Barnwell Industries (BRN) 10-Q 12 Feb 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Feb. 08, 2016
Document and Entity Information
Entity Registrant Name	BARNWELL INDUSTRIES INC
Entity Central Index Key	10,048
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		8,277,160
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 5,837	$ 8,471
Restricted cash	7,203	7,458
Accounts and other receivables, net of allowance for doubtful accounts of: $39,000 at December 31, 2015; $23,000 at September 30, 2015	1,126	2,300
Investment held for sale	1,192	1,192
Real estate held for sale	5,132	5,132
Other current assets	1,499	1,125
Total current assets	21,989	25,678
Restricted cash, net of current portion	88	119
Investments	6,451	6,288
Property and equipment	74,456	75,953
Accumulated depletion, depreciation, and amortization	(64,937)	(66,485)
Property and equipment, net	9,519	9,468
Total assets	38,047	41,553
Current liabilities:
Accounts payable	1,688	2,653
Accrued capital expenditures	479	363
Accrued operating and other expenses	1,162	1,343
Accrued incentive and other compensation	395	560
Billings in excess of costs	212	569
Payable to joint interest owners	224	428
Current portion of asset retirement obligation	681	506
Current portion of long-term debt	3,440	3,440
Other current liabilities	121	141
Total current liabilities	8,402	10,003
Liability for retirement benefits	5,151	5,409
Asset retirement obligation	6,181	6,430
Deferred income taxes	509	449
Total liabilities	$ 20,243	$ 22,291
Commitments and contingencies (Note 13)
Equity:
Common stock, par value $0.50 per share; authorized, 20,000,000 shares: 8,445,060 issued at December 31, 2015 and September 30, 2015	$ 4,223	$ 4,223
Additional paid-in capital	1,338	1,335
Retained earnings	16,058	17,467
Accumulated other comprehensive loss, net	(2,239)	(2,122)
Treasury stock, at cost: 167,900 shares at December 31, 2015 and September 30, 2015	(2,286)	(2,286)
Total stockholders' equity	17,094	18,617
Non-controlling interests	710	645
Total equity	17,804	19,262
Total liabilities and equity	$ 38,047	$ 41,553

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 39	$ 23
Common stock, par value (in dollars per share)	$ 0.50	$ 0.50
Common stock, authorized shares	20,000,000	20,000,000
Common stock, issued shares	8,445,060	8,445,060
Treasury stock, shares	167,900	167,900

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues:
Oil and natural gas	$ 848	$ 2,972
Contract drilling	832	1,933
Sale of interest in leasehold land, net	129	1,032
Gas processing and other	44	95
Total revenues	1,853	6,032
Costs and expenses:
Oil and natural gas operating	739	1,623
Contract drilling operating	550	1,525
General and administrative	1,841	2,275
Depletion, depreciation, and amortization	362	979
Interest expense	33	90
Total costs and expenses	3,525	6,492
Loss before equity in income of affiliates and income taxes	(1,672)	(460)
Equity in income of affiliates	163	88
Loss before income taxes	(1,509)	(372)
Income tax benefit	(193)	(89)
Net loss	(1,316)	(283)
Less: Net earnings attributable to non-controlling interests	93	184
Net loss attributable to Barnwell Industries, Inc.	$ (1,409)	$ (467)
Basic and diluted net loss per common share attributable to Barnwell Industries, Inc. stockholders	$ (0.17)	$ (0.06)
Weighted-average number of common shares outstanding:
Basic and diluted (in shares)	8,277,160	8,277,160

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,316)	$ (283)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes of $0	(156)	(407)
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0	39	26
Total other comprehensive loss	(117)	(381)
Total comprehensive loss	(1,433)	(664)
Less: Comprehensive income attributable to non-controlling interests	93	184
Comprehensive loss attributable to Barnwell Industries, Inc.	$ (1,526)	$ (848)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, taxes	$ 0	$ 0
Amortization of accumulated other comprehensive loss into net periodic benefit cost, taxes	$ 0	$ 0

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (1,316)	$ (283)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Equity in income of affiliates	(163)	(88)
Depletion, depreciation, and amortization	362	979
Loss on sale of investment	0	16
Retirement benefits expense	133	85
Accretion of asset retirement obligation	115	142
Deferred income tax expense (benefit)	16	(92)
Asset retirement obligation payments	(84)	(52)
Share-based compensation expense	0	20
Retirement plan contributions	(351)	(251)
Sale of interest in leasehold land, net	(129)	(1,032)
Decrease from changes in current assets and liabilities	(1,003)	(1,000)
Net cash used in operating activities	(2,420)	(1,556)
Cash flows from investing activities:
Proceeds from sale of interest in leasehold land, net of fees paid	129	1,032
Proceeds from sale of investment, net of closing costs	0	266
Payments to acquire oil and natural gas properties	0	(526)
Capital expenditures - oil and natural gas	(343)	(293)
Capital expenditures - all other	(2)	0
Net cash (used in) provided by investing activities	(216)	479
Cash flows from financing activities:
Repayments of long-term debt	0	(402)
Decrease in restricted cash	55	0
Contributions from non-controlling interests	0	45
Distributions to non-controlling interests	(28)	(211)
Net cash provided by (used in) financing activities	27	(568)
Effect of exchange rate changes on cash and cash equivalents	(25)	(271)
Net decrease in cash and cash equivalents	(2,634)	(1,916)
Cash and cash equivalents at beginning of period	8,471	16,104
Cash and cash equivalents at end of period	$ 5,837	$ 14,188

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Non-controlling Interests
Balance, beginning of period (in shares) at Sep. 30, 2014		8,277,160
Balance, beginning of period at Sep. 30, 2014	$ 19,945	$ 4,223	$ 1,315	$ 16,204	$ (258)	$ (2,286)	$ 747
Increase (Decrease) in Stockholders' Equity
Contributions from non-controlling interests	45						45
Distributions to non-controlling interests	(211)						(211)
Net earnings (loss)	(283)			(467)			184
Share-based compensation	7		7
Foreign currency translation adjustments, net of taxes of $0	(407)				(407)
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0	26				(26)
Balance, end of period (in shares) at Dec. 31, 2014		8,277,160
Balance, end of period at Dec. 31, 2014	19,122	$ 4,223	1,322	15,737	(639)	(2,286)	765
Balance, beginning of period (in shares) at Sep. 30, 2015		8,277,160
Balance, beginning of period at Sep. 30, 2015	19,262	$ 4,223	1,335	17,467	(2,122)	(2,286)	645
Increase (Decrease) in Stockholders' Equity
Distributions to non-controlling interests	(28)						(28)
Net earnings (loss)	(1,316)			(1,409)			93
Share-based compensation	3		3
Foreign currency translation adjustments, net of taxes of $0	(156)				(156)
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0	39				39
Balance, end of period (in shares) at Dec. 31, 2015		8,277,160
Balance, end of period at Dec. 31, 2015	$ 17,804	$ 4,223	$ 1,338	$ 16,058	$ (2,239)	$ (2,286)	$ 710

CONDENSED CONSOLIDATED STATEME9

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Statement of Stockholders' Equity [Abstract]
Foreign currency translation adjustments, taxes	$ 0	$ 0
Amortization of accumulated other comprehensive loss into net periodic benefit cost, taxes	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The condensed consolidated financial statements include the accounts of Barnwell Industries, Inc. and all majority-owned subsidiaries (collectively referred to herein as “Barnwell,” “we,” “our,” “us,” or the “Company”), including a 77.6% -owned land investment general partnership (Kaupulehu Developments), a 75% -owned land investment partnership (KD Kona 2013 LLLP) and two 80%-owned joint ventures (Kaupulehu 2007, LLLP and Kaupulehu Investors, LLC). All significant intercompany accounts and transactions have been eliminated. Barnwell’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in variable interest entities (“VIE”) in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method. Unless otherwise indicated, all references to “dollars” in this Form 10-Q are to U.S. dollars. Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements and notes have been prepared by Barnwell in accordance with the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Barnwell’s September 30, 2015 Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of September 30, 2015 has been derived from audited consolidated financial statements. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at December 31, 2015 , results of operations, comprehensive loss, cash flows and equity for the three months ended December 31, 2015 and 2014 , have been made. The results of operations for the period ended December 31, 2015 are not necessarily indicative of the operating results for the full year. Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management of Barnwell to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ significantly from those estimates. Significant Accounting Policies There have been no changes to Barnwell’s significant accounting policies as described in the Notes to Consolidated Financial Statements included in Item 8 of the Company’s most recently filed Annual Report on Form 10-K. Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU relates to discontinued operations reporting for disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on an entity’s operations and financial results. The standard expands the disclosures for discontinued operations and requires new disclosures related to individually material disposals that do not meet the definition of a discontinued operation. The Company adopted the provisions of this ASU effective October 1, 2015. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements.

LIQUIDITY

LIQUIDITY	3 Months Ended
	Dec. 31, 2015
Risks and Uncertainties [Abstract]
LIQUIDITY	LIQUIDITY In September 2015, Barnwell sold its interests in its principal oil and natural gas properties located in the Dunvegan and Belloy areas of Alberta, Canada. Barnwell's net proceeds from the sale, after broker's fees and other closing costs, were $14,162,000 of which $6,904,000 , as of December 31, 2015 , is being held in an escrow account for the Canada Revenue Agency, for potential amounts due for Barnwell’s Canadian income taxes related to the sale. Upon determination by the Canada Revenue Agency of any necessary tax deposits, the escrow agent is to release any such required amount of withheld funds to the Canada Revenue Agency and the remainder to Barnwell. Management believes all necessary Canadian income taxes related to the sale have been paid as of December 31, 2015 , however the sufficiency of Canadian income taxes paid and the precise timing for and amount of the release of these funds to Barnwell cannot be determined until formal determination by the Canada Revenue Agency. On September 30, 2015, as a result of the sale of Dunvegan, Barnwell’s revolving credit facility at Royal Bank of Canada was amended and reduced by the bank to $1,000,000 Canadian dollars, or U.S. $723,000 at the December 31, 2015 exchange rate. Barnwell repaid the credit facility in full in September 2015 from the proceeds of the disposition and as of December 31, 2015 had $690,000 of available credit after consideration of issued letters of credit. Barnwell's oil and natural gas segment is subject to the provisions of the Alberta Energy Regulator's (“AER”) Licensee Liability Rating (“LLR”) program. Under the LLR program the AER calculates a Liability Management Ratio (“LMR”) for a company based on the ratio of the company’s deemed assets over its deemed liabilities relating to wells and facilities for which the company is the licensed operator. The value of the deemed assets is based on each well's most recent twelve months of production and an industry average netback as determined by the AER annually. The LMR assessment is designed to assess a company’s ability to address its suspension, abandonment, remediation, and reclamation liabilities. Companies with a LMR less than 1.0 are required to deposit funds with the AER to cover future deemed liabilities. At December 31, 2015 , the Company had sufficient deemed asset value that no security deposit was due. However, in February 2016 Barnwell's LMR fell below 1.0 , due to the transfer of a well license with a favorable LMR, and Barnwell is required to make a cash deposit with the AER of approximately $130,000 . It is probable that Barnwell will have to transfer an additional well license which would necessitate an additional cash deposit with the AER and/or the implementation of a structured LLR Program Management Plan; management currently estimates that the total amount of the required deposits in fiscal 2016 could be as much as $3,000,000 , however we cannot be certain of the ultimate amount at this time. Due to the decline in oil and natural gas prices and related netbacks over the past year it is possible that the value of the Company’s deemed assets will further decline which in turn could dictate that the Company place a larger deposit with the AER than is currently estimated. This requirement to provide security deposit funds to the AER in the future will result in the diversion of operating cash flows that could otherwise be used to fund oil and natural gas reserve replacement efforts, which in turn will have a material adverse effect on our business, financial condition and results of operations. If Barnwell fails to comply with the requirements of the LLR program, Barnwell's oil and natural gas subsidiary would be subject to the AER's enforcement provisions which could include suspension of operations and non-compliance fees and could ultimately result in the AER serving the Company with a closure order to shut-in all operated wells. Additionally, if Barnwell is non-compliant, the Company would be prohibited from transferring well licenses which would prohibit us from selling any oil and natural gas assets until the required cash deposit is made with the AER. Because of the combined impact of declines in oil and natural gas prices, declines in production due to oil and natural gas property sales as well as from natural declines, and increasing costs due to the age of Barnwell's properties, Barnwell's oil and natural gas segment is projected to have negative cash flow from operations at current prices and production levels. These factors have also resulted in the significant decrease in the borrowing capacity of our Canadian revolving credit facility. Consequently, Barnwell is reliant upon the release of the Dunvegan sales proceeds held in escrow, the timing of which is uncertain, and land investment segment proceeds from percentage of sales payments and any potential future cash distributions from the Kukio Resort land development partnerships in order to provide sufficient liquidity to fund our future cash needs, including capital expenditures, the aforementioned deposits with the AER, the asset retirement obligations, and general and administrative expenses. Furthermore, even if the release of the Dunvegan sales proceeds held in escrow and land investment segment proceeds provide sufficient liquidity, all or a portion of those proceeds will be needed to fund ongoing operating and general and administrative expenses, deposits with the AER, and asset retirement obligations, such that these proceeds used would not be reinvested. There is no assurance that the Company will have sufficient cash to fund operations beyond the short term as it is dependent upon the timely release of the Dunvegan sales proceeds, the receipt of sufficient land investment segment percentage of sales payments or the receipt of sufficient cash distributions from the Kukio Resort land development partnerships to fund operations. The timing of these items is highly uncertain and largely out of our control. If these sources of cash are not timely or are insufficient, we may be forced to implement measures such as asset sales, including potentially the New York and/or Honolulu offices, on an accelerated and potentially unfavorable basis, short-term bridge financing, reductions in operations and general and administrative expenses, or other mechanisms that will bridge the Company's cash needs until sufficient amounts of the sources of cash above are received in the near term. There can be no assurance the Company will be able to secure short-term financing or the sale of any of its assets within the time frame necessary, or realize enough proceeds from such sales to fund its operations or to otherwise resolve its liquidity issues. Such issues could have a material adverse impact on our business, financial condition and results of operations. If liquidity issues continue beyond one year and are such that the Company is not able to sufficiently reinvest its future cash inflows, the Company's ability to continue as a going concern beyond the short term will need to be reassessed in consideration of the facts and circumstances at that time.

LOSS PER COMMON SHARE

LOSS PER COMMON SHARE	3 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER COMMON SHARE	LOSS PER COMMON SHARE Basic earnings (loss) per share is computed using the weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated using the treasury stock method to reflect the assumed issuance of common shares for all potentially dilutive securities, which consist of outstanding stock options. Potentially dilutive shares are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive. Options to purchase 621,250 shares of common stock were excluded from the computation of diluted shares for both the three months ended December 31, 2015 and 2014 , as their inclusion would have been antidilutive. Reconciliations between net loss attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net loss per share computations are detailed in the following tables: Three months ended December 31, 2015 Net Loss (Numerator) Shares (Denominator) Per-Share Amount Basic net loss per share $ (1,409,000 ) 8,277,160 $ (0.17 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (1,409,000 ) 8,277,160 $ (0.17 ) Three months ended December 31, 2014 Net Loss (Numerator) Shares (Denominator) Per-Share Amount Basic net loss per share $ (467,000 ) 8,277,160 $ (0.06 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (467,000 ) 8,277,160 $ (0.06 )

INVESTMENT HELD FOR SALE

INVESTMENT HELD FOR SALE	3 Months Ended
	Dec. 31, 2015
Investment held for sale [Abstract]
INVESTMENT HELD FOR SALE	4. INVESTMENT HELD FOR SALE At December 31, 2015 , Kaupulehu 2007, LLLP ("Kaupulehu 2007") owned one residential lot available for sale in the Lot 4A Increment I area located in the North Kona District of the island of Hawaii, north of Hualalai Resort at Historic Ka`upulehu, between the Queen Kaahumanu Highway and the Pacific Ocean. A second residential parcel was sold in October 2014 for $1,250,000 for a nominal loss which is included in "General and administrative" expenses in the Condensed Consolidated Statements of Operations for the three months ended December 31, 2014 .

REAL ESTATE HELD FOR SALE

REAL ESTATE HELD FOR SALE	3 Months Ended
	Dec. 31, 2015
Real Estate [Abstract]
REAL ESTATE HELD FOR SALE	REAL ESTATE HELD FOR SALE At December 31, 2015 , Kaupulehu 2007 also owned one luxury residence available for sale in Lot 4A Increment I.

INVESTMENTS

INVESTMENTS	3 Months Ended
	Dec. 31, 2015
Investments, All Other Investments [Abstract]
INVESTMENTS	INVESTMENTS A summary of Barnwell’s investments is as follows: December 31, 2015 September 30, 2015 Investment in Kukio Resort land development partnerships $ 6,401,000 $ 6,238,000 Investment in leasehold land interest – Lot 4C 50,000 50,000 Total investments $ 6,451,000 $ 6,288,000 Investment in Kukio Resort land development partnerships On November 27, 2013, Barnwell, through a wholly-owned subsidiary, entered into two limited liability limited partnerships, KD Kona 2013 LLLP and KKM Makai, LLLP, and indirectly acquired a 19.6% non-controlling ownership interest in each of KD Kukio Resorts, LLLP, KD Maniniowali, LLLP and KD Kaupulehu, LLLP for $5,140,000 . These entities own certain real estate and development rights interests in the Kukio, Maniniowali and Kaupulehu portions of Kukio Resort, a private residential community on the Kona coast of the island of Hawaii, as well as Kukio Resort’s real estate sales office operations. KD Kaupulehu, LLLP, which is comprised of KD Acquisition, LLLP (“KD I”) and KD Acquisition II, LLLP (“KD II”), is the developer of Kaupulehu Lot 4A Increments I and II, the area in which Barnwell has interests in percentage of sales payments. Barnwell’s investment in these entities is accounted for using the equity method of accounting. The partnerships derive income from the sale of residential parcels, of which 27 lots remain to be sold at Kaupulehu Increment I, two ocean front parcels in Kaupulehu Increment II are currently being developed for eventual sale, and one lot remains at Maniniowali, as well as from commission on real estate sales by the real estate sales office. The limited liability limited partnership agreements provide for a priority return of Barnwell’s investment prior to profit distributions. Net profits, losses and cash flows of the partnerships are allocated to Barnwell and the other partners at varying percentages based on whether the initial and any additional capital contributions plus any preferred returns due to contributing partners have been repaid to the investors. Equity in income of affiliates was $163,000 and $88,000 for the three months ended December 31, 2015 and 2014 , respectively. The equity in the underlying net assets of the Kukio Resort land development partnerships exceeds the carrying value of the investment in affiliates by approximately $377,000 as of December 31, 2015 , which is attributable to differences in the value of capitalized development costs and a note receivable. The basis difference for the capitalized development costs will be recognized as the partnerships sell lots and recognize the associated costs. The basis difference for the note receivable will be recognized as the partnerships sell memberships for the Kuki`o Golf and Beach Club for which the receivable relates. The basis difference adjustment for the three months ended December 31, 2015 was a $13,000 increase in equity in income of affiliates, and the basis difference adjustment for the three months ended December 31, 2014 was inconsequential. Barnwell, as well as KD I, KD II and certain other owners of the partnerships, have jointly and severally executed a surety indemnification agreement. Bonds issued by the surety at December 31, 2015 totaled approximately $4,144,000 and relate to certain construction contracts of KD I. If any such performance bonds are called, we may be obligated to reimburse the issuer of the performance bond as Barnwell, KD I and certain other partners are jointly and severally liable, however we believe that it is remote that a material amount of any currently outstanding performance bonds will be called. Performance bonds do not have stated expiration dates. Rather, the performance bonds are released as the underlying performance is completed. As of December 31, 2015 , Barnwell’s maximum loss exposure as a result of its investment in the Kukio Resort land development partnerships was approximately $10,545,000 , consisting of the carrying value of the investment of $6,401,000 and $4,144,000 from the surety indemnification agreement of which we are jointly and severally liable. Summarized financial information for the Kukio Resort land development partnerships is as follows: Three months ended 2015 2014 Revenue $ 3,703,000 $ 4,626,000 Gross profit $ 1,357,000 $ 1,427,000 Net earnings $ 823,000 $ 420,000 Percentage of sales payments Kaupulehu Developments has the right to receive payments from KD I and KD II resulting from the sale of lots and/or residential units within approximately 870 acres of the Kaupulehu Lot 4A area by KD I and KD II in two increments (“Increment I” and “Increment II”) (see Note 15). The following table summarizes the Increment I percentage of sales payment revenues received from KD I. Three months ended 2015 2014 Sale of interest in leasehold land: Proceeds $ 150,000 $ 1,200,000 Fees (21,000 ) (168,000 ) Revenues – sale of interest in leasehold land, net $ 129,000 $ 1,032,000 Investment in leasehold land interest - Lot 4C Kaupulehu Developments holds an interest in an area of approximately 1,000 acres of vacant leasehold land zoned conservation located adjacent to Lot 4A. The lease terminates in December 2025.

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Dec. 31, 2015
Long-term Debt, Unclassified [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT Canadian revolving credit facility On September 30, 2015, Barnwell’s revolving credit facility at Royal Bank of Canada was amended and reduced by the bank to $1,000,000 Canadian dollars, or U.S. $723,000 at the December 31, 2015 exchange rate, as a result of the sale of the Company's principal oil and natural gas property, Dunvegan, in September 2015. Barnwell repaid the credit facility in full in September 2015 from the proceeds of the disposition. The other material terms of the credit facility remain unchanged. At December 31, 2015 and September 30, 2015, borrowings under this facility were U.S. $0 . Issued letters of credit were $33,000 at December 31, 2015 . The Canadian revolving credit facility is available in U.S. dollars at the London Interbank Offer Rate plus 2.50% , at Royal Bank of Canada’s U.S. base rate plus 1.50% , or in Canadian dollars at Royal Bank of Canada’s prime rate plus 1.50% . A standby fee of 0.625% per annum is charged on the unused facility balance. Under the financing agreement with Royal Bank of Canada, the credit facility is reviewed annually, with the next review planned for April 2016. Subject to that review, the credit facility may be renewed for one year with no required debt repayments or converted to a two-year term loan by the bank. If the credit facility is converted to a two -year term loan, Barnwell has agreed to the following repayment schedule of the then outstanding loan balance: first year of the term period - 20% ( 5% per quarter), and in the second year of the term period - 80% ( 5% per quarter for the first three quarters and 65% in the final quarter). Real estate loan Barnwell, together with its real estate joint venture, Kaupulehu 2007, has a non-revolving real estate loan with a Hawaii bank. In January 2015, the loan was amended from monthly principal and interest payments to monthly interest-only payments effective February 1, 2015. All other terms of the loan remained unchanged. The principal balance and any accrued interest will be due and payable on April 1, 2018. The interest rate adjusts each April for the remaining term of the loan to the lender’s then prevailing interest rate for similarly priced commercial mortgage loans or a floating rate equal to the lender’s base rate. The interest rate at December 31, 2015 was 3.59% . At December 31, 2015 and September 30, 2015, the balance of the real estate loan was $3,440,000 . The loan is collateralized by, among other things, a first mortgage on Kaupulehu 2007’s lots together with all improvements thereon. Kaupulehu 2007 will be required to make a principal payment upon the sale of the house or the residential parcel in the amount of the net sales proceeds of the house or residential parcel; the loan agreement defines net sales proceeds as the gross sales proceeds for the house or residential parcel, less reasonable commissions and normal closing costs. The loan agreement contains provisions requiring us to maintain compliance with certain covenants including a consolidated debt service coverage ratio and a consolidated total liabilities to tangible net worth ratio. However, in June 2015, the bank suspended these financial covenants in exchange for an interest reserve account which had a balance of $212,000 and $242,000 at December 31, 2015 and September 30, 2015, respectively, and is included in "Restricted cash" on the accompanying Condensed Consolidated Balance Sheets. These financial covenants will remain suspended as long as there are sufficient funds in the interest reserve account. The home and residential lot collateralizing the loan are currently available for sale; therefore, the entire balance outstanding at December 31, 2015 under the term loan has been classified as a current liability.

RETIREMENT PLANS

RETIREMENT PLANS	3 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
RETIREMENT PLANS	RETIREMENT PLANS Barnwell sponsors a noncontributory defined benefit pension plan (“Pension Plan”) covering substantially all of its U.S. employees. Additionally, Barnwell sponsors a Supplemental Employee Retirement Plan (“SERP”), a noncontributory supplemental retirement benefit plan which covers certain current and former employees of Barnwell for amounts exceeding the limits allowed under the Pension Plan, and a postretirement medical insurance benefits plan (“Postretirement Medical”) covering eligible U.S. employees. The following table details the components of net periodic benefit cost for Barnwell’s retirement plans: Pension Plan SERP Postretirement Medical Three months ended December 31, 2015 2014 2015 2014 2015 2014 Service cost $ 65,000 $ 51,000 $ 16,000 $ 15,000 $ — $ — Interest cost 91,000 87,000 20,000 18,000 14,000 13,000 Expected return on plan assets (112,000 ) (125,000 ) — — — — Amortization of prior service cost (credit) 1,000 1,000 (1,000 ) (1,000 ) — — Amortization of net actuarial loss (gain) 34,000 21,000 5,000 6,000 — (1,000 ) Net periodic benefit cost $ 79,000 $ 35,000 $ 40,000 $ 38,000 $ 14,000 $ 12,000 Barnwell contributed $350,000 to the Pension Plan during the three months ended December 31, 2015 and estimates that it will make further contributions of $400,000 during the remainder of fiscal 2016. The SERP and Postretirement Medical plans are unfunded, and Barnwell funds benefits when payments are made. Barnwell does not expect to make any benefit payments under the Postretirement Medical plan during fiscal 2016 and expected payments under the SERP for fiscal 2016 are not material. Fluctuations in actual equity market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefits costs and contributions in future periods.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The components of loss before income taxes, after adjusting the loss for non-controlling interests, are as follows: Three months ended 2015 2014 United States $ (726,000 ) $ (236,000 ) Canada (876,000 ) (320,000 ) $ (1,602,000 ) $ (556,000 ) The components of the income tax provision (benefit) are as follows: Three months ended 2015 2014 Current $ (209,000 ) $ 3,000 Deferred 16,000 (92,000 ) $ (193,000 ) $ (89,000 ) As a result of significant declines in oil and natural gas prices, funds available for oil and natural gas capital expenditures are projected to be minimal in the near term and thus Barnwell's ability to replace production and abate declining reserves has been significantly restricted. Accordingly, Barnwell determined in the second quarter of fiscal 2015 that it is not more likely than not that all of our oil and natural gas deferred tax assets under Canadian tax law are realizable. As a result, the Company recorded a valuation allowance during the year ended September 30, 2015 for the portion of Canadian tax law deferred tax assets related to asset retirement obligations that may not be realizable. Included in the deferred income tax expense for the three months ended December 31, 2015 , was $53,000 for the additional valuation allowance necessary for the portion of Canadian tax law deferred tax assets that may not be realizable. There was no such valuation allowance recorded in the prior year period. Consolidated taxes do not bear a customary relationship to pretax results due primarily to the fact that the Company is taxed separately in Canada based on Canadian source operations and in the U.S. based on consolidated operations, Canadian income taxes are not estimated to have a future benefit as foreign tax credits or deductions for U.S. tax purposes, and U.S. consolidated net operating losses and other deferred tax assets under U.S. tax law are not estimated to have any future U.S. tax benefit. In addition, consolidated taxes in the current year period includes the aforementioned valuation allowance for a portion of deferred tax assets under Canadian tax law.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION Barnwell operates the following segments: 1) acquiring, developing, producing and selling oil and natural gas in Canada (oil and natural gas); 2) investing in land interests in Hawaii (land investment); 3) drilling wells and installing and repairing water pumping systems in Hawaii (contract drilling); and 4) developing homes for sale in Hawaii (residential real estate). The following table presents certain financial information related to Barnwell’s reporting segments. All revenues reported are from external customers with no intersegment sales or transfers. Three months ended 2015 2014 Revenues: Oil and natural gas $ 848,000 $ 2,972,000 Land investment 129,000 1,032,000 Contract drilling 832,000 1,933,000 Other 42,000 78,000 Total before interest income 1,851,000 6,015,000 Interest income 2,000 17,000 Total revenues $ 1,853,000 $ 6,032,000 Depletion, depreciation, and amortization: Oil and natural gas $ 274,000 $ 883,000 Contract drilling 61,000 71,000 Other 27,000 25,000 Total depletion, depreciation, and amortization $ 362,000 $ 979,000 Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ (165,000 ) $ 466,000 Land investment 129,000 1,032,000 Contract drilling 221,000 337,000 Other 15,000 53,000 Total operating profit 200,000 1,888,000 Equity in income of affiliates: Land investment 163,000 88,000 General and administrative expenses (1,841,000 ) (2,275,000 ) Interest expense (33,000 ) (90,000 ) Interest income 2,000 17,000 Loss before income taxes $ (1,509,000 ) $ (372,000 )

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME	3 Months Ended
	Dec. 31, 2015
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME	ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The changes in each component of accumulated other comprehensive (loss) income were as follows: Three months ended 2015 2014 Foreign currency translation: Beginning accumulated foreign currency translation $ 819,000 $ 1,692,000 Change in cumulative translation adjustment before reclassifications (156,000 ) (407,000 ) Income taxes — — Net current period other comprehensive loss (156,000 ) (407,000 ) Ending accumulated foreign currency translation 663,000 1,285,000 Retirement plans: Beginning accumulated retirement plans benefit cost (2,941,000 ) (1,950,000 ) Amortization of net actuarial loss and prior service cost 39,000 26,000 Income taxes — — Net current period other comprehensive income 39,000 26,000 Ending accumulated retirement plans benefit cost (2,902,000 ) (1,924,000 ) Accumulated other comprehensive loss, net of taxes $ (2,239,000 ) $ (639,000 ) The amortization of accumulated other comprehensive loss components for the retirement plans are included in the computation of net periodic benefit cost which is a component of "General and administrative" expenses on the accompanying Condensed Consolidated Statements of Operations (see Note 8 for additional details).

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The carrying values of cash and cash equivalents, restricted cash, accounts and other receivables, accounts payable and accrued current liabilities approximate their fair values due to the short-term nature of the instruments. The carrying value of long-term debt approximates fair value as the terms approximate current market terms for similar debt instruments of comparable risk and maturities.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Environmental Matters In January 2015, there was an oil and salt water release from one of our operated oil pipelines in Alberta, Canada. We have estimated that the gross probable environmental remediation costs will be approximately $2,300,000 . Barnwell’s working interest in the well is 58% , and we have recovered substantially all of the monies from the other working interest owners for their share of the costs. Additionally, we have filed a claim under our insurance policy, which has a deductible of approximately $80,000 , and as of December 31, 2015 , we have collected $1,103,000 in insurance proceeds. The estimated liability for the release as of December 31, 2015 and September 30, 2015 was $72,000 and $75,000 , respectively, and has not been discounted and was accrued in “Accrued operating and other expenses” on the Condensed Consolidated Balance Sheets. Because of the inherent uncertainties associated with environmental assessment and remediation activities, future expenses to remediate the currently identified site, and sites identified in the future, if any, could be incurred. Guarantee See Note 6 for a discussion of Barnwell’s guarantee of the Kukio Resort land development partnership’s performance bonds.

INFORMATION RELATING TO THE CON

INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	3 Months Ended
	Dec. 31, 2015
Supplemental Cash Flow Elements [Abstract]
INFORMATION RELATING TO THE CONSOLIDATED STATEMENTS OF CASH FLOWS	INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three months ended 2015 2014 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest $ 32,000 $ 86,000 Income taxes paid $ — $ — Supplemental disclosure of non-cash investing and financing activities: Note receivable for sale of investment $ — $ 907,000 Capital expenditure accruals related to oil and natural gas exploration and development increased $132,000 and $106,000 during the three months ended December 31, 2015 and 2014 , respectively. Additionally, capital expenditure accruals related to oil and natural gas asset retirement obligations increased $123,000 during the three months ended December 31, 2015 and decreased $76,000 during the three months ended December 31, 2014 .

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS Kaupulehu Developments is entitled to receive a percentage of the gross receipts from the sales of single-family residential lots in Increment I from KD I, a land development partnership in which Barnwell holds a 19.6% non-controlling ownership interest accounted for under the equity method of investment. The percentage payments are part of a 2004 transaction where Kaupulehu Developments sold its leasehold interest in Increment I, which was prior to Barnwell’s affiliation with KD I which commenced on November 27, 2013, the acquisition date of our ownership interest in the Kukio Resort land development partnerships. During the three months ended December 31, 2015 , Barnwell received $150,000 in percentage of sales payments from KD I from the sale of one lot within Phase II of Increment I. During the three months ended December 31, 2014 , Barnwell received $1,200,000 in percentage of sales payments from KD I from the sale of six contiguous lots within Phase I of Increment I to a single buyer and two lots within Phase II of Increment I.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	3 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENTS There were no material subsequent events that would require recognition or disclosure in the accompanying condensed consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of Barnwell Industries, Inc. and all majority-owned subsidiaries (collectively referred to herein as “Barnwell,” “we,” “our,” “us,” or the “Company”), including a 77.6% -owned land investment general partnership (Kaupulehu Developments), a 75% -owned land investment partnership (KD Kona 2013 LLLP) and two 80%-owned joint ventures (Kaupulehu 2007, LLLP and Kaupulehu Investors, LLC). All significant intercompany accounts and transactions have been eliminated. Barnwell’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in variable interest entities (“VIE”) in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method. Unless otherwise indicated, all references to “dollars” in this Form 10-Q are to U.S. dollars.
Unaudited Interim Financial Information	Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements and notes have been prepared by Barnwell in accordance with the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Barnwell’s September 30, 2015 Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of September 30, 2015 has been derived from audited consolidated financial statements. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at December 31, 2015 , results of operations, comprehensive loss, cash flows and equity for the three months ended December 31, 2015 and 2014 , have been made. The results of operations for the period ended December 31, 2015 are not necessarily indicative of the operating results for the full year.
Use of Estimates	Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management of Barnwell to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ significantly from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU relates to discontinued operations reporting for disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on an entity’s operations and financial results. The standard expands the disclosures for discontinued operations and requires new disclosures related to individually material disposals that do not meet the definition of a discontinued operation. The Company adopted the provisions of this ASU effective October 1, 2015. The adoption of this update did not have a material impact on Barnwell’s consolidated financial statements.

LOSS PER COMMON SHARE (Tables)

LOSS PER COMMON SHARE (Tables)	3 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Reconciliations between net income (loss) attributable to the entity's stockholders and common shares outstanding of the basic and diluted net income (loss) per share computations	Reconciliations between net loss attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net loss per share computations are detailed in the following tables: Three months ended December 31, 2015 Net Loss (Numerator) Shares (Denominator) Per-Share Amount Basic net loss per share $ (1,409,000 ) 8,277,160 $ (0.17 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (1,409,000 ) 8,277,160 $ (0.17 ) Three months ended December 31, 2014 Net Loss (Numerator) Shares (Denominator) Per-Share Amount Basic net loss per share $ (467,000 ) 8,277,160 $ (0.06 ) Effect of dilutive securities - common stock options — — Diluted net loss per share $ (467,000 ) 8,277,160 $ (0.06 )

INVESTMENTS (Tables)

INVESTMENTS (Tables)	3 Months Ended
	Dec. 31, 2015
Investments, All Other Investments [Abstract]
Summary of investments	A summary of Barnwell’s investments is as follows: December 31, 2015 September 30, 2015 Investment in Kukio Resort land development partnerships $ 6,401,000 $ 6,238,000 Investment in leasehold land interest – Lot 4C 50,000 50,000 Total investments $ 6,451,000 $ 6,288,000
Summarized financial information for the land development partnerships	Summarized financial information for the Kukio Resort land development partnerships is as follows: Three months ended 2015 2014 Revenue $ 3,703,000 $ 4,626,000 Gross profit $ 1,357,000 $ 1,427,000 Net earnings $ 823,000 $ 420,000
Kaupulehu Developments
INVESTMENTS
Summary of Increment I percentage of sales payment revenues received	The following table summarizes the Increment I percentage of sales payment revenues received from KD I. Three months ended 2015 2014 Sale of interest in leasehold land: Proceeds $ 150,000 $ 1,200,000 Fees (21,000 ) (168,000 ) Revenues – sale of interest in leasehold land, net $ 129,000 $ 1,032,000

RETIREMENT PLANS (Tables)

RETIREMENT PLANS (Tables)	3 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Schedule of components of net periodic benefit cost	The following table details the components of net periodic benefit cost for Barnwell’s retirement plans: Pension Plan SERP Postretirement Medical Three months ended December 31, 2015 2014 2015 2014 2015 2014 Service cost $ 65,000 $ 51,000 $ 16,000 $ 15,000 $ — $ — Interest cost 91,000 87,000 20,000 18,000 14,000 13,000 Expected return on plan assets (112,000 ) (125,000 ) — — — — Amortization of prior service cost (credit) 1,000 1,000 (1,000 ) (1,000 ) — — Amortization of net actuarial loss (gain) 34,000 21,000 5,000 6,000 — (1,000 ) Net periodic benefit cost $ 79,000 $ 35,000 $ 40,000 $ 38,000 $ 14,000 $ 12,000

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests	The components of loss before income taxes, after adjusting the loss for non-controlling interests, are as follows: Three months ended 2015 2014 United States $ (726,000 ) $ (236,000 ) Canada (876,000 ) (320,000 ) $ (1,602,000 ) $ (556,000 )
Schedule of components of the income tax provision (benefit)	The components of the income tax provision (benefit) are as follows: Three months ended 2015 2014 Current $ (209,000 ) $ 3,000 Deferred 16,000 (92,000 ) $ (193,000 ) $ (89,000 )

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Schedule of financial information related to reporting segments	The following table presents certain financial information related to Barnwell’s reporting segments. All revenues reported are from external customers with no intersegment sales or transfers. Three months ended 2015 2014 Revenues: Oil and natural gas $ 848,000 $ 2,972,000 Land investment 129,000 1,032,000 Contract drilling 832,000 1,933,000 Other 42,000 78,000 Total before interest income 1,851,000 6,015,000 Interest income 2,000 17,000 Total revenues $ 1,853,000 $ 6,032,000 Depletion, depreciation, and amortization: Oil and natural gas $ 274,000 $ 883,000 Contract drilling 61,000 71,000 Other 27,000 25,000 Total depletion, depreciation, and amortization $ 362,000 $ 979,000 Operating profit (loss) (before general and administrative expenses): Oil and natural gas $ (165,000 ) $ 466,000 Land investment 129,000 1,032,000 Contract drilling 221,000 337,000 Other 15,000 53,000 Total operating profit 200,000 1,888,000 Equity in income of affiliates: Land investment 163,000 88,000 General and administrative expenses (1,841,000 ) (2,275,000 ) Interest expense (33,000 ) (90,000 ) Interest income 2,000 17,000 Loss before income taxes $ (1,509,000 ) $ (372,000 )

ACCUMULATED OTHER COMPREHENSI32

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables)	3 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Schedule of changes in each component of accumulated other comprehensive (loss) income	The changes in each component of accumulated other comprehensive (loss) income were as follows: Three months ended 2015 2014 Foreign currency translation: Beginning accumulated foreign currency translation $ 819,000 $ 1,692,000 Change in cumulative translation adjustment before reclassifications (156,000 ) (407,000 ) Income taxes — — Net current period other comprehensive loss (156,000 ) (407,000 ) Ending accumulated foreign currency translation 663,000 1,285,000 Retirement plans: Beginning accumulated retirement plans benefit cost (2,941,000 ) (1,950,000 ) Amortization of net actuarial loss and prior service cost 39,000 26,000 Income taxes — — Net current period other comprehensive income 39,000 26,000 Ending accumulated retirement plans benefit cost (2,902,000 ) (1,924,000 ) Accumulated other comprehensive loss, net of taxes $ (2,239,000 ) $ (639,000 )

INFORMATION RELATING TO THE C33

INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Tables)	3 Months Ended
	Dec. 31, 2015
Supplemental Cash Flow Elements [Abstract]
Schedule of supplemental cash flow information	Three months ended 2015 2014 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest $ 32,000 $ 86,000 Income taxes paid $ — $ — Supplemental disclosure of non-cash investing and financing activities: Note receivable for sale of investment $ — $ 907,000

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended
	Dec. 31, 2015venture
Principles of Consolidation
Number of 80%-owned joint ventures	2
Kaupulehu Developments
Principles of Consolidation
Ownership interest in subsidiaries (as a percent)	77.60%
KD Kona 2013 LLLP
Principles of Consolidation
Ownership interest in subsidiaries (as a percent)	75.00%
Kaupulehu 2007, LLLP
Principles of Consolidation
Ownership interest in subsidiaries (as a percent)	80.00%
Kaupulehu Investors, LLC
Principles of Consolidation
Ownership interest in subsidiaries (as a percent)	80.00%

LIQUIDITY - CREDIT FACILITY (De

LIQUIDITY - CREDIT FACILITY (Details) - Dec. 31, 2015 - Credit Agreement CAD in Thousands, $ in Thousands	CAD	USD ($)
Line of Credit Facility [Line Items]
Maximum borrowing capacity	CAD 1,000	$ 723
Credit Facility, Remaining Borrowing Capacity		$ 690

LIQUIDITY - OIL AND NATURAL GAS

LIQUIDITY - OIL AND NATURAL GAS PROPERTIES (Details) - USD ($) $ in Thousands	Feb. 01, 2016	Dec. 31, 2015	Sep. 16, 2015
Oil and Natural Gas Properties [Line Items]
Minimum required LMR ratio		100.00%
Expected AER cash deposit required in FY16		$ 3,000
Subsequent Event
Oil and Natural Gas Properties [Line Items]
Required AER Deposit	$ 130
Oil and natural gas properties | Dunvegan area of Alberta
Oil and Natural Gas Properties [Line Items]
Restricted Cash and Investments, Current		$ 6,904
Sales price per the Purchase and Sales Agreement			$ 14,162

LOSS PER COMMON SHARE (Details)

LOSS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Net Loss (Numerator)
Basic	$ (1,409)	$ (467)
Effect of dilutive securities - common stock options	0	0
Diluted	$ (1,409)	$ (467)
Shares (Denominator)
Basic (in shares)	8,277,160	8,277,160
Effect of dilutive securities - common stock options	0	0
Diluted (in shares)	8,277,160	8,277,160
Per-Share Amount
Basic net loss per share (in dollars per share)	$ (0.17)	$ (0.06)
Diluted net loss per share (in dollars per share)	$ (0.17)	$ (0.06)
Options
Antidilutive shares of common stock excluded from the computation of diluted shares
Antidilutive shares excluded from computation of loss per share (in shares)	621,250	621,250

INVESTMENT HELD FOR SALE (Detai

INVESTMENT HELD FOR SALE (Details) - Investment in land $ in Thousands	Dec. 31, 2015parcel	Oct. 31, 2014USD ($)
Investment Holdings [Line Items]
Number of residential parcels owned | parcel	1
Purchase or sales price | $		$ 1,250

REAL ESTATE HELD FOR SALE (Deta

REAL ESTATE HELD FOR SALE (Details)	Dec. 31, 2015home
Kaupulehu 2007, LLLP
Real estate held for sale
Number of luxury residences owned	1

INVESTMENTS (Details)

INVESTMENTS (Details) $ in Thousands	Nov. 27, 2013USD ($)partnership	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Investment Holdings [Line Items]
Equity in income of affiliates		$ 163	$ 88
Investment in land development partnerships
Investment Holdings [Line Items]
Number of limited liability limited partnerships formed | partnership	2
Basis Difference Adjustment		13
Basis difference between the underlying equity in net assets of the investee and the carrying value of the entity's investment		377
Bonds issued by the surety		4,144
Maximum loss exposure		$ 10,545
Investment in land development partnerships | KD Kukio Resorts, LLLP, KD Maniniowali, LLLP, and KD Kaupulehu, LLLP
Investment Holdings [Line Items]
Ownership interest acquired, aggregate cost	$ 5,140
Investment in land development partnerships | K D Kukio Resorts L L L P [Member]
Investment Holdings [Line Items]
Ownership interest acquired (as a percent)	19.60%
Investment in land development partnerships | KD Maniniowali, LLLP
Investment Holdings [Line Items]
Ownership interest acquired (as a percent)	19.60%
Investment in land development partnerships | KD Kaupulehu, LLLP
Investment Holdings [Line Items]
Ownership interest acquired (as a percent)	19.60%

INVESTMENTS - SUMMARY OF INVEST

INVESTMENTS - SUMMARY OF INVESTMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Investment Holdings [Line Items]
Investments	$ 6,451	$ 6,288
Investment in land development partnerships
Investment Holdings [Line Items]
Investments	6,401	6,238
Investment in leasehold land interest - Lot 4C
Investment Holdings [Line Items]
Investments	$ 50	$ 50

INVESTMENTS - LAND DEVELOPMENT

INVESTMENTS - LAND DEVELOPMENT PARTNERSHIPS (Details) - Investment in land development partnerships - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Investment Holdings [Line Items]
Revenue	$ 3,703	$ 4,626
Gross profit	1,357	1,427
Net earnings	$ 823	$ 420

INVESTMENTS - PERCENTAGE OF SAL

INVESTMENTS - PERCENTAGE OF SALES PAYMENTS (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2015USD ($)aincrement	Dec. 31, 2014USD ($)
Investment Holdings [Line Items]
Sale of interest in leasehold land, net	$ 129	$ 1,032
Kaupulehu Developments
Investment Holdings [Line Items]
Proceeds from Sale of Interest in Leasehold Land Gross	150	1,200
Fees Related to Sale of Interest in Leasehold Land	(21)	(168)
Sale of interest in leasehold land, net	$ 129	$ 1,032
Area of land (in acres) | a	870
Number of development increments | increment	2
Land Interest
Investment Holdings [Line Items]
Area of land (in acres) | a	1,000

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) CAD in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2015CAD	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)
Canadian revolving credit facility
Long-term debt, additional disclosures
Long-term debt		$ 0	$ 0
Maximum borrowing capacity	CAD 1,000	723
Letters of Credit Outstanding, Amount		33
Standby fee (as a percent)	0.625%
Renewal period with no required debt repayments	1 year
Period of term loan if credit facility term date is not extended	2 years
Repayment schedule if the facility is converted to a two-year term loan
Percentage of outstanding loan balance to be repaid in first year of the term period	20.00%
Percentage of outstanding loan balance to be repaid per quarter in first year of the term period	5.00%
Percentage of outstanding loan balance to be repaid in second year of the term period	80.00%
Percentage of outstanding loan balance to be repaid per quarter for first three quarters in second year of the term period	5.00%
Percentage of outstanding loan balance to be repaid in the final quarter of the second year of the term period	65.00%
Canadian revolving credit facility | London Interbank Offered Rate (LIBOR)
Long-term debt, additional disclosures
Basis spread on variable rate (as a percent)	2.50%
Canadian revolving credit facility | Base Rate
Long-term debt, additional disclosures
Basis spread on variable rate (as a percent)	1.50%
Canadian revolving credit facility | Prime Rate
Long-term debt, additional disclosures
Basis spread on variable rate (as a percent)	1.50%
Real estate loan
Long-term debt, additional disclosures
Long-term debt		$ 3,440	3,440
Interest rate (as a percent)	3.59%	3.59%
Restricted Cash and Investments		$ 212	$ 242

RETIREMENT PLANS (Details)

RETIREMENT PLANS (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Pension Plan
Net periodic benefit cost:
Service cost	$ 65	$ 51
Interest cost	91	87
Expected return on plan assets	(112)	(125)
Amortization of prior service cost (credit)	1	1
Amortization of net actuarial loss (gain)	34	21
Net periodic benefit cost	79	35
Other disclosures
Contribution by the entity to the Pension Plan	350
Defined Benefit Plans, Estimated Future Employer Contributions	400
SERP
Net periodic benefit cost:
Service cost	16	15
Interest cost	20	18
Amortization of prior service cost (credit)	(1)	(1)
Amortization of net actuarial loss (gain)	5	6
Net periodic benefit cost	40	38
Postretirement Medical
Net periodic benefit cost:
Service cost	0	0
Interest cost	14	13
Amortization of prior service cost (credit)	0	0
Amortization of net actuarial loss (gain)	0	(1)
Net periodic benefit cost	$ 14	$ 12

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Components of income (loss) before income taxes, after adjusting the income (loss) for non-controlling interests
United States	$ (726,000)	$ (236,000)
Canada	(876,000)	(320,000)
Total	(1,602,000)	(556,000)
Components of the income tax provision (benefit)
Current	(209,000)	3,000
Deferred	16,000	(92,000)
Total	(193,000)	(89,000)
Foreign Tax Authority
Components of the income tax provision (benefit)
Increase in valuation allowance, amount	$ 53,000	$ 0

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues:
Revenue, Net	$ 1,851,000	$ 6,015,000
Interest income	2,000	17,000
Total revenues	1,853,000	6,032,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	362,000	979,000
Operating profit (before general and administrative expenses):
Operating profit (loss)	200,000	1,888,000
Equity in income (loss) of affiliates:
Equity in income of affiliates	163,000	88,000
General and administrative expenses	(1,841,000)	(2,275,000)
Interest expense	(33,000)	(90,000)
Interest income	2,000	17,000
Loss before income taxes	(1,509,000)	(372,000)
Oil and natural gas
Revenues:
Revenue, Net	848,000	2,972,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	274,000	883,000
Operating profit (before general and administrative expenses):
Operating profit (loss)	(165,000)	466,000
Land investment
Revenues:
Revenue, Net	129,000	1,032,000
Operating profit (before general and administrative expenses):
Operating profit (loss)	129,000	1,032,000
Contract drilling
Revenues:
Revenue, Net	832,000	1,933,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	61,000	71,000
Operating profit (before general and administrative expenses):
Operating profit (loss)	221,000	337,000
Other
Revenues:
Revenue, Net	42,000	78,000
Depletion, depreciation, and amortization:
Depletion, depreciation, and amortization	27,000	25,000
Operating profit (before general and administrative expenses):
Operating profit (loss)	15,000	$ 53,000
Intersegment Eliminations
Revenues:
Revenue, Net	$ 0

ACCUMULATED OTHER COMPREHENSI48

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Changes in foreign currency translation
Beginning accumulated foreign currency translation	$ 819	$ 1,692
Change in cumulative translation adjustment before reclassifications	(156)	(407)
Income taxes	0	0
Net current period other comprehensive loss	(156)	(407)
Ending accumulated foreign currency translation	663	1,285
Changes in retirement plans
Beginning accumulated retirement plans benefit cost	(2,941)	(1,950)
Amortization of net actuarial loss and prior service cost	39	26
Income taxes	0	0
Net current period other comprehensive income	39	26
Ending accumulated retirement plans benefit cost	(2,902)	(1,924)
Accumulated other comprehensive loss, net of taxes	$ (2,239)	$ (639)	$ (2,122)

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Estimate of probable loss	$ 2,300
Percentage of working interest	58.00%
Insurance deductible	$ 80
Insurance Recoveries	1,103
Accrual for environmental remediation costs	$ 72	$ 75

INFORMATION RELATING TO THE C50

INFORMATION RELATING TO THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Supplemental disclosure of cash flow information:
Interest	$ 32	$ 86
Income taxes paid	0	0
Supplemental disclosure of non-cash investing and financing activities:
Note receivable for sale of investment	0	907
Oil and natural gas
Supplemental disclosures of cash flow information:
Increase (Decrease) in capital expenditure accruals related to oil and natural gas exploration and development	132	106
Increase (Decrease) in capital expenditure accruals related to oil and natural gas asset retirement obligations	$ 123	$ (76)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - Kaupulehu Developments $ in Thousands	3 Months Ended
	Dec. 31, 2015USD ($)lot	Dec. 31, 2014USD ($)lot
Related party transactions
Percentage of sales payment received | $	$ 150	$ 1,200
KD Kaupulehu, LLLP | Investment in land development partnerships
Related party transactions
Ownership interest acquired (as a percent)	19.60%
Percentage of sales payment received | $	$ 150	$ 1,200
KD Kaupulehu, LLLP | Investment in land development partnerships | Phase I
Related party transactions
Number of lots sold in Increment I | lot		6
KD Kaupulehu, LLLP | Investment in land development partnerships | Phase II
Related party transactions
Number of lots sold in Increment I | lot	1	2