6. Income Tax (Tables)

9 Months Ended

Dec. 31, 2012

Income Tax Tables

Provision for income tax

	Three Months Ended December 31,				Nine Months Ended December 31,
	2012		2011		2012		2011
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Current:
Federal	$	13,000	$	29,000	$	36,000	$	114,000
State		1,000		5,000		4,000		15,000
Total current income tax		14,000		34,000		40,000		129,000
Deferred:
Federal		80,000		438,000		149,000		648,000
State		7,000		31,000		12,000		46,000
Total deferred income tax		87,000		469,000		161,000		694,000
Income tax expense	$	101,000	$	503,000	$	201,000	$	823,000

Reconciliation between the income tax provision at the statutory rate on income tax and the income tax provision

	Three Months Ended December 31,						Nine Months Ended December 31,
	2012			2011			2012			2011
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Federal tax at statutory rate	$	160,000		$	562,000		$	451,000		$	1,145,000
State taxes, net of federal benefit		5,000			27,000			12,000			55,000
Excess percentage depletion		(89,000	)		(163,000	)		(296,000	)		(371,000	)
Other adjustments, net		25,000			77,000			34,000			(6,000	)
Income tax expense	$	101,000		$	503,000		$	201,000		$	823,000
Effective rate expressed as a percentage
of income before income tax		21.4	%		30.4	%		15.2	%		24.4	%

Net deferred tax assets and liabilities

	December 31,			March 31,
	2012			2012
	(Unaudited)
Deferred tax assets:
Statutory depletion carry-forward	$	1,367,000		$	1,232,000
Asset retirement obligation		730,000			669,000
Other accruals		103,000			88,000
Allowance for doubtful accounts		14,000			22,000
Gross deferred tax assets		2,214,000			2,011,000
Deferred tax liabilities:
Depletion, depreciation and intangible drilling costs		(5,106,000	)		(4,742,000	)
Gross deferred tax liabilities		(5,106,000	)		(4,742,000	)
Deferred tax liabilities, net	$	(2,892,000	)	$	(2,731,000	)