Delaware
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93-0962072
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(State
or other jurisdiction of incorporation or organization)
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(IRS
Employer Identification No.)
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Page
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Part
I. Financial Information
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Item
1. Financial Statements
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Consolidated
Balance Sheets at September 30, 2009 and December 31, 2008
(unaudited)
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3
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Consolidated
Statements of Operations for the Three and Nine Months Ended
September 30, 2009 and 2008 and the Cumulative Period from January 1, 2009
through September 30, 2009 (unaudited)
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4
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Consolidated
Statements of Cash Flows for the Nine Months Ended September 30, 2009 and
2008 and the Cumulative Period from January 1, 2009 through September 30,
2009 (unaudited)
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5
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Notes
to Consolidated Financial Statements (unaudited)
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6
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Item
2. Management’s Discussion and Analysis of Financial
Condition and Results of Operations
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8
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Item
4T. Controls and Procedures
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10
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Part
II. Other Information
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Item
1. Legal Proceedings
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11
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Item
1A. Risk Factors
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11
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Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds
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11
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Item
6. Exhibits
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11
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Signatures
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11
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September
30,
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December
31,
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||
2009
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2008
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||
ASSETS
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|||
Cash
and cash equivalents
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$
26
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$ 1,752
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Property
and equipment, net
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1,518
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2,306
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Due
from related party
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-
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10,664
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Oil
and gas asset
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53,750
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-
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Investment
in trading securities, marked-to-market
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-
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17,394
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Total
assets
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$
55,294
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$
34,116
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LIABILITIES
AND SHAREHOLDERS' EQUITY (DEFICIT)
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|||
Current
liabilities:
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Accrued
liabilities
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$
181,098
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$
9,087
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Indebtedness
to related party
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45,402
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-
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Total
current liabilities
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226,500
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9,087
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Commitments
and contingencies
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|||
Shareholders'
equity (deficit):
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|||
Common
stock, $0.01 par value. Authorized 300,000,000; issued and
outstanding 120,000,000 and 9,876,750 shares,
respectively
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1,200,000
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98,768
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Additional
paid-in capital
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8,321,100
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9,346,848
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Deficit
accumulated in development stage
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(9,692,306)
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(9,420,587)
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Total
shareholders' equity (deficit)
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(171,206)
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25,029
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Total
liabilities and shareholders' equity (deficit)
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$
55,294
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$ 34,116
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Three
Months
Ended
September 30,
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Nine
Months
Ended
September 30,
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Cumulative
Period from January 1, 2009 through September 30, 2009
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||||||||||
2009
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2008
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2009
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2008
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|||||||||
General
and administrative expenses:
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Legal
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$
65,446
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$
100
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$
170,297
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$
100
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$
170,297
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|||||||
Other
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39,673
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7,316
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99,200
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15,985
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99,200
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|||||||
Total
general and administrative expenses
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105,119
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7,416
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269,497
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16,085
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269,497
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Loss
from operations
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(105,119)
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(7,416)
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(269,497)
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(16,085)
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(269,497)
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Net
realized loss from sale of trading securities
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-
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129,944
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(1,958)
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(52,360)
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(1,958)
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Net
unrealized holding loss on trading securities
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-
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(32,980)
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-
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(55,848)
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-
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|||||||
Interest
expense
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(231)
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3
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(264)
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(932)
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(264)
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Loss
before income taxes
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(105,350)
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89,551
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(271,719)
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(125,225)
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(271,719)
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Income
tax provision
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-
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-
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-
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-
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-
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|||||||
Net
income (loss)
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$
(105,350)
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$
89,551
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$
(271,719)
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$ (125,225)
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$ (271,719)
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|||||||
Basic
and diluted loss per share
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$
(0.00)
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$
0.01
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$
(0.00)
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$
(0.01)
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||||||||
Weighted
average common shares outstanding (basic and
diluted)
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120,000,000
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9,876,750
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55,039,450
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9,876,750
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Nine
Months Ended
September
30,
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Cumulative
Period
from
January 1, 2009 through
September
30, 2009
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|||||
2009
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2008
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CASH
FLOWS FROM OPERATING ACTIVITIES
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Net loss
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$ (271,719)
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$ (125,225)
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$ (271,719)
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Adjustments
to reconcile net loss to net cash used in operating
activities:
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Depreciation,
depletion and amortization
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788
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-
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788
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Common
stock issued for services
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12,647
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-
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12,647
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Proceeds
from sale of investments
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15,436
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137,507
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15,436
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Unrealized
loss on trading securities
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-
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55,848
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-
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Realized
loss on trading securities
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1,958
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52,360
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1,958
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Changes
in operating assets and liabilities:
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Accounts
payable
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181,098
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(84,254)
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181,098
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Net
cash provided by (used in) operating activities
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(59,792)
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36,236
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(59,792)
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CASH
FLOWS FROM FINANCING ACTIVITIES
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Indebtedness
to related party
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56,066
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(23,263)
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56,066
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Net
cash provided by (used in) financing activities
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56,066
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(23,263)
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56,066
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Net
increase (decrease) in cash
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(3,726)
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12,973
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(3,726)
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Cash
at beginning of period
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3,752
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134
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3,752
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Cash
at end of period
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$
26
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$ 13,107
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$
26
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SUPPLEMENTAL
DISCLOSURES
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Interest
paid in cash
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$
264
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$ 935
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Income
taxes paid in cash
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-
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-
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NON-CASH
INVESTING AND FINANCING TRANSACTIONS
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|||||||
Common
stock issued for oil and gas assets
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$ 53,750
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$
-
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|||||
Forgiveness
of debt by related party
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9,087
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-
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|||||
Officer
accrued compensation paid using trading securities
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-
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19,045
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DESCRIPTION
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TIME/DATE
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AMOUNT
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SOURCE
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Signature
Bonus
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Pre-Day
1
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$12,500,000
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Banks/Pr.
Equity funds
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Farm-In
Fees
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Pre-Day
1
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$10,000,000
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Banks/Pr.
Equity funds
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Unitization
with AGIP (to extend lateral well into OPL 2012)
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Day
1-60
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$10,000,000
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Banks/Pr.
Equity funds
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Salaries
and Operating Expenses
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Day
1-365
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$3,000,000
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Banks/Pr.
Equity funds
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WORK
PROGRAM COSTS
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Day
1-365
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$35,500,000
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DESCRIPTION
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TIME/DATE
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AMOUNT
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SOURCE
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Signature
Bonus
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Pre-Day
1
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$12,500,000
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Banks/Pr.
Equity funds
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Farm-In
Fees
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Pre-Day
1
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$10,000,000
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Banks/Pr.
Equity funds
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Engineering
& Environmental Work (Casing & Design)
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Day
1-60
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$4,500,000
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Banks/Pr.
Equity funds
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Drill
and Complete One Vertical Well @ 4,000 feet
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Day
61-91
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$50,000,000
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JV
Partners and Banks/Pr. Equity funds
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Salaries
and Operating Expenses
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Day
1-365
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$3,000,000
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Banks/Pr.
Equity funds
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WORK
PROGRAM COSTS
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Day
1-365
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$80,000,000
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DESCRIPTION
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TIME/DATE
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AMOUNT
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SOURCE
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Drill
and complete 2 Directional Drilling (DD) wells @ 5,000
feet
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Day
366 - 1095
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$200,000,000
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JV
Partners & Crude Oil Sale & Pr. Equity funds
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Salaries
and Operating Expenses
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Day
366 - 1095
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$5,000,000
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Banks/Pr.
Equity funds
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WORK
PROGRAM COSTS
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Day
366 - 1095
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$205,000,000
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AsherXino
Corporation
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Dated:
November 20, 2009
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By:
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/s/
Bayo O. Odunuga
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Name: Bayo
O. Odunuga
Title: Chief
Executive Officer
Principal Executive Officer
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Dated:
November 20, 2009
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By:
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/s/ Bayo
O. Odunuga
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Name: Bayo
O. Odunuga
Title: Interim
Chief Financial Officer
Interim Principal Financial and Accounting Officer
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