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Note 4 - Long Term Investments
6 Months Ended
Jun. 30, 2014
Notes  
Note 4 - Long Term Investments

Note 4 – Long Term Investments

 

On April 10, 2014, the Company purchased for a price of $30,000 a 1.67% interest in Texstar Preferred Partner Joint Venture III, LP (“Texstar”).  Texstar owns an 80% working interest and a 60% net revenue interest in the Engleke Lease, an oil and gas lease covering the Austin Chalk, Eagle Ford and Buda reservoirs located in the Luling-Banyon field area in Guadalupe County, Texas. This lease contains 14 oil and gas wells, 12 producing wells and2 injection wells that are employing re-stimulation and secondary recovery efforts. This investment is accounted for using the cost method of accounting.  Accordingly, the investment is stated at acquisition cost and distributions are recorded as income when received.  It is not practical to estimate the fair value of this investment; however, management believes that the carrying value at June 30, 2014 was not impaired.