Massive Interactive 10-Q/A 10 Dec 13 2013 Q2 Quarterly report (amended) Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2013	Aug. 14, 2013
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-Jun-13	'
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?	'No	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	189,114,691
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2013	'

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Jun. 30, 2013	Dec. 31, 2012
CURRENT ASSETS:	'	'
Cash	$31,984	$26,354
Cash - restricted	25,313	75,313
Accounts receivable- trade, net	22,430	27,257
Other receivable	55,300	0
Total Current Assets	135,027	128,924
PROPERTY AND EQUIPMENT:	'	'
Furniture and fixtures	53,044	53,044
Oil and natural gas properties (successful efforts method)	6,912,118	8,584,572
Total	6,965,162	8,637,616
Less-Accumulated depreciation, depletion and amortization	113,747	112,467
Net property and equipment	6,851,415	8,525,149
Deposits	6,537	57,887
TOTAL ASSETS	6,992,979	8,711,960
CURRENT LIABILITIES:	'	'
Accounts payable and accrued expenses	126,487	1,811,271
Deposits payable	0	1,126,320
Advances, related parties	0	101,093
Accounts payable - related parties	0	391,418
Short-term notes payable	0	114,000
Short-term notes payable - related parties	0	250,000
Convertible notes payable, net of discount	282,445	1,750,615
Derivative liability	26,086	405,473
Total Current Liabilities	435,018	5,950,190
LONG-TERM LIABILITIES	'	'
Asset retirement obligation	300,000	300,000
Total long-term liabilities	300,000	300,000
TOTAL LIABILITIES	735,018	6,250,190
Commitments and contingencies	'	'
STOCKHOLDERS' EQUITY:	'	'
Preferred stock, $0.001 par value,49,999,000 shares authorized; none issued and outstanding 3,694,000 and 0 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively	3,694	0
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; 189,114,691 and 47,198,692 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively	189,115	47,198
Additional paid-in capital	41,400,662	36,208,959
Accumulated deficit	-35,335,511	-33,794,388
Total Stockholders' Equity	6,257,961	2,461,770
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$6,992,979	$8,711,960

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2013	Dec. 31, 2012
STOCKHOLDERS' EQUITY:	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, authorized shares	49,999,000	49,999,000
Preferred stock, issued shares	3,694,000	0
Preferred stock, outstanding shares	3,694,000	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	189,114,691	47,198,692
Common stock, outstanding	189,114,691	47,198,692

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenues:	'	'	'	'
Income from asset sales and other, net	$21,514	$161,755	$65,876	$1,032,480
Oil and gas sales	4,451	25,710	9,053	46,835
TOTAL REVENUES	25,965	187,465	74,929	1,079,315
EXPENSES:	'	'	'	'
Production costs	1,190	24,203	1,649	35,886
Workover costs	0	-43,425	0	22,536
Depreciation, depletion and amortization expense	640	27,411	1,280	70,925
General and administrative expenses	1,430,919	336,858	1,674,471	743,866
Loss on disposal of properties	68,123	7,174	68,123	20,963
TOTAL OPERATING EXPENSES	1,500,872	352,221	1,745,523	894,176
INCOME (LOSS) FROM OPERATIONS	-1,474,907	-164,756	-1,670,594	185,139
OTHER INCOME/ (EXPENSE)	'	'	'	'
Gain on settlement	0	24	0	478,939
Gain on debt forgiveness	-35,863	0	8,525	0
Amortization of debt discounts	0	-245,880	0	-538,886
Interest expense, net	38,747	-70,117	-23,724	-134,946
Derivative income	95,378	2,508,577	135,174	1,425,209
Loss on extinguishment of debt	0	-22,565	0	-80,507
Total other income (expense)	98,262	2,170,039	119,975	1,149,809
Net income (loss) from continuing operations	-1,376,645	2,005,283	-1,550,619	1,334,948
Net income from discontinued operations	9,625	22,563	9,496	437,936
Net income (loss)	($1,367,020)	$2,027,846	($1,541,123)	$1,772,884
EARNINGS PER COMMON SHARE-BASIC AND DILUTED	'	'	'	'
Net income (loss) from continuing operations	($0.01)	$0.04	($0.02)	$0.03
Net income from discontinued operations	$0	$0	$0	$0.01
Net income (loss)	($0.01)	$0.04	($0.02)	$0.04
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC	143,850,921	45,394,239	100,215,235	45,383,703
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED	144,893,674	45,394,239	100,215,235	45,383,703

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Income (loss) from continuing operations	($1,550,619)	$1,334,948
Income from discontinued operations	9,496	437,936
Net income (loss)	-1,541,123	1,772,884
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities	'	'
Depreciation, depletion and amortization	1,280	70,925
Gain on debt forgiveness	-26,966	0
Loss on debt extinguishment	0	80,507
Common stock issued for services	18,938	37,731
Preferred stock issued for services	1,484,660	0
Gain on settlement	0	-927,771
Income from sales of working interest	-68,477	-1,032,480
Bad debt expense	11,021	0
Loss on disposal of properties	68,123	28,617
Amortization of debt discounts	0	538,886
Derivative (income) expense	-135,174	-1,425,209
Changes in operating assets and liabilities:	'	'
Accounts receivable - trade	-6,194	-5,564
Other receivable	-55,300	0
Development work in process	0	-82,786
Prepaid expenses	0	-325,000
Accounts payable and accrued expenses	-188,195	205,188
Accounts payable - related parties	-32,500	151,200
Deposits	51,350	0
Deposits payable	4,069	1,510,475
Net cash provided by (used in) operating activities	-414,488	597,603
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Proceeds from sale of assets	341,000	150,000
Capital Expenditures	-14,822	-997,842
Restricted cash	50,000	0
Net cash used in investing activities	376,178	-847,842
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Payments on convertible notes payable	0	-538,896
Proceeds from short-term notes payable – related parties	50,000	250,000
Payments to advances – related parties	-15,760	0
Proceeds from advances - related parties	9,700	70,000
Net cash provided by (used in) financing activities	43,940	-218,896
Net change in cash	5,630	-469,135
CASH AT BEGINNING PERIOD	26,354	484,970
CASH AT END OF PERIOD	31,984	15,835
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION	'	'
Cash paid during the year for: interest	23,724	138,946
Cash paid during the year for: income taxes	0	0
Deposits applied to sale of assets	70,487	2,585,719
Development work in process reclassified to oil and gas properties	0	505,038
Common stock issued for convertible notes payable and accrued interest	1,505,700	0
Inventory reclassified to oil and gas properties	0	62,028
Notes payable-related party issued for oil and gas properties	0	75,600
Note payable-related party issued for oil and gas properties applied to sale of assets	0	1,050,720
Issuance of Preferred A Stock for settlement of debt	$2,083,801	$0

1_Basis_of_Presentation

1. Basis of Presentation	6 Months Ended
	Jun. 30, 2013
Accounting Policies [Abstract]	'
1. Basis of Presentation	'
	The accompanying unaudited 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 financial statements for the year ended December 31, 2012 included in the Company’s Form 10-K. The interim unaudited financial statements should be read in conjunction with those 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 six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.
	Accounting Estimates
	The preparation of the accompanying unaudited 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 financial statements may have been reclassified to conform to the current period presentation. These reclassifications have no impact on net loss.
	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	6 Months Ended
	Jun. 30, 2013
History And Nature Of Business	'
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.
	Recent Events
	On April 15, 2013, the Company entered into an agreement with Torchlight Energy, Inc. (“Torchlight”) related to Xtreme’s Kansas, or Smokey Hills, prospect and all of the Company’s properties in Oklahoma.
	Torchlight has acquired one-half of the Company’s interest in the Smokey Hills prospect and assumed the Company’s obligation to complete the first well drilled on the prospect plus additional costs previously billed to Xtreme by the operator. Torchlight has assumed Xtreme’s obligation under its working interest in the prospect to drill the planned second well.
	With respect to the Oklahoma properties, the Company has conveyed half of its working interest and all related equipment in the Lenhart well to Torchlight and Torchlight has acquired all of the Company’s interest in the Robinson and Hancock wells. Torchlight has also acquired 90% of the Overriding Royalty Interest in the Company’s Salt Water Disposal Well and Facility, as defined, but such interest is junior to the interests of investors in the well. In its discretion, Torchlight will pay the cost to re-enter the Lenhart well.
	These transactions provide the resources to develop further wells that working interest owners in the various prospects own.
	Cash payments to the Company, totaled $341,000. Other consideration paid on behalf of the Company to third parties totaled, $1,262,143. These payments have been completed.
	The agreement also grants to Torchlight the option to acquire for $4,000,000 in Torchlight Common Stock the balance of the Company’s interest in the Smokey Hills prospect if the first well drilled reaches 300 barrels of equivalent per day. Torchlight also has the option to acquire the balance of the working interest in the Lenhart prospect for $1,000,000 in Torchlight Common Stock should that well reach 50 barrels of oil equivalent production per day. Both production goals must reach the level of defined production within 30 days of completion.
	On May 9, 2013, completion work began on the Smokey Hills project and fracking was completed on June 14, 2013. The Operator has determined not to complete the first well and is reviewing whether to conduct vertical drilling operations around the first well.
	Torchlight Energy is currently the operator of the Lenheart Oil Well project.  They have re-entered the wellbore and begun completion operations into the Bartlesville formation.
	The Company shall continue development opportunities of its largest prospect by asset valuation, the West Thrift Units.
	On March 28, 2013, the Company formed a committee to advise the Company with respect to the Torchlight transaction discussed above. The committee consists of three stockholders of the Company, Brandon Chabner, Keith Houser, and Ben Doherty.
	As part of the review of the Torchlight transaction, Torchlight had asked that Mr. McAndrew act as a consultant to Torchlight, necessitating a release by the Company of the Mr. McAndrew’s covenant not to compete with the Company. The committee approved that release. Accordingly, though Mr. McAndrew will remain the Company’s Chief Executive Officer and an employee of the Company, he will act as a consultant to Torchlight.
	On May 2, 2013, we sold our wholly owned subsidiary, Xtreme Operating Co., LLC, to Heritage Oil and Gas, Inc., (“Heritage”) for $50,000 on an as is basis. Results of operations for our subsidiary are being shown as discontinued operations in the accompanying financial statements.  Heritage assumed liabilities of $139,159 as part of the sale.
	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 2013 and 2012.  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.

3_Oil_and_Natural_Gas_Properti

3. Oil and Natural Gas Properties	6 Months Ended
	Jun. 30, 2013
Extractive Industries [Abstract]	'
3. Oil and Natural Gas Properties	'
	The Company has the following oil and natural gas properties:
	Oil and gas property:	December 31,		Additions		Dispositions		June 30,
		2012						2013
	West Thrifty / Quita Field	$	4,984,040	$	-	$	-	$	4,984,040
	Texas 5 Star		528,089		-		-		528,089
	Quita Ellenberger Project		116,375		-		-		116,375
	Smoky Hill		1,278,458		11,981		645,220		645,219
	Hancock/Robinson		62,323		-		62,323		-
	Lionheart		1,289,126		832		651,563		638,395
	Gotcheye SWD Project		326,161		-		326,161		-
	Total	$	8,584,572	$	12,813	$	1,685,267	$	6,912,118
	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. With Torchlight’s acquisition of our saltwater disposal well we do not anticipate additional saltwater disposal wells in the foreseeable future.  Torchlight is currently the operator of this project.

4_Related_Party_Transactions_a

4. Related Party Transactions and Notes Payable	6 Months Ended
	Jun. 30, 2013
Related Party Transactions [Abstract]	'
4. Related Party Transactions and Notes Payable	'
	Effective as of December 1, 2009, the Company entered into employment agreements with our Chief Executive Officer, Willard G. McAndrew, our Chief Operating Officer, Nicholas DeVito, and our corporate Secretary, Phyllis Wingate. Each of these agreements had a term of five years. The Company entered into a similar agreement with Mr. Wurtele, our Chief Financial Officer, effective December 1, 2011. In the summer of 2012, the Company ceased to pay each of these individuals and was in breach of its agreement with each of them.
	Effective May 15, 2013, the Company entered into a mutual release with each of the individuals whereby each of these individuals would be issued a new class of stock, Series A Preferred Stock, as compensation for back pay, consideration that was to be paid under the contract for breach, and, in certain circumstances, other obligations owned by the Company to the individuals. The agreement also releases each from an obligation not to engage in a conflict of interest. Each of the employees, other than Ms. Wingate, agreed to continue employment at an hourly rate for the time devoted to the necessary functioning of the Company but for at least $500 per month, but such employment may be ended at the election of Xtreme or the employee. The hourly rate of Messrs. McAndrew, DeVito, and Wurtele is $112.50, $93.75, and $62.50.
	Each share of Series A Preferred Stock is convertible into 100 shares of Common Stock, subject to proportionate reduction where there is a reverse stock split. Once there are a sufficient number of shares authorized for the conversion, the holder may convert the shares at the holder’s discretion. The Series A Preferred Stock must be converted to Common Stock on April 14, 2014, unless there is not a sufficient number of shares authorized, but, in any event, must be converted after that date upon an adequate number of shares being authorized.
	Based on the conversion price of the Company’s Convertible Debt, the Company issued to Willard McAndrew, Nicholas DeVito, Roger Wurtele, and Phyllis Wingate 1,250,000; 1,500,000; 400,000; and 84,000 shares of Series A Preferred Stock, respectively valued at $1,649,340. Under current accounting standards ASC 470-50-40-2 the extinguishment of related party debt for equity securities is considered a capital transaction and, accordingly, no gain or loss on the extinguishment is recognized in the statements of operations.

5_Convertible_Notes_Payable

5. Convertible Notes Payable	6 Months Ended
	Jun. 30, 2013
Notes to Financial Statements	'
5. 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 from June 2012 through June 2013. This resulted in a default on the note agreement. Interest is being accrued at a rate of 18% as a result of the default.

6_Derivative_Instruments

6. Derivative Instruments	6 Months Ended
	Jun. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]	'
6. 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 $227,070 on December 31, 2012 and a change in fair value of $374,888 for the six months ended June 30, 2013, and redemptions of $588,676 for the six months ended June 30, 2013 resulting in a derivative liability of $13,282 at June 30, 2013.
	In regards to the September 12, 2011 warrants, the Company recognized a derivative liability of $178,403 on December 31, 2012 and a change in fair value of $165,599 for the six months ended June 30, 2013, resulting in a derivative liability of $12,804 at June 30, 2013.
	The following tables illustrate the fair value adjustments that were recorded related to the derivative financial instruments associated with the convertible debenture financings:
		Six months ended June 30, 2013
		December 31,		Fair Value			Redemptions			June 30,
	Derivative liability	2012		Adjustments						2013
	Notes	$	227,070	$	374,888		$	(588,676	)	$	13,282
	Warrants		178,403		(165,599	)		-			12,804
		$	405,473	$	(209,289	)	$	(588,676	)	$	26,086

7_Stockholders_equity

7. Stockholders' equity	6 Months Ended
	Jun. 30, 2013
STOCKHOLDERS' EQUITY:	'
7. 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 3,694,000 were issued and outstanding as of June 30, 2013.
	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
	During the six months ended June 30, 2013, we issued 998,625 shares of our common stock to consultants for services rendered to the Company valued at $18,938.
	During the six months ended June 30, 2013, we issued 140,917,374 shares of our common stock to various convertible note holders converting outstanding principal of $1,384,863 and accrued interest of $120,837.  The shares were valued at approximately $0.01 per share, based on market price.
	Preferred A Stock
	In the second quarter of 2013, we issued 3,694,000 shares of our preferred stock, valued at $2,083,801 to seven related and unrelated parties in exchange for full mutual releases and extinguishment of $3,568,461 in liabilities owed to these individuals. The shares of preferred stock convert into common stock at $0.01 per share (subject to any stock split the Company’s Board of Directors approves) and have a par value of $0.001. The Company may seek to increase its authorized capital to effect the transaction.

8_Contingencies

8. Contingencies	6 Months Ended
	Jun. 30, 2013
Contingencies	'
8. Contingencies	'
	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 and have come to agreement with Baker Hughes on a settlement.  We completed the settlement with Baker Hughes on June 15, 2013 and secured a full release and dismissal of the lawsuit with prejudice.
	On March 28, 2013, the Company formed a committee to advise the Company with respect to the Torchlight transaction discussed above. The committee consists of three stockholders of the Company, Brandon Chabner, Keith Houser, and Ben Doherty.
	As part of the review of the Torchlight transaction, Torchlight had asked that Mr. McAndrew act as a consultant to Torchlight, necessitating a release by the Company of the Mr. McAndrew’s covenant not to compete with the Company. The committee approved that release. Accordingly, though Mr. McAndrew will remain the Company’s Chief Executive Officer and an employee of the Company, he will act as a consultant to Torchlight.
	On May 6, 2013, we entered into a Letter of Intent to sell the Texas oil properties including Xtreme Operating Co., LLC to Heritage Oil & Gas.  We closed on the sale of Xtreme Operating Co., LLC on May 20, 2013.  The sale of the Texas oil properties will be completed upon execution of final documents and shareholder approval. The Company shall continue development opportunities of its largest prospect by asset valuation, the West Thrift Units.
	In the second quarter of 2013, we issued 3,694,000 shares of our preferred stock to seven related and unrelated parties in exchange for full mutual releases and extinguishment of $3,568,461 in liabilities owed to these individuals. The shares of preferred stock convert into common stock at $0.01 per share (subject to any stock split the Company’s Board of Directors approves) and have a par value of $0.001. The Company may seek to increase its authorized capital to effect the transaction.

9_Subsequent_Events

9. Subsequent Events	6 Months Ended
	Jun. 30, 2013
Notes to Financial Statements	'
9. Subsequent Events	'
	Reverse Split
	The Company has sought approval to complete a 1 for 100 reverse split of all outstanding shares of the Company's Common Stock by filing a Certificate of Amendment with the Nevada Secretary of State. Each issued and outstanding share of Common Stock would automatically be changed into a fraction of a share of Common Stock in accordance with the ratio of 1 for 100. The par value of the Common Stock would remain unchanged at $0.001 per share, and the number of authorized shares of Common Stock would remain unchanged as well. Any fractional shares resulting from the Reverse Split will be rounded up to the nearest whole number. The Reverse Split would become effective after filing a Certificate of Amendment with the Nevada Secretary of State and upon the completion of the review and comment process with FINRA. The Company will apply the effects retroactively upon receiving final approval from FINRA. As of the date of this filing, the Company has not received approval from FINRA.

1_Basis_of_Presentation_Polici

1. Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2013
Basis Of Presentation Policies	'
Basis of Presentation	'
	The accompanying unaudited 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 financial statements for the year ended December 31, 2012 included in the Company’s Form 10-K. The interim unaudited financial statements should be read in conjunction with those 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 six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.
Accounting Estimates	'
	The preparation of the accompanying unaudited 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 financial statements may have been reclassified to conform to the current period presentation. These reclassifications have no impact on net loss.
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.

3_Oil_and_Natural_Gas_Properti1

3. Oil and Natural Gas Properties (Tables)	6 Months Ended
	Jun. 30, 2013
Extractive Industries [Abstract]	'
Oil and natural gas properties	'
	Oil and gas property:	December 31,		Additions		Dispositions		June 30,
		2012						2013
	West Thrifty / Quita Field	$	4,984,040	$	-	$	-	$	4,984,040
	Texas 5 Star		528,089		-		-		528,089
	Quita Ellenberger Project		116,375		-		-		116,375
	Smoky Hill		1,278,458		11,981		645,220		645,219
	Hancock/Robinson		62,323		-		62,323		-
	Lionheart		1,289,126		832		651,563		638,395
	Gotcheye SWD Project		326,161		-		326,161		-
	Total	$	8,584,572	$	12,813	$	1,685,267	$	6,912,118

6_Derivative_Instruments_Table

6. Derivative Instruments (Tables)	6 Months Ended
	Jun. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]	'
Fair value of derivative financial instruments	'
		Six months ended June 30, 2013
		December 31,		Fair Value			Redemptions			June 30,
	Derivative liability	2012		Adjustments						2013
	Notes	$	227,070	$	374,888		$	(588,676	)	$	13,282
	Warrants		178,403		(165,599	)		-			12,804
		$	405,473	$	(209,289	)	$	(588,676	)	$	26,086

3_Schedule_of_oil_and_natural_

3. Schedule of oil and natural gas properties (Details) (USD $)	6 Months Ended
	Jun. 30, 2013
Beginning balance	$8,584,572
Additions	12,813
Dispositions	1,685,267
Ending balance	6,912,118
West Thrifty Quita Field	'
Beginning balance	4,984,040
Additions	0
Dispositions	0
Ending balance	4,984,040
Texas Five Star	'
Beginning balance	528,089
Additions	0
Dispositions	0
Ending balance	528,089
Quita Ellenberger Project	'
Beginning balance	116,375
Additions	0
Dispositions	0
Ending balance	116,375
Smoky Hill	'
Beginning balance	1,278,458
Additions	11,981
Dispositions	645,220
Ending balance	645,219
Hancock Robinson	'
Beginning balance	62,323
Additions	0
Dispositions	62,323
Ending balance	0
Lionheart	'
Beginning balance	1,289,126
Additions	832
Dispositions	651,563
Ending balance	638,395
Gotcheye Swd	'
Beginning balance	326,161
Additions	0
Dispositions	326,161
Ending balance	$0

6_Derivative_financial_instrum

6. Derivative financial instruments (Details) (USD $)	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Derivative liability	$26,086	$405,473
Fair Value Adjustments	-209,289	'
Redemptions	405,473	'
Notes	'	'
Derivative liability	13,282	227,070
Fair Value Adjustments	374,888	'
Redemptions	-588,676	'
Warrants	'	'
Derivative liability	12,804	178,403
Fair Value Adjustments	-165,599	'
Redemptions	$0	'

7_STOCKHOLDERS_EQUITY_Details_

7. STOCKHOLDERSb EQUITY (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2013
Stockholders Equity Details Narrative	'
Shares issued to consultants for services rendered	998,625
Shares issued to consultants for services rendered, Amount	$18,938
Shares issued in conversion of convertible notes	140,917,374
Shares issued in conversion of convertible notes, Amount	1,409,173
Original debt amount converted to stock	$1,505,700