Quarterly report pursuant to Section 13 or 15(d)

7. Oil and Gas Properties

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7. Oil and Gas Properties
9 Months Ended
Sep. 30, 2016
Extractive Industries [Abstract]  
Oil and Gas Properties

The following table summarizes gross and net productive oil wells by state at June 21, 2016 (prior to their disposition through our debt restructuring) and September 30, 2015. 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.

 

    June 21, 2016     September 30, 2015  
    Gross     Net     Gross     Net  
North Dakota     352       10.64       336       10.51  
Montana     5       0.37       5       0.37  
Total     357       11.01       341       10.88  

 

The Company’s oil and gas properties consisted of all acreage acquisition costs (including cash expenditures and the value of stock consideration), drilling costs and other associated capitalized costs. As of June 21, 2016 (prior to their disposition through our debt restructuring) and September 30, 2015, our principal oil and gas assets included approximately 7,016 and 8,509 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, 2016 and 2015, respectively:

 

    Nine Months Ended  
    September 30,  
    2016     2015  
Purchases of oil and gas properties and development costs for cash   $ 4,858,134     $ 17,968,423  
Purchase of oil and gas properties accrued at period-end     3,155,016       7,359,282  
Purchase of oil and gas properties accrued at beginning of period (prior to disposition)     (6,899,503 )     (9,364,796 )
Capitalized asset retirement costs     4,737       42,391  
Total purchase and development costs, oil and gas properties   $ 1,118,384     $ 16,005,300  

 

2016 Acquisitions

During the nine months ended September 30, 2016, we did not purchase any oil and gas properties.

 

2016 Divestitures

During the nine months ended September 30, 2016, we sold approximately 14 net leasehold acres oil and gas properties for total proceeds of $94,628. No gain or loss was recorded pursuant to the sales.

 

2016 Disposition in Debt Restructuring

On June 21, 2016 we disposed of all of our oil gas properties, with net carrying costs of $24,498,638, as part of our debt restructuring as outlined in Note 4 – Debt Restructuring.

 

2015 Acquisitions

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

 

2015 Divestitures

During the nine months ended September 30, 2015, we sold 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.

 

Undeveloped Acreage Expirations

During the nine months ended September 30, 2016, we had leases encompassing 1,079 net acres expire with carrying costs of $650,816 that had been reserved and transferred to the full cost pool subject to depletion in 2015.