Additional Operations and Balance Sheet Information

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Additional Operations and Balance Sheet Information

13. ADDITIONAL OPERATIONS AND BALANCE SHEET INFORMATION

Certain information about the Company's operations for the years ended December 31, 2019, 2018 and 2017 follows.

Dependence on Customers

The following is a summary of a partial list of purchasers / operators (listed by percent of total oil and natural gas sales) from oil and natural gas produced by the Company for the three-year period ended December 31, 2019:

Purchaser / Operator	2019			2018			2017
Sunoco Partners Marketing		21	%		18	%		18	%
Targa Midstream Services, LLC		8	%		9	%		13	%
Bedrock Production LLC		8	%		0	%		0	%
Enlink Gas Marketing, LTD.		8	%		10	%		13	%
ETX Energy, LLC formerly New Gulf Resources		6	%		5	%		7	%
Eastex Crude Company		5	%		3	%		7	%
Barnett Gathering, LP		5	%		4	%		1	%
ACE Gathering, Inc.		4	%		4	%		2	%
Peveler Pipeline, LP		3	%		0	%		0	%
Shell Trading (US) Company		3	%		4	%		4	%
Pruet Production Co.		3	%		3	%		3	%
Phillips 66		3	%		1	%		1	%
Hunt Crude Oil Supply		3	%		0	%		0	%
ETC Texas Pipeline, Ltd		2	%		4	%		2	%
Midcoast Energy Partners LP		2	%		3	%		4	%
Land and Natural Resource Develomeent		1	%		2	%		0	%
Enlink Crude Purchasing, LLC		1	%		0	%		0	%
FDL Operating LLC		1	%		1	%		0	%
Valero Energy Corporation		1	%		1	%		3	%
Empire Pipeline Corp.		1	%		1	%		1	%
DCP Midstream, LP		1	%		4	%		3	%
XTO Energy, Inc.		1	%		1	%		1	%
OXY USA, Inc.		1	%		1	%		2	%
Range Resources Corporation		1	%		1	%		1	%
Sandridge Energy, Inc.		1	%		1	%		1	%
White Knight Production, LLC		1	%		0	%		0	%
Webb Energy Resources, Inc.		0	%		1	%		1	%
Enervest Operating, LLC		0	%		10	%		3	%
Courson Oil & Gas, Inc.		0	%		0	%		1	%
LPC Crude Oil Marketing LLC		0	%		2	%		3	%
Lucid Energy Group II (Formerly Agave Energy Co.)		0	%		1	%		2	%
Enterprise Crude Oil, LLC		0	%		1	%		0	%
Ward Petroleum Corporation		0	%		0	%		1	%

Oil and natural gas is sold to approximately 106 different purchasers under market sensitive, short-term contracts computed on a month to month basis.

Except as set forth above, there are no other customers of the Company that individually accounted for more than one percent (1%) of the Company's oil and gas revenues during the three years ended

December 31, 2019.

The Company currently has no hedged contracts.

Certain revenues, costs and expenses related to the Company's oil and gas operations are as follows:

	Year Ended December 31,
	2019			2018			2017
Capitalized costs relating to oil and gas
producing activities:
Unproved properties	$	1,876,000		$	1,896,000		$	1,891,000
Proved properties		25,062,000			25,996,000			26,675,000
Total capitalized costs		26,938,000			27,892,000			28,566,000
Accumulated amortization		(24,848,000	)		(24,454,000	)		(24,015,000	)
Total capitalized costs, net	$	2,090,000			3,438,000			4,551,000

	Year Ended December 31,
	2019		2018		2017
Costs incurred in oil and gas property
acquisitions, exploration and development:
Acquisition of properties	$	214,000	$	354,000	$	3,629,000
Development costs		72,000		191,000		856,000
Total costs incurred	$	286,000	$	545,000	$	4,485,000

	Year Ended December 31,
	2019		2018		2017
Results of operations from producing activities:
Sales of oil and gas	$	4,631,000	$	5,848,000	$	4,495,000
Production costs		2,582,000		2,491,000		2,058,000
Amortization of oil and gas properties		394,000		439,000		458,000
Total production costs		2,976,000		2,930,000		2,516,000
Total net revenue	$	1,655,000	$	2,918,000	$	1,979,000

	Year Ended December 31,
	2019		2018		2017
Sales price per equivalent Mcf	$	3.97	$	5.16	$	4.85
Production costs per equivalent Mcf	$	2.21	$	2.20	$	2.22
Amortization per equivalent Mcf	$	0.34	$	0.39	$	0.49

	Year Ended December 31,
	2019		2018		2017
Results of operations from gas gathering
and equipment rental activities:
Revenue	$	125,000	$	136,000	$	126,000
Operating expenses		32,000		49,000		40,000
Depreciation		2,000		1,000		5,000
Total costs		34,000		50,000		45,000
Total net revenue	$	91,000	$	86,000	$	81,000