CONCENTRATIONS OF CREDIT RISK

12 Months Ended

Sep. 30, 2011

CONCENTRATIONS OF CREDIT RISK

CONCENTRATIONS OF CREDIT RISK

17.       CONCENTRATIONS OF CREDIT RISK

Our oil and natural gas segment’s primary concentration of credit risk is associated with four individually significant customers, Shell Trading Canada, ProGas Limited, Glencoe Resources Ltd. and Entegral Energy Marketing Inc.  At September 30, 2011, these customers accounted for 37%, 18%, 13% and 15%, respectively, or in aggregate $1,591,000, of our oil and natural gas accounts receivables.  No other customer accounted for more than 10% of our oil and natural gas accounts receivables.

At September 30, 2011, Barnwell’s contract drilling subsidiary had accounts receivables from federal, state of Hawaii and county entities totaling $529,000.  Barnwell has lien rights on wells drilled and pumps installed for federal, state of Hawaii, county and private entities.

Management does not believe significant credit risk related to these trade receivables exists at September 30, 2011 based on prior historical experience.