General and Administrative Expenses

12 Months Ended

Dec. 31, 2015

General And Administrative Expenses

General and Administrative Expenses

8. General and Administrative Expenses

In connection with the property acquisition agreement entered into in the third quarter of 2011, the Company executed an operating agreement whereby DNR provides services to operate all of the properties acquired by the Company for a monthly fee of $23,000. The operating agreement expired on March 31, 2012 and renews on a month to month basis.

Based on operator costs for the properties prior to the Company’s acquisition, approximately $8,000 per month was classified as lease operating expenses and $15,000 per month was classified as related party consulting fees. Effective July 1, 2012, the monthly operator fee was reduced to $18,000 per month, of which $8,000 per month is included in lease operating expense and the remaining $10,000 per month is included in related party consulting fees in the consolidated statements of operations.

Presented below is a summary of general and administrative expenses for the years ended December 31, 2015 and 2014:

	2015		2014		Change
Director fees	$	47,833	$	20,450	$	27,383
Investor relations		28,128		65,833		(37,705	)
Legal, auditing and professional services		116,078		146,581		(30,503	)
Consulting and executive services:
Related parties		172,217		220,800		(48,583	)
Unrelated parties		—		—		—
Other administrative expenses		74,634		72,807		1,827
Depreciation		428		570		(142	)
Total general and administrative expenses	$	439,318	$	527,041	$	(87,723	)