Acquisitions

6 Months Ended

Mar. 31, 2015

Acquisitions [Abstract]

Acquisitions

NOTE 12: Acquisitions

On June 17, 2014,  the Company closed an acquisition of certain Eagle Ford Shale assets located in LaSalle and Frio Counties, Texas, in the core of the Eagle Ford Shale. The assets were purchased from private sellers and included a 16% non-operated working interest in 11,100 gross (1,775 net) acres. The acreage is largely contiguous, entirely held by production and, at the time of closing, contained 63 producing wells (57 Eagle Ford, 5 Pearsall and 1 Buda) and 109 undeveloped Eagle Ford locations. The adjusted purchase price at closing was  $81.7 million and was funded by utilizing the Company’s bank credit facility. The purchase price was allocated to the producing wells and undeveloped locations based on fair value determined by estimated reserves and adjusted for working capital. The purchase price allocation is preliminary, pending the finalization of working capital adjustments. Adjustments to the estimated fair values may be recorded during the allocation period, not to exceed one year from the date of acquisition.

Actual and Pro Forma Impact of Acquisitions (Unaudited)

Revenues attributable to this acquisition included in the Company’s statement of operations for the quarter and six months ended March 31, 2015, were $2,479,528 and $6,750,394, respectively. Net income (loss) attributable to the acquisition included in the statement of operations for the quarter and six months ended March 31, 2015, was ($214,172) and $658,747, respectively. These amounts do not include gains on derivative contracts as noted on the Statement of Operations.

The following table presents the unaudited pro forma financial information assuming the Company had acquired this business on October 1, 2013:

	For the Six Months Ended
	March 31,
	2015		2014
Revenue:
As reported	$	45,678,204	$	38,148,801
Pro forma revenue		-		12,048,609
Pro forma	$	45,678,204	$	50,197,410
Net Income:
As reported	$	10,937,968	$	10,580,891
Pro forma income		-		4,666,818
Pro forma	$	10,937,968	$	15,247,709

The unaudited pro forma financial information is for informational purposes only and does not purport to present what our results would actually have been had this transaction actually occurred on the date presented or to project our results of operations or financial position for any future period.