|
|||||||
|
March
31,
|
|
|
December
31,
|
|
||
|
|
|
2006
|
|
|
2005
|
|
ASSETS
|
|||||||
CURRENT
ASSETS
|
|||||||
Cash
|
$
|
79,039
|
$
|
78,848
|
|||
Accounts
receivable
|
1,252
|
2,546
|
|||||
Total
Current Assets
|
80,291
|
81,394
|
|||||
OIL
AND GAS PROPERTIES USING
|
|||||||
FULL
COST ACCOUNTING
|
|||||||
Properties
subject to amortization
|
256,519
|
212,996
|
|||||
Accumulated
amortization
|
(13,267
|
)
|
(10,767
|
)
|
|||
Net
Oil and Gas Properties
|
243,252
|
202,229
|
|||||
OTHER
ASSETS
|
|||||||
Investments
|
147,007
|
155,651
|
|||||
Total
Other Assets
|
147,007
|
155,651
|
|||||
TOTAL
ASSETS
|
$
|
470,550
|
$
|
439,274
|
|||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
CURRENT
LIABILITIES
|
|||||||
Accounts
payable
|
$
|
9,974
|
$
|
5,958
|
|||
Notes
payable, related party
|
23,658
|
23,658
|
|||||
Total
Current Liabilities
|
33,632
|
29,616
|
|||||
Total
Liabilities
|
33,632
|
29,616
|
|||||
STOCKHOLDERS'
EQUITY
|
|||||||
Common
stock, 100,000,000 shares authorized of $0.001
|
|||||||
par
value, 55,385,984 and 48,535,984 shares issued
|
|||||||
and
outstanding, respectively
|
55,387
|
53,387
|
|||||
Capital
in excess of par value
|
4,443,323
|
4,185,323
|
|||||
Subscription
receivable
|
-
|
-
|
|||||
Accumulated
other comprehensive income
|
(4,085
|
)
|
(4,810
|
)
|
|||
Deficit
accumulated during the development stage
|
(4,057,707
|
)
|
(3,824,242
|
)
|
|||
Total
Stockholders' Equity
|
436,918
|
409,658
|
|||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
470,550
|
$
|
439,274
|
|
From
|
|||||||||
|
Inception
on
|
|||||||||
|
For
the
|
April
21, 1999
|
||||||||
|
Three
Months Ended
|
Through
|
||||||||
|
March
31,
|
March
31,
|
||||||||
2006
|
2005
|
2006
|
||||||||
REVENUE
|
||||||||||
Royalties
received
|
$
|
243
|
$
|
1,640
|
$
|
11,304
|
||||
EXPENSES
|
||||||||||
Cost
of production
|
-
|
2,565
|
51,753
|
|||||||
Depletion
|
2,500
|
2,500
|
13,267
|
|||||||
General
and administrative
|
291,368
|
23,130
|
4,273,204
|
|||||||
Total
Expenses
|
293,868
|
28,195
|
4,338,224
|
|||||||
NET
OPERATING LOSS
|
(293,625
|
)
|
(26,555
|
)
|
(4,326,920
|
)
|
||||
OTHER
INCOME (EXPENSE)
|
||||||||||
Other
income
|
60,161
|
272,505
|
||||||||
Interest
expense
|
-
|
-
|
(3,292
|
)
|
||||||
Total
Other Income (Expense)
|
60,161
|
-
|
269,213
|
|||||||
NET
PROFIT/(LOSS) BEFORE INCOME TAX
|
$
|
(233,464
|
)
|
$
|
(26,555
|
)
|
$
|
(4,057,707
|
)
|
|
Income
tax
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
NET
PROFIT/(LOSS)
|
$
|
(233,464
|
)
|
$
|
(26,555
|
)
|
$
|
(4,057,707
|
)
|
|
BASIC
LOSS PER COMMON SHARE
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
||||
WEIGHTED
AVERAGE NUMBER OF
|
||||||||||
COMMON
SHARES OUTSTANDING
|
53,919,317
|
48,535,984
|
||||||||
COMPREHENSIVE
INCOME (LOSS)
|
||||||||||
NET
LOSS
|
$
|
(233,464
|
)
|
$
|
(26,555
|
)
|
$
|
(4,057,707
|
)
|
|
OTHER
COMPREHENSIVE INCOME (LOSS)
|
||||||||||
Foreign
Currency Translation
|
524
|
2,367
|
(4,085
|
)
|
||||||
COMPREHENSIVE
INCOME (LOSS)
|
$
|
(232,940
|
)
|
$
|
(24,188
|
)
|
$
|
(4,061,792
|
)
|
From
|
||||||||||
|
Inception
on
|
|||||||||
|
April
21, 1999
|
|||||||||
|
For
the Three Months Ended
|
Through
|
||||||||
|
March
31,
|
March
31,
|
||||||||
2006
|
2005
|
2006
|
||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||
Net
loss
|
$
|
(233,464
|
)
|
$
|
(784,001
|
)
|
$
|
(4,057,707
|
)
|
|
Adjustments
to reconcile net loss to net cash
|
||||||||||
used
in operating activities:
|
||||||||||
Depletion
|
2,500
|
10,767
|
13,267
|
|||||||
Loss
on abandonment of property
|
-
|
25,481
|
25,481
|
|||||||
Gain
on sale of Investment
|
(66,328
|
)
|
(304,153
|
)
|
||||||
Common
stock issued for services rendered
|
260,000
|
680,649
|
3,984,960
|
|||||||
Non-cash
Effect from Foreign Currency Transalation
|
725
|
(2,367
|
)
|
(4,080
|
)
|
|||||
Changes
in operating assets and liabilities:
|
||||||||||
Increase
(Decrease) in accounts receivable
|
1,294
|
(4,809
|
)
|
(1,258
|
)
|
|||||
Increase
(Decrease) in accounts payable - related Party
|
23,659
|
23,659
|
||||||||
Increase
in accounts payable and accrued expenses
|
4,015
|
18,754
|
9,975
|
|||||||
Net
Cash Used in Operating Activities
|
(31,258
|
)
|
(31,867
|
)
|
(309,856
|
)
|
||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||
Proceeds
from sale of investments
|
74,972
|
56,706
|
395,436
|
|||||||
Investing
in new Oil & Gas working interests
|
(43,523
|
)
|
(207,577
|
)
|
||||||
Expenditures
for oil and gas property development
|
(12,042
|
)
|
(312,714
|
)
|
||||||
Net
Cash Used in Investing Activities
|
31,449
|
44,664
|
(124,855
|
)
|
||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||
Proceeds
from issuance of common stock
|
-
|
-
|
465,000
|
|||||||
Receipt
of subscription receivable
|
-
|
-
|
48,750
|
|||||||
#
|
||||||||||
Net
Cash Provided by Financing Activities
|
-
|
-
|
513,750
|
|||||||
NET
INCREASE (DECREASE) IN CASH
|
191
|
12,797
|
79,039
|
|||||||
CASH
AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
78,848
|
9,394
|
-
|
|||||||
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
79,039
|
$
|
22,191
|
$
|
79,039
|
|
From
|
|||||||||
|
Inception
on
|
|||||||||
|
April
21, 1999
|
|||||||||
|
For
the Three Months Ended
|
Through
|
||||||||
|
March
31,
|
March
31,
|
||||||||
2006
|
2005
|
2006
|
||||||||
SUPPLEMENTAL
CASH FLOW INFORMATION
|
||||||||||
CASH
PAID FOR:
|
||||||||||
Interest
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Income
taxes
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
NON-CASH
FINANCING ACTIVITIES
|
||||||||||
Common
stock issued for services rendered
|
$
|
260,000
|
$
|
680,649
|
$
|
3,452,460
|
||||
Common
stock issued for retirement of payables
|
$
|
-
|
$
|
-
|
$
|
532,500
|
NOTE
1 -
|
BASIS
OF PRESENTATION
|
NOTE
2 -
|
LOSS
PER SHARE
|
|
For
the
|
||||||
|
Three
Months Ended
|
||||||
|
March
31,
|
||||||
2006
|
2005
|
||||||
Net Profit/(loss) available to | |||||||
common shareholders | $ | (233,464 | ) | $ | (227,552 | ) | |
Weighted average shares | 53,919,317 | 44,534,181 | |||||
Basic loss per share (based | |||||||
on weighted average shares) | $ | 0.00 | $ | (0.01 | ) |
NOTE
3 -
|
OIL
AND GAS PROPERTIES
|
1) |
In
the spacing unit for the Earning Well, a 1.500% interest in the
petroleum
and natural gas below the base of the Mannville excluding natural
gas in
the Leduc formation, and a 3.00% interest in the natural gas
in the Leduc
formation before payout subject to payment of an Overriding Royalty
which
is convertible upon payout at the Royalty Owners option to 50%
of our
interest.
|
2) |
A
1.200% interest in the rights below the base line of the Shunda
formation
in Section 10,Township 38, Range
9W5M
|
3) |
A
0.966% interest in the rights below the base of the Shunda formation
in
sections 15 & 16,Township 38,Range 9W5M, down to the base of the
deepest formation penetrated.
|
/s/Kulwant
Sandher
|
/s/Donald
Jackson Wells
|
/s/Joseph
Kane
|
||
Kulwant
Sandher
President
/ CFO
|
Donald
Jackson Wells
director
|
Joseph
Kane
director
|
I,
Kulwant Sandher, certify that:
|
(a)
Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the small business
issuer,
including its consolidated subsidiaries, is made known to us by
others
within those entities, particularly during the period in which
this
quarterly report is being prepared;
|
(b)
Designed such internal control over financial reporting, or causes
such
internal control over financial reporting to be designed under
our
supervision, to provide reasonable assurance regarding the reliability
of
financial reporting and the preparation of financial statements
for
external purposes in accordance with generally accepted acounting
principles;
|
(c)
Evaluated the effectiveness of the small bussiness issuer's disclosure
controls and procedures and presented in this report our conclusions
about
the effectiveness of the disclosure controls and procedures, as
of the end
of the period covered by this report based on such evaluation;
and
|
(d)
Disclosed in this report any change in the small business issuer's
internal control over financial reporting that occurred during
the small
business issuer's most recent fiscal quarter (the small business
issuer's
fourth fiscal quarter in the case of an quarterly report) that
has
materially affected or is reasonably likely to materially affect,
the
small business issuer's internal control over financial reporting;
and
|
(a)
all significant deficiencies in the design or operation of internal
controls over financial reporting which are reasonably likely to
adversely
affect the small business issuer's ability to record, process,
summarize
and report financial information;and identified for the registrant's
auditors any material weaknesses in internal controls; and
|
(b)
any fraud, whether or not material, that involves management or
other
employees who have a significant role in the small business issuer's
internal control over financial reporting.
|
I,
Christopher Paton-Gay, certify that:
|
(a)
Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the small business
issuer,
including its consolidated subsidiaries, is made known to us
by others
within those entities, particularly during the period in which
this
quarterly report is being prepared;
|
(b)
Designed such internal control over financial reporting, or causes
such
internal control over financial reporting to be designed under
our
supervision, to provide reasonable assurance regarding the reliability
of
financial reporting and the preparation of financial statements
for
external purposes in accordance with generally accepted acounting
principles;
|
(c)
Evaluated the effectiveness of the small bussiness issuer's disclosure
controls and procedures and presented in this report our conclusions
about
the effectiveness of the disclosure controls and procedures,
as of the end
of the period covered by this report based on such evaluation;
and
|
(d)
Disclosed in this report any change in the small business issuer's
internal control over financial reporting that occurred during
the small
business issuer's most recent fiscal quarter (the small business
issuer's
fourth fiscal quarter in the case of an quarterly report) that
has
materially affected or is reasonably likely to materially affect,
the
small business issuer's internal control over financial reporting;
and
|
(a)
all significant deficiencies in the design or operation of internal
controls over financial reporting which are reasonably likely
to adversely
affect the small business issuer's ability to record, process,
summarize
and report financial information;and identified for the registrant's
auditors any material weaknesses in internal controls; and
|
(b)
any fraud, whether or not material, that involves management
or other
employees who have a significant role in the small business issuer's
internal control over financial reporting.
|