Diversified Resources 10-K/A 14 Mar 16 2015 FY Annual report (amended) Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Oct. 31, 2015	Apr. 30, 2015
Document and Entity Information:
Entity Registrant Name	Diversified Resources Inc.
Document Type	10-K
Document Period End Date	Oct. 31, 2015
Trading Symbol	divr
Amendment Flag	false
Entity Central Index Key	1,509,692
Current Fiscal Year End Date	--10-31
Entity Common Stock, Shares Outstanding		23,165,926
Entity Public Float		$ 0
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Oct. 31, 2015		Oct. 31, 2014
CURRENT ASSETS
Cash	$ 21,706		$ 209,054
Accounts receivable, trade	67,189		130,495
Accounts receivable, other	313,989		0
Prepaid expenses	0		7,948
Total current assets	402,884		347,497
LONG-LIVED ASSETS
Property and Equipment	1,846,111	[1]	1,904,403	[2]
Bonds and deposits	167,867		167,867
Oil and gas properties - proved (successful efforts method)	1,282,876	[3]	3,806,153	[4]
Oil and gas properties - proved undeveloped (successful efforts method)	1,241,724		1,209,724
Oil and gas properties - unproved (successful efforts method)	2,932,730		2,932,730
Total assets	7,874,192		10,368,374
CURRENT LIABILITIES
Accounts payable	387,028		221,880
Accounts payable, related party	147,736		145,473
Current portion of notes payable	319,632		373,846
Note payable - related party	107,070		0
Accrued interest, related party	15,287		4,579
Accrued expenses	405,669		560,548
Total current liabilities	1,382,422		1,306,326
LONG TERM LIABILITIES
Long term debt, related party	0		107,070
Long term debt	3,498,108		2,294,943
Asset retirement obligation	321,101		290,312
COMMITMENTS AND CONTINGENT LIABILITIES	0		0
STOCKHOLDERS' EQUITY
Preferred stock	301		0
Common stock	23,216		22,502
Additional paid in capital	9,741,759		8,629,554
Accumulated deficit	(7,092,714)		(2,282,333)
Total stockholders' equity	2,672,562		6,369,723
Total liabilities and stockholders' equity	$ 7,874,192		$ 10,368,374
[1]	Net of accumulated depreciation of $322,281.
[2]	Net of accumulated depreciation of $149,957.
[3]	Net of accumulated depletion and impairment of $2,623,339.
[4]	Net of accumulated depletion and impairment of $100,062.

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Oct. 31, 2015	Oct. 31, 2014
Statement of Financial Position
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Preferred Stock, Shares Issued	301,000	0
Preferred Stock, Shares Outstanding	301,000	0
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	450,000,000	450,000,000
Common Stock, Shares Issued	23,215,926	22,502,206
Common Stock, Shares Outstanding	23,215,926	22,502,206

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Operating revenues
Oil and gas sales	$ 602,980	$ 161,623
Total operating revenues	602,980	161,623
Operating expenses
Exploration costs, including dry holes	16,513	41,802
Lease operating expenses	606,853	290,588
General and administrative	1,695,792	1,510,367
Impairment of oil and gas properties	2,427,968	0
Depreciation expense	179,347	27,895
Depletion expense	88,287	34,475
Accretion expense	30,789	24,054
Production tax and royalty expense	240,354	30,225
Total operating expenses	5,285,903	1,959,406
(Loss) from operations	(4,682,923)	(1,797,783)
Other income (expense)
Bargain purchase gain	0	2,584,184
Interest expense	(127,458)	(60,281)
Other income (expense), net	(127,458)	2,523,903
Net income (loss)	$ (4,810,381)	$ 726,120
Net income (loss) per common share basic and diluted	$ (0.21)	$ 0.04
Weighted average shares outstanding basic and diluted	23,074,893	18,792,650

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity for the Years Ended October 31, 2015 and 2014 - USD ($)		Total	Common Stock		Preferred Stock		Additional Paid-in Capital	Accumulated Deficit
Balance, Value at Oct. 31, 2013		$ 1,740,248	$ 14,558		$ 0		$ 4,734,143	$ (3,008,453)
Balance, Shares at Oct. 31, 2013		0	14,558,150		0		0	0
Recapitalization, Value	[1]	$ (297,730)	$ 5,250		$ 0		$ (302,980)	$ 0
Common stock issued for cash, Value		$ 2,929,646	$ 4,474		$ 0		$ 2,925,172	$ 0
Common stock issued for cash, Shares		0	4,474,089		0		0	0
Acquisition, Value	[2]	$ 973,698	$ 900		$ 0		$ 972,798	$ 0
Acquisition, Shares		0	900,000	[2]	0	[2]	0	0
Common stock issued for lease expense, Value		$ 0	$ 0		$ 0		$ 0	$ 0
Common stock issued for lease expense, Shares		0	0		0		0	0
Warrants issued with debt		$ 0	$ 0		$ 0		$ 0	$ 0
Profit (loss)		726,120	0		0		0	726,120
Balance, Value at Oct. 31, 2014		$ 6,369,723	$ 22,502		$ 0		$ 8,629,554	$ (2,282,333)
Balance, Shares at Oct. 31, 2014		22,502,206	22,502,206		0		0	0
Common stock issued for cash, Value		$ 663,720	$ 664		$ 0		$ 663,056	$ 0
Common stock issued for cash, Shares		0	663,720		0		0	0
Common stock issued for lease expense, Value		$ 22,500	$ 50		$ 0		$ 22,450	$ 0
Common stock issued for lease expense, Shares		0	50,000		0		0	0
Warrants issued with debt		$ 126,000	$ 0		$ 0		$ 126,000	$ 0
Profit (loss)		(4,810,381)	0		0		0	(4,810,381)
Balance, Value at Oct. 31, 2015		$ 2,672,562	$ 23,216		$ 301		$ 9,741,759	$ (7,092,714)
Balance, Shares at Oct. 31, 2015		23,215,926	23,215,926		301,000		0	0
[1]	With Natural Resources Group, Inc.
[2]	Of BIYA.

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended October 31, 2015 and 2014 - USD ($)		12 Months Ended
		Oct. 31, 2015	Oct. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$ (4,810,381)	$ 726,120
Adjustments to reconcile net income (loss) to net cash (used in) operating activities:
Interest paid with common stock		22,500	0
Bargain purchase gain		0	(2,584,184)
Depreciation expense		179,347	27,895
Depletion expense		88,287	34,475
Accretion expense		30,789	24,054
Impairment of oil and gas properties		2,427,968	0
Changes in assets and liabilities:
Accounts receivable, trade (increase/decrease)		63,303	34,860
Accounts receivable, other (increase/decrease)		(313,989)	0
Prepaid expense (increase/decrease)		7,948	11,924
Bonds and deposits (increase/decrease)		0	21,042
Accounts payable (increase/decrease)		165,148	2,731
Accounts payable - related parties (increase/decrease)		12,970	15,112
Accrued expenses (increase/decrease)		(133,880)	(819,829)
Net cash (used in) operating activities		(2,259,990)	(2,505,800)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for oil and gas properties		(32,000)	(25,410)
Cash paid for purchase of property and equipment		(114,031)	(148,590)
Net cash (used in) investing activities		(146,031)	(174,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock		663,720	2,929,646
Proceeds from sale of preferred stock		280,000	0
Proceeds from notes payable		1,329,166	0
Payments on notes payable		(54,213)	(110,225)
Net cash provided by financing activities		2,218,673	2,819,421
INCREASE (DECREASE) IN CASH		(187,348)	139,621
BEGINNING BALANCE		209,054	69,433
ENDING BALANCE		21,706	209,054
Cash paid for interest		32,144	25,448
Non cash investing and financing activities:
Common stock issued	[1]	0	900,000
Note payable issued	[1]	0	1,860,000
Preferred stock issued for accrued interest	[1]	21,000	0
Warrants issued with debt	[1]	$ 126,000	$ 0
[1]	Acquisition of BIYA.

Note 1. Summary of Significant

Note 1. Summary of Significant Accounting Policies	12 Months Ended
	Oct. 31, 2015
Notes
Note 1. Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Organization Diversified Resources Inc. (“the Company”) was incorporated in the State of Nevada on March 19, 2009 to pursue mineral extraction in the United States. On June 15, 2009 the Company leased two mining claims in Esmerelda County, Nevada, in the Dunfee Mine Area. The lease includes all additional claims within one mile of these claims. The term of the lease was for 20 years and was terminated during November 2013. In November 2013, the Company entered into an agreement to exchange securities with Natural Resource Group, Inc. (“NRG”), an oil and gas exploration company, whereby the shareholders of NRG received 14,558,150 shares of the Company’s common stock. In connection with this acquisition, the then President sold 2,680,033 shares of the Company’s common stock to the Company for nominal consideration. The shares purchased from the President were returned to the status of authorized but unissued shares. Additionally, the former principals of the Company assumed all of the debts of the Company at the date of the exchange. The transaction was accounted for as a reverse acquisition or recapitalization whereby NRG was considered the accounting acquirer and the Company, the acquiree. The Company has no interests in any unconsolidated entities, nor does it have any unconsolidated special purpose entities. Going Concern As shown in the accompanying consolidated financial statements, the Company has incurred significant operating losses since inception, has an accumulated deficit of ($7,092,714) and has negative working capital of $979,538 at October 31, 2015. As of October 31, 2015, the Company has limited financial resources. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to achieve and maintain profitability and positive cash flow is dependent upon its ability to locate profitable mineral properties, generate revenue from planned business operations, and control exploration costs. Management plans to fund its future operations by joint venturing, obtaining additional financing, and attaining additional commercial production. However, there is no assurance that the Company will be able to obtain additional financing from investors or private lenders, or that additional commercial production can be attained. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern. Cash and Cash Equivalents Cash and cash equivalents include all cash balances and any highly liquid investments with an original maturity of 90 days or less. The carrying amount approximates fair value due to the short maturity of these instruments. Accounts Receivable The Company records estimated oil and gas revenue receivable from third parties at its net revenue interest. The Company also reflects costs incurred on behalf of joint interest partners in accounts receivable. The Company uses the direct write-off method for bad debts; this method expenses uncollectible accounts in the year they become uncollectible. Any difference between this method and the allowance method is not material. Management periodically reviews accounts receivable amounts for collectability and adjusts for uncollectible receivables under the direct write-off method. The Company did not record any adjustment for uncollectible receivables in 2015 or 2014. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates of oil and gas reserve quantities provide the basis for calculation of depletion, depreciation, and amortization, and impairment, each of which represents a significant component of the financial statements. Actual results could differ from those estimates. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents. The Company places its cash equivalents with a high credit quality financial institution. The Company periodically maintains cash balances at a commercial bank in excess of the Federal Deposit Insurance Corporation insurance limit of $250,000. Stock-based compensation ASC 718, Stock Compensation We record compensation and other charges related to the issuance of stock-based compensation awards at the fair value of the awards. Such awards can be comprised of stock, restricted stock and stock options. We record the grant date fair value of stock-based compensation awards as an expense over the vesting period of the related stock options. In order to determine the fair value of the stock options on the date of grant, we use the Black-Scholes option-pricing model. Inherent in this model are assumptions related to expected stock-price volatility, option life, risk-free interest rate and dividend yield. Although the risk-free interest rates and dividend yield are less subjective assumptions, typically based on factual data derived from public sources, the expected stock-price volatility, forfeiture rate and option life assumptions require a greater level of judgment which makes them critical accounting estimates. We use an expected stock price volatility assumption that is based on historical volatilities of our common stock and we estimate the forfeiture rate and option life based on historical data related to prior option grants, as we believe such historical data will be similar to future results. Dependence on Oil and Gas Prices As an independent oil and gas producer, our revenue, profitability and future rate of growth are substantially dependent on prevailing prices for natural gas and oil. Historically, the energy markets have been very volatile, and there can be no assurance that oil and gas prices will not be subject to wide fluctuations in the future. Prices for oil and natural gas have recently declined materially. Any continued and extended decline in oil or gas prices could have a material adverse effect on our financial position, results of operations, cash flows and access to capital and on the quantities of oil and gas reserves that we can economically produce. Revenue Recognition We recognize oil and gas revenue from interests in producing wells as the oil or gas is sold. Revenue from the purchase, transportation, and sale of natural gas is recognized upon completion of the sale and when transported volumes are delivered. We recognize revenue related to gas balancing agreements based on the sales method. Our net imbalance position at October 31, 2015 and 2014 was immaterial. Accounting for Oil and Gas Activities Successful Efforts Method Assets are grouped in accordance with the Extractive Industries - Oil and Gas Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). The basis for grouping is a reasonable aggregation of properties with a common geological structural feature or stratigraphic condition, such as a reservoir or field. Depreciation, depletion and amortization Proved Property Impairment Unproved Property Impairment Exploration Costs Asset Retirement Obligations Net Income (Loss) per Common Share Basic earnings (loss) per share are calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share are calculated by dividing net income (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding. During the periods when they are anti-dilutive, common stock equivalents, if any, are not considered in the computation. Property and Equipment Property and equipment consists of production buildings, furniture, fixtures, equipment and vehicles which are recorded at cost and depreciated using the straight-line method over the estimated useful lives of five to fifteen years. Property and equipment primarily consists of production equipment. Maintenance and repairs are charged to expense as incurred. Impairment of Long Lived Assets The long-lived assets of the Company consist primarily of proved oil and gas properties and undeveloped leaseholds. The Company reviews the carrying values of its oil and gas properties and undeveloped leaseholds annually or whenever events or changes in circumstances indicate that such carrying values may not be recoverable. If, upon review, the sum of the undiscounted pretax cash flows is less than the carrying value of the asset group, the carrying value is written down to estimated fair value. Individual assets are grouped for impairment purposes at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets, generally on a field-by-field basis. The fair value of impaired assets is determined based on quoted market prices in active markets, if available, or upon the present values of expected future cash flows. The impairment analysis performed by the Company may utilize Level 3 inputs. The Company recorded impairment expense of $2,427,968 based on valuation of Garcia field for the year ending October 31, 2015. No such impairment was recorded for the years ended October 31, 2014. Income Taxes We compute income taxes in accordance with ASC Topic 740, Income Taxes We follow the guidance in ASC Topic 740-10, Accounting for Uncertainty in Income Taxes Major Customers Sales to major unaffiliated customers consisted of the following for the year ended October 31, 2015: Customer A accounted for approximately 95% of revenue. Sales to major unaffiliated customers consisted of the following for the year ended October 31, 2014: Customer A accounted for approximately 54% of revenue, Customer B accounted for approximately 17%, Customer C accounted for approximately 13%, and Customer D accounted for approximately 11%. The Company sells production to a small number of customers, as is customary in the industry. Yet, based on the current demand for oil and natural gas, the availability of other buyers, and the Company having the option to sell to other buyers if conditions so warrant, the Company believes that its oil and gas production can be sold in the market in the event that it is not sold to the Company’s existing customers. However, in some circumstances, a change in customers may entail significant transition costs and/or shutting in or curtailing production for weeks or even months during the transition to a new customer. Recent Accounting Pronouncements There were no recently issued or proposed accounting pronouncements which management believes will have a material effect on the Company’s financial statements.

Note 2. Oil and Gas Properties

Note 2. Oil and Gas Properties	12 Months Ended
	Oct. 31, 2015
Notes
Note 2. Oil and Gas Properties	Note 2. Oil and gas properties Oil and gas properties consist of the following: October 31, 2015 October 31, 2014 Proved oil and gas properties $ 3,906,215 $ 3,906,215 Proved undeveloped oil and gas leaseholds 1,241,724 1,209,724 5,147,939 5,115,939 Less accumulated depletion (195,371 ) (100,062 ) Less impairment (2,427,968 ) - Net oil and gas properties 2,524,600 5,015,877 Undeveloped oil and gas leaseholds $ 2,932,730 $ 2,932,730 Total depletion of oil and gas properties amounted to $88,287 and $34,475 for the years ended October 31, 2015 and 2014 respectively. Impairment of $2,427,968 was recorded during the period ending October 31, 2015.

Note 3. Participation Agreement

Note 3. Participation Agreement	12 Months Ended
	Oct. 31, 2015
Notes
Note 3. Participation Agreement	Note 3. Participation Agreement In connection with the convertible promissory note described in note 5, the Company entered into a participation agreement with a nonaffiliated company whereby the nonaffiliated company would advance up to $350,000 to conduct additional development of the underlying leases at the Garcia Field and drill and complete three additional wells on the acreage. As of October 31, 2015, $248,895 was due on the note. In consideration for extending this credit arrangement, the lender was assigned a 1% overriding royalty interest in the 4,600 acre field and a 20% modified net profits interest in the existing four producing wells in the Garcia Field and a 20% modified net profits interest in three additional wells to be drilled on said acreage. The Company valued the net profits interest and the overriding royalty interest at $136,599 using 10% present value over the estimated life of the wells. The amount was recorded as a debt discount and is being amortized using the effective interest rate method over the life of the promissory note (3 years). Additionally, the lender has the right, at any point during the period of the note, to convert the remaining principal balance on the note to a working interest (see note 5). The modified net profits interest is based on the gross proceeds from the sale of oil, gas and other minerals in the 4 producing wells in the Garcia Field and 3 additional wells to be drilled. The 20% is applied to 100% of the Company’s net revenue interest in the wells which cannot be less than 80% and is reduced by any of the following expenditures: any overriding royalties or other burden on production in excess of the 80% net revenue interest; production, severance and similar taxes assessed by any taxing authority based on volume or value of the production; direct costs incurred in lifting oil or natural gas, or the operating or producing such wells excluding administrative, supervisory or other indirect costs; costs reasonably incurred to process the production for market; costs reasonably incurred in transportation, delivery, storage or marketing the production.

Note 4. Notes Payable - Affilia

Note 4. Notes Payable - Affiliates	12 Months Ended
	Oct. 31, 2015
Notes
Note 4. Notes Payable - Affiliates	Note 4. Notes Payable - Affiliates Notes Payable Affiliates

Note 5. Long-term Debt and Note

Note 5. Long-term Debt and Note Payable	12 Months Ended
	Oct. 31, 2015
Notes
Note 5. Long-term Debt and Note Payable	Note 5. Long-term Debt and Note Payable Convertible Promissory Note On October 14, 2014 the Company acquired approximately 98% of the outstanding shares of BIYA Operators, Inc. (“BIYA”) an independent oil and gas company. The Company issued a promissory note in the principal amount of $1,860,000 (subject to adjustment for unknown liabilities). The note will be effective when certain leases covering Indian tribal lands have been issued. The note will bear interest at 5% a year and will be payable in October 2016. In May 2012 BIYA entered into a settlement agreement with a previous partner for amount of $1.2 million. The amount is non-interest bearing and has a minimum monthly payment of $10,000, plus one third of BIYA’s net profits, as defined in the agreement, which amounted to approximately $7,000 at October 31, 2014, until paid in full. On April 1, 2015, the agreement was amended, where the balance due will bear interest at 6% a year and has a fixed monthly payment of $5,500 until paid in full. The balance due was $489,154 at October 31, 2015. Secured Notes Installment Loans The following summarizes the notes payable: October 31, 2015 October 31, 2014 Convertible promissory note $ 248,895 $ 248,895 BIYA note 1,860,000 1,860,000 BIYA settlement 489,154 546,144 Convertible promissory notes 1,250,000 - Discount convertible promissory notes (126,000 ) - Installment loan 95,691 13,750 3,817,740 2,668,789 Current portion (319,632 ) (373,846) Long term debt $ 3,498,108 $ 2,294,943 The above debt matures as follows: Year ended October 31 2016 $ 319,632 2017 $ 3,498,108

Note 6. Asset Retirement Obliga

Note 6. Asset Retirement Obligation	12 Months Ended
	Oct. 31, 2015
Notes
Note 6. Asset Retirement Obligation	Note 6. Asset Retirement Obligation The following table reflects a reconciliation of the Company’s asset retirement obligation liability: October 31, 2015 October 31, 2014 Beginning asset retirement obligation $ 290,312 $ 222,375 Liabilities incurred - 43,883 Liabilities settled - - Accretion expense 30,789 24,054 Revision to estimated cash flows - - Ending Asset retirement obligation $ 321,101 $ 290,312

Note 7. Income Taxes

Note 7. Income Taxes	12 Months Ended
	Oct. 31, 2015
Notes
Note 7. Income Taxes	Note 7. Income Taxes ASC 740 guidance requires that the Company evaluate all monetary tax positions taken, and recognize a liability for any uncertain tax positions that are not more likely than not to be sustained by the tax authorities. The Company has not recorded any liabilities, or interest and penalties, as of October 31, 2015 related to uncertain tax positions. Deferred tax assets and liabilities are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, referred to as temporary differences. Deferred tax assets and liabilities at the end of each period are determined using the currently-enacted tax rates applied to taxable income in the periods in which the deferred tax assets and liabilities are expected to be settled or realized. The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The Company's estimated effective tax rate of 39% is offset by a valuation allowance due to the uncertainty regarding the realization of the deferred tax asset. October 31, 2015 October 31, 2014 Deferred tax assets: Net operating loss carry forwards $ 2,270,721 $ 1,422,844 Deferred tax liability: - Property and equipment, geologic and geophysical (31,302) (41,945) 2,239,419 1,380,899 Less valuation allowance (2,239,419) (1,380,899) Deferred tax assets and liabilities $ 0 $ 0 In assessing the realizability of the deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which the use of such net operating losses are allowed. Among other items, management considers the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income. At October 31, 2015, the Company had a net operating loss carry forward for regular income tax reporting purposes of approximately $6 million, which will begin expiring in 2030. Absent the bargain purchase gain that was recognized at the time of acquisition (see Note 11), the Company would have a loss for both financial statement and tax reporting purposes. Accordingly no provision and/or benefit for income taxes has been recorded in the accompanying statement of operations. The following table shows the reconciliation of the Company’s effective tax rate to the expected federal tax rate for the years ended October 31, 2015 and 2014: Statutory U.S. federal rate 34 % State income taxes 5 % 39 % Net operating loss (39 %) - % The Company files income tax returns in the U.S. and Colorado jurisdictions. There are currently no federal or state income tax examinations underway for these jurisdictions. Income tax returns since inception are subject to audit by taxing authorities as a result of the net operating loss carryforward.

Note 8. Stockholder's Equity

Note 8. Stockholder's Equity	12 Months Ended
	Oct. 31, 2015
Notes
Note 8. Stockholder's Equity	Note 8. Stockholder’s Equity Common Stock 2014 The Company issued 4,474,089 shares of common stock for cash of $2,929,646. The Company issued 900,000 shares of common stock with a fair value of $900,000 for the acquisition of BIYA. Included in the shares issued, the Company issued 2,641,052 shares for $2,326,052 to various partners associated with Palo Petroleum, Inc. (“Palo”), 663,720 of these shares with value of $663,720 were issued in December 2014. On January 29, 2015, the Company entered into a participation agreement with Palo, where Palo acquired right to participate in all future operations in the Horseshoe Gallup Field which are not related to the Existing Wells or Existing Production, including the drilling of any future wells. Palo shall have the right to participate in such future operations as a 40.00% of 8/8 Working Interest owner on a heads-up or non-promoted basis. The Company does not have sufficient information to calculate the value of participation in the future working interest and the future participation cost will be charged to operations earned by Palo. In addition, the Company and Palo entered into an Area of Mutual Interest Agreement (“AMI”) covering of all lands in San Juan County, New Mexico outside the Horseshoe Gallup Field. Under this agreement, Palo and the Company shall each be entitled to participate for up to 50% in any leasehold or fee mineral interest within the AMI which is acquired by either Palo or the Company. 2015 The Company issued 50,000 shares to National Petroleum Corporation with a fair value of $22,500, which was treated as lease expense, to extend the convertible promissory note for additional one year (see Note 5). The Company also issued 663,720 shares for cash of $663,720. The Company issued 280,000 shares of preferred stock for cash of $280,000 and, as per the payment option under secured note agreement. The preferred stock holders received three year warrants which entitles the stockholders to purchase up to 75,250 shares of the Company’s common stock at a price of $1.50 per common share. The Company also issued 21,000 shares of preferred stock to pay $21,000 in accrued interest.

Note 9. Commitments and Conting

Note 9. Commitments and Contingent Liabilities	12 Months Ended
	Oct. 31, 2015
Notes
Note 9. Commitments and Contingent Liabilities	Note 9. Commitments and Contingent Liabilities Legal We may be subject to legal proceedings, claims and liabilities which arise in the ordinary course of business. We accrue for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. The Company was not a party to any material legal proceedings as of October 31, 2015. Environmental We accrue for losses associated with environmental remediation obligations when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded at their undiscounted value as assets when their receipt is deemed probable. The Company was unaware of any material environmental issues as of October 31, 2015. Employment Agreements The Company has a written employment agreement with its president, effective January 1, 2015. Pursuant to his employment agreement, the President will devote such time as each deems necessary to perform his duties to the Company and are subject to conflicts of interest. The employment agreement is an “at will agreement;” however, in the event of termination by the Company, the agreement provides for severance pay equal to four months of base salary in effect at the time of termination. There is also a provision providing for twelve months of base pay in the event of a change in control of the Company. The agreement provides for a two year non-compete in the event of termination. Pursuant to the employment agreements, effective July 1, 2015, the president will receive a base salary of $234,000 per year. If the Company receives cumulative financing, equity or debt of $4 million, the salary will be increased to $280,000. In addition, if the Company sustains production thresholds of 1,000 BOE/day, 1,500 BOE/day and 2,000 BOE/day, the President’s salary will be increased to $300,000, $325,500 and $360,000 per year, respectively. The Company has a written “at will” employment agreement with its Operations Manager (also a principal shareholder) which provides for annual compensation of $66,000 and provides that when the Company achieves three consecutive months of positive cash flows, and to the extent that the Company would still have positive cash flow in the event the compensation was increased by 50%, then there will be a permanent increase in compensation equal to the current compensation multiplied by 150%. In the event of termination by the Company, the agreement provides for severance pay equal to four months of base salary in effect at the time of termination. There is also a provision providing for twelve months of base pay in the event of a change in control of the Company. The agreement provides for a two year non-compete in the event of termination. The Operations Manager may be granted royalties pursuant to the royalty program.

Note 10. Related Parties

Note 10. Related Parties	12 Months Ended
	Oct. 31, 2015
Notes
Note 10. Related Parties	Note 10. Related Parties The Company has a lease for office space in Littleton, Colorado, with Spotswood Properties, LLC, a Colorado limited liability company (“Spotswood”), and an affiliate of the Company’s president. The Company is currently leasing the office space on a month to month basis under the same terms and conditions as the lease that expired July 31, 2013. The lease provides for the payment of $2,667 per month plus utilities and other incidentals. The president of the Company owns 50% of Spotswood. The Company is of the opinion that the terms of the lease are no less favorable than could be obtained from an unaffiliated party. Spotswood was paid $29,000 and $26,000 in fiscal years 2015 and 2014, respectively. The Company paid $73,299 and $60,642, in fiscal years 2015 and 2014 respectively, to the President’s brother for land-man fees and expense reimbursements in connection with performing contract land services for the Company. The Company paid $201,110 and $178,650 to a director for financial public relations consulting in fiscal years 2015 and 2014, respectively. The Company paid $77,465 to companies owned by President of BIYA Operators Inc., the Company’s wholly owned subsidiary and by his son in fiscal year 2015.

Note 11. Acquisition

Note 11. Acquisition	12 Months Ended
	Oct. 31, 2015
Notes
Note 11. Acquisition	Note 11. Acquisition On October 14, 2014 the Company acquired approximately 98% of the outstanding shares of BIYA Operators, Inc. (“BIYA”) an independent oil and gas company, for cash of $174,000, 900,000 restricted shares of common stock having a value of $900,000, a promissory note in the principal amount of $1,860,000 (subject to adjustment for unknown liabilities) and the assumption of liabilities of BIYA oil and gas company in the approximate amount of $2,000,000. The note will be effective when certain leases covering Indian tribal lands have been issued. The note will bear interest at 5% a year and will be payable in October 2016. The Company did not incur material costs in acquiring BIYA. The transaction was effective October 1, 2014 and was accounted for as a business combination. BIYA was incorporated under the laws of New Mexico during on September 2011 to pursue mineral extraction. BIYA conducts operations in the United States primarily in the Horseshoe BIYA’s has oil and gas leases covering approximately 10,100 acres and 48 producing wells. The majority of the leased acreage and producing wells are on Mountain Ute tribal land and are leased under an operating agreement with the tribe. Under the agreement, BIYA is to drill three wells by April, 2016, two additional wells by April 2017 and April 2018, each. After April 2018, BIYA is required to drill one well per year. Per the agreement, if BIYA drills and completes a well, and establishes production from that well, it will own a lease of that well, plus the applicable well spacing unit acreage surrounding that well, ranging from 40 acres to 320 acres, based on the formation drilled, from the date of filing an application for permit to drill and for as long as hydrocarbons are produced in paying quantities. All leases held by BIYA carry a royalty between 12.5% and 20%. The Company has included the results of BIYA’s operations in its consolidated financial statements beginning on October 1, 2014. Fair values of the assets acquired and liabilities assumed in acquisition of BIYA are summarized below: Current assets, including cash and cash equivalents of $98,809 $ 242,788 Property, plant and equipment 1,854,900 Oil and gas properties 5,244,755 Bonds and other assets 167,368 Total assets acquired 7,509,811 Current liabilities (1,624,167 ) Long-term liabilities (367,460 ) Net assets acquired 5,518,184 Bargain purchase gain (2,584,184 ) Net consideration $ 2,934,000 The consideration consisted of cash of $174,000, the issuance of a note in the amount of $1,860,000, and the issuance of 900,000 common shares with a fair value of $900,000. The unaudited results of operations had the acquisition been made at November 1, 2013 would have been as follows: October 31 2014 Revenues $ 1,583,796 Net income (loss) $ 714,031 Net income (loss) per share $ 0.04

Note 12. Subsequent Events

Note 12. Subsequent Events	12 Months Ended
	Oct. 31, 2015
Notes
Note 12. Subsequent Events	Note 12. Subsequent Events On February 5, 2016, the Company entered into an Agreement to Exchange Securities with Diversified Energy Services, Inc. (“DESI”) a Colorado based company. The Company issued 20,032,710 shares in exchange for all the outstanding shares of DESI and assumed DESI’s liabilities at January 31, 2016. DESI offers a full range of services to the Rocky Mountain energy and construction industries and is dedicated to becoming the “one call, last call” solution to a full range of oil field service needs. DESI offers Crane Service, Well Site Construction, Materials Handling and Disposal, Trucking Services, Equipment Operation, and Rigging to the energy industry in the Denver Julesburg Basin and the Rockies. DESI employs upwards of 140 highly qualified, safety focused professionals and operators. DESI will operate as a wholly owned subsidiary of Diversified Resources and is not expected to experience any change in management, operations, policies or business practices. On January 20, 2016, the Company entered into secured note facility of $200,000, bearing interest at 12% payable quarterly beginning January 20, 2016 with a two year maturity date. The notes are collateralized by a first priority deed of trust on certain producing wells and their spacing units located in the Horseshoe Gallup Field. The note and any interest outstanding may be converted, one time only, for new securities offered by the Company. The note guarantees one year of interest which would be due even upon prepayment of note during the first year. The lender received two year warrants which allow the lender to purchase up to 40,000 shares of the Company’s common stock at a price of $0.80 per share at any time on or before January 20, 2018.

Note 13. Disclosures About Oil

Note 13. Disclosures About Oil and Gas Producing Activities (unaudited)	12 Months Ended
	Oct. 31, 2015
Notes
Note 13. Disclosures About Oil and Gas Producing Activities (unaudited)	Note 13. Disclosures about Oil and Gas Producing Activities (Unaudited) Capitalized costs relating to oil and gas producing activities: October 31, 2015 October 31, 2014 Proved oil and gas properties $ 3,906,215 $ 3,906,215 Proved undeveloped oil and gas leaseholds 1,241,724 1,209,724 5,147,939 5,115,939 Less accumulated depletion and impairment (2,623,339 ) (100,062 ) Net oil and gas properties 2,524,600 5,015,877 Undeveloped oil and gas leaseholds $ 2,932,730 $ 2,932,730 Costs incurred in connection with crude oil and natural gas acquisition, exploration and development are as follows: 2015 2014 Acquisition of properties: Proved $ - $ 2,634,245 Proved undeveloped 32,000 3,251,669 Development costs - 7,833 Exploration costs 16,513 41,802 Total $ 48,513 $ 5,935,549

Note 14. Results of Operations

Note 14. Results of Operations For Oil and Gas Producing Activities	12 Months Ended
	Oct. 31, 2015
Notes
Note 14. Results of Operations For Oil and Gas Producing Activities	Note 14. Results of Operations for Oil and Gas Producing Activities The results of operations for oil and gas producing activities, excluding capital expenditures and corporate overhead and interest costs, are as follows (all in the United States): 2015 2014 Operating Revenues $ 602,980 $ 161,623 Costs & expenses: Exploration 16,513 41,802 Lease operating expenses 606,853 290,588 Depletion 88,287 34,475 Total costs & expenses 711,653 366,865 Income (loss) before income taxes (108,673 ) (205,242 ) Income tax (expense) benefit 42,569 80,665 Results of operations for oil and gas producing activities $ (66,104 ) $ (124,577 )

Note 15. Supplementary Oil and

Note 15. Supplementary Oil and Gas Information (unaudited)	12 Months Ended
	Oct. 31, 2015
Notes
Note 15. Supplementary Oil and Gas Information (unaudited)	Note 15. Supplementary Oil and Gas Information (Unaudited) The following supplemental information regarding the oil and gas activities of the Company is presented pursuant to the disclosure requirements promulgated by the Securities and Exchange Commission ("SEC") and FASB ASC 932, Disclosures About Oil and Gas Producing Activities. Estimated net quantities of reserves of oil and gas for the years ended October 31, 2015 and 2014: Gallons Oil (Bbl) Gas (Mcf) NG Liquid Developed at October 31, 2014 299,856 51,298 - Proved undeveloped at October 31, 2014 1,432,256 1,257,190 6,890,814 Balance, October 31, 2014 1,732,112 1,308,488 6,890,814 Developed at October 31, 2015 350,000 - - Proved undeveloped at October 31, 2015 1,537,400 400,000 - Balance, October 31, 2015 1,887,400 400,000 - Notable changes in our reserves are summarized as follows: Gas and NG liquid reserves decreased due to the impairment of the Garcia field. Oil reserves increased due to an increase in proved undeveloped reserves in DJ field.

Note 16. Standardized Measure o

Note 16. Standardized Measure of Discounted Future Net Cash Flows Relating To Proved Oil and Gas Reserves (unaudited)	12 Months Ended
	Oct. 31, 2015
Notes
Note 16. Standardized Measure of Discounted Future Net Cash Flows Relating To Proved Oil and Gas Reserves (unaudited)	Note 16. Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves (Unaudited) The following is based on natural gas and oil reserves and production volumes estimated by the Company. It may be useful for certain comparison purposes, but should not be solely relied upon in evaluating the Company or its performance. Further, information contained in the following table should not be considered as representative or realistic assessments of future cash flows, nor should the Standardized Measure of Discounted Future Net Cash Flows be viewed as representative of the current value of the Company. The Company believes that the following factors should be taken into account in reviewing the following information: (1) future costs and selling prices will likely differ from those required to be used in these calculations; (2) due to future market conditions and governmental regulations, actual rates of production achieved in future years may vary significantly from the rate of production assumed in these calculations; (3) selection of a 10% discount rate, as required under the accounting codification, is arbitrary and may not be reasonable as a measure of the relative risk inherent in realizing future net oil and gas revenues; and (4) future net revenues may be subject to different rates of income taxation. Under the Standardized Measure, future cash inflows were estimated by applying the 12-month average pricing of oil and gas relating to the Company’s proved reserves to the year-end quantities of those reserves. Future cash inflows were reduced by estimated future development and production costs based upon year-end costs in order to arrive at net cash flow before tax. Future income tax expense has been computed by applying year-end statutory rates to future pretax net cash flows and the utilization of net operating loss carry-forwards. Management does not rely solely upon the following information to make investment and operating decisions. Such decisions are based upon a wide range of factors, including estimates of probable, as well as proved reserves, and varying price and cost assumptions considered more representative of a range of possible economic conditions that may be anticipated. Information with respect to the Company’s Standardized Measure is as follows: 2015 2014 Future cash inflows $ 75,950,000 $ 158,337,002 Future production costs (21,832,200 ) (36,046,933 ) Future development costs (13,760,000 ) (19,189,499 ) Future income tax expense (15,739,542 ) (40,209,222 ) Future net cash flows 24,618,258 62,891,348 10% annual discount for estimated timing of cash flows (12,766,202 ) (31,944,372 ) Standardized measure of discounted future net cash flows $ 11,852,202 $ 30,946,976 There have been significant fluctuations in the posted prices of oil and natural gas during the last two years. Prices actually received from purchasers of the Company’s oil and gas is adjusted from posted prices for location differentials, quality differentials, and BTU content. The following table presents the prices used to prepare the reserve estimates, based upon the unweighted arithmetic average of the first day of the month price for each month within the 12 month period prior to the end of the respective reporting period presented: Oil (Bbl) Gas (Mcf) NG Liquid October 31, 2014 (Average) $ 83.90 $ 4.79 $ 0.99 October 31, 2015 (Average) $ 40.00 $ 2.35 $ - Principal changes in the Standardized Measure for the years ended October 31, 2015 and 2014 were as follows: 2015 2014 Standardized measure, beginning of year $ 30,946,976 $ 310,014 Purchase of reserves in place - 24,653,719 Purchase of proved undeveloped reserves - 118,243,820 Sale and transfers, net of production costs (3,873 ) 128,965 Net changes in prices and production costs (59,601,937 ) (31,375,014 ) Extensions, discoveries, and improved recovery - Changes in estimated future development costs 5,429,499 (15,014,499 ) Development costs incurred during the period - 7,833 Revision of quantity estimates (7,637,858 ) 4,307,700 Accretion of discount 19,178,170 (30,953,709 ) Net change in income taxes 24,469,680 (39,377,642 ) Changes in timing and other (928,601 ) 15,790 Standardized measure, end of year $ 11,852,056 $ 30,946,976

Note 1. Summary of Significan23

Note 1. Summary of Significant Accounting Policies: Organization (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Organization	Organization Diversified Resources Inc. (“the Company”) was incorporated in the State of Nevada on March 19, 2009 to pursue mineral extraction in the United States. On June 15, 2009 the Company leased two mining claims in Esmerelda County, Nevada, in the Dunfee Mine Area. The lease includes all additional claims within one mile of these claims. The term of the lease was for 20 years and was terminated during November 2013. In November 2013, the Company entered into an agreement to exchange securities with Natural Resource Group, Inc. (“NRG”), an oil and gas exploration company, whereby the shareholders of NRG received 14,558,150 shares of the Company’s common stock. In connection with this acquisition, the then President sold 2,680,033 shares of the Company’s common stock to the Company for nominal consideration. The shares purchased from the President were returned to the status of authorized but unissued shares. Additionally, the former principals of the Company assumed all of the debts of the Company at the date of the exchange. The transaction was accounted for as a reverse acquisition or recapitalization whereby NRG was considered the accounting acquirer and the Company, the acquiree. The Company has no interests in any unconsolidated entities, nor does it have any unconsolidated special purpose entities.

Note 1. Summary of Significan24

Note 1. Summary of Significant Accounting Policies: Going Concern (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Going Concern	Going Concern As shown in the accompanying consolidated financial statements, the Company has incurred significant operating losses since inception, has an accumulated deficit of ($7,092,714) and has negative working capital of $979,538 at October 31, 2015. As of October 31, 2015, the Company has limited financial resources. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to achieve and maintain profitability and positive cash flow is dependent upon its ability to locate profitable mineral properties, generate revenue from planned business operations, and control exploration costs. Management plans to fund its future operations by joint venturing, obtaining additional financing, and attaining additional commercial production. However, there is no assurance that the Company will be able to obtain additional financing from investors or private lenders, or that additional commercial production can be attained. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

Note 1. Summary of Significan25

Note 1. Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include all cash balances and any highly liquid investments with an original maturity of 90 days or less. The carrying amount approximates fair value due to the short maturity of these instruments.

Note 1. Summary of Significan26

Note 1. Summary of Significant Accounting Policies: Accounts Receivable (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Accounts Receivable	Accounts Receivable The Company records estimated oil and gas revenue receivable from third parties at its net revenue interest. The Company also reflects costs incurred on behalf of joint interest partners in accounts receivable. The Company uses the direct write-off method for bad debts; this method expenses uncollectible accounts in the year they become uncollectible. Any difference between this method and the allowance method is not material. Management periodically reviews accounts receivable amounts for collectability and adjusts for uncollectible receivables under the direct write-off method. The Company did not record any adjustment for uncollectible receivables in 2015 or 2014.

Note 1. Summary of Significan27

Note 1. Summary of Significant Accounting Policies: Use of Estimates (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates of oil and gas reserve quantities provide the basis for calculation of depletion, depreciation, and amortization, and impairment, each of which represents a significant component of the financial statements. Actual results could differ from those estimates.

Note 1. Summary of Significan28

Note 1. Summary of Significant Accounting Policies: Concentration of Credit Risk (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents. The Company places its cash equivalents with a high credit quality financial institution. The Company periodically maintains cash balances at a commercial bank in excess of the Federal Deposit Insurance Corporation insurance limit of $250,000.

Note 1. Summary of Significan29

Note 1. Summary of Significant Accounting Policies: Stock-based Compensation (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Stock-based Compensation	Stock-based compensation ASC 718, Stock Compensation We record compensation and other charges related to the issuance of stock-based compensation awards at the fair value of the awards. Such awards can be comprised of stock, restricted stock and stock options. We record the grant date fair value of stock-based compensation awards as an expense over the vesting period of the related stock options. In order to determine the fair value of the stock options on the date of grant, we use the Black-Scholes option-pricing model. Inherent in this model are assumptions related to expected stock-price volatility, option life, risk-free interest rate and dividend yield. Although the risk-free interest rates and dividend yield are less subjective assumptions, typically based on factual data derived from public sources, the expected stock-price volatility, forfeiture rate and option life assumptions require a greater level of judgment which makes them critical accounting estimates. We use an expected stock price volatility assumption that is based on historical volatilities of our common stock and we estimate the forfeiture rate and option life based on historical data related to prior option grants, as we believe such historical data will be similar to future results.

Note 1. Summary of Significan30

Note 1. Summary of Significant Accounting Policies: Dependence On Oil and Gas Prices (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Dependence On Oil and Gas Prices	Dependence on Oil and Gas Prices As an independent oil and gas producer, our revenue, profitability and future rate of growth are substantially dependent on prevailing prices for natural gas and oil. Historically, the energy markets have been very volatile, and there can be no assurance that oil and gas prices will not be subject to wide fluctuations in the future. Prices for oil and natural gas have recently declined materially. Any continued and extended decline in oil or gas prices could have a material adverse effect on our financial position, results of operations, cash flows and access to capital and on the quantities of oil and gas reserves that we can economically produce.

Note 1. Summary of Significan31

Note 1. Summary of Significant Accounting Policies: Revenue Recognition (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Revenue Recognition	Revenue Recognition We recognize oil and gas revenue from interests in producing wells as the oil or gas is sold. Revenue from the purchase, transportation, and sale of natural gas is recognized upon completion of the sale and when transported volumes are delivered. We recognize revenue related to gas balancing agreements based on the sales method. Our net imbalance position at October 31, 2015 and 2014 was immaterial.

Note 1. Summary of Significan32

Note 1. Summary of Significant Accounting Policies: Accounting For Oil and Gas Activities (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Accounting For Oil and Gas Activities	Accounting for Oil and Gas Activities Successful Efforts Method Assets are grouped in accordance with the Extractive Industries - Oil and Gas Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). The basis for grouping is a reasonable aggregation of properties with a common geological structural feature or stratigraphic condition, such as a reservoir or field. Depreciation, depletion and amortization Proved Property Impairment Unproved Property Impairment Exploration Costs Asset Retirement Obligations

Note 1. Summary of Significan33

Note 1. Summary of Significant Accounting Policies: Net Income (loss) Per Common Share (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Net Income (loss) Per Common Share	Net Income (Loss) per Common Share Basic earnings (loss) per share are calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share are calculated by dividing net income (loss) by the weighted average number of common shares and dilutive common stock equivalents outstanding. During the periods when they are anti-dilutive, common stock equivalents, if any, are not considered in the computation.

Note 1. Summary of Significan34

Note 1. Summary of Significant Accounting Policies: Property and Equipment (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Property and Equipment	Property and Equipment Property and equipment consists of production buildings, furniture, fixtures, equipment and vehicles which are recorded at cost and depreciated using the straight-line method over the estimated useful lives of five to fifteen years. Property and equipment primarily consists of production equipment. Maintenance and repairs are charged to expense as incurred.

Note 1. Summary of Significan35

Note 1. Summary of Significant Accounting Policies: Impairment of Long Lived Assets (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Impairment of Long Lived Assets	Impairment of Long Lived Assets The long-lived assets of the Company consist primarily of proved oil and gas properties and undeveloped leaseholds. The Company reviews the carrying values of its oil and gas properties and undeveloped leaseholds annually or whenever events or changes in circumstances indicate that such carrying values may not be recoverable. If, upon review, the sum of the undiscounted pretax cash flows is less than the carrying value of the asset group, the carrying value is written down to estimated fair value. Individual assets are grouped for impairment purposes at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets, generally on a field-by-field basis. The fair value of impaired assets is determined based on quoted market prices in active markets, if available, or upon the present values of expected future cash flows. The impairment analysis performed by the Company may utilize Level 3 inputs. The Company recorded impairment expense of $2,427,968 based on valuation of Garcia field for the year ending October 31, 2015. No such impairment was recorded for the years ended October 31, 2014.

Note 1. Summary of Significan36

Note 1. Summary of Significant Accounting Policies: Income Taxes (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Income Taxes	Income Taxes We compute income taxes in accordance with ASC Topic 740, Income Taxes We follow the guidance in ASC Topic 740-10, Accounting for Uncertainty in Income Taxes

Note 1. Summary of Significan37

Note 1. Summary of Significant Accounting Policies: Major Customers (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Major Customers	Major Customers Sales to major unaffiliated customers consisted of the following for the year ended October 31, 2015: Customer A accounted for approximately 95% of revenue. Sales to major unaffiliated customers consisted of the following for the year ended October 31, 2014: Customer A accounted for approximately 54% of revenue, Customer B accounted for approximately 17%, Customer C accounted for approximately 13%, and Customer D accounted for approximately 11%. The Company sells production to a small number of customers, as is customary in the industry. Yet, based on the current demand for oil and natural gas, the availability of other buyers, and the Company having the option to sell to other buyers if conditions so warrant, the Company believes that its oil and gas production can be sold in the market in the event that it is not sold to the Company’s existing customers. However, in some circumstances, a change in customers may entail significant transition costs and/or shutting in or curtailing production for weeks or even months during the transition to a new customer.

Note 1. Summary of Significan38

Note 1. Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements There were no recently issued or proposed accounting pronouncements which management believes will have a material effect on the Company’s financial statements.

Note 9. Commitments and Conti39

Note 9. Commitments and Contingent Liabilities: Legal (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Legal	Legal We may be subject to legal proceedings, claims and liabilities which arise in the ordinary course of business. We accrue for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. The Company was not a party to any material legal proceedings as of October 31, 2015.

Note 9. Commitments and Conti40

Note 9. Commitments and Contingent Liabilities: Environmental (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Environmental	Environmental We accrue for losses associated with environmental remediation obligations when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded at their undiscounted value as assets when their receipt is deemed probable. The Company was unaware of any material environmental issues as of October 31, 2015.

Note 9. Commitments and Conti41

Note 9. Commitments and Contingent Liabilities: Employment Agreements (Policies)	12 Months Ended
	Oct. 31, 2015
Policies
Employment Agreements	Employment Agreements The Company has a written employment agreement with its president, effective January 1, 2015. Pursuant to his employment agreement, the President will devote such time as each deems necessary to perform his duties to the Company and are subject to conflicts of interest. The employment agreement is an “at will agreement;” however, in the event of termination by the Company, the agreement provides for severance pay equal to four months of base salary in effect at the time of termination. There is also a provision providing for twelve months of base pay in the event of a change in control of the Company. The agreement provides for a two year non-compete in the event of termination. Pursuant to the employment agreements, effective July 1, 2015, the president will receive a base salary of $234,000 per year. If the Company receives cumulative financing, equity or debt of $4 million, the salary will be increased to $280,000. In addition, if the Company sustains production thresholds of 1,000 BOE/day, 1,500 BOE/day and 2,000 BOE/day, the President’s salary will be increased to $300,000, $325,500 and $360,000 per year, respectively. The Company has a written “at will” employment agreement with its Operations Manager (also a principal shareholder) which provides for annual compensation of $66,000 and provides that when the Company achieves three consecutive months of positive cash flows, and to the extent that the Company would still have positive cash flow in the event the compensation was increased by 50%, then there will be a permanent increase in compensation equal to the current compensation multiplied by 150%. In the event of termination by the Company, the agreement provides for severance pay equal to four months of base salary in effect at the time of termination. There is also a provision providing for twelve months of base pay in the event of a change in control of the Company. The agreement provides for a two year non-compete in the event of termination. The Operations Manager may be granted royalties pursuant to the royalty program.

Note 2. Oil and Gas Properties_

Note 2. Oil and Gas Properties: Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities (Tables)	12 Months Ended
	Oct. 31, 2015
Tables/Schedules
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities	October 31, 2015 October 31, 2014 Proved oil and gas properties $ 3,906,215 $ 3,906,215 Proved undeveloped oil and gas leaseholds 1,241,724 1,209,724 5,147,939 5,115,939 Less accumulated depletion (195,371 ) (100,062 ) Less impairment (2,427,968 ) - Net oil and gas properties 2,524,600 5,015,877 Undeveloped oil and gas leaseholds $ 2,932,730 $ 2,932,730

Note 5. Long-term Debt and No43

Note 5. Long-term Debt and Note Payable: Schedule of Debt (Tables)	12 Months Ended
	Oct. 31, 2015
Tables/Schedules
Schedule of Debt	October 31, 2015 October 31, 2014 Convertible promissory note $ 248,895 $ 248,895 BIYA note 1,860,000 1,860,000 BIYA settlement 489,154 546,144 Convertible promissory notes 1,250,000 - Discount convertible promissory notes (126,000 ) - Installment loan 95,691 13,750 3,817,740 2,668,789 Current portion (319,632 ) (373,846) Long term debt $ 3,498,108 $ 2,294,943

Note 5. Long-term Debt and No44

Note 5. Long-term Debt and Note Payable: Schedule of Maturities of Long-term Debt (Tables)	12 Months Ended
	Oct. 31, 2015
Tables/Schedules
Schedule of Maturities of Long-term Debt	Year ended October 31 2016 $ 319,632 2017 $ 3,498,108

Note 7. Income Taxes_ Schedule

Note 7. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)	12 Months Ended
	Oct. 31, 2015
Tables/Schedules
Schedule of Deferred Tax Assets and Liabilities	October 31, 2015 October 31, 2014 Deferred tax assets: Net operating loss carry forwards $ 2,270,721 $ 1,422,844 Deferred tax liability: - Property and equipment, geologic and geophysical (31,302) (41,945) 2,239,419 1,380,899 Less valuation allowance (2,239,419) (1,380,899) Deferred tax assets and liabilities $ 0 $ 0

Note 7. Income Taxes_ Schedul46

Note 7. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)	12 Months Ended
	Oct. 31, 2015
Tables/Schedules
Schedule of Effective Income Tax Rate Reconciliation	Statutory U.S. federal rate 34 % State income taxes 5 % 39 % Net operating loss (39 %) - %

Note 11. Acquisition_ Schedule

Note 11. Acquisition: Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Tables)	12 Months Ended
	Oct. 31, 2015
Tables/Schedules
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	Current assets, including cash and cash equivalents of $98,809 $ 242,788 Property, plant and equipment 1,854,900 Oil and gas properties 5,244,755 Bonds and other assets 167,368 Total assets acquired 7,509,811 Current liabilities (1,624,167 ) Long-term liabilities (367,460 ) Net assets acquired 5,518,184 Bargain purchase gain (2,584,184 ) Net consideration $ 2,934,000

Note 11. Acquisition_ Business

Note 11. Acquisition: Business Acquisition, Pro Forma Information, Nonrecurring Adjustments (Tables)	12 Months Ended
	Oct. 31, 2015
Tables/Schedules
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments	October 31 2014 Revenues $ 1,583,796 Net income (loss) $ 714,031 Net income (loss) per share $ 0.04

Note 13. Disclosures About Oi49

Note 13. Disclosures About Oil and Gas Producing Activities (unaudited): Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure (Tables)	12 Months Ended
	Oct. 31, 2015
Tables/Schedules
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure	October 31, 2015 October 31, 2014 Proved oil and gas properties $ 3,906,215 $ 3,906,215 Proved undeveloped oil and gas leaseholds 1,241,724 1,209,724 5,147,939 5,115,939 Less accumulated depletion and impairment (2,623,339 ) (100,062 ) Net oil and gas properties 2,524,600 5,015,877 Undeveloped oil and gas leaseholds $ 2,932,730 $ 2,932,730

Note 13. Disclosures About Oi50

Note 13. Disclosures About Oil and Gas Producing Activities (unaudited): Schedule of Aging of Capitalized Exploratory Well Costs (Tables)	12 Months Ended
	Oct. 31, 2015
Tables/Schedules
Schedule of Aging of Capitalized Exploratory Well Costs	2015 2014 Acquisition of properties: Proved $ - $ 2,634,245 Proved undeveloped 32,000 3,251,669 Development costs - 7,833 Exploration costs 16,513 41,802 Total $ 48,513 $ 5,935,549

Note 14. Results of Operation51

Note 14. Results of Operations For Oil and Gas Producing Activities: Schedule of Capitalized Costs of Unproved Properties Excluded from Amortization (Tables)	12 Months Ended
	Oct. 31, 2015
Tables/Schedules
Schedule of Capitalized Costs of Unproved Properties Excluded from Amortization	2015 2014 Operating Revenues $ 602,980 $ 161,623 Costs & expenses: Exploration 16,513 41,802 Lease operating expenses 606,853 290,588 Depletion 88,287 34,475 Total costs & expenses 711,653 366,865 Income (loss) before income taxes (108,673 ) (205,242 ) Income tax (expense) benefit 42,569 80,665 Results of operations for oil and gas producing activities $ (66,104 ) $ (124,577 )

Note 15. Supplementary Oil an52

Note 15. Supplementary Oil and Gas Information (unaudited): Oil and Gas Delivery Commitments and Contracts Disclosure (Tables)	12 Months Ended
	Oct. 31, 2015
Tables/Schedules
Oil and Gas Delivery Commitments and Contracts Disclosure	Gallons Oil (Bbl) Gas (Mcf) NG Liquid Developed at October 31, 2014 299,856 51,298 - Proved undeveloped at October 31, 2014 1,432,256 1,257,190 6,890,814 Balance, October 31, 2014 1,732,112 1,308,488 6,890,814 Developed at October 31, 2015 350,000 - - Proved undeveloped at October 31, 2015 1,537,400 400,000 - Balance, October 31, 2015 1,887,400 400,000 -

Note 16. Standardized Measure53

Note 16. Standardized Measure of Discounted Future Net Cash Flows Relating To Proved Oil and Gas Reserves (unaudited): Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure (Tables)	12 Months Ended
	Oct. 31, 2015
Tables/Schedules
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure	2015 2014 Future cash inflows $ 75,950,000 $ 158,337,002 Future production costs (21,832,200 ) (36,046,933 ) Future development costs (13,760,000 ) (19,189,499 ) Future income tax expense (15,739,542 ) (40,209,222 ) Future net cash flows 24,618,258 62,891,348 10% annual discount for estimated timing of cash flows (12,766,202 ) (31,944,372 ) Standardized measure of discounted future net cash flows $ 11,852,202 $ 30,946,976

Note 16. Standardized Measure54

Note 16. Standardized Measure of Discounted Future Net Cash Flows Relating To Proved Oil and Gas Reserves (unaudited): Oil and Gas Net Production, Average Sales Price and Average Production Costs Disclosure (Tables)	12 Months Ended
	Oct. 31, 2015
Tables/Schedules
Oil and Gas Net Production, Average Sales Price and Average Production Costs Disclosure	Oil (Bbl) Gas (Mcf) NG Liquid October 31, 2014 (Average) $ 83.90 $ 4.79 $ 0.99 October 31, 2015 (Average) $ 40.00 $ 2.35 $ -

Note 16. Standardized Measure55

Note 16. Standardized Measure of Discounted Future Net Cash Flows Relating To Proved Oil and Gas Reserves (unaudited): Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows (Tables)	12 Months Ended
	Oct. 31, 2015
Tables/Schedules
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows	2015 2014 Standardized measure, beginning of year $ 30,946,976 $ 310,014 Purchase of reserves in place - 24,653,719 Purchase of proved undeveloped reserves - 118,243,820 Sale and transfers, net of production costs (3,873 ) 128,965 Net changes in prices and production costs (59,601,937 ) (31,375,014 ) Extensions, discoveries, and improved recovery - Changes in estimated future development costs 5,429,499 (15,014,499 ) Development costs incurred during the period - 7,833 Revision of quantity estimates (7,637,858 ) 4,307,700 Accretion of discount 19,178,170 (30,953,709 ) Net change in income taxes 24,469,680 (39,377,642 ) Changes in timing and other (928,601 ) 15,790 Standardized measure, end of year $ 11,852,056 $ 30,946,976

Note 1. Summary of Significan56

Note 1. Summary of Significant Accounting Policies: Going Concern (Details) - USD ($)	Oct. 31, 2015	Oct. 31, 2014
Details
Accumulated deficit	$ (7,092,714)	$ (2,282,333)
Capital	$ 979,538

Note 1. Summary of Significan57

Note 1. Summary of Significant Accounting Policies: Accounting For Oil and Gas Activities (Details) - USD ($)	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Details
Impairment of oil and gas properties	$ 2,427,968	$ 0
Exploration costs, including dry holes	$ 16,513	$ 41,802

Note 1. Summary of Significan58

Note 1. Summary of Significant Accounting Policies: Impairment of Long Lived Assets (Details) - USD ($)	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Details
Impairment of oil and gas properties	$ 2,427,968	$ 0

Note 2. Oil and Gas Properties

Note 2. Oil and Gas Properties (Details) - USD ($)	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Details
Depletion expense	$ 88,287	$ 34,475
Impairment of oil and gas properties	$ 2,427,968	$ 0

Note 3. Participation Agreeme60

Note 3. Participation Agreement (Details)	Oct. 31, 2015USD ($)
Details
Convertible Notes Payable, Current	$ 248,895

Note 4. Notes Payable - Affil61

Note 4. Notes Payable - Affiliates (Details) - USD ($)	Oct. 31, 2015	Oct. 31, 2014
Details
Note payable - related party	$ 107,070	$ 0
Accrued interest, related party	$ 15,287	$ 4,579

Note 5. Long-term Debt and No62

Note 5. Long-term Debt and Note Payable (Details) - USD ($)	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Details
Debt Instrument, Unamortized Discount	$ 136,599
Accretion of Discount	0	$ 19,516
Interest Payable, Current	$ 34,500

Note 5. Long-term Debt and No63

Note 5. Long-term Debt and Note Payable: Schedule of Debt (Details) - USD ($)	Oct. 31, 2015	Oct. 31, 2014
Details
Long term debt	$ 3,498,108	$ 2,294,943

Note 6. Asset Retirement Obli64

Note 6. Asset Retirement Obligation (Details) - USD ($)	Oct. 31, 2015	Oct. 31, 2014
Details
Asset retirement obligation	$ 321,101	$ 290,312

Note 7. Income Taxes_ Schedul65

Note 7. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Oct. 31, 2015	Oct. 31, 2014
Details
Deferred Tax Assets, Operating Loss Carryforwards	$ 2,270,721	$ 1,422,844
Deferred Tax Liabilities, Property, Plant and Equipment	(31,302)	(41,945)
Deferred Tax Assets, Valuation Allowance, Current	(2,239,419)	(1,380,899)
Deferred Tax Assets, Net	$ 0	$ 0

Note 8. Stockholder's Equity (D

Note 8. Stockholder's Equity (Details) - $ / shares	Oct. 31, 2015	Oct. 31, 2014
Details
Common Stock, Shares Authorized	450,000,000	450,000,000
Common Stock, Par Value	$ 0.001	$ 0.001

Note 10. Related Parties (Detai

Note 10. Related Parties (Details) - USD ($)	12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Details
Operating Leases, Rent Expense	$ 29,000	$ 26,000
Cost of Services, Oil and Gas	73,299	60,642
Marketing and Advertising Expense	201,110	$ 178,650
Related Party Costs	$ 77,465