----

----

|   | NEVADA                         |   | 20-5936198          |   |
|--------|--------------------------------|--------|---------------------|--------|
|   | State or other jurisdiction of |   | (I.R.S. Employer    |   |
|   | incorporation or organization  |   | Identification No.) |   |

|   | 7230 Indian Creek Ln. Ste 201, Las Vegas, NV 89149 |   |
|--------|----------------------------------------------------|--------|

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|   |
|--------|

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|   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |   | 2009   |   |   | 2010   |   |
|   |   | High   |   |   | Low    |   |   | High   |   |   | Low    |   |
| Qtr 1  |   |   | 0.20   |   |   |   | 0.01   |   |   |   | 0.01   |   |   |   | 0.05 |   |
| Qtr 2  |   |   | 0.01   |   |   |   | 0.01   |   |   |   | 0.01   |   |   |   | 0.05 |   |
| Qtr 3  |   |   | 0.01   |   |   |   | 0.01   |   |   |   | 0.01   |   |   |   | 0.05 |   |
| Qtr 4  |   |   | 0.01   |   |   |   | 0.01   |   |   |   | 0.05   |   |   |   | 0.25 |   |

----

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|   Name        |  Position Held with the Company                                 |  Age |  Date First Elected or Appointed |
|-------------------------|---------------------------------------------------------------------------|-----------|--------------------------------------------|
|  Kenneth Liebscher |  President and Director                                              | 68        |  July 1, 2006 to present              |
|  Howard Bouch      |  Chief  Financial Officer and Director Secretary Treasurer | 66        |  January 12, 2007 to present          |
|  Bill Herndon      |  Director                                                            | 46        |  August 6, 2010 to present            |
|  Ryan Kerr         |  Director                                                            | 41        |  August 6, 2010 to present            |

----

----

|   | 1. | Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Full, fair, accurate, timely, and understandable disclosure in reports and documents that we file with, or submit to, the Securities and Exchange Commission and in other public communications made by us; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Compliance with applicable governmental laws, rules and regulations; |
|--------|----|----------------------------------------------------------------------|

|   | 4. | The prompt internal reporting of violations of the Code of Business Conduct and Ethics to an appropriate person or persons identified in the Code of Business Conduct and Ethics; and |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Accountability for adherence to the Code of Business Conduct and Ethics. Our Code of Business Conduct and Ethics requires, among other things, that all of our company’s Senior Officers commit to timely, accurate and consistent disclosure of information; that they maintain confidential information; and that they act with honesty and integrity. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Nameand principal position |   | Year |   |   | Salary($) |   | Bonus($) |   | Stock Awards($) |      | Option Awards |   |   | Non-EquityIncentive Plan Compensation($) |   |   | NonqualifiedDeferred CompensationEarnings ($) |   |   | All Other Compensation($) |   |            | Totals($) |   |
|----------------------------|--------|------|--------|--------|-----------|--------|----------|--------|-----------------|-----------|---------------|--------|--------|------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|---------------------------|--------|-----------------|-----------|--------|
| Kenneth Liebscher          |   | 2010 |   |   |      | 0      |     |   |            | 0         |          |   |   | 100,000                                  | (1)    |   |                                          | 0      |   |                      |   | 0               |      |   |   | 0 |   |   |   | 0 |   |   |   | 100,000 |   |
|                       |   | 2009 |   |   |      | 0      |     |   |            | 0         |          |   |   | 0                                        |   |   |                                          | 0      |   |                      |   | 0               |      |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Howard Bouch               |   | 2010 |   |   |      |   |     |   |            |      |          |   |   | 100,000                                  | (1)    |   |                                          | 0      |   |                      |   | 0               |      |   |   | 0 |   |   |   |  0 |   |   |   | 100,000 |   |
|                       |   | 2009 |   |   |      | 0      |     |   |            | 0         |          |   |   | 0                                        |   |   |                                          | 0      |   |                      |   | 0               |      |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Bill Herndon               |   | 2010 |   |   |      | 0      |     |   |            | 0         |          |   |   | 100,000                                  | (1)    |   |                                          | 0      |   |                      |   | 0               |      |   |   | 0 |   |   |   | 0 |   |   |   | 100,000 |   |
|                       |   | 2009 |   |   |      | N/A    |     |   |            |  N/A |          |   |   | N/A                                      |   |   |                                          | N/A    |   |                      |   | N/A             |      |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |
| Ryan Kerr                  |   | 2010 |   |   |      | 0      |     |   |            | 0         |          |   |   | 100,000                                  |   |   |                                          | 0      |   |                      |   | 0               |      |   |   | 0 |   |   |   | 0 |   |   |   | 100,000 |   |
|                       |   | 2009 |   |   |      | N/A    |     |   |            |  N/A |          |   |   | N/A                                      |   |   |                                          | N/A    |   |                      |   |   N/A |      |   |   |   N/A |   |   |   |   N/A |   |   |   |  N/A |   |

----

| Title of Class  |   | Name of Beneficial Owner                                 |   | Amount and Nature of Beneficial Owner |       | Percent of Class |
|-----------------|--------|----------------------------------------------------------|--------|---------------------------------------|------------|------------------|
| Preferred Stock |   | Kenneth Liebscher, President/CEO And Director            |   |                                  | 20,000     |             |   |   | 47.6 | % |
| Preferred Stock |   | Howard Bouch, CFO and Director                           |   | Nil                                   |       |             |   | 0 | % |
| Preferred Stock |   | Bill Herndon Director                                    |   | Nil                                   |       |             |   | 0 | % |
| Preferred Stock |   | Ryan Kerr, Director                                      |   | Nil                                   |       |             |   | 0 | % |
| Preferred Stock |   | All Officers and Directors as a group of Preferred Stock |   |                                  | 20,000     |             |   |   | 47.6. | % |
| Common Stock    |   | The Excalibur Group A.G.                                 |   |                                  | 9,400,000  | (1)              |   |   | 17.9 | % |
| Common Stock    |   | Howard Bouch, CFO and Director                           |   |                                  | 2,150,000  |             |   |   | 4.09 | % |
| Common Stock    |   | Bill Herndon, Director                                   |   |                                  | 12,000,000 |             |   |   | 22.87 | % |
| Common Stock    |   | Ryan Kerr, Director                                      |   |                                  | 2,000,000  |             |   |   | 3.8 | % |
| Common Stock    |   | Kenneth Liebscher, President/CEO and Director            |   |                                  | 2,000,000  |             |   |   | 3.8 | % |
| Common Stock    |   | All Officers and Directors as a group of Common Stock    |   |                                  | 18,150,000 |             |   |   | 34.58 | % |

----

|               |   |   |   |   |   |   |
|--------------------|--------|--------|--------|--------|--------|--------|
|               |   | 2010   |   |   | 2009   |   |
| Audit Fees         |   | $      | 9,500  |   |   | $      | 16,700 |   |
| Audit Related Fees |   |   | -      |   |   |   | 2,760 |   |
| Tax Fees           |   |   | -      |   |   |   | 800 |   |
| All Other Fees     |   |   | -      |   |   |   | 870 |   |
| Total              |   | $      | 9,500  |   |   | $      | 21,130 |   |

----

|        |   |                                         |   |                               |
|-------------|--------|----------------------------------------------|--------|------------------------------------|
| Exhibit No. |   | Document                                     |   | Location                           |
|        |   |                                         |   |                               |
| 3.1         |   | Articles of Incorporation                    |   | Previously filed*                  |
|        |   |                                         |   |                               |
| 3.2         |   | Articles of Amendment – Allwest        |   | Previously filed*                  |
|        |   |                                         |   |                               |
| 3.3         |   | Articles of Amendment – Lyons Capital  |   | Previously filed*                  |
|        |   |                                         |   |                               |
| 3.4         |   | Articles of Amendment – UTEC           |   | Previously filed*                  |
|        |   |                                         |   |                               |
| 3.5         |   | Articles of Amendment – Share Increase |   | Previously filed**                 |
|        |   |                                         |   |                               |
| 3.6         |   | Bylaws                                       |   | Previously filed* (As Exhibit 3.5) |
|        |   |                                         |   |                               |
| 14.1        |   | Code of Business Conduct and Ethics          |   | Previously filed*                  |
|        |   |                                         |   |                               |
| 31.1        |   | Rule 13a-41(a)/15d-14(a) Certificates        |   |                               |
|        |   |                                         |   |                               |
| 32.1        |   | Section 1350 Certifications                  |   |                               |

----

| /s/ Kenneth B Liebscher                  |              | /s/ Howard Bouch |   |
|------------------------------------------|-------------------|------------------|--------|
|                                     |              |             |   |
| Kenneth B. Liebscher, Director & CEO | Howard Bouch, CFO |

|                                        |   |           |   |                   |   |           |
|---------------------------------------------|--------|----------------|--------|------------------------|--------|----------------|
| /s/ Kenneth Liebscher                       |   | April 15, 2011 |   | /s/ Bill Herndon       |   | April 15, 2011 |
| Kenneth Liebscher, President, CEO, Director |   | Date           |   | Bill Herndon, Director |   | Date           |
|                                        |   |           |   |                   |   |           |
| /s/ Howard Bouch                            |   | April 15, 2011 |   | /s/ Ryan Kerr          |   | April 15, 2011 |
| Secretary, Treasurer, CFO Director          |   | Date           |   | Ryan Kerr Director     |   | Date           |

----

----

|                                                                                                                                                |   | Page   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                |   |   |
| Audit Report of Independent Accountants                                                                                                             |   | 1      |
|                                                                                                                                                |   |   |
| Consolidated Balance Sheets – December 31, 2010 and 2009                                                                                      |   | 2      |
|                                                                                                                                                |   |   |
| Consolidated Statements of Operations for the years ended December 31, 2010 and 2009 and from inception on April 30, 2009 through December 31, 2010 |   | 3      |
|                                                                                                                                                |   |   |
| Consolidated Statements of Members’ Equity from inception on April 30, 2009 through December 31, 2010                                         |   | 4      |
|                                                                                                                                                |   |   |
| Consolidated Statements of Cash Flows for the years ended December 31, 2010 and 2009 and from inception on April 30, 2009 through December 31, 2010 |   | 5      |
|                                                                                                                                                |   |   |
| Notes to Consolidated Financial Statements                                                                                                          |   | 6      |

----

----

----

| ASSETS                                                                           |
|----------------------------------------------------------------------------------|
|                                                                             | December 31, | December 31, |
|                                                                             |   | 2010 |   |   | 2009 |   |
|                                                                             |   |   |   |   |   |   |
| CURRENT ASSETS                                                                   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |
| Cash and cash equivalents                                                        |   | $ | 14,352 |   |   | $ | 9,453 |   |
| Prepaid expenses                                                                 |   |   | 400 |   |   |   | - |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Total Current Assets                                                             |   |   | 14,752 |   |   |   | 9,453 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| OTHER ASSETS                                                                     |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Machinery and equipment, net                                                     |   |   | - |   |   |   | 216,970 |   |
| Construction in progress                                                         |   |   | - |   |   |   | 111,457 |   |
| Oil and gas properties, net                                                      |   |   | 314,997 |   |   |   | - |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Total Other Assets                                                               |   |   | 314,997 |   |   |   | 328,427 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                     |   | $ | 329,749 |   |   | $ | 337,880 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                   |
|                                                                             |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                                              |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                            |   | $ | 4,103 |   |   | $ | 350,716 |   |
| Accrued salary                                                                   |   |   | - |   |   |   | 200,000 |   |
| Related party payables                                                           |   |   | 19,064 |   |   |   | 80,535 |   |
| Loan payable                                                                     |   |   | 15,240 |   |   |   | 240 |   |
| Derivative liability                                                             |   |   | 11,911 |   |   |   | - |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Total Current Liabilities                                                        |   |   | 50,318 |   |   |   | 631,491 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| LONG-TERM DEBT                                                                   |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Asset retirement obligation                                                      |   |   | 5,878 |   |   |   | - |   |
|                                                                             |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES                                                                |   |   | 56,196 |   |   |   | 631,491 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' EQUITY (DEFICIT)                                                   |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Preferred stock - 1,000,000 authorized, $0.001 par value;                        |   |   |   |   |   |   |   |   |
| 42,013 and 42,013 issued and outstanding, respectively                           |   |   | 42 |   |   |   | 42 |   |
| Common stock - 74,000,000 authorized, $0.001 par value;                          |   |   |   |   |   |   |   |   |
|    52,478,159 and 34,118,159 issued and outstanding, respectively |   |   | 52,478 |   |   |   | 34,118 |   |
| Additional paid-in capital                                                       |   |   | 4,167,389 |   |   |   | 2,639,115 |   |
| Deficit accumulated incurred prior to the development stage                      |   |   | (524,202 | ) |   |   | (524,202 | ) |
| Deficit accumulated during the development stage                                 |   |   | (3,422,154 | ) |   |   | (2,442,684 | ) |
|                                                                             |   |   |   |   |   |   |   |   |
| Total Stockholders' Equity (Deficit)                                             |   |   | 273,553 |   |   |   | (293,611 | ) |
|                                                                             |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS'                                              |   |   |   |   |   |   |   |   |
|   EQUITY (DEFICIT)                                                     |   | $ | 329,749 |   |   | $ | 337,880 |   |
|                                                                             |   |   |   |   |   |   |   |   |

----

|                                           |               |   |         |   |   | From Inception |   |
|------------------------------------------------|--------------------|--------|--------------|--------|--------|----------------|--------|
|                                           |               |   |         |   |   | on April 30,   |   |
|                                           | For the Year Ended |   | 2009 through |   |
|                                           | December 31,       |   | December 31, |   |
|                                           |               | 2010   |         | 2009   |   | 2010           |   |
|                                           |               |   |         |   |   |           |   |
| REVENUES                                       |               | $      | -            |   | $      | -              |   | $ | - |   |
| COST OF SALES                                  |               |   | -            |   |   | -              |   |   | - |   |
| GROSS MARGIN                                   |               |   | -            |   |   | -              |   |   | - |   |
|                                           |               |   |         |   |   |           |   |   |   |   |
| OPERATING EXPENSES                             |               |   |         |   |   |           |   |   |   |   |
|                                           |               |   |         |   |   |           |   |   |   |   |
| Amortization of deferred tax benefit           |               |   | -            |   |   | 170,800        |   |   | 170,800 |   |
| Impairment of assets                           |               |   | 528,894      |   |   | 121,242        |   |   | 650,136 |   |
| Management fees                                |               |   | 540,933      |   |   | 569,000        |   |   | 1,109,933 |   |
| General and administrative                     |               |   | 49,045       |   |   | 160,550        |   |   | 209,595 |   |
|                                           |               |   |         |   |   |           |   |   |   |   |
| Total Operating Expenses                       |               |   | 1,118,872    |   |   | 1,021,592      |   |   | 2,140,464 |   |
|                                           |               |   |         |   |   |           |   |   |   |   |
| LOSS FROM OPERATIONS                           |               |   | (1,118,872   | )      |   | (1,021,592     | )      |   | (2,140,464 | ) |
|                                           |               |   |         |   |   |           |   |   |   |   |
| OTHER EXPENSE                                  |               |   |         |   |   |           |   |   |   |   |
|                                           |               |   |         |   |   |           |   |   |   |   |
| Interest expense                               |               |   | (361         | )      |   | -              |   |   | (361 | ) |
| Gain on forgiveness of debt                    |               |   | 111,674      |   |   | -              |   |   | 111,674 |   |
| Other income                                   |               |   | 40,000       |   |   | -              |   |   | 40,000 |   |
| Loss on derivative liability                   |               |   | (11,911      | )      |   | -              |   |   | (11,911 | ) |
|                                           |               |   |         |   |   |           |   |   |   |   |
| Total Other Expense                            |               |   | 139,402      |   |   | -              |   |   | 139,402 |   |
|                                           |               |   |         |   |   |           |   |   |   |   |
| LOSS BEFORE TAXES                              |               |   | (979,470     | )      |   | (1,021,592     | )      |   | (2,001,062 | ) |
|                                           |               |   |         |   |   |           |   |   |   |   |
| Provision for income taxes                     |               |   | -            |   |   | -              |   |   | - |   |
|                                           |               |   |         |   |   |           |   |   |   |   |
| NET LOSS FROM CONTINUING OPERATIONS            |               |   | (979,470     | )      |   | (1,021,592     | )      |   | (2,001,062 | ) |
|                                           |               |   |         |   |   |           |   |   |   |   |
| Net income (loss) from discontinued operations |               |   | -            |   |   | 309,650        |   |   | 309,650 |   |
| Loss on disposal of discontinued operations    |               |   | -            |   |   | (1,730,742     | )      |   | (1,730,742 | ) |
|                                           |               |   |         |   |   |           |   |   |   |   |
| Loss from Discontinued Operations,             |               |   |         |   |   |           |   |   |   |   |
|   Net of Income Taxes                |               |   | -            |   |   | (1,421,092     | )      |   | (1,421,092 | ) |
|                                           |               |   |         |   |   |           |   |   |   |   |
| NET LOSS                                       |               | $      | (979,470     | )      | $      | (2,442,684     | )      | $ | (3,422,154 | ) |
|                                           |               |   |         |   |   |           |   |   |   |   |
| BASIC LOSS PER SHARE                           |               |   |         |   |   |           |   |   |   |   |
| FROM CONTINUING OPERATIONS                     |               | $      | (0.03        | )      | $      | (0.02          | )      |   |   |   |
| BASIC LOSS PER SHARE                           |               |   |         |   |   |           |   |   |   |   |
|  FROM DISCONTINUED OPERATIONS             |               | $      | -            |   | $      | (0.03          | )      |   |   |   |
|                                           |               |   |         |   |   |           |   |   |   |   |
| TOTAL BASIC LOSS PER SHARE                     |               | $      | (0.03        | )      | $      | (0.05          | )      |   |   |   |
|                                           |               |   |         |   |   |           |   |   |   |   |
| WEIGHTED AVERAGE NUMBER                        |               |   |         |   |   |           |   |   |   |   |
|   OF SHARES OUTSTANDING              |               |   | 37,780,406   |   |   | 47,361,310     |   |   |   |   |

----

|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            | Additional                                                                     |                                                                                                                                        |    |                                                                                                                                                    |   |
|--------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------------------------------------------------------------------------------------------------------------------------------|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                             | Preferred Stock                                                                                                                 |   | Common Stock | Paid-In                                                                                                                         | Accumulated |                                                                                                                                              |   |
|                                             | Shares                                                                                                                          |   | Amount       |                                                                                                                            | Shares      |                                                                                                                                              | Amount |                                                                                                                            | Capital                                                                        |                                                                                                                                        | Deficit |                                                                                                                                                    | Total  |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| Balance, December 31, 2008                       |             42,013                                                  |   | $            |                   42                  |        |        51,968,159                                                                                              |   | $                                                                                                                               |             51,968 |                                                                                                                                        | $       |         2,149,515                                                                                               |   | $ |            (524,202) |   | $ |          1,677,323 |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| Option expense pursuant to                       |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| employee option plan                             |                      - |   |         |                      - |        |                         - |   |                      - |                                                                           |            401,250                                                                   |    |                          - |   |             401,250 |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| Operational segment sold in exchange             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| for common stock issued in April 2009            |                      - |   |         |                      - |        |      (22,500,000)                                                                                                        |   |           (22,500)                                                            |                                                                           |              22,500                                                        |    |                          - |   |                         - |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| Common stock issued for purchase                 |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| of subsidiary at $0.01 per share                 |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| on October 10, 2009                              |                      - |   |         |                      - |        |          4,050,000                                                                                   |   |               4,050                                       |                                                                           |              36,450                                                        |    |                          - |   |               40,500 |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| Common stock issued for cash at $0.05            |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| per share on October 20, 2009                    |                      - |   |         |                      - |        |             600,000                                                                   |   |                  600                       |                                                                           |              29,400                                                        |    |                          - |   |               30,000 |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| Net loss for the year ended                      |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| December 31, 2009                                |                      - |   |         |                      - |        |                         - |   |                      - |                                                                           |                        - |    |         (2,442,684)                                                                                             |   |        (2,442,684) |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| Balance, December 31, 2009                       |             42,013                                                  |   |         |                   42                  |        |        34,118,159                                                                                              |   |             34,118                                                  |                                                                           |         2,639,115                                                                                   |    |         (2,966,886)                                                                                             |   |           (293,611) |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| Common stock issued for services                 |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| at $0.05 per share in October 2010               |                      - |   |         |                      - |        |          8,000,000                                                                                   |   |               8,000                                       |                                                                           |            392,000                                                                   |    |                          - |   |             400,000 |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| Common stock issued in purchase                  |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
|   of subsidiary at $0.051 per          |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
|   share on October 28, 2010            |                      - |   |         |                      - |        |        10,000,000                                                                                              |   |             10,000                                                  |                                                                           |            500,000                                                                   |    |                          - |   |             510,000 |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| Common stock issued for services at              |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
|   $0.16 per share on December 30, 2010 |                      - |   |         |                      - |        |             360,000                                                                   |   |                  360                       |                                                                           |              57,240                                                        |    |                          - |   |               57,600 |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| Contributed capital                              |                      - |   |         |                      - |        |                         - |   |                      - |                                                                           |            579,034                                                                   |    |                          - |   |             579,034 |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| Net loss for the year ended                      |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| December 31, 2010                                |                      - |   |         |                      - |        |                         - |   |                      - |                                                                           |                        - |    |            (979,470)                                                                             |   |           (979,470) |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
| Balance, December 31, 2010                       |             42,013                                                  |   | $            |                   42                  |        |        52,478,159                                                                                              |   | $                                                                                                                               |             52,478 |                                                                                                                                        | $       |         4,167,389                                                                                               |   | $ |         (3,946,356) |   | $ |             273,553 |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
|                                             |                                                                                                                            |   |         | Deficit accumulated incured prior to the development stage                                                                      |        |                                                                                                                                              |   | $                                                                                                                               | (524,202)                                                                      |                                                                                                                                        |    |
|                                             |                                                                                                                            |   |         | Deficit accumulated during the development stage                                                                                |        |                                                                                                                                              |   | (3,422,154)                                                                                                                     |                                                                           |                                                                                                                                        |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        |                                                                                                                                              |   |                                                                                                                            |                                                                           |                                                                                                                                        |    |                                                                                                                                                    |   |   |
|                                             |                                                                                                                            |   |         |                                                                                                                            |        | Total accumulated deficit                                                                                                                         |   |                                                                                                                            |                                                                           |                                                                                                                                        | $       | (3,946,356)                                                                                                                                             |   |   |

----

|                                                   |               |   |         |   |   |   | From Inception |   |
|--------------------------------------------------------|--------------------|--------|--------------|--------|--------|--------|----------------|--------|
|                                                   |               |   |         |   |   |   | on April 30,   |   |
|                                                   | For the Year Ended |   | 2009 through |   |
|                                                   | December 31,       |   | December 31, |   |
|                                                   |               | 2010   |         |   | 2009   |   |           | 2010   |   |
| OPERATING ACTIVITIES                                   |               |   |         |   |   |   |           |   |   |
|                                                   |               |   |         |   |   |   |           |   |   |
| Net loss                                               |               | $      | (979,470     | )      |   | $      | (2,442,684     | )      |   | $ | (3,422,154 | ) |
| Adjustments to Reconcile Net Loss to Net               |               |   |         |   |   |   |           |   |   |   |   |   |
| Cash Used by Operating Activities:                     |               |   |         |   |   |   |           |   |   |   |   |   |
| Depreciation                                           |               |   | 414          |   |   |   | 312            |   |   |   | 726 |   |
| Impairment of assets                                   |               |   | 528,894      |   |   |   | -              |   |   |   | 528,894 |   |
| Change in deriative liability                          |               |   | 11,911       |   |   |   | -              |   |   |   | 11,911 |   |
| Amortization of intangibles                            |               |   | -            |   |   |   | 2,803          |   |   |   | 2,803 |   |
| Employee option grants issued                          |               |   | -            |   |   |   | 46,500         |   |   |   | 46,500 |   |
| Cancellation of employee stock option shares           |               |   | -            |   |   |   | 354,750        |   |   |   | 354,750 |   |
| Impairment of intangible assets                        |               |   | -            |   |   |   | 121,242        |   |   |   | 121,242 |   |
| Common stock issued for services                       |               |   | 457,600      |   |   |   | -              |   |   |   | 457,600 |   |
| Gain on settlement of debt                             |               |   | (111,457     | )      |   |   | -              |   |   |   | (111,457 | ) |
| Deferred tax asset                                     |               |   | -            |   |   |   | 170,800        |   |   |   | 170,800 |   |
| Changes in operating assets and liabilities:           |               |   |         |   |   |   |           |   |   |   |   |   |
| Increase in prepaid expenses                           |               |   | (400         | )      |   |   | -              |   |   |   | (400 | ) |
| Accounts payable and accrued liabilities               |               |   | (20,057      | )      |   |   | (16,365        | )      |   |   | (36,422 | ) |
| Related party payables                                 |               |   | 19,131       |   |   |   | 280,535        |   |   |   | 299,666 |   |
| Accrued salaries                                       |               |   | 83,333       |   |   |   | -              |   |   |   | 83,333 |   |
|                                                   |               |   |         |   |   |   |           |   |   |   |   |   |
| Net Cash Used in Continuing Operating Activities       |               |   | (10,101      | )      |   |   | (1,482,107     | )      |   |   | (1,492,208 | ) |
| Net Cash Provided by Discontinued Operating Activities |               |   | -            |   |   |   | 1,678,016      |   |   |   | 1,678,016 |   |
| Net Cash Provided by (Used in) Operating Activities    |               |   | (10,101      | )      |   |   | 195,909        |   |   |   | 185,808 |   |
|                                                   |               |   |         |   |   |   |           |   |   |   |   |   |
| INVESTING ACTIVITIES                                   |               |   |         |   |   |   |           |   |   |   |   |   |
|                                                   |               |   |         |   |   |   |           |   |   |   |   |   |
| Purchase of property and equipment                     |               |   | -            |   |   |   | (216,556       | )      |   |   | (216,556 | ) |
|                                                   |               |   |         |   |   |   |           |   |   |   |   |   |
| Net Cash Used in Investing Activities                  |               |   | -            |   |   |   | (216,556       | )      |   |   | (216,556 | ) |
|                                                   |               |   |         |   |   |   |           |   |   |   |   |   |
| FINANCING ACTIVITIES                                   |               |   |         |   |   |   |           |   |   |   |   |   |
|                                                   |               |   |         |   |   |   |           |   |   |   |   |   |
| Proceeds from notes payable                            |               |   | 15,000       |   |   |   | -              |   |   |   | 15,000 |   |
| Proceeds from issuance of common stock                 |               |   | -            |   |   |   | 30,000         |   |   |   | 30,000 |   |
|                                                   |               |   |         |   |   |   |           |   |   |   |   |   |
| Net Cash Provided by Financing Activities              |               |   | 15,000       |   |   |   | 30,000         |   |   |   | 45,000 |   |
|                                                   |               |   |         |   |   |   |           |   |   |   |   |   |
| NET INCREASE IN CASH                                   |               |   | 4,899        |   |   |   | 9,353          |   |   |   | 14,252 |   |
| CASH AT BEGINNING OF PERIOD                            |               |   | 9,453        |   |   |   | 100            |   |   |   | 100 |   |
|                                                   |               |   |         |   |   |   |           |   |   |   |   |   |
| CASH AT END OF PERIOD                                  |               | $      | 14,352       |   |   | $      | 9,453          |   |   | $ | 14,352 |   |
|                                                   |               |   |         |   |   |   |           |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF                            |               |   |         |   |   |   |           |   |   |   |   |   |
| CASH FLOW INFORMATION:                                 |               |   |         |   |   |   |           |   |   |   |   |   |
| CASH PAID FOR:                                         |               |   |         |   |   |   |           |   |   |   |   |   |
| Income taxes paid                                      |               | $      | -            |   |   | $      | -              |   |   | $ | - |   |
| Interest paid                                          |               |   | -            |   |   |   | -              |   |   |   | - |   |
|                                                   |               |   |         |   |   |   |           |   |   |   |   |   |
| NON CASH FINANCING ACTIVITIES:                         |               |   |         |   |   |   |           |   |   |   |   |   |
| Common stock issued for purchase of subsidiary         |               | $      | 510,000      |   |   | $      | 40,500         |   |   | $ | 550,500 |   |
| Common stock cancelled                                 |               |   | -            |   |   |   | 20,500         |   |   |   | 20,500 |   |
| Contributed capital from forgiveness                   |               |   |         |   |   |   |           |   |   |   |   |   |
|    of debt of a related party           |               |   | 579,034      |   |   |   | -              |   |   |   | 579,034 |   |

----

----

| Building and leasehold improvements: | 10-25 years |
|--------------------------------------|-------------|
| Machinery and equipment:             | 10-15 years |
| Furniture and fixtures               | 3-7 years   |

----

----

----

----

----

----

|                        | For the Years Ended |   |
|-----------------------------|---------------------|--------|
|                        | December 31,        |   |
|                        |                | 2010   |   |   | 2009 |   |
| Machinery and equipment     |                | $      | - |   |   | $ | 216,970 |   |
| Construction in progress    |                |   | - |   |   |   | 111,457 |   |
| Accumulated depreciation    |                |   | - |   |   |   | - |   |
| Property and equipment, net |                | $      | - |   |   | $ | 328,427 |   |

----

| Property and equipment, net |   | $      | 725     |   |
|-----------------------------|--------|--------|---------|--------|
| Intangible assets           |   |   | 2,000   |   |
| Goodwill                    |   |   | 58,899  |   |
| Net liabilities acquired    |   |   | (21,124 | )      |
| Purchase price              |   | $      | 40,500  |   |

----

----

|                                                                 |   | For the Years Ended |    |
|----------------------------------------------------------------------|--------|---------------------|---------|
|                                                                 |   | December 31,        |    |
|                                                                 |   | 2010                |    |   | 2009 |   |
| Producing Activities                                                 |   |                |    |   |   |   |
| Proved properties                                                    |   | $                   | 314,997 |   |   | $ | - |   |
| Accumulated depletion                                                |   |                | -       |   |   |   | - |   |
|                                                                 |   |                |    |   |   |   |   |   |
| Net Oil and Gas Properties                                           |   | $                   | 314,997 |   |   | $ | - |   |
|                                                                 |   |                |    |   |   |   |   |   |
| Costs Incurred in Oil and Gas Acquisition and Development Activities |   |                |    |   |   |   |   |   |
| Produced properties                                                  |   | $                   | 314,997 |   |   | $ | - |   |
| Accumulated depletion                                                |   |                | -       |   |   |   | - |   |
|                                                                 |   |                |    |   |   |   |   |   |
| Total                                                                |   | $                   | 314,997 |   |   | $ | - |   |

|                               |   | For the Years Ended |   |
|------------------------------------|--------|---------------------|--------|
|                               |   | December 31,        |   |
|                               |   | 2010                |   |   | 2009 |   |
| Asset retirement obligations       |   | $                   | 5,878  |   |   | $ | - |   |
| Revisions in estimated liabilities |   | $                   | -      |   |   | $ | - |   |

----

|                                                 |   | For the Years Ended |     |
|------------------------------------------------------|--------|---------------------|----------|
|                                                 |   | December 31,        |     |
|                                                 |   | 2010                |     |   | 2009 |   |
| Current taxes                                        |   | $                   | (381,993 | ) |   | $ | (952,647 | ) |
| Stock/options issued for services                    |   |                | 178,464  |   |   |   | 156,488 |   |
| Stock/options issued in acquisitions of subsidiaries |   |                | 198,900  |   |   |   | 15,795 |   |
| Contributed services                                 |   |                | 225,823  |   |   |   | - |   |
| Depreciation and amortization                        |   |                | 161      |   |   |   | 1,215 |   |
| Impairment expense                                   |   |                | 206,269  |   |   |   | 47,284 |   |
| Change in derivative liability                       |   |                | 4,645    |   |   |   | - |   |
| Valuation allowance                                  |   |                | (432,269 | ) |   |   | 731,865 |   |
| Total provision for income taxes                     |   | $                   | -        |   |   | $ | - |   |

|                                     |   | December 31, |     |
|------------------------------------------|--------|--------------|----------|
|                                     |   | 2010         |     |   | 2009 |   |
| Loss carryforwards (expire through 2030) |   | $            | 875,173  |   |   | $ | (233,210 | ) |
|                                     |   |         |     |   |   |   |   |   |
| Total gross deferred tax asset           |   |         | 328,077  |   |   |   | (104,193 | ) |
| Valuation allowance                      |   |         | (328,077 | ) |   |   | 104,193 |   |
| Net deferred tax assets                  |   |         | -        |   |   |   | - |   |
| Deferred tax liabilities                 |   |         | -        |   |   |   | - |   |
| Net deferred taxes                       |   | $            | -        |   |   | $ | - |   |

----

|                        | For the Years Ended |   |
|-----------------------------|---------------------|--------|
|                        | December 31,        |   |
|                        |                | 2010   |   |   | 2009 |   |
| Sales revenue               |                | $      | - |   |   | $ | 1,039,595 |   |
| Cost of goods sold          |                |   | - |   |   |   | (353,544 | ) |
| Operating expenses          |                |   | - |   |   |   | (376,401 | ) |
| Net operating income (loss) |                |   | - |   |   |   | 309,650 |   |
|                        |                |   |   |   |   |   |   |   |
| Loss on disposal of assets  |                |   | - |   |   |   | (1,730,742 | ) |
| Net loss                    |                | $      | - |   |   | $ | (1,421,092 | ) |

| (1) | Capitalized Costs Relating to Oil and Gas Producing Activities: |
|-----|-----------------------------------------------------------------|

|                                    |   | December 31, |    |   | December 31, |   |
|-----------------------------------------|--------|--------------|---------|--------|--------------|--------|
|                                    |   | 2010         |    |   | 2009         |   |
| Proved leasehold costs                  |   | $            | 314,997 |   |         | $      | - |   |
| Costs of wells and development          |   |         | -       |   |         |   | - |   |
| Capitalize asset retirement obligations |   |         | (5,878  | )      |         |   | - |   |
| Total cost of oil and gas properties    |   | $            | 309,119 |   |         | $      | - |   |
|                                    |   |         |    |   |         |   |   |   |
| Unproved oil and gas properties         |   | $            | -       |   |         | $      | - |   |
| Accumulated depreciation and depletion  |   |         | -       |   |         |   | - |   |
| Net Capitalized Costs                   |   | $            | 309,119 |   |         | $      | - |   |

----

| (2) | Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities: |
|-----|----------------------------------------------------------------------------------------------|

| (3) |   |
|-----|--------|

|                       |   |         |    |   |         |   |
|----------------------------|--------|--------------|---------|--------|--------------|--------|
|                       |   | For the      |    |   | For the      |   |
|                       |   | Year Ended   |    |   | Year Ended   |   |
|                       |   | December 31, |    |   | December 31, |   |
|                       |   | 2010         |    |   | 2009         |   |
| Acquisition of Properties: |   |         |    |   |         |   |
| Proved                     |   | $            | 309,119 |   |         | $      | - |   |
| Unproved                   |   |         | -       |   |         |   | - |   |
| Exploration costs          |   |         | -       |   |         |   | - |   |
| Development costs          |   |         | -       |   |         |   | - |   |
| Total                      |   | $            | 309,119 |   |         | $      | - |   |

| (4) | Results of Operations for Producing Activities: |
|-----|-------------------------------------------------|

|                                                                                             |   | For the      |   |   | For the      |   |
|--------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|--------------|--------|
|                                                                                             |   | Year Ended   |   |   | Year Ended   |   |
|                                                                                             |   | December 31, |   |   | December 31, |   |
|                                                                                             |   | 2010         |   |   | 2009         |   |
| Sales                                                                                            |   | $            | -      |   |         | $      | - |   |
| Production costs                                                                                 |   |         | -      |   |         |   | - |   |
| Depreciation and depletion                                                                       |   |         | -      |   |         |   | - |   |
| Income tax benefit                                                                               |   |         | -      |   |         |   | - |   |
| Results of operations for producing activities (excluding corporate overhead and interest costs) |   | $            | -      |   |         | $      | - |   |

| (5) | Reserve Quantity Information |
|-----|------------------------------|

|                               |   | Oil     |      |   | Gas    |   |
|------------------------------------|--------|---------|-----------|--------|--------|--------|
|                               |   | (MBbls) |      |   | (MMcf) |   |
| Proved developed producing         |   |    | -         |   |   |   | - |   |
| Proved developed non-producing     |   |    | 1,138,168 |   |   |   | - |   |
| Proved undeveloped                 |   |    | -         |   |   |   | - |   |
| Total Proved, at December 31, 2010 |   |    | 1,138,168 |   |   |   | - |   |

----

|                                 |   | Oil     |      |   | Gas    |   |
|--------------------------------------|--------|---------|-----------|--------|--------|--------|
|                                 |   | (MBbls) |      |   | (MMcf) |   |
| Proved reserves at December 31, 2008 |   |    | -         |   |   |   | - |   |
|                                 |   |    |      |   |   |   |   |   |
| Revisions of previous estimates      |   |    | -         |   |   |   | - |   |
| Purchases of minerals in place       |   |    | -         |   |   |   | - |   |
| Extensions and discoveries           |   |    | -         |   |   |   | - |   |
| Production                           |   |    | -         |   |   |   | - |   |
| Proved reserves at December 31, 2009 |   |    | -         |   |   |   | - |   |
|                                 |   |    |      |   |   |   |   |   |
|                                 |   | Oil     |      |   | Gas    |   |
|                                 |   | (MBbls) |      |   | (MMcf) |   |
| Proved reserves at December 31, 2009 |   |    | -         |   |   |   | - |   |
| Revisions of previous estimates      |   |    | -         |   |   |   | - |   |
| Purchases of minerals in place       |   |    | 1,138,168 |   |   |   | - |   |
| Extensions and discoveries           |   |    | -         |   |   |   | - |   |
| Production                           |   |    | -         |   |   |   | - |   |
| Sales of minerals in place           |   |    | -         |   |   |   | - |   |
| Proved reserves at December 31, 2010 |   |    | 1,138,168 |   |   |   | - |   |

| (6) | Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves |
|-----|--------------------------------------------------------------------------------------------------|

|                                                 |   | December 31, |     |   | December 31, |   |
|------------------------------------------------------|--------|--------------|----------|--------|--------------|--------|
|                                                 |   | 2010         |     |   | 2009         |   |
| Future cash inflows                                  |   | $            | 554,303  |   |         | $      | - |   |
| Future production costs                              |   |         | (36,000  | )      |         |   | - |   |
| Future development costs                             |   |         | (10,000  | )      |         |   | - |   |
| Future tax expense                                   |   |         | (41,573  | )      |         |   | - |   |
| Future net cash flows                                |   |         | 466,730  |   |         |   | - |   |
| Discounted for estimated timing of cash flows at 10% |   |         | (157,246 | )      |         |   | - |   |
| Standardized measure                                 |   | $            | 309,484  |   |         | $      | - |   |

----

|                                            |   | For the      |    |   | For the      |   |
|-------------------------------------------------|--------|--------------|---------|--------|--------------|--------|
|                                            |   | Year Ended   |    |   | Year Ended   |   |
|                                            |   | December 31, |    |   | December 31, |   |
|                                            |   | 2010         |    |   | 2009         |   |
| Standardized measure, beginning of year         |   | $            | -       |   |         | $      | - |   |
| Extensions, discoveries and improved recovery   |   |         | -       |   |         |   | - |   |
| Revisions of previous estimates                 |   |         | -       |   |         |   | - |   |
| Purchases of minerals in place                  |   |         | 309,484 |   |         |   | - |   |
| Sales of minerals in place                      |   |         | -       |   |         |   | - |   |
| Net change in process and production costs      |   |         | -       |   |         |   | - |   |
| Accretion of discount                           |   |         | 5,202   |   |         |   | - |   |
| Oil and gas sales, net of production costs      |   |         | -       |   |         |   | - |   |
| Changes in estimated future development costs   |   |         | -       |   |         |   | - |   |
| Previously estimated development cost incurred  |   |         | -       |   |         |   | - |   |
| Net change in income taxes                      |   |         | -       |   |         |   | - |   |
| Change in timing of estimated future production |   |         | -       |   |         |   | - |   |
| Standardized measure, end of year               |   | $            | 314,686 |   |         | $      | - |   |