FAIR VALUE MEASUREMENTS

6 Months Ended

Mar. 31, 2013

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

10. FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain of our assets and liabilities are reported at fair value in the accompanying balance sheets on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. The following table provides carrying value and fair value measurement information for nonrecurring fair value measurements recorded during the three and six months ended March 31, 2012:

		Fair Value Measurements Using:
	Carrying	Quoted	Significant		Total Reduction of
	Amount	Prices in	Other	Significant	Carrying Value
	as of	Active	Observable	Unobservable	for the three and
	March 31,	Markets	Inputs	Inputs	six months ended
	2012	(Level 1)	(Level 2)	(Level 3)	March 31, 2012
Real estate held for sale*	$ 10,786,000	$    -	$ 10,786,000	$     -	$ 1,854,000

* The fair value included in the table above represents only those assets whose carrying values were adjusted to fair value in each respective period.

The fair value of our real estate held for sale was based on a contract to sell one of the luxury residences at a price below carrying value entered into in April 2012. The fair values of both homes held for sale at March 31, 2012 were revised downward as a result of the information provided by those negotiations. Such fair value measurements have been classified as Level 2 valuations.

Fair Value of Financial Instruments

The carrying values of cash and cash equivalents, accounts receivable, accounts payable, accrued current liabilities and payables to joint interest owners 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.