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A. BUSINESS DESCRIPTION AND PRESENTATION
12 Months Ended
Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BUSINESS DESCRIPTION AND PRESENTATION

The Company, through its wholly owned subsidiaries Mountaineer State Energy, Inc. and Mountaineer State Operations, LLC, operates oil and gas wells and mineral leases in Athens and Meigs Counties in Ohio and in Calhoun, Jackson and Roane Counties in West Virginia. As of December 31, 2017 the Company has 153 producing oil & gas wells, 31 non-producing wells and related equipment and mineral leases covering approximately 20,000 acres.

 

The Company engaged the firm of independent oil and gas engineers Lee Keeling & Associates, Inc. to estimate the net oil and gas reserves.  On the basis of their study, the estimates of future net revenues using a present value discount of 10% were estimated to be $2.7 million at December 31, 2017.

 

The Company leased and operated Pacific Pointe Retirement Inn (“Pacific Pointe”) in King City, Oregon for several years.  Pacific Pointe, a retirement center, that has a capacity of 114 residents and provides community living with basic services such as meals, housekeeping, laundry, 24/7 staffing, transportation and social and recreational activities.

 

The lease provided that should the property be sold the lease maintained by the Company would be terminated. The third party owner sold the building effective March 30, 2017 and our lease was terminated on that date. These financial statements reflect the operations of the retirement community as a discontinued operation.