Property and Equipment

9 Months Ended

Mar. 31, 2014

Note 2 —Property and Equipment

As of March 31, 2014 and June 30, 2013 our oil and natural gas properties and other property and equipment consisted of the following:

	March 31, 2014			June 30, 2013
Oil and natural gas properties
Property costs subject to amortization	$	47,136,642		$	42,772,184
Less: Accumulated depreciation, depletion, and amortization	(9,089,365		)	(8,095,856		)
Unproved properties not subject to amortization	—			4,112,704
Oil and natural gas properties, net	$	38,047,277		$	38,789,032

Other property and equipment
Furniture, fixtures and office equipment, at cost	334,901			322,514
Less: Accumulated depreciation	(290,168		)	(270,297		)
Other property and equipment, net	$	44,733		$	52,217

During the quarter ended March 31, 2014, we transferred our remaining unevaluated properties of $4.4 million in the Mississippi Lime in Oklahoma to the full cost pool. During the nine months ended March 31, 2013, we transferred $3.8 million of Mississippi Lime properties to the full cost pool as initial quantities of hydrocarbon production were indicative of impairment. At June 30, 2013 unproved property not subject to amortization consisted of unevaluated acreage of $4.1 million for our properties in the Mississippi Lime. Our evaluation of impairment of unproved properties occurs, at a minimum, on a quarterly basis.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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