Louisiana
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72-0144530
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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700 Pujo Street, Suite 200
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Lake Charles, LA
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70601
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(Address of principal executive offices)
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(Zip Code)
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(337) 493-2399
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(Registrant’s telephone number)
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Large accelerated filer o | Accelerated filer o | ||
Non-accelerated filer o | Smaller reporting company x |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
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Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
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1,942,495 |
Page | ||||
Part I. | Financial Information | |||
Item 1. |
Financial Statements
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a. |
Balance Sheets as of September 30, 2012 and December 31, 2011 (Unaudited)
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1
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b. |
Statements of Income and Comprehensive Income for the quarter and nine months ended September 30, 2012 and 2011 (Unaudited)
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2
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c. |
Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2012 and 2011 (Unaudited)
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3
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d. |
Statements of Cash Flows for the nine months ended September 30, 2012 and 2011 (Unaudited)
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4
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e. |
Notes to Financial Statements (Unaudited)
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5-6
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
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7-8
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Item 4. |
Controls and Procedures
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8
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Part II. | Other Information | |||
Item 6. |
Exhibits
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9
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Signature
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10
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2012
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2011 | |||||||
Assets
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||||||||
Current Assets:
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||||||||
Cash and cash equivalents
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$ | 5,109,103 | $ | 4,124,908 | ||||
Certificates of deposit
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741,384 | 495,625 | ||||||
Accounts receivable
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300,847 | 276,217 | ||||||
Prepaid expense and other assets
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93,774 | 20,828 | ||||||
Total current assets
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6,245,108 | 4,917,578 | ||||||
Certificates of deposit
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-- | 480,000 | ||||||
Property and equipment:
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||||||||
Building and equipment less accumulated depreciation of $75,833 and $70,818, respectively
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14,599 | 19,614 | ||||||
Timber less accumulated depletion of $694,929 and $691,436, respectively
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1,241,425 | 1,146,743 | ||||||
Land
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4,434,081 | 4,431,034 | ||||||
Total property and equipment, net
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5,690,105 | 5,597,391 | ||||||
Total assets
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$ | 11,935,213 | $ | 10,994,969 | ||||
Liabilities and Stockholders’ Equity
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||||||||
Current Liabilities:
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||||||||
Trade payables and accrued expenses
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$ | 98,562 | $ | 58,662 | ||||
Income tax payable:
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||||||||
Current
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-- | 87,419 | ||||||
Deferred
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5,153 | 5,153 | ||||||
Total current liabilities
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103,715 | 151,234 | ||||||
Deferred income tax payable
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181,818 | 181,818 | ||||||
Total liabilities
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285,533 | 333,052 | ||||||
Stockholders’ Equity:
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||||||||
Common stock, no par value: 3,000,000 shares authorized; 2,100,000 shares issued
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72,256 | 72,256 | ||||||
Retained earnings
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11,952,940 | 10,965,177 | ||||||
Accumulated other comprehensive income
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-- | -- | ||||||
Less cost of treasury stock (157,505 shares)
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(375,516 | ) | (375,516 | ) | ||||
Total stockholders’ equity
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11,649,680 | 10,661,917 | ||||||
Total liabilities and stockholders’ equity
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$ | 11,935,213 | $ | 10,994,969 |
Quarter Ended September 30,
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Nine Months Ended September 30, | |||||||||||||||
2012
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2011
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2012
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2011
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Revenues:
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Oil and gas
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$ | 676,782 | $ | 565,573 | $ | 2,102,106 | $ | 1,200,186 | ||||||||
Agriculture
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17,379 | 22,124 | 327,422 | 46,588 | ||||||||||||
Timber
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32,499 | 83,193 | 37,504 | 86,632 | ||||||||||||
Total revenues
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726,660 | 670,890 | 2,467,032 | 1,333,406 | ||||||||||||
Costs and Expenses:
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||||||||||||||||
Oil and gas production
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60,672 | 38,794 | 183,651 | 90,208 | ||||||||||||
Agriculture
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2,098 | 2,258 | 3,952 | 5,220 | ||||||||||||
Timber
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13,717 | 17,778 | 27,943 | 32,414 | ||||||||||||
General and administrative
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127,101 | 99,712 | 344,070 | 319,387 | ||||||||||||
Depreciation and depletion
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4,777 | 30,210 | 8,507 | 51,507 | ||||||||||||
Total cost and expenses
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208,365 | 188,752 | 568,123 | 498,736 | ||||||||||||
Income from operations
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518,295 | 482,138 | 1,898,909 | 834,670 | ||||||||||||
Other Income / (Expense):
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||||||||||||||||
Interest income
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4,712 | 9,817 | 10,010 | 30,286 | ||||||||||||
Dividend income
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-- | 3,854 | -- | 13,381 | ||||||||||||
Gain/(Loss) on securities available-for-sale
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10,688 | 10,688 | ||||||||||||||
Gain on sale of land and other assets
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-- | -- | 124,000 | 306 | ||||||||||||
Net other income / (expense)
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4,712 | 24,359 | 134,010 | 54,661 | ||||||||||||
Income before income taxes
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523,007 | 506,497 | 2,032,919 | 889,331 | ||||||||||||
Federal and state income taxes:
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Current
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162,848 | 160,247 | 648,173 | 259,779 | ||||||||||||
Deferred
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3,003 | 863 | (2,828 | ) | (11,565 | ) | ||||||||||
Total income taxes
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165,851 | 161,110 | 645,345 | 248,214 | ||||||||||||
Net Income
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357,156 | $ | 345,387 | 1,387,574 | 641,117 | |||||||||||
Other Comprehensive Income, Net of Taxes:
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Change in unrealized net holding gains occurring during period, net of taxes of $6,042 and $3,721, respectively for 2011
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-- | (9,062 | ) | -- | (5,581 | ) | ||||||||||
Other comprehensive income
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-- | (9,062 | -- | (5,581 | ) | |||||||||||
Comprehensive Income
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$ | 357,156 | $ | 336,325 | $ | 1,387,574 | $ | 635,536 | ||||||||
Per Common Stock (1,942,495 shares):
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Net Income
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$ | 0.18 | $ | 0.18 | $ | 0.71 | $ | 0.33 | ||||||||
Dividends
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$ | 0.07 | $ | 0.07 | $ | 0.21 | $ | 0.21 |
Total
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Retained
Earnings
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Accumulated
Other
Comprehensive
Income
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Capital
Stock
Issued
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Treasury
Stock
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||||||||||||||||
December 31, 2011 Balance
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$ | 10,661,917 | $ | 10,965,177 | $ | -- | $ | 72,256 | $ | 375,516 | ||||||||||
Net income
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1,387,574 | 1,387,574 | -- | -- | -- | |||||||||||||||
Other comprehensive income
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-- | -- | -- | -- | -- | |||||||||||||||
Dividends
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(407,924 | ) | (407,924 | ) | -- | -- | -- | |||||||||||||
Dividend reversion
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8,113 | 8,113 | -- | -- | -- | |||||||||||||||
September 30, 2012 Balance
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$ | 11,649,680 | $ | 11,952,940 | $ | -- | $ | 72,256 | $ | 375,516 |
Total
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Retained
Earnings
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Accumulated
Other
Comprehensive
Income
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Capital
Stock
Issued
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Treasury
Stock
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||||||||||||||||
December 31, 2010 Balance
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$ | 10,246,245 | $ | 10,543,924 | $ | 5,581 | $ | 72,256 | $ | 375,516 | ||||||||||
Net income
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641,117 | 641,117 | -- | -- | -- | |||||||||||||||
Other comprehensive income
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(5,581 | ) | -- | (5,581 | ) | -- | -- | |||||||||||||
Dividends
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(407,924 | ) | (407,924 | ) | -- | -- | -- | |||||||||||||
Dividend reversion
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13,375 | 13,375 | -- | -- | -- | |||||||||||||||
September 30, 2011 Balance
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$ | 10,487,232 | $ | 10,790,492 | $ | -- | $ | 72,256 | $ | 375,516 |
2012
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2011
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Cash Flows From Operating Activities:
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Net Income
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$ | 1,387,574 | $ | 641,117 | ||||
Less non-cash (income) expenses included in net income:
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Depreciation, depletion and amortization
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8,507 | 51,507 | ||||||
Deferred income tax expense
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(2,828 | ) | (11,565 | ) | ||||
Less non-operating activities:
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Gain from sale of land and other assets
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(124,000 | ) | (306 | ) | ||||
Change in operating assets and liabilities:
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(Increase) decrease in current assets
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(94,748 | ) | 7,724 | |||||
Increase (decrease) in current liabilities
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(47,519 | ) | 11,551 | |||||
Net cash provided from operating activities
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1,126,986 | 700,028 | ||||||
Cash Flows From Investing Activities:
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Certificates of deposit:
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Maturity proceeds
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495,625 | -- | ||||||
Purchases
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(261,384 | ) | (725,625 | ) | ||||
Securities:
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Sales proceeds
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787,841 | |||||||
Purchases
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-- | (12,560 | ) | |||||
Land, timber, equipment and other assets:
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Sales proceeds
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159,000 | 167 | ||||||
Purchases
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(136,221 | ) | (604,483 | ) | ||||
Proceeds held in 1031 trust account
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-- | -- | ||||||
Net cash provided from (used in) investing activities
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257,020 | (554,660 | ) | |||||
Cash Flows From Financing Activities:
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Dividends paid, net of reversion
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(399,811 | ) | (394,549 | ) | ||||
Net cash used in financing activities
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(399,811 | ) | (394,549 | ) | ||||
Net increase (decrease) in cash and cash equivalents
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984,195 | (249,181 | ) | |||||
Cash and cash equivalents:
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Beginning
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4,124,908 | 5,182,316 | ||||||
Ending
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$ | 5,109,103 | $ | 4,933,135 | ||||
Supplemental disclosures of cash flow information:
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Cash payments for:
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Interest
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$ | -- | $ | -- | ||||
Income taxes
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$ | 781,641 | $ | 139,660 | ||||
Supplemental schedule of non-cash investing and financing activities:
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Net change in recognized and unrecognized unrealized gains (losses) on available-for-sale securities
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$ | -- | $ | (9,302 | ) |
September 30, 2012
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Current
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Non-Current
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Total
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Fair Value
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Unrealized
Gain/(Loss) |
Fair Value
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Unrealized
Gain/(Loss) |
Fair Value
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Unrealized
Gain/(Loss) |
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Certificate of Deposits
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$ | 741,384 | -- | -- | -- | 741,384 | -- | |||||||||||||||||
Mutual Funds
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-- | -- | -- | -- | -- | -- | ||||||||||||||||||
Equity Securities
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-- | -- | -- | -- | -- | -- | ||||||||||||||||||
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Total
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$ | 741,384 | -- | -- | -- | 741,384 | -- |
September 30, 2012
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Current
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Non-Current
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Total
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Fair Value
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Unrealized
Gain/(Loss) |
Fair Value
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Unrealized
Gain/(Loss) |
Fair Value
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Unrealized
Gain/(Loss) |
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Certificate of Deposits
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$ | 735,625 | -- | 480,000 | -- | 1,215,625 | -- | |||||||||||||||||
Mutual Funds
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-- | -- | -- | -- | -- | -- | ||||||||||||||||||
Equity Securities
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-- | -- | -- | -- | -- | -- | ||||||||||||||||||
Total
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$ | 735,625 | -- | 480,000 | -- | 1,215,625 | -- |
September 30, 2011
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Quoted Prices in
Active Markets for |
Significant
Other |
Significant
Unobservable |
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Certificate of Deposit
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$ | 741,384 | -- | -- | ||||||||
Mutual Funds
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-- | -- | -- | |||||||||
Equity Securities
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$ | -- | -- | -- |
September 30, 2011
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Quoted Prices in
Active Markets for |
Significant
Other |
Significant
Unobservable |
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Certificate of Deposit
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$ | 1,215,625 | -- | -- | ||||||||
Mutual Funds
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-- | -- | -- | |||||||||
Equity Securities
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$ | -- | -- | -- |
Nine Months
Ended
09/30/12
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Nine Months
Ended
09/30/11
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Net gas produced (MCF)
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60,205 | 48,372 | ||||||
Average gas sales price (per MCF)(1)
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$ | 3.34 | $ | 5.05 | ||||
Net oil produced (Bbl)(2)
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15,074 | 7,279 | ||||||
Average oil sales price (per Bbl)(1,2)
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$ | 106.20 | $ | 103.15 |
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3.1
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Restated/Articles of Incorporation of the Registrant are incorporated by reference to Exhibit (3)-1 to Form 10 filed April 29, 1981.
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3.2
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Amendment to Articles of Incorporation of the Registrant is incorporated by reference to Exhibit (3.2) to Form 10-K for year ended December 31, 2003.
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3.3
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By-Laws of the Registrant filed herewith
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10
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Contract to Purchase and Sell approximately 3,495 acres in Cameron Parish, Louisiana effective July 3, 2007 is incorporated by reference to Exhibit (10) to Form 10-QSB filed August 13, 2007.
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31.1
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Certification of Joseph K. Cooper, President and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.
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31.2
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Certification of Brian R. Jones, Treasurer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.
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32
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Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith.
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101.INS** | XBRL Instance | |
101.SCH** | XBRL Taxonomy Extension Schema | |
101.CAL** | XBRL Taxonomy Extension Calculation | |
101.DEF** | XBRL Taxonomy Extension Definition | |
101.LAB** | XBRL Taxonomy Extension Labels | |
101.PRE** | XBRL Taxonomy Extension Presentation |
CKX Lands, Inc.
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Date: November 8, 2012
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/s/ Joseph K. Cooper | |
Joseph K. Cooper
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President and Chief Executive Officer
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Date: November 8, 2012
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/s/ Brian R. Jones | |
Brian R. Jones
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Treasurer and Chief Financial Officer
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