Looking like GDN x 2 LIQUIDITY AND CAPITAL RESOURCES
During the nine months ended September 30, 2013, the Corporation incurred a loss of $1,190,312 and hasnegative cash flows from operating activities before changes in non-cash working capital of $80,270. At September 30, 2013 the Corporation's working capital deficit was $7,833,692. The Corporation raised $2,232,100, net proceeds after payment of applicable finder’s fees, from an equity offering (note 13) and generated positive cash flows from operating activities of $502,776 before changes in non-cash working capital, during the three month period ended September 30, 2013. Production from the three months ended September 30, 2013 averaged 275 boe/d, however due to the Corporation’s current financial constraints no new production is expected to be brought on stream to replace declines, until additional funds are raised, and thus lower cash flow from operating activities is expected. The operating loan (see below) was in default at September 30, 2013 and was due on October 31, 2013. Subsequent to September 30, 2013 the Corporation repaid $500,000 on the loan. As of the date of these financials, despite the loan being past due, the lender has not requested repayment of the loan and the Corporation and the lender are in discussions to formally extend the due date for repayment of the loan. These events and conditions indicate a material uncertainty that may cast significant doubt about the Corporation's ability to continue as a going concern.