SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: CONCENTRATIONS OF CREDIT RISK (Policies)

12 Months Ended

Dec. 31, 2012

Policies

CONCENTRATIONS OF CREDIT RISK

CONCENTRATIONS OF CREDIT RISK

Credit risk represents the accounting loss that would be recognized at the reporting date if counter parties failed completely to perform as contracted. Concentrations of credit risk (whether on or off balance sheet) that arise from financial instruments exist for groups of customers or counter parties when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions described below.

The Company operates in one primary segment, the oil and gas industry. The Company's customers are located within the United States of America. Financial instruments that subject the Company to credit risk consist principally of oil and gas sales which are based on a short-term purchase contracts from Enterprise Crude Oil (US) Company and various other gatherers in the area, with related accounts receivable subject to credit risk.