NOTE 14: ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Unaudited)

12 Months Ended

Mar. 31, 2012

Notes to Financial Statements

NOTE 14: ASC 932-235-55 SUPPLEMENTAL DISCLOSURES (Unaudited)

Net Capitalized Costs

The Company's aggregate capitalized costs related to natural gas and oil producing activities are summarized as follows:

	March 31, 2012			March 31, 2011
Natural gas and oil properties and related equipment:
Proven	$	1,163,442		$	1,122,501
Unproven		1,867,183			1,867,183
Accumulated depreciation, depletion, and impairment		(955,161	)		(934,619	)
Net capitalized costs	$	2,075,464		$	2,055,065

Costs Incurred

Costs incurred in natural gas and oil property acquisition, exploration and development activities that have been capitalized are summarized as follows:

	March 31, 2012		March 31, 2011
Acquisition of properties	$	-	$	44,927
Development costs		-		-
Total costs incurred	$	-	$	44,927

Results of Operations for Natural Gas and Oil Producing Activities

The Company's results of operations from natural gas and oil producing activities are presented below for the fiscal years ended March 31, 2012 and 2011. The following table includes revenues and expenses associated directly with the Company's natural gas and oil producing activities. It does not include any interest costs and general and administrative costs and, therefore, is not necessarily indicative of the contribution to consolidated net operating results of the Company's natural gas and oil operations.

	March 31, 2012			March 31, 2011
Production revenues	$	253,882		$	187,913
Production costs		(128,871	)		(150,308	)
Impairment of property		-			-
Depreciation and depletion expense		(69,979	)		(100,869	)
	$	55,032		$	(63,264	)
Imputed income tax provision (1)		-			-
Results of operation for natural gas / oil producing activity	$	55,032		$	(63,264	)

(1)  The imputed income tax provision is hypothetical (at the statutory rate) and determined without regard to the Company's deduction for general and administrative expenses, interest costs and other income tax credits and deductions, nor whether the hypothetical tax provision will be payable.

Natural Gas and Oil Reserve Quantities

The following schedule contains estimates of proved natural gas and oil reserves attributable to the Company. Proved reserves are estimated quantities of natural gas and oil that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are those which are expected to be recovered through existing wells with existing equipment and operating methods. Reserves are stated in thousand cubic feet (mcf) of natural gas and barrels (bbl) of oil. Geological and engineering estimates of proved natural gas and oil reserves at one point in time are highly interpretive, inherently imprecise and subject to ongoing revisions that may be substantial in amount. Although every reasonable effort is made to ensure that the reserve estimates are accurate, due to their nature reserve estimates are generally less precise than other estimates presented in connection with financial statement disclosures.

	Oil - bbls
Proved reserves:
Balance as of March 31, 2006		-
Purchase of reserves-in-place		29,815
Extensions and discoveries		-
Production		(1,043	)
Balance as of March 31, 2007		28,772
Purchase of reserves-in-place		11,560
Extensions and discoveries		4,216
Change in estimates		(11,911	)
Production		(3,504	)
Balance as of March 31, 2008		29,133
Purchase of reserves-in-place		22,282
Extensions and discoveries		-
Change in estimates		-
Production		(5,768	)
Balance as of March 31, 2009		45,647
Purchase of reserves-in-place		-
Extensions and discoveries		-
Change in estimates		-
Production		(22,514	)
Balance as of March 31, 2010		23,133

Purchase of reserves-in-place	4,823
Extensions and discoveries	-
Change in estimates	-
Production	(5,291	)
Balance as of March 31, 2011	22,665
Purchase of reserves-in-place	-
Extensions and discoveries	-
Change in estimates	4,506
Production	(2,439	)
Balance as of March 31, 2012	24,732

Standardized Measure of Discounted Future Net Cash Flows

The following schedule presents the standardized measure of estimated discounted future net cash flows from the Company's proved reserves for the fiscal years ended March 31, 2012 and 2011. Estimated future cash flows are based on independent reserve data. Because the standardized measure of future net cash flows was prepared using the prevailing economic conditions existing at March 31, 2012 and 2011, it should be emphasized that such conditions continually change. Accordingly, such information should not serve as a basis in making any judgment on the potential value of the Company's recoverable reserves or in estimating future results of operations.

	March 31, 2012			March 31, 2011
Future production revenue	$	1,206,434		$	946,493
Future production costs		(665,734	)		(554,316	)
Future development costs		-			-
Future cash flows before income taxes		540,700			392,177
Future income tax		-			-
Future net cash flows		540,700			392,177
Effect of discounting future annual cash flows at 10%		(217,204	)		(119,599	)
Standard measure of discounted net cash flows	$	323,496		$	272,578

(1)  The weighted average oil wellhead price used in computing the Company's reserves were $103.08 per bbl and $78.78 per bbl at March 31, 2012 and 2011, respectively. The weighted average gas wellhead price used in computing the Company's reserves were $3.83 and $3.97/mmbtu at March 31, 2012 and 2011, respectively.

The following schedule contains a comparison of the standardized measure of discounted future net cash flows to the net carrying value of proved natural gas and oil properties at March 31, 2012 and 2011:

	March 31, 2012		March 31, 2011
Standardized measure of discount future net cash flows	$	323,496	$	272,578
Proved natural oil and gas property, net of accumulated
depreciation, depletion, and amortization, including
impairment		208,281		231,720
Standardized measure of discount future net cash flows in
excess of net carrying value of proved natural oil and
gas properties	$	115,215	$	40,858