Business Combinations and Property Acquisitions

9 Months Ended

Dec. 31, 2012

Business Combinations [Abstract]

Business Combinations and Property Acquisitions

On December 31, 2012, the Company purchased all of the outstanding ownership interests of TBO Oil & Gas, LLC (“TBO”), a Texas limited liability company which owns non-operated working interests in approximately 280 wells producing primarily oil, expanding the Company’s revenues. The cash purchase price of $1,150,000 was funded from our $4.9 million bank credit facility. The Company’s results of operations for the three and nine months periods for 2012 and 2011 do not include any revenues or costs from TBO.

The purchase price was allocated to the assets acquired and liabilities assumed at estimated fair values as follows:

Proved oil and gas properties		$ 1,204,760
Accounts receivable		72,346
	Total assets acquired	1,277,106
Accounts payable		(46,346)
Asset retirement obligations assumed		(80,760)
	Net purchase price	$ 1,150,000

The Company has not disclosed the pro forma information for this acquisition because the revenue and expenses for this acquisition are immaterial to our interim consolidated financial statements.