Massive Interactive 10-Q/A 2 Dec 13 2012 Q3 Quarterly report (amended) Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2012	Nov. 14, 2012
Document And Entity Information	'	'
Entity Registrant Name	'Xtreme Oil & Gas, Inc.	'
Entity Central Index Key	'0001481218	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-12	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	45,680,814
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2012	'

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2012	Dec. 31, 2011
CURRENT ASSETS:	'	'
Cash	$1,347	$484,970
Cash - restricted	75,313	75,322
Accounts receivable - trade, net	38,550	192,296
Work in process	'	505,038
Prepaid expenses	325,000	'
Deferred financing costs	'	164,831
Inventory	'	62,028
Total Current Assets	440,210	1,484,485
PROPERTY AND EQUIPMENT:	'	'
Furniture and fixtures	53,044	53,044
Oil and natural gas properties (successful efforts method)	8,522,935	7,547,166
Total	8,575,979	7,600,210
Less-Accumulated depreciation, depletion and amortization	110,946	103,499
Net property and equipment	8,465,033	7,496,711
OTHER ASSETS	'	'
Deposits	7,887	7,537
Total Other Assets	7,887	7,537
TOTAL ASSETS	8,913,130	8,988,733
CURRENT LIABILITIES:	'	'
Accounts payable and accrued expenses	1,580,583	1,789,482
Deposits payable	335,000	1,514,244
Advances, related parties	115,000	'
Accounts payable, related parties	1,126,320	'
Short-term notes payable - related parties	250,000	'
Convertible notes payable, net of debt discount	902,267	261,799
Derivative liability	541,573	2,737,824
Total Current Liabilities	4,850,743	6,303,349
LONG-TERM LIABILITIES	'	'
Asset retirement obligation	300,000	300,000
Total long-term liabilities	300,000	300,000
TOTAL LIABILITIES	5,150,743	6,603,349
STOCKHOLDERS' EQUITY:	'	'
Preferred stock, $.001 par value, 49,999,000 shares authorized; none issued and outstanding	'	'
Non-transferable preferred stock, $0.001 par value, 1,000 Shares authorized, 1,000 shares issued and outstanding	1	1
Common stock, $.001 par value; 200,000,000 shares authorized; 45,386,539 and 45,364,390 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively	45,516	45,364
Additional paid-in capital	36,131,913	36,063,970
Accumulated deficit	-32,415,043	-33,723,951
Total Stockholders' Equity	3,762,387	2,385,384
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$8,913,130	$8,988,733

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2012	Dec. 31, 2011
STOCKHOLDERS' EQUITY:	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, authorized shares	49,999,000	49,999,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Non-transferable Preferred stock, par value	$0.00	$0.00
Non-transferable Preferred stock, authorized shares	1,000	1,000
Non-transferable Preferred stock, issued shares	1,000	1,000
Non-transferable Preferred stock, outstanding shares	1,000	1,000
Common stock, par value	$0.00	$0.00
Common stock, Authorized	200,000,000	200,000,000
Common stock, Issued	45,516,777	45,364,390
Common stock, outstanding	45,516,777	45,364,390

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenues:	'	'	'	'
Income from sales of working interest, net	$238,454	$115,000	$1,270,934	$2,336,078
Oil and gas sales	9,489	7,766	56,324	57,911
TOTAL REVENUES	247,943	122,766	1,327,258	2,393,989
OPERATING EXPENSES:	'	'	'	'
Production costs	66,942	50,389	102,828	144,221
Workover costs	6,338	'	28,874	'
Depreciation, depletion and amortization expense	101,353	3,282	172,278	10,280
General and administrative expenses	465,819	590,237	1,212,927	1,518,399
Loss on disposal of properties	204,649	21,603	233,266	37,461
TOTAL OPERATING EXPENSES	845,101	665,511	1,750,173	1,710,361
INCOME (LOSS) FROM OPERATIONS	-597,158	-542,745	-422,915	683,628
OTHER INCOME (EXPENSE)	'	'	'	'
Gain on settlement	3,201	16,223	930,972	16,223
Amortization of debt discounts	-640,478	-234,059	-1,179,364	-270,228
Interest expense, net	-81,090	-80,580	-216,036	-89,652
Derivative income (loss)	851,549	-3,388,778	2,276,758	-3,420,865
Gain (loss) on extinguishment of debt	'	147,066	-80,507	147,066
Total other income (expense)	133,182	-3,540,128	1,731,823	-3,617,456
NET INCOME (LOSS)	($463,976)	($4,082,873)	$1,308,908	($2,933,828)
EARNINGS (LOSS) PER COMMON SHARE-BASIC	-0.01	-0.09	0.03	-0.07
EARNINGS (LOSS) PER COMMON SHARE-DILUTED	($0.01)	($0.09)	$0.03	($0.07)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC	45,403,966	45,700,493	45,390,507	45,120,687
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED	45,403,966	45,700,493	45,390,507	45,120,687

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net income (loss)	$1,308,908	($2,933,828)
Adjustments to reconcile net income to net cash (used in) operating activities	'	'
Depreciation, depletion and amortization	172,278	10,280
Bad debt expense	182,018	'
Loss on debt extinguishment	80,507	-147,066
Common stock issued for services	63,095	234,568
Gain on settlement	-930,972	-16,223
Income from sales of working interest	-1,270,934	-2,336,079
Loss on disposal of properties	233,266	37,461
Amortization of debt discounts	1,179,364	270,228
Derivative (income) loss	-2,276,758	3,420,865
Changes in assets and liabilities:	'	'
Accounts receivable - trade	-28,272	26,588
Development work in process	'	-210,471
Prepaid expenses	-325,000	'
Inventory	'	-61,009
Other assets	-350	-1,000
Accounts payable and accrued expenses	727,082	120,464
Accounts payable - related parties	151,200	'
Deposits payable	1,520,475	70,000
Net cash provided by (used in) operating activities	785,907	-1,515,222
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Proceeds from sale of assets	150,000	220,000
Capital Expenditures	-1,245,634	-818,556
Net cash used in investing activities	-1,095,634	-598,556
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Payments on convertible notes payable	-538,896	-160,000
Proceeds from convertible notes payable	'	2,520,000
Proceeds from notes payable	'	50,000
Proceeds from advances - related parties	115,000	'
Proceeds from notes payable - related parties	250,000	'
Proceeds from sale of common stock	'	305,000
Proceeds from the sale of treasury stock	'	120,000
Net cash provided by (used in) financing activities	-173,896	2,835,000
Net change in cash	-483,623	721,222
CASH AT BEGINNING PERIOD	484,970	657,475
CASH AT END OF PERIOD	1,347	1,378,697
SUPPLEMENTAL CASH FLOW INFORMATION:	'	'
Cash paid for interest expense	138,946	'
Deposits applied to sale of assets	2,849,719	2,985,481
Development work in process reclassified to oil and gas properties	505,038	303,129
Accounts payable – related party issued for oil and gas properties	75,600	'
Accounts payable – related party issued for oil and gas properties applied to sale of assets	1,050,720	'
Inventory reclassified to oil and gas properties	62,028	'
Common stock issued for leasehold interests and equipment	'	15,000
Common stock issued for accrued interest	$5,000	'

1_BASIS_OF_PRESENTATION

1. BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2012
Notes to Financial Statements	'
NOTE 1 - BASIS OF PRESENTATION	'
	The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions of Regulation S-K. They do not include all information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements for the year ended December 31, 2011 included in the Company’s Form 10-K. The interim unaudited consolidated financial statements should be read in conjunction with those consolidated financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three and nine months ended September 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.
	Accounting Estimates
	The preparation of the accompanying unaudited consolidated financial statements requires the use of estimates that affect the reported amounts of assets, liabilities, revenues, expenses and contingencies. These estimates include, but are not limited to, estimates related to revenue recognition, allowance for doubtful accounts, inventory valuation, tangible and intangible long-term asset valuation, obligations and commitments. Estimates are updated on an ongoing basis and are evaluated based on historical experience and current circumstances. Changes in facts and circumstances in the future may give rise to changes in these estimates which may cause actual results to differ from current estimates.
	Reclassifications
	Certain amounts in the prior period consolidated financial statements may have been reclassified to conform to the current period presentation.
	Recent Accounting Pronouncements
	Management does not expect the impact of any other recently issued accounting pronouncements to have a material impact on its financial condition or results of operations.

2_HISTORY_AND_NATURE_OF_BUSINE

2. HISTORY AND NATURE OF BUSINESS	9 Months Ended
	Sep. 30, 2012
Notes to Financial Statements	'
NOTE 2 - HISTORY AND NATURE OF BUSINESS	'
	Xtreme Oil & Gas, Inc. (the “Company” formerly Xtreme Technologies, Inc.), a Nevada corporation formed on October 3, 2006 is organized to engage in the acquisition, operation and development of oil and natural gas properties located in Texas and the southeast region of the United States. Effective December 29, 2006, Xtreme Technologies, Inc., a then Washington corporation, acquired Emerald Energy Partners, Inc., (“Emerald”) a Nevada corporation, in exchange for the issuance of 7,960,000 shares of the Company’s common stock and changed the Company’s name to Xtreme Oil & Gas, Inc. (“Xtreme”).
	For accounting purposes this transaction was treated as an acquisition of Xtreme Technologies, Inc. and a re-capitalization of Emerald.  Emerald is the accounting acquirer and the results of its operations carry over.  Accordingly, the operations of Xtreme Technologies, Inc. were not carried over and were adjusted to $0 at the date of the merger.
	Nature of Business
	Since its formation, the Company has been involved in the acquisition and management of fee mineral acreage and the exploration for and development of oil and natural gas properties, principally involving drilling wells located on the company’s mineral acreage.  The Company’s mineral properties and other oil and natural gas interests are all located in the United States, primarily in Oklahoma, Kansas, and Texas. The majority of the Company’s oil and natural gas production is from its Texas wells for 2012 and 2011.  Substantially all the Company’s oil and natural gas production is sold by the Company directly to independent purchasers.
	The Company from time to time sells or otherwise disposes of its interest in oil and natural gas properties as part of the normal course of business.
	Oil and Natural Gas Properties
	The Company has the following oil and natural gas properties:
	Oil and gas property:	31-Dec-11		Additions		Dispositions		30-Sep-12
	West Thrifty / Quita Field	$	4,984,040	$	141,921	$	25,546	$	5,100,415
	Texas 5 Star		528,089		-		-		528,089
	Smoky Hill		577,951		713,049		60,179		1,230,821
	Hancock/Robinson		62,323		-		-		62,323
	Lionheart		1,198,326		76,800		-		1,275,126
	Gotcheye SWD		-		1,021,418		695,257		326,161
	Flint Creek / Oil Creek		196,437		-		196,437		-
	Total	$	7,547,166	$	1,953,188	$	977,419	$	8,522,935
	Saltwater Disposal Property
	During the second quarter 2012, the Company began full time operations taking saltwater from multiple water hauling companies in the area. We acquired a 10% working interest from the ADA Energy Services and took over operations on May 29, 2012 in exchange for a 5 cent per barrel of water disposed fee payable upon collecting revenue from disposal customers.
	The Flint Creek/Oil Creek property was written off at September 30, 2012 as unrecoverable.

3_RELATED_PARTY_TRANSACTIONS

3. RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2012
Related Party Transactions [Abstract]	'
NOTE 3 - RELATED PARTY TRANSACTIONS	'
	During the nine months ended September 30, 2012, a director advanced $115,000 to the Company. Interest is accrued on these advances at the rate of 10% per annum. The advances and accrued interest are payable on demand and unsecured.
	On June 8, 2012, the Company owed an officer $464,000 for the acquisition of their working interest in the Saltwater Disposal Well (Gotcheye SWD) and $36,000 for the acquisition of their working interests in the Lionheart. See Note 7 for more details. These amounts are included in accounts payable – related parties on the consolidated balance sheet as of September 30, 2012.
	On June 8, 2012, the Company owed an officer $464,000 for the acquisition of their working interest in the Saltwater Disposal Well (Gotcheye SWD) and $36,000 for the acquisition of their working interests in the Lionheart. See Note 7 for more details. These amounts are included in accounts payable – related parties on the consolidated balance sheet as of September 30, 2012.
	On June 8, 2012, the Company owed an employee $80,000 for the acquisition of their working interest in the Saltwater Disposal Well (Gotcheye SWD) and $3,600 for the acquisition of their working interests in the Lionheart. See Note 7 for more details. These amounts are included in accounts payable – related parties on the consolidated balance sheet as of September 30, 2012.
	On June 8, 2012, the Company owed a director $42,720 for the acquisition of their working interest in the Saltwater Disposal Well (Gotcheye SWD). See Note 7 for more details. These amounts are included in accounts payable – related parties on the consolidated balance sheet as of September 30, 2012.
	On June 11, 2012 a director loaned $50,000 to the Company. The loan is non-interest bearing and due on September 30, 2012. The Company shall pay the director $5,000 for underwriting fees, charges and other payments on the maturity date if the Company’s financing is completed.
	On June 11, 2012 an officer loaned $200,000 to the Company. The loan is non-interest bearing and due on September 30, 2012. The Company shall pay the officer $20,000 for underwriting fees, charges and other payments on the maturity date if the Company’s financing is completed.

4_CONVERTIBLE_NOTES_PAYABLE

4. CONVERTIBLE NOTES PAYABLE	9 Months Ended
	Sep. 30, 2012
Notes to Financial Statements	'
NOTE 4 - CONVERTIBLE NOTES PAYABLE	'
	On September 12, 2011, the Company raised $2,360,000 in convertible notes.  The notes bear an interest rate of 12% per annum and mature on September 12, 2013.  Under the convertible note agreements, the lender has the right to convert all or any part of the outstanding and unpaid principal and interest into shares of the Company’s common stock; provided however, that in no event shall the lender be entitled to convert any portion of the notes that would result in the beneficial ownership by it and its affiliates to be more than 9.99% of the outstanding shares of the Company's common stock. The notes are convertible at a fixed conversion price of $0.28 per share.  In addition, the Company issued warrants to acquire 6,810,269 shares of the Company’s common stock at a strike price of $0.28 per share.  The warrants expire on September 12, 2016. The conversion price of the notes and warrants will be reduced in the event the Company issues or sells any shares of common stock less than the conversion price.
	The Company delayed scheduled payments on the convertible notes for the months of June, July, August, September, October and November 2012. This resulted in a default on the note agreement. Interest is being accrued at a rate of 18% as a result of the default.

5_DERIVATIVE_INSTRUMENTS

5. DERIVATIVE INSTRUMENTS	9 Months Ended
	Sep. 30, 2012
Notes to Financial Statements	'
NOTE 5 - DERIVATIVE INSTRUMENTS	'
	The Company’s debt or equity instruments may contain embedded derivative instruments, such as conversion options, which in certain circumstances may be required to be bifurcated from the associated host instrument and accounted for separately as a derivative instrument liability.
	The identification of, and accounting for, derivative instruments is complex.  Our derivative instrument liabilities are re-valued at the end of each reporting period, with changes in the fair value of the derivative liability recorded as charges or credits to income, in the period in which the changes occur.  For bifurcated conversion options that are accounted for as derivative instrument liabilities, we determine the fair value of these instruments using binomial option pricing model.  That model requires assumptions related to the remaining term of the instrument and risk-free rates of return, our current Common Stock price and expected dividend yield, and the expected volatility of our Common Stock price over the life of the option.
	In connection with the issuance of the notes and warrants, the conversion features are accounted for as derivative liabilities at the date of issuance and adjusted to fair value through earnings at each reporting date, due to reset and conversion features. The conversion price will be reduced in the event the Company issues or sells any shares of common stock less than the conversion price. The fair value was estimated on the date of grant using a binomial option-pricing model using the following weighted-average assumptions: expected dividend yield of 0%; expected volatility of 290%; risk-free interest rate of 0.05% and an expected holding period of 24 months for the notes and 60 months for the warrants. The resulting values, at the date of issuance, were allocated to the proceeds received and applied as a discount to the face value of the notes and warrants.  The Company recorded a derivative expense on the notes of $649,212 at inception and a further derivative expense on the warrants of $2,431,437 at inception.
	In regards to the September 12, 2011 notes, the Company recognized a derivative liability of $1,484,806 on December 31, 2011 and a change in fair value of $(688,947) for the nine months ended September 30, 2012, and redemptions of $538,896 for the nine months ended September 30, 2012 resulting in a derivative liability of $256,963 at September 30, 2012.
	In regards to the September 12, 2011 warrants, the Company recognized a derivative liability of $1,253,018 on December 31, 2011 and a change in fair value of $(968,408) for the nine months ended September 30, 2012, resulting in a derivative liability of $284,610 at September 30, 2012.
	The following tables illustrate the fair value adjustments that were recorded related to the derivative financial instruments associated with the convertible debenture financings:
		Nine months ended September 30, 2012
	Derivative liability	31-Dec-11		Fair Value Adjustments			Redemptions			30-Sep-12
	Notes	$	1,484,806	$	(688,947	)	$	(538,896	)	$	256,963
	Warrants		1,253,018		(968,408	)		-			284,610
		$	2,737,824	$	(1,657,355	)	$	(538,896	)	$	541,573

6_STOCKHOLDERS_EQUITY

6. STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2012
Notes to Financial Statements	'
NOTE 6 - STOCKHOLDERS' EQUITY	'
	Capital Structure
	The Company is authorized to issue up to 200,000,000 shares of common stock, $0.001 par value per share. The holders of the common stock do not have any preemptive right to subscribe for, or purchase, any shares of any class of stock.
	The Company is authorized to issue up to 49,999,000 shares of preferred stock, $0.001 par value per share of which none were issued and outstanding as of September 30, 2012.
	The Company has one class of Preferred Stock and Nontransferable Preferred Stock.  The Nontransferable Preferred Stock, consisting of 1,000 shares, is all owned by Mr. McAndrew, the Company’s chief executive officer.
	Common Stock
	In the nine months ended September 30, 2012, we issued 75,464 restricted shares of our common stock to consultants valued at $63,095.
	During the nine months ended September 30, 2012, the Company cancelled 67,500 shares of common stock previously issued to a consultant pursuant to a consulting agreement entered into on October 18, 2011.  The cancelled shares are being included in the issued and outstanding shares of common stock as of September 30, 2012.
	In the nine months ended September 30, 2012, we issued 76,923 shares of our common stock to a convertible note holder as conversion of $5,000 of accrued interest.

7_CONTINGENCIES

7. CONTINGENCIES	9 Months Ended
	Sep. 30, 2012
Notes to Financial Statements	'
NOTE 7 - CONTINGENCIES	'
	On December 1, 2009, we began legal proceedings in McLain County District Court in Purcell, Oklahoma against D. Deerman, L.P. alleging breach of contract and demanding payment for fees owed, oil and gas production revenue and other expenses on the Oil Creek property in excess of $75,000 based on our contracted ownership percentage.  The suit also demands an accounting discovery for all items in dispute. On December 31, 2009, Deerman filed a counterclaim in the same court claiming breach of contract for drilling the Oil Creek property and demanding payment of $235,000 for expenses incurred.   A remaining accounts receivable balance of $173,842 was written off at September 30, 2012. The Flint Creek/Oil Creek property was written off at September 30, 2012 as unrecoverable.
	On March 30, 2010, each of Baker Hughes, Pan American Drilling, Native American Drilling and other service providers began legal proceedings against us in Logan County District Court in Oklahoma demanding judgment for past due invoices in excess of $75,000. We have settled with all service providers in this suit except for Baker Hughes whose bills we continue to dispute.
	On June 8, 2012, the Company agreed to acquire a 9.255321%, before payout, working interest in the Saltwater Disposal well (Gotcheye SWD) from the KD Family, LLC for $464,000 and a 6.382980%, before payout, working interest in the Lionheart well for $36,000 from the NCAL, LLC.  The KD Family, LLC and the NCAL, LLC are both owned by Mr. Nicholas DeVito, the Company’s chief operation officer.  The saltwater disposal working interest was resold in June 2012 by the Company for $535,480.
	On June 8, 2012, the Company agreed to acquire a 9.255321%, before payout, working interest in the Saltwater Disposal well (Gotcheye SWD) from the WMDM Family Partnership for $464,000 and a 6.382980%, before payout, working interest in the Lionheart well for $36,000 from the WMDM Family Limited Partnership.  The WMDM Family Limited Partnership is owned by wife of Mr. McAndrew’s, the Company’s chief executive officer.  The saltwater disposal working interest was resold in June 2012 by the Company for $535,480.
	On June 8, 2012, the Company agreed to acquire a 1.595745%, before payout, working interest in the Saltwater Disposal well (Gotcheye SWD) from Ms. Phyllis Wingate for $80,000 and a 0.638298% working interest in the Lionheart well for $3,600 from Ms. Phyllis Wingate, our Corporate Secretary. The saltwater disposal working interest was resold in June 2012 by the Company for $92,300.

8_EARNINGS_PER_SHARE

8. EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2012
Earnings Per Share [Abstract]	'
NOTE 8 - EARNINGS PER SHARE	'
	For the three and nine months ended September 30, 2012, dilutive securities existed. Diluted earnings per share reflect the potential dilution of security that could share in the earnings of an entity, such as convertible preferred stock, stock options, warrants or convertible securities.
	The calculation of diluted earnings per share for the three and nine months ended September 30, 2012 does not include 6,810,269 shares of common stock assuming the warrants issued with the convertible notes payable, as discussed above, were exercised due to their anti-dilutive effect.
	The calculation of diluted earnings per share for the three and nine months ended September 30, 2012 does not include 6,130,375 shares of common stock assuming the convertible notes payable, as discussed above, were converted due to their anti-dilutive effect.

9_INCOME_TAXES

9. INCOME TAXES	9 Months Ended
	Sep. 30, 2012
Income Tax Disclosure [Abstract]	'
9. INCOME TAXES	'
	At September 30, 2012, the Company had an unused net operating loss carryover of approximately $6,299,000 that is available to offset future taxable income which expires beginning in 2028 and ending in 2031.
	The ability of the Company to utilize NOL carryforwards to reduce future federal taxable income and federal income tax is subject to various limitations under the Internal Revenue Code of 1986, as amended. The utilization of such carryforwards may be limited upon the occurrence of certain ownership changes, including the issuance or exercise of rights to acquire stock, the purchase or sale of stock by 5% stockholders, as defined in the Treasury regulations, and the offering of stock during any three-year period resulting in an aggregate change of more than 50% in the beneficial ownership of the Company.
	In the event of an ownership change (as defined for income tax purposes), Section 382 of the Code imposes an annual limitation on the amount of a corporation's taxable income that can be offset by these carryforwards. The limitation is generally equal to the product of (i) the fair market value of the equity of the company multiplied by (ii) a percentage approximately equivalent to the yield on long-term tax exempt bonds during the month in which an ownership change occurs. In addition, the limitation is increased if there are recognized built-in gains during any post-change year, but only to the extent of any net unrealized built-in gains (as defined in the Code) inherent in the assets sold. Certain NOLs acquired through various acquisitions are also subject to limitations.
	There are no significant differences between the Company’s operating results for financial reporting purposes and for income tax purposes.

10_SUBSEQUENT_EVENTS

10. SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2012
Notes to Financial Statements	'
NOTE 10 - SUBSEQUENT EVENTS	'
	The Company failed to make its October 12, 2012 and November 12, 2012 payments on the convertible debt instrument on time. This resulted in a default on the note agreement. Interest is being accrued at a rate of 18% as a result of the default.
	In October 2012, we issued 164,037 shares of our common stock to certain convertible note holders as conversion of $26,039 of accrued interest and principal.

1_BASIS_OF_PRESENTATION_Polici

1. BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2012
Basis Of Presentation Policies	'
Basis of Presentation	'
	The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions of Regulation S-K. They do not include all information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements for the year ended December 31, 2011 included in the Company’s Form 10-K. The interim unaudited consolidated financial statements should be read in conjunction with those consolidated financial statements included in the Form 10-K. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three and nine months ended September 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.
Accounting Estimates	'
	The preparation of the accompanying unaudited consolidated financial statements requires the use of estimates that affect the reported amounts of assets, liabilities, revenues, expenses and contingencies. These estimates include, but are not limited to, estimates related to revenue recognition, allowance for doubtful accounts, inventory valuation, tangible and intangible long-term asset valuation, obligations and commitments. Estimates are updated on an ongoing basis and are evaluated based on historical experience and current circumstances. Changes in facts and circumstances in the future may give rise to changes in these estimates which may cause actual results to differ from current estimates.
Reclassifications	'
	Certain amounts in the prior period consolidated financial statements may have been reclassified to conform to the current period presentation.
Recent Accounting Pronouncements	'
	Management does not expect the impact of any other recently issued accounting pronouncements to have a material impact on its financial condition or results of operations.

2_HISTORY_AND_NATURE_OF_BUSINE1

2. HISTORY AND NATURE OF BUSINESS (Tables)	9 Months Ended
	Sep. 30, 2012
History And Nature Of Business Tables	'
Oil and Natural Gas Properties	'
	Oil and gas property:	31-Dec-11		Additions		Dispositions		30-Sep-12
	West Thrifty / Quita Field	$	4,984,040	$	141,921	$	25,546	$	5,100,415
	Texas 5 Star		528,089		-		-		528,089
	Smoky Hill		577,951		713,049		60,179		1,230,821
	Hancock/Robinson		62,323		-		-		62,323
	Lionheart		1,198,326		76,800		-		1,275,126
	Gotcheye SWD		-		1,021,418		695,257		326,161
	Flint Creek / Oil Creek		196,437		-		196,437		-
	Total	$	7,547,166	$	1,953,188	$	977,419	$	8,522,935

5_DERIVATIVE_INSTRUMENTS_Table

5. DERIVATIVE INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2012
Derivative Instruments Tables	'
DERIVATIVE INSTRUMENTS	'
		Nine months ended September 30, 2012
	Derivative liability	31-Dec-11		Fair Value Adjustments			Redemptions			30-Sep-12
	Notes	$	1,484,806	$	(688,947	)	$	(538,896	)	$	256,963
	Warrants		1,253,018		(968,408	)		-			284,610
		$	2,737,824	$	(1,657,355	)	$	(538,896	)	$	541,573

2_HISTORY_AND_NATURE_OF_BUSINE2

2. HISTORY AND NATURE OF BUSINESS (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Biginning balance	$7,547,166
Additions	1,953,188
Dispositions	977,419
Ending balance	8,522,935
WestThriftyQuitaFieldMember	'
Biginning balance	4,984,040
Additions	141,921
Dispositions	25,546
Ending balance	5,100,415
TexasFiveStarMember	'
Biginning balance	528,089
Additions	'
Dispositions	'
Ending balance	528,089
SmokyHillMember	'
Biginning balance	577,951
Additions	713,049
Dispositions	60,179
Ending balance	1,230,821
HancockRobinsonMember	'
Biginning balance	62,323
Additions	'
Dispositions	'
Ending balance	62,323
LionheartMember	'
Biginning balance	1,198,326
Additions	76,800
Dispositions	'
Ending balance	1,275,126
GotcheyeSwdMember	'
Biginning balance	'
Additions	1,021,418
Dispositions	695,257
Ending balance	326,161
FlintCreekOilCreekMember	'
Biginning balance	196,437
Additions	'
Dispositions	196,437
Ending balance	'

5_DERIVATIVE_INSTRUMENTS_Detai

5. DERIVATIVE INSTRUMENTS (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
31-Dec-11	$2,737,824
Fair Value Adjustments	-1,657,355
Redemptions	-538,896
30-Sep-12	541,573
NoteMember	'
31-Dec-11	1,484,806
Fair Value Adjustments	-688,947
Redemptions	-538,896
30-Sep-12	256,963
WarrantMember	'
31-Dec-11	1,253,018
Fair Value Adjustments	-968,408
Redemptions	'
30-Sep-12	$284,610

4_CONVERTIBLE_NOTES_PAYABLE_De

4. CONVERTIBLE NOTES PAYABLE (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2012
Warrants Expiry date	'2016-09-12
Interest accrued	18.00%
NoteMember	'
Conversion price of notes	0.28
WarrantMember	'
Number of warrants to acquire	6,810,269

6_STOCKHOLDERS_EQUITY_Details_

6. STOCKHOLDERS' EQUITY (Details Narrative) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Stockholders Equity Details Narrative	'	'
Common stock shares authorized	200,000,000	200,000,000
Common stock shares Par value	$0.00	$0.00
Preferred stock shares authorized	49,999,000	49,999,000
Preferred stock shares par value	$0.00	$0.00
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0

8_EARNINGS_PER_SHARE_Details_N

8. EARNINGS PER SHARE (Details Narrative)	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2012
Earnings Per Share Details Narrative	'	'
Common stock non diluted shares	6,810,269	6,810,269