PRECISION PETROLEUM CORP - Recent Material Event

Item 8 begin on Page F-1 of this Form 10-K, and include: (1) Report of Independent Registered Public Accounting Firm; (2) Balance Sheets; (3) Statements of Operations, Statements of Cash Flows, Statement of Stockholders’ Deficit; and (4) Notes to Financial Statements.



 
 
 








Precision Petroleum Corporation
(An Production Stage Company)
Financial Statements
(Expressed in U.S. Dollars)
September 30, 2009


PART I – FINANCIAL INFORMATION
PRECISION PETROLEUM CORPORATION
FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS
    Page
Reports of Independent Registered Public
  Accounting Firm                                                                                                         F-2

Balance Sheets as of September 30, 2009 and 2008                                                              F-3

Statements of Operations for the Years Ended
  September 30, 2009 and 2008                                                                                                  F-4

Statements of Stockholders’ (Deficit) for the
  Years Ended September 30, 2009 and 2008                                                                           F-5

Statements of Cash Flows for the Years
  Ended September 30, 2009 and 2008                                                                                      F-6

Notes to Financial Statements                                                                                                  F-7 – F-18

 
 
 

 
 
 

[
De Joya Griffith & Company, LLC

CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS

 


Report of Independent Registered Public Accounting Firm

To The Board of Directors and Stockholders
Precision Petroleum Corporation
Shawnee, OK 74804

We have audited the accompanying balance sheets of Precision Petrleum Corporation (A Production Stage Company) as of September 30, 2009 and 2008, and the related statements of operations, stockholders’ deficit, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statements based on our audit.

We conducted our audit in accordance with standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Precision Petroleum Corporation (A Production Stage Company) as of September 30, 2009 and 2008, and the results of their operations and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has suffered recurring losses from operations, which raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

De Joya Griffith & Company, LLC

/s/ De Joya Griffith & Company, LLC
Henderson, Nevada
January 13, 2010



2580 Anthem Village Drive, Henderson, NV  89052
Telephone (702) 563-1600  ●  Facsimile (702) 920-8049
 
 
 


PRECISION PETROLEUM CORPORATION
A PRODUCTION STAGE COMPANY
BALANCE SHEETS
(AUDITED)
   
September 30
 
ASSETS
 
Current
     
Cash and cash equivalents
 
$       12,944
$                  -
Accounts receivable
 
14,600
-
Other receivables
 
10,028
-
Participation deposits
 
46,000
-
       
Total current assets
 
83,572
 
-
         
Mineral claims
 
-
 
4,464
Oil and gas properties, net – using full cost
       
accounting net of $26,442 of depletion
 
967,538
 
-
         
Total assets
 
$ 1,051,110
 
$         4,464
         
 
LIABILITIES AND STOCKHOLDERS’ DEFECIT
     
Current Liabilities
       
Cash overdraft
 
$                 -
 
$            274
Accounts payable and accrued liabilities
 
48,342
 
14,148
Advances
 
67,500
 
-
Short-term notes payable
 
993,980
 
-
         
Total current liabilities
 
1,109,822
 
14,422
         
Total liabilities
 
1,109,822
 
14,422
         
Capital stock
       
Authorized:
       
200,000,000 common stock , $0.001
       
Par value; Issued and outstanding:
       
44,400,000 common stock shares
       
(2008: 44,400,000)
 
44,400
 
44,400
Additional paid-in capital
 
82,691
 
67,635
Accumulated deficit
 
(185,803)
 
(122,290)
         
   
(58,712)
 
(9,958)
         
Other comprehensive income (loss):
       
Foreign currency gain (loss)
 
-
 
-
         
Total stockholders’ deficit
 
(58,712)
 
(9,958)
         
Total liabilities and stockholders’ deficit
 
$ 1,051,110
 
$          4,464
See Accompanying Notes
 
F-2
PRECISION PETROLEUM CORPORATION
A PRODUCTION STAGE COMPANY
STATEMENT OF OPERATIONS
(AUDITED)

 
September 30
 
 
Revenues
   
Oil and gas sales
$                 59,723
$                          -
     
Total revenues
59,723
-
     
Expenses
   
Mineral claim expense
4,464
   
Lease operating
32,3113
 
-
Production taxes
4,298
 
-
Depreciation, depletion and amortization
26,442
 
-
Legal and accounting
23,763
 
74,539
Management fees
18,000
 
10,800
Rent expense
-
 
4,500
General and administrative
13,957
 
6,470
       
Total expenses
123,236
 
96,309
       
Net loss
(63,513)
 
(96,309)
       
Other comprehensive income
     
Foreign currency translation adjustment
-
 
       
Net loss
$              (63,513)
 
$               (96,136)
       
Basic loss per share
$                   (0.00)
 
$                   (0.00)
       
Weighted average number of shares
44,400,000
 
82,645,491
Outstanding-basic
     
       
       

See Accompanying Notes

F-3
 
 
 

PRECISION PETROLEUM CORPORATION
STATEMENT OF STOCKHOLDERS’ DEFICIT
A PRODUCTION STAGE COMPANY
For the years ended September 30, 2009 and 2008

 
 
Common Shares
 
 
Additional Paid-In
 
 
Stock
 
 
Accumulated
 
Other Comprehensive
   
 
Number
 
Par Value
 
Capital
 
Payable
 
Deficit
 
Income
 
Total
                           
Balance, as of September 30, 2007
 
$             -
 
$         13,600
 
$          83,135
 
$        (25,981)
 
$                 124
 
$      70,878
Issued stock for cash October 2007
36,000,000
 
36,000
 
(33,000)
 
(3,000)
 
-
 
-
 
-
Issued stock for cash October 2007
48,000,000
 
48,000
 
32,135
 
(80,135)
 
-
 
-
 
-
Donated management services
                         
and rent
-
 
-
 
15,300
-
-
 
-
 
-
 
15,300
Foreign currency gain
-
 
-
 
-
 
-
 
-
 
 
Retirement of shares
(39,600,012)
 
(39,600)
 
39,600
 
-
 
-
 
-
   
Net loss
-
 
-
 
-
 
-
 
(96,309)
 
-
 
(96,309)
                           
Balance, as of September 30, 2008
44,400,000
 
44,400
 
67,635
 
-
 
(122,290)
 
 
(9,958)
Payable paid by previous directors and
                         
officers
-
 
-
 
15,056
 
-
 
-
 
-
 
15,056
Foreign currency loss
-
 
-
 
-
 
-
 
-
 
(297)
 
(297)
Net loss
-
 
-
 
-
 
-
 
(63,513)
 
-
 
(63,513)
                           
Balance, as of September 30, 2009 (audited)
44,400,000
 
$   44,400
 
$         82,691
 
$                    -
 
$      (185,803)
 
$                      -
 
$    (58,712)


See Accompanying Notes

F-4
 
 
 

PRECISION PETROLEUM CORPORATION
A PRODUCTION STAGE COMPANY
STATEMENT OF CASH FLOWS
(AUDITED)

 
September 30
 
 
Operating Activities
   
Net loss
$           (63,513)
$           (96,309)
Adjustments to reconcile net loss to net cash used by operating  activities:
   
Depletion
26,442
-
Mineral claim expense
4,464
-
Donated management fees and rent
-
15,300
Change in assets and liabilities
     
Accountants receivables
(14,600)
 
-
Other receivables
(10,028)
 
-
Accounts payable and accrued liabilities
34,194
 
13,114
       
Cash used in operating activities
(23,041)
 
(67,895)
       
Investing Activities
     
Acquisition of oil and gas properties
(993,980)
 
-
Participation deposits
(46,000)
 
-
       
Cash used in investing activities
(1,039,980)
 
-
       
Financing Activities
     
Cash overdraft
(274)
 
Proceeds from short term note payable
993,980
 
-
Contribution of capital
15,056
 
-
Advances
67,500
 
-
       
Cash provided by financing activities
1,076,262
 
       
Effect of foreign currency translation
(297)
 
Cash, beginning of the year
-
   
       
Increase (decrease) in cash during the year
12,944
 
(67,448)
       
Cash, end of the year
$            12,944
 
$                      -
       
Supplemental disclosure of cash flow information:
     
Cash paid during the year for income taxes
$                      -
 
$                      -
Cash paid during the year for interest
$                      -
 
$                      -

See Accompanying Notes

F-5
 
 
 
PRECISION PETROLEUM CORPORATION
(A Production Stage Company)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2009 AND 2008
(Audited)



Note 1                      Nature and Continuance of Operations

Precision Petroleum Corporation (the “Company”) was incorporated under the name of “Tidewater Resources, Inc.” under the laws of the State of Nevada on February 7, 2007.  On October 27, 2008 the Company changed its name to Precision Petroleum Corporation.  The Company has established its corporate offices in Shawnee, Oklahoma.  The Company is engaged primarily in the acquisition, development, production, exploration for, and the sale of oil, gas and natural gas liquids.  All business activities are conducted in Oklahoma and the Company sells its oil and gas to a limited number of domestic purchasers.   The company does not operate the leases they own a working and overriding royalty interest and are invoiced monthly for joint operating costs and receive revenues from third party purchasers of oil and gas chosen by the operators.

These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year.  Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classifications of assets and liabilities should the Company be unable to continue as a going concern.  At September 30, 2009, the Company had not yet achieved profitable operations, has accumulated losses of $185,803 since its inception, has a working capital deficiency of $1,026,250 and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company’s ability to continue as a going concern.  The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.  Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available. The accompanying financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might result from the outcome of this uncertainty.

Note 2
Summary of Significant Accounting Policies

The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America.  Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates, which have been made using careful judgment.  Actual results may vary from these estimates.
 
F-6
The financial statements have, in management’s opinion, been properly prepared within the framework of the significant accounting policies summarized below:

Property and equipment

Equipment is recorded at cost.  Depreciation is provided using the straight line method.  As of September 30, 2009 the Company did not have any property or equipment.

Oil and Gas Properties

The Company follows the full cost method of accounting for oil and gas operations whereby all costs of exploring for and developing oil and gas reserves are initially capitalized on a country-by-country (cost center) basis.  Such costs include land acquisition costs, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling and overhead charges directly related to acquisition and exploration activities.

Costs capitalized, together with the costs of production equipment, are depleted and amortized on the unit-of-production method based on the estimated gross proved reserves.  Petroleum products and reserves are converted to a common unit of measure, using 6 MCF of natural gas to one barrel of oil.

Costs of acquiring and evaluating unproved properties are initially excluded from depletion calculations.  These unevaluated properties are assessed annually to ascertain whether impairment has occurred.  When proved reserves are assigned or the property is considered to be impaired, the cost of the property or the amount of the impairment is added to costs subject to depletion calculations.

Future net cash flows from proved reserves using period-end, non-escalated prices and costs are discounted to present value and compared to the carrying value of oil and gas properties.

Proceeds from a sale of petroleum and natural gas properties are applied against capitalized costs, with no gain or loss recognized, unless such a sale would alter the rate of depletion by more than 25%.

Assets Retirement Obligations

The Company recognizes the fair value of a liability for an assets retirement obligation in the year in which it is incurred when a reasonable estimate of fair value can be made.  The carrying amount of the related long-lived asset is increased by the same amount as the liability.

F-7
Changes in the liability for an asset retirement obligation due to the passage of time will be measured by applying an interest method of allocation.  The amount will be recognized as an increase in the liability and an accretion expense in the statement of operations.  Changes resulting from revisions to the timing or the amount of the original estimate of undiscounted cash flows are recognized as an increase or a decrease in the carrying amount of the liability for an asset retirement obligation and the related asset retirement cost capitalized as part of the carrying amount of the related long-lived asset.  At September 30, 2009, the Company’s estimate of asset retirement obligation was not material.

Impairment of Long-Lived Assets

The Company has adopted FASB Codification Topic 360-10 (“ASC 360-10”), “Property, Plant, and Equipment”, which requires that long-lived assets to be held and used be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  Oil and gas properties accounted for using the full cost method of accounting, a method utilized by the Company, are excluded from this requirement, but will continue to be subject to the ceiling test limitations.  At September 30, 2009, the depreciation, depletion and amortization charge included $0 related to the ceiling test limitations.

Income Taxes

The Company accounts for income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”)  Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
As of September 30, 2009, the Company has a net operating loss carryforward of approximately $185,803 available to offset taxable income through 2029.

Basic and Diluted Loss Per Share

Basic loss per share is computed using the weighted average number of shares outstanding defined by FASB Accounting Standards Codification Topic 260, “Earnings Per Share” during the period.  Fully diluted earnings (loss) per share are computed similar to basic income (loss) per share except that the denominator is increased to include the number of common stock equivalents (primarily outstanding options and warrants).  Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options and warrants, using the treasury stock method, at either the beginning of the respective period presented or the date of issuance, whichever is later, and only if the common stock equivalents are considered dilutive based upon the Company’s net income (loss) position at the calculated date.  Diluted loss per share has not been provided as it would be anti-dilutive.  As of September 30, 2009, the Company did not have any outstanding stock options or warrants.

F-8
Financial Instruments

The carrying value of cash, accounts receivable, other receivable, accounts payable and accrued liabilities, short-term notes payable and due to related party approximates their fair value because of the short maturity of these instruments.  Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.

Revenue Recognition

Revenue from the sale of the oil and gas production is recognized when title passes from the operator of the oil and gas properties to purchasers.

Newly Issued Accounting Pronouncements

In June 2009 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) 105, “Generally Accepted Accounting Principles”.  ASC 105 establishes the Codification as the sole source of authoritative accounting principles to be applied in the preparation of financial statements in conformity with GAAP.  The adoption of this statement did not have a material impact on the Company’s financial position or results of operations.

Reclassifications-

Certain amounts in the financial statements for 2008 have been reclassified to conform with 2009 presentation.


Note 3
Oil and Gas Properties

 
At September 30, 2009 and 2008 the producing and undeveloped oil and gas properties were as follows:


F-9

 
 
 

 
Cost
   
Oklahoma Properties
$993,980
$               -
Less: Accumulated, depletion
     26,442
                -
 
$967,538
$              -

 
 
 
                              
                                 

 
The following are descriptions of the oil and gas activities in 2009 and 2008:

a)  
Effective July 1, 2009, the Company purchased various producing properties located in Garvin County, Pottawatomie County, Nowata County and Seminole County, Oklahoma.  The Company utilized short-term financing to acquire these properties. The various net revenue acquired range from .2808% to a 67.97% net revenue interest.

 


       
OIL & GAS RESERVES
 
 
 
EQUIPTMENT
                            PRECISION INTEREST
 
%OF EQUIP. COST
PURCHASED                        $ VALUE DISCOUNTED 10%
 
TOTAL
PURCHASED
         
Jessica 23-A
         
80 Lufkin Pumping Unit
$5,000.00
18.029649600%
901.48
   
2800 ft 2/38 tubing
$4,200.00
18.029649600%
757.25
   
2800 ft 3/4 rods
$1,400.00
18.029649600%
252.42
   
2 100 BBL stock tanks
$2,000.00
18.029649600%
360.59
   
1 100 BBL water tank
$500.00
18.029649600%
90.15
   
Well head & misc fittings
$1,000.00
18.029649600%
180.30
   
2000 ft of 5 ½ casing
$5,700.00
18.029649600%
1,027.69
   
Total
$19,800.00
 
$3,569.88
$10,911.56
$14,481.44
           
Karysn
         
320 Lufkin pumping unit
$40,000.00
19.650000000%
7,860.00
   
4100 ft 2 7/8 tubing
$9,225.00
19.650000000%
1,812.71
   
4100 ft 7/8 rods
$2,050.00
19.650000000%
402.83
   
5x10 free water knock out
$3,500.00
19.650000000%
687.75
   
2 202 stock tanks
$7,500.00
19.650000000%
1,473.45
   
1 200 BBL fiberglass water tank
$2,000.00
19.650000000%
393.00
   
well head & misc fittings
$1,000.00
19.650000000%
196.50
   
3500 ft 5 ½ casing
$11,550.00
19.650000000%
2,269.58
   
Total
$76,825.00
 
$15,096.11
$102,940.00
$118,036.11
           
Heath
         
3500 ft 5 ½ casing
$11,550.00
7.800000000%
900.90
   
320 Lufkin pumping unit
$40,000.00
7.800000000%
3,120.00
   
4150 2 7/8 tubing
$9,337.50
7.800000000%
728.33
   
4150 7/8 rods
$2,075.00
7.800000000%
161.85
   
5 x 10 free water knock out
$3,500.00
7.800000000%
273.00
   
2 202 stock tanks
$7,500.00
7.800000000%
585.00
   
1 200 BBL fiberglass water tank
$2,000.00
7.800000000%
156.00
   
well head & misc fittings
$1,000.00
7.800000000%
78.00
   
Total
$76,692.50
7.800000000%
$6,003.08
$44,599.00
$50,602.08
           
Thompson#1
         
114 Lufkin pumping unit
$6,000.00
23.122201400%
1,387.33
   
5000 ft 2 7/8 tubing
$11,250.00
23.122201400%
2,601.25
   
5000 ft ¾ rods
$2,500.00
23.122201400%
578.06
   
2 202 stock tanks
$7,500.00
23.122201400%
1,734.17
   
1 4x20 heater treater
$3,500.00
23.122201400%
809.28
   
well head & misc fittings
$1,000.00
23.122201400%
231.22
   
1 200 BBL fiber glass
$2,000.00
23.122201400%
462.44
   
approx 300 ft recoverable 5 ½ casing
$9,900.00
23.122201400%
2,289.10
   
Total
$43,650.00
 
$10,092.84
$239,564.78
$249,657.62
           
Teresa
         
228 Lufkin pumping unit
$25,000.00
18.858540000%
4,714.64
   
6300 ft 2 7/8 tubing
$14,175.00
18.858540000%
2,673.20
   
6300 ft 2 7/8 rods
$3,150.00
18.858540000%
594.04
   
2 210 stock tanks
$7,500.00
18.858540000%
1,414.39
   
1 200 BBL fiber glass water tank
$2,000.00
18.858540000%
377.17
   
well head & misc fittings
$1,000.00
18.858540000%
188.59
   
3500 ft of 5 ½ casing
$11,550.00
18.858540000%
2,178.16
   
Total
$64,375.00
 
$12,140.19
$27,154.94
$39,295.13
           
Mason Burns
         
160 National pumping unit
$10,000.00
17.852780000%
1,785.28
   
2 210 stock tanks
$7,500.00
17.852780000%
1,338.96
   
1 200 fiberglass water tank
$2,000.00
17.852780000%
357.06
   
6100 ft 2 7/8 tubing
$13,725.00
17.852780000%
2,450.29
   
6100 ft ¾ rods
$3,050.00
17.852780000%
544.51
   
4000 ft 5 ½ casing
$13,200.00
17.852780000%
2,356.57
   
well head & misc fittings
$1,000.00
17.852780000%
178.53
   
4x20 heater treater
$2,500.00
17.852780000%
446.32
   
Total
$52,975.00
 
$9,457.51
$24,151.36
$33,608.87
           
White 12-1
         
160 American pumping unit
$8,500.00
67.968750000%
5,777.34
   
1 5x10 free water knock out
$3,000.00
67.968750000%
2,039.06
   
1 200 BBL fiberglass water tank
$2,000.00
67.968750000%
1,359.38
   
4600 ft 2 7/8 tubing
$10,350.00
67.968750000%
7,034.77
   
4600 ft 2 7/8 rods
$2,000.00
67.968750000%
1,359.38
   
well head & misc fittings
$1,000.00
67.968750000%
679.69
   
3000 ft of 4 ½ casing
$8,550.00
67.968750000%
5,811.33
   
Total
$35,400.00
 
$24,060.94
$213,180.66
$237,241.60
           
Crown #1 & #3
         
2 202 stock tanks
$7,500
8.789062500%
659.18
   
2 228 pumping unit
$60,000.00
8.789062500%
5,273.44
   
9000 ft 2 7/8 tubing
$20,250.00
8.789062500%
1,779.79
   
9000 ft 2 7/8 rods
$4,500.00
8.789062500%
395.51
   
well head & misc fittings
$2,000.00
8.789062500%
175.78
   
7000 ft of 2 ½ casing
 
8.789062500%
2,030.27
   
Total
$117,350.00
 
$10,313.96
$16,631.61
$26,945.57
           
Quinlan #1
         
228 Lufkin pumping unit
$25,000.00
22.394540000%
5,598.64
   
2 x 202 stock tank
$7,500.00
22.394540000%
1,676.59
   
1 x 200 fiberglass water tank
$3,500.00
22.394540000%
783.81
   
5 x 15 gun barrel
$1,000.00
22.394540000%
223.95
   
4600 ft of 2 7/8 tubing
$10,350.00
22.394540000%
2,317.83
   
4600 ft of ¾ rods
$2,300.00
22.394540000%
515.07
   
well head & misc fittings
$1,000.00
22.394540000%
223.95
   
3000 ft 5 ½ casing
$9,900.00
22.394540000%
2,217.06
   
Total
$60,550.000
 
$13,559.89
$96,716.00
$110,275.89
           
Quinlan #2
         
228 lufkin pumping unit
$25,000.00
0.280800000%
70.20
   
1 202 stock tank
$3,500.00
0.280800000%
9.83
   
10 x 15 gun barrel
$2,500.00
0.280800000%
7.02
   
4650 ft 2 7/8 tubing
$10,462.50
0.280800000%
29.38
   
4650 ft ¾ rods
$2,325.00
0.280800000%
6.53
   
well head & misc fittings
$1,000.000
0.280800000%
2.81
   
3,000 ft 5 ½ casing
$9,900.00
0.280800000%
27.80
   
Total
$54,687.50
 
$153.56
$556.50
$710.06
           
Quinlan #3
         
2 x 210 stock tanks
$6,500.00
8.775000000%
570.38
   
5 x 10 free water knock out
$3,000.00
8.775000000%
263.25
   
well head & misc fittings
$1,000.00
8.775000000%
87.75
   
3000 ft 5 ½ casing
$9,900.00
8.775000000%
868.73
   
Total
$20,400.00
 
$1,790.10
$58,819.09
$60,609.19
           
Jameson 5 wells 1 SWD
         
2 100 BBL stock tanks
$3,000.00
100.0000000000%
3,000.00
   
1 tri plex pump
$3,500.00
100.0000000000%
3,500.00
   
1 4 x 10 gun barrel
$2,000.00
100.0000000000%
2,000.00
   
5 #25 pumping units
$7,500.00
100.0000000000%
7,500.00
   
2000 ft 2 3/8 tubing
$4,400.00
100.0000000000%
4,400.00
   
2000 ft ¾ rods
$1,000.00
100.0000000000%
1,000.00
   
6 well heads & misc fittings
$2,500.00
100.0000000000%
2,500.00
   
Total
$23,900.00
 
$23,900.00
 
$23,900.00
           
Sharon #1
         
2 210 stock tanks
$7,500.00
6.340000000%
475.50
   
1 4x20 heater treater
$3,500.00
6.340000000%
221.90
   
1 2x8 gas separator
$2,500.00
6.340000000%
158.50
   
1 200 BBLS fiberglass water tank
$3,000.00
6.340000000%
190.20
   
4900 ft 2 7/8 tubing
$9,800.00
6.340000000%
621.32
   
4900 ft ¾ sucker rods
$4,900.00
6.340000000%
310.66
   
1 228 ft Lufkin pumping units
$17,500.00
6.340000000%
1,109.50
   
Total
$48,700.00
 
$3,087.58
$20,325.33
$23,412.91
           
Ward McNeil
         
2 210 stock tanks
$7,500.00
22.623040000%
1,696.73
   
1 4x20 heater treater
$3,500.00
22.623040000%
791.81
   
48000 ft 2 3/8 tubing
$7,200.00
22.623040000%
1,628.86
   
48000 ft sucker rods
$4,800.00
22.623040000%
1,085.91
   
Total
$23,000.00
 
5,203.30
 
$5,203.30
           
East & Westmoreland
 
3% Overriding
     
           
Total Equipment & Oil & Gas Properties
         
 
$993,979.77
 
$718,575.00
$138,428.94
$855,550.83

 
 
 

b)  
On January 27, 2009, the Company entered into a Participation Agreement with Nitro Petroleum Incorporated (“Nitro”), pursuant to which the Company obtained from Nitro the right to participate in Phase One of Nitro’s Powder river Basin Project in Montana.  Nitro acquired certain oil and gas leases in the Powder River Basin in Montana pursuant to a Memorandum of Understanding dated January 26, 2009 with REDS, LLC.

Pursuant to the terms of the Participation Agreement, Nitro is being carried to the tanks with respect to a 25% working interest in Phase One of the Powder River Basin Project.  The Company is acquiring a 37.5% working interest in Phase One of the Powder River Basin Project in exchange for an agreement to pay 50% of the expenses of Phase One of the Powder River Basin Project.  Additionally, the Company shall have the right to purchase up to a 37.5% working interest in Phase Two and Phase Three of the Powder River Basin Project upon substantially the same terms as Phase One.  Nitro will be the operator of all wells drilled during Phase One of the Powder River Basin Project.

During the year the Company paid $46,000 towards the Participation Agreement with Nitro. The payments have been recorded in the financial statements as participation deposits.
 
 
Note 4                      Mineral Property

Pursuant to a mineral property staking and Net Smelter Returns Royalty agreement (the “Agreement”) dated April 19, 2007, the Company acquired a 50% undivided right, title and interest in a gold/silver/copper mineral claim unit of the Kammatika Claims (the “Claims”), located in the province of British Columbia, Canada for a cash payment of $4,464.  As of September 30, 2009, the Company’s claims have expired.  Consequently, the Company expensed the claims during the year ended September 30, 2009.
 
 
F-12
 

Note 5                      Notes Payable and Short-Term Financing

At September 30, 2009, the Company had a short term note payable to Sierra Growth, Inc., an investment company located in Charlestown, Nevis.  This note bears an interest rate of 10% per annum and is due upon demand.  If the Holder makes a demand for repayment, the Company must repay the principal balance of this note and accrued and unpaid interest thereon within sixty (60) days.  No interest has been accrued on this note as of September 30, 2009 and has a principal balance of $751,714.
 
 
At September 30, 2009, the Company had a short term note payable to Global Energy, LLC an oil and gas company located in Shawnee, Oklahoma.  This note bears an interest rate of 10% per annum and is payable upon demand.  If the Holder makes a demand for repayment, the Company must repay the principal balance of this note and accrued and unpaid interest thereon within sixty (60) days.  No interest has been accrued on this note as of September 30, 2009 and has a principal balance of $242,266.
 
 
 
The company has also obtained financing from a consultant with a balance of $20,518 (2008, $0) and also has received advances of $67,500 (2008, $0) from an unrelated third party.  The balances are due on demand and are not interest bearing.


Note 6                      Income Taxes

At September 30, 2009, the Company has accumulated net operating loss carry forwards totaling $185,803, which may be applied against future years income and expire commencing in 2022.

Significant components of the Company’s future tax assets and liabilities, after applying enacted corporate income tax rates, are as follows:

 


 
Future income tax assets
   
Net tax operating loss carryforward
$185,803
$122,290
Less: Valuation allowance
(185,803)
(122,290)
 
$             -
$              -

 
F-13
 
 
The Company recorded no income tax expense for the years ended September 30, 2009 and 2008, as a result of the net loss recognized in each of these years.  Further, an income tax benefit was not recognized in either of the years due to the uncertainty of the Company’s ability to recognize the benefit from the net operating losses and, therefore, has recorded a full valuation allowance against the deferred tax assets.

The benefit for income taxes is different from the amount computed by applying the U.S. statutory corporate federal income tax rate to pre-tax loss as follows:
 

 
Amount
Amount
Income tax benefit computed at the
   
Statutory rate of 35%
$ 65,031
$ 42,802
Increase (reduction) in tax benefit
   
Resulting from:
   
     
Permanent items
-
-
Valuation allowance
( 65,031)
( 42,802)
     
Income tax benefit
$             -
$            -



 
Note 7             Related Party Transactions

During the year ended September 30, 2009 and 2008, the Company incurred management fees charged by a director of the Company totaling $18,000 and $0.

Note 8                      Common Stock

 
The Company’s capitalization is 200,000,000 common shares with par value of $.001 per share. On November 17, 2008, the Company authorized a forward stock split of twelve for one (12:1) of our total issued and outstanding shares of common stock and was effective January 8, 2009.  All references in these financial statements to number of shares, price per share, and weighted average number of common shares outstanding prior to the 12:1 forward stock split have been adjusted to reflect the split on a retroactive basis unless otherwise noted.

 
a. Upon incorporation on February 7, 2007, the Company issued one (12) post split share of common stock to its founding officer and director for nominal consideration.

 
b.            In October 2007, the Company issued 36,000,000 post split shares of common stock at $0.001 per share to directors of the Company for gross proceeds of $3,000.

 
c.            In October 2007, the Company issued 48,000,000 post split shares of common stock at $0.02 per share for gross proceeds of $80,135.

 
 
F-14
 
d.            In September 2008, the Company’s officers and directors resigned from their positions with the Company. In connection with such resignations, such officers and directors surrendered all of their shares of the Company’s common stock, totaling 39,600,012 post split shares, which were then cancelled and returned to treasury. No compensation was paid for the surrender of these shares.

Note 9                      Supplemental Oil and Gas Information (Unaudited)
 
 


 
Full Cost
 
 
 
 
Capitalized costs Relating to Oil and Gas
     
Producing Activities at September 30, 2009
     
and 2008
     
Unproved oil and gas properties
$                 -
 
$                    -
Proved oil and gas properties
993,980
 
-
Support equipment and facilities
                   -
 
                      -
 
993,980
 
-
Less accumulated depletion,
     (26,442)
 
                      -
Net capitalized costs
$    967,538
 
$                    -
Costs Incurred in Oil and Gas Producing
     
Activities for the Year Ended September 30, 2009
     
and 2008
     
Property acquisition costs
     
Proved
$   993,980
 
$                -
Unproved
$                -
 
$                -
Exploration costs
$                -
 
$                -
Development costs
$                -
 
$                -
Amortization rate per equivalent barrel of production
$             25
 
$                -
Results of Operations for Oil and Gas Producing
     
Activities for the Year Ended September 30, 2009
     
and 2008
     
Oil and gas sales
$     59,723
 
$               -
Production costs
36,610
 
-
Exploration costs
-
 
-
Depreciation, depletion, and amortization
       26,442
 
                -
 
    (   3,329)
 
                -
Income tax expense
                  -
 
                -
Results of operations for oil and gas producing
     
activities (excluding corporate overhead and
     
financing costs)
$  (  3,329)
 
               -



Reserve Information

The following estimates of proved and proved developed reserve quantities and related standardized measure of discounted net cash flow are estimates only, and do not purport to reflect realizable values or fair market values of the Company’s reserves.  The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries are more imprecise than those of producing oil and gas properties.  Accordingly, these estimates are expected to change as future information becomes available.  All of the Company’s reserves are located in the United States.

 
F-15
 
Proved reserves are estimated reserves of crude oil (including condensate and natural gas liquids) and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions.  Proved developed reserves are those expected to be recovered through existing wells, equipment, and operating methods.

The standardized measure of discounted future net cash flows is computed by applying year-end prices of oil and gas (with consideration of price changes only to the extent provided by contractual arrangements) to the estimated future production of proved oil and gas reserves, less estimated future expenditures (based on year-end costs) to be incurred in developing and producing the proved reserves, less estimated future income tax expenses (based on year-end statutory tax rates, with consideration of future tax rates already legislated) to be incurred on pretax net cash flows less tax basis of the properties and available credits, and assuming continuation of existing economic conditions.  The estimated future net cash flows are then discounted using a rate of 10 percent a year to reflect the estimated timing of the future cash flows.


 
 
 

 
 
 
 
 
Oil
(Bbls)
 
Gas
(Mcf)
 
Oil
(Bbls)
 
Gas
(Mcf)
Proved developed and undeveloped reserves
             
Beginning of year
-
 
-
 
-
 
-
Revisions of previous estimates
-
 
-
 
-
 
-
Improved recovery
             
Purchases of minerals in place
29,770
 
58,290
 
-
 
-
Extensions and discoveries
-
 
-
 
-
 
-
Production
(838)
 
(1,277)
 
-
 
-
Sales of minerals in place
_________
 
_________
 
________
 
_________
End of year
        28,932
 
        57,013
 
                -
 
                 -
Proved develop reserves
             
Beginning of year
-
 
-
 
-
 
-
End of year
28,932
 
57,013
 
-
 
-
Standardized Measure of Discounted Future
             
Net Cash Flows at September 30, 2009 & 2008
             
Future cash inflows
   
$1,959,859
     
-
Future production costs
   
715,002
     
-
Future development costs
   
-
     
-
Future income tax expenses
   
    435,700
     
                -
               
Future net cash flows
   
809,157
     
-
10% annual discount for estimated
             
Timing of cash flows
   
  (257,113)
     
                -
Standardized measures of discounted future
             
net cash flows relating to proved oil and
             
gas reserves
   
$  534,044
     
$             -
               
The following reconciles the change in the
             
Standardized measure of discounted
             
Future net cash flow during 2009 and 2008.
             
Beginning of year
   
$              -
     
$             -
Sales of oil and gas produced, net of
             
production costs
   
(23,112)
     
-
Net changes in prices and
             
production costs
   
-
     
-
Extensions, discoveries, and improved
             
recovery, less related costs
   
-
     
-
Development costs incurred during the year
             
which were previously estimated
   
-
     
-
Net change in estimated future development
             
costs
   
-
     
-
Revisions of previous quantity estimates
   
-
     
-
Net change from purchases and sales of
             
minerals in place
   
1,267,969
     
-
Change of discount
   
(275,113)
     
-
Net change in income taxes
   
(435,700)
     
-
Other
   
                  -
     
                -
End of year
   
$    534,044
     
$              -

 
 
 

NOTE 10 – PRODUCTION STAGE

The company was an exploration stage company in the years prior to the year ended September 30, 2009.

NOTE 11 –SUBSEQUENT EVENTS

The Company has acquired additional interests in oil and gas leases that it presently owns after the fiscal year ended September 30, 2009.

The Company’s acquisition includes a two percent working interest in the Quinlan #1 lease, which brings their total ownership to 30.710938% working interest and an additional eleven percent in the Teresa #1 lease, which brings their total ownership to 37.074218% working interest.   These interests were acquired from former working interest owners who were delinquent in their joint interest billing and the Company acquired their interest for the amounts owed the operator of these leases.  These amounts were $1,999 for the Quinlan #1 and $6,522 for the Teresa #1.





F-17
 
 
 


ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.


ITEM 9A.                      Controls and procedures
 
Disclosure Controls and Procedures  
 
 
The Company, under the supervision and with the participation of the Company’s management, including the Company’s President and Chief Financial Officer, performed an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of December 15, 2009. Based on that evaluation, the Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2009.
 
 

 
ITEM 9(A)T.  INTERNAL CONTROLS AND PROCEDURES
 
Management’s Report on Internal Control over Financial Reporting
 
 
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in the Securities Exchange Act of 1934 Rule 13a-15(f).  Our Chief Financial Officer conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO Framework").
 
 
Based on this evaluation, management has concluded that our internal control over financial reporting was effective as of September 30, 2009.
 
 
This annual report does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by the Company’s independent registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report on internal control in this annual report.
 
 
Changes in Internal Control over Financial Reporting
 
There were no changes in internal control over financial reporting that occurred during the last fiscal quarter covered by this report that have materially affected, or are reasonably likely to affect, the Company’s internal control over financial reporting.
 
 
ITEM 9B.                      OTHER INFORMATION

None.


11 
 
 

PART III


ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND CORPORATE GOVERNANCE: COMPLIANCE WITH SECTION 16A OF THE EXCHANGE ACT

Directors and Executive Officers

The following sets forth the names, ages and positions of our current directors and executive officers (and persons nominated or chosen to become such) including their term(s) of office as a director and the period during which the person has served: a brief description of the person’s business experience during the past five (5) years; and if a director, or any other directorship held in reporting companies naming such company.

Name                                           Age                                Offices Held

Richard Porterfield                      63                                Director; President

James Kirby                                 49                                Chief Financial Officer

Sharon Farris                               49                                Secretary

Mr. Richard Porterfield – member of the Board of Directors; President
 
Mr. Porterfield was appointed as a member of the Corporation’s Board of Directors and as the Corporation’s President and Secretary on January 20, 2009. Mr. Porterfield has been working in the oil and gas industry for over 30 years. From November 2008 to May 2009, he worked as a Geologist for Nitro Petroleum Corp. From January 2004 to April 2006, he worked as a geologist for Hoco, Inc. and from November 2006 to March 2008, he worked as a geologist for Bentrock, Inc. Mr. Porterfield earned an AA degree in Business Management from Rose State College in Midwest City, Oklahoma.
 
Mr. James Kirby – Chief Financial Officer
 
Mr. Kirby was appointed as the Company’s Chief Financial Officer on June 3, 2009. From September 1997 to present he has been the Vice President of First National Bank of Shawnee. Mr. Kirby has also been a member of the Board of Directors of Nitro Petroleum Incorporated since December 2007. Nitro Petroleum is a public company registered with the SEC. He studied banking at Seminole College and business at Oklahoma State University.
 
 
The Company has not entered into any transaction with Mr. Kirby that would be regarded as related party transactions.
 
Ms. Sharon Farris - Secretary
From September 7, 2008, to January 20, 2009, Ms. Farris served as a member fo the Board of Directors and as the Corporation’s President, Treasurer and Secretary. On January 20, 2009, Ms. Farris resigned as a member of the Board and as President and Treasurer. Mr. Farris continues to serve as the Corporation’s Secretary. On Ms. Farris has been working in the oil and gas industry for the past several years.  She has worked for Buccaneer Energy Corporation and HoCo, Inc. for the past two and a half years, working with the Oklahoma Corporation Commission, Oklahoma Tax Commission, Petroleum Engineers, Geologist, Landowners, Attorneys, Crude Purchasers as well as various oil field workers.  Ms. Farris was born and raised in Norman, Oklahoma.  She studied overseas at the International School in Islamabad, Pakistan for two years and spent her last semester at Norman High School, where she graduated.  She then attended the University of Oklahoma, graduating with a Bachelors of Arts and Science.  She has over fifteen years of management experience and over five years as a Certified Manager Trainer.  She has a family background in the oil and gas industry.

 
 
Significant Employees

We have no employees at this time.

Family Relationships

None

Involvement In Certain Legal Proceedings

None.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities and Exchange Act of 1934 requires any person who is a director or executive officer or who beneficially holds more than ten percent (10%) of any class of our securities which have been registered with the Securities and Exchange Commission, to file reports of initial ownership and changes in ownership with the Securities and Exchange Commission.  These persons are also required under the regulations of the Securities and Exchange Commission to furnish us with copies of all Section 16(a) reports they file.

To our knowledge, based solely on our review of the copies of the Section 16(a) reports furnished to us and a review of our shareholders of record for the fiscal year ended September 30, 2008, there were no filing delinquencies.

Code of Ethics

We have not yet prepared a written code of ethics and employment standards.  We have only recently commenced operations.  We expect to implement a Code of Ethics during the current fiscal year.

Corporate Governance; Audit Committee Financial Expert

Nominating Committee

We currently do not have a nominating committee.  Our Board as a whole acts as our nominating committee.

Audit Committee

As we currently do not have an audit committee financial expert or an independent audit committee expert due to the fact that our Board currently does not have an independent audit committee.  Our Board does not have any (1) independent member, and thus, does not have the ability to create a proper independent audit committee.

Presently, our Board is performing the duties that would normally be performed by an audit committee.  We intend to form a separate audit committee, and are seeking potential independent directors.  We are seeking experienced business people and plan to appoint an individual qualified as an audit committee financial expert.

 
 

ITEM 11.                       EXECUTIVE COMPENSATION.

Other than as described below, our executive officers have not received any compensation since the date of our incorporation, and we did not accrue any compensation.  There are no securities authorized for issuance under any equity compensation plan, or any options, warrants, or rights to purchase our common stock.

During the fiscal year ended September 30, 2009, we paid our President and Treasurer, Mr. Porterfield, a total of $18,000 in compensation for his services as our sole executive officer.

Compensation of Directors

We do not compensate our directors for their time spent on our behalf, but they are entitled to receive reimbursement for all out of pocket expenses incurred for attendance at our Board of Directors meetings.

Pension and Retirement Plans

Currently, we do not offer any annuity, pension or retirement benefits to be paid to any of our officers, directors or employees, in the event of retirement.  There are also no compensatory plans or arrangements with respect to any individual named above which results or will result from the resignation, retirement or any other termination of employment with us, or from a change in our control.

Employment Agreements

We do not have written employment agreements.

ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS


MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Securities Authorized for Issuance Under Equity Compensation Plans

There are no securities authorized for issuance under any equity compensation plan, or any options, warrants, or rights to purchase our common stock.


SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

We are required under Regulation S-K of the Securities Exchange Act of 1934 (the “Exchange Act”) to provide certain information, with respect to any person (including any “group”, as that term is used in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) who is known to us to be the beneficial owner of more than five (5) percent of any class of our voting securities, and as to those shares of our equity securities beneficially owned by each of our directors, our executive officers and all of our directors and executive officers and all of our directors and executive officers as a group.  Based on our review of statements filed with the Securities and Exchange Commission (the “Commission”) pursuant to Sections 13 (d), 13 (f), and 13 (g) of the Exchange Act with respect to our common stock and a review of our shareholders list, as of December 31, 2009, had only two (2) shareholders who held 5% or more of our common stock, which is our only class of capital stock.  As of December 31, 2009, there were 44,400,000 shares of our common stock outstanding.

 
 
The number of shares of common stock beneficially owned by each person is determined under the rules of the Commission and the information is not necessarily indicative of beneficial ownership for any other purpose.  Under such rules, beneficial ownership includes any shares as to which such person has sole or shared voting power or investment power and also any shares which the individual has the right to acquire within sixty (60) days after the date hereof, through the exercise of any stock option, warrant or other right.  Unless otherwise indicated, each person has sole investment and voting power (or shares such power with his or her spouse) with respect to the shares set forth in the following table.  The inclusion herein of any shares deemed beneficially owned does not constitute an admission of beneficial ownership of those shares.

The table also shows the number of shares beneficially owned as of December 31, 2009 by each of the individual directors and executive officers and by all directors and executive officers as a group.

Title of Class
 
Name and Address of Beneficial Owner
Amount and Nature of Beneficial Ownership
Percent
of Class
Common
Richard Porterfield
2205 Rushing Meadows
Edmond, OK 73013
-0-
0%
Common
James Kirby
P.O. Box 1025
McLoud, OK 74851
-0-
0%
Common
Sharon Farris
Secretary
9250 75th Street
Lexington, OK 73051
 
 
- 0-
 
 
0%
 
All officers and directors as a group
-0-
0%


Beneficial Owners:
Common
Stonehurst Limited
Suite 13, Oliaji Trade Centre
Francis Rachel St, Victoria Mahe
Seychelles
2,350,000
5.3%
Common
Terra Equity LLC
Henville Building
Charleston, Nevis
5,170,000
11.6%


 (1) Percent of Ownership is calculated in accordance with the Securities and Exchange Commission’s Rule 13(d) – 13(d)(1)


Changes in Control

We have not entered into any arrangements which may result in a change in our control

ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 
 
Transactions With Related Persons

Other than the stock transactions disclosed below, we have not entered into any transactions in which any of our directors, executive officers, or affiliates, including any member of an immediate family that had or are to have a direct or indirect material interest.

Parents

None

Promoters and Control Persons

None.


ITEM 14.                      PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit and Audit Related Fees.

The aggregate fees billed by our auditors, for audit fees during the years ended September 30, 2009, and 2008, were $18,750 and $16,250, respectively.

We did not incur any fees billed by our auditors for audited related services.

Tax Fees.

We did not incur any fees billed by our auditors for tax compliance, tax advice or tax compliance services during the fiscal year ended September 30, 2009.

All Other Fees.

We did not incur any other fees billed by auditors for services rendered to us other than the services covered in "Audit Fees" for the fiscal years ended September 30, 2009.

The Board has considered whether the provision of non-audit services is compatible with maintaining the principal accountant's independence. Since there is no audit committee, there are no audit committee pre-approval policies and procedures.


 
ITEM 15.                      EXHIBITS

Exhibit Index

3.1 (a)                      Articles of Incorporation*
3.1 (b)
Amendments to Articles of Incorporation filed with the Secretary of State of the State of Nevada on October 17, 2008, October 27, 2008, November 17, 2008, and December 5, 2008.
3.2                      By-laws*
31.1                      Section 302 Certification – President
31.2                      Section 302 Certification – Chief Financial Officer
32.1
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the President.
32.2
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Chief Financial Officer.
10.1
Invoice regarding sale of mineral titles in the Province of British Columbia, dated April 19, 2007*
10.2
Net Smelter Returns Royalty Agreement, dated April 26, 2007*
10.3
Form of Founder's Seed Capital Share Private Placement Subscription Agreement*
10.4
Form of Subscriber's Seed Capital Share Private Placement Subscription Agreement*

 
 
*Incorporated by reference to our Registration Statement on Form S-1 file number 333-149823, filed on March 20, 2008.


SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on this day of January, 2010.


     PRECISION PETROLEUM CORPORATION



Date: January 13, 2010                               By: /s/ Richard Porterfield       
                      Name: Richard Porterfield
                 Title: President, principal executive officer,



By: /s/ James Kirby                                          
Name: James Kirby
Title: Chief Financial Officer, principal financial officer and principal accounting officer


 
Pursuant to the requirements of the Securities Act of 1933, this report has been signed by the following persons on behalf of the registrant and in the capacities indicated and on the dates indicated:
 
 
PRECISION PETROLEUM CORPORATION
 


By: /s/ Richard Porterfield                                                                           Dated:  January 13, 2010
Name:        RICHARD PORTERFIELD
Title           Director



 
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