Oil and Gas Assets

12 Months Ended

Dec. 31, 2014

Note 5 Oil and Gas Assets:

The following table summarizes the Company’s oil and gas assets, net:

Balance – January 1, 2013	$	2,527,249
Additions		1,141,503
Depletion		(98,335	)
Impairment		(753,865	)
Abandonments		-
Dispositions		(540,000	)

Balance – December 31, 2013		2,276,552
Additions		23,377,139
Depletion		(163,095	)
Asset retirement obligations		36,238
Impairment		(3,697,924	)
Abandonments		(1,042,975	)
Dispositions		-
Balance – December 31, 2014	$	20,785,935

The Company owns support facilities and equipment which serve its oil and gas production activities. The following table summarizes the properties and equipment, net:

Balance – January 1, 2013	$	114,495
Additions		40,424
Depreciation		(16,838	)
Impairment		-

Balance – December 31, 2013		138,081
Additions		2,578,822
Depreciation		(64,193	)
Dispositions		(439	)
Balance – December 31, 2014	$	2,652,271

In July 2013, we entered into an Assignment and Conveyance Agreement (the “Agreement”) with Oasis Petroleum North America, LLC. (“Oasis”). Pursuant to the Agreement, we sold certain oil & gas property located in Roosevelt, Montana to Oasis for consideration of $215,000 cash. We recognized a gain on the sale of $215,000 in the year ended December 31, 2013.

On July 1, 2013, we entered into a Purchase & Sale Agreement (the “Agreement”) with Nebraska Alliance Resources, LLC. (“Nebraska”). Pursuant to the Agreement, we sold certain oil & gas property located in Sioux County, Colorado to Nebraska for consideration of $600,000 cash. We recognized a gain on the sale of $60,000 in the year ended December 31, 2013.

On March 14, 2014, we entered into a Purchase & Sale Agreement Option (the “Agreement”) to sell certain oil & gas property interests located in Weld, Colorado with Prime Meridian Oil & Gas, LLC (the “Purchaser”). The sale was completed on March 31, 2014. We recognized a gain on the sale of $450,000 during the year ended December 31, 2014.

During the year ended December 31, 2014, the Company abandoned certain working and net revenue interests in oil and gas property located in Callahan County, Texas and Sumner County, Kansas. In connection with the abandonment, the Company recognized losses totaling $1,042,975.

As of December 31, 2014 and 2013, the Company had $163,095 and $98,335, respectively to depletion expense.

Stratex Oil & Gas Holdings, Inc. 10-K/A