Acquisitions and Divestitures

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Acquisitions and Divestitures

3. Acquisitions and Divestitures

On June 15, 2016, Amadeus Petroleum, Inc. and T-N-T Engineering, Inc. sold its entire interest in producing wells and related oil and gas leases in its Morgan’s Bluff property located in Orange County, Texas.  Production related to the property was 86 BOE/Day during the second quarter of 2016.  The sale price approximated $2,200,000 and resulted in a gain of approximately $1,900,000.  The transaction carried an effective date of July 1, 2016.

.During January to March 2016 the Company paid approximately $770,000 to acquire approximately 220 net acres in La Salle County, TX surrounding Company developed areas and new undeveloped areas classified by the Company as Burns Ranch.  During January to June 2016 the Company paid approximately $1,600,000 to acquire approximately 1,088 net acres in Gonzales County, TX for new well development in the Cyclone area.

In January 2015 the Company exchanged its working interest in two non-operated wells and the underlying leasehold acreage for increased working interests in currently owned and operated property. The exchange resulted in a loss of $629,000. Additionally, the Company acquired 159 net acres in the Eagle Ford Shale trend in La Salle County, TX for $500,000 as a further component of the exchange.