Oil and Natural Gas Properties

9 Months Ended

Sep. 30, 2013

Oil and Natural Gas Properties [Abstract]

Oil and Natural Gas Properties

2.    Oil and Natural Gas Properties

The Company completed drilling the East Lusk 15 Federal #3 in the third quarter 2013 and has incurred approximately $2,231,000 of drilling costs, of which approximately $1,917,000 is payable as of September 30, 2013.

The Irby #1 on the Riverdale Prospect in Goliad County, Texas, was drilled to a total depth of 8,904 feet and deemed to be non-economic after analysing the electric logs. The decision was made to plug and abandon the well and no other exploratory wells are planned for this prospect. Dry hole expenses of $152,650 were recognized for the nine months ending September 30, 2013.