Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2017

Assets and liabilities measured at fair value as of March 31, 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		-		5,843		-		66,904
	$	-	$	5,843	$	-	$	68,350

Financial liabilities
Derivative liabilities	$	-	$	-	$	771,493	$	269,109
	$	-	$	-	$	771,493	$	269,109

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

	March 31, 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.		364,641		-

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.		39,683

	$	404,324	$	35,068

Oil and Gas Properties by Geographical Cost Center
	Three months ended,
	March 31,
Cost Center	2017		2016

Canada	$	17,007	$	2,064
United States		34,275		18,302

	$	51,282	$	20,366

The following table represents stock warrant activity as of and for the three months ended March 31, 2017:

	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		-		-
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited/expired/cancelled		-				-		-
Warrants Outstanding – March 31, 2017		5,720,834	$	0.19	5.0 years		$	-
Outstanding Exercisable – December 31, 2016		5,720,834	$	0.19	5.0 years		$	-
Outstanding Exercisable – March 31, 2017		5,720,834	$	0.19	5.0 years		$	-

	Three months ended March 31, 2017		Year ended December 31, 2016

Asset retirement obligation – beginning	$	833,017	$	416,246
Oil and gas purchases		-		393,808
Accretion expense		8,837		22,963

Asset retirement obligation - ending	$	841,854	$	833,017