(4) Equity Investment in Sunrise Energy

3 Months Ended

Mar. 31, 2012

Equity Investment In Sunrise Energy

(4)           Equity Investment in Sunrise Energy

In late December 2010, we invested $2.375 million for a 50% interest in Sunrise Energy, LLC which then purchased existing gas reserves and gathering equipment from an unrelated third party with plans to develop and operate such reserves. Sunrise Energy also plans to develop and explore for coal-bed methane gas reserves on or near our underground coal reserves. They use the successful efforts method of accounting. We account for our interest using the equity method of accounting.

Below (in thousands) to the 100% are a condensed balance sheet at March 31, 2012 and a condensed statement of operations for the three months ended March 31, 2012 and 2011.

 Condensed Balance Sheet

	2012
Current assets	$	2,467
Oil and gas properties, net		6,201
	$	8,668
Total liabilities	$	962
Partners' capital		7,706
	$	8,668

Condensed Statement of Operations

	2012			2011
Revenue	$	607		$	1,372
Expenses		(495	)		(521	)
Net income	$	112		$	851