Citadel Exploration (COIL) 10-K 15 Apr 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Apr. 15, 2016
Document And Entity Information
Entity Registrant Name	Citadel Exploration, Inc.
Entity Central Index Key	1,482,075
Document Type	10-K
Document Period End Date	Dec. 31, 2015
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	$ 5,822,100
Entity Common Stock, Shares Outstanding		38,814,000
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash	$ 146,555	$ 270,298
Other receivable	19,342
Prepaid expenses	29,870
Product inventory	4,881
Total current assets	200,648
Deposits	9,900
Restricted cash	245,000
Oil and gas properties (successful efforts basis), buildings and equipment, net	4,173,307
Other assets, net	13,860	25,927
Total assets	4,642,715
Current liabilities:
Accounts payable and accrued payables	1,047,169
Accrued interest payable	227,945
Notes payable, net	525,034
Notes payable, net (related party)	$ 3,500,000
Derivative liability
Total current liabilities	$ 5,300,148
Asset retirement obligation	198,279
Production payment liability	300,000
Total liabilities	5,798,427
Stockholders' equity:
Common stock, $0.001 par value, 100,000,000 shares authorized,38,814,000 and 31,389,000 shares issued and outstanding as of December 31, 2015 and December 31, 2014, respectively	38,814
Additional paid-in capital	5,690,560
Accumulated deficit	$ (6,885,086)
Share subscription payable
Total stockholders' equity	$ (1,155,712)
Total liabilities and stockholders' equity	$ 4,642,715
Restated [Member]
Current assets:
Cash		270,298
Other receivable		1,209
Prepaid expenses		35,886
Product inventory		4,881
Total current assets		312,274
Deposits		4,900
Restricted cash		45,000
Oil and gas properties (successful efforts basis), buildings and equipment, net		621,680
Other assets, net		25,927
Total assets		1,009,781
Current liabilities:
Accounts payable and accrued payables		$ 604,558
Accrued interest payable
Notes payable, net		$ 592,533
Notes payable, net (related party)
Derivative liability		$ 13,308
Total current liabilities		1,210,399
Asset retirement obligation		48,923
Production payment liability		300,000
Total liabilities		1,559,322
Stockholders' equity:
Common stock, $0.001 par value, 100,000,000 shares authorized,38,814,000 and 31,389,000 shares issued and outstanding as of December 31, 2015 and December 31, 2014, respectively		31,389
Additional paid-in capital		4,673,497
Accumulated deficit		(5,256,677)
Share subscription payable		2,250
Total stockholders' equity		(549,541)
Total liabilities and stockholders' equity		$ 1,009,781

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Common stock, par value	$ 0.001
Common stock, shares authorized	100,000,000
Common stock, issued	38,814,000
Common stock, outstanding	38,814,000
Restated [Member]
Common stock, par value		$ 0.001
Common stock, shares authorized		100,000,000
Common stock, issued		31,389,000
Common stock, outstanding		31,389,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenue	$ 118,327
Operating expenses:
Lease operating expense	199,908
Geological and geophysical expense	9,985
General and administrative	306,471
Depreciation, depletion and amortization	20,226
Professional fees	67,410
Executive compensation	$ 809,323
Dry hole, abandonment, impairment and exploration
Total operating expenses	$ 1,413,323
Other expenses:
Gain - other
Loss - contingency	$ (87,000)
Gain (loss) - notes payable settlement	$ (26,080)
Gain - debt extinguishment
Interest expense	$ (220,413)	$ (202,902)
Total other expenses	(333,493)
Net loss before provision for income taxes	$ (1,628,409)
Provision for income taxes
Net loss	$ (1,628,409)	$ (3,030,331)
Weighted average number of common shares outstanding - basic	34,937,077
Net loss per common share - basic	$ (0.05)
Restated [Member]
Revenue		19
Operating expenses:
Lease operating expense		103,883
Geological and geophysical expense		2,396
General and administrative		326,991
Depreciation, depletion and amortization		14,976
Professional fees		255,173
Executive compensation		819,089
Dry hole, abandonment, impairment and exploration		1,420,374
Total operating expenses		2,942,882
Other expenses:
Gain - other		$ 8,316
Loss - contingency
Gain (loss) - notes payable settlement		$ 33,545
Gain - debt extinguishment		73,573
Interest expense		(202,902)
Total other expenses		(87,468)
Net loss before provision for income taxes		$ (3,030,331)
Provision for income taxes
Net loss		$ (3,030,331)
Weighted average number of common shares outstanding - basic		29,370,223
Net loss per common share - basic		$ (.10)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Common Stock	Additional Paid-In Capital	Stock Payable	Accumulated Deficit	Total
Beginning Balance at Dec. 31, 2013	$ 28,950	$ 3,332,982		$ (2,226,346)	$ 1,135,586
Beginning Balance, Shares at Dec. 31, 2013	289,498,233
Shares issued for settlement of notes payable	$ 559	272,745			273,304
Shares issued for settlement of notes payable, shares	559,092
Shares issued for services	$ 1,080	296,758			297,838
Shares issued for services, shares	1,080,085
Warrants issued with notes payable		85,325			85,325
Stock option compensation		414,487			414,487
Conversion of Debt/Warrants into Stock	$ 800	$ 271,200			272,000
Conversion of Debt/Warrants into Stock, Shares	800,000
Share subscription payable			$ 2,250		2,250
Net loss				$ (3,030,331)	(3,030,331)
Ending Balance at Dec. 31, 2014	$ 31,389	$ 4,673,497	$ 2,250	$ (5,256,677)	(549,541)
Ending Balance, Shares at Dec. 31, 2014	31,389,000
Shares issued for cash	$ 719	107,117			107,836
Shares issued for cash, shares	718,904
Shares issued for property purchase	$ 6,000	474,000			480,000
Shares issued for property purchase, shares	6,000,000
Shares issued for settlement of notes payable	$ 681	101,483			102,164
Shares issued for settlement of notes payable, shares	681,100
Warrants issued with notes payable		3,054			3,054
Stock option compensation		302,189			302,189
Shares issued for share subscription settlement	$ 25	3,725	$ (2,250)		1,500
Shares issued for share subscription settlement, shares	25,000
Shares issued to convert debt		$ 25,495			25,495
Net loss				$ (1,628,409)	(1,628,409)
Ending Balance at Dec. 31, 2015	$ 38,814	$ 5,690,560		$ (6,885,086)	$ (1,155,712)
Ending Balance, Shares at Dec. 31, 2015	38,814,004

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,628,409)	$ (3,030,331)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and accretion	20,226
Amortization of debt discount	$ 10,291
Abandonment and impairment
Gain - other
Gain - notes payable settlement	$ (26,080)
Gain - debt extinguishment
Executive stock based compensation expense	$ 302,188
Loss contingency	$ 87,000
Non-employee stock based compensation
Changes in operating assets and liabilities:
Decrease (Increase) in other receivable	$ (18,133)
Decrease in prepaid expenses	$ 6,016
Increase in product inventory
Increase in deposits	$ (205,000)
Increase in accounts payable and accrued payables	439,543
Increase in accrued interest payable	227,945
Net cash used in operating activities	(819,253)
CASH FLOWS FROM INVESTING ACTIVITIES
Exploration and development of oil and gas properties	(930,426)
Property Acquisitions	$ (2,000,000)
Purchase of fixed assets
Restricted cash
Net cash used in investing activities	$ (2,930,426)
CASH FLOWS FROM FINANCING ACTIVITIES
Production advance
Proceeds from sale of common stock, net of costs	$ 239,244
Proceeds from notes payable	3,500,000
Repayments of notes payable	(113,308)
Net cash provided by financing activities	3,625,936
NET CHANGE IN CASH	(123,743)
CASH AT BEGINNING OF YEAR	270,298
CASH AT END OF YEAR	146,555	270,298
SUPPLEMENTAL INFORMATION:
Interest paid	$ (651)
Income taxes paid
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Financing of insurance	$ 62,584
Issuance of common stock for settlement of notes payable and accrued interest	480,000
Conversion of debt to equity	25,495
Issuance of common stock for settlement of notes payable and accrued interest	102,164
Asset retirement obligation	$ 51,559
Accounts payable related to property exchange
Other receivables related to property exchange
Restated [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		(3,030,331)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and accretion		14,976
Amortization of debt discount		159,083
Abandonment and impairment		1,420,374
Gain - other		8,316
Gain - notes payable settlement		33,545
Gain - debt extinguishment		73,573
Executive stock based compensation expense		$ 414,487
Loss contingency
Non-employee stock based compensation		$ 297,388
Changes in operating assets and liabilities:
Decrease (Increase) in other receivable		61,958
Decrease in prepaid expenses		$ 6,153
Increase in product inventory
Increase in deposits		$ (900)
Increase in accounts payable and accrued payables		80,725
Increase in accrued interest payable		39,648
Net cash used in operating activities		(615,675)
CASH FLOWS FROM INVESTING ACTIVITIES
Exploration and development of oil and gas properties		$ (654,148)
Property Acquisitions
Purchase of fixed assets		$ (28,165)
Restricted cash
Net cash used in investing activities		$ (682,313)
CASH FLOWS FROM FINANCING ACTIVITIES
Production advance		300,000
Proceeds from sale of common stock, net of costs		272,000
Proceeds from notes payable		670,268
Repayments of notes payable		(76,631)
Net cash provided by financing activities		1,165,637
NET CHANGE IN CASH		(132,351)
CASH AT BEGINNING OF YEAR	$ 270,298	402,649
CASH AT END OF YEAR		270,298
SUPPLEMENTAL INFORMATION:
Interest paid		$ (2,450)
Income taxes paid
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Financing of insurance		$ 70,268
Issuance of common stock for settlement of notes payable and accrued interest
Conversion of debt to equity
Issuance of common stock for settlement of notes payable and accrued interest		$ 2,038,452
Asset retirement obligation		48,923
Accounts payable related to property exchange		97,451
Other receivables related to property exchange		$ 22,507

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
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 its common stock to 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 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, 2015 and 2014, 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. Assumptions, Judgments, and Estimates In the course of preparing the financial statements, management makes various assumptions, judgments and estimates to determine the reported amounts of assets, liabilities, revenues and expenses, and in the disclosures of commitments and contingencies. Changes in these assumptions, judgments, and estimates will occur as a result of the passage of time and the occurrence of future events and, accordingly, actual results could differ from amounts previously established. The more significant areas requiring the use of assumptions, judgments, and estimates include: (1) oil and natural gas reserves; (2) cash flow estimates used in impairment tests of long-lived assets; (3) depreciation, depletion and amortization; (4) asset retirement obligations; (5) assigning fair value and allocating purchase price in connection with business combinations; (6) income taxes; (7) valuation of derivative instruments; and (8) accrued revenue and related receivables. Although management believes these estimates are reasonable, actual results could differ from these 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, 2015 and 2014. See Footnote No. 13, “Fair Value of Financial Instruments,” for further information. 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 Level 1: 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. Inventories Materials and supplies are valued at weighted-average cost and are reviewed periodically for obsolescence. Finished goods include oil and natural gas products, which are valued at the lower of cost or market. Oil and Natural Gas Properties Effective, January 1, 2013, the Company changed its policy to account for its oil and natural gas exploration and development costs using the successful efforts method. 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. Exploratory well costs are capitalized pending further evaluation of whether economically recoverable reserves have been found. If economically recoverable reserves are not found, exploratory well costs are expensed as dry holes. All exploratory wells are evaluated for economic viability within one year of well completion, and the related capitalized costs are reviewed quarterly. Exploratory wells that discover potentially economic reserves in areas where a major capital expenditure would be required before production could begin and where the economic viability of that major capital expenditure depends upon the successful completion of further exploratory work in the area remain capitalized if the well finds a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. The costs of development wells are capitalized whether productive or nonproductive. We review our oil and natural gas producing properties for impairment on a field-by-field basis whenever events or changes in circumstances indicate that the carrying amount of such properties may not be recoverable. If the sum of the expected undiscounted future cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment charge is recorded based on the fair value of the asset. This may occur if a field contains lower than anticipated reserves or if commodity prices fall below a level that significantly effects anticipated future cash flows on the field. The fair value measurement used in the impairment test is generally calculated with a discounted cash flow model using several Level 3 inputs which are based upon estimates, the most significant of which is the estimate of net proved reserves. There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting future rates of production and timing of development expenditures, including many factors beyond our control. Reserve engineering is a subjective process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact manner, and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. The quantities of oil and natural gas that are ultimately recovered, production and operating costs, the amount and timing of future development expenditures and future oil and natural gas sales prices may all differ from those assumed in these estimates. Property, Plant and Equipment The Company records all property and equipment at cost less accumulated depreciation. Improvements are capitalized while repairs and maintenance costs are expensed as incurred. 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. 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. Concentrations of credit risk Financial instruments that subject the Company to credit risk could consist of cash balances maintained in excess of federal depository insurance limits. The Company maintains its cash and cash equivalent balances with high credit quality financial institutions. At times, cash and cash equivalent balances may be in excess of Federal Deposit Insurance Corporation limits. To date, the Company has not experienced any such losses. Restricted cash The Company has three bonds at financial institutions to meet financial bonding requirements in the state of California. As of December 31, 2015, restricted cash totaled $245,000. Debt discount The Company records debt discount as a contra liability account and is presented net of the associated note payable. The discount is 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 Revenues associated with sales of oil are recognized when delivery has occurred and title has transferred, and if the collectability of the revenue is probable. Asset Retirement Obligation The Company's asset retirement obligations (AROs) relate to future costs associated with plugging and abandonment of oil wells, removal of equipment and facilities from leased acreage and returning such land to its original condition. The fair value of a liability for an ARO is recorded in the period in which it is incurred (typically when the asset is installed at the production location), and the cost of such liability increases the carrying amount of the related long-lived asset by the same amount. The liability is accreted each period through charges to depreciation, depletion and amortization expense, and the capitalized cost is depleted on a units-of-production basis over the proved developed reserves of the related asset. Revisions to estimated AROs result in adjustments to the related capitalized asset and corresponding liability. Revenue & Expense Recognition The Company utilizes accrual basis of accounting when measuring financial position and operating results. The accrual basis recognizes revenues and expenses in the accounting period in which those transactions, events, or circumstances occur (goods or services are received) and become measurable. The Company recognizes oil 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. The Company recognizes its expenses when the expenses are incurred, not necessarily when they are paid. Expenses are generally incurred when the company receives tangible goods or services are provided. Lease operating expense Operating expenses include field operating expenses, transportation expenses, compression charges, and an allocation of overhead that directly relates to production activities. Depreciation, Depletion and Amortization The provision for DD&A-oil and natural gas production is calculated on a field-by-field basis using the unit-of-production method. Projected future production rates, the timing of future capital expenditures as well as changes in commodity prices, may significantly impact estimated reserve quantities. Depreciation, depletion and amortization —oil and natural gas production is dependent upon our estimates of total proved and proved developed reserves, which estimates incorporate various assumptions and future projections. These estimates are subject to change as additional information and technologies become available. Accordingly, oil and natural gas quantities ultimately recovered and the timing of production may be substantially different than projected. Reduction in reserve estimates may result in increased depreciation, depletion and amortization oil and natural gas production, which in turn reduces net earnings. Changes in reserve estimates are applied on a prospective basis. Such a decline in reserves may result from lower commodity prices, which may make it uneconomic to drill for and produce higher costs fields. 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 net operating loss carryforward for the year ended December 31, 2015 is $6,879,492 and the deferred tax asset is $1,330,049. The Company maintains a full valuation allowance for the deferred tax asset of $1,330,049. 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, 2015 and 2014, 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, 2015 and 2014, no income tax expense has been recorded. Long-lived Assets In accordance with the Financial Accounting Standards Board ("FASB") Accounts Standard Codification (ASC) ASC 360-10, "Property, Plant and Equipment," the carrying value of intangible assets and other long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. Proved oil properties are reviewed for impairment on a field-by-field basis, annually or when events and circumstances indicate a possible decline in the recoverability of the carrying amount of such property. The Company estimates the expected future cash flows of its oil properties and compares these undiscounted cash flows to the carrying amount of the oil properties to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will write down the carrying amount of the oil properties to fair value. The factors used to determine fair value include, but are not limited to, estimates of reserves, future commodity prices, future production estimates, estimated future capital expenditures, and discount rates commensurate with the risk associated with realizing the projected cash flows. Unproved oil and natural gas properties are periodically assessed for impairment on a project-by-project basis. The impairment assessment is affected by the results of exploration activities, commodity price outlooks, planned future sales or expiration of all or a portion of such projects. If the quantity of potential reserves determined by such evaluations is not sufficient to fully recover the cost invested in each project, the Company will recognize an impairment loss at that time. Recent pronouncements The Company has evaluated the recent accounting pronouncements through March 2016 and believes that none of them will have a material effect on the company’s financial statements.

GOING CONCERN

GOING CONCERN	12 Months Ended
	Dec. 31, 2015
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 exploration stage and, accordingly, has not yet generated significant 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 a net loss since inception through the period ended December 31, 2015 of $6,885,086. In addition, the Company’s exploration 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 EXPENSES

PREPAID EXPENSES	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
PREPAID EXPENSES	NOTE 3 –PREPAID EXPENSES As of December 31, 2015 and 2014, the Company had prepaid insurance totaling $29,870 and $35,886 respectively. The prepaid insurance will be expensed on a straight line basis over the remaining life of the insurance policies. During the years ended December 31, 2015 and 2014, the Company recorded $125,801 and $54,702 of insurance expenses. As of December 31, 2015 and 2014, the Company had a prepaid deposit of $5,000 and $5,000 respectively for leased office space.

OIL AND GAS PROPERTIES, BUILDIN

OIL AND GAS PROPERTIES, BUILDINGS AND EQUIPMENT	12 Months Ended
	Dec. 31, 2015
Extractive Industries [Abstract]
Disclosure - OIL AND GAS PROPERTIES, BUILDINGS AND EQUIPMENT	NOTE 4 – OIL AND GAS PROPERTIES, BUILDINGS AND EQUIPMENT Oil and natural gas properties, buildings and equipment consist of the following: 2015 2014 (Restated) Oil and Natural Gas: Proved properties $ 1,734,223 $ — Unproved properties 2,444,608 621,860 4,178,831 621,860 Less accumulated depreciation, depletion, and amortization (5,524 ) — $ 4,173,307 $ 621,860 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 Project Indian. Management has determined to shift capital resources to concentrate on drill ready projects that will immediately produce revenue. Consequently, the Company has suspended future capital expenditures related to Project Indian. Management impaired Project Indian in the fourth quarter of 2014 with a value of $1,420,574. The Company maintains its lease rights, takings claims, and no waiver of any right is intended by taking the foregoing impairment. Any action taken by the Company with respect to Project Indian in the near future, if any, will likely only be taken to preserve or advance the Company’s aforementioned legal rights and interests. 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. In June the well’s pump had a mechanical issue, the company performed well maintenance operations on the #2-26 well in August, which returned the well to production at approximately 20-25 barrels per day. Citadel anticipates returning the well to production in the second quarter of 2016. Citadel is in the final stages of the CEQA process to permit two additional exploration wells on the Yowlumne acreage. Recent regulatory changes, including SB4 the State of California’s bill on fracking have delayed the final approval of our CEQA application. As such we do not expect to have these prospects permitted until 2016, at which time we will determine when to drill. 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. Kern Bluff Oil Field The following table summarizes the consideration paid to the sellers and the amounts of the assets acquired and liabilities assumed in the Kern Bluff Acquisitions: Consideration paid to sellers: Cash consideration $ 2,000,000 Stock consideration 480,000 2,480,000 Recognized amounts of identifiable assets acquired and liabilities assumed: Proved developed and undeveloped properties 2,370,000 Other assets acquired 110,000 Asset retirement obligation 146,720 Other liabilities assumed — Total identifiable net assets $ 2,626,720 In July of 2015, Citadel purchased approximately 1,100 acres encompassing the Kern Bluff Oil Field for $2,000,000 in cash and 6,000,000 shares of its common stock valued at $480,000 , based on price per share on date of sale. The seller also retained a royalty that varies on a lease by lease basis; Citadel has 100% working interest in the field with an 80% net revenue interest. This field was discovered in 1944 by Gulf Oil. Gulf drilled approximately 169 wells in the field in the 1970’s and 1980’s recovering twelve million barrels of oil, primarily from the Santa Margarita formation located at depths in the 900 to 1,100 foot range. Analogous fields in the area have achieved recovery levels in the 40-90% range. Citadel believes it can recover 20-40% of the remaining OOIP, through down spacing, horizontal development, cyclic steam injection and exploitation of shallower by passed zones. In December of 2015, Citadel shifted its CAPEX focus to remediation of the existing acquired facilities. At the time of purchase, the oil at Kern Bluff was being processed by temporary facilities installed by the previous owner. As production increased in September, it quickly became apparent that these facilities were not capable of processing the additional volumes of oil and water being produced. The existing permanent facilities were built in the 1970’s by Gulf Oil and require extensive remediation including new pipe, valves, flanges and tank repair. In order to facilitate the remediation, Citadel elected to shut down the eight producing wells in early January. Citadel expects the facility remediation to be completed in May of 2016, at which time the facilities are estimated to have production capability of 500 barrels per day of oil. Citadel then plans to resume its return to production (RTP) program, and then begin drilling new wells in the third or fourth quarter of 2016. Upon the execution of purchase agreements of Kern Bluff Oil Field, the Company committed to invest $5,000.000 (the ''Work Commitment'') in development capital over a period of 18 months from the July 31, 2015 to be used for such activities including, but not limited to, engineering, environmental work, facilities, and other expenses incurred to drill at least five 5 new vertical wells, and to drill at least one horizontal well to target either the Transition or Santa Margarita sands with an attempted lateral length of at least 500 feet, all subject to obtaining appropriate and sufficient permits and approvals from applicable governing agencies. If the Company does not perform the Work Commitment during the required time period and assuming no breach of this Agreement by the selling party (the “Seller”) prior to the end of the 18 months period, then liquidated damages of $5,000.000 minus any money expended that is short of the Work Commitment will be due to the Seller. In addition to monetary commitment, the Company is committed to certain reporting obligations regarding the aforementioned expenditure to Seller on a quarterly basis.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 5 – INCOME TAXES The (benefit) provision for income taxes from continuing operations consists of the following (in thousands): Year Ended December 31, 2015 2014 Current: Federal $ — $ — State 2 2 2 2 Deferred: Federal — — State — — — — Total $ 2 $ 2 The components of the net deferred income tax liabilities consist of the following: Year Ended December 31, 2015 2014 Deferred income tax assets: Equity and deferred compensation 174 90 Net operating loss 2,092 1,117 State net operating loss carry forward 485 282 Other, net — — Total deferred tax assets 2,752 1,490 Valuation allowance (2,422 ) (1,490 ) 330 — Deferred income tax liabilities: Depreciation and depletion (330 ) — Net deferred income tax liabilities $ — $ — As of December 31, 2015, we had approximately $5,977,000 in net operating loss carryforwards for each federal and state income tax purposes. In assessing the realizability of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management has concluded that there is no assurance that the company will have taxable income in the future; therefore 100% of the deferred income tax assets is not recognized. We consider the scheduled reversal of deferred tax assets, the level of historical taxable income and tax planning strategies in making the assessment of the realizability of deferred tax assets. We have identified the U.S. federal and California as our "major" tax jurisdiction. With limited exceptions, we remain subject to IRS examination of our income tax returns filed within the last three (3) years, and to California Franchise Tax Board examination of our income tax returns filed within the last four (4) years.

FIXED ASSETS

FIXED ASSETS	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
FIXED ASSETS	NOTE 6 – FIXED ASSETS 2015 2014 Vehicle $ 33,572 $ 33,572 Website 1,375 1,375 Furniture 10,000 10,000 Computer Equipment 8,165 8,165 Less: Accumulated depreciation (39,252 ) (27,185 ) $ 13,860 $ 25,927 Depreciation expense for the years ended December 31, 2015 and 2014 was $12,067 and $14,976.

NOTES PAYABLE

NOTES PAYABLE	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
NOTES PAYABLE	NOTE 7 – NOTES PAYABLE Notes payable consists of the following: December December Note payable to an entity for the financing of insurance premiums, unsecured; 7.44% interest, due March 2016 $ 17,263 $ — Two notes payable to investors, unsecured, 10% interest; due October 31, 2016 $ 500,000 500,000 Debt discount for 500,000 warrants issued relating to notes payable (46,394 ) Promissory note to an entity; 10% interest, due December 2015 — 100,000 Debt discount for derivative liability embedded in promissory note due December 2015 — (13,308 ) Debt discount for 25,000 shares issued relating to note payable — (1,930 ) Three note payables to an entity for the financing of insurance premiums, unsecured; 8.63% interest, due April 2015; 14% interest, due February 2014; 11% interest, due August 2014 — 7,771 Notes Payable - Total $ 470,869 $ 592,533 Notes Payable, Related Party Term loan with a related party investor executed July 30, 2015, unsecured, 10% interest; due July 30, 2016 $ 3,500,000 — Total – Notes Payable & Notes Payable, Related Party $ 3,970,869 $ 592,533 Interest expense for the year ended December 31, 2015 was $220,833. Of that amount $209,168 relates to notes payable and insurance financing and $11,665 is amortization of debt discount. Interest expense for the year ended December 31, 2014 was $202,902. Of that amount $43,819 relates to notes payable and insurance financing and $159,083 is amortization of debt discount.

PRODUCTION PAYMENT LIABILITY

PRODUCTION PAYMENT LIABILITY	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
PRODUCTION PAYMENT LIABILITY	NOTE 8 – PRODUCTION PAYMENT LIABILITY In December 2014, the company entered into a financing agreement with two related party entities. The company received $300,000 in total from both entities to fund costs of the Yowlumne 2-26 well recompletion. In return for the funds received, the two entities will receive a combined 75% of the net revenue from the well until the $300,000 is repaid. At the time of repayment, the entities will own a total 3% overriding royalty on the well. This liability is completely dependent on the well generating revenue. If the well fails to generate enough revenue to repay the $300,000, Citadel is not responsible for the unpaid amount. According to ASC 932-470-25 Section B, “Funds advanced to an operator that are repayable in cash out of the proceeds from a specified share of future production of a producing property, until the amount advanced $300,000 is paid in full, shall be accounted for as a borrowing. The advance is a payable for the recipient of the cash invested. Given the wells current production of approximately 20 barrels per day, coupled with the current oil price of approximately $30.00 per barrel, we believe it will take more than two years for payback to occur; therefore this has been classified as a long-term payable.

ASSET RETIREMENT OBLIGATION

ASSET RETIREMENT OBLIGATION	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
ASSET RETIREMENT OBLIGATION	NOTE 9 – 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. The 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 depreciation, depletion and amortization of oil and natural gas production over the life of the oil and natural gas field. The following table summarizes the activity for the Company's abandonment obligations: Year Ended December 31, 2015 2014 Beginning balance at January 1 $ 48,923 $ 31,407 Liabilities incurred from property acquisition 146,720 17,517 Accretion expense 2,636 — Ending balance at December 31 $ 198,279 $ 48,923

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT)	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
STOCKHOLDERS' EQUITY (DEFICIT)	NOTE 10 – STOCKHOLDERS’ EQUITY (DEFICIT) 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 third party 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 July 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. Accordingly, the Company recognized a gain of $47,330. 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, which resulted in a $22,283 gain. In August of 2014, the Company issued 400,000 shares of common stock valued at $136,000 to various parties for accounting, legal and marketing 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 $107,836, all at fair value of $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. In July of 2015, the Company issued 6,000,000 shares of common stoc

STOCK OPTION PLAN

STOCK OPTION PLAN	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
STOCK OPTION PLAN	NOTE 11 – 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 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. On July 29, 2015 as approved by the Board of Directors, the Company granted 4,700,000 stock options to three members of management and to three members of the Board of Directors. These options vest over a three year period, at $0.15 per share for a term of seven years. The total fair value of these options at the date of grant was estimated to be $376,490 and was determined using the Black Scholes option pricing model with an expected life of 7 years, risk free interest rate of 1.872%, dividend yield of 0%, and expected volatility of 333%. During the year ended December 31, 2015, $152,198 w The following is a summary of the status of all of the Company’s stock options as of December 31, 2015 and changes during the period ended on that date: Number Weighted-Average Aggregate Weighted-Average Remaining Life Outstanding at January 1, 2014 4,000,000 $ 0.20 $ — 4.68 Granted 800,000 $ 0.55 $ — 6.42 Exercised — $ 0.00 $ — — Cancelled — $ 0.00 $ — — Outstanding at December 31, 2014 4,800,000 $ 0.26 $ — 5.65 Exercisable at December 31, 2014 3,200,000 $ 0.22 $ — 3.79 Granted 4,700,000 $ 0.15 $ — 6.58 Exercised — $ 0.00 $ — — Cancelled — $ 0.00 $ — — Outstanding at December 31, 2015 9,500,000 $ 0.20 $ — 5.26 Exercisable at December 31, 2015 5,964,000 $ 0.21 $ — 4.55

WARRANTS

WARRANTS	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
WARRANTS	NOTE 12 – WARRANTS 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. In September of 2014, the 500,000 warrants issued on November 15, 2012, valued at $217,330, and 100,000 warrants issued in September 2013, valued at $56,283, 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, 2015 and changes during the period ended on that date: Number Weighted-Average Weighted-Average Outstanding at January 1, 2014 800,000 $ 0.72 0.89 Granted 500,000 $ 0.34 1.33 Exercised 600,000 $ 0.34 — Cancelled — $ 0.00 — Outstanding at December 31, 2014 500,000 $ 0.34 1.33 Exercisable at December 31, 2014 500,000 $ 0.34 1.33 Granted — $ 0.00 — Exercised — $ 0.00 — Cancelled — $ 0.00 — Outstanding at December 31, 2015 500,000 $ 0.20 0.75 Exercisable at December 31, 2015 500,000 $ 0.20 0.75

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	NOTE 13 – FAIR VALUE MEASUREMENT Liabilities Measured at Fair Value on a Recurring Basis The following table sets forth by level within the fair value hierarchy the Company's net derivative liabilities that were measured at fair value on a recurring basis as of December 31, 2015 and 2014: Total Level 1 Level 2 Level 3 Derivatives liability, net December 31, 2015 $ -- $ -- $ -- $ -- December 31, 2014 $ 13,308 $ -- $ -- $ 13,308 Changes in Level 3 Fair Value Measurements The table below includes a rollforward of amounts included in the Company's Balance Sheet (including the change in fair value) for financial instruments classified by the Company within Level 3 of the fair value hierarchy. When a determination is made to classify a financial instrument within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources). Year Ended December 31 2015 2014 Fair value liability (asset), beginning of period $ 13,308 $ -- Transfer out of Level 3(1) $ (13,308) $ -- Realized and unrealized (gain) loss included in earnings $ -- $ -- Unrealized loss included in derivative liability $ -- $ 13,308 Settlements $ -- $ -- Fair value liability, end of period $ -- $ 13,308 (1) During the first quarter of 2015, the derivative liability was converted into shares of stock and these instruments were transferred to level 1. The inputs used to value common stock are defined as unadjusted quoted prices in active markets for identical assets or liabilities.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
RELATED PARTY TRANSACTIONS	NOTE 14 – RELATED PARTY TRANSACTIONS On September 15, 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 it 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 recorded 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, 2014 and 2013, the Company recording executive compensation totaling $256,944 and $214,997, respectively. As of the second year of the employment agreement from September 2013 to September 2014, the CEO and CFO have deferred payment of approximately $5,000 per month of salary. As of the third year of the employment from September 2014 to present, the CEO and CFO have deferred payment of approximately $10,000 per month of salary. As of December 31, 2015 and 2014, $578,042 and $203,042 is included in accounts payable and accrued liabilities related to the employment agreements with the CEO and CFO. During the year ended December 31, 2014, the Company made the following purchases from KVOS, an oil field service company owned by James Borgna a member of Citadel Exploration’s Board of Directors; $39,199.43 of oil field equipment and services. In December 2014, the Company entered into an agreement with Jim Walesa and Cibolo Creek Partners to fund $300,000 towards the Yowlumne #2-26 recompletion. In this agreement Mr. Walesa and Cibolo Creek will receive 75% of the net revenue after expenses, until they have received $300,000 in payment. Upon full repayment, Mr. Walesa and Cibolo Creek will receive a 3% royalty on the well. Mr. Walesa is currently on the Board of Directors of Citadel and a member of Cibolo Creek Partners. In July of 2015, the Company entered into a $3,500,000 one year term loan with Cibolo Creek Partners for the purchase and development of the Kern Bluff Oil Field. Mr. Walesa is currently on the Board of Directors of Citadel and a member of Cibolo Creek Partners. On September 1, 2015, the Company entered into a three year employment agreement with its CEO. The annual salary for the first year is $240,000, then in the second year it increases to $300,000, and in the third year it increases to $360,000. Additionally, the officer received 1,500,000 stock options recorded at a fair value of $120,156. During the year ended December 31, 2015, the Company recorded executive compensation totaling $240,000. On September 1, 2015, the Company entered into a three year employment agreement with its CFO. The annual salary for the first year is $240,000, then in the second year it increases to $300,000, and in the third year it increases to $360,000. Additionally, the officer received 1,500,000 stock options recorded at a fair value of $120,156. During the year ended December 31, 2015, the Company recorded executive compensation totaling $240,000. During the year ended December 31, 2015, the Company made the following purchases from entities considered related parties; $227,903 for oil field equipment and services from Grey Energy. Grey Energy is owned by James Borgna, who is a member of our Board of Directors.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 15 – COMMITMENTS AND CONTINGENCIES In connection with our acquisition of Kern Bluff Oil Field (see Note 4), the Company committed to invest $5,000.000 (the ''Work Commitment'') in development capital over a period of 18 months from the July 31, 2015 to be used for such activities including, but not limited to, engineering, environmental work, facilities, and other expenses incurred to drill at least five 5 new vertical wells, and to drill at least one horizontal well to target either the Transition or Santa Margarita sands with an attempted lateral length of at least 500 feet, all subject to obtaining appropriate and sufficient permits and approvals from applicable governing agencies. If the Company does not perform the Work Commitment during the required time period and assuming no breach of this Agreement by the selling party (the “Seller”) prior to the end of the 18 months period, then liquidated damages of $5,000.000 minus any money expended that is short of the Work Commitment will be due to the Seller. In addition to monetary commitment, the Company is committed to certain reporting obligations regarding the aforementioned expenditure to Seller on a quarterly basis.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 16 – SUBSEQUENT EVENTS On March 31, 2016 Cibolo Creek Partners converted a $3,500,000 one year term loan into a newly issued Series A Convertible Participating Preferred Stock. The Series A Convertible Participating Preferred Stock (Series A) is convertible into shares of Citadel Exploration’s common stock at $0.20 per share. The Series A has a three year term, carries a 10% coupon and has a 2% overriding royalty (ORRI) on the Kern Bluff Oil Field. Citadel can force convert the Series A if Citadel’s common stock trades over $1.00 per share for 90 days. At such time of conversion the ORRI will be reduced to 1% in perpetuity. In addition to the $3,500,000 converted into the Series A, Citadel has also received an additional $775,000 in commitments bringing the total amount invested into the Series A to $4,375,000. Citadel plans to use these funds for the continued development of the Kern Bluff Oil Field and for working capital.

SUPPLEMENTAL DISCLOSURE OF OIL

SUPPLEMENTAL DISCLOSURE OF OIL AND NATURAL GAS OPERATIONS (Unaudited)	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
SUPPLEMENTAL DISCLOSURE OF OIL AND NATURAL GAS OPERATIONS (Unaudited)	SUPPLEMENTAL DISCLOSURE OF OIL AND NATURAL GAS OPERATIONS (Unaudited) The Company’s oil and natural gas reserves are attributable solely to properties within the United States. Capitalized Costs December 31, 2015 2014 Oil and natural gas properties: (in thousands) Proved properties $ 1,734 $ — Unproved properties 2,445 622 Total oil and natural gas properties 4,179 622 Less accumulated depreciation, depletion and amortization (6 ) — Net oil and natural gas properties capitalized $ 4,173 $ 622 Costs Incurred for Oil and Natural Gas Producing Activities Year Ended December 31, 2015 2014 2013 Acquisition costs: (in thousands) Proved properties $ 1,200 $ — $ — Unproved properties 1,170 391 13 Development costs 944 611 123 Total $ 3,314 $ 1,002 $ 136 Reserve Quantity Information The following information represents estimates of the Company’s proved reserves as of December 31, 2015, which have been prepared and presented under SEC rules. These rules require SEC reporting companies to prepare their reserve estimates using specified reserve definitions and pricing based on a 12-month unweighted average of the first-day-of-the-month pricing. The pricing that was used for estimates of the Company’s reserves as of December 31, 2015 was based on an unweighted average 12-month average WTI posted price per Bbl for oil as set forth in the following table: Year Ended December 31, 2015 2014 2013 Oil (per Bbl) $ 44.62 $ N/A $ N/A Subject to limited exceptions, proved undeveloped reserves may only be booked if they relate to wells scheduled to be drilled within five years of the date of booking. This requirement has limited, and may continue to limit, the Company’s potential to record additional proved undeveloped reserves as it pursues its drilling program. Moreover, the Company may be required to write down its proved undeveloped reserves if it does not drill on those reserves within the required five-year timeframe. The Company does not have any proved undeveloped reserves which have remained undeveloped for five years or more. The Company’s proved oil reserves are located in the United States in the San Joaquin Valley of California. Proved reserves were estimated in accordance with the guidelines established by the SEC and the FASB. Oil reserve quantity estimates are subject to numerous uncertainties inherent in the estimation of quantities of proved reserves and in the projection of future rates of production and the timing of development expenditures. The accuracy of such estimates is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of subsequent drilling, testing and production may cause either upward or downward revision of previous estimates. Further, the volumes considered to be commercially recoverable fluctuate with changes in prices and operating costs. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries are more imprecise than those of currently producing oil and natural gas properties. Accordingly, these estimates are expected to change as additional information becomes available in the future. The following table provides a roll forward of the total proved reserves for the years ended December 31, 2015, 2014, and 2013, as well as proved developed and proved undeveloped reserves at the beginning and end of each respective year: Year Ended December 31, 2015 Crude Oil Natural Gas (Bbls) (Mcf) Boe (in thousands) Proved Developed and Undeveloped Reserves: Beginning of the year 0 0 0 Extensions and discoveries 0 0 0 Revisions of previous estimates 0 0 0 Purchases of reserves in place 1,418 0 1,418 Divestures of reserves in place (0 ) 0 (0 ) Production (4 ) 0 (4 ) End of the year 1,414 0 1,414 Proved Developed Reserves: Beginning of the year 0 0 0 End of the year 358 0 358 Proved Undeveloped Reserves: Beginning of the year 0 0 0 End of the year 1,056 0 1,056 Year Ended December 31, 2014 Crude Oil Natural Gas (Bbls) (Mcf) Boe (in thousands) Proved Developed and Undeveloped Reserves: Beginning of the year 0 0 0 Extensions and discoveries — — — Revisions of previous estimates — — — Purchases of reserves in place — — — Divestures of reserves in place — — — Production — — — End of the year 0 0 0 Proved Developed Reserves: Beginning of the year — — — End of the year — — — Proved Undeveloped Reserves: Beginning of the year — — — End of the year — — — Year Ended December 31, 2013 Crude Oil Natural Gas (Bbls) (Mcf) Boe (in thousands) Proved Developed and Undeveloped Reserves: Beginning of the year — — 0 Extensions and discoveries — — — Revisions of previous estimates — — — Purchases of reserves in place — — — Divestures of reserves in place — — — Production — — — End of the year — — 0 Proved Developed Reserves: Beginning of the year — — — End of the year — — — Proved Undeveloped Reserves: Beginning of the year — — — End of the year — — — Standardized Measure of Discounted Future Net Cash Flows The standardized measure of discounted future net cash flows does not purport to be, nor should it be interpreted to present, the fair value of the oil and natural gas reserves of the property. An estimate of fair value would take into account, among other things, the recovery of reserves not presently classified as proved, the value of unproved properties, and consideration of expected future economic and operating conditions. The estimates of future cash flows and future production and development costs as of December 31, 2015, 2014, and 2013 are based on the unweighted arithmetic average first-day-of-the-month price for the preceding 12-month period. Estimated future production of proved reserves and estimated future production and development costs of proved reserves are based on current costs and economic conditions. All wellhead prices are held flat over the forecast period for all reserve categories. The estimated future net cash flows are then discounted at a rate of 10%. The standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves is as follows: December 31, 2015 2014 2013 (in thousands) Future cash inflows $ 63,111 $ — $ — Future development costs (13,141 ) — — Future production costs (34,494 ) — — Future income tax expenses (2,974 ) — — Future net cash flows 12,502 — — 10% discount to reflect timing of cash flows (5,395 ) — — Standardized measure of discounted future net cash flows $ 7,107 $ — $ — In the foregoing determination of future cash inflows, sales prices used for oil and natural gas for December 31, 2015, 2014, and 2013, were estimated using the average price during the 12-month period, determined as the unweighted arithmetic average of the first-day-of-the-month price for each month. Prices were adjusted by lease for quality, transportation fees and regional price differentials. Future costs of developing and producing the proved gas and oil reserves reported at the end of each year shown were based on costs determined at each such year-end, assuming the continuation of existing economic conditions. Future income tax expenses are computed by applying the appropriate year-end statutory income tax rates to the estimated future pre-tax net cash flows relating to proved oil and natural gas reserves, less the tax bases of the properties involved. The future income tax expenses give effect to income tax deductions, credits, NOL’s and allowances relating to the proved oil and gas reserves. All cash flow amounts, including income taxes, are discounted at 10%. It is not intended that the FASB’s standardized measure of discounted future net cash flows represent the fair market value the Company’s proved reserves. The Company cautions that the disclosures shown are based on estimates of proved reserve quantities and future production schedules which are inherently imprecise and subject to revision, and the 10% discount rate is arbitrary. In addition, costs and prices as of the measurement date are used in the determinations, and no value may be assigned to probable or possible reserves. Changes in the standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves are as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Standardized measure of discounted future net cash flows at the beginning of the year $ 0 $ 0 $ 0 Sales of oil and natural gas, net of production costs — — — Purchase of minerals in place 7,107 — — Divestiture of minerals in place — — — Extensions and discoveries, net of future — — — Previously estimated development costs incurred — — — Net changes in prices and production costs — — — Changes in estimated future development costs — — — Revisions of previous quantity estimates — — — Accretion of discount — — — Net change in income taxes — — — Net changes in timing of production and other — — — Standardized measure of discounted future net cash flows $ 7,107 $ 0 $ 0

SUMMARY OF SIGNIFICANT ACCOUN24

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Organization	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 its common stock to 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 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	Principles of consolidation For the years ended December 31, 2015 and 2014, 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.
Use of estimates	Assumptions, Judgments, and Estimates In the course of preparing the financial statements, management makes various assumptions, judgments and estimates to determine the reported amounts of assets, liabilities, revenues and expenses, and in the disclosures of commitments and contingencies. Changes in these assumptions, judgments, and estimates will occur as a result of the passage of time and the occurrence of future events and, accordingly, actual results could differ from amounts previously established. The more significant areas requiring the use of assumptions, judgments, and estimates include: (1) oil and natural gas reserves; (2) cash flow estimates used in impairment tests of long-lived assets; (3) depreciation, depletion and amortization; (4) asset retirement obligations; (5) assigning fair value and allocating purchase price in connection with business combinations; (6) income taxes; (7) valuation of derivative instruments; and (8) accrued revenue and related receivables. Although management believes these estimates are reasonable, actual results could differ from these 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, 2015 and 2014. See Footnote No. 13, “Fair Value of Financial Instruments,” for further information. 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 Level 1: 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.
Inventories	Inventories Materials and supplies are valued at weighted-average cost and are reviewed periodically for obsolescence. Finished goods include oil and natural gas products, which are valued at the lower of cost or market.
Oil and Natural Gas Properties	Oil and Natural Gas Properties Effective, January 1, 2013, the Company changed its policy to account for its oil and natural gas exploration and development costs using the successful efforts method. 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. Exploratory well costs are capitalized pending further evaluation of whether economically recoverable reserves have been found. If economically recoverable reserves are not found, exploratory well costs are expensed as dry holes. All exploratory wells are evaluated for economic viability within one year of well completion, and the related capitalized costs are reviewed quarterly. Exploratory wells that discover potentially economic reserves in areas where a major capital expenditure would be required before production could begin and where the economic viability of that major capital expenditure depends upon the successful completion of further exploratory work in the area remain capitalized if the well finds a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. The costs of development wells are capitalized whether productive or nonproductive. We review our oil and natural gas producing properties for impairment on a field-by-field basis whenever events or changes in circumstances indicate that the carrying amount of such properties may not be recoverable. If the sum of the expected undiscounted future cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment charge is recorded based on the fair value of the asset. This may occur if a field contains lower than anticipated reserves or if commodity prices fall below a level that significantly effects anticipated future cash flows on the field. The fair value measurement used in the impairment test is generally calculated with a discounted cash flow model using several Level 3 inputs which are based upon estimates, the most significant of which is the estimate of net proved reserves. There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting future rates of production and timing of development expenditures, including many factors beyond our control. Reserve engineering is a subjective process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact manner, and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. The quantities of oil and natural gas that are ultimately recovered, production and operating costs, the amount and timing of future development expenditures and future oil and natural gas sales prices may all differ from those assumed in these estimates.
Property, Plant and Equipment	Property, Plant and Equipment The Company records all property and equipment at cost less accumulated depreciation. Improvements are capitalized while repairs and maintenance costs are expensed as incurred.
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.
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.
Concentrations of credit risk	Concentrations of credit risk Financial instruments that subject the Company to credit risk could consist of cash balances maintained in excess of federal depository insurance limits. The Company maintains its cash and cash equivalent balances with high credit quality financial institutions. At times, cash and cash equivalent balances may be in excess of Federal Deposit Insurance Corporation limits. To date, the Company has not experienced any such losses.
Restricted Cash	Restricted cash The Company has three bonds at financial institutions to meet financial bonding requirements in the state of California. As of December 31, 2015, restricted cash totaled $245,000.
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 is 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 Revenues associated with sales of oil are recognized when delivery has occurred and title has transferred, and if the collectability of the revenue is probable.
Asset retirement obligation	Asset Retirement Obligation The Company's asset retirement obligations (AROs) relate to future costs associated with plugging and abandonment of oil wells, removal of equipment and facilities from leased acreage and returning such land to its original condition. The fair value of a liability for an ARO is recorded in the period in which it is incurred (typically when the asset is installed at the production location), and the cost of such liability increases the carrying amount of the related long-lived asset by the same amount. The liability is accreted each period through charges to depreciation, depletion and amortization expense, and the capitalized cost is depleted on a units-of-production basis over the proved developed reserves of the related asset. Revisions to estimated AROs result in adjustments to the related capitalized asset and corresponding liability.
Revenue & Expense Recognition	Revenue & Expense Recognition The Company utilizes accrual basis of accounting when measuring financial position and operating results. The accrual basis recognizes revenues and expenses in the accounting period in which those transactions, events, or circumstances occur (goods or services are received) and become measurable. The Company recognizes oil 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. The Company recognizes its expenses when the expenses are incurred, not necessarily when they are paid. Expenses are generally incurred when the company receives tangible goods or services are provided.
Lease operating expense	Lease operating expense Operating expenses include field operating expenses, transportation expenses, compression charges, and an allocation of overhead that directly relates to production activities.
Depreciation, Depletion and Amortization	Depreciation, Depletion and Amortization The provision for DD&A-oil and natural gas production is calculated on a field-by-field basis using the unit-of-production method. Projected future production rates, the timing of future capital expenditures as well as changes in commodity prices, may significantly impact estimated reserve quantities. Depreciation, depletion and amortization —oil and natural gas production is dependent upon our estimates of total proved and proved developed reserves, which estimates incorporate various assumptions and future projections. These estimates are subject to change as additional information and technologies become available. Accordingly, oil and natural gas quantities ultimately recovered and the timing of production may be substantially different than projected. Reduction in reserve estimates may result in increased depreciation, depletion and amortization oil and natural gas production, which in turn reduces net earnings. Changes in reserve estimates are applied on a prospective basis. Such a decline in reserves may result from lower commodity prices, which may make it uneconomic to drill for and produce higher costs fields.
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 net operating loss carryforward for the year ended December 31, 2015 is $6,879,492 and the deferred tax asset is $1,330,049. The Company maintains a full valuation allowance for the deferred tax asset of $1,330,049. 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, 2015 and 2014, 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, 2015 and 2014, no income tax expense has been recorded.
Long-lived Assets	Long-lived Assets In accordance with the Financial Accounting Standards Board ("FASB") Accounts Standard Codification (ASC) ASC 360-10, "Property, Plant and Equipment," the carrying value of intangible assets and other long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. Proved oil properties are reviewed for impairment on a field-by-field basis, annually or when events and circumstances indicate a possible decline in the recoverability of the carrying amount of such property. The Company estimates the expected future cash flows of its oil properties and compares these undiscounted cash flows to the carrying amount of the oil properties to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will write down the carrying amount of the oil properties to fair value. The factors used to determine fair value include, but are not limited to, estimates of reserves, future commodity prices, future production estimates, estimated future capital expenditures, and discount rates commensurate with the risk associated with realizing the projected cash flows. Unproved oil and natural gas properties are periodically assessed for impairment on a project-by-project basis. The impairment assessment is affected by the results of exploration activities, commodity price outlooks, planned future sales or expiration of all or a portion of such projects. If the quantity of potential reserves determined by such evaluations is not sufficient to fully recover the cost invested in each project, the Company will recognize an impairment loss at that time.
Recent pronouncements	Recent pronouncements The Company has evaluated the recent accounting pronouncements through March 2016 and believes that none of them will have a material effect on the company’s financial statements.

OIL AND GAS PROPERTIES, BUILD25

OIL AND GAS PROPERTIES, BUILDINGS AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
Extractive Industries [Abstract]
The costs capitalized in oil and gas properties	2015 2014 (Restated) Oil and Natural Gas: Proved properties $ 1,734,223 $ — Unproved properties 2,444,608 621,860 4,178,831 621,860 Less accumulated depreciation, depletion, and amortization (5,524 ) — $ 4,173,307 $ 621,860
Schedule of capitalized exploratory well costs	Consideration paid to sellers: Cash consideration $ 2,000,000 Stock consideration 480,000 2,480,000 Recognized amounts of identifiable assets acquired and liabilities assumed: Proved developed and undeveloped properties 2,370,000 Other assets acquired 110,000 Asset retirement obligation 146,720 Other liabilities assumed — Total identifiable net assets $ 2,626,720

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of Income Tax provision for continuing operations	Year Ended December 31, 2015 2014 Current: Federal $ — $ — State 2 2 2 2 Deferred: Federal — — State — — — — Total $ 2 $ 2
Schedule of Deferred Tax Liabilities	Year Ended December 31, 2015 2014 Deferred income tax assets: Equity and deferred compensation 174 90 Net operating loss 2,092 1,117 State net operating loss carry forward 485 282 Other, net — — Total deferred tax assets 2,752 1,490 Valuation allowance (2,422 ) (1,490 ) 330 — Deferred income tax liabilities: Depreciation and depletion (330 ) — Net deferred income tax liabilities $ — $ —

FIXED ASSETS (Tables)

FIXED ASSETS (Tables)	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Schedule of Fixed Assets	2015 2014 Vehicle $ 33,572 $ 33,572 Website 1,375 1,375 Furniture 10,000 10,000 Computer Equipment 8,165 8,165 Less: Accumulated depreciation (39,252 ) (27,185 ) $ 13,860 $ 25,927

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Notes payable consists of the following at:	December December Note payable to an entity for the financing of insurance premiums, unsecured; 7.44% interest, due March 2016 $ 17,263 $ — Two notes payable to investors, unsecured, 10% interest; due October 31, 2016 $ 500,000 500,000 Debt discount for 500,000 warrants issued relating to notes payable (46,394 ) Promissory note to an entity; 10% interest, due December 2015 — 100,000 Debt discount for derivative liability embedded in promissory note due December 2015 — (13,308 ) Debt discount for 25,000 shares issued relating to note payable — (1,930 ) Three note payables to an entity for the financing of insurance premiums, unsecured; 8.63% interest, due April 2015; 14% interest, due February 2014; 11% interest, due August 2014 — 7,771 Notes Payable - Total $ 470,869 $ 592,533 Notes Payable, Related Party Term loan with a related party investor executed July 30, 2015, unsecured, 10% interest; due July 30, 2016 $ 3,500,000 — Total – Notes Payable & Notes Payable, Related Party $ 3,970,869 $ 592,533

ASSET RETIREMENT OBLIGATION (Ta

ASSET RETIREMENT OBLIGATION (Tables)	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Company announced its first oil production	Year Ended December 31, 2015 2014 Beginning balance at January 1 $ 48,923 $ 31,407 Liabilities incurred from property acquisition 146,720 17,517 Accretion expense 2,636 — Ending balance at December 31 $ 198,279 $ 48,923

STOCK OPTION PLAN (Tables)

STOCK OPTION PLAN (Tables)	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Summary of the status of all of the Company's stock options	Number Weighted-Average Aggregate Weighted-Average Remaining Life Outstanding at January 1, 2014 4,000,000 $ 0.20 $ — 4.68 Granted 800,000 $ 0.55 $ — 6.42 Exercised — $ 0.00 $ — — Cancelled — $ 0.00 $ — — Outstanding at December 31, 2014 4,800,000 $ 0.26 $ — 5.65 Exercisable at December 31, 2014 3,200,000 $ 0.22 $ — 3.79 Granted 4,700,000 $ 0.15 $ — 6.58 Exercised — $ 0.00 $ — — Cancelled — $ 0.00 $ — — Outstanding at December 31, 2015 9,500,000 $ 0.20 $ — 5.26 Exercisable at December 31, 2015 5,964,000 $ 0.21 $ — 4.55

WARRANTS (Tables)

WARRANTS (Tables)	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Summary of the status of all of the Company's stock warrants	Number Weighted-Average Weighted-Average Outstanding at January 1, 2014 800,000 $ 0.72 0.89 Granted 500,000 $ 0.34 1.33 Exercised 600,000 $ 0.34 — Cancelled — $ 0.00 — Outstanding at December 31, 2014 500,000 $ 0.34 1.33 Exercisable at December 31, 2014 500,000 $ 0.34 1.33 Granted — $ 0.00 — Exercised — $ 0.00 — Cancelled — $ 0.00 — Outstanding at December 31, 2015 500,000 $ 0.20 0.75 Exercisable at December 31, 2015 500,000 $ 0.20 0.75

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Derivative Liabilities on a Recurring Basis	Total Level 1 Level 2 Level 3 Derivatives liability, net December 31, 2015 $ -- $ -- $ -- $ -- December 31, 2014 $ 13,308 $ -- $ -- $ 13,308 Changes in Level 3 Fair Value Measurements The table below includes a rollforward of amounts included in the Company's Balance Sheet (including the change in fair value) for financial instruments classified by the Company within Level 3 of the fair value hierarchy. When a determination is made to classify a financial instrument within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources). Year Ended December 31 2015 2014 Fair value liability (asset), beginning of period $ 13,308 $ -- Transfer out of Level 3(1) $ (13,308) $ -- Realized and unrealized (gain) loss included in earnings $ -- $ -- Unrealized loss included in derivative liability $ -- $ 13,308 Settlements $ -- $ -- Fair value liability, end of period $ -- $ 13,308 (1) During the first quarter of 2015, the derivative liability was converted into shares of stock and these instruments were transferred to level 1. The inputs used to value common stock are defined as unadjusted quoted prices in active markets for identical assets or liabilities.

SUPPLEMENTAL DISCLOSURE OF OI33

SUPPLEMENTAL DISCLOSURE OF OIL AND NATURAL GAS OPERATIONS (Tables)	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Schedule of Oil and Natural Gas Reserves that are Attributable	Capitalized Costs December 31, 2015 2014 Oil and natural gas properties: (in thousands) Proved properties $ 1,734 $ — Unproved properties 2,445 622 Total oil and natural gas properties 4,179 622 Less accumulated depreciation, depletion and amortization (6 ) — Net oil and natural gas properties capitalized $ 4,173 $ 622 Costs Incurred for Oil and Natural Gas Producing Activities Year Ended December 31, 2015 2014 2013 Acquisition costs: (in thousands) Proved properties $ 1,200 $ — $ — Unproved properties 1,170 391 13 Development costs 944 611 123 Total $ 3,314 $ 1,002 $ 136
Schedule of Reserve Quantity Information	Year Ended December 31, 2015 2014 2013 Oil (per Bbl) $ 44.62 $ N/A $ N/A
Schedule of Proved Developed and Undeveloped Reserves	Year Ended December 31, 2015 Crude Oil Natural Gas (Bbls) (Mcf) Boe (in thousands) Proved Developed and Undeveloped Reserves: Beginning of the year 0 0 0 Extensions and discoveries 0 0 0 Revisions of previous estimates 0 0 0 Purchases of reserves in place 1,418 0 1,418 Divestures of reserves in place (0 ) 0 (0 ) Production (4 ) 0 (4 ) End of the year 1,414 0 1,414 Proved Developed Reserves: Beginning of the year 0 0 0 End of the year 358 0 358 Proved Undeveloped Reserves: Beginning of the year 0 0 0 End of the year 1,056 0 1,056 Year Ended December 31, 2014 Crude Oil Natural Gas (Bbls) (Mcf) Boe (in thousands) Proved Developed and Undeveloped Reserves: Beginning of the year 0 0 0 Extensions and discoveries — — — Revisions of previous estimates — — — Purchases of reserves in place — — — Divestures of reserves in place — — — Production — — — End of the year 0 0 0 Proved Developed Reserves: Beginning of the year — — — End of the year — — — Proved Undeveloped Reserves: Beginning of the year — — — End of the year — — — Year Ended December 31, 2013 Crude Oil Natural Gas (Bbls) (Mcf) Boe (in thousands) Proved Developed and Undeveloped Reserves: Beginning of the year — — 0 Extensions and discoveries — — — Revisions of previous estimates — — — Purchases of reserves in place — — — Divestures of reserves in place — — — Production — — — End of the year — — 0 Proved Developed Reserves: Beginning of the year — — — End of the year — — — Proved Undeveloped Reserves: Beginning of the year — — — End of the year — — —
Schedule of Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Natural Gas Reserves	The standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves is as follows: December 31, 2015 2014 2013 (in thousands) Future cash inflows $ 63,111 $ — $ — Future development costs (13,141 ) — — Future production costs (34,494 ) — — Future income tax expenses (2,974 ) — — Future net cash flows 12,502 — — 10% discount to reflect timing of cash flows (5,36 ) — — Standardized measure of discounted future net cash flows $ 7,107 $ — $ — Changes in the standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves are as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Standardized measure of discounted future net cash flows at the beginning of the year $ 0 $ 0 $ 0 Sales of oil and natural gas, net of production costs — — — Purchase of minerals in place 7,107 — — Divestiture of minerals in place — — — Extensions and discoveries, net of future — — — Previously estimated development costs incurred — — — Net changes in prices and production costs — — — Changes in estimated future development costs — — — Revisions of previous quantity estimates — — — Accretion of discount — — — Net change in income taxes — — — Net changes in timing of production and other — — — Standardized measure of discounted future net cash flows $ 7,107 $ 0 $ 0

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	12 Months Ended
	Dec. 31, 2015USD ($)
Restricted cash	$ 245,000
Net operating loss carryfoward	6,879,492
Deferred tax asset	$ 1,330,049
Buildings and Improvements | Minimum [Member]
Useful Life of Assets	5 years
Buildings and Improvements | Maximum [Member]
Useful Life of Assets	30 years
Machinery and Equipment | Minimum [Member]
Useful Life of Assets	3 years
Machinery and Equipment | Maximum [Member]
Useful Life of Assets	10 years

PREPAID INSURANCE (Details Narr

PREPAID INSURANCE (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Notes to Financial Statements
Prepaid insurance total	$ 29,870	$ 35,886
Insurance expense	125,801	54,702
Prepaid Deposit	$ 5,000	$ 5,000

OIL AND GAS PROPERTIES, BUILD36

OIL AND GAS PROPERTIES, BUILDINGS AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Oil and Natural Gas:
Proved properties	$ 1,734,223
Unproved properties	2,444,608
Oil and Natural Gas Total	4,178,831
Less accumulated depreciation, depletion, and amortization	(5,524)
Oil and Natural Gas, Net	$ 4,173,307
Restated [Member]
Oil and Natural Gas:
Proved properties
Unproved properties		$ 621,860
Oil and Natural Gas Total		$ 621,860
Less accumulated depreciation, depletion, and amortization
Oil and Natural Gas, Net		$ 621,680

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Current:
Federal
State	$ 2,000	$ 2,000
Total	$ 2,000	$ 2,000
Deferred:
Federal
State
Total
Total

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Deferred income tax assets:
Equity and deferred compensation	$ 174	$ 90
Net operating loss	2,092	1,117
State net operating loss carry forward	$ 485	$ 282
Other, net
Total deferred tax assets	$ 2,752	$ 1,490
Valuation allowance	(2,422)	$ (1,490)
Deferred Tax Assets, Net	330
Deferred income tax liabilities:
Depreciation and depletion	$ (330)
Total deferred tax liabilities
Net deferred income tax liabilities

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative)	Dec. 31, 2015USD ($)
Income Tax Disclosure [Abstract]
Operating Loss Carryforwards, Fedral	$ 5,977,000
Operating Loss Carryforwards, State	$ 5,977,000

FIXED ASSETS (Details)

FIXED ASSETS (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Less: Accumulated depreciation	$ (39,252)	$ (27,185)
Fixed assets, net	13,860	25,927
Vehicles [Member]
Fixed Assets	33,572	33,572
Website [Member]
Fixed Assets	1,375	1,375
Furniture [Member]
Fixed Assets	10,000	10,000
Computer Equipment [Member]
Fixed Assets	$ 8,165	$ 8,165

FIXED ASSETS (Details Narrative

FIXED ASSETS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Notes to Financial Statements
Depreciation expense	$ 12,067	$ 14,869

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Notes to Financial Statements
Interest expense	$ (220,413)	$ (202,902)
Interest Expense Notes Payable	209,168	43,819
Amortization of Debt Discount	$ 11,665	$ 159,083

ASSET RETIREMENT OBLIGATION (De

ASSET RETIREMENT OBLIGATION (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Asset Retirement Obligation Details
Beginning Balance	$ 48,923	$ 31,407
Liabilities acquired from property acquisition	146,720	$ 17,517
Accretion expense	2,636
Ending Balance	$ 51,559	$ 48,923

STOCK OPTION PLAN (Details)

STOCK OPTION PLAN (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Number of Options
Outstanding at January 1	4,800,000	4,000,000
Granted	4,700,000	800,000
Exercised
Cancelled
Outstanding at December 31	9,500,000	4,800,000
Exercisable at December 31	5,964,000	3,200,000
Weighted-Average Exercise Price
Outstanding at January 1	$ 0.26	$ 0.20
Granted	0.15	0.55
Exercised	.00	0
Cancelled	.00	0
Outstanding at December 31	0.20	0.26
Exercisable at December 31	$ 0.21	$ 0.22
Weighted-Average Remaining Life (Years)
Outstanding at January 1	5 years 7 months 24 days	4 years 8 months 4 days
Granted	6 years 6 months 28 days	6 years 5 months 1 day
Outstanding at December 31	5 years 3 months 3 days	5 years 7 months 24 days
Exercisable at December 31	4 years 6 months 17 days	3 years 9 months 14 days

WARRANTS (Details)

WARRANTS (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Number of Options
Outstanding at January 1	4,800,000	4,000,000
Granted	4,700,000	800,000
Exercised
Cancelled
Outstanding at December 31	9,500,000	4,800,000
Exercisable at December 31	5,964,000	3,200,000
Weighted-Average Exercise Price
Outstanding at January 1	$ 0.26	$ 0.20
Granted	0.15	0.55
Exercised	.00	0
Cancelled	.00	0
Outstanding at December 31	0.20	0.26
Exercisable at December 31	$ 0.21	$ 0.22
Weighted-Average Remaining Life (Years)
Outstanding at January 1	5 years 7 months 24 days	4 years 8 months 4 days
Granted	6 years 6 months 28 days	6 years 5 months 1 day
Outstanding at December 31	5 years 3 months 3 days	5 years 7 months 24 days
Exercisable at December 31	4 years 6 months 17 days	3 years 9 months 14 days
Warrant [Member]
Number of Options
Outstanding at January 1	500,000	800,000
Granted		500,000
Exercised		600,000
Cancelled
Outstanding at December 31	500,000	500,000
Exercisable at December 31	500,000	500,000
Weighted-Average Exercise Price
Outstanding at January 1	$ 0.34	$ 0.72
Granted		0.34
Exercised		0.34
Cancelled	$ 0	0
Outstanding at December 31	0.20	0.34
Exercisable at December 31	$ 0.20	$ 0.34
Weighted-Average Remaining Life (Years)
Outstanding at January 1	9 months	10 months 20 days
Outstanding at December 31	9 months	1 year 3 months 28 days
Exercisable at December 31	9 months	1 year 3 months 28 days

FAIR VALUE MEASUREMENT (Details

FAIR VALUE MEASUREMENT (Details) - Fair Value, Measurements, Recurring [Member] - Liabilities [Member] - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value of Liabilites		$ 13,308
Fair Value, Inputs, Level 1 [Member]
Fair Value of Liabilites
Fair Value, Inputs, Level 2 [Member]
Fair Value of Liabilites
Fair Value, Inputs, Level 3 [Member]
Fair Value of Liabilites		$ 13,308

FAIR VALUE MEASUREMENT (Detai47

FAIR VALUE MEASUREMENT (Details 2) - Fair Value, Measurements, Recurring [Member] - Liabilities [Member] - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair value liability (asset), beginning of period	$ 13,308
Fair value liability, end of period		$ 13,308
Fair Value, Inputs, Level 3 [Member]
Fair value liability (asset), beginning of period	$ 13,308
Transfer out of Level 3	$ (13,308)
Realized and unrealized (gain) loss included in earnings
Unrealized loss included in derivative liability		$ 13,308
Settlements
Fair value liability, end of period		$ 13,308

SUPPLEMENTAL DISCLOSURE OF OI48

SUPPLEMENTAL DISCLOSURE OF OIL AND NATURAL GAS OPERATIONS (Details) - Oil and Natural Gas Properties [Member] - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Oil and natural gas properties:
Proved properties	$ 1,734,000
Unproved properties	2,445,000	$ 622,000
Total oil and natural gas properties	4,179,000	$ 622,000
Less accumulated depreciation, depletion and amortization	(6,000)
Net oil and natural gas properties capitalized	4,173,000	$ 622,000
Acquisition costs:
Proved properties	1,200,000
Unproved properties	1,170,000	$ 391,000	$ 13,000
Development costs	944,000	611,000	123,000
Total	$ 3,314,000	$ 1,002,000	$ 136,000

SUPPLEMENTAL DISCLOSURE OF OI49

SUPPLEMENTAL DISCLOSURE OF OIL AND NATURAL GAS OPERATIONS (Details 2) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Supplemental Disclosure Of Oil And Natural Gas Operations Details 2
Future cash inflows	$ 63,111,000
Future development costs	(13,141,000)
Future production costs	(34,494,000)
Future income tax expenses	(2,974,000)
Future net cash flows	12,502,000
Ten percent discount to reflect timing of cash flows	(536,000)
Standardized measure of discounted future net cash flows	$ 7,107,000	$ 0	$ 0	$ 0

SUPPLEMENTAL DISCLOSURE OF OI50

SUPPLEMENTAL DISCLOSURE OF OIL AND NATURAL GAS OPERATIONS (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Supplemental Disclosure Of Oil And Natural Gas Operations Details 3
Standardized measure of discounted future net cash flows at the beginning of the year	$ 0	$ 0	$ 0
Sales of oil and natural gas, net of production costs
Purchase of minerals in place	$ 7,107,000
Divestiture of minerals in place
Extensions and discoveries, net of future development costs
Previously estimated development costs incurred during the period
Net changes in prices and production costs
Changes in estimated future development costs
Revisions of previous quantity estimates
Accretion of discount
Net change in income taxes
Net changes in timing of production and other
Standardized measure of discounted future net cash flows at the end of the year	$ 7,107,000	$ 0	$ 0