v3.6.0.2

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Oil sales	$ 153,983	$ 187,149
Natural gas sales	28,218	55,516
Royalty revenues	898	941
Sale of oil and natural gas properties		27,120
Total revenues	183,099	270,726
Oil and gas producing activities:
Lease operating expenses	282,558	216,799
Production taxes	14,114	18,425
Depreciation, depletion, amortization and accretion	178,542	207,969
Impairment	252,000
Gas gathering:
Operating expenses		1,406
Depreciation		11,055
General and administrative expenses:
Director fees	10,000	10,000
Investor relations	1,907	3,163
Legal, auditing and professional fees	29,171	12,565
Consulting fees executive services-Related Parties	16,500	47,400
Other administrative expenses	15,166	19,154
Depreciation		142
Total operating expenses	799,958	548,078
Operating loss	(616,859)	(277,352)
Other income (expense)
Interest income (expense), net	(22,715)	(27,158)
Total other expense	(22,715)	(27,158)
Loss before income taxes	(639,574)	(304,510)
Income tax benefit (expense)
Net loss attributable to Arete Industries, Inc.	(639,574)	(304,510)
Net Income Applicable to Common Stockholders:
Net loss	(639,574)	(304,510)
Preferred stock dividends declared	48,509
Net income (loss) applicable to common stockholders	$ (688,083)	$ (304,510)
Earnings (Loss) Per Share Applicable to Common Stockholders:
Basic	$ (0.05)	$ (0.02)
Diluted	$ (0.05)	$ (0.02)
Weighted Average Number of Common Shares Outstanding:
Basic	14,295,400	12,810,000
Diluted	14,295,400	12,810,000

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Gas gathering.

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Investor relations.

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Related parties.

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The expense recognized in the current period that allocates the cost of a tangible asset over the asset's useful life. This element applies only to an asset used in the production of goods sold.

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Amount of gain (loss) on sale or disposal of proven and unproven oil and gas properties.

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The expense recorded to reduce the value of oil and gas assets consisting of proved properties and unproved properties as the estimate of future successful production from these properties is reduced.

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Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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