SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED)

12 Months Ended

Dec. 31, 2014

SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED)

SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED)

NOTE N - SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED)

The Company’s net ownership interests in estimated quantities of proved oil and natural gas reserves and changes in net proved reserves, all of which are located in the continental United States, are summarized below:

	2014
	Gas (MMCF)			Oil (MBBLS)
Proved developed and undeveloped reserves -
January 1, 2014		2,887			173
Purchase of oil and natural gas properties in place		0			0
Discoveries and exclusions		0			0
Revisions		148			(24	)
Sales of oil and gas properties in place		0			0
Production		(169	)		(10	)
December 31, 2014		2,866			139
Proved developed at  beginning of year		719			105
Proved developed reserves at end of year		698			70
	2013
	Gas (MMCF)			Oil (MBBLS)
Proved developed and undeveloped reserves -
January 1, 2013		2,849			103
Purchase of oil and natural gas properties in place		0			0
Discoveries and exclusions		0			0
Revisions		232			82
Sales of oil and gas properties in place		0			0
Production		(194	)		(12	)
December 31, 2013		2,887			173
Proved developed at  beginning of year		593			35
Proved developed reserves at end of year		719			105

The following table presents the changes in our total proved undeveloped reserves.

	Gas			Oil
	(MMCF)			(MBBLS)
Proved undeveloped reserves as of December 31, 2012		2,256			68
Revaluation of undeveloped reserves		-			-
Conversion to prove developed reserves		(88	)		-
Proved undeveloped reserves as of December 31, 2013		2,168			68
Conversion to prove developed reserves		-			-
Revaluation of undeveloped reserves		-			-
Proved undeveloped reserves as of December 31, 2014		2,168			68

The following table reflects the capitalized costs relating to oil and gas producing activities.

	2014			2013
Property acquisition costs:
Proved properties	$	11,496		$	11,328
Unproved properties		-			-
Accumulated depreciation, depletion and amortization
and valuation allowance		(2,687	)		(2,178	)
Net capitalized costs	$	8,809		$	9,190

The following table reflects the costs incurred in oil and gas property acquisition, exploration and development activities.

	2014		2013
Property acquisition costs:
Proved properties	$	-	$	-
Unproved properties		-		-
Exploration costs		-		-
Development costs		129		240
Total cost incurred	$	129	$	240

The following table reflects revenues and expenses directly associated with our oil and gas producing activities, including general and administrative expenses directly related to such producing activities.  They do not include any allocation of interest costs or general corporate overhead and, therefore, are not necessarily indicative of the contribution to net earnings of our oil and gas operations.  Income tax expense has been calculated by applying statutory income tax rates to oil and gas sales after deducting costs, including depreciation, depletion and amortization and after giving effect to permanent differences.

	2014			2013
Oil and gas sales	$	1,489		$	1,477
Operating expenses		(1,233	)		(1213	)
Depreciation, depletion and amortization		(620	)		(654	)
Impairment of oil & gas properties		-			(200	)
Results of operations	$	(364	)	$	(590	)

The following table reflects the standardized measure of future net cash flows related to our proved reserves

	2014			2013
Future oil and gas cash inflows	$	25,595		$	30,060
Future oil & gas operating expenses		(4,170	)		(5,445	)
Future development costs		(2,983	)		(3,350	)
Future tax expense		(1,666	)		(1,257	)
Future net cash flows	$	16,776		$	20,008
10% discount to reflect timing of cash flows		(5,998	)		(7,787	)
	$	10,778		$	12,221