Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Reconciliation

Actual income tax benefit (expense) for the years ended December 31, 2011 and 2012 differs from the amounts computed using the federal statutory tax rate of 34%, as follows:

	2011			2012
Income tax benefit (expense) at the statutory rate	$	(168,000	)	$	168,000
Benefit (expense) resulting from:
Increase in Federal valuation allowance		—			(168,000	)
Utilization of net operating loss carryforwards		168,000			—
Income tax benefit (expense)	$	—		$	—

Significant Deferred Tax assets and Liabilities

At December 31, 2011 and 2012, the tax effects of temporary differences that give rise to significant deferred tax assets and liabilities are presented below:

	2011			2012
Federal net operating loss carryforwards	$	2,858,000		$	2,811,000
State net operating loss carryforwards		264,000			286,000
Oil and gas properties		(238,000	)		(222,000	)
Asset retirement obligations		244,000			241,000
Net deferred tax assets		3,128,000			3,116,000
Less valuation allowance		(3,128,000	)		(3,116,000	)
Net deferred tax assets	$	—		$	—