Citadel Exploration (COIL) 10-K14 Apr 142013 FY Annual reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Dec. 31, 2013	Apr. 11, 2014
Document And Entity Information	'	'
Entity Registrant Name	'Citadel Exploration, Inc.	'
Entity Central Index Key	'0001482075	'
Document Type	'10-K	'
Document Period End Date	31-Dec-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 Public Float	'	$0
Entity Common Stock, Shares Outstanding	'	29,714,000
Document Fiscal Period Focus	'FY	'
Document Fiscal Year Focus	'2013	'

Balance_Sheets_Unaudited

Balance Sheets (Unaudited) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Current assets:	'	'
Cash	$402,649	$112,580
Other receivable	40,660	7,253
Prepaid expenses	41,589	9,283
Product inventory	4,881	'
Total current assets	489,779	129,116
Deposits	4,000	'
Restricted cash	45,000	'
Oil and gas properties	1,373,363	159,833
Fixed assets, net	12,633	20,948
Total assets	1,924,775	309,897
Current liabilities:	'	'
Accounts payable and accrued payables	435,332	102,438
Accrued interest payable	8,316	14,824
Notes payable, net	314,134	257,517
Total current liabilities	757,782	374,779
Asset retirement obligation	31,407	'
Total liabilities	789,188	374,779
Stockholders' deficit:	'	'
Common stock, $0.001 par value, 100,000,000 shares authorized, 28,949,823 and 22,613,000 shares issued and outstanding as of December 31, 2013 and December 31, 2012, respectively	28,950	22,613
Additional paid-in capital	3,345,175	740,352
Deficit accumulated during development stage	-2,238,537	-827,847
Total stockholders' equity	1,135,587	-64,882
Total liabilities and stockholders' equity	$1,924,775	$309,897

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Dec. 31, 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	28,949,823	28,949,823
Common stock, outstanding	22,613,000	22,613,000

Statements_of_Operations_Unaud

Statements of Operations (Unaudited) (USD $)	12 Months Ended		86 Months Ended
Statements of Operations (Unaudited) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013
Income Statement [Abstract]	'	'	'
Revenue	$9,223	'	$9,223
Operating expenses:	'	'	'
Lease operating expense	85,335	'	85,335
Geological and geophysical expense	6,304	'	6,304
General and administrative	295,094	202,484	562,036
Depreciation, amortization and accretion	8,381	3,732	12,380
Professional fees	318,072	287,449	758,829
Executive compensation	476,190	229,994	706,184
Gain on sale of interest in oil & gas properties	'	-267,856	-267,856
Gain on settlement of accounts payable	'	-6,161	-6,161
Total operating expenses	1,189,376	449,642	1,857,051
Other expenses:	'	'	'
Interest expense	-228,938	-146,350	-381,681
Total other expenses	-228,938	-146,350	-381,681
Net loss before provision for income taxes	-1,409,090	-595,992	-2,229,508
Provision for income taxes	1,600	1,600	9,029
Net loss	($1,410,690)	($597,592)	($2,238,537)
Weighted average number of common shares outstanding - basic	28,949,823	22,613,000	'
Net loss per share - basic	($0.05)	($0.03)	'

Shareholders_Equity

Shareholders Equity (USD $)	Common Stock Shares	Common Stock Amount	Additional Paid-In Capital	Stock Payable	Deficit Accumulated During Exploration Stage	Total
Balance, November 6, 2006 at Nov. 05, 2006	'	'	'	'	'	'
Member contribution	$14,000,000	$14,000	($13,600)	'	'	$105,523
Net loss	'	'	'	'	-805	-805
Balance, December 31, 2006	14,000,000	14,000	-13,600	'	-805	-405
Member contribution	'	'	40,800	'	'	40,800
Net loss	'	'	'	'	-1,140	-1,140
Balance, December 31, 2007	14,000,000	14,000	27,200	'	-1,945	39,255
Member contribution	'	'	12,000	'	'	12,000
Member distribution	'	'	-10,000	'	'	-10,000
Net loss	'	'	'	'	-1,943	-1,943
Balance, December 31, 2008	14,000,000	14,000	29,200	'	-3,888	39,312
Member contribution	'	'	43,093	'	'	43,093
Net loss	'	'	'	'	-1,082	-1,082
Balance, December 31, 2009	14,000,000	14,000	72,293	'	-4,970	81,323
Net loss	'	'	'	'	-800	-800
Balance, December 31, 2010	14,000,000	14,000	72,293	'	-5,770	80,523
Member contribution	'	'	27,761	'	'	27,761
Recapitalization	6,200,000	6,200	-35,465	'	'	-29,265
Issuance of common stock for cash	20,000	20	15,980	34,000	'	50,000
Issuance of common stock for services	100,000	100	79,900	'	'	80,000
Donated capital	'	'	489	'	'	489
Net loss	'	'	'	'	-224,485	-224,485
Balance, December 31, 2011	20,320,000	20,320	160,958	34,000	-230,255	-14,977
Donated capital	'	'	980	'	'	980
Issuance of common stock for stock payable	42,500	43	33,957	-34,000	'	'
Forgiveness of debt with related party	'	'	50,953	'	'	50,953
Issuance of common stock for services	250,500	250	48,180	'	'	48,430
Issuance of stock options for employment agreements	'	'	149,994	'	'	149,994
Issuance of common stock for cash	2,000,000	2,000	78,000	'	'	80,000
Issuance of warrants as part of note payable	'	'	217,330	'	'	217,330
Net loss	'	'	'	'	-597,592	-597,592
Balance, December 31, 2012	22,613,000	22,613	740,352	'	-827,847	-64,882
Issuance of common stock for cash	4,186,000	4,186	1,419,054	'	'	1,423,240
Issuance of common stock for settlement of note payable and accrued interest	912,640	913	331,885	'	'	332,798
Issuance of common stock for services	320,000	320	115,680	'	'	116,000
Issuance cost	'	'	-12,531	'	'	-12,531
Issuance of warrants as part of notes payable	'	'	56,792	'	'	56,792
Issuance of warrants as part of notes payable	'	'	49,151	'	'	49,151
Issuance of common stock for cash	918,183	918	504,082	'	'	505,001
Private placement costs 2013	'	'	-9,285	'	'	-9,285
Stock option compensation expense for employment agreements	'	'	149,994	'	'	149,994
Net loss	'	'	'	'	($1,410,690)	($1,410,690)
Balance, December 31, 2013 at Dec. 31, 2013	28,949,823	28,950	3,345,175	'	-2,238,537	1,135,587

Statements_of_Cash_Flows_Unaud

Statements of Cash Flows (Unaudited) (USD $)	12 Months Ended		86 Months Ended
Statements of Cash Flows (Unaudited) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'	'
Net loss	($1,410,690)	($597,592)	($2,238,537)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'	'
Depreciation, amortization and accretion	8,381	3,732	12,380
Amortization of prepaid stock compensation	'	60,000	80,000
Amortization of debt discount	169,706	132,813	302,519
Non cash interest expense	22,500	'	22,500
Gain on sale of interest in oil & gas properties	'	-267,856	-267,856
Gain on settlement of accounts payable	'	-6,161	-6,161
Stock based compensation expense	149,994	149,994	299,988
Shares issued for consulting	116,000	48,430	164,430
Changes in operating assets and liabilities:	'	'	'
Increase in other receivable	-33,407	-7,253	-40,660
Increase in product inventory	-4,881	'	-4,881
Decrease in prepaid expenses	32,871	7,381	23,588
Increase in accounts payable and accrued payables	332,894	59,704	471,042
Decrease in deposits	-4,000	'	-4,000
Increase in accrued interest payable	-6,508	10,413	8,316
Net cash used in operating activities	-627,141	-406,395	-1,177,333
CASH FLOWS FROM INVESTING ACTIVITIES	'	'	'
Purchase oil and gas properties	-1,182,189	-36,617	-1,424,166
Proceeds from sale of interest in oil & gas properties	'	350,000	350,000
Purchase fixed assets	'	-23,572	-23,572
Restricted cash	-45,000	'	-45,000
Net cash provided by (used in) investing activities	-1,227,189	289,811	-1,144,113
CASH FLOWS FROM FINANCING ACTIVITIES	'	'	'
Increase/ (decrease) in overdraft from trust account	'	-286	'
Member contributions	'	980	105,523
Member distribution	'	'	10,000
Proceeds from sale of common stock, net of costs	1,906,424	80,000	2,036,424
Proceeds from notes payable	300,000	331,326	818,274
Repayments for notes payable	-62,025	-184,101	-246,126
Net cash provided by financing activities	2,144,399	227,919	2,724,095
NET CHANGE IN CASH	290,069	111,335	402,649
CASH AT BEGINNING OF YEAR	112,580	'	'
CASH AT END OF YEAR	402,649	112,580	402,649
SUPPLEMENTAL INFORMATION:	'	'	'
Interest paid	'	'	'
Income taxes paid	'	'	'
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	65,177	14,963	79,870
Forgiveness of debt due to related party	'	50,953	50,953
Issuance of common stock for settlement of note payable and accrued interest	$310,298	'	$310,298

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2013
Accounting Policies [Abstract]	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

	Organization
	Citadel Exploration, Inc. ("Citadel Inc") was incorporated on December 17, 2009 in the State of Nevada originally under the name Subprime Advantage, Inc. On March 2, 2011, the Company changed its name from Subprime Advantage, Inc. to Citadel Exploration, Inc.

	On May 3, 2011, Citadel Inc completed the acquisition of 100% interest in Citadel Exploration, LLC, a California limited liability company, ("Citadel LLC") pursuant to a Membership Purchase Agreement (the "MPA"). Under the MPA, Citadel Inc issued 14,000,000 shares of the its common stock an individual in exchange for a 100% interest in Citadel LLC. Additionally under the MPA, the former officers and directors of Citadel Inc agreed to cancel 7,696,000 shares of its common stock. For accounting purposes, the acquisition of the Citadel LLC by Citadel Inc has been accounted for as a recapitalization, similar to a reverse acquisition except no goodwill is recorded, whereby the private company, Citadel LLC, in substance acquired a non-operational public company (Citadel Inc) with nominal assets and liabilities for the purpose of becoming a public company. Accordingly, Citadel LLC are considered the acquirer for accounting purposes and thus, the historical financials are primarily that of Citadel LLC. As a result of this transaction, Citadel Inc changed its business direction and is now involved in the acquisition and development of oil and gas resources in California. Citadel LLC was incorporated on November 6, 2006 (Date of Inception) and accordingly, the accompanying financial statements are from the Date of Inception of Citadel LLC through ending reporting periods reflected.

	The Company has not commenced any significant operations and, in accordance with ASC Topic 915, the Company is considered an exploration stage company.

	The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to exploration stage enterprises, and are expressed in U.S. dollars. The Company’s fiscal year end is December 31.

	Principles of consolidation
	For the years ended December 31, 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 significant 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.

	Fair value of financial instruments
	Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2013 and 2012. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, prepaid expenses and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.

	Level 1: The preferred inputs to valuation efforts are “quoted prices in active markets for identical assets or liabilities,” with the caveat that the reporting entity must have access to that market. Information at this level is based on direct observations of transactions involving the same assets and liabilities, not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade in active markets.

	Level 2: FASB acknowledged that active markets for identical assets and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. To deal with this shortage of direct data, the board provided a second level of inputs that can be applied in three situations.

	Level 3: If inputs from levels 1 and 2 are not available, FASB acknowledges that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as “unobservable,” and limits their use by saying they “shall be used to measure fair value to the extent that observable inputs are not available.” This category allows “for situations in which there is little, if any, market activity for the asset or liability at the measurement date”. Earlier in the standard, FASB explains that “observable inputs” are gathered from sources other than the reporting company and that they are expected to reflect assumptions made by market participants.

	Fixed assets
	The Company records all property and equipment at cost less accumulated depreciation. Improvements are capitalized while repairs and maintenance costs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful life of the assets or the lease term, whichever is shorter. Leasehold improvements include the cost of the Company’s internal development and construction department. Depreciation periods are as follows:

	Vehicles 3 years

	The Company capitalizes the costs associated with the development of the Company’s website pursuant to ASC Topic 350. Other costs related to the maintenance of the website are expensed as incurred. Amortization is provided over the estimated useful lives of three years using the straight-line method for financial statement purposes. The Company has commenced amortization upon completion of the Company’s fully operational website.

	Stock-based compensation
	The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.

	The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.

	Earnings per share
	The Company follows ASC Topic 260 to account for the earnings per share. Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.

	Oil and gas properties
	Effective, January 1, 2013, the Company changed its policy to successful efforts. The Company evaluated the impact on the prior periods and there were no material changes to the balance sheet as a result of the change in accounting policy. During the quarter ended December 31, 2012, the Company expensed $23,768 of geological and geophysical costs in anticipation of the change in accounting policy. Under the successful efforts method, oil and gas property costs are initially capitalized with the intent to establish commercially viable reserves. Expenditures to acquire mineral interests in oil and gas properties and to drill and equip exploratory wells are capitalized until the well is complete and the results have been evaluated. If, following the evaluation, the exploratory well has not found proved reserves, the previously capitalized costs are evaluated for derecognition or tested for impairment. Geological and geophysical costs and other exploration expenditures are expensed as incurred.

	The Company is required to make estimates and judgments about future events and circumstances regarding the future economic viability of extracting the underlying resources. Changes to project economics, resource quantities, expected production techniques, unsuccessful drilling, expired mineral leases, production costs and required capital expenditures are important factors when making this determination. To the extent a judgment is made, that the underlying reserves are not viable, the oil and gas property costs will be impaired and charged to net earnings.

	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 December 31, 2013, the restricted cash totaled $45,000.

	Debt discount
	The Company records debt discount as a contra liability account and is presented net of the associated note payable. The discount was amortized over the life on the note payable using the straight line method because the straight line method approximates the effective interest method.

	Revenue recognition
	The Company recognizes oil and natural gas revenues from our interests in producing wells when production is delivered to, and title has transferred to, the purchaser and to the extent the selling price is reasonably determinable.

	Asset retirement obligation
	ARO reflects the estimated present value of the amount of dismantlement, removal, site reclamation and similar activities associated with the Company's oil and natural gas properties. Inherent in the fair value calculation of the ARO are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement and changes in the legal, regulatory, environmental and political environments.

Income taxes
The Company follows ASC Topic 740 for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change.

Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.

The Company applies a more-likely-than-not recognition threshold for all tax uncertainties. ASC Topic 740 only allows the recognition of those tax benefits that have a greater than fifty percent likelihood of being sustained upon examination by the taxing authorities. As of December 31, 2013 and 2012, the Company reviewed its tax positions and determined there were no outstanding, or retroactive tax positions with less than a 50% likelihood of being sustained upon examination by the taxing authorities, therefore this standard has not had a material effect on the Company.

The Company does not anticipate any significant changes to its total unrecognized tax benefits within the next 12 months.

The Company classifies tax-related penalties and net interest as income tax expense. As of December 31, 2013 and 2012, $1,600 and $1,600 of income tax expense has been incurred.

Recent pronouncements
The Company has evaluated the recent accounting pronouncements through March 2014 and believes that none of them will have a material effect on the company’s financial statements.

In December 2011, the Financial Accounting Standards Board (“FASB”) issued guidance in the Accounting Standards Update (“ASU”) 2011-11 “Balance Sheet: Disclosures about Offsetting Assets and Liabilities”, which was intended to result in convergence between (“GAAP”) and International Financial Reporting Standards (“IFRS”). Requirements for offsetting (netting) assets and liabilities are presented in the statements of financial position. The guidance requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The disclosure affects all entities with financial instruments and derivatives that are either offset on the balance sheet in accordance with Accounting Standards Codification (“ASC”), ASC 210-20-45 or ASC 815-10-45, or subject to a master netting arrangement, irrespective of whether they are offset on the balance sheet. The Company adopted this guidance effective January 1, 2013 with no effect on financial condition, results of operations or cash flows.

In February 2013, the FASB issued ASU 2013-02 related to reporting amounts reclassified out of accumulated other comprehensive income ("AOCI"). Under this ASU amendment, an entity is required to provide information about the amounts reclassified out of AOCI by component. In addition, an entity is required to present either on the face of the financial statements or in the notes significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. We adopted this amendment during 2013 with no effect on our financial condition, results of operations or cash flows.

In July 2013, the FASB issued ASU 2013-11 providing updated guidance on whether an uncertain tax position should be presented as a reduction to a deferred tax asset or as a separate liability. This guidance seeks to address diversity in practice. This guidance is effective for interim and annual periods beginning after December 15, 2013. The adoption of this guidance is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows.

Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to be significant to the Company’s financial position, results of operations or cash flows.

GOING_CONCERN

GOING CONCERN	12 Months Ended
GOING CONCERN	Dec. 31, 2013
Notes to Financial Statements	'
GOING CONCERN	'
	NOTE 2 – GOING CONCERN

	The accompanying 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 development 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 start up costs and expenses. As a result, the Company incurred accumulated net losses from Inception (November 6, 2006) through the period ended December 31, 2013 of ($2,238,537). 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 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.

PREPAID_INSURANCE

PREPAID INSURANCE	12 Months Ended
PREPAID INSURANCE	Dec. 31, 2013
Notes to Financial Statements	'
PREPAID INSURANCE	'
	NOTE 3 – PREPAID INSURANCE

	As of December 31, 2013 and 2012, the Company had prepaid insurance totaling $36,589 and $9,283, respectively. The prepaid insurance will be expensed on a straight line basis over the remaining life of the insurance policy. During the years ended December 31, 2013 and 2012, the Company recorded $47,681 and $21,871 of insurance expenses.

OIL_AND_GAS_PROPERTIES

OIL AND GAS PROPERTIES	12 Months Ended
	Dec. 31, 2013
Extractive Industries [Abstract]	'
OIL AND GAS PROPERTIES	'
	NOTE 4 – OIL AND GAS PROPERTIES

	The costs capitalized in oil and gas properties as of December 31, 2013 and 2012 are as follows:

		2013		2012
	Exploration	$ 1,373,363		$ 159,833

	Project Indian
	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 December 31, 2013, an amount of XXXXX was owed to the Company from the joint venture partner for their portion of costs incurred.
	Drilling commenced on this property in January 2014, see Subsequent Event footnote.

	Per ASC 932, these wells qualify as exploratory wells and review of the capitalized costs incurred to prove up reserves must to be evaluated in the period of one year after the completion of the drilling date.

	The following table reflects the net changes in capitalized exploratory well costs that have been capitalized for a period of one year or less since completion of drilling during as of December 31, 2013:

		2013
	Beginning balance at January 1	$	159,833
	Additions to capitalized exploratory well costs pending the determination of proved reserves		1,182,189
	Reclassifications to wells, facilities and equipment based on the determination of proved reserves		-
	Capitalized exploratory well costs charged to expense		-
	Ending balance at December 31	$	1,342,022

	Yowlumne
	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 originally drilled in 2007. After performing a workover job on this well, it has produced approximately 120 barrels of oil which were sold in December 2013.

	Wreden Ranch
	The Company has not been successful in obtaining permits needed to move forward on the project from the County of San Luis Obispo and has decided not to pursue this project any further, therefore the capital leasehold cost incurred of $13,290 was expensed as consulting expense.

FIXED_ASSETS

FIXED ASSETS	12 Months Ended
FIXED ASSETS	Dec. 31, 2013
Notes to Financial Statements	'
FIXED ASSETS	'
	NOTE 5 – FIXED ASSETS

	Fixed assets as of December 31, 2013 and 2012 are as follows:

		2013			2012
	Vehicle	$	23,572		$	23,572
	Website		1,375			1,375
	Less: Accumulated depreciation		(12,314	)		(3,999	)
		$	12,633		$	20,948

	Depreciation expense for the year ended December 31, 2013 was $8,315.

NOTES_PAYABLE

NOTES PAYABLE	12 Months Ended
NOTES PAYABLE	Dec. 31, 2013
Notes to Financial Statements	'
NOTES PAYABLE	'
	NOTE 6 – NOTES PAYABLE

	Notes payable consists of the following at:
		31-Dec-13		31-Dec-12
	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
	Note payable to an individual, line of credit to borrow up to $100,000, unsecured, 10% interest, due upon demand		—		55,298
	Three notes payable to individuals, 10% interest, due January 1, 2014		300,000		—
	Three notes payable to an entity for the financing of insurance premiums, unsecured; 14% interest, due December 2013; 14% interest, due February 2014; 11% interest, due August 2014		14,134		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 300,000 warrants issued with notes payable		—		(84,517	)

		$	314,134	$	257,517


	Interest expense for the years ended December 31, 2013 and 2012 was $14,950 and $10,744, respectively.

	The Company settled all related party notes payable of $34,990 during the first quarter of 2013. During the year ended December 31, 2012, the Company repaid a total of $122,700 to reduce balances due under notes payable to entities owned and controlled by an officer, director and shareholder.

ASSET_RETIREMENT_OBLIGATION

ASSET RETIREMENT OBLIGATION	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
ASSET RETIREMENT OBLIGATION	'
	NOTE 7 – ASSET RETIREMENT OBLIGATION

	The Company's ARO relates to future costs associated with the plugging and abandonment of oil and natural gas wells, removal of equipment facilities from leased acreage and land restoration in accordance with applicable local, state and federal laws. The discounted fair value of an ARO liability is required to be recognized in the period in which it is incurred, with the associated asset retirement cost capitalized as part of the carrying cost of the oil and natural gas asset. In periods subsequent to the initial measurement of the ARO, the Company must recognize period-to-period changes in the liability resulting from the passage of time and revisions to either the timing or the amount of the original estimate of undiscounted cash flows. Increases in the ARO liability due to the passage of time impact net earnings as accretion expense. The related capital cost, including revisions thereto, is charged to expense through DD&A—oil and natural gas production over the life of the oil and natural gas field.

	In October 2013, the Company announced its first oil production on the Yowlumne 2-26 well and therefore an asset retirement obligation must be booked to on this well as follows.

		2013
	Beginning asset retirement obligation	$	—
	Liabilities acquired from property acquisition		31,407
	Accretion expense		66
	Ending asset retirement obligation	$	31,472

STOCKHOLDERS_EQUITY_DEFICIT

STOCKHOLDERS' EQUITY (DEFICIT)	12 Months Ended
STOCKHOLDERS' EQUITY (DEFICIT)	Dec. 31, 2013
Notes to Financial Statements	'
STOCKHOLDERS' EQUITY (DEFICIT)	'
	NOTE 8 – STOCKHOLDERS’ EQUITY (DEFICIT)

	The Company is authorized to issue 100,000,000 shares of its $0.001 par value common stock.

	On March 2, 2011, the Company effected a 12-to-1 forward stock split of its $0.001 par value common stock with a record date of March 22, 2011.

	All shares and per share amounts have been retroactively restated to reflect the split discussed above.

	During the year ended December 31, 2006, the member contributed capital of $400.

	During the year ended December 31, 2007, the member contributed capital of $40,800.

	During the year ended December 31, 2008, the member contributed capital of $12,000 and received draws totaling $10,000.

	During the year ended December 31, 2009, the member contributed capital of $43,093.

	On May 3, 2011, the Company issued 14,000,000 shares to an individual in exchange for a 100% interest in Citadel Exploration, LLC. As part of the Membership Purchase Agreement the former officers and directors agreed to cancel 7,696,000 shares of common stock. On May 3, 2011, the transaction was closed and 100% interest in Citadel Exploration, LLC was acquired by the Company. For accounting purposes, the acquisition of Citadel Exploration, LLC by the Company has been recorded as a reverse acquisition of a public company and recapitalization of Citadel Exploration, LLC based on the factors demonstrating that Citadel Exploration, LLC represents the accounting acquirer. The historic financial statements of Citadel Exploration, LLC and related entities, while historically presented as an LLC equity structure, have been retroactively presented as a corporation for comparability purposes. The Company changed its business direction and is now an oil and gas company.

	On May 20, 2011, the Company sold 62,500 shares of common stock for cash of $50,000. As of June 30, 2011, the Company issued 20,000 shares of common stock. As of December 31, 2011, the remaining 42,500 shares have not been issued and have been recorded to stock payable.

	On October 12, 2011, the Company issued 100,000 shares of common stock for services totaling $80,000 to be performed over a period of one year. The shares were valued according to the fair value of the common stock

	During January 2012, the Company received donated capital of $980 from an officer of the Company.

	During May 2012, the Company issued 42,500 shares of common stock to an investor for $34,000 in cash received during the year ended December 31, 2011. Upon issuance of the common stock, the Company reduced the entire balance of stock payable to $0.

	During July 2012, an entity owned and controlled by an officer and director of the Company forgave accounts payable totaling $50,953 and was recorded to additional paid in capital.

	During the three months ended September 30, 2012, the Company agreed to issue a total 250,500 shares for consulting services rendered totaling $48,430. In November 2012, the shares of common stock were issued.

	During September 2012, the Company issued 4,000,000 stock options to executives as part of their employment agreements. The fair value of the stock options totaled $149,994.

	During September 2012, the Company issued 2,000,000 shares of common stock to an investor for $80,000 in cash.

	During November 2012, the Company issued 500,000 warrants to a lender in conjunction with a promissory note. The fair value of the warrants totaled $217,330.

	In February 2013, the Company issued 4,186,000 shares of restricted common stock for cash consideration of $1,423,240 or $0.34 per share, less issuance cost of $12,531.

	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. In October, the Company closed an additional $100,000 brige loan from one investor. 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 $105,943 in total.

	In January 2014, the Company issued 918,183 common stock shares for cash for payment to investors whose funds were received in December 2013.

STOCK_OPTION_PLAN

STOCK OPTION PLAN	12 Months Ended
STOCK OPTION PLAN	Dec. 31, 2013
Notes to Financial Statements	'
STOCK OPTION PLAN	'
	NOTE 9 – 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%. During year ended December 31, 2013 and 2012, $149,994 and $149,994, respectively, was recorded as a stock based compensation expense.

	The following is a summary of the status of all of the Company’s stock options as of December 31, 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	6.68
	Granted	-	$ 0.00	-
	Exercised	-	$ 0.00	-
	Cancelled	-	$ 0.00	-
	Outstanding at December 31, 2013	4,000,000	$ 0.20	5.68
	Exercisable at December 31, 2013	1,000,000	$ 0.20	5.68

WARRANTS

WARRANTS	12 Months Ended
WARRANTS	Dec. 31, 2013
Notes to Financial Statements	'
WARRANTS	'
	NOTE 10 – WARRANTS

	On November 15, 2012, the Company granted 500,000 stock warrants to a lender at $0.55 per share for terms of two years. The total fair value of these warrant at the date of grant was estimated to be $217,330 and was determined using the Black-Scholes option pricing model with an expected life of 2 years, a risk free interest rate of 0.28%, a dividend yield of 0% and expected volatility of 302%. During year ended December 31, 2012, $132,813 was recorded amortization of debt discount and included in interest expense.

	In September 2013, we closed on a $200,000 90-day bridge loan with two investors. The loans bear interest of 10%. Additionally each investor was granted 100,000 stock warrants to purchase stock at $1.00 per share for a period of one year valued at $56,792. An additional $100,000 note payable with the same terms and warrants was issued in October 2013.

	The following is a summary of the status of all of the Company’s stock warrants as of December 31, 2013 and changes during the period ended on that date:

		Number	Weighted-Average	Weighted-Average
		of Warrants	Exercise Price	Remaining Life (Years)
	Outstanding at January 1, 2013	500,000	$ 0.55	1.87
	Granted	300,000	$ 1.00	1
	Exercised	-	$ 0.00	-
	Cancelled	-	$ 0.00	-
	Outstanding at December 31, 2013	800,000	$ 0.72	1.54
	Exercisable at December 31, 2013	800,000	$ 0.72	1.54

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2013
Notes to Financial Statements	'
RELATED PARTY TRANSACTIONS	'
	NOTE 11 – RELATED PARTY TRANSACTIONS

	The Company settled all related party notes payable during the first quarter of 2013. See Notes Payable footnote.

	During the year ended December 31, 2013, the Company made the following purchases from entities considered related parties; $20,136 of capital expenditures, $6,304 of geological and geophysical expense, and $3,357 of consulting expense.

	On January 1, 2012, the Company entered into a consulting and rental agreement with an entity owned and controlled by an officer, director and shareholder. The consulting fees were fixed at $10,000 per month and rent up to $25,000 per month. The agreement automatically expired on July 1, 2013 unless the parties mutually agree to extend the term. During the year ended December 31, 2012, the Company recorded consulting fees of $60,000 and rent expense of $62,930. On July 1, 2012, the parties agreed to mutually terminate the agreement. The entity agreed to forgive $50,953 of accounts payable related to the agreement and it was recorded to additional paid in capital.

	On July 31, 2012, the Company purchased a vehicle from the CEO of the Company for $23,572 and allowed the Company up to one year to repay the loan with 0% interest. The loan was paid prior to December 31, 2012.

	On September 1, 2012, the Company entered into a three year employment agreement with its CEO. The annual salary for the first year is $120,000, then in the second year increases to $180,000 and in the third year it increases to $240,000.

	Additionally, the officer received 2,000,000 stock options. During the year ended December 31, 2013 and 2012, the Company recording executive compensation totaling $216,302 and $114,997, respectively.

	On September 1, 2012, the Company entered into a three year employment agreement with its CFO. The annual salary for the first year is $120,000, then in the second year increases to $180,000 and in the third year it increases to $240,000. Additionally, the officer received 2,000,000 stock options. During the year ended December 31, 2013 and 2012, the Company recording executive compensation totaling $214,997 and $114,997, respectively.

	As of the second year of the employment agreement, the CEO and CFO have deferred payment of approximately $5,000 per month of salary.

	During November 2012, the Company paid $6,196 to The Nahabedian Group for reimbursement of geophysical survey on potential future locations. The Nahabedian Group is an entity in which the CEO of the Company has an ownership interest. This amount was initially capitalized under exploration costs, since the Company followed full cost method. During the year ended December 31, 2012, the amount was reclassified as expense and is included in general and administrative expenses to account for change in accounting policy to successful efforts method.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2013
Subsequent Events [Abstract]	'
SUBSEQUENT EVENTS	'
	NOTE 12 – SUBSEQUENT EVENTS

	In January 2014, the Company issued 205,085 common stock shares for cash for payment to investors for funds received in December 2013. Also in January 2014, the Company issued 1,477,275 shares at a price of $0.55 per share. This included the conversion of $300,000 in previously issued bridge loans plus accrued interest and new equity capital of $505,000.

	In January 2014, the Company commenced drilling operations at Project Indian. Indian #1-15 was drilled and cased with Citadel paying 100% of the costs. The Company is now proceding with completion and thermal recovery operations to determine the commercial viability of the project. As of the date of this filing, the Company was waiting for the issuance of a steam injection permit from the DOGGR.

	In March 2014, the Company closed on a $500,000 bridge loan from two individuals. These notes have a 180 day term and bear interest of 10%. Additionally the investors received 500,000 warrants to purchase the Company’s stock at $1.00 per share for a term of two years.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
Principles of consolidation	'
	Principles of consolidation
	For the years ended December 31, 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 significant 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.
Fair value of financial instruments	'
	Fair value of financial instruments
	Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2013 and 2012. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, prepaid expenses and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.

	Level 1: The preferred inputs to valuation efforts are “quoted prices in active markets for identical assets or liabilities,” with the caveat that the reporting entity must have access to that market. Information at this level is based on direct observations of transactions involving the same assets and liabilities, not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade in active markets.

	Level 2: FASB acknowledged that active markets for identical assets and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. To deal with this shortage of direct data, the board provided a second level of inputs that can be applied in three situations.

	Level 3: If inputs from levels 1 and 2 are not available, FASB acknowledges that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as “unobservable,” and limits their use by saying they “shall be used to measure fair value to the extent that observable inputs are not available.” This category allows “for situations in which there is little, if any, market activity for the asset or liability at the measurement date”. Earlier in the standard, FASB explains that “observable inputs” are gathered from sources other than the reporting company and that they are expected to reflect assumptions made by market participants.
Fixed assets	'
	Fixed assets
	The Company records all property and equipment at cost less accumulated depreciation. Improvements are capitalized while repairs and maintenance costs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful life of the assets or the lease term, whichever is shorter. Leasehold improvements include the cost of the Company’s internal development and construction department. Depreciation periods are as follows:
Vehicles 3 years	'
	Vehicles 3 years

	The Company capitalizes the costs associated with the development of the Company’s website pursuant to ASC Topic 350. Other costs related to the maintenance of the website are expensed as incurred. Amortization is provided over the estimated useful lives of three years using the straight-line method for financial statement purposes. The Company has commenced amortization upon completion of the Company’s fully operational website.
Stock-based compensation	'
	Stock-based compensation
	The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.

	The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.
Earnings per share	'
	Earnings per share
	The Company follows ASC Topic 260 to account for the earnings per share. Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.
Oil and gas properties	'
	Oil and gas properties
	Effective, January 1, 2013, the Company changed its policy to successful efforts. The Company evaluated the impact on the prior periods and there were no material changes to the balance sheet as a result of the change in accounting policy. During the quarter ended December 31, 2012, the Company expensed $23,768 of geological and geophysical costs in anticipation of the change in accounting policy. Under the successful efforts method, oil and gas property costs are initially capitalized with the intent to establish commercially viable reserves. Expenditures to acquire mineral interests in oil and gas properties and to drill and equip exploratory wells are capitalized until the well is complete and the results have been evaluated. If, following the evaluation, the exploratory well has not found proved reserves, the previously capitalized costs are evaluated for derecognition or tested for impairment. Geological and geophysical costs and other exploration expenditures are expensed as incurred.

	The Company is required to make estimates and judgments about future events and circumstances regarding the future economic viability of extracting the underlying resources. Changes to project economics, resource quantities, expected production techniques, unsuccessful drilling, expired mineral leases, production costs and required capital expenditures are important factors when making this determination. To the extent a judgment is made, that the underlying reserves are not viable, the oil and gas property costs will be impaired and charged to net earnings.
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 December 31, 2013, the restricted cash totaled $45,000.
Debt discount	'
	Debt discount
	The Company records debt discount as a contra liability account and is presented net of the associated note payable. The discount was amortized over the life on the note payable using the straight line method because the straight line method approximates the effective interest method.
Revenue recognition	'
	Revenue recognition
	The Company recognizes oil and natural gas revenues from our interests in producing wells when production is delivered to, and title has transferred to, the purchaser and to the extent the selling price is reasonably determinable.
Asset retirement obligation	'
	NOTE 7 – ASSET RETIREMENT OBLIGATION

	The Company's ARO relates to future costs associated with the plugging and abandonment of oil and natural gas wells, removal of equipment facilities from leased acreage and land restoration in accordance with applicable local, state and federal laws. The discounted fair value of an ARO liability is required to be recognized in the period in which it is incurred, with the associated asset retirement cost capitalized as part of the carrying cost of the oil and natural gas asset. In periods subsequent to the initial measurement of the ARO, the Company must recognize period-to-period changes in the liability resulting from the passage of time and revisions to either the timing or the amount of the original estimate of undiscounted cash flows. Increases in the ARO liability due to the passage of time impact net earnings as accretion expense. The related capital cost, including revisions thereto, is charged to expense through DD&A—oil and natural gas production over the life of the oil and natural gas field.

	In October 2013, the Company announced its first oil production on the Yowlumne 2-26 well and therefore an asset retirement obligation must be booked to on this well as follows.

		2013
	Beginning asset retirement obligation	$	—
	Liabilities acquired from property acquisition		31,407
	Accretion expense		66
	Ending asset retirement obligation	$	31,472

Income taxes	'
	Income taxes
	The Company follows ASC Topic 740 for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change.

	Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.

	The Company applies a more-likely-than-not recognition threshold for all tax uncertainties. ASC Topic 740 only allows the recognition of those tax benefits that have a greater than fifty percent likelihood of being sustained upon examination by the taxing authorities. As of December 31, 2013 and 2012, the Company reviewed its tax positions and determined there were no outstanding, or retroactive tax positions with less than a 50% likelihood of being sustained upon examination by the taxing authorities, therefore this standard has not had a material effect on the Company.

	The Company does not anticipate any significant changes to its total unrecognized tax benefits within the next 12 months.

	The Company classifies tax-related penalties and net interest as income tax expense. As of December 31, 2013 and 2012, $1,600 and $1,600 of income tax expense has been incurred.
Recent pronouncements	'
	Recent pronouncements
	The Company has evaluated the recent accounting pronouncements through March 2014 and believes that none of them will have a material effect on the company’s financial statements.

	In December 2011, the Financial Accounting Standards Board (“FASB”) issued guidance in the Accounting Standards Update (“ASU”) 2011-11 “Balance Sheet: Disclosures about Offsetting Assets and Liabilities”, which was intended to result in convergence between (“GAAP”) and International Financial Reporting Standards (“IFRS”). Requirements for offsetting (netting) assets and liabilities are presented in the statements of financial position. The guidance requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The disclosure affects all entities with financial instruments and derivatives that are either offset on the balance sheet in accordance with Accounting Standards Codification (“ASC”), ASC 210-20-45 or ASC 815-10-45, or subject to a master netting arrangement, irrespective of whether they are offset on the balance sheet. The Company adopted this guidance effective January 1, 2013 with no effect on financial condition, results of operations or cash flows.

	In February 2013, the FASB issued ASU 2013-02 related to reporting amounts reclassified out of accumulated other comprehensive income ("AOCI"). Under this ASU amendment, an entity is required to provide information about the amounts reclassified out of AOCI by component. In addition, an entity is required to present either on the face of the financial statements or in the notes significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. We adopted this amendment during 2013 with no effect on our financial condition, results of operations or cash flows.

	In July 2013, the FASB issued ASU 2013-11 providing updated guidance on whether an uncertain tax position should be presented as a reduction to a deferred tax asset or as a separate liability. This guidance seeks to address diversity in practice. This guidance is effective for interim and annual periods beginning after December 15, 2013. The adoption of this guidance is not expected to have a material impact on the Company’s financial condition, results of operations or cash flows.

	Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to be significant to the Company’s financial position, results of operations or cash flows.

OIL_AND_GAS_PROPERTIES_Tables

OIL AND GAS PROPERTIES (Tables)	12 Months Ended
OIL AND GAS PROPERTIES (Tables)	Dec. 31, 2013
Extractive Industries [Abstract]	'
The costs capitalized in oil and gas properties	'
		2013		2012
	Exploration	$ 1,373,363		$ 159,833
The following table reflects the net changes in capitalized exploratory	'
		2013
	Beginning balance at January 1	$	159,833
	Additions to capitalized exploratory well costs pending the determination of proved reserves		1,182,189
	Reclassifications to wells, facilities and equipment based on the determination of proved reserves		—
	Capitalized exploratory well costs charged to expense		—
	Ending balance at December 31	$	1,342,022

FIXED_ASSETS_Tables

FIXED ASSETS (Tables)	12 Months Ended
FIXED ASSETS (Tables)	Dec. 31, 2013
Notes to Financial Statements	'
Fixed assets as of December 31, 2013 and 2012	'
		2013			2012
	Vehicle	$	23,572		$	23,572
	Website		1,375			1,375
	Less: Accumulated depreciation		(12,314	)		(3,999	)
		$	12,633		$	20,948

NOTES_PAYABLE_Tables

NOTES PAYABLE (Tables)	12 Months Ended
NOTES PAYABLE (Tables)	Dec. 31, 2013
Notes to Financial Statements	'
Notes payable consists of the following at:	'
		31-Dec-13		31-Dec-12
	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
	Note payable to an individual, line of credit to borrow up to $100,000, unsecured, 10% interest, due upon demand		—		55,298
	Three notes payable to individuals, 10% interest, due January 1, 2014		300,000		—
	Three notes payable to an entity for the financing of insurance premiums, unsecured; 14% interest, due December 2013; 14% interest, due February 2014; 11% interest, due August 2014		14,134		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 300,000 warrants issued with notes payable		—		(84,517	)

		$	314,134	$	257,517

ASSET_RETIREMENT_OBLIGATION_Ta

ASSET RETIREMENT OBLIGATION (Tables)	12 Months Ended
ASSET RETIREMENT OBLIGATION (Tables)	Dec. 31, 2013
Notes to Financial Statements	'
Company announced its first oil production	'
		2013
	Beginning asset retirement obligation	$	—
	Liabilities acquired from property acquisition		31,407
	Accretion expense		66
	Ending asset retirement obligation	$	31,472

STOCK_OPTION_PLAN_Tables

STOCK OPTION PLAN (Tables)	12 Months Ended
STOCK OPTION PLAN (Tables)	Dec. 31, 2013
Notes to Financial Statements	'
summary of the status of all of the Company's stock options	'
		Number	Weighted-Average	Weighted-Average
		of Options	Exercise Price	Remaining Life (Years)
	Outstanding at January 1, 2013	4,000,000	$ 0.20	6.68
	Granted	-	$ 0.00	-
	Exercised	-	$ 0.00	-
	Cancelled	-	$ 0.00	-
	Outstanding at December 31, 2013	4,000,000	$ 0.20	5.68
	Exercisable at December 31, 2013	1,000,000	$ 0.20	5.68

WARRANTS_Tables

WARRANTS (Tables)	12 Months Ended
WARRANTS (Tables)	Dec. 31, 2013
Notes to Financial Statements	'
Summary of the status of all of the Companybs stock warrants	'
		Number	Weighted-Average	Weighted-Average
		of Warrants	Exercise Price	Remaining Life (Years)
	Outstanding at January 1, 2013	500,000	$ 0.55	1.87
	Granted	300,000	$ 1.00	1
	Exercised	-	$ 0.00	-
	Cancelled	-	$ 0.00	-
	Outstanding at December 31, 2013	800,000	$ 0.72	1.54
	Exercisable at December 31, 2013	800,000	$ 0.72	1.54

GOING_CONCERN_Details_Narrativ

GOING CONCERN (Details Narrative) (USD $)	86 Months Ended
GOING CONCERN (Details Narrative) (USD $)	Dec. 31, 2013
Notes to Financial Statements	'
Incurred accumulated net loss	($2,238,537)

PREPAID_INSURANCE_Details_Narr

PREPAID INSURANCE (Details Narrative) (USD $)	12 Months Ended
PREPAID INSURANCE (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Notes to Financial Statements	'	'
Prepaid insurance total	$36,589	'
Prepaid insurance total	'	9,283
Insurance expense	47,681	'
Insurance expense	'	$21,871

OIL_AND_GAS_PROPERTIES_Details

OIL AND GAS PROPERTIES (Details Narrative) (USD $)	Dec. 31, 2013	Feb. 22, 2012
Extractive Industries [Abstract]	'	'
Interest in the property disclosed above in exchange	'	$350,000
Gain on the sale of the partial interest total	'	267,856
Expensed as consulting expense	$13,290	'

FIXED_ASSETS_Details_Narrative

FIXED ASSETS (Details Narrative) (USD $)	12 Months Ended
FIXED ASSETS (Details Narrative) (USD $)	Dec. 31, 2013
Notes to Financial Statements	'
Depreciation expense	$8,315

NOTES_PAYABLE_Details_Narrativ

NOTES PAYABLE (Details Narrative) (USD $)	3 Months Ended	12 Months Ended
NOTES PAYABLE (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012
Notes to Financial Statements	'	'	'
Interest expense	'	$14,950	'
Interest expense	'	'	10,744
Related party notes payable	34,990	'	'
Reduce balances due under notes payable	'	'	$122,700

STOCKHOLDERS_EQUITY_DEFICIT_De

STOCKHOLDERS' EQUITY (DEFICIT) (Details Narrative) (USD $)

12 Months Ended

Dec. 31, 2009

Dec. 31, 2008

Dec. 31, 2007

Dec. 31, 2006

Dec. 31, 2013

Sep. 30, 2013

Feb. 28, 2013

Nov. 30, 2012

Sep. 30, 2012

Jul. 31, 2012

31-May-12

Jan. 31, 2012

Oct. 12, 2011

20-May-11

3-May-11

Notes to Financial Statements

Authorized to issue shares

100,000,000

Par value

$0.00

Contributed capital

$400

Contributed capital

40,800

Contributed capital

12,000

Received draws totaling

10,000

Contributed capital

43,093

Issued shares to an individual

14,000,000

Former officers and directors agreed to cancel shares of common stock

7,696,000

Sold shares

62,500

Common stock for cash

50,000

Common stock shares issued

20,000

Remaining shares

42,500

Common stock shares issued

100,000

Services totaling

80,000

Received donated capital

980

Common stock shares issued

42,500

Investor for cash received

34,000

Reduced the entire balance of stock payable

Accounts payable totaling

50,953

Agreed to issue total shares

250,500

Consulting services rendered totaling

48,430

Issued stock options to executives

4,000,000

Fair value of the stock options totaled

149,994

Common stock share issued

2,000,000

Investor for cash

80,000

Issued warrants to a lender in conjunction with a promissory note

500,000

Warrants totaled

217,330

Issued shares of restricted common stock

4,186,000

Cash consideration

1,423,240

Per Share

$0.34

Less issuance cost

12,531

Issued shares of restricted common stock

912,640

Loans and interest in the amount

310,298

Fair value of the shares

332,798

Additional interest expense

22,500

Issued shares of restricted common stock

320,000

Legal and marketing services

116,000

Closed on a bridge loan from two individuals

200,000

Closed an additional brige loan from one investor

100,000

Received warrants to purchase

100,000

Per Share

Total value

$105,943

Common stock share issued

918,183

STOCK_OPTION_PLAN_Details_Narr

STOCK OPTION PLAN (Details Narrative) (USD $)	12 Months Ended
STOCK OPTION PLAN (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Sep. 04, 2012	Sep. 01, 2012
Notes to Financial Statements	'	'	'	'
Common stock shares issued	'	'	'	10,000,000
Common stock shares issued	'	'	4,000,000	'
Per Share	'	'	$0.20	'
Total stock options vested	'	'	1,000,000	'
Total fair value of these options	'	'	$599,974	'
Stock based compensation expense	149,994	'	'	'
Stock based compensation expense	'	$149,994	'	'

WARRANTS_Details_Narrative

WARRANTS (Details Narrative) (USD $)	12 Months Ended
WARRANTS (Details Narrative) (USD $)	Dec. 31, 2012	Sep. 30, 2013	Nov. 15, 2012
Notes to Financial Statements	'	'	'
Stock warrants	'	'	500,000
Per Share	'	'	$0.55
Total fair value	'	'	$217,330
Amortization of debt discount and included in interest expense	132,813	'	'
Bridge loan with two investors	'	200,000	'
Stock warrants to purchase	'	100,000	'
Per share	'	$1	'
Valued at	'	$56,792	'
Additional note payable	'	$100,000	'

RELATED_PARTY_TRANSACTIONS_Det

RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	12 Months Ended
RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Nov. 30, 2012	Sep. 01, 2012	Jul. 31, 2012	Jul. 01, 2012	Jan. 01, 2012
Notes to Financial Statements	'	'	'	'	'	'	'
Entities considered related parties	$20,136	'	'	'	'	'	'
Capital expenditures	6,304	'	'	'	'	'	'
Consulting expense	3,357	'	'	'	'	'	'
Consulting fees were fixed per month	'	'	'	'	'	'	$10,000
Rent per month	'	'	'	'	'	'	25,000
Consulting fees	'	60,000	'	'	'	'	'
Rent expense	'	62,930	'	'	'	'	'
Accounts payable	'	'	'	'	'	50,953	'
Purchased a vehicle from the CEO	'	'	'	'	23,572	'	'
Annual salary for the first year	'	'	'	120,000	120,000	'	'
Second year increases	'	'	'	'	180,000	'	'
Third year it increases	'	'	'	'	240,000	'	'
Officer received stock options	2,000,000	'	'	'	'	'	'
Executive compensation totaling	216,302	114,997	'	'	'	'	'
Second year increases	'	'	'	180,000	'	'	'
Third year it increases	'	'	'	240,000	'	'	'
Officer received stock options	'	'	'	2,000,000	'	'	'
Executive compensation totaling	214,997	'	'	'	'	'	'
Executive compensation totaling	'	114,997	'	'	'	'	'
Paid to The Nahabedian Group for reimbursement	'	'	$6,196	'	'	'	'

SUBSEQUENT_EVENTS_Details_Narr

SUBSEQUENT EVENTS (Details Narrative) (USD $)	Mar. 31, 2014	Jan. 31, 2014
Subsequent Events [Abstract]	'	'
Common stock shares issued	'	205,085
Shares issued	'	1,477,275
Per share	'	$0.55
Previously issued bridge loans	'	$300,000
Accrued interest and new equity capital	'	505,000
Bridge loan from two individuals	500,000	'
Investors received warrants	$500,000	'
Per share	$1	'