	'	235,714
Common stock at 1.75 per share1 valued	'	'	'	235,714
Four year warrants granted to the note holders,	'	'	'	233,357
Common stock at 2.00 per share valued at	'	'	'	473,785
12% Convertible Promissory Notes notes of new series issued	'	'	'	690,000
Principal Amount outstanding as of	'	'	1,102,500	'
Conversion into common stock at a price of	'	'	'	$1.75
Issuance of warrants	'	'	'	8,000
Principal Amount value for which warrants issued	'	'	'	70,000
Term of the warrants	'	'	'	5
Exercise price per share of warrants.	'	'	'	$2
Value of the warrants reflected as discount on the 12% convertible notes	'	'	'	137,340
Amount of beneficial conversion feature also reflected as a discount on 12% Notes	'	'	'	390,600
Additional 12% Convertible notes issued in principal value of	'	'	'	11,405,773
Issue of five year warrants to purchase common stock	'	'	'	1,308,082
Exercise price per share of warrants.,	'	'	'	$2
Value of warrants shares	'	'	'	1,917,158
Amount recorded for beneficial conversion feature	'	'	'	5,770,654
Fee paid as a % of principal amount of notes , to the placement agent	'	'	'	10.00%
non-accountable expense reimbursement	'	'	'	2.00%
Warrants issued to the placement agent	'	552,057	0	552,057
Value of the warrants reflected with a tenure of three years @ 2 per share	'	'	'	614,163
Company is obligated on a short term note payable for	$750,000	'	'	'
interest rate of the note	10.00%	'	'	'

ASSET_RETIREMENT_OBLIGATIONS_R

ASSET RETIREMENT OBLIGATIONS RECONCILIATION (Details) (Asset Retirement Obligation Liability, USD $)	Dec. 31, 2013	Dec. 31, 2012	Jan. 01, 2012
Asset Retirement Obligation Liability	'	'	'
Asset retirement obligation.,	'	'	$11,369
Asset retirement obligation.,	'	'	11,369
Adjustment to estimated liability	'	693	'
Accretion expense.	'	552	'
Asset retirement obligation,	'	12,614	'
Estimated liabilities recorded.	10,407	'	'
Accretion expense,	1,361	'	'
Asset retirement obligation..	$24,382	'	'

SUBSEQUENTS_EVENTS_DETAILS

SUBSEQUENTS EVENTS (DETAILS) (USD $)	Jan. 31, 2014	Jan. 10, 2014
SUBSEQUENTS EVENTS	'	'
Shares sold to investors in private offering restricted common stock aggregate of	1,400,000	350,000
Sale of warrants to purchase share of restricted common stock	350,041	87,500
Exercise price for each warrant expires on Dec. 31, 2018	$6	$6
Aggregate consideration received for securities Total	$5,600,000	$1,400,000
Aggregate consideration received for securities in Dec. 2013	'	850,000
Aggregate consideration received for securities in Jan.2014	'	550,000
Fess paid to National Securities corporation the placement agent	560,000	'
Additional Transaction expenses paid	$25,000	'
Issued warrants to the placement agent to purchase Units at an exercise price of $6 per unit until Dec. 31, 2018	140,000	'