Annual report pursuant to Section 13 and 15(d)

Business Acquisition (Tables)

Business Acquisition (Tables)

12 Months Ended

Dec. 31, 2017

The total consideration given as outlined in the “Membership Interest Purchase Agreement”, representing the full purchase price of the membership interests, is calculated as follows:

Cash consideration - adjusted post closing pursuant to the agreement	$	2,995,319
2,000,000 restricted common shares valued at market		460,600

Total purchase price	$	3,455,919

Fair values of assets acquired and liabilities assumed

Goodwill / Bargain Purchase Gain is calculated by comparing the total purchase price to the fair values of assets acquired and liabilities assumed in connection with this acquisition as follows:

Total Purchase Price	$	3,455,919

Fair Value of Assets and Liabilities
Cash	$	1,252,769
Prepaid expenses and other assets		39,185
Oil and Gas Properties		30,257,265
Property and equipment		172,491
Other asset - rental deposit		9,396
Less undistributed revenues and royalties		(1,253,769	)
Total Fair Value of Acquisition		30,477,337

Calculated Goodwill (Bargain Purchase Gain)	$	(27,021,418	)

Summury of loss per share

Proforma unaudited condensed selected financial data for the years ended December 31, 2017 and 2016 as though this acquisition had taken place at January 1, 2016 are as follows:

	Years Ended December 31,
	2017			2016

Revenues	$	8,093,866		$	10,737,474

Net Loss (excludes unrealized gains / losses)	$	(11,854,867	)	$	(26,244,663	)

Loss per share	$	(0.19	)	$	(0.57	)