STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2012

Notes

STOCKHOLDERS' EQUITY

NOTE 5 - STOCKHOLDERS' EQUITY

PREFERRED STOCK

As of December 31, 2012, there were 25,000,000 preferred shares authorized and 500,000 preferred shares outstanding. The board of directors had previously set the voting rights for the preferred stock at 1 share of preferred to 250 common shares.

There are 500,000 shares of preferred stock issued and outstanding at December 31, 2012 and 2011, all of which are owned by the current CEO, These shares had previously been issued in satisfaction of salaries payable, totaling $250,000 to the current CEO and prior officers.

During the period ending June 30, 2012, the CEO of the company acquired in a private transaction the shares of preferred A stock. As of December 31, 2012, the CEO owns 500,000 shares of preferred stock, which make up 100% of the preferred stock issued and outstanding.

COMMON STOCK

As of December 31, 2012, there were 100,000,000 shares authorized and there were 24,124,824 shares of common stock outstanding.

During 2011, the company issued 9,141,216 shares of company stock to settle $646,880 in debts on the company’s books.

During 2011 the company entered into a settlement agreement with a company we had purchased oil interest from. As part of this agreement the company returned 8,500,000 shares of stock that were part of the purchase agreement signed in 2008. These shares were cancelled and are no longer outstanding.

The company also issued 69,277 shares of stock for previously purchased oil interest at a value of $69,277. During 2011 the company realized that the previous transfer agent never issued the shares as part of an agreement that was signed in 2009.

During 2011, 2,000,000 shares were issued for consulting services in lieu of cash, these shares were valued at $80,000.

During the quarter ended March 31, 2012, the entered into a buyback agreement with a shareholder. The company agreed to buy back 1,500,000 shares for a purchase price of $1,500. These shares were cancelled with the transfer agent and are no longer outstanding.

During the year ended December 31, 2012, the company issued 100,000 shares of common stock to a consultant for services rendered and valued at $1,000.

There were no other shares issued during the year 2012.  The balance at December 31, 2012 is 24,124,824 common shares outstanding and 500,000 preferred shares.

Warrants

During the 4th quarter of 2011, the company issued 10,000,000 warrants of the company stock with an exercise price of $0.01 to an entity the CEO has an ownership in. The company used the Black Scholes option pricing model to calculate the value of $55,000 based on a 0% dividend yield, 669% expected volatility, 0.95% discounts bond rate and a 7 year term. While the warrants were valued at $55,000, a total of $142,859 was settled with such warrants, thus $87,859 was considered forgiveness of debt-related party, treated as additional paid in capital.

Stock options/warrants - The following table summarizes information about options and warrants granted during the years ended December 31, 2012 and 2011:

	Number of Shares		Weighted Average Exercise Price
Balance, December 31, 2010		0	$	--
Options/warrants granted		10,000,000		0.01
Options/warrants expired		--		--
Options/warrants cancelled, forfeited		--		--
Options/warrants exercised		--		--
Balance, December 31, 2011		--		--
Options/warrants granted		--		--
Options/warrants expired		--		--
Options/warrants cancelled, forfeited		--		--
Options/warrants exercised		--		--
Balance, December 31, 2012		10,000,000		0.01