Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
 3 Months Ended
Jun. 30, 2011
Jun. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 4,325,232 $ 871,868
Adjustments to reconcile net income to net cash provided by operating activities:    
Income from discontinued operations (8,654,065) (3,945,160)
Depreciation and amortization 13,479 24,602
Interest expense 2,118,147 1,102,750
Stock based compensation expense 0 413,275
Changes in operating assets and liabilities    
Increase in prepaid expenses and other assets (18,086) (46,707)
Decrease in accounts payable (414,393) (25,487)
(Decrease)/increase in taxes payables and accrued liabilities (65,271) 92,335
Net cash used in operating activities - continuing operations (2,694,957) (1,512,524)
Net cash provided by operating activities - discontinued operations 16,187,198 10,884,984
Net cash provided by operating activities 13,492,241 9,372,460
CASH FLOWS FROM INVESTING ACTIVITIES:    
Investment in short term notes receivable (37,365) 0
Purchase of other fixed assets (153,306) (5,115)
Net cash used in investing activities - continuing operations (190,671) (5,115)
Net cash used in investing activities - discontinued operations (10,892,422) (5,556,001)
Net cash used in investing activities (11,083,093) (5,561,116)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Intercompany advances 2,707,108 2,263,291
Net cash provided by financing activities - continuing operations 2,707,108 2,263,291
Net cash used in financing activities - discontinued operations (2,870,508) (2,300,205)
Net cash used in financing activities (163,400) (36,914)
NET CHANGE IN CASH AND CASH EQUIVALENTS 2,245,748 3,774,430
NET CHANGE IN CASH AND CASH EQUIVALENTS from discontinuing operations 2,424,268 3,028,778
NET CHANGE IN CASH AND CASH EQUIVALENTS from continuing operations (178,520) 745,652
CASH AND CASH EQUIVALENTS at beginning of period 426,045 2,992,392
CASH AND CASH EQUIVALENTS at end of period 247,525 3,738,044
Non-Cash Investing and Financing Activities    
Transfer of inventory and prepayments for materials used in oil and gas projects to oil and gas properties 2,874,087 632,545
Depreciation on other fixed assets capitalized as oil and gas properties $ 206,419 $ 108,610