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Supplemental Gas and Oil Information (Unaudited) (Tables)
12 Months Ended
Dec. 31, 2015
Extractive Industries [Abstract]  
Changes in Proved Reserve Quantities

 


Reserve quantity information and a reconciliation of changes in proved reserve quantities included within the Partnership are as follows: 

 

Gas (Mcf)

 

  

Oil (Bbls)

 

Balance, December 31, 2013

 

1,628,400

 

 

 

5,700

 

Revisions(1)

 

(61,900

)

  

 

400

 

Production

 

(225,600

)

  

 

(600

)

 

Balance, December 31, 2014

 

1,340,900

 

  

 

5,500

 

Revisions (2)

 

(1,064,300

)

 

 

(4,300

)

Production

 

(185,400

)

 

 

(600

)

 

Balance, December 31, 2015 (3)

 

91,200

 

 

 

600

 

 

 

(1)

The downward revision in natural gas forecasts is primarily due to forecasts adjustments in order to reflect actual production.  The upward revision in oil forecasts is primarily due to forecast adjustments in order to better reflect actual production.

 

(2)

The downward revision in natural gas forecasts is primarily due to forecast adjustments in order to reflect actual production; the downward revision in oil forecasts is primarily due to a decrease in the SEC base pricing from the prior year, resulting in a shorter economic life.

 

(3)

We have experienced significant downward revisions of our natural gas and oil reserves volumes and values in 2015 due to the recent significant declines in commodity prices. The proved reserves quantities and future net cash flows were estimated under the SEC’s standardized measure using an unweighted 12-month average pricing based on the gas and oil prices on the first day of each month during the year ended December 31, 2015, including adjustments related to regional price differentials and energy content.  The SEC’s standardized measure of reserve quantities and discounted future net cash flows may not represent the fair market value of the Partnership’s gas and oil equivalent reserves due to anticipated future changes in gas and oil commodity prices. Accordingly, such information should not serve as a basis in making any judgment on the potential value of recoverable reserves or in estimating future results of operations.

 

Capitalized Costs Relating to Gas and Oil Producing Activities

Capitalized Costs Related to Gas and Oil Producing Activities. The components of capitalized costs related to gas and oil producing activities of the Partnership during the periods indicated were as follows:  

 

Years Ended December 31,

 

 

2015

 

  

2014

 

Natural gas and oil properties:

 

 

 

  

 

 

 

Leasehold interest

$

332,100

 

  

$

332,100

  

Wells and related equipment

 

25,756,100

 

  

 

25,756,500

  

Accumulated depletion, accretion and impairment

 

(25,398,000

)

  

 

(24,589,200

) 

Net capitalized costs

$

690,200

 

  

$

1,499,400

  

 

Results of Operations for Gas and Oil Producing Activities

Results of Operations from Gas and Oil Producing Activities. The results of operations related to the Partnership’s gas and oil producing activities during the periods indicated were as follows:  

 

Years Ended December 31,

 

 

2015

 

 

2014

 

Revenues

$

335,500

 

  

$

873,300

 

Production costs

 

(406,600

)

  

 

(537,200

)

Depletion

 

(40,400

)

  

 

(228,700

)

Impairment

 

(768,600

)

 

 

(1,881,400

)

 

$

(880,100

)

  

$

(1,774,000

)

 

Standardized Measure of Discounted Future Cash Flows

Standardized Measure of Discounted Future Cash Flows. The following schedule presents the standardized measure of estimated discounted future net cash flows relating to the Partnership’s proved gas and oil reserves. The estimated future production was priced at a twelve-month average for the years ended December 31, 2015 and 2014, adjusted only for regional price differentials and energy content. The resulting estimated future cash inflows were reduced by estimated future costs to produce the proved reserves based on year-end cost levels and includes the effect on cash flows of settlement of asset retirement obligations on gas and oil properties. The future net cash flows were reduced to present value amounts by applying a 10% discount factor. The standardized measure of future cash flows was prepared using the prevailing economic conditions existing at the dates presented and such conditions continually change. Accordingly, such information should not serve as a basis in making any judgment on the potential value of recoverable reserves or in estimating future results of operations:  

 

Years Ended December 31,

 

 

2015 (1)

 

 

2014

 

Future cash inflows

$

191,900

 

  

$

5,513,300

  

Future production costs

 

(187,400

)

  

 

(4,046,600

) 

Future net cash flows

 

4,500

 

  

 

1,466,700

  

Less 10% annual discount for estimated timing of cash flows

 

(100

)

  

 

(419,600

) 

Standardized measure of discounted future net cash flows

$

4,400

 

  

$

1,047,100

  

 

 

 

(1)

We have experienced significant downward revisions of our natural gas and oil reserves volumes and values in 2015 due to the recent significant declines in commodity prices. The proved reserves quantities and future net cash flows were estimated under the SEC’s standardized measure using an unweighted 12-month average pricing based on the gas and oil prices on the first day of each month during the year ended December 31, 2015, including adjustments related to regional price differentials and energy content.  The SEC’s standardized measure of reserve quantities and discounted future net cash flows may not represent the fair market value of the Partnership’s gas and oil equivalent reserves due to anticipated future changes in gas and oil commodity prices.  Accordingly, such information should not serve as a basis in making any judgment on the potential value of recoverable reserves or in estimating future results of operations.