Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statement Of Cash Flows (Unaudited)

Consolidated Statement Of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Cash flows from operating activities:
Net loss	$ (1,322,713)	$ (1,572,639)	$ (1,882,114)	$ (3,971,368)	$ (5,445,187)
Adjustments to reconcile net loss to cash used in operating activities:
Derivative (gain) loss	(119,085)	276,059	(455,098)	1,931,595
Amortization of prepaid expenses			162,914
Stock based compensation	803,616	240,589	1,151,020	406,144
Loss on sale of investments			7,185
Depreciation, depletion and amortization	35,609	28,250	86,891	48,616
Accretion - Asset retirement obligation	9,804	5,171	18,641	10,279
Amortization of debt discount			514,540	1,218,090
Changes in operating assets and liabilities
Accounts receivable			(4,328)	(15,828)
Accounts payable			(48,898)	(75,837)
Accrued expenses and other current liabilities			88,429	132,426
Amounts due to directors			94,871	52,758
Net cash used in operating activities			(265,947)	(263,125)
Cash flows from investing activities:
Purchase of oil and gas properties				(1,350,000)
Proceeds from sale of investments			101,191
Net cash provided by (used in) investing activities			101,191	(1,350,000)
Cash flows from financing activities:
Proceeds from amount due to directors			5,350
Repayments of amount due to directors			(300,024)	(46,056)
Proceeds from sale of common stock			331,667	187,500
Common stock issuance costs				(37,500)
Proceeds from long term debt			331,667	1,667,500
Repayment of long term debt			(222,500)	(170,500)
Net cash provided by financing activities			146,160	1,600,944
Net decrease in cash			(18,596)	(12,181)
Cash, beginning of period			18,605	30,585	30,585
Cash, end of period	$ 9	$ 18,404	9	18,404	$ 18,605
Supplemental Cash Flow Information
Cash paid for: Interest			99,909	90,252
Cash paid for: Income taxes
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Conversion of convertible note payable				6,778
Issuance of shares for oil and gas property acquisitions				820,250
Issuance of warrants for 4,062,500 common shares as debt discount				416,315
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			700,920
Sale of shares through satisfaction of unrelated notes payable			127,215
Accrued expenses exchanged for long term debt			$ 9,500