|
(Exact
name of Registrant as specified in its
charter)
|
Nevada
|
91-1980526
|
|
(Jurisdiction
of Incorporation)
|
(I.R.S.
Employer Identification No.)
|
604-700
West Pender Street, Vancouver, BC
|
V6C
1G8
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
ASSETS
|
|||||||
March
31,
|
December
31,
|
||||||
2007
|
2006
|
||||||
CURRENT
ASSETS
|
|||||||
Cash
|
$
|
20,527
|
$
|
-
|
|||
Accounts
receivable
|
4,207
|
8,910
|
|||||
|
|||||||
Total
Current Assets
|
24,734
|
8,910
|
|||||
|
|||||||
OIL
AND GAS PROPERTIES USING FULL COST ACCOUNTING
|
|||||||
|
|||||||
Properties
subject to amortization
|
25,677
|
28,177
|
|||||
Unproved
properties
|
925,544
|
925,544
|
|||||
|
|||||||
Net
Oil and Gas Properties
|
951,221
|
953,721
|
|||||
|
|||||||
OTHER
ASSETS
|
|||||||
|
|||||||
Investments
- Marketable Securities available for sale
|
256,275
|
604,349
|
|||||
|
|||||||
Total
Other Assets
|
256,275
|
604,349
|
|||||
|
|||||||
TOTAL
ASSETS
|
$
|
1,232,230
|
$
|
1,566,980
|
|||
|
|||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
|
|||||||
CURRENT
LIABILITIES
|
|||||||
|
|||||||
Bank
Overdraft
|
$
|
-
|
3,397
|
||||
Accounts
payable
|
400,410
|
$
|
400,410
|
||||
Notes
payable, related party
|
23,658
|
23,658
|
|||||
|
|||||||
Total
Current Liabilities
|
424,068
|
427,465
|
|||||
|
|||||||
Total
Liabilities
|
424,068
|
427,465
|
|||||
|
|||||||
Other
Commitments or Contingencies
|
-
|
-
|
|||||
|
|||||||
STOCKHOLDERS'
EQUITY
|
|||||||
|
|||||||
Common
stock, 100,000,000 shares authorized of $0.001 par value, 58,535,984
and
58,535,984 shares issued and outstanding, respectively
|
58,537
|
58,537
|
|||||
Capital
in excess of par value
|
4,697,260
|
4,697,173
|
|||||
Accumulated
other comprehensive income
|
158,684
|
495,283
|
|||||
Deficit
accumulated during the development stage
|
(4,106,319
|
)
|
(4,111,478
|
)
|
|||
|
|||||||
Total
Stockholders' Equity
|
808,162
|
1,139,515
|
|||||
|
|||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
1,232,230
|
$
|
1,566,980
|
For
the 3 months Ended For the March 31,
|
From
Inception on April 21, 1999 Through March 31,
|
|||||||||
2007
|
2006
|
2007
|
||||||||
REVENUE
|
||||||||||
Royalties
received
|
$
|
401
|
$
|
243
|
$
|
21,275
|
||||
|
||||||||||
EXPENSES
|
||||||||||
|
||||||||||
Cost
of production
|
-
|
-
|
51,753
|
|||||||
Depletion
|
2,500
|
2,500
|
23,267
|
|||||||
General
and administrative
|
34,581
|
291,368
|
4,729,759
|
|||||||
|
||||||||||
Total
Expenses
|
37,081
|
293,868
|
4,804,779
|
|||||||
|
||||||||||
NET
OPERATING LOSS
|
(36,680
|
)
|
(293,625
|
)
|
(4,783,504
|
)
|
||||
|
||||||||||
OTHER
INCOME (EXPENSE)
|
||||||||||
|
||||||||||
Gain
on sale of investments
|
41,839
|
60,161
|
680,477
|
|||||||
Interest
expense
|
-
|
-
|
(3,292
|
)
|
||||||
|
||||||||||
Total
Other Income (Expense)
|
41,839
|
60,161
|
677,185
|
|||||||
|
||||||||||
NET
PROFIT/(LOSS) BEFORE INCOME TAX
|
$
|
5,159
|
$
|
(233,464
|
)
|
$
|
(4,106,319
|
)
|
||
|
||||||||||
Income
tax
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
|
||||||||||
NET
PROFIT/(LOSS)
|
$
|
5,159
|
$
|
(233,464
|
)
|
$
|
(4,106,319
|
)
|
||
|
||||||||||
BASIC
LOSS PER COMMON SHARE
|
$
|
0.00
|
$
|
(0.00
|
)
|
|||||
|
||||||||||
WEIGHTED
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
|
58,535,984
|
53,919,317
|
||||||||
|
||||||||||
COMPREHENSIVE
INCOME (LOSS)
|
||||||||||
|
||||||||||
NET
LOSS
|
$
|
5,159
|
$
|
(233,464
|
)
|
$
|
(4,106,319
|
)
|
||
|
||||||||||
OTHER
COMPREHENSIVE INCOME (LOSS)
|
||||||||||
Unrealized
Gain on Marketable Securities
|
158,684
|
-
|
162,769
|
|||||||
Foreign
Currency Translation
|
725
|
524
|
(4,085
|
)
|
||||||
|
||||||||||
COMPREHENSIVE
INCOME (LOSS)
|
$
|
164,568
|
$
|
(232,940
|
)
|
$
|
(3,947,635
|
)
|
Additional
|
Comprehensive
|
Retained
|
Subscription
|
||||||||||||||||
Shares
|
Amount
|
Paid-in-Capital
|
Income/(Loss)
|
Earnings
|
Receivable
|
||||||||||||||
|
|||||||||||||||||||
Balance
at inception April 21, 1999
|
0
|
0
|
0
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued for services during 1999
|
41,080
|
41
|
5,094
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued for cash during 1999
|
16,000
|
16
|
99,984
|
||||||||||||||||
|
|||||||||||||||||||
Net
Loss for the period ended December 31, 1999
|
|
|
|
|
-96,935
|
|
|||||||||||||
|
|||||||||||||||||||
Balance
at December 31, 1999
|
57,080
|
57
|
105,078
|
0
|
-96,935
|
0
|
|||||||||||||
|
|||||||||||||||||||
Net
Loss for the period ended December 31, 2000
|
|
|
|
|
-27,242
|
|
|||||||||||||
|
|||||||||||||||||||
Balance
at December 31, 2000
|
57,080
|
57
|
105,078
|
0
|
-124,177
|
0
|
|||||||||||||
|
|||||||||||||||||||
Net
Loss for the period ended December 31, 2001
|
|
|
|
|
-65,380
|
|
|||||||||||||
|
|||||||||||||||||||
Balance
at December 31, 2001
|
57,080
|
57
|
105,078
|
0
|
-189,557
|
0
|
|||||||||||||
|
|||||||||||||||||||
Shares
issued for debt reduction during 2002
|
8,000
|
8
|
99,992
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued for services during 2002
|
2,190,150
|
2,190
|
1,092,885
|
||||||||||||||||
|
|||||||||||||||||||
Net
Loss for the period ended December 31, 2002
|
|
|
|
|
-1,240,008
|
|
|||||||||||||
|
|||||||||||||||||||
Balance
at December 31, 2002
|
2,255,230
|
2,255
|
1,297,955
|
0
|
-1,429,565
|
0
|
|||||||||||||
|
|||||||||||||||||||
Shares
issued for services at $.02 per share
|
1,500,000
|
1,500
|
298,500
|
||||||||||||||||
|
|||||||||||||||||||
Rounding
of shares from reverse split
|
2,000
|
2
|
-2
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued for accounts payable at $.05 Per share
|
8,000,000
|
8,000
|
392,000
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued for services at $.015 per share
|
31,729,200
|
31,729
|
444,209
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued for services at $.015 per share
|
9,487,504
|
9,488
|
132,825
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued pursuant to S-8 registration at $.05 per share
|
2,000,000
|
2,000
|
98,000
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued pursuant to S-8 registration at $.05 per share
|
650,000
|
650
|
31,850
|
||||||||||||||||
|
|||||||||||||||||||
Cancellation
of Common Stock
|
-16,691,520
|
-16,692
|
-220,459
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued for cash at $.05 per share
|
3,000,000
|
3,000
|
147,000
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued for cash at $.30 per share
|
100,000
|
100
|
29,900
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued for cash at $.35 per share
|
528,570
|
529
|
184,471
|
||||||||||||||||
|
|||||||||||||||||||
Foreign
Currency Translation
|
-1,718
|
||||||||||||||||||
|
|||||||||||||||||||
Net
Loss for the period ended December 31, 2003
|
0
|
0
|
0
|
|
-1,137,760
|
|
|||||||||||||
|
|||||||||||||||||||
Balance
at December 31, 2003
|
42,560,984
|
42,561
|
2,836,249
|
-1,718
|
-2,567,325
|
0
|
|||||||||||||
|
|||||||||||||||||||
Shares
issued pursuant to S-8 registration at $.20 per share
|
932,500
|
933
|
185,567
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued pursuant to S-8 registration at $.08 per share
|
1,597,500
|
1,598
|
126,202
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued pursuant to S-8 registration at $.08 per share
|
1,000,000
|
1,000
|
79,000
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued pursuant to S-8 registration at $.11 per share
|
85,000
|
85
|
9,265
|
||||||||||||||||
|
|||||||||||||||||||
30/09/2004
|
|||||||||||||||||||
Shares
issued pursuant to S-8 registration at $.20 per share
|
1,385,000
|
1,385
|
275,615
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued for Cash at $.05 per share
|
975,000
|
975
|
47,775
|
||||||||||||||||
|
|||||||||||||||||||
Subscription
Recievable
|
-48,750
|
||||||||||||||||||
|
|||||||||||||||||||
Foreign
Currency Translation
|
-2,367
|
||||||||||||||||||
|
|||||||||||||||||||
Net
Loss for the period ended December 31, 2004
|
0
|
0
|
0
|
0
|
-784,001
|
|
|||||||||||||
|
|||||||||||||||||||
Balance
at December 31, 2004
|
48,535,984
|
48,537
|
3,559,673
|
-4,085
|
-3,351,325
|
-48,750
|
|||||||||||||
|
|||||||||||||||||||
Shares
issued pursuant to S-8 registration at $.13 per share
|
2,850,000
|
2,850
|
367,650
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued pursuant to S-8 registration at $.13 per share
|
2,000,000
|
2,000
|
258,000
|
||||||||||||||||
|
|||||||||||||||||||
Foreign
Currency Translation
|
-725
|
||||||||||||||||||
|
|||||||||||||||||||
Subscription
Recievable
|
48,750
|
||||||||||||||||||
|
|||||||||||||||||||
Net
Loss for the period ended December 31, 2005
|
-472,917
|
||||||||||||||||||
|
|||||||||||||||||||
Balance
at December 31, 2005
|
53,385,984
|
53,387
|
4,185,323
|
-4,810
|
-3,824,242
|
0
|
|||||||||||||
|
|||||||||||||||||||
Shares
issued pursuant to S-8 registration at $.13 per share
|
2,000,000
|
2,000
|
258,000
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued pursuant to S-8 registration at $.08 per share
|
1,600,000
|
1,600
|
126400
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued pursuant to S-8 registration at $.08 per share
|
1,450,000
|
1,450
|
114,550
|
||||||||||||||||
|
|||||||||||||||||||
Shares
issued under Rule 144 at $0.13 per share
|
100,000
|
100
|
12,900
|
||||||||||||||||
|
|||||||||||||||||||
Net
Income for the year ended December 31, 2006
|
500,093
|
(287,236
|
)
|
||||||||||||||||
|
|||||||||||||||||||
Balance
as at December 31, 2006
|
58,535,984
|
58,537
|
4,697,173
|
495,283
|
-4,111,478
|
0
|
|||||||||||||
|
|||||||||||||||||||
Net
Income/(loss) for the quarter ended March 31, 2007
|
(336,599
|
)
|
5,159
|
||||||||||||||||
Balance
as at March 31, 2007
|
58,535,984
|
58,537
|
4,697,173
|
158,684
|
-4,106,319
|
0
|
For
the 3 months March 31,
|
From
Inception on April 21, 1999 Through March 31,
|
|||||||||
2007
|
2006
|
2007
|
||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||
Net
loss
|
$
|
5,159
|
$
|
(233,464
|
)
|
$
|
(4,106,319
|
)
|
||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||||
Depletion
|
2,500
|
2,500
|
23,267
|
|||||||
Loss
on abandonment of property
|
-
|
-
|
25,481
|
|||||||
Gain
on sale of Investment
|
(41,839
|
)
|
(66,328
|
)
|
(716,052
|
)
|
||||
Common
stock issued for services rendered
|
87
|
260,000
|
4,241,960
|
|||||||
Non-cash
Effect from Foreign Currency Translation
|
-
|
725
|
(4,080
|
)
|
||||||
Changes
in operating assets and liabilities:
|
||||||||||
Increase
(Decrease) in bank Overdraft
|
(3,397
|
)
|
-
|
-
|
||||||
Increase
(Decrease) in accounts receivable
|
4,704
|
1,294
|
(4,992
|
)
|
||||||
Increase
(Decrease) in accounts payable - related Party
|
-
|
23,659
|
||||||||
Increase
in accounts payable and accrued expenses
|
-
|
4,015
|
301,276
|
|||||||
|
||||||||||
Net
Cash Used in Operating Activities
|
(32,786
|
)
|
(31,258
|
)
|
(215,800
|
)
|
||||
|
||||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||
|
||||||||||
Proceeds
from sale of investments
|
53,313
|
74,972
|
860,835
|
|||||||
Investing
in new Oil & Gas working interests
|
-
|
(43,523
|
)
|
(825,544
|
)
|
|||||
Expenditures
for oil and gas property development
|
|
-
|
(312,714
|
)
|
||||||
|
||||||||||
Net
Cash Used in Investing Activities
|
53,313
|
31,449
|
(277,423
|
)
|
||||||
|
||||||||||
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
|
20,527
|
191
|
20,527
|
|||||||
|
||||||||||
CASH
AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
-
|
78,848
|
-
|
|||||||
|
||||||||||
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
20,527
|
$
|
79,039
|
$
|
20,527
|
For
the Yera Ended March 31
|
From
Inception on April 21, 1999 Through March 31
|
|||||||||
2007
|
2006
|
2007
|
||||||||
SUPPLEMENTAL
CASH FLOW INFORMATION
|
||||||||||
CASH
PAID FOR:
|
||||||||||
Interest
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Income
taxes
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
NON-CASH
FINANCING ACTIVITIES
|
||||||||||
Common
stock issued for services rendered
|
$
|
-
|
$
|
260,000
|
$
|
3,709,460
|
||||
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,
|
|||||||
2007
|
2006
|
||||||
Net
Profit/(loss) available to common shareholders
|
$
|
5,159
|
$
|
(233,464
|
)
|
||
Weighted
average shares
|
58,535,984
|
53,919,317
|
|||||
Basic
income per share (based on weighted average shares)
|
$
|
0.00
|
$
|
0.00
|
NOTE
3 -
|
OIL
AND GAS PROPERTIES
|
NOTE
4 -
|
INVESTMENT
IN WIN ENERGY
|
NOTE
5 -
|
SIGNIFICANT
TRANSACTIONS
|
NOTE
6 -
|
GOING
CONCERN
|
(A)
|
PLAN
OF OPERATION.
|
(B) |
DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
|
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
|
|
Donald
Jackson Wells
|
|
Joseph
Kane
|
President
/ CFO
|
director
|
director
|