Property and Equipment

3 Months Ended

Mar. 31, 2016

5. Property and Equipment

Property and equipment include furniture and fixtures, computer equipment and software and transportation equipment:

	March 31,			December 31,
	2016			2015

Property and equipment, gross	$	52,306		$	346,199
Less: Accumulated depreciation, depletion, amortization and impairment		(27,218	)		(213,691	)
Property and Equipment, net	$	25,088		$	132,508

Depreciation expense was $3,141 and $44,816 for the three months ended March 31, 2016 and 2015, respectively.

Effective January 1, 2016 the Company transferred certain of its fixed assets to a third party management company controlled by one of its directors in return for the partial, non-cash settlement of certain indebtedness in the amount of $52,000. The net book value of the assets was $104,280 and they were appraised at under $50,000 in current conditions. The Company incurred a loss on disposal of fixed assets of $52,280 which is accounted for in general and administrative expenses for the period. The Company currently leases this equipment for its use from that third party management company, inclusive of utilities and other office expenses for $12,500 per month.

ARABELLA EXPLORATION, INC. 10-Q