Acquisitions

12 Months Ended

Sep. 30, 2015

Acquisitions [Abstract]

Acquisitions

12. ACQUISITIONS

On June 17, 2014, the Company closed an acquisition of certain assets located in the core of the Eagle Ford Shale in LaSalle and Frio Counties, Texas. 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, included 63 producing wells, 1 drilling well, 3 wells in the completion phase and 109 undeveloped locations. The adjusted purchase price at closing was  $81.5 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.

Actual and Pro Forma Impact of Acquisitions (Unaudited)

Revenues attributable to this acquisition included in the Company’s statement of operations for the year ended September 30, 2015, were $11,212,410. Net income attributable to the acquisition included in the statement of operations for the year ended September 30, 2015, was $360,172.

The following table presents the unaudited pro forma financial information assuming the Company had acquired this business on October 1, 2012:

	For the Year Ended
	September 30,
	2015		2014		2013
Revenue:
As reported	$	70,882,093	$	84,411,224	$	62,889,120
Pro forma revenue		-		16,842,595		21,562,379
Pro forma	$	70,882,093	$	101,253,819	$	84,451,499
Net Income:
As reported	$	9,321,341	$	25,001,462	$	13,960,049
Pro forma income		-		6,437,605		8,107,985
Pro forma	$	9,321,341	$	31,439,067	$	22,068,034

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.