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Concentrations
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
16. Concentrations

The Company's producing properties and oil and natural gas reserves are all located in St. Landry and Beauregard parishes in Louisiana. Because of the concentration, the Company is exposed to the impact of regional supply and demand factors, processing or transportation capacity constraints, severe weather events, water shortages, and government regulations specific to the geographic area.

 

The Company sells all of its oil and natural gas production to Katrina Energy, LLC and Cokinos Natural Gas Corporation respectively.  The loss of  these purchasers could  result in a temporary interruption in sales or a lower price for production.