15. Supplemental Oil and Gas Information (unaudited)

Information with respect to the Company’s oil and gas producing activities is presented in the following tables. Estimates of reserves quantities, as well as future production and discounted cash flows before income taxes, were determined by LaRoche Petroleum Consultants Ltd. All of the Company’s reserves were located in the United States.

Capitalized Costs Related to Oil and Gas Producing Activities

The table below reflects our capitalized costs related to our oil and gas producing activities at December 31, 2015 and 2014 (in thousands):



	Years Ended December 31,
	2015		2014
Proved oil and gas properties	$	8,286	$	49,388
Unproved properties		552		462
Total proved and unproved oil and gas properties	$	8,838	$	49,850
Less accumulated depreciation, depletion and amortization		—		(24,437)
Net oil and gas properties	$	8,838	$	25,413

As a result of the ceiling test impairment during 2015, the accumulated depreciation, depletion, and amortization has been netted against the cost to reflect the post impairment value of the oil and gas properties.

Oil and Gas Related Costs

The following table sets forth information concerning costs incurred, including accruals, related to the Company’s oil and gas property acquisition, exploration and development activities (in thousands):



	Years Ended December 31,
	2015		2014		2013
Property acquisitions proved	$	—	$	—	$	—
Property acquisitions unproved		90		598		488
Exploration cost		22		2,367		914
Development cost		252		864		998
Total	$	364	$	3,829	$	2,400

Results of Operations from Oil and Gas Producing Activities

The following table sets forth the Company’s results of operations from oil and gas producing activities (in thousands):



	Years Ended December 31,
	2015		2014		2013
Revenues	$	5,631	$	13,260	$	15,325
Production costs and taxes		(3,360)		(4,876)		(4,854)
Depreciation, depletion and amortization		(2,538)		(2,766)		(2,606)
Impairment		(14,526)		—		—
Income (loss) from oil and gas producing activities	$	(14,793)	$	5,618	$	7,865

In the presentation above, no deduction has been made for indirect costs such as general corporate overhead or interest expense. No income taxes are reflected above due to the Company’s operating tax loss carry-forward position.

Estimated Quantities of Oil and Gas Reserves

The following table sets forth the Company’s net proved oil and gas reserves and the changes in net proved oil and gas reserves for the years ended December 31, 2013, 2014 and 2015. All of the Company’s proved reserves are located in the United States of America.



	Oil (MBbl)	Gas (MMcf)	MBOE
Proved reserves at December 31, 2012	2,213	22	2,217
Revisions of previous estimates	(153)	16	(151)
Improved recovery	—	—	—
Purchase of reserves in place	—	—	—
Extensions and discoveries	170	—	170
Production	(166)	(38)	(172)
Sales of reserves in place	(24)	—	(24)
Proved reserves at December 31, 2013	2,040	—	2,040
Revisions of previous estimates	(253)	—	(253)
Improved recovery	—	—	—
Purchase of reserves in place	—	—	—
Extensions and discoveries	164	—	164
Production	(154)	—	(154)
Sales of reserves in place	—	—	—
Proved reserves at December 31, 2014	1,797	—	1,797
Revisions of previous estimates	(790)	—	(790)
Improved recovery	—	—	—
Purchase of reserves in place	—	—	—
Extensions and discoveries	1	—	1
Production	(131)	—	(131)
Sales of reserves in place	—	—	—
Proved reserves at December 31, 2015	877	—	877

Proved developed reserves at:
December 31, 2012	1,822	22	1,826
December 31, 2013	1,575	—	1,575
December 31, 2014	1,438	—	1,438
December 31, 2015	877	—	877

Proved undeveloped reserves at:
December 31, 2012	391	—	391
December 31, 2013	465	—	465
December 31, 2014	359	—	359
December 31, 2015	—	—	—

The Company’s Proved Undeveloped Reserves at December 31, 2015 included no locations as compared to 27 locations at December 31, 2014. During 2015, all Proved Undeveloped locations were removed from the Company’s Proved Reserves primarily due to the low oil prices experienced during 2015.

The following table identifies the reserve value by category and the respective present values, before income taxes, discounted at 10% as a percentage of total proved reserves (in thousands):



	Year Ended 12/31/2015						Year Ended 12/31/2014						Year Ended 12/31/2013
	Oil		Gas		Total		Oil		Gas		Total		Oil		Gas		Total
Total proved reserves year-end reserve report	$	8,287		—	$	8,287	$	40,417		—	$	40,417	$	47,856		—	$	47,856
Proved developed producing reserves (PDP)	$	7,686		—	$	7,686	$	32,059		—	$	32,059	$	34,440		—	$	34,440
% of PDP reserves to total proved reserves		93%		—		93%		79%		—		79%		72%		—		72%
Proved developed non- producing reserves	$	601		—	$	601	$	2,956		—	$	2,956	$	4,868		—	$	4,868
% of PDNP reserves to total proved reserves		7%		—		7%		7%		—		7%		10%		—		10%
Proved undeveloped reserves (PUD)	$	—		—	$	—	$	5,402		—	$	5,402	$	8,548		—	$	8,548
% of PUD reserves to total proved reserves		—		—		—		14%		—		14%		18%		—		18%

Standardized Measure of Discounted Future Net Cash Flows

The standardized measure of discounted future net cash flows from the Company’s proved oil and gas reserves is presented in the following table (in thousands):



	Years Ended December 31,
	2015		2014		2013
Future cash inflows	$	38,566	$	158,792	$	183,801
Future production costs and taxes		(23,500)		(71,951)		(82,307)
Future development costs		(951)		(10,014)		(11,162)
Future income tax expenses		—		(13,092)		(18,910)
Future net cash flows		14,115		63,735		71,422

Discount at 10% for timing of cash flows		(5,828)		(29,204)		(32,714)
Standardized measure of discounted future net cash flows	$	8,287	$	34,531	$	38,708

The following are the principal sources of change in the standardized measure of discounted future net cash flows from the Company’s proved oil and gas reserves (in thousands):



	Years Ended December 31,
	2015		2014		2013
Balance, beginning of year	$	34,531	$	38,708	$	45,354
Sales, net of production costs and taxes		(1,901)		(8,385)		(10,471)
Discoveries and extensions, net of costs		5		4,231		4,047
Purchase of reserves in place		—		—		—
Sale of reserves in place		—		—		(767)
Net changes in prices and production costs		(16,009)		(829)		(1,277)
Revisions of quantity estimates		(22,431)		(6,610)		(4,306)
Previously estimated development cost incurred during the year		—		508		3,149
Changes in future development costs		4,890		(1,913)		(1,392)
Changes in production rates (timing) and other		(56)		1,312		368
Accretion of discount		3,373		4,247		4,593
Net change in income taxes		5,885		3,262		(590)
Balance, end of year	$	8,287	$	34,531	$	38,708

Estimated future net cash flows represent an estimate of future net revenues from the production of proved reserves using average sales prices, along with estimates of the operating costs, production taxes and future development and abandonment cost (less salvage value) necessary to produce such reserves. Future income taxes were calculated by applying the statutory federal and state income tax rates to pre-tax future net cash flows, net of the tax basis of the properties and utilizing available tax loss carryforwards related to oil and gas operations. The oil prices used for December 31, 2015, 2014, and 2013, were $43.98, $88.34, $90.11 per barrel of oil respectively. The Company’s proved reserves as of December 31, 2015, 2014 and 2013 were measured by using commodity prices based on the twelve month unweighted arithmetic average of the first day of the month price for the period January through December. No deduction has been made for depreciation, depletion or any indirect costs such as general corporate overhead or interest expense.