Years ended December 31,

2004

2003

2002

Revenues and other income

Oil and gas revenues

$

6,013,374

$

6,040,872

$

5,437,723

Pipeline transportation revenues

92,599

163,393

259,677

Interest Income

3,501

985

3,078

Total revenues and other income

6,109,474

6,205,250

5,700,478

Costs and expenses

Production costs and taxes

3,364,429

3,412,201

3,094,731

Depreciation, depletion and amortization

(Notes 4, 5 and 6)

2,067,566

2,308,007

2,413,597

General and administrative

1,177,183

1,486,280

1,868,141

Interest expense (Notes 9, 10 and 13)

1,367,180

1,120,738

578,039

Public relations

35,347

31,183

193,229

Professional fees

779,180

549,503

707,296

Loss on impairment of long-lived asset

-

495,000

-

Loss on sale of equipment, net

107,744

-

Total costs and expenses

8,898,629

9,402,912

8,855,033

Operating loss

(2,789,155

)

(3,197,662

)

(3,154,555

)

Gain from extinguishment of debt (Note 16)

336,820

-

Gain on Preferred Stock (Note 9)

458,310

-

Net loss attributable to common stockholders before

cumulative effects of a changes in accounting principle

(1,994,025

)

(3,197,662

)

(3,154,555

)

Cumulative effect of a change in accounting principle (Note 10)

-

(351,204

)

-

Cumulative effect of a change in accounting principle (Note 9)

-

365,675

-

Net loss

(1,994,025

)

(3,183,191

)

(3,154,555

)

Dividends on preferred stock (Note 9)

-

(268,389

)

(506,789

)

Net loss attributable to common stockholders

$

(1,994,025

)

$

(3,451,580

)

$

(3,661,344

)

Net loss attributable to common stockholders per shares

Basic and diluted:

Operations

$

(0.05

)

$

(0.27

)

$

(0.29

)

Cumulative effect of a change in accounting principle (Note 10)

-

(0.03

)

-

Cumulative effect of a change in accounting principle (Note 9)

0.03

-

Dividends on preferred stock

(.02

)

(.04

)

Total

$

(0.05

)

$

(0.29

)

$

(0.33

)

Weighted average shares outstanding

40,855,972

11,956,135

11,062,436