Question-and-Answer Session
Operator
[Operator Instructions] Our first question comes from [Michael Shafranski] from Onyx Capital Management.
[Michael Shafranski] - Onyx Capital Management
A couple questions on your balance sheet which I’m not really understanding completely. First, the undeveloped mining claims, you talk about a few of the mining claims you have in California that’s $21 million, is that actually a cash path that you made this year.
Keith Larsen
I’ve got Scott Lorimer our CFO and VP of Finance and I’ll direct the question to him. I think he can give you clarification there.
Scott Lorimer
What happened there was when we merged with Crested Corp. we issued the shares all of the assets were already on the balance sheet of U.S. Energy on a consolidated basis with Crested. When we issued the shares the actual value of the shares plus the tax affected portion of that transaction went on the balance sheet as an addition to undeveloped mining claims representing the minority interest shareholders of Cresteds ownership of Mt. Emmons. This is, of course, subject to PHAS 141 which we’ve complied with but it is not a cash addition it is the issuance of the 2.8 million shares of U.S. Energy for the minority interest in Crested plus the affected tax.
Keith Larsen
I think it’s fair to say, Scott, that’s nothing to do with the Sutter Gold.
Scott Lorimer
There is about $800,000 in there of Sutter Gold which is an historical balance that has come forward from the Sutter Gold property on a consolidated basis. The majority of that $21.8 million that you see on the balance sheet is the purchase of the minority interest of the credit to shareholders of Lucky Jack.
Keith Larsen
Does that give you some clarification?
[Michael Shafranski] - Onyx Capital Management
Yes, it does. Another question was on the undeveloped and oil and gas properties up $2.9 million. I did notice that you actually spent that. Are those proved reserves or are you just sort of looking over there.
Keith Larsen
No, it’s not proved reserves this is exploration until we drill. That’s our investment in the oil and gas prospect on the Gulf coast.
Operator
Our next question comes from Sandy Wyman from Gilford Securities.
Sandy Wyman – Gilford Securities
I have two questions as well. Number one, could you go a little bit further in talking about Sutter Gold and where you stand on that? I know you’ve been looking for a joint venture and/or try to sell is or whatever and have indicated that you’d give us some kind of a resource update drilling program wise and so forth. If you do a lot of investigative work and find some of that information on their website or up on the Toronto Exchange but we don’t seem to ever get any news about it down here. Could you go into that a little bit further?
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