CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

12 Months Ended

Dec. 31, 2012

Certain Relationships And Related Transactions

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Note 12 – CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The Company is affiliated by common management and ownership with Mesquite Minerals, Inc. (Mesquite), Mid-American Oil Company (Mid-American), Lochbuie Limited Partnership (LLTD) and Lochbuie Holding Company (LHC). The Company also owns interests in certain producing and non-producing oil and gas properties as tenants in common with Mesquite, Mid-American and LLTD.

Mesquite, Mid-American and LLTD share facilities and employees including executive officers with the Company. The Company has been reimbursed for services, facilities, and miscellaneous business expenses incurred in 2012 in the amount of $174,589 each by Mesquite, Mid-American and LLTD. Reimbursements in 2011 were $155,048 each by Mesquite, Mid-American and LLTD. Included in the 2012 amounts, Mesquite, Mid-American and LLTD each paid $124,988 for their share of salaries. In 2011, the share of salaries paid by Mesquite, Mid-American and LLTD was $113,873 each.