Note 9 - Fair Value Measurements

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note

9

–

FAIR VALUE MEASUREMENTS

Inputs used to measure fair value are organized into a fair value hierarchy based on how observable the inputs are. Level

1

inputs consist of quoted prices in active markets for identical assets. Level

2

inputs are inputs, other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level

3

inputs are unobservable inputs. During

2016

and

2015

there were no transfers into or out of Level

2

or Level

3.

Recurring Fair Value Measurements

Certain of the Company’s assets are reported at fair value in the accompanying balance sheets on a recurring basis. The Company determined the fair value of the available-for-sale securities using quoted market prices for securities with similar maturity dates and interest rates. At

December

 

31,

2016

and

2015,

the Company’s assets reported at fair value on a recurring basis are summarized as follows:

	2016
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial Assets:
Available-for-Sale Securities –
U.S. Treasury Bills Maturing in 2017	$	---	$	13,443,636	$	---
Trading Securities –
Domestic Equities		333,516		---		---
International Equities		83,948		---		---
Others		56,243		---		---

	2015
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial Assets:
Available-for-Sale Securities –
U.S. Treasury Bills Maturing in 2016	$	---	$	8,642,053	$	---
Trading Securities –
Domestic Equities		292,820		---		---
International Equities		100,920		---		---
Others		16,984		---		---

Non-recurring Fair Value Measurements

The Company’s asset retirement obligation incurred annually represents non-recurring fair value liabilities. The fair value of the non-financial liabilities incurred was

$18,321

in

2016

and

$49,275

in

2015

and was calculated using Level

3

inputs. See Note

2

for more information about this liability and the inputs used for calculating fair value.

The fair value of oil and gas properties used in estimating impairment losses of

$727,845

for

2016

and

$3,726,267

for

2015

were based on Level

3

inputs. See Note

10

for the procedure used for calculating these expenses.

Fair Value of Financial Instruments

The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, marketable securities, trade payables, and dividends payable. As of

December

 

31,

2016

and

2015,

the historical cost of cash and cash equivalents, trade receivables, trade payables, and dividends payable are considered to be representative of their respective fair values due to the short-term maturities of these items.