Note 7 - Subsequent Events	9 Months Ended
Sep. 30, 2011
Subsequent Events [Text Block]	Note 7 – Subsequent Events During 2008, the Company’s prior management failed to pay payroll taxes to the Internal Revenue Service and various state revenue agencies totaling $329,337 and $30,525 respectively. In April, 2009, the Company made a payment of $125,000 to the Internal Revenue Service. Also, in 2009 the company was informed that prior management had not filed the 2005 W-2 and W-3 tax forms which resulted in penalties and interest equaling $246,795. Then in 2011, we were notified that prior management had not filed 2007 W-2 and W-3 forms which resulted in additional penalties and interest equaling $226,554. Since this is quite a serious matter which could result in substantial penalties and interest which would be very detrimental to the Company’s financial position, the Company has hired a consulting firm to deal with the Internal Revenue Service and the State Agencies and to date has paid them $18,500. The Company has accrued all payroll liabilities and the estimated interest and penalties related to this as of September 30, 2011. In addition to the payment made in April 2009 the company has also paid $190,132. By making these payments the trust fund (employee’s withholding) has been paid and all taxes owed by Axiom TEP, LLC have been paid. The balance remaining is $7,500 in taxes for Conquest and penalties and interest which are being negotiated by our consulting firm. The Company is accruing penalties and interest monthly. On May 12, 2011 we received notice that the 2005 payroll tax penalty for not filing the W-2 has been abated. Therefore, the balance owed as of July 6, 2011 is $401,915. The consultants are currently negotiating abatement of additional penalties and interest. The balance has been fully accrued as of September 30, 2011. On March 3, 2011 the Company had entered into an Agreement with a third party financing entity to eliminate the Production Payment on the Marion property with a cash payment due on March 31, 2011 in the amount of $2,800,000. The Company further agreed to pay the financing entity a sum of $340,000 to purchase a Nitrogen Recovery Unit on the Marion property. The Company was to assume all contingent liabilities and burdens on the property. The Company would then own the Marion property free and clear of any mortgage. This Agreement was amended as of April 1, 2011 whereby the Company was required to make the payment on April 30, 2011. The Agreement was then amended as of May 1, 2011 whereby the Company is now required to make the payment as of June 30, 2011. The purchase price was increased to $3,000,000 to achieve the extension. Further, if the Company had made the payment on or before June 30, 2011, the financing entity will also receive a stock option to purchase 500,000 shares of common stock at a stock price of $.07/share. The term of the option is ten years at a stock price of $.05/share. The Agreement was then amended as of July 1, 2011 whereby the Company is now required to make the payment as of August 31, 2011. The purchase price was increased to $3,200,000 to achieve the extension. Further, the Stock Option relating to the May 1, 2011 extension became vested; and, if the Company had made the purchase on or before August 31, 2011, the financing company will also receive another stock option to purchase 500,000 shares of common stock at a stock price of $.06/share. The term of the option is ten years. The agreement was amended on October 1, 2011, whereby the Company was now required to make payment as of October 31, 2011. The purchase price remained at $3,200,000 to achieve the extension. Further the stock option relating to the July 1, 2011 extension became vested; and the company issued another stock option, fully vested, in the amount of 375,000 shares. The Company failed to make the payment on October 31, 2011. The Company has been denied another extension. The financing company is attempting to sell the Marion property. In November 2011, PKF, the accounting firm retained by past management to prepare financials associated with becoming publicly traded, filed a Writ of Garnishment which froze the bank accounts of the Company. With the Company unable to utilize the small amount of cash it has left; day to day matters, such as paying the remaining employees, paying rent, and paying the current audit firm to prepare its portion of the 3rd quarter filing was not satisfied. The Company has now managed to pay a portion of the audit bill to make the filing. The Company continues to attempt to raise funds to maintain its existence.

Note 7 - Subsequent Events

9 Months Ended

Sep. 30, 2011

Note 7 – Subsequent Events

During 2008, the Company’s prior management failed to pay payroll taxes to the Internal Revenue Service and various state revenue agencies totaling $329,337 and $30,525 respectively. In April, 2009, the Company made a payment of $125,000 to the Internal Revenue Service. Also, in 2009 the company was informed that prior management had not filed the 2005 W-2 and W-3 tax forms which resulted in penalties and interest equaling $246,795. Then in 2011, we were notified that prior management had not filed 2007 W-2 and W-3 forms which resulted in additional penalties and interest equaling $226,554. Since this is quite a serious matter which could result in substantial penalties and interest which would be very detrimental to the Company’s financial position, the Company has hired a consulting firm to deal with the Internal Revenue Service and the State Agencies and to date has paid them $18,500. The Company has accrued all payroll liabilities and the estimated interest and penalties related to this as of September 30, 2011. In addition to the payment made in April 2009 the company has also paid $190,132. By making these payments the trust fund (employee’s withholding) has been paid and all taxes owed by Axiom TEP, LLC have been paid. The balance remaining is $7,500 in taxes for Conquest and penalties and interest which are being negotiated by our consulting firm. The Company is accruing penalties and interest monthly. On May 12, 2011 we received notice that the 2005 payroll tax penalty for not filing the W-2 has been abated. Therefore, the balance owed as of July 6, 2011 is $401,915. The consultants are currently negotiating abatement of additional penalties and interest. The balance has been fully accrued as of September 30, 2011.

On March 3, 2011 the Company had entered into an Agreement with a third party financing entity to eliminate the Production Payment on the Marion property with a cash payment due on March 31, 2011 in the amount of $2,800,000. The Company further agreed to pay the financing entity a sum of $340,000 to purchase a Nitrogen Recovery Unit on the Marion property. The Company was to assume all contingent liabilities and burdens on the property. The Company would then own the Marion property free and clear of any mortgage. This Agreement was amended as of April 1, 2011 whereby the Company was required to make the payment on April 30, 2011. The Agreement was then amended as of May 1, 2011 whereby the Company is now required to make the payment as of June 30, 2011. The purchase price was increased to $3,000,000 to achieve the extension. Further, if the Company had made the payment on or before June 30, 2011, the financing entity will also receive a stock option to purchase 500,000 shares of common stock at a stock price of $.07/share. The term of the option is ten years at a stock price of $.05/share. The Agreement was then amended as of July 1, 2011 whereby the Company is now required to make the payment as of August 31, 2011. The purchase price was increased to $3,200,000 to achieve the extension. Further, the Stock Option relating to the May 1, 2011 extension became vested; and, if the Company had made the purchase on or before August 31, 2011, the financing company will also receive another stock option to purchase 500,000 shares of common stock at a stock price of $.06/share. The term of the option is ten years. The agreement was amended on October 1, 2011, whereby the Company was now required to make payment as of October 31, 2011. The purchase price remained at $3,200,000 to achieve the extension. Further the stock option relating to the July 1, 2011 extension became vested; and the company issued another stock option, fully vested, in the amount of 375,000 shares. The Company failed to make the payment on October 31, 2011. The Company has been denied another extension. The financing company is attempting to sell the Marion property.

In November 2011, PKF, the accounting firm retained by past management to prepare financials associated with becoming publicly traded, filed a Writ of Garnishment which froze the bank accounts of the Company. With the Company unable to utilize the small amount of cash it has left; day to day matters, such as paying the remaining employees, paying rent, and paying the current audit firm to prepare its portion of the 3rd quarter filing was not satisfied. The Company has now managed to pay a portion of the audit bill to make the filing. The Company continues to attempt to raise funds to maintain its existence.

Conquest Petroleum Inc 10-Q