Conquest Petroleum Inc

CIK:0001422220|SEC Filings

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Revenues:
Oil and natural gas revenues	$ 222,841	$ 427,507	$ 809,109	$ 1,068,204
License fees, royalties and related services	2,500	2,500	7,500	12,500
Total revenues	225,341	430,007	816,609	1,080,704
Cost and expenses:
Production and lease operating expenses	130,892	331,627	733,791	1,194,135
Depletion, depreciation and amortization	36,647	105,767	119,270	300,960
Accretion of asset retirement obligation	46,336	32,104	135,448	85,276
Impairment of Intangible Assets			6,978
General and administrative expenses	34,383	860,197	718,571	6,610,176
Total cost and expenses	248,258	1,329,695	1,714,058	8,190,547
Loss from operations	(22,917)	(899,688)	(897,449)	(7,109,843)
Other income (Expense):
Change in value of derivative liability gain(loss)	(20,529)	15,359	(15,567)	82,920
Interest expense, net	(1,382,298)	(1,372,674)	(3,763,768)	(5,647,938)
Gain/( Loss) on sale of assets	14,629	(55,565)	14,629	(103,807)
Loss on settlements	121,555		369,586
Interest Income	(2)		3,830
Other miscellaneous income (expense), net	(61,419)	(747)	(37,253)	(8,456)
Penalties on GEF default			(447,287)
Total other income (expense), net	(1,328,064)	(1,413,627)	(3,875,830)	(5,677,281)
Net loss	$ (1,350,981)	$ (2,313,315)	$ (4,773,279)	$ (12,787,124)
Net loss per common share: Basic and diluted (in Dollars per share)	$ (0.03)	$ (0.05)	$ (0.11)	$ (0.30)
Weighted average common shares outstanding: Basic and diluted (in Shares)	44,719,189	44,714,689	44,718,453	42,889,690

Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Cash flows from continuing operating activities:
Net loss for continuing operations	$ (4,773,279)	$ (12,787,124)
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities:
Depreciation & Depletion expense	119,270	290,105
Accretion expense	122,541	85,276
Loss on sale of assets	(14,629)	103,807
Change in fair value of derivative liabilities	15,567	(82,920)
Loss on write off of investment in technology	6,978
Gain on abatement of taxes	(248,031)
Amortization of debt discount	1,628,351	3,893,639
Bad debt expense	50,000	10,000
Bad debt recovery	(16,000)
Warrants issued for note extension	48,481
Gain on plugging of well	(14,629)
Expense escrow shares due to default on related party note	447,287	4,500,000
Amortization of deferred financing costs		10,855
Amortization of deferred revenue	(7,500)	(12,500)
Common stock issued for services	435	285
Common stock owed for consulting agreement and anti-dilution agreement		11,019
Common stock owed for services		52
Common stock owed due to default on note payable		461,734
Changes in operating assets and liabilities:
Accounts receivable	(18,058)	(29,019)
Restricted cash	0	0
Prepaid expenses and other current assets	4,673	25,680
Other current assets	436,095	2,029
Accounts payable	144,512	373,505
Accrued expenses	925,388	1,674,364
ARO	8,908
Accrued interest	645,299
Net Cash Used For Operating Activities	(473,712)	(1,469,213)
Cash flows from investing activities:
Proceeds from sale of fixed assets		15,805
Principal payments received for note receivable	16,000
Cash paid for purchase of fixed assets	(4,550)	(25,486)
Net cash provided by/(used) in investing	11,450	(9,681)
Cash flows from financing activities:
Borrowings on production liability	458,602
Proceeds - issuance of notes payable		1,500,000
Principal payments on notes payable - related parties		25,000
Principal payments on notes payable	(70,392)	(59,994)
Net cash provided by financing activities	388,210	1,415,006
Change is cash during period	(74,052)	(63,888)
Cash at beginning of year	75,699	89,813
Cash at end of period	1,647	25,925
Supplementary cash flow information:
Cash paid for interest		17,673
Shares issued by shareholder to relieve stock payable		30,000
Anti-dilution shares issued related to note payable anti-dilution clause		26,051
Default shared issued to escrow related to note payable		$ 420,000

Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 1,647	$ 75,699
Accounts receivable	85,400	111,928
Certificate of deposit, restricted	251,781	287,876
Restricted Cash	100	400,000
Other receivables	74,987	22,940
Prepaid expenses and other current assets	35,811	47,946
Total current assets	449,726	946,389
Oil and natural gas properties (successful efforts method of accounting):
Proved	3,907,957	3,903,407
Unproved	172,796	172,796
	4,080,753	4,076,203
Less accumulated depletion, depreciation and amortization	(3,297,040)	(3,236,504)
Oil and natural gas properties, net	783,713	839,699
Property and equipment:
Land	112,961	112,961
Buildings	215,445	215,445
Property improvements	199,500	244,025
Office equipment and computers	34,039	34,039
Furniture and fixtures	22,937	22,937
Field service vehicles and equipment	342,923	342,923
Drilling equipment	93,096	93,096
Total property and equipment	1,020,901	1,065,426
Less accumulated depreciation	(431,620)	(417,411)
Property and equipment, net	589,281	648,015
Other assets	167,928	225,006
Total assets	1,990,648	2,659,109
Current liabilities:
Accounts payable	2,596,750	2,452,238
Interest payable	2,205,792	1,386,658
Accrued payroll and related taxes and benefits	1,677,271	1,338,161
Accrued liabilities	350,688	831,575
Derivative liability	22,364	6,797
Production payment payable, current	10,347,226	9,243,325
Notes payable	612,500	612,500
Notes payable, in default	625,000	625,000
Related party notes payable in default	8,799,940	7,370,333
Related party notes payable	2,951,126	2,822,775
Convertible notes payable to related parties in default, net of discount	700,000	700,000
Total current liabilities	30,888,657	27,389,362
Deferred revenue	37,500	45,000
Asset retirement obligation	1,636,420	1,519,600
Total liabilities	32,562,577	28,953,962
Stockholders’ deficit:
Preferred stock, $0.00001 par value; 50,000,000 shares authorized; 545,454 and 545,454 shares issued and outstanding at September 30, 2011 and December 31, 2010 respectively	5	5
Common stock, $0.00001 par value; 250,000,000 shares authorized; 44,720,028 and 44,715,528 shares issued and 44,719,189 and 44,714,689 shares outstanding at September 30, 2011 and December 31, 2010, respectively	450	450
Stock payable	2,332,675	2,332,525
Stock held in escrow		(447,287)
Additional paid-in capital	104,899,438	104,850,672
Accumulated deficit	(137,804,497)	(133,031,218)
Treasury stock, at cost (839 shares held at September 30, 2011 and December 31, 2010, respectively)	0	0
Total stockholders’ deficit	(30,571,929)	(26,294,853)
Total liabilities and stockholders’ deficit	$ 1,990,648	$ 2,659,109