(7) Equity Investment in Sunrise Energy

12 Months Ended

Dec. 31, 2012

Equity Investment In Sunrise Energy [Text Block]

(7)   Equity Investment in Sunrise Energy

In late December 2010 we invested $2.4 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.  An additional $506,000 was invested in January 2012. Sunrise Energy also plans to develop and explore for coal-bed methane gas reserves on or near our underground coal reserves.  Development is pending an increase in natgas prices. 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% is a condensed balance sheet at December 31, for both years and a condensed statement of operations for both years.  Sunrise Energy’s proved oil and gas reserves are not material. 

 Condensed Balance Sheet

	2012		2011
Current assets	$	1,754	$	1,916
Oil and gas properties, net		6,934		6,236
	$	8,688	$	8,152
Total liabilities	$	762	$	1,558
Members' capital		7,926		6,594
	$	8,688	$	8,152

Condensed Statement of Operations

	2012			2011
Revenue	$	2,450		$	3,951
Expenses		(2,117	)		(2,107	)
Net  income	$	333		$	1,844