Salt Water Disposal Facility

9 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

4.	SALT WATER DISPOSAL FACILITY

On April 27, 2011, Imperial Oil entered into a Purchase and Sale Agreement to purchase approximately 42 acres of land, a related salt water disposal facility (”SWDF”) consisting of surface equipment, and a wellbore and associated permits, located in Wise County, Texas. The total purchase price of $500,000 was made through a $50,000 signing payment, plus the execution of a Convertible Promissory Note totaling $450,000. The note is secured over the SWDF assets, and was convertible subsequent to a six month waiting period.

Green Tide obtained a Convertible Promissory Note on June 17, 2011, for amounts up to $1,200,000 to rework and operate the SWDF. The notes provides that Green Tide will pay interest at a rate of twenty percent per annum with principal and interest paid monthly in amounts equal to eighty percent of the net cash flow generated by the operations of the SWDF, until such time that the cumulative distribution equals the principal amount loaned. The lender may convert at its option, the unpaid balance of the note into limited partner interests in Green Tide of up to 50% of the equity until the opening of the facility.

On March 6, 2012, the Company obtained an additional c note for $125,000 for clean-up and rebuilding of the facility, $50,000 of which was received prior to March 31, 2012. The remaining $75,000 was received during the first quarter of the fiscal year ended March 31, 2013.

The Company deepened the well to a depth approved by the Texas Railroad Commission. As of December 31, 2012, the Company had incurred $2,213,064 in capitalized costs related to the acquisition of the facility and deepening of the well. The well was deepened and completed and the SWDF was set to open November 9, 2011 when the facility was struck by lightning on November 8, 2011. The Company has completed clean-up of the site and has purchased and largely installed the replacement tanks and equipment. The Company commenced operation of the facility during the quarter ended December 31, 2012.

The Company’s net investment as of December 31, 2012 is as follows:

	December 31, 2012
Purchase of salt water facility	$	500,000
Repairs and improvements		1,713,064
Total		2,213,064

Accumulated depreciation		(262,421	)
Total property and equipment related to salt water facility	$	1,950,643

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details

Imperial Resources, Inc. 10-Q/A