Related Party Transactions

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

9. Related Party Transactions

During 2014 the Whitehead Trust advanced loans to the Company of $101,720

On December 30, 2014 the Company exchanged its leasehold interests in the Gabbs Valley Prospect to Mr. Whitehead in exchange for the debt owed to the Whitehead Trust. At the date of the exchange, the Company's interest in the Gabbs Valley Prospect was recorded at $191,715. The Company also transferred its related receivables for partner's portion of lease rentals of $14,007 and the office lease deposit of $2,200.  The debt owed to the Whitehead Trust was recorded at $193,300 plus interest due of $3,151.

The Company has no employees.  Mr. Albert E. Whitehead, the Company's Chairman and Chief Executive Officer until January 20, 2015, devoted a considerable amount of time to the affairs of the Company and received no compensation.  On January 21, 2015, J. C. Whorton was appointed as the Company's Chief Executive Officer and Michael R. Morrisett was appointed as the Company's President.  During 2015, Messrs. Whorton and Morrisett each received $6,000 as partial compensation for services provided to the Company.  The fair value of these services in excess of compensation paid is estimated by management and is recognized as a capital contribution.  For each of the years ended December 31, 2015 and 2014, the Company recorded $50,000 as a contribution by its executive officers.

During the year, the Company also paid or accrued $2,000 for rent to a company in which Mr. Whorton also serves as an officer.