10.	Commitments

As of December 31, 2014 and 2013, we had a $30,000 outstanding standby letter of credit in favor of the State of Wyoming as a plugging bond. As of December 31, 2014, we had a $25,000 outstanding letter of credit in the favor of the Bureau of Land Management. Both letters of credit are collateralized by our line of credit with Citibank.

In January 2014, the Company entered into a two year operating lease for office space in Austin, Texas, which expires January 31, 2016. Rent expense under this lease was approximately $33,000 for the year ended December 31, 2014. Minimum future rentals on this non-cancelable operating lease as of December 31, 2014, are as follows:

2015	$	36,000
2016		3,000
	$	39,000

On November 12, 2013, we engaged Stephens, Inc. (“Stephens”) to provide general financial and Investment Banking advice. Pursuant to the agreement we began paying Stephens a retainer of $10,000 per month, paid monthly in advance beginning January 1, 2014. The agreement can be terminated by either party with thirty days’ notice with no further obligation for a monthly retainer. The agreement provides for success fees in the range of 1% to 7% depending on the nature of the transaction. Furthermore, any amounts paid for the retainer would be credited against any investment banking fees due in the event of a successful transaction. On July 3, 2014, we amended the original agreement to extend it to May 12, 2015, and Stephens agreed to waive all future monthly retainer payments. All previous agreed upon terms of the Original Engagement are still effective.

The Company entered into an “at will” employment agreement with Phillip Roberson as President and CFO for a three year period beginning July 1, 2014, with a beginning base salary of $200,000 annually. Beginning January 1, 2015, the Board of Directors may in its sole discretion award an annual performance based bonus award to Mr. Roberson.

Occasionally, we are involved in various legal and regulatory proceedings arising in the normal course of business. Management cannot predict the outcome of these proceedings with certainty and does not believe that an adverse result would be material to the Company’s financial position or results of operations.