Subordinated Convertible Debentures Payable

12 Months Ended

Dec. 31, 2011

Subordinated Convertible Debentures Payable [Abstract]

Subordinated Convertible Debentures Payable

8.            Subordinated Convertible Debentures Payable:

Subordinated debentures payable consisted of:

	2011		2010
6 ½%, due June 1991	$	1,034,000	$	1,034,000
6%, due May 1992		8,025,000		8,025,000
	$	9,059,000	$	9,059,000

Since issuance, $650,000 and $152,000 of the 6½% and 6% debentures, respectively, have been converted into common stock.  This conversion feature is no longer in effect.

The Company is in default of certain sinking fund and interest payments on both subordi­nated debentures totaling $9,059,000 in principal plus accrued and unpaid interest of $18,605,000 at December 31, 2011 and $17,448,000 as of December 31, 2010.

The debentures are not collateralized and are not subordinate to each other, but are subordinate to senior indebtedness ($3,198,000 at December 31, 2011).  Payment of dividends on the Company's common stock is restricted under the terms of the two indentures pursuant to which the outstanding debentures are issued.

In order to meet liquidity needs for future periods, the Company has been and intends to continue to actively seek buyers for the remaining portion of the underdeveloped  acreage, when appropriate.

No assurances can be made that the Company can achieve this objective.