Other Non-Current Assets

12 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Other Non-Current Assets

3. Other Non-Current Assets

Other non-current assets as of March 31, 2012 and 2011 consisted of the following:

	2012		2011
Support equipment and lease and well equipment inventory	$	126,000	$	281,000
Plugging bonds		60,000		60,000
Other non-current assets		271,000		130,000
Total support equipment and other non-current assets	$	457,000	$	471,000

Support equipment represents non-oil and gas property (including such items as vehicles, office furniture and equipment and well servicing equipment) and is stated at the lower of cost or market.  Depreciation of support equipment was $51,000 and $34,000 for the years ended March 31, 2012 and 2011, respectively, which was computed using primarily the straight-line method over periods ranging from five to seven years.

Non-current lease and well equipment inventory, unlike the equipment inventory in other current assets that is held for resale, is intended for use on leases that we operate.  This equipment inventory represents well-site production equipment that we own that has either been purchased or has been removed from wells that we operate.  When placed in inventory, new equipment is valued at cost and salvaged equipment is valued at prevailing market prices.  The inventory is carried at the lower of the original carrying value or fair market value.

Plugging bonds represent Certificates of Deposit furnished by us to third parties who supply plugging bonds to federal and state agencies where we operate wells.  These funds are classified as restricted.