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

12 Months Ended

Dec. 31, 2019

Extractive Industries [Abstract]

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

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

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.

	2019
		Gas (MMCF)		Oil (MBBLS)
Proved developed and undeveloped reserves -  January 1,2019		2,268		28
Purchase of oil and natural gas properties in place		—		—
Discoveries and exclusions		—		—
Revisions		(1,785	)	4
Sales of oil and gas properties in place		—		(4	)
Production		(129	)	—
Proved developed and undeveloped reserves -  December 31,2019		354		28
Probable reserves		—		—
Possible reserves		—		—
Total reserves - December 31, 2019		354		28
Proved developed at  beginning of year		180		28
Proved developed reserves at end of year		354		28

In 2019 pursuant to the requirements of the “full cost ceiling test” for oil & gas companies we recorded a non-cash charge to operations of $2.3 million to write down its investment in West Virginia. In September 2019 the Company unsuccessfully drilled a well which resulted in dry hole. As the well did not prove up the estimated probable and possible reserves, the Company had to deem the applicable reserve estimates as impaired. In the third quarter the company booked an impairment expense of $2.3 which represents a reduction of both the estimated probable and possible reserves as well as the cost of drilling the failed well. This charge to earnings was caused by a revaluation of the Company’s non- producing oil and gas reserves.

		2018
		Gas (MMCF)			Oil (MBBLS)
Proved developed and undeveloped reserves -  January 1,2018		830			69
Purchase of oil and natural gas properties in place		—			—
Discoveries and exclusions		(520	)		(37	)
Revisions		—			—
Sales of oil and gas properties in place		—			—
Production		(130	)		(4	)
Proved developed and undeveloped reserves -  December 31,2018		180			28
Probable reserves		1,566			—
Possible reserves		522			—
Total reserves - December 31, 2018		2,268			28
Proved developed at  beginning of year		830			69
Proved developed reserves at end of year		180			28
		2019			2018
Oil and gas sales	$	590		$	682
Operating expenses		(599	)		(597	)
Depreciation, depletion and amortization		(87	)		(247	)
Impairment of oil & gas properties		(2,285	)		—
Results of operations	$	(2,381	)	$	(162	)

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

		2019			2018
Future oil and gas cash inflows	$	2,526		$	8,292
Future oil & gas operating expenses		(611	)		(1,478	)
Future development costs		0			(1,400	)
Future tax expense		(159	)		(590	)
Future net cash flows	$	1,756		$	4,824
10% discount to reflect timing of cash flows		(806	)		(1,853	)
	$	950		$	2,971

(1) Probable Reserves are those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves are as likely as not to be recovered.

(2) Possible reserves are those additional reserves that are less certain to be recovered than probable reserves