Note 3 - Company Operations

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 3.       Company Operations

The Company’s operations are classified into three principal operating segments that are all located in the United States: oil and gas, timber and surface. The Company’s reportable business segments are strategic business units that offer income from different products all of which are derived from the Company lands. They are managed separately due to the unique aspects of each area.

Following is a summary of segmented operations information for the six months ended June 30, 2016 and 2015, respectively:

	2016			2015
Revenues:
Oil and Gas	$	208,199		$	472,522
Timber		120,868			--
Surface		98,889			55,714
Total		427,956			528,236
Cost and Expenses:
Oil and Gas		22,869			38,448
Timber		9,855			391
Surface		2,201			1,436
Total		34,925			40,275
Income from Operations:
Oil and Gas		185,330			434,074
Timber		111,013			(391	)
Surface		96,688			54,278
Total		393,031			487,961
Other Expense before Income Taxes:		(260,531	)		(69,957	)
Income before Income Taxes		132,500			418,004
Identifiable Assets, net of accumulated depreciation:
Oil and Gas	$	--		$	--
Timber		1,598,058			1,548,960
Surface		--			--
General Corporate Assets		12,765,073			12,468,122
Total		14,363,131			14,017,082
Capital Expenditures:
Oil and Gas		--			--
Timber		53,721			21,535
Surface		--			--
General Corporate Assets:		272,533			--
Total		326,254			21,535
Depreciation and Depletion:
Oil and Gas		--			--
Timber		1,751			--
Surface		--			--
General Corporate Assets		--			--
Total	$	1,751		$	--

There are no intersegment sales reported in the accompanying income statements. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in the Company’s Form 10-K for the year ended December 31, 2015. The Company evaluates performance based on income or loss from operations before income taxes excluding any nonrecurring gains and losses on securities held available-for-sale. Income before income tax represents net revenues less costs and expenses less other income and expenses of a general corporate nature. Identifiable assets by segment are those assets used solely in the Company's operations within that segment.

Revenue from customers representing 5% or more of total revenue for the six months ended June 30, 2016 and 2015, respectively are:

Count	2016		2015
1	$	112,835	$	93,755
2		63,449		87,285
3		59,522		72,415
4		34,191		43,833
5		32,695		42,376
6		30,061		33,519
7		--		30,440