Item 3.02 Unregistered Sales of Equity Securities

On January 31, 2009 the Company issued 6,167,400 shares of its common stock to George Shaw, the Company's President, in exchange for all of the outstanding shares of Energas Pipeline Company and Energas Corp. Energas Pipeline Company operates the natural gas gathering system which is connected to the Company's four wells in Atoka County, Oklahoma. Energas Corp. operates all of the Company's wells and holds the bonds required by state oil and gas regulatory authorities.

On February 11, 2009 the Company issued 200,000 shares of its common stock to an unrelated third party in payment of $11,992 owed to the third party.

On February 23, 2009 the Company issued 220,000 shares of its common stock to five consultants in payment for services rendered to the Company.

The Company relied upon the exemption provided by Section 4(2) of the Securities Act of 1933 with respect to the issuance of the shares referenced above. The persons who acquired these shares were sophisticated investors and were provided full information regarding the Company. There was no general solicitation in connection with the offer or sale of these securities. The persons who acquired these shares acquired them for their own accounts. The certificates representing the shares bear a restricted legend providing that they cannot be sold except pursuant to an effective registration statement or an exemption from registration. No commission or other form of remuneration was given to any person in connection with the issuance of these shares.