Property and Equipment

12 Months Ended

Jun. 30, 2015

Property, Plant and Equipment [Abstract]

As of June 30, 2015 and June 30, 2014, our oil and natural gas properties and other property and equipment consisted of the following:



	June 30, 2015			June 30, 2014
Oil and natural gas properties
Property costs subject to amortization	$	57,718,653		$	47,166,282
Less: Accumulated depreciation, depletion, and amortization	(12,531,767		)	(9,344,212		)
Unproved properties not subject to amortization	—			—
Oil and natural gas properties, net	45,186,886			37,822,070
Other property and equipment
Furniture, fixtures and office equipment, at cost	287,680			343,178
Artificial lift technology equipment, at cost	319,994			377,943
Less: Accumulated depreciation	(330,918		)	(296,294		)
Other property and equipment, net	$	276,756		$	424,827

As of June 30, 2015 and 2014, all oil and gas property costs incurred by the Company were being amortized.

During the year ended June 30, 2014, we incurred $377,943 of costs related to the installation of our artificial lift technology, GARP^® on three wells of a five-well program for a third-party customer. Under the contract for these installations, we funded the majority of the incremental equipment and installation costs and receive 25% of the net profits from production, as defined, for as long as the technology remains in the wells.

During the year ended ended June 30, 2015, we incurred $217,733 of additional costs related to the installation on the remaining two wells of this five-well program. Also during the year ended June 30, 2015, we recorded an impairment charge of $275,682 reflecting the unrecovered installation costs of artificial lift equipment, net of estimated residual salvage value, which were associated with three wells of this third-party customer. Artificial lift equipment cost has been reduced by this impairment charge which is included in depreciation, depletion and amortization expense on our consolidated statement of operations.

On October 24, 2014, we sold all of our remaining mineral interest and assets in the Mississippi Lime project for proceeds of $389,165 and the buyer's assumption of all abandonment liabilities.

On December 1, 2013, we sold our producing assets and undeveloped reserves in the Lopez Field in South Texas in return for proceeds of $402,500 and the buyer's assumption of all abandonment liabilities.

The net proceeds from these sales, including the reduction of asset retirement obligations, were recognized as a reduction of the cost of oil and gas properties.