Note 4: Letter of Intent

On September 28, 2011, the Company entered into a non-binding LOI with Stanford Energy and two of its stockholders, Mr. Rochford and Mr. McCabe, to acquire all of the outstanding shares of Stanford Energy for a total of $8,000,000 and 2,000,000 shares of the Company’s common stock. Stanford Energy holds interests in oil and gas properties located in Andrews County, Texas. The closing of the transaction described in the LOI is tentatively scheduled for on or before January 15, 2012. Each party to the transaction will be responsible for and bear its respective expenses and fees incurred by it in connection with the LOI and the transactions contemplated thereby.  Nevertheless, the Company paid to Stanford a non-refundable transaction fee in the amount of $250,000 upon signing the LOI. The Company has not committed to register under the Securities Act of 1933 any of the shares of common stock to be issued pursuant to this transaction.