Investment in Savoy (Savoy [Member])

9 Months Ended

Sep. 30, 2014

Savoy [Member]

Investment

(3)   Investment in Savoy

We currently own a 40% 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.  Our ownership was 45% but was decreased on October 1, 2014 due to the exercise of options by Savoy’s management.

Below (in thousands) to the 100% is a condensed balance sheet at September 30, 2014, and a condensed statement of operations for the nine months ended September 30, 2014 and 2013.

Condensed Balance Sheet
	2014
Current assets	$	27,247
Oil and gas properties, net		28,940
	$	56,187
Total liabilities	$	10,814
Partners' capital		45,373
	$	56,187

Condensed Statement of Operations
	2014		2013
Revenue	$	32,135	$	29,444
Expenses		(19,423)		(19,471)
Net income	$	12,712	$	9,973

Late last year Savoy engaged Energy Spectrum Advisors Inc. (ESA) to market its Trenton-Black River oil properties located in southeast Michigan. No acceptable offers were received. Marketing efforts are on hold until oil prices recover. Savoy made a $12 million cash distribution in early October 2014; our share was $4.9 million; such amount was applied toward our bank debt.