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Supplemental Oil Reserve Information (Unaudited)

12 Months Ended

Dec. 31, 2012

Supplemental Oil Reserve Information [Abstract]

Supplemental Financial Information For Oil and Gas Producing Activities Disclosure [Text Block]

Note 15 – Supplemental Oil Reserve Information (Unaudited)

Results of operations from oil producing activities

The following table shows the results of operations from the Company’s oil producing activities. Results of operations from these activities are determined using historical revenues, production costs and depreciation and depletion. The results of operations from the Company’s oil producing activities below exclude non-oil revenues, general and administrative expenses, interest income and interest expense. Income tax expense was determined by applying the statutory rates to pretax operating results.

	Year Ended December 31, 2012			Year Ended December 31, 2011
Production revenues	$	8,496,519		$	6,285,411
Production costs		(3,102,321	)		(3,440,228	)
Depletion and depreciation		(1,541,069	)		(1,128,712	)
Income tax		(1,305,513	)		(583,600	)
Results of operations for producing activities	$	2,547,616		$	1,132,871

Capitalized costs

The following table summarizes the Company’s capitalized costs of oil properties.

	Year Ended December 31, 2012			Year Ended December 31, 2011
Unevaluated properties not subject to amortization	$	7,830,828		$	7,922,734
Properties subject to amortization		30,466,951			21,602,640
Capitalized costs		38,297,779			29,525,374
Accumulated depletion		(5,094,881	)		(3,764,874	)
Net capitalized costs	$	33,202,898		$	25,760,500

Cost incurred in property acquisition, exploration and development activities

	Year Ended December 31, 2012		Year Ended December 31, 2011
Acquisition of properties	$	-	$	1,422,590
Exploration costs		-		-
Development costs		10,247,539		4,926,105
Net capitalized costs	$	10,247,539	$	6,348,695

Estimated quantities of proved reserves

Our ownership interests in estimated quantities of proved oil reserves and changes in net proved reserves all of which are located in the United States are summarized below. Proved reserves are estimated quantities of oil that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are those that are expected to be recovered through existing wells with existing equipment and operating methods. Reserves are stated in barrels (stb) of oil. Geological and engineering estimates by MHA Petroleum Consultants, LLC of proved oil reserves at one point in time are highly interpretive, inherently imprecise and subject to ongoing revisions that may be substantial in amount. Although every reasonable effort is made to ensure that the reserve estimates are accurate, by their nature reserve estimates are generally less precise than other estimates presented in connection with financial statement disclosures.

	Year Ended December 31, 2012			Year Ended December 31, 2011
	Oil-stb			Oil-stb
Proved reserves:
Beginning		2,714,150			2,320,150
Revisions of previous estimates		(193,059	)		(130,908	)
Purchase of minerals in place		-			700,190
Extension and discoveries		502,751			316,049
Sale of minerals in place		-			(221,365	)
Sales of Rantoul Partners interest					(198,187	)
Production		(96,842	)		(71,729	)
Ending		2,927,000			2,714,200

Proved developed reserves for December 31, 2012 and 2011 consisted of 100% oil and totaled 1,546.3 and 643.1 MBbls, respectively. Proved undeveloped reserves at December 31, 2012 and 2011 were 1,380.8 and 2,071.1 MBbls, respectively.

Standardized measure of discounted future net cash flows

The standardized measure of discounted future net cash flows from our proved reserves for the periods presented in the financial statements is summarized below.

	Year Ended December 31, 2012			Year Ended December 31, 2011
Future production revenue	$	246,535,000		$	242,383,840
Future production costs		(69,131,000	)		(93,373,850	)
Future development costs		(11,766,000	)		(12,767,540	)
Future cash flows before income tax		165,638,000			136,242,450
Future income taxes		(33,550,000	)		(22,864,737	)
Future net cash flows		132,088,000			113,377,713
10% annual discount for estimating of future cash flows		(83,215,000	)		(69,730,808	)
Standardized measure of discounted net cash flows	$	48,873,000		$	43,646,905

Changes in Standardized Measure of Discounted Future Net Cash Flows

The following is a summary of a Standardized Measure of discounted net future cash flows related to the Company’s proved oil reserves. The information presented is based on a calculation of estimated proved reserves using discounted cash flows based on the 12-month average price for oil calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month prior period. The additions to estimated proved reserves from new discoveries and extensions could vary significantly from year to year. Additionally, the impact of changes to reflect current prices and costs of reserves proved in prior years could also be significant.

	Year Ended December 31, 2012			Year Ended December 31, 2011
Balance beginning of year	$	43,646,905		$	25,304,892
Sales, net of production costs		(5,394,198	)		(2,869,339	)
Net change in pricing and production costs		2,870,156			11,287,884
Net change in future estimated development costs		(1,001,445	)		(702,640	)
Purchase of minerals in place		-			16,834,878
Extensions and discoveries		11,274,543			7,598,861
Sale of minerals in place		-			(5,322,346	)
Sale of Rantoul Partners interest		-			(4,765,069	)
Revisions		(4,329,483	)		(3,147,460	)
Accretion of discount		5,324,900			3,119,577
Change in income tax		(3,518,817	)		(3,692,333	)
Balance end of year	$	48,872,560		$	43,646,905