Quarterly report pursuant to Section 13 or 15(d)

6. DISCONTINUED OPERATIONS AND SALE OF EMIR OIL

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6. DISCONTINUED OPERATIONS AND SALE OF EMIR OIL
 9 Months Ended
Dec. 31, 2012
Notes to Financial Statements  
DISCONTINUED OPERATIONS AND SALE OF EMIR OIL

NOTE 6 – DISCONTINUED OPERATIONSAND SALE OF EMIR OIL

 

Emir Oil LLP

 

On September 19, 2011 the Company completed the sale of all of its interests in Emir Oil LLP to a subsidiary of MIE Holdings Corporation.  In anticipation of the Sale, all operations of Emir Oil have been reclassified as discontinued operations.

 

The sale of Emir Oil was valued at $170 million in cash, net of $10.4 million in purchase adjustments. In accordance with the Purchase Agreement, $36 million in cash was placed in escrow for one year for indemnification purposes. On September 20, 2012 the escrow period expired and the entire $36 million held in escrow was released to the Company without any depletion.

 

The components of discontinued operations for three and nine months ended December 31, 2012 and 2011 were as follows:

 

  Three months ended   Nine months ended
  December 31, 2012   December 31, 2011   December 31, 2012   December 31, 2011
                       
Revenue $                    -   $                      -   $                   -   $  41,633,064
Operating expenses   -     -     -     29,914,188
Other income   -     -     -     (180,838)
                       
Discontinued operations $                   -   $                     -   $                   -   $  11,899,714