Acquisitions

12 Months Ended

Sep. 30, 2012

Acquisitions [Abstract]

ACQUISITIONS

12. 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.

Actual and Pro Forma Impact of Acquisitions (Unaudited)

Revenue attributable to this acquisition included in the Company’s Statement of Operations for the year ended September 30, 2012, was $3,434,850. Net income attributable to the acquisition included in the Statement of Operations for the year ended September 30, 2012, was $200,158.

Presented below is the unaudited pro forma financial information assuming the Company had acquired this business on October 1, 2010. 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. The pro forma financial information was not provided for the comparative period ending September 30, 2010, as the information could not be obtained from the seller.

	For the Year Ended
	September 30
	2012		2011
Revenue:
As reported	$	48,532,317	$	44,976,651
Pro forma revenue		409,988		4,433,282
Pro forma	$	48,942,305	$	49,409,933
Net Income:
As reported	$	7,370,996	$	8,493,912
Pro forma income		136,315		644,859
Pro forma	$	7,507,311	$	9,138,771