Debt	12 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]
Debt	5. DEBT The Company has a $200,000,000 credit facility with a group of banks headed by Bank of Oklahoma (BOK) with a current borrowing base of $31,000,000 as of September 30, 2020, and a maturity date of November 30, 2022 (as amended, the “Credit Facility”). The Credit Facility is subject to at least semi-annual borrowing base determination, wherein BOK applies their commodity pricing forecast to the Company’s reserve forecast and determines a borrowing base. The Credit Facility is secured by all of the Company’s producing gas and oil properties. The interest rate is based on BOK prime plus from 1.00% to 1.75%, or 30-day LIBOR plus from 2.50% to 3.25%. The election of BOK prime or LIBOR is at the Company’s discretion. The interest rate spread from BOK prime or LIBOR will be charged based on the ratio of the loan balance to the borrowing base. The interest rate spread from LIBOR or the prime rate increases as a larger percent of the borrowing base is advanced. At September 30, 2020, the effective interest rate was 4.25%. The Company’s debt is recorded at the carrying amount on its Balance Sheets. The carrying amount of the Credit Facility approximates fair value because the interest rates are reflective of market rates. Debt issuance costs associated with the Credit Facility are presented in Other, net on the Company’s Balance Sheets. Total debt issuance cost net of amortization as of September 30, 2020, was $246,724. The debt issuance cost is amortized over the life of the credit facility. Determinations of the borrowing base are made semi-annually (usually June and December) or whenever the banks, in their sole discretion, believe that there has been a material change in the value of the Company’s natural gas and oil properties. On June 24, 2020, the Company entered into the Seventh Amendment to its Credit Facility. The amendment reduced the borrowing base from $45,000,000 to $32,000,000 and included a Quarterly Commitment Reduction, whereby the borrowing base is reduced by $1,000,000 each April 15, July 15, October 15 and January 15, commencing on July 15, 2020. The next redetermination occurred in December 2020. See Note 15: Subsequent Events for further discussion. The Credit Facility contains customary covenants which, among other things, require periodic financial and reserve reporting and place certain limits on the Company’s incurrence of indebtedness, liens, payment of dividends and acquisitions of stock. In addition, the Company is required to maintain certain financial ratios, a current ratio (as defined in the Credit Facility) of no less than 1.0 to 1.0 and a funded debt to EBITDA (as defined in the Credit Facility) of no more than 4.0 to 1.0 based on the trailing twelve months. At September 30, 2020, the Company was in compliance with the covenants of the Credit Facility, had $28,750,000 outstanding, of which $1,750,000 is classified as short-term debt due to the Quarterly Commitment Reduction, and had $2,250,000 of borrowing base availability under the Credit Facility.

Debt

12 Months Ended

Sep. 30, 2020

5. DEBT

The Company has a $200,000,000 credit facility with a group of banks headed by Bank of Oklahoma (BOK) with a current borrowing base of $31,000,000 as of September 30, 2020, and a maturity date of November 30, 2022 (as amended, the “Credit Facility”). The Credit Facility is subject to at least semi-annual borrowing base determination, wherein BOK applies their commodity pricing forecast to the Company’s reserve forecast and determines a borrowing base. The Credit Facility is secured by all of the Company’s producing gas and oil properties. The interest rate is based on BOK prime plus from 1.00% to 1.75%, or 30-day LIBOR plus from 2.50% to 3.25%. The election of BOK prime or LIBOR is at the Company’s discretion. The interest rate spread from BOK prime or LIBOR will be charged based on the ratio of the loan balance to the borrowing base. The interest rate spread from LIBOR or the prime rate increases as a larger percent of the borrowing base is advanced. At September 30, 2020, the effective interest rate was 4.25%.

The Company’s debt is recorded at the carrying amount on its Balance Sheets. The carrying amount of the Credit Facility approximates fair value because the interest rates are reflective of market rates. Debt issuance costs associated with the Credit Facility are presented in Other, net on the Company’s Balance Sheets. Total debt issuance cost net of amortization as of September 30, 2020, was $246,724. The debt issuance cost is amortized over the life of the credit facility.

Determinations of the borrowing base are made semi-annually (usually June and December) or whenever the banks, in their sole discretion, believe that there has been a material change in the value of the Company’s natural gas and oil properties. On June 24, 2020, the Company entered into the Seventh Amendment to its Credit Facility. The amendment reduced the borrowing base from $45,000,000 to $32,000,000 and included a Quarterly Commitment Reduction, whereby the borrowing base is reduced by $1,000,000 each April 15, July 15, October 15 and January 15, commencing on July 15, 2020. The next redetermination occurred in December 2020. See Note 15: Subsequent Events for further discussion. The Credit Facility contains customary covenants which, among other things, require periodic financial and reserve reporting and place certain limits on the Company’s incurrence of indebtedness, liens, payment of dividends and acquisitions of stock. In addition, the Company is required to maintain certain financial ratios, a current ratio (as defined in the Credit Facility) of no less than 1.0 to 1.0 and a funded debt to EBITDA (as defined in the Credit Facility) of no more than 4.0 to 1.0 based on the trailing twelve months. At September 30, 2020, the Company was in compliance with the covenants of the Credit Facility, had $28,750,000 outstanding, of which $1,750,000 is classified as short-term debt due to the Quarterly Commitment Reduction, and had $2,250,000 of borrowing base availability under the Credit Facility.