Annual report pursuant to Section 13 and 15(d)

SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Tables)

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SUPPLEMENTAL INFORMATION RELATING TO OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Tables)
12 Months Ended
Dec. 31, 2017
Oil and Gas Exploration and Production Industries Disclosures [Abstract]  
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure

In 2016, the Company purchased 90% working interest in the SUDS field in the amount of $8,373,186 and also purchased the 25% working interest in the TLSAU field in the amount of $350,000. In 2017, the Company purchased a 60% working interest in the TLSAU field in the amount of $745,788. With these purchases the Company obtained 100% working interest in the TLSAU field.

 

    Fiscal
 Year Ended
 December 31,
 2017
    Fiscal
 Year Ended
 December 31,
 2016
 
Property acquisitions   $ 745,788     $ 8,723,186  
Unevaluated            
Evaluated            
Exploration            
Development            
Total Costs Incurred   $ 745,788     $ 8,723,186  
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure

Capitalized costs for unproved properties include costs for acquiring oil and gas leaseholds and geological and geophysical expenses where no proved reserves have been identified.

 

    December 31, 2017     December 31, 2016  
Capitalized costs                
Unevaluated properties   $     $  
Evaluated properties     13,837,800       13,092,012  
      13,837,800       13,092,012  
Less: Accumulated DD&A     (1,068,795 )     (1,042,545 )
Net capitalized costs   $ 12,769,005     $ 12,049,467  
Schedule of Proved Oil and Gas Reserve Quantities

The following table sets forth estimates of the proved oil and gas reserves (net of royalty interests) for the Company and changes therein, for the periods indicated.

 

    Oil
 (Bbls)
 
       
December 31, 2015     734,520  
Revisions of prior estimates     (58,297 )
Purchases of reserves in place     1,557,660  
Production     (6,643 )
December 31, 2016     2,227,240  
Revisions of prior estimates     (2,186,554 )
Purchases of reserves in place     1,600,935  
Production     (3,421 )
December 31, 2017     1,638,200  

  

 
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities
  December 31, 2017     December 31, 2016  
             
Estimated Quantities of Proved Developed Reserves – Oil (Bbls)     1,598,010       1,206,010  
Estimated Quantities of Proved Undeveloped Reserves – Oil (Bbls)     40,190       1,021,230  

 

The following table sets forth estimates of the proved developed and proved undeveloped oil and gas reserves (net of royalty interests) for the Company and changes therein, for the period indicates.

 

Proved developed producing and non-producing reserve   Oil (bbls)  
December 31, 2016     1,206,010  
Acquired Reserves     377,670  
Revision of prior estimates     17,751  
Production     (3,421 )
December 31, 2017     1,598,010  

 

Proved undeveloped reserves   Oil (bbls)  
December 31, 2016     1,021,230  
Acquired Reserves     1,223,265  
Revisions to prior estimates     (2,204,305 )
December 31, 2017     40,190  

 

Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure

The following table sets forth the changes in standardized measure of discounted future net cash flows relating to proved oil and gas reserves for the periods indicated.

 

    December 31, 2017     December 31, 2016  
             
Future cash inflows   $ 62,964,150     $ 90,265,000  
Future production costs     (27,336,630 )     (47,050,770 )
Future development costs     (1,491,500 )     (10,396,000 )
Future income taxes            
                 
Future net cash flows     34,136,020       32,818,230  
Discount of future net cash flows at 10% per annum     (17,530,040 )     (19,253,750 )
                 
Standardized measure of discounted future net cash flows   $ 16,605,980     $ 13,564,480  

 

Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows

Changes in standardized measure of discounted future cash flows

 

    December 31, 2017     December 31, 2016  
             
Beginning of year   $ 13,564,480     $ 6,220,500  
Sales and transfers of oil & gas produced, net of production costs     267,997       175,048  
Net changes in prices and production costs     1,967,068       (1,917,506 )
Changes in estimated future development costs     1,806,404       (673,960 )
Acquisitions of minerals in place, net of production costs     7,645,722       9,941,241  
Revision of previous estimates     (19,654,723 )     (544,877 )
Change in discount     732,656       817,235  
Change in production rate or other     (10,276,980 )     (453,201 )
                 
End of year   $ 16,605,980     $ 13,564,480