Quarterly report pursuant to Section 13 or 15(d)

Going Concern

v3.5.0.2
Going Concern
9 Months Ended
Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern
Note 2. Going Concern

 

As shown in the accompanying financial statements, the Company has incurred an accumulated loss of $1,426,488 through September 30, 2016, and had working capital of $1,533,410 at September 30, 2016. The Company is subject to those risks associated with exploration stage companies.  The Company has sustained losses since inception and additional debt and equity financing will be required by the Company to fund its development activities and to monetize economically recoverable oil and gas reserves.

 

On June 30, 2016, the Company sold 3,007,519 shares of its common stock for an aggregate amount of $2,000,000 and in July 2016, the Company received the $2,000,000 funding. As a result, Management believes that its existing cash on hand will be sufficient to fund its operations for the next nine (9) months. However, no assurance can be given that the Company will be able to obtain additional financing to further its ongoing activities so that profitable operations can be attained. The Company also continues to search for producing and/or additional productive properties and seeks to strategically lease additional acreage positions adjoining leases currently owned by the Company.  There can be no assurance that the Company's efforts will be successful, or that those efforts will translate in a beneficial manner to the Company. The accompanying statements do not include any adjustments relating to the recoverability and classification of assets and/or liabilities that might be necessary, should the Company be unable to continue as a going concern.