General form of registration statement for all companies including face-amount certificate companies

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 6 Months Ended 8 Months Ended 12 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Dec. 31, 2011
Dec. 31, 2013
Dec. 31, 2012
Cash Flows From Operating Activities          
Net Income (Loss). $ 3,985,427 $ (1,855,673) $ 63,165 $ (452,209) $ (1,669,283)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:          
Depreciation, depletion and amortization. 5,008,012 740,270 89,376 2,284,091 506,786
Accretion expense. 61,694 23,277 5,547 53,681 20,906
Share-based compensation 1,299,569 1,701,721 95,897 3,489,022 944,681
Gain on derivative put options     (73,964)   (276,736)
Gain on change in value of Ring Energy, Inc. common stock.     (160,000)    
Interest expense on advances from Ring Energy, Inc.     3,122    
Provision for income taxes 2,340,647     77,701 (300,324)
Stock issued as finders fee       100,000  
Changes in assets and liabilities:          
Accounts receivable (892,225) (45,956) (38,744) (3,470,437) (326,943)
Prepaid expenses (193,045) (32,795) (121,301) (5,653) 87,845
Accounts payable 1,422,697 839,621 68,140 6,040,212 1,081,217
Accrued compensation     100,000   (100,000)
Net Cash Provided by Operating Activities 13,032,776 1,370,465 31,256 8,116,408 (31,851)
Cash Flows from Investing Activities          
Payments to purchase oil and natural gas properties 10,974,396 1,751,342 5,144,565 5,192,441 3,684,674
Payments to develop oil and natural gas properties (37,324,033) (5,524,201) (317,042) (29,103,392) (6,532,898)
Purchase of office equipment (239,210) (54,441) (11,133) (82,805) (159,977)
Plugging and abandonment cost incurred       (60,544)  
Net Cash Used in Investing Activities (48,537,639) (7,329,984) (5,472,740) (34,439,182) (10,377,549)
Cash Flows From Financing Activities          
Proceeds from option exercise 22,500     67,500  
Proceeds from issuance of common stock 28,667,132 18,987,272   73,201,690 13,009,062
Proceeds from borrowings from Ring Energy, Inc.     850,000   1,150,000
Proceeds from issuances of common stock to Ring Energy, Inc. Shareholders         10,887,561
Proceeds from borrowings under revolving line of credit     9,244,428    
Principal payments on revolving line of credit         (9,244,428)
Redemption of common stock     (4,521,572)    
Capital contributions from shareholders     100,000    
Capital distributions to owners     (250,000)    
Net Cash Provided by Financing Activities 28,689,632 18,987,272 5,422,856 73,269,190 15,802,195
Net Increase (Decrease) in Cash (6,815,231) 13,027,753 (18,628) 46,946,416 5,392,795
Cash at Beginning of Period 52,350,583 5,404,167 30,000 5,404,167 11,372
Cash at End of Period 45,535,352 18,431,920 11,372 52,350,583 5,404,167
Supplemental Cash Flow Information          
Cash paid for interest     91,097 9,890 221,927
Noncash Investing and Financing Activities          
Revision of asset retirement obligation estimate   211,691   211,691  
Asset retirement obligation acquired 294,772   (269,241)   (152,148)
Asset retirement obligation incurred during development 737,969 67,352   481,296 (14,214)
Oil and gas properties acquired     6,104,391   9,689,488
Deferred tax liability assumed (net)         (1,362,665)
Payments with Ring Energy, Inc. shares     (360,000)   (4,490,001)
Issuance of common stock to Ring Energy, Inc. shareholders         13,531,760
Accounts payable assumed     (32,181)   9,893
Less: Tax benefit         (436,391)
Less: Elimination of note payable to Ring Energy, Inc.         (2,003,122)
Less: Prepaid expenses acquired         (26,942)
Less: Property and equipment acquired         (187,637)
Accounts receivable acquired     52,278    
Derivative put option incurred     (350,682)    
Cash payments for oil and natural gas properties acquired     5,144,565    
Proceeds from issuance of common stock to Ring Energy, Inc. shareholders         10,887,561
Capital contribution of Ring Energy, Inc. common stock     $ 200,000