(3) Investment in Savoy (Savoy Energy)

9 Months Ended

Sep. 30, 2012

Savoy Energy

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 September 30, 2012 and a condensed statement of operations for the nine months ended September 30, 2012 and 2011.

Condensed Balance Sheet

	2012
Current assets	$	16,610
Oil and gas properties, net		21,887
	$	38,497
Total liabilities	$	9,396
Partners' capital		29,101
	$	38,497

Condensed Statement of Operations

	2012			2011
Revenue	$	24,585		$	22,802
Expenses		(17,931	)		(13,755	)
Net  income	$	6,654		$	9,047