7. Property and Equipment

6 Months Ended

Jun. 30, 2017

Property and equipment:

Property and Equipment

Property and equipment at June 30, 2017 and December 31, 2016, consisted of the following:

	June 30,			December 31,
	2017			2016
Property and equipment	$	128,155		$	140,547
Less: Accumulated depreciation and amortization		(112,344	)		(112,128	)
Total property and equipment, net	$	15,811		$	28,419

During the six months ended June 30, 2017 we sold certain assets with a net book value of $6,874 for proceeds of $2,160, resulting in a loss on disposal of $4,714.

The following table shows depreciation, depletion, and amortization expense by type of asset:

	Six Months Ended
	June 30,
	2017		2016
Depletion of costs for evaluated oil and gas properties (1)	$	–	$	3,114,347
Depreciation and amortization of other property and equipment		5,734		7,364
Total depreciation, amortization and depletion	$	5,734	$	3,121,711

⁽¹⁾Presented as a component of loss from discontinued operations, net of income taxes.

Impairment of Oil and Gas Properties

As a result of currently prevailing low commodity prices and their effect on the proved reserve values of properties in 2016, we recorded a non-cash ceiling test impairment of $5,219,000 for the six months ended June 30, 2016. The expense associated with the impairment is presented as a component of loss from discontinued operations, net of income taxes as described in Note 3 – Debt Restructuring. The impairment charge affected our reported net income but did not reduce our cash flow.