Note 8 - Oil and Gas Exploration and Production Industries Disclosures

12 Months Ended

Sep. 30, 2019

Notes

Note 8 - Oil and Gas Exploration and Production Industries Disclosures

Note 8 – Supplemental Financial Data - Oil and Gas Producing Activities (Unaudited). The Company's operations are confined to the continental United States, and all of the Company's reserves are proved developed. Oil prices used are the average of the NYMEX settlement price for the spot month on the first day of each month of 2019, corrected to received price using a price differential. Income tax expense is not reflected in the tables below because of the anticipated utilization of net operating loss carryforwards and depletion carryforwards. The estimation of reserves is complex and subjective, and reserve estimates tend to fluctuate in light of new production data.

I. Capitalized Costs Relating to Oil and Gas Producing Activities

	September 30, 2019
Proved properties	$                333,000
Accumulated depreciation, depletion, amortization and valuation allowance	(275,000)
Net capitalized cost	$                  58,000

II. Estimated Quantities of Proved Oil and Gas Reserves

	Oil in Barrels
Balance at September 30, 2017	3,700
Revisions of previous estimates	500
Production	(500)
Balance at September 30, 2018	3,700
Revisions of previous estimates	(900)
Production	(400)
Balance at September 30, 2019	2,400

III. Present Value of Estimated Future Net Revenue

	At September 30
	2019	2018
Estimated future revenue	$              100,000	$              225,000
Estimated future expenditures	11,000	26,000
Estimated future net revenue	89,000	199,000
10% annual discount of estimated future net revenue	(31,000)	(79,000)
Present value of estimated future net revenue	$               58,000	$              120,000

IV. Summary of Changes in Present Value of Estimated Future Net Revenue

	Year ended September 30
	2019	2018
Present value of estimated future net revenue, beginning of year	$                120,000	$                  71,000
Sales, net of production costs	(52,000)	(59,000)
Net change in prices and cost of future production	(12,000)	75,000
Revisions of quantity estimates	(25,000)	19,000
Accretion of discount	12,000	8,000
Change in production rates and other	15,000	6,000
Present value of estimated future net revenue, end of year	$                  58,000	$                120,000