Note 9 - Supplemental Financial Data - Oil and Gas Producing Activities (Unaudited)

12 Months Ended

Sep. 30, 2020

Notes

Note 9 - Supplemental Financial Data - Oil and Gas Producing Activities (Unaudited)

Note 9 - 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.

I. Capitalized Costs. Capitalized costs include the cost of properties, excluding any asset retirement obligations.

	September 30, 2020
Proved properties	$        333,000
Accumulated depreciation, depletion, amortization and valuation allowance	(283,000)
Net capitalized cost	$         50,000

II. Estimated Quantities of Reserves. Reed W. Ferrill & Associates, Inc., an independent engineering firm, prepared the Company’s estimate of reserves, future production, and income. The estimated reserves include only those quantities that are expected to be commercially recoverable at prices and costs in effect at the balance sheet dates under existing regulations and with conventional operating methods. Proved, developed reserves represent only those reserves expected to be recovered from existing wells.

	Oil in Barrels
Balance at September 30, 2018	3,700
Revisions of previous estimates	(900)
Production	(400)
Balance at September 30, 2019	2,400
Revisions of previous estimates	(700)
Production	(600)
Balance at September 30, 2019	1,100

III. Standardized Measure of Discounted Cash Flows. The standardized measure of discounted cash flows from the Company’s oil and gas reserves is summarized below. Cash flows are discounted at an annual rate of 10%. This does not result in an estimate of fair market or present value. Prices are the average of the NYMEX settlement price on the first day of each month of the year, corrected to received price. Cash flows are computed by applying that price to estimated production, less estimated expenditures incurred in estimated production. Income tax expense is not included because of the anticipated utilization of net operating loss and depletion carryforwards. The estimation of reserves is complex and subjective, and reserve estimates fluctuate in light of new production data.

	At September 30
	2020	2019
Estimated future revenue	$            33,000	$          100,000
Estimated future expenditures	(2,000)	(11,000)
Estimated future net revenue	31,000	89,000
10% annual discount of estimated future net revenue	(8,000)	(31,000)
Present value of estimated future net revenue	$           23,000	$           58,000

IV. Summary of Changes in Standardized Measure of Discounted Future Net Cash Flows

	Year ended September 30
	2020	2019
Present value of estimated future net revenue, beginning of year	$            58,000	$       120,000
Sales, net of production costs	(30,000)	(52,000)
Net change in prices and cost of future production	(7,000)	(12,000)
Revisions of quantity estimates	(16,000)	(25,000)
Accretion of discount	6,000	12,000
Change in production rates and other	12,000	15,000
Present value of estimated future net revenue, end of year	$            23,000	$        58,000