Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 04, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | TENGASCO INC | |
Entity Central Index Key | 0001001614 | |
Entity Filer Category | Non-accelerated Filer | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 10,658,775 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | tgc | |
Security Exchange Name | NYSE | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current | ||
Cash and cash equivalents | $ 3,482 | $ 3,115 |
Accounts receivable | 511 | 533 |
Inventory | 325 | 464 |
Prepaid expenses | 192 | 235 |
Total current assets | 4,510 | 4,347 |
Loan fees, net | 5 | 9 |
Right of use asset - operating leases | 55 | |
Oil and gas properties, net (full cost accounting method) | 4,344 | 4,804 |
Other property and equipment, net | 134 | 190 |
Accounts receivable - noncurrent | 130 | 130 |
Other noncurrent assets | 4 | 4 |
Total assets | 9,182 | 9,484 |
Current liabilities | ||
Accounts payable - trade | 127 | 132 |
Accrued liabilities | 231 | 282 |
Lease liabilities - operating leases - current | 56 | |
Lease liabilities - finance leases - current | 59 | |
Current maturities of long-term debt | 51 | |
Asset retirement obligation - current | 83 | 83 |
Total current liabilities | 556 | 548 |
Lease liabilities - operating leases - noncurrent | ||
Lease liabilities - finance leases - noncurrent | 29 | |
Long term debt, less current maturities | 73 | |
Asset retirement obligation - non current | 2,085 | 2,096 |
Total liabilities | 2,670 | 2,717 |
Commitments and contingencies (Note 12) | ||
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, 10,653,550 and 10,639,290 shares issued and outstanding | 11 | 11 |
Additional paid-in capital | 58,290 | 58,276 |
Accumulated deficit | (51,789) | (51,520) |
Total stockholders' equity | 6,512 | 6,767 |
Total liabilities and stockholders' equity | $ 9,182 | $ 9,484 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
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 | 10,653,550 | 10,639,290 |
Common stock, shares outstanding | 10,653,550 | 10,639,290 |
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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Revenues | $ 1,215 | $ 1,654 | $ 3,777 | $ 4,497 |
Cost and expenses | ||||
Production costs and taxes | 913 | 862 | 2,604 | 2,502 |
Depreciation, depletion, and amortization | 186 | 219 | 566 | 599 |
General and administrative | 297 | 288 | 913 | 896 |
Total cost and expenses | 1,396 | 1,369 | 4,083 | 3,997 |
Net income (loss) from operations | (181) | 285 | (306) | 500 |
Other income (expense) | ||||
Interest expense | (2) | (1) | (8) | (4) |
Gain on sale of assets | 1 | 14 | 45 | 34 |
Total other income (expense) | (1) | 13 | 37 | 30 |
Net income (loss) from operations before income tax | (182) | 298 | (269) | 530 |
Deferred income tax benefit | ||||
Net income (loss) from continuing operations | (182) | 298 | (269) | 530 |
Net income from discontinued operations | 1,120 | |||
Net income (loss) | $ (182) | $ 298 | $ (269) | $ 1,650 |
Net income (loss) per share - basic and fully diluted | ||||
Continuing operations | $ (0.02) | $ 0.03 | $ (0.03) | $ 0.05 |
Discontinued operations | $ 0.11 | |||
Shares used in computing earnings per share | ||||
Basic and fully diluted | 10,653,550 | 10,624,493 | 10,648,838 | 10,624,476 |
Oil And Gas Proeprties [Member] | ||||
Revenues | ||||
Revenues | $ 1,215 | $ 1,654 | $ 3,777 | $ 4,497 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net income (loss) from continuing operations | $ (269) | $ 530 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion, and amortization | 566 | 599 |
Amortization of loan fees-interest expense | 4 | 3 |
Accretion on asset retirement obligation | 100 | 106 |
Gain on asset sales | (45) | (34) |
Stock based compensation | 14 | 4 |
Changes in assets and liabilities: | ||
Accounts receivable | 22 | (57) |
Inventory and other assets | 78 | (144) |
Accounts payable | 4 | (14) |
Accrued and other current liabilities | (51) | 30 |
Settlement on asset retirement obligation | (52) | (5) |
Net cash provided by operating activities - continuing operations | 371 | 1,018 |
Net cash provided by operating activities - discontinued operations | 45 | |
Net cash provided by operating activities | 371 | 1,063 |
Investing activities | ||
Additions to oil and gas properties | (153) | (453) |
Proceeds from sale of oil and gas properties | 41 | 7 |
Additions to other property and equipment | (2) | (28) |
Proceeds from sale of other property and equipment | 8 | |
Proceeds from sale of materials inventory | 150 | |
Net cash provided by (used in) investing activities - continuing operations | 36 | (466) |
Net cash provided by investing activities - discontinued operations | 2,650 | |
Net cash provided by investing activities | 36 | 2,184 |
Financing activities | ||
Repayments of borrowings | (40) | (130) |
Proceeds from borrowings | 100 | |
Net cash used in financing activities - continuing operations | (40) | (30) |
Net cash provided by (used in) financing activities - discontinued operations | ||
Net cash used in financing activities | (40) | (30) |
Net change in cash and cash equivalents | 367 | 3,217 |
Cash and cash equivalents, beginning of period | 3,115 | 185 |
Cash and cash equivalents, end of period | 3,482 | 3,402 |
Supplemental cash flow information: | ||
Cash interest payments | 4 | |
Supplemental non-cash investing and financing activities: | ||
Financed company vehicles | $ 30 | 76 |
Capital expenditures included in accounts payable and accrued liabilities | $ 227 |
Changes In Stockholders' Equity
Changes In Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance, value at Dec. 31, 2017 | $ 11 | $ 58,253 | $ (53,089) | $ 5,175 |
Balance, shares at Dec. 31, 2017 | 10,619,924 | |||
Net income (loss) | 1,243 | 1,243 | ||
Compensation expense related to stock issued | 4 | 4 | ||
Compensation expense related to stock issued, shares | 4,569 | |||
Balance, shares at Mar. 31, 2018 | 10,624,493 | |||
Balance, value at Mar. 31, 2018 | $ 11 | 58,257 | (51,846) | 6,422 |
Balance, value at Dec. 31, 2017 | $ 11 | 58,253 | (53,089) | 5,175 |
Balance, shares at Dec. 31, 2017 | 10,619,924 | |||
Net income (loss) | 1,650 | |||
Balance, shares at Sep. 30, 2018 | 10,624,493 | |||
Balance, value at Sep. 30, 2018 | $ 11 | 58,257 | (51,439) | 6,829 |
Balance, value at Mar. 31, 2018 | $ 11 | 58,257 | (51,846) | 6,422 |
Balance, shares at Mar. 31, 2018 | 10,624,493 | |||
Net income (loss) | 109 | 109 | ||
Compensation expense related to stock issued | ||||
Compensation expense related to stock issued, shares | ||||
Balance, shares at Jun. 30, 2018 | 10,624,493 | |||
Balance, value at Jun. 30, 2018 | $ 11 | 58,257 | (51,737) | 6,531 |
Net income (loss) | 298 | 298 | ||
Compensation expense related to stock issued | ||||
Compensation expense related to stock issued, shares | ||||
Balance, shares at Sep. 30, 2018 | 10,624,493 | |||
Balance, value at Sep. 30, 2018 | $ 11 | 58,257 | (51,439) | 6,829 |
Balance, value at Dec. 31, 2018 | $ 11 | 58,276 | (51,520) | $ 6,767 |
Balance, shares at Dec. 31, 2018 | 10,639,290 | 10,639,290 | ||
Net income (loss) | (96) | $ (96) | ||
Compensation expense related to stock issued | 4 | 4 | ||
Compensation expense related to stock issued, shares | 4,962 | |||
Balance, shares at Mar. 31, 2019 | 10,644,252 | |||
Balance, value at Mar. 31, 2019 | $ 11 | 58,280 | (51,616) | 6,675 |
Balance, value at Dec. 31, 2018 | $ 11 | 58,276 | (51,520) | $ 6,767 |
Balance, shares at Dec. 31, 2018 | 10,639,290 | 10,639,290 | ||
Net income (loss) | $ (269) | |||
Balance, shares at Sep. 30, 2019 | 10,653,550 | 10,653,550 | ||
Balance, value at Sep. 30, 2019 | $ 11 | 58,290 | (51,789) | $ 6,512 |
Balance, value at Mar. 31, 2019 | $ 11 | 58,280 | (51,616) | 6,675 |
Balance, shares at Mar. 31, 2019 | 10,644,252 | |||
Net income (loss) | 9 | 9 | ||
Compensation expense related to stock issued | 6 | 6 | ||
Compensation expense related to stock issued, shares | 4,411 | |||
Balance, shares at Jun. 30, 2019 | 10,648,663 | |||
Balance, value at Jun. 30, 2019 | $ 11 | 58,286 | (51,607) | 6,690 |
Net income (loss) | (182) | (182) | ||
Compensation expense related to stock issued | 4 | $ 4 | ||
Compensation expense related to stock issued, shares | 4,887 | |||
Balance, shares at Sep. 30, 2019 | 10,653,550 | 10,653,550 | ||
Balance, value at Sep. 30, 2019 | $ 11 | $ 58,290 | $ (51,789) | $ 6,512 |
Description Of Business And Sig
Description Of Business And Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Description Of Business And Significant Accounting Policies [Abstract] | |
Description Of Business And Significant Accounting Policies | (1) D escription 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, 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, except the applicable U.S. patent, on January 26, 2018 for $2.65 million. (See Note 10. Discontinued Operations) Basis of Presentation The accompanying unaudited condensed consolidated financial statements as of September 30, 2019 and September 30, 2018 have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Item 210 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet as of December 31, 2018 is derived from the audited financial statements, but does not include all disclosures required by U.S. GAAP. The Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation for the periods presented have been included as required by Regulation S-X, Rule 10-01. Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ended December 31, 2019. It is suggested that these condensed consolidated financial statements be read in conjunction with the Company’s consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Principles of Consolidation The accompanying condensed 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 condensed 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 condensed consolidated financial statements are appropriate, actual results could differ from those estimates and assumptions. Revenue Recognition The Company identifies the contracts with each of its customers and the separate performance obligations associated with each of these contracts. Revenues are recognized when the performance obligations are satisfied and when control of goods or services are transferred to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. Crude oil is sold on a month-to-month contract at a price based on an index price from the purchaser, net of differentials. Crude oil that is produced is stored in storage tanks. The Company will contact the purchaser and request it to pick up the crude oil from the storage tanks. When the purchaser picks up the crude from the storage tanks, control of the crude transfers to the purchaser, the Company’s contractual obligation is satisfied, and revenues are recognized. The sales of oil represent the Company’s share of revenues net of royalties and excluding revenue interests owned by others. When selling oil on behalf of royalty owners or working interest owners, the Company is acting as an agent and thus reports revenues on a net basis to the Company. Fees and other deductions incurred prior to transfer of control are recorded as production costs. Revenues are reported net of fees and other deductions incurred after transfer of control. Electricity from the Company’s methane facility was sold on a long term contract. There was no specific quantity of electricity that was required to be delivered under this contract. Electricity passed through sales meters located at the Carter Valley landfill site, at which time control of the electricity transferred to the purchaser, the Company’s contractual obligation was satisfied, and revenues were recognized . The Company sold its methane facility and generation assets on January 26, 2018 and therefore has not recognized revenues associated with any sales volumes after that date. Revenues associated with the methane facility are included in Discontinued Operations. (See Note 10. Discontinued Operations) The Company operates certain salt water disposal wells, some of which accept water from third parties. The contracts with the third parties primarily require a flat monthly fee for the third parties to dispose water into the wells. In some cases, the contract is based on a per barrel charge to dispose water into the wells. There is no requirement under the contracts for these third parties to use these wells for their water disposal. If the third parties do dispose water into the Company operated wells during a given month, the Company has met its contractual obligations and revenues are recognized for that month. The following table presents the disaggregated revenue by commodity for the three months and nine months ended September 30, 2019 and 2018 (in thousands) : For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Crude oil $ 1,208 $ 1,647 $ 3,757 $ 4,472 Saltwater disposal fees 7 7 20 25 Total $ 1,215 $ 1,654 $ 3,777 $ 4,497 There were no natural gas imbalances at September 30, 2019 or December 31, 2018. 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 cost per barrel for the three months ended September 30, 2019 and December 31, 2018. These costs include production costs and taxes. The market value component is calculated using the average September 2019 and December 2018 oil sales prices received from the Company’s Kansas properties. In addition, at December 31, 2018, the Company recorded equipment and materials to be used in its Kansas operation as inventory and was carried at the lower of cost or market value. The equipment inventory was sold to a third party during the three months ended March 31, 2019. The cost component of the equipment and materials inventory represented 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 period. At September 30, 2019 and December 31, 2018, inventory consisted of the following (in thousands) : September 30, December 31, 2019 2018 Oil – carried at cost $ 325 $ 359 Equipment and materials – carried at market — 105 Total inventory $ 325 $ 464 Full Cost Method of Accounting 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 in unevaluated properties as of September 30, 2019 and $23,000 at December 31, 2018. 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. The Company did not record any impairment of its oil and gas properties during the nine months ended September 30, 2019 and 2018. 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 sales of oil and gas production, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied first 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. There was no allowance recorded at September 30, 2019 or December 31, 2018. The following table sets forth information concerning the Company’s accounts receivable (in thousands) : September 30, December 31, 2019 2018 Revenue $ 378 $ 396 Tax 129 129 Joint interest 4 8 Accounts receivable - current $ 511 $ 533 Tax - noncurrent $ 130 $ 130 At September 30, 2019 and December 31, 2018, the Company recorded a tax related current receivable of $129,000 and a tax related non-current receivable of $130,000 . (See Note 2. Income Taxes) Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation with no effect on net income. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | (2) 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. The deferred income tax assets or liabilities for an oil and gas exploration and development company are dependent on many variables such as estimates of the economic lives of depleting oil and gas reserves and commodity prices. Accordingly, the asset or liability is subject to continuous recalculation and revision of the numerous estimates required, and may change significantly in the event of occurrences such as major acquisitions, divestitures, commodity price changes, changes in reserve estimates, changes in reserve lives, and changes in tax rates or tax laws. The estimated annual effective tax rate of 0% differs from the statutory rate of 21% due primarily to adjustments to the valuation allowance on the deferred tax assets. At December 31, 2018, federal net operating loss carryforwards amounted to approximately $35.8 million, of which $34.8 million expires between 2019 and 2037, which can offset 100% of taxable income and $1 million that has an indefinite carryforward period which can offset 80% of taxable income per year. The Company has approximately $260,000 in refundable credits, and it expects that a substantial portion will be refunded between 2018 and 2021. As 50% of the credit will be refunded when we file the 2018 tax return, this amount is recorded as a current accounts receivable on the Balance Sheet at September 30, 2019 and December 31, 2018, with balance of this refund recorded as a non-current accounts receivable. The Company recorded a valuation allowance on the remaining deferred tax assets at September 30, 2019 and December 31, 2018 as such amounts were not considered to be more-likely-than-not realizable. There were no recorded unrecognized tax benefits at September 30, 2019 and December 31, 2018. |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2019 | |
Capital Stock [Abstract] | |
Capital Stock | (3) Capital Stock Common Stock On July 1, 2019, the Company issued 4,887 shares of common stock in the aggregate to the Company’s three directors and CFO and interim CEO. On October 1, 2019, the Company issued 5,225 shares of common stock in the aggregate to the Company’s three directors and CFO and interim CEO. Rights Agreement Effective March 17, 2017 the Board of Directors declared a dividend of one right (a “ Right ”) for each of the Company’s issued and outstanding shares of common stock, $0.001 par value per share (“ Common Stock ”). The dividend was paid to the stockholders of record at the close of business on March 27, 2017 (the “ Record Date ”). Each Right entitles the registered holder, subject to the terms of the Rights Agreement dated as of March 16, 2017 (the “ Rights Agreement ”) between the Company and the Rights Agent, Continental Stock Transfer & Trust Company, to purchase from the Company one one-thousandth of a share of the Company’s Series A Preferred Stock at a price of $1.10 (the “ Exercise Price ”), subject to certain adjustments. The purpose of the Rights Agreement is to reduce the risk that the Company’s ability to use its net operating losses to reduce potential future federal income tax obligations would be limited if the Company’s experiences an “ownership change,” as defined in Section 382 of the Internal Revenue Code. A company generally experiences an ownership change if the percentage of its stock owned by its “5-percent shareholders,” as defined in Section 382 of the Tax Code, increases by more than 50 percentage points over a rolling three-year period. The Rights Agreement is designed to reduce the likelihood that the Company will experience an ownership change under Section 382 of the Tax Code by discouraging any person or group from becoming a 4.95% shareholder and also discouraging any existing 4.95% (or more) shareholder from acquiring additional shares of the Company’s stock. The Rights will not be exercisable until the “ Distribution Date ”, which is generally defined as the earlier to occur of:(i) a public announcement or filing that a person or group has, become an “ Acquiring Person ” which is defined as a person or group of affiliated or associated persons or persons acting in concert who, at any time after the date of the Rights Agreement, have acquired, or obtained the right to acquire, beneficial ownership of 4.95% or more of the Company’s outstanding shares of Common Stock; or a person or group currently owning 4.95% (or more) of the Company’s outstanding shares acquires additional shares of the Company’s stock; subject to certain exceptions; or (ii) the commencement of, or announcement of an intention to commence, a tender offer or exchange offer the consummation of which would result in any person becoming an Acquiring Person. The Rights, unless extended by the Board of Directors will expire prior to the earlier of March 16, 2020; or a date the Board of Directors determines by resolution in its business judgment that the Agreement is no longer necessary or appropriate; or in certain other specified circumstances. At any time after any person or group of affiliated or associated persons becomes an Acquiring Person, the Board, at its option, may exchange each Right (other than Rights owned by such person or group of affiliated or associated persons which will have become void), in whole or in part, at an exchange ratio of two shares of Common Stock per outstanding Right (subject to adjustment). For further information on the Rights Agreement, please refer to the Rights Agreement that was attached in full as an exhibit to the Company’s Form 8-K filed with SEC on March 17, 2017. Preferred Stock Series A Preferred Stock has a par value of $0.0001 and 10,000 shares have been designated. No shares of Series A Preferred Stock have been issued by the Company pursuant to the Rights Agreement described above or otherwise. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | (4) Earnings per Common Share We report 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 our basic and diluted earnings per share, (in thousands except for share and per share amounts): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Income (numerator): Net income (loss) from continuing operations $ (182) $ 298 $ (269) $ 530 Net income from discontinued operations $ — $ — $ — $ 1,120 Weighted average shares (denominator): Weighted average shares – basic 10,653,550 10,624,493 10,648,838 10,624,476 Dilution effect of share-based compensation, treasury method — — — — Weighted average shares – dilutive 10,653,550 10,624,493 10,648,838 10,624,476 Income (loss) per share – basic and dilutive: Continuing operations $ (0.02) $ 0.03 $ (0.03) $ 0.05 Discontinued operations $ — $ — $ — $ 0.11 Options issued to the Company’s directors in which the exercise price was higher than the average market price each quarter were excluded from diluted shares as they would have been anti-dilutive . In addition, the shares that would be issued to employees and Company directors if the thirty day trailing average of WTI postings as published by the U.S. Energy Information Administration meets or exceeds $85 per barrel have also been excluded from this calculation. (See Note 12. Commitments and Contingencies) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | (5) Recent Accounting Pronouncements In February 2016, the FASB issued ASU 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 e ffective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments was permitted for all entities. The Company has identified each of its leases and determined the impact of this new guidance on each of the identified leases. The Company implemented ASU 2016-02 Leases (Topic 842) as of January 1, 2019 using the modified retrospective approach. As a result of this implementation, the Company recorded right-of-use assets and liabilities associated with operating leases of approximately $98,000 . There was no transition adjustment related to finance leases. The Company elected the package of practical expedients within ASU 2016-02 Leases (Topic 842) that allows an entity to not reassess, prior to the effective date, (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification of any expired or existing leases, or (iii) initial direct costs for any existing leases. Additionally, the Company elected the practical expedient to not evaluate existing or expired land easements not previously accounted for as leases prior to the effective date. The Company also made an account policy election not to apply the lease recognition requirements to leases with an initial term of 12 months or less. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (6) 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”). 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 startup in April, 2009 through January 26, 2018 (the date the Company sold the Methane Project to a third party, and the net profits interest of Hoactzin terminated). Consequently, no payment to Hoactzin were made under the net profits interest at any time. In addition, during the fourth quarter of 2018, the Company acquired all of Hoactzin’s working interest in the drilling program wells for $134,690 . 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 effective December 18, 2012 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. |
Oil And Gas Properties
Oil And Gas Properties | 9 Months Ended |
Sep. 30, 2019 | |
Oil And Gas Properties [Abstract] | |
Oil And Gas Properties | (7) Oil and Gas Properties The following table sets forth information concerning the Company’s oil and gas properties (in thousands) : September 30, December 31, 2019 2018 Oil and gas properties $ 6,574 $ 6,503 Unevaluated properties — 23 Accumulated depreciation, depletion, and amortization (2,230) (1,722) Oil and gas properties, net $ 4,344 $ 4,804 The Company recorded depletion expense of $504,000 and $546,000 for the nine months ended September 30, 2019 and 2018, respectively. During the nine months ended September 30, 2019 and 2018, the Company also recorded in “Accumulated depreciation, depletion, and amortization” a $4,000 gain on asset retirement obligations and an $8,000 gain on asset retirement obligations, respectively. |
Asset Retirement Obligation
Asset Retirement Obligation | 9 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligation | (8) 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 nine months ended September 30, 2019 (in thousands) : Balance December 31, 2018 $ 2,179 Accretion expense 100 Liabilities incurred — Liabilities settled (56) Liabilities relieved - sold properties (55) Balance September 30, 2019 $ 2,168 |
Long-Term Debt And Lease Liabil
Long-Term Debt And Lease Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Long-Term Debt And Lease Liabilities [Abstract] | |
Long-Term Debt And Lease Liabilities | (9) Long-Term Debt and Lease Liabilities Long Term Debt Long-term debt to unrelated entities consisted of the following (in thousands) : September 30, December 31, 2019 2018 Note payable to a financial institution, with interest only payment until maturity. $ — $ — Installment notes bearing interest at the rate of 5.0% to 6.5% per annum collateralized by vehicles with monthly payments including interest, insurance and maintenance of approximately $5 — 124 Total long-term debt — 124 Less current maturities — (51) Long-term debt, less current maturities $ — $ 73 At September 30, 2019, installment notes are recorded to Lease liabilities – finance leases. At September 30, 2019, the Company had a revolving credit facility with Prosperity Bank. This has historically been the Company’s primary source to fund working capital and 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 September 30, 2019, the Company’s borrowing base was $4 million, subject to a credit limit based on current covenants of $3.8 million. 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 September 30, 2019, these covenants include the following: (a) Current Ratio > 1 :1; (b) Funded Debt to EBITDA < 3.5 x; and (c) Interest Coverage > 3.0 x. At September 30, 2019, the interest rate on this credit facility was 5.50% . The Company was in compliance with all covenants during the quarter ended September 30, 2019. The Company had no outstanding borrowing under the facility as of September 30, 2019 or December 31, 2018. During July 2019 , 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 $4 million , subject to a credit limit based on current covenants of $3.8 million, and the maturity date was extended to July 31, 202 1 . 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 6.00% at the date of the amendment. The maximum line of credit of the Company under the Prosperity Bank credit facility remained $50 million. The next borrowing base review will take place in November 2019. Lease Liabilities Effective January 1, 2018, the Company adopted ASU 2016-02 Leases (Topic 842) . We first determine if a contract is a lease at inception of the arrangement. To the extent that we determine an arrangement represents a lease, we then classify that lease as an operating lease or a finance lease. As of January 1, 2019, the Company capitalizes its operating leases on the Consolidated Balance Sheet as a right of use asset and a corresponding lease liability. The Company also capitalizes its finance leases on the Consolidated Balance Sheet as other property and equipment and a corresponding lease liability. The right of use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Short term leases that have an initial term of one year or less are not capitalized unless the Company intends to renew the lease to extend the initial term past one year. We lease certain office space, a storage yard, and field vehicles to support our operations. A more detailed description of the Company’s lease types is included below. Office and Storage Yard The Company maintains an office to support its corporate operations. This office agreement is with a third party and was structured with a 39 month initial term. The Company can renew the lease for 36 additional months by providing to the Landlord written notice of intent to exercise the renewal not less than nine months prior to expiration of the initial term. The Company’s corporate office lease is classified as an operating lease. The Company maintains an office to support its field operations. This office is with a third party and is on a month-to-month lease. However, the Company intends to continue to renew this lease for the foreseeable future. Based on the Company’s intent to renew the lease, the Company is assuming the same lease term as its corporate office lease for calculation of its right of use asset and lease liability. The Company’s field office lease is classified as an operating lease. The Company maintains a yard to store certain equipment used in its field operations. This storage yard agreement is with a third party and is on a month-to-month lease. However, the Company intends to continue to renew this lease for the foreseeable future. Based on the Company’s intent to renew the lease, the Company is assuming the same lease term as its corporate office lease for calculation of its right of use asset and lease liability. The Company’s storage yard is classified as an operating lease. Field Vehicles The Company leases certain vehicles from a third party for use in its field operations. The lease term for each vehicle is based on expected daily use of the vehicles by the field personnel, typically between 18 and 36 months. The Company also pays an upfront fee at the commencement of the lease term. The Company can continue to lease the vehicles past the initial lease term on a month-to-month basis. In addition, each vehicle has a residual value guarantee at the end of the lease term. The Company’s field vehicle leases are classified as finance leases. Significant Judgment In order to determine whether the Company’s contracts contain a lease component, the Company is required to exercise significant judgment. The Company will review each contract to determine if: an asset is specified in the contract; the asset is physically distinct; the supplier does not have substantive substitution rights; the Company obtains substantially all economic benefit from use of the asset; and the Company can direct the use of the asset. The Company also determines the appropriate discount rate to use on each lease. If there is a stated rate in the contract, the Company will use the stated rate as its discount rate. The contract associated with the field vehicles includes a stated rate typically between 5% and 6.5% . These stated rates for the field vehicle agreements were used as the discount rates. If there is no stated rate, the Company will use its borrowing rate as the discount rate. The contracts associated with the offices and yard do not include a stated rate. The Company used its borrowing rate of 6% as the discounts rate for these agreements. Components of lease costs for the three months and nine months ended September 30, 2019 (in thousands): Period Ended Three Months Nine Months Income Statement Account September 30, 2019 September 30, 2019 Operating lease cost: Production costs and taxes $ 3 $ 10 General and administrative 12 37 Total operating lease cost $ 15 $ 47 Finance lease cost: Amortization of right of use assets Depreciation, depletion, and amortization $ 21 $ 62 Interest on lease liabilities Net interest expense 1 4 Total finance lease cost $ 22 $ 66 Supplemental lease related cash flow information for the three months and nine months ended September 30, 2019 (in thousands): Period Ended Three Months Nine Months September 30, 2019 September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 15 $ 45 Operating cash flows from finance leases 1 4 Finance cash flows from finance leases 9 40 Right of use assets obtained in exchange for lease obligations: Operating leases — 98 Supplemental lease related balance sheet information as of September 30, 2019 and December 31, 2018 (in thousands): Balance Sheet as of September 30, 2019 December 31, 2018 Operating Leases: Right of use asset - operating leases $ 55 $ — Lease liabilities - current $ 56 $ — Lease liabilities - noncurrent — — Total operating lease liabilities $ 56 $ — Finance Leases: Other property and equipment, gross $ 263 $ — Accumulated depreciation (129) — Other property and equipment, net $ 134 $ — Lease liabilities - current $ 59 $ — Lease liabilities - noncurrent 29 — Total finance lease liabilities $ 88 $ — Weighted average remaining lease term and discount rate as of September 30, 2019: Operating Leases Finance Leases Weighted average remaining lease term 0.9 years 0.9 years Weighted average discount rate 6.0% 5.7% Maturity of lease liabilities as of September 30, 2019 (in thousands): Operating Leases Finance Leases 2019 (October 2019 - December 2019) $ 16 $ 27 2020 42 43 2021 — 20 Total lease payments 58 90 Less imputed interest (2) (2) Total $ 56 $ 88 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | (10) Discontinued Operations The following table sets forth information concerning the Discontinued Operations (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Revenues $ — $ — $ — $ 6 Production costs and taxes — — — (40) Depreciation, depletion, and amortization — — — (4) Interest income — — — 1 Gain on sale of assets — — — 1,157 Deferred income tax benefit — — — — Net income from discontinued operations $ — $ — $ — $ 1,120 Discontinued operations are related to the Manufactured Methane facilities. The Company sold all its methane facility assets, except the applicable U.S. patent, on January 26, 2018 for $2.65 million. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (11) 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 September 30, 2019 and December 31, 2018. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | (12) Commitments and Contingencies The Company as designated operator of the Hoactzin properties was administratively issued an “Incident of Non-Compliance” by the Bureau of Safety and Environmental Enforcement (“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 . In the normal course of business, the Company enters into commitments to spend capital on oil and gas properties. Since September 30, 2019, the Company has entered into a drilling commitment in the amount of approximate ly $293,000 . In addition, the Company was in the process of drilling a well at September 30, 2019. Drilling commitments by the Company in excess of costs incurred through September 30, 2019 were approximately $73,000 . Cost Reduction Measures Commencing in the quarter ended March 31, 2015 and continuing into the quarter ended June 30, 2018, the Company implemented cost reduction measures including compensation reductions for each employee as well as members of the Board of Directors. These compensation reductions were to 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. In May 2018, oil prices as so calculated exceeded $70 and compensation reverted 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 September 30, 2019, the reductions were approximately $389,000 . Of the $389,000, approximately $61,000 would be paid in the Company’s common stock. The $61,000 value represents approximately 100,000 common shares valued at $0.61 per share which represents the closing price on September 30, 2019. The Company has not accrued any liabilities associated with these compensation reductions. Legal Proceedings The Company is not a party to any pending material legal proceeding. To the knowledge of management, no federal, state, or local governmental agency is presently contemplating any proceeding against the Company which would have a result materially adverse to the Company. To the knowledge of management, no director, executive officer or affiliate of the Company or owner of record or beneficial owner of more than 5% of the Company’s common stock is a party adverse to the Company or has a material interest adverse to the Company in any proceeding . |
Description Of Business And S_2
Description Of Business And Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
Description Of Business And Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements as of September 30, 2019 and September 30, 2018 have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Item 210 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet as of December 31, 2018 is derived from the audited financial statements, but does not include all disclosures required by U.S. GAAP. The Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation for the periods presented have been included as required by Regulation S-X, Rule 10-01. Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ended December 31, 2019. It is suggested that these condensed consolidated financial statements be read in conjunction with the Company’s consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. |
Principles Of Consolidation | Principles of Consolidation The accompanying condensed 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 condensed 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 condensed consolidated financial statements are appropriate, actual results could differ from those estimates and assumptions. |
Revenue Recognition | Revenue Recognition The Company identifies the contracts with each of its customers and the separate performance obligations associated with each of these contracts. Revenues are recognized when the performance obligations are satisfied and when control of goods or services are transferred to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. Crude oil is sold on a month-to-month contract at a price based on an index price from the purchaser, net of differentials. Crude oil that is produced is stored in storage tanks. The Company will contact the purchaser and request it to pick up the crude oil from the storage tanks. When the purchaser picks up the crude from the storage tanks, control of the crude transfers to the purchaser, the Company’s contractual obligation is satisfied, and revenues are recognized. The sales of oil represent the Company’s share of revenues net of royalties and excluding revenue interests owned by others. When selling oil on behalf of royalty owners or working interest owners, the Company is acting as an agent and thus reports revenues on a net basis to the Company. Fees and other deductions incurred prior to transfer of control are recorded as production costs. Revenues are reported net of fees and other deductions incurred after transfer of control. Electricity from the Company’s methane facility was sold on a long term contract. There was no specific quantity of electricity that was required to be delivered under this contract. Electricity passed through sales meters located at the Carter Valley landfill site, at which time control of the electricity transferred to the purchaser, the Company’s contractual obligation was satisfied, and revenues were recognized . The Company sold its methane facility and generation assets on January 26, 2018 and therefore has not recognized revenues associated with any sales volumes after that date. Revenues associated with the methane facility are included in Discontinued Operations. (See Note 10. Discontinued Operations) The Company operates certain salt water disposal wells, some of which accept water from third parties. The contracts with the third parties primarily require a flat monthly fee for the third parties to dispose water into the wells. In some cases, the contract is based on a per barrel charge to dispose water into the wells. There is no requirement under the contracts for these third parties to use these wells for their water disposal. If the third parties do dispose water into the Company operated wells during a given month, the Company has met its contractual obligations and revenues are recognized for that month. The following table presents the disaggregated revenue by commodity for the three months and nine months ended September 30, 2019 and 2018 (in thousands) : For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Crude oil $ 1,208 $ 1,647 $ 3,757 $ 4,472 Saltwater disposal fees 7 7 20 25 Total $ 1,215 $ 1,654 $ 3,777 $ 4,497 There were no natural gas imbalances at September 30, 2019 or December 31, 2018. |
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 cost per barrel for the three months ended September 30, 2019 and December 31, 2018. These costs include production costs and taxes. The market value component is calculated using the average September 2019 and December 2018 oil sales prices received from the Company’s Kansas properties. In addition, at December 31, 2018, the Company recorded equipment and materials to be used in its Kansas operation as inventory and was carried at the lower of cost or market value. The equipment inventory was sold to a third party during the three months ended March 31, 2019. The cost component of the equipment and materials inventory represented 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 period. At September 30, 2019 and December 31, 2018, inventory consisted of the following (in thousands) : September 30, December 31, 2019 2018 Oil – carried at cost $ 325 $ 359 Equipment and materials – carried at market — 105 Total inventory $ 325 $ 464 |
Full Cost Method Of Accounting | Full Cost Method of Accounting 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 in unevaluated properties as of September 30, 2019 and $23,000 at December 31, 2018. 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. The Company did not record any impairment of its oil and gas properties during the nine months ended September 30, 2019 and 2018. |
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 sales of oil and gas production, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied first 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. There was no allowance recorded at September 30, 2019 or December 31, 2018. The following table sets forth information concerning the Company’s accounts receivable (in thousands) : September 30, December 31, 2019 2018 Revenue $ 378 $ 396 Tax 129 129 Joint interest 4 8 Accounts receivable - current $ 511 $ 533 Tax - noncurrent $ 130 $ 130 At September 30, 2019 and December 31, 2018, the Company recorded a tax related current receivable of $129,000 and a tax related non-current receivable of $130,000 . (See Note 2. Income Taxes) |
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 S_3
Description Of Business And Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Description Of Business And Significant Accounting Policies [Abstract] | |
Disaggregation Of Revenue | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Crude oil $ 1,208 $ 1,647 $ 3,757 $ 4,472 Saltwater disposal fees 7 7 20 25 Total $ 1,215 $ 1,654 $ 3,777 $ 4,497 |
Inventory | September 30, December 31, 2019 2018 Oil – carried at cost $ 325 $ 359 Equipment and materials – carried at market — 105 Total inventory $ 325 $ 464 |
Accounts Receivable | September 30, December 31, 2019 2018 Revenue $ 378 $ 396 Tax 129 129 Joint interest 4 8 Accounts receivable - current $ 511 $ 533 Tax - noncurrent $ 130 $ 130 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Common Share [Abstract] | |
Reconciliations Of The Numerators And Denominators Of Basic And Diluted Earnings Per Share | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Income (numerator): Net income (loss) from continuing operations $ (182) $ 298 $ (269) $ 530 Net income from discontinued operations $ — $ — $ — $ 1,120 Weighted average shares (denominator): Weighted average shares – basic 10,653,550 10,624,493 10,648,838 10,624,476 Dilution effect of share-based compensation, treasury method — — — — Weighted average shares – dilutive 10,653,550 10,624,493 10,648,838 10,624,476 Income (loss) per share – basic and dilutive: Continuing operations $ (0.02) $ 0.03 $ (0.03) $ 0.05 Discontinued operations $ — $ — $ — $ 0.11 |
Oil And Gas Properties (Tables)
Oil And Gas Properties (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Oil And Gas Properties [Abstract] | |
Schedule Of Oil And Gas Properties | September 30, December 31, 2019 2018 Oil and gas properties $ 6,574 $ 6,503 Unevaluated properties — 23 Accumulated depreciation, depletion, and amortization (2,230) (1,722) Oil and gas properties, net $ 4,344 $ 4,804 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligation Transactions | Balance December 31, 2018 $ 2,179 Accretion expense 100 Liabilities incurred — Liabilities settled (56) Liabilities relieved - sold properties (55) Balance September 30, 2019 $ 2,168 |
Long-Term Debt And Lease Liab_2
Long-Term Debt And Lease Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Long-Term Debt And Lease Liabilities [Abstract] | |
Schedule Of Long-Term Debt To Unrelated Entites | September 30, December 31, 2019 2018 Note payable to a financial institution, with interest only payment until maturity. $ — $ — Installment notes bearing interest at the rate of 5.0% to 6.5% per annum collateralized by vehicles with monthly payments including interest, insurance and maintenance of approximately $5 — 124 Total long-term debt — 124 Less current maturities — (51) Long-term debt, less current maturities $ — $ 73 |
Components Of Lease Cost | Period Ended Three Months Nine Months Income Statement Account September 30, 2019 September 30, 2019 Operating lease cost: Production costs and taxes $ 3 $ 10 General and administrative 12 37 Total operating lease cost $ 15 $ 47 Finance lease cost: Amortization of right of use assets Depreciation, depletion, and amortization $ 21 $ 62 Interest on lease liabilities Net interest expense 1 4 Total finance lease cost $ 22 $ 66 |
Supplemental Cash Flow Information Related To Leases | Period Ended Three Months Nine Months September 30, 2019 September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 15 $ 45 Operating cash flows from finance leases 1 4 Finance cash flows from finance leases 9 40 Right of use assets obtained in exchange for lease obligations: Operating leases — 98 |
Supplemental Balance Sheet Information Related To Leases | Balance Sheet as of September 30, 2019 December 31, 2018 Operating Leases: Right of use asset - operating leases $ 55 $ — Lease liabilities - current $ 56 $ — Lease liabilities - noncurrent — — Total operating lease liabilities $ 56 $ — Finance Leases: Other property and equipment, gross $ 263 $ — Accumulated depreciation (129) — Other property and equipment, net $ 134 $ — Lease liabilities - current $ 59 $ — Lease liabilities - noncurrent 29 — Total finance lease liabilities $ 88 $ — |
Schedule Of Weighted Average Remaining Lease Term And Discount Rate | Operating Leases Finance Leases Weighted average remaining lease term 0.9 years 0.9 years Weighted average discount rate 6.0% 5.7% |
Maturity Analysis For Operating and Finance Lease Liabilities | Operating Leases Finance Leases 2019 (October 2019 - December 2019) $ 16 $ 27 2020 42 43 2021 — 20 Total lease payments 58 90 Less imputed interest (2) (2) Total $ 56 $ 88 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations [Abstract] | |
Schedule Of The Amounts In Net Loss From Discontinued Operations | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Revenues $ — $ — $ — $ 6 Production costs and taxes — — — (40) Depreciation, depletion, and amortization — — — (4) Interest income — — — 1 Gain on sale of assets — — — 1,157 Deferred income tax benefit — — — — Net income from discontinued operations $ — $ — $ — $ 1,120 |
Description Of Business And S_4
Description Of Business And Significant Accounting Policies (Narrative) (Details) - USD ($) | Jan. 26, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Description Of Business And Significant Accounting Policies [Line Items] | ||||
Unevaluated properties | $ 0 | $ 23,000 | ||
Impairment | 0 | $ 0 | ||
Sale of methane facility assets | $ 2,650,000 | |||
Accounts receivable - current | 511,000 | 533,000 | ||
Allowance for doubtful accounts | 0 | |||
Tax [Member] | ||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||
Accounts receivable - current | 129,000 | 129,000 | ||
Accounts receivable - noncurrent | $ 130,000 | $ 130,000 |
Description Of Business And S_5
Description Of Business And Significant Accounting Policies (Disaggregation Of Revenue) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 1,215,000 | $ 1,654,000 | $ 3,777,000 | $ 4,497,000 | |
Crude Oil [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,208,000 | 1,647,000 | 3,757,000 | 4,472,000 | |
Saltwater Disposal Fees [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 7,000 | $ 7,000 | 20,000 | $ 25,000 | |
Natural Gas Imbalances [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 0 | $ 0 |
Description Of Business And S_6
Description Of Business And Significant Accounting Policies (Inventory) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Description Of Business And Significant Accounting Policies [Abstract] | ||
Oil - carried at cost | $ 325 | $ 359 |
Equipment and materials - carried at market | 105 | |
Total inventory | $ 325 | $ 464 |
Description Of Business And S_7
Description Of Business And Significant Accounting Policies (Accounts Receivable) (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable - current | $ 511,000 | $ 533,000 |
Revenue [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable - current | 378,000 | 396,000 |
Tax [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable - current | 129,000 | 129,000 |
Accounts receivable - noncurrent | 130,000 | 130,000 |
Joint Interest [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable - current | $ 4,000 | $ 8,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Federal net operating loss carryforwards | 35,800,000 | |
Federal tax rate | 21.00% | |
Refundable credits | 260,000 | |
Estimated annual effective tax rate | 0.00% | |
Tax Period Between 2019 And 2037 [Member] | ||
Income Taxes [Line Items] | ||
Federal net operating loss carryforwards | 34,800,000 | |
Indefinite Tax Period [Member] | ||
Income Taxes [Line Items] | ||
Federal net operating loss carryforwards | $ 1,000,000 | |
Minimum [Member] | Tax Period Between 2019 And 2037 [Member] | ||
Income Taxes [Line Items] | ||
Federal net operating loss carryforwards expiration between, years | Jan. 1, 2019 | |
Maximum [Member] | Tax Period Between 2019 And 2037 [Member] | ||
Income Taxes [Line Items] | ||
Federal net operating loss carryforwards expiration between, years | Dec. 31, 2037 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) | Oct. 01, 2019itemshares | Jul. 01, 2019itemshares | Mar. 17, 2017$ / shares | Sep. 30, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares | Mar. 16, 2017$ / shares |
Capital Stock [Line Items] | ||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||
Number of directors | item | 3 | |||||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | ||||
Rights Plan [Member] | ||||||
Capital Stock [Line Items] | ||||||
Number of preferred share purchase right for each outstanding share of its common stock to shareholder | $ / shares | $ 1 | |||||
Common stock, Threshold for exercise of rights percentage | 4.95% | |||||
Subsequent Event [Member] | ||||||
Capital Stock [Line Items] | ||||||
Number of directors | item | 3 | |||||
Right [Member] | ||||||
Capital Stock [Line Items] | ||||||
Date declared | Mar. 17, 2017 | |||||
Date to be paid | Mar. 27, 2017 | |||||
Date of record | Mar. 16, 2017 | |||||
Directors, CFO And Interim CEO [Member] | ||||||
Capital Stock [Line Items] | ||||||
Common stock, New shares issued | 4,887 | |||||
Directors, CFO And Interim CEO [Member] | Subsequent Event [Member] | ||||||
Capital Stock [Line Items] | ||||||
Common stock, New shares issued | 5,225 | |||||
Series A Preferred Stock [Member] | ||||||
Capital Stock [Line Items] | ||||||
Preferred stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Preferred stock, shares issued | 0 | 0 | ||||
Preferred stock, shares authorized | 10,000 | 10,000 | ||||
Dividends conversion ratio | 0.001 | |||||
Exercise price | $ / shares | $ 1.10 | |||||
Series A Preferred Stock [Member] | Rights Plan [Member] | ||||||
Capital Stock [Line Items] | ||||||
Preferred stock, shares issued | 0 |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019$ / bbl | |
Derivative [Line Items] | |
Period of trailing average of WTI | 30 days |
Minimum [Member] | West Texas Intermediate [Member] | |
Derivative [Line Items] | |
Compensation reimbursement | 85 |
Earnings Per Common Share (Reco
Earnings Per Common Share (Reconciliations Of The Numerators And Denominators Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Common Share [Abstract] | ||||
Net income (loss) from continuing operations | $ (182) | $ 298 | $ (269) | $ 530 |
Net income from discontinued operations | $ 1,120 | |||
Weighted average shares - basic | 10,653,550 | 10,624,493 | 10,648,838 | 10,624,476 |
Dilution effect of share-based compensation, treasury method | ||||
Weighted average shares - dilutive | 10,653,550 | 10,624,493 | 10,648,838 | 10,624,476 |
Continuing operations | $ (0.02) | $ 0.03 | $ (0.03) | $ 0.05 |
Discontinued operations | $ 0.11 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Narrative) (Details) | Sep. 30, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease, Right-of-use asset | $ 55,000 |
Accounting Standards Update 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease, Right-of-use asset | 98,000 |
Finance Lease, Right-of-Use Asset | $ 0 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | Dec. 18, 2007 | Dec. 31, 2018 | Sep. 30, 2019 | Jan. 31, 2018 |
Related Party Transaction [Line Items] | ||||
Working interest percent | 15.00% | |||
Payments to acquire interest in the drilling program wells | $ 134,690 | |||
Hoactzin Partners, L.P. [Member] | Methane Project [Member] | ||||
Related Party Transaction [Line Items] | ||||
Net profits | $ 0 | $ 0 |
Oil And Gas Properties (Narrati
Oil And Gas Properties (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Oil And Gas Properties [Abstract] | ||
Depletion expense | $ 504,000 | $ 546,000 |
Gain (loss) on asset retirement obligations | $ 4,000 | $ 8,000 |
Oil And Gas Properties (Schedul
Oil And Gas Properties (Schedule Of Oil And Gas Properties) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Oil And Gas Properties [Abstract] | ||
Oil and gas properties | $ 6,574 | $ 6,503 |
Unevaluated properties | 23 | |
Accumulated depreciation, depletion, and amortization | (2,230) | (1,722) |
Oil and gas properties, net | $ 4,344 | $ 4,804 |
Asset Retirement Obligation (As
Asset Retirement Obligation (Asset Retirement Obligation Transactions) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Asset Retirement Obligation [Abstract] | ||
Balance | $ 2,179 | |
Accretion expense | 100 | $ 106 |
Liabilities incurred | ||
Liabilities settled | (56) | |
Liabilities relieved - sold properties | (55) | |
Balance | $ 2,168 |
Long-Term Debt And Lease Liab_3
Long-Term Debt And Lease Liabilities (Narrative) (Details) | 1 Months Ended | 9 Months Ended | |
Jul. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |||
Borrowing rate | 6.00% | ||
Office [Member] | |||
Debt Instrument [Line Items] | |||
Term of contract | 39 months | ||
Lease renewal term | 36 months | ||
Prosperity Bank [Member] | |||
Debt Instrument [Line Items] | |||
Rate above prime | 0.50% | ||
Interest rate | 6.00% | 5.50% | |
Credit facility maximum borrowing capacity | $ 3,800,000 | ||
Credit facility current borrowing capacity | $ 4,000,000 | $ 4,000,000 | |
Credit facility amount outstanding | 0 | $ 0 | |
Credit limit | 3,800,000 | ||
Prosperity Bank [Member] | Loans And Letters Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | $ 50,000,000 | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Borrowing rate | 6.50% | ||
Maximum [Member] | Vehicles [Member] | |||
Debt Instrument [Line Items] | |||
Term of contract | 36 months | ||
Discount rate | 6.50% | ||
Maximum [Member] | Prosperity Bank [Member] | |||
Debt Instrument [Line Items] | |||
Funded debt to EBITDA | 3.5 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Borrowing rate | 5.00% | ||
Minimum [Member] | Vehicles [Member] | |||
Debt Instrument [Line Items] | |||
Term of contract | 18 months | ||
Discount rate | 5.00% | ||
Minimum [Member] | Prosperity Bank [Member] | |||
Debt Instrument [Line Items] | |||
Current ratio | 1 | ||
Interest coverage | 3 |
Long-Term Debt And Lease Liab_4
Long-Term Debt And Lease Liabilities (Schedule Of Long-Term Debt To Unrelated Entities) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Note payable to a financial institution, with interest only payment until maturity | ||
Installment notes bearing interest at the rate of 5.0% to 6.5% per annum collateralized by vehicles with monthly payments including interest, insurance and maintenance of approximately $5 | 124 | |
Total long-term debt | 124 | |
Less current maturities | (51) | |
Long-term debt, less current maturities | $ 73 | |
Interest rate per annum | 6.00% | |
Periodic payments including interest, insurance and maintenance | $ 5 | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate per annum | 6.50% | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate per annum | 5.00% |
Long-Term Debt And Lease Liab_5
Long-Term Debt And Lease Liabilities (Components Of Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease Cost [Line Items] | ||
Total operating lease cost | $ 15 | $ 47 |
Amortization of right of use assets | 21 | 62 |
Interest on lease liabilities | 1 | 4 |
Total finance lease cost | 22 | 66 |
Production Costs And Taxes [Member] | ||
Lease Cost [Line Items] | ||
Total operating lease cost | 3 | 10 |
General and Administrative [Member] | ||
Lease Cost [Line Items] | ||
Total operating lease cost | $ 12 | $ 37 |
Long-Term Debt And Lease Liab_6
Long-Term Debt And Lease Liabilities (Supplemental Cash Flow Information Related To Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Long-Term Debt And Lease Liabilities [Abstract] | ||
Operating cash flows from operating leases | $ 15 | $ 45 |
Operating cash flows from finance leases | 1 | 4 |
Finance cash flows from finance leases | $ 9 | 40 |
Right of use assets obtained in exchange for lease obligations, Operating leases | $ 98 |
Long-Term Debt And Lease Liab_7
Long-Term Debt And Lease Liabilities (Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Long-Term Debt And Lease Liabilities [Abstract] | ||
Right of use asset - operating leases | $ 55 | |
Lease liabilities - current | 56 | |
Lease liabilities - noncurrent | ||
Total operating lease liabilities | 56 | |
Other property and equipment, gross | 263 | |
Accumulated depreciation | (129) | |
Other property and equipment, net | 134 | |
Lease liabilities - current | 59 | |
Lease liabilities - noncurrent | 29 | |
Total finance lease liabilities | $ 88 |
Long-Term Debt And Lease Liab_8
Long-Term Debt And Lease Liabilities (Schedule Of Weighted Average Remaining Lease Term And Discount Rate) (Details) | Sep. 30, 2019 |
Long-Term Debt And Lease Liabilities [Abstract] | |
Weighted average remaining lease term, Operating Leases | 10 months 24 days |
Weighted average discount rate, Operating Leases | 6.00% |
Weighted average remaining lease term, Finance Leases | 10 months 24 days |
Weighted average discount rate, Finance Leases | 5.70% |
Long-Term Debt And Lease Liab_9
Long-Term Debt And Lease Liabilities (Maturity Analysis For Operating and Finance Lease Liabilities) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Long-Term Debt And Lease Liabilities [Abstract] | |
2019 (October 2019 - December 2019) | $ 16 |
2020 | 42 |
Total lease payments | 58 |
Less imputed interest | (2) |
Total operating lease liabilities | 56 |
2019 (October 2019 - December 2019) | 27 |
2020 | 43 |
2021 | 20 |
Total lease payments | 90 |
Less imputed interest | (2) |
Total finance lease liabilities | $ 88 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of The Amounts In Net Loss From Discontinued Operations) (Details) - USD ($) $ in Thousands | Jan. 26, 2018 | Sep. 30, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net income from discontinued operations | $ 1,120 | |
Sale of methane facility assets | $ 2,650 | |
Discontinued Operations [Member] | Methane Facilities [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenues | 6 | |
Production costs and taxes | (40) | |
Depreciation, depletion, and amortization | (4) | |
Interest income | 1 | |
Gain on sale of assets | 1,157 | |
Net income from discontinued operations | $ 1,120 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) | 9 Months Ended | 57 Months Ended | |
Sep. 30, 2019USD ($)$ / shares$ / bblshares | Sep. 30, 2019USD ($)$ / shares | Sep. 30, 2012USD ($) | |
Loss Contingencies [Line Items] | |||
Cost reduction | $ 389,000 | ||
Cost reduction paid into common stock | $ 61,000 | ||
Shares issued for services | shares | 100,000 | ||
Share price | $ / shares | $ 0.61 | $ 0.61 | |
Period of trailing average of WTI | 30 days | ||
Drilling commitment | $ 293,000 | $ 293,000 | |
Drilling commitment incurred | 73,000 | ||
Cost reduction liability accrued | $ 0 | $ 0 | |
Incidence Of Non-Compliance [Member] | |||
Loss Contingencies [Line Items] | |||
Maximum potential loss | $ 386,000 | ||
Minimum [Member] | West Texas Intermediate [Member] | |||
Loss Contingencies [Line Items] | |||
Compensation reduction | $ / bbl | 70 | ||
Compensation reimbursement | $ / bbl | 85 |