Accounts Receivable Due From Drilling Operator And Account Payable Due To Drilling Operator

9 Months Ended

Sep. 30, 2015

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Accounts Receivable Due From Drilling Operator And Account Payable Due To Drilling Operator

NOTE 3 — ACCOUNTS RECEIVABLE DUE FROM DRILLING OPERATOR AND ACCOUNTS PAYABLE DUE TO DRILLING OPERATOR

Prior to 2012, we had been the drilling operator for wells drilled on our behalf and other third parties in which we own a working interest. In 2012, another working interest owner became the drilling operator for wells in which we own a working interest.

The amount due from the drilling operator as of September 30, 2015 and December 31, 2014, respectively is $253,753 and $0 for charges related to employee salary reimbursements, travel expense and lease costs.

The amount due to the drilling operator as of September 30, 2015 and December 31, 2014, respectively is $0 and $5,777,983 for charges incurred, but not paid. The amount due to the operator reported at December 31, 2014 has been reduced for consideration received from the Republic PSA (see Note 6), which was to be paid in the form of a credit against the expenses incurred by Republic Energy Ventures on behalf of American Shale. The amount due to the operator reported at December 31, 2014, is net of a $708,467 credit related to intercompany charges related to employee salary reimbursements, travel expenses, and lease costs.