Citadel Exploration (COIL) 10-Q 15 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	13-May-14
Document And Entity Information	'	'
Entity Registrant Name	'Citadel Exploration, Inc.	'
Entity Central Index Key	'0001482075	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
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	'	29,714,000
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

Balance_Sheets_Unaudited

Balance Sheets (Unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets:	'	'
Cash	$350,000	$402,649
Other receivable	21,600	40,660
Prepaid expenses	83,073	41,589
Product inventory	4,881	4,881
Total current assets	459,554	489,779
Deposits	4,000	4,000
Restricted cash	45,000	45,000
Oil and gas properties	1,787,981	1,373,363
Fixed assets, net	27,659	12,633
Total assets	2,324,194	1,924,775
Current liabilities:	'	'
Accounts payable and accrued liabilities	424,025	435,332
Accrued interest payable	'	8,316
Notes payable, net	406,348	314,134
Total current liabilities	830,373	757,782
Asset retirement obligation	48,923	31,407
Total liabilities	879,296	789,189
Stockholders' equity (deficit):	'	'
Common stock, $0.001 par value, 100,000,000 shares authorized, 29,714,xxx and 28,949,823 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively	29,714	28,950
Additional paid-in capital	3,904,459	3,332,982
Deficit accumulated during development stage	-2,489,275	-2,226,346
Total stockholders' equity (deficit)	1,444,898	1,135,586
Total liabilities and stockholders' equity (deficit)	$2,324,194	$1,924,775

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
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	29,714	29,714

Statements_of_Operations_Unaud

Statements of Operations (Unaudited) (USD $)	3 Months Ended		89 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Income Statement [Abstract]	'	'	'
Revenue	'	'	$9,223
Operating expenses:	'	'	'
Lease operating expense	27,882	'	113,217
Geological and geophysical expense	2,100	'	8,404
General and administrative	96,472	55,283	658,508
Depreciation, amortization and accretion	3,247	2,079	15,627
Professional fees	52,439	150,360	811,267
Executive compensation	119,482	97,498	825,666
Gain on sale of interest in oil & gas properties	'	'	-267,856
Gain on settlement of accounts payable	'	'	-6,161
Total operating expenses	301,622	305,220	2,158,672
Other expenses:	'	'	'
Gain - other	8,316	'	8,316
Gain - note payable settlement	33,545	'	33,545
Interest expense	-3,168	-112,169	-372,658
Total other expenses	38,693	-112,169	-330,797
Net loss before provision for income taxes	-262,929	-417,389	-2,489,275
Provision for income taxes	'	'	9,029
Net loss	($296,474)	($417,389)	($2,489,275)
Weighted average number of common shares outstanding - basic and diluted	29,714,000	25,813,834	'
Net loss per share - basic and diluted	($0.01)	($0.02)	'

Statements_of_Cash_Flows_Unaud

Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended		89 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES	'	'	'
Net loss	($262,929)	($417,389)	($2,489,275)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'	'
Depreciation, amortization and accretion	3,247	2,079	15,627
Amortization of prepaid stock compensation	'	'	80,000
Amortization of debt discount	2,452	84,517	313,530
Gain on sale of interest in oil & gas properties	'	'	-267,856
Non cash interest expense	'	22,500	22,500
Gain on settlement of accounts payable	'	'	-6,161
Gain - other	-8,316	'	-8,316
Gain on settlement of note payable	-33,545	'	-33,545
Stock based compensation expense	37,498	37,498	337,486
Shares issued for consulting	110,775	116,000	275,205
Changes in operating assets and liabilities:	'	'	'
Decrease (increase) in other receivables	19,060	-37,009	-21,600
Decrease (increase) in prepaid expense	7,080	-8,367	30,666
Increase in product inventory	'	'	-4,881
Increase in deposits	'	-3,150	-4,000
Increase (decrease) in accounts payable and accrued liabilities	-3,807	50,494	467,233
Decrease in accrued interest payable	'	-6,508	8,316
Net cash used in operating activities	-128,488	-159,335	-1,285,069
CASH FLOWS FROM INVESTING ACTIVITIES	'	'	'
Purchase oil and gas properties	-397,210	-26,741	-1,821,376
Proceeds from sale of interest in oil & gas properties	'	'	350,000
Purchase of fixed assets	-18,165	'	-43,112
Restricted cash	'	'	-45,000
Net cash used in provided by investing activities	-415,374	-26,741	-1,559,488
CASH FLOWS FROM FINANCING ACTIVITIES	'	'	'
Member contributions	'	'	105,523
Member distribution	'	'	10,000
Proceeds from sale of common stock, net of costs	-654	1,410,711	2,035,771
Proceeds from notes payable	500,000	'	1,318,274
Repayments for notes payable	-8,134	-31,737	-275,014
Net cash provided by financing activities	491,212	1,378,974	3,194,555
NET CHANGE IN CASH	-52,649	1,192,898	350,000
CASH AT BEGINNING OF PERIOD	402,649	112,580	'
CASH AT END OF PERIOD	350,000	1,305,478	350,000
NON-CASH INVESTING AND FINANCING ACTIVITIES	'	'	'
Liabilities assumed with the acquisition of Citadel Exploration, LLC	'	'	29,265
Asset Retirement Obligation	17,408	'	48,749
Shares issued for prepaid stock compensation	'	'	80,000
Financing of prepaid insurance	45,000	41,250	124,869
Issuance of stock for prepaid rent	'	'	'
Forgiveness of debt due to related party	'	'	50,953
Issuance of common stock for settlement of notes payable and accrued interest	$307,500	$310,298	$617,799

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2014
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, 2013 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 months ended March 31, 2014 and 2013, 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.
	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.
	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.
	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.
	Recent pronouncements

GOING_CONCERN

GOING CONCERN	3 Months Ended
	Mar. 31, 2014
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 March 31, 2014 of ($2,522,820). 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	3 Months Ended
	Mar. 31, 2014
Extractive Industries [Abstract]	'
OIL AND GAS PROPERTIES	'
	NOTE 3 – OIL AND GAS PROPERTIES
	The costs capitalized in oil and gas properties as of March 31, 2014 and December 31, 2013 are as follows:
					2014		2013
		Exploration			$	1,787,981	$	1,373,363
	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 March 31, 2014:
			2014
	Beginning balance at January 1, 2014		$	1,373,363
	Additions to capitalized exploratory well costs pending the determination of proved reserves			397,101
	Asset retirement obligation			17,517
	Reclassifications to wells, facilities and equipment based on the determination of proved reserves			—
	Capitalized exploratory well costs charged to expense			—
	Ending balance at March 31		$	1,787,981
	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. Drilling commenced on this property in January 2014. 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.
	On May 5, 2104 the Company received its steam injection permit from DOGGR, and expects steam injection to begin in the month of May.
	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.
	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. As of year-end 2013, the well had produced approximately 50 barrels of oil which were stored in a tank and valued at net realizable value on the balance sheet as product inventory.

NOTES_PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
NOTES PAYABLE	'
	NOTE 4 – NOTES PAYABLE
	Notes payable consists of the following at:
		March 31,			31-Dec-13
		2014
	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		51,000			14,134
	Two notes payable to individuals, 10% interest, due September 30, 2014		500,000			—
	Debt discount for 500,000 warrants issued with notes payable		(144,651	)		—
		$	406,348		$	314,134
	In the first quarter of 2014. The $300,000 note payable was settled for 559,092 shares at $33,545, and the difference was a gain on note payable.
	Interest expense for the quarter ended March 31, 2014 was $3,168. Of that amount, $715 relates to notes payable and insurance financing and $2,452 is amortization of debt discount. Interest expense for the quarter ended March 31, 2013 was $112,169.
	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.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
STOCKHOLDERS' EQUITY	'
	NOTE 5 – STOCKHOLDERS’ EQUITY
	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 $1,423,240 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 bridge 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 $93,750 in total.
	In December 2013, the Company approved the issuance of 918,183 common stock shares for $505,000 cash for payment to investors whose funds were received in December 2013. The shares were issued during January 2014.
	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.

STOCK_OPTION_PLAN

STOCK OPTION PLAN	3 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
STOCK OPTION PLAN	'
	NOTE 6 – 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 three months ended March 31, 2014, $x 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 March 31, 2014 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	$	0.2		5.68
		Granted		—	$	0		—
		Exercised		—	$	0		—
		Cancelled		—	$	0		—
		Outstanding at March 31, 2014		4,000,000	$	0.2		5.43
		Exercisable at March 31, 2014		1,000,000	$	0.2		5.43

WARRANTS

WARRANTS	3 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
WARRANTS	'
	NOTE 7 – 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, the Company 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 $56,283. An additional $100,000 note payable with the same terms and warrants which were valued at $37,467 was issued in October 2013.
	In March 2014, the Company closed on a $500,000 180-day bridge loan with two investors. The loans bear interest of 10%. Additionally, the investors were granted a total of 500,000 stock warrants to purchase stock at $1.00 per share for a period of two years valued at $144,652.
	The following is a summary of the status of all of the Company’s stock warrants as of March 31, 2014 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, 2014	800,000	$     0.72	0.86
	Granted	500,000	$     1.00	1.99
	Exercised	-	$     0.00	-
	Cancelled	-	$     0.00	-
	Outstanding at March 31, 2014	1,300,000	$     0.83	1.14
	Exercisable at March 31, 2014	800,000	$     0.72	0.61

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2014
Subsequent Events [Abstract]	'
SUBSEQUENT EVENTS	'
	NOTE 8 – SUBSEQUENT EVENTS
	On May 5, 2014 the company received its steam injection permit for Project Indian from the Division of Oil & Gas and Geothermal (DOGGR).

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2014
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, 2013 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 months ended March 31, 2014 and 2013, 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.
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.
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.
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.
Recent pronouncements	'
	Recent pronouncements

OIL_AND_GAS_PROPERTIES_Tables

OIL AND GAS PROPERTIES (Tables)	3 Months Ended
	Mar. 31, 2014
Extractive Industries [Abstract]	'
Costs capitalized in oil and gas	'
					2014		2013
		Exploration			$	1,787,981	$	1,373,363
The following table reflects the net changes in capitalized exploratory	'
			2014
	Beginning balance at January 1, 2014		$	1,373,363
	Additions to capitalized exploratory well costs pending the determination of proved reserves			397,101
	Asset retirement obligation			17,517
	Reclassifications to wells, facilities and equipment based on the determination of proved reserves			—
	Capitalized exploratory well costs charged to expense			—
	Ending balance at March 31		$	1,787,981

NOTES_PAYABLE_Tables

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
Notes payable consists of the following at	'
		March 31,			31-Dec-13
		2014
	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		51,000			14,134
	Two notes payable to individuals, 10% interest, due September 30, 2014		500,000			—
	Debt discount for 500,000 warrants issued with notes payable		(144,651	)		—
		$	406,348		$	314,134

STOCK_OPTION_PLAN_Tables

STOCK OPTION PLAN (Tables)	3 Months Ended
	Mar. 31, 2014
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	$	0.2		5.68
		Granted		—	$	0		—
		Exercised		—	$	0		—
		Cancelled		—	$	0		—
		Outstanding at March 31, 2014		4,000,000	$	0.2		5.43
		Exercisable at March 31, 2014		1,000,000	$	0.2		5.43

GOING_CONCERN_Details_Narrativ

GOING CONCERN (Details Narrative) (USD $)	89 Months Ended
	Mar. 31, 2014
Notes to Financial Statements	'
Accumulated net losses	($2,522,820)

OIL_AND_GAS_PROPERTIES_Details

OIL AND GAS PROPERTIES (Details Narrative) (USD $)	Feb. 22, 2012
Extractive Industries [Abstract]	'
Joint venture partner	$350,000
Gain on the sale of the partial interest total	$267,856

NOTES_PAYABLE_Details_Narrativ

NOTES PAYABLE (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2014
Notes to Financial Statements	'	'	'
Interest expense	$216,748	'	'
Relates to notes payable	15,980	'	'
Amortization of debt discount	200,768	'	'
Interest expense	'	10,744	'
Bridge loan from two individuals	'	'	500,000
Warrants to purchase	'	'	500,000
Per share	'	'	$1
Related party notes payable	'	34,990	'
Reduce balances due under notes payable	'	$122,700	'

STOCKHOLDERS_EQUITY_Details_Na

STOCKHOLDERS' EQUITY (Details Narrative) (USD $)	Jan. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Feb. 28, 2013
Notes to Financial Statements	'	'	'	'
Authorized to issue shares	'	'	'	100,000,000
Par value	'	'	'	$0.00
Restricted common stock	'	'	'	4,186,000
Cash consideration	'	'	'	$1,423,240
Per share	'	'	'	$0.34
Less issuance cost	'	'	'	12,531
Restricted common stock	'	'	'	912,640
Conversion of loans and interest in the amount	'	'	'	310,298
Fair value of the shares at the date of settlement	'	'	'	332,798
Additional interest expense	'	'	'	22,500
Restricted common stock	'	'	'	320,000
Various parties for accounting	'	'	'	116,000
Bridge loan from two individuals	'	'	200,000	'
Bridge loan from one investor	'	'	100,000	'
Warrants to purchase	'	'	100,000	'
Per share	'	'	$1	'
For a term of one year valued at	'	'	93,750	'
Approved the issuance of common stock shares	'	918,183	'	'
Payment to investors whose funds were received	'	505,000	'	'
Common stock shares issued	205,085	'	'	'
Common stock shares issued	1,477,275	'	'	'
Per sahre	$0.55	'	'	'
Bridge loans plus accrued interest	300,000	'	'	'
New equity capital	$505,000	'	'	'

STOCK_OPTION_PLAN_Details_Narr

STOCK OPTION PLAN (Details Narrative) (USD $)	Sep. 04, 2012	Sep. 01, 2012
Notes to Financial Statements	'	'
Common stock shares issued	'	10,000,000
Granted stock options	4,000,000	'
Per share	$0.20	'
Total stock options	$1,000,000	'
Total fair value of these options	$599,974	'