2. Other Current Assets

12 Months Ended

Mar. 31, 2014

Notes to Financial Statements

2. Other Current Assets

Other current assets as of March 31, 2014 and 2013 consisted of:

	2014		2013
Prepaid income tax	$	379,000	$	112,000
Lease and well equipment inventory		310,000		371,000
Drilling and completion cost prepayments		223,000		210,000
Prepaid insurance premiums		91,000		88,000
Other current assets		40,000		33,000
Total other current assets	$	1,043,000	$	814,000

Lease and well equipment inventory included in other current assets represents well site production equipment owned by the Company that has been removed from wells that the Company operates.  This occurs when the Company plugs a well or replaces defective, damaged or suspect equipment on a producing well.  In this case, salvaged equipment is valued at prevailing market prices, removed from the full cost pool and made available for sale.  This equipment is carried on the balance sheet at a value not to exceed the original carrying value established at the time it was placed in inventory.  This equipment is intended for resale to third parties at current fair market prices.  Sale of this equipment is expected to occur in less than one year.  This policy does not preclude the Company from further transferring serviceable equipment to other wells that the Company operates, on an as needed basis.  During the year, the Company impaired approximately $61,000 of inventory to production expense.

Drilling and completion cost prepayments represent cash expenditures advanced by the Company to outside operators prior to the commencement of drilling and/or completion operations on a well.