Common Stock Warrants

12 Months Ended

Jun. 30, 2012

Notes to Financial Statements

Note 5 - Common Stock Warrants

Effective January 1, 2006, the Company adopted the fair value recognition provisions of FASB ASC 480-10 “Share Based Payment” using the modified-prospective-transition method. Under this transition method, total compensation cost recognized in the statement of operations for the years ended June 30, 2007 and 2006 includes compensation costs for all share-based payments granted prior to, but not yet vested as of January 1, 2006, based on the grant date fair value estimated in accordance with the original provisions of     FASB ASC 480-10, and compensation costs for all share-based payments granted subsequent to January 1, 2006, based on the grant date fair value estimated in accordance with the provisions of FASB ASC 480-10.  The Company estimates the fair value of each stock award at the grant date by using the Black-Scholes option pricing model. The Company did not grant any stock-based compensation option awards during the years ended June 30, 2012 and 2011. During the year ended June 30, 2010, the Company issued 100,000 warrants in connection with the acquisition of the oil and gas working interest acquisition more fully explained in Note 7 below and also extended the expiration date of the 2,000,0000 warrants to its officers for an additional five years.

A summary of the status of the Company’s stock warrants as of June 30, 2012 and 2011 is presented below:

					Weighted Ave.
	Stock		Exercise		Exercise
	Warrants		Price		Price
Outstanding and Exercisable, June 30, 2010		3,967,326	$	0.75-1.75	$	1.34
Granted		-		-		-
Expired/Canceled		1,607,326		-		-
Exercised		-		-		-
Outstanding and Exercisable, June 30, 2011		2,360,000	$	0.75-1.75	$	1.09
Outstanding and Exercisable, June 30, 2011		2,360,000	$	0.75-1.75	$	1.09
Granted		-		-		-
Expired/Canceled		-		-		-
Exercised		-		-		-
Outstanding and Exercisable, June 30, 2012		2,360,000	$	0.75-1.75	$	1.09

A summary of outstanding stock warrants at June 30, 2012 follows:

Number of			Remaining				Weighted
Common Stock			Contracted		Exercise		Ave Exer.
Equivalents		Expir. Date	Life (Years)		Price		Price
	50,000	October, 2012		1.250	$	1.75	$	1.75
	210,000	September, 2012		1.250	$	1.50	$	1.50
	100,000	October, 2012		1.333	$	1.75	$	1.75
	1,000,000	December 2015		4.500	$	0.75	$	0.75
	500,000	December 2015		4.500	$	1.00	$	1.00
	500,000	December 2015		4.500	$	1.50	$	1.50