Supplemental Oil And Gas Information | 15. Supplemental Oil and Gas Information (unaudited) Information with respect to the Company’s oil and gas producing activities is presented in the following tables. Estimates of reserves quantities, as well as future production and discounted cash flows before income taxes, were determined by LaRoche Petroleum Consultants Ltd. All of the Company’s reserves were located in the United States. Capitalized Costs Related to Oil and Gas Producing Activities The table below reflects our capitalized costs related to our oil and gas producing activities at December 31, 2015 and 2014 (in thousands): Years Ended December 31, 2015 2014 Proved oil and gas properties $ 8,286 $ 49,388 Unproved properties 552 462 Total proved and unproved oil and gas properties $ 8,838 $ 49,850 Less accumulated depreciation, depletion and amortization — (24,437) Net oil and gas properties $ 8,838 $ 25,413 As a result of the ceiling test impairment during 2015, the accumulated depreciation, depletion, and amortization has been netted against the cost to reflect the post impairment value of the oil and gas properties. Oil and Gas Related Costs The following table sets forth information concerning costs incurred, including accruals, related to the Company’s oil and gas property acquisition, exploration and development activities (in thousands): Years Ended December 31, 2015 2014 2013 Property acquisitions proved $ — $ — $ — Property acquisitions unproved 90 598 488 Exploration cost 22 2,367 914 Development cost 252 864 998 Total $ 364 $ 3,829 $ 2,400 Results of Operations from Oil and Gas Producing Activities The following table sets forth the Company’s results of operations from oil and gas producing activities (in thousands): Years Ended December 31, 2015 2014 2013 Revenues $ 5,631 $ 13,260 $ 15,325 Production costs and taxes (3,360) (4,876) (4,854) Depreciation, depletion and amortization (2,538) (2,766) (2,606) Impairment (14,526) — — Income (loss) from oil and gas producing activities $ (14,793) $ 5,618 $ 7,865 In the presentation above, no deduction has been made for indirect costs such as general corporate overhead or interest expense. No income taxes are reflected above due to the Company’s operating tax loss carry-forward position. Estimated Quantities of Oil and Gas Reserves The following table sets forth the Company’s net proved oil and gas reserves and the changes in net proved oil and gas reserves for the years ended December 31, 2013, 2014 and 2015. All of the Company’s proved reserves are located in the United States of America. Oil (MBbl) Gas (MMcf) MBOE Proved reserves at December 31, 2012 2,213 22 2,217 Revisions of previous estimates (153) 16 (151) Improved recovery — — — Purchase of reserves in place — — — Extensions and discoveries 170 — 170 Production (166) (38) (172) Sales of reserves in place (24) — (24) Proved reserves at December 31, 2013 2,040 — 2,040 Revisions of previous estimates (253) — (253) Improved recovery — — — Purchase of reserves in place — — — Extensions and discoveries 164 — 164 Production (154) — (154) Sales of reserves in place — — — Proved reserves at December 31, 2014 1,797 — 1,797 Revisions of previous estimates (790) — (790) Improved recovery — — — Purchase of reserves in place — — — Extensions and discoveries 1 — 1 Production (131) — (131) Sales of reserves in place — — — Proved reserves at December 31, 2015 877 — 877 Proved developed reserves at: December 31, 2012 1,822 22 1,826 December 31, 2013 1,575 — 1,575 December 31, 2014 1,438 — 1,438 December 31, 2015 877 — 877 Proved undeveloped reserves at: December 31, 2012 391 — 391 December 31, 2013 465 — 465 December 31, 2014 359 — 359 December 31, 2015 — — — The Company’s Proved Undeveloped Reserves at December 31, 2015 included no locations as compared to 27 locations at December 31, 2014. During 2015 , all Proved Undeveloped locations were remove d from the Company’s Proved Reserves primarily due to the low oil prices experienced during 2015. The following table identifies the reserve value by category and the respective present values, before income taxes, discounted at 10% as a percentage of total proved reserves (in thousands): Year Ended 12/31/2015 Year Ended 12/31/2014 Year Ended 12/31/2013 Oil Gas Total Oil Gas Total Oil Gas Total Total proved reserves year-end reserve report $ 8,287 — $ 8,287 $ 40,417 — $ 40,417 $ 47,856 — $ 47,856 Proved developed producing reserves (PDP) $ 7,686 — $ 7,686 $ 32,059 — $ 32,059 $ 34,440 — $ 34,440 % of PDP reserves to total proved reserves 93% — 93% 79% — 79% 72% — 72% Proved developed non- producing reserves $ 601 — $ 601 $ 2,956 — $ 2,956 $ 4,868 — $ 4,868 % of PDNP reserves to total proved reserves 7% — 7% 7% — 7% 10% — 10% Proved undeveloped reserves (PUD) $ — — $ — $ 5,402 — $ 5,402 $ 8,548 — $ 8,548 % of PUD reserves to total proved reserves — — — 14% — 14% 18% — 18% S tandardized Measure of Discounted Future Net Cash Flows The standardized measure of discounted future net cash flows from the Company’s proved oil and gas reserves is presented in the following table (in thousands): Years Ended December 31, 2015 2014 2013 Future cash inflows $ 38,566 $ 158,792 $ 183,801 Future production costs and taxes (23,500) (71,951) (82,307) Future development costs (951) (10,014) (11,162) Future income tax expenses — (13,092) (18,910) Future net cash flows 14,115 63,735 71,422 Discount at 10% for timing of cash flows (5,828) (29,204) (32,714) Standardized measure of discounted future net cash flows $ 8,287 $ 34,531 $ 38,708 The following are the principal sources of change in the standardized measure of discounted future net cash flows from the Company’s proved oil and gas reserves (in thousands): Years Ended December 31, 2015 2014 2013 Balance, beginning of year $ 34,531 $ 38,708 $ 45,354 Sales, net of production costs and taxes (1,901) (8,385) (10,471) Discoveries and extensions, net of costs 5 4,231 4,047 Purchase of reserves in place — — — Sale of reserves in place — — (767) Net changes in prices and production costs (16,009) (829) (1,277) Revisions of quantity estimates (22,431) (6,610) (4,306) Previously estimated development cost incurred during the year — 508 3,149 Changes in future development costs 4,890 (1,913) (1,392) Changes in production rates (timing) and other (56) 1,312 368 Accretion of discount 3,373 4,247 4,593 Net change in income taxes 5,885 3,262 (590) Balance, end of year $ 8,287 $ 34,531 $ 38,708 Estimated future net cash flows represent an estimate of future net revenues from the production of proved reserves using average sales prices, along with estimates of the operating costs, production taxes and future development and abandonment cost (less salvage value) necessary to produce such reserves. Future income taxes were calculated by applying the statutory federal and state income tax rates to pre-tax future net cash flows, net of the tax basis of the properties and utilizing available tax loss carryforwards related to oil and gas operations. The oil prices used for December 31, 2015, 2014, and 2013, were $43.98 , $88.34 , $90.11 per barrel of oil respectively. The Company’s proved reserves as of December 31, 2015, 2014 and 2013 were measured by using commodity prices based on the twelve month unweighted arithmetic average of the first day of the month price for the period January through December. No deduction has been made for depreciation, depletion or any indirect costs such as general corporate overhead or interest expense. |