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Oil and Gas Leases
3 Months Ended
Jun. 30, 2011
Extractive Industries  
Oil and Gas Exploration and Production Industries Disclosures [Text Block]

NOTE 3 - OIL AND GAS LEASES

 

During the six months ended June 30, 2011:

 

On March 1, 2011 the company settled $150,361 in debt on the company books with oil interest held by the company in leases operated by H Petro R.  

 

For the six months ended June 30, 2011, the Company generated royalties on producing oil and gas properties in the amount of $32,224. For the six months ended June 30, 2010, the Company generated royalties on producing oil and gas properties in the amount of $136,572.

 

The depletion expense for the six months ended June 30, 2011 and 2010 was $1,510 and $35,625, respectively, was calculated based on an estimate using the straight line method over the estimated lives of the proved interests until production studies have been completed on the oil and gas properties.