Truleum (TRLM) 10-Q 13 Sep 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Sep. 11, 2019
Details
Registrant Name	ALPHA ENERGY INC
Registrant CIK	0000855787
Fiscal Year End	--12-31
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	333-197642
Entity Incorporation, State or Country Code	CO
Entity Tax Identification Number	90-1020566
Entity Address, Address Line One	4162 Meyerwood Drive
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77025
Entity Address, Address Description	Address of principal executive offices
Phone Fax Number Description	Registrant's Phone
City Area Code	713
Local Phone Number	316-0061
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,385,428
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current Assets
Cash and cash equivalents	$ 1,044	$ 240
Prepaid expenses	50,000	0
Total current assets	51,044	240
Oil and gas property, unproved, full cost	12,500	10,000
Total assets	63,544	10,240
Current liabilities:
Accounts payable	180,162	550,848
Interest payable	19,912	11,479
Short term advances related party	397	24,366
Short term note payable	50,000	0
Derivative Liability, Current	132,696	608,598
Total current liabilities	383,167	1,195,291
Convertible Credit line payable - related party, net of discount of $0 and $29,494, respectively	132,696	110,952
Asset retirement obligation	748	710
Liabilities	516,611	1,306,953
Shareholders' deficit:
Preferred shares	0	0
Common shares	1,762	1,714
Additional paid-in capital	1,498,459	607,806
Accumulated deficit	(1,953,288)	(1,906,233)
Total shareholders' deficit	(453,067)	(1,296,713)
Total liabilities and shareholders' deficit	$ 63,544	$ 10,240

Balance Sheets (Unaudited) - Pa

Balance Sheets (Unaudited) - Parenthetical - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Details
Debt Instrument, Unamortized Discount, Current	$ 0	$ 29,494
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	65,000,000	65,000,000
Common Stock, Shares, Issued	17,619,428	17,132,428
Common Stock, Shares, Outstanding	17,619,428	17,132,428

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Details
Revenues	$ 714	$ 3	$ 2,984	$ 1,543
Lease operating expenses	1,913	537	4,815	1,379
Gross Profit	(1,199)	(534)	(1,831)	164
Operating expenses:
Professional services	10,962	359,631	24,870	381,814
General and administrative expenses	145,299	19,084	292,329	38,055
Board of Director fees	48,000	0	96,000	0
Impairment of oil and gas properties	70,000	0	70,000	0
Total operating expenses	274,261	378,715	483,199	419,869
Operating loss	(275,460)	(379,249)	(485,030)	(419,705)
Other Nonoperating Income (Expense)
Interest expense	(14,595)	(25,590)	(37,927)	(42,997)
Loss on initial measurement of derivative liability	0	(23,301)	0	(61,829)
Loss on fair market value of derivative liability	3,750	(2,853)	475,902	(22,667)
Nonoperating Income (Expense)	(10,845)	(51,744)	437,975	(127,493)
Net Income (Loss)	$ (286,305)	$ (430,993)	$ (47,055)	$ (547,198)
Basic and diluted net loss per common share	$ (0.02)	$ (0.03)	$ 0	$ (0.03)
Basic and diluted weighted-average common shares outstanding	17,489,125	17,029,615	17,439,947	17,023,058

Statements of Changes in Stockh

Statements of Changes in Stockholders' Deficit - USD ($)	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Total
Equity Balance, Starting at Dec. 31, 2017	$ 0	$ 1,702	$ 101,378	$ (380,855)	$ (277,775)
Shares Outstanding, Starting at Dec. 31, 2017	0	17,016,428
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture	$ 0	$ 9	380,391	0	380,400
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0	84,000
Net Income (Loss)	$ 0	$ 0	0	(547,198)	(547,198)
Shares Outstanding, Ending at Jun. 30, 2018	0	17,100,428
Equity Balance, Ending at Jun. 30, 2018	$ 0	$ 1,711	481,769	(928,053)	(444,573)
Equity Balance, Starting at Dec. 31, 2018	$ 0	$ 1,714	607,806	(1,906,233)	(1,296,713)
Shares Outstanding, Starting at Dec. 31, 2018	0	17,132,428
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture		$ 13	536,688	0	536,701
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures		133,000
Stock Issued During Period, Value, New Issues	$ 0	$ 19	193,981	0	194,000
Stock Issued During Period, Shares, New Issues	0	194,000
Stock Issued During Period, Value, Issued for Services	$ 0	$ 16	159,984	0	160,000
Stock Issued During Period, Shares, Issued for Services	0	160,000
Net Income (Loss)	$ 0	$ 0	0	(47,055)	(47,055)
Shares Outstanding, Ending at Jun. 30, 2019	0	17,619,428
Equity Balance, Ending at Jun. 30, 2019	$ 0	$ 1,762	$ 1,498,459	$ (1,953,288)	$ (453,067)

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Net Cash Provided by (Used in) Operating Activities
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (47,055)	$ (547,198)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities
Debt discount amortization	29,494	39,522
Excess fair market value of initial measurement of derivative liability	0	61,829
Stock issued for consulting	110,000	380,400
Loss on fair market value of derivative liability	(475,902)	22,667
Impairment loss	70,000	0
Asset retirement obligation expense	38	37
Changes in operating assets and liabilities:
Increase (Decrease) in Prepaid Expense	0	0
Account receivable	0	935
Accounts payable	171,580	1,537
Interest payable	8,433	3,476
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	(133,412)	(36,795)
Net Cash Provided by (Used in) Investing Activities
Capital expenditures	(22,500)	0
Net Cash Provided by (Used in) Investing Activities	(22,500)	0
Net Cash Provided by (Used in) Financing Activities
Proceeds from related party advances	19,841	0
Proceeds from sale of stock	194,000	0
Proceeds from convertible credit line payable - related party	0	35,846
Repayments of related party advances	(53,375)	0
Payments on convertible debt	(3,750)	0
Net Cash Provided by (Used in) Financing Activities	156,716	35,846
Net change in cash	804	(949)
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	240	1,061
Cash and Cash Equivalents, at Carrying Value, Ending Balance	1,044	112
Supplemental Cash Flow Information
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	0	0
Income Taxes Paid, Net	0	0
Cash Flow, Noncash Investing and Financing Activities Disclosure
Debt discount on convertible credit line payable - related party	0	35,846
Note Payable for oil and gas property	50,000	0
Stock issued for accrued compensation and director fees	$ 536,701	$ 0

NOTE 1 - BASIS OF PRESENTATION

NOTE 1 - BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2019
Notes
NOTE 1 - BASIS OF PRESENTATION	NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited interim financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows as of June 30, 2019 and 2018, have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted. It is suggested that these unaudited interim financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2018 audited financial statements. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the operating results for the full year. Related party policy In accordance with ASC 850, the Company discloses: the nature of the related party relationship(s) involved; a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Revenue and Cost Recognition The Company records revenues from the sales of natural gas and crude oil when the production is produced and sold, and also when collectability is ensured. The Company may in the future have an interest with other producers in certain properties, in which case the Company will use the sales method to account for gas imbalances. Under this method, revenue will be recorded on the basis of natural gas actually sold by the Company. The Company also reduces revenue for other owners’ natural gas sold by the Company that cannot be volumetrically balanced in the future due to insufficient remaining reserves. The Company’s remaining over- and under-produced gas balancing positions are considered in the Company’s proved oil and natural gas reserves. The Company had no gas imbalances at June 30, 2019 or December 31, 2018. The Company recorded revenues of $2,984 and $1,543 and costs of revenues totaling $4,815 and $1,379 during the six months ended June 30, 2019 and 2018. There were no accounts receivable at June 30, 2019 and December 31, 2018. Derivative Liabilities The Company records a debt discount related to the issuance of convertible debts that have conversion features at adjustable rates. The debt discount for the convertible instruments is recognized and measured by allocating a portion of the proceeds as an increase in additional paid-in capital and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features. The debt discount will be accreted by recording additional non-cash gains and losses related to the change in fair market values of derivative liabilities over the life of the convertible notes. Accounting Standards Adopted During the Quarter Ended June 30, 2019 The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), as of January 1, 2019, using the modified retrospective approach. The modified retrospective approach provides a method for recording existing leases at the application date. In addition, the Company elected the available practical expedients permitted under the transaction guidance within the new standard. There was no impact from the adoption of the new standard as the Company does not currently have any operating leases. Recently Issued Accounting Standards Not Yet Adopted The Company has reviewed all recently issued, but not yet adopted, accounting standards, in order to determine their effects, if any, on its results of operations, financial position or cash flows. Based on that review, the Company believes that no other pronouncements will have a significant effect on its financial statements.

NOTE 2 - GOING CONCERN

NOTE 2 - GOING CONCERN	6 Months Ended
	Jun. 30, 2019
Notes
NOTE 2 - GOING CONCERN	NOTE 2 – GOING CONCERN The Company’s interim unaudited financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the date of issuance of this report. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

NOTE 3 - RELATED PARTY TRANSACT

NOTE 3 - RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2019
Notes
NOTE 3 - RELATED PARTY TRANSACTIONS	NOTE 3 – RELATED PARTY TRANSACTIONS The Company neither owns nor leases any real or personal property. The officers and directors for the Company are involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interest. The Company has not formulated a policy for the resolution of such conflicts. The Chief Financial Officer allows the use of his residence as an office for the Company at no charge. During the three months ended June 30, 2019, the Company received no advances from AEI Acquisition Company, a majority shareholder, from its convertible credit line. During the period ending December 31, 2018 the Company received $24,366 in short -term loans from Fidare Consulting Group, LLC. During the three months ended March 31, 2019, the Company received $23,841 in short-term advances from Fidare Consulting Group, LLC. During the three months ended June 30, 2019 the Company repaid in full the short-term loan in the amount of $48,207. On March 27, 2019 the Company entered into a short-term Promissory Note with ZHQ Holdings (75%), LLP and Pure Oil & Gas, Inc. (25%) for $50,000. The note was due April 30, 2019 and has not been repaid. The note is secured by 50,000 shares of the Company’s common stock at $1.00 per share. The funds were used to pay Escrow Deposit on the Rogers County Project. The note is in default as of June 30, 2019 and therefore, is accruing interest at the rate of $50 per day from April 30, 2019.

NOTE 4 - DERIVATIVE LIABILITY

NOTE 4 - DERIVATIVE LIABILITY	6 Months Ended
	Jun. 30, 2019
Notes
NOTE 4 - DERIVATIVE LIABILITY	NOTE 4 – DERIVATIVE LIABILITY As discussed in Note 1, on a recurring basis, we measure certain financial assets and liabilities based upon the fair value hierarchy. The following table presents information about the Company’s liabilities measured at fair value as of June 30, 2019 and December 31, 2018: Liabilities Level 1 Level 2 Level 3 Fair Value at June 30, 2019 Derivative Liability $ - $ - $ 132,696 Fair Value at December 31, 2018 Derivative Liability $ - $ - $ 608,598 As of June 30, 2019, the Company had a $132,696 derivative liability balance on the balance sheet and recorded a gain from derivative liability fair value adjustment of $475,902 during the six months ended June 30, 2019. The fair market value adjustments as of June 30, 2019 were calculated utilizing a max valuation method using the following assumptions: exercise price of $1.00, 132,696 common shares the balance can be converted into and a stock price at measurement date of $1.00. A summary of the activity of the derivative liability for the year ended December 31, 2018 is shown below: Balance at December 31, 2017 $ 238,674 Derivative liabilities recorded 49,580 Day one loss 122,362 Change due to note conversion - Loss on change in derivative fair value adjustment 197,982 Balance at December 31, 2018 $ 608,598 A summary of the activity of the derivative liability for the three months ended June 30, 2019 is shown below: Balance at December 31, 2018 $ 608,598 Derivative liabilities recorded - Day one loss - Change due to note conversion - Gain on change in derivative fair value adjustment (475,902) Balance at June 30, 2019 $ 132,696

NOTE 5 - EQUITY

NOTE 5 - EQUITY	6 Months Ended
	Jun. 30, 2019
Notes
NOTE 5 - EQUITY	NOTE 5 – EQUITY The Company is authorized to issue up to 10,000,000 shares of $0.0001 par value preferred stock and 65,000,000 shares of $0.0001 par value common stock. For the six months ended June 30, 2019, 133,000 shares with a fair value of $536,701 were issued for stock compensation for directors and the CEO. During the six months ended June 30, 2019, the Company issued 60,000 shares of common stock with a fair value of $60,000 for consulting services. During the six months ending June 30, 2019, the Company sold 194,000 shares of common stock for $1.00 per share in a private placement. These shares have not yet been issued. The shares are considered issued and outstanding as of June 30, 2019 as the issuance of the shares is considered an administrative act. On April 2, 2019 the Company entered into a six month Corporate Finance Representation Agreement with Rebus Capital Group, LLC as the Company’s corporate finance advisor. Rebus was issued 100,000 shares of common stock for services valued at $1 per share or $100,000. $50,000 of this amount was recorded as a prepaid expense and is included in current assets on the 2018 balance sheet and will be expensed in the quarter ended September 30, 2019.

NOTE 6 - NOTE PAYABLE

NOTE 6 - NOTE PAYABLE	6 Months Ended
	Jun. 30, 2019
Notes
NOTE 6 - NOTE PAYABLE	NOTE 6 – NOTE PAYABLE On March 27, 2019 the Company entered into a short-term Promissory Note with ZHQ Holdings (75%), LLP and Pure Oil & Gas, Inc (25%) for $50,000. The note is secured by 50,000 shares of the Company’s common stock at $1.00 per share. The funds were used to fund the deposit for the Purchase and Sale Agreement with Premier Gas Company, LLC (see Note 7). The note was due April 30, 2019 and has not been repaid. The note is in default as of June 30, 2019 and therefore, is accruing interest at the rate of $50 per day from April 30, 2019. Accrued interest on the note as of June 30, 2019 was $3,042.

NOTE 7 - OIL AND GAS PROPERTIES

NOTE 7 - OIL AND GAS PROPERTIES	6 Months Ended
	Jun. 30, 2019
Notes
NOTE 7 - OIL AND GAS PROPERTIES	NOTE 7 – OIL AND GAS PROPERTIES The Company entered into a Letter of Intent with Chicorica, LLC on December 13, 2018 and extended the agreement effective August 29, 2019. Chicorica has developed an oil and gas exploration project in northeastern New Mexico (the “Frostback Project”) that includes several prospective areas and Alpha is interested in exploring in these areas and utilizing Chicorica’s seismic and other data and expertise. The agreement is for $95,000 with $10,000 paid on signing the LOI and $85,000 due by October 1, 2019. As of September 6, 2019, the Company has not made the final payment. On March 13th, 2019, Alpha Energy, Inc. (the “Company”) entered into a Purchase and Sale Agreement (the “Agreement”) with Premier Gas Company, LLC. (“Premier”) to acquire oil and gas assets in Oklahoma in consideration of a Purchase Price of One Million Six Hundred Thousand Dollars ($1,600,000) (the “Purchase Price”) that includes a non-refundable deposit in the amount of Fifty Thousand Dollars ($50,000) (the “Deposit) through the Escrow Agent. The Deposit shall be credited against the cash portion of the Purchase Price at Closing. Although the dates on the Purchase and Sale agreements were dated January 29th, 2019, the contracts were not ultimately delivered to the company until March 13th, 2019 and the deposit was advanced to the Escrow Agent. The note payable associated with the escrow deposit is in default and the Company has recorded $70,000 of impairment of this oil and gas property.

NOTE 8 - COMMITMENTS

NOTE 8 - COMMITMENTS	6 Months Ended
	Jun. 30, 2019
Notes
NOTE 8 - COMMITMENTS	NOTE 8 – COMMITMENTS On January 1, 2019 the Company entered into a Consulting Services Agreement with 5 Letter J’s, LLC to facilitate a business plan for instituting a $26,500,000 capital raise through the sale of Company Class A Preferred stock. The agreement is for an initial 3-month period and can be extended perpetually. The monthly fee is $5,000 with a grant of 60,000 shares of restricted Company Common stock valued at $60,000 for the period of the agreement.

NOTE 9 - SUBSEQUENT EVENTS

NOTE 9 - SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2019
Notes
NOTE 9 - SUBSEQUENT EVENTS	NOTE 9 – SUBSEQUENT EVENTS On July 19, 2019, the Company sold 6,000 shares of common stock for $6,000 in a private placement. These shares have not been issued. On August 26, 2019 AEI Acquisition Company, LLC advanced $13,000 against the Revolving Credit Line to pay professional fees. On September 5, 2019, the Company sold 5,000 shares of common stock for $5,000 in a private placement. These shares have not been issued.

NOTE 1 - BASIS OF PRESENTATION_

NOTE 1 - BASIS OF PRESENTATION: Related party policy (Policies)	6 Months Ended
	Jun. 30, 2019
Policies
Related party policy	Related party policy In accordance with ASC 850, the Company discloses: the nature of the related party relationship(s) involved; a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

NOTE 1 - BASIS OF PRESENTATIO_2

NOTE 1 - BASIS OF PRESENTATION: Revenue and Cost Recognition (Policies)	6 Months Ended
	Jun. 30, 2019
Policies
Revenue and Cost Recognition	Revenue and Cost Recognition The Company records revenues from the sales of natural gas and crude oil when the production is produced and sold, and also when collectability is ensured. The Company may in the future have an interest with other producers in certain properties, in which case the Company will use the sales method to account for gas imbalances. Under this method, revenue will be recorded on the basis of natural gas actually sold by the Company. The Company also reduces revenue for other owners’ natural gas sold by the Company that cannot be volumetrically balanced in the future due to insufficient remaining reserves. The Company’s remaining over- and under-produced gas balancing positions are considered in the Company’s proved oil and natural gas reserves. The Company had no gas imbalances at June 30, 2019 or December 31, 2018. The Company recorded revenues of $2,984 and $1,543 and costs of revenues totaling $4,815 and $1,379 during the six months ended June 30, 2019 and 2018. There were no accounts receivable at June 30, 2019 and December 31, 2018.

NOTE 1 - BASIS OF PRESENTATIO_3

NOTE 1 - BASIS OF PRESENTATION: Derivative Liabilities (Policies)	6 Months Ended
	Jun. 30, 2019
Policies
Derivative Liabilities	Derivative Liabilities The Company records a debt discount related to the issuance of convertible debts that have conversion features at adjustable rates. The debt discount for the convertible instruments is recognized and measured by allocating a portion of the proceeds as an increase in additional paid-in capital and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features. The debt discount will be accreted by recording additional non-cash gains and losses related to the change in fair market values of derivative liabilities over the life of the convertible notes.

NOTE 1 - BASIS OF PRESENTATIO_4

NOTE 1 - BASIS OF PRESENTATION: Accounting Standards Adopted During the Quarter Ended June 30, 2019 (Policies)	6 Months Ended
	Jun. 30, 2019
Policies
Accounting Standards Adopted During the Quarter Ended June 30, 2019	Accounting Standards Adopted During the Quarter Ended June 30, 2019 The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), as of January 1, 2019, using the modified retrospective approach. The modified retrospective approach provides a method for recording existing leases at the application date. In addition, the Company elected the available practical expedients permitted under the transaction guidance within the new standard. There was no impact from the adoption of the new standard as the Company does not currently have any operating leases.

NOTE 1 - BASIS OF PRESENTATIO_5

NOTE 1 - BASIS OF PRESENTATION: Recently Issued Accounting Standards Not Yet Adopted (Policies)	6 Months Ended
	Jun. 30, 2019
Policies
Recently Issued Accounting Standards Not Yet Adopted	Recently Issued Accounting Standards Not Yet Adopted The Company has reviewed all recently issued, but not yet adopted, accounting standards, in order to determine their effects, if any, on its results of operations, financial position or cash flows. Based on that review, the Company believes that no other pronouncements will have a significant effect on its financial statements.

NOTE 4 - DERIVATIVE LIABILITY_

NOTE 4 - DERIVATIVE LIABILITY: Fair Value, Assets and Liabilities measured on recurring basis (Tables)	6 Months Ended
	Jun. 30, 2019
Tables/Schedules
Fair Value, Assets and Liabilities measured on recurring basis	Liabilities Level 1 Level 2 Level 3 Fair Value at June 30, 2019 Derivative Liability $ - $ - $ 132,696 Fair Value at December 31, 2018 Derivative Liability $ - $ - $ 608,598

NOTE 4 - DERIVATIVE LIABILITY_2

NOTE 4 - DERIVATIVE LIABILITY: Schedule of Derivative Liability Activity (Tables)	6 Months Ended
	Jun. 30, 2019
Tables/Schedules
Schedule of Derivative Liability Activity	Balance at December 31, 2017 $ 238,674 Derivative liabilities recorded 49,580 Day one loss 122,362 Change due to note conversion - Loss on change in derivative fair value adjustment 197,982 Balance at December 31, 2018 $ 608,598 A summary of the activity of the derivative liability for the three months ended June 30, 2019 is shown below: Balance at December 31, 2018 $ 608,598 Derivative liabilities recorded - Day one loss - Change due to note conversion - Gain on change in derivative fair value adjustment (475,902) Balance at June 30, 2019 $ 132,696

NOTE 1 - BASIS OF PRESENTATIO_6

NOTE 1 - BASIS OF PRESENTATION: Revenue and Cost Recognition (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Details
Revenues	$ 714	$ 3	$ 2,984	$ 1,543
Lease operating expenses	1,913	$ 537	4,815	$ 1,379
Accounts Receivable, after Allowance for Credit Loss	$ 0		$ 0		$ 0

NOTE 3 - RELATED PARTY TRANSA_2

NOTE 3 - RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
All
Related Party Transaction, Description of Transaction			Company received no advances from AEI Acquisition Company
Fidare Consulting Group, LLC
Related Party Transaction, Description of Transaction	Company repaid in full the short-term loan in the amount of $48,207	Company received $23,841 in short-term advances from Fidare Consulting Group, LLC.		Company received $24,366 in short -term loans from Fidare Consulting Group, LLC
Debt Instrument, Face Amount		$ 23,841		$ 24,366
Debt Instrument, Description		short-term advances		short -term loans
Repayments of Short-term Debt	$ 48,207
ZHQ Holdings (75%), LLP and Pure Oil & Gas, Inc. (25%)
Related Party Transaction, Description of Transaction			Company entered into a short-term Promissory Note with ZHQ Holdings (75%), LLP and Pure Oil & Gas, Inc. (25%) for $50,000
Debt Instrument, Face Amount	$ 50,000		$ 50,000
Debt Instrument, Description			short-term Promissory Note
Debt Instrument, Issuance Date			Mar. 27, 2019
Debt Instrument, Maturity Date			Apr. 30, 2019
Debt Instrument, Collateral			secured by 50,000 shares of the Company’s common stock at $1.00 per share

NOTE 4 - DERIVATIVE LIABILITY_3

NOTE 4 - DERIVATIVE LIABILITY: Fair Value, Assets and Liabilities measured on recurring basis (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Derivative Liability, Fair Value, Gross Asset	$ 132,696
Fair Value, Inputs, Level 1
Derivative Liability, Fair Value, Gross Asset	0	$ 0
Fair Value, Inputs, Level 2
Derivative Liability, Fair Value, Gross Asset	0	0
Fair Value, Inputs, Level 3
Derivative Liability, Fair Value, Gross Asset	$ 132,696	$ 608,598

NOTE 4 - DERIVATIVE LIABILITY (

NOTE 4 - DERIVATIVE LIABILITY (Details)	6 Months Ended
	Jun. 30, 2019USD ($)
Details
Derivative Liability, Fair Value, Gross Asset	$ 132,696
Loss from derivative liability fair value adjustment	$ 475,902

NOTE 4 - DERIVATIVE LIABILITY_4

NOTE 4 - DERIVATIVE LIABILITY: Schedule of Derivative Liability Activity (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Details
Derivative Liability, Balance, Start of Period	$ 608,598	$ 238,674
Derivative liabilities recorded	0	49,580
Day one loss	0	122,362
Change due to note conversion	0	0
Loss on change in derivative fair value adjustment	(475,902)	197,982
Derivative Liability, Balance, End of Period	$ 132,696	$ 608,598

NOTE 5 - EQUITY (Details)

NOTE 5 - EQUITY (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	65,000,000	65,000,000
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Sale of Stock Transaction #1
Shares, Issued	133,000
Stock Issued	$ 536,701
Sale of Stock, Description of Transaction	stock compensation for directors and the CEO
Sale of Stock Transaction #2
Shares, Issued	60,000
Stock Issued	$ 60,000
Sale of Stock, Description of Transaction	consulting services
Sale of Stock Transaction #3
Shares, Issued	194,000
Sale of Stock, Description of Transaction	private placement
Sale of Stock, Price Per Share	$ 1
Sale of Stock Transaction #4
Shares, Issued	100,000
Stock Issued	$ 100,000
Sale of Stock, Price Per Share	$ 1
Sale of Stock, Transaction Date	Apr. 2, 2019

NOTE 6 - NOTE PAYABLE (Details)

NOTE 6 - NOTE PAYABLE (Details) - Debt Instrument #1	6 Months Ended
	Jun. 30, 2019USD ($)
Debt Instrument, Issuance Date	Mar. 27, 2019
Debt Instrument, Issuer	Company
Debt Instrument, Description	short-term Promissory Note
Debt Instrument, Face Amount	$ 50,000
Debt Instrument, Collateral	secured by 50,000 shares of the Company’s common stock at $1.00 per share
Debt Instrument, Maturity Date	Apr. 30, 2019
Interest Payable, Current	$ 3,042

NOTE 7 - OIL AND GAS PROPERTI_2

NOTE 7 - OIL AND GAS PROPERTIES (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Details
Impairment loss	$ 70,000	$ 0

NOTE 9 - SUBSEQUENT EVENTS (Det

NOTE 9 - SUBSEQUENT EVENTS (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Proceeds from related party advances	$ 19,841	$ 0
Event #1
Subsequent Event, Date	Jul. 19, 2019
Subsequent Event, Description	Company sold 6,000 shares of common stock for $6,000 in a private placement
Event #2
Subsequent Event, Date	Aug. 26, 2019
Subsequent Event, Description	AEI Acquisition Company, LLC advanced $13,000 against the Revolving Credit Line to pay professional fees
Proceeds from related party advances	$ 13,000
Event #3
Subsequent Event, Date	Sep. 5, 2019
Subsequent Event, Description	Company sold 5,000 shares of common stock for $5,000 in a private placement