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Fourth Quarter Results (Unaudited)
12 Months Ended
Dec. 31, 2011
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information [Text Block]

6. Fourth Quarter Results (Unaudited)

 

During the fourth quarter of 2011, the Company made adjustments to the carrying value of some of one of its oil and gas properties. The Company recorded a valuation allowance in the amount of $23,879 at December 31, 2010 to reflect the change in the projected future discounted net cash flows for this property, as the result of the analysis of the Company's oil and gas reserves by independent consultants.

  

During the fourth quarter of 2010, the Company made adjustments to the carrying value of some of one of its oil and gas properties. The Company recorded a valuation allowance in the amount of $237,647 at December 31, 2010 to reflect the change in the projected future discounted net cash flows for this property, as the result of the analysis of the Company's oil and gas reserves by independent consultants. During the fourth quarter of 2010, the Company recorded a valuation allowance of $117,412 against one of the Company's joint venture wells in Texas. The Company also recorded additional depletion of $27,010 on its oil and gas properties as a result of the analysis of the Company's oil and gas reserves by independent consultants at December 31, 2010.

 

During the fourth quarter of 2009, the Company made adjustments to the carrying value of some of its oil and gas properties. The Company recorded a valuation allowance in the amount of $358,757 as of December 31, 2009, to reflect the change in the projected future undiscounted net cash flows for the properties, as the result of the analysis of the Company's oil and gas reserves by independent consultants. The adjustment at December 31, 2009, of $358,727, is due to write-downs of the Company's investment in two natural gas wells drilled by the Texas joint venture. The economic results from the first well during 2009 and the projected future discounted net cash flows from the second well did not support the costs that had been capitalized at December 31, 2009.