Delaware
|
87-0267438
|
|
(state or other jurisdiction of Incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
8000 E. Maplewood Ave., Suite 130,
Greenwood Village, CO
|
80111
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Large Accelerated Filer ☐
|
Accelerated Filer ☐
|
Non-accelerated Filer ☐
|
Smaller Reporting Company ☒
|
(Do not check if a Smaller Reporting Company)
|
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
|
PART I
|
Page
|
||
Item 1.
|
6
|
||
Item 1A.
|
11
|
||
Item 1B.
|
18
|
||
Item 2.
|
18
|
||
Item 3.
|
21
|
||
Item 4.
|
22
|
||
PART II
|
|||
Item 5.
|
22
|
||
Item 6.
|
23
|
||
Item 7.
|
23
|
||
Item 7A.
|
28
|
||
Item 8.
|
28
|
||
Item 9.
|
28
|
||
Item 9A.
|
28
|
||
Item 9B.
|
29
|
||
PART III
|
|||
Item 10.
|
30
|
||
Item 11.
|
34
|
||
Item 12.
|
37
|
||
Item 13.
|
38
|
||
Item 14.
|
41
|
||
PART IV
|
Item 15.
|
42
|
|
44
|
A.
|
Kansas Production
|
B.
|
Kansas Ten Well Drilling Program
|
Barrels Attributable to
Party’s Interest
|
Undiscounted Future Net Cash
Flows Attributable to
Party’s Interest
|
Present Value of Future Net Cash
Flows Discounted at 10%
Attributable to Party’s Interest
|
||||||||||
MBbl
|
(in thousands)
|
(in thousands)
|
||||||||||
Tengasco
|
75.3
|
$
|
1,823
|
$
|
853
|
|||||||
Hoactzin
|
13.3
|
$
|
322
|
$
|
150
|
A.
|
Oil, Gas, and Pipeline Assets
|
B.
|
Manufactured Methane Facilities
|
Area
|
Gross
Production
MBOE
|
Average Net
Revenue
Interest
|
Percentage
of Total Oil
Production
|
|||||||||
Rooks County, KS
|
78.6
|
0.820490
|
64.6
|
%
|
||||||||
Trego County, KS
|
17.7
|
0.804843
|
14.5
|
%
|
||||||||
Ellis County, KS
|
6.3
|
0.799657
|
5.2
|
%
|
||||||||
Barton County, KS
|
5.9
|
0.816855
|
4.8
|
%
|
||||||||
Graham County, KS
|
3.8
|
0.858440
|
3.1
|
%
|
||||||||
Russell County, KS
|
3.1
|
0.856006
|
2.6
|
%
|
||||||||
Rush County, KS
|
2.2
|
0.860696
|
1.8
|
%
|
||||||||
Osborne County, KS
|
1.6
|
0.586787
|
1.3
|
%
|
||||||||
Pawnee County, KS
|
1.4
|
0.799977
|
1.2
|
%
|
||||||||
Stafford County, KS
|
1.1
|
0.716046
|
0.9
|
%
|
||||||||
Total
|
121.7
|
100.0
|
%
|
Area
|
Proved
Developed
|
Proved
Undeveloped
|
Proved
Reserves
|
% of
Total
|
||||||||||||
Rooks County, KS
|
$
|
5,510
|
$
|
23
|
$
|
5,533
|
67.7
|
%
|
||||||||
Trego County, KS
|
1,299
|
—
|
1,299
|
15.9
|
%
|
|||||||||||
Barton County, KS
|
527
|
—
|
527
|
6.5
|
%
|
|||||||||||
Graham County, KS
|
464
|
—
|
464
|
5.7
|
%
|
|||||||||||
Rush County, KS
|
144
|
—
|
144
|
1.8
|
%
|
|||||||||||
Ellis County, KS
|
105
|
—
|
105
|
1.3
|
%
|
|||||||||||
Russell County, KS
|
58
|
—
|
58
|
0.7
|
%
|
|||||||||||
Osborne County, KS
|
19
|
—
|
19
|
0.2
|
%
|
|||||||||||
Pawnee County, KS
|
17
|
—
|
17
|
0.2
|
%
|
|||||||||||
Stafford County, KS
|
4
|
—
|
4
|
—
|
%
|
|||||||||||
Ness County, KS
|
—
|
—
|
—
|
—
|
%
|
|||||||||||
Logan County, KS
|
—
|
—
|
—
|
—
|
%
|
|||||||||||
Total
|
$
|
8,147
|
$
|
23
|
$
|
8,170
|
100.0
|
%
|
Producing
|
Non Producing
|
Undeveloped
|
Total
|
|||||||||||||
Oil (MBbl)
|
774
|
58
|
38
|
870
|
||||||||||||
Future net cash flows before income taxes discounted at 10% (in thousands)
|
$
|
7,065
|
$
|
1,082
|
$
|
23
|
$
|
8,170
|
Producing
|
Non-producing
|
Undeveloped
|
Total
|
|||||||||||||
Oil (MBbl)
|
690
|
40
|
—
|
730
|
||||||||||||
Future net cash flows before income taxes discounted at 10% (in thousands)
|
$
|
5,397
|
$
|
418
|
$
|
—
|
$
|
5,815
|
Kansas
|
||||||||||||||||||||||||||||
Gross
Production
|
Net
Production
|
Cost of Net
Production
|
Average Sales Price
|
|||||||||||||||||||||||||
Years Ended
December 31,
|
Oil
(MBbl)
|
Gas
(MMcf)
|
Oil
(MBbl)
|
Gas
(MMcf)
|
(Per BOE)
|
Oil
(Bbl)
|
Gas
(Per Mcf)
|
|||||||||||||||||||||
2017
|
122
|
—
|
99
|
—
|
$
|
29.77
|
$
|
45.43
|
—
|
|||||||||||||||||||
2016
|
132
|
—
|
107
|
—
|
$
|
27.82
|
$
|
37.53
|
—
|
|||||||||||||||||||
2015
|
158
|
—
|
129
|
—
|
$
|
25.67
|
$
|
42.66
|
—
|
For Years Ending December 31,
|
||||||||||||||||||||||||
2017
|
2016
|
2015
|
||||||||||||||||||||||
Gross
|
Net
|
Gross
|
Net
|
Gross
|
Net
|
|||||||||||||||||||
Kansas
|
||||||||||||||||||||||||
Productive Wells
|
1
|
0.15
|
1
|
0.25
|
—
|
—
|
||||||||||||||||||
Dry Holes
|
—
|
—
|
—
|
—
|
1
|
1
|
Developed
|
Undeveloped
|
Total
|
||||||||||||||||||||||
Gross Acres
|
Net Acres
|
Gross Acres
|
Net Acres
|
Gross Acres
|
Net Acres
|
|||||||||||||||||||
Kansas
|
13,860
|
11,440
|
160
|
140
|
14,020
|
11,580
|
2018
|
Total
|
|||||||
Gross Acres
|
160
|
160
|
||||||
Net Acres
|
140
|
140
|
ITEM 5. |
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
For the Quarters Ending
|
High
|
Low
|
||||||
March 31, 2017
|
$
|
0.76
|
$
|
0.37
|
||||
June 30, 2017
|
$
|
1.56
|
$
|
0.39
|
||||
September 30, 2017
|
$
|
0.83
|
$
|
0.55
|
||||
December 31, 2017
|
$
|
1.19
|
$
|
0.57
|
||||
March 31, 2016
|
$
|
1.60
|
$
|
1.00
|
||||
June 30, 2016
|
$
|
1.60
|
$
|
0.60
|
||||
September 30, 2016
|
$
|
1.59
|
$
|
0.67
|
||||
December 31, 2016
|
$
|
1.25
|
$
|
0.52
|
Contractual Obligations
|
Total
|
2018
|
2019
|
2020
|
||||||||||||
Long-Term Debt Obligations1
|
$
|
90
|
$
|
41
|
$
|
49
|
$
|
—
|
||||||||
Operating Lease Obligations
|
129
|
48
|
48
|
33
|
||||||||||||
Estimated Interest on Long-Term Debt Obligations
|
14
|
9
|
4
|
1
|
||||||||||||
Total
|
$
|
233
|
$
|
98
|
$
|
101
|
$
|
34
|
(1) |
The credit facility with Prosperity Bank had a zero balance at December 31, 2017.
|
· |
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company’s assets;
|
· |
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of the Company’s management and directors; and
|
· |
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the Company’s financial statements.
|
NAME
|
POSITIONS HELD
|
DATE OF INITIAL
ELECTION OR
DESIGNATION
|
AGE
|
|||
Matthew K. Behrent
|
Director
|
3/27/2007
|
47
|
|||
Peter E. Salas
|
Director;
|
10/8/2002
|
63
|
|||
Chairman of the Board
|
10/21/2004
|
|||||
Richard M. Thon
|
Director
|
11/22/2013
|
62
|
|||
Michael J. Rugen
|
Chief Financial Officer;
|
9/28/2009
|
57
|
|||
Chief Executive Officer (interim)
|
6/24/2013
|
|||||
Cary V. Sorensen
|
Vice-President; General Counsel; Secretary
|
7/9/1999
|
69
|
(1) |
Filed a petition under the federal bankruptcy laws or any state insolvency law, nor had a receiver, fiscal agent or similar officer appointed by a court for the business or property of such person, or any partnership in which he or she was a general partner at or within two years before the time of such filing, or any corporation or business association of which he or she was an executive officer at or within two years before the time of such filing; provided however that the Company’s Chief Financial Officer Michael J. Rugen during 2007 through mid-2009 was Vice President of Accounting and Finance for Nighthawk Oilfield Services in Houston, Texas (Nighthawk); Nighthawk filed for bankruptcy protection under Chapter 7 of the bankruptcy laws on July 10, 2009 and such fact was affirmatively disclosed to the Company’s Board before Mr. Rugen was appointed to the position of Chief Financial Officer of the Company in September, 2009, and the Board determined that the circumstances surrounding bankruptcy filing did not disclose any reason to question the integrity or qualifications of Mr. Rugen for the position of Chief Financial Officer of the Company.
|
(2) |
Was convicted in a criminal proceeding or named the subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);
|
(3) |
Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him or her from or otherwise limiting the following activities: (a) acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission (“CFTC”), or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity; (b) engaging in any type of business practice; or (c) engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal or state securities laws or federal commodities laws;
|
(4) |
Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting him or her for more than 60 days from engaging in any activity described in paragraph 3(a) above, or being associated with any persons engaging in any such activity;
|
(5) |
Was found by a court of competent jurisdiction in a civil action or by the SEC to have violated any federal or state securities law, and the judgment in such civil action or finding by the SEC has not been subsequently reversed, suspended, or vacated;
|
(6) |
Was found by a court of competent jurisdiction in a civil action or by the CFTC to have violated any federal commodities law, and the judgment in such civil action or finding by the CFTC has not been subsequently reversed, suspended, or vacated;
|
(7) |
Was the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of: (i) any federal or state securities or commodities law or regulation; (ii) any law or regulation respecting financial institutions or insurance companies including but not limited to a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease and desist order, or removal or prohibition order; or (iii) any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or
|
(8) |
Was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act [15 U.S.C. 78c(a)(26)], any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act [7 U.S.C. 1(a)(29)], or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.
|
· |
To review with management and the Company’s independent auditors the scope of the annual audit and quarterly statements, significant financial reporting issues and judgments made in connection with the preparation of the Company’s financial statements;
|
· |
To review major changes to the Company’s auditing and accounting principles and practices suggested by the independent auditors;
|
· |
To monitor the independent auditor's relationship with the Company;
|
· |
To advise and assist the Board of Directors in evaluating the independent auditor's examination;
|
· |
To supervise the Company's financial and accounting organization and financial reporting;
|
· |
To nominate, for approval of the Board of Directors, a firm of certified public accountants whose duty it is to audit the financial records of the Company for the fiscal year for which it is appointed; and
|
· |
To review and consider fee arrangements with, and fees charged by, the Company’s independent auditors.
|
Name and Principal Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Stock
Awards
($)
|
All Other
Compensation2
($)
|
Total
($)
|
|||||||||||||||
Michael J. Rugen,
|
2017
|
163,857
|
19,276
|
9,149
|
6,673
|
198,955
|
|||||||||||||||
Chief Financial Officer
|
2016
|
163,857
|
21,685
|
6,931
|
6,737
|
199,210
|
|||||||||||||||
Chief Executive Officer (interim)3
|
|||||||||||||||||||||
Cary V. Sorensen,
|
2017
|
81,900
|
—
|
—
|
3,454
|
85,354
|
|||||||||||||||
General Counsel
|
2016
|
81,900
|
—
|
—
|
3,495
|
85,395
|
(2) |
The amounts in this column consist of the Company’s matching contributions to its 401 (k) plan and the portion of company-wide group term life insurance premiums allocable to these named executive officers.
|
(3) |
Mr. Rugen was appointed interim Chief Executive Officer on June 28, 2013. The bonus and stock award information for Mr. Rugen for 2017 and 2016 represents his compensation for his services as CEO.
|
OPTION AWARDS
|
|||||||||||||
Name |
Number of securities
underlying unexercised
options exercisable
|
Number of securities
underlying unexercised
options unexercisable
|
Option exercise
price
|
Option
expiration date
|
|||||||||
Michael J. Rugen
|
—
|
—
|
$
|
—
|
|||||||||
Cary V. Sorensen
|
—
|
—
|
$
|
—
|
Name |
Fees earned or
paid in cash
($)
|
Stock awards
compensation4
($)
|
Total
($)
|
|||||||||
Matthew K. Behrent
|
$
|
7,500
|
$
|
1,235
|
$
|
8,735
|
||||||
Hughree F. Brooks
|
$
|
7,113
|
$
|
1,235
|
$
|
8,348
|
||||||
Richard M. Thon
|
$
|
7,500
|
$
|
1,235
|
$
|
8,735
|
||||||
Peter E. Salas
|
$
|
7,500
|
$
|
1,235
|
$
|
8,735
|
(4) |
The amounts represented in this column are equal to the aggregate grant date fair value of the award computed in accordance with FASB ASC Topic 718, Compensation-Stock Compensation, in connection with options granted under the Tengasco, Inc. Stock Incentive Plan. See Note 11 Stock and Stock Options in the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 for information on the relevant valuation assumptions.
|
ITEM 12. |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDERS MATTERS
|
Name and Address |
Title
|
Number of Shares
Beneficially Owned
|
Percent of Class
|
||||||
Dolphin Offshore Partners, L.P.
c/o Dolphin Mgmt. Services, Inc.
P.O. Box 16867
Fernandina Beach, FL 32035
|
Stockholder
|
5,292,241
|
49.8
|
%
|
(5) |
Unless otherwise stated, all shares of Common Stock are directly held with sole voting and dispositive power. The shares set forth in the table are as of March 26, 2018.
|
Name and Address |
Title
|
Number of Shares
Beneficially Owned 6
|
Percent of
Class 7
|
||||||
Matthew K. Behrent (8)
|
Director
|
66,400
|
Less than 1
|
% | |||||
Michael J. Rugen (9)
|
Chief Executive Officer (interim); Chief Financial Officer
|
38,098
|
Less than 1
|
% | |||||
Peter E. Salas (10)
|
Director;
Chairman of the Board
|
5,299,741
|
49.8
|
%
|
|||||
Cary V. Sorensen (11)
|
Vice President;
General Counsel;
Secretary
|
23,623
|
Less than 1
|
% | |||||
Richard M. Thon (12)
|
Director
|
32,625
|
Less than 1
|
% | |||||
All Officers and Directors as a group (13)
|
5,460,487
|
51.3
|
%
|
(6) |
Unless otherwise stated, all shares of common stock are directly held with sole voting and dispositive power. The shares set forth in the table are as of March 26, 2018.
|
(7) |
Calculated pursuant to Rule 13d-3(d) under the Securities Exchange Act of 1934 based upon 10,624,493 shares of common stock being outstanding as of March 26, 2018. Shares not outstanding that are subject to options or warrants exercisable by the holder thereof within 60 days of March 26, 2018 are deemed outstanding for the purposes of calculating the number and percentage owned by such stockholder, but not deemed outstanding for the purpose of calculating the percentage of any other person. Unless otherwise noted, all shares listed as beneficially owned by a stockholder are actually outstanding.
|
(8) |
Consists of 58,900 shares held directly and vested, fully exercisable options to purchase 7,500 shares.
|
(9) |
Consists of 38,098 shares held directly.
|
(10) |
Consists of directly, vested, fully exercisable options to purchase 7,500 shares, 4,000 shares held individually, and 5,288,241 shares held directly by Dolphin Offshore Partners, L.P. (“Dolphin”). Peter E. Salas is the sole shareholder of and controlling person of Dolphin Mgmt. Services, Inc. which is the general partner of Dolphin.
|
(11) |
Consists of 23,623 shares held directly.
|
(12) |
Consists of 27,000 shares held directly and vested, fully exercisable options to purchase 5,625 shares.
|
(13) |
Consists of 151,621 shares held directly by directors and management, 5,288,241 shares held by Dolphin and vested, and fully exercisable options to purchase 20,625 shares.
|
Plan Category
|
Number of securities to
be issued upon exercise
of outstanding options,
warrants and rights(a)
|
Weighted-average
exercise price of
outstanding, options,
warrants and rights(b)
|
Number of securities remaining
available for future issuance under
equity compensation plans
(excluding securities
reflected in column (a)) (c)
|
|||||||||
Equity compensation plans approve by security holders 14
|
30,000
|
$
|
3.73
|
3,647,724
|
||||||||
Equity compensation plans not approved by security holders
|
—
|
—
|
—
|
|||||||||
Total
|
30,000
|
$
|
3.73
|
3,647,724
|
(14) |
Refers to Tengasco, Inc. Stock Incentive Plan (the “Plan”) which was adopted to provide an incentive to key employees, officers, directors and consultants of the Company and its present and future subsidiary corporations, and to offer an additional inducement in obtaining the services of such individuals. The Plan provides for the grant to employees of the Company of “Incentive Stock Options” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, nonqualified stock options to outside Directors and consultants the Company and stock appreciation rights. The Plan was approved by the Company’s shareholders on June 26, 2001. Initially, the Plan provided for the issuance of a maximum of 1,000,000 shares of the Company’s $.001 par value common stock. Thereafter, the Company’s Board of Directors adopted and the shareholders approved amendments to the Plan to increase the aggregate number of shares that may be issued under the Plan to 7,000,000 shares. The most recent amendment to the Plan increasing the number of shares that may be issued under the Plan by 3,500,000 shares and extending the Plan for another 10 years was approved by the Company Board of Directors on February 1, 2008 and approved by the Company’s shareholders at the Annual Meeting of Stockholders held June 2, 2008.
|
· |
The Director directly or indirectly accepts any consulting, advisory, or other compensatory fee from the Company or any of its subsidiaries; or
|
· |
The Director is an affiliated person16 of the Company or any of its subsidiaries.
|
· |
The Director participated in the preparation of the Company’s financial statements at any time during the past three years.
|
(15) |
Under these categorical standards “immediate family member” includes a person’s spouse, parents, children, siblings, mother-in-law, father-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law, and anyone who resides in such person’s home (other than a domestic employee).
|
(16) |
For purposes of this categorical standard, an “affiliated person of the Company” means a person that directly or indirectly through intermediaries’ controls, or is controlled by, or is under common control with the Company. A person will not be considered to be in control of the Company, and therefore not an affiliate of the Company, if he is not the beneficial owner, directly or indirectly of more than 10% of any class of voting securities of the Company and he is not an executive officer of the Company. Executive officers of an affiliate of the Company as well as a director who is also an employee of an affiliate of the Company will be deemed to be affiliates of the Company.
|
2017
Moss Adams
|
2017
Hein
|
2016
Hein
|
||||||||||
Audit Fees
|
$
|
73,500
|
$
|
37,800
|
$
|
111,300
|
||||||
Audit-Related Fees
|
—
|
—
|
18,322
|
|||||||||
Tax Fees
|
—
|
—
|
—
|
|||||||||
All Other Fees
|
—
|
—
|
—
|
|||||||||
Total Fees
|
$
|
73,500
|
$
|
37,800
|
$
|
129,622
|
A.
|
The following documents are filed as part of this Report:
|
1. |
Financial Statements:
|
2. |
Financial Schedules:
|
3. |
Exhibits.
|
Exhibit Number
|
Description
|
Amended and Restated Certificate of Incorporation as of March 23, 2016 (Incorporated by reference to Exhibit 3 to registrant’s Report on Form 10-Q for the period ended September 30, 2016 filed November 14, 2016).
|
|
Amended and Restated Bylaws as of November 13, 2014 (Incorporated by reference to Exhibit 3.2 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2014 filed on March 30, 2015).
|
|
Agreement and Plan of Merger of Tengasco, Inc. (a Tennessee corporation with and into Tengasco, Inc., a Delaware corporation dated as of April 15, 2011 (Incorporated by reference to Exhibit B to registrant’s Definitive Proxy Statement pursuant to Schedule 14a filed May 2, 2011).
|
|
Tengasco, Inc. Incentive Stock Plan, as amended March 21, 2016 (Incorporated by reference to Appendix B, beginning page 26 in the registrant’s Definitive Proxy Statement pursuant to Schedule 14a filed February 10, 2016)
|
|
Loan and Security Agreement dated as of June 29, 2006 between Tengasco, Inc. and Citibank Texas, N.A. (Incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K dated June 29, 2006).
|
|
Subscription Agreement of Hoactzin Partners, L.P. for the Company’s ten well drilling program on its Kansas Properties dated August 3, 2007 (Incorporated by reference to Exhibit 10.15 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2007 filed March 31, 2008 [the “2007 Form 10-K”]).
|
|
Agreement and Conveyance of Net Profits Interest dated September 17, 2007 between Manufactured Methane Corporation as Grantor and Hoactzin Partners, LP as Grantee (Incorporated by reference to Exhibit 10.16 to the 2007 Form 10-K).
|
|
Agreement for Conditional Option for Exchange of Net Profits Interest for Convertible Preferred Stock dated September 17, 2007 between Tengasco, Inc., as Grantor and Hoactzin Partners, L.P., as Grantee (Incorporated by reference to Exhibit 10.17 to the 2007 Form 10-K).
|
|
Assignment of Notes and Liens Dated December 17, 2007 between Citibank, N.A., as Assignor, Sovereign Bank, as Assignee and Tengasco, Inc., Tengasco Land & Mineral Corporation and Tengasco Pipeline Corporation as Debtors (Incorporated by reference to Exhibit 10.18 to the 2007 Form 10-K).
|
Management Agreement dated December 18, 2007 between Tengasco, Inc. and Hoactzin Partners, L.P. (Incorporated by reference to Exhibit 10.20 to the 2007 Form 10-K).
|
|
Assignment of Credit Facility to F&M Bank and Trust Company (Incorporated by reference to Exhibit 10.15 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2010 filed on March 31, 2011).
|
|
Fourteenth Amendment to Loan and Security Agreement dated October 24, 2013 between Tengasco, Inc. as borrower and F&M Bank & Trust Company as Lender (Incorporated by reference to Exhibit 10.16 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2013 filed on March 31, 2014).
|
|
Fifteenth Amendment to Loan and Security Agreement dated March 17, 2014 between Tengasco, Inc. as borrower and F&M Bank & Trust Company as Lender (Incorporated by reference to Exhibit 10.17 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2013 filed on March 31, 2014).
|
|
Sixteenth Amendment to Loan and Security Agreement dated September 23, 2014 between Tengasco, Inc. as borrower and Prosperity Bank as Lender (Incorporated by reference to Exhibit 10.18 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2014 filed on March 30, 2015).
|
|
Seventeenth Amendment to Loan and Security Agreement dated March 16, 2015 between Tengasco, Inc. as borrower and Prosperity Bank as Lender (Incorporated by reference to Exhibit 10.19 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2014 filed on March 30, 2015).
|
|
Eighteenth Amendment to Loan and Security Agreement between Tengasco, Inc. as borrower and Prosperity Bank as Lender dated March 28, 2016 (Incorporated by reference to Exhibit 10.20 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 filed on March 30, 2016).
|
|
Amended and Restated Loan Agreement between Tengasco, Inc. and Prosperity Bank, effective March 16, 2017.
|
|
Code of Ethics (Incorporated by reference to Exhibit 14 to the registrant’s Annual Report on Form 10-K filed March 30, 2004).
|
|
Consent of LaRoche Petroleum Consultants, Ltd.
|
|
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Report of LaRoche Petroleum Consultants, Ltd. has been added to the filing for the year ended December, 31, 2017
|
|
101.INS*
|
XBRL Instance Document
|
101.SCH*
|
XBRL Taxonomy Extension Schema Document
|
101.CAL*
|
XBRL Taxonomy Calculation Linkbase Document
|
101.DEF*
|
XBRL Taxonomy Definition Linkbase Document
|
101.LAB*
|
XBRL Taxonomy Label Linkbase Document
|
101.PRE*
|
XBRL Taxonomy Presentation Linkbase Document
|
Signature
|
Title
|
Date
|
s/ Matthew K. Behrent
|
Director
|
March 28, 2018
|
Matthew K. Behrent
|
||
s/ Peter E. Salas
|
Director
|
March 28, 2018
|
Peter E. Salas
|
||
s/ Richard M. Thon
|
Director
|
March 28, 2018
|
Richard M. Thon
|
||
s/ Michael J. Rugen
|
Chief Executive Officer and
|
March 28, 2018
|
Michael J. Rugen
|
Principal Financial Accounting Officer
|
Consolidated Financial Statements
Years Ended December 31, 2017, 2016, and 2015
|
Reports of Independent Registered Public Accounting Firms
|
F-2
|
Consolidated Financial Statements
|
|
Consolidated Balance Sheets
|
F-4
|
Consolidated Statements of Operations
|
F-6
|
Consolidated Statements of Stockholders’ Equity
|
F-7
|
Consolidated Statements of Cash Flows
|
F-8
|
Notes to Consolidated Financial Statements
|
F-9
|
December 31,
|
||||||||
2017
|
2016
|
|||||||
Assets
|
||||||||
Current
|
||||||||
Cash and cash equivalents
|
$
|
185
|
$
|
76
|
||||
Accounts receivable, less allowance for doubtful accounts of $14
|
608
|
490
|
||||||
Accounts receivable-related party, less allowance for doubtful accounts of $159
|
—
|
—
|
||||||
Inventory
|
541
|
627
|
||||||
Other current assets
|
164
|
421
|
||||||
Total current assets
|
1,498
|
1,614
|
||||||
Loan fees, net
|
13
|
24
|
||||||
Oil and gas properties, net (full cost accounting method)
|
4,720
|
5,225
|
||||||
Manufactured Methane facilities, net
|
1,497
|
1,559
|
||||||
Other property and equipment, net
|
135
|
140
|
||||||
Deferred tax asset
|
242
|
—
|
||||||
Total assets
|
$
|
8,105
|
$
|
8,562
|
December 31,
|
||||||||
2017
|
2016
|
|||||||
Liabilities and Stockholders’ Equity
|
||||||||
Current liabilities
|
||||||||
Accounts payable – trade
|
$
|
208
|
$
|
303
|
||||
Accounts payable – other
|
159
|
159
|
||||||
Accrued liabilities
|
203
|
274
|
||||||
Current maturities of long-term debt
|
41
|
55
|
||||||
Total current liabilities
|
611
|
791
|
||||||
Asset retirement obligation
|
2,270
|
2,046
|
||||||
Long term debt, less current maturities
|
49
|
2,447
|
||||||
Total liabilities
|
2,930
|
5,284
|
||||||
Commitments and contingencies (Note 9)
|
||||||||
Stockholders’ equity
|
||||||||
Preferred stock, 25,000,000 shares authorized:
|
||||||||
Series A Preferred stock, $0.0001 par value, 10,000 shares designated; 0 shares issued and outstanding
|
—
|
—
|
||||||
Common stock, $.001 par value: authorized 100,000,000 Shares; 10,619,924 and 6,097,723 shares issued and outstanding
|
11
|
6
|
||||||
Additional paid in capital
|
58,253
|
55,787
|
||||||
Accumulated deficit
|
(53,089
|
)
|
(52,515
|
)
|
||||
Total stockholders’ equity
|
5,175
|
3,278
|
||||||
Total liabilities and stockholders’ equity
|
$
|
8,105
|
$
|
8,562
|
Year ended December 31,
|
||||||||||||
2017
|
2016
|
2015
|
||||||||||
Revenues
|
||||||||||||
Oil and gas properties
|
$
|
4,683
|
$
|
4,113
|
$
|
5,631
|
||||||
Methane facility
|
580
|
559
|
533
|
|||||||||
Total revenues
|
5,263
|
4,672
|
6,164
|
|||||||||
Cost and expenses
|
||||||||||||
Production costs and taxes
|
3,444
|
3,064
|
3,731
|
|||||||||
Methane facility costs
|
489
|
357
|
493
|
|||||||||
Depreciation, depletion, and amortization
|
924
|
1,139
|
2,676
|
|||||||||
General and administrative
|
1,171
|
1,405
|
2,069
|
|||||||||
Impairment
|
—
|
2,805
|
14,526
|
|||||||||
Total cost and expenses
|
6,028
|
8,770
|
23,495
|
|||||||||
Net loss from operations
|
(765
|
)
|
(4,098
|
)
|
(17,331
|
)
|
||||||
Other income (expense)
|
||||||||||||
Net interest expense
|
(53
|
)
|
(102
|
)
|
(80
|
)
|
||||||
Gain on sale of assets
|
2
|
1
|
41
|
|||||||||
Total other (expense)
|
(51
|
)
|
(101
|
)
|
(39
|
)
|
||||||
Loss from operations before income tax
|
(816
|
)
|
(4,199
|
)
|
(17,370
|
)
|
||||||
Deferred income tax benefit (expense)
|
242
|
—
|
(7,351
|
)
|
||||||||
Net loss
|
$
|
(574
|
)
|
$
|
(4,199
|
)
|
$
|
(24,721
|
)
|
|||
Net loss per share
|
||||||||||||
Basic
|
$
|
(0.06
|
)
|
$
|
(0.69
|
)
|
$
|
(4.06
|
)
|
|||
Fully diluted
|
$
|
(0.06
|
)
|
$
|
(0.69
|
)
|
$
|
(4.06
|
)
|
|||
Shares used in computing earnings per share
|
||||||||||||
Basic
|
10,081,218
|
6,091,028
|
6,084,241
|
|||||||||
Diluted
|
10,081,218
|
6,091,028
|
6,084,241
|
Common Stock
|
Paid-in
|
Accumulated
|
||||||||||||||||||
Shares
|
Amount
|
Capital
|
Deficit
|
Total
|
||||||||||||||||
Balance, December 31, 2014
|
6,084,241
|
$
|
6
|
$
|
55,758
|
$
|
(23,595
|
)
|
$
|
32,169
|
||||||||||
Net loss
|
—
|
—
|
—
|
(24,721
|
)
|
(24,721
|
)
|
|||||||||||||
Compensation expense related to options issued
|
—
|
—
|
12
|
—
|
12
|
|||||||||||||||
Balance, December 31, 2015
|
6,084,241
|
$
|
6
|
$
|
55,770
|
$
|
(48,316
|
)
|
$
|
7,460
|
||||||||||
Net loss
|
—
|
—
|
—
|
(4,199
|
)
|
(4,199
|
)
|
|||||||||||||
Compensation expense related to options issued
|
—
|
—
|
3
|
—
|
3
|
|||||||||||||||
Compensation expense related to stock issued
|
12,641
|
—
|
14
|
—
|
14
|
|||||||||||||||
True up shares due to reverse stock split
|
841
|
—
|
—
|
—
|
—
|
|||||||||||||||
Balance, December 31, 2016
|
6,097,723
|
$
|
6
|
$
|
55,787
|
$
|
(52,515
|
)
|
$
|
3,278
|
||||||||||
Net loss
|
—
|
—
|
—
|
(574
|
)
|
(574
|
)
|
|||||||||||||
Compensation expense related to stock issued
|
23,503
|
—
|
14
|
—
|
14
|
|||||||||||||||
Shares issued for rights offering
|
4,498,698
|
5
|
2,452
|
—
|
2,457
|
|||||||||||||||
Balance, December 31, 2017
|
10,619,924
|
$
|
11
|
$
|
58,253
|
$
|
(53,089
|
)
|
$
|
5,175
|
Year Ended December 31,
|
||||||||||||
2017
|
2016
|
2015
|
||||||||||
Operating activities
|
||||||||||||
Net loss from operations
|
$
|
(574
|
)
|
$
|
(4,199
|
)
|
$
|
(24,721
|
)
|
|||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
|
||||||||||||
Depreciation, depletion, and amortization
|
924
|
1,139
|
2,676
|
|||||||||
Amortization of loan fees-interest expenses
|
20
|
11
|
10
|
|||||||||
Accretion of discount on asset retirement obligation
|
141
|
143
|
126
|
|||||||||
Impairment
|
—
|
2,805
|
14,526
|
|||||||||
Gain on sale of vehicles/equipment
|
(2
|
)
|
—
|
(41
|
)
|
|||||||
Compensation and services paid in stock / stock options
|
14
|
17
|
12
|
|||||||||
Deferred income tax expense (benefit)
|
(242
|
)
|
—
|
7,351
|
||||||||
Changes in assets and liabilities
|
||||||||||||
Restricted cash
|
—
|
—
|
386
|
|||||||||
Accounts receivable
|
(118
|
)
|
(46
|
)
|
432
|
|||||||
Inventory and other assets
|
203
|
(238
|
)
|
198
|
||||||||
Accounts payable
|
(95
|
)
|
(482
|
)
|
(58
|
)
|
||||||
Accrued liabilities
|
(64
|
)
|
(89
|
)
|
(398
|
)
|
||||||
Settlement on asset retirement obligations
|
(53
|
)
|
(73
|
)
|
(17
|
)
|
||||||
Net cash provided by (used in) operating activities
|
154
|
(1,012
|
)
|
482
|
||||||||
Investing activities
|
||||||||||||
Additions to oil and gas properties
|
(169
|
)
|
(397
|
)
|
(570
|
)
|
||||||
Sale of oil and gas properties
|
7
|
44
|
—
|
|||||||||
Additions to Manufactured Methane facilities
|
—
|
(47
|
)
|
—
|
||||||||
Additions to other property & equipment
|
(17
|
)
|
(5
|
)
|
(1
|
)
|
||||||
Proceeds from sale of other property & equipment
|
—
|
4
|
30
|
|||||||||
Net cash used in investing activities
|
(179
|
)
|
(401
|
)
|
(541
|
)
|
||||||
Financing activities
|
||||||||||||
Proceeds from rights offering
|
2,699
|
—
|
—
|
|||||||||
Issuance cost of rights offering
|
(102
|
)
|
—
|
—
|
||||||||
Proceeds from borrowings
|
400
|
3,850
|
4,300
|
|||||||||
Repayment of borrowings
|
(2,854
|
)
|
(2,376
|
)
|
(4,234
|
)
|
||||||
Loan fees
|
(9
|
)
|
(25
|
)
|
(2
|
)
|
||||||
Net cash provided by financing activities
|
134
|
1,449
|
64
|
|||||||||
Net change in cash and cash equivalents
|
109
|
36
|
5
|
|||||||||
Cash and cash equivalents, beginning of period
|
76
|
40
|
35
|
|||||||||
Cash and cash equivalents, end of period
|
$
|
185
|
$
|
76
|
$
|
40
|
||||||
Supplemental cash flow information:
|
||||||||||||
Cash interest payments
|
$
|
33
|
$
|
91
|
$
|
70
|
||||||
Supplemental non-cash investing and financing activities:
|
||||||||||||
Financed company vehicles
|
$
|
81
|
$
|
23
|
$
|
140
|
||||||
Cost of stock issuance in rights offering
|
$
|
(140
|
)
|
$
|
—
|
$
|
—
|
|||||
Asset retirement obligations incurred
|
$
|
1
|
$
|
2
|
$
|
—
|
||||||
Revisions to asset retirement obligations
|
$
|
138
|
$
|
(210
|
)
|
$
|
112
|
|||||
Capital expenditures included in accounts payable and accrued liabilities
|
$
|
—
|
$
|
7
|
$
|
—
|
December 31,
|
||||||||
2017
|
2016
|
|||||||
Oil – carried at lower of cost or market
|
$
|
436
|
$
|
505
|
||||
Equipment and materials – carried at market
|
105
|
122
|
||||||
Total inventory
|
$
|
541
|
$
|
627
|
December 31,
|
||||||||
2017
|
2016
|
|||||||
Revenue
|
$
|
570
|
$
|
476
|
||||
Joint interest
|
23
|
21
|
||||||
Other
|
29
|
7
|
||||||
Allowance for doubtful accounts
|
(14
|
)
|
(14
|
)
|
||||
Total accounts receivable
|
$
|
608
|
$
|
490
|
For the years ended December 31,
|
||||||||||||
2017
|
2016
|
2015
|
||||||||||
Income (numerator):
|
||||||||||||
Net loss
|
$
|
(574
|
)
|
$
|
(4,199
|
)
|
$
|
(24,721
|
)
|
|||
Weighted average shares (denominator):
|
||||||||||||
Weighted average shares - basic
|
10,081,218
|
6,091,028
|
6,084,241
|
|||||||||
Dilution effect of share-based compensation, treasury method
|
—
|
—
|
—
|
|||||||||
Weighted average shares - dilutive
|
10,081,218
|
6,091,028
|
6,084,241
|
|||||||||
Loss per share – Basic and Dilutive:
|
||||||||||||
Basic
|
$
|
(0.06
|
)
|
$
|
(0.69
|
)
|
$
|
(4.06
|
)
|
|||
Dilutive
|
$
|
(0.06
|
)
|
$
|
(0.69
|
)
|
$
|
(4.06
|
)
|
December 31,
|
||||||||
2017
|
2016
|
|||||||
Oil and gas properties
|
$
|
5,704
|
$
|
5,315
|
||||
Unevaluated properties
|
—
|
106
|
||||||
Accumulated depreciation, depletion and amortization
|
(984
|
)
|
(196
|
)
|
||||
Oil and gas properties, net
|
$
|
4,720
|
$
|
5,225
|
December 31,
|
||||||||
2017
|
2016
|
|||||||
Manufactured Methane facilities, net of impairment
|
$
|
1,681
|
$
|
1,681
|
||||
Accumulated depreciation
|
(184
|
)
|
(122
|
)
|
||||
Manufactured Methane facilities, net
|
$
|
1,497
|
$
|
1,559
|
Type
|
Depreciable
Life
|
Gross Cost
|
Accumulated
Depreciation
|
Net Book
Value
|
|||||||||
Machinery and equipment
|
5-7 yrs
|
$
|
20
|
$
|
20
|
$
|
—
|
||||||
Vehicles
|
2-5 yrs
|
318
|
183
|
135
|
|||||||||
Other
|
5 yrs
|
63
|
63
|
—
|
|||||||||
Total
|
$
|
401
|
$
|
266
|
$
|
135
|
Type
|
Depreciable
Life
|
Gross Cost
|
Accumulated
Depreciation
|
Net Book
Value
|
|||||||||
Machinery and equipment
|
5-7 yrs
|
$
|
20
|
$
|
20
|
$
|
—
|
||||||
Vehicles
|
2-5 yrs
|
339
|
199
|
140
|
|||||||||
Other
|
5 yrs
|
63
|
63
|
—
|
|||||||||
Total
|
$
|
422
|
$
|
282
|
$
|
140
|
December 31,
|
||||||||
2017
|
2016
|
|||||||
Note payable to a bank, with interest only payment until maturity.
|
$
|
—
|
$
|
2,400
|
||||
Installment notes bearing interest at the rate of 4.16% to 4.6% per annum collateralized by vehicles with monthly payments including interest, insurance and maintenance of approximately $10
|
90
|
102
|
2018
|
2019
|
Total
|
||||||||||
Bank Credit Facility
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
Company Vehicles
|
$
|
41
|
$
|
49
|
$
|
90
|
||||||
Total
|
$
|
41
|
$
|
49
|
$
|
90
|
Balance December 31, 2015
|
$
|
2,222
|
||
Accretion expense
|
143
|
|||
Liabilities incurred
|
2
|
|||
Liabilities settled
|
(86
|
)
|
||
Liabilities sold properties
|
(25
|
)
|
||
Revisions in estimated liabilities
|
(210
|
)
|
||
Balance December 31, 2016
|
$
|
2,046
|
||
Accretion expense
|
141
|
|||
Liabilities incurred
|
1
|
|||
Liabilities settled
|
(45
|
)
|
||
Liabilities sold properties
|
(11
|
)
|
||
Revisions in estimated liabilities
|
138
|
|||
Balance December 31, 2017
|
$
|
2,270
|
2017
|
2016
|
2015
|
||||||||||||||||||||||
Shares
|
Weighted
Average
Exercise
Price
|
Shares
|
Weighted
Average
Exercise
Price
|
Shares
|
Weighted
Average
Exercise
Price
|
|||||||||||||||||||
Outstanding, beginning of year
|
37,500
|
$
|
4.70
|
45,625
|
$
|
6.10
|
90,025
|
$
|
5.70
|
|||||||||||||||
Granted
|
—
|
$
|
—
|
2,500
|
$
|
1.20
|
10,000
|
$
|
2.40
|
|||||||||||||||
Exercised
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
|||||||||||||||
Expired/cancelled
|
(7,500
|
)
|
$
|
8.40
|
(10,625
|
)
|
$
|
9.88
|
(54,400
|
)
|
$
|
4.80
|
||||||||||||
Outstanding, end of year
|
30,000
|
$
|
3.73
|
37,500
|
$
|
4.70
|
45,625
|
$
|
6.10
|
|||||||||||||||
Exercisable, end of year
|
30,000
|
$
|
3.73
|
37,500
|
$
|
4.70
|
45,625
|
$
|
6.10
|
Weighted Average
Exercise Price
|
Options Outstanding
(shares)
|
Weighted Average
Remaining Contractual Life
(years)
|
Options Exercisable
(shares)
|
|||||||||||
$
|
6.40
|
1,875
|
—
|
1,875
|
||||||||||
$
|
6.20
|
1,875
|
0.3
|
1,875
|
||||||||||
$
|
4.80
|
1,875
|
0.5
|
1,875
|
||||||||||
$
|
4.10
|
1,875
|
0.8
|
1,875
|
||||||||||
$
|
4.10
|
2,500
|
1.0
|
2,500
|
||||||||||
$
|
4.80
|
2,500
|
1.2
|
2,500
|
||||||||||
$
|
4.40
|
2,500
|
1.5
|
2,500
|
||||||||||
$
|
4.40
|
2,500
|
1.8
|
2,500
|
||||||||||
$
|
2.50
|
2,500
|
2.0
|
2,500
|
||||||||||
$
|
2.30
|
2,500
|
2.2
|
2,500
|
||||||||||
$
|
2.70
|
2,500
|
2.5
|
2,500
|
||||||||||
$
|
2.20
|
2,500
|
2.8
|
2,500
|
||||||||||
$
|
1.20
|
2,500
|
3.0
|
2,500
|
||||||||||
30,000
|
30,000
|
Year Ended December 31, 2017
|
Total
|
|||
Statutory rate
|
34
|
%
|
||
Tax (benefit) expense at statutory rate
|
$
|
(278
|
)
|
|
State income tax (benefit) expense
|
(42
|
)
|
||
Permanent difference
|
1
|
|||
Impact of 2017 Tax Act
|
5,319
|
|||
Other
|
14
|
|||
Net change in deferred tax asset valuation allowance
|
(5,256
|
)
|
||
Total income tax provision (benefit)
|
$
|
(242
|
)
|
Year Ended December 31, 2016
|
Total
|
|||
Statutory rate
|
34
|
%
|
||
Tax (benefit) expense at statutory rate
|
$
|
(1,428
|
)
|
|
State income tax (benefit) expense
|
(216
|
)
|
||
Permanent difference
|
1
|
|||
Other
|
—
|
|||
Net change in deferred tax asset valuation allowance
|
1,643
|
|||
Total income tax provision (benefit)
|
$
|
—
|
Year Ended December 31, 2015
|
Total
|
|||
Statutory rate
|
34
|
%
|
||
Tax (benefit) expense at statutory rate
|
$
|
(5,906
|
)
|
|
State income tax (benefit) expense
|
(893
|
)
|
||
Permanent difference
|
3
|
|||
Other
|
—
|
|||
Net change in deferred tax asset valuation allowance
|
14,147
|
|||
Total income tax provision (benefit)
|
$
|
7,351
|
Year Ended December 31,
|
||||||||
2017
|
2016
|
|||||||
Net deferred tax assets – current:
|
||||||||
Bad debt
|
$
|
—
|
$
|
68
|
||||
Valuation allowance
|
—
|
(68
|
)
|
|||||
Total deferred tax assets – current
|
$
|
—
|
$
|
—
|
||||
Net deferred tax assets (liabilities) – noncurrent:
|
||||||||
Net operating loss carryforwards
|
$
|
8,187
|
$
|
10,339
|
||||
Oil and gas properties
|
2,735
|
4,445
|
||||||
Property, Plant and Equipment
|
419
|
646
|
||||||
Asset retirement obligation
|
616
|
801
|
||||||
Tax credits
|
260
|
260
|
||||||
Miscellaneous
|
92
|
78
|
||||||
Valuation allowance
|
(12,067
|
)
|
(16,569
|
)
|
||||
Total deferred tax assets – noncurrent
|
$
|
242
|
$
|
—
|
||||
Net deferred tax asset
|
$
|
242
|
$
|
—
|
Fiscal Year Ended 2017
|
1st Qtr
|
2nd Qtr
|
3rd Qtr
|
4th Qtr
|
||||||||||||
Revenues
|
$
|
1,344
|
$
|
1,318
|
$
|
1,179
|
$
|
1,422
|
||||||||
Net income (loss) from continuing operations
|
(213
|
)
|
(178
|
)
|
(315
|
)
|
132
|
|||||||||
Loss per common share from continuing operations
|
$
|
(0.03
|
)
|
$
|
(0.02
|
)
|
$
|
(0.03
|
)
|
$
|
0.02
|
Fiscal Year Ended 2016
|
1st Qtr
|
2nd Qtr
|
3rd Qtr
|
4th Qtr
|
||||||||||||
Revenues
|
$
|
932
|
$
|
1,282
|
$
|
1,242
|
$
|
1,216
|
||||||||
Net loss from continuing operations
|
(1,404
|
)
|
(1,627
|
)
|
(908
|
)
|
(260
|
)
|
||||||||
Loss per common share from continuing operations
|
$
|
(0.23
|
)
|
$
|
(0.27
|
)
|
$
|
(0.15
|
)
|
$
|
(0.04
|
)
|
Years Ended December 31,
|
||||||||
2017
|
2016
|
|||||||
Proved oil and gas properties
|
$
|
5,704
|
$
|
5,315
|
||||
Unproved properties
|
—
|
106
|
||||||
Total proved and unproved oil and gas properties
|
$
|
5,704
|
$
|
5,421
|
||||
Less accumulated depreciation, depletion and amortization
|
(984
|
)
|
(196
|
)
|
||||
Net oil and gas properties
|
$
|
4,720
|
$
|
5,225
|
Years Ended December 31,
|
||||||||||||
2017
|
2016
|
2015
|
||||||||||
Property acquisitions proved
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
Property acquisitions unproved
|
93
|
8
|
90
|
|||||||||
Exploration cost
|
69
|
396
|
22
|
|||||||||
Development cost
|
—
|
—
|
252
|
|||||||||
Total
|
$
|
162
|
$
|
404
|
$
|
364
|
Years Ended December 31,
|
||||||||||||
2017
|
2016
|
2015
|
||||||||||
Revenues
|
$
|
4,683
|
$
|
4,113
|
$
|
5,631
|
||||||
Production costs and taxes
|
(3,444
|
)
|
(3,064
|
)
|
(3,731
|
)
|
||||||
Depreciation, depletion and amortization
|
(796
|
)
|
(1,009
|
)
|
(2,538
|
)
|
||||||
Impairment
|
—
|
(2,805
|
)
|
(14,526
|
)
|
|||||||
Income (loss) from oil and gas producing activities
|
$
|
443
|
$
|
(2,765
|
)
|
$
|
(15,164
|
)
|
Oil (MBbl)
|
Gas (MMcf)
|
MBOE
|
||||||||||
Proved reserves at December 31, 2014
|
1,797
|
—
|
1,797
|
|||||||||
Revisions of previous estimates
|
(790
|
)
|
—
|
(790
|
)
|
|||||||
Improved recovery
|
—
|
—
|
—
|
|||||||||
Purchase of reserves in place
|
—
|
—
|
—
|
|||||||||
Extensions and discoveries
|
1
|
—
|
1
|
|||||||||
Production
|
(131
|
)
|
—
|
(131
|
)
|
|||||||
Sales of reserves in place
|
—
|
—
|
—
|
|||||||||
Proved reserves at December 31, 2015
|
877
|
—
|
877
|
|||||||||
Revisions of previous estimates
|
(36
|
)
|
—
|
(36
|
)
|
|||||||
Improved recovery
|
—
|
—
|
—
|
|||||||||
Purchase of reserves in place
|
—
|
—
|
—
|
|||||||||
Extensions and discoveries
|
3
|
—
|
3
|
|||||||||
Production
|
(108
|
)
|
—
|
(108
|
)
|
|||||||
Sales of reserves in place
|
(6
|
)
|
—
|
(6
|
)
|
|||||||
Proved reserves at December 31, 2016
|
730
|
—
|
730
|
|||||||||
Revisions of previous estimates
|
195
|
—
|
195
|
|||||||||
Improved recovery
|
—
|
—
|
—
|
|||||||||
Purchase of reserves in place
|
—
|
—
|
—
|
|||||||||
Extensions and discoveries
|
47
|
—
|
47
|
|||||||||
Production
|
(102
|
)
|
—
|
(102
|
)
|
|||||||
Sales of reserves in place
|
—
|
—
|
—
|
|||||||||
Proved reserves at December 31, 2017
|
870
|
—
|
870
|
|||||||||
Proved developed reserves at:
|
||||||||||||
December 31, 2014
|
1,438
|
—
|
1,438
|
|||||||||
December 31, 2015
|
877
|
—
|
877
|
|||||||||
December 31, 2016
|
730
|
—
|
730
|
|||||||||
December 31, 2017
|
832
|
—
|
832
|
|||||||||
Proved undeveloped reserves at:
|
||||||||||||
December 31, 2014
|
359
|
—
|
359
|
|||||||||
December 31, 2015
|
—
|
—
|
—
|
|||||||||
December 31, 2016
|
—
|
—
|
—
|
|||||||||
December 31, 2017
|
38
|
—
|
38
|
Year Ended 12/31/2017
|
Year Ended 12/31/2016
|
Year Ended 12/31/2015
|
||||||||||||||||||||||||||||||||||
Oil
|
Gas
|
Total
|
Oil
|
Gas
|
Total
|
Oil
|
Gas
|
Total
|
||||||||||||||||||||||||||||
Total proved reserves year-end reserve report
|
$
|
8,170
|
—
|
$
|
8,170
|
$
|
5,815
|
—
|
$
|
5,815
|
$
|
8,287
|
—
|
$
|
8,287
|
|||||||||||||||||||||
Proved developed producing reserves (PDP)
|
$
|
7,065
|
—
|
$
|
7,065
|
$
|
5,397
|
—
|
$
|
5,397
|
$
|
7,686
|
—
|
$
|
7,686
|
|||||||||||||||||||||
% of PDP reserves to total proved reserves
|
87
|
%
|
—
|
87
|
%
|
93
|
%
|
—
|
93
|
%
|
93
|
%
|
—
|
93
|
%
|
|||||||||||||||||||||
Proved developed non- producing reserves
|
$
|
1,082
|
—
|
$
|
1,082
|
$
|
418
|
—
|
$
|
418
|
$
|
601
|
—
|
$
|
601
|
|||||||||||||||||||||
% of PDNP reserves to total proved reserves
|
13
|
%
|
—
|
13
|
%
|
7
|
%
|
—
|
7
|
%
|
7
|
%
|
—
|
7
|
%
|
|||||||||||||||||||||
Proved undeveloped reserves (PUD)
|
$
|
23
|
—
|
$
|
23
|
$
|
—
|
—
|
$
|
—
|
$
|
—
|
—
|
$
|
—
|
|||||||||||||||||||||
% of PUD reserves to total proved reserves
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Years Ended December 31,
|
||||||||||||
2017
|
2016
|
2015
|
||||||||||
Future cash inflows
|
$
|
39,889
|
$
|
27,253
|
$
|
38,566
|
||||||
Future production costs and taxes
|
(23,343
|
)
|
(16,270
|
)
|
(23,500
|
)
|
||||||
Future development costs
|
(1,586
|
)
|
(553
|
)
|
(951
|
)
|
||||||
Future income tax expenses
|
—
|
—
|
—
|
|||||||||
Future net cash flows
|
14,960
|
10,430
|
14,115
|
|||||||||
Discount at 10% for timing of cash flows
|
(6,790
|
)
|
(4,615
|
)
|
(5,828
|
)
|
||||||
Standardized measure of discounted future net cash flows
|
$
|
8,170
|
$
|
5,815
|
$
|
8,287
|
Years Ended December 31,
|
||||||||||||
2017
|
2016
|
2015
|
||||||||||
Balance, beginning of year
|
$
|
5,815
|
$
|
8,287
|
$
|
34,531
|
||||||
Sales, net of production costs and taxes
|
(1,239
|
)
|
(2,037
|
)
|
(1,901
|
)
|
||||||
Discoveries and extensions, net of costs
|
123
|
35
|
5
|
|||||||||
Purchase of reserves in place
|
—
|
—
|
—
|
|||||||||
Sale of reserves in place
|
—
|
(10
|
)
|
—
|
||||||||
Net changes in prices and production costs
|
1,780
|
(863
|
)
|
(16,009
|
)
|
|||||||
Revisions of quantity estimates
|
1,611
|
(412
|
)
|
(22,431
|
)
|
|||||||
Previously estimated development cost incurred during the year
|
—
|
—
|
—
|
|||||||||
Changes in future development costs
|
(228
|
)
|
196
|
4,890
|
||||||||
Changes in timing and other
|
(164
|
)
|
(20
|
)
|
(56
|
)
|
||||||
Accretion of discount
|
472
|
639
|
3,373
|
|||||||||
Net change in income taxes
|
—
|
—
|
5,885
|
|||||||||
Balance, end of year
|
$
|
8,170
|
$
|
5,815
|
$
|
8,287
|
|
Lender:
|
PROSPERITY BANK
|
|
|
Attention: Alan Greenfield
|
|
|
1330 S. Harvard
|
|
|
Tulsa, Oklahoma 74112
|
|
|
|
|
With a copy
|
|
|
to counsel
|
|
|
for Lender:
|
Merrill E. Jones
|
|
|
HARRIS, FINLEY & BOGLE, P.C.
|
|
|
777 Main Street, Suite 1800
|
|
|
Fort Worth, Texas 76102-5341
|
|
|
|
Borrower and
|
||
Guarantors: | TENGASCO, INC. | |
Attention: Michael J. Rugen | ||
8000 E. Maplewood Ave, Suite 130
|
||
Greenwood Village, Colorado 80111
|
Yours very truly, | ||||
PROSPERITY BANK | ||||
By:
|
/s/ Allen Greenfield
|
|||
Alan Greenfield,
|
||||
Senior Vice President |
By:
|
/s/ Michael J. Rugen
|
|
|
|
|
|
|
|
Michael J. Rugen,
|
|
|
|
Chief Executive Officer
|
|
By:
|
/s/ Michael J. Rugen
|
|
|
|
Michael J. Rugen, President
|
|
By:
|
/s/ Michael J. Rugen
|
|
|
|
Michael J. Rugen, President
|
|
By:
|
/s/ Michael J. Rugen
|
|
|
|
Michael J. Rugen,
|
|
|
|
Vice-President
|
|
LAROCHE PETROLEUM CONSULTANTS, LTD.
|
||
By LPC, Inc. General Partner
|
||
By:
|
/s Stephen W. Daniel
|
|
Name: Stephen W. Daniel
|
||
Title: Vice President
|
||
Dallas, Texas
|
||
March 20, 2018
|
Net Reserves
|
Future Net Cash Flow ($)
|
|||||||||||||||
Category
|
Oil
(barrels)
|
Gas
(Mcf)
|
Total
|
Present Worth
at 10%
|
||||||||||||
Proved Developed
|
||||||||||||||||
Producing
|
774,467
|
0
|
$
|
12,850,871
|
$
|
7,065,215
|
||||||||||
Non-Producing
|
57,544
|
0
|
1,933,470
|
1,082,075
|
||||||||||||
Proved Undeveloped
|
38,354
|
0
|
175,669
|
22,472
|
||||||||||||
Total Proved(1)
|
870,365
|
0
|
$
|
14,960,010
|
$
|
8,169,762
|
(1)
|
The total proved values above may or may not match those values on the total proved summary page that follows this letter due to rounding by the economics program.
|
Very truly yours,
|
|
LaRoche Petroleum Consultants, Ltd.
|
|
State of Texas Registration Number F-1360
|
|
By LPC, Inc. General Partner
|
|
/s Stephen W. Daniel
|
|
Stephen W. Daniel
|
|
Licensed Professional Engineer
|
|
State of Texas No. 58581
|
|
SWD:ss
|
|
Job 17-908 SEC
|
Document And Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Mar. 26, 2018 |
Jun. 30, 2017 |
|
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | TENGASCO INC | ||
Entity Central Index Key | 0001001614 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 3.5 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 10,624,493 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Allowance for doubtful accounts | $ 14 | $ 14 |
Accounts receivable-related party, allowance for doubtful accounts | $ 159 | $ 159 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 10,619,924 | 6,097,723 |
Common stock, shares outstanding | 10,619,924 | 6,097,723 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements Of Operations - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Revenues | |||
Oil and gas properties | $ 4,683 | $ 4,113 | $ 5,631 |
Methane facility | 580 | 559 | 533 |
Total revenues | 5,263 | 4,672 | 6,164 |
Cost and expenses | |||
Production costs and taxes | 3,444 | 3,064 | 3,731 |
Methane facility costs | 489 | 357 | 493 |
Depreciation, depletion, and amortization | 924 | 1,139 | 2,676 |
General and administrative | 1,171 | 1,405 | 2,069 |
Impairment | 2,805 | 14,526 | |
Total cost and expenses | 6,028 | 8,770 | 23,495 |
Net loss from operations | (765) | (4,098) | (17,331) |
Other income (expense) | |||
Net interest expense | (53) | (102) | (80) |
Gain on sale of assets | 2 | 1 | 41 |
Total other (expense) | (51) | (101) | (39) |
Loss from operations before income tax | (816) | (4,199) | (17,370) |
Deferred income tax benefit (expense) | 242 | (7,351) | |
Net loss | $ (574) | $ (4,199) | $ (24,721) |
Net loss per share | |||
Basic | $ (0.06) | $ (0.69) | $ (4.06) |
Fully diluted | $ (0.06) | $ (0.69) | $ (4.06) |
Shares used in computing earnings per share | |||
Basic | 10,081,218 | 6,091,028 | 6,084,241 |
Diluted | 10,081,218 | 6,091,028 | 6,084,241 |
Description Of Business And Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description Of Business And Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description Of Business And Significant Accounting Policies | 1. Description of Business and Significant Accounting Policies Tengasco, Inc. (the “Company”) is a Delaware corporation. The Company is in the business of exploration for and production of oil and natural gas. The Company’s primary area of exploration and production is in Kansas. The Company’s wholly-owned subsidiary, Tengasco Pipeline Corporation (“TPC”) owned and operated a pipeline which it constructed to transport natural gas from the Company’s Swan Creek Field to customers in Kingsport, Tennessee. The Company sold all its pipeline assets on August 16, 2013. The Company’s wholly-owned subsidiary, Manufactured Methane Corporation (“MMC”) operated treatment and delivery facilities in Church Hill, Tennessee for the extraction of methane gas from a landfill for eventual sale as natural gas and for the generation of electricity. The Company sold all its methane facility assets on January 26, 2018. Principles of Consolidation The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company, and its wholly-owned subsidiaries after elimination of all significant intercompany transactions and balances. Use of Estimates The accompanying consolidated financial statements are prepared in conformity with U.S. GAAP which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. Revenue Recognition Revenues are recognized based on actual volumes of oil, natural gas, methane gas, and electricity sold to purchasers at a fixed or determinable price, when delivery has occurred and title has transferred, and collectability is reasonably assured. Crude oil is stored and at the time of delivery to the purchasers, revenues are recognized. There were no natural gas imbalances at December 31, 2017 or December 31, 2016. Methane gas and electricity sales meters are located at the Carter Valley landfill site and sales of electricity are recognized each month based on metered volumes. No methane gas was sold during the years ended December 31, 2017 or December 31, 2016. Effective January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers. The Company does not expect this to have a material impact on our consolidated financial statements or results of operations. Cash and Cash Equivalents Cash and cash equivalents include temporary cash investments with a maturity of ninety days or less at date of purchase.
Inventory Inventory consists of crude oil in tanks and is carried at lower of cost or market value. The cost component of the oil inventory is calculated using the average quarterly per barrel cost for the quarter ended December 31, 2017 and December 31, 2016, which includes production costs and taxes, allocated general and administrative costs, depletion, and allocated interest cost. The market component is calculated using the average December 2017 and December 2016 oil sales price for the Company’s Kansas properties. In addition, the Company also carried equipment and materials to be used in its Kansas operation and is carried at the lower of cost or market value. The cost component of the equipment and materials inventory represents the original cost paid for the equipment and materials. The market component is based on estimated sales value for similar equipment and materials at the end of each year. At December 31, 2017 and December 31, 2016, inventory consisted of the following (in thousands):
During 2016, the Company recorded an $88,000 impairment of its equipment and materials inventory. This impairment was a result of a 2016 decrease in the estimated sales value for similar equipment. Oil and Gas Properties The Company follows the full cost method of accounting for oil and gas property acquisition, exploration, and development activities. Under this method, all costs incurred in connection with acquisition, exploration, and development of oil and gas reserves are capitalized. Capitalized costs include lease acquisitions, seismic related costs, certain internal exploration costs, drilling, completion, and estimated asset retirement costs. The capitalized costs of oil and gas properties, plus estimated future development costs relating to proved reserves and estimated asset retirement costs which are not already included net of estimated salvage value, are amortized on the unit-of-production method based on total proved reserves. The Company has determined its reserves based upon reserve reports provided by LaRoche Petroleum Consultants Ltd. since 2009. The costs of unproved properties are excluded from amortization until the properties are evaluated, subject to an annual assessment of whether impairment has occurred. The Company had $0 and $106,000 in unevaluated properties as of December 31, 2017 and 2016, respectively. Proceeds from the sale of oil and gas properties are accounted for as reductions to capitalized costs unless such sales cause a significant change in the relationship between costs and the estimated value of proved reserves, in which case a gain or loss is recognized. At the end of each reporting period, the Company performs a “ceiling test” on the value of the net capitalized cost of oil and gas properties. This test compares the net capitalized cost (capitalized cost of oil and gas properties, net of accumulated depreciation, depletion and amortization and related deferred income taxes) to the present value of estimated future net revenues from oil and gas properties using an average price (arithmetic average of the beginning of month prices for the prior 12 months) and current cost discounted at 10% plus cost of properties not being amortized and the lower of cost or estimated fair value of unproven properties included in the cost being amortized (ceiling). If the net capitalized cost is greater than the ceiling, a write-down or impairment is required. A write-down of the carrying value of the asset is a non-cash charge that reduces earnings in the current period. Once incurred, a write-down may not be reversed in a later period. Asset Retirement Obligation An asset retirement obligation associated with the retirement of a tangible long-lived asset is recognized as a liability in the period incurred, with an associated increase in the carrying amount of the related long-lived asset, our oil and natural gas properties. The cost of the tangible asset, including the asset retirement cost, is depleted over the useful life of the asset. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. Accretion expense is recorded as “Production costs and taxes” in the Consolidated Statements of Operations. If the estimated future cost of the asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the long-lived asset. Revisions to estimated asset retirement obligations can result from changes in retirement cost estimates, revisions to estimated inflation rates, and changes in the estimated timing of abandonment. Manufactured Methane Facilities The Manufactured Methane facilities were placed into service in April 2009 and were being depreciated using the straight-line method over the useful life based on the estimated landfill closure date of December 2041. The Company sold all its methane facility assets, except the applicable U.S. patent, on January 26, 2018. Other Property and Equipment Other property and equipment is carried at cost. The Company provides for depreciation of other property and equipment using the straight-line method over the estimated useful lives of the assets which range from two to seven years. Net gains or losses on other property and equipment disposed of are included in operating income in the period in which the transaction occurs. Stock-Based Compensation The Company records stock-based compensation to employees based on the estimated fair value of the award at grant date. We recognize expense on a straight line basis over the requisite service period. For stock-based compensation that vests immediately, the Company recognizes the entire expense in the quarter in which the stock-based compensation is granted. The Company recorded compensation expense of $14,000 in 2017, $17,000 in 2016, and $12,000 in 2015. Accounts Receivable Accounts receivable consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date, uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 days of production, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied to the earliest unpaid items. We review accounts receivable periodically and reduce the carrying amount by a valuation allowance that reflects our best estimate of the amount that may not be collectible. An allowance was recorded at December 31, 2017 and 2016. At December 31, 2017 and 2016, accounts receivable consisted of the following (in thousands):
Income Taxes Income taxes are reported in accordance with U.S. GAAP, which requires the establishment of deferred tax accounts for all temporary differences between the financial reporting and tax bases of assets and liabilities, using currently enacted federal and state income tax rates. In addition, deferred tax accounts must be adjusted to reflect new rates if enacted into law.
At December 31, 2017, federal net operating loss carryforwards amounted to approximately $30.2 million which expire between 2019 and 2036. The net total deferred tax asset was $242,000 at December 31, 2017 and $0 at 2016. In 2017, The Company released a portion of the allowance related to the Company’s Minimum Tax Credit (“MTC”) as a result of the 2017 Tax Act. The Company recorded an allowance on the remaining deferred tax asset at December 31, 2017 primarily due to cumulative losses incurred during the 3 years ended December 31, 2017. The Company recorded a full allowance against the deferred tax asset at December 31, 2016 primarily due to cumulative losses incurred during the 3 years ended December 31, 2016. Realization of deferred tax assets is contingent on the generation of future taxable income. As a result, management considers whether it is more likely than not that all or a portion of such assets will be realized during periods when they are available, and if not, management provides a valuation allowance for amounts not likely to be recognized. Management periodically evaluates tax reporting methods to determine if any uncertain tax positions exist that would require the establishment of a loss contingency. A loss contingency would be recognized if it were probable that a liability has been incurred as of the date of the financial statements and the amount of the loss can be reasonably estimated. The amount recognized is subject to estimates and management’s judgment with respect to the likely outcome of each uncertain tax position. The amount that is ultimately incurred for an individual uncertain tax position or for all uncertain tax positions in the aggregate could differ from the amount recognized. Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. The Company’s primary business activities include oil sales to a limited number of customers in the state of Kansas. The related trade receivables subject the Company to a concentration of credit risk. The Company sells a majority of its crude oil primarily to two customers in Kansas. Although management believes that customers could be replaced in the ordinary course of business, if the present customers were to discontinue business with the Company, it may have a significant adverse effect on the Company’s projected results of operations. Revenue from the top three purchasers accounted for 75.3%, 13.1%, and 11.0% of total revenues for year ended December 31, 2017. Revenue from the top three purchasers accounted for 73.9%, 13.1%, and 12.0% of total revenues for year ended December 31, 2016. Revenue from the top three purchasers accounted for 74.5%, 16.1%, and 8.6% of total revenues for year ended December 31, 2015. As of December 31, 2017 and 2016, two of the Company’s oil purchasers accounted for 76.2% and 84.1%, respectively of accounts receivable, of which one oil purchaser accounted for 63.2% and 71.0%, respectively. Earnings per Common Share The Company reports basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share which include the effect of all potentially dilutive securities unless their impact is anti-dilutive. The following are reconciliations of the numerators and denominators of the Company’s basic and diluted earnings per share, (in thousands except for share and per share amounts):
For the years ended December 31, 2016 and 2015, 114 and 760 shares, respectively, were excluded from dilutive shares as they would have been anti-dilutive. The 114 and 760 shares excluded from the dilutive share calculation represents shares calculated using the treasury method for options issued to the Company’s directors in which the exercise price was lower than the average market price each quarter. In addition, options issued to the Company’s directors in which the exercise price was higher than the average market price each quarter was also excluded from diluted shares as they would have been anti-dilutive. Fair Value of Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payables, accrued liabilities and long term debt approximates fair value as of December 31, 2017 and 2016. Derivative Financial Instruments The Company uses derivative instruments to manage our exposure to commodity price risk on sales of oil production. The Company does not enter into derivative instruments for speculative trading purposes. The Company presents the fair value of derivative contracts on a net basis where the right to offset is provided for in our counterparty agreements. As of December 31, 2017 and 2016, the Company did not have any open derivatives. Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation with no effect on net income.
|
Recent Accounting Pronouncements |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014–09 Revenue from Contracts with Customers (“ASU 2014-09”). This ASU, as amended, superseded virtually all of the revenue recognition guidance in generally accepted accounting principles in the United States. The core principle of the five–step model is that an entity will recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. Entities can choose to apply the standard using either the full retrospective approach or a modified retrospective approach. The provisions of ASU 2014–09 are applicable to annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. We have implemented ASU 2014-09 as of January 1, 2018 using the modified retrospective approach. To date, the Company has identified the contracts with each of its customers and the separate performance obligations associated with each of these contracts. Based on the evaluation performed to date, we have identified similar performance obligations as compared with deliverables and separate units of account previously identified, and we do not expect any change related to the allocation of the transaction price and the timing of our revenue to have a material impact on our consolidated financial statements or results of operations. In February 2016, the FASB issued Update 2016-02 Leases (Topic 842). This guidance was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this Update is permitted for all entities. To date, the Company has identified each of its leases and is in the process of determining the impact of this new guidance on each of the identified leases. The Company does not expect this to impact its operating results or cash flows, however, the Company does expect to carry a portion of future lease costs as an asset and a liability on its balance sheet. In March 2016, the FASB issued Update 2016-09 Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The company implement this in 2017 with no impact on the Company’s operating results or cash flows. In August 2016, the FASB issued Update 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This amendment provides guidance on certain cash flow classification issues, thereby reducing the current and potential future diversity in practice. This guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company does not expect this to impact operating results or cash flows.
|
Related Party Transactions |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 3. Related Party Transactions On September 17, 2007, Hoactzin Partners, L.P. (“Hoactzin”) subscribed to a drilling program offered by the Company consisting of wells to be drilled on the Company’s Kansas Properties (the “Program”). Peter E. Salas, the Chairman of the Board of Directors of the Company, is the controlling person of Hoactzin and of Dolphin Offshore Partners, L.P., the Company’s largest shareholder. Hoactzin was also conveyed a net profits interest in the MMC facility at the Carter Valley municipal solid waste landfill owned and operated by Republic Services, Inc. in Church Hill, Tennessee where the Company installed a propriety combination of advanced gas treatment technology to extract the methane component of the purchased gas stream (the “Methane Project”). The net profits interest owned by Hoactzin during 2017 was 7.5% of the net profits as defined by agreement and takes into account specific costs and expenses as well as gross gas revenues for the project. As a result of the startup costs, monthly operating expenses, and gas production levels experienced, no net profits as defined were realized during the period from the project startup in April, 2009 through December 31, 2017 for payment to Hoactzin under the net profits interest. Since the start of 2014, there have been no methane gas sales or revenues, and consequently no net profits attributable to Hoactzin’s net profits interest. On December 18, 2007, the Company entered into a Management Agreement with Hoactzin to manage on behalf of Hoactzin all of its working interest in certain oil and gas properties owned by Hoactzin and located in the onshore Texas Gulf Coast, and offshore Texas and offshore Louisiana. As part of the consideration for the Company’s agreement to enter into the Management Agreement, Hoactzin granted to the Company an option to participate in up to a 15% working interest on a dollar for dollar cost basis in any new drilling or workover activities undertaken on Hoactzin’s managed properties during the term of the Management Agreement. The Management Agreement expired on December 18, 2012. The Company entered into a transition agreement with Hoactzin whereby the Company no longer performs operations, but administratively assists Hoactzin in becoming operator of record of these wells and transferring all bonds from the Company to Hoactzin. This assistance is primarily related to signing the necessary documents to effectuate this transition. Hoactzin and its controlling member are indemnifying the Company for any costs or liabilities incurred by the Company resulting from such assistance, or the fact that the Company is the operator of record on certain of these wells. As of the date of this Report, the Company continues to administratively assist Hoactzin with this transition process. As operator during the term of the Management Agreement that expired in 2012, the Company routinely contracted in its name for goods and services with vendors in connection with its operation of the Hoactzin properties. In practice, Hoactzin directly paid these invoices for goods and services that were contracted in the Company’s name. As a result of the operations performed in late 2009 and early 2010, Hoactzin had significant past due balances to several vendors, a portion of which were included on the Company’s balance sheet. Payables related to these past due and ongoing operations remained outstanding at December 31, 2017 and December 31, 2016 in the amount of $159,000. The Company has recorded the Hoactzin-related payables and the corresponding receivable from Hoactzin as of December 31, 2017 and December 31, 2016 in its Consolidated Balance Sheets under “Accounts payable – other” and “Accounts receivable – related party”. The outstanding balance of $159,000 should not increase in the future. However, Hoactzin has not made payments to reduce the $159,000 of past due balances from 2009 and 2010 since the second quarter of 2012. Based on these circumstances, the Company has elected to record an allowance in the amount of $159,000 for the balances outstanding at December 31, 2017 and December 31, 2016. This allowance was recorded in the Company’s Consolidated Balance Sheets under “Accounts receivable – related party”. The resulting balances recorded in the Company’s Consolidated Balance Sheets under “Accounts receivable – related party, less allowance for doubtful accounts of $159” are $0 at December 31, 2017 and December 31, 2016.
|
Oil And Gas Properties |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oil And Gas Properties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oil And Gas Properties | 4. Oil and Gas Properties The following table sets forth information concerning the Company’s oil and gas properties: (in thousands):
During the years ended December 31, 2017, 2016, and 2015, the Company recorded depletion expense of $796,000, $1.0 million, and $2.5 million, respectively. In addition, as a result of the ceiling test impairments during 2015 and the first three quarters of 2016, the accumulated depreciation, depletion, and amortization was been netted against the cost to reflect the post impairment value of the oil and gas properties. As no ceiling test impairment was recorded during the quarter ended December 31, 2016, nor during any of the quarters ended in 2017, these amounts were not netted against cost, but remained in accumulated depreciation, depletion, and amortization at December 31, 2017 and December 31, 2016.
|
Manufactured Methane Facilities |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Manufactured Methane Facilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Manufactured Methane Facilities | 5. Manufactured Methane Facilities
The following table sets forth information concerning the Manufactured Methane facilities: (in thousands):
During each of the years ended December 31, 2017, 2016, and 2015, the Company recorded depreciation expense of $62,000, $62,000, and $60,000, respectively.
|
Other Property And Equipment |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Property And Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Property And Equipment | 6. Other Property and Equipment Other property and equipment consisted of the following as of December 31, 2017: (in thousands)
Other property and equipment consisted of the following as of December 31, 2016: (in thousands)
The Company uses the straight-line method of depreciation for other property and equipment. During each of the years ended December 31, 2017, 2016, and 2015, the Company recorded depreciation expense of $66,000, $69,000, and $77,000, respectively.
|
Long-Term Debt |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | 7. Long-Term Debt Long-term debt consisted of the following: (in thousands)
Future debt payments to unrelated entities as of December 31, 2017 consisted of the following: (in thousands)
At December 31, 2017, the Company had a revolving credit facility with Prosperity Bank. This is the Company’s primary source to fund working capital and future capital spending. Under the credit facility, loans and letters of credit are available to the Company on a revolving basis in an amount outstanding not to exceed the lesser of $50 million or the Company’s borrowing base in effect from time to time. As of December 31, 2017, the Company’s borrowing base was $1.25 million. The borrowing base was increased to approximately $2.0 million with the March 21, 2018 amendment to the credit agreement. This increase was primarily related to increase in oil prices. The credit facility is secured by substantially all of the Company’s producing and non-producing oil and gas properties. The credit facility includes certain covenants with which the Company is required to comply. At December 31, 2017, these covenants include the following: (a) Current Ratio > 1:1; (b) Funded Debt to EBITDA < 3.5x; and (c) Interest Coverage > 3.0x. The Company was incompliance with all covenants each quarter end during 2017. On March 21, 2018, the Company’s senior credit facility with Prosperity Bank after Prosperity Bank’s most recent review of the Company’s currently owned producing properties was amended to increase the borrowing base to $2.0 million and the maturity date was extended to July 31, 2020. The borrowing base remains subject to the existing periodic redetermination provisions in the credit facility. The interest rate remained prime plus 0.50% per annum. This rate was 5.00% at the date of the amendment. The maximum line of credit of the Company under the Prosperity Bank credit facility remained $50 million and the Company had no outstanding borrowing under the facility as of March 28, 2018. The total borrowing by the Company under the facility at December 31, 2017 and December 31, 2016 was $0 and $2.4 million, respectively. As disclosed in previous Company filings, on February 13, 2017, 4,498,698 common shares were issued to participants of the Company’s rights offering which closed on February 2, 2017. Of the 4,498,698 common shares issued, 3,293,407 were issued to the Company’s directors, management, and affiliates. The Company received approximately $2.7 million in proceed from this offering. The proceeds were used primarily to pay off the Company’s credit facility. The next borrowing base review will take place in July 2018.
|
Liquidity |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Liquidity [Abstract] | |
Liquidity | 8. Liquidity The Company incurred a net loss of approximately $574,000 in 2017 and $4.2 million in 2016. In January 2018, the Company sold its methane facility for $2.65 million. During 2018, the Company believes its revenues as well as the proceeds received from the sale of the methane facility will be sufficient to fund operating and general and administrative expenses and to remain in compliance with its bank covenants. If revenues and the proceeds from the sale of the methane facility are not sufficient to fund these expenses or if the Company needs additional funds for capital spending, the Company could borrow funds against the credit facility as this facility currently has a $2.0 million borrowing base with no funds currently drawn. In addition, if required, the Company could also issue additional shares of stock and/or sell assets as needed to further fund operations.
|
Commitments And Contingencies |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 9. Commitments and Contingencies The Company as designated operator of the Hoactzin properties was administratively issued an “Incident of Non-Compliance” by BSEE during the quarter ended September 30, 2012 concerning one of Hoactzin’s operated properties. This action called for payment of a civil penalty of $386,000 for failure to provide, upon request, documentation to the BSEE evidencing that certain safety inspections and tests had been conducted in 2011. On July 14, 2015, the federal district court in the Eastern District of Louisiana affirmed the civil penalty without reduction. The Company did not further appeal. In the third quarter of 2015, the Company paid the civil penalty and statutory interest thereon from funds borrowed under its credit facility. In the fourth quarter of 2015, the Company received a return of the cash collateral previously provided to RLI Insurance Company. The Company has not advanced any funds to pay any obligations of Hoactzin and no borrowing capability of the Company has been used in connection with its obligations under the Management Agreement, except for those funds used to pay the civil penalty and interest thereon. During the second quarter of 2015, the Company received from Hoactzin a copy of an internal analysis prepared by Hoactzin setting out certain issues that Hoactzin may consider to form the basis of operational and other claims against the Company primarily under the Management Agreement. This analysis raised issues other than the “Incident of Non-Compliance” discussed above. The Company is discussing this analysis, as well as the civil penalty discussed above, with Hoactzin in an effort to determine whether there is possibility of a reasonable resolution of some or all of these matters on a negotiated basis. Cost Reduction Measures Commencing in the quarter ended March 31, 2015 and continuing through the quarter ended December 31, 2017, the Company implemented cost reduction measures including compensation reductions for each employee as well as members of the Board of Directors. These compensation reductions will remain in place until such time, if any, that the market price of crude oil, calculated as a thirty day trailing average of WTI postings as published by the U.S. Energy Information Administration meets or exceeds $70 per barrel when compensation shall revert to the levels in place before the reductions became effective. At such time, if any, that the market price of crude oil, calculated as a thirty day trailing average of WTI postings as published by the U.S. Energy Information Administration meets or exceeds $85 per barrel, all previous reductions made will be reimbursed, a portion which may be paid in stock, to each employee and members of the Board of Directors if is still employed by the Company or still a member of the Board of Directors. For the period January 1, 2015 through December 31, 2017, the reductions were approximately $395,000. The Company has not accrued any liabilities associated with these compensation reductions. Legal Proceedings The Company was named as a defendant in a breach of contract lawsuit titled Offshore Oilfield Services, Inc. v. Prime 8 Offshore, LLC and Tengasco, Inc., No 201657156 in the 270th District Court of Harris County, Texas (the “Litigation”) filed in October 2016. The Litigation was dismissed with prejudice to refiling by court order dated October 20, 2017. The Litigation sought recovery of approximately $188,000 in unpaid material and labor costs (plus plaintiff’s attorney’s fees and interest) for offshore operations contracted by Prime8 to be performed by the plaintiff Offshore Oilfield Services, Inc. (“Offshore Oilfield”) upon several properties owned by Hoactzin Partners, LP (“Hoactzin”) in the Gulf of Mexico under a master services agreement signed between Prime8 and Offshore Oilfield in May 2014 (“MSA”). Offshore Oilfield alleged breach of the MSA by Prime8 and Tengasco for failure to pay for materials provided or services performed in 2014 and 2015. Tengasco did not sign the MSA and had no knowledge of it or any other agreement utilized in operation by Hoactzin, Prime8, or any subcontractor on Hoactzin’s Gulf properties. No allegation was made in the Litigation that Tengasco directed or was involved in the performance of the services rendered or materials provided or failure to pay for same. Hoactzin, as opposed to Tengasco, directed Prime8 in the conduct of all matters described in the Litigation and either paid or failed to pay any and all charges for services and materials provided at all of Hoactzin’s properties in the Gulf owned and physically operated exclusively by Hoactzin. Hoactzin has also specifically agreed in writing to protect, defend, indemnify, and hold harmless Tengasco from and against any and all claims, demands, and causes of action made or awarded against Tengasco in the Litigation and to pay in the first instance all related losses, damages, costs and expenses relating to the Litigation including damages and plaintiff’s attorney’s fees awarded, and all litigation expenses incurred, the Company’s currently billed attorneys’ fees and court costs, relating to or arising out of Tengasco’s status as a defendant in the Litigation. Hoactzin has borne all the Company’s attorneys’ fees and all costs or obligations upon which the Litigation was settled by agreement. Accordingly, there is no further exposure to the Company as a result of the dismissal of the Litigation with prejudice to refiling.
|
Fair Value Measurements |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements FASB ASC 820, “Fair Value Measurements and Disclosures”, establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows: Level 1 – Observable inputs, such as unadjusted quoted prices in active markets, for substantially identical assets and liabilities. Level 2 – Observable inputs other than quoted prices within Level 1 for similar assets and liabilities. These include quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. If the asset or liability has a specified or contractual term, the input must be observable for substantially the full term of the asset or liability. Level 3 – Unobservable inputs that are supported by little or no market activity, generally requiring a significant amount of judgment by management. The assets or liabilities fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Further, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Upon completion of wells, the Company records an asset retirement obligation at fair value using Level 3 assumptions. Nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis upon impairment. The carrying amounts of other financial instruments including cash and cash equivalents, accounts receivable, account payables, accrued liabilities and long term debt in our balance sheet approximates fair value as of December 31, 2017 and December 31, 2016.
|
Asset Retirement Obligation |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation | 11. Asset Retirement Obligation Our asset retirement obligations represent the estimated present value of the amount we will incur to plug, abandon and remediate our producing properties at the end of their productive lives in accordance with applicable laws. The following table summarizes the Company’s Asset Retirement Obligation transactions for the years ended December 31, 2016 and 2017 (in thousands):
The revisions in estimated liabilities resulted from change in timing of wells to be plugged, change in inflation factor, and change in current plugging costs.
|
Stock And Stock Options |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock And Stock Options [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock And Stock Options | 12. Stock and Stock Options In October 2000, the Company approved a Stock Incentive Plan which was effective for a ten-year period commencing on October 25, 2000 and ending on October 24, 2010. The aggregate number of shares of Common Stock as to which options and Stock Appreciation Rights may be granted to participants under the original Plan was not to exceed 7,000,000. An amendment to the Plan increasing the number of shares that may be issued under the Plan by 3,500,000 shares and extending the Plan for another ten years was approved by the Company’s Board of Directors on February 1, 2008 and approved by the Company’s shareholders at the Annual Meeting of Stockholders held on June 2, 2008. On March 21, 2016 at a special meeting of the shareholders, the Plan was amended to permit grant of common stock. Options are not transferable, are exercisable for 3 months after voluntary resignation from the Company, and terminate immediately upon involuntary termination from the Company. The purchase price of shares subject to this Plan shall be determined at the time the options are granted, but are not permitted to be less than 85% of the fair market value of such shares on the date of grant. On March 21, 2016, the Company’s shareholders approved a 1 for 10 reverse stock split, effective with trading on March 24, 2016. All share and per share information in the following tables has been adjusted to reflect the impact of this reverse stock split. The following table summarizes stock option activity in 2017, 2016, and 2015:
The following table summarizes information about stock options outstanding and exercisable at December 31, 2017:
During 2017, the Company issued no additional options to each of the four non-executive directors. Compensation expense related to stock options was $3,000 in 2016, and $12,000 in 2015. This expense is recorded in “General and administrative” in the Consolidated Statements of Operations. The fair value of stock options used to compute share based compensation is the estimated present value at grant date using the Black Scholes option pricing model with weighted average assumptions for 2016 were an expected volatility of 122.7%; a risk free interest rate of 2.67%; and an expected option life remaining from 0.3 to 4.8 years. The weighted average assumptions for 2015 were an expected volatility of 61.7%; a risk free interest rate of 2.53%; and an expected option life remaining from 0.3 to 4.8 years. In addition, during 2017, the Company issued 23,503 shares of common stock to the Directors and to the CEO. The shares issued to Directors was in lieu of stock options and vested immediately. The shares issued to the CEO was in lieu of a portion of the quarterly cash payment paid for service as the Company’s CEO and vested immediately. The company recorded compensation expense of approximately $14,000 as a result of the stock issuances. During 2016, the Company issued 12,641 shares of common stock to the Directors and to the CEO. The shares issued to Directors was in lieu of stock options. The shares issued to the CEO was in lieu of a portion of the quarterly cash payment paid for service as the Company’s CEO. The company recorded compensation expense of approximately $14,000 as a result of the stock issuances
|
Income Taxes |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | 13. Income Taxes The Company did not have taxable income for the years ended December 31, 2017, 2016, and 2015. A reconciliation of the statutory U.S. Federal income tax and the income tax provision included in the accompanying consolidated statements of operations is as follows (in thousands):
Management has evaluated the positions taken in connection with the tax provisions and tax compliance for the years included in these financial statements. The Company believes that all of the positions it has taken will prevail on a more likely than not basis. As such no disclosure of such positions was deemed necessary. Management continuously estimates its ability to recognize a deferred tax asset related to prior period net operating loss carry forwards based on its anticipation of the likely timing and adequacy of future net income. At December 31, 2017, federal net operating loss carryforwards amounted to approximately $30.2 million which expire between 2019 and 2036. The total net deferred tax asset was $242,000 at December 31, 2017 and $0 at 2016. In 2017, the Company released a portion of the allowance related to its MTC as a result of the 2017 Tax Act. The Company recorded an allowance on the remaining deferred tax asset at December 31, 2017 primarily due to cumulative losses incurred during the 3 years ended December 31, 2017. The Company recorded a full allowance against the deferred tax asset at December 31, 2016 primarily due to cumulative losses incurred during the 3 years ended December 31, 2016. The total valuation allowance at December 31, 2017 was $12.1 million, $16.6 million at December 31, 2016, and $15.0 million at December 31, 2015. As the Company adopted ASU 2016-09 during the first quarter of 2017, the excess tax benefits associated with certain stock compensation deductions that have not been previously recognized are recorded to retained earnings net of valuation allowance. The effect on the valuation allowance on this adoption is an increase of $687,000 recorded to retained earnings. As of December 31, 2017, the Company had net operating loss carry forwards of approximately $30.2 million which will expire between 2019 and 2036 if not utilized. Our open tax years include all returns filed for 2014 and later. In addition, any of the Company’s NOLs for tax reporting purposes are still subject to review and adjustment by both the Company and the IRS to the extent such NOLs should be carried forward into an open tax year. Comprehensive tax reform legislation enacted in December 2017, commonly referred to as the Tax Cuts and Jobs Act (the “2017 Tax Act”), makes significant changes to U.S. federal income tax laws. The 2017 Tax Act, among other things, reduces the corporate income tax rate to 21%, repeal of the corporate Alternative Minimum tax, partially limits the deductibility of business interest expense and net operating losses, and allows the immediate deduction of certain new investments instead of deductions for depreciation expense over time. The Company has not completed its determination of the accounting implications of the 2017 Tax Act on its tax accruals. However the Company has reasonably estimated the effects of the 2017 Tax Act and recorded provisional amounts in its financial statements as of December 31, 2017. The Company has recorded the following provisional amounts for the effects of the 2017 Tax Act. · Beginning January 1, 2018, the U.S. corporate income tax rate will be 21%. The Company is required to recognize the impacts of this rate change on its deferred tax assets and liabilities in the period enacted. The provisional tax effect of the change in tax rate is a decrease to the deferred tax asset of $5.3 million. However, as the Company has a full valuation allowance on its net deferred tax asset, the deferred tax recognized due to the change in rate will be offset with a change in the valuation allowance. Therefore, there was no overall impact to the Financial Statements in 2017 due to this change in rate. · The 2017 Tax Act also repealed the corporate AMT for tax years beginning on or after January 1, 2018 and provides for existing alternative minimum tax credit carryovers to be refunded beginning in 2018. The Company has approximately $0.3 million in refundable credits, and it expects that a substantial portion will be refunded between 2018 and 2021. As such, most of the valuation allowance in place at the end of 2017 related to these credits has been released and a deferred tax asset of $0.2 million is reflected related to the expected benefit in future years. The Company will continue to evaluate the 2017 Tax Act and adjust the provisional amounts as additional information is obtained. The ultimate impact of the 2017 Tax Act may differ from the provisional amounts recorded due to additional information becoming available, changes in interpretation of the 2017 Tax Act as well as additional regulatory guidance that may be issued. The Company’s deferred tax assets and liabilities are as follows: (in thousands)
|
Quarterly Data And Share Information |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Data And Share Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Data And Share Information | 14. Quarterly Data and Share Information (unaudited) The following tables sets forth for the fiscal periods indicated, selected consolidated financial data (In thousands, except per share data)
|
Supplemental Oil And Gas Information |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Oil And Gas Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Oil And Gas Information | 15. Supplemental Oil and Gas Information (unaudited) Information with respect to the Company’s oil and gas producing activities is presented in the following tables. Estimates of reserves quantities, as well as future production and discounted cash flows before income taxes, were determined by LaRoche Petroleum Consultants Ltd. All of the Company’s reserves were located in the United States. Capitalized Costs Related to Oil and Gas Producing Activities The table below reflects our capitalized costs related to our oil and gas producing activities at December 31, 2017 and 2016 (in thousands):
As a result of the ceiling test impairments during 2015 and the first three quarters of 2016, the accumulated depreciation, depletion, and amortization was been netted against the cost to reflect the post impairment value of the oil and gas properties. As no ceiling test impairment was recorded during the quarter ended December 31, 2016, nor during any of the quarters ended in 2017, these amounts were not netted against cost, but remained in accumulated depreciation, depletion, and amortization at December 31, 2017 and December 31, 2016. Oil and Gas Related Costs The following table sets forth information concerning costs incurred, including accruals, related to the Company’s oil and gas property acquisition, exploration and development activities (in thousands):
Results of Operations from Oil and Gas Producing Activities The following table sets forth the Company’s results of operations from oil and gas producing activities (in thousands):
In the presentation above, no deduction has been made for indirect costs such as general corporate overhead or interest expense. No income taxes are reflected above due to the Company’s operating tax loss carry-forward position. Estimated Quantities of Oil and Gas Reserves The following table sets forth the Company’s net proved oil and gas reserves and the changes in net proved oil and gas reserves for the years ended December 31, 2015, 2016 and 2017. All of the Company’s proved reserves are located in the United States of America.
The Company’s Proved Undeveloped Reserves at December 31, 2017 included 3 locations, and December 31, 2016 and 2015 included no locations as compared to 27 locations at December 31, 2014. During 2016 and 2015, all Proved Undeveloped locations were removed from the Company’s Proved Reserves primarily due to the low oil prices experienced during these years. During 2017, increases in prices allowed the company to include 3 Proved Undeveloped locations in its December 31, 2017 reserves. The following table identifies the reserve value by category and the respective present values, before income taxes, discounted at 10% as a percentage of total proved reserves (in thousands):
Standardized Measure of Discounted Future Net Cash Flows The standardized measure of discounted future net cash flows from the Company’s proved oil and gas reserves is presented in the following table (in thousands):
The following are the principal sources of change in the standardized measure of discounted future net cash flows from the Company’s proved oil and gas reserves (in thousands):
Estimated future net cash flows represent an estimate of future net revenues from the production of proved reserves using average sales prices, along with estimates of the operating costs, production taxes and future development and abandonment cost (less salvage value) necessary to produce such reserves. Future income taxes were calculated by applying the statutory federal and state income tax rates to pre-tax future net cash flows, net of the tax basis of the properties and utilizing available tax loss carryforwards related to oil and gas operations. The oil prices used for December 31, 2017, 2016, and 2015 were $45.83, and $37.35, and $43.98 per barrel of oil, respectively. The Company’s proved reserves as of December 31, 2017, 2016 and 2015 were measured by using commodity prices based on the twelve month unweighted arithmetic average of the first day of the month price for the period January through December. No deduction has been made for depreciation, depletion or any indirect costs such as general corporate overhead or interest expense.
|
Subsequent Events |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events On January 2, 2018, 4,569 common shares were issued in the aggregate to the Company’s four directors and CFO and interim CEO. This issuance will result in compensation expense of approximately $4,000 to be recorded during the quarter ended March 31, 2018.
On January 26, 2018, the Company closed a sale to Tennessee Renewable Group LLC for all of the Company’s Manufactured Methane physical facilities for $2.65 million. In the quarter ended March 31, 2018, the Company expects to record a gain on the sale of these assets of approximately $1.1 million. On March 21, 2018, the Company’s senior credit facility with Prosperity Bank after Prosperity Bank’s most recent review of the Company’s currently owned producing properties was amended to increase the borrowing base to $2.0 million and the maturity date was extended to July 31, 2020.
|
Description Of Business And Significant Accounting Policies (Policy) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description Of Business And Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles Of Consolidation | Principles of Consolidation The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company, and its wholly-owned subsidiaries after elimination of all significant intercompany transactions and balances.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Use Of Estimates | Use of Estimates The accompanying consolidated financial statements are prepared in conformity with U.S. GAAP which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Revenues are recognized based on actual volumes of oil, natural gas, methane gas, and electricity sold to purchasers at a fixed or determinable price, when delivery has occurred and title has transferred, and collectability is reasonably assured. Crude oil is stored and at the time of delivery to the purchasers, revenues are recognized. There were no natural gas imbalances at December 31, 2017 or December 31, 2016. Methane gas and electricity sales meters are located at the Carter Valley landfill site and sales of electricity are recognized each month based on metered volumes. No methane gas was sold during the years ended December 31, 2017 or December 31, 2016. Effective January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers. The Company does not expect this to have a material impact on our consolidated financial statements or results of operations.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash And Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include temporary cash investments with a maturity of ninety days or less at date of purchase.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory | Inventory Inventory consists of crude oil in tanks and is carried at lower of cost or market value. The cost component of the oil inventory is calculated using the average quarterly per barrel cost for the quarter ended December 31, 2017 and December 31, 2016, which includes production costs and taxes, allocated general and administrative costs, depletion, and allocated interest cost. The market component is calculated using the average December 2017 and December 2016 oil sales price for the Company’s Kansas properties. In addition, the Company also carried equipment and materials to be used in its Kansas operation and is carried at the lower of cost or market value. The cost component of the equipment and materials inventory represents the original cost paid for the equipment and materials. The market component is based on estimated sales value for similar equipment and materials at the end of each year. At December 31, 2017 and December 31, 2016, inventory consisted of the following (in thousands):
During 2016, the Company recorded an $88,000 impairment of its equipment and materials inventory. This impairment was a result of a 2016 decrease in the estimated sales value for similar equipment.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oil And Gas Properties | Oil and Gas Properties The Company follows the full cost method of accounting for oil and gas property acquisition, exploration, and development activities. Under this method, all costs incurred in connection with acquisition, exploration, and development of oil and gas reserves are capitalized. Capitalized costs include lease acquisitions, seismic related costs, certain internal exploration costs, drilling, completion, and estimated asset retirement costs. The capitalized costs of oil and gas properties, plus estimated future development costs relating to proved reserves and estimated asset retirement costs which are not already included net of estimated salvage value, are amortized on the unit-of-production method based on total proved reserves. The Company has determined its reserves based upon reserve reports provided by LaRoche Petroleum Consultants Ltd. since 2009. The costs of unproved properties are excluded from amortization until the properties are evaluated, subject to an annual assessment of whether impairment has occurred. The Company had $0 and $106,000 in unevaluated properties as of December 31, 2017 and 2016, respectively. Proceeds from the sale of oil and gas properties are accounted for as reductions to capitalized costs unless such sales cause a significant change in the relationship between costs and the estimated value of proved reserves, in which case a gain or loss is recognized. At the end of each reporting period, the Company performs a “ceiling test” on the value of the net capitalized cost of oil and gas properties. This test compares the net capitalized cost (capitalized cost of oil and gas properties, net of accumulated depreciation, depletion and amortization and related deferred income taxes) to the present value of estimated future net revenues from oil and gas properties using an average price (arithmetic average of the beginning of month prices for the prior 12 months) and current cost discounted at 10% plus cost of properties not being amortized and the lower of cost or estimated fair value of unproven properties included in the cost being amortized (ceiling). If the net capitalized cost is greater than the ceiling, a write-down or impairment is required. A write-down of the carrying value of the asset is a non-cash charge that reduces earnings in the current period. Once incurred, a write-down may not be reversed in a later period.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation | Asset Retirement Obligation An asset retirement obligation associated with the retirement of a tangible long-lived asset is recognized as a liability in the period incurred, with an associated increase in the carrying amount of the related long-lived asset, our oil and natural gas properties. The cost of the tangible asset, including the asset retirement cost, is depleted over the useful life of the asset. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. Accretion expense is recorded as “Production costs and taxes” in the Consolidated Statements of Operations. If the estimated future cost of the asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the long-lived asset. Revisions to estimated asset retirement obligations can result from changes in retirement cost estimates, revisions to estimated inflation rates, and changes in the estimated timing of abandonment.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Manufactured Methane Facilities | Manufactured Methane Facilities The Manufactured Methane facilities were placed into service in April 2009 and were being depreciated using the straight-line method over the useful life based on the estimated landfill closure date of December 2041. The Company sold all its methane facility assets, except the applicable U.S. patent, on January 26, 2018.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Property And Equipment | Other Property and Equipment Other property and equipment is carried at cost. The Company provides for depreciation of other property and equipment using the straight-line method over the estimated useful lives of the assets which range from two to seven years. Net gains or losses on other property and equipment disposed of are included in operating income in the period in which the transaction occurs.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Company records stock-based compensation to employees based on the estimated fair value of the award at grant date. We recognize expense on a straight line basis over the requisite service period. For stock-based compensation that vests immediately, the Company recognizes the entire expense in the quarter in which the stock-based compensation is granted. The Company recorded compensation expense of $14,000 in 2017, $17,000 in 2016, and $12,000 in 2015.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable | Accounts Receivable Accounts receivable consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date, uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 days of production, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied to the earliest unpaid items. We review accounts receivable periodically and reduce the carrying amount by a valuation allowance that reflects our best estimate of the amount that may not be collectible. An allowance was recorded at December 31, 2017 and 2016. At December 31, 2017 and 2016, accounts receivable consisted of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Income taxes are reported in accordance with U.S. GAAP, which requires the establishment of deferred tax accounts for all temporary differences between the financial reporting and tax bases of assets and liabilities, using currently enacted federal and state income tax rates. In addition, deferred tax accounts must be adjusted to reflect new rates if enacted into law.
At December 31, 2017, federal net operating loss carryforwards amounted to approximately $30.2 million which expire between 2019 and 2036. The net total deferred tax asset was $242,000 at December 31, 2017 and $0 at 2016. In 2017, The Company released a portion of the allowance related to the Company’s Minimum Tax Credit (“MTC”) as a result of the 2017 Tax Act. The Company recorded an allowance on the remaining deferred tax asset at December 31, 2017 primarily due to cumulative losses incurred during the 3 years ended December 31, 2017. The Company recorded a full allowance against the deferred tax asset at December 31, 2016 primarily due to cumulative losses incurred during the 3 years ended December 31, 2016. Realization of deferred tax assets is contingent on the generation of future taxable income. As a result, management considers whether it is more likely than not that all or a portion of such assets will be realized during periods when they are available, and if not, management provides a valuation allowance for amounts not likely to be recognized. Management periodically evaluates tax reporting methods to determine if any uncertain tax positions exist that would require the establishment of a loss contingency. A loss contingency would be recognized if it were probable that a liability has been incurred as of the date of the financial statements and the amount of the loss can be reasonably estimated. The amount recognized is subject to estimates and management’s judgment with respect to the likely outcome of each uncertain tax position. The amount that is ultimately incurred for an individual uncertain tax position or for all uncertain tax positions in the aggregate could differ from the amount recognized.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration Of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. The Company’s primary business activities include oil sales to a limited number of customers in the state of Kansas. The related trade receivables subject the Company to a concentration of credit risk. The Company sells a majority of its crude oil primarily to two customers in Kansas. Although management believes that customers could be replaced in the ordinary course of business, if the present customers were to discontinue business with the Company, it may have a significant adverse effect on the Company’s projected results of operations. Revenue from the top three purchasers accounted for 75.3%, 13.1%, and 11.0% of total revenues for year ended December 31, 2017. Revenue from the top three purchasers accounted for 73.9%, 13.1%, and 12.0% of total revenues for year ended December 31, 2016. Revenue from the top three purchasers accounted for 74.5%, 16.1%, and 8.6% of total revenues for year ended December 31, 2015. As of December 31, 2017 and 2016, two of the Company’s oil purchasers accounted for 76.2% and 84.1%, respectively of accounts receivable, of which one oil purchaser accounted for 63.2% and 71.0%, respectively.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | Earnings per Common Share The Company reports basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share which include the effect of all potentially dilutive securities unless their impact is anti-dilutive. The following are reconciliations of the numerators and denominators of the Company’s basic and diluted earnings per share, (in thousands except for share and per share amounts):
For the years ended December 31, 2016 and 2015, 114 and 760 shares, respectively, were excluded from dilutive shares as they would have been anti-dilutive. The 114 and 760 shares excluded from the dilutive share calculation represents shares calculated using the treasury method for options issued to the Company’s directors in which the exercise price was lower than the average market price each quarter. In addition, options issued to the Company’s directors in which the exercise price was higher than the average market price each quarter was also excluded from diluted shares as they would have been anti-dilutive.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payables, accrued liabilities and long term debt approximates fair value as of December 31, 2017 and 2016.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative instruments to manage our exposure to commodity price risk on sales of oil production. The Company does not enter into derivative instruments for speculative trading purposes. The Company presents the fair value of derivative contracts on a net basis where the right to offset is provided for in our counterparty agreements. As of December 31, 2017 and 2016, the Company did not have any open derivatives.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation with no effect on net income.
|
Description Of Business And Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description Of Business And Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliations Of The Numerators And Denominators On Basic And Diluted Earnings Per Share |
|
Oil And Gas Properties (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oil And Gas Properties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Oil And Gas Properties |
|
Manufactured Methane Facilities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Manufactured Methane Facilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Methane Facilities |
|
Other Property And Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Property And Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Other Property And Equipment | Other property and equipment consisted of the following as of December 31, 2017: (in thousands)
Other property and equipment consisted of the following as of December 31, 2016: (in thousands)
|
Long-Term Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Long-Term Debt |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Future Debt Payments |
|
Asset Retirement Obligation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation Transactions |
|
Stock And Stock Options (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock And Stock Options [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Stock Option Activity |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Stock Options Outstanding And Exercisable |
|
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation Of The Statutory U.S. Federal Income Tax And The Income Tax Provision |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Deferred Tax Assets And Liabilities |
|
Quarterly Data And Share Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Data And Share Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Quarterly Data |
|
Supplemental Oil And Gas Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Oil And Gas Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Capitalized Costs Related To Oil And Gas Producing Activities |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Oil And Gas Property Acquisition, Exploration And Development |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Results Of Operations From Oil And Gas Producing Activities |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Net Proved Oil And Gas Reserves And The Changes In Net Proved Oil And Gas Reserves |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Reserve Value By Category And The Respective Present Values, Before Income Taxes, Discounted At 10% As A Percentage Of Total Proved Reserves |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Standardized Measure Of Discounted Futures Net Cash Flows From Proved Oil And Gas Reserves |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Changes In The Standardized Measure Of Discounted Future Net Cash Flows From Proved Oil And Gas Reserves |
|
Description Of Business And Significant Accounting Policies (Inventory) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Description Of Business And Significant Accounting Policies [Abstract] | ||
Oil - carried at lower of cost or market | $ 436 | $ 505 |
Equipment and materials - carried at market | 105 | 122 |
Total inventory | $ 541 | $ 627 |
Description Of Business And Significant Accounting Policies (Accounts Receivable) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (14) | $ (14) |
Total accounts receivable | 608 | 490 |
Revenue [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 570 | 476 |
Joint Interest [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 23 | 21 |
Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 29 | $ 7 |
Description Of Business And Significant Accounting Policies (Reconciliations Of The Numerators And Denominators On Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Earnings Per Common Share [Abstract] | |||||||||||
Net loss | $ 132 | $ (315) | $ (178) | $ (213) | $ (260) | $ (908) | $ (1,627) | $ (1,404) | $ (574) | $ (4,199) | $ (24,721) |
Weighted average shares - basic | 10,081,218 | 6,091,028 | 6,084,241 | ||||||||
Weighted average shares - dilutive | 10,081,218 | 6,091,028 | 6,084,241 | ||||||||
Basic | $ 0.02 | $ (0.03) | $ (0.02) | $ (0.03) | $ (0.04) | $ (0.15) | $ (0.27) | $ (0.23) | $ (0.06) | $ (0.69) | $ (4.06) |
Dilutive | $ (0.06) | $ (0.69) | $ (4.06) |
Oil And Gas Properties (Narrative) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Oil And Gas Properties [Abstract] | ||||||||
Depletion expense | $ 796,000 | $ 1,000,000 | $ 2,500,000 | |||||
Impairment | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 2,805,000 | $ 14,526,000 |
Oil And Gas Properties (Schedule Of Oil And Gas Properties) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Oil And Gas Properties [Abstract] | ||
Oil and gas properties | $ 5,704 | $ 5,315 |
Unevaluated properties | 106 | |
Accumulated depreciation, depletion, and amortization | (984) | (196) |
Oil and gas properties, net | $ 4,720 | $ 5,225 |
Manufactured Methane Facilities (Narrative) (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Methane Project [Line Items] | |||
Depreciation expense | $ 66,000 | $ 69,000 | $ 77,000 |
Methane Project [Member] | |||
Methane Project [Line Items] | |||
Depreciation expense | $ 62,000 | $ 62,000 | $ 60,000 |
Manufactured Methane Facilities (Methane Facilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Manufactured Methane facilities, net of impairment | $ 401 | $ 422 |
Accumulated depreciation | (266) | (282) |
Manufactured Methane facilities, net | 135 | 140 |
Methane Project [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Manufactured Methane facilities, net of impairment | 1,681 | 1,681 |
Accumulated depreciation | (184) | (122) |
Manufactured Methane facilities, net | $ 1,497 | $ 1,559 |
Long-Term Debt (Schedule Of Long-term Debt) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Line of Credit Facility [Line Items] | ||
Notes payable to a bank, with interest only payment until maturity | $ 2,400 | |
Installment notes bearing interest at the rate of 4.16% to 4.6% per annum collateralized by vehicles with monthly payments including interest, insurance and maintenance of approximately $10 | $ 90 | $ 102 |
Periodic payments including interest, insurance and maintenance | $ 10 | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate per annum | 4.60% | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate per annum | 4.16% |
Long-Term Debt (Schedule Of Future Debt Payments) (Details) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Long-Term Debt [Line Items] | |
2018 | $ 41 |
2019 | 49 |
Total long-term debt | 90 |
Company Vehicles [Member] | |
Long-Term Debt [Line Items] | |
2018 | 41 |
2019 | 49 |
Total long-term debt | $ 90 |
Liquidity (Narrative) (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 26, 2018 |
Jan. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Mar. 23, 2018 |
Mar. 21, 2018 |
|
Liquidity [Line Items] | |||||||||||||||
Net loss from operations | $ 132,000 | $ (315,000) | $ (178,000) | $ (213,000) | $ (260,000) | $ (908,000) | $ (1,627,000) | $ (1,404,000) | $ (574,000) | $ (4,199,000) | $ (24,721,000) | ||||
Sale of facility | 7,000 | $ 44,000 | |||||||||||||
Prosperity Bank [Member] | |||||||||||||||
Liquidity [Line Items] | |||||||||||||||
Credit facility current borrowing capacity | $ 1,250,000 | $ 1,250,000 | |||||||||||||
Subsequent Event [Member] | |||||||||||||||
Liquidity [Line Items] | |||||||||||||||
Sale of facility | $ 2,650,000 | $ 2,650,000 | |||||||||||||
Subsequent Event [Member] | Prosperity Bank [Member] | |||||||||||||||
Liquidity [Line Items] | |||||||||||||||
Credit facility current borrowing capacity | $ 2,000,000 | ||||||||||||||
Current funds drawn | $ 0 |
Commitments And Contingencies (Narrative) (Details) |
12 Months Ended | |
---|---|---|
Dec. 31, 2017
USD ($)
$ / bbl
|
Sep. 30, 2012
USD ($)
|
|
Loss Contingencies [Line Items] | ||
Decrease in compensation | $ 395,000 | |
Period of trailing average of WTI | 30 days | |
Incidence Of Non-Compliance [Member] | ||
Loss Contingencies [Line Items] | ||
Maximum potential loss | $ 386,000 | |
Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Requested recovery amount | $ 188,000 | |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Compensation reduction until WTI posting | $ / bbl | 70 | |
Compensation reimbursement at WTI posting | $ / bbl | 85 |
Asset Retirement Obligation (Asset Retirement Obligation Transactions) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Asset Retirement Obligation [Abstract] | |||
Balance | $ 2,046 | $ 2,222 | |
Accretion expense | 141 | 143 | $ 126 |
Liabilities incurred | 1 | 2 | |
Liabilities settled | (45) | (86) | |
Liabilities sold properties | (11) | (25) | |
Revisions in estimated liabilities | 138 | (210) | 112 |
Balance | $ 2,270 | $ 2,046 | $ 2,222 |
Stock And Stock Options (Schedule Of Stock Option Activity) (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Stock And Stock Options [Abstract] | |||
Shares, Outstanding beginning of year | 37,500 | 45,625 | 90,025 |
Shares, Granted | 2,500 | 10,000 | |
Shares, Exercised | |||
Shares, Expired/cancelled | (7,500) | (10,625) | (54,400) |
Shares, Outstanding end of year | 30,000 | 37,500 | 45,625 |
Weighted Average Exercise Price, Outstanding beginning of year | $ 4.70 | $ 6.10 | $ 5.70 |
Weighted Average Exercise Price, Granted | 1.20 | 2.40 | |
Weighted Average Exercise Price, Exercised | |||
Weighted Average Exercise Price, Expired/cancelled | 8.40 | 9.88 | 4.80 |
Weighted Average Exercise Price, Outstanding end of year | $ 3.73 | $ 4.70 | $ 6.10 |
Exercisable, end of year, Shares | 30,000 | 37,500 | 45,625 |
Exercisable, end of year, Weighted Average Exercise Price | $ 3.73 | $ 4.70 | $ 6.10 |
Income Taxes (Narrative) (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Taxes [Line Items] | ||||
Valuation allowance | $ 12,067,000 | $ 16,569,000 | $ 15,000,000 | |
Provision or benefit for income taxes | (242,000) | $ 7,351,000 | ||
Federal net operating loss carryforwards | 30,200,000 | |||
Deferred tax asset | $ 242,000 | |||
Federal tax rate | 34.00% | 34.00% | 34.00% | |
Deferred tax asset | $ 200,000 | |||
Refundable credits | 300,000 | |||
Decrease in deferred tax asset | 5,300,000 | |||
Accounting Standards Update 2016-09 [Member] | ||||
Income Taxes [Line Items] | ||||
Increase to retained earnings | $ 687,000 | |||
Scenario, Plan [Member] | ||||
Income Taxes [Line Items] | ||||
Federal tax rate | 21.00% | |||
Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Federal net operating loss carryforwards expiration between, years | Dec. 31, 2019 | |||
Maximum [Member] | ||||
Income Taxes [Line Items] | ||||
Federal net operating loss carryforwards expiration between, years | Dec. 31, 2036 |
Income Taxes (Reconciliation Of The Statutory U.S. Federal Income Tax And The Income Tax Provision) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Taxes [Abstract] | |||
Statutory rate | 34.00% | 34.00% | 34.00% |
Tax (benefit) expense at statutory rate | $ (278) | $ (1,428) | $ (5,906) |
State income tax (benefit) expense | (42) | (216) | (893) |
Permanent difference | 1 | 1 | 3 |
Impact of 2017 Tax Act | 5,319 | ||
Other | 14 | ||
Net change in deferred tax asset valuation allowance | (5,256) | $ 1,643 | 14,147 |
Total income tax provision (benefit) | $ (242) | $ 7,351 |
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|
Income Taxes [Abstract] | |||
Bad debt | $ 68 | ||
Valuation allowance | (68) | ||
Total deferred tax assets - current | |||
Net operating loss carryforwards | 8,187 | 10,339 | |
Oil and gas properties | 2,735 | 4,445 | |
Property, Plant and Equipment | 419 | 646 | |
Asset retirement obligation | 616 | 801 | |
Tax credits | 260 | 260 | |
Miscellaneous | 92 | 78 | |
Valuation allowance | (12,067) | (16,569) | $ (15,000) |
Total deferred tax assets - noncurrent | 242 | ||
Net deferred tax asset | $ 242 |
Quarterly Data And Share Information (Schedule Of Quarterly Data) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Quarterly Data And Share Information [Abstract] | |||||||||||
Revenues | $ 1,422 | $ 1,179 | $ 1,318 | $ 1,344 | $ 1,216 | $ 1,242 | $ 1,282 | $ 932 | |||
Net income (loss) from continuing operations | $ 132 | $ (315) | $ (178) | $ (213) | $ (260) | $ (908) | $ (1,627) | $ (1,404) | $ (574) | $ (4,199) | $ (24,721) |
Loss per common share from continuing operations | $ 0.02 | $ (0.03) | $ (0.02) | $ (0.03) | $ (0.04) | $ (0.15) | $ (0.27) | $ (0.23) | $ (0.06) | $ (0.69) | $ (4.06) |
Supplemental Oil And Gas Information (Narrative) (Details) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2017
item
$ / bbl
|
Dec. 31, 2016
item
$ / bbl
|
Dec. 31, 2015
item
$ / bbl
|
Dec. 31, 2014
item
|
|
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ||||
Proved undeveloped reserve locations | item | 3 | 0 | 0 | 27 |
Barrel Of Oil [Member] | ||||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ||||
Price | $ / bbl | 45.83 | 37.35 | 43.98 |
Supplemental Oil And Gas Information (Schedule Of Capitalized Costs Related To Oil And Gas Producing Activities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Supplemental Oil And Gas Information [Abstract] | ||
Proved oil and gas properties | $ 5,704 | $ 5,315 |
Unproved properties | 106 | |
Total proved and unproved oil and gas properties | 5,704 | 5,421 |
Less accumulated depreciation, depletion and amortization | (984) | (196) |
Net oil and gas properties | $ 4,720 | $ 5,225 |
Supplemental Oil And Gas Information (Schedule Of Oil And Gas Property Acquisition, Exploration And Development) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Supplemental Oil And Gas Information [Abstract] | |||
Property acquisitions unproved | $ 93 | $ 8 | $ 90 |
Exploration cost | 69 | 396 | 22 |
Development cost | 252 | ||
Total | $ 162 | $ 404 | $ 364 |
Supplemental Oil And Gas Information (Schedule Of Results Of Operations From Oil And Gas Producing Activities) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Supplemental Oil And Gas Information [Abstract] | |||
Revenues | $ 4,683 | $ 4,113 | $ 5,631 |
Production costs and taxes | (3,444) | (3,064) | (3,731) |
Depreciation, depletion and amortization | (796) | (1,009) | (2,538) |
Impairment | (2,805) | (14,526) | |
Income (loss) from oil and gas producing activities | $ 443 | $ (2,765) | $ (15,164) |
Supplemental Oil And Gas Information (Schedule Of Standardized Measure Of Discounted Futures Net Cash Flows From Proved Oil And Gas Reserves) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Supplemental Oil And Gas Information [Abstract] | ||||
Future cash inflows | $ 39,889 | $ 27,253 | $ 38,566 | |
Future production costs and taxes | (23,343) | (16,270) | (23,500) | |
Future development costs | (1,586) | (553) | (951) | |
Future net cash flows | 14,960 | 10,430 | 14,115 | |
Discount at 10% for timing of cash flows | (6,790) | (4,615) | (5,828) | |
Standardized measure of discounted future net cash flows | $ 8,170 | $ 5,815 | $ 8,287 | $ 34,531 |
Supplemental Oil And Gas Information (Schedule Of Changes In The Standardized Measure Of Discounted Future Net Cash Flows From Proved Oil And Gas Reserves) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Supplemental Oil And Gas Information [Abstract] | |||
Balance, beginning of year | $ 5,815 | $ 8,287 | $ 34,531 |
Sales, net of production costs and taxes | (1,239) | (2,037) | (1,901) |
Discoveries and extensions, net of costs | 123 | 35 | 5 |
Purchase of reserves in place | |||
Sale of reserves in place | (10) | ||
Net changes in prices and production costs | 1,780 | (863) | (16,009) |
Revisions of quantity estimates | 1,611 | (412) | (22,431) |
Previously estimated development cost incurred during the year | |||
Changes in future development costs | (228) | 196 | 4,890 |
Changes in timing and other | (164) | (20) | (56) |
Accretion of discount | 472 | 639 | 3,373 |
Net change in income taxes | 5,885 | ||
Balance, end of year | $ 8,170 | $ 5,815 | $ 8,287 |
E.XE[:_3+KK^GQD=[YIJ]/E.')^/1-=_@]02P,$% @
M](5\3$V$ *[Y0VRSIWW=L"$4-RHOM
M&9]SYN)Q/AK[[#H 3UZ4U*Z@G??]D3%7=:"XNS$]:+QIC%7 <9;E'LP1DJ,"EOY*@&TE3F)J
MU"2DQMX\"P+@$%IXT("*!'4&1!."8. "!"X 8.0!%\$L*)\47EI+0)7FP7:!
MO! B,'()(I< LK=Q%V58F**<^,B *B^0MWU7@(I03&%D"B)3 -E;RP4-]@Q%
M_C>Z#$6$!L" $Z;>X;<.15E.,O_;2>[.6WO#?F/R4',T
M.5*90<=)7GF7@;U/XYO\#9^F_2NWK=".7(S'EXW];XSQ@%*2&QRA#C_88DAH
M?#C>X=E.8S89WO3S#V++-R[_ %!+ P04 " #TA7Q,LI\R^+,! #2 P
M&0 'AL+W=O%+BS=C@28JH.
M)#-W:H#>G31*2V:=J5MB!@VL#D%2$)HD]T0RWN,R#[ZS+G,U6L%[.&MD1BF9
M_GT"H:8"I_C=\,H\/
M@!<.D]GLD:_DHM2K-[[4!4Y\0B"@LIZ!N>4*3R"$)W)I_%HX\2KI [?[=_9/
MH797RX49>%+B)Z]M5^ #1C4T;!3V64V?8:DGPV@I_BM<03BXS\1I5$J8\$75
M:*R2"XM+1;*W>>5]6*?Y)-LO8?$ N@30-> 0=,@L%#+_R"PK&ULE5CMCII %'T5P@.4^4"0
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M>55W>_=I\Q31AU!7?]5LML5NK^GRU'KW.&/C:!(<&T<]9MYAV!FHA >Q]"
M,!1BSBQS=AE@82,XN80L;4@\PB0XS).W]OPBSQ@["*L'407C@8&X7J,'&+
M*5N,D<;B&N*"Q B2& $2B4&BPXRND+B&N" 101*132(Q0T16B/&8$$>8&(:)
M01AJY!K_M^"Q1822R,ED#)F, 1/C$9XC#,=!$A@D 0Y"(TABI4O#\URZE!,[
MY=A"+8$OYJP+)5@\"" ],M6#6'PX:4(Y@SF4BEK!0F[&HE96+&1VB8 O[I 3
M"D7MD3*0>F2&8?:MH,9-70)0'+E*@\6-
YO':=8[40:%3=R+S+U92/S-"K5,-\ZQ3X7T;HV2A.'NF[@I%&<
MV?-I/?>4SZ?R4"9Q)IYRJSBD:93_NQ.)/,UL8K]//,?;75E-.//I/MJ*GZ+\
MM7_*U
MY^P&7G[_C/Y3GWR;S$M6^\=OMZ\E(V35GT^Z^O9=GX]F+267L96Y]M
MS@>Y?VVZK]W]K4X[WZ>#ICP,N_K)^;\6K/X%4$L#!!0 ( /2%?$RKT$)?
M P, &H, 9 >&PO=V]R:W-H965T
,XW4J=@ZG+B2Y[G.I/2\:=+ZO><.G!X_Y;]LS&OS#RSAB]%
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M8NI ET?A"M5(-T0NE=UFEAUH2$6O<)O!V_,[^
MV1:OBWEADF]$]:O&2/BSQHH;U=^Z+\Y
MGJM3J8P#Y5E#3O =U(]F)[2%!I5#Q:"6%:\] <>5_Q@NMZG!6\#/"EHYFGLF
MDSWG+\;X
?W'-TG9CT8S^G%1__&/AQS>'(3?/#;X?[^YK?9ELMS_O]8W/S[LTL9D
M!E?_6O_N!IY>T1LO-\E=_==ULJD:S=@^WJ5E5N 5]'S9-]\3A:G]P__T#G)
MEUFU3#;1OZ5)&;V$+QN;4']2^@T^^_+?ZM_(^KU/[S)<-&CFIV3;&.S'%S_]
M>//AV=OHU4_/6EIX!D,HH?M70 E?HG]-'UJ>>YEMTC)Z!BMR5Y2-ASYLDPW^
M_C[=%>4^R^^B9\5VE^1MK?TEW6RN?LF+SWGT(4VJ(D]7T:NJ.J1E_86?BK:!
M'\H2E\]U^6&?[)MK]V]IXRMIX<_%!LYH4LKDVAY[=[C=9$N@I"+9UQ\Q@]"[
MW48Y5U?#T=5XV#:=8KN%0_!A7RQ_B:,/]TF95M';P[[:)_D*9M?H&FO/*_0Z^1]L80FWZ7[LMBD!Y(_\=PF>).\W@/YP+T,E^MH,+AV-Q3M
MS"&7T;EMH=FF7V1IV.BG/>MXV#:LG]3>86V