Quarterly report pursuant to Section 13 or 15(d)

6. Property and Equipment

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6. Property and Equipment
9 Months Ended
Sep. 30, 2016
Property and equipment:  
Property and Equipment

Property and equipment at September 30, 2016 and December 31, 2015, consisted of the following:

 

    September 30,     December 31,  
    2016     2015  
Property and equipment   $ 140,547     $ 139,004  
Less: Accumulated depreciation and amortization     (108,705 )     (97,857 )
Total property and equipment, net   $ 31,842     $ 41,147  

 

All of the oil and gas assets have been classified as non-current assets from discontinued operations on the balance sheet as of December 31, 2015 as the Company effectively disposed of those assets as part of the restructuring discussed in Note 4 – Debt Restructuring.

 

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

 

    Nine Months Ended  
    September 30,  
    2016     2015  
Depletion of costs for evaluated oil and gas properties (1)   $ 3,114,347     $ 7,346,356  
Depreciation and amortization of other property and equipment     10,848       12,286  
Total depreciation, amortization and depletion   $ 3,125,195     $ 7,358,642  

(1)Presented as an element 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 non-cash ceiling test impairments of $5,219,000 and $52,634,000 for the nine months ended September 30, 2016 and 2015, respectively. The expense associated with the impairments is presented as part of loss from discontinued operations, net of income taxes. The impairment charges affected our reported net income but did not reduce our cash flow.