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Property and Equipment

9 Months Ended

Mar. 31, 2012

Property and Equipment

Property and Equipment

Note 2 — Property and Equipment

As of March 31, 2012 and June 30, 2011 our oil and natural gas properties and other property and equipment consisted of the following:

		March 31, 2012			June 30, 2011
Oil and natural gas properties
Property costs subject to amortization		$	40,654,659		$	35,860,517
Less: Accumulated depreciation, depletion, and amortization		(6,160,702		)	(5,353,152		)
Unproved properties not subject to amortization		695,554			2,940,199
Oil and natural gas properties, net		$	35,189,511		$	33,447,564

Other property and equipment
Furniture, fixtures and office equipment, at cost		$	308,814		$	261,340
Less: Accumulated depreciation		(218,871		)	(192,078		)
Other property and equipment, net		$	89,943		$	69,262

Unproved properties not subject to amortization includes: unevaluated acreage of $0.7 million and $2.9 million as of March 31, 2012 and June 30, 2011, respectively, of which (i) $0.7 million as of March 31, 2012 and June 30, 2011, related to our interests in the Delhi Field in Louisiana; and (ii) $6,000 and $2.2 million as of March 31, 2012 and June 30, 2011, respectively, related to Woodford Shale trend in Oklahoma. Development of our unproved properties is expected to be completed within five years. Our evaluation of impairment of unproved properties occurs, at a minimum, on a quarterly basis. During the nine months ended March 31, 2012, our evaluations determined that approximately $2.2 million of our unevaluated Woodford Shale trend property was impaired and, accordingly, was moved to the full cost pool.

During the quarter the Company sold a portion of its Woodbine lease rights and realized net proceeds of $103,184 and recorded a corresponding reduction to its full cost pool. There were no proved reserves associated with these rights.

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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