Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Cash flows from operating activities:
Net loss	$ (1,552,883)	$ (559,401)
Adjustments to reconcile net loss to cash used in operating activities:
Derivative gain (loss)	354,953	(336,013)
Amortization of prepaid expenses		90,815
Stock based compensation	173,487	347,404
Loss on sale of investments		7,185
Depreciation, depletion and amortization	489,686	51,282
Gain on ARO settlement	(58,041)
Accretion - Asset retirement obligation	48,431	8,837
Amortization of debt discount	708,107	178,153
Changes in operating assets and liabilities
Accounts receivable	(158,621)	21,134
Prepaid expenses	(75,903)
Other receivables	60,228
Accounts payable	(2,100,581)	6,032
Accrued expenses and other current liabilities	267,054	21,433
Deferred tax liability	(271,789)
Undistributed revenues and royalties	(62,070)
Amounts due to directors	25,191	39,892
Net cash used in operating activities	(2,152,751)	(123,247)
Cash flows from investing activities:
Investment in, and acquisition of oil and gas properties	(963,709)
Acquisition of fixed assets	(130,000)
Proceeds from sale of oil and gas interests	1,144,953
Proceeds from sale of investments		101,191
Net cash provided by in investing activities	51,244	101,191
Cash flows from financing activities:
Proceeds from amount due to directors	583,000	3,900
Repayments of amount due to directors	(938,771)	(144,480)
Proceeds from sale of common stock		331,667
Proceeds from long term debt	3,992,143	331,667
Repayment of long term debt	(5,322,981)	(222,500)
Net cash used by financing activities	(1,686,609)	300,254
Net increase (decrease) in cash	(3,788,116)	278,198
Cash, beginning of period	5,735,259	18,605	18,605
Cash, end of period	1,947,143	296,803	$ 5,735,259
Supplemental Cash Flow Information:
Cash paid for: Interest	231,822	67,136
Cash paid for: Income taxes
Supplemental disclosure of Non-Cash Investing and Financing Activities:
Recognition of asset retirement obligation	231,053
Issuance of shares as discount on debt	615,185
Prepayment of contract through amounts due directors		100,000
Long term debt paid through amounts due directors		104,904
Issuance of shares for contract services	55,000	700,920
Sale of shares through satisfaction of unrelated notes payable		127,215
Accrued expenses exchanged for long term debt		$ 9,500