Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2017

Assets and liabilities measured at fair value as of June 30, 2017 are classified below based on the three fair value hierarchy described above:

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)

Financial Assets
Long term investment	$	-	$	-	$	-	$	1,446
Commodity Derivative		-		43,203		-		104,264
	$	-	$	43,203	$	-	$	105,710

Financial liabilities
Derivative liabilities	$	-	$	-	$	689,767	$	350,834
	$	-	$	-	$	689,767	$	350,834

Assets and liabilities measured at fair value as of December 31, 2016 are classified below based on the three fair value hierarchy described above:

Description	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)

Financial Assets
Long term investment	$	106,930	$	-	$	-	$	156,978
	$	106,930	$	-	$	-	$	156,978

Financial liabilities
Derivative liabilities	$	-	$	-	$	1,075,833	$	265,448
Commodity Derivative		-		61,061		-		(61,061	)
	$	-	$	61,061	$	1,075,833	$	204,387

	June 30, 2017		December 31, 2016

In March 2016, three one-year consulting agreements with three unrelated parties for services related to the petroleum industry for a combined total amount of $800,000.		-		35,068

In January 2017, a six-month consulting agreement for services related to marketing and promotion of the Company on various platforms associated with the petroleum industry and the financial markets for a total amount of $660,000.		32,818		-

In February 2017, a one-year consulting agreement for services related to investor relations, market exposure and content development for a total amount of $44,160.		28,674		-

In April 2017, a one-year consulting agreement comprised of four quarterly incremental installments for services related to analysis of potential oil and gas acquisitions, for an initial quarterly amount of $40,250.		7,961		-

In June 2017, a six-month consulting agreement for services related to investor relations and social media for a total amount of $65,136.		59,797		-

	$	129,250	$	35,068

Oil and Gas Properties by Geographical Cost Center
	Three months ended				Six months ended,
	June 30, 2017				June 30,
Cost Center	2017		2016		2017		2016

Canada	$	221		3,348	$	17,228	$	5,412
United States		35,388		24,902		69,663		43,204

	$	35,609	$	28,250	$	86,891	$	48,616

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value

Warrants Outstanding – December 31, 2016		5,720,834		0.19	4.0 years			-
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited/expired/cancelled		-				-		-
Warrants Outstanding – June 30, 2017		5,720,834	$	0.19	4.0 years		$	-
Outstanding Exercisable – December 31, 2016		5,720,834	$	0.19	4.0 years		$	-
Outstanding Exercisable – June 30, 2017		5,720,834	$	0.19	4.0 years		$	-

	Six months ended June 30, 2017		Year ended December 31, 2016

Asset retirement obligation – beginning	$	833,017	$	416,246
Oil and gas purchases		-		393,808
Accretion expense		18,641		22,963

Asset retirement obligation - ending	$	851,658	$	833,017