Form
10K 12/31/03
|
42,560,984
|
Not
issued
|
(3,628,570)
|
Corrected/Adjusted
Total
|
38,932,414
|
Carried
from 12/31/03 as corrected
|
38,932,414
|
|
Issued
pursuant to Registration
|
5,000,000
|
|
New
Investment Shares
|
4,603,570
|
|
We
issued during 2004
|
9,603,570
|
|
Total
Issued and Outstanding 12/31/04
|
48,535,984
|
Current
Year Issuances
|
§5/6
|
§4(2)
|
Shares
|
Carried
from 12/31/03 as corrected
|
42,560,984
|
||
During
2004, we made a Registered issuances for services (valued at $680,650,
to
Officers, Directors and others.
|
5,000,000
|
5,000,000
|
|
On
July 15, 2004, we issued new investment shares, pursuant to §4(2),
for cash $48,750.
|
975,000
|
975,000
|
|
Subtotals
Total
Issued and Outstanding 12/31/04
|
5,000,000
|
975,000
|
48,535,984
|
We
enjoy the non-exclusive use of the offices of our CEO, and have no
other
property of our own.
|
period
|
high
bid
|
low
bid
|
volume
|
1st
2002
|
None
|
None
|
None
|
2nd
2002
|
None
|
None
|
None
|
3rd
2002
|
2.30
|
1.75
|
8,000
|
4th
2002
|
5.05
|
2.20
|
22,000
|
1st
2003
|
8.00
|
1.30
|
36,960
|
2nd
2003
|
1.05
|
0.25
|
31,320
|
3rd
2003
|
0.51
|
0.05
|
15,567,840
|
4th
2003
|
0.62
|
0.38
|
57,099,320
|
1st
2004
|
0.58
|
0.24
|
41,233,640
|
2nd
2004
|
0.33
|
0.10
|
12,618,360
|
Reverse
Split: Ten shares to One Share
|
|||
3rd
2004
|
0.18
|
0.12
|
4,784,580
|
4th
2004
|
0.34
|
0.12
|
22,427,460
|
1.
The Department of license and Lease Continuation of Alberta Energy
have
served notice that the Petroleum and Natural Gas Lease containing
the Karr
well has been officially validated.
|
2.
Based on the recent test results carried out by the operator, the
government agency has classified 8-24-63-3W6 as an oil
well.
|
3.
It is a new pool discovery, which is eligible for a Crown royalty
holiday.
|
5.
It is anticipated that first production will begin during May 2004
depending on road accessibility.
|
Long
Term Compensation
|
||||||||
Annual
Compensation
|
Awards
|
Payouts
|
||||||
a
Name
and
Principal
Position
|
b
Year
|
c
Salary
($)
|
d
Bonus
($)
|
e
Other
Annual
Compen-sation
($)
|
f
Restric-ted
Stock
Awards
($)
|
g
Securi-ties
Under-
lying
Options
SARs
(#)
|
h
LTIP
Payouts
($)
|
i
All
Other
Compen-sation
($)
|
Christopher
Paton-Gay,
Chairman,
CEO
|
2004
|
0
|
0
|
0
|
0
|
0
|
0
|
|
2003
|
12,500
|
0
|
0
|
20,0000
|
0
|
0
|
0
|
|
2002
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Donald
Jackson Wells,
Director
|
2004
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
2003
|
0
|
0
|
0
|
5,000
|
0
|
0
|
0
|
|
2002
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Joseph
A. Kane
Director
|
2004
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
2003
|
0
|
0
|
0
|
5,000
|
0
|
0
|
0
|
|
2002
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Name
and Address of Beneficial Owner
|
Share
Ownership
|
%
|
Christopher
Paton-Gay
6160
Genoa Bay Road Chairman/CEO
Duncan
B.C. CanadaDirector
|
185,000
|
0.38
|
Donald
Jackson Wells
3131
S.W. Freeway #46
Houston
TX 77098 Director
|
75,800
|
0.16
|
Joseph
Kane
3131
S.W. Freeway #46
Houston
TX 77098 Director
|
75,800
|
0.16
|
All
Officers and Directors as a Group
|
336,600
|
0.69
|
Total
Issued and Outstanding
|
48,535,970
|
100.00
|
All
Affiliates
|
(336,600)
|
(0.69)
|
Indicated
Total Non-Affiliate Ownership
|
48,199,370
|
99.31
|
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
annual
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 accounting
principles;
|
(c)
Evaluated the effectiveness of the small business 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 annual 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
|
(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.
|
ASSETS
|
|
December
31,
|
December
31,
|
||||
2004
|
2003
|
||||||
CURRENT
ASSETS
|
|||||||
Cash
|
$ | 22,191 | $ | 9,394 | |||
Accounts
Receivable (Net of Allowance of $0)
|
4,809 | - | |||||
Total
Current Assets
|
27,000 | 9,394 | |||||
OIL
AND GAS PROPERTIES USING
|
|||||||
FULL COST ACCOUNTING (Note 3) | |||||||
Properties
Not Subject to Amortization
|
- | 300,672 | |||||
Properties
Being Amortized
|
48,942 | - | |||||
Accumulated
Amortization
|
(10,767) | - | |||||
Net
Oil and Gas Properties
|
38,175 | 300,672 | |||||
OTHER ASSETS | |||||||
Investments
|
181,585 | - | |||||
Total
Other Assets
|
181,585 | - | |||||
TOTAL
ASSETS
|
$ | 246,760 | $ | 310,066 | |||
LIABILITIES
AND STOCKHOLDERS’
EQUITY
|
|||||||
CURRENT LIABILITIES | |||||||
Accounts
Payable
|
$ | 19,053 | $ | 299 | |||
Notes
Payable - Related Party
|
23,659 | - | |||||
Total
Current Liabilities
|
42,712 | 299 | |||||
Total
Liabilities
|
42,712 | 299 | |||||
STOCKHOLDERS’ EQUITY (Note 4) | |||||||
Common
Stock; Par Value $0.001 Per Share; Authorized
|
|||||||
100,000,000
Shares; 48,535,984 and 42,560,984
Shares
|
|||||||
Issued
and Outstanding, Respectively, Retroactively
Restated
|
48,536 | 42,561 | |||||
Capital
in Excess of Par Value
|
3,559,673 | 2,836,249 | |||||
Accumulated
Deficit
|
(3,351,326) | (2,567,325) | |||||
Subscriptions
Receivable
|
(48,750) | - | |||||
Other
Comprehensive Income
|
(4,085) | (1,718) | |||||
Total
Stockholders’ Equity
|
204,048 | 309,767 | |||||
|
|
||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 246,760 | $ | 310,066 | |||
|
|
From
Inception on
|
||||||||||
|
April 21, 1999 | |||||||||
For
the Year Ended
|
through
|
|||||||||
December
31,
|
December 31, | |||||||||
|
|
|
2004
|
2003
|
2004
|
|||||
ROYALTIES RECEIVED | $ | 8,421 | $ | - | $ | 9,421 | ||||
Total
Revenue
|
8,421 | - | 9,421 | |||||||
EXPENSES | ||||||||||
Cost
of Production
|
9,350 | - | 9,350 | |||||||
Depletion
|
10,767 | - | 10,767 | |||||||
General
and Administrative
|
746,824 | 1,134,466 | 3,311,855 | |||||||
Total
Expenses
|
766,941 | 1,134,466 | 3,331,972 | |||||||
NET OPERATING LOSS | (758,520) | (1,134,466) | (3,322,551) | |||||||
OTHER INCOME (EXPENSES) | ||||||||||
Interest
Expense
|
- | (3,294) | (3,294) | |||||||
Gain
(Loss) on Sale of Investments
|
(25,481) | - | (25,481) | |||||||
Total
Other Income (Expenses)
|
(25,481) | (3,294) | (28,775) | |||||||
NET LOSS | $ | (784,001) | $ | (1,137,760) | $ | (3,351,326) | ||||
BASIC LOSS PER COMMON SHARE | $ | (0.02) | $ | (0.03) | ||||||
WEIGHTED AVERAGE NUMBER OF | ||||||||||
SHARES OUTSTANDING | 44,823,100 | 40,647,839 | ||||||||
COMPREHENSIVE INCOME | ||||||||||
Net
Loss
|
$ | (784,001) | $ | (1,137,760) | $ | (3,351,326) | ||||
Other
Comprehensive Income:
|
||||||||||
Foreign
Currency Translation
|
(2,367) | (1,718) | (4,085) | |||||||
|
|
|
||||||||
Comprehensive
Income (Loss)
|
$ | (786,368) | $ | (1,139,478) | $ | (3,355,411) | ||||
|
|
|
Common
Stock
|
Paid-In
|
Comprehensive
|
Subscription
|
Retained
|
|||||||||||||||
Shares
|
Amount
|
Capital
|
Income
|
Receivable
|
Deficit
|
||||||||||||||
Balance at Inception on | |||||||||||||||||||
April
21, 1999
|
41,080 | $ | 41 | $ | 5,094 | $ | - | $ | - | $ | - | ||||||||
Shares Issued for Cash at $0.05 Per Share, | |||||||||||||||||||
Retroactively
Restated
|
16,000 | 16 | 99,984 | - | - | - | |||||||||||||
Net Loss for the Year Ended | |||||||||||||||||||
December
31, 1999
|
- | - | - | - | - | (96,935) | |||||||||||||
Balance, December 31, 1999 | 57,080 | 57 | 105,078 | - | - | (96,935) | |||||||||||||
Net Loss for the Year Ended | |||||||||||||||||||
December
31, 2000
|
- | - | - | - | - | (27,242) | |||||||||||||
Balance, December 31, 2000 | 57,080 | 57 | 105,078 | - | - | (124,177) | |||||||||||||
Net loss for the Year Ended | |||||||||||||||||||
December
31, 2001
|
- | - | - | - | - | (65,380) | |||||||||||||
Balance, December 31, 2001 | 57,080 | 57 | 105,078 | - | - | (189,557) | |||||||||||||
Shares Issued for Debt | |||||||||||||||||||
Reduction,
Retroactively Restated
|
8,000 | 8 99,992 | - | - | - | - | |||||||||||||
Shares Issued for Services at $0.05 Per Share, | |||||||||||||||||||
Retroactively
Restated
|
2,190,150 | 2,190 | 1,092,885 | - | - | - | |||||||||||||
Net Loss for the Year Ended | |||||||||||||||||||
December
31, 2002
|
- | - | - | - | - | (1,240,008) | |||||||||||||
Balance, | |||||||||||||||||||
December
31, 2002
|
2,255,230 | 2,255 | 1,297,955 | - | - | (1,429,565) | |||||||||||||
Shares Issued for Services at $0.02 per Share, | |||||||||||||||||||
Retroactively
Restated
|
1,500,000 | 1,500 | 298,500 | - | - | - | |||||||||||||
Rounding Due to Stock Split | 2,000 | 2 | (2) | - | - | - | |||||||||||||
Shares Issued for Accounts | |||||||||||||||||||
Payable
at $0.05 Per Share
|
8,000,000 | 8,000 | 392,000 | - | - | - | |||||||||||||
Shares Issued for Services at | |||||||||||||||||||
$0.015
Per Share
|
31,729,200 | 31,729 | 444,209 | - | - | - | |||||||||||||
Share Issued for Services at | |||||||||||||||||||
$0.015 Per Share | 9,487,504 | 9,488 | 132,825 | - | - | - |
Common
Stock
|
Paid-In
|
Comprehensive |
Subscription
|
Retained
|
|||||||||||||||
Shares
|
Amount
|
Capital
|
Income
|
Receivable
|
Deficit
|
||||||||||||||
Shares Issued for Accounts | |||||||||||||||||||
Payable
at $0.05 Per Share
|
2,000,000 | 2,000 | 98,000 | - | - | - | |||||||||||||
Shares Issued for Accounts | |||||||||||||||||||
Payable
at $0.05 Per Share
|
650,000 | 650 | 31,850 | - | - | - | |||||||||||||
Cancellation of Common | |||||||||||||||||||
Shares
issued for services
|
(14,691,520) | (14,692) | (122,459) | - | - | - | |||||||||||||
Cancellation of Common | |||||||||||||||||||
Shares
issued for payables
|
(2,000,000) | (2,000) | ( 98,000) | - | - | - | |||||||||||||
Shares Issued for Cash at | |||||||||||||||||||
$0.05
Per Share
|
3,000,000 | 3,000 | 147,000 | - | - | - | |||||||||||||
Shares Issued for Cash at | |||||||||||||||||||
$0.30
Per Share
|
100,000 | 100 | 29,900 | - | - | - | |||||||||||||
Shares Issued for Cash at | |||||||||||||||||||
$0.35
Per Share
|
528,570 | 529 | 184,471 | - | - | - | |||||||||||||
Net Loss for the Year Ended | |||||||||||||||||||
December
31, 2003
|
- | - | - | - | - | (1,137,760) | |||||||||||||
Balance, December 31, 2003 | 42,560,984 | 42,561 | 2,836,249 | (1,718) | - | (2,567,325) | |||||||||||||
Shares Issued for Services | |||||||||||||||||||
at
$.20 Per Share
|
2,317,500 | 2,318 | 461,182 | - | - | - | |||||||||||||
Shares Issued for Services | |||||||||||||||||||
at
$.08 Per Share
|
2,597,500 | 2,597 | 205,202 | - | - | - | |||||||||||||
Shares Issued for Services | |||||||||||||||||||
at
$.11 Per Share
|
85,000 | 85 | 9,265 | - | - | - | |||||||||||||
Shares Issued for | |||||||||||||||||||
Subscription
at $.05 Per Share
|
975,000 | 975 | 47,775 | - | (48,750) | - | |||||||||||||
Foreign Currency Translation | - | - | - | (2,367) | - | - | |||||||||||||
Net Loss for the Year Ended | |||||||||||||||||||
December
31, 2004
|
- | - | - | - | - | (784,001) | |||||||||||||
Balance, December 31, 2004 | 48,535,984 | $ | 48,536 | $ | 3,559,673 | $ | (4,085) | $ | (48,750) | $ | (3,351,326) |
From
Inception on
|
||||||||||
April
21, 1999
|
||||||||||
For
the Year Ended
|
through
|
|||||||||
December
31,
|
December
31,
|
|||||||||
2004
|
2003
|
2004
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
Net
Loss
|
$ | (784,001) | $ | (1,137,760) | $ | (3,351,326) | ||||
Adjustments
to Reconcile Net Loss to Net Cash
|
||||||||||
Provided
(Used) by Operating Activities:
|
||||||||||
Depletion
|
10,767 | - | 10,767 | |||||||
Common
Stock Issued for Services Rendered
|
680,649 | 781,100 | 2,561,959 | |||||||
(Loss)
From Sale of Investments
|
25,481 | - | 25,481 | |||||||
Common
Stock Issued for Retirement of Accounts
Payable
|
- | 432,500 | 532,500 | |||||||
Non-Cash
Effect from Foreign Currency Translation
|
(2,367) | (1,718) | (4,085) | |||||||
Changes
in Operating Assets and Liabilities:
|
||||||||||
Increase
(Decrease) in Accounts Receivable
|
(4,809) | - | (4,809) | |||||||
Increase
(Decrease) in Accounts Payable-Related
Party
|
23,659 | (33,824) | 23,659 | |||||||
Increase
(decrease) in accounts payable
|
18,754 | (95,232) | 19,053 | |||||||
Net
Cash Provided (Used) by Operating Activities
|
(31,867) | (54,934) | (186,801) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
Expenditures
for Oil and Gas Property Development
|
(12,042) | (300,672) | (312,714) | |||||||
Proceeds
from Sale of Investments
|
56,706 | - | 56,706 | |||||||
Net
Cash (Used) by Investing Activities
|
44,664 | (300,672) | (256,008) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
Proceeds
from Issuance of Common Stock
|
- | 365,000 | 465,000 | |||||||
Net
Cash Provided by Financing Activities
|
- | 365,000 | 465,000 | |||||||
NET INCREASE (DECREASE) IN CASH | 12,797 | 9,394 | 22,191 | |||||||
CASH AND CASH EQUIVALENTS AT | ||||||||||
BEGINNING OF YEAR | 9,394 | - | - | |||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 22,191 | $ | 9,394 | $ | 22,191 | ||||
CASH PAID FOR: | ||||||||||
Interest
|
$ | - | $ | 3,294 | $ | 3,294 | ||||
Income
Taxes
|
$ | - | $ | - | $ | - | ||||
NON-CASH FINANCING ACTIVITIES: | ||||||||||
Common
stock issued for services rendered
|
$ | 680,649 | $ | 781,100 | $ | 2,561,959 | ||||
Common
stock issued to retire accounts payable
|
$ | - | $ | 432,500 | $ | 532,500 |
NOTE
1 -
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
NOTE
1 -
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
|
Income
(Loss)
|
Shares
|
Per-Share
|
||||||||
(Numerator)
|
(Denominator)
|
Amount
|
||||||||
For the year ended December 31, 2004: | ||||||||||
Basic EPS | ||||||||||
Income (loss) to common stockholders | $ | (773,234) | 44,823,103 | $ | (0.02) | |||||
For the year ended December 31, 2003: | ||||||||||
Basic EPS | ||||||||||
Income (loss) to common stockholders | $ | (1,137,760) | 40,467,839 | $ | (0.03) | |||||
NOTE
1 -
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
|
December
31,
|
December
31,
|
||||||
2004
|
2003
|
||||||
Deferred tax assets: | |||||||
Net operation loss carry-forwards | $ | 3,373,000 | $ | 2,600,000 | |||
Total
Deferred Tax Assets
|
1,147,000 | 884,000 | |||||
Valuation allowance for deferred tax assets | (1,147,000) | (884,000) | |||||
$ | - | $ | - |
NOTE
1 -
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
|
NOTE
1 -
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
|
December
31,
|
|||||||
2004
|
2003
|
||||||
Balance, beginning of year | $ | (1,718) | $ | - | |||
Effect of currency exchange rate changes | (2,367) | (1,718) | |||||
|
|
||||||
Balance, end of year | $ | (4,085) | $ | (1,718) | |||
|
|
For
the Years Ended
|
|||||||
December
31,
|
|||||||
2004
|
2003
|
||||||
Proved oil and gas producing properties and related | |||||||
lease and well equipment | $ | 48,942 | $ | 450,706 | |||
Accumulated depreciation and depletion | (10,767) | - | |||||
|
|
||||||
Net Capitalized Costs | $ | 38,175 | $ | 450,706 | |||
|
|
For
the Years Ended
|
|||||||
December
31,
|
|||||||
2004
|
2003
|
||||||
Acquisition of Properties | |||||||
Proved
|
$ | - | $ | - | |||
Unproved
|
- | - | |||||
Exploration Costs | - | - | |||||
Development Costs | 48,942 | 300,672 |
For
the Years Ended
|
|||||||
December
31,
|
|||||||
2004
|
2003
|
||||||
Sales | $ | 8,421 | $ | - | |||
Production costs | (9,350) | - | |||||
Depreciation and depletion | (10,767) | - | |||||
Results of operations for producing activities | |||||||
(excluding corporate overhead and interest costs) | $ | (11,696) | $ | - |
Oil
|
Gas
|
|
BBL
|
MMCF
|
|
Proved developed and undeveloped reserves: | ||
Balance,
December 31, 2003
|
-
|
4.67
|
Change
in estimates
|
-
|
-
|
Production
|
-
|
.99
|
Balance, December 31, 2004 |
-
|
3.68
|
Proved developed reserves: |
Oil
|
Gas
|
BBL
|
MMCF
|
|
Beginning of the year ended December 31, 2004 |
-
|
4.68
|
End of the year ended December 31, 2004 |
-
|
3.68
|