10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

AMENDMENT NO. 1

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934: For the quarterly period ended June 30, 2012

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934: For the transition period from ____to____

  Commission File Number: 000-51465

United American Petroleum Corp.

(Exact name of registrant as specified in its charter)

Nevada	20-1904354
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

9600 Great Hills Trail, Suite 150W, Austin, TX 78759

(Address of principal executive offices) (Zip Code)

(512) 852-7888

(Registrant’s Telephone Number, including area code)

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x    Yes    o    No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes  o No

Indicate by check mark whether the registrant is a large accelerated file, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o		Accelerated filer	o
Non-accelerated filer	o	(Do not check if a smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  o    Yes    x    No

As of August 14, 2012, there were 50,034,543 shares of the issuer's $.001 par value common stock issued and outstanding.  

1

EXPLANATORY NOTE

This Amendment No. 1 on Form 10-Q/A of United American Petroleum Corp. (the “Registrant”) amends the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, as filed by the Registrant with the Securities and Exchange Commission on August 14, 2012, and is being filed solely to include the 101 XBRL Interactive Data File exhibits as required by Item 6 of Form 10-Q. As permitted by Rule 405(a)(2)(ii) of Regulation S-T, Exhibit 101 is permitted to be furnished by amendment within 30 days of the original filing date of the Form 10-Q.

No other items are being amended except as described in this Explanatory Note and this Amendment does not reflect any events occurring after the filing of our original Quarterly Report on Form 10-Q for the three and six months ended June 30, 2012.

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Item 6.  Exhibits.

Exhibit No.	Description
31.1	Certification of Principal Executive and Financial Officer, pursuant to Rule 13a-14 and 15d-14 of the Securities Exchange Act of 1934 (1)
32.1	Certification of Principal Executive and Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (1)
101.ins	XBRL Instance Document (2)
101.def	XBRL Taxonomy Definition Linkbase Document (2)
101.sch	XBRL Taxonomy Schema Document (2)
101.cal	XBRL Taxonomy Calculation Linkbase Document (2)
101.lab	XBRL Taxonomy Label Linkbase Document (2)
101.pre	XBRL Taxonomy Presentation Linkbase Document (2)

(1)                                 Included in the Registrant’s Quarterly Report on Form 10-Q filed on August 14, 2012.

(2)                                 Filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	United American Petroleum Corp., a Nevada corporation
Date: September 6, 2012	By:	/s/ Michael Carey
		Michael Carey
		Chief Executive Officer, Chief Financial Officer, President, Treasurer and a director (Principal Executive and Financial Officer)

4

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Convertible Note Payable (Detail) - Notes issued in 2012 (USD $)	1 Months Ended	3 Months Ended	5 Months Ended	6 Months Ended
	Feb. 10, 2012	Mar. 30, 2012	Jun. 04, 2012	Jun. 30, 2012
Total Proceeds	$ 150,000	$ 250,000	$ 215,000	$ 615,000
Conversion Option Liability	189,052	514,783	325,831	1,029,666
Relative Fair Value of Warrants	61,354	130,853	97,313	289,520
	250,406	645,636	423,144	1,319,186
Debt Discount	(150,000)	(250,000)	(215,000)	(615,000)
Loss on debt derivative	$ 100,406	$ 395,636	$ 208,144	$ 704,186

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Embedded Derivative Liabilities

3 Months Ended

Jun. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Text Block]

4.            Embedded Derivative Liabilities

Conversion Option Liability

As described in Note 7, the Company has issued convertible notes with certain reset provisions. The Company accounted for these reset provisions in accordance with ASC 815-40, which requires that the Company bifurcate the embedded conversion option as liability at the grant date and to record changes in fair value relating to the conversion option liability in the statement of operations as of each subsequent balance sheet date.   The debt discount related to the convertible note is amortized over the life of the note using the effective interest method.  See Note 6 for a reconciliation of the changes in fair value of the Company’s embedded derivative.  

December 31, 2010 Convertible Notes (First Financing)

On April 13, 2012, the Company converted a $620,000 convertible note into 1,240,000 shares of common stock.  On the conversion date, the Company determined a fair value of $1,280,115 for the conversion option liability for this convertible note using the Black Scholes Option Pricing Model based upon the following:  dividend yield of -0-%, volatility of 108.17%, risk free rate of 0.27% and an expected term of approximately 1.72 years.  The Company recognized a non-cash loss included in other expense of $982,960 preceding conversion for the period ended June 30, 2012.

On June 1, 2012, the Company converted $590,000 of its convertible notes into 1,180,000 shares of common stock.  On the conversion date, the Company determined a fair value of $955,179 for these convertible notes using the Black Scholes Option Pricing Model based upon the following: dividend yield of -0-%, volatility of 111.24%, risk free rate of 0.25% and an expected term of approximately 1.58 years.  The Company recognized a non-cash loss included in other expense of $668,692 preceding conversion for the period ended June 30, 2012.

For the period ended June 30, 2012, the Company recognized a reduction of embedded derivative from the first installment of its convertible notes in the amount of $2,235,294.  This amount was recorded to additional paid-in capital.

October 14, 2011 Convertible Notes (Second Financing)

On June 7, 2012, the Company converted $1,590,000 of its convertible notes into 3,180,000 shares of common stock.  On the conversion date, the Company determined a fair value of $2,258,375 for these convertible notes using the Black Scholes Option Pricing Model based upon the following: dividend yield of -0-%, volatility of 102.93%, risk free rate of 0.27% and an expected term of approximately 2.35 years.  The Company recognized a non-cash loss included in other expense of $674,380 preceding conversion for the period ended June 30, 2012.

For the period ended June 30, 2012, the Company recognized a reduction of embedded derivative from the second installment of its convertible notes in the amount of $2,258,375.  This amount was recorded to additional paid-in capital.

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Related Party Transactions

3 Months Ended

Jun. 30, 2012

Related Party Transactions Disclosure [Text Block]

3.            Related Party Transactions

As of June 30, 2012, the Company had a related party receivable of $8,784.  As of December 31, 2011, the Company had a related party payable in the amount of $25,718 payable.  The June 30, 2012 balance is related to one Company with working interest amounts payable to the Company.  The December 31, 2011 balance is related to two Companies with working interest amounts receivable from the Company.  Our directors are also officers in these Companies.

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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)	Jun. 30, 2012	Dec. 31, 2011
CURRENT ASSET
Cash	$ 591,337	$ 593,469
Accounts receivable	27,786	35,405
Related party receivables	8,784	25,718
Prepaid expenses	8,394	0
Other receivable	133,626	160,302
Total current assets	769,927	814,894
Evaluated, net of accumulated depletion of $58,437 and $23,135 as of June 30, 2012 and December 31, 2010, respectively	553,536	528,336
Unevaluated	822,155	617,630
TOTAL ASSETS	2,145,618	1,960,860
CURRENT LIABILITIES
Accounts payable and accrued liabilities	214,459	217,702
Other payable	451,695	431,151
Total current liabilities	666,154	648,853
Accrued interest	0	141,255
Convertible note payable, net of discount of $0 and $1,561,997 as of June 30, 2012 and December 31, 2011, respsectively	0	623,003
Embedded derivative liability	0	1,138,989
Asset retirement obligation	59,526	56,012
TOTAL LIABILITIES	725,680	2,608,112
STOCKHOLDERS' DEFICIT
Common stock, $0.001 par value, 100,000,000 shares authorized, 47,250,000 shares issued and 50,034,043 and 44,000,000 shares outstanding, respectively	50,035	44,000
Additional paid-in capital	8,283,103	487,739
Accumulated deficit	(6,913,200)	(1,178,991)
Total stockholders' deficit	1,419,938	(647,252)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 2,145,618	$ 1,960,860

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Nature of Operations and Basis of Presentation

3 Months Ended

Jun. 30, 2012

Significant Accounting Policies [Text Block]

 1.           Nature of Operations and Basis of Presentation

Nature of Operations

4 Phoenix Oil & Gas, LLC, a limited liability company, was formed under the laws of the state of Texas on October 19, 2009 (“Predecessor”).   On August 10, 2010, we formed United American Petroleum Corp. a Company incorporated under the laws of the state of Nevada.  United American Petroleum Corp.’s principal business is the acquisition and management of leasehold interests in petroleum and natural gas rights, either directly or indirectly, and the exploitation and development of properties subject to these leases.  In these notes, the terms “United,” “Company,” “we,” “us,” “successor," or “our” mean United American Petroleum Corp.

Basis of Presentation

These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim consolidated financial information and with the instructions to Securities and Exchange Commission (“SEC”) Form 10-Q and Article 8 of SEC Regulation S-X. The principles for interim consolidated financial information do not require the inclusion of all the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements on Form 10-K for the years ended December 31, 2011. The condensed consolidated financial statements included herein are unaudited; however, in the opinion of management, they contain all normal recurring adjustments necessary for a fair statement of the condensed results for the interim periods. Operating results for the six month period ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. We made certain reclassifications to prior-period amounts to conform to the current presentation.

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Fair Value (Detail) (USD $)	0 Months Ended	1 Months Ended	2 Months Ended		3 Months Ended	5 Months Ended	6 Months Ended
	Apr. 13, 2012	Feb. 10, 2012	Jun. 01, 2012	Jun. 07, 2012	Mar. 30, 2012	Jun. 04, 2012	Jun. 30, 2012	Jun. 30, 2011
Embedded Derivative, Loss on Embedded Derivative	$ 982,960		$ 668,692	$ 674,380			$ 3,030,218	$ 1,444,781
Derivative, Loss on Derivative		$ 100,406			$ 395,636	$ 208,144	$ 704,186

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Convertible Note Payable (Detail) (USD $)	0 Months Ended		1 Months Ended	2 Months Ended		3 Months Ended		5 Months Ended	6 Months Ended
	Apr. 13, 2012	Oct. 14, 2011	Feb. 10, 2012	Jun. 01, 2012	Jun. 07, 2012	Jun. 11, 2012	Mar. 30, 2012	Jun. 04, 2012	Jun. 30, 2012	Jun. 30, 2011
Long-term Line of Credit		$ 1,500,000
Debt Instrument, Convertible, Conversion Price (in Dollars per share)	$ 0.50	$ 0.50		$ 0.50	$ 0.50	$ 0.50
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Item)		1.00
Proceeds from Convertible Debt		400,000	150,000				250,000	215,000
Warrants and Rights Outstanding		400,000	150,000				250,000	430,000
Derivative, Fixed Interest Rate		10.00%
Amortization of Debt Discount (Premium)									2,176,996	55,917
Debt Conversion, Converted Instrument, Shares Issued (in Shares)	1,240,000			1,180,000	3,180,000	300,481
Convertible Debt	$ 620,000			$ 590,000	$ 1,590,000	$ 150,240

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Going Concern

3 Months Ended

Jun. 30, 2012

Going Concern [Text Block]

2.            Going Concern

The Company has incurred a net loss and negative operating cash flows since inception through June 30, 2012. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's management is implementing plans to sustain the Company’s cash flow from operating activities and/or acquire additional capital funding. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Evaluated, net of accumulated depletion (in Dollars)	$ 58,437	$ 23,135
Convertible note payable, net of discount (in Dollars)	$ 0	$ 1,561,997
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	47,250,000	47,250,000
Common stock, shares outstanding	50,034,043	44,000,000

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Related Party Transactions (Detail) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Accounts Receivable, Related Parties	$ 8,784
Accounts Payable, Related Parties		$ 25,718

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Document And Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 14, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	United American Petroleum Corp.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		50,034,543
Amendment Flag	false
Entity Central Index Key	0001321516
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2

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Embedded Derivative Liabilities (Detail) (USD $)	0 Months Ended	2 Months Ended	1 Months Ended	2 Months Ended		3 Months Ended	2 Months Ended	6 Months Ended
	Apr. 13, 2012	Mar. 30, 2012	Feb. 10, 2012	Jun. 01, 2012	Jun. 07, 2012	Jun. 11, 2012	Jun. 04, 2012	Jun. 30, 2012	Jun. 30, 2011
Debt Conversion, Original Debt, Amount (in Dollars)	$ 620,000			$ 590,000	$ 1,590,000
Debt Conversion, Converted Instrument, Shares Issued (in Shares)	1,240,000			1,180,000	3,180,000	300,481
Fair Value, Convertible Debt, Valuation Techniques	$1,280,115			$955,179	$2,258,375
Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%	0.00%	0.00%	0.00%		0.00%
Fair Value Assumptions, Expected Volatility Rate	108.17%	110.64%	110.77%	111.24%	102.93%		112.94%
Fair Value Assumptions, Risk Free Interest Rate	0.27%	1.04%	1.04%	0.25%	0.27%		0.27%
Fair Value Assumptions, Expected Term	1 year 262 days	5 years	5 years	1 year 211 days	2 years 127 days		4 years 251 days
Embedded Derivative, Loss on Embedded Derivative (in Dollars)	982,960			668,692	674,380			3,030,218	1,444,781
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments (in Dollars)				$ 2,235,294	$ 2,258,375

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
REVENUE
Oil and Gas sales	$ 142,784	$ 16,279	$ 181,417	$ 23,732
Administrative Income	46,619	26,119	98,873	53,554
TOTAL REVENUE	189,403	42,398	280,290	77,286
OPERATING EXPENSES (INCOME)
Lease operating expenses	136,631	7,216	237,704	15,117
Accretion expense	1,543	206	3,514	505
Depletion expense	21,922	2,545	35,302	4,202
General and administrative	265,755	279,318	433,274	560,122
TOTAL OPERATING EXPENSES	425,851	289,285	709,794	579,946
NET LOSS BEFORE OTHER EXPENSE	(236,448)	(246,887)	(429,504)	(502,660)
OTHER INCOME (EXPENSE)
Interest Expense	(2,179,232)	(73,778)	(2,274,487)	(122,771)
Gain (Loss) on embedded derivatives	835,467	503,366	(3,030,218)	(1,444,781)
Total other expense	(1,343,765)	429,588	(5,304,705)	(1,567,552)
NET INCOME (LOSS)	$ (1,580,213)	$ 182,701	$ (5,734,209)	$ (2,070,212)
INCOME (LOSS) PER SHARE - BASIC (in Dollars per share)	$ (0.03)	$ 0.00	$ (0.12)	$ (0.05)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (in Shares)	48,815,701	43,950,000	48,064,881	43,950,000
INCOME (LOSS) PER SHARE - DILUTED (in Dollars per share)	$ (0.03)	$ 0.00	$ (0.12)	$ (0.05)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (in Shares)	48,815,701	46,370,000	48,064,881	43,950,000

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Convertible Note Payable

3 Months Ended

Jun. 30, 2012

Convertible Note Payable [Text Block]

7.Convertible Note Payable

Credit Facility – October 14, 2011

On October 14, 2011, we entered into a Note and Warrant Purchase Agreement with an investor pursuant to which the investor agreed to lend up to $1,500,000 in multiple installments in exchange for a senior secured convertible promissory note with a conversion price of $0.50 per share and five-year warrants to acquire shares of common stock at an exercise price of $1.00 per share in the amount of each installment. The first installment of $400,000 was delivered on the date of the Purchase Agreement and we issued 400,000 warrants to the investor in connection with the first installment. The notes matures on October 14, 2014, or upon default, whichever is earlier and bear interest at an annual rate of 10%.

The fourth installment of $150,000 was delivered on February 10, 2012 and we issued 150,000 warrants in connection with the fourth installment.

The fifth installment of $250,000 was delivered on March 30, 2012 and we issued 250,000 warrants in connection with the fifth installment.

The sixth installment of $215,000 was delivered on June 4, 2012 and we issued 430,000 warrants in connection with the sixth installment.

Using a pro rata contribution, the Company allocated the proceeds of the February 10, 2012, March 30, 2012 and June 4, 2012, convertible notes first to the relative fair value of the warrants and the remainder to the fair value of the embedded derivative on the date of grant as follows:

Notes issued in 2012

	February 10, 2012			March 30, 2012			June 4, 2012			Total
Total Proceeds	$	150,000		$	250,000		$	215,000		$	615,000
Allocated to:
Conversion Option Liability		189,052			514,783			325,831			1,029,666
Relative Fair Value of Warrants		61,354			130,853			97,313			289,520
		250,406			645,636			423,144			1,319,186
Debt Discount		(150,000	)		(250,000	)		(215,000	)		(615,000	)
Loss on debt derivative	$	100,406		$	395,636		$	208,144		$	704,186

During the six months ended June 30, 2012 and 2011, the Company amortized $2,176,996 and $55,917 of the debt discount to interest expense.  The debt discount from the convertible notes was immediately expensed upon the conversion of the convertible notes during the period ended June 30, 2012.

Conversion of Convertible Notes

December 31, 2010 Convertible Note Installments (First Financing)

On April 13, 2012, the Company issued 1,240,000 shares of common stock to one investor who elected to convert the outstanding principal amount of $620,000 due on its convertible promissory note date December 31, 2010 at a conversion price of $0.50 per share as provided in the note agreement.

On June 1, 2012, the Company issued 1,180,000 shares of common stock to one investor who elected to convert the outstanding principal amount of $590,000 due on its convertible promissory notes dated January 1, 2011, March 9, 2011, June 20, 2011 and June 30, 2011 at a conversion price of $0.50 per share as provided in the note agreement.

On June 11, 2012, the Company issued 300,481 shares of common stock to one investor who elected to convert all of their accrued interest in the amount of $150,240 on its convertible notes from its first financing at a conversion price of $0.50 per share as provided in the note agreement.

October 14, 2011 Convertible Note Installments (Second Financing)

On June 7, 2012, the Company issued 3,314,062 shares of common stock to one investor who elected to convert the outstanding principal amount of $1,590,000 and all of the accrued interest due on its convertible promissory notes dated October 14, 2011, November 29, 2011, December 19, 2011, February 10, 2012, March 30, 2012 and June 4, 2012 at a conversion price of $0.50 per share as provided in the note agreement.

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Fair Value

3 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Text Block]

6.Fair Value

The Company measures fair value in accordance with a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1	Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2	Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
Level 3	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The following is a reconciliation of the conversion option liability and detachable warrant liability for which Level 3 inputs were used in determining fair value:

Beginning balance January 1, 2012	$	1,138,989
Initial recognition of debt derivative from issuance of     February 10, 2012, $150,000 convertible note		189,052
Initial recognition of debt derivative from issuance of     March 30, 2012, $250,000 convertible note		514,784
Initial recognition of debt derivative from issuance of    June 4, 2012, $215,000 convertible note		325,831
Mark to market of debt derivative		2,325,015
Other		1,017
Total debt derivative preceding conversion		4,494,688
Reduction of debt derivative from conversion		(4,494,688)
Debt derivative as of June 30, 2012	$	-

During the period ended June 30, 2012, the loss on embedded derivatives of in the condensed consolidated statement of operations consisted of a loss on the change in fair value of $2,325,015 noted above and a loss of $704,186 which was the amount by which the embedded derivative liabilities exceeded the principal of the related notes payable on the date the notes were issued.

The Company’s conversion option liabilities are valued using pricing models and the Company generally uses similar models to value similar instruments. Where possible, the Company verifies the values produced by its pricing models to market prices. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit spreads, measures of volatility and correlations of such inputs. These consolidated financial liabilities do not trade in liquid markets, and as such, model inputs cannot generally be verified and do involve significant management judgment. Such instruments are typically classified within Level 3 of the fair value hierarchy. See Note 4 for Black Scholes Option Pricing Model inputs.

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Fair Value (Detail) - Reconciliation of the conversion option liability and detachable warrant liability (USD $)	1 Months Ended	3 Months Ended	5 Months Ended	6 Months Ended
	Feb. 10, 2012	Mar. 30, 2012	Jun. 04, 2012	Jun. 30, 2012	Dec. 31, 2011
Beginning balance January 1, 2012					$ 1,138,989
Initial recognition of debt derivative from issuance of	189,052	514,784	325,831
Mark to market of debt derivative				2,325,015
Other				1,017
Total debt derivative preceding conversion				4,494,688
Reduction of debt derivative from conversion				(4,494,688)
Debt derivative as of June 30, 2012				$ 0

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Detachable Warrants (Detail) (USD $)	0 Months Ended	2 Months Ended	1 Months Ended	2 Months Ended
	Apr. 13, 2012	Mar. 30, 2012	Feb. 10, 2012	Jun. 01, 2012	Jun. 07, 2012	Jun. 04, 2012	Jun. 30, 2012
Warrants Not Settleable in Cash, Fair Value Disclosure (in Dollars)		$ 130,853	$ 61,354			$ 97,313	$ 289,520
Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Fair Value Assumptions, Expected Volatility Rate	108.17%	110.64%	110.77%	111.24%	102.93%	112.94%
Fair Value Assumptions, Risk Free Interest Rate	0.27%	1.04%	1.04%	0.25%	0.27%	0.27%
Fair Value Assumptions, Expected Term	1 year 262 days	5 years	5 years	1 year 211 days	2 years 127 days	4 years 251 days

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Fair Value (Tables)

3 Months Ended

Jun. 30, 2012

Schedule of Conversions of Stock [Table Text Block]

The following is a reconciliation of the conversion option liability and detachable warrant liability for which Level 3 inputs were used in determining fair value:

Beginning balance January 1, 2012	$	1,138,989
Initial recognition of debt derivative from issuance of     February 10, 2012, $150,000 convertible note		189,052
Initial recognition of debt derivative from issuance of     March 30, 2012, $250,000 convertible note		514,784
Initial recognition of debt derivative from issuance of    June 4, 2012, $215,000 convertible note		325,831
Mark to market of debt derivative		2,325,015
Other		1,017
Total debt derivative preceding conversion		4,494,688
Reduction of debt derivative from conversion		(4,494,688)
Debt derivative as of June 30, 2012	$	-

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Accounting Policies, by Policy (Policies)	3 Months Ended
	Jun. 30, 2012
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim consolidated financial information and with the instructions to Securities and Exchange Commission ("SEC") Form 10-Q and Article 8 of SEC Regulation S-X. The principles for interim consolidated financial information do not require the inclusion of all the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements on Form 10-K for the years ended December 31, 2011. The condensed consolidated financial statements included herein are unaudited; however, in the opinion of management, they contain all normal recurring adjustments necessary for a fair statement of the condensed results for the interim periods. Operating results for the six month period ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. We made certain reclassifications to prior-period amounts to conform to the current presentation.

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Detachable Warrants (Tables)

3 Months Ended

Jun. 30, 2012

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of warrant activity for the period from December 31, 2011 through June 30, 2012 is presented below:

	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contract Term
Outstanding December 31, 2011		2,185,000	$	1.00	4.20 years
Issued		615,000	$	1.00	4.50 years
Exercised		-		-	-
Outstanding June 30, 2012		2,800,000	$	1.00	4.01 years
Exercisable, June  30, 2012		2,800,000	$	1.00	4.01 years

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

The Company has reserved shares for future issuance upon of its warrants as follows:

Warrants	2,800,000
Reserved shares at June 30, 2012	2,800,000

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Convertible Note Payable (Tables)

3 Months Ended

Jun. 30, 2012

Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]

Notes issued in 2012

	February 10, 2012			March 30, 2012			June 4, 2012			Total
Total Proceeds	$	150,000		$	250,000		$	215,000		$	615,000
Allocated to:
Conversion Option Liability		189,052			514,783			325,831			1,029,666
Relative Fair Value of Warrants		61,354			130,853			97,313			289,520
		250,406			645,636			423,144			1,319,186
Debt Discount		(150,000	)		(250,000	)		(215,000	)		(615,000	)
Loss on debt derivative	$	100,406		$	395,636		$	208,144		$	704,186

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Detachable Warrants (Detail) - Reserved shares for future issuance	Jun. 30, 2012
Warrants	2,800,000
Reserved shares at June 30, 2012	2,800,000

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CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)	$ (5,734,209)	$ (2,070,212)
to net cash used in operating activities:
Depletion expense	35,302	4,202
Accretion expense	3,514	505
Amortization of debt discount	2,176,996	55,917
Loss on embedded derivatives	3,030,218	1,444,781
Change in assets and liabilities
(Increase) Decrease in accounts receivable	7,619	(48,284)
Decrease in related party receivable	16,934	0
(Increase) in other receivable	26,676	(81,631)
Increse in prepaid expense	(8,394)
Increase (Decrease) in accounts payable and accrued expenses	72,485	(150,798)
Increase in other payable	20,544	66,805
Increase in revenue payable	0	51,068
Net cash (used in) operating activities	(352,315)	(727,647)
CASH FLOWS USED IN INVESTING ACTIVITIES:
Acquisition of oil and gas properties	(264,817)	(5,000)
Net cash used in investing activities	(264,817)	(5,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from convertible notes	615,000	590,000
Payment of note payable	0	(250,000)
Payment of related party notes payable	0	(50,000)
Net cash provided by financing activities	615,000	290,000
NET INCREASE IN CASH AND CASH EQUIVALENTS	(2,132)	(442,647)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	593,469	557,344
CASH AND CASH EQUIVALENTS - END OF PERIOD	591,337	114,697
Cash paid during the period for:
Interest	0	0
Taxes	0	0
NON CASH TRANSACTIONS:
Conversion of convertible notes payable	2,800,000	0
Conversion of accrued interest	217,272	0
Stock repurchase and cancellation	0	0
Acquisition of oil and gas properties with payables	0	84,975
Discount from derivative liabilities	615,000	0
Discount to additional paid-in capital from relative fair value of warrants	289,520	0
Settlement of derivative liabilities to additional paid-in capital	$ 4,493,669	$ 0

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Detachable Warrants

3 Months Ended

Jun. 30, 2012

Warrants Disclosure [Text Block]

5.           Detachable Warrants

As described in Note 7, the Company issued a convertible note with detachable warrants. The Company accounted for these detachable warrants in accordance with ASC 470-20, which requires that the Company calculate the relative fair value of the warrants at the grant date and record the relative fair value as a discount to the related note payable with an offset to additional paid-in capital. The Company amortizes the debt discount associated with the warrants over the life of the convertible notes using the effective interest method.

On February 10, 2012, the Company determined a relative fair value of $61,354 for the detachable warrants for the fourth installment of the convertible notes. In calculating the relative fair value of the warrants the Company used the Black Scholes Option Pricing Model based upon the following assumptions: dividend yield of -0-%, volatility of 110.77%, risk free rate of 1.04% and an expected term of approximately 5 years.

On March 30, 2012, the Company determined a relative fair value of $130,853 for the detachable warrants for the fifth installment of the convertible notes. In calculating the relative fair value of the warrants the Company used the Black Scholes Option Pricing Model based upon the following assumptions: dividend yield of -0-%, volatility of 110.64%, risk free rate of 1.04% and an expected term of approximately 5 years.

On June 4, 2012, the Company determined a relative fair value of $97,313 for the detachable warrants for the fifth installment of the convertible notes. In calculating the relative fair value of the warrants the Company used the Black Scholes Option Pricing Model based upon the following assumptions: dividend yield of -0-%, volatility of 112.94%%, risk free rate of 0.27% and an expected term of approximately 4.69 years.

A summary of warrant activity for the period from December 31, 2011 through June 30, 2012 is presented below:

	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contract Term
Outstanding December 31, 2011		2,185,000	$	1.00	4.20 years
Issued		615,000	$	1.00	4.50 years
Exercised		-		-	-
Outstanding June 30, 2012		2,800,000	$	1.00	4.01 years
Exercisable, June  30, 2012		2,800,000	$	1.00	4.01 years

 Shares Reserved for Future Issuance

The Company has reserved shares for future issuance upon of its warrants as follows:

Warrants	2,800,000
Reserved shares at June 30, 2012	2,800,000

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Detachable Warrants (Detail) - Warrant activity (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Number of Warrants, Outstanding	2,800,000	2,185,000
Weighted Average Exercise Price, Outstanding (in Dollars per share)	$ 1.00	$ 1.00
Weighted Average Remaining Contract Term, Outstanding	4 years 3 days	4 years 73 days
Exercisable, June 30, 2012	2,800,000
Exercisable, June 30, 2012 (in Dollars per share)	$ 1.00
Exercisable, June 30, 2012	4 years 3 days
Issued	615,000
Issued (in Dollars per share)	$ 1.00
Issued	4 years 6 months
Exercised	0