At March 31, 2012 and December 31, 2011, total assets were $14,400 and $14,826, respectively. We had cash of $6,000 and $6,426 at March 31, 2012 and December 31, 2011, respectively. At March 31, 2012 and December 31, 2011, long-term assets consisted of oil & gas properties - unproved of $8,400.
At March 31, 2012, total liabilities were $139,535, consisting of $13,404 in accounts payable, $6,965 in bank overdrafts and $119,166 in accounts payable to related parties. At December 31, 2011, total liabilities were $119,854, consisting of $11,156 in accounts payable, and $108,698 in accounts payable to related parties.
We had negative cash flow from operations of $17,427 during the three months ended March 31, 2012 as a result of a net loss of $19,675 and an increase in accounts payable of $2,248. We had negative cash flow from operations of $15,655 during the three months ended March 31, 2011 as a result of a net loss of $37,865, offset by other non-cash compensation of $19,880, and an increase in accounts payable of $2,330.
For the three months ended March 31, 2012, cash provided financing activities was $17,001, consisting of $10,468 in loans from related parties, $6,965 in bank overdrafts offset by $432 for the repurchase of 4,000 shares of Brenham's common stock for treasury. Cash provided by financing activities for the three months ended March 31, 2011 was $15,948, consisting of loans from related parties.
As a result of our very limited cash resources, our executive officers have not received any cash compensation since inception through the three months ended March 31, 2012. However, the Company issued restricted shares of Common Stock to its key executive officer employees for services as executive officers. We have not had any discussions nor do we have any plans for future any cash compensation arrangements with our executive officers. If and when we experience a positive cash flow from operations and have sufficient cash reserves to fund our plan of operation, we may consider compensating our executive officers. We will continue to evaluate our financial condition and our liquidity and capital resources prior to entering into any compensation arrangements with our executive officers.
We are an exploration stage company and will continue to be so until commencement of substantial production from our future oil and gas properties, none of which have been identified to date. Future revenue will depend upon successful selection of future prospects, drilling results, additional and timely capital funding at terms and conditions satisfactory to us, of which there can be no assurance, and access to suitable infrastructure. Further, we will not be able to commence our exploration program until we have entered into certain agreements with government agencies of respective countries and/or other oil and gas companies. Until then our primary sources of liquidity are expected to be net proceeds from future offerings and funds from future private and public equity placements and debt funding.
In July 2011, we purchased an oil field with 20 oil wells situated on approximately 700 acres in the Permian Basin near Abilene, Texas. We issued 2,000,000 shares of Common Stock with an additional 2,000,000 shares to be issued contingent upon realization of certain production targets in 2012. The oil field contains estimated probable reserves of approximately 1.4 million barrels of oil. The net present value (10% discount rate after development and operating costs) is approximately $20 million. On March 8, 2012, this agreement was rescinded and replaced with an agreement that in consideration for the Brenham share issuance, Brenham has a 2.5% overriding royalty interest in all of the leases associated with this property and any properties acquired or renewed in the future within a ten-mile radius. In addition, the contingency to issue additional shares was removed.
We expect to incur substantial expenses and generate significant operating losses as we pursue our efforts to identify prospects, develop those prospects and as we:
purchase and analyze seismic data in order to identify future prospects;
opportunistically invest in additional oil and gas leases and concession licenses;
develop our discoveries which we determine to be commercially viable; and
incur expenses related to operating as a public company and compliance with regulatory requirements.
Our future financial condition and liquidity will be impacted by, among other factors, the success of selection of prospects, our future exploration and appraisal drilling program, the number of commercially viable oil and gas discoveries made and the quantities of oil and gas discovered, the speed with which we can bring such discoveries to production, and the actual cost of exploration, appraisal and development of our prospects.
Until such time as we can identify specific prospects, we cannot determine with any certainty the amount of capital that we will be required to raise to fund each potential prospect. To date, we have not begun negotiations with any investment bank, financial institution or other source of funding for the purpose of raising either equity or debt capital, nor have we negotiated with any potential joint venture partner for the purpose of pursuing any potential prospect. Only when and if we identify prospects and seek to enter into contracts, licenses or other arrangements to pursue such prospects will we be able to determine the amount of funding that will be required for each such prospect. We have no arrangements with our executive officers or principal shareholders to provide any funding and any funding that they may be requested to provide may be limited.
Additional funding may not be available to us on acceptable terms or at all. In addition, the terms of any financing may adversely affect the holdings or the rights of our shareholders. For example, if we raise additional funds by issuing additional equity securities, further dilution to our existing shareholders will result. If we are unable to obtain funding on a timely basis, we may be required to significantly curtail one or more of our exploration and appraisal drilling programs. We also could be required to seek funds through arrangements with collaborators or others that may require us to relinquish rights to some of our prospects which we would otherwise develop on our own, or with a majority working interest.
In the future, we may be party to the following contractual arrangements, which will subject us to further contractual obligations:
contracts for the lease of drilling rigs;
contracts for the provision of production facilities;
infrastructure construction contracts; and
long term oil and gas property lease arrangements.