Citadel Exploration (COIL) 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 11, 2013
Document And Entity Information	'	'
Entity Registrant Name	'Citadel Exploration, Inc.	'
Entity Central Index Key	'0001482075	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-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?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	28,031,640
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

Balance_Sheets_Unaudited

Balance Sheets (Unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current assets:	'	'
Cash	$299,056	$112,580
Other receivable	57,452	7,253
Prepaid expenses	41,506	9,283
Product inventory	9,934	'
Total current assets	407,948	129,116
Deposits	3,150	'
Restricted cash	45,000	'
Oil and gas properties	1,026,543	159,833
Fixed assets, net	14,405	20,299
Website, net	306	649
Total assets	1,497,352	309,897
Current liabilities:	'	'
Accounts payable and accrued payables	123,298	22,438
Accrued executive compensation	184,656	80,000
Accrued interest payable	8,316	11,217
Accrued interest payable - related party	'	3,607
Notes payable, (net of $56,792 unamortized discount)	163,665	222,527
Notes payable - related party	'	34,990
Total current liabilities	479,935	374,779
Total liabilities	479,935	374,779
Stockholders' equity (deficit):	'	'
Common stock, $0.001 par value, 100,000,000 shares authorized, 28,031,640 and 22,613,000 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively	28,032	22,613
Additional paid-in capital	2,763,728	740,352
Deficit accumulated during exploration stage	-1,774,343	-827,847
Total stockholders' equity (deficit)	1,017,417	-64,882
Total liabilities and stockholders' equity (deficit)	$1,497,352	$309,897

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]	'	'
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	100,000,000	100,000,000
Common stock, issued	28,031,640	28,031,640
Common stock, outstanding	22,613,000	22,613,000

Statements_of_Operations_Unaud

Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended		83 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
Income Statement [Abstract]	'	'	'	'	'
Revenue	'	'	'	'	'
Operating expenses:	'	'	'	'	'
Lease operating expense	7,949	'	7,949	'	7,949
General and administrative	81,064	26,631	211,105	83,062	407,617
General and administrative - related party	'	1,875	'	64,805	70,430
Depreciation and amortization	2,079	115	6,237	344	10,236
Professional fees	45,065	100,882	250,720	196,616	631,477
Professional fees - related party	'	'	'	60,000	60,000
Executive compensation	136,624	169,994	355,755	169,994	585,749
Gain on sale of interest in oil & gas properties	'	'	'	-267,856	-267,856
Gain on settlement of accounts payable	'	'	'	-661	-6,161
Total operating expenses	272,781	299,497	831,766	306,304	1,499,441
Other expenses:	'	'	'	'	'
Interest expense	-1,139	-2,206	-114,582	-5,223	-262,027
Interest expense - related party	'	-534	-148	-2,260	-5,446
Total other expenses	-1,139	-2,740	-114,730	-7,483	-267,473
Net loss before provision for income taxes	-273,920	-302,237	-946,496	-313,787	-1,766,914
Provision for income taxes	'	'	'	'	7,429
Net loss	($273,920)	($302,237)	($946,496)	($313,787)	($1,774,343)
Weighted average number of common shares outstanding - basic	28,031,640	20,753,804	28,031,640	20,474,753	'
Net loss per share - basic	($0.01)	($0.01)	($0.03)	($0.02)	'

Statements_of_Cash_Flows_Unaud

Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended		83 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'	'
Net loss	($946,496)	($313,787)	($1,774,343)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'	'
Depreciation and amortization	6,237	344	10,236
Amortization of prepaid stock compensation	'	60,000	80,000
Amortization of debt discount	84,517	'	217,330
Gain on sale of interest in oil & gas properties	'	-267,856	-267,856
Non cash interest expense	22,500	'	22,500
Gain on settlement of accounts payable	'	-661	-6,161
Stock-based compensation expense	112,494	149,994	262,489
Shares issued for services	116,000	48,430	164,430
Changes in operating assets and liabilities:	'	'	'
Increase in other receivables	-50,199	'	-57,452
Increase in product inventory	-9,934	'	-9,934
Decrease (increase) in prepaid expenses	19,967	1,942	10,684
Increase in deposits	-3,150	'	-3,150
Increase (decrease) in accounts payable	100,860	-77,430	159,008
Increase (decrease) in accounts payable – related party	'	50,953	'
Increase in accrued executive compensation	104,656	15,248	184,656
Increase (decrease) in accrued interest payable	-2,901	4,136	8,913
Increase(decrease) in accrued interest payable - related party	-3,607	2,260	-597
Net cash used in operating activities	-449,056	-326,427	-999,247
CASH FLOWS FROM INVESTING ACTIVITIES	'	'	'
Purchase oil and gas properties	-866,710	-22,951	-1,108,687
Proceeds from sale of interest in oil & gas properties	'	350,000	350,000
Purchase of website	'	'	-1,375
Purchase of fixed assets	'	'	-23,572
Restricted cash	-45,000	'	-45,000
Net cash (used in) provided by investing activities	-911,710	327,049	-828,634
CASH FLOWS FROM FINANCING ACTIVITIES	'	'	'
Increase in overdraft from trust account	'	-286	'
Member contributions	'	'	105,523
Member distribution	'	'	10,000
Proceeds from sale of common stock, net of costs	1,410,710	80,980	1,540,710
Proceeds from notes payable	200,000	14,763	520,261
Repayments for notes payable	-28,478	-8,106	-49,557
Proceeds from notes payable - related party	'	26,240	198,013
Repayments for notes payable - related party	-34,990	-102,000	-198,013
Net cash provided by (used in) financing activities	1,547,242	11,591	2,126,937
NET CHANGE IN CASH	186,476	12,213	299,056
CASH AT BEGINNING OF PERIOD	112,580	1,245	'
CASH AT END OF PERIOD	299,056	13,458	299,056
NON-CASH INVESTING AND FINANCING ACTIVITIES	'	'	'
Liabilities assumed with the acquisition of Citadel Exploration, LLC	'	'	29,265
Shares issued for prepaid stock compensation	'	'	80,000
Financing of insurance	34,891	'	49,584
Forgiveness of debt due to related party	'	'	50,953
Issuance of common stock for settlement of notes payable	$310,298	'	$310,298

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of presentation
	The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.
	These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2012 and notes thereto included in the Company’s 10-K annual report and all amendments. The Company follows the same accounting policies in the preparation of interim reports.
	Results of operations for the interim period are not indicative of annual results.
	Principles of consolidation
	For the three and nine months ended September 30, 2013 and 2012, the consolidated financial statements include the accounts of Citadel Exploration, Inc. and Citadel Exploration, LLC. All significant intercompany balances and transactions have been eliminated. Citadel Exploration, Inc. and Citadel Exploration, LLC will be collectively referred herein to as the “Company”.
	Nature of operations
	Currently, the Company is focused on the acquisition and development of oil and gas resources in California. The Company has not yet found oil and gas resources in commercially exploitable quantities and is engaged in exploring land in an effort to discover them. The Company has been in the exploration stage since its formation and has not realized revenues from its planned principal operations.
	Use of estimates
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates.
	Cash and Cash Equivalents
	The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.
	Restricted Cash
	The Company has two bonds at financial institutions to meet financial bonding requirements in the state of California. As of September 30, 2013, the restricted cash totaled $45,000.
	Debt Discount
	The Company records debt discount as a contra liability account is presented net of the associated note payable. The discount is amortized over the life of the note payable using the straight line method because it approximates the effective interest method.
	Basic and Diluted Net Earnings (Loss) Per Share
	The Company computes net income (loss) per share in accordance with ASC 260-10, which requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all potentially dilutive shares if their effect is anti-dilutive.
	Fair Value of Financial Instruments
	The carrying value of the Company’s financial instruments, including cash, due to shareholders/related parties and accounts and other payables approximate their fair values due to the immediate or short-term maturity of these instruments. It is management’s opinion that the Company is not exposed to significant interest, price or credit risks arising from these financial instruments.
	Recent pronouncements
	The Company has evaluated the recent accounting pronouncements through current and believes that none of them will have a material effect on the Company’s financial statements.

GOING_CONCERN

GOING CONCERN	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
GOING CONCERN	'
	NOTE 2 – GOING CONCERN
	The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. As noted above, the Company is in the exploration stage and, accordingly, has not yet generated revenues from operations. Since its inception, the Company has been engaged substantially in financing activities and developing its business plan and incurring startup costs and expenses. As a result, the Company incurred accumulated net losses from Inception (November 6, 2006) through the period ended September 30, 2013 of $1,774,343. In addition, the Company’s development activities since inception have been financially sustained through debt and equity financing.
	The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock and, ultimately, the achievement of significant operating revenues. These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

OIL_AND_GAS_PROPERTIES

OIL AND GAS PROPERTIES	9 Months Ended
	Sep. 30, 2013
Extractive Industries [Abstract]	'
OIL AND GAS PROPERTIES	'
	NOTE 3 – OIL AND GAS PROPERTIES
	The costs capitalized in oil and gas properties as of September 30, 2013 and December 31, 2012 are as follows:
		2013	2012
	Exploration	$       1,026,543	$     159,833
	On January 31, 2009, the Company entered into an oil, gas and mineral lease in San Benito County, California with an unrelated third party for the right to develop and operate the leased premises for an initial term of three years. The lease will continue as long as the Company continues actual drilling operations and continued development. The Company is obligated to pay royalties to the unrelated third party on oil and gas from all wells on the leased premises, and the royalty is a total of 20% of the market value. On February 1, 2012, the Company renegotiated this oil, gas and mineral lease for an additional minimum term of two years. The terms of the renegotiated lease are substantially the same as the original lease disclosed above. On February 1, 2013, the Company paid the final amount due to the mineral owner for this lease.
	On February 22, 2012, the Company sold 40% of its interest in the property disclosed above in exchange for $350,000 to its joint venture partner. The Company recorded a gain on the sale of the partial interest totaling $267,856. As of September 30, 2013, an amount of $47,391 was owed to the Company from the joint venture partner for their portion of costs incurred on “Project Indian”.
	On May 3, 2013, the Company executed an agreement with Sojitz Energy Ventures (“Sojitz”) for participation on two exploratory wells at Rancho Grande in southern Kern County, California. Sojitz is the operator for this project. Under terms of the agreement, the Company will pay 22.22% cost share for a 20% working interest. Drilling commenced on that date and the Company has paid $444,288 toward their portion for the drilling of the two wells during the second quarter of 2013. In addition, the Company elected to participate in a third well and paid $189,400 toward their portion for drilling during the second quarter of 2013. Additional costs in the third quarter was approximately $85,000. In total, the Company has incurred $718,677 in Oil and Gas Properties on this project.
	In May 2013, the Company entered into a one year lease for approximately 3,000 acres from AERA Energy, LLC. This acreage has been mapped using a combination of both 2D and 3D seismic, and is in close proximity to the Yowlumne oil field in Kern County, California. The Company is obligated to pay royalties to AERA Energy, LLC on oil and gas from all wells on the leased premises, and the royalty is a total of 20% of the market value. In August of 2013, the Company entered into an agreement to sell 75% of the interest in the Yowlumne lease, recouping approximately 85% of its cost, while retaining a 25% interest in the lease and operatorship. Additionally, as part of this transaction, the Company retained 100% interest in the Yowlumne #2 well, which was drilled in 2007. As of third quarter end 2013, the well had produced approximately 100 barrels of oil which were stored in a tank and valued at net realizable value on the balance sheet as product inventory.
	In September 2013, Citadel executed a non-binding letter of intent for a farm out on approximately 55 acres in the Pastoria Creek Area (Rancho Grande). Under the agreement Citadel will have 100% of the working interest and bear all costs for an exploration well. Sojitz will retain an overriding royalty interest (ORRI) and receive a production payment.

NOTES_PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTES PAYABLE	'
	NOTE 4 – NOTES PAYABLE
	Notes payable consists of the following at:
		September 30,	31-Dec-12
		2013
	Note payable to an individual, line of credit to borrow up to $100,000, unsecured, 10% interest, due upon demand	$                    -	$          55,498
	Two notes payable to individuals, 10% interest, due January 1, 2014	200,000	-
	Note payable to an entity for the financing of insurance premiums, unsecured, 13.95% interest, due December  2013	20,457	1,746
	Note payable to an individual, personally guaranteed by shares of the Company which are owned by an officer, 12% interest, due on the earlier of February 2013 or the Company raising in excess of $1,000,000	-	250,000
	Debt discount for 200,000 warrants issued with notes payable	-56,792	-84,517
		$      163,665	$       222,527

NOTES_PAYABLE_RELATED_PARTY

NOTES PAYABLE b RELATED PARTY	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]	'
NOTES PAYABLE b RELATED PARTY	'
	NOTE 5 – NOTES PAYABLE – RELATED PARTY
	Notes payable consists of the following at:
		September 30,	31-Dec-12
		2013
	Note payable to an entity owned and controlled by an officer, director and shareholder, line of credit to borrow up to $100,000, unsecured, 4% interest, due upon demand	$               -	$          32,240
	Note payable to a director, unsecured, due upon demand, 0% interest	-	2,750
		$               -	$        34,990
	The Company settled all related party notes payable during the first quarter of 2013.

STOCKHOLDERS_EQUITY_DEFICIT

STOCKHOLDERSb EQUITY (DEFICIT)	9 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
STOCKHOLDERSb EQUITY (DEFICIT)	'
	NOTE 6 – STOCKHOLDERS’ EQUITY (DEFICIT)
	The Company is authorized to issue 100,000,000 shares of its $0.001 par value common stock.
	In February 2013, the Company issued 4,186,000 shares of restricted common stock for cash consideration of $1,423,490 or $0.34 per share, less issuance cost of $12,780.
	In February 2013, the Company issued 912,640 shares of restricted common stock for the conversion of loans and interest in the amount of $310,298. The fair value of the shares at the date of settlement was $332,798, which resulted in the Company recording $22,500 in additional interest expense.
	In February 2013, the Company issued 320,000 shares of restricted common stock valued at $116,000 to various parties for accounting, legal and marketing services.
	In September 2013, the Company closed on a $200,000 bridge loan from two individuals. These notes have a 90 day term and bear interest of 10%. Additionally, each investor received 100,000 warrants to purchase the Company’s stock at $1.00 per share for a term of one year valued at $56,792.

STOCK_OPTION_PLAN

STOCK OPTION PLAN	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
STOCK OPTION PLAN	'
	NOTE 7 – STOCK OPTION PLAN
	On September 1, 2012, the Board of Directors of the Company ratified, approved, and adopted a Stock Option Plan for the Company allowing for the grant of up to 10,000,000 shares of common stock or stock options to acquire common shares. In the event an optionee ceases to be employed by or to provide services to the Company for reasons other than cause, any Stock Option that is vested and held by such optionee may be exercisable within up to thirty days after the effective date that his position ceases. No Stock Option granted under the Stock Option Plan is transferable. Any Stock Option held by an optionee at the time of his death may be exercised by his estate within six months of his death or such longer period as the Board of Directors may determine.
	As approved by the Board of Directors, on September 4, 2012, the Company granted 4,000,000 stock options to two officers of the Company at $0.20 per share for terms of seven years. Of the total stock options, 1,000,000 vested immediately and the remaining vest equally over the next 3 years at the anniversary date of the employment agreements. The total fair value of these options at the date of grant was estimated to be $599,974 and was determined using the Black-Scholes option pricing model with an expected life of 7 years, a risk free interest rate of 1.01%, a dividend yield of 0% and expected volatility of 254%. Stock based compensation expense was $112,494 and $149,994 during the nine months ended September 30, 2013 and 2012, respectively.
	The following is a summary of the status of all of the Company’s stock options as of September 30, 2013 and changes during the period ended on that date:
		Number	Weighted-Average	Weighted-Average
		of Options	Exercise Price	Remaining Life (Years)
	Outstanding at January 1, 2013	4,000,000	$     0.20	5.93
	Granted	-	$     0.00	-
	Exercised	-	$     0.00	-
	Cancelled	-	$     0.00	-
	Outstanding at September 30, 2013	4,000,000	$     0.20	5.93
	Exercisable at September 30, 2013	2,000,000	$     0.20	5.93

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
SUBSEQUENT EVENTS	'
	NOTE 8 – SUBSEQUENT EVENTS
	In October 2013, the Company closed on a $100,000 bridge loan from an individual. This note has a 90 day term and bears interest of 10%. Additionally, this investor received 100,000 warrants to purchase the Company’s stock at $1.00 per share for a term of one year.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Basis of presentation	'
	Basis of presentation
	The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.
	These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2012 and notes thereto included in the Company’s 10-K annual report and all amendments. The Company follows the same accounting policies in the preparation of interim reports.
	Results of operations for the interim period are not indicative of annual results.
Principles of consolidation	'
	Principles of consolidation
	For the three and nine months ended September 30, 2013 and 2012, the consolidated financial statements include the accounts of Citadel Exploration, Inc. and Citadel Exploration, LLC. All significant intercompany balances and transactions have been eliminated. Citadel Exploration, Inc. and Citadel Exploration, LLC will be collectively referred herein to as the “Company”.
Nature of operations	'
	Nature of operations
	Currently, the Company is focused on the acquisition and development of oil and gas resources in California. The Company has not yet found oil and gas resources in commercially exploitable quantities and is engaged in exploring land in an effort to discover them. The Company has been in the exploration stage since its formation and has not realized revenues from its planned principal operations.
Use of estimates	'
	Use of estimates
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.
Restricted Cash	'
	Restricted Cash
	The Company has two bonds at financial institutions to meet financial bonding requirements in the state of California. As of September 30, 2013, the restricted cash totaled $45,000.
Debt Discount	'
	Debt Discount
	The Company records debt discount as a contra liability account is presented net of the associated note payable. The discount is amortized over the life of the note payable using the straight line method because it approximates the effective interest method.
Basic and Diluted Net Earnings (Loss) Per Share	'
	Basic and Diluted Net Earnings (Loss) Per Share
	The Company computes net income (loss) per share in accordance with ASC 260-10, which requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all potentially dilutive shares if their effect is anti-dilutive.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	The carrying value of the Company’s financial instruments, including cash, due to shareholders/related parties and accounts and other payables approximate their fair values due to the immediate or short-term maturity of these instruments. It is management’s opinion that the Company is not exposed to significant interest, price or credit risks arising from these financial instruments.
Recent pronouncements	'
	Recent pronouncements
	The Company has evaluated the recent accounting pronouncements through current and believes that none of them will have a material effect on the Company’s financial statements.

OIL_AND_GAS_PROPERTIES_Tables

OIL AND GAS PROPERTIES (Tables)	9 Months Ended
	Sep. 30, 2013
Extractive Industries [Abstract]	'
Costs capitalized in oil and gas properties	'
		2013	2012
	Exploration	$       1,026,543	$     159,833

NOTES_PAYABLE_Tables

NOTES PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Notes payable consists	'
		September 30,	31-Dec-12
		2013
	Note payable to an individual, line of credit to borrow up to $100,000, unsecured, 10% interest, due upon demand	$                    -	$          55,498
	Two notes payable to individuals, 10% interest, due January 1, 2014	200,000	-
	Note payable to an entity for the financing of insurance premiums, unsecured, 13.95% interest, due December  2013	20,457	1,746
	Note payable to an individual, personally guaranteed by shares of the Company which are owned by an officer, 12% interest, due on the earlier of February 2013 or the Company raising in excess of $1,000,000	-	250,000
	Debt discount for 200,000 warrants issued with notes payable	-56,792	-84,517
		$      163,665	$       222,527

NOTES_PAYABLE_RELATED_PARTY_Ta

NOTES PAYABLE b RELATED PARTY (Tables)	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]	'
Notes payables	'
		September 30,	31-Dec-12
		2013
	Note payable to an entity owned and controlled by an officer, director and shareholder, line of credit to borrow up to $100,000, unsecured, 4% interest, due upon demand	$               -	$          32,240
	Note payable to a director, unsecured, due upon demand, 0% interest	-	2,750
		$               -	$        34,990

STOCK_OPTION_PLAN_Tables

STOCK OPTION PLAN (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Companybs stock options	'
		Number	Weighted-Average	Weighted-Average
		of Options	Exercise Price	Remaining Life (Years)
	Outstanding at January 1, 2013	4,000,000	$     0.20	5.93
	Granted	-	$     0.00	-
	Exercised	-	$     0.00	-
	Cancelled	-	$     0.00	-
	Outstanding at September 30, 2013	4,000,000	$     0.20	5.93
	Exercisable at September 30, 2013	2,000,000	$     0.20	5.93

GOING_CONCERN_Details_Narrativ

GOING CONCERN (Details Narrative) (USD $)	83 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Incurred accumulated net losses	$1,774,343

OIL_AND_GAS_PROPERTIES_Details

OIL AND GAS PROPERTIES (Details Narrative) (USD $)	3-May-13	Jan. 31, 2013	Feb. 22, 2012
Extractive Industries [Abstract]	'	'	'
Royalty is a total of the market value	'	'20%	'
Company sold of its interest	'	'	'40%
Property disclosed above in exchange	'	'	$350,000
Partial interest totaling	'	'	267,856
Amount of was owed	'	'	47,391
Pay cost share	'22.22%	'	'
Working interest	'20%	'	'
Drilling commenced on that date and the Company has paid	444,288	'	'
Participate in a third well and paid	189,400	'	'
Accrual for costs in the third quarter	85,000	'	'
Oil and Gas Properties total	$718,677	'	'

STOCKHOLDERS_EQUITY_DEFICIT_De

STOCKHOLDERSb EQUITY (DEFICIT) (Details Narrative) (USD $)	Sep. 30, 2013	Feb. 28, 2013
Equity [Abstract]	'	'
Authorized to issue shares	100,000,000	'
Par value common stock	$0.00	'
Issued shares	'	4,186,000
Common stock for cash consideration	'	$1,423,490
Per share	'	$0.34
Less issuance cost	'	12,780
Loans and interest in the amount	'	310,298
Shares at the date of settlement	'	332,798
Additional interest expense	'	22,500
Shares of restricted common stock	'	320,000
Common stock valued	'	116,000
Bridge loan from two individuals	200,000	'
Term and bear interest	'10%	'
Each investor received	$100,000	'
Per share for a term of one year	$1	'

STOCK_OPTION_PLAN_Details_Narr

STOCK OPTION PLAN (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 04, 2012	Sep. 01, 2012
Notes to Financial Statements	'	'	'	'
Shares of common stock or stock options to acquire common shares	'	'	'	$10,000,000
Company granted stock	'	'	4,000,000	'
Per share	'	'	$0.20	'
Total stock	'	'	1,000,000	'
Grant was estimated	'	'	599,974	'
Risk free interest rate	'	'	'1.01%	'
Dividend yield	'	'	'0%	'
Expected volatility	'	'	'254%	'
Stock based compensation expense	$112,494	$149,994	'	'

SUBSEQUENT_EVENTS_Details_Narr

SUBSEQUENT EVENTS (Details Narrative) (USD $)	Oct. 31, 2013
Subsequent Events [Abstract]	'
Bridge loan from an individual	$100,000
Term and bears interest	'10%
Investor received warrants	$100,000
Stock per share	$1