3. Other Non-Current Assets

12 Months Ended

Mar. 31, 2014

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

3. Other Non-Current Assets

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

	2014		2013
Support equipment and lease and well equipment inventory	$	590,000	$	500,000
Plugging bonds		122,000		65,000
Deferred financing costs		79,000		46,000
Total other non-current assets	$	791,000	$	611,000

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 $114,000 and $66,000 for the years ended March 31, 2014 and 2013, 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 the Company operates.  This equipment inventory represents well site production equipment that the Company owns that has either been purchased or has been removed from wells that the Company operates.  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 the Company to third parties who supply plugging bonds to federal and state agencies where the Company operates wells.  

Deferred financing costs represent fees and expenses incurred in connection with the origination of the Company’s credit facility in December 2012. These costs will be amortized on a straight-line basis over the five year term of the facility.