Acquisitions

9 Months Ended

Jun. 30, 2012

Acquisitions [Abstract]

Acquisitions

NOTE 13: Acquisitions

On October 25, 2011, the Company closed an acquisition of certain Fayetteville Shale assets located in Van Buren, Conway and Cleburne Counties, Arkansas, in the core of the Fayetteville Shale. The Company acquired an average working interest of 2.3% in 193 producing non-operated natural gas wells and 1,531 acres of leasehold from a private seller. There were approximately 240 future infill drilling locations identified on the leasehold at the time of purchase. The purchase price was $17.4 million and was funded by utilizing cash on hand and $13.3 million from the Company’s bank credit facility. The purchase price was allocated to the producing wells based on fair value determined by estimated reserves. The purchase price allocation is preliminary, pending the finalization of asset valuations and 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 nine months ended June 30, 2012, were $718,740 and $2,655,150, respectively. Net income (loss) attributable to the acquisition included in the statement of operations for the quarter and nine months ended June 30, 2012, was ($96,349) and $349,598, respectively.

The following table presents the unaudited pro forma financial information assuming the Company had acquired this business on October 1, 2010:

	For the Nine Months Ended
	June 30
	2012		2011
Revenue:
As reported	$	37,490,935	$	32,567,424
Pro forma revenue		409,988		3,293,040
Pro forma	$	37,900,923	$	35,860,464
Net Income:
As reported	$	7,188,375	$	5,849,531
Pro forma income		136,315		731,559
Pro forma	$	7,324,690	$	6,581,090

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.