Citadel Exploration (COIL) 10-Q 9 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 09, 2017
Document And Entity Information
Entity Registrant Name	Citadel Exploration, Inc.
Entity Central Index Key	1,482,075
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		41,348,002
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash	$ 80,795	$ 188,793
Other receivable	17,457	7,142
Prepaid expenses	73,834	33,436
Product inventory	4,881	4,881
Total current assets	176,967	234,252
Deposits	9,900	9,900
Restricted cash	200,000	245,000
Oil and gas properties (successful efforts basis), buildings and equipment, net	6,427,174	6,209,546
Fixed asset, net	17,641	18,530
Total assets	6,831,682	6,717,228
Current liabilities:
Accounts payable and accrued payables	1,710,201	1,584,258
Accrued interest payable	746,879	780,049
Notes payable, net	547,439	526,880
Preferred stock payable		6,514,600
Total current liabilities	3,004,519	9,405,787
Asset retirement obligation	220,729	217,212
Production payment liability	300,000	300,000
Total liabilities	3,525,248	9,922,999
Stockholders' equity:
Common stock, $0.001 par value, 300,000,000 shares authorized, 41,348,002 and 39,314,000 shares issued and outstanding as of June 30, 2017, and December 31, 2016, respectively	41,348	39,314
Additional paid-in capital	6,194,826	5,790,060
Accumulated deficit	(10,012,040)	(9,035,145)
Total stockholders' equity	3,306,434	(3,205,771)
Total liabilities and stockholders' equity	6,831,682	$ 6,717,228
Series A Preferred Stock [Member]
Stockholders' equity:
Series A Preferred stock, $20.00 par value, 500,000 shares authorized, 354,115 shares issued and outstanding as of June 30, 2017	$ 7,082,300

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, issued	41,348,002	39,314,000
Common stock, outstanding	41,348,002	39,314,000
Series A Preferred Stock [Member]
Preferred stock, Par Value	$ 20
Preferred Stock, shares authorized	500,000
Preferred Stock, issued	354,115	13,300
Preferred Stock, outstanding	354,115

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenue	$ 49,723	$ 6,006	$ 86,648	$ 26,762
Operating expenses:
Lease operating expense	74,094	30,326	122,775	110,084
General and administrative	52,907	61,673	118,189	131,057
Depreciation, depletion and amortization	10,024	4,110	18,122	9,151
Professional fees	59,969	91,639	123,117	138,259
Executive compensation	152,295	125,652	306,885	261,699
Total operating expenses	349,289	313,400	689,088	650,250
Loss from operations	(299,566)	(307,394)	(602,440)	(623,488)
Other expenses:
Interest expense	(349,235)	(14,245)	(374,567)	(132,553)
Total other expenses	(349,235)	(14,245)	(374,567)	(132,553)
Loss before provision for income taxes	(648,801)	(321,639)	(977,007)	(756,041)
Provision for income taxes			(112)
Net loss	$ (648,801)	$ (321,639)	$ (976,895)	$ (756,041)
Weighted average number of common shares - outstanding - basic and diluted	40,336,620	34,937,077	40,336,620	34,937,077
Net loss per share - basic and diluted	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.02)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
OPERATING ACTIVITIES
Net loss	$ (976,895)	$ (756,041)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and accretion	18,122	9,151
Amortization of debt discount		1,832
Preferred stock dividend expense	406,800
Changes in operating assets and liabilities:
Increase/(Decrease) in other receivable	(10,315)	18,133
Decrease in prepaid expenses	(40,398)	(61,793)
Decrease in restricted cash	45,000
Increase in accounts payable and accrued payables	218,643	505,479
Increase (decrease) in accrued interest payable	(33,170)	121,644
Net cash used in operating activities	(372,212)	(161,595)
INVESTING ACTIVITIES
Exploration and development of oil props	(229,129)	(1,408,873)
Purchase of fixed assets	(2,215)
Asset retirement obligation
Net cash used in investing activities	(231,344)	(1,408,873)
FINANCING ACTIVITIES
Proceeds from sale of preferred stock, net of costs	475,000	1,425,000
Proceeds from notes payable	67,552	68,736
Repayments for notes payable	(46,994)	(31,400)
Net cash provided by financing activities	495,558	1,462,336
NET CHANGE IN CASH	(107,998)	(108,132)
CASH AT BEGINNING OF YEAR	188,793	146,555
CASH AT END OF YEAR	80,795	38,428
SUPPLEMENTAL INFORMATION:
Interest paid
Income taxes paid	112
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of preferred stock for settlement of note payable - related party		3,500,000
Conversion from preferred stock issuable	6,514,600
Issuance of common stock for preferred stock interest	406,800
Issuance of preferred stock for services	$ 92,700

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The interim condensed consolidated financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim condensed consolidated financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2016 and notes thereto included in the Company’s 10-K annual report and all amendments. The Company follows the same accounting policies in the preparation of interim reports. Results of operations for the interim period are not indicative of annual results. Principles of consolidation The condensed consolidated financial statements include the accounts of Citadel Exploration, Inc., Citadel Exploration, LLC and Citadel Kern Bluff, LLC, the Company’s wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. Citadel Exploration, Inc., Citadel Exploration, LLC and Citadel Kern Bluff, 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 properties in California. Revenue Recognition Sales of oil are recognized when the product has been delivered to a custody transfer point, persuasive evidence of a sales arrangement exists, the rights and responsibility of ownership pass to the purchaser upon delivery, collection of revenue from the sale is reasonably assured, and the sales price is fixed or determinable. Impairment The Company evaluates the impairment of its proved oil and natural gas properties on a field-by-field basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The carrying values of proved properties are reduced to fair value when the expected undiscounted future cash flows are less than net book value. The fair values of proved properties are measured using valuation techniques consistent with the income approach, converting future cash flows to a single discounted amount. Significant inputs used to determine the fair values of proved properties include estimates of: (i) reserves; (ii) future operating and development costs; (iii) future commodity prices; and (iv) a market-based weighted average cost of capital rate. As of June 30, 2017, management believes that no impairment indicators exist. Use of estimates The preparation of condensed consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates. Fair value of financial instruments The carrying value of the Company’s financial instruments, including cash, due to shareholders/related parties and accounts and other payables approximate their fair values due to the immediate or short-term maturity of these instruments. It is management’s opinion that the Company is not exposed to significant interest, price or credit risks arising from these financial instruments. Cash and cash equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. The Company had no cash equivalents as of June 30, 2017 and December 31, 2016. Earnings per share The Company follows ASC Topic 260 to account for the earnings per share. Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. Recent pronouncements The Company has evaluated the recent accounting pronouncements through June 30, 2017 and believes that none of them will have a material effect on the company’s condensed consolidated financial statements.

GOING CONCERN

GOING CONCERN	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
GOING CONCERN	NOTE 2 – GOING CONCERN The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. 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 an accumulated deficit in the amount of $10,012,040 as of June 30, 2017. In addition, the Company’s development activities since inception have been financially sustained through debt and equity financing. There can be no assurance that the Company will be successful to raise sufficient cash to operate over the 12 months immediately following the issuance of its financial reports. 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 condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

OIL AND GAS PROPERTIES, BUILDIN

OIL AND GAS PROPERTIES, BUILDINGS AND EQUIPMENT	6 Months Ended
	Jun. 30, 2017
Extractive Industries [Abstract]
OIL AND GAS PROPERTIES, BUILDINGS AND EQUIPMENT	NOTE 3 – OIL AND GAS PROPERTIES Oil and natural gas properties, buildings and equipment consist of the following: June 30, 2017 (unaudited) December 31, 2016 Oil and Natural Gas: Proved properties $ 3,749,973 $ 3,751,401 Unproved properties 1,170,000 1,170,000 Facilities 1,533,011 1,443,060 6,452,984 6,364,461 Less oil property impairment - (140,606) Less accumulated depreciation, depletion, and amortization (25,810) (14,309) $ 6,427,174 $ 6,209,546 For the six months ending June 30, 2017 total depreciation and depletion expense totaled $3,259 and $8,242, respectively

RESTRICTED CASH

RESTRICTED CASH	6 Months Ended
	Jun. 30, 2017
Cash and Cash Equivalents [Abstract]
RESTRICTED CASH	NOTE 4 – RESTRICTED CASH Restricted cash consisted of a blanket bond totaling $200,000. Bonds are required in the normal course of business in the oil and gas industry. The blanket bond, which will cover 50 wells, was purchased in August 2015 following the acquisition of the Kern Bluff Oil Field. As such, the Company released the first two bonds totaling $45,000 during February 2017.

DEPOSITS

DEPOSITS	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
DEPOSITS	NOTE 5 – DEPOSITS The Company had deposits at December 31, 2016 and June 30, 2017 totaling $9,900.

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
NOTES PAYABLE	NOTE 6 – NOTES PAYABLE Notes payable consists of the following: June 30, 2017 (unaudited) December 31, 2016 (unaudited) Note payable to an entity for the financing of insurance premiums, unsecured; 7.75% interest, matured April 2017 and currently in default $ 47,439 $ $ 26,880 Two notes payable to investors, unsecured, 10% interest; due September 30, 2016 $ 500,000 $ 500,000 Total – Notes Payable & Notes Payable, Related Party $ 547,439 $ $ 526,880 In March 2014, the Company closed on a $500,000 bridge loan from two individuals. These notes have a 180 day term and bear interest of 10%. The $500,000 of notes are due on October 31, 2015. Additionally, the investors received 500,000 warrants to purchase the Company’s stock at $0.34 per share for a term of two years. In December of 2015, the maturity date of this bridge loan was extended until September 30, 2016, in return the exercise price of the warrant was reduced to $0.20 and the term of the warrants also extended to until September 30, 2016. At September 30, 2016, the maturity date was further extended to March 31, 2017. The exercise price of the warrant did not change during the extension to March 31, 2017. As of March 31, 2017, the notes have matured and currently due. The Company is currently negotiating an extension and or new debt facility to meet the obligations of the notes. Until that time the notes are currently in default and due upon notice from the investors. As of this filing, the investors have not served notice and are working with the Company on refinancing.

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT)	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
STOCKHOLDERS' EQUITY (DEFICIT)	NOTE 7 – STOCKHOLDERS’ EQUITY (DEFICIT) The Company is authorized to issue 300,000,000 shares of its $0.001 par value common stock. In March of 2016, the Company approved the sale of up to 500,000 shares of Series A Convertible Participating Preferred Stock. The Company sold 175,000 shares of Series A Convertible Participating Preferred Stock to convert its $3,500,000 related party note payable to preferred stock. In addition, the Company has sold 21,250 shares of Series A Convertible Participating Preferred Stock for cash in the amount of $425,000 through March 31, 2016. In June of 2016, the Company sold 50,000 shares of Series A Convertible Participating Preferred Stock for cash in the amount of $1,000,000. In September of 2016, the Company sold 26,500 shares of Series A Convertible Participating Preferred Stock for cash in the amount of $530,000. The Company issued 500,000 shares of common stock for cash in the amount of $100,000. In October of 2016, the Company sold 10,350 shares of Series A Convertible Participating Preferred Stock for cash in the amount of $207,000. In November of 2016, the Company sold 29,330 shares of Series A Convertible Participating Preferred Stock for cash in the amount of $586,600. In December of 2016, the Company sold 13,300 shares of Series A Convertible Participating Preferred Stock for cash in the amount of $266,000. In February of 2017, the Company sold 5,000 shares of Series A Convertible Participating Preferred Stock for cash in the amount of $100,000. In March of 2017, the Company sold 5,000 shares of Series A Convertible Participating Preferred Stock for cash in the amount of $100,000. In March of 2017, we issued 340,365 shares of Series A Preferred Shares to investors that subscribed to the offering in 2016. In March of 2017, we paid a special common stock dividend to holders of the Series A Preferred Stock as accrued interest during the offering period of the Series A Preferred. Series A Preferred investors received 2,034,002 shares valued at $0.20 per share equal to the conversion price of the Series A Preferred. In May of 2017, the Company sold 5,000 shares of Series A Convertible Participating Preferred Stock for cash in the amount of $100,000. In June of 2017, the Company sold 8,750 shares of Series A Convertible Participating Preferred Stock for cash in the amount of $175,000.

STOCK OPTION PLAN

STOCK OPTION PLAN	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
STOCK OPTION PLAN	NOTE 8 – STOCK OPTION PLAN Under the Stock Option Plan approved by Board of Directors on September 1, 2012 (the “2012 Stock Option”), the Company issued $264,494 worth of stock based compensation, or a total of 4,800,000 shares of options through December 31, 2014. 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 one member 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 3 month period ended September 30, 2015, $152,198 was recorded as a stock based compensation expense. The following is a summary of the status of all of the Company’s stock options as of June 30, 2017 and changes during the period ended on that date: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Life (Years) Outstanding at June 30, 2017 9,500,000 $ 0.20 3.80 Granted - $ 0.00 - Exercised - $ 0.00 - Cancelled - $ 0.00 - Outstanding at June 30, 2017 9,500,000 $ 0.20 3.80 Exercisable at June 30, 2017 9,500,000 $ 0.20 3.80

WARRANTS

WARRANTS	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
WARRANTS	NOTE 9 – WARRANTS In March 2014, the Company closed on a $500,000 180-day bridge loan with two investors. The loans bear interest of 10%. Additionally, the investors were granted a total of 500,000 stock warrants to purchase stock at $1.00 per share for a period of two years valued at $147,102. The total fair value of these warrants at the date of grant was determined using the Black Scholes option pricing model with an expected life of 2 years, a risk-free interest rate of 0.45%, a dividend yield of 0% and expected volatility of 333%. In September of 2014, the maturity date of this bridge loan was extended by 30 days; in return the exercise price of the warrant was reduced to $0.34 per share, with the original two-year term remaining. Due to the change in the terms of the warrants, the Company recalculated the value of the warrants to be $85,325. Accordingly, the Company recognized a gain on the extinguishment of $73,573 in September of 2014. These warrants have now expired, due to the bridge loan currently being due and in default.

SUMMARY OF SIGNIFICANT ACCOUN15

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The interim condensed consolidated financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim condensed consolidated financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2016 and notes thereto included in the Company’s 10-K annual report and all amendments. The Company follows the same accounting policies in the preparation of interim reports. Results of operations for the interim period are not indicative of annual results.
Principles of consolidation	Principles of consolidation The condensed consolidated financial statements include the accounts of Citadel Exploration, Inc., Citadel Exploration, LLC and Citadel Kern Bluff, LLC, the Company’s wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. Citadel Exploration, Inc., Citadel Exploration, LLC and Citadel Kern Bluff, 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 properties in California.
Revenue recognition	Revenue Recognition Sales of oil are recognized when the product has been delivered to a custody transfer point, persuasive evidence of a sales arrangement exists, the rights and responsibility of ownership pass to the purchaser upon delivery, collection of revenue from the sale is reasonably assured, and the sales price is fixed or determinable.
Asset retirement obligation	Impairment The Company evaluates the impairment of its proved oil and natural gas properties on a field-by-field basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The carrying values of proved properties are reduced to fair value when the expected undiscounted future cash flows are less than net book value. The fair values of proved properties are measured using valuation techniques consistent with the income approach, converting future cash flows to a single discounted amount. Significant inputs used to determine the fair values of proved properties include estimates of: (i) reserves; (ii) future operating and development costs; (iii) future commodity prices; and (iv) a market-based weighted average cost of capital rate. As of June 30, 2017, management believes that no impairment indicators exist.
Use of Estimates	Use of estimates The preparation of condensed consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates.
Fair value of financial instruments	Fair value of financial instruments The carrying value of the Company’s financial instruments, including cash, due to shareholders/related parties and accounts and other payables approximate their fair values due to the immediate or short-term maturity of these instruments. It is management’s opinion that the Company is not exposed to significant interest, price or credit risks arising from these financial instruments.
Cash and Cash Equivalents	Cash and cash equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. The Company had no cash equivalents as of June 30, 2017 and December 31, 2016.
Earnings per share	Earnings per share The Company follows ASC Topic 260 to account for the earnings per share. Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.
Recent pronouncements	Recent pronouncements The Company has evaluated the recent accounting pronouncements through June 30, 2017 and believes that none of them will have a material effect on the company’s condensed consolidated financial statements.

OIL AND GAS PROPERTIES, BUILD16

OIL AND GAS PROPERTIES, BUILDINGS AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2017
Extractive Industries [Abstract]
Schedule of Oil and natural gas properties, buildings and equipment	Oil and natural gas properties, buildings and equipment consist of the following: June 30, 2017 (unaudited) December 31, 2016 Oil and Natural Gas: Proved properties $ 3,749,973 $ 3,751,401 Unproved properties 1,170,000 1,170,000 Facilities 1,533,011 1,443,060 6,452,984 6,364,461 Less oil property impairment - (140,606) Less accumulated depreciation, depletion, and amortization (25,810) (14,309) $ 6,427,174 $ 6,209,546

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Schedule of Notes payable	Notes payable consists of the following: June 30, 2017 (unaudited) December 31, 2016 (unaudited) Note payable to an entity for the financing of insurance premiums, unsecured; 7.75% interest, matured April 2017 and currently in default $ 47,439 $ $ 26,880 Two notes payable to investors, unsecured, 10% interest; due September 30, 2016 $ 500,000 $ 500,000 Total – Notes Payable & Notes Payable, Related Party $ 547,439 $ $ 526,880

STOCK OPTION PLAN (Tables)

STOCK OPTION PLAN (Tables)	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Summary of the status of all of the Company's stock options	The following is a summary of the status of all of the Company’s stock options as of June 30, 2017 and changes during the period ended on that date: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Life (Years) Outstanding at June 30, 2017 9,500,000 $ 0.20 3.80 Granted - $ 0.00 - Exercised - $ 0.00 - Cancelled - $ 0.00 - Outstanding at June 30, 2017 9,500,000 $ 0.20 3.80 Exercisable at June 30, 2017 9,500,000 $ 0.20 3.80

OIL AND GAS PROPERTIES, BUILD19

OIL AND GAS PROPERTIES, BUILDINGS AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Oil and Natural Gas:
Proved properties	$ 3,749,973	$ 3,751,401
Unproved properties	1,170,000	1,170,000
Facilities	1,533,011	1,443,060
Oil and Natural Gas Total	6,452,984	6,364,461
Less oil property impairment		(140,606)
Less accumulated depreciation, depletion, and amortization	(25,810)	(14,309)
Oil and Natural Gas, Net	$ 6,427,174	$ 6,209,546

RESTRICTED CASH (Details Narrat

RESTRICTED CASH (Details Narrative) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Restricted Cash Details Narrative
Restricted cash	$ 200,000	$ 245,000

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Notes Payable Details Narrative
Note payable to an entity for the financing of insurance premiums, unsecured; 7.75% interest, due March 2017	$ 47,439	$ 26,880
Two notes payable to investors, unsecured, 10% interest; due September 30, 2016	500,000	500,000
Notes payable	$ 547,439	$ 526,880

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT) (Details Narrative) - USD ($)	1 Months Ended
	Mar. 30, 2017	Feb. 28, 2017	Dec. 31, 2016	Nov. 30, 2016	Oct. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2017	Mar. 30, 2016
Common stock, shares authorized			300,000,000						300,000,000
Common Stock Issued			39,314,000			500,000			41,348,002
Proceeds from issue of Common Stock						$ 100,000
Series A Preferred Stock [Member]
Preferred Stock, issued	5,000	5,000	13,300	29,330	10,350	26,500	50,000		354,115	175,000
Proceeds from issue of Preferred Stock	$ 100,000	$ 100,000	$ 266,000	$ 586,600	$ 207,000	$ 530,000	$ 1,000,000	$ 425,000
Conversion of related party note payable to preferred stock										$ 3,500,000

STOCK OPTION PLAN (Details)

STOCK OPTION PLAN (Details)	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Number of Options
Outstanding at June 30 | shares	9,500,000
Granted | shares
Exercised | shares
Cancelled | shares
Outstanding at June 30 | shares	9,500,000
Exercisable at June 30 | shares	9,500,000
Weighted-Average Exercise Price
Outstanding at June 30 | $ / shares	$ 0.20
Granted | $ / shares	.00
Exercised | $ / shares	0
Cancelled | $ / shares	0
Outstanding at June 30 | $ / shares	0.20
Exercisable at June 30 | $ / shares	$ 0.20
Weighted-Average Remaining Life (Years)
Outstanding at June 30	3 years 9 months 18 days
Outstanding at June 30	3 years 9 months 18 days
Exercisable at June 30	3 years 9 months 18 days