Citadel Exploration (COIL) 10-Q 20 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	20-May-15
Document And Entity Information
Entity Registrant Name	Citadel Exploration, Inc.
Entity Central Index Key	1482075
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
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		32,814,000
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

CONSOLIDATED_BALANCE_SHEETS_Un

CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash	$45,380	$270,298
Other receivable	25,782	1,209
Prepaid expenses	21,598	35,886
Product inventory	4,881	4,881
Total current assets	97,641	312,274
Deposits	9,900	4,900
Restricted cash	45,000	45,000
Oil and gas properties	2,215,132	2,042,054
Fixed assets, net	22,092	25,927
Total assets	2,389,765	2,430,155
Current liabilities:
Accounts payable and accrued payables	613,837	604,558
Contingent Liability	87,000
Accrued interest payable	52,958
Notes payable, net	500,000	592,533
Derivative liability		13,308
Total current liabilities	1,253,795	1,210,399
Asset retirement obligation	48,923	48,923
Production payment liability	300,000	300,000
Total liabilities	1,602,718	1,559,322
Stockholders' equity
Common stock, $0.001 par value, 100,000,000 shares authorized, 32,814,000 and 31,389,000 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively	32,814	31,389
Additional paid-in capital	4,948,815	4,673,497
Accumulated deficit	-4,194,581	-3,836,303
Share subscription payable		2,250
Total stockholders' equity (deficit)	787,048	870,833
Total liabilities and stockholders' equity (deficit)	$2,389,765	$2,430,155

CONSOLIDATED_BALANCE_SHEETS_Un1

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
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	32,814,000	31,389,000
Common stock, outstanding	32,814,000	31,389,000

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Revenue	$20,028
Operating expenses:
Lease operating expense	11,658	27,882
Geological and geophysical expense		2,100
General and administrative	55,887	96,472
Depreciation, amortization and accretion	3,836	3,247
Professional fees	11,880	52,439
Executive compensation	162,088	119,482
Total operating expenses	245,348	301,622
Other expenses:
Gain - other		8,316
Loss - Contingency	-87,000
Loss on note payable settlement	-26,080	33,545
Interest expense	-19,877	-3,168
Total other expenses	-132,957	38,693
Net loss before provision for income taxes	-358,277	-262,929
Provision for income taxes
Net loss	($358,277)	($262,929)
Weighted average number of common shares outstanding - basic and diluted	36,629,833	29,714,000
Net loss per share - basic and diluted	($0.01)	($0.01)

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	($358,277)	($262,929)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and accretion	3,836	3,247
Amortization of debt discount	5,217	2,450
Gain on settlement of note payable	26,080	-33,545
Stock based compensation expense	37,498	37,498
Shares issued for consulting		110,775
Loss - Contingency	-87,000
Gain - other		8,316
Changes in operating assets and liabilities:
Decrease (Increase) in other receivable	-24,575	19,060
Decrease in prepaid expense	14,287	7,079
Increase in deposits	-5,000
Increase in accounts payable and accrued payables	9,277	-3,807
Increase in accrued interest payable	52,959
Net cash used in operating activities	-151,698	-128,488
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase oil and gas properties	-173,076	-397,210
Purchase of fixed assets		-18,165
Net cash used in investing activities	-173,076	-415,375
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock, net of costs	107,836	-652
Proceeds from notes payable		500,000
Repayments of notes payable	-7,980	-8,134
Net cash provided by (used in) financing activities	99,856	491,214
NET CHANGE IN CASH	-224,918	-52,649
CASH AT BEGINNING OF YEAR	270,298	402,649
CASH AT END OF YEAR	45,380	350,000
SUPPLEMENTAL INFORMATION:
Interest paid	-435	429
Taxes Paid
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Financing of prepaid insurance		45,000
Issuance of common stock for settlement of notes payable and accrued interest	$102,164	$307,501

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2015
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
	The consolidated condensed 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.
	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
	The Company has evaluated the recent accounting pronouncements through May 2015 and believes that none of them will have a material effect on the company’s financial statements.

GOING_CONCERN

GOING CONCERN	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
GOING CONCERN	NOTE 2 – GOING CONCERN
	The accompanying consolidated condensed 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 has just begun to generate revenue however this revenue is not enough to sustain the business without additional capital. 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, 2015 of ($4,194,581). 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 condensed 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, 2015
Extractive Industries [Abstract]
OIL AND GAS PROPERTIES	NOTE 3 – OIL AND GAS PROPERTIES
	The costs recorded in oil and gas properties as of March 31, 2015 and December 31, 2014 are as follows:
		2015		2014
	Exploration	$      2,215,132		$     2,042,054
	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 as of March 31, 2014:
		2015
	Beginning balance at January 1, 2015 (excluding asset retirement obligation)	$	1,993,305
	Additions to capitalized exploratory well costs pending the determination of proved reserves		173,077
	Asset retirement obligation		48,750
	Ending balance at March 31, 2015	$	2,215,132
	Project Indian
	Project Indian is located in the Bitterwater sub-basin of the Salinas Basin, north of the giant San Ardo Field. Citadel currently owns a 100% working interest at Project Indian in July of 2014 Citadel ended its prior joint venture with Sojitz Energy Ventures. There is a 20% royalty on the property owned by Vintage Petroleum, a wholly owned subsidiary of Occidental Petroleum Inc. In November of 2014 Occidental Petroleum Inc. spun off its California assets into a new public company called California Resources Corporation, which is listed on the New York Stock Exchange under the ticker CRC. CRC is now the mineral owner at Project Indian.
	In January of 2014, Citadel drilled and completed the first well at Project Indian, the Indian #1-15, and conducted a successful steam cycle in June of 2014. The Indian #1-15 then produced 3 to 7 barrels per day over several weeks before production halted because the well was shut-in by an order of the Superior Court of the State of California-County of Monterey entitled Center for Biological Diversity v. San Benito County Case no. M123956 (hereinafter the “Case”).
	In the Case, the Center for Biological Diversity, a non-governmental entity, petitioned the Court over the approval of Project Indian by the County of San Benito on a unanimous, 5-0 vote. Specifically, it argued that Project Indian required an Environmental Impact Report and not a Mitigated Negative Declaration which was the standard of environmental due diligence required by the County before its unanimous approval of the Project. The Court approved the petition in a judgment entered on September 4, 2014, and ruled that Citadel was required to obtain an environmental impact report before commencing further at Project Indian .
	Then, on November 4, 2014 Measure J was passed by a majority of participating, registered voters in the County of San Benito. Measure J bans hydraulic fracturing and other stimulation techniques defined as “high intensity petroleum operations” by the Measure, including cyclic steam injection. Citadel believes the passing of Measure J constitutes a regulatory taking of property and is preempted by the State of California. At this time there is no certainty that we will be able to develop the Indian Oil Field.
	Per ASC 932, these wells qualify as exploratory wells and review of the capitalized costs incurred to prove up reserves must be evaluated in the period of one year after the completion of the drilling date.
	Yowlumne
	In May 2013, we leased approximately 2,800 acres from AERA Energy, LLC (“Aera”). 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 a 20% royalty to Aera. In August of 2013, the Company entered into an agreement to sell 55% of the interest in the Yowlumne lease, recouping approximately 85% of its cost, while retaining a 25% interest in the lease and operatorship. In July of 2014 the Company ended its joint venture with Sojitz Energy Ventures retaining Sojitz’s 55% interest in the Yowlumne lease, therefore increasing Citadel’s ownership to 75% in the Yowlumne lease.
	Additionally, as part of this transaction, the Company retained 100% interest in the Yowlumne #2-26 well, and the 160 acres surrounding the well bore. The Yowlumne #2-26 was first drilled in 2008 under supervision of Citadel CEO, Armen Nahabedian, during his previous tenure with his family’s oil company. Although the well tested oil at that time, the well was left idle for 5 years as lease issues prevented operations on the well until the appropriate curative measures could be taken.
	In December of 2014, Citadel began a work-over on the Yowlumne #2-26 well including installation of a new pump in February of 2015. The well has been producing approximately 20- 25 barrels per day (32 degree API quality) since the beginning of March. Citadel is in the final stages of the CEQA process to permit two additional exploration wells on the Yowlumne acreage and expects to receive those drilling permits in the second quarter of 2015, with drilling to commence in the third quarter of 2015. Both of these exploration wells will be targeting the Stephens Sands at a depth of 12,000 to 15,000 feet. Citadel currently has a 75% working interest in these exploration prospects and is the operator.

RESTRICTED_CASH

RESTRICTED CASH	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
RESTRICTED CASH	NOTE 4 – RESTRICTED CASH
	Restricted cash consists of two bonds totaling $45,000. The bonds are required in the normal course of business in the oil and  gas industry. The two bonds totaling $45,000 were purchased in November 2013. The bonds will not be released until after the Indian #1-15 and the Yowlumne #2-26 wells  are properly abandoned, and the property has been restored to its original condition.

NOTES_PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
NOTES PAYABLE	NOTE 5 – NOTES PAYABLE
	Notes payable consists of the following at:
		March		December
		31, 2015		31, 2014
	Two notes payable to investors, unsecured, 10% interest; due October 30, 2014	$	$      500,000	$	500,000
	Promissory note to an entity; 10% interest, due December 2015		—		100,000
	Debt discount for 25,000 shares issued relating to note payable		—		-1,930
	Debt discount for derivative liability embedded in note payable		—		-13,308
		$	500,000	$	592,533
	During the quarter ended March 31, 2015, the Company settled the $100,000 note payable with 681,100 shares valued at $102,164. Interest expense on the note payable was $2,164.
	Interest expense for the quarter ended March 31, 2015 was $19,877. Interest expense for the quarter ended March 31, 2014 was $3,168. The $500,000 of notes, were due on October 30, 2014 and are currently in default .

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
STOCKHOLDERS' EQUITY	NOTE 6 – STOCKHOLDERS’ EQUITY
	The Company is authorized to issue 100,000,000 shares of its $0.001 par value common stock.
	In January 2014, the Company issued 205,085 shares of common stock for services rendered and prepaid expenses with a value of $114,338.
	In January 2014, the Company issued 559,092 shares of common stock to settle three notes payable and accrued interest totaling $306,849. The shares were recorded at fair value of $273,304, resulting in a gain of $33,545.
	In March of 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 investors received 500,000 warrants to purchase the Company’s stock at $1.00 per share for a term of two years, valued at $147,102 in total. In September of 2014, the maturity date of this bridge loan was extended by 30 days; in return the exercise price of the warrant was reduced to $0.34 per share, with the original two year term remaining. Due to the change in the terms of the warrants, the Company recalculated the value of the warrants to be $85,325. Accordingly, the Company recognized a gain on the extinguishment of $73,573.
	In August of 2014, investors owning warrants for the company’s stock, converted early at a reduced price. The first tranche of warrants equaled 500,000 shares at $0.55, which were reduced to $0.34 resulting in the issuance of 500,000 common stock shares for $170,000 or $0.34 per share. The second tranche of warrants equaled 100,000 warrants at $1.00 per share. These warrants were exchanged for the issuance of 300,000 shares at $0.34 for $102,000 in cash.
	On August 7, 2014 the Company issued 400,000 shares of common stock at a price for $0.34 for legal, accounting and investor relation services.
	At December 2014, the company was obligated to issue 25,000 shares of common stock in connection with a note payable. On the date the agreement was executed, the price per share of the Company’s stock was $0.09. As the shares have not been issued as of December 31, 2014, the Company recorded a stock payable with a value of $2,250.
	During the year ended December 31, 2014, the Company issued 875,000 shares of common stock valued at $183,500 to various parties for accounting, legal, and marketing services.
	In March of 2015, the Company approved the issuance of 1,400,000 common stock shares for the conversion of a $100,000 promissory note, plus accrued interest of $2,164 and an additional capital investment of $107,835, all at $0.15 per share.
	In March of 2015, the Company issued 25,000 shares of common stock to settle the stock payable of $2,250 recorded as of December 31, 2014.

STOCK_OPTION_PLAN

STOCK OPTION PLAN	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
STOCK OPTION PLAN	NOTE 7 – STOCK OPTION PLAN
	On September 1, 2012, the Board of Directors of the Company ratified, approved, and adopted a Stock Option Plan for the Company allowing for the grant of up to 10,000,000 shares of common stock or stock options to acquire common shares. In the event an optionee ceases to be employed by or to provide services to the Company for reasons other than cause, any Stock Option that is vested and held by such optionee may be exercisable within up to thirty days after the effective date that his position ceases. No Stock Option granted under the Stock Option Plan is transferable. Any Stock Option held by an optionee at the time of his death may be exercised by his estate within six months of his death or such longer period as the Board of Directors may determine.
	As approved by the Board of Directors, on September 4, 2012, the Company granted 4,000,000 stock options to two officers of the Company at $0.20 per share for terms of seven years. Of the total stock options, 1,000,000 vested immediately and the remaining vest equally over the next 3 years at the anniversary date of the employment agreements. The total fair value of these options at the date of grant was estimated to be $599,974 and was determined using the Black-Scholes option pricing model with an expected life of 7 years, a risk free interest rate of 1.01%, a dividend yield of 0% and expected volatility of 254%. During the years ended December 31, 2014 and 2013, $149,995 and $113,888, respectively, was recorded as a stock based compensation expense.
	On June 18, 2014 as approved by the Board of Directors, the Company granted 800,000 stock options to four members of the Board of Directors, which vested immediately, at $0.55 per share for terms of seven years. The total fair value of these options at the date of grant was estimated to be $264,495 and was determined using the Black-Scholes option pricing model with an expected life of 7 years, a risk free interest rate of 0.45%, dividend yield of 0%, and expected volatility of 235%. During the year ended December 31, 2014, $264,494 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, 2015 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, 2015		4,000,000	$	0.2		4.42
		Granted		800,000	$	0.55		6.17
		Exercised		—	$	0		—
		Cancelled		—	$	0		—
		Outstanding at		4,800,000	$	0.26		4.71
		31-Mar-15
		Exercisable at March 31, 2015		3,200,000	$	0.22		4.53

WARRANTS

WARRANTS	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
WARRANTS	NOTE 8 – 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 as amortization of debt discount and included in interest expense. During year ended December 31, 2013, $178,267 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. The total fair value of these warrants at the date of grant was estimated to be $56,283 and was determined using the Black-Scholes option pricing model with an expected life of 2 years, a risk free interest rate of 0.1%, a dividend yield of 0% and expected volatility of 197%. An additional $100,000 note payable with the same terms and warrants which were issued in October 2013 . The total fair value of these warrants at the date of grant was estimated to be $37,467 and was determined using the Black-Scholes option pricing model with an expected life of 2 years, a risk free interest rate of 0.1%, a dividend yield of 0% and expected volatility of 197%. During the year ended December 31, 2013, $21,297 was recorded as amortization of debt discount and included in interest expense. During the year ended December 31, 2014, $63,892 was recorded as amortization of debt discount and included in interest expense.
	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 $147,102. The total fair value of these warrant at the date of grant was determined using the Black-Scholes option pricing model with an expected life of 2 years, a risk free interest rate of 0.45%, a dividend yield of 0% and expected volatility of 333%. In September of 2014, the maturity date of this bridge loan was extended by 30 days, in return the exercise price of the warrant was reduced to $0.34 per share, with the original two year term remaining. Due to the change in the terms of the warrants, the Company recalculated the value of the warrants to be $85,325. Accordingly, the Company recognized a gain on the extinguishment of $73,573.
	In September of 2014, the 500,000 warrants issued on November 15, 2012 and 100,000 warrants issued in September 2013 were exercised early at a reduced price of $0.34 per share.
	The following is a summary of the status of all of the Company’s stock warrants as of December 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, 2015		500,000	$	0.34		1.33
		Granted		-	$	-		----
		Exercised		-	$	-		—
		Cancelled		-	$	-		—
		Outstanding at March 31, 2015		500,000	$	0.34		1.08
		Exercisable at March 31, 2015		500,000	$	0.34		1.08

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9 – SUBSEQUENT EVENTS
	On September 4, 2014, a court in San Benito County ruled that Citadel was required to obtain an environmental impact report before commencing Project Indian. Thereafter, the Court awarded the petitioner $347,969 as attorney’s fees and costs against the County of San Benito and Citadel, jointly and severally. The Company has requested a dismissal of its appeal of this decision which was granted on May 6, 2015 as the Court required the Company to post a bond in which it was unable to qualify for. As such, the Company based upon its best estimate, has booked a contingent liability of $87,000 for this case.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2015
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
	The consolidated condensed 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.
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
	The Company has evaluated the recent accounting pronouncements through May 2015 and believes that none of them will have a material effect on the company’s financial statements.

OIL_AND_GAS_PROPERTIES_Tables

OIL AND GAS PROPERTIES (Tables)	3 Months Ended
	Mar. 31, 2015
Extractive Industries [Abstract]
The costs capitalized in oil and gas properties		2015		2014
	Exploration	$      2,215,132		$     2,042,054
Schedule of capitalized exploratory well costs	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 as of March 31, 2014:
		2015
	Beginning balance at January 1, 2015 (excluding asset retirement obligation)	$	1,993,305
	Additions to capitalized exploratory well costs pending the determination of proved reserves		173,077
	Asset retirement obligation		48,750
	Ending balance at March 31, 2015	$	2,215,132

NOTES_PAYABLE_Tables

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Notes payable consists of the following at:	Notes payable consists of the following at:
		March		December
		31, 2015		31, 2014
	Two notes payable to investors, unsecured, 10% interest; due October 30, 2014	$	500,000	$	500,000
	Promissory note to an entity; 10% interest, due December 2015		—		100,000
	Debt discount for 25,000 shares issued relating to note payable		—		(1,930	)
	Debt discount for derivative liability embedded in note payable		—		(13,308	)
		$	500,000		592,533

STOCK_OPTION_PLAN_Tables

STOCK OPTION PLAN (Tables)	3 Months Ended
	Mar. 31, 2015
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, 2015		4,000,000	$	0.2		4.42
		Granted		800,000	$	0.55		6.17
		Exercised		—	$	0		—
		Cancelled		—	$	0		—
		Outstanding at		4,800,000	$	0.26		4.71
		31-Mar-15
		Exercisable at March 31, 2015		3,200,000	$	0.22		4.53

WARRANTS_Tables

WARRANTS (Tables)	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Summary of the status of all of the Company's stock warrants	The following is a summary of the status of all of the Company’s stock warrants as of December 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, 2015		500,000	$	0.34		1.33
		Granted		—	$	—		—
		Exercised		—	$	—		—
		Cancelled		—	$	—		—
		Outstanding at March 31, 2015		500,000	$	0.34		1.08
		Exercisable at March 31, 2015		500,000	$	0.34		1.08

GOING_CONCERN_Details_Narrativ

GOING CONCERN (Details Narrative) (USD $)	3 Months Ended		101 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015
Notes to Financial Statements
Net loss	$358,277	$262,929	$4,194,581

OIL_AND_GAS_PROPERTIES_Details

OIL AND GAS PROPERTIES (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Oil And Gas Properties Details
Oil and gas properties exploration	$2,215,132	$2,042,054
Beginning balance at January 1	2,042,054
Additions to capitalized exploratory well costs pending the determination of proved reserves	173,077
Asset retirement obligation	48,750
Ending balance at December 31	$2,215,132

NOTES_PAYABLE_Details

NOTES PAYABLE (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Notes Payable Details
Two notes payable to investors, unsecured, 10% interest; due October 30, 2014	$500,000	$500,000
Promissory note to an entity; 10% interest, due December 2015		100,000
Debt discount for 25,000 shares issued relating to note payable		-1,930
Debt discount for derivative liability embedded in note payable		-13,308
Notes payable, net	$500,000	$592,533

NOTES_PAYABLE_Details_Narrativ

NOTES PAYABLE (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Interest Expense Notes Payable	$2,164
Shares issued upon conversion of Notes payable	681,100
Fair value of shares issued	$102,164

STOCK_OPTION_PLAN_Details

STOCK OPTION PLAN (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Number of Options
Outstanding at January 1, 2015	4,800,000
Granted
Exercised
Cancelled
Outstanding at March 31, 2015	4,800,000
Exercisable at March 31, 2015	3,200,000
Weighted-Average Exercise Price
Outstanding at January 1, 2015	$0.26
Granted	$0
Exercised	$0
Cancelled	$0
Outstanding at March 31, 2015	$0.26
Exercisable at March 31, 2015	$0.22
Weighted-Average Remaining Life (Years)
Outstanding at January 1, 2015	4 years 8 months 16 days
Outstanding at March 31, 2015	4 years 8 months 16 days
Exercisable at March 31, 2015	4 years 6 months 11 days

WARRANTS_Details

WARRANTS (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Number of Options
Outstanding at January 1, 2015	4,800,000
Granted
Exercised
Cancelled
Outstanding at March 31, 2015	4,800,000
Exercisable at March 31, 2015	3,200,000
Weighted-Average Exercise Price
Outstanding at January 1, 2015	$0.26
Granted	$0
Exercised	$0
Cancelled	$0
Outstanding at March 31, 2015	$0.26
Exercisable at March 31, 2015	$0.22
Weighted-Average Remaining Life (Years)
Outstanding at January 1, 2015	4 years 8 months 16 days
Outstanding at March 31, 2015	4 years 8 months 16 days
Exercisable at March 31, 2015	4 years 6 months 11 days
Warrant [Member]
Number of Options
Outstanding at January 1, 2015	500,000
Granted
Exercised
Cancelled
Outstanding at March 31, 2015	500,000
Exercisable at March 31, 2015	500,000
Weighted-Average Exercise Price
Outstanding at January 1, 2015	$0.34
Granted
Exercised
Cancelled
Outstanding at March 31, 2015	$0.34
Exercisable at March 31, 2015	$0.34
Weighted-Average Remaining Life (Years)
Outstanding at January 1, 2015	1 year 3 months 29 days
Outstanding at March 31, 2015	1 year 29 days
Exercisable at March 31, 2015	1 year 29 days