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, 2016 and 2015 (in thousands):



	Years Ended December 31,
	2016		2015
Proved oil and gas properties	$	5,315	$	8,286
Unproved properties		106		552
Total proved and unproved oil and gas properties	$	5,421	$	8,838
Less accumulated depreciation, depletion and amortization		(196)		—
Net oil and gas properties	$	5,225	$	8,838

As a result of the ceiling test impairments during 2015 and the first three quarters of 2016, the accumulated depreciation, depletion, and amortization was been netted against the cost to reflect the post impairment value of the oil and gas properties. As no ceiling test impairment was recorded during the quarter ended December 31, 2016, this amount was not netted against cost, but remained in accumulated depreciation, depletion, and amortization at December 31, 2106.

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,
	2016		2015		2014
Property acquisitions proved	$	—	$	—	$	—
Property acquisitions unproved		8		90		598
Exploration cost		396		22		2,367
Development cost		—		252		864
Total	$	404	$	364	$	3,829

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,
	2016		2015		2014
Revenues	$	4,113	$	5,631	$	13,260
Production costs and taxes		(3,064)		(3,360)		(4,876)
Depreciation, depletion and amortization		(1,009)		(2,538)		(2,766)
Impairment		(2,805)		(14,526)		—
Income (loss) from oil and gas producing activities	$	(2,765)	$	(14,793)	$	5,618

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, 2014, 2015 and 2016. 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, 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
Revisions of previous estimates	(36)	—	(36)
Improved recovery	—	—	—
Purchase of reserves in place	—	—	—
Extensions and discoveries	3	—	3
Production	(108)	—	(108)
Sales of reserves in place	(6)	—	(6)
Proved reserves at December 31, 2016	730	—	730

Proved developed reserves at:
December 31, 2013	1,575	—	1,575
December 31, 2014	1,438	—	1,438
December 31, 2015	877	—	877
December 31, 2016	730	—	730

Proved undeveloped reserves at:
December 31, 2013	465	—	465
December 31, 2014	359	—	359
December 31, 2015	—	—	—
December 31, 2016	—	—	—

The Company’s Proved Undeveloped Reserves at December 31, 2016 and 2015 included no locations as compared to 27 locations at December 31, 2014. During 2016 and 2015, all Proved Undeveloped locations were removed from the Company’s Proved Reserves primarily due to the low oil prices experienced during these years.

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 12/31/2016						Year Ended 12/31/2015						Year Ended 12/31/2014
	Oil		Gas		Total		Oil		Gas		Total		Oil		Gas		Total
Total proved reserves year-end reserve report	$	5,815		—	$	5,815	$	8,287		—	$	8,287	$	40,417		—	$	40,417
Proved developed producing reserves (PDP)	$	5,397		—	$	5,397	$	7,686		—	$	7,686	$	32,059		—	$	32,059
% of PDP reserves to total proved reserves		93%		—		93%		93%		—		93%		79%		—		79%
Proved developed non- producing reserves	$	418		—	$	418	$	601		—	$	601	$	2,956		—	$	2,956
% of PDNP reserves to total proved reserves		7%		—		7%		7%		—		7%		7%		—		7%
Proved undeveloped reserves (PUD)	$	—		—	$	—	$	—		—	$	—	$	5,402		—	$	5,402
% of PUD reserves to total proved reserves		—		—		—		—		—		—		14%		—		14%

Standardized 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,
	2016		2015		2014
Future cash inflows	$	27,253	$	38,566	$	158,792
Future production costs and taxes		(16,270)		(23,500)		(71,951)
Future development costs		(553)		(951)		(10,014)
Future income tax expenses		—		—		(13,092)
Future net cash flows		10,430		14,115		63,735

Discount at 10% for timing of cash flows		(4,615)		(5,828)		(29,204)
Standardized measure of discounted future net cash flows	$	5,815	$	8,287	$	34,531

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,
	2016		2015		2014
Balance, beginning of year	$	8,287	$	34,531	$	38,708
Sales, net of production costs and taxes		(2,037)		(1,901)		(8,385)
Discoveries and extensions, net of costs		35		5		4,231
Purchase of reserves in place		—		—		—
Sale of reserves in place		(10)		—		—
Net changes in prices and production costs		(863)		(16,009)		(829)
Revisions of quantity estimates		(412)		(22,431)		(6,610)
Previously estimated development cost incurred during the year		—		—		508
Changes in future development costs		196		4,890		(1,913)
Changes in timing and other		(20)		(56)		1,312
Accretion of discount		639		3,373		4,247
Net change in income taxes		—		5,885		3,262
Balance, end of year	$	5,815	$	8,287	$	34,531

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, 2016, 2015, and 2014 were $37.35, and $43.98, and $88.34 per barrel of oil, respectively. The Company’s proved reserves as of December 31, 2016, 2015 and 2014 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.