The total of the Company's investment in unproved properties at June 30, 2012 and September 30, 2011 consists of the following capitalized costs, respectively:

				June 30, 2012		September 30, 2011
Name

Unproved and developed properties
Kansas Girard Project
	Field equipment		$	615,953	$	615,953
	Capitalized drilling costs			662,899		662,899
		Subtotal		1,278,852		1,278,852
	Less Accumulated DD&A			(490,289)		(458,765)
Net capitalized costs in Girard Project				788,563		820,087

Jayhawk Gas Transport Company
	Field Equipment			2,605,871		2,605,871
	Less Accumulated DD&A			(491,950)		(404,865)
Net capitalized costs				2,113,921		2,201,006

Unproved and undeveloped properties
Kansas Girard Project				1,404,604		1,403,444
	Less: accumulated amortization			(652,999)		(579,999)
Net investment in Girard Project				751,605		823,445

North Dakota Project				78,135		78,135
Net investment in North Dakota Project				78,135		78,135

Total Unproved Oil and Gas Properties			$	3,732,224	$	3,922,673

The Kansas properties identified above as the Girard Project have not been evaluated and an independent estimates of proved reserves have yet been made.

Abandonment of Uniontown: In 2008, management made a review of the portfolio of leases acquired in the Uniontown transaction of July 2007 and decided, based on geology and proximity to the Company's pipeline, to permit only approximately one-third of the original leases acquired and allow the remainder to expire without renewal. Given the Company's inability at that time to fund development of any acreage, justification existed at the time to abandon those properties. The abandonment was estimated at two-thirds, 67 percent, of the original investment. Further evaluation by management during the year ended September 30, 2011 indicated the capital required to develop the Uniontown Project exceeded the Company's ability to fund the project and any capital raised would be better served being deployed on other opportunities. Thus, the remainder of the leases expired without renewal and the Company recognized an additional abandonment loss of $1,020,479 on the Uniontown project for the year ended September 30, 2011.

Name			June 30, 2012		September 30, 2011

Crosby, North Dakota Properties
	Proved Reserves	$	2,357,753	$	2,357,753
	Field Equipment		1,200,245		1,200,245
	Capitalized Drilling Costs		416,429		416,429
	Subtotal		3,974,427		3,974,427
	Less: Impairments		(2,267,426)		(2,267,426)
	Less: Accumulated DD&A		(995,025)		(748,836)

Total Proved Oil Properties		$	711,976	$	958,165

During the year ended September 30, 2011, the Company impaired certain previously capitalized non-saleable assets of $1,301,422 at the Crosby, North Dakota property.

For the year ended September 30, 2011, the Company performed an analysis to determine whether the carrying amounts in its financial statements exceeded the net present value of the reserve estimates for the Crosby, North Dakota property. Management determined that the net values reflected in the financial statements did not exceed the net discounted present value of the reserves estimated by the independent reserve engineer. Management determined that an impairment exists on other Crosby property. The impairment write-down was recognized at $280,963 for the year ended September 30, 2011.