On October 19, 2007, at 1500 central daylight time, a Cessna 152, N48862, contacted a fence and nosed over following a loss of engine power shortly after takeoff. The airplane was departing from the Baker Airport, O'Neill, Nebraska, when the accident occurred. The pilot was not injured and the airplane was substantially damaged. The 14 CFR Part 91 personal flight was operating in visual meteorological conditions without a flight plan. The planned destination was the pilot's private airstrip in Royal, Nebraska. The pilot reported he took the airplane to the O'Neill airport to have wiring repaired, and to have the oil and oil filter changed. He reported the mechanic told him that there was other work that needed to be done on the airplane. The mechanic provided him with an estimated cost of the work and he decided to take the airplane elsewhere to have the work done. The pilot reported he and his son went to the airport to pick up the airplane and they were told by the mechanic that the work was not done, but that they could put the inspection plates back on the airplane. The pilot stated his son replaced the cowling. The weather had deteriorated so they decided not to take the airplane, but to come back and pick it up at another time. The mechanic was not present when he returned to pick up the airplane. Shortly after takeoff at an altitude of about 1,000 feet, the engine began to lose power. The pilot was attempting to land in a pasture when the airplane contacted a fence and nosed over. Post accident inspection revealed the engine suffered from oil starvation and that the oil filter was not installed on the engine. The Federal Aviation Administration (FAA) inspector who examined the airplane stated there was a trail of oil from where the airplane was parked all the way to the runway. The mechanic stated the pilot brought the airplane to him for repairs and for an annual inspection. He stated he made some wiring repairs and changed the oil, but the airplane needed a lot of work in order to pass an annual inspection. The mechanic stated the pilot came to pick up the airplane without having the annual inspection performed, but did not fly it out that day due to the weather. The mechanic stated he had not had a chance to perform an engine run-up and that when he went back to do so, he discovered that the pilot had taken the keys. The mechanic stated the pilot returned while he was not there on the 19th and took the airplane. During a telephone interview the mechanic stated he thought he had replaced the oil filter. The mechanic had not signed the airplane off as being returned to service. The last annual inspection performed on the airplane was in June 2004. The pilot had been denied a FAA medical certificate on July 5, 2007.