(3) Investment in Savoy

6 Months Ended

Jun. 30, 2012

Equity Investment In Savoy

(3)           Investment in Savoy

We own a 45% interest in Savoy Energy L.P., a private company engaged in the oil and gas business primarily in the State of Michigan. Savoy uses 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 June 30, 2012 and a condensed statement of operations for the six months ended June 30, 2012 and 2011.

Condensed Balance Sheet

	2012
Current assets	$	18,486
Oil and gas properties, net		20,692
	$	39,178
Total liabilities	$	10,178
Partners' capital		29,000
	$	39,178

Condensed Statement of Operations

	2012			2011
Revenue	$	17,261		$	15,325
Expenses		(11,719	)		(8,426	)
Net  income	$	5,542		$	6,899