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6. Property and Equipment
 3 Months Ended
Mar. 31, 2017
Property and equipment:  
Property and Equipment

Property and equipment at March 31, 2017 and December 31, 2016, consisted of the following:

 

    March 31,     December 31,  
    2017     2016  
Property and equipment   $ 128,155     $ 140,547  
Less: Accumulated depreciation and amortization     (109,710 )     (112,128 )
Total property and equipment, net   $ 18,445     $ 28,419  

 

During the three months ended March 31, 2017 we sold certain assets with a net book value of $6,874 for proceeds of $2,160, resulting in a loss on disposal of $4,714.

 

The following table shows depreciation, depletion, and amortization expense by type of asset:

 

    Three Months Ended  
    March 31,  
    2017     2016  
Depletion of costs for evaluated oil and gas properties (1)   $ –     $ 2,022,504  
Depreciation and amortization of other property and equipment     3,100       3,885  
Total depreciation, amortization and depletion   $ 3,100     $ 2,026,389  

(1)Presented as a component of loss from discontinued operations, net of income taxes.

 

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 2016, we recorded a non-cash ceiling test impairment of $5,219,000 for the three months ended March 31, 2016. The expense associated with the impairment is presented as a component of loss from discontinued operations, net of income taxes as described in Note 3 – Debt Restructuring. The impairment charge affected our reported net income but did not reduce our cash flow.