SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

Sep. 30, 2011

SEGMENT AND GEOGRAPHIC INFORMATION

SEGMENT AND GEOGRAPHIC INFORMATION

12.       SEGMENT AND GEOGRAPHIC INFORMATION

Barnwell operates four segments: 1) exploring for, 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.

	Year ended September 30,
	2011			2010
Revenues:
Oil and natural gas	$	30,228,000		$	28,879,000
Land investment	3,742,000			5,844,000
Contract drilling	3,855,000			6,517,000
Other	596,000			611,000
Total before interest income	38,421,000			41,851,000
Interest income	39,000			21,000
Total revenues	$	38,460,000		$	41,872,000
Depletion, depreciation, and amortization:
Oil and natural gas	$	9,469,000		$	8,735,000
Contract drilling	560,000			480,000
Other	98,000			87,000
Total depletion, depreciation, and amortization	$	10,127,000		$	9,302,000
Reduction of carrying value of assets:
Land investment	$	689,000		$	1,578,000
Residential real estate	418,000			571,000
Other	121,000			-
Total reduction of carrying value of assets	$	1,228,000		$	2,149,000
Operating profit (before general and administrative expenses):
Oil and natural gas	$	9,355,000		$	9,941,000
Land investment	3,053,000			4,266,000
Contract drilling	(587,000		)	437,000
Residential real estate	(418,000		)	(571,000		)
Other	377,000			524,000
Total operating profit	11,780,000			14,597,000
General and administrative expenses	(9,025,000		)	(8,331,000		)
Interest expense	(1,088,000		)	(1,225,000		)
Interest income	39,000			21,000
Earnings before income taxes	$	1,706,000		$	5,062,000

Capital Expenditures:

	Year ended September 30,
	2011		2010
Oil and natural gas	$	13,299,000	$	5,485,000
Contract drilling	186,000		1,027,000
Other	1,919,000		220,000
Total	$	15,404,000	$	6,732,000

Assets By Segment:

	September 30,
	2011			2010
Oil and natural gas (1)	$	54,454,000	62%	$	52,021,000	58%
Land investment (2)	2,869,000		3%	3,558,000		4%
Contract drilling (2)	3,660,000		4%	4,514,000		5%
Residential real estate (2)	12,640,000		14%	13,058,000		15%
Other:
Cash, cash equivalents and restricted cash	9,834,000		11%	10,892,000		12%
Corporate and other	5,315,000		6%	5,845,000		6%
Total	$	88,772,000	100%	$	89,888,000	100%

(1)   Primarily located in the province of Alberta, Canada.

(2)   Located in Hawaii.

Long-Lived Assets By Geographic Area:

	September 30,
	2011			2010
United States	$	9,911,000	17%	$	9,268,000	17%
Canada	49,331,000		83%	46,253,000		83%
Total	$	59,242,000	100%	$	55,521,000	100%

Revenue By Geographic Area:

	Year ended September 30,
	2011		2010
United States	$	7,640,000	$	12,413,000
Canada	30,781,000		29,438,000
Total (excluding interest income)	$	38,421,000	$	41,851,000