11. Oil and Gas Properties

12 Months Ended

Mar. 31, 2014

Notes to Financial Statements

11. Oil and Gas Properties

The aggregate amount of capitalized costs related to oil and gas property and the aggregate amount of related accumulated depletion and impairment as of March 31, 2014 and 2013 are as follows:

	2014			2013
Proved properties	$	67,186,000		$	53,265,000
Unproved properties		773,000			2,156,000
Less accumulated depletion and impairment		(31,496,000	)		(27,729,000	)
Total oil and gas properties, net	$	36,463,000		$	27,692,000

The Company divested its interests in a salt water disposal well located in North Dakota for proceeds of $292,000 in the year ended March 31, 2014, which was accounted for as a reduction to proved properties.  Under the full cost method, no gain or loss is recognized upon the sale or abandonment of oil and gas property unless non-recognition of such gain or loss would significantly alter the relationship between capitalized costs and proved oil and gas reserves.

The following shows, by category and year incurred, the oil and gas property costs applicable to unproved property that were excluded from the full cost pool depletion computation as of March 31, 2014:

							Total
	Exploration		Development		Acquisition		Unproved
Costs Incurred During Year Ended	Costs		Costs		Costs		Property
March 31, 2014	$	-	$	-	$	224,000	$	244,000
March 31, 2013		-		-		443,000		443,000
Prior Years		-		-		106,000		106,000
Total	$	-	$	-	$	773,000	$	773,000

Costs incurred in oil and gas property development, exploration and acquisition activities during the years ended March 31, 2014 and 2013 are summarized as follows:

	2014		2013
Development costs	$	12,342,000	$	13,077,000
Exploration costs		488,000		-
Acquisitions:
Proved		-		-
Unproved		-		823,000
Total costs of development, exploration and acquisition activities	$	12,830,000	$	13,900,000