NOTES PAYABLE

12 Months Ended

Dec. 31, 2014

Notes Payable {1}

NOTES PAYABLE

NOTE E – NOTES PAYABLE

Notes payable is comprised of the following (in thousands):

	2014		2013
Notes payable from the acquisition of Mountaineer State Energy, Inc.	$	1,514	$	1,499
Bank Debt	$	795	$	881
	$	2,309	$	2,380

Mountaineer State Energy, Inc. was acquired in 2008. As part of the purchase price the Company issued non-interesting bearing notes with the first payment being required in 2015 and the final payment due in 2032. The balance reflected above is the present value of those obligations.

Bank debt represent loans from a bank to finance drilling and equipment at the Company’s oil and gas operation. The interest rate ranges from 5% to 5 ½ %. The loans are collateralized by the Company’s oil & gas leases as well as real property and equipment.

Aggregate annual principal maturities of long-term debt at December 31, 2014 are as follows (in thousands):

2014		881
2015		263
2016		261
2017		256
2018		107
Thereafter		541
	$	2,309