v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information

 

5.Segment Information

 

The Fund’s operations are managed through a single operating segment. As such, the Fund has only a single reportable segment that derives its revenue from the sale of oil and gas. The Fund’s chief operating decision-maker is the Executive Vice President, Chief Financial Officer and Assistant Secretary of the Fund, who reviews the Fund’s operating results to make decisions about allocating resources and assessing performance for the Fund. The profit or loss metric used to evaluate segment performance is net income; consistent with net income reported on the statement of operations.

 

The measure of segment assets is reported on the balance sheet as total assets.

 

The following table is a summary of segment information for the three and six months ended June 30, 2026 and 2025.

                    
   Three months ended June 30,   Six months ended June 30, 
   2026   2025   2026   2025 
   (in thousands) 
Revenue:                
Oil and gas revenue  $1,873   $1,229   $3,072   $2,618 
Other revenue   52    95    104    193 
Total revenue   1,925    1,324    3,176    2,811 
Less:                    
Depletion and amortization   439    545    772    999 
Lease operating expense   127    178    253    374 
Transportation and processing expense   50    52    93    103 
Insurance expense   21    22    50    48 
Workover expense   (12)   16    30    30 
Management fees to affiliate   220    234    441    468 
Other segment items   48    61    109    129 
Net income  $1,032   $216   $1,428   $660 

 

Other segment items include accretion expense related to the asset retirement obligations established for the Fund’s oil and gas properties, general and administrative expenses representing costs specifically identifiable or allocable to the Fund, such as accounting and professional fees and insurance expenses, net of dividend income related to the Fund’s investment in Delta House and interest income earned on cash and cash equivalents and salvage fund.

 

The measure of expenditures for segment assets is reported on the statements of cash flows as “Capital expenditures for oil and gas properties.” Significant noncash items represent “Depletion and amortization” and “Accretion expense” as reported on the statements of cash flows.