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LIQUIDITY
12 Months Ended
Sep. 30, 2015
LIQUIDITY [Abstract]  
LIQUIDITY
LIQUIDITY

In September 2015, Barnwell sold its interests in its principal oil and natural gas properties located in the Dunvegan and Belloy areas of Alberta, Canada. Barnwell's net proceeds from the sale, after broker's fees and other closing costs, were $14,162,000 of which $7,135,000 was withheld in an escrow account for the Canada Revenue Agency for potential amounts due for Barnwell’s Canadian income taxes related to the sale. Upon determination by the Canada Revenue Agency of any necessary tax deposits, the escrow agent is to release any such required amount of withheld funds to the Canada Revenue Agency and the remainder to Barnwell. Management believes all necessary Canadian income taxes related to the sale have been paid as of September 30, 2015, however the sufficiency of Canadian income taxes paid and the precise timing for and amount of the release of these funds to Barnwell cannot be determined until formal determination by the Canada Revenue Agency. The sales proceeds received upon closing were used for Canadian income tax payments and repayment of the $4,800,000 outstanding on Barnwell's Canadian revolving credit facility; repaying the credit facility in full. As a result of the sale, our Canadian revolving credit facility was amended on September 30, 2015 to decrease the amount of the borrowing capacity to $1,000,000 Canadian dollars, from $6,500,000 Canadian dollars, or U.S. $747,000 at the September 30, 2015 exchange rate. As of September 30, 2015, Barnwell had $15,675,000 in working capital.

Because of the combined impact of declines in oil and natural gas prices, declines in production due to oil and natural gas property sales, and natural declines in production and increasing costs due to the age of Barnwell's properties, Barnwell's oil and natural gas segment is projected to have negative cash flow from operations at current prices and production levels. These factors have also resulted in the significant decrease in the borrowing capacity of our Canadian revolving credit facility. Consequently, Barnwell is reliant upon the release of the Dunvegan sales proceeds held in escrow, the timing of which is uncertain, and land investment segment proceeds from percentage of sales payments and any potential future cash distributions from the Kukio Resort land development partnerships in order to provide sufficient liquidity to fund our future cash needs, including capital expenditures, asset retirement obligations, and general and administrative expenses. Furthermore, even if the release of the Dunvegan sales proceeds held in escrow and land investment segment proceeds provide sufficient liquidity, all or a portion of those proceeds may be needed to fund ongoing operating and general and administrative expenses and asset retirement obligations, in which case such proceeds would not be reinvested.

The amount and timing of future land investment segment proceeds from percentage of sales payments and cash distributions from the Kukio Resort land development partnerships are not under our influence or control and are highly uncertain, and the amount of future proceeds may not provide the liquidity required. There is no assurance with regards to the amount of any such future proceeds. Our liquidity issues may force us to drastically curtail existing operations, reduce or delay capital expenditures, or sell assets on less favorable terms. There can be no assurance the Company will be able to secure the sale of any of its assets or realize enough proceeds from such sales to fund its operations or to otherwise resolve its liquidity issues. Such issues could have a material adverse impact on our business, financial condition and results of operations. If liquidity issues continue beyond one year and are such that the Company is not able to sufficiently reinvest its restricted cash, the Company's ability to continue as a going concern in the longer term will become questionable.