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Property and Equipment

12 Months Ended

Jun. 30, 2012

Property and Equipment

Property and Equipment

Note 4 — Property and Equipment

As of June 30, 2012 and June 30, 2011 our oil and natural gas properties and other property and equipment consisted of the following:

		June 30, 2012			June 30, 2011
Oil and natural gas properties
Property costs subject to amortization		$	40,874,244		$	35,860,517
Less: Accumulated depreciation, depletion, and amortization		(6,440,166		)	(5,353,152		)
Unproved properties not subject to amortization		6,042,094			2,940,199
Oil and natural gas properties, net		$	40,476,172		$	33,447,564

Other property and equipment
Furniture, fixtures and office equipment, at cost		$	322,514		$	261,340
Less: Accumulated depreciation		(230,243		)	(192,078		)
Other property and equipment, net		$	92,271		$	69,262

Unproved properties not subject to amortization includes unevaluated acreage of $6.0 and $2.2 million as of June 30, 2012 and June 30, 2011, respectively, consisting of properties in the Mississippi Lime in Oklahoma as of June 30, 2012 and in the Woodford Shale trend in Oklahoma as of June 30, 2011. Unproved properties include $0.7million as of June 30, 2011 of participating interests through royalty and overriding royalty interests aggregating 7.4% in the Delhi Holt Bryant Unit of the Delhi Field in Louisiana and a 23.9% after payout reversionary working interest in the Delhi Holt Bryant Unit along with a 23.9% working interest in certain other depths in the Delhi Field. Our evaluation of impairment of unproved properties occurs, at a minimum, on a quarterly basis.

The following table provides a summary of costs that are not being amortized as of June 30, 2012, by the fiscal year in which the costs were incurred:

					During the Year Ended June 30,
Costs excluded from amortization		Total			2012			2011			2010			2009			2008

Leasehold acquisition costs and other		$	6,042,094		$	6,042,094		$	—		$	—		$	—		$	—

During the year, the Company received proceeds totaling $799,610, and the retention of overrides and back-in interests, for the farmout of some of its Woodbine rights at Giddings.

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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