Annual report pursuant to Section 13 and 15(d)

COMMITMENTS AND CONTINGENT LIABILITIES

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COMMITMENTS AND CONTINGENT LIABILITIES
 12 Months Ended
Dec. 31, 2012
COMMITMENTS AND CONTINGENT LIABILITIES  
COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 10 – COMMITMENTS AND CONTINGENT LIABILITIES

 

Standby Letters of Credit – A commercial bank has issued standby letters of credit on behalf of the Company to the states of Texas and Kansas totaling $145,000 to allow the Company to do business in those states.  The Company intends to renew the standby letters of credit for as long as the Company does business in those states. No amounts have been drawn under the standby letters of credit.

 

Operating leases – The following table summarizes our future estimated lease payments for periods subsequent to December 31, 2012.  The leases pertain to approximately 3,000 square feet of space for our corporate headquarters in Midland, Texas, approximately 3,700 square feet of office space that we may relocate to in Midland, Texas, approximately 3,700 square feet of office space for our accounting offices in Tulsa, Oklahoma and approximately 2,000 square feet of office space for our field office in Andrews, Texas.  The Company incurred lease expense of $208,091 and $0 for the years ended December 31, 2012 and 2011, respectively.  The following table reflects the future minimum lease payments under the operating leases as of December 31, 2012.

 

Year

 Lease Obligation

 

 

 

2013

 

138,897

2014

 

117,465

2015

 

71,325

2016

 

73,185

2017

 

55,935

 

 

 

 

$

456,807