10-K/A

 UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K/A

Amendment No. 1

(Mark One)
[X]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended December 31, 2012
[   ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from __________ to __________

000-54252
Commission File Number
MULTI-CORP INTERNATIONAL INC.
(Exact name of registrant as specified in its charter)
Nevada	N/A
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
3651 Lindell Rd., Suite D 414, Las Vegas, NV	89103
(Address of principal executive offices)	(Zip Code)
(702) 483-2974
(Registrant’s  telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each class	Name of each exchange on which registered
n/a	n/a

Securities registered pursuant to Section 12(g) of the Exchange Act:

Common Stock, $0.001 par value

Title of  class

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes [   ] No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.

Yes [   ] No [X]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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.

Yes [X] No [   ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, 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).

Yes [ ] No [ X]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

Yes [   ] No [X]

Indicate by check mark whether the registrant is a large accelerated filer, 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	[   ]	Accelerated filer	[   ]
Non-accelerated filer	[   ]	Smaller reporting company	[X]
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ ] No [ X]

The aggregate market value of voting and non-voting common stock held by non-affiliates of the registrant was $292,131 based on the closing price of $3.00 as reported as of June 29, 2012 (the last business day of the registrant’s most recently completed second quarter), assuming solely for the purpose of this calculation that all directors, officers and greater than 10% stockholders of the registrant are affiliates. The determination of affiliate status for this purpose is not necessarily conclusive for any other purpose.

APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PAST 5 YEARS:

Indicate by check mark whether the issuer has filed all documents and reports required to be filed by Section 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes [   ] No [   ]

APPLICABLE ONLY TO CORPORATE REGISTRANTS

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

87,193,765 common shares outstanding as of January 17, 2014

2

DOCUMENTS INCORPORATED BY REFERENCE

List hereunder the following documents if incorporated by reference and the Part of the Form 10-K (e.g. Part I, Part II, etc.) into which the document is incorporated: (1) Any annual report to security holders; (2) Any proxy or information statement; and (3) Any prospectus filed pursuant to Rule 424(b) or (c) of the Securities Act of 1933. The listed documents should be clearly described for identification purposes. 

3

Explanatory Note

               This Amendment No. 1 on Form 10-K/A (this “Amendment”) of Multi-Corp International Inc.  for the fiscal year ended December 31, 2012 is solely to furnish Exhibit 101 to the Form 10-K in accordance with Rule 405 of Regulation S–T.

This Amendment No. 1 to the Form 10-K speaks as of the filing date of  the Form 10-K (the "Filing date"), does not reflect events that may have occurred subsequent to the  filing date, and does not modify or update in any way disclosures made in the Form 10-K as filed on January 23, 2014.

4

PART IV

ITEM 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES

Financial Statements

The information required by this item is incorporated herein by reference to the financial statements and notes thereto listed in Item 8 of Part II and included in this Annual Report.

Schedules

All financial statement schedules are omitted because the required information is included in the financial statements and notes thereto listed in Item 8 of Part II and included in this Annual Report.

Exhibits

The following exhibits are filed as part of this Annual Report:

Number	Description
3.1	Articles of Incorporation	Incorporated by reference to the Exhibits filed with the Form SB-2 filed with the SEC on December 15, 2007
3.1(i)	Amendment to Articles of Incorporation	Incorporated by reference to the Exhibits filed with the Form 8-K filed with the SEC on November 13, 2008
3.1(ii)	Amendment to Articles of Incorporation	Incorporated by reference to the Exhibits filed with the Form 8-K filed with the SEC on February 3, 2011
3.1(iii)	Amendment to Articles of Incorporation	Incorporated by reference to the Exhibits filed with the Form 8-K filed with the SEC on February 18, 2011
3.1(iv)	Amendment to Articles of Incorporation	Incorporated by reference to the Exhibits filed with the Form 8-K filed with the SEC on June 27, 2012
3.2	Bylaws	Incorporated by reference to the Exhibits filed with the Form SB-2 filed with the SEC on December 15, 2007
10.1	Stock Exchange Agreement between the Company, AquaSil, Inc. and Ilya Khasidov dated December 30, 2010	Incorporated by reference to the Exhibits attached to the Company's Form 8-K filed with the SEC on January 3, 2011
10.2	Acquisition Agreement between MULTI-CORP INTERNATIONAL INC.  And Oveldi Canada Ltd.	Incorporated by reference to the Exhibits attached to the Company's Form 8-K filed with the SEC on February 2, 2012
10.3	Asset Purchase Agreement to Acquire Oil and Gas Working Interest between the Corporation and  Quad Energy Corp. dated December 17, 2012.	Incorporated by reference to the Exhibits attached to the Company's Form 8-K filed with the SEC on December 20, 2012
10.4	Asset Purchase Agreement to acquire equipment and oil inventory between the Corporation and Quad Energy Corp. dated December 17, 2012.	Incorporated by reference to the Exhibits attached to the Company's Form 8-K filed with the SEC on December 20, 2012
10.5	Assignment and Assumption Agreement between  the Corporation and Quad Energy Corp. dated May 23, 2013	Filed herewith
99.1	Preliminary Technical Analysis Report	Incorporated by reference to the Exhibits attached to the Company's Form 8-K filed with the SEC on January 14, 2013
99.2	Reserve and Economic Evaluation Report	Incorporated by reference to the Exhibits attached to the Company's Form 8-K filed with the SEC on March 6, 2013
31.1	Section 302 Certification - Principal Executive Officer	Filed herewith
31.2	Section 302 Certification - Principal Financial Officer	Filed herewith
32.1	Principal Executive Officer and Principal Financial Officer Certification Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith+
101.INS	XBRL Instance Document	Filed herewith*
101.SCH	XBRL Taxonomy Extension Schema	Filed herewith*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase	Filed herewith*
101.DEF	XBRL Taxonomy Extension Definition Linkbase	Filed herewith*
101.LAB	XBRL Taxonomy Extension Label Linkbase	Filed herewith*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase	Filed herewith*

*Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability.

+ In accordance with SEC Release 33-8238, Exhibit 32.1 is being furnished and not filed. 

5

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

			MULTI-CORP INTERNATIONAL INC.
Date:	March 11, 2014	By:	/s/ Jean Mann
		Name:	Jean Mann
		Title:	President, Secretary, Treasurer, Director (Principal Executive, Financial and Accounting Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date:	March 11, 2014	By:	/s/ Jean Mann
		Name:	Jean Mann
		Title:	President, Secretary, Treasurer, Director (Principal Executive, Financial and Accounting Officer)

6

EX-31.1

RULE 13A-14(A)/15D-14(A) CERTIFICATION

I, Jean Mann, certify that:

(1) I have reviewed this Amendment No. 1 to the annual report on Form 10-K of Multi-Corp. International Inc.;

(2) Based on my knowledge, this  report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 11, 2014	By:	/s/ Jean Mann
		Name: Jean Mann
		Title: Principal Executive Officer

EX-31.2

RULE 13A-14(A)/15D-14(A) CERTIFICATION

I, Jean Mann, certify that:

(1) I have reviewed this Amendment No. 1 to the annual report on Form 10-K of Multi-Corp. International Inc.;

(2) Based on my knowledge, this  report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 11, 2014	By:	/s/ Jean Mann
		Name: Jean Mann
		Title: Principal Financial Officer

EX-32.1

EXHIBIT 32

MULTI-CORP INTERNATIONAL INC.

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with Amendment No. 1 to the Annual Report of Multi-Corp International Inc. (the “Company”) on Form 10-K for the fiscal year ending December 31, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jean Mann, Chief Executive Officer and Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  March 11, 2014	By:	/s/Jean Mann
	Name:	Jean Mann
	Title:	Principal Executive Officer, Principal Financial and Accounting Officer, President, Secretary, Treasurer  and Director

A signed original of this written statement required by Section 1350 of Title 18 of the United States Code has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished as an exhibit to the Report pursuant to Item 601(b)(32) of Regulation S-K and Section 1350 of Title 18 of the United States Code and, accordingly, is not being filed with the Securities and Exchange Commission as part of the Report and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934 (whether made before or after the date of the Report, irrespective of any general incorporation language contained in such filing.)

XML

Common stock transactions in 2012 (Details) (USD $)	Dec. 31, 2012	Dec. 17, 2012	Sep. 13, 2012	May 22, 2012	Feb. 27, 2012
Common stock transactions in 2012
Board of Directors of the Company approved a reverse split of the current issued and outstanding shares of the Company on the basis of one (1) new share required shares from current holdings				1,000
Company issued shares of the Corporation's restricted common stock to Oveldi Canada Ltd.					14,000
The shares of common stock were valued at a price per share					$ 6.60
Fair market value of the shares on the date of agreement.					$ 92,400
Company issued a total of shares to Robert Baker as consideration for management services from the date of his appointment as a director and officer to the date of issuance.					25,000
The shares were valued at the market value of the common stock on the date of issue per share					$ 10
Total consideration of issue to Robert Baker as consideration for management services					250,000
The Company recorded the amount of issue as stock-based compensation.					250,000
Company issued a total of shares to a shareholder of the Company in settlement of advances made by the shareholder totaling			74,970,997		3,000
Amount settled from advances made by the shareholder			74,971		3,000
The shares of common stock were valued at a price per share on issues against advances			$ 0.19		$ 7.20
Total value of the shares of common stock on the date of settlement of advances			14,305,217		21,600
The excess value was recorded as a loss			14,230,246		18,600
Company issued shares of the common stock of the Corporation for proved oil and gas properties and were capitalized with the acquisition.		12,000,000
Per share Price which was the closing trade price of the shares on the date of the agreements		$ 1.60
Total value of shares of the common stock of the Corporation issued for proved oil and gas properties		$ 19,200,000
Total issued and outstanding shares of common stock as on date	87,164,765

XML

Summary of the Company's asset retirement obligation transactions (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Summary of the Company's asset retirement obligation transactions
Beginning asset retirement obligation	$ 0	$ 0
Liabilities incurred for new wells placed in production	1,175,635	0
Accretion of discount on asset retirement obligations	3,607	0
Ending asset retirement obligation	$ 1,179,242	$ 0

XML

Assets and liabilities of discontinued operations at the date of disposition (Tables)

12 Months Ended

Dec. 31, 2012

Assets and liabilities of discontinued operations at the date of disposition

Assets and liabilities of discontinued operations at the date of disposition

Assets and liabilities of discontinued operations at the date of disposition were as follows:

Total Assets	$	-
Total liabilities		(32,446	)
Net assets	$	32,446

XML

Reconciliation between the statutory rate and the effective tax rate is as follows (Details)	Dec. 31, 2012	Dec. 31, 2011
Reconciliation between the statutory rate and the effective tax rate is as follows
Permanent difference and other	35.00%	35.00%
Effective tax rate.	0.00%	0.00%

XML

Company's short term notes (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Company's short term notes
Company owed in short term notes and are due on demand	$ 59,765	$ 54,412
Short term notes bear interest at a rate per annum	8.00%	8.00%
Company recorded interest expense which amount is included in accounts payable and accrued liabilities on the consolidated balance sheets.	4,623	1,287
Company received funds in the amount to settle certain operating expenses	92,988
Imputed interest rate per annum	8.00%
Imputed interest recorded as additional paid in capital	$ 6,177

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Note 3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates, which have been made using careful judgment. Actual results may vary from these estimates.

The financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below:

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation. There was no material effect to the consolidated financial statements as a result of these reclassifications

Cash and Cash Equivalents

Cash and cash equivalents consist of commercial accounts and interest-bearing bank deposits and are carried at cost, which approximates current value. Items are considered to be cash equivalents if the original maturity is three months or less.

Equipment and Facilities

Equipment and facilities are recorded at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets, ranging from one to twenty-five years.

Intangible Assets

Acquired intangible assets are recognized at cost and are classified as assets with finite useful lives. The Company amortizes the intangible assets with five years using the straight-line method over the estimated economic lives of the assets. Intangible assets are evaluated for impairment to determine if current circumstances and market conditions indicate the carrying amount may not be recoverable. The Company has recognized impairment losses of $69,067 on the intangible assets during the year ended December 31, 2012.

Asset Retirement Obligations

The Company records the fair value of a liability for an asset retirement obligation in the period in which the well is spud or the asset is acquired and a corresponding increase in the carrying amount of the related long-lived asset. The liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized.

Full Cost Method

The Company follows the full cost method of accounting for oil and gas operations whereby all costs related to the exploration and development of oil and gas properties are initially capitalized into a single cost center by country ("full cost pool"). At December 31, 2012, the Company had one cost center – United States.

All capitalized costs of oil and gas properties, including the estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves once proved reserves are determined to exist. At December 31, 2012, there was no amortization of these costs due to there being no production.

Unproved property costs are excluded from the amortization base until determination of the existence of proved reserves on the respective property or until the requirement for impairment. Unproved properties are reviewed at the end of each quarter to determine whether portions of the costs should be reclassified to the full cost pool and thereby subject to amortization. Sales of oil and natural gas properties are accounted for as adjustments to the net full cost pool with no gain or loss recognized, unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves.

Capitalized costs are summarized as follows for the years ended December 31, 2012 and 2011, respectively:

	Years Ended December 31,
	2012		2011
Shares issued to acquire the oil and gas properties	$	19,200,000	$	-
Asset retirement cost	$	1,175,635	$	-

Capitalized costs of oil and gas properties (net of related deferred income taxes) may not exceed an amount equal to the present value, discounted at 10% per annum, of the estimated future net cash flows from proved oil and gas reserves plus the cost of unproved properties (adjusted for related income tax effects). Should capitalized costs exceed this ceiling, impairment is recognized. The present value of estimated future net cash flows is computed by applying the arithmetic average first day price of oil and natural gas for the preceding twelve months to estimated future production of proved oil and gas reserves as of the end of the period, less estimated future expenditures to be incurred in developing and producing the proved reserves and assuming continuation of existing economic conditions. Such present value of proved reserves' future net cash flows excludes future cash outflows associated with settling asset retirement obligations. Should this comparison indicate an excess carrying value, the excess is charged to earnings as an impairment expense. We recognized $7,815,693 and $0 of impairment costs during the years ended December 31, 2012 and 2011, respectively.

Impairment

FASB ASC 360-10-35-21 requires that assets to be held and used be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Oil and gas properties accounted for using the full cost method of accounting (which the Company uses) are excluded from this requirement but continue to be subject to the full cost method's impairment rules.

Revenue recognition

The Company recognizes oil and natural gas revenues from our interests in producing wells when production is delivered to, and title has transferred to, the purchaser and to the extent the selling price is reasonably determinable. Gas-balancing arrangements are accounted for using the sales method.

Fair Value of Financial Instruments

The Company measures its financial assets and liabilities in accordance with the requirements of ASC 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

Level 1- Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

Level 2- Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

Level 3- Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information,

The following schedule summarizes the valuation of financial instruments at fair value on a recurring basis in the balance sheets as of December 31, 2012 and 2011:

	Fair Value Measurements at December 31, 2012
	Level 1		Level 2		Level 3
Assets:
None	$	-	$	-	$	-
Liabilities:
Short term notes payable		-		152,753		-
Advances from stockholders		-		1,430,469		-
Total Liabilities	$	-	$	1,583,222	$	-
	Fair Value Measurements at December 31, 2011
	Level 1		Level 2		Level 3
Assets:
None	$	-	$	-	$	-
Liabilities:
Short term notes payable		-		54,412		-
Advances from stockholders		-		218,017		-
Total Liabilities	$	-	$	272,429	$	-

The following schedule summarizes the valuation of assets and liabilities that were re-measured to fair value on a non-recurring basis in the balance sheet as of December 31, 2012. No assets or liabilities were re-measured to fair value on the December 31, 2011 balance sheet. 

	Fair Value Measurements at December 31, 2012
	Level 1		Level 2		Level 3
Assets:
Oil and gas properties	$	-	$	-	$	12,559,942
Total Assets	$	-	$	-		12,559,942
Liabilities:
None	$	-	$	-		-

The Company valued the Oil and gas properties at their fair value with the full cost ceiling test impairment recorded at December 31, 2012. This value is consistent with the PV10 value assessed by the reserve engineer with an adjustment to add back the present value impact associated with the future plug and abandonment costs consistent with the related GAAP guidance. The inputs that were used in determining fair value of these assets were Level 3 inputs. These inputs consist of but are not limited to the following: estimates of reserve quantities, estimates of future production costs and taxes, estimates of consistent pricing of commodities, 10% discount rate, etc.

Stock-Based Compensation

The Company follows the guidance included in ASC 718 Compensation-Stock Compensation (“ASC 718”) using the modified prospective transition method. The Company recognizes compensation expense in the financial statements for share-based awards based on the grant date fair value of those awards.

Income Taxes

The Company accounts for income taxes pursuant to ASC 740, Income Taxes . Deferred tax assets and liabilities are recorded for differences between the financial statements and tax basis of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable or refundable for the period increased or decreased by the change in deferred tax assets and liabilities during the period.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the period in which they become known. The estimates on depreciation were based on the estimated useful lives of the Company's assets. Any estimates during the period have had an immaterial effect on earnings.

Earnings or Loss Per Share

The Company accounts for earnings per share pursuant ASC 260, Earnings per Share, which require disclosure on the financial statements of “basic” and “diluted” earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the year. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding. During the years ended December 31, 2012 and 2011 the Company had no common stock equivalents outstanding. Due to this, as well as the net losses reported for these years, the basic loss per share was the same as the diluted loss per share.

Recent Accounting Pronouncements

In December 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.”  The amendments in this update require enhanced disclosures around financial instruments and derivative instruments that are either (1) offset in accordance with either ASC 210-20-45 or ASC 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either ASC 210-20-45 or ASC 815-10-45.  An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented.  The amendments are effective during interim and annual periods beginning on or after 1 January 2013.  The Company does not expect this guidance to have any impact on its financial position, results of operations or cash flows.

Recent Accounting Pronouncements (continued)

In July 2012, the FASB issued ASC Update No. 2012-02, “Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment” (“ASU 2012-02”).  ASU 2012-02 provides companies with the option to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired.  If the Company concludes that it is more likely than not that the asset is impaired, it is required to determine the fair value of the intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying value in accordance with Topic 350.  If the Company concludes, otherwise, no further quantitative assessment is required.  ASU-2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after 15 September 2012.  Early adoption is permitted.  The Company does not expect the adoption of ASU 2012-02 to impact its results of operations or financial position.

In August 2012, the FASB issued ASU 2012-03, “Technical Amendments and Corrections to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No.114. , Technical Amendments Pursuant to SEC Release No. 33-9250, and Corrections Related to FASB Accounting Standards Update 2010-22(SEC Update)” in Accounting Standards Update No. 2012-03. This update amends various SEC paragraphs pursuant to the issuance of SAB No. 114. The adoption of ASU 2012-03 is not expected to have a material impact on our financial position or results of operations.

In October 2012, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2012-04, “Technical Corrections and Improvements” in Accounting Standards Update No. 2012-04. The amendments in this update cover a wide range of Topics in the Accounting Standards Codification.

These amendments include technical corrections and improvements to the Accounting Standards Codification and conforming amendments related to fair value measurements. The amendments in this update will be effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04 is not expected to have a material impact on our financial position or results of operations.

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Subsequent transactions (Details) (USD $)	Jun. 10, 2013	Mar. 04, 2013
Subsequent transactions
Company issued an aggregate of common shares to Jurgen Grams in settlement of a debt		42,000,000
Amount of debt settled with the issue to Jurgen Grams		$ 42,000
Price per share of shares issued to Jurgen Grams		$ 0.001
Robert Alan Baker returned a total of shares to treasury for cancelation, with no consideration.		44,971,000
Company issued a total of shares to Quad Energy Corp	3,000,000
Per share market value as of the issuance date to Quad Energy Corp	$ 1.30

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Summary of the valuation of financial instruments at fair value on a recurring basis in the balance sheets (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Level 1
None	$ 0
Assets:
None	0
Assets:
None		0
Level 2
Liabilities:
Short term notes payable	152,753
Advances from stockholders	1,430,469
Total Liabilities	1,583,222
Liabilities:
Short term notes payable		54,412
Advances from stockholders		218,017
Total Liabilities		272,429
Level 3
None	0
Assets:
None	0
Assets:
None		$ 0

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Significant policies (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Significant policies
Recognized impairment losses of intangible assets	$ 69,067
Shares issued to acquire the oil and gas properties	19,200,000
Asset retirement cost	1,175,635
Capitalized costs of oil and gas properties excess carrying value is charged to earnings as an impairment expense	$ 7,815,693	$ 0
Percentage discounted to equal to the present value of Capitalized costs of oil and gas properties	10.00%
Common stock equivalents outstanding	0	0

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Summary of the valuation of assets and liabilities that were re-measured to fair value on a non-recurring basis in the balance sheet (Details) (USD $)	Dec. 31, 2012
Level 1.
Liabilities:
None	$ 0
Level 2.
Liabilities:
None	0
Level 3.
Oil and gas properties	12,559,942
Assets:
Oil and gas properties	12,559,942
Total Assets	12,559,942
Liabilities:
None	$ 0

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Acquisition of oil and gas properties interests (Details) (USD $)	Dec. 17, 2012
Acquisition of oil and gas properties interests
Minimum range of Working Interest and Revenue Interests acquired in Cave Pool Property in Eddy County.	61.96%
Maximum range of Working Interest and Revenue Interests acquired in Cave Pool Property in Eddy County.	70.50%
Number of acres in which Working Interest and Revenue Interests acquired in Cave Pool Property in Eddy County.	2,800
Number of estimated identified drilling and recompletion locations.	51
Number of identified drilling and recompletion locations which were proved as undeveloped.	14
The consideration paid for the interests was by way of the issuance of a total of shares of the common stock of the Company	12,000,000
Price per share which was the closing trade price of the shares on the date of the agreements	$ 1.60
Total value of the price paid for acquisition	$ 19,200,000
Asset retirement obligation associated with the acquisition	$ 1,175,635

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GOING CONCERN

12 Months Ended

Dec. 31, 2012

GOING CONCERN

GOING CONCERN

Note 2 — GOING CONCERN

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company is a development stage company and is dependent on raising capital to commence principal operations. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern.

Management believes the Company’s ability to continue as a going concern is dependent on its ability to raise capital. At present, the Company has no commitments for any additional financing. Management is currently seeking financing through a possible offering of common stock, which will be used to finance operations. Until such financing is obtained, it is the intent of stockholders to provide funds for professional fees related to maintaining the Company’s public reporting status.

The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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Summary of capitalized costs for the purchase and development of our oil and gas properties (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Summary of capitalized costs for the purchase and development of our oil and gas properties
Purchases of oil and gas properties through the issuance of common stock	$ 19,200,000	$ 0
Capitalized asset retirement obligations	1,175,635
Total purchase and development costs, oil and gas properties	20,037,635
Allowance for impairment	(7,815,693)
Proved properties, net.	$ 12,559,942

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Transactions with related parties (Details) (USD $)	Dec. 31, 2012	Sep. 13, 2012	Feb. 27, 2012	Dec. 31, 2011
Transactions with related parties
Amounts owed by the company to the principal stockholders of the Company for amounts advanced for business operations	$ 143,046			$ 218,017
The Company issued a total of shares to Robert Baker as consideration for management services			25,000
Value of the shares to Robert Baker as consideration for management services			250,000
Company issued shares of common stock in settlement of advances from stockholders		74,970,997
Per share price of shares of common stock issued in settlement of advances from stockholders		$ 0.001
Total value of shares of common stock issued in settlement of advances from stockholders		74,971
Per share value of shares of common stock issued in settlement of advances from stockholders		$ 0.19
Total fair market value of shares of common stock issued in settlement of advances from stockholders		14,305,217
Total excess value of shares of common stock issued in settlement of advances from stockholders recorded as a loss		$ 14,230,246

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Consolidated Balance Sheets (USD $)	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash	$ 0	$ 0
Total Current Assets	0	0
Oil and gas properties, full cost method of accounting	12,559,942	0
Less: accumulated depletion, depreciation, and amortization	0	0
Total proved properties, net	12,559,942	0
Total other assets, net	0	0
Total Assets	12,559,942	0
Current
Accounts payable and accrued liabilities	195,741	238,977
Short term notes payable	152,753	54,412
Advances from stockholders	143,046	218,017
Liabilities of discontinued operations	0	32,446
Total Current Liabilities	491,540	543,852
Asset retirement obligation	1,179,242	0
Total liabilities	1,670,782	543,852
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, $0.0001 par value, non-voting, 20,000,000 authorized, none issued and outstanding	0	0
Common stock, $0.0001 par value, voting, 500,000,000 authorized, 87,164,765 and 149,498 issued and outstanding as at December 31, 2012 and December 31, 2011 respectively	8,716	15
Additional Paid-in Capital	33,569,332	(313,032)
Retained earnings (accumulated deficit) during the development stage	(22,688,888)	(230,835)
Total Stockholders' Equity (Deficit)	10,889,160	(543,852)
Total Liabilities and Stockholders' (Equity) Deficit	$ 12,559,942	$ 0

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Consolidated Statements of Cash Flows (USD $)	12 Months Ended		27 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012
Cash Flows from Operating Activities
Net (loss)	$ (22,458,053)	$ (221,030)	$ (22,688,888)
Adjustment to reconcile net loss to cash used by operations:
Stock-based compensation	250,000	0	250,000
Amortization of intangible asset	23,333	0	23,333
Accretion on asset retirement obligations	3,607	0	3,607
Imputed interest contributed to additional paid in capital	21,848	0	21,848
Loss on conversion of debt to shares	14,248,846	0	14,248,846
Impairment of intangible asset	69,067	0	69,067
Impairment of oil and gas asset	7,815,693	0	7,815,693
Gain on divestment of AquaSil Inc.	(32,446)	0	(32,446)
Change in operating assets and liabilities:
Accounts payable and accrued liabilities	19,765	137,817	157,582
Net cash used in continuing operating	(38,340)	(83,213)	(131,358)
Net cash used in discontinued operating	0	0	0
Net cash used in operating activities	(38,340)	(83,213)	(131,358)
Cash flows from Financing Activities
Acquisition of AquaSil Inc.	0	0	1,000
Proceeds from short term notes payable	38,340	54,412	92,752
Advances from stockholders.	0	5,160	5,160
Net cash used in continuing operating.	38,340	59,572	98,912
Net cash used in discontinued operating.	0	22,776	32,446
Net cash provided by financing activities	38,340	82,348	131,358
(Decrease) Increase in cash during the period	0	(865)	0
Cash, beginning of period	0	865	0
Cash, end of period	0	0	0
Supplemental disclosure of cash flow information:
Interest	0	0	0
Income taxes	0	0	0
Non-cash transactions:
Common stock issued for settlement of advances from stockholders	74,971	700,000	774,971
Common stock issued for settlement of accounts payable	3,000	0	3,000
Common stock issued to acquisition of intellectual property	92,400	0	92,400
Common stock issued for acquisition of oil and gas asset	19,200,000	0	19,200,000
Asset retirement obligation acquired with acquisition of oil and gas asset	1,175,635	0	1,175,635
Total Non-cash transactions	$ 20,546,006	$ 700,000	$ 21,246,006

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License agreement and discontinued operations (Details) (USD $)	Mar. 31, 2012	Dec. 31, 2010
License agreement and discontinued operations
Percentage of interests acquired as per stock exchange agreement with AquaSil, Inc		100.00%
Shares of the Company's common stock issued to the sole stockholder of AquaSil.		70,000
The Company recorded a gain on disposition of liabilities relieved compared to assets disposed of	$ 32,446
Total Assets.	0	0
Total liabilities.		(32,446)
Net assets.		$ 32,446

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Following schedule summarizes the valuation of financial instruments at fair value (Tables)

12 Months Ended

Dec. 31, 2012

Following schedule summarizes the valuation of financial instruments at fair value:

Summarizes the valuation of financial instruments at fair value on a recurring basis

The following schedule summarizes the valuation of financial instruments at fair value on a recurring basis in the balance sheets as of December 31, 2012 and 2011:

	Fair Value Measurements at December 31, 2012
	Level 1		Level 2		Level 3
Assets:
None	$	-	$	-	$	-
Liabilities:
Short term notes payable		-		152,753		-
Advances from stockholders		-		1,430,469		-
Total Liabilities	$	-	$	1,583,222	$	-
	Fair Value Measurements at December 31, 2011
	Level 1		Level 2		Level 3
Assets:
None	$	-	$	-	$	-
Liabilities:
Short term notes payable		-		54,412		-
Advances from stockholders		-		218,017		-
Total Liabilities	$	-	$	272,429	$	-

Summarizes the valuation of assets and liabilities that were re-measured

The following schedule summarizes the valuation of assets and liabilities that were re-measured to fair value on a non-recurring basis in the balance sheet as of December 31, 2012. No assets or liabilities were re-measured to fair value on the December 31, 2011 balance sheet. 

	Fair Value Measurements at December 31, 2012
	Level 1		Level 2		Level 3
Assets:
Oil and gas properties	$	-	$	-	$	12,559,942
Total Assets	$	-	$	-		12,559,942
Liabilities:
None	$	-	$	-		-

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Advances from principal stockholders (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011	Feb. 03, 2011
Advances from principal stockholders
Company issued shares of common stock in settlement of advances from principal stockholders			70,000
Amount of advances from principal stockholders settled with the issue			$ 700,000
Number of shares of common stock issued in settlement of advances from stockholders	74,970,997
Per share value of the shares issued to stockholders	$ 0.001
Shares of common stock were valued at a price per share	$ 0.19
Amount of advances from stockholders settled with the issue of shares	74,971
Fair market value of the shares on the date of settlement	14,305,217
The excess value was recorded as a loss totaling	14,230,246
Amounts owed to the principal stockholders of the Company for amounts advanced for business operations	143,046	218,017
Rate of interest on advances from principal stockholders	8.00%
Imputed interest expensed and recorded as additional paid in capital	$ 15,671

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Summarizes the Company's asset retirement obligation transactions (Tables)

12 Months Ended

Dec. 31, 2012

Summarizes the Company's asset retirement obligation transactions

Summarizes the Company's asset retirement obligation transactions

The following table summarizes the Company’s asset retirement obligation transactions recorded in accordance with the provisions of FASB ASC 410-20-25 during the years ended December 31, 2012 and 2011:

	Years ended December 31,
	2012		2011
Beginning asset retirement obligation	$	-	$	-
Liabilities incurred for new wells placed in production		1,175,635		-
Accretion of discount on asset retirement obligations		3,607		-
Ending asset retirement obligation	$	1,179,242	$	-

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ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION

12 Months Ended

Dec. 31, 2012

ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION

ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Note 1 — ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Organization and Nature of Operations

Gray Creek Mining, Inc. was incorporated on December 10, 2006 under the laws of the State of Nevada. A Certificate of Amendment was filed with the Nevada Secretary of State, on November 7, 2008, changing the Company’s name to BWI Holdings, Inc. A Certificate of Amendment was filed with the Nevada Secretary of State, on January 27, 2011, changing the Company’s name to Aquasil International Inc. On May 22, 2012, the Board of Directors of the Company authorized a name change to Multi-Corp International Inc. (the “Company”).

On December 30, 2010, the Company entered into a stock exchange agreement (the “Stock Exchange Agreement”) with AquaSil, Inc., a New York corporation (“AquaSil”) and the sole stockholder of AquaSil. In accordance with the Stock Exchange Agreement, the Company acquired 100% of the total issued and outstanding shares of common stock of AquaSil in exchange for the issuance of an aggregate 70,000 shares of the Company’s common stock to the sole stockholder of AquaSil. As a result of this transaction, AquaSil became a wholly-owned subsidiary of the Company.

The Company’s wholly owned subsidiary, AquaSil, was incorporated in the State of New York on September 21, 2010 to engage in the business of selling various water and soft drink products. The operations were consolidated until the entity was disposed on March 31, 2012.

On May 22, 2012, the Board of Directors authorized the Company to implement a reverse stock split of the Company’s outstanding shares of Common Stock at a ratio of 1000:1 and to file all required documents to the requisite regulatory authorities to implement the reverse split. Adjusted equity statement consisted with this.

On December 17, 2012, we entered into two agreements (the “Agreements”) with Quad Energy Corp., a Nevada Corporation (“Quad”) whereby we will acquire a 100% Working Interest and Revenue Interests ranging from 61.96% to 70.5% in the 2,800 acre Cave Pool Property in Eddy County, New Mexico which have an estimated 51  identified drilling and recompletion locations, of which 14 were proved undeveloped. and all of the production equipment on the Property including all of the pump jacks, storage tanks, and batteries.

Basis of Presentation

The Company is in the development stage and has no revenues. A development stage company is one in which all efforts are devoted substantially to establishing a new business and even if planned principal operations have commenced, revenues are insignificant.

These consolidated financial statements include the accounts of Multi-Corp International Inc. and up to March 31, 2012 includes the accounts of AquaSil. The operations were consolidated until the entity was disposed on March 31, 2012.

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Consolidated Balance Sheets Parentheticals (USD $)	Dec. 31, 2012	Dec. 31, 2011
Parentheticals
Preferred Stock, par value	$ 0.0001	$ 0.0001
Preferred Stock, shares authorized	20,000,000	20,000,000
Preferred Stock, shares issued	0	0
Common Stock, par value	$ 0.0001	$ 0.0001
Common Stock, shares authorized	500,000,000	500,000,000
Common Stock, shares issued	87,164,765	87,164,765

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RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2012

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

Note 11 – RELATED PARTY TRANSACTIONS

A total of $143,046 recorded on the Company’s Balance Sheet as Advances from Stockholders at December 31, 2012 (December 31, 2011 - $218,017) consisted of amounts owed to the principal stockholders of the Company for amounts advanced for business operations.  The amounts are unsecured, non-interest bearing and due on demand.

On February 27, 2012, the Company issued a total of 25,000 shares to Robert Baker as consideration for management services valued at $250,000 from the date of his appointment as a director and officer to the date of issuance.

On September 13, 2012, the Company issued 74,970,997 shares of common stock at $0.001 per share in settlement of $74,971 of advances from stockholders. The shares of common stock were valued at $0.19 per share, totaling $14,305,217, the fair market value of the shares on the date of settlement. The excess value was recorded as a loss totaling $14,230,246.

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2012	Jan. 17, 2014	Jun. 29, 2012
Document and Entity Information:
Entity Registrant Name	MULTI-CORP INTERNATIONAL INC.
Document Type	10-K
Document Period End Date	Dec. 31, 2012
Amendment Flag	true
Amendment Description	Amendment No.1
Entity Central Index Key	0001405260
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		87,193,765
Entity Public Float			$ 292,131
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY

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INCOME TAXES

12 Months Ended

Dec. 31, 2012

INCOME TAXES

INCOME TAXES

Note 12 – INCOME TAXES

The Company has losses carried forward for income tax purposes for December 31, 2012. There are no current or deferred tax expenses for the period ended June 30, 2013 due to the Company’s loss position. The Company has fully reserved for any benefits of these losses. The deferred tax consequences of temporary differences in reporting items for financial statement and income tax purposes are recognized, as appropriate. Realization of the future tax benefits related to the deferred tax assets is dependent on many factors, including the Company’s ability to generate taxable income within the net operating loss carryforward period.

Management has considered these factors in reaching its conclusion as to the valuation allowance for financial reporting purposes.

	December 31, 2012			December 31, 2011
Net operating loss carry forward	$	288,941		$	230,835
Effective Tax Rate		35	%		35	%
Deferred Tax Assets – net operating loss		101,129			80,792
Deferred Tax Assets – temporary differences		1,262			0
Less: Valuation Allowance		(102,391	)		(80,792	)
Net deferred tax asset	$	-		$	-

The valuation allowance for deferred tax assets as of December 31, 2012 and 2011 was $102,391 and $80,792 respectively. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of December 31, 2012 and 2011, and recorded a full valuation allowance.

Reconciliation between the statutory rate and the effective tax rate is as follows at December 31,

	December 31, 2012	December 31, 2011
Permanent difference and other	35%	35%
Effective tax rate	0%	0%

The net federal operating loss carry forward will expire between 2020 and 2033. This carry forward may be limited upon the consummation of a business combination under IRC Section 381.

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Consolidated Statements of Operations (USD $)	12 Months Ended		27 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012
Revenues:
Revenues	$ 0	$ 0	$ 0
Operating Expenses
Professional fees	33,069	192,267	225,336
Amortization of intangible assets	23,333	0	23,333
Accretion of discount on asset retirement obligations	3,607	0	3,607
Impairment of intangible assets	69,067	0	69,067
Impairment of oil and gas assets	7,815,693	0	7,815,693
General and administrative expenses	270,413	0	289,909
(Loss) from continuing operations	(8,215,182)	(211,743)	(8,426,945)
Other Income (expense)
Loss on debt extinguishment	(14,248,846)	0	(14,248,846)
Interest expense	(26,471)	(1,287)	(27,758)
Other income (expenses)	(14,275,317)	(1,287)	(14,276,604)
Income (Loss) before discontinued operations	(22,490,499)	(213,030)	(22,703,549)
Gain (loss) from discontinued operations	32,446	(8,000)	14,661
Net (Loss)	$ (22,458,053)	$ (221,030)	$ (22,688,888)
Basic and diluted Net (loss) per share from continuing operations	$ (0.97)	$ (1.49)
Basic and diluted Net income per share from discontinued operation	$ 0	$ (0.06)
Basic and diluted Net (loss) per share	$ (0.97)	$ (1.55)
Weighted average number of shares outstanding	23,033,958	142,978

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INTELLECTUAL PROPERTY

12 Months Ended

Dec. 31, 2012

INTELLECTUAL PROPERTY

INTELLECTUAL PROPERTY

Note 6 – INTELLECTUAL PROPERTY

On February 1, 2012, the Company entered into an acquisition agreement (the “Agreement”) with Oveldi Canada Ltd., a Canadian Corporation (“OVE”) whereby the Corporation acquired the rights to certain intellectual property for a proprietary software application called EviCAT©. In accordance with the terms and provisions of the Agreement, the Corporation acquired the rights to the intellectual property from OVE in exchange for the issuance of 14,000 shares of the Corporation’s restricted common stock. The shares of common stock were issued on February 27, 2012, and the transaction was valued at the fair market value of the Company’s common stock on the date of issuance totalling $92,400. The software application has been identified as an intangible asset, with a useful life of five years. At the present time the Company is evaluating applications for the licensing of EviCAT© to third party users.

During the fiscal year ended December 31, 2012, amortization of purchased intangible assets included in operating expenses was $23,333 compared to Nil in the same period of fiscal 2011.

Intellectual property is evaluated for impairment to determine if current circumstances and market conditions indicate the carrying amount may not be recoverable. The Company has recognized impairment losses of $69,067 on the intangible assets due to the lack of revenue generated with the software to date.

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ASSET RETIREMENT OBLIGATION

12 Months Ended

Dec. 31, 2012

ASSET RETIREMENT OBLIGATION

ASSET RETIREMENT OBLIGATION

Note 5 – ASSET RETIREMENT OBLIGATION

The Company has asset retirement obligations associated with the future plugging and abandonment of proved properties and related facilities. Under the provisions of FASB ASC 410-20-25, the fair value of a liability for an asset retirement obligation is recorded in the period in which it is incurred and a corresponding increase in the carrying amount of the related long lived asset. The liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized. The Company has no assets that are legally restricted for purposes of settling asset retirement obligations.

The following table summarizes the Company’s asset retirement obligation transactions recorded in accordance with the provisions of FASB ASC 410-20-25 during the years ended December 31, 2012 and 2011:

	Years ended December 31,
	2012		2011
Beginning asset retirement obligation	$	-	$	-
Liabilities incurred for new wells placed in production		1,175,635		-
Accretion of discount on asset retirement obligations		3,607		-
Ending asset retirement obligation	$	1,179,242	$	-

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Summarizes Captalized Cost for Purchase And Development Of Oil And Gas Properties (Tables)

12 Months Ended

Dec. 31, 2012

Summarizes Captalized Cost for Purchase And Development Of Oil And Gas Properties Text Block:

Summarizes Captalized Cost for Purchase And Development Of Oil And Gas Properties

The following table summarizes our capitalized costs for the purchase and development of our oil and gas properties for the years ended December 31, 2012 and 2011:

	Years Ended December 31,
	2012		2011
Purchases of oil and gas properties through the issuance of common stock	$	19,200,000	$	-
Capitalized asset retirement obligations		1,175,635		-
Total purchase and development costs, oil and gas properties		20,037,635		-
Allowance for impairment		(7,815,693)		-
Proved properties, net	$	12,559,942	$	-

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SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2012

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Note 13 – SUBSEQUENT EVENTS

Effective on March 1, 2013, the Board of Directors of the Company accepted the resignation of Robert Alan Baker as the President/Chief Executive Officer, Secretary, Treasurer and the sole member of the Board of Directors of the Company. Mr. Baker’s resignation was not due to any disagreement with the Company on any matter relating to its operations, policies or practices. Simultaneously, Mrs. Jean Mann was appointed as the sole member of the Board of Directors and as the President/Chief Executive Officer, Secretary and Treasurer of the Company.

On March 4, 2013, Multi-Corp International Inc. (the “Company”) issued an aggregate of 42,000,000 common shares to Jurgen Grams in settlement of a total of $42,000 in debt, at a price of $0.001 per share.  Concurrently the Company’s former sole officer and director, Robert Alan Baker returned a total of 44,971,000 shares to treasury for cancelation, with no consideration.

On June 10, 2013 the Company issued a total of 3,000,000 shares, valued at market value as of the issuance date  or  $1.30 per share,  to Quad Energy Corp. (“Quad”)  in consideration for all of Quad’s interests in the Double XX property “Property”) located in New Mexico.

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SHORT TERM NOTES

12 Months Ended

Dec. 31, 2012

SHORT TERM NOTES

SHORT TERM NOTES

Note 9 – SHORT TERM NOTES

As of December, 2012, the Company owed $59,765 (December 31, 2011 – $54,412) in short term notes.  The amounts owing are unsecured, bear interest at 8% per annum, and are due on demand.  During the fiscal year ended December 31, 2012, the Company recorded interest expense of $4,623 (2011 - $1,287), which amount is included in accounts payable and accrued liabilities on the consolidated balance sheets.

During the fiscal year ended December 31, 2012, the Company received funds in the amount of $92,988 to settle certain operating expenses. The amounts are unsecured, non-interest bearing and due on demand.  Imputed interest at 8% has been expensed and recorded as additional paid in capital of $6,177.

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LICENSE AGREEMENT AND DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2012

LICENSE AGREEMENT AND DISCONTINUED OPERATIONS

LICENSE AGREEMENT AND DISCONTINUED OPERATIONS

Note 7 – LICENSE AGREEMENT AND DISCONTINUED OPERATIONS

On December 30, 2010, the Company entered into a stock exchange agreement (the “Stock Exchange Agreement”) with AquaSil, Inc., a New York corporation (“AquaSil”) and the sole stockholder of AquaSil.  In accordance with the Stock Exchange Agreement, the Company acquired 100% of the total issued and outstanding shares of common stock of AquaSil in exchange for the issuance of an aggregate 70,000 shares of the Company’s common stock to the sole stockholder of AquaSil. As a result of this transaction, AquaSil became a wholly-owned subsidiary of the Company.

The Company’s wholly owned subsidiary, AquaSil, was incorporated in the State of New York on September 21, 2010 to engage in the business of selling various water and soft drink products and held a licensing agreement for the sales of the licensed products. On March 31, 2012, the Company divested itself of this wholly-owned subsidiary and determined not to continue in the water business. The Company has consolidated AquaSil up to March 31, 2012.  As of April 1, 2012, the Company has treated operations of Aquasil as discontinued operations.  Concurrently the Company has agreed to return the shares of AquaSil to the original stockholder with no further obligation.  The shares issued as part of the original transaction were privately acquired by Robert Baker, the Company’s CEO, president and director.

The Company recorded a gain on disposition of $32,446 based on liabilities relieved compared to assets disposed of. There was no revenue generated by the discontinued subsidiary.

Assets and liabilities of discontinued operations at the date of disposition were as follows:

Total Assets	$	-
Total liabilities		(32,446	)
Net assets	$	32,446

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ADVANCES FROM STOCKHOLDERS

12 Months Ended

Dec. 31, 2012

ADVANCES FROM STOCKHOLDERS

ADVANCES FROM STOCKHOLDERS

Note 8 – ADVANCES FROM STOCKHOLDERS

On February 3, 2011, the Company issued 70,000 shares of common stock in settlement of $700,000 of advances from principal stockholders.

During the fiscal year ended December 31, 2012, the Company issued 74,970,997 shares of common stock at $0.001 per share in settlement of $74,971 in advances from stockholders. The shares of common stock were valued at $0.19 per share, totaling $14,305,217, the fair market value of the shares on the date of settlement. The excess value was recorded as a loss totaling $14,230,246.

A total of $143,046 reported on the Balance Sheet as at December 31, 2012 (December 31, 2011 - $218,017) consisted of amounts owed to the principal stockholders of the Company for amounts advanced for business operations.  The amounts are unsecured, non-interest bearing and due on demand.  Imputed interest at 8% has been expensed and recorded as additional paid in capital of $15,671 during the year ended December 31, 2012.

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COMMON STOCK

12 Months Ended

Dec. 31, 2012

COMMON STOCK

COMMON STOCK

Note 10 – COMMON STOCK

On December 20, 2010, the Company issued 70,000 shares of common stock to acquire one hundred percent of the total issued and outstanding shares of common stock of AquaSil Inc. under the stock exchange agreement.

On January 21, 2011, the Company amended its articles of incorporation to increase its authorized share capital from 100,000,000 to 500,000,000 shares of common stock.

On February 3, 2011, the Company issued 70,000 shares of common stock at $0.01 per share in settlement of $700,000 of advances from stockholders.

On May 22, 2012, the Board of Directors of the Company approved a reverse split of the current issued and outstanding shares of the Company on the basis of one (1) new share for each one-thousand (1,000) shares currently held.  All share and per share amounts used in the Company’s consolidated financial statements have been restated to reflect the 1000 for 1 reverse stock split.  

On February 27, 2012, the Company issued 14,000 shares of the Corporation’s restricted common stock to Oveldi Canada Ltd. pursuant to the agreement whereby the Company acquired the rights to the EviCAT© software.  The shares of common stock were valued at $6.60 per share, totaling $92,400, the fair market value of the shares on the date of agreement.

On February 27, 2012, the Company issued a total of 25,000 shares to Robert Baker as consideration for management services from the date of his appointment as a director and officer to the date of issuance.  The shares were valued at the market value of the common stock on the date of issue of $10 per share for total consideration of $250,000.  The Company recorded the amount of $250,000 as stock-based compensation.

On February 27, 2012, the Company issued a total of 3,000 shares to a shareholder of the Company in settlement of advances made by the shareholder totaling $3,000. The shares of common stock were valued at $7.20 per share, totaling $21,600, the fair market value of the shares on the date of settlement. The excess value was recorded as a loss totaling $18,600.

On September 13, 2012, the Company issued 74,970,997 shares of common stock at $0.001 per share in settlement of $74,971 of advances from stockholders. The shares of common stock were valued at $0.19 per share, totaling $14,305,217, the fair market value of the shares on the date of settlement. The excess value was recorded as a loss totaling $14,230,246.

On December 17, 2012, the Company issued 12,000,000 shares of the common stock of the Corporation at a price of $1.60 per share which was the closing trade price of the shares on the date of the agreements, for a total value of $19,200,000. These shares were issued for proved oil and gas properties and were capitalized with the acquisition.

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Acquisition of intellectual property (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Acquisition of intellectual property
Corporation acquired the rights to the intellectual property from OVE in exchange for the issuance of shares	14,000
The fair market value of the Company's common stock on the date of issuance	$ 92,400
Amortization of purchased intangible assets included in operating expenses	23,333	0
Company has recognized impairment losses on the intangible assets due to the lack of revenue generated with the software to date	$ 69,067

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Capitalized costs are summarized as follows (Tables)

12 Months Ended

Dec. 31, 2012

Capitalized costs are summarized as follows

Capitalized costs are summarized as follows

Capitalized costs are summarized as follows for the years ended December 31, 2012 and 2011, respectively:

	Years Ended December 31,
	2012		2011
Shares issued to acquire the oil and gas properties	$	19,200,000	$	-
Asset retirement cost	$	1,175,635	$	-

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Components Of Income Tax Expenses Benefit (Tables)

12 Months Ended

Dec. 31, 2012

Components Of Income Tax Expenses Benefit

Deferred Tax Assets and Liabilities valuation allowance

Management has considered these factors in reaching its conclusion as to the valuation allowance for financial reporting purposes.

	December 31, 2012			December 31, 2011
Net operating loss carry forward	$	288,941		$	230,835
Effective Tax Rate		35	%		35	%
Deferred Tax Assets – net operating loss		101,129			80,792
Deferred Tax Assets – temporary differences		1,262			0
Less: Valuation Allowance		(102,391	)		(80,792	)
Net deferred tax asset	$	-		$	-

Effective Income Tax Rate Reconciliation

Reconciliation between the statutory rate and the effective tax rate is as follows at December 31,

	December 31, 2012	December 31, 2011
Permanent difference and other	35%	35%
Effective tax rate	0%	0%

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Deferred tax assets (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Deferred tax assets
Net operating loss carry forward	$ 288,941	$ 230,835
Effective Tax Rate	35.00%	35.00%
Deferred Tax Assets - net operating loss	101,129	80,792
Deferred Tax Assets - temporary differences	1,262	0
Less: Valuation Allowance	(102,391)	(80,792)
Net deferred tax asset	$ 0	$ 0

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Consolidated Statements of Changes in Stockholders' Equity (Deficit) (USD $)	Common Stock Shares issued	Common Stock Par Value	Additional Paid-in Capital USD ($)	Accumulated Deficit USD ($)	Total Stockholder's Equity (Deficit) USD ($)
Balance at Sep. 21, 2010	70,000	7	(7)
Reverse acquisition	9,498	1	(1,013,018)		(1,013,017)
Net (loss)				$ (9,805)	$ (9,805)
Balance at Dec. 31, 2010	79,498	8	(1,013,025)	(9,805)	(1,022,822)
Shares issued to settle debt	70,000	7	699,993		700,000
Net (loss)				(221,030)	(221,030)
Balance at Dec. 31, 2011	149,498	15	(313,032)	(230,835)	(543,852)
Shares issued to settle accounts payable	3,000		21,600		21,600
Shares issued to purchase intellectual property	14,000	1	92,399		92,400
Shares issued for stock-based compensation	25,000	3	249,997		250,000
Shares issued to settle advances from stockholders	74,970,997	7,497	14,297,720		14,305,217
Shares issued to purchase oil and gas property and equipment	12,000,000	1,200	19,198,800		19,200,000
Imputed interest			21,848		21,848
Rounding due to reverse stock split	2,270
Net (loss)				$ (22,458,053)	$ (22,458,053)
Balance at Dec. 31, 2012	87,164,765	8,716	33,569,332	(22,688,888)	10,889,160

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ACQUISITIONS OF OIL AND GAS PROPERTY

12 Months Ended

Dec. 31, 2012

ACQUISITIONS OF OIL AND GAS PROPERTY

ACQUISITIONS OF OIL AND GAS PROPERTY

Note 4 — ACQUISITIONS OF OIL AND GAS PROPERTY

On December 17, 2012, the Company entered into two agreements (the “Agreements”) with Quad Energy Corp., a Nevada Corporation (“Quad”) whereby we acquired a 100% Working Interest and Revenue Interests ranging from 61.96% to 70.5% in the 2,800 acre Cave Pool Property in Eddy County, New Mexico which have an estimated 51  identified drilling and recompletion locations, of which 14 were proved undeveloped.and all of the production equipment on the Property including all of the pump jacks, storage tanks, and batteriesThe Company’s plan is to re-drill and bring production back online.

The consideration paid for the interests was by way of the issuance of a total of 12,000,000 shares of the common stock of the Company at a price of $1.60 per share which was the closing trade price of the shares on the date of the agreements, for a total value of $19,200,000. Asset retirement obligation associated with the acquisition was $1,175,635.

Due to the reserves acquired being considered shut-in and re-drilling required to produce, the acquired wells were considered undeveloped. Given the undeveloped nature of the property this was considered an asset acquisition.

The Company received reserve evaluation reports on its oil property in the Cave Pool field in Eddy County, New Mexico, USA from a third party. As a result of this review, management determined to impair the asset in order to reflect the value of the third party appraisal report.

The following table summarizes our capitalized costs for the purchase and development of our oil and gas properties for the years ended December 31, 2012 and 2011:

	Years Ended December 31,
	2012		2011
Purchases of oil and gas properties through the issuance of common stock	$	19,200,000	$	-
Capitalized asset retirement obligations		1,175,635		-
Total purchase and development costs, oil and gas properties		20,037,635		-
Allowance for impairment		(7,815,693)		-
Proved properties, net	$	12,559,942	$	-

When performing the full cost ceiling test as of December 31, 2012, the full cost ceiling of the proved reserves based on PV10 was less than the carrying value of proved properties. As a result, impairment was recorded for ($7,815,693).

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Organization, Nature of Operations and Basis of Presentation (Details)	Dec. 17, 2012	May 22, 2012
Organization, Nature of Operations and Basis of Presentation Details
Percentage of shares of AquaSil acquired		100.00%
Shares issued for acquisition AquaSil		70,000
Number of shares required to implement a reverse stock split of the Company's outstanding shares of Common Stock for one share		1,000
Minimum range of Working Interest and Revenue Interests acquired in Cave Pool Property in Eddy County	61.96%
Maximum range of Working Interest and Revenue Interests acquired in Cave Pool Property in Eddy County	70.50%
Number of acres in which Working Interest and Revenue Interests acquired in Cave Pool Property in Eddy County	2,800
Number of estimated identified drilling and recompletion locations	51
Number of identified drilling and recompletion locations which were proved as undeveloped	14

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Common stock transactions in 2011 (Details) (USD $)	Feb. 03, 2011	Jan. 21, 2011	Dec. 20, 2010
Common stock transactions in 2011
Shares of common stock the Company issued stock to acquire one hundred percent of the total issued and outstanding shares of common stock of AquaSil Inc. under the stock exchange agreement.			70,000
Company's authorized share capital before amendement of its articles of incorporation		100,000,000
Company amended its articles of incorporation to increase its authorized share capital		500,000,000
Company issued shares of common stock at $0.01 per share in settlement of advances from stockholders	70,000
Amount of advances from stockholders settled	$ 700,000

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ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2012

ACCOUNTING POLICIES

Reclassifications

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation. There was no material effect to the consolidated financial statements as a result of these reclassifications

Cash and Cash Equivalents Policy

Cash and Cash Equivalents

Cash and cash equivalents consist of commercial accounts and interest-bearing bank deposits and are carried at cost, which approximates current value. Items are considered to be cash equivalents if the original maturity is three months or less.

Equipment and Facilities

Equipment and Facilities

Equipment and facilities are recorded at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets, ranging from one to twenty-five years.

Intangible Assets Policy

Intangible Assets

Acquired intangible assets are recognized at cost and are classified as assets with finite useful lives. The Company amortizes the intangible assets with five years using the straight-line method over the estimated economic lives of the assets. Intangible assets are evaluated for impairment to determine if current circumstances and market conditions indicate the carrying amount may not be recoverable. The Company has recognized impairment losses of $69,067 on the intangible assets during the year ended December 31, 2012.

Asset Retirement Obligations Policy

Asset Retirement Obligations

The Company records the fair value of a liability for an asset retirement obligation in the period in which the well is spud or the asset is acquired and a corresponding increase in the carrying amount of the related long-lived asset. The liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized.

Full Cost Method

Full Cost Method

The Company follows the full cost method of accounting for oil and gas operations whereby all costs related to the exploration and development of oil and gas properties are initially capitalized into a single cost center by country ("full cost pool"). At December 31, 2012, the Company had one cost center – United States.

All capitalized costs of oil and gas properties, including the estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves once proved reserves are determined to exist. At December 31, 2012, there was no amortization of these costs due to there being no production.

Unproved property costs are excluded from the amortization base until determination of the existence of proved reserves on the respective property or until the requirement for impairment. Unproved properties are reviewed at the end of each quarter to determine whether portions of the costs should be reclassified to the full cost pool and thereby subject to amortization. Sales of oil and natural gas properties are accounted for as adjustments to the net full cost pool with no gain or loss recognized, unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves.

Capitalized costs are summarized as follows for the years ended December 31, 2012 and 2011, respectively:

	Years Ended December 31,
	2012		2011
Shares issued to acquire the oil and gas properties	$	19,200,000	$	-
Asset retirement cost	$	1,175,635	$	-

Capitalized costs of oil and gas properties (net of related deferred income taxes) may not exceed an amount equal to the present value, discounted at 10% per annum, of the estimated future net cash flows from proved oil and gas reserves plus the cost of unproved properties (adjusted for related income tax effects). Should capitalized costs exceed this ceiling, impairment is recognized. The present value of estimated future net cash flows is computed by applying the arithmetic average first day price of oil and natural gas for the preceding twelve months to estimated future production of proved oil and gas reserves as of the end of the period, less estimated future expenditures to be incurred in developing and producing the proved reserves and assuming continuation of existing economic conditions. Such present value of proved reserves' future net cash flows excludes future cash outflows associated with settling asset retirement obligations. Should this comparison indicate an excess carrying value, the excess is charged to earnings as an impairment expense. We recognized $7,815,693 and $0 of impairment costs during the years ended December 31, 2012 and 2011, respectively.

Impairment

Impairment

FASB ASC 360-10-35-21 requires that assets to be held and used be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Oil and gas properties accounted for using the full cost method of accounting (which the Company uses) are excluded from this requirement but continue to be subject to the full cost method's impairment rules.

Revenue recognition

Revenue recognition

The Company recognizes oil and natural gas revenues from our interests in producing wells when production is delivered to, and title has transferred to, the purchaser and to the extent the selling price is reasonably determinable. Gas-balancing arrangements are accounted for using the sales method.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company measures its financial assets and liabilities in accordance with the requirements of ASC 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:

Level 1- Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

Level 2- Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

Level 3- Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information,

The following schedule summarizes the valuation of financial instruments at fair value on a recurring basis in the balance sheets as of December 31, 2012 and 2011:

	Fair Value Measurements at December 31, 2012
	Level 1		Level 2		Level 3
Assets:
None	$	-	$	-	$	-
Liabilities:
Short term notes payable		-		152,753		-
Advances from stockholders		-		1,430,469		-
Total Liabilities	$	-	$	1,583,222	$	-
	Fair Value Measurements at December 31, 2011
	Level 1		Level 2		Level 3
Assets:
None	$	-	$	-	$	-
Liabilities:
Short term notes payable		-		54,412		-
Advances from stockholders		-		218,017		-
Total Liabilities	$	-	$	272,429	$	-

The following schedule summarizes the valuation of assets and liabilities that were re-measured to fair value on a non-recurring basis in the balance sheet as of December 31, 2012. No assets or liabilities were re-measured to fair value on the December 31, 2011 balance sheet. 

	Fair Value Measurements at December 31, 2012
	Level 1		Level 2		Level 3
Assets:
Oil and gas properties	$	-	$	-	$	12,559,942
Total Assets	$	-	$	-		12,559,942
Liabilities:
None	$	-	$	-		-

The Company valued the Oil and gas properties at their fair value with the full cost ceiling test impairment recorded at December 31, 2012. This value is consistent with the PV10 value assessed by the reserve engineer with an adjustment to add back the present value impact associated with the future plug and abandonment costs consistent with the related GAAP guidance. The inputs that were used in determining fair value of these assets were Level 3 inputs. These inputs consist of but are not limited to the following: estimates of reserve quantities, estimates of future production costs and taxes, estimates of consistent pricing of commodities, 10% discount rate, etc.

Stock-Based Compensation Policy

Stock-Based Compensation

The Company follows the guidance included in ASC 718 Compensation-Stock Compensation (“ASC 718”) using the modified prospective transition method. The Company recognizes compensation expense in the financial statements for share-based awards based on the grant date fair value of those awards.

Income Taxes Policy

Income Taxes

The Company accounts for income taxes pursuant to ASC 740, Income Taxes . Deferred tax assets and liabilities are recorded for differences between the financial statements and tax basis of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable or refundable for the period increased or decreased by the change in deferred tax assets and liabilities during the period.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the period in which they become known. The estimates on depreciation were based on the estimated useful lives of the Company's assets. Any estimates during the period have had an immaterial effect on earnings.

Earnings or Loss Per Share Policy

Earnings or Loss Per Share

The Company accounts for earnings per share pursuant ASC 260, Earnings per Share, which require disclosure on the financial statements of “basic” and “diluted” earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the year. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding. During the years ended December 31, 2012 and 2011 the Company had no common stock equivalents outstanding. Due to this, as well as the net losses reported for these years, the basic loss per share was the same as the diluted loss per share.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In December 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.”  The amendments in this update require enhanced disclosures around financial instruments and derivative instruments that are either (1) offset in accordance with either ASC 210-20-45 or ASC 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either ASC 210-20-45 or ASC 815-10-45.  An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented.  The amendments are effective during interim and annual periods beginning on or after 1 January 2013.  The Company does not expect this guidance to have any impact on its financial position, results of operations or cash flows.

In July 2012, the FASB issued ASC Update No. 2012-02, “Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment” (“ASU 2012-02”).  ASU 2012-02 provides companies with the option to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired.  If the Company concludes that it is more likely than not that the asset is impaired, it is required to determine the fair value of the intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying value in accordance with Topic 350.  If the Company concludes, otherwise, no further quantitative assessment is required.  ASU-2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after 15 September 2012.  Early adoption is permitted.  The Company does not expect the adoption of ASU 2012-02 to impact its results of operations or financial position.

In August 2012, the FASB issued ASU 2012-03, “Technical Amendments and Corrections to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No.114. , Technical Amendments Pursuant to SEC Release No. 33-9250, and Corrections Related to FASB Accounting Standards Update 2010-22(SEC Update)” in Accounting Standards Update No. 2012-03. This update amends various SEC paragraphs pursuant to the issuance of SAB No. 114. The adoption of ASU 2012-03 is not expected to have a material impact on our financial position or results of operations.

In October 2012, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2012-04, “Technical Corrections and Improvements” in Accounting Standards Update No. 2012-04. The amendments in this update cover a wide range of Topics in the Accounting Standards Codification.

These amendments include technical corrections and improvements to the Accounting Standards Codification and conforming amendments related to fair value measurements. The amendments in this update will be effective for fiscal periods beginning after December 15, 2012. The adoption of ASU 2012-04 is not expected to have a material impact on our financial position or results of operations.