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5. Property and Equipment | 9 Months Ended
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Sep. 30, 2015
Property and equipment: |
Property and Equipment | Property and equipment at September 30, 2015 and December 31, 2014, consisted of the following:
|  | September 30, |  |  | December 31, |
|  | 2015 |  |  | 2014 |
Oil and gas properties, full cost method: |  |  |  |  |  |  |  |
Evaluated costs |  | $ | 128,083,460 |  |  | $ | 112,418,105 |
Unevaluated costs, not subject to amortization or ceiling test |  |  | 803,718 |  |  |  | 591,121 |
|  |  | 128,887,178 |  |  |  | 113,009,226 |
Other property and equipment |  |  | 139,004 |  |  |  | 139,004 |
|  |  | 129,026,182 |  |  |  | 113,148,230 |
Less: Accumulated depreciation, amortization, depletion and impairments |  |  | (78,895,166 | ) |  |  | (18,902,524 | )
Total property and equipment, net |  | $ | 50,131,016 |  |  | $ | 94,245,706 |
The following table shows depreciation, depletion, and amortization expense by type of asset:
|  | Nine Months Ended |
|  | September 30, |
|  | 2015 |  |  | 2014 |
Depletion of costs for evaluated oil and gas properties |  | $ | 7,346,356 |  |  | $ | 5,994,180 |
Depreciation and amortization of other property and equipment |  |  | 12,286 |  |  |  | 24,327 |
Total depreciation, amortization and depletion |  | $ | 7,358,642 |  |  | $ | 6,018,507 |
Impairment of Oil and Gas Properties As a result of currently prevailing low commodity prices and their effect on the proved reserve values of properties in 2015, we recorded non-cash ceiling test impairments of $52,634,000 in the nine months ended September 30, 2015. The Company did not have any impairment of its proved oil and gas properties for the nine months ended September 30, 2014. The impairment charges affected our reported net income but did not reduce our cash flow. Continued write downs of oil and natural gas properties are expected to occur until such time as commodity prices have recovered, and remain at recovered levels, so as to meaningfully increase the trailing 12-month average price used in the ceiling calculation. In addition to commodity prices, our production rates, levels of proved reserves, future development costs, transfers of unevaluated properties and other factors will determine our actual ceiling test calculation and impairment analyses in future periods.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.13-14) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1361-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=51719941&loc=d3e2921-110230 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229 + Details
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