(5) Investment in Sunrise Energy (Sunrise Energy)

3 Months Ended

Mar. 31, 2013

Sunrise Energy

Equity Investment In Sunrise Energy

(5)  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 $500 thousand 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. 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, 2013 and a condensed statement of operations for the three months ended March 31, 2013 and 2012.

Condensed Balance Sheet

	2013
Current assets	$	2,041
Oil and gas properties, net		6,858
	$	8,899
Total liabilities	$	728
Partners' capital		8,171
	$	8,899

Condensed Statement of Operations

	2013			2012
Revenue	$	812		$	607
Expenses		(568	)		(495	)
Net income	$	244		$	112