5. Oil and Gas Properties

3 Months Ended

Jun. 30, 2014

Notes to Financial Statements

4. Oil and Gas Properties

	06/30/14			03/31/14
	(Unaudited)
Proved properties	$	69,850,000		$	67,186,000
Unproved properties		687,000			773,000
Less accumulated depletion and impairment		(32,613,000	)		(31,496,000	)
Net oil and gas properties	$	37,924,000		$	36,463,000

As of June 30, 2014, the Company has recorded $69,850,000 as proved property costs. As of March 31, 2014, the Company had recorded $67,186,000 as proved property costs. Additions of $2,578,000 have been recorded during the three months ended June 30, 2014, and included in these additions are $2,561,000 related to intangible drilling and completion costs and tangible drilling and completion costs. Of the total additions recorded during the three months ended June 30, 2014, 80% relate to our work in North Dakota.

As of June 30, 2014, the Company has recorded $687,000 as unproved property costs. As of March 31, 2014, the Company had recorded $773,000 as unproved property costs. For the three months ended June 30, 2014, the Company recorded additional unproved property costs of $19,000 related to wells in progress. During the three months ended June 30, 2014, $49,000 in well costs and $55,000 in costs related to acreage were transferred from unevaluated to depletable properties. In addition, there were leased acreage expirations of approximately $1,000.