DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables)

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of non-cash gains or losses on derivative contracts

The following table presents cash settlements on matured or liquidated derivative instruments and non-cash gains and losses on open derivative instruments for the periods presented.  Cash receipts and payments below reflect proceeds received upon early liquidation of derivative positions and gains or losses on derivative contracts which matured during the period, calculated as the difference between the contract price and the market settlement price of matured contracts.  Non-cash gains and losses below represent the change in fair value of derivative instruments which continue to be held at period-end and the reversal of previously recognized non-cash gains or losses on derivative contracts that matured or were liquidated during the period.

	Three Months Ended March 31,
	2017			2016
Cash Received (Paid) on Derivatives	$	(95,659	)	$	25,446,900
Non-Cash Gain (Loss) on Derivatives	17,056,542			(21,983,017		)
Gain on Derivative Instruments, Net	$	16,960,883		$	3,463,883

Open commodity swap contracts

The following table reflects open commodity swap contracts as of March 31, 2017, the associated volumes and the corresponding fixed price.

Settlement Period	Oil (Barrels)	Fixed Price ($)
Swaps-Crude Oil
04/01/17 – 06/30/17	180,000	50.00
04/01/17 – 06/30/17	90,000	50.01
04/01/17 – 06/30/17	90,000	49.99
04/01/17 – 06/30/17(1)	30,000	55.20
04/01/17 – 12/31/17	270,000	54.20
04/01/17 – 12/31/17	180,000	53.25
04/01/17 – 12/31/17	275,000	54.10
07/01/17 – 12/31/17	240,000	52.75
07/01/17 – 12/31/17	120,000	52.75
07/01/17 – 12/31/17	120,000	53.50
07/01/17 – 12/31/17	60,000	54.60
07/01/17 – 12/31/17	120,000	51.75
07/01/17 – 12/31/17	120,000	53.75
01/01/18 – 09/30/18	270,000	54.00
01/01/18 – 09/30/18	270,000	54.00
01/01/18 – 09/30/18	273,000	55.20

(1) The Company has entered into crude oil derivative contracts that give counterparties the option to extend certain current derivative contracts for an additional six-month period.  Options covering a notional volume of 10,000 barrels per month are exercisable on or about June 30, 2017.  If the counterparties exercise all such options, the notional volume of the Company’s existing crude oil derivative contracts would increase by 10,000 barrels per month at an average price of $55.20 per barrel for each month during the period July 1, 2017 through December 31, 2017.

The following table reflects open costless collar agreements as of March 31, 2017.

Settlement Period	Oil (Barrels)	Floor/Ceiling Price ($)	Basis
04/01/17 – 12/31/17	135,000	$50.00/$60.00	NYMEX
04/01/17 – 12/31/17	90,000	$50.00/$60.15	NYMEX
01/01/18 – 12/31/18	360,000	$50.00/$60.25	NYMEX

Schedule of weighted average price of open commodity derivative contracts

The following table reflects the weighted average price of open commodity swap derivative contracts as of March 31, 2017, by year with associated volumes.

Year	Volumes (Bbl)	Weighted Average Price ($)
2017	1,895,000	52.82
2018	813,000	54.40

Derivatives instruments Balance Sheet location

The following table sets forth the amounts, on a gross basis, and classification of the Company’s outstanding derivative financial instruments at March 31, 2017 and December 31, 2016, respectively.  Certain amounts may be presented on a net basis on the condensed financial statements when such amounts are with the same counterparty and subject to a master netting arrangement.

Type of Crude Oil Contract	Balance Sheet Location	March 31, 2017 Estimated Fair Value			December 31, 2016 Estimated Fair Value
Derivative Assets:
Swap Contracts	Current Assets	$	3,182,425		$	20,962
Costless Collar Contracts	Current Assets	605,184			—
Swap Contracts	Noncurrent Assets	1,362,763			—
Costless Collar Contracts	Noncurrent Assets	695,540			—
Total Derivative Assets		$	5,845,912		$	20,962
Derivative Liabilities:
Swap and Swaption Contracts	Current Liabilities	$	(524,747	)	$	(9,862,215	)
Costless Collar Contracts	Current Liabilities	—			(155,794		)
Swap Contracts	Noncurrent Liabilities	—			(1,738,329		)
Total Derivative Liabilities		$	(524,747	)	$	(11,756,338	)

Reconciliation between gross assets and liabilities and the amounts reflected on balance sheet

The tables presented below provide reconciliation between the gross assets and liabilities and the amounts reflected on the balance sheet.  The amounts presented exclude derivative settlement receivables and payables as of the balance sheet dates.

	Estimated Fair Value at March 31, 2017
	Gross Amounts of Recognized Assets			Gross Amounts Offset in the Balance Sheet			Net Amounts of Assets Presented in the Balance Sheet
Offsetting of Derivative Assets:
Current Assets	$	3,787,609		$	(115,925	)	$	3,671,684
Noncurrent Assets	2,058,303			—			2,058,303
Total Derivative Assets	$	5,845,912		$	(115,925	)	$	5,729,987
Offsetting of Derivative Liabilities:
Current Liabilities	$	(524,747	)	$	115,925		$	(408,822	)
Noncurrent Liabilities	—			—			—
Total Derivative Liabilities	$	(524,747	)	$	115,925		$	(408,822	)

	Estimated Fair Value at December 31, 2016
	Gross Amounts of Recognized Assets			Gross Amounts Offset in the Balance Sheet			Net Amounts of Assets Presented in the Balance Sheet
Offsetting of Derivative Assets:
Current Assets	$	20,962		$	(16,445	)	$	4,517
Non-Current Assets	—			—			—
Total Derivative Assets	$	20,962		$	(16,445	)	$	4,517
Offsetting of Derivative Liabilities:
Current Liabilities	$	(10,018,009	)	$	16,445		$	(10,001,564	)
Non-Current Liabilities	(1,738,329		)	—			(1,738,329		)
Total Derivative Liabilities	$	(11,756,338	)	$	16,445		$	(11,739,893	)