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6. Oil and Gas Properties

9 Months Ended

Sep. 30, 2015

The following table summarizes gross and net productive oil wells by state at September 30, 2015 and 2014. A net well represents our percentage ownership of a gross well. The following table does not include wells in which our interest is limited to royalty and overriding royalty interests. The following table also does not include wells which were awaiting completion, in the process of completion or awaiting flow back subsequent to fracture stimulation.

	September 30, 2015				September 30, 2014
	Gross		Net		Gross		Net
North Dakota		336		10.51		230		7.28
Montana		5		0.37		1		0.08
Total		341		10.88		231		7.36

The Company’s oil and gas properties consist of all acreage acquisition costs (including cash expenditures and the value of stock consideration), drilling costs and other associated capitalized costs. As of September 30, 2015 and 2014, our principal oil and gas assets included approximately 8,509 and 9,919 net acres, respectively, located in North Dakota and Montana.

The following table summarizes our capitalized costs for the purchase and development of our oil and gas properties for the nine months ended September 30, 2015 and 2014, respectively:

	Nine Months Ended
	September 30,
	2015			2014
Purchases of oil and gas properties and development costs for cash	$	17,968,423		$	17,410,744
Purchase of oil and gas properties accrued at period-end		7,359,282			11,775,176
Purchase of oil and gas properties accrued at beginning of period		(9,364,796	)		(7,953,801	)
Advances to operators applied to purchase of oil and gas properties		–			4,285,575
Capitalized asset retirement costs, net of revision in estimate		42,391			61,815
Total purchase and development costs, oil and gas properties	$	16,005,300		$	25,579,509

2015 Acquisitions

During the nine months ended September 30, 2015, we purchased approximately nine net leasehold acres of oil and gas properties. In consideration for the assignment of these mineral leases, we paid the sellers a total of approximately $102,928.

2015 Divestitures

During the nine months ended September 30, 2015, we sold a total of approximately 14 net leasehold acres of oil and gas properties and three wellbores for total proceeds of $127,348. No gain or loss was recorded pursuant to the sales.

2014 Acquisitions

During the nine months ended September 30, 2014, we purchased approximately 319 net leasehold acres of oil and gas properties. In consideration for the assignment of these mineral leases, we paid the sellers a total of approximately $2,401,318.

2014 Divestitures

During the nine months ended September 30, 2014, we sold a total of approximately 490 net leasehold acres of oil and gas properties for total proceeds of $1,340,920. No gain or loss was recorded pursuant to the sales.

2014 Swap Transactions

During the nine months ended September 30, 2014, we traded approximately 52 net leasehold acres of oil and gas properties for 40 net mineral acres and $20,000 in cash. No gain or loss was recorded pursuant to the transaction.

Undeveloped Acreage Expirations

During the nine months ended September 30, 2015, we had leases encompassing 1,466 net acres expire with carrying costs of $1,443,848 that had been reserved and transferred to the full cost pool subject to depletion. We estimate that approximately 400 additional net acres with carrying costs of approximately $550,563 will expire prior to the commencement of production activities on the related leased property during 2015. The carrying costs of leases we estimate will expire during the remainder of 2015 had been reserved and transferred to the full cost pool subject to depletion in 2014.