13. SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED)

In December 2008 the SEC announced revisions to its regulations on oil and gas reporting. In January 2010, the Financial Accounting Standards Board issued an accounting standards update which was intended to harmonize the accounting literature with the SEC's new regulations.

Future cash flows beginning in for 2010 would be computed by applying average price for the year to the year-end quantities of proved reserves. The average price for the year would be calculated using the twelve month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first day of the month price for each month within such period. The Company had no proved reserves in 2013, 2012, and 2011.

Estimates of reserve quantities and related standardized measure of discounted net cash flows are estimates only, and are not intended to reflect realizable values or fair market values of reserves. Reserve estimates are inherently imprecise and estimates of new discoveries are more imprecise than producing oil and gas properties. Additionally, the price of oil has been very volatile and downward changes in prices can significantly affect quantities that are economically recoverable. Accordingly, estimates are expected to change as future information becomes available and these changes may be significant.

Proved reserves are estimated reserves of crude oil and natural gas 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 expected to be recovered through existing wells, equipment and operating methods.

The standardized measure of discounted future net cash flows are computed by applying average price for the year (with consideration of price changes only to the extent provided by contractual arrangements) to the estimated future production of proved oil and gas reserves, less estimated future expenditures (based on year-end costs) to be incurred in developing and producing the proved reserves, less estimated future income tax expenses. The estimated future net cash flows are then discounted using a rate of 10% per year to reflect the estimated timing of the future cash flows.

Capitalized Costs Related to Oil and Gas Activities

Aggregate capitalized costs relating to our crude oil and natural gas producing activities, including asset retirement costs and related accumulated depreciation, depletion & amortization are shown below (in thousands):

	United States		Republic of Guinea			Total

June 30, 2013
Unproved properties	$	—	$	21,174			21,174
Proved properties		—		116,753			116,753

		—		137,927			137,927
Less accumulated DD&A		—		(116,753	)		(116,753	)

Net capitalized costs	$	—	$	21,174			21,174

June 30, 2012
Unproved properties	$	—	$	39,278		$	39,278
Proved properties		—		116,312			116,312

		—		155,590			155,590
Less accumulated DD&A		—		(116,312	)		(116,312	)

Net capitalized costs	$	—	$	39,278			39,278

June 30, 2011
Unproved properties	$	—	$	36,200		$	36,200
Proved properties		—		—			—

		—		36,200			36,200
Less accumulated DD&A		—		—			—

Net capitalized costs	$	—	$	36,200		$	36,200

Costs Incurred in Oil and Gas Activities

Costs incurred in connection with our crude oil and natural gas acquisition, exploration and development activities are shown below (in thousands):

	United States		Republic of Guinea		Total

June 30, 2013
Property acquisition:
Unproved	$	—	$	—	$	—
Proved		—		441		441
Exploration		—		5,381		5,381
Development		—		—		—

Total costs incurred	$		$	5,822	$	5,822

June 30, 2012
Property acquisition:
Unproved	$	—	$	—	$	—
Proved		—		90,834		90,834
Exploration		—		28,556		28,556
Development		—		—		—

Total costs incurred	$		$	119,390	$	119,390

June 30, 2011
Property acquisition:
Unproved	$	—	$	9,226	$	9,226
Proved		—		—		—
Exploration		—		26,882		26,882
Development		—		—		—

Total costs incurred	$	—	$	36,108	$	36,108

Proved Reserves

We do not hold any proved reserves as of June 30, 2013 and 2012.