10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C., 20549

FORM 10-Q

þ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2014

o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission File No. 000-51656

EAGLE FORD OIL & GAS CORP.

(Exact name of registrant as specified in its charter)

Nevada	75-2990007
(State of other jurisdiction of incorporation)	(I.R.S. Employer Identification No.)
2951 Marina Bay Dr., Ste 130-369
League City, TX	77573
(Address of Principal Executive Office)	(Zip Code)

Registrant’s telephone number, including area code: (281) 383-9648

Indicate by check mark whether the registrant (1) 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 such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirement for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, 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 o No þ

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 definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

42,127,928 shares of the registrant’s common stock were outstanding as of August 19, 2014.

TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION		Page
Item 1.	Condensed Consolidated Financial Statements (Unaudited)
	Condensed Consolidated  Balance Sheets at June 30, 2014 (unaudited) and December 31, 2013	3
	Condensed Consolidated Statement of Operations for three and six months ended June 30, 2014 and 2013 (unaudited)	4
	Condensed Consolidated Statement of Changes in Stockholders’ Deficit for six months ended June 30, 2014 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2014 and 2013 (unaudited)	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7-17
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	21
Item 4.	Controls and Procedures	21
PART II—OTHER INFORMATION
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	22
Item 6.	Exhibits.	22
	Signatures	23

EAGLE FORD OIL & GAS CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2014 (Unaudited)			December 31,  2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	2,098		$	3,802
Accounts receivable – production		16,569			19,084
Prepaid expenses and other current assets		1,781			13,625
Total current assets		20,448			36,511
PROPERTY AND EQUIPMENT
Oil and gas properties, using full cost accounting
Costs not subject to amortization		6,484,307			6,464,436
Pipeline transmission properties		30,839			30,839
Less: accumulated depreciation and depletion		(15,000	)		(12,498	)
Total property and equipment, net		6,500,146			6,482,777
OTHER ASSETS
Deposits		125,000			150,000
TOTAL ASSETS	$	6,645,594		$	6,669,288
LIABILITIES AND SHAREHOLDERS’ DEFICIT
CURRENT LIABILITIES
Accounts payable – trade	$	1,092,040		$	978,353
Accrued expenses		2,648,588			2,202,895
Accrued interest to related parties		261,502			225,190
Notes payable, current portion		8,742,709			8,805,491
Notes payable to related parties, current portion		927,655			897,500
Convertible debentures		608,216			545,000
Derivative liability – notes, current portions		44,848			—
Derivative liability – warrants, current portions		—			93,044
Total current liabilities		14,325,558			13,747,473
LONG-TERM LIABILITIES
Asset retirement obligations		24,802			24,802
Total long term liabilities		24,802			24,802
TOTAL LIABILITIES		14,350,360			13,772,275
Commitments and contingencies		—			—
SHAREHOLDERS’ DEFICIT
Preferred stock, undesignated $0.001 par value, 10,000,000 shares authorized, none issued and outstanding		—			—
Common stock, $0.001 par value, 75,000,000 shares authorized, 42,021,745 and 40,102,947 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively		42,022			40,103
Additional paid-in-capital		7,018,546			6,740,465
Accumulated deficit		(14,765,334	)		(13,883,555	)
Total shareholders’ deficit		(7,704,766	)		(7,102,987	)
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT	$	6,645,594		$	6,669,288

See summary of significant accounting policies and notes to unaudited condensed consolidated financial statements.

3

EAGLE FORD OIL & GAS CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
REVENUE	$	556		$	1,565		$	1,716		$	2,922
OPERATING EXPENSES
Lease operating expenses		444			3,597			4,231			6,369
General and administrative expenses		191,302			347,223			430,805			577,019
Depreciation, depletion and accretion		1,252			1,250			2,502			2,498
Total operating expenses		192,998			352,070			437,538			585,886
Net operating loss		(192,442	)		(350,505	)		(435,822	)		(582,964	)
OTHER INCOME (EXPENSES)
Interest expense		(243,654	)		(245,113	)		(493,720	)		(490,718	)
Amortization of debt discount on convertible notes		(22,697	)		—			(39,195	)		—
Gain (loss) on change in fair value of notes derivative liability		92,465			—			(6,086	)		—
Gain on change in fair value of warrant derivative liability		11,525			70,397			93,044			18,861
Total other income (expenses)		(162,361	)		(174,716	)		(445,957	)		(471,857	)
Net loss		(354,803	)		(525,221	)		(881,779	)		(1,054,821	)
Loss per common share (basic and diluted)	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.03	)
Weighted average common shares outstanding (basic and diluted):		42,021,445			38,948,060			41,337,152			38,902,803

See summary of significant accounting policies and notes to unaudited condensed consolidated financial statements.

4

EAGLE FORD OIL & GAS CORP.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ DEFICIT

For the Six Months ended June 30, 2014

(Unaudited)

	Common Stock				Additional					Total
	Shares		Par Value		Paid-in Capital		Accumulated Deficit			Shareholders’ Deficit
Balance, December 31, 2013		40,102,947	$	40,103	$	6,740,465	$	(13,883,555	)	$	(7,102,987	)
Common shares issued for cash		1,918,798		1,919		278,081		—			280,000
Net loss		—		—		—		(881,779	)		(881,779	)
Balance, June 30, 2014		42,021,745	$	42,022	$	7,018,546	$	(14,765,334	)	$	(7,704,766	)

See summary of significant accounting policies and notes to unaudited condensed consolidated financial statements.

5

EAGLE FORD OIL & GAS CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended June 30,
	2014			2013
Cash flows from operating activities:
Net loss	$	(881,779	)	$	(1,054,821	)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation		—			108.000
Amortization of debt discount on convertible notes		35,975			—
Depreciation and depletion		2,502			2,498
Unrealized gain on change in derivative value		(86,958	)		(18,861	)
Amortization of original discount on notes		3,220			—
Changes in operating assets and liabilities:
Accounts receivable – production		2,515			3,448
Prepaid expenses and other current assets		36,844			(15,551	)
Accounts payable – trade		113,688			56,316
Accrued expenses		482,005			509,729
Net cash used in operating activities		(291,988	)		(409,242	)
Cash flows from investing activities:
Purchase of oil and gas properties		(19,871	)		—
Net cash used in  investing activities		(19,871	)		—
Cash flows from financing activities:
Proceeds from issuance of notes payable to related parties		30,155			—
Proceeds from issuance of short term debt		—			50,000
Proceeds from sale of common stock		280,000			104,000
Net cash provided by financing activities		310,155			154,000
Net decrease in cash and cash equivalents		(1,704	)		(255,242	)
Cash and cash equivalents, at beginning of period		3,802			259,138
Cash and cash equivalents, at end of period	$	2,098		$	3,896
Supplemental cash flow information:
Interest paid	$	—		$	—
Income taxes paid	$	—		$	—
Non-cash investing and financial activities:
Common shares issued to settle notes payable	$	—		$	30,000
Debt discount on convertible notes	$	38,762		$	—
Notes payable reclass to convertible notes	$	66,000		$	—

See summary of significant accounting policies and notes to unaudited condensed consolidated financial statements.

6

EAGLE FORD OIL & GAS CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2014 and 2013

(Unaudited)

1. ORGANIZATION

Eagle Ford Oil & Gas Corp. (“Eagle Ford”, “ECCE”, “we”, “us”, “our” or the “Company”) is an independent oil and gas company organized in Nevada actively engaged in oil and gas development, exploration and production with properties and operational focus in the Texas and Louisiana-Gulf Coast Region. Eagle Ford’s strategy is to grow its asset base by purchasing or investing in oil and gas drilling projects in the Texas and Louisiana regions.

Eagle Ford continues to be a “smaller reporting company,” as defined under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited interim financial statements have been prepared by the Company in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission. The financial information has not been audited and should not be relied upon to the same extent as audited financial statements. Certain information and footnote disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. Accordingly, these unaudited interim financial statements should be read in conjunction with the Company’s financial statements and related notes contained in the Form 10-K for the year ended December 31, 2013.

In the opinion of management, the unaudited interim financial statements reflect all adjustments, including normal recurring adjustments, necessary for fair presentation of the interim periods presented. The results of operations for the six months ended June 30, 2014 are not necessarily indicative of the results of operations to be expected for the full year.

The Company’s unaudited condensed consolidated financial statements include all accounts of Eagle Ford (ECCE) and its subsidiaries: Eagle Ford – East Pearsall, Sandstone LLC and Eagle Ford Operating. All significant inter-company balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with US GAAP 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 financial statements and that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Eagle Ford's unaudited condensed consolidated financial statements are based on a number of significant estimates, including oil and gas reserve quantities which are the basis for the calculation of depreciation, depletion and impairment of oil and gas properties; timing and costs associated with its asset retirement obligations; estimates for the realization of goodwill; and estimates of the value of derivative financial instruments.

Reclassifications

Certain reclassifications have been made to amounts in prior periods to conform to the current period presentation. All reclassifications have been applied consistently to the periods presented.

Cash and Cash Equivalents

Eagle Ford considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents.

Oil and Gas Properties, Full Cost Method

Eagle Ford uses the full cost method of accounting for oil and gas producing activities. Costs to acquire mineral interests in oil and gas properties, to drill and equip exploratory wells used to find proved reserves, and to drill and equip development wells, including directly related overhead costs and related asset retirement costs, are capitalized. Under this method, all costs, including internal costs directly related to acquisition, exploration and development activities are capitalized as oil and gas property costs. Properties not subject to amortization consist of exploration and development costs which are evaluated on a property-by-property basis. Amortization of these unproved property costs begins when the properties become proved or their values become impaired. Eagle Ford assesses the realizability of unproved properties, if any, on at least an annual basis or when there has been an indication that impairment in value may have occurred. Impairment of unproved properties is assessed based on management's intention with regard to future exploration and development of individually significant properties and the ability of Eagle Ford to obtain funds to finance such exploration and development. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is added to the capitalized costs to be amortized.

7

Costs of proved oil and gas properties, including future development costs, if any, are amortized using the units of production method over the estimated proved reserves.

In applying the full cost method, Eagle Ford performs an impairment test (ceiling test) at each reporting date, whereby the carrying value of property and equipment is compared to the “estimated present value,” of its proved reserves discounted at a 10-percent interest rate of future net revenues, based on current economic and operating conditions, plus the cost of properties not being amortized, plus the lower of cost or fair market value of unproved properties included in costs being amortized, less the income tax effects related to book and tax basis differences of the properties. If capitalized costs exceed this limit, the excess is charged as an impairment expense. The Company assessed the realizability of its oil and gas properties and determined that no impairment of its oil and gas properties was necessary as of June 30, 2014.

Depletion

Depletion is provided using the unit-of-production method based upon estimates of proved oil and natural gas reserves with oil and natural gas production being converted to a common unit of measure based upon their relative energy content. Investments in unproved properties and major development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment (ceiling test) indicate that the properties are impaired, the amount of the impairment is deducted from the capitalized costs to be amortized. Once the assessment of unproved properties is complete and when major development projects are evaluated, the costs previously excluded from amortization are transferred to the full cost pool and amortization begins. The amortizable base includes estimated future development costs and where significant, dismantlement, restoration and abandonment costs, net of estimated salvage value.

In arriving at rates under the unit-of-production method, the quantities of recoverable oil and natural gas reserves are established based on estimates made by the Company’s geologists and engineers which require significant judgment, as does the projection of future production volumes and levels of future costs, including future development costs. In addition, considerable judgment is necessary in determining when unproved properties become impaired and in determining the existence of proved reserves once a well has been drilled. All of these judgments may have significant impact on the calculation of depletion expense.

Asset Retirement Obligations

The Company follows the provisions of the Accounting Standards Codification (“ASC”) 410 - Asset Retirement and Environmental Obligations. The fair value of an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The present value of the estimated asset retirement costs is capitalized as part of the carrying amount of the long-lived asset and is subject to amortization. The Company’s asset retirement obligations relate to the abandonment of oil and gas producing facilities. The amounts recognized are based upon numerous estimates and assumptions, including future retirement costs, future recoverable quantities of oil and gas, future inflation rates and the credit-adjusted risk-free interest rate.

The following table describes changes in our asset retirement obligation during the six months ended June 30, 2014 and the year ended December 31, 2013.

	Six Months Ended June 30, 2014		For the Year Ended December 31, 2013
ARO liability at beginning of period, current and noncurrent	$	24,802	$	24,802
Liabilities incurred from  acquisitions		—		—
Accretion		—		—
ARO liability at end of period, current and noncurrent	$	24,802	$	24,802

Revenue and Cost Recognition

Eagle Ford uses the sales method of accounting for natural gas and oil revenues. Under this method, revenues are recognized based on the actual volumes of gas and oil sold to purchasers. The volume sold may differ from the volumes to which Eagle Ford is entitled based on our interest in the properties. Costs associated with production are expensed in the period incurred.

Loss per Share

Pursuant to FASB ASC Topic 260, Earnings per Share, basic net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average number of common and common equivalent shares outstanding during the period. Common share equivalents included in the diluted computation represent shares issuable upon assumed exercise of stock options and warrants using the treasury stock and “if converted” method and conversion of preferred shares. For periods in which net losses are incurred, weighted average shares outstanding is the same for basic and diluted loss per share calculations, as the inclusion of common share equivalents would have an anti-dilutive effect.

8

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are recorded at invoiced amount and generally do not bear interest. An allowance for doubtful accounts is established, as necessary, based on past experience and other factors which, in management's judgment, deserve current recognition in estimating bad debts. Such factors include growth and composition of accounts receivable, the relationship of the allowance for doubtful accounts to accounts receivable and current economic conditions. The determination of the collectability of amounts due from customer accounts requires the Company to make judgments regarding future events and trends. Allowances for doubtful accounts are determined based on assessing the Company’s portfolio on an individual customer and on an overall basis. This process consists of a review of historical collection experience, current aging status of the customer accounts, and the financial condition of Eagle Ford’s customers. Based on a review of these factors, the Company establishes or adjusts the allowance for specific customers and the accounts receivable portfolio as a whole. At June 30, 2014 and December 31, 2013, an allowance for doubtful accounts was not considered necessary as all accounts receivable were deemed collectible.

Concentration of Credit Risk

Financial instruments that potentially subject Eagle Ford to concentration of credit risk consist of cash and accounts receivable. At June 30, 2014, cash balances in interest-bearing accounts are zero.

Sales to a single customer comprised 100% of Eagle Ford's total oil and gas revenues for each of the six months ended for both June 30, 2014 and 2013. At June 30, 2014 and December 31, 2013, Eagle Ford's accounts receivable from its primary customer was $16,569 and $19,084, respectively. Eagle Ford believes that, in the event that its primary customer is unable or unwilling to continue to purchase Eagle Ford's production, there are a substantial number of alternative buyers for its production at comparable prices.

Property and Equipment, other than Oil and Gas Properties

Property and equipment are stated at cost. Additions of new equipment and major renewals and replacements of existing equipment are capitalized. Repairs and minor replacements are charged to operations as incurred. Cost and accumulated depreciation and amortization are removed from the accounts when assets are sold or retired, and the resulting gains or losses are included in operations.

Depreciation of property and equipment is provided using the straight-line method applied to the expected useful lives of the assets:

	Estimated useful lives
Pipeline transmission properties	20 years
Machinery and equipment	3 – 7 years
Office furniture, fixtures and equipment	3 – 5 years

Income Taxes

The Company uses the liability method of accounting for income taxes. Under this method, it records deferred income taxes based on temporary differences between the financial reporting and tax bases of assets and liabilities and uses enacted tax rates and laws that the Company expects will be in effect when it recovers those assets or settles those liabilities, as the case may be, to measure those taxes. The Company reviews deferred tax assets for a valuation allowance based upon whether it is more likely than not that the deferred tax asset will be fully realized.

The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. As of June 30, 2014, the Company did not identify any uncertain tax positions.

The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the income tax expense (benefit) line item in the statement of operations.

9

Share-Based Compensation

The Company follows ASC 718 - Compensation - Stock Compensation under which the Company estimates the fair value of each stock option award at the grant date by using the Black-Scholes option pricing model and common shares based on the last quoted market price of the Company’s common stock on the date of the share grant. The fair value determined represents the cost for the award and is recognized over the vesting period during which an employee is required to provide service in exchange for the award. As share-based compensation expense is recognized based on awards ultimately expected to vest, the Company reduces the expense for estimated forfeitures based on historical forfeiture rates, if available. Previously recognized compensation costs may be adjusted to reflect the actual forfeiture rate for the entire award at the end of the vesting period. Excess tax benefits, as defined in ASC 718, if any, are recognized as an addition to paid-in capital.

Financial instruments

The accounting standards regarding fair value of financial instruments and related fair value measurements define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures.

The three levels are defined as follows:

·   Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

· Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

· Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that the warrants outstanding as of the date of these financial statements include an exercise price “reset” adjustment that qualifies as derivative financial instruments under the provisions of ASC 815-40, Derivatives and Hedging – Contracts in an Entity’s Own Stock.” See Note 6 for discussion of the impact the derivative financial instruments had on the Company’s unaudited condensed consolidated financial statements and results of operations.

Significant Level 3 inputs used to calculate the fair value of the warrants and derivative notes include the stock price on the valuation date, expected volatility, risk-free interest rate and management’s assumptions regarding the likelihood of a repricing of these warrants pursuant to the anti-dilution provision. See Note 6 for further discussion.

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2014. There were no transfers of financial assets between levels during the six months ended June 30, 2014.

	Carrying Value at June 30, 2014		Fair Value Measurement at June 30, 2014
			Level 1		Level 2		Level 3
Derivative liability – Warrants	$	—	$	—	$	—	$	—
Derivative liability – Notes	$	44,848	$	—	$	—	$	44,848

The Company did not identify any other assets and liabilities that are required to be presented on the unaudited condensed consolidated balance sheet at fair value.

Contingencies

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a loss contingency indicates that it is probable that a loss has been incurred and the amount of the liability can be reasonably estimated, then the estimated liability is accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. The Company expenses legal costs associated with contingencies as incurred.

10

Environmental Expenditures

The Company is subject to extensive federal, state and local environmental laws and regulations. These laws regulate the discharge of materials into the environment and may require the Company to remove or mitigate the environmental effects of the disposal or release of petroleum or chemical substances at various sites. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed.

Liabilities for expenditures of a non-capital nature are recorded when environmental assessment and/or remediation is probable, and the costs can be reasonably estimated. Such liabilities are generally undiscounted unless the timing of cash payments for the liability or component is fixed or reliably determinable. No such liabilities existed or were recorded at June 30, 2014 and December 31, 2013.

Recent Accounting Pronouncements

Eagle Ford does not expect the adoption of any recently issued accounting pronouncements will have a significant impact on its results of operations, financial position or cash flow.

3. LIQUIDITY AND GOING CONCERN

As shown in the accompanying unaudited condensed consolidated financial statements, for the six months ended June 30, 2014, Eagle Ford incurred a net loss attributable to common shareholders of $881,779. During the six months ended June 30, 2014, operating expenses included interest expenses and non cash expenses related to the derivative liability. At June 30, 2014 and December 31, 2013, the Company had a working capital deficit (current liabilities minus current assets) of $14,305,112and $13,710,962, respectively, and held cash and cash equivalents of $2,098 and $3,802, respectively. These conditions raise substantial doubt as to our ability to continue as a going concern.

Management is working to improve its liquidity and its results from operations by raising additional capital and investing in the drilling of additional wells to improve future earnings and cash flow. Management is exploring various avenues to obtain such funding to develop our properties and pay existing debt including the issuance of new debt, issuance of securities, sales of properties and joint ventures. Management anticipates that additional financings and loans will be required to sustain operations in the future. There can be no assurance that the Company will be successful in raising the required capital.

The failure to raise sufficient capital through future debt or equity financings or otherwise may cause the Company to curtail operations, sell assets, or result in the failure of Eagle Ford’s business. The unaudited condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

4. OIL AND GAS PROPERTIES

The following table sets forth the Company’s costs incurred in oil and gas property acquisition, exploration and development activities for the six months ended June 30, 2014. All of the Company’s oil and gas properties are located in the United States.

Well Description	December 31, 2013		Additions		Impairment/ Dispositions		June 30, 2014
East Pearsall, Frio Co. TX	$	6,464,436	$	19,871	$	—	$	6,484,307
	$	6,464,436	$	19,871	$	—	$	6,484,307

EAST PEARSALL

On June 4, 2012, ECCE entered into an agreement though a special purpose entity named EFOGC – East Pearsall, L.L.C., a Texas limited liability company. ECCE owns 100% of the Class B Membership Interests in EFEP, while MOC owns 100% of the Class A Membership Interest. EFEP completed the acquisition of 85% Working Interest in 3,683 acres in Frio County, Texas from Amac Energy, L.L.C. to drill and develop the Austin Chalk, Buda, Eagle Ford and Pearsall Shale The agreement with AMAC Energy was to purchase the 85% of the working interest on the East Pearsall lease. As part of the sales agreement, ECCE had to drill the one well on each of the three leases prior to 6 months of the expiration of the leases.  Due to the fact that ECCE was unable to acquire drilling funds per the agreement prior to the agreed date, ECCE was required, as stated in the agreement, to reassign the leases back to AMAC Energy. As a result as stated in the settlement agreement, On July 8, 2014 the MOC-East Pearsall Board of Directors approved the release of all liens to AMAC. ECCE has been released from any obligation to AMAC Energy.

MOC invested $7,000,000 into EFOGC – East Pearsall, LLC for the sole purpose of acquiring the AMAC leases, with MOC owning 100% of A series common stock and ECCE owning B series common stock as “designated operator”. Per the agreement with MOC, ECCE was required to acquire a minimum of $10,500,000 drilling capital by December 2012, however, ECCE was unsuccessful. MOC granted an extension for another six months, however ECCE was also unsuccessful in that attempt to raise funds.

With the leases being reassigned to AMAC Energy, the entity of EFOGC – East Pearsall is currently “winding down” and will be closed as an operating entity in the state of Texas. With this winding down, ECCE will no longer have any liability relative to EFOGC – East Pearsall and the East Pearsall leases.

ECCE has attempted to raise funds in order to develop this field since the time of purchase and has been unsuccessful.

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The closing of the East Pearsall subsidiary is currently being negotiated with the attorneys for MOC. We continue to have discussions on the wording of the closing documents, and the final will most likely, not be available until after the date of filing. At this time ECCE has not negotiated an agreement with MOC, as the final closing of the subsidiary is not complete and still under negotiation.

LIVE OAK COUNTY, TEXAS

In August 2010, ECCE purchased a farm-in of a 1% working interest in 2,400 acres and the drilling of two wells in the Eagle Ford Shale formation located in Live Oak County in South Texas for $250,000. The Dena Forehand #2H, the Kellam #2H and the Hammon 1H were drilled and completed and production began during late 2010 and early 2011 and classified as proved reserves. Subsequent production has proven to be well below expectations, and ECCE does not intend to pursue additional investments in this field. As of the date of this report, the wells in Live Oak County continue to have minimal gas production.

The three wells are still producing, but revenue is insignificant after expenses are deducted. ECCE may owe future amounts on these wells pertaining to any attempts to improve production; however there has been no decision to make such repairs, or improvements.

OHIO PIPELINE

In October 2008, ECCE acquired a gas pipeline (“Pipeline”) approximately 13 miles in length located in Jefferson and Harrison Counties, Ohio. The Pipeline was purchased from M- J Oil Company of Paris, Ohio, an unaffiliated third party, by issuing a mortgage note for $1,000,000. The mortgage note bears an 8% annual interest rate. The mortgage is secured by the Pipeline assets. The mortgage was due on March 31, 2010, at which time, the entire unpaid balance of principal and accrued interest was to have been paid. The pipeline services oil and gas properties owned by Samurai Corp, an affiliated company.

On February 27, 2009, ECCE entered into an agreement to buy oil and gas producing properties in Ohio, from Samurai Corp, an affiliated company owned by Sam Skipper, who was President of ECCE at that time. Upon further review, due to market conditions pertaining to the price of oil and gas, both Samurai and ECCE decided that the transaction was not in the best interest of shareholders of either company. Therefore, on April 13, 2009 the Board of Directors of both companies decided to terminate the transaction.

A review of the pipeline valuation was performed by management. This was necessary as the asset was not an income producing asset during 2010. A comparison of replacement cost, comparable market value and comparable earnings potential to other pipelines, showed that the expected realizable value of the asset at December 31, 2009 was $100,000. An impairment charge of $900,000 was recorded during the year ended December 31, 2009.

Due to the failure to complete the transfer of assets from Samurai to ECCE, the covenants of the Pipeline purchase were violated. On February 28, 2009 M-J Oil Company Inc, of Paris Ohio, obtained a judgment against ECCO Energy for non-compliance with covenants in the original mortgage relating to the purchase of the M-J Oil Company pipeline (“Pipeline”). We are in negotiations with the M-J Oil Company to remove the judgment and to adjust the mortgage terms, which required full payment on March 31, 2009. As of this date, we have not reached a satisfactory agreement with the lender. M-J Oil Company has taken legal action to pursue the judgment in the State of Texas, filing a lawsuit in the State of Texas in April, 2014. As of June 30, 2014, the company is in process of negotiation for settlement of the judgment.

BAYOU CHOCTAW

On August 5, 2011, ECCE, entered into an agreement to purchase 1.5% Working Interest in the Bayou Choctaw Project located in Iberville Parish, Louisiana from GFX Energy, Inc. (GFX). Prior to December 31, 2011, ECCE decided to not further participate in the Bayou Choctaw development. ECCE and GFX decided to use the $100,000 deposited for Bayou Choctaw as a deposit on a future, undetermined endeavor relating to the exploration of oil and gas. ECCE remains in discussion about this investment with GFX Energy, Inc., and anticipates using this balance in a future, undetermined activity.

HARDIN COUNTY/MERIDIAN CAPITAL VENTURES

During the year ended December 31, 2013, the Company was in the process of making an offer on some property in Hardin County, TX. Meridian Capital Ventures intended to fund the acquisition. During the quarter, Vanguard Energy received a higher offer than ECCE was prepared to bid and the property was sold to another company. As of June 30, 2014 the agreement to fund the acquisition has been cancelled and the amounts payable to Meridian Capital Ventures has been voided.

Eagle Ford Oil & Gas Operating Company

During March, 2014, ECCE began the process of registering a new subsidiary, Eagle Ford Oil & Gas Operating Company. The new subsidiary will be responsible for any drilling and related production activities of the company. As of the date of this report, the subsidiary has no assets or liabilities.

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5. DEBT

Notes Payable – Related Parties

	June 30, 2014		December 31, 2013
Promissory note to TDLOG – 8% interest; due June 30, 2014; unsecured (1)	$	817,500	$	817,500
Promissory note to Michael Munsey – 4% interest; due December 31, 2014; unsecured (2)		20,155		—
Promissory note to TDLOG – 8% interest; due June 30, 2014; unsecured (1)		10,000		—
Promissory note to TDLOG – 8% interest; due June 30, 2014; unsecured (1) Total:		80,000		80,000
Notes Payable – Related Parties	$	927,655	$	897,500

(1)	TDLOG, LLC is controlled by Thomas E. Lipar, Chairman of the Board of Eagle Ford.  Note due date was changed to June 30, 2014 from September 30, 2013. As of date, the notes are in default.
(2)	Michael Munsey is Vice-President of Operations and Exploration of Eagle Ford.

Accrued interest expenses on the above notes to the related party as of June 30, 2014 and December 31, 2013 is $261,502 and $225,190, respectively.

Interest expenses to related party for the three months ended June 30, 2014 and 2013 is $18,191 and $17,950, respectively.

Interest expenses to related party for the six months ended June 30, 2014 and 2013 is $36,312 and $35,900, respectively.

Notes Payable – Non-Related Parties

	June 30, 2014			December 31, 2013
Promissory note – 12% interest; due March 31, 2009; not secured (1)	$	328,578		$	328,578
Promissory note – 5% interest; due January 1, 2012; not secured (2)		227,131			227,131
Pipeline mortgage – 8% interest; due September 30, 2009; secured by pipeline (3)		1,000,000			1,000,000
Promissory notes – 6% interest; due April 1, 2011; not secured (2)		112,000			112,000
Promissory notes – 5% interest; due October 15, 2010; not secured (4)		50,000			50,000
Promissory note to a former Director – 8% interest; due July 1, 2010; unsecured (5)		25,000			25,000
Promissory note – Medallion Investment – 10% interest (6)		7,000,000			7,000,000
Promissory note – 12% interest with $3,000 OID; due July 14, 2014 (7)		—			33,000
Promissory note –12% interest with $3,000 OID; due July 14, 2014 (7)		—			33,000
Total notes payable		8,742,709			8,808,709
Less: Unamortize debt discount portion		—			(3,218	)
Total notes payable, net		8,742,709			8,805,491
Less: current portion of notes payable		(8,742,709	)		(8,805,491	)
Total notes payable – long term	$	—		$	—

Accrued and unpaid interest for notes payable to non-related parties at June 30, 2014 and December 31, 2013 was $2,237,538 and $1,825,482 respectively, and is included in accrued expenses on the accompanying unaudited condensed consolidated balance sheets.

Interest expenses to non-related party for the six months ended June 30, 2014 and 2013 is $212,371 and $211,171, respectively and Interest expenses to non-related party for the three months ended June 30, 2014 and 2013 is $xxx and $xxx, respectively.

13

(1)	Pursuant to the Reverse Acquisition, the Company assumed these notes payable totaling $328,578. All principal and interest became due September 30, 2009 for 12% notes. This note has not been repaid and is in default. No demand has been made for payment. Eagle Ford is continuing to accrue interest on this note at the stated rate.
(2)	Pursuant to the Reverse Acquisition, the Company assumed two notes payable (i) $227,131 due on January 1, 2012 for 5% and (ii) $142,000 due on April 1, 2011 for 6% interest for drilling on the Wilson Field lease and for general corporate purposes. Neither of these notes has been repaid in cash and is in default. Eagle Ford is continuing to accrue interest on these notes at the stated rate.  During the year ended December 31, 2013, the note holder agreed to convert $30,000 of note on issuance of 81,081 shares of common stock. On March 12, 2014, the note holder demanded payment on the outstanding portion of the note totaling $339,131 (see Note 8).  The note holder has demanded payment, and we are currently in negotiations regarding a settlement.
(3)	The entire unpaid balance of principal and accrued interest was due on September 30, 2009. No payments have been made and this mortgage note is in default. There has been a judgment rendered against Eagle Ford in the amount of the mortgage (see Note 8). Eagle Ford is in discussions with the lender to restructure the mortgage. Eagle Ford is continuing to accrue interest on this note at the stated rate.  In April, 2014, the note holder began the process to move the judgment to Texas courts.
(4)	Pursuant to the Reverse Acquisition, the Company assumed these notes payable totaling $50,000 from two different note holders for drilling on the Wilson Field lease and for general corporate purposes. Neither of these notes has been repaid in cash and is in default. One party has demanded payment on a $25,000 note. Eagle Ford is continuing to accrue interest on these notes at the stated rate (see Note 8).
(5)	Prior to the Reverse Acquisition, Eagle Ford borrowed $25,000 from a related party for general corporate purposes. The note is in default and due on demand. Eagle Ford continued to accrue interest on these notes at the stated rate. From July 20, 2011 this note holder is no longer a related party.

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(6)

East Pearsall Medallion Oil Company LTD (MOC) invested $7,000,000 with ECCE to form MOC/Eagle Ford Oil & Gas East Pearsall, in order to purchase the East Pearsall tract from AMAC Energy, which created a Special Purpose Entity (SPE). Upon receipt of the funds, ECCE granted to MOC a lien and security interest on all the assets of the SPE, including the leases up to the investment and any accrued interest. The amount was to be paid in full within 12 months, and bears an interest rate of 10.00% APR. There will be an additional distribution of $7,000,000 to MOC in preferred production payments, which may be deferred until after receipt of the initial $7,000,000 and interest payments and then paid per agreed upon sliding scale within 18 months from the closing date or a mutually agreed date. MOC will retain 6.55% of the 63.75% Net Revenue Interest as an overriding royalty interest (ORRO) after all payments described previously are received by MOC. There may also be a sliding scale on these payments to be negotiated on a reasonable basis to enable ECCE to retain reasonable cash proceeds to enable it to conduct its business with respect to drilling and development of the project. The overriding royalty interest shall be free and clear of all costs except production taxes. The ORRO will apply to any renewals, extensions, etc. of existing leases and to any new leases acquired within the Area of Mutual Interest. ECCE must satisfy all drilling obligations or otherwise default to the terms included in the final transaction documents. MOC shall have all rights under the SPE documents, including but not limited to the right to foreclose on its lien and security interest and obtain all rights to the Leases. ECCE agreed to reimburse MOC for any legal hours it occurred, up to $10,000. Included in the AMAC investment agreement, ECCE agrees to cause the drilling of at least one oil and gas well on or prior to 12 months from the date hereof and obtain drilling funds of at least $21,500,000 with a satisfactory drilling partner within three months of the date hereof, or December 4, 2012. On October 22, 2012, MOC agreed to modify the agreement with ECCE relating to the issue relating to the date for raising drilling funds. ECCE needed to raise $10,500,000 for drilling funds by December 4, 2012, instead of the $21,500,000 in the original agreement. As of the date of this report, ECCE has failed to raise the necessary drilling funds. This caused the company to be in default, and as a result, the note has been reclassified from a long term to short term liabilityECCE has attempted to raise funds in order to develop this field since the time of purchase. With the leases being reassigned to AMAC Energy, the entity of EFOGC – East Pearsall is currently “winding down” and will be closed as an operating entity in the state of Texas. With this winding down, ECCE will no longer have any liability relative to EFOGC – East Pearsall and the East Pearsall leases. ECCE has attempted to raise funds in order to develop this field since the time of purchase and has been unsuccessful. The closing of the East Pearsall subsidiary is currently being negotiated with the attorneys for MOC. We continue to have discussions on the wording of the closing documents, and the final will most likely, not be available until after the date of filing. At this time ECCE has not been able to negotiate a closing of the subsidiary with MOC.

(7)

As these notes has conversion features, please see the discussion in convertible notes (refer below for further details).

Convertible Debentures and Notes Payable

	June 30, 2014			December 31, 2013
Convertible debentures (1)	$	545,000		$	545,000
Convertible notes payable (2)		66,000			—
Total convertible debentures and notes payable		611,000			545,000
Unamortized debt discount on convertible notes payable		(2,784	)		—
Total: Convertible debentures and notes payable – net		608,218			545,000
Less: current portion of convertible debentures and notes payable		(608,216	)		(545,000	)
Total convertible debentures and notes payable – long term	$	—		$	—

(1) On June 20, 2011, the Company assumed the liability for $545,000 of Secured Convertible Debentures as a result of the Reverse Acquisition. The Secured Convertible Debentures matured on July 26, 2011, and earned interest at a rate of 12%, payable quarterly in 3,000 shares of common stock for each debenture. The Company is in default. There have been no shares issued for the interest payable as of June 30, 2014, nor have the Debentures been repaid. The interest for these debentures is accrued at the 12% rate and is included in accrued expenses. The Debentures are secured by a 1.5% interest in three oil and gas producing wells that are in a 2,400 acre lease in Live Oak County, Texas. The Debentures are convertible at the holders’ option into Eagle Ford restricted common stock at a fixed conversion rate of $0.90 per common share. The Debentures may also be satisfied by transferring the lease to the investors. Eagle Ford is in negotiation with the debenture holders and no agreement has been made as of the date. Accrued and unpaid interest was $241,055and $224,705 at June 30, 2014 and December 31, 2013, respectively related to the convertible debentures. Interest expenses on convertible debenture for the three months ended June 30, 2014 and 2013 is $16,350 for each quarter.

(2) On July 18, 2013, ECCE issued two Notes Payable of $33,000 each, for a combined total of $66,000 to two individuals. The notes contained a $3,000 or $6,000 total original issue discount. The notes are due on July 14, 2014, and if they were repaid within ninety days from date of issue, then no interest would accrue. If they were paid after 90 days, then they accrued interest at a rate of twelve percent per annum, due on that date. The notes could be converted into common stock after 180 days, which occurred on January 14, 2014. The Conversion Price is the lesser of $0.39 per share or 60% of the lowest trade in the 25 trading days previous to the conversion. The Note accrues interest at a rate of 12% per annum and matured on July 13, 2014.  The notes were not paid or converted and are now in default.

The Company identified embedded derivatives related to the Convertible Note entered into on January 13, 2014.  These embedded derivatives included certain conversion features.  The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date.  At the inception of the Convertible Note, the Company determined a fair value of $38,762 of the embedded derivative.  The fair value of the embedded derivative was determined using intrinsic value.

The initial fair value of the embedded debt derivative of $38,762 was allocated as a debt discount and derivatives liability.

The fair value of the described embedded derivative of $44,848 at June 30, 2014 was determined using the Black-Scholes Model with the following assumptions:

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(1) risk free interest rate of	0.28%;
(2) dividend yield of	0%;
(3) volatility factor of	183%;
(4) an expected life of the conversion feature of	6 months, and
(5) estimated fair value of the company’s common stock of	$0.25 per share.

At June 30, 2014, the Company adjusted the recorded fair value of the derivative liability to market resulting in non-cash, non-operating loss of $92,464 and ($6,086) for the three and six months ended June 30, 2014.

During the three and six months ended June 30, 2014, the Company amortized $16,490 and $35,975 of debt discount to current period operations as financing expense.

Activity for the derivative liability- convertible note during the six months ended June 30, 2014 was:

	December 31, 2013		Activity During the Period		Decrease in Fair Value		June 30, 2014
Derivative convertible notes	$	—	$	44,848	$	—	$	44,848
Total	$	—	$	44,848	$	—	$	44,848

6. DERIVATIVE LIABILITY- WARRANTS

In connection with the Reverse Acquisition, the Company assumed 1,000,000 warrants which were issued by Eagle Ford prior to the Reverse Acquisition in connection with the conversion of Eagle Ford’s convertible preferred shares, which also occurred prior to the Reverse Acquisition. The Company determined that the warrants contained provisions that protect the holders from declines in the Company’s stock price that could result in modification of the exercise price under the warrant based on a variable that is not an input to the fair value of a “fixed-for-fixed” option as defined under ASC 815 – 40. As a result, these warrants were not indexed to the Company’s own stock. The fair value of these warrants was recognized as derivative warrant instruments and will be measured at fair value at each reporting period. As of June 20, 2011, the Company determined that, using a lattice model, the fair value of the warrants was $438,680, which had been reduced to $93,044 by December 31, 2013. As of June 30, 2014, the warrants expired and determined the fair value to be $-0-. The decrease in fair value has been recognized as an unrealized gain on the change in derivative value of $93,044 and $18,861 for the six months ended June 30, 2014 and 2013, respectively and the decrease in fair value has been recognized as an unrealized gain on the change in derivative value of $11,525 and $70,397 for the three months ended June 30, 2014 and 2013, respectively.

Activity for the derivative warrant during the six months ended June 30, 2014 was:

	December 31, 2013		Activity During the Period		Decrease in Fair Value		June 30, 2014
Derivative warrant instruments	$	93,044	$	—	$	93,044	$	—
Total	$	93,044	$	—	$	93,044	$	—

7. SHAREHOLDERS’ EQUITY

As of June 30, 2014 and December 31, 2013, there were 42,021,745 and 40,102,947 shares of common stock issued and outstanding, respectively.

Common stock sales

On January 14, 2014, ECCE sold 183,488 shares of common stock to several individuals for $0.1635 per share.

On March 12, 2014, ECCE sold 1,735,310 shares of common stock to several individual for $0.144 per share.

All proceeds from stock sales were used for general corporate purposes.

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Warrants

Warrant activity during the six months ended June 30, 2014 is as follows:

	Warrants		Weighted-Average Exercise Price		Aggregate Intrinsic Value
Outstanding at January 1, 2014		1,000,000	$	0.50	$	—
Granted		—		—		—
Exercised		—		—		—
Expired		1,000,000		0.50		—
Outstanding and exercisable at June 30, 2014		—	$	—	$	—

The fair value of these warrants was recognized as derivative warrant instruments and had been measured at fair value at each reporting period. See Note 6. As of June 30, 2014, all warrants had expired with no value.

8. COMMITMENTS AND CONTINGENCIES

Legal Proceedings

On February 28, 2009 M-J Oil Company Inc, of Paris Ohio, obtained a judgment of $1,000,000 against Eagle Ford (f/k/a ECCO Energy) for non-compliance with covenants in the original mortgage relating to the purchase of the M-J Oil Company pipeline (“Pipeline”). Eagle Ford is in negotiations with the M-J Oil Company to remove the judgment and to adjust the mortgage terms, which required full payment on March 31, 2009. As of the date of this filing, the Company has not reached a satisfactory agreement with the lender, although a settlement is being actively pursued. In April, 2014, M-J commenced legal action to move the judgment from Ohio to Texas courts.

Eagle Ford has not paid property taxes for 2007, 2008 or 2009 on the Wilson Field in Nueces County, Texas. Samurai Corp. agreed to assume the liabilities for property taxes for 2010 when it acquired the property. The County has initiated legal proceedings to collect those taxes by placing tax liens on the property. As of June 30, 2014, Eagle Ford owed $43,452 for these property taxes. ECCE is currently in negotiations to settle this liability.

On March 12, 2014, one of the note holders sent a letter asking for payment on four notes totaling $339,130. We are in discussion with this note holder about a settlement.

On March 17, 2014, a note holder sent a letter asking for payment on a $25,000 note. ECCE is in discussions with this note holder about a settlement.

Operating Leases

The rental contract at 1110 NASA Parkway for 1,379 sq. ft. commenced July 1, 2010 and terminated on August 31, 2014. On August 31, 2013, ECCE renewed the lease for the next year at a rate of $2,011 per month. On August 1, 2014 the lease expired. ECCE is currently negotiating the renewal and is on a month to month basis at the date of filing.

9. SUBSEQUENT EVENTS

In order to improve the Balance Sheet and make the company more appealing to new investment as well as conserving cash flow, on August 4, 2014 the Board of Directors initiated a thorough review of all debt and service contracts in order to control future expenses and to reduce those current obligations for payables, interest and other debt instruments. ECCE will be reviewing all such items and will attempt to settle them at a reduced amount. The Chairman of the Board, Thomas Lipar agreed to advance ECCE an as yet undetermined amount in order to satisfy immediate financial needs of the company. He also agreed to fund an undetermined amount to settle such AP and Notes Payable settlements. The funds to settle the open payable and notes payable will be determined on a case by case basis, and will be decide within 60 days of the filing. The Board reserves the right to end this endeavor at any time.

ECCE agreed to set up a compensation for Michael Munsey for his services as a technical advisor in examining and selecting potential and existing oil and gas properties. The Board of Directors agreed to grant 425,000 shares of restricted stock to Michael Munsey, which is to be issued in four equal amounts at the end of every six months. The first installment of 106,250 shares will be issued on August 31, 2014. Mr. Munsey also agreed to accept the position of Vice-President of Operations and Exploration.

EAST PEARSALL

On June 4, 2012, ECCE entered into an agreement though a special purpose entity named EFOGC – East Pearsall, L.L.C., a Texas limited liability company. ECCE owns 100% of the Class B Membership Interests in EFEP, while MOC owns 100% of the Class A Membership Interest. EFEP completed the acquisition of 85% Working Interest in 3,683 acres in Frio County, Texas from Amac Energy, L.L.C. to drill and develop the Austin Chalk, Buda, Eagle Ford and Pearsall Shale The agreement with AMAC Energy was to purchase the 85% of the working interest on the East Pearsall lease. As part of the sales agreement, ECCE had to drill the one well on each of the three leases prior to 6 months of the expiration of the leases.  Due to the fact that ECCE was unable to acquire drilling funds per the agreement prior to the agreed date, ECCE was required, as stated in the agreement, to reassign the leases back to AMAC Energy. As a result as stated in the settlement agreement, On July 8, 2014 the MOC-East Pearsall Board of Directors approved the release of all liens to AMAC. ECCE has been released from any obligation to AMAC Energy.

MOC invested $7,000,000 into EFOGC – East Pearsall, LLC for the sole purpose of acquiring the AMAC leases, with MOC owning 100% of A series common stock and ECCE owning B series common stock as “designated operator”. Per the agreement with MOC, ECCE was required to acquire a minimum of $10,500,000 drilling capital by December 2012, however, ECCE was unsuccessful. MOC granted an extension for another six months, however ECCE was also unsuccessful in that attempt to raise funds.

With the leases being reassigned to AMAC Energy, the entity of EFOGC – East Pearsall is currently “winding down” and will be closed as an operating entity in the state of Texas. With this winding down, ECCE will no longer have any liability relative to EFOGC – East Pearsall and the East Pearsall leases.

ECCE has attempted to raise funds in order to develop this field since the time of purchase and has been unsuccessful.

The closing of the East Pearsall subsidiary is currently being negotiated with the attorneys for MOC. We continue to have discussions on the wording of the closing documents, and the final will most likely, not be available until after the date of filing. At this time ECCE has not negotiated an agreement with MOC, as the final closing of the subsidiary is not complete and still under negotiation.

The Company has evaluated all transactions from June 30, 2014 through the issuance date of the financial statements for subsequent event disclosure consideration.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The statements included or incorporated by reference in this Quarterly Report, other than statements of historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. In some cases, you can identify forward-looking statements by the words “anticipate,” “estimate,” “expect,” “objective,” “projection,” “forecast,” “goal,” and similar expressions. Such forward-looking statements include, without limitation, the statements herein and therein regarding the timing of future events regarding the operations of the Company and its subsidiaries. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors including without limitation the following risk factors:

-the  cyclical nature of the natural gas and oil industries to meet our obligations, finance operating deficits and fund acquisitions, exploration and development and continue as a going concern

-our ability to obtain additional financing

-our ability to successfully and profitably find, produce and market oil and natural gas

-uncertainties associated with the United States and worldwide economies

-substantial competition from larger companies

-the loss of key personnel

-operating interruptions (including weather, leaks, explosions and lack of rig availability)

-the cyclical nature of the natural gas and oil industries

BUSINESS OPERATIONS

We (“Eagle Ford” or the “Company”) are an independent oil and gas company actively engaged in oil and gas development, exploration and production with properties and operational focus in the Texas-Louisiana Gulf Coast Region. Our strategy is to grow our asset base by investing in oil and gas drilling and production in various locations in that region. Our shares of common stock are traded on the Over-the-Counter Bulletin Board, with the symbol ECCE.

RECENT DEVELOPMENTS

Business Acquisitions

On June 20, 2011, pursuant to a Purchase Agreement, Eagle Ford acquired all of the membership interests of Sandstone Energy, L.L.C. (“Sandstone”) in exchange for 17,857,113 shares of common stock of Eagle Ford (the “Reverse Acquisition”). Following the Reverse Acquisition, the shares issued to the former owners of Sandstone constituted 82% of the Company’s common stock. Sandstone Energy, L.L.C.’s principal assets at the date of the Acquisition were 50% membership interests in each of Sandstone Energy Partners I, L.L.C. (“SSEP1”), Sandstone Energy Partners II, L.L.C. (“SSEP2”) and Sandstone Energy Partners III, L.L.C. (“SSEP3”). On August 8 and August 11, 2011, Eagle Ford acquired the remaining 50% interests in each of SSEP1, SSEP2 and SSEP3 with an accumulated deficit of $1,443,302 in exchange for 8,970,120 shares of Eagle Ford common stock. Eagle Ford now owns 100% of the interests in these ventures. Subsequent to the merger, SSEP1, SSEP2 and SSEP3 were closed.

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The Reverse Acquisition was accounted for as a “reverse acquisition” in which Sandstone is deemed to be the accounting acquirer (“Acquirer”) and Eagle Ford is deemed to be the accounting acquiree (“Acquiree”). Consequently, the assets and liabilities and the historical operations reflected in the accompanying consolidated financial statements prior to the Reverse Acquisition are those of Sandstone and are recorded at the historical cost basis of Sandstone. The consolidated financial statements after completion of the Reverse Acquisition include the assets and liabilities of Sandstone and the Acquiree and the historical operations of Sandstone and the Acquiree and its subsidiaries from the closing date of the Reverse Acquisition. In accordance with ASC 805, the assets and liabilities of the Acquiree at the date of the acquisition have been recorded at fair value.

Oil & Gas Properties

Prior to the Reverse Acquisition, in August 2010, Eagle Ford purchased a farm-in of a 1% working interest in 2,400 acres and the drilling of three wells in the Eagle Ford Shale formation located in Live Oak County in South Texas for $250,000 plus potential additional expenses related to the drilling. The wells were drilled and completed and production began during November and December 2010 and classified as proved reserves. As of the date of this report, the wells in Live Oak County continue to have minimal oil and gas production. We do not anticipate any further drilling in this field, but may owe some currently undetermined amounts for past and future maintenance and repairs.

On August 5, 2011, ECCE, entered into an agreement to purchase 1.5% Working Interest in the Bayou Choctaw Project located in Iberville Parish, Louisiana from GFX Energy, Inc. (GFX). Prior to December 31, 2011, ECCE decided to not further participate in the Bayou Choctaw development. ECCE and GFX decided to use the $100,000 deposited for Bayou Choctaw as a deposit on a future, undetermined endeavor relating to the exploration of oil and gas. Negotiations are underway as how to proceed with this deposit.

On June 4, 2012, ECCE entered into an agreement though a special purpose entity named EFOGC – East Pearsall, L.L.C. (“EFEP”), a Texas limited liability company. ECCE owns 100% of the Class B Membership Interests in EFEP. EFEP completed the acquisition of 85% Working Interest in 3,683 acres in Frio County, Texas from Amac Energy, L.L.C. to develop the Austin Chalk, Buda, Eagle Ford and Pearsall Shale reservoirs. ECCE is attempting to raise funds in order to develop this field. The total investment to date in this field totals $6,484,307. At the date of this filing, ECCE has returned the leased property to AMAC and is negotiating the closing of the East Pearsall subsidiary with MOC.

The Company also plans to acquire additional leases and other oil and gas properties or interests in the Texas-Louisiana Gulf Coast region and in the Eagle Ford producing zones in Texas.

RESULTS OF OPERATIONS

We have incurred recurring losses to date. Over the next twelve months, our strategy is to grow our asset base by investing in oil and gas drilling and production in the Texas-Louisiana Gulf Coast region. Although we do not currently operate any of our wells, we desire to acquire operated as well as non-operated properties that meet or exceed our rate of return criteria. For acquisitions of properties with additional development, exploitation and exploration potential, our focus has been on acquiring operated properties so that we can better control the timing and implementation of capital spending. We will sell properties when management is of the opinion that the sale price realized will provide an above average rate of return for the property or when the property no longer matches the profile of properties we desire to own.

The execution of our growth strategy is dependent on a number of factors including oil and gas prices, the availability of oil and gas properties that meet our economic criteria and the availability of funds on terms that are acceptable to us, if at all. There is no assurance that these factors will occur. We will require substantial additional capital to meet our current obligations and long term operating requirements and acquisition objectives.

Six months Ended June 30, 2014 Compared to Six months Ended June 30, 2013

For the six months ended June 30, 2014, Eagle Ford recognized revenue of $1,716, a decrease of $1,206 compared to revenue of $2,922 during the six months ended June 30, 2013. The decrease in revenues for the six months ended June 30, 2014 is primarily due to the net decreased production from the Live Oak County Wells, despite an increase in price received per mcf. During the six months ended June 30, 2014, we sold no barrels of oil and 468 Mcf of natural gas at an average price of $4.02 per Mcf. During the six months ended June 30, 2013, we sold no oil and approximately 877 mcf of natural gas at an average price of $3.41 per Mcf.

For the six months ended June 30, 2014, we incurred operating expenses of $437,538, a decrease of $148,348 compared to $585,886 for the six months ended June 30, 2013.

Other expenses decreased by $25,900 in total, to $445,957 from $471,857 for the six months ended June 30, 2014 and 2013, respectively. The decrease in other expenses is due to a loss on change in derivative value and on the warrant derivative expiration.

Our net loss for the six months ended June 30, 2014 was $881,779, a decrease of $173,042 compared to a net loss of $1,054,821 for the six months ended June 30, 2013, due to the reasons noted above, primarily due to derivative value changes.

19

Three months Ended June 30, 2014 Compared to Three months Ended June 30, 2013

For the three months ended June 30, 2014, Eagle Ford recognized revenue of $556, a decrease of $1,009 compared to revenue of $1,565 during the three months ended March 31, 2013. The decrease in revenues for the three months ended June 30, 2014 is primarily due to the net decreased production from the Live Oak County Wells despite along with a decrease in price received per mcf. During the three months ended June 30, 2014, we sold no barrels of oil and 188 Mcf of natural gas at an average price of $4.05 per Mcf. During the three months ended March 31, 2013, we sold no oil and approximately 447 mcf of natural gas at an average price of $3.73 per Mcf.

For the three months ended June 30, 2014, we incurred operating expenses of $192,998, a decrease of $159,072 compared to $352,070 for the three months ended June 30, 2013. Administrative costs decreased by $155,291 due to lower legal and technical items.

Other expenses decreased by $12,355 in total, to $162,361 from $174,716 for the three months ended June 30, 2014 and 2013, respectively. The decrease in other expenses is due to a loss on change in derivative value and on the warrant derivative expiration.

Our net loss for the three months ended June 30, 2014 was $354,803, a decrease of $170,418 compared to a net loss of $525,221 for the three months ended June 30, 2013, due to the reasons noted above, primarily due to the decrease in administrative costs and the change in derivative valuations.

LIQUIDITY AND CAPITAL RESOURCES

Six Month Period Ended June 30, 2014

At June 30, 2014, our current assets were $20,448 and our current liabilities were $14,325,561, which resulted in a working capital deficiency of $14,305,113. At June 30, 2014, our total liabilities were $14,350,362 consisting of: (i) $1,092,043 in accounts payable - trade; (ii) $2,648,588 in accrued expenses; (iii) $261,502 in accrued interest – related party; (iv) $8,742,709 in notes payable to third parties, short term; (v) $927,655 in short-term debt – related parties; (vi) $608,216 in convertible debt; (vii) $44,848 in derivative liabilities for notes; and (ix) $24,802 in asset retirement obligations.

Stockholders’ deficit increased from $7,102,987 at December 31, 2013 to a deficit of $7,704,768 as of June 30, 2014. This deficit was increased by the loss from operations for the first six months of 2014.

Cash Flows

Cash Flows from Operating Activities

Cash used in operations equaled $291,988 during the six months ended June 30, 2014, compared to net cash used in operations of $409,242 during the prior year period, which was a decrease in cash used in operations of $117,254, primarily due to lower cash used for administrative expenses.

Cash Flows from Investing Activities

The Company used net cash for investing activities of $19,871 during the six months ended June 30, 2014, compared to net cash used in investing activities of $0 during the prior year period. The $19,871 represented the cost of a site survey on the East Pearsall property.

Cash Flows from Financing Activities

The Company received cash from financing activities of $310,155 during the six months ended June 30, 2014, compared to net cash received from financing activities of $154,000during the prior year period, which was an increase from financing activities of $156,155.

Our Existence and Success Depend upon Future Financings/Going Concern Issues

The independent auditor's report on our December 31, 2013 financial statements states that our recurring losses raise substantial doubts about our ability to continue as a going concern.

At June 30, 2014, we had a working capital deficit of $14,305,112. We will need to raise additional capital during 2014 to fund general corporate working capital needs, which includes principal and accrued interest on current and past due notes payable and convertible bonds totaling $13,122,393. We will also need to raise funds to purchase additional property.

We anticipate that additional financings and loans will be required to sustain operations in the future. There can be no assurance that the Company will be successful in raising the required capital. Management is exploring various avenues to obtain such funding to develop our properties and pay existing debt including the issuance of new debt, issuance of securities, sales of properties and joint ventures. The Company also intends to continue to negotiate with holders of its current debt to convert such debt into equity or otherwise restructure such debt.

20

As we have no debt or equity funding commitments, we will need to rely upon best efforts financings. The Company is conducting ongoing discussions with potential lenders, investors and merger partners and acquisition candidates. There can be no assurance that the Company will be successful in raising the required capital in the private placement or from any other source.

The failure to raise sufficient capital through future debt or equity financings or otherwise may cause the Company to curtail operations, sell assets, or result in the failure of our business. We anticipate that our working capital requirements will continue to be funded through a combination of our future revenues, existing funds, loans and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business. We anticipate that additional financings and loans will be required to sustain operations in the future. In addition, we anticipate that for the foreseeable future such financings are likely to rely heavily on the issuance of equity. There can be no assurances that such equity issuances will be at dilution levels that will be highly dilutive to existing holders or our common stock or other stakeholders.

On August 4, 2014, the Board of Directors instructed ECCE Management to undertake a program to offer to settle open notes payable and other payables at a discounted rate. The Chairman of the Board agreed to fund such discounted obligations in 60 days, upon the successful renegotiation of a significant and material amount of such debt.

There can be no assurance that we will be successful in raising the required capital. The failure to raise sufficient capital through future debt or equity financings or otherwise will cause the Company to curtail operations, sell assets, or result in the failure of our business.

PURCHASE OF SIGNIFICANT EQUIPMENT

We do not intend to purchase any significant equipment during the next twelve months, outside of any items related to the drilling or completion of any future acquisitions.

OFF-BALANCE SHEET ARRANGEMENTS

As of June 30, 2014, we do not have any off balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Critical accounting policies

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses during the reported periods. The more critical accounting estimates include estimates related to revenue recognition and accounts receivable allowances. We also have other key accounting policies, which involve the use of estimates, judgments and assumptions that are significant to understanding our results, which are described in Note 1 to our audited consolidated financial statements for 2013 appearing in our Annual Report on Form 10-K for the year ended December 31, 2013.

Recent accounting pronouncements

The recent accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our unaudited condensed consolidated financial statements upon adoption.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable

Item 4. CONTROLS AND PROCEDURES

We maintain “disclosure controls and procedures” as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “exchange Act”), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer, and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. An evaluation was conducted under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as June 30, 2014. The evaluation of our disclosure controls and procedures included a review of the disclosure controls’ and procedures’ objectives, design, implementation and the effect of the controls and procedures on the information generated for use in this report. In the course of our evaluation, we sought to identify data errors, control problems or acts of fraud and to confirm the appropriate corrective actions, if any, including process improvement, were being undertaken. Based on that evaluation, our Chief Executive Officer, and our Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of June 30, 2014. We continue to require additional safeguards to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. We are in the process of evaluating and enhancing such controls and procedures, and expect additional controls and procedures to be implemented during the second and third quarters of this year.

There was no change in our internal control over financial reporting during the quarter ended June 30, 2014 and as of the date of this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

21

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

On January 14, 2014, ECCE sold 183,488 shares of common stock to several individuals for $0.1635 per share. 

On March 12, 2014, ECCE sold 1,735,310 shares of common stock to several individual for $0.144 per share.

On August 15, 2014, ECCE issued 106,250 shares of restricted common stock as compensation to an employee.

The shares were exempt from registration under Section 4(2) of the Securities Act of 1933 because they were issued in a privately negotiated transaction with persons with whom we had prior material business relations and were restricted from resale or other applicable exemptions from registration.

Item 6. Exhibits.

Exhibit Number	Description
31.1	Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

22

SIGNATURES

Pursuant to the requirements 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.

	EAGLE FORD OIL & GAS CORP.
Date: August 19, 2014	By:	/s/ Paul L. Williams Jr.
		Paul L. Williams Jr.
		Title: Chief Executive Officer
Date: August 19, 2014	By:	/s/ N. Wilson Thomas
		N. Wilson Thomas
		Title: Chief Financial Officer

23

EX-31.1

Eagle Ford Oil & Gas Corp. 10-Q

EXHIBIT 31.1

Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

CERTIFICATIONS

I, Paul L. Williams Jr., certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Eagle Ford Oil & Gas Corp.;
2.	Based on my knowledge, this annual report does not contain any untrue statement of 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 annual 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 and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) 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 know 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 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 function):
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 controls.
			Eagle Ford Oil & Gas Corp.
Date: August 19, 2014			By:	/s/ Paul L. Williams Jr.
				Paul L. Williams Jr.
				Title: Chief Executive Officer

EX-31.2

Eagle Ford Oil & Gas Corp. 10-Q

EXHIBIT 31.2

Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

CERTIFICATIONS

I, N. Wilson Thomas, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Eagle Ford Oil & Gas Corp.;
2.	Based on my knowledge, this annual report does not contain any untrue statement of 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 annual 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 and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) 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 know 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 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 function):
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 controls.
			EAGLE FORD OIL & GAS CORP.
Date: August 19, 2014			By:	/s/ N. Wilson Thomas
				N. Wilson Thomas
				Title: Chief Financial Officer

EX-32.1

Eagle Ford Oil & Gas Corp. 10-Q

EXHIBIT 32.1

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 the Quarterly Report of Eagle Ford Oil & Gas Corp. (the "Company") on Form 10-Q for the quarter ending June 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, Paul L. Williams Jr., Chief Executive Officer, and N. Wilson Thomas, Chief Financial Officer the Company, 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 the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

	EAGLE FORD OIL & GAS CORP.
Date: August 19, 2014	By:	/s/ Paul L. Williams Jr.
		Paul L. Williams Jr.
		Title: Chief Executive Officer
Date:  August 19, 2014	By:	/s/ N. Wilson Thomas
		N. Wilson Thomas
		Title: Chief Financial Officer

XML

SUBSEQUENT EVENTS (Details Narrative) (USD $)	12 Months Ended						0 Months Ended
	Dec. 31, 2012	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014 East Pearsall, Frio Co. TX [Member] acre	Dec. 31, 2013 East Pearsall, Frio Co. TX [Member]	Jul. 08, 2014 Subsequent event [Member] East Pearsall, Frio Co. TX [Member] acre	Jul. 08, 2014 Subsequent event [Member] East Pearsall, Frio Co. TX [Member] Medallion Oil Company LTD (MOC) [Member]	Aug. 31, 2014 Subsequent event [Member] Munsey [Member] Restricted stock [Member]	Aug. 04, 2014 Subsequent event [Member] Munsey [Member] Restricted stock [Member]
Number of shares available for grant									425,000
Number of shares reserved for future issuance								106,250
Working Interest Percentage				85.00%		85.00%
Ownership of properties, Acres				3,683		3,683
Investments in oil and gas properties		$ 6,484,307	$ 6,464,436	$ 6,484,307	$ 6,464,436		$ 7,000,000
Drilling funds to be obtained	$ 10,500,000						$ 10,500,000

XML

DEBT (Details 3) (Notes [Member], USD $)	6 Months Ended
	Jun. 30, 2014
Notes [Member]
Derivative liability, beginning
Derivative liability activity in period	44,848
Derivative liability, ending	$ 44,848

XML

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details 2) (Notes [Member], USD $)	Jun. 30, 2014
Derivative liability	$ 44,848
Fair Value, Inputs, Level 3 [Member]
Derivative liability	$ 44,848

XML

SHAREHOLDERS' EQUITY (Details) (Warrants [Member], USD $)	6 Months Ended
	Jun. 30, 2014
Warrants [Member]
Number Warrants
Balance Beginning	1,000,000
Expired	1,000,000
Weighted Average Exercise Price
Balance Beginning	$ 0.50
Expired	$ 0.50

XML

LIQUIDITY AND GOING CONCERN

6 Months Ended

Jun. 30, 2014

Liquidity And Going Concern

LIQUIDITY AND GOING CONCERN

3. LIQUIDITY AND GOING CONCERN

As shown in the accompanying unaudited condensed consolidated financial statements, for the six months ended June 30, 2014, Eagle Ford incurred a net loss attributable to common shareholders of $881,779. During the six months ended June 30, 2014, operating expenses included interest expenses and non cash expenses related to the derivative liability. At June 30, 2014 and December 31, 2013, the Company had a working capital deficit (current liabilities minus current assets) of $14,305,112 and $13,710,962, respectively, and held cash and cash equivalents of $2,098 and $3,802, respectively. These conditions raise substantial doubt as to our ability to continue as a going concern.

Management is working to improve its liquidity and its results from operations by raising additional capital and investing in the drilling of additional wells to improve future earnings and cash flow. Management is exploring various avenues to obtain such funding to develop our properties and pay existing debt including the issuance of new debt, issuance of securities, sales of properties and joint ventures. Management anticipates that additional financings and loans will be required to sustain operations in the future. There can be no assurance that the Company will be successful in raising the required capital.

The failure to raise sufficient capital through future debt or equity financings or otherwise may cause the Company to curtail operations, sell assets, or result in the failure of Eagle Ford’s business. The unaudited condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

XML

DEBT (Details Narrative) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended		6 Months Ended				3 Months Ended				3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2014 Promissory Note - Medallion Investment [Member]		Dec. 31, 2013 Promissory Note - Medallion Investment [Member]		Jun. 30, 2014 Convertible debentures [Member]	Jun. 30, 2013 Convertible debentures [Member]	Dec. 31, 2013 Convertible debentures [Member]	Jun. 20, 2011 Convertible debentures [Member]	Jun. 30, 2014 Convertible notes payable [Member]	Jun. 30, 2014 Convertible notes payable [Member]	Jul. 18, 2013 Convertible notes payable [Member]	Jun. 30, 2014 Convertible notes payable [Member] Lower Range [Member]	Jun. 30, 2014 Convertible notes payable [Member] Upper Range [Member]	Jun. 30, 2014 Chairman of the Board [Member]	Dec. 31, 2013 Chairman of the Board [Member]
Accrued Interest	$ 2,237,538		$ 2,237,538		$ 1,825,482						$ 241,055		$ 224,705							$ 261,502	$ 225,190
Interest expense to related parties	18,191	17,950	36,312	35,900							16,350	16,350
Interest expense to nonrelated parties			212,371	211,171
Common shares issued for exchange of debt					30,000
Common shares issued for exchange of debt, shares					81,081
Notes payable	8,742,709		8,742,709		8,808,709		7,000,000	[1]	7,000,000	[1]
Percentage of net revenue retained							6.55%
Percentage of total net revenue							63.75%
Reimbursement for any legal hours occured							10,000
Drilling funds to be obtained						10,500,000	21,500,000
Original issue discount																		3,000	6,000
Convertible note conversion rate, percentage of lowest trade value																	60.00%
Convertible Notes - interest rate														12.00%
Convertible Note - Shares for interest														3,000
Interest in oil and gas producing wells to secure debentures														1.50%
Convertible note conversion rate														$ 0.90			$ 0.39
Embedded derivative, Fair value															44,848	44,848	38,762
Fair Value Assumptions, Risk free interest rate																0.28%
Fair Value Assumptions, Dividend yield																0.00%
Fair Value Assumptions, Volatility factor																183.00%
Fair Value Assumptions, Expected life of the conversion feature																6 months
Projected future offering price															$ 0.25	$ 0.25
Loss on change in fair value of notes derivative liability	92,465		(6,086)												92,464	(6,086)
Amortization of debt discount on convertible notes			$ 35,975												$ 16,490	$ 35,975

[1] East Pearsall Medallion Oil Company LTD (MOC) invested $7,000,000 with ECCE to form MOC/Eagle Ford Oil & Gas East Pearsall, in order to purchase the East Pearsall tract from AMAC Energy, which created a Special Purpose Entity (SPE). Upon receipt of the funds, ECCE granted to MOC a lien and security interest on all the assets of the SPE, including the leases up to the investment and any accrued interest. The amount was to be paid in full within 12 months, and bears an interest rate of 10.00% APR. There will be an additional distribution of $7,000,000 to MOC in preferred production payments, which may be deferred until after receipt of the initial $7,000,000 and interest payments and then paid per agreed upon sliding scale within 18 months from the closing date or a mutually agreed date. MOC will retain 6.55% of the 63.75% Net Revenue Interest as an overriding royalty interest (ORRO) after all payments described previously are received by MOC. There may also be a sliding scale on these payments to be neg

XML

OIL AND GAS PROPERTIES (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Balance, beginning of period	$ 6,464,436
Additions	19,871
Balance, end of period	6,484,307
East Pearsall, Frio Co. TX [Member]
Balance, beginning of period	6,464,436
Additions	19,871
Balance, end of period	$ 6,484,307

XML

DEBT (Details) (USD $)	6 Months Ended
	Jun. 30, 2014		Dec. 31, 2013
Notes payable to related parties, current portion	$ 927,655		$ 897,500
Chairman of the Board [Member] | TDLOG Promissory Note, Due June 30, 2014 [Member]
Notes payable to related parties, current portion	817,500	[1]	817,500	[1]
Notes payable - interest rate	8.00%	[1]	8.00%	[1]
Notes payable due date	Jun. 30, 2014	[1]
Chairman of the Board [Member] | TDLOG Note 2, Due June 30, 2014 [Member]
Notes payable to related parties, current portion	10,000	[1]
Notes payable - interest rate	8.00%	[1]
Notes payable due date	Jun. 30, 2014	[1]
Chairman of the Board [Member] | TDLOG Note 3, Due June 30, 2014 [Member]
Notes payable to related parties, current portion	80,000	[1]	80,000	[1]
Notes payable - interest rate	8.00%	[1]	8.00%	[1]
Notes payable due date	Jun. 30, 2014	[1]
Munsey [Member] | Note [Member]
Notes payable to related parties, current portion	$ 20,155	[2]
Notes payable - interest rate	4.00%	[2]
Notes payable due date	Dec. 31, 2014	[2]

[1] TDLOG, LLC is controlled by Thomas E. Lipar, Chairman of the Board of Eagle Ford. Note due date was changed to June 30, 2014 from September 30, 2013. As of date, the notes are in default.

[2] Michael Munsey is Vice-President of Operations and Exploration of Eagle Ford.

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DEBT (Details 1) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2014		Dec. 31, 2013
Notes payable	$ 8,742,709		$ 8,808,709
Less: Unamortized debt discount portion			(3,218)
Total notes payable, net	8,742,709		8,805,491
Less: current portion of notes payable	(8,742,709)		(8,805,491)
Promissory Note Due March 31, 2009 [Member]
Maturity date	Mar. 31, 2009		Mar. 31, 2009
Notes payable	328,578	[1]	328,578	[1]
Notes payable - interest rate	12.00%	[1]	12.00%	[1]
Promissory Note Due January 1, 2012 [Member]
Maturity date	Jan. 01, 2012		Jan. 01, 2012
Notes payable	227,131	[2]	227,131	[2]
Notes payable - interest rate	5.00%	[2]	5.00%	[2]
Pipeline Mortgage Due September 30, 2009 [Member]
Maturity date	Sep. 30, 2009		Sep. 30, 2009
Notes payable	1,000,000	[3]	1,000,000	[3]
Notes payable - interest rate	8.00%	[3]	8.00%	[3]
Promissory Note Due April 1, 2011 [Member]
Maturity date	Apr. 01, 2011		Apr. 01, 2011
Notes payable	112,000	[2]	112,000	[2]
Notes payable - interest rate	6.00%	[2]	6.00%	[2]
Promissory Note Due October 15, 2010 [Member]
Maturity date	Oct. 15, 2010		Oct. 15, 2010
Notes payable	50,000	[4]	50,000	[4]
Notes payable - interest rate	5.00%	[4]	5.00%	[4]
Promissory Note Due July 1, 2010 [Member]
Maturity date	Jul. 01, 2010		Jul. 01, 2010
Notes payable	25,000	[5]	25,000	[5]
Notes payable - interest rate	8.00%	[5]	8.00%	[5]
Promissory Note - Medallion Investment [Member]
Notes payable	7,000,000	[6]	7,000,000	[6]
Notes payable - interest rate	10.00%	[6]	10.00%	[6]
Promissory Note Due July 14, 2014 [Member]
Maturity date	Jul. 14, 2014		Jul. 14, 2014
Notes payable			33,000	[7]
Notes payable - interest rate	12.00%	[7]	12.00%	[7]
Promissory Note Due July 14, 2014 [Member]
Maturity date	Jul. 14, 2014		Jul. 14, 2014
Notes payable			$ 33,000	[7]
Notes payable - interest rate	12.00%	[7]	12.00%	[7]

[1] Pursuant to the Reverse Acquisition, the Company assumed these notes payable totaling $328,578. All principal and interest became due September 30, 2009 for 12% notes. This note has not been repaid and is in default. No demand has been made for payment. Eagle Ford is continuing to accrue interest on this note at the stated rate.

[2] Pursuant to the Reverse Acquisition, the Company assumed two notes payable (i) $227,131 due on January 1, 2012 for 5% and (ii) $142,000 due on April 1, 2011 for 6% interest for drilling on the Wilson Field lease and for general corporate purposes. Neither of these notes has been repaid in cash and is in default. Eagle Ford is continuing to accrue interest on these notes at the stated rate. During the year ended December 31, 2013, the note holder agreed to convert $30,000 of note on issuance of 81,081 shares of common stock. On March 12, 2014, the note holder demanded payment on the outstanding portion of the note totaling $339,131 (see Note 8). The note holder has demanded payment, and we are currently in negotiations regarding a settlement

[3] The entire unpaid balance of principal and accrued interest was due on September 30, 2009. No payments have been made and this mortgage note is in default. There has been a judgment rendered against Eagle Ford in the amount of the mortgage (see Note 8). Eagle Ford is in discussions with the lender to restructure the mortgage. Eagle Ford is continuing to accrue interest on this note at the stated rate. In April, 2014, the note holder began the process to move the judgment to Texas courts.

[4] Pursuant to the Reverse Acquisition, the Company assumed these notes payable totaling $50,000 from two different note holders for drilling on the Wilson Field lease and for general corporate purposes. Neither of these notes has been repaid in cash and is in default. One party has demanded payment on a $25,000 note. Eagle Ford is continuing to accrue interest on these notes at the stated rate (see Note 8).

[5] Prior to the Reverse Acquisition, Eagle Ford borrowed $25,000 from a related party for general corporate purposes. The note is in default and due on demand. Eagle Ford continued to accrue interest on these notes at the stated rate. From July 20, 2011 this note holder is no longer a related party.

[6] East Pearsall Medallion Oil Company LTD (MOC) invested $7,000,000 with ECCE to form MOC/Eagle Ford Oil & Gas East Pearsall, in order to purchase the East Pearsall tract from AMAC Energy, which created a Special Purpose Entity (SPE). Upon receipt of the funds, ECCE granted to MOC a lien and security interest on all the assets of the SPE, including the leases up to the investment and any accrued interest. The amount was to be paid in full within 12 months, and bears an interest rate of 10.00% APR. There will be an additional distribution of $7,000,000 to MOC in preferred production payments, which may be deferred until after receipt of the initial $7,000,000 and interest payments and then paid per agreed upon sliding scale within 18 months from the closing date or a mutually agreed date. MOC will retain 6.55% of the 63.75% Net Revenue Interest as an overriding royalty interest (ORRO) after all payments described previously are received by MOC. There may also be a sliding scale on these payments to be neg

[7] As these notes has conversion features, please see the discussion in convertible notes (refer below for further details).

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited interim financial statements have been prepared by the Company in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission. The financial information has not been audited and should not be relied upon to the same extent as audited financial statements. Certain information and footnote disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. Accordingly, these unaudited interim financial statements should be read in conjunction with the Company’s financial statements and related notes contained in the Form 10-K for the year ended December 31, 2013.

In the opinion of management, the unaudited interim financial statements reflect all adjustments, including normal recurring adjustments, necessary for fair presentation of the interim periods presented. The results of operations for the six months ended June 30, 2014 are not necessarily indicative of the results of operations to be expected for the full year.

The Company’s unaudited condensed consolidated financial statements include all accounts of Eagle Ford (ECCE) and its subsidiaries: Eagle Ford – East Pearsall, Sandstone LLC and Eagle Ford Operating. All significant inter-company balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with US GAAP 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 financial statements and that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Eagle Ford's unaudited condensed consolidated financial statements are based on a number of significant estimates, including oil and gas reserve quantities which are the basis for the calculation of depreciation, depletion and impairment of oil and gas properties; timing and costs associated with its asset retirement obligations; estimates for the realization of goodwill; and estimates of the value of derivative financial instruments.

Reclassifications

Certain reclassifications have been made to amounts in prior periods to conform to the current period presentation. All reclassifications have been applied consistently to the periods presented.

Cash and Cash Equivalents

Eagle Ford considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents.

Oil and Gas Properties, Full Cost Method

Eagle Ford uses the full cost method of accounting for oil and gas producing activities. Costs to acquire mineral interests in oil and gas properties, to drill and equip exploratory wells used to find proved reserves, and to drill and equip development wells, including directly related overhead costs and related asset retirement costs, are capitalized. Under this method, all costs, including internal costs directly related to acquisition, exploration and development activities are capitalized as oil and gas property costs. Properties not subject to amortization consist of exploration and development costs which are evaluated on a property-by-property basis. Amortization of these unproved property costs begins when the properties become proved or their values become impaired. Eagle Ford assesses the realizability of unproved properties, if any, on at least an annual basis or when there has been an indication that impairment in value may have occurred. Impairment of unproved properties is assessed based on management's intention with regard to future exploration and development of individually significant properties and the ability of Eagle Ford to obtain funds to finance such exploration and development. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is added to the capitalized costs to be amortized.

Costs of proved oil and gas properties, including future development costs, if any, are amortized using the units of production method over the estimated proved reserves.

In applying the full cost method, Eagle Ford performs an impairment test (ceiling test) at each reporting date, whereby the carrying value of property and equipment is compared to the “estimated present value,” of its proved reserves discounted at a 10-percent interest rate of future net revenues, based on current economic and operating conditions, plus the cost of properties not being amortized, plus the lower of cost or fair market value of unproved properties included in costs being amortized, less the income tax effects related to book and tax basis differences of the properties. If capitalized costs exceed this limit, the excess is charged as an impairment expense. The Company assessed the realizability of its oil and gas properties and determined that no impairment of its oil and gas properties was necessary as of June 30, 2014.

Depletion

Depletion is provided using the unit-of-production method based upon estimates of proved oil and natural gas reserves with oil and natural gas production being converted to a common unit of measure based upon their relative energy content. Investments in unproved properties and major development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment (ceiling test) indicate that the properties are impaired, the amount of the impairment is deducted from the capitalized costs to be amortized. Once the assessment of unproved properties is complete and when major development projects are evaluated, the costs previously excluded from amortization are transferred to the full cost pool and amortization begins. The amortizable base includes estimated future development costs and where significant, dismantlement, restoration and abandonment costs, net of estimated salvage value.

In arriving at rates under the unit-of-production method, the quantities of recoverable oil and natural gas reserves are established based on estimates made by the Company’s geologists and engineers which require significant judgment, as does the projection of future production volumes and levels of future costs, including future development costs. In addition, considerable judgment is necessary in determining when unproved properties become impaired and in determining the existence of proved reserves once a well has been drilled. All of these judgments may have significant impact on the calculation of depletion expense.

Asset Retirement Obligations

The Company follows the provisions of the Accounting Standards Codification (“ASC”) 410 - Asset Retirement and Environmental Obligations. The fair value of an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The present value of the estimated asset retirement costs is capitalized as part of the carrying amount of the long-lived asset and is subject to amortization. The Company’s asset retirement obligations relate to the abandonment of oil and gas producing facilities. The amounts recognized are based upon numerous estimates and assumptions, including future retirement costs, future recoverable quantities of oil and gas, future inflation rates and the credit-adjusted risk-free interest rate.

The following table describes changes in our asset retirement obligation during the six months ended June 30, 2014 and the year ended December 31, 2013.

	Six Months Ended June 30, 2014		For the Year Ended December 31, 2013
ARO liability at beginning of period, current and noncurrent	$	24,802	$	24,802
Liabilities incurred from  acquisitions		—		—
Accretion		—		—
ARO liability at end of period, current and noncurrent	$	24,802	$	24,802

Revenue and Cost Recognition

Eagle Ford uses the sales method of accounting for natural gas and oil revenues. Under this method, revenues are recognized based on the actual volumes of gas and oil sold to purchasers. The volume sold may differ from the volumes to which Eagle Ford is entitled based on our interest in the properties. Costs associated with production are expensed in the period incurred.

Loss per Share

Pursuant to FASB ASC Topic 260, Earnings per Share, basic net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average number of common and common equivalent shares outstanding during the period. Common share equivalents included in the diluted computation represent shares issuable upon assumed exercise of stock options and warrants using the treasury stock and “if converted” method and conversion of preferred shares. For periods in which net losses are incurred, weighted average shares outstanding is the same for basic and diluted loss per share calculations, as the inclusion of common share equivalents would have an anti-dilutive effect.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are recorded at invoiced amount and generally do not bear interest. An allowance for doubtful accounts is established, as necessary, based on past experience and other factors which, in management's judgment, deserve current recognition in estimating bad debts. Such factors include growth and composition of accounts receivable, the relationship of the allowance for doubtful accounts to accounts receivable and current economic conditions. The determination of the collectability of amounts due from customer accounts requires the Company to make judgments regarding future events and trends. Allowances for doubtful accounts are determined based on assessing the Company’s portfolio on an individual customer and on an overall basis. This process consists of a review of historical collection experience, current aging status of the customer accounts, and the financial condition of Eagle Ford’s customers. Based on a review of these factors, the Company establishes or adjusts the allowance for specific customers and the accounts receivable portfolio as a whole. At June 30, 2014 and December 31, 2013, an allowance for doubtful accounts was not considered necessary as all accounts receivable were deemed collectible.

Concentration of Credit Risk

Financial instruments that potentially subject Eagle Ford to concentration of credit risk consist of cash and accounts receivable. At June 30, 2014, cash balances in interest-bearing accounts are zero.

Sales to a single customer comprised 100% of Eagle Ford's total oil and gas revenues for each of the six months ended for both June 30, 2014 and 2013. At June 30, 2014 and December 31, 2013, Eagle Ford's accounts receivable from its primary customer was $16,569 and $19,084, respectively. Eagle Ford believes that, in the event that its primary customer is unable or unwilling to continue to purchase Eagle Ford's production, there are a substantial number of alternative buyers for its production at comparable prices.

Property and Equipment, other than Oil and Gas Properties

Property and equipment are stated at cost. Additions of new equipment and major renewals and replacements of existing equipment are capitalized. Repairs and minor replacements are charged to operations as incurred. Cost and accumulated depreciation and amortization are removed from the accounts when assets are sold or retired, and the resulting gains or losses are included in operations.

Depreciation of property and equipment is provided using the straight-line method applied to the expected useful lives of the assets:

	Estimated useful lives
Pipeline transmission properties	20 years
Machinery and equipment	3 – 7 years
Office furniture, fixtures and equipment	3 – 5 years

Income Taxes

The Company uses the liability method of accounting for income taxes. Under this method, it records deferred income taxes based on temporary differences between the financial reporting and tax bases of assets and liabilities and uses enacted tax rates and laws that the Company expects will be in effect when it recovers those assets or settles those liabilities, as the case may be, to measure those taxes. The Company reviews deferred tax assets for a valuation allowance based upon whether it is more likely than not that the deferred tax asset will be fully realized.

The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. As of June 30, 2014, the Company did not identify any uncertain tax positions.

The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the income tax expense (benefit) line item in the statement of operations.

Share-Based Compensation

The Company follows ASC 718 - Compensation - Stock Compensation under which the Company estimates the fair value of each stock option award at the grant date by using the Black-Scholes option pricing model and common shares based on the last quoted market price of the Company’s common stock on the date of the share grant. The fair value determined represents the cost for the award and is recognized over the vesting period during which an employee is required to provide service in exchange for the award. As share-based compensation expense is recognized based on awards ultimately expected to vest, the Company reduces the expense for estimated forfeitures based on historical forfeiture rates, if available. Previously recognized compensation costs may be adjusted to reflect the actual forfeiture rate for the entire award at the end of the vesting period. Excess tax benefits, as defined in ASC 718, if any, are recognized as an addition to paid-in capital.

Financial instruments

The accounting standards regarding fair value of financial instruments and related fair value measurements define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures.

The three levels are defined as follows:

·  Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

· Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

· Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that the warrants outstanding as of the date of these financial statements include an exercise price “reset” adjustment that qualifies as derivative financial instruments under the provisions of ASC 815-40, Derivatives and Hedging – Contracts in an Entity’s Own Stock.” See Note 6 for discussion of the impact the derivative financial instruments had on the Company’s unaudited condensed consolidated financial statements and results of operations.

Significant Level 3 inputs used to calculate the fair value of the warrants and derivative notes include the stock price on the valuation date, expected volatility, risk-free interest rate and management’s assumptions regarding the likelihood of a repricing of these warrants pursuant to the anti-dilution provision. See Note 6 for further discussion.

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2014. There were no transfers of financial assets between levels during the six months ended June 30, 2014.

	Carrying Value at June 30, 2014		Fair Value Measurement at June 30, 2014
			Level 1		Level 2		Level 3
Derivative liability – Warrants	$	—	$	—	$	—	$	—
Derivative liability – Notes	$	44,848	$	—	$	—	$	44,848

The Company did not identify any other assets and liabilities that are required to be presented on the unaudited condensed consolidated balance sheet at fair value.

Contingencies

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a loss contingency indicates that it is probable that a loss has been incurred and the amount of the liability can be reasonably estimated, then the estimated liability is accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. The Company expenses legal costs associated with contingencies as incurred.

Environmental Expenditures

The Company is subject to extensive federal, state and local environmental laws and regulations. These laws regulate the discharge of materials into the environment and may require the Company to remove or mitigate the environmental effects of the disposal or release of petroleum or chemical substances at various sites. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed.

Liabilities for expenditures of a non-capital nature are recorded when environmental assessment and/or remediation is probable, and the costs can be reasonably estimated. Such liabilities are generally undiscounted unless the timing of cash payments for the liability or component is fixed or reliably determinable. No such liabilities existed or were recorded at June 30, 2014 and December 31, 2013.

Recent Accounting Pronouncements

Eagle Ford does not expect the adoption of any recently issued accounting pronouncements will have a significant impact on its results of operations, financial position or cash flow.

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DEBT (Details 2) (USD $)	Jun. 30, 2014		Dec. 31, 2013
Convertible debentures and notes payable	$ 611,000		$ 545,000
Less: Unamortized debt discount on convertible notes payable	(2,784)		545,000
Convertible debentures and notes payable - net	608,218
Less: current portion of notes payable	(608,216)		(545,000)
Convertible debentures [Member]
Convertible debentures and notes payable	545,000	[1]	545,000	[1]
Convertible notes payable [Member]
Convertible debentures and notes payable	$ 66,000	[2]

[1] On June 20, 2011, the Company assumed the liability for $545,000 of Secured Convertible Debentures as a result of the Reverse Acquisition. The Secured Convertible Debentures matured on July 26, 2011, and earned interest at a rate of 12%, payable quarterly in 3,000 shares of common stock for each debenture. The Company is in default. There have been no shares issued for the interest payable as of June 30, 2014, nor have the Debentures been repaid. The interest for these debentures is accrued at the 12% rate and is included in accrued expenses. The Debentures are secured by a 1.5% interest in three oil and gas producing wells that are in a 2,400 acre lease in Live Oak County, Texas. The Debentures are convertible at the holders' option into Eagle Ford restricted common stock at a fixed conversion rate of $0.90 per common share. The Debentures may also be satisfied by transferring the lease to the investors. Eagle Ford is in negotiation with the debenture holders and no agreement has been made as of the date. A

[2] On July 18, 2013, ECCE issued two Notes Payable of $33,000 each, for a combined total of $66,000 to two individuals. The notes contained a $3,000 or $6,000 total original issue discount. The notes are due on July 14, 2014, and if they were repaid within ninety days from date of issue, then no interest would accrue. If they were paid after 90 days, then they accrued interest at a rate of twelve percent per annum, due on that date. The notes could be converted into common stock after 180 days, which occurred on January 14, 2014 The Conversion Price is the lesser of $0.39 per share or 60% of the lowest trade in the 25 trading days previous to the conversion. The Note accrues interest at a rate of 12% per annum and matured on July 13, 2014. The notes were not paid or converted and are now in default.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Jun. 30, 2014	Dec. 31, 2013
CURRENT ASSETS
Cash and cash equivalents	$ 2,098	$ 3,802
Accounts receivable - production	16,569	19,084
Prepaid expenses and other current assets	1,781	13,625
Total current assets	20,448	36,511
Oil and gas properties, using full cost accounting
Costs not subject to amortization	6,484,307	6,464,436
Pipeline transmission properties	30,839	30,839
Less: accumulated depreciation and depletion	(15,000)	(12,498)
Total property and equipment, net	6,500,146	6,482,777
OTHER ASSETS
Deposits	125,000	150,000
TOTAL ASSETS	6,645,594	6,669,288
CURRENT LIABILITIES
Accounts payable - trade	1,092,040	978,353
Accrued expenses	2,648,588	2,202,895
Accrued interest to related parties	261,502	225,190
Notes payable, current portion	8,742,709	8,805,491
Notes payable to related parties, current portion	927,655	897,500
Convertible debentures	608,216	545,000
Derivative liability - notes, current portions	44,848
Derivative liability - warrants, current portions		93,044
Total current liabilities	14,325,558	13,747,473
LONG-TERM LIABILITIES
Asset retirement obligations	24,802	24,802
Total long term liabilities	24,802	24,802
TOTAL LIABILITIES	14,350,360	13,772,275
Commitments and contingencies
SHAREHOLDERS' DEFICIT
Preferred stock, undesignated, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding
Common stock, $0.001 par value, 75,000,000 shares authorized, 42,021,745 and 40,102,947 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively	42,022	40,103
Additional paid-in-capital	7,018,546	6,740,465
Accumulated deficit	(14,765,334)	(13,883,555)
Total shareholders' deficit	(7,704,766)	(7,102,987)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$ 6,645,594	$ 6,669,288

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:
Net loss	$ (881,779)	$ (1,054,821)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation		108,000
Amortization of debt discount on convertible notes	35,975
Depreciation and depletion	2,502	2,498
Unrealized gain on change in derivative value	(86,958)	(18,861)
Amortization of original discount on notes	3,220
Changes in operating assets and liabilities:
Accounts receivable - production	2,515	3,448
Prepaid expenses and other current assets	36,844	(15,551)
Accounts payable-trade	113,688	56,316
Accrued expenses	482,005	509,729
Net cash used in operating activities	(291,988)	(409,242)
Cash flows from investing activities:
Purchase of oil and gas properties	(19,871)
Net cash used in investing activities	(19,871)
Cash flows from financing activities:
Proceeds from issuance of notes payable to related parties	30,155
Proceeds from issuance of short term debt		50,000
Proceeds from sale of common stock	280,000	104,000
Net cash provided by financing activities	310,155	154,000
Net decrease in cash and cash equivalents	(1,704)	(255,242)
Cash and cash equivalents, at beginning of period	3,802	259,138
Cash and cash equivalents, at end of period	2,098	3,896
Non-cash investing and financial activities:
Common shares issued to settle notes payable		30,000
Debt discount on convertible notes	38,762
Notes payable reclass to convertible notes	$ 66,000

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DERIVATIVE LIABILITY - WARRANTS (Details) (Warrants [Member], USD $)	6 Months Ended
	Jun. 30, 2014
Warrants [Member]
Derivative liability, beginning	$ 93,044
Decrease in Fair value	93,044
Derivative liability, ending

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)			6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014 Oil and Gas Revenue [Member] Customer Concentration Risk [Member]	Jun. 30, 2013 Oil and Gas Revenue [Member] Customer Concentration Risk [Member]	Jun. 30, 2014 Accounts Receivable [Member] Customer Concentration Risk [Member]	Dec. 31, 2013 Accounts Receivable [Member] Customer Concentration Risk [Member]
Concentration - percentage of sales			100.00%	100.00%
Accounts receivable	$ 16,569	$ 19,084			$ 16,569	$ 19,084

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SHAREHOLDERS' EQUITY (Details Narrative) (USD $)	0 Months Ended
	Mar. 12, 2014	Jan. 14, 2014	Jun. 30, 2014	Dec. 31, 2013
Common stock, shares issued			42,021,745	40,102,947
Common stock, shares outstanding			42,021,745	40,102,947
Common shares issued for cash, shares	1,735,310	183,488
Price per share of stock sold	$ 0.144	$ 0.1635

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details 1)	6 Months Ended
	Jun. 30, 2014
Pipeline transmission properties [Member]
Estimated Useful Life	20 years
Machinery and Equipment [Member] | Lower Range [Member]
Estimated Useful Life	3 years
Machinery and Equipment [Member] | Upper Range [Member]
Estimated Useful Life	7 years
Office Furniture, Fixtures and Equipment [Member] | Lower Range [Member]
Estimated Useful Life	3 years
Office Furniture, Fixtures and Equipment [Member] | Upper Range [Member]
Estimated Useful Life	5 years

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ORGANIZATION

6 Months Ended

Jun. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION

1. ORGANIZATION

Eagle Ford Oil & Gas Corp. (“Eagle Ford”, “ECCE”, “we”, “us”, “our” or the “Company”) is an independent oil and gas company organized in Nevada actively engaged in oil and gas development, exploration and production with properties and operational focus in the Texas and Louisiana-Gulf Coast Region. Eagle Ford’s strategy is to grow its asset base by purchasing or investing in oil and gas drilling projects in the Texas and Louisiana regions.

Eagle Ford continues to be a “smaller reporting company,” as defined under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	42,021,745	40,102,947
Common stock, shares outstanding	42,021,745	40,102,947

XML

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Schedule of Asset Retirement Obligations

The following table describes changes in our asset retirement obligation during the six months ended June 30, 2014 and the year ended December 31, 2013.

	Six Months Ended June 30, 2014		For the Year Ended December 31, 2013
ARO liability at beginning of period, current and noncurrent	$	24,802	$	24,802
Liabilities incurred from  acquisitions		—		—
Accretion		—		—
ARO liability at end of period, current and noncurrent	$	24,802	$	24,802

Schedule of Estimated Useful Lives for Depreciation

Depreciation of property and equipment is provided using the straight-line method applied to the expected useful lives of the assets:

	Estimated useful lives
Pipeline transmission properties	20 years
Machinery and equipment	3 – 7 years
Office furniture, fixtures and equipment	3 – 5 years

Schedule of fair value hierarchy financial assets and liabilities at fair value on a recurring basis

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2014. There were no transfers of financial assets between levels during the six months ended June 30, 2014.

	Carrying Value at June 30, 2014		Fair Value Measurement at June 30, 2014
			Level 1		Level 2		Level 3
Derivative liability – Warrants	$	—	$	—	$	—	$	—
Derivative liability – Notes	$	44,848	$	—	$	—	$	44,848

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Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 19, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	Eagle Ford Oil & Gas Corp
Entity Central Index Key	0000847416
Document Type	10-Q
Document Period End Date	Jun. 30, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		42,127,928
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2014
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes

XML

OIL AND GAS PROPERTIES (Tables)

6 Months Ended

Jun. 30, 2014

Extractive Industries [Abstract]

Schedule of Oil and Gas Properties

The following table sets forth the Company’s costs incurred in oil and gas property acquisition, exploration and development activities for the six months ended June 30, 2014. All of the Company’s oil and gas properties are located in the United States.

Well Description	December 31, 2013		Additions		Impairment/ Dispositions		June 30, 2014
East Pearsall, Frio Co. TX	$	6,464,436	$	19,871	$	—	$	6,484,307
	$	6,464,436	$	19,871	$	—	$	6,484,307

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]
REVENUE	$ 556	$ 1,565	$ 1,716	$ 2,922
OPERATING EXPENSES
Lease operating expenses	444	3,597	4,231	6,369
General and administrative expenses	191,302	347,223	430,805	577,019
Depreciation, depletion and accretion	1,252	1,250	2,502	2,498
Total operating expenses	192,998	352,070	437,538	585,886
Net operating loss	(192,442)	(350,505)	(435,822)	(582,964)
OTHER INCOME (EXPENSES)
Interest expense	(243,654)	(245,113)	(493,720)	(490,718)
Amortization of debt discount on convertible notes	(22,697)		(39,195)
Gain (loss) on change in fair value of notes derivative liability	92,465		(6,086)
Gain on change in fair value of warrant derivative liability	11,525	70,397	93,044	18,861
Total other income (expenses)	(162,361)	(174,716)	(445,957)	(471,857)
Net loss	$ (354,803)	$ (525,221)	$ (881,779)	$ (1,054,821)
Loss per common share (basic and diluted) (in dollars per share)	$ (0.01)	$ (0.01)	$ (0.02)	$ (0.03)
Weighted average common shares outstanding (basic and diluted) (in shares)	42,021,445	38,948,060	41,337,152	38,902,803

XML

DERIVATIVE LIABILITY- WARRANTS

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE LIABILITY- WARRANTS

6. DERIVATIVE LIABILITY- WARRANTS

In connection with the Reverse Acquisition, the Company assumed 1,000,000 warrants which were issued by Eagle Ford prior to the Reverse Acquisition in connection with the conversion of Eagle Ford’s convertible preferred shares, which also occurred prior to the Reverse Acquisition. The Company determined that the warrants contained provisions that protect the holders from declines in the Company’s stock price that could result in modification of the exercise price under the warrant based on a variable that is not an input to the fair value of a “fixed-for-fixed” option as defined under ASC 815 – 40. As a result, these warrants were not indexed to the Company’s own stock. The fair value of these warrants was recognized as derivative warrant instruments and will be measured at fair value at each reporting period. As of June 20, 2011, the Company determined that, using a lattice model, the fair value of the warrants was $438,680, which had been reduced to $93,044 by December 31, 2013. As of June 30, 2014, the warrants expired and determined the fair value to be $-0-. The decrease in fair value has been recognized as an unrealized gain on the change in derivative value of $93,044 and $18,861 for the six months ended June 30, 2014 and 2013, respectively and the decrease in fair value has been recognized as an unrealized gain on the change in derivative value of $11,525 and $70,397 for the three months ended June 30, 2014 and 2013, respectively.

Activity for the derivative warrant during the six months ended June 30, 2014 was:

	December 31, 2013		Activity During the Period		Decrease in Fair Value		June 30, 2014
Derivative warrant instruments	$	93,044	$	—	$	93,044	$	—
Total	$	93,044	$	—	$	93,044	$	—

XML

DEBT

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

DEBT

5. DEBT

Notes Payable – Related Parties

	June 30, 2014		December 31, 2013
Promissory note to TDLOG – 8% interest; due June 30, 2014; unsecured (1)	$	817,500	$	817,500
Promissory note to Michael Munsey – 4% interest; due December 31, 2014; unsecured (2)		20,155		—
Promissory note to TDLOG – 8% interest; due June 30, 2014; unsecured (1)		10,000		—
Promissory note to TDLOG – 8% interest; due June 30, 2014; unsecured (1) Total:		80,000		80,000
Notes Payable – Related Parties	$	927,655	$	897,500

(1)	TDLOG, LLC is controlled by Thomas E. Lipar, Chairman of the Board of Eagle Ford.  Note due date was changed to June 30, 2014 from September 30, 2013. As of date, the notes are in default.
(2)	Michael Munsey is Vice-President of Operations and Exploration of Eagle Ford.

Accrued interest expenses on the above notes to the related party as of June 30, 2014 and December 31, 2013 is $261,502 and $225,190, respectively.

Interest expenses to related party for the three months ended June 30, 2014 and 2013 is $18,191 and $17,950, respectively.

Interest expenses to related party for the six months ended June 30, 2014 and 2013 is $36,312 and $35,900, respectively.

Notes Payable – Non-Related Parties

	June 30, 2014			December 31, 2013
Promissory note – 12% interest; due March 31, 2009; not secured (1)	$	328,578		$	328,578
Promissory note – 5% interest; due January 1, 2012; not secured (2)		227,131			227,131
Pipeline mortgage – 8% interest; due September 30, 2009; secured by pipeline (3)		1,000,000			1,000,000
Promissory notes – 6% interest; due April 1, 2011; not secured (2)		112,000			112,000
Promissory notes – 5% interest; due October 15, 2010; not secured (4)		50,000			50,000
Promissory note to a former Director – 8% interest; due July 1, 2010; unsecured (5)		25,000			25,000
Promissory note – Medallion Investment – 10% interest (6)		7,000,000			7,000,000
Promissory note – 12% interest with $3,000 OID; due July 14, 2014 (7)		—			33,000
Promissory note – 12% interest with $3,000 OID; due July 14, 2014 (7)		—			33,000
Total notes payable		8,742,709			8,808,709
Less: Unamortize debt discount portion		—			(3,218	)
Total notes payable, net		8,742,709			8,805,491
Less: current portion of notes payable		(8,742,709	)		(8,805,491	)
Total notes payable – long term	$	—		$	—

Accrued and unpaid interest for notes payable to non-related parties at June 30, 2014 and December 31, 2013 was $2,237,538 and $1,825,482 respectively, and is included in accrued expenses on the accompanying unaudited condensed consolidated balance sheets.

Interest expenses to non-related party for the six months ended June 30, 2014 and 2013 is $212,371 and $211,171, respectively and Interest expenses to non-related party for the three months ended June 30, 2014 and 2013 is $xxx and $xxx, respectively.

(1)	Pursuant to the Reverse Acquisition, the Company assumed these notes payable totaling $328,578. All principal and interest became due September 30, 2009 for 12% notes. This note has not been repaid and is in default. No demand has been made for payment. Eagle Ford is continuing to accrue interest on this note at the stated rate.
(2)	Pursuant to the Reverse Acquisition, the Company assumed two notes payable (i) $227,131 due on January 1, 2012 for 5% and (ii) $142,000 due on April 1, 2011 for 6% interest for drilling on the Wilson Field lease and for general corporate purposes. Neither of these notes has been repaid in cash and is in default. Eagle Ford is continuing to accrue interest on these notes at the stated rate.  During the year ended December 31, 2013, the note holder agreed to convert $30,000 of note on issuance of 81,081 shares of common stock. On March 12, 2014, the note holder demanded payment on the outstanding portion of the note totaling $339,131 (see Note 8).  The note holder has demanded payment, and we are currently in negotiations regarding a settlement.
(3)	The entire unpaid balance of principal and accrued interest was due on September 30, 2009. No payments have been made and this mortgage note is in default. There has been a judgment rendered against Eagle Ford in the amount of the mortgage (see Note 8). Eagle Ford is in discussions with the lender to restructure the mortgage. Eagle Ford is continuing to accrue interest on this note at the stated rate.  In April, 2014, the note holder began the process to move the judgment to Texas courts.
(4)	Pursuant to the Reverse Acquisition, the Company assumed these notes payable totaling $50,000 from two different note holders for drilling on the Wilson Field lease and for general corporate purposes. Neither of these notes has been repaid in cash and is in default. One party has demanded payment on a $25,000 note. Eagle Ford is continuing to accrue interest on these notes at the stated rate (see Note 8).
(5)	Prior to the Reverse Acquisition, Eagle Ford borrowed $25,000 from a related party for general corporate purposes. The note is in default and due on demand. Eagle Ford continued to accrue interest on these notes at the stated rate. From July 20, 2011 this note holder is no longer a related party.

(6)

East Pearsall Medallion Oil Company LTD (MOC) invested $7,000,000 with ECCE to form MOC/Eagle Ford Oil & Gas East Pearsall, in order to purchase the East Pearsall tract from AMAC Energy, which created a Special Purpose Entity (SPE). Upon receipt of the funds, ECCE granted to MOC a lien and security interest on all the assets of the SPE, including the leases up to the investment and any accrued interest. The amount was to be paid in full within 12 months, and bears an interest rate of 10.00% APR. There will be an additional distribution of $7,000,000 to MOC in preferred production payments, which may be deferred until after receipt of the initial $7,000,000 and interest payments and then paid per agreed upon sliding scale within 18 months from the closing date or a mutually agreed date. MOC will retain 6.55% of the 63.75% Net Revenue Interest as an overriding royalty interest (ORRO) after all payments described previously are received by MOC. There may also be a sliding scale on these payments to be negotiated on a reasonable basis to enable ECCE to retain reasonable cash proceeds to enable it to conduct its business with respect to drilling and development of the project. The overriding royalty interest shall be free and clear of all costs except production taxes. The ORRO will apply to any renewals, extensions, etc. of existing leases and to any new leases acquired within the Area of Mutual Interest. ECCE must satisfy all drilling obligations or otherwise default to the terms included in the final transaction documents. MOC shall have all rights under the SPE documents, including but not limited to the right to foreclose on its lien and security interest and obtain all rights to the Leases. ECCE agreed to reimburse MOC for any legal hours it occurred, up to $10,000. Included in the AMAC investment agreement, ECCE agrees to cause the drilling of at least one oil and gas well on or prior to 12 months from the date hereof and obtain drilling funds of at least $21,500,000 with a satisfactory drilling partner within three months of the date hereof, or December 4, 2012. On October 22, 2012, MOC agreed to modify the agreement with ECCE relating to the issue relating to the date for raising drilling funds. ECCE needed to raise $10,500,000 for drilling funds by December 4, 2012, instead of the $21,500,000 in the original agreement. As of the date of this report, ECCE has failed to raise the necessary drilling funds. This caused the company to be in default, and as a result, the note has been reclassified from a long term to short term liability ECCE has attempted to raise funds in order to develop this field since the time of purchase. With the leases being reassigned to AMAC Energy, the entity of EFOGC – East Pearsall is currently “winding down” and will be closed as an operating entity in the state of Texas. With this winding down, ECCE will no longer have any liability relative to EFOGC – East Pearsall and the East Pearsall leases. ECCE has attempted to raise funds in order to develop this field since the time of purchase and has been unsuccessful. The closing of the East Pearsall subsidiary is currently being negotiated with the attorneys for MOC. We continue to have discussions on the wording of the closing documents, and the final will most likely, not be available until after the date of filing. At this time ECCE has not been able to negotiate a closing of the subsidiary with MOC.

(7)

As these notes has conversion features, please see the discussion in convertible notes (refer below for further details).

Convertible Debentures and Notes Payable

	June 30, 2014			December 31, 2013
Convertible debentures (1)	$	545,000		$	545,000
Convertible notes payable (2)		66,000			—
Total convertible debentures and notes payable		611,000			545,000
Unamortized debt discount on convertible notes payable		(2,784	)		—
Total: Convertible debentures and notes payable – net		608,218			545,000
Less: current portion of convertible debentures and notes payable		(608,216	)		(545,000	)
Total convertible debentures and notes payable – long term	$	—		$	—

(1) On June 20, 2011, the Company assumed the liability for $545,000 of Secured Convertible Debentures as a result of the Reverse Acquisition. The Secured Convertible Debentures matured on July 26, 2011, and earned interest at a rate of 12%, payable quarterly in 3,000 shares of common stock for each debenture. The Company is in default. There have been no shares issued for the interest payable as of June 30, 2014, nor have the Debentures been repaid. The interest for these debentures is accrued at the 12% rate and is included in accrued expenses. The Debentures are secured by a 1.5% interest in three oil and gas producing wells that are in a 2,400 acre lease in Live Oak County, Texas. The Debentures are convertible at the holders’ option into Eagle Ford restricted common stock at a fixed conversion rate of $0.90 per common share. The Debentures may also be satisfied by transferring the lease to the investors. Eagle Ford is in negotiation with the debenture holders and no agreement has been made as of the date. Accrued and unpaid interest was $241,055and $224,705 at June 30, 2014 and December 31, 2013, respectively related to the convertible debentures. Interest expenses on convertible debenture for the three months ended June 30, 2014 and 2013 is $16,350 for each quarter.

(2) On July 18, 2013, ECCE issued two Notes Payable of $33,000 each, for a combined total of $66,000 to two individuals. The notes contained a $3,000 or $6,000 total original issue discount. The notes are due on July 14, 2014, and if they were repaid within ninety days from date of issue, then no interest would accrue. If they were paid after 90 days, then they accrued interest at a rate of twelve percent per annum, due on that date. The notes could be converted into common stock after 180 days, which occurred on January 14, 2014. The Conversion Price is the lesser of $0.39 per share or 60% of the lowest trade in the 25 trading days previous to the conversion. The Note accrues interest at a rate of 12% per annum and matured on July 13, 2014.  The notes were not paid or converted and are now in default.

The Company identified embedded derivatives related to the Convertible Note entered into on January 13, 2014.  These embedded derivatives included certain conversion features.  The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date.  At the inception of the Convertible Note, the Company determined a fair value of $38,762 of the embedded derivative.  The fair value of the embedded derivative was determined using intrinsic value.

The initial fair value of the embedded debt derivative of $38,762 was allocated as a debt discount and derivatives liability.

The fair value of the described embedded derivative of $44,848 at June 30, 2014 was determined using the Black-Scholes Model with the following assumptions:

(1) risk free interest rate of	0.28%;
(2) dividend yield of	0%;
(3) volatility factor of	183%;
(4) an expected life of the conversion feature of	6 months, and
(5) estimated fair value of the company’s common stock of	$0.25 per share.

At June 30, 2014, the Company adjusted the recorded fair value of the derivative liability to market resulting in non-cash, non-operating loss of $92,464 and ($6,086) for the three and six months ended June 30, 2014.

During the three and six months ended June 30, 2014, the Company amortized $16,490 and $35,975 of debt discount to current period operations as financing expense.

Activity for the derivative liability- convertible note during the six months ended June 30, 2014 was:

	December 31, 2013		Activity During the Period		Decrease in Fair Value		June 30, 2014
Derivative convertible notes	$	—	$	44,848	$	—	$	44,848
Total	$	—	$	44,848	$	—	$	44,848

XML

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Abstract]
ARO liability at beginning of period, current and noncurrent	$ 24,802	$ 24,802	$ 24,802
ARO liability at end of period, current and noncurrent	$ 24,802	$ 24,802	$ 24,802

XML

DEBT (Tables)

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

Schedule of related party notes payable

Notes Payable – Related Parties

	June 30, 2014		December 31, 2013
Promissory note to TDLOG – 8% interest; due June 30, 2014; unsecured (1)	$	817,500	$	817,500
Promissory note to Michael Munsey – 4% interest; due December 31, 2014; unsecured (2)		20,155		—
Promissory note to TDLOG – 8% interest; due June 30, 2014; unsecured (1)		10,000		—
Promissory note to TDLOG – 8% interest; due June 30, 2014; unsecured (1) Total:		80,000		80,000
Notes Payable – Related Parties	$	927,655	$	897,500

(1)	TDLOG, LLC is controlled by Thomas E. Lipar, Chairman of the Board of Eagle Ford.  Note due date was changed to June 30, 2014 from September 30, 2013. As of date, the notes are in default.
(2)	Michael Munsey is Vice-President of Operations and Exploration of Eagle Ford.

Schedule of notes payable

Notes Payable – Non-Related Parties

	June 30, 2014			December 31, 2013
Promissory note – 12% interest; due March 31, 2009; not secured (1)	$	328,578		$	328,578
Promissory note – 5% interest; due January 1, 2012; not secured (2)		227,131			227,131
Pipeline mortgage – 8% interest; due September 30, 2009; secured by pipeline (3)		1,000,000			1,000,000
Promissory notes – 6% interest; due April 1, 2011; not secured (2)		112,000			112,000
Promissory notes – 5% interest; due October 15, 2010; not secured (4)		50,000			50,000
Promissory note to a former Director – 8% interest; due July 1, 2010; unsecured (5)		25,000			25,000
Promissory note – Medallion Investment – 10% interest (6)		7,000,000			7,000,000
Promissory note – 12% interest with $3,000 OID; due July 14, 2014 (7)		—			33,000
Promissory note – 12% interest with $3,000 OID; due July 14, 2014 (7)		—			33,000
Total notes payable		8,742,709			8,808,709
Less: Unamortize debt discount portion		—			(3,218	)
Total notes payable, net		8,742,709			8,805,491
Less: current portion of notes payable		(8,742,709	)		(8,805,491	)
Total notes payable – long term	$	—		$	—

(1)	Pursuant to the Reverse Acquisition, the Company assumed these notes payable totaling $328,578. All principal and interest became due September 30, 2009 for 12% notes. This note has not been repaid and is in default. No demand has been made for payment. Eagle Ford is continuing to accrue interest on this note at the stated rate.
(2)	Pursuant to the Reverse Acquisition, the Company assumed two notes payable (i) $227,131 due on January 1, 2012 for 5% and (ii) $142,000 due on April 1, 2011 for 6% interest for drilling on the Wilson Field lease and for general corporate purposes. Neither of these notes has been repaid in cash and is in default. Eagle Ford is continuing to accrue interest on these notes at the stated rate.  During the year ended December 31, 2013, the note holder agreed to convert $30,000 of note on issuance of 81,081 shares of common stock. On March 12, 2014, the note holder demanded payment on the outstanding portion of the note totaling $339,131 (see Note 8).  The note holder has demanded payment, and we are currently in negotiations regarding a settlement.
(3)	The entire unpaid balance of principal and accrued interest was due on September 30, 2009. No payments have been made and this mortgage note is in default. There has been a judgment rendered against Eagle Ford in the amount of the mortgage (see Note 8). Eagle Ford is in discussions with the lender to restructure the mortgage. Eagle Ford is continuing to accrue interest on this note at the stated rate.  In April, 2014, the note holder began the process to move the judgment to Texas courts.
(4)	Pursuant to the Reverse Acquisition, the Company assumed these notes payable totaling $50,000 from two different note holders for drilling on the Wilson Field lease and for general corporate purposes. Neither of these notes has been repaid in cash and is in default. One party has demanded payment on a $25,000 note. Eagle Ford is continuing to accrue interest on these notes at the stated rate (see Note 8).
(5)	Prior to the Reverse Acquisition, Eagle Ford borrowed $25,000 from a related party for general corporate purposes. The note is in default and due on demand. Eagle Ford continued to accrue interest on these notes at the stated rate. From July 20, 2011 this note holder is no longer a related party.

(6)

East Pearsall Medallion Oil Company LTD (MOC) invested $7,000,000 with ECCE to form MOC/Eagle Ford Oil & Gas East Pearsall, in order to purchase the East Pearsall tract from AMAC Energy, which created a Special Purpose Entity (SPE). Upon receipt of the funds, ECCE granted to MOC a lien and security interest on all the assets of the SPE, including the leases up to the investment and any accrued interest. The amount was to be paid in full within 12 months, and bears an interest rate of 10.00% APR. There will be an additional distribution of $7,000,000 to MOC in preferred production payments, which may be deferred until after receipt of the initial $7,000,000 and interest payments and then paid per agreed upon sliding scale within 18 months from the closing date or a mutually agreed date. MOC will retain 6.55% of the 63.75% Net Revenue Interest as an overriding royalty interest (ORRO) after all payments described previously are received by MOC. There may also be a sliding scale on these payments to be negotiated on a reasonable basis to enable ECCE to retain reasonable cash proceeds to enable it to conduct its business with respect to drilling and development of the project. The overriding royalty interest shall be free and clear of all costs except production taxes. The ORRO will apply to any renewals, extensions, etc. of existing leases and to any new leases acquired within the Area of Mutual Interest. ECCE must satisfy all drilling obligations or otherwise default to the terms included in the final transaction documents. MOC shall have all rights under the SPE documents, including but not limited to the right to foreclose on its lien and security interest and obtain all rights to the Leases. ECCE agreed to reimburse MOC for any legal hours it occurred, up to $10,000. Included in the AMAC investment agreement, ECCE agrees to cause the drilling of at least one oil and gas well on or prior to 12 months from the date hereof and obtain drilling funds of at least $21,500,000 with a satisfactory drilling partner within three months of the date hereof, or December 4, 2012. On October 22, 2012, MOC agreed to modify the agreement with ECCE relating to the issue relating to the date for raising drilling funds. ECCE needed to raise $10,500,000 for drilling funds by December 4, 2012, instead of the $21,500,000 in the original agreement. As of the date of this report, ECCE has failed to raise the necessary drilling funds. This caused the company to be in default, and as a result, the note has been reclassified from a long term to short term liability ECCE has attempted to raise funds in order to develop this field since the time of purchase. With the leases being reassigned to AMAC Energy, the entity of EFOGC – East Pearsall is currently “winding down” and will be closed as an operating entity in the state of Texas. With this winding down, ECCE will no longer have any liability relative to EFOGC – East Pearsall and the East Pearsall leases. ECCE has attempted to raise funds in order to develop this field since the time of purchase and has been unsuccessful. The closing of the East Pearsall subsidiary is currently being negotiated with the attorneys for MOC. We continue to have discussions on the wording of the closing documents, and the final will most likely, not be available until after the date of filing. At this time ECCE has not been able to negotiate a closing of the subsidiary with MOC.

(7)

As these notes has conversion features, please see the discussion in convertible notes (refer below for further details).

Schedule of convertible debentures and notes payable

Convertible Debentures and Notes Payable

	June 30, 2014			December 31, 2013
Convertible debentures (1)	$	545,000		$	545,000
Convertible notes payable (2)		66,000			—
Total convertible debentures and notes payable		611,000			545,000
Unamortized debt discount on convertible notes payable		(2,784	)		—
Total: Convertible debentures and notes payable – net		608,218			545,000
Less: current portion of convertible debentures and notes payable		(608,216	)		(545,000	)
Total convertible debentures and notes payable – long term	$	—		$	—

(1) On June 20, 2011, the Company assumed the liability for $545,000 of Secured Convertible Debentures as a result of the Reverse Acquisition. The Secured Convertible Debentures matured on July 26, 2011, and earned interest at a rate of 12%, payable quarterly in 3,000 shares of common stock for each debenture. The Company is in default. There have been no shares issued for the interest payable as of June 30, 2014, nor have the Debentures been repaid. The interest for these debentures is accrued at the 12% rate and is included in accrued expenses. The Debentures are secured by a 1.5% interest in three oil and gas producing wells that are in a 2,400 acre lease in Live Oak County, Texas. The Debentures are convertible at the holders’ option into Eagle Ford restricted common stock at a fixed conversion rate of $0.90 per common share. The Debentures may also be satisfied by transferring the lease to the investors. Eagle Ford is in negotiation with the debenture holders and no agreement has been made as of the date. Accrued and unpaid interest was $241,055and $224,705 at June 30, 2014 and December 31, 2013, respectively related to the convertible debentures. Interest expenses on convertible debenture for the three months ended June 30, 2014 and 2013 is $16,350 for each quarter.

(2) On July 18, 2013, ECCE issued two Notes Payable of $33,000 each, for a combined total of $66,000 to two individuals. The notes contained a $3,000 or $6,000 total original issue discount. The notes are due on July 14, 2014, and if they were repaid within ninety days from date of issue, then no interest would accrue. If they were paid after 90 days, then they accrued interest at a rate of twelve percent per annum, due on that date. The notes could be converted into common stock after 180 days, which occurred on January 14, 2014. The Conversion Price is the lesser of $0.39 per share or 60% of the lowest trade in the 25 trading days previous to the conversion. The Note accrues interest at a rate of 12% per annum and matured on July 13, 2014.  The notes were not paid or converted and are now in default.

The Company identified embedded derivatives related to the Convertible Note entered into on January 13, 2014.  These embedded derivatives included certain conversion features.  The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date.  At the inception of the Convertible Note, the Company determined a fair value of $38,762 of the embedded derivative.  The fair value of the embedded derivative was determined using intrinsic value.

The initial fair value of the embedded debt derivative of $38,762 was allocated as a debt discount and derivatives liability.

The fair value of the described embedded derivative of $44,848 at June 30, 2014 was determined using the Black-Scholes Model with the following assumptions:

(1) risk free interest rate of	0.28%;
(2) dividend yield of	0%;
(3) volatility factor of	183%;
(4) an expected life of the conversion feature of	6 months, and
(5) estimated fair value of the company’s common stock of	$0.25 per share.

Schedule of fair value assumptions of embedded derivative

The fair value of the described embedded derivative of $44,848 at June 30, 2014 was determined using the Black-Scholes Model with the following assumptions:

(1) risk free interest rate of	0.28%;
(2) dividend yield of	0%;
(3) volatility factor of	183%;
(4) an expected life of the conversion feature of	6 months, and
(5) estimated fair value of the company’s common stock of	$0.25 per share.

Schedule of activity of derivative liability

Activity for the derivative liability- convertible note during the six months ended June 30, 2014 was:

	December 31, 2013		Activity During the Period		Decrease in Fair Value		June 30, 2014
Derivative convertible notes	$	—	$	44,848	$	—	$	44,848
Total	$	—	$	44,848	$	—	$	44,848

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2014

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

9. SUBSEQUENT EVENTS

In order to improve the Balance Sheet and make the company more appealing to new investment as well as conserving cash flow, on August 4, 2014 the Board of Directors initiated a thorough review of all debt and service contracts in order to control future expenses and to reduce those current obligations for payables, interest and other debt instruments. ECCE will be reviewing all such items and will attempt to settle them at a reduced amount. The Chairman of the Board, Thomas Lipar agreed to advance ECCE an as yet undetermined amount in order to satisfy immediate financial needs of the company. He also agreed to fund an undetermined amount to settle such AP and Notes Payable settlements. The funds to settle the open payable and notes payable will be determined on a case by case basis, and will be decide within 60 days of the filing. The Board reserves the right to end this endeavor at any time.

ECCE agreed to set up a compensation for Michael Munsey for his services as a technical advisor in examining and selecting potential and existing oil and gas properties. The Board of Directors agreed to grant 425,000 shares of restricted stock to Michael Munsey, which is to be issued in four equal amounts at the end of every six months. The first installment of 106,250 shares will be issued on August 31, 2014. Mr. Munsey also agreed to accept the position of Vice-President of Operations and Exploration.

EAST PEARSALL

On June 4, 2012, ECCE entered into an agreement though a special purpose entity named EFOGC – East Pearsall, L.L.C., a Texas limited liability company. ECCE owns 100% of the Class B Membership Interests in EFEP, while MOC owns 100% of the Class A Membership Interest. EFEP completed the acquisition of 85% Working Interest in 3,683 acres in Frio County, Texas from Amac Energy, L.L.C. to drill and develop the Austin Chalk, Buda, Eagle Ford and Pearsall Shale The agreement with AMAC Energy was to purchase the 85% of the working interest on the East Pearsall lease. As part of the sales agreement, ECCE had to drill the one well on each of the three leases prior to 6 months of the expiration of the leases.  Due to the fact that ECCE was unable to acquire drilling funds per the agreement prior to the agreed date, ECCE was required, as stated in the agreement, to reassign the leases back to AMAC Energy. As a result as stated in the settlement agreement, On July 8, 2014 the MOC-East Pearsall Board of Directors approved the release of all liens to AMAC. ECCE has been released from any obligation to AMAC Energy.

MOC invested $7,000,000 into EFOGC – East Pearsall, LLC for the sole purpose of acquiring the AMAC leases, with MOC owning 100% of A series common stock and ECCE owning B series common stock as “designated operator”. Per the agreement with MOC, ECCE was required to acquire a minimum of $10,500,000 drilling capital by December 2012, however, ECCE was unsuccessful. MOC granted an extension for another six months, however ECCE was also unsuccessful in that attempt to raise funds.

With the leases being reassigned to AMAC Energy, the entity of EFOGC – East Pearsall is currently “winding down” and will be closed as an operating entity in the state of Texas. With this winding down, ECCE will no longer have any liability relative to EFOGC – East Pearsall and the East Pearsall leases.

ECCE has attempted to raise funds in order to develop this field since the time of purchase and has been unsuccessful.

The closing of the East Pearsall subsidiary is currently being negotiated with the attorneys for MOC. We continue to have discussions on the wording of the closing documents, and the final will most likely, not be available until after the date of filing. At this time ECCE has not negotiated an agreement with MOC, as the final closing of the subsidiary is not complete and still under negotiation.

The Company has evaluated all transactions from June 30, 2014 through the issuance date of the financial statements for subsequent event disclosure consideration.

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SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2014

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' EQUITY

7. SHAREHOLDERS’ EQUITY

As of June 30, 2014 and December 31, 2013, there were 42,021,745 and 40,102,947 shares of common stock issued and outstanding, respectively.

Common stock sales

On January 14, 2014, ECCE sold 183,488 shares of common stock to several individuals for $0.1635 per share.

On March 12, 2014, ECCE sold 1,735,310 shares of common stock to several individual for $0.144 per share.

All proceeds from stock sales were used for general corporate purposes.

Warrants

Warrant activity during the six months ended June 30, 2014 is as follows:

	Warrants		Weighted-Average Exercise Price		Aggregate Intrinsic Value
Outstanding at January 1, 2014		1,000,000	$	0.50	$	—
Granted		—		—		—
Exercised		—		—		—
Expired		1,000,000		0.50		—
Outstanding and exercisable at June 30, 2014		—	$	—	$	—

The fair value of these warrants was recognized as derivative warrant instruments and had been measured at fair value at each reporting period. See Note 6. As of June 30, 2014, all warrants had expired with no value.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

8. COMMITMENTS AND CONTINGENCIES

Legal Proceedings

On February 28, 2009 M-J Oil Company Inc, of Paris Ohio, obtained a judgment of $1,000,000 against Eagle Ford (f/k/a ECCO Energy) for non-compliance with covenants in the original mortgage relating to the purchase of the M-J Oil Company pipeline (“Pipeline”). Eagle Ford is in negotiations with the M-J Oil Company to remove the judgment and to adjust the mortgage terms, which required full payment on March 31, 2009. As of the date of this filing, the Company has not reached a satisfactory agreement with the lender, although a settlement is being actively pursued. In April, 2014, M-J commenced legal action to move the judgment from Ohio to Texas courts.

Eagle Ford has not paid property taxes for 2007, 2008 or 2009 on the Wilson Field in Nueces County, Texas. Samurai Corp. agreed to assume the liabilities for property taxes for 2010 when it acquired the property. The County has initiated legal proceedings to collect those taxes by placing tax liens on the property. As of June 30, 2014, Eagle Ford owed $43,452 for these property taxes. ECCE is currently in negotiations to settle this liability.

On March 12, 2014, one of the note holders sent a letter asking for payment on four notes totaling $339,130. We are in discussion with this note holder about a settlement.

On March 17, 2014, a note holder sent a letter asking for payment on a $25,000 note. ECCE is in discussions with this note holder about a settlement.

Operating Leases

The rental contract at 1110 NASA Parkway for 1,379 sq. ft. commenced July 1, 2010 and terminated on August 31, 2014. On August 31, 2013, ECCE renewed the lease for the next year at a rate of $2,011 per month. On August 1, 2014 the lease expired. ECCE is currently negotiating the renewal and is on a month to month basis at the date of filing.

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with US GAAP 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 financial statements and that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Eagle Ford's unaudited condensed consolidated financial statements are based on a number of significant estimates, including oil and gas reserve quantities which are the basis for the calculation of depreciation, depletion and impairment of oil and gas properties; timing and costs associated with its asset retirement obligations; estimates for the realization of goodwill; and estimates of the value of derivative financial instruments.

Reclassifications

Reclassifications

Certain reclassifications have been made to amounts in prior periods to conform to the current period presentation. All reclassifications have been applied consistently to the periods presented.

Cash and Cash Equivalents

Cash and Cash Equivalents

Eagle Ford considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents.

Oil and Gas Properties, Full Cost Method

Oil and Gas Properties, Full Cost Method

Eagle Ford uses the full cost method of accounting for oil and gas producing activities. Costs to acquire mineral interests in oil and gas properties, to drill and equip exploratory wells used to find proved reserves, and to drill and equip development wells, including directly related overhead costs and related asset retirement costs, are capitalized. Under this method, all costs, including internal costs directly related to acquisition, exploration and development activities are capitalized as oil and gas property costs. Properties not subject to amortization consist of exploration and development costs which are evaluated on a property-by-property basis. Amortization of these unproved property costs begins when the properties become proved or their values become impaired. Eagle Ford assesses the realizability of unproved properties, if any, on at least an annual basis or when there has been an indication that impairment in value may have occurred. Impairment of unproved properties is assessed based on management's intention with regard to future exploration and development of individually significant properties and the ability of Eagle Ford to obtain funds to finance such exploration and development. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is added to the capitalized costs to be amortized.

Costs of proved oil and gas properties, including future development costs, if any, are amortized using the units of production method over the estimated proved reserves.

In applying the full cost method, Eagle Ford performs an impairment test (ceiling test) at each reporting date, whereby the carrying value of property and equipment is compared to the “estimated present value,” of its proved reserves discounted at a 10-percent interest rate of future net revenues, based on current economic and operating conditions, plus the cost of properties not being amortized, plus the lower of cost or fair market value of unproved properties included in costs being amortized, less the income tax effects related to book and tax basis differences of the properties. If capitalized costs exceed this limit, the excess is charged as an impairment expense. The Company assessed the realizability of its oil and gas properties and determined that no impairment of its oil and gas properties was necessary as of June 30, 2014.

Depletion

Depletion

Depletion is provided using the unit-of-production method based upon estimates of proved oil and natural gas reserves with oil and natural gas production being converted to a common unit of measure based upon their relative energy content. Investments in unproved properties and major development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment (ceiling test) indicate that the properties are impaired, the amount of the impairment is deducted from the capitalized costs to be amortized. Once the assessment of unproved properties is complete and when major development projects are evaluated, the costs previously excluded from amortization are transferred to the full cost pool and amortization begins. The amortizable base includes estimated future development costs and where significant, dismantlement, restoration and abandonment costs, net of estimated salvage value.

In arriving at rates under the unit-of-production method, the quantities of recoverable oil and natural gas reserves are established based on estimates made by the Company’s geologists and engineers which require significant judgment, as does the projection of future production volumes and levels of future costs, including future development costs. In addition, considerable judgment is necessary in determining when unproved properties become impaired and in determining the existence of proved reserves once a well has been drilled. All of these judgments may have significant impact on the calculation of depletion expense.

Asset retirement obligations

Asset Retirement Obligations

The Company follows the provisions of the Accounting Standards Codification (“ASC”) 410 - Asset Retirement and Environmental Obligations. The fair value of an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The present value of the estimated asset retirement costs is capitalized as part of the carrying amount of the long-lived asset and is subject to amortization. The Company’s asset retirement obligations relate to the abandonment of oil and gas producing facilities. The amounts recognized are based upon numerous estimates and assumptions, including future retirement costs, future recoverable quantities of oil and gas, future inflation rates and the credit-adjusted risk-free interest rate.

The following table describes changes in our asset retirement obligation during the six months ended June 30, 2014 and the year ended December 31, 2013.

	Six Months Ended June 30, 2014		For the Year Ended December 31, 2013
ARO liability at beginning of period, current and noncurrent	$	24,802	$	24,802
Liabilities incurred from  acquisitions		—		—
Accretion		—		—
ARO liability at end of period, current and noncurrent	$	24,802	$	24,802

Revenue and Cost Recognition

Revenue and Cost Recognition

Eagle Ford uses the sales method of accounting for natural gas and oil revenues. Under this method, revenues are recognized based on the actual volumes of gas and oil sold to purchasers. The volume sold may differ from the volumes to which Eagle Ford is entitled based on our interest in the properties. Costs associated with production are expensed in the period incurred.

Loss per Share

Loss per Share

Pursuant to FASB ASC Topic 260, Earnings per Share, basic net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average number of common and common equivalent shares outstanding during the period. Common share equivalents included in the diluted computation represent shares issuable upon assumed exercise of stock options and warrants using the treasury stock and “if converted” method and conversion of preferred shares. For periods in which net losses are incurred, weighted average shares outstanding is the same for basic and diluted loss per share calculations, as the inclusion of common share equivalents would have an anti-dilutive effect.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are recorded at invoiced amount and generally do not bear interest. An allowance for doubtful accounts is established, as necessary, based on past experience and other factors which, in management's judgment, deserve current recognition in estimating bad debts. Such factors include growth and composition of accounts receivable, the relationship of the allowance for doubtful accounts to accounts receivable and current economic conditions. The determination of the collectability of amounts due from customer accounts requires the Company to make judgments regarding future events and trends. Allowances for doubtful accounts are determined based on assessing the Company’s portfolio on an individual customer and on an overall basis. This process consists of a review of historical collection experience, current aging status of the customer accounts, and the financial condition of Eagle Ford’s customers. Based on a review of these factors, the Company establishes or adjusts the allowance for specific customers and the accounts receivable portfolio as a whole. At June 30, 2014 and December 31, 2013, an allowance for doubtful accounts was not considered necessary as all accounts receivable were deemed collectible.

Concentration of Credit Risk

Concentration of Credit Risk

Financial instruments that potentially subject Eagle Ford to concentration of credit risk consist of cash and accounts receivable. At June 30, 2014, cash balances in interest-bearing accounts are zero.

Sales to a single customer comprised 100% of Eagle Ford's total oil and gas revenues for each of the six months ended for both June 30, 2014 and 2013. At June 30, 2014 and December 31, 2013, Eagle Ford's accounts receivable from its primary customer was $16,569 and $19,084, respectively. Eagle Ford believes that, in the event that its primary customer is unable or unwilling to continue to purchase Eagle Ford's production, there are a substantial number of alternative buyers for its production at comparable prices.

Property and Equipment, other than Oil and Gas Properties

Property and Equipment, other than Oil and Gas Properties

Property and equipment are stated at cost. Additions of new equipment and major renewals and replacements of existing equipment are capitalized. Repairs and minor replacements are charged to operations as incurred. Cost and accumulated depreciation and amortization are removed from the accounts when assets are sold or retired, and the resulting gains or losses are included in operations.

Depreciation of property and equipment is provided using the straight-line method applied to the expected useful lives of the assets:

	Estimated useful lives
Pipeline transmission properties	20 years
Machinery and equipment	3 – 7 years
Office furniture, fixtures and equipment	3 – 5 years

Income Taxes

Income Taxes

The Company uses the liability method of accounting for income taxes. Under this method, it records deferred income taxes based on temporary differences between the financial reporting and tax bases of assets and liabilities and uses enacted tax rates and laws that the Company expects will be in effect when it recovers those assets or settles those liabilities, as the case may be, to measure those taxes. The Company reviews deferred tax assets for a valuation allowance based upon whether it is more likely than not that the deferred tax asset will be fully realized.

The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. As of June 30, 2014, the Company did not identify any uncertain tax positions.

The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the income tax expense (benefit) line item in the statement of operations.

Share-Based Compensation

Share-Based Compensation

The Company follows ASC 718 - Compensation - Stock Compensation under which the Company estimates the fair value of each stock option award at the grant date by using the Black-Scholes option pricing model and common shares based on the last quoted market price of the Company’s common stock on the date of the share grant. The fair value determined represents the cost for the award and is recognized over the vesting period during which an employee is required to provide service in exchange for the award. As share-based compensation expense is recognized based on awards ultimately expected to vest, the Company reduces the expense for estimated forfeitures based on historical forfeiture rates, if available. Previously recognized compensation costs may be adjusted to reflect the actual forfeiture rate for the entire award at the end of the vesting period. Excess tax benefits, as defined in ASC 718, if any, are recognized as an addition to paid-in capital.

Financial instruments

Financial instruments

The accounting standards regarding fair value of financial instruments and related fair value measurements define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures.

The three levels are defined as follows:

·  Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

· Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

· Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that the warrants outstanding as of the date of these financial statements include an exercise price “reset” adjustment that qualifies as derivative financial instruments under the provisions of ASC 815-40, Derivatives and Hedging – Contracts in an Entity’s Own Stock.” See Note 6 for discussion of the impact the derivative financial instruments had on the Company’s unaudited condensed consolidated financial statements and results of operations.

Significant Level 3 inputs used to calculate the fair value of the warrants and derivative notes include the stock price on the valuation date, expected volatility, risk-free interest rate and management’s assumptions regarding the likelihood of a repricing of these warrants pursuant to the anti-dilution provision. See Note 6 for further discussion.

The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2014. There were no transfers of financial assets between levels during the six months ended June 30, 2014.

	Carrying Value at June 30, 2014		Fair Value Measurement at June 30, 2014
			Level 1		Level 2		Level 3
Derivative liability – Warrants	$	—	$	—	$	—	$	—
Derivative liability – Notes	$	44,848	$	—	$	—	$	44,848

The Company did not identify any other assets and liabilities that are required to be presented on the unaudited condensed consolidated balance sheet at fair value.

Contingencies

Contingencies

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a loss contingency indicates that it is probable that a loss has been incurred and the amount of the liability can be reasonably estimated, then the estimated liability is accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. The Company expenses legal costs associated with contingencies as incurred.

Environmental Expenditures

Environmental Expenditures

The Company is subject to extensive federal, state and local environmental laws and regulations. These laws regulate the discharge of materials into the environment and may require the Company to remove or mitigate the environmental effects of the disposal or release of petroleum or chemical substances at various sites. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed.

Liabilities for expenditures of a non-capital nature are recorded when environmental assessment and/or remediation is probable, and the costs can be reasonably estimated. Such liabilities are generally undiscounted unless the timing of cash payments for the liability or component is fixed or reliably determinable. No such liabilities existed or were recorded at June 30, 2014 and December 31, 2013.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Eagle Ford does not expect the adoption of any recently issued accounting pronouncements will have a significant impact on its results of operations, financial position or cash flow.

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DERIVATIVE LIABILITY - WARRANTS (Details Narrative) (USD $)		3 Months Ended		6 Months Ended
	Dec. 31, 2012	Jun. 30, 2014 Warrants [Member]	Jun. 30, 2013 Warrants [Member]	Jun. 30, 2014 Warrants [Member]	Jun. 30, 2013 Warrants [Member]	Dec. 31, 2013 Warrants [Member]
Warrants Outstanding	1,000,000
Derivative liability - warrants						$ 93,044
Change in unrealized gain (loss) on fair value		$ 11,525	$ 70,397	$ 93,044	$ 18,861

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SHAREHOLDERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2014

Stockholders' Equity Note [Abstract]

Schedule of warrant activity

Warrant activity during the six months ended June 30, 2014 is as follows:

	Warrants		Weighted-Average Exercise Price		Aggregate Intrinsic Value
Outstanding at January 1, 2014		1,000,000	$	0.50	$	—
Granted		—		—		—
Exercised		—		—		—
Expired		1,000,000		0.50		—
Outstanding and exercisable at June 30, 2014		—	$	—	$	—

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LIQUIDITY AND GOING CONCERN (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Liquidity And Going Concern
Net loss attributable to common shareholders of Company	$ (881,779)
Working Capital Deficit	14,305,112	13,710,962
Cash and cash equivalents	$ 2,098	$ 3,802	$ 3,896	$ 259,138

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT (Unaudited) (USD $)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance beginning at Dec. 31, 2013	$ 40,103	$ 6,740,465	$ (13,883,555)	$ (7,102,987)
Balance beginning, shares at Dec. 31, 2013	40,102,947
Common shares issued for cash	1,919	278,081		280,000
Common shares issued for cash, shares	1,918,798
Net loss			(881,779)	(881,779)
Balance ending at Jun. 30, 2014	$ 42,022	$ 7,018,546	$ (14,765,334)	$ (7,704,766)
Balance ending, shares at Jun. 30, 2014	42,021,745

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OIL AND GAS PROPERTIES

6 Months Ended

Jun. 30, 2014

Extractive Industries [Abstract]

OIL AND GAS PROPERTIES

4. OIL AND GAS PROPERTIES

The following table sets forth the Company’s costs incurred in oil and gas property acquisition, exploration and development activities for the six months ended June 30, 2014. All of the Company’s oil and gas properties are located in the United States.

Well Description	December 31, 2013		Additions		Impairment/ Dispositions		June 30, 2014
East Pearsall, Frio Co. TX	$	6,464,436	$	19,871	$	—	$	6,484,307
	$	6,464,436	$	19,871	$	—	$	6,484,307

EAST PEARSALL

On June 4, 2012, ECCE entered into an agreement though a special purpose entity named EFOGC – East Pearsall, L.L.C., a Texas limited liability company. ECCE owns 100% of the Class B Membership Interests in EFEP, while MOC owns 100% of the Class A Membership Interest. EFEP completed the acquisition of 85% Working Interest in 3,683 acres in Frio County, Texas from Amac Energy, L.L.C. to drill and develop the Austin Chalk, Buda, Eagle Ford and Pearsall Shale The agreement with AMAC Energy was to purchase the 85% of the working interest on the East Pearsall lease. As part of the sales agreement, ECCE had to drill the one well on each of the three leases prior to 6 months of the expiration of the leases.  Due to the fact that ECCE was unable to acquire drilling funds per the agreement prior to the agreed date, ECCE was required, as stated in the agreement, to reassign the leases back to AMAC Energy. As a result as stated in the settlement agreement, On July 8, 2014 the MOC-East Pearsall Board of Directors approved the release of all liens to AMAC. ECCE has been released from any obligation to AMAC Energy.

MOC invested $7,000,000 into EFOGC – East Pearsall, LLC for the sole purpose of acquiring the AMAC leases, with MOC owning 100% of A series common stock and ECCE owning B series common stock as “designated operator”. Per the agreement with MOC, ECCE was required to acquire a minimum of $10,500,000 drilling capital by December 2012, however, ECCE was unsuccessful. MOC granted an extension for another six months, however ECCE was also unsuccessful in that attempt to raise funds.

With the leases being reassigned to AMAC Energy, the entity of EFOGC – East Pearsall is currently “winding down” and will be closed as an operating entity in the state of Texas. With this winding down, ECCE will no longer have any liability relative to EFOGC – East Pearsall and the East Pearsall leases.

ECCE has attempted to raise funds in order to develop this field since the time of purchase and has been unsuccessful.

The closing of the East Pearsall subsidiary is currently being negotiated with the attorneys for MOC. We continue to have discussions on the wording of the closing documents, and the final will most likely, not be available until after the date of filing. At this time ECCE has not negotiated an agreement with MOC, as the final closing of the subsidiary is not complete and still under negotiation.

LIVE OAK COUNTY, TEXAS

In August 2010, ECCE purchased a farm-in of a 1% working interest in 2,400 acres and the drilling of two wells in the Eagle Ford Shale formation located in Live Oak County in South Texas for $250,000. The Dena Forehand #2H, the Kellam #2H and the Hammon 1H were drilled and completed and production began during late 2010 and early 2011 and classified as proved reserves. Subsequent production has proven to be well below expectations, and ECCE does not intend to pursue additional investments in this field. As of the date of this report, the wells in Live Oak County continue to have minimal gas production.

The three wells are still producing, but revenue is insignificant after expenses are deducted. ECCE may owe future amounts on these wells pertaining to any attempts to improve production; however there has been no decision to make such repairs, or improvements.

OHIO PIPELINE

In October 2008, ECCE acquired a gas pipeline (“Pipeline”) approximately 13 miles in length located in Jefferson and Harrison Counties, Ohio. The Pipeline was purchased from M- J Oil Company of Paris, Ohio, an unaffiliated third party, by issuing a mortgage note for $1,000,000. The mortgage note bears an 8% annual interest rate. The mortgage is secured by the Pipeline assets. The mortgage was due on March 31, 2010, at which time, the entire unpaid balance of principal and accrued interest was to have been paid. The pipeline services oil and gas properties owned by Samurai Corp, an affiliated company.

On February 27, 2009, ECCE entered into an agreement to buy oil and gas producing properties in Ohio, from Samurai Corp, an affiliated company owned by Sam Skipper, who was President of ECCE at that time. Upon further review, due to market conditions pertaining to the price of oil and gas, both Samurai and ECCE decided that the transaction was not in the best interest of shareholders of either company. Therefore, on April 13, 2009 the Board of Directors of both companies decided to terminate the transaction.

A review of the pipeline valuation was performed by management. This was necessary as the asset was not an income producing asset during 2010. A comparison of replacement cost, comparable market value and comparable earnings potential to other pipelines, showed that the expected realizable value of the asset at December 31, 2009 was $100,000. An impairment charge of $900,000 was recorded during the year ended December 31, 2009.

Due to the failure to complete the transfer of assets from Samurai to ECCE, the covenants of the Pipeline purchase were violated. On February 28, 2009 M-J Oil Company Inc, of Paris Ohio, obtained a judgment against ECCO Energy for non-compliance with covenants in the original mortgage relating to the purchase of the M-J Oil Company pipeline (“Pipeline”). We are in negotiations with the M-J Oil Company to remove the judgment and to adjust the mortgage terms, which required full payment on March 31, 2009. As of this date, we have not reached a satisfactory agreement with the lender. M-J Oil Company has taken legal action to pursue the judgment in the State of Texas, filing a lawsuit in the State of Texas in April, 2014. As of June 30, 2014, the company is in process of negotiation for settlement of the judgment.

BAYOU CHOCTAW

On August 5, 2011, ECCE, entered into an agreement to purchase 1.5% Working Interest in the Bayou Choctaw Project located in Iberville Parish, Louisiana from GFX Energy, Inc. (GFX). Prior to December 31, 2011, ECCE decided to not further participate in the Bayou Choctaw development. ECCE and GFX decided to use the $100,000 deposited for Bayou Choctaw as a deposit on a future, undetermined endeavor relating to the exploration of oil and gas. ECCE remains in discussion about this investment with GFX Energy, Inc., and anticipates using this balance in a future, undetermined activity.

HARDIN COUNTY/MERIDIAN CAPITAL VENTURES

During the year ended December 31, 2013, the Company was in the process of making an offer on some property in Hardin County, TX. Meridian Capital Ventures intended to fund the acquisition. During the quarter, Vanguard Energy received a higher offer than ECCE was prepared to bid and the property was sold to another company. As of June 30, 2014 the agreement to fund the acquisition has been cancelled and the amounts payable to Meridian Capital Ventures has been voided.

Eagle Ford Oil & Gas Operating Company

During March, 2014, ECCE began the process of registering a new subsidiary, Eagle Ford Oil & Gas Operating Company. The new subsidiary will be responsible for any drilling and related production activities of the company. As of the date of this report, the subsidiary has no assets or liabilities.

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OIL AND GAS PROPERTIES (Details Narrative) (USD $)	12 Months Ended						0 Months Ended	12 Months Ended			12 Months Ended
	Dec. 31, 2012	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014 East Pearsall, Frio Co. TX [Member] acre	Dec. 31, 2013 East Pearsall, Frio Co. TX [Member]	Jul. 08, 2014 East Pearsall, Frio Co. TX [Member] Subsequent event [Member] acre	Jul. 08, 2014 East Pearsall, Frio Co. TX [Member] Subsequent event [Member] Medallion Oil Company LTD (MOC) [Member]	Dec. 31, 2013 Live Oak County TX [Member]	Dec. 31, 2011 Live Oak County TX [Member]	Jun. 30, 2014 Live Oak County TX [Member] acre	Dec. 31, 2009 Ohio Pipeline [Member]	Jun. 30, 2014 Ohio Pipeline [Member] Pipeline Mortgage Due March 31, 2010 [Member]	Jun. 30, 2014 Bayou Choctaw [Member]
Working Interest Percentage				85.00%		85.00%				1.00%			1.50%
Ownership of properties, Acres				3,683		3,683				2,400
Investments in oil and gas properties		$ 6,484,307	$ 6,464,436	$ 6,484,307	$ 6,464,436		$ 7,000,000				$ 100,000
Drilling funds to be obtained	10,500,000						10,500,000
Purchase Price										250,000			100,000
Impairment/Dispositions								100,752	116,029		900,000
Notes Payable		$ 8,742,709	$ 8,808,709									$ 1,000,000
Notes payable - interest rate												8.00%

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COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	Jun. 30, 2014	Mar. 17, 2014	Mar. 12, 2014	Aug. 31, 2013
Property Taxes Payable	$ 43,452
Demand payment sought by note holder		25,000	339,130
Monthly Rent Expense				2,011
Unasserted Claim [Member]
Esimate loss	$ 1,000,000

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DERIVATIVE LIABILITY- WARRANTS (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of activity of derivative warrant instruments

Activity for the derivative warrant during the six months ended June 30, 2014 was:

	December 31, 2013		Activity During the Period		Decrease in Fair Value		June 30, 2014
Derivative warrant instruments	$	93,044	$	—	$	93,044	$	—
Total	$	93,044	$	—	$	93,044	$	—