Property and Equipment

9 Months Ended

Sep. 30, 2014

Property and Equipment [Abstract]

Property and Equipment

Note 4 – Property and Equipment

Net property and equipment as of September 30, 2014 and December 31, 2013 consists of the following:

(in thousands)	September 30,  2014			December 31, 2013
Oil and gas properties:
Proved oil and gas properties	$	105,400		$	100,769
Unproved properties not subject to depletion		3,439			2,235
Accumulated depreciation, depletion, amortization and impairment		(63,929	)		(61,736	)
Net oil and gas properties		44,910			41,268
Furniture and fixtures, computer hardware and software, and other equipment		1,039			960
Accumulated depreciation and amortization		(787	)		(673	)
Net other property and equipment		252			287
Total net property and equipment	$	45,162		$	41,555

As of September 30, 2014 and December 31, 2013, the Company had approximately $3.4 million and $2.2 million, respectively, of unproved oil and gas properties not subject to depletion. The costs not subject to depletion relate to unproved properties that are excluded from amortized capital costs until it is determined whether or not proved reserves can be assigned to such properties. The excluded properties are assessed for impairment at least annually. Subject to industry conditions, evaluation of most of these properties and the inclusion of their costs in amortized capital costs is expected to be completed within five years.

During the three months ended September 30, 2014 and 2013, the Company capitalized general and administrative expenses applicable to development and exploration activities of approximately $121,000 and $113,000, respectively. During the nine months ended September 30, 2014 and 2013, the Company capitalized general and administrative expenses applicable to development and exploration activities of approximately $379,000 and $347,000, respectively.

Depletion expense related to oil and gas properties for the three and nine months ended September 30, 2014 was approximately $779,000, or $1.05 per Mcfe, and approximately $2.2 million, or $1.00 per Mcfe, respectively. For the three and nine months ended September 30, 2013, depletion expense was approximately $732,000, or $1.01 per Mcfe, and approximately $2.0 million, or $0.94 per Mcfe, respectively.

Depreciation and amortization expense related to furniture and fixtures, computer hardware and software and other equipment for the three and nine months ended September 30, 2014 was approximately $36,000 and $114,000, respectively, and for the three and nine months ended September 30, 2013 was approximately $35,000 and $94,000, respectively.