OIL AND NATURAL GAS PROPERTIES

9 Months Ended

Jun. 30, 2017

Oil and Natural Gas Properties [Abstract]

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES

In June 2017, Barnwell entered into a Purchase and Sale Agreement with an independent third party and sold a portion of its oil and natural gas property located in the Progress and Valhalla areas of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $1,076,000 in order to, among other things, reflect an economic effective date of April 1, 2017. The final determination of the customary adjustments to the purchase price has not yet been made, however, it is not expected to result in a material adjustment. From Barnwell's net proceeds, $552,000 was withheld and remitted by the buyer to the Canada Revenue Agency for potential amounts due for Barnwell’s Canadian income taxes related to the sale, which is included in “Income taxes receivable” on the Condensed Consolidated Balance Sheet at June 30, 2017.

During the nine months ended June 30, 2017, Barnwell also sold miscellaneous oil and natural gas properties for proceeds of $162,000, of which $67,000 was withheld and remitted by the buyer to the Canada Revenue Agency for potential amounts due for Barnwell’s Canadian income taxes related to the sales which is included in “Income taxes receivable” on the Condensed Consolidated Balance Sheet at June 30, 2017.

No gain or loss was recognized related to these dispositions as these sales to multiple counterparties in unrelated transactions did not individually, or in aggregate, result in a significant alteration of the relationship between capitalized costs and proved reserves.