|
T QUARTERLY REPORT UNDER SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
£ TRANSITION REPORT UNDER
SECTION 13 OR 15(d) OF THE EXCHANGE
ACT
|
Nevada
|
95-3848122
|
(State
or Other Jurisdiction of
Incorporation
or organization)
|
(I.R.S.
Employer I.D. No.)
|
Page
|
|
Explanatory
Note
|
1
|
PART
I
|
|
Item
1. Financial
Statements
|
2
|
Condensed Balance
Sheets
|
2
|
Condensed Statements of
Operations
|
3
|
Condensed Statements of Cash
Flows
|
4
|
Notes to Unaudited Condensed
Financial Statements
|
5
|
Item
2. Management’s
Discussion and Analysis or Plan of Operation
|
15
|
PART
II
|
|
Item
6. Exhibits
|
27
|
Signatures
|
28
|
|
We
have provided the following additional disclosures in the “Outlook and
Overview” portion of Part I – Item 2 - Management’s Discussion and
Analysis or Plan of Operation:
|
o
|
We
have explained why we chose to use 500,000 barrels of oil as our
assumption in estimating the potential oil yield from our current acreage
and have provided a sensitivity analysis regarding our assumptions and
their impact on our potential yield;
and
|
o
|
We
have provided further detail explaining our basis for projecting
approximately $35 million in annualized cash flows entering
2009.
|
|
We
have removed the reference to our Chief Executive Officer and Chief
Financial Officer on the titles to Exhibits 31.1 and
31.2.
|
BALANCE
SHEETS
|
|||||||||
JUNE
30, 2008 AND DECEMBER 31, 2007
|
|||||||||
ASSETS
|
|||||||||
|
|||||||||
June
30, 2008
|
December
31, 2207
|
||||||||
(Unaudited)
|
|
||||||||
CURRENT
ASSETS
|
|||||||||
Cash
and Cash Equivalents
|
$
12,367,173
|
$
10,112,660
|
|||||||
Short-term
Investments
|
3,389,350
|
-
|
|||||||
Trade
Receivables
|
916,770
|
-
|
|||||||
Prepaid
Drilling Costs
|
804,343
|
364,290
|
|||||||
Prepaid
Expenses
|
127,450
|
25,680
|
|||||||
Total
Current Assets
|
17,605,086
|
10,502,630
|
|||||||
PROPERTY
AND EQUIPMENT, AT COST
|
|||||||||
Oil
and Natural Gas Properties, Full Cost Method (including unevaluated costs
of
|
|||||||||
$16,592,550
at 6/30/08 and $7,587,511 at 12/31/2007)
|
20,653,774
|
7,587,511
|
|||||||
Other
Property and Equipment
|
247,003
|
44,769
|
|||||||
Total
Property and Equipment
|
20,900,777
|
7,632,280
|
|||||||
Less
- Accumulated Depreciation and Depletion
|
172,135
|
3,446
|
|||||||
Total
Property and Equipment, Net
|
20,728,642
|
7,628,834
|
|||||||
Total
Assets
|
$
38,333,728
|
$
18,131,464
|
|||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||||
CURRENT
LIABILITIES
|
|||||||||
Accounts
Payable
|
$ 426,307
|
$ 113,254
|
|||||||
Accrued
Expenses
|
3,885
|
110,993
|
|||||||
Accrued
Drilling Costs
|
1,048,458
|
-
|
|||||||
Derivative
Liabilities
|
847,200
|
-
|
|||||||
Margin
Loan
|
999,907
|
-
|
|||||||
Total
Current Liabilities
|
3,325,757
|
224,247
|
|||||||
LONG-TERM
LIABILITIES
|
-
|
-
|
|||||||
Total
Liabilities
|
3,325,757
|
224,247
|
|||||||
STOCKHOLDERS'
EQUITY
|
|||||||||
Common
Stock, Par Value $.001; 100,000,000 Authorized, 32,281,098
|
|||||||||
Outstanding
(2007 – Par Value $.001; 28,695,922 Shares Outstanding)
|
32,282
|
28,696
|
|||||||
Additional
Paid-In Capital
|
39,842,362
|
22,259,921
|
|||||||
Retained
Deficit
|
(4,285,212)
|
(4,381,400)
|
|||||||
Additional
Paid in Capital, Shares to be Issued
|
321,713
|
-
|
Accumulated
Other Comprehensive Income (Loss)
|
(903,174)
|
-
|
|||||||
Total
Stockholders' Equity
|
35,007,971
|
17,907,217
|
|||||||
Total
Liabilities and Stockholders' Equity
|
$
38,333,728
|
$
18,131,464
|
|||||||
STATEMENTS
OF OPERATIONS
|
||||||||||||||
FOR
THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
|
||||||||||||||
(UNAUDITED)
|
||||||||||||||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||
June,
30
|
June,
30
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||
REVENUES
|
||||||||||||||
Oil
and Gas Sales
|
$ 764,528
|
$ -
|
$
1,050,257
|
$ -
|
||||||||||
Gain
on Derivatives
|
-
|
-
|
1,300
|
-
|
||||||||||
764,528
|
-
|
1,051,557
|
-
|
|||||||||||
OPERATING
EXPENSES
|
||||||||||||||
Production
Expenses
|
8,020
|
-
|
9,418
|
-
|
||||||||||
Severance
Taxes
|
38,242
|
-
|
50,336
|
-
|
||||||||||
General
and Administrative Expense
|
410,736
|
894,460
|
918,619
|
1,191,919
|
||||||||||
Depletion
and Depreciation
|
119,489
|
260
|
168,689
|
520
|
||||||||||
Total
Expenses
|
576,487
|
894,720
|
1,147,062
|
1,192,439
|
||||||||||
INCOME
(LOSS) FROM
OPERATIONS
|
188,041
|
(894,720)
|
(95,505)
|
(1,192,439)
|
||||||||||
OTHER
INCOME
|
95,424
|
13,660
|
191,693
|
23,793
|
||||||||||
INCOME
(LOSS) BEFORE INCOME TAXES
|
283,465
|
(881,060)
|
96,188
|
(1,168,646)
|
||||||||||
INCOME
TAX PROVISION (BENEFIT)
|
-
|
-
|
-
|
-
|
||||||||||
NET
INCOME (LOSS)
|
$ 283,465
|
$ (881,060)
|
$ 96,188
|
$
(1,168,646)
|
||||||||||
Net
Income (Loss) Per Common Share – Basic and Diluted
|
$ 0.01
|
$ (0.04)
|
$ 0.00
|
$ (0.05)
|
||||||||||
Weighted
Average Shares Outstanding – Basic
|
30,864,339
|
22,728,958
|
29,857,035
|
21,469,892
|
||||||||||
Weighted
Average Shares Outstanding - Diluted
|
34,379,541
|
22,728,958
|
29,857,035
|
21,469,892
|
||||||||||
NORTHERN
OIL AND GAS, INC.
|
||||||||||||||
STATEMENTS
OF CASH FLOWS
|
||||||||||||||
FOR
THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
|
||||||||||||||
(UNAUDITED)
|
||||||||||||||
Six
Months Ended
June
30,
|
||||||||||||||
2008
|
2007
|
|||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||||
Net
Income (Loss)
|
$ 96,188
|
$ (1,168,646)
|
||||||||||||
Adjustments
to Reconcile Net Income (Loss) to Net Cash Used for Operating
Activities:
|
||||||||||||||
Depletion
and Depreciation
|
168,689
|
520
|
||||||||||||
Issuance
of Stock for Consulting Fees
|
49,875
|
475,000
|
||||||||||||
Market
Value adjustment of Derivative Instruments
|
10,052
|
-
|
||||||||||||
Share
– Based Compensation Expense
|
35,125
|
436,384
|
||||||||||||
Increase
in Trade Receivables
|
(916,770)
|
(51,776)
|
||||||||||||
Increase
in Prepaid Expenses
|
(101,770)
|
(23,375)
|
||||||||||||
Increase
in Accounts Payable
|
313,053
|
113,649
|
||||||||||||
Decrease
in Accrued Expenses
|
(107,108)
|
-
|
||||||||||||
Net
Cash Used For Operating Activities
|
(452,666)
|
(218,244)
|
||||||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||
Purchases
of Office Equipment and Furniture
|
(202,234)
|
(14,082)
|
||||||||||||
Increase
in Prepaid Drilling Costs
|
(440,053)
|
-
|
||||||||||||
Increase
in Accrued Drilling Costs
|
1,048,458
|
-
|
||||||||||||
Increase
in Short-term Investment, net
|
(3,550,524)
|
-
|
||||||||||||
Oil
and Gas Properties
|
(11,779,327)
|
(948,955)
|
||||||||||||
Net
Cash Used For Investing Activities
|
(14,923,680)
|
(963,037)
|
||||||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||
Increase
in Margin Loan
|
999,907
|
-
|
||||||||||||
Repayments
of Convertible Notes Payable (Related Party)
|
-
|
(165,000)
|
||||||||||||
Cash
Paid for Listing Fee
|
(65,000)
|
-
|
||||||||||||
Sale
of Calls
|
95,148
|
-
|
||||||||||||
Deferred
Offering Costs
|
-
|
(111,839)
|
||||||||||||
Proceeds
from the Issuance of Common Stock – Net of Issuance Costs
|
15,667,004
|
1,188,990
|
||||||||||||
Proceeds
from Exercise of Stock Options
|
933,800
|
-
|
||||||||||||
Net
Cash Provided by Financing Activities
|
17,630,859
|
912,151
|
||||||||||||
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
2,254,513
|
(269,130)
|
||||||||||||
CASH
AND CASH EQUIVALENTS – BEGINNING OF PERIOD
|
10,112,660
|
849,935
|
||||||||||||
CASH
AND CASH EQUIVALENTS – END OF PERIOD
|
$ 12,367,173
|
$ 580,805
|
||||||||||||
Supplemental
Disclosure of Cash Flow Information
|
||||||||||||||
Cash
Paid During the Period for Interest
|
$ -
|
$ -
|
||||||||||||
Cash
Paid During the Period for Income Taxes
|
$ -
|
$ -
|
||||||||||||
Non-Cash
Financing and Investing Activities:
|
||||||||||||||
Purchase
of Oil and Gas Properties through Issuance of Common Stock
|
$ 1,286,936
|
$ 705,012
|
||||||||||||
Payment
of Consulting Fees through Issuance of Common Stock
|
$ 49,875
|
$ 475,000
|
||||||||||||
November
1,
|
||
2007
|
||
Risk
free rates
|
4.36%
|
|
Dividend
yield
|
0%
|
|
Expected
volatility
|
56%
|
|
Weighted
average expected stock option life
|
5
Years
|
Weighted
average fair value per share
|
$
|
2.72
|
Total
options granted
|
560,000
|
|
Total
weighted average fair value of options granted
|
$
|
1,524,992
|
Cost
at
June
30, 2008
|
Unrealized
(Loss)
|
Fair
Market
Value
at
June
30,
2008
|
||||||||
Municipal
Bonds
|
$
|
2,550,000
|
$
|
(140,250)
|
|
$
|
2,409,750
|
|||
Auction
Market Securities
|
1,000,524
|
(20,924)
|
|
979,600
|
||||||
Total
Short-Term Investments
|
$
|
3,550,524
|
$
|
(161,174)
|
|
$
|
3,389,350
|
June
30, 2008
|
|||||
Oil
and Gas Properties, Full Cost Method
|
|||||
Unevaluated
Costs, Not Subject to Amortization or Ceiling Test
|
$
|
16,592,550
|
|||
Evaluated
Costs
|
4,061,224
|
||||
20,653,774
|
|||||
Office
Equipment, Furniture, and Software
|
247,003
|
||||
20,900,777
|
|||||
Less:
Accumulated Depreciation, Depletion, and Amortization
|
(172,135)
|
||||
Property
and Equipment
|
$
|
20,728,642
|
Six-Month
Period
Ended
June 30,
|
|||||
2008
|
2007
|
||||
Depletion
of Costs for Evaluated Oil and Gas Properties
|
$
|
147,578
|
$
|
-
|
|
Depreciation
of Office Equipment, Furniture, and Software
|
21,111
|
260
|
|||
Total
Depreciation, Depletion, and Amortization Expense
|
$
|
168,689
|
$
|
260
|
·
|
260,000
options were exercised in the six months ended June 30,
2008.
|
·
|
No
options were forfeited during the six months ended June 30,
2008.
|
·
|
400,000
options are exercisable as of June 30,
2008.
|
·
|
The
Company recorded compensation expense related to these options of
$2,366,417 for the year ended December 31, 2007. There is no
further compensation expense that will be recognized in future years
relating to options that had been granted as of June 30, 2008, because the
entire fair value compensation has been
recognized.
|
June
30,
|
December
31,
|
||||
2008
|
2007
|
||||
Fair
value of undesignated derivatives
|
$
|
105,200
|
$
|
-
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||
Increase
in earnings due to changes in fair value of derivatives entered
into as investment vehicles
|
$
|
18,336
|
$
|
-
|
$
|
18,336
|
$
|
-
|
||||
Notional
|
|||||||||
Derivative
|
Amount
-
|
NYMEX
|
|||||||
Settlement
Period
|
Instrument
|
Hedge
Strategy
|
Oil
(Barrels)
|
Reference
Price
|
|||||
Futures
Contracts
|
|||||||||
12/01/08
- 12/31/08
|
Sold
Future
|
Cash
flow
|
20,000
|
$
|
104.35
|
||||
Options
Contracts
|
|||||||||
07/16/08
|
Written
Call
140
Strike
|
Undesignated
|
20,000
|
4.75
|
|||||
Quoted
Prices
In
Active
Markets
for
Identical
Assets
(Level
1)
|
Significant
Other
Observable
Inputs
(Level
2)
|
Significant
Unobservable
Inputs
(Level
3)
|
||||||||
Current
Short-term Investments
|
$
|
2,409,750
|
$
|
979,600
|
$
|
-
|
||||
Current
derivative liabilities
|
-
|
(847,200)
|
|
-
|
||||||
Total
|
$
|
2,409,750
|
$
|
132,400
|
$
|
-
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||
Net
income (loss)
|
$
|
283,465
|
$
|
(881,060
|
)
|
$
|
96,188
|
$
|
(1,168,646
|
)
|
|||
Unrealized
losses on marketable securities
|
(20,100
|
)
|
-
|
(161,174
|
)
|
-
|
|||||||
Net
unrealized loss on hedges
|
(742,000
|
)
|
-
|
(742,000
|
)
|
-
|
|||||||
Other
Comprehensive Income (loss) net
|
$
|
(478,635
|
)
|
$
|
(881,060
|
)
|
$
|
(806,986
|
)
|
$
|
(1,168,646
|
)
|
|
▪
|
Approximately 21,354 net acres located in
Sheridan County, Montana, representing
a stacked pay prospect;
|
▪
|
Approximately 25,000 net acres located in
Mountrail County North Dakota, within
and surrounding to the north, south and west the Parshall Field currently
being developed by EOG Resources and others to target the Bakken
Shale;
|
▪
|
Approximately 10,000 net acres located in Burke and Divide Counties of
North Dakota, in which we are targeting the Winnepegosis and Bakken Shales
on acreage in close proximity to recent discoveries by Continental Resources and others in the
formation;
|
▪
|
Approximately 25,000 net acres in and around
Marathon Oil production in Dunn
County, North Dakota;
and
|
▪
|
Approximately 10,000 net acres located in the
“Finger Lakes” region of Yates
County, New York, in
which we are targeting natural gas
production from the Trenton/Black River, Marcellus and Queenstown-Medina
formations.
|
Three
Months Ended March 31, 2008
|
Three
Months Ended June 30, 2008
|
|||
Oil
revenue:
|
||||
Oil
revenue
|
$ 285,692
|
$ 762,763
|
||
Unrealized
oil derivative gains (losses)
|
$ 1,300
|
$ 0
|
||
Oil
revenue including unrealized oil derivative gains (losses)
|
$ 286,992
|
$ 762,763
|
||
Natural
gas revenue:
|
||||
Natural
gas revenue
|
$ 37
|
$ 1,765
|
||
Unrealized
natural gas derivative gains (losses)
|
$ 0
|
$ 0
|
||
Natural
gas revenue including unrealized natural gas derivative gains
(losses)
|
$ 37
|
$ 1,765
|
||
Oil
and natural gas revenue:
|
||||
Oil
and natural gas revenue
|
$
285,729
|
$
764,528
|
||
Unrealized
oil and natural gas derivative gains (losses)
|
$ 1,300
|
$ 0
|
||
Oil
and natural gas revenue including unrealized derivative gains
(losses)
|
$
287,029
|
$
764,528
|
||
Total
revenue
|
$
287,029
|
$
764,528
|
Three
Months Ended March 31, 2008
|
Three
Months Ended June 30, 2008
|
|||
Average
oil prices:
|
||||
Oil
price (per Bbl)
|
$
92.10
|
$
120.12
|
||
Average
natural gas prices:
|
||||
Natural
Gas price (per Mcf)
|
$
10.96
|
$
13.31
|
||
Three
Months Ended March 31, 2008
|
Three
Months Ended June 30, 2008
|
|||
Depletion
of oil and natural gas properties
|
$
40,636
|
$
106,942
|
||
|
Our
ability to continue to source and screen potential
projects;
|
|
Our
ability to discover commercial quantities of oil and
gas;
|
|
The
market price for oil and gas; and
|
|
Our
ability to fully implement our exploration and development program, which
is dependent on the availability of capital
resources.
|
State/County
|
Operator
|
Well
Name
|
Northern
Oil and Gas Working Interest
|
NORTH
DAKOTA – MOUNTRAIL
|
BRIGHAM EXPLORATION
|
BERGSTROM TRUST 26-1H
|
6.25%/24%
BIAPO
|
NORTH
DAKOTA – MOUNTRAIL
|
BRIGHAM EXPLORATION
|
HALLINGSTAD 27-1H
|
8.5%/20%
BIAPO
|
NORTH
DAKOTA – MOUNTRAIL
|
BRIGHAM EXPLORATION
|
RICHARDSON
25-1
|
37.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
BRIGHAM EXPLORATION
|
RICHARDSON
30-1
|
12.5%/20%
BIAPO
|
NORTH
DAKOTA – MOUNTRAIL
|
BRIGHAM EXPLORATION
|
JOHNSON 33-1H
|
16.25%
|
NORTH
DAKOTA – MOUNTRAIL
|
MUREX PETROLEUM
|
RICK CLAIR 25-36H
|
6.25%
|
NORTH
DAKOTA – MOUNTRAIL
|
WHITING
OIL & GAS
|
BRAAFLAT 11-11H
|
1.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
SINCLAIR
OIL
|
NELSON
1-26H
|
3.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
SLAWSON EXPLORATION
|
PATHFINDER 1-9H
|
3.00%
|
NORTH
DAKOTA – DUNN
|
MARATHON OIL COMPANY
|
REISS 34-20H
|
1.00%
|
NORTH
DAKOTA – DUNN
|
MARATHON OIL COMPANY
|
KENT CARLSON 24-36H
|
6.25%
|
NORTH
DAKOTA – DUNN
|
MARATHON OIL COMPANY
|
VOIGT
11-15H
|
1.00%
|
NORTH
DAKOTA – DUNN
|
BURLINGTON
RESOURCES
|
BONNEY
34-3H
|
3.00%
|
State/County
|
Operator
|
Well
Name
|
Northern
Oil and Gas Working Interest
|
NORTH
DAKOTA – MOUNTRAIL
|
EOG
RESOURCES
|
WAYZETTA
1-13H
|
6.25%
|
NORTH
DAKOTA – MOUNTRAIL
|
EOG
RESOURCES
|
PARSHALL 11-28H
|
2.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
SLAWSON EXPLORATION
|
PROWLER 1-16H
|
5.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
SLAWSON EXPLORATION
|
PAYARA 1-21H
|
5.00%
|
NORTH
DAKOTA – DUNN
|
MARATHON OIL COMPANY
|
CLIVE
PELTON 34-23H
|
3.00%
|
NORTH
DAKOTA – DUNN
|
MARATHON OIL COMPANY
|
ECKELBERG
41-26H
|
3.00%
|
NORTH
DAKOTA – DIVIDE
|
CONTINENTAL RESOURCES
|
SKACHENKO
1-31H
|
6.25%
|
NORTH
DAKOTA – DIVIDE
|
CONTINENTAL RESOURCES
|
ELVEIDA 1-33H
|
10.00%
|
NORTH
DAKOTA – DIVIDE
|
CONTINENTAL RESOURCES
|
ARVID
1-34H
|
6.25%
|
NORTH
DAKOTA – MOUNTRAIL
|
HESS CORPORATION
|
EN-NESET-0706H-1
|
3.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
HESS CORPORATION
|
EN-PERSON-1102H-1
|
12.50%
|
NORTH
DAKOTA – MOUNTRAIL
|
HESS CORPORATION
|
RS-AGRIBANK-1102H-1
|
7.50%
|
NORTH
DAKOTA – MOUNTRAIL
|
HESS CORPORATION
|
BL-Blanchard-
###-##-####H-1
|
2.50%
|
State/County
|
Operator
|
Well
Name
|
Northern
Oil and Gas Working Interest
|
NORTH
DAKOTA – MOUNTRAIL
|
EOG
RESOURCES
|
AUSTIN
19-30H
|
5.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
EOG
RESOURCES
|
MODEL 1-05H
|
3.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
EOG
RESOURCES
|
MODEL 2-08H
|
3.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
EOG
RESOURCES
|
MODEL 4-19H
|
3.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
EOG
RESOURCES
|
RUUD 1-18H
|
3.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
EOG
RESOURCES
|
AUSTIN
23-32H
|
3.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
EOG
RESOURCES
|
SHELL
1-08H
|
3.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
EOG
RESOURCES
|
AUSTIN
3-4H
|
1.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
EOG
RESOURCES
|
PARSHALL 12-27H
|
2.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
EOG
RESOURCES
|
MODEL
1-09H
|
3.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
WHITING
OIL&GAS
|
FEDERAL
11-9H
|
1.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
SLAWSON
EXPLORATION
|
BANDIT 1-29H
|
27.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
SLAWSON
EXPLORATION
|
PEACEMAKER
1-8H
|
15.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
SLAWSON
EXPLORATION
|
HEDGEHOG 1-6H
|
5.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
SLAWSON
EXPLORATION
|
TOMCAT 1-2H
|
5.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
SLAWSON
EXPLORATION
|
SENTRY 10-1H
|
5.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
SLAWSON
EXPLORATION
|
NIGHTCRAWLER 1-17H
|
5.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
SLAWSON
EXPLORATION
|
VOYAGER
1-28H
|
5.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
SLAWSON
EXPLORATION
|
POLARIS
1-21H
|
5.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
SLAWSON
EXPLORATION
|
PANTHER
1-29H
|
7.50%
|
NORTH
DAKOTA – MOUNTRAIL
|
BRIGHAM
EXPLORATION
|
AFSETH
34-1H
|
6.25%
|
NORTH
DAKOTA – MOUNTRAIL
|
BRIGHAM
EXPLORATION
|
HALLINGSTAD
35-1H
|
15.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
WINDSOR
ENERGY
|
WOLF
1-4H
|
16.00%
|
NORTH
DAKOTA – DUNN
|
TRACKER
RESOURCES
|
KNUTSON #4-1H
|
8.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
XTO
- HEADINGTON
|
SMOUSE
41-28
|
30.00%
|
NORTH
DAKOTA – MCKENZIE
|
ENCORE
OPERATING
|
ROLFSON
14-33H
|
5.00%
|
NORTH
DAKOTA – BURKE
|
SAMSON
OIL
|
GUSTAFSON
29-161-92H
|
25.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
MUREX
PETROLEUM
|
CHAD
ALLEN 25-36H
|
6.25%
|
NORTH
DAKOTA – RICHLAND
|
CRUSADER
ENERGY
|
OILERS
1H-10
|
7.50%
|
NORTH
DAKOTA – DUNN
|
MARATHON
OIL COMPANY
|
KENT CARLSON 14-36H
|
6.25%
|
NORTH
DAKOTA – DUNN
|
MARATHON
OIL COMPANY
|
KOVAOFF
21-17H
|
2.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
MARATHON
OIL COMPANY
|
SHOBE
24-20H
|
7.50%
|
NORTH
DAKOTA – DUNN
|
MARATHON
OIL COMPANY
|
STROMMEN
14-8H
|
3.00%
|
NORTH
DAKOTA – DIVIDE
|
CONTINENTAL
RESOURCES
|
SHONNA 1-15H
|
15.00%
|
NORTH
DAKOTA – DIVIDE
|
CONTINENTAL
RESOURCES
|
ELLS
1-6H
|
12.50%
|
NORTH
DAKOTA – DIVIDE
|
CONTINENTAL
RESOURCES
|
VIOLA
1-7H
|
7.50%
|
NORTH
DAKOTA – DIVIDE
|
CONTINENTAL
RESOURCES
|
ROSSOW
1-10H
|
10.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
ST.
MARY
|
S.M.
CLARK 4-6H
|
2.00%
|
NORTH
DAKOTA – MOUNTRAIL
|
HESS
CORPORATION
|
EN-HYNEK-0112H-1
|
12.50%
|
NORTH
DAKOTA – SHERIDAN
|
KODIAK
OIL&GAS
|
MEAGHER
16-30
|
8.50%
|
NORTH
DAKOTA – SHERIDAN
|
KODIAK
OIL&GAS
|
BONEYARD
13-20
|
8.50%
|
March
31, 2008
(Unaudited)
|
June
30, 2008
(Unaudited)
|
||
Current
Assets
|
$
5,962,838
|
$
17,605,086
|
|
Current
Liabilities
|
$
2,194,099
|
$
3,325,757
|
|
Working
Capital
|
$
3,768,739
|
$
14,279,329
|
Date:
|
October
16, 2008
|
By:
|
/s/Michael
Reger
|
|
Michael
Reger, Chief Executive Officer and Director
|
||||
Date:
|
October
16, 2008
|
By:
|
/s/Ryan
Gilbertson
|
|
Ryan
Gilbertson, Chief Financial Officer and
Director
|
Exhibit
Number
|
Exhibit
Description
|
|
31.1
|
Certification
pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act
of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
31.2
|
Certification
pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act
of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
32.1
|
Certification
of the Chief Executive Officer and Chief Financial Officer pursuant to 18
U.S. C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
|