Note 5 - Company Operations

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 5. Company Operations

The Company’s operations are classified into

three

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

Following is a summary of segmented operations information for

2016

and

2015:

	2016			2015
Revenues
Oil and Gas	$	510,856		$	786,204
Timber		125,860			52,028
Surface		189,019			223,869
Surface – related party		37,667			- -
Total		863,402			1,062,101
Cost and Expenses
Oil and Gas		47,212			70,240
Timber		11,809			8,026
Surface		2,552			4,330
Total		61,573			82,596
Income from Operations
Oil and Gas		463,644			715,964
Timber		114,051			44,002
Surface		224,134			219,539
Total		801,829			979,505
Other Income (Expense) before Income Taxes		(579,518	)		(305,699	)
Income before Income Taxes		222,311			673,806
Identifiable Assets, net of accumulated depreciation and depletion
Oil and Gas		--			--
Timber		2,072,368			1,546,088
Surface		--			--
General Corporate Assets		12,345,956			12,610,848
Total		14,418,324			14,156,936
Capital Expenditures
Oil and Gas		--			--
Timber		528,031			21,535
Surface		--			--
General Corporate Assets		1,879,519			265,982
Total		2,407,550			287,517

	2016		2015
Depreciation and Depletion
Oil and Gas		--		--
Timber		1,751		2,872
Surface		--		--
General Corporate Assets		467		--
Total	$	2,218	$	2,872

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. The Company evaluates performance based on income or loss from operations before income taxes excluding 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 was:

Count	2016		2015
1	$	129,529	$	167,000
2		117,827		115,000
3		67,307		113,000
4		66,178		94,000
5		63,449		82,000
6		63,309		76,000
7		54,697		64,000
8		--		57,000