SUBSEQUENT EVENT

9 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

SUBSEQUENT EVENT

SUBSEQUENT EVENT

In August 2015, Barnwell entered into a purchase and sale agreement with an independent third party to sell the interest in its principal oil and natural gas properties located in the Dunvegan and Belloy areas of Alberta, Canada. The Company's share of the sales price per the agreement is approximately $15,000,000 which will be adjusted at closing for customary purchase price adjustments in order to, among other things, reflect an economic effective date of April 1, 2015. On closing the buyer will withhold 50 percent of the proceeds in trust for the Canada Revenue Agency for potential amounts due for Barnwell’s Canadian income taxes related to the sale and the precise timing for the release of these funds cannot be determined. Barnwell will be required to use a portion of the proceeds received upon closing for Canadian income tax payments and repayment of most or all of the $4,800,000 of the Canadian credit facility currently outstanding as there will be a significant reduction of the borrowing capacity as a result of the sale. The sale of these interests is expected to close in the fourth quarter of fiscal 2015, subject to customary closing conditions. However, there can be no assurance that all of the conditions to closing the sale will be satisfied. The difference in the relationship between capitalized costs and proved reserves of Dunvegan and Belloy as compared to that of the retained properties is significant. Accordingly, Barnwell expects to record a gain on the sale of Dunvegan and Belloy in accordance with the guidance in Rule 4-10(c)(6)(i) of Regulation S-X.