v3.8.0.1

STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
STATEMENTS OF OPERATIONS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Revenues:
Oil sales	$ 889,285	$ 777,123
Natural gas sales	82,873	143,907
Royalty revenues	2,325	4,871
Sale of oil and natural gas properties	0	27,120
Total revenues	974,483	953,021
Oil and gas producing activities:
Lease operating expenses	1,064,427	754,362
Production taxes	76,715	84,576
Other operating expense	0	160,011
Depreciation, depletion, amortization and accretion	533,333	816,481
Impairment	3,358,000	3,231,000
Gas gathering:
Operating expenses	0	1,406
Depreciation	0	44,362
Impairment	0	56,648
General and administrative expenses:
Director fees	40,000	47,833
Investor relations	12,209	28,128
Legal, auditing and professional fees	183,683	116,078
Consulting fees executive services-Related Parties	66,732	172,217
Other administrative expenses	41,187	74,634
Depreciation	0	428
Total operating expenses	5,376,286	5,588,164
Operating loss	(4,401,803)	(4,635,143)
Other income (expense):
Other income	875	0
Interest expense net	(98,117)	(111,910)
Loss before income taxes	(4,499,045)	(4,747,053)
Income tax benefit (expense)	0	0
Net loss attributable to Arête Industries, Inc.	(4,499,045)	(4,747,053)
Net Loss Applicable to Common Stockholders:
Net loss attributable to Arête Industries, Inc.	(4,499,045)	(4,747,053)
Preferred stock dividends declared	(191,961)	0
Net loss applicable to common stockholders	$ (4,691,006)	$ (4,747,053)
Loss Per Share Applicable to Common Stockholders:
Basic	$ (0.32)	$ (0.37)
Diluted	$ (0.32)	$ (0.37)
Weighted Average Number of Common Shares Outstanding:
Basic	14,528,345	12,882,000
Diluted	14,528,345	12,882,000

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The aggregate value of preferred stock dividends and other adjustments necessary to derive net income apportioned to common stockholders.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
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A tax assessed on oil and gas production.

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-Section S99
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Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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Revenue earned during the period from the leasing or otherwise lending to a third party the entity's rights or title to certain property. Royalty revenue is derived from a percentage or stated amount of sales proceeds or revenue generated by the third party using the entity's property. Examples of property from which royalties may be derived include patents and oil and mineral rights.

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The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period.

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Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period.

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