Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 4 Months Ended 5 Months Ended 9 Months Ended
Apr. 30, 2011
Sep. 30, 2011
Sep. 30, 2012
Net income (loss) $ 8,322 $ 101,641 $ (1,803,104)
Depreciation, depletion and amortization 2,778 50,944 293,102
Accretion expense 3,732 2,456 14,287
Share-based compensation 0 0 707,090
Gain on derivative put options 0 (34,880) (146,632)
Accounts receivable 4,677 (103,638) (39,794)
Prepaid expenses 0 (18,803) 27,537
Accounts payable 6,907 277,425 1,558,156
Accrued compensation 0 0 (100,000)
Net Cash Provided by (Used in) Operating Activities 26,416 275,145 510,642
Payments to purchase oil and natural gas properties 0 (3,895,659) (124,050)
Payments to develop oil and natural gas properties 0 (257,271) (4,711,752)
Purchase of office equipment 0 0 (179,078)
Net Cash Used in Investing Activities 0 (4,152,930) (5,014,880)
Proceeds from borrowings from Ring Energy, Inc. 0 0 1,150,000
Proceeds from borrowings under revolving line of credit 0 4,053,428 0
Proceeds from issuance of common stock 0 0 11,545,983
Ring Energy, Inc. shareholders 0 0 10,887,561
Capital contributions from shareholders 0 50,000 0
Capital distributions to owners (26,416) (150,000) 0
Net Cash Provided by (Used in) Financing Activities (26,416) 3,953,428 14,339,116
Net Increase (Decrease) in Cash 0 75,643 9,834,878
Cash at Beginning of Period     11,372
Cash paid for interest 0 8,754 93,471
Oil and natural gas properties acquired 0 4,110,430 825,765
Asset retirement obligations assumed 0 (101,849) (14,214)
Payments with Ring Energy, Inc. shares 0 (40,000) (687,501)
Derivative put option incurred 0 (72,922) 0
Cash payments for oil and natural gas properties acquired 0 3,895,659 124,050
Issuance of common stock to Ring Energy, Inc. shareholders 0 0 13,095,369
Accounts payable assumed 0 0 9,893
Less: Elimination of note payable to Ring Energy, Inc. 0 0 (2,003,122)
Less: Prepaid expenses acquired 0 0 (26,942)
Less: Property and equipment acquired 0 0 (187,637)
Capital contribution of Ring Energy, Inc. common stock $ 0 $ 40,000 $ 0