Property and Equipment

9 Months Ended

Mar. 31, 2015

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

As of March 31, 2015 and June 30, 2014 our oil and natural gas properties and other property and equipment consisted of the following:

	March 31, 2015			June 30, 2014
Oil and natural gas properties
Property costs subject to amortization	$	51,722,157		$	47,166,282
Less: Accumulated depreciation, depletion, and amortization	(11,372,217		)	(9,344,212		)
Unproved properties not subject to amortization	—			—
Oil and natural gas properties, net	$	40,349,940		$	37,822,070
Other property and equipment
Furniture, fixtures and office equipment, at cost	$	288,732		$	343,178
Artificial lift technology equipment, at cost	330,525			377,943
Less: Accumulated depreciation	(310,846		)	(296,294		)
Other property and equipment, net	$	308,411		$	424,827

During the nine months ended ended March 31, 2015, we incurred $225,883 of costs related to the installation of our artificial lift technology, GARP^®,on the remaining two wells of a five-well program for a third-party customer. Under the contract for these installations, we fund the majority of the incremental equipment and installation costs and will receive 25% of the net profits from production, as defined, for as long as the technology remains in the wells. We are depreciating these costs using a method and a life which approximates the timing and amounts of our expected net revenues from the wells. During the nine months ended March 31, 2015, we recorded additional depreciation of $273,301 reflecting the impairment of unrecovered installation costs of artificial lift equipment, net of estimated residual salvage value, which had been removed from three wells of a third-party customer. Artificial lift equipment cost and corresponding accumulated depreciation have both been reduced by the $273,301 impairment.