Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | RILEY EXPLORATION PERMIAN, INC. | |
Entity Central Index Key | 0001001614 | |
Entity File Number | 1-15555 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-0267438 | |
Entity Address, Address Line One | 29 E. Reno Avenue | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Oklahoma City | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 73104 | |
City Area Code | 405 | |
Local Phone Number | 415-8677 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Voluntary Filers | No | |
Entity Public Float | $ 2.9 | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Trading Symbol | REPX | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 890,420 | |
ICFR Auditor Attestation Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current | ||
Cash and cash equivalents | $ 1,561 | $ 3,055 |
Accounts receivable | 294 | 557 |
Inventory | 361 | 415 |
Prepaid expenses | 108 | 247 |
Other current assets | 4 | 4 |
Total current assets | 2,328 | 4,278 |
Loan fees, net | 2 | 4 |
Right of use asset - operating leases | 42 | 41 |
Oil and gas properties, net (full cost accounting method) | 2,897 | 4,385 |
Other property and equipment, net | 102 | 149 |
Accounts receivable - noncurrent | 65 | |
Total assets | 5,371 | 8,922 |
Current liabilities | ||
Accounts payable - trade | 218 | 269 |
Accrued liabilities | 202 | 164 |
Lease liabilities - operating leases - current | 42 | 41 |
Lease liabilities - finance leases - current | 61 | 61 |
Asset retirement obligation - current | 78 | 75 |
Total current liabilities | 601 | 610 |
Lease liabilities - finance leases - noncurrent | 16 | 41 |
Asset retirement obligation - non current | 2,039 | 1,923 |
Total liabilities | 2,656 | 2,574 |
Commitments and contingencies (Note 8) | ||
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, $0.001 par value, authorized 100,000,000 shares, 890,420 and 888,231 shares issued and outstanding | 1 | 1 |
Additional paid in capital | 58,318 | 58,303 |
Accumulated deficit | (55,604) | (51,956) |
Total stockholders' equity | 2,715 | 6,348 |
Total liabilities and stockholders' equity | $ 5,371 | $ 8,922 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 890,420 | 888,231 |
Common stock, shares outstanding | 890,420 | 888,231 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | ||
Revenues | $ 3,038 | $ 4,911 |
Cost and expenses | ||
Production costs and taxes | 3,104 | 3,398 |
Depreciation, depletion, and amortization | 644 | 716 |
General and administrative | 2,187 | 1,302 |
Impairment Costs | 920 | |
Total cost and expenses | 6,855 | 5,416 |
Net loss from operations | (3,817) | (505) |
Other income (expense) | ||
Net interest expense | (8) | (10) |
Gain on sale of assets | 11 | 45 |
Other income | 166 | 6 |
Total other income | 169 | 41 |
Loss from operations before income tax | (3,648) | (464) |
Deferred income tax benefit | 28 | |
Net loss | $ (3,648) | $ (436) |
Net loss per share - basic and fully diluted | ||
Continuing operations | $ (4.10) | $ (0.49) |
Shares used in computing earnings per share | ||
Basic and fully diluted | 889,670 | 887,612 |
Oil And Gas Properties Revenue [Member] | ||
Revenues | ||
Revenues | $ 3,038 | $ 4,911 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance, value at Dec. 31, 2018 | $ 1 | $ 58,286 | $ (51,520) | $ 6,767 |
Balance, shares at Dec. 31, 2018 | 886,608 | |||
Net loss | (436) | (436) | ||
Compensation expense related to stock issued | 17 | $ 17 | ||
Compensation expense related to stock issued, shares | 1,624 | |||
Balance, shares at Dec. 31, 2019 | 888,231 | 888,231 | ||
Balance, value at Dec. 31, 2019 | $ 1 | 58,303 | (51,956) | $ 6,348 |
Net loss | (3,648) | (3,648) | ||
Compensation expense related to stock issued | 14 | 14 | ||
Compensation expense related to stock issued, shares | 2,137 | |||
Common stock issued for exercise of options, value | 1 | $ 1 | ||
Common stock issued for exercise of options, shares | 52 | 52 | ||
Balance, shares at Dec. 31, 2020 | 890,420 | 890,420 | ||
Balance, value at Dec. 31, 2020 | $ 1 | $ 58,318 | $ (55,604) | $ 2,715 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | ||
Net loss | $ (3,648,000) | $ (436,000) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation, depletion, and amortization | 644,000 | 716,000 |
Amortization of loan fees-interest expense | 2,000 | 5,000 |
Accretion of discount on asset retirement obligation | 125,000 | 132,000 |
Gain on asset sales | (11,000) | (45,000) |
Loan Forgiveness - PPP Loan | (166,000) | |
Compensation and services paid in stock / stock options | 14,000 | 17,000 |
Impairment | 920,000 | |
Changes in assets and liabilities: | ||
Accounts receivable | 328,000 | 41,000 |
Inventory, prepaid expenses and other assets | 193,000 | (68,000) |
Accounts payable | 32,000 | 63,000 |
Accrued liabilities | 43,000 | (123,000) |
Settlement on asset retirement obligation | (25,000) | (76,000) |
Net cash provided by (used in) operating activities | (1,549,000) | 226,000 |
Investing activities | ||
Additions to oil and gas properties | (103,000) | (437,000) |
Proceeds from sale of oil and gas properties | 38,000 | 56,000 |
Additions to other property and equipment | (6,000) | (2,000) |
Proceeds from sale of other property and equipment | 150,000 | |
Net cash used in investing activities | (71,000) | (233,000) |
Financing activities | ||
Proceeds from borrowings | 166,000 | |
Repayments of borrowings | (41,000) | (53,000) |
Proceeds from exercise of options | 1,000 | |
Net cash provided by (used in) financing activities | 126,000 | (53,000) |
Net change in cash and cash equivalents | (1,494,000) | (60,000) |
Cash and cash equivalents, beginning of period | 3,055,000 | 3,115,000 |
Cash and cash equivalents, end of period | 1,561,000 | 3,055,000 |
Supplemental cash flow information: | ||
Cash interest payments | 6,000 | 5,000 |
Supplemental non-cash investing and financing activities: | ||
Financed company vehicles | 53,000 | 57,000 |
Asset retirement obligations incurred | 12,000 | |
Revisions to asset retirement obligations | $ 69,000 | (187,000) |
Capital expenditures included in accounts payable and accrued liabilities | $ 88,000 |
Description Of Business And Sig
Description Of Business And Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Description Of Business And Significant Accounting Policies [Abstract] | |
Description Of Business And Significant Accounting Policies | 1. Description of Business and Significant Accounting Policies On February 25, 2021, the stockholders of the Company approved an Agreement and Plan of Merger which provided for the merger of the Company with Riley Exploration – Permian, LLC (“Riley”). This merger was successfully completed on February 26, 2021. In connection with the merger, Tengasco has changed its name to Riley Exploration Permian, Inc. The information in these Notes to Consolidated Financial Statements reflect the Tengasco Inc., prior to the merger with Riley and does not include information related to Riley’s operations. Tengasco, Inc. (the “Company”) is a Delaware corporation. The Company is in the business of exploration for and production of oil and natural gas. The Company’s primary area of exploration and production is in Kansas. The Company’s wholly owned subsidiary, Tengasco Pipeline Corporation (“TPC”) owned and operated a pipeline which it constructed to transport natural gas from the Company’s Swan Creek Field to customers in Kingsport, Tennessee. The Company sold all its pipeline assets on August 16, 2013. The Company’s wholly owned subsidiary, Manufactured Methane Corporation (“MMC”) operated treatment and delivery facilities in Church Hill, Tennessee for the extraction of methane gas from a landfill for eventual sale as natural gas and for the generation of electricity. The Company sold all its methane facility assets on January 26, 2018. Principles of Consolidation The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries after elimination of all significant intercompany transactions and balances. Use of Estimates The accompanying consolidated financial statements are prepared in conformity with U.S. GAAP which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. Revenue Recognition 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 it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. 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 them 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. 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 were no specific volumes of electricity that were 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 will not recognize revenues associated with any sales volumes after that date. Revenues associated with the methane facility are included in Discontinued Operations. (See Note 5. 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 in 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 years ended December 31, 2020 and 2019 (in thousands) : Year ended December 31, 2020 2019 Crude oil $ 3,015 4,884 Saltwater disposal fees 23 27 Total $ 3,038 $ 4,911 There were no natural gas imbalances at December 31, 2020 or 2019. 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 net realizable value. The cost component of the oil inventory is calculated using the average quarterly per barrel cost for the quarter ended December 31, 2020 and December 31, 2019. During 2020 and 2019, the Company included production costs and taxes in its calculation of estimated cost. The market component is calculated using the average December 2020 and December 2019 oil sales price for the Company’s Kansas properties. At December 31, 2020 and December 31, 2019, inventory consisted of the following (in thousands): December 31, 2020 2019 Oil – carried at cost $ 361 $ 415 Equipment and materials – carried at net realizable value — — Total inventory $ 361 $ 415 Oil and Gas Properties The Company follows the full cost method of accounting for oil and gas property acquisition, exploration, and development activities. Under this method, all costs incurred in connection with acquisition, exploration, and development of oil and gas reserves are capitalized. Capitalized costs include lease acquisitions, seismic related costs, certain internal exploration costs, drilling, completion, and estimated asset retirement costs. The capitalized costs of oil and gas properties, plus estimated future development costs relating to proved reserves and estimated asset retirement costs which are not already included net of estimated salvage value, are amortized on the unit-of-production method based on total proved reserves. The Company has determined its reserves based upon reserve reports provided by LaRoche Petroleum Consultants Ltd. since 2009. The costs of unproved properties are excluded from amortization until the properties are evaluated, subject to an annual assessment of whether impairment has occurred. The Company had $0 in unevaluated properties as of both December 31, 2020 and 2019. 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 performed its ceiling tests during 2020 and 2019, resulting in an impairment of its oil and gas properties of $920,000 in 2020 and no impairment in 2019. Asset Retirement Obligation An asset retirement obligation associated with the retirement of a tangible long-lived asset is recognized as a liability in the period incurred, with an associated increase in the carrying amount of the related long-lived asset, our oil and natural gas properties. The cost of the tangible asset, including the asset retirement cost, is depleted over the useful life of the asset. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. Accretion expense is recorded as “Production costs and taxes” in the Consolidated Statements of Operations. If the estimated future cost of the asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the long-lived asset. Revisions to estimated asset retirement obligations can result from changes in retirement cost estimates, revisions to estimated inflation rates, and changes in the estimated timing of abandonment. Manufactured Methane Facilities The Manufactured Methane facilities were placed into service in April 2009 and were being depreciated using the straight-line method over the useful life based on the estimated landfill closure date of December 2041. The Company sold all its methane facility assets, except the applicable U.S. patent, on January 26, 2018. Other Property and Equipment Other property and equipment is carried at cost. The Company provides for depreciation of other property and equipment using the straight-line method over the estimated useful lives of the assets which range from two to seven years. Net gains or losses on other property and equipment disposed of are included in operating income in the period in which the transaction occurs. Stock-Based Compensation The Company records stock-based compensation to employees based on the estimated fair value of the award at grant date. We recognize expense on a straight-line basis over the requisite service period. For stock-based compensation that vests immediately, the Company recognizes the entire expense in the quarter in which the stock-based compensation is granted. The Company recorded compensation expense of $14,000 in 2020 and $17,000 in 2019. Accounts Receivable Accounts receivable consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date, uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 days of production, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied to the earliest unpaid items. We review accounts receivable periodically and reduce the carrying amount by a valuation allowance that reflects our best estimate of the amount that may not be collectible. No allowance was recorded at December 31, 2020 and 2019. At December 31, 2020 and 2019, accounts receivable consisted of the following (in thousands): December 31, 2020 2019 Revenue $ 292 $ 415 Tax — 65 Joint interest 2 77 Accounts receivable - current $ 294 $ 557 Tax - noncurrent $ — $ 65 At December 31, 2019, the Company recorded a tax related non-current receivable in the amount of $65. (See Note 1 2 . Income Taxes) Income Taxes Income taxes are reported in accordance with U.S. GAAP, which requires the establishment of deferred tax accounts for all temporary differences between the financial reporting and tax bases of assets and liabilities, using currently enacted federal and state income tax rates. In addition, deferred tax accounts must be adjusted to reflect new rates if enacted into law. Realization of deferred tax assets is contingent on the generation of future taxable income. As a result, management considers whether it is more likely than not that all or a portion of such assets will be realized during periods when they are available, and if not, management provides a valuation allowance for amounts not likely to be recognized. Management periodically evaluates tax reporting methods to determine if any uncertain tax positions exist that would require the establishment of a loss contingency. A loss contingency would be recognized if it were probable that a liability has been incurred as of the date of the financial statements and the amount of the loss can be reasonably estimated. The amount recognized is subject to estimates and management’s judgment with respect to the likely outcome of each uncertain tax position. The amount that is ultimately incurred for an individual uncertain tax position or for all uncertain tax positions in the aggregate could differ from the amount recognized. Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. The Company’s primary business activities include oil sales to a limited number of customers in the state of Kansas. The related trade receivables subject the Company to a concentration of credit risk. The Company sells a majority of its crude oil primarily to two customers in Kansas. Although management believes that customers could be replaced in the ordinary course of business, if the present customers were to discontinue business with the Company, it may have a significant adverse effect on the Company’s results of operations. Revenue from the top two purchasers accounted for 84.7% and 11.1% of total revenues for year ended December 31, 20 20 . Revenue from the top two purchasers accounted for 87.7% and 11.8% of total revenues for year ended December 31, 2019. As of December 31, 2020 and 2019, two of the Company’s oil purchasers accounted for 96.8% and 86.0% , respectively of accounts receivable, of which one oil purchaser accounted for 83.9% and 76.9% , respectively. Earnings per Common Share The Company reports basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share which include the effect of all potentially dilutive securities unless their impact is anti-dilutive. The following are reconciliations of the numerators and denominators of the Company’s basic and diluted earnings per share, ( in thousands except for share and per share amounts): For the years ended December 31, 2020 2019 Income (numerator): Net loss $ (3,648) $ (436) Weighted average shares (denominator): Weighted average shares - basic 889,670 887,612 Dilution effect of share-based compensation, treasury method — — Weighted average shares - dilutive 889,670 887,612 Loss per share – Basic and Dilutive: Basic $ (4.10) $ (0.49) Dilutive $ (4.10) $ (0.49) Options issued to the Company’s directors in which the exercise price was higher than the average market price each quarter was also excluded from diluted shares as they would have been anti-dilutive (See Note 12. Stock and Stock Options). In addition, the shares that would be issued to employees and Company directors have also been excluded from this calculation. The number of shares have been adjusted to reflect the impact of the 1 for 12 reverse stock split approved at the shareholder meeting dated February 25, 2021, effective with trading on March 1, 2021. (See Note 8 . Commitments and Contingencies) Fair Value of Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payables, accrued liabilities, lease liabilities, and long-term debt approximates fair value as of December 31, 2020 and 2019. Derivative Financial Instruments The Company uses derivative instruments to manage our exposure to commodity price risk on sales of oil production. The Company does not enter into derivative instruments for speculative trading purposes. The Company presents the fair value of derivative contracts on a net basis where the right to offset is provided for in our counterparty agreements. As of December 31, 2020 and 2019, the Company did not have any open derivatives . |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements In June 2016, the FASB issued an update that requires changes to the recognition of credit losses on financial instruments not accounted for at fair value through net income, including loans, debt securities, trade receivables, net investments in leases and available-for-sale debt securities. The amended standard broadens the information that an entity must consider in developing its estimate of expected credit losses, requiring an entity to estimate credit losses over the life of an exposure based on historical information, current information and reasonable and supportable forecasts. The guidance is effective for interim and annual periods beginning after December 15, 2019. The Company adopted the update effective January 1, 2020 and the impact was not material to the Consolidated Financial Statements |
Oil And Gas Properties
Oil And Gas Properties | 12 Months Ended |
Dec. 31, 2020 | |
Oil And Gas Properties [Abstract] | |
Oil And Gas Properties | 3. Oil and Gas Properties The following table sets forth information concerning the Company’s oil and gas properties: (in thousands): December 31, 2020 2019 Oil and gas properties $ 6,752 $ 6,751 Ceiling test impairment $ (3,855) $ — Oil and gas properties, net of ceiling test impairment $ 2,897 $ 6,751 Unevaluated properties — — Accumulated depreciation, depletion and amortization (2,935) (2,366) Ceiling test impairment 2,935 — Accumulated depreciation, depletion and amortization, net of ceiling test impairment — (2,366) Oil and gas properties, net $ 2,897 $ 4,385 During the years ended December 31, 2020 and 2019, the Company recorded depletion expense of $569,000 and $637,000 , respectively. |
Other Property And Equipment
Other Property And Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Other Property And Equipment [Abstract] | |
Other Property And Equipment | 4. Other Property and Equipment Other property and equipment consisted of the following as of December 31, 2020: (in thousands) Depreciable Accumulated Net Book Type Life Gross Cost Depreciation Value Vehicles 2 - 3 yrs 259 157 102 Other 5 - 7 yrs 83 83 — Total $ 342 $ 240 $ 102 Other property and equipment consisted of the following as of December 31, 2019: (in thousands) Depreciable Accumulated Net Book Type Life Gross Cost Depreciation Value Vehicles 2 - 3 years 295 146 149 Other 5 - 7 years 83 83 — Total $ 378 $ 229 $ 149 The Company uses the straight-line method of depreciation for other property and equipment. During each of the years ended December 31, 2020 and 2019, the Company recorded depreciation expense of $75,000 and $79,000 , respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 5 . Long- Term Debt At December 31, 2020, the Company had a revolving credit facility with Prosperity Bank. Upon closing the M erger Transaction with Riley on February 26, 2021, the credit facility with Prosperity Bank was terminated . Other than cash flow from operations, this credit facility has historically been the Company’s primary source to fund working capital and future capital spending. Under the credit facility, loans and letters of credit were available to the Company on a revolving basis in an amount outstanding not to exceed the lesser of $50 million or the Company’s borrowing base in effect from time to time. As of December 31, 2020, the Company’s borrowing base was $3.1 million, subject to a credit limit based on current covenants of approximately $1.442 million. The credit facility was secured by substantially all of the Company’s producing and non-producing oil and gas properties. The credit facility include d certain covenants with which the Company wa s required to comply. At December 31, 2020, these covenants include d the following: (a) Current Ratio > 1 :1; (b) Funded Debt to EBITDA < 3.5 x; and (c) Interest Coverage > 3.0 x. At December 31, 2020, the interest rate on this credit facility was 3.75% . The Company was in compliance with all covenants as of December 31, 2020 and 2019. The Company had zero borrowings under its revolving credit facility with Prosperity Bank on December 31, 2020 and December 31, 2019. As the credit facility was terminated on February 26, 2 0 21, no further borrowing base reviews will take place. During the second quarter of 2020, t he Company was approved by the Small Business Administration to receive a Paycheck Protection Program (“PPP”) loan in the amount of approximately $166,000 . This loan was funded by Prosperity Bank in May 2020. The PPP loan is not part of the credit facility with Prosperity Bank as described above and therefore is not subject to the same terms as Company’s credit facility. The PPP loan has an interest rate of 1% with a maturity date of May 2022. There are no payments due during the first six months of the loan. After the six-month period has expired, all outstanding accrued interest is due. At that time, the remaining unforgiven portion of the loan will be due in 18 equal monthly installments of principal and interest. The Company applied for forgiveness of the amount due on the PPP loan based on spending the loan proceeds on eligible expenses as defined by statute. On November 5, 2020, Prosperity Bank notified the Company that the PPP loan had been forgiven and the loan was closed. During the fourth quarter of 2020, the Company recorded other income of $166,000 as a result of the PPP loan forgiveness. |
Lease Liabilities
Lease Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Lease Liabilities [Abstract] | |
Lease Liabilities | 6. Lease Liabilities Effective January 1, 2019, 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 and an August 31, 2020 expiration date. The Company renewed the lease for 12 additional months thereby extending the expiration date to August 31, 2021. 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. As a result of the renewal of the corporate office lease, the Company recorded right-of-use assets and liabilities associated with operating leases of approximately $63,000 in 2020 . 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 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 3.75% as the discount rate for these agreements. Components of lease costs for the years December 31, 2020 and 2019 (in thousands): For the years ended December 31, Statement of Operations Account 2020 2019 Operating lease cost: Production costs and taxes $ 13 $ 13 General and administrative 50 49 Total operating lease cost $ 63 $ 62 Finance lease cost: Amortization of right of use assets Depreciation, depletion, and amortization $ 75 $ 79 Interest on lease liabilities Net interest expense 5 5 Total finance lease cost $ 80 $ 84 Supplemental lease related cash flow information for the years December 31, 2020 and 2019 (in thousands): For the years ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 63 $ 62 Operating cash flows from finance leases 5 5 Finance cash flows from finance leases $ 41 $ 53 Right of use assets obtained in exchange for lease obligations: Operating leases $ 63 $ 98 Supplemental lease related balance sheet information as of December 31, 2020 and December 31, 2019 (in thousands): Balance Sheet as of December 31, 2020 2019 Operating Leases: Right of use asset - operating leases $ 42 $ 41 Lease liabilities - current $ 42 $ 41 Lease liabilities - noncurrent — — Total operating lease liabilities $ 42 $ 41 Finance Leases: Other property and equipment, gross $ 342 $ 295 Accumulated depreciation (240) (146) Other property and equipment, net $ 102 $ 149 Lease liabilities - current $ 61 $ 61 Lease liabilities - noncurrent 16 41 Total finance lease liabilities $ 77 $ 102 Weighted average remaining lease term and discount rate as of December 31, 2020: Operating Leases Finance Leases Weighted average remaining lease term 0.7 years 0.7 years Weighted average discount rate 3.75% 5.30% Maturity of lease liabilities as of December 31, 2020 (in thousands): Operating Leases Finance Leases 2021 43 62 2022 — 16 Total lease payments 43 78 Less imputed interest (1) (1) Total $ 42 $ 77 |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2020 | |
Liquidity [Abstract] | |
Liquidity | 7. Liquidity On February 25, 2021, the stockholders of the Company approved an Agreement and Plan of Merger which provided for the merger of the Company with Riley Exploration – Permian, LLC (“Riley”). This merger was successfully completed on February 26, 2021. During 2021, the Company believes as a result of this merger its revenues as well as cash on hand will be sufficient to fund operating costs and general and administrative expenses and to remain in compliance with its bank covenants. If revenues and cash on hand are not sufficient to fund these expenses or if the Company needs additional funds for capital spending, the Company may be able to borrow funds against the credit facility in place with Riley at the time of the merger. In addition, if required, the Company could also issue additional shares of stock and/or sell assets as needed to further fund operations. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 8. Commitments and Contingencies 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 December 31, 2020, the reductions were approximately $430,000 . Of the $430,000 , approximately $117,000 will be paid in the Company’s common stock. The $117,000 value represents approximately 8,000 common share valued at $14.88 per share which represents the closing price on December 31, 2020 (t he number of shares and price per share have been adjusted to reflect the impact of the 1 for 12 reverse stock split approved at the shareholder meeting dated February 25, 2021, effective with trading on March 1, 2021 ). The Company has not accrued any liabilities associated with these compensation reductions. As of the closing of the Merger Transaction with Riley, the potential reimbursement of this amount and shares are no longer due to the former Tengasco employees. Legal Proceedings We are involved in various legal proceedings relating to our operations and review the status of these proceedings on an ongoing basis and, from time to time, may settle or otherwise resolve these matters on terms and conditions that management believes are in our best interests. Although the results cannot be known with certainty, we currently believe that the ultimate results of such proceedings will not have a material adverse effect on our business, financial position, results of operations or liquidity. On May 14, 2020 the Company received notice of three orders (the “Orders”) issued by the Regional Director of the Bureau of Safety and Environmental Enforcement (“BSEE”) of the Department of the Interior dated May 13, 2020, stating that the Company, together with a group of several other named parties, were being looked to by the BSEE to perform the decommissioning of facilities on three Gulf of Mexico leases owned by Hoactzin Partners, L. P. (“Hoactzin’) and other lessees due to Hoactzin’s default in its lease obligations to decommission such facilities. No monetary amount was sought or described in the Orders. Hoactzin is controlled by Peter E. Salas, the chairman of the Company’s Board of Directors. Management’s assessment of the likelihood of a loss is remote as the Company believes it has available defenses to the Orders. On August 21, 2020, the bankruptcy court in the Northern District of Texas in Dallas entered an agreed order requiring Hoactzin, the surety on Hoactzin’s bonds, and seven other working interest owners (a group not including the Company) to complete all the necessary decommissioning on all of Hoactzin’s facilities and to prepay all anticipated expenses, including insurance premiums and a contingency reserve, estimated to be necessary to do so. The bankruptcy trustee has reported that all funds to be paid have been received from all parties to the agreed order. Decommissioning is proceeding under the direction of the bankruptcy trustee and approved contractors under the control of the bankruptcy court. Accordingly, it is anticipated that all work contemplated by the Orders will be completed by, and at the expense of, other persons and the relief sought in the Orders for the Company to perform the work will at that time be moot as to the Company. In response to the announcement that Tengasco, Inc. and Riley Exploration – Permian LLC were engaging in a business combination, on December 2, 2020 a purported shareholder of Tengasco filed a lawsuit against Tengasco and the members of the Tengasco board of directors in the United States District Court, Southern District of New York, captioned Luis A. Nieves Cortes v. Tengasco Inc., et al., Case No. 1:20-cv-10111-LAP (which we refer to as the “Cortes complaint”). On December 8, 2020 a purported shareholder of Tengasco filed a lawsuit against Tengasco, the members of the Tengasco board of directors, and Mike Rugen, Tengasco’s CFO/Interim CEO, in the United States District Court, Southern District of New York, captioned Sarah King v. Tengasco, Inc., et al., Case No. 1:20-cv-10343 (which we refer to as the “King complaint”). On December 10, 2020 a purported shareholder of Tengasco filed a lawsuit against Tengasco, the members of the Tengasco board of directors, Antman Sub, LLC and Riley Exploration Permian, LLC in the United States District Court, District of Delaware, captioned Lewis D. Baker v. Tengasco, Inc., et al., Case No. 1:20-cv-01681-UNA (which we refer to as the “Baker complaint”). On December 31, 2020 a purported shareholder of Tengasco filed a lawsuit against Tengasco and the members of the Tengasco board of directors in the United States District Court, Southern District of New York, captioned Lara Gaudio v. Tengasco, Inc., et al., Case No. 1:20-cv-11114-UA (which we refer to as the “Gaudio complaint”). On February 4, 2021 a purported shareholder of Tengasco filed a lawsuit against Tengasco and the members of the Tengasco board of directors in the United States District Court, District of Colorado, captioned Robert Wilhelm v. Tengasco, Inc., et al., Case No. 1:21-cv-00348 (which we refer to as the “Wilhelm complaint” and together with the Cortes complaint, the King complaint, the Baker complaint, and the Wilhelm complaint, the “federal law complaints”). The plaintiffs in the federal law complaints generally claimed that the defendants disseminated a false or misleading registration statement regarding the proposed merger in violation of Section 14(a) and Section 20(a) of the Exchange Act and/or Rule 14a-9 promulgated under the Exchange Act. In addition, the plaintiff in the King complaint claims that the individual defendants breached their fiduciary duties of candor and disclosure. The plaintiffs sought, among other things, injunctive relief to prevent consummation of the merger until the alleged disclosure violations were cured, damages in the event the merger was consummated, and an award of attorney's fees and costs. While Tengasco and Riley believed the previous disclosures were complete and disagreed with the plaintiffs, Tengasco filed a Form 8-K that included certain additional requested disclosures. Plaintiffs dismissed all of the federal law complaints . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 9. 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. In 2020, the Company recorded a ceiling test impairment of its oil and gas properties. The carrying amounts of other financial instruments including cash and cash equivalents, accounts receivable, account payables, accrued liabilities, lease liabilities, and long-term debt in our balance sheet approximates fair value as of December 31, 2020 and December 31, 2019. |
Asset Retirement Obligation
Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligation | 10. Asset Retirement Obligation Our asset retirement obligations represent the estimated present value of the amount we will incur to plug, abandon and remediate our producing properties at the end of their productive lives in accordance with applicable laws. The following table summarizes the Company’s Asset Retirement Obligation transactions for the years ended December 31, 2019 and 2020 (in thousands): Balance December 31, 2018 $ 2,179 Accretion expense 132 Liabilities incurred 12 Liabilities settled (83) Liabilities sold properties (55) Revisions in estimated liabilities (187) Balance December 31, 2019 $ 1,998 Accretion expense 125 Liabilities incurred — Liabilities settled (25) Liabilities sold properties (50) Revisions in estimated liabilities 69 Balance December 31, 2020 $ 2,117 The revisions in estimated liabilities resulted from change in timing of wells to be plugged, change in inflation factor, and change in current plugging costs. |
Stock And Stock Options
Stock And Stock Options | 12 Months Ended |
Dec. 31, 2020 | |
Stock And Stock Options [Abstract] | |
Stock And Stock Options | 11. Stock and Stock Options In October 2000, the Company approved a Stock Incentive Plan which was effective for a ten-year period commencing on October 25, 2000 and ending on October 24, 2010. The aggregate number of shares of Common Stock as to which options and Stock Appreciation Rights may be granted to participants under the original Plan was not to exceed 7,000,000 . An amendment to the Plan increasing the number of shares that may be issued under the Plan by 3,500,000 shares and extending the Plan for another ten years was approved by the Company’s Board of Directors on February 1, 2008 and approved by the Company’s shareholders at the Annual Meeting of Stockholders held on June 2, 2008. On March 21, 2016 at a special meeting of the shareholders, the Plan was amended to permit grant of common stock. Options are not transferable, are exercisable for 3 months after voluntary resignation from the Company, and terminate immediately upon involuntary termination from the Company. The purchase price of shares subject to this Plan shall be determined at the time the options are granted, but are not permitted to be less than 85% of the fair market value of such shares on the date of grant. On March 21, 2016, the Company’s shareholders approved a 1 for 10 reverse stock split, effective with trading on March 24, 2016. All share and per share information in the following tables has been adjusted to reflect the impact of this reverse stock split. In August 2018, the Tengasco, Inc. 2018 Stock Incentive Plan (the “2018 Plan”) was adopted to continue to provide an incentive to key employees, officers, directors, and consultants of the Company and its present and future subsidiary corporations, and to offer an additional inducement in obtaining the services of such individuals. The 2018 Plan contains the same substantive terms as the Company’s previous stock incentive plan adopted in October 2000 and thereafter amended until its expiration on January 10, 2018. The 2018 Plan provided an aggregate number of shares for which shares, options, and stock appreciation rights may be issued equal to the number of shares that had been available for issuance in the previous plan upon expiration. The 2018 Plan was approved by a majority of the Company’s shareholders acting on written consents and the shares thereunder were subject to Registration Statement on Form S-8 filed August 27, 2018. At the shareholder meeting dated February 25, 2021, the shareholders approved an adopted the Riley Exploration Permian, Inc. Long Term Incentive Plan. Also, o n February 25, 2021 , the Company’s shareholders approved a 1 for 12 reverse stock split, effective with trading on March 1, 2021 . All share and per share information in the following tables has been adjusted to reflect the impact of this reverse stock split. The following table summarizes stock option activity in 2020 and 2019: 2020 2019 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Outstanding, beginning of year 781 $ 26.16 1406 $ 38.16 Granted — $ — — $ — Exercised (52) $ 14.40 — $ — Expired/cancelled (625) $ 29.16 (625) $ 53.16 Outstanding, end of year 104 $ 14.40 781 $ 26.16 Exercisable, end of year 104 $ 14.40 781 $ 26.16 The following table summarizes information about stock options outstanding and exercisable at December 31, 2020: Weighted Average Exercise Price Options Outstanding (shares) Weighted Average Remaining Contractual Life (years) Options Exercisable (shares) $ 14.40 104 — 104 104 104 On December 31, 2020, Peter Salas exercised approximately 52 options which represented all of his options then outstanding. No other options were issued or exercised during 2020 or 201 9. On January 3, 2021, all remaining options outstanding on December 31, 2020 expired. Rights Agreement Effective March 17, 2017 the Company’s board of directors (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 were to expire on the earlier of March 16, 2020; or a date the Board of Directors determines by resolution in its business judgment that the Rights Agreement is no longer necessary or appropriate; or in certain other specified circumstances. On March 16, 2020 the Board of Directors by unanimous resolution acting without meeting determined to extend the expiration date of the Rights Agreement to March 16, 2021 as expressly contemplated by the Rights Agreement. 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. On October 20, 2020, the Board of Directors approved the Company entering into that certain Agreement and Plan of Merger (the “Merger Agreement”), dated October 21, 2020, by and among the Company, Antman Sub, LLC, a wholly owned subsidiary of the Company, and Riley Exploration—Permian, LLC. Accordingly, the Rights Agreement and the Rights will automatically terminate at the closing of the Merger contemplated by the Merger Agreement pursuant to the terms of the Rights Agreement. On February 25, 2021, the stockholders of the Company approved an Agreement and Plan of Merger which provided for the merger of the Company with Riley Exploration – Permian, LLC. This merger was successfully completed on February 26, 2021, therefore terminating the Rights Agreement and the Rights. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 12. Income Taxes The Company did not have taxable income for the years ended December 31, 2020, and 2019. A reconciliation of the statutory U.S. Federal income tax and the income tax provision included in the accompanying consolidated statements of operations is as follows (in thousands): Year Ended December 31, 2020 Total Statutory rate 21 % Tax (benefit) expense at statutory rate $ (764) State income tax (benefit) expense (148) Permanent difference 184 Return to provision 1 Stock Compensation Tax Deficit - ASU 2016-09 7 2020 NOL Expiration 334 Net change in deferred tax asset valuation allowance 386 Total income tax provision (benefit) $ — Year Ended December 31, 2019 Total Statutory rate 21 % Tax (benefit) expense at statutory rate $ (99) State income tax (benefit) expense 321 Permanent difference — Return to provision (40) Stock Compensation Tax Deficit - ASU 2016-09 4 2019 NOL Expiration 557 Net change in deferred tax asset valuation allowance (771) Total income tax provision (benefit) $ (28) Management has evaluated the positions taken in connection with the tax provisions and tax compliance for the years included in these financial statements. The Company believes that all of the positions it has taken will prevail on a more likely than not basis. As such no disclosure of such positions was deemed necessary. Management continuously estimates its ability to recognize a deferred tax asset related to prior period net operating loss carry forwards based on its anticipation of the likely timing and adequacy of future net income. At December 31, 2020, federal net operating loss carryforwards amounted to approximately $35.4 million, of which $30.1 million expires between 2021 and 2037 which can offset 100% of taxable income and $5.3 million that has an indefinite carryforward period which can offset 80% of taxable income per year. The total net deferred tax asset was zero at December 31, 2020 and $65,000 at December 31, 2019. The Company recorded an allowance on the remaining deferred tax asset at December 31, 2019 primarily due to expected future losses in the near term which would cause cumulative losses being incurred during the 3 year period. The Company recorded an allowance on the deferred tax asset at December 31, 2020 primarily due to expected future losses in the near term which would cause cumulative losses being incurred during the 3 year period. The total valuation allowance at December 31, 2020 was $11.1 million and $10.7 million at December 31, 2019. The net operating loss information above does not include the impact of the Merger Transaction with Riley. Our open tax years include all returns filed for 2016 and later. In addition, any of the Company’s NOLs for tax reporting purposes are still subject to review and adjustment by both the Company and the IRS to the extent such NOLs should be carried forward into an open tax year. Comprehensive tax reform legislation enacted in December 2017, commonly referred to as the Tax Cuts and Jobs Act (the “2017 Tax Act”), made significant changes to U.S. federal income tax laws. The 2017 Tax Act, among other things repealed the corporate AMT for tax years beginning on or after January 1, 2018 and provides for existing alternative minimum tax credit carryovers to be refunded beginning in 2018. The Company has approximately $130,000 in refundable credits, and it expects that a substantial portion will be refunded between 2019 and 2021. As 50% of the credit w as refunded when we file d the 2019 tax return, this amount is recorded as a current accounts receivable on the Balance Sheet at December 31, 2019, with balance of this refund recorded as a non-current accounts receivable. In September 2020, the Company received a tax refund of approximately $130,000 associated with the tax related accounts receivable at December 31, 2019. The Company’s deferred tax assets and liabilities are as follows: (in thousands) Year Ended December 31, 2020 2019 Net deferred tax assets (liabilities): Net operating loss carryforwards $ 9,596 $ 9,119 Oil and gas properties 922 1,054 Property, Plant and Equipment 1 (5) Asset retirement obligation 542 500 Tax credits — 65 Miscellaneous 29 36 Valuation allowance (11,090) (10,704) Net deferred tax asset $ — $ 65 |
Quarterly Data And Share Inform
Quarterly Data And Share Information | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Data And Share Information [Abstract] | |
Quarterly Data And Share Information | 13. Quarterly Data and Share Information (unaudited) The following tables sets forth for the fiscal periods indicated, selected consolidated financial data (In thousands, except per share data) Fiscal Year Ended 2020 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenues $ 963 563 $ 765 $ 747 Net loss (527) (554) (813) (1,754) Loss per common share $ (0.60) $ (0.60) $ (0.96) $ (1.92) Fiscal Year Ended 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenues $ 1,171 $ 1,390 $ 1,215 $ 1,135 Net income (loss) (96) 9 (182) (167) Income (loss) per common share $ (0.12) $ 0.01 $ (0.24) $ (0.12) |
Supplemental Oil And Gas Inform
Supplemental Oil And Gas Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Oil And Gas Information [Abstract] | |
Supplemental Oil And Gas Information | 14. Supplemental Oil and Gas Information (unaudited) Information with respect to the Company’s oil and gas producing activities is presented in the following tables. Estimates of reserves quantities, as well as future production and discounted cash flows before income taxes, were determined by LaRoche Petroleum Consultants Ltd. All of the Company’s reserves were located in the United States. Capitalized Costs Related to Oil and Gas Producing Activities The table below reflects our capitalized costs related to our oil and gas producing activities at December 31, 2020 and 2019 (in thousands): Years Ended December 31, 2020 2019 Oil and gas properties $ 6,752 $ 6,751 Ceiling test impairment $ (3,855) $ — Oil and gas properties, net of ceiling test impairment $ 2,897 $ 6,751 Unevaluated properties — — Accumulated depreciation, depletion and amortization (2,935) (2,366) Ceiling test impairment 2,935 — Accumulated depreciation, depletion and amortization, net of ceiling test impairment — (2,366) Oil and gas properties, net $ 2,897 $ 4,385 Oil and Gas Related Costs The following table sets forth information concerning costs incurred, including accruals, related to the Company’s oil and gas property acquisition, exploration and development activities (in thousands): Years Ended December 31, 2020 2019 Property acquisitions proved $ — $ — Property acquisitions unproved 6 14 Exploration cost 1 491 Development cost 14 7 Total $ 21 $ 512 Results of Operations from Oil and Gas Producing Activities The following table sets forth the Company’s results of operations from oil and gas producing activities (in thousands): Years Ended December 31, 2020 2019 Revenues $ 3,038 $ 4,911 Production costs and taxes (3,104) (3,398) Depletion (569) (637) Income (loss) from oil and gas producing activities $ (635) $ 876 In the presentation above, no deduction has been made for indirect costs such as general corporate overhead or interest expense. No income taxes are reflected above due to the Company’s operating tax loss carry-forward position. Estimated Quantities of Oil and Gas Reserves The following table sets forth the Company’s net proved oil and gas reserves and the changes in net proved oil and gas reserves for the years ended December 31, 2018, 2019 and 2020. All of the Company’s proved reserves are located in the United States of America. Oil (MBbl) Gas (MMcf) MBOE Proved reserves at December 31, 2018 1,094 — 1,094 Revisions of previous estimates (203) — (203) Improved recovery — — — Purchase of reserves in place — — — Extensions and discoveries 8 — 8 Production (94) — (94) Sales of reserves in place (2) — (2) Proved reserves at December 31, 2019 803 — 803 Revisions of previous estimates (200) — (200) Improved recovery — — — Purchase of reserves in place — — — Extensions and discoveries — — — Production (86) — (86) Sales of reserves in place — — — Proved reserves at December 31, 2020 517 — 517 Proved developed reserves at: December 31, 2018 976 — 976 December 31, 2019 803 — 803 December 31, 2020 517 — 517 Proved undeveloped reserves at: December 31, 2018 118 — 118 December 31, 2019 — — — December 31, 2020 — — — The Company’s Proved Undeveloped Reserves at December 31, 2018 included 7 locations and no locations at December 31, 2019 and 2020. During 2019, all Proved Undeveloped locations were removed from the Company’s Proved Reserves primarily due to the low oil prices experienced during 2019. The price remained low during 2020 resulting in the Company not being able to recognize any Proved Undeveloped locations at December 31, 2020. The following table identifies the Company’s net proved reserve value by category and the respective present values, before income taxes, discounted at 10% as a percentage of total proved reserves (in thousands): Year Ended 12/31/2020 Year Ended 12/31/2019 Year Ended 12/31/2018 Oil Gas Total Oil Gas Total Oil Gas Total Total proved reserves year-end reserve report $ 2,897 — $ 2,897 $ 8,365 — $ 8,365 $ 13,976 — $ 13,976 Proved developed producing reserves (PDP) $ 2,598 — $ 2,598 $ 7,592 — $ 7,592 $ 12,534 — $ 12,534 % of PDP reserves to total proved reserves 90% — 90% 91% — 91% 90% — 90% Proved developed non- producing reserves $ 299 — $ 299 $ 773 — $ 773 $ 739 — $ 739 % of PDNP reserves to total proved reserves 10% — 10% 9% — 9% 5% — 5% Proved undeveloped reserves (PUD) $ — — $ — $ — — $ — $ 703 — $ 703 % of PUD reserves to total proved reserves — — — — — — 5% — 5% S tandardized Measure of Discounted Future Net Cash Flows The standardized measure of discounted future net cash flows from the Company’s proved oil and gas reserves is presented in the following table (in thousands): Years Ended December 31, 2020 2019 2018 Future cash inflows $ 18,036 $ 40,655 $ 65,871 Future production costs and taxes (12,664) (24,829) (35,877) Future development costs (538) (542) (2,833) Future income tax expenses — — — Future net cash flows 4,834 15,284 27,161 Discount at 10% for timing of cash flows (1,937) (6,919) (13,185) Standardized measure of discounted future net cash flows $ 2,897 $ 8,365 $ 13,976 The following are the principal sources of change in the standardized measure of discounted future net cash flows from the Company’s proved oil and gas reserves (in thousands): Years Ended December 31, 2020 2019 2018 Balance, beginning of year $ 8,365 $ 13,976 $ 8,170 Sales, net of production costs and taxes (210) (1,646) (2,611) Discoveries and extensions, net of costs — 154 798 Purchase of reserves in place — — 143 Sale of reserves in place — (26) — Net changes in prices and production costs (2,893) (3,348) 4,304 Revisions of quantity estimates (2,353) (3,058) 2,180 Previously estimated development cost incurred during the year — — 210 Changes in future development costs (314) 1,016 78 Changes in timing and other (389) 86 (4) Accretion of discount 691 1,211 708 Net change in income taxes — — — Balance, end of year $ 2,897 $ 8,365 $ 13,976 Estimated future net cash flows represent an estimate of future net revenues from the production of proved reserves using average sales prices along with estimates of the operating costs, production taxes and future development and abandonment cost (less salvage value) necessary to produce such reserves. Future income taxes were calculated by applying the statutory federal and state income tax rates to pre-tax future net cash flows, net of the tax basis of the properties and utilizing available tax loss carryforwards related to oil and gas operations. The oil prices used for December 31, 2020, 2019, and 2018 were $34.87 , and $50.65 , and $60.21 per barrel of oil, respectively. The Company’s proved reserves as of December 31, 2020, 2019 and 2018 were measured by using commodity prices based on the twelve month unweighted arithmetic average of the first day of the month price for the period January through December. No deduction has been made for depreciation, depletion, or any indirect cost such as general corporate overhead or interest expense. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events On February 26, 2021 (the “Closing Date”), Riley Exploration Permian, Inc., a Delaware corporation (f/k/a Tengasco, Inc. (“Tengasco”)), consummated the previously announced merger pursuant to that certain Agreement and Plan of Merger (“Merger Agreement”), dated as of October 21, 2020, by and among Tengasco, Antman Sub, LLC, a newly formed Delaware limited liability company and wholly owned subsidiary of Tengasco (“Merger Sub”), and Riley Exploration – Permian, LLC (“REP, LLC”), as amended by Amendment No. 1 to Agreement and Plan of Merger, dated as of January 20, 2021, by and among Tengasco, Merger Sub and Riley. Pursuant to the terms of the Merger Agreement, a business combination between the Registrant and Riley was effected through the merger of Merger Sub with and into Riley, with Riley surviving as the surviving company and as a wholly owned subsidiary of the Registrant (the “Merger” and, collectively with the other transactions described in the Merger Agreement, the “Merger Transaction”). On the Closing Date, the Registrant changed its name from Tengasco, Inc. to Riley Exploration Permian, Inc. Our organizational structure includes wholly owned consolidated subsidiaries through which our operations are conducted, including without limitation, Riley Exploration – Permian, LLC and Riley Permian Operating Company, LLC. The shares of the Company began trading under the ticker symbol REPX on the NYSE American on March 1, 2021. In March 2021, the Company entered into an agreement to divest of its Kansas oil and gas properties. The Company agreed to a sales price of $3.5 million subject to closing adjustment. The effective date of this transaction will be March 1, 2021. This agreement is subject to normal due diligence and anticipated to close in early April 2021. Although anticipated to close in early April 2021, the closing of this divestiture remains subject to various conditions to closing and there can be no assurance that the sale will be completed. |
Description Of Business And S_2
Description Of Business And Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Description Of Business And Significant Accounting Policies [Abstract] | |
Principles Of Consolidation | Principles of Consolidation The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries after elimination of all significant intercompany transactions and balances. |
Use Of Estimates | Use of Estimates The accompanying consolidated financial statements are prepared in conformity with U.S. GAAP which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition 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 it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. 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 them 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. 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 were no specific volumes of electricity that were 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 will not recognize revenues associated with any sales volumes after that date. Revenues associated with the methane facility are included in Discontinued Operations. (See Note 5. 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 in 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 years ended December 31, 2020 and 2019 (in thousands) : Year ended December 31, 2020 2019 Crude oil $ 3,015 4,884 Saltwater disposal fees 23 27 Total $ 3,038 $ 4,911 There were no natural gas imbalances at December 31, 2020 or 2019. |
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 net realizable value. The cost component of the oil inventory is calculated using the average quarterly per barrel cost for the quarter ended December 31, 2020 and December 31, 2019. During 2020 and 2019, the Company included production costs and taxes in its calculation of estimated cost. The market component is calculated using the average December 2020 and December 2019 oil sales price for the Company’s Kansas properties. At December 31, 2020 and December 31, 2019, inventory consisted of the following (in thousands): December 31, 2020 2019 Oil – carried at cost $ 361 $ 415 Equipment and materials – carried at net realizable value — — Total inventory $ 361 $ 415 |
Oil And Gas Properties | Oil and Gas Properties The Company follows the full cost method of accounting for oil and gas property acquisition, exploration, and development activities. Under this method, all costs incurred in connection with acquisition, exploration, and development of oil and gas reserves are capitalized. Capitalized costs include lease acquisitions, seismic related costs, certain internal exploration costs, drilling, completion, and estimated asset retirement costs. The capitalized costs of oil and gas properties, plus estimated future development costs relating to proved reserves and estimated asset retirement costs which are not already included net of estimated salvage value, are amortized on the unit-of-production method based on total proved reserves. The Company has determined its reserves based upon reserve reports provided by LaRoche Petroleum Consultants Ltd. since 2009. The costs of unproved properties are excluded from amortization until the properties are evaluated, subject to an annual assessment of whether impairment has occurred. The Company had $0 in unevaluated properties as of both December 31, 2020 and 2019. 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 performed its ceiling tests during 2020 and 2019, resulting in an impairment of its oil and gas properties of $920,000 in 2020 and no impairment in 2019. |
Asset Retirement Obligation | Asset Retirement Obligation An asset retirement obligation associated with the retirement of a tangible long-lived asset is recognized as a liability in the period incurred, with an associated increase in the carrying amount of the related long-lived asset, our oil and natural gas properties. The cost of the tangible asset, including the asset retirement cost, is depleted over the useful life of the asset. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. Accretion expense is recorded as “Production costs and taxes” in the Consolidated Statements of Operations. If the estimated future cost of the asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the long-lived asset. Revisions to estimated asset retirement obligations can result from changes in retirement cost estimates, revisions to estimated inflation rates, and changes in the estimated timing of abandonment. |
Manufactured Methane Facilities | Manufactured Methane Facilities The Manufactured Methane facilities were placed into service in April 2009 and were being depreciated using the straight-line method over the useful life based on the estimated landfill closure date of December 2041. The Company sold all its methane facility assets, except the applicable U.S. patent, on January 26, 2018. |
Other Property And Equipment | Other Property and Equipment Other property and equipment is carried at cost. The Company provides for depreciation of other property and equipment using the straight-line method over the estimated useful lives of the assets which range from two to seven years. Net gains or losses on other property and equipment disposed of are included in operating income in the period in which the transaction occurs. |
Stock-Based Compensation | Stock-Based Compensation The Company records stock-based compensation to employees based on the estimated fair value of the award at grant date. We recognize expense on a straight-line basis over the requisite service period. For stock-based compensation that vests immediately, the Company recognizes the entire expense in the quarter in which the stock-based compensation is granted. The Company recorded compensation expense of $14,000 in 2020 and $17,000 in 2019. |
Accounts Receivable | Accounts Receivable Accounts receivable consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date, uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 days of production, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied to the earliest unpaid items. We review accounts receivable periodically and reduce the carrying amount by a valuation allowance that reflects our best estimate of the amount that may not be collectible. No allowance was recorded at December 31, 2020 and 2019. At December 31, 2020 and 2019, accounts receivable consisted of the following (in thousands): December 31, 2020 2019 Revenue $ 292 $ 415 Tax — 65 Joint interest 2 77 Accounts receivable - current $ 294 $ 557 Tax - noncurrent $ — $ 65 At December 31, 2019, the Company recorded a tax related non-current receivable in the amount of $65. (See Note 1 2 . Income Taxes) |
Income Taxes | Income Taxes Income taxes are reported in accordance with U.S. GAAP, which requires the establishment of deferred tax accounts for all temporary differences between the financial reporting and tax bases of assets and liabilities, using currently enacted federal and state income tax rates. In addition, deferred tax accounts must be adjusted to reflect new rates if enacted into law. Realization of deferred tax assets is contingent on the generation of future taxable income. As a result, management considers whether it is more likely than not that all or a portion of such assets will be realized during periods when they are available, and if not, management provides a valuation allowance for amounts not likely to be recognized. Management periodically evaluates tax reporting methods to determine if any uncertain tax positions exist that would require the establishment of a loss contingency. A loss contingency would be recognized if it were probable that a liability has been incurred as of the date of the financial statements and the amount of the loss can be reasonably estimated. The amount recognized is subject to estimates and management’s judgment with respect to the likely outcome of each uncertain tax position. The amount that is ultimately incurred for an individual uncertain tax position or for all uncertain tax positions in the aggregate could differ from the amount recognized. |
Concentration Of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. The Company’s primary business activities include oil sales to a limited number of customers in the state of Kansas. The related trade receivables subject the Company to a concentration of credit risk. The Company sells a majority of its crude oil primarily to two customers in Kansas. Although management believes that customers could be replaced in the ordinary course of business, if the present customers were to discontinue business with the Company, it may have a significant adverse effect on the Company’s results of operations. Revenue from the top two purchasers accounted for 84.7% and 11.1% of total revenues for year ended December 31, 20 20 . Revenue from the top two purchasers accounted for 87.7% and 11.8% of total revenues for year ended December 31, 2019. As of December 31, 2020 and 2019, two of the Company’s oil purchasers accounted for 96.8% and 86.0% , respectively of accounts receivable, of which one oil purchaser accounted for 83.9% and 76.9% , respectively. |
Earnings Per Common Share | Earnings per Common Share The Company reports basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share which include the effect of all potentially dilutive securities unless their impact is anti-dilutive. The following are reconciliations of the numerators and denominators of the Company’s basic and diluted earnings per share, ( in thousands except for share and per share amounts): For the years ended December 31, 2020 2019 Income (numerator): Net loss $ (3,648) $ (436) Weighted average shares (denominator): Weighted average shares - basic 889,670 887,612 Dilution effect of share-based compensation, treasury method — — Weighted average shares - dilutive 889,670 887,612 Loss per share – Basic and Dilutive: Basic $ (4.10) $ (0.49) Dilutive $ (4.10) $ (0.49) Options issued to the Company’s directors in which the exercise price was higher than the average market price each quarter was also excluded from diluted shares as they would have been anti-dilutive (See Note 12. Stock and Stock Options). In addition, the shares that would be issued to employees and Company directors have also been excluded from this calculation. The number of shares have been adjusted to reflect the impact of the 1 for 12 reverse stock split approved at the shareholder meeting dated February 25, 2021, effective with trading on March 1, 2021. (See Note 8 . Commitments and Contingencies) |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payables, accrued liabilities, lease liabilities, and long-term debt approximates fair value as of December 31, 2020 and 2019. |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative instruments to manage our exposure to commodity price risk on sales of oil production. The Company does not enter into derivative instruments for speculative trading purposes. The Company presents the fair value of derivative contracts on a net basis where the right to offset is provided for in our counterparty agreements. As of December 31, 2020 and 2019, the Company did not have any open derivatives |
Reclassifications | . |
Description Of Business And S_3
Description Of Business And Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Description Of Business And Significant Accounting Policies [Abstract] | |
Disaggregation Of Revenue | Year ended December 31, 2020 2019 Crude oil $ 3,015 4,884 Saltwater disposal fees 23 27 Total $ 3,038 $ 4,911 |
Inventory | December 31, 2020 2019 Oil – carried at cost $ 361 $ 415 Equipment and materials – carried at net realizable value — — Total inventory $ 361 $ 415 |
Accounts Receivable | December 31, 2020 2019 Revenue $ 292 $ 415 Tax — 65 Joint interest 2 77 Accounts receivable - current $ 294 $ 557 Tax - noncurrent $ — $ 65 |
Reconciliations Of The Numerators And Denominators Of Basic And Diluted Earnings Per Share | For the years ended December 31, 2020 2019 Income (numerator): Net loss $ (3,648) $ (436) Weighted average shares (denominator): Weighted average shares - basic 889,670 887,612 Dilution effect of share-based compensation, treasury method — — Weighted average shares - dilutive 889,670 887,612 Loss per share – Basic and Dilutive: Basic $ (4.10) $ (0.49) Dilutive $ (4.10) $ (0.49) |
Oil And Gas Properties (Tables)
Oil And Gas Properties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Oil And Gas Properties [Abstract] | |
Schedule Of Oil And Gas Properties | December 31, 2020 2019 Oil and gas properties $ 6,752 $ 6,751 Ceiling test impairment $ (3,855) $ — Oil and gas properties, net of ceiling test impairment $ 2,897 $ 6,751 Unevaluated properties — — Accumulated depreciation, depletion and amortization (2,935) (2,366) Ceiling test impairment 2,935 — Accumulated depreciation, depletion and amortization, net of ceiling test impairment — (2,366) Oil and gas properties, net $ 2,897 $ 4,385 |
Other Property And Equipment (T
Other Property And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Property And Equipment [Abstract] | |
Schedule Of Other Property And Equipment | Other property and equipment consisted of the following as of December 31, 2020: (in thousands) Depreciable Accumulated Net Book Type Life Gross Cost Depreciation Value Vehicles 2 - 3 yrs 259 157 102 Other 5 - 7 yrs 83 83 — Total $ 342 $ 240 $ 102 Other property and equipment consisted of the following as of December 31, 2019: (in thousands) Depreciable Accumulated Net Book Type Life Gross Cost Depreciation Value Vehicles 2 - 3 years 295 146 149 Other 5 - 7 years 83 83 — Total $ 378 $ 229 $ 149 |
Lease Liabilities (Tables)
Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Lease Liabilities [Abstract] | |
Components Of Lease Cost | For the years ended December 31, Statement of Operations Account 2020 2019 Operating lease cost: Production costs and taxes $ 13 $ 13 General and administrative 50 49 Total operating lease cost $ 63 $ 62 Finance lease cost: Amortization of right of use assets Depreciation, depletion, and amortization $ 75 $ 79 Interest on lease liabilities Net interest expense 5 5 Total finance lease cost $ 80 $ 84 |
Supplemental Cash Flow Information Related To Leases | For the years ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 63 $ 62 Operating cash flows from finance leases 5 5 Finance cash flows from finance leases $ 41 $ 53 Right of use assets obtained in exchange for lease obligations: Operating leases $ 63 $ 98 |
Supplemental Balance Sheet Information Related To Leases | Balance Sheet as of December 31, 2020 2019 Operating Leases: Right of use asset - operating leases $ 42 $ 41 Lease liabilities - current $ 42 $ 41 Lease liabilities - noncurrent — — Total operating lease liabilities $ 42 $ 41 Finance Leases: Other property and equipment, gross $ 342 $ 295 Accumulated depreciation (240) (146) Other property and equipment, net $ 102 $ 149 Lease liabilities - current $ 61 $ 61 Lease liabilities - noncurrent 16 41 Total finance lease liabilities $ 77 $ 102 |
Schedule Of Weighted Average Remaining Lease Term And Discount Rate | Operating Leases Finance Leases Weighted average remaining lease term 0.7 years 0.7 years Weighted average discount rate 3.75% 5.30% |
Maturity Analysis For Operating and Finance Lease Liabilities | Operating Leases Finance Leases 2021 43 62 2022 — 16 Total lease payments 43 78 Less imputed interest (1) (1) Total $ 42 $ 77 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligation Transactions | Balance December 31, 2018 $ 2,179 Accretion expense 132 Liabilities incurred 12 Liabilities settled (83) Liabilities sold properties (55) Revisions in estimated liabilities (187) Balance December 31, 2019 $ 1,998 Accretion expense 125 Liabilities incurred — Liabilities settled (25) Liabilities sold properties (50) Revisions in estimated liabilities 69 Balance December 31, 2020 $ 2,117 |
Stock And Stock Options (Tables
Stock And Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock And Stock Options [Abstract] | |
Schedule Of Stock Option Activity | 2020 2019 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Outstanding, beginning of year 781 $ 26.16 1406 $ 38.16 Granted — $ — — $ — Exercised (52) $ 14.40 — $ — Expired/cancelled (625) $ 29.16 (625) $ 53.16 Outstanding, end of year 104 $ 14.40 781 $ 26.16 Exercisable, end of year 104 $ 14.40 781 $ 26.16 |
Schedule Of Stock Options Outstanding And Exercisable | Weighted Average Exercise Price Options Outstanding (shares) Weighted Average Remaining Contractual Life (years) Options Exercisable (shares) $ 14.40 104 — 104 104 104 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Reconciliation Of The Statutory U.S. Federal Income Tax And The Income Tax Provision | Year Ended December 31, 2020 Total Statutory rate 21 % Tax (benefit) expense at statutory rate $ (764) State income tax (benefit) expense (148) Permanent difference 184 Return to provision 1 Stock Compensation Tax Deficit - ASU 2016-09 7 2020 NOL Expiration 334 Net change in deferred tax asset valuation allowance 386 Total income tax provision (benefit) $ — Year Ended December 31, 2019 Total Statutory rate 21 % Tax (benefit) expense at statutory rate $ (99) State income tax (benefit) expense 321 Permanent difference — Return to provision (40) Stock Compensation Tax Deficit - ASU 2016-09 4 2019 NOL Expiration 557 Net change in deferred tax asset valuation allowance (771) Total income tax provision (benefit) $ (28) |
Schedule Of Deferred Tax Assets And Liabilities | Year Ended December 31, 2020 2019 Net deferred tax assets (liabilities): Net operating loss carryforwards $ 9,596 $ 9,119 Oil and gas properties 922 1,054 Property, Plant and Equipment 1 (5) Asset retirement obligation 542 500 Tax credits — 65 Miscellaneous 29 36 Valuation allowance (11,090) (10,704) Net deferred tax asset $ — $ 65 |
Quarterly Data And Share Info_2
Quarterly Data And Share Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Data And Share Information [Abstract] | |
Schedule Of Quarterly Data | Fiscal Year Ended 2020 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenues $ 963 563 $ 765 $ 747 Net loss (527) (554) (813) (1,754) Loss per common share $ (0.60) $ (0.60) $ (0.96) $ (1.92) Fiscal Year Ended 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Revenues $ 1,171 $ 1,390 $ 1,215 $ 1,135 Net income (loss) (96) 9 (182) (167) Income (loss) per common share $ (0.12) $ 0.01 $ (0.24) $ (0.12) |
Supplemental Oil And Gas Info_2
Supplemental Oil And Gas Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Oil And Gas Information [Abstract] | |
Schedule Of Capitalized Costs Related To Oil And Gas Producing Activities | Years Ended December 31, 2020 2019 Oil and gas properties $ 6,752 $ 6,751 Ceiling test impairment $ (3,855) $ — Oil and gas properties, net of ceiling test impairment $ 2,897 $ 6,751 Unevaluated properties — — Accumulated depreciation, depletion and amortization (2,935) (2,366) Ceiling test impairment 2,935 — Accumulated depreciation, depletion and amortization, net of ceiling test impairment — (2,366) Oil and gas properties, net $ 2,897 $ 4,385 |
Schedule Of Oil And Gas Property Acquisition, Exploration And Development | Years Ended December 31, 2020 2019 Property acquisitions proved $ — $ — Property acquisitions unproved 6 14 Exploration cost 1 491 Development cost 14 7 Total $ 21 $ 512 |
Schedule Of Results Of Operations From Oil And Gas Producing Activities | Years Ended December 31, 2020 2019 Revenues $ 3,038 $ 4,911 Production costs and taxes (3,104) (3,398) Depletion (569) (637) Income (loss) from oil and gas producing activities $ (635) $ 876 |
Schedule Of Net Proved Oil And Gas Reserves And The Changes In Net Proved Oil And Gas Reserves | Oil (MBbl) Gas (MMcf) MBOE Proved reserves at December 31, 2018 1,094 — 1,094 Revisions of previous estimates (203) — (203) Improved recovery — — — Purchase of reserves in place — — — Extensions and discoveries 8 — 8 Production (94) — (94) Sales of reserves in place (2) — (2) Proved reserves at December 31, 2019 803 — 803 Revisions of previous estimates (200) — (200) Improved recovery — — — Purchase of reserves in place — — — Extensions and discoveries — — — Production (86) — (86) Sales of reserves in place — — — Proved reserves at December 31, 2020 517 — 517 Proved developed reserves at: December 31, 2018 976 — 976 December 31, 2019 803 — 803 December 31, 2020 517 — 517 Proved undeveloped reserves at: December 31, 2018 118 — 118 December 31, 2019 — — — December 31, 2020 — — — |
Schedule Of Reserve Value By Category And The Respective Present Values, Before Income Taxes, Discounted At 10% As A Percentage Of Total Proved Reserves | Year Ended 12/31/2020 Year Ended 12/31/2019 Year Ended 12/31/2018 Oil Gas Total Oil Gas Total Oil Gas Total Total proved reserves year-end reserve report $ 2,897 — $ 2,897 $ 8,365 — $ 8,365 $ 13,976 — $ 13,976 Proved developed producing reserves (PDP) $ 2,598 — $ 2,598 $ 7,592 — $ 7,592 $ 12,534 — $ 12,534 % of PDP reserves to total proved reserves 90% — 90% 91% — 91% 90% — 90% Proved developed non- producing reserves $ 299 — $ 299 $ 773 — $ 773 $ 739 — $ 739 % of PDNP reserves to total proved reserves 10% — 10% 9% — 9% 5% — 5% Proved undeveloped reserves (PUD) $ — — $ — $ — — $ — $ 703 — $ 703 % of PUD reserves to total proved reserves — — — — — — 5% — 5% |
Schedule Of Standardized Measure Of Discounted Futures Net Cash Flows From Proved Oil And Gas Reserves | Years Ended December 31, 2020 2019 2018 Future cash inflows $ 18,036 $ 40,655 $ 65,871 Future production costs and taxes (12,664) (24,829) (35,877) Future development costs (538) (542) (2,833) Future income tax expenses — — — Future net cash flows 4,834 15,284 27,161 Discount at 10% for timing of cash flows (1,937) (6,919) (13,185) Standardized measure of discounted future net cash flows $ 2,897 $ 8,365 $ 13,976 |
Schedule Of Changes In The Standardized Measure Of Discounted Future Net Cash Flows From Proved Oil And Gas Reserves | Years Ended December 31, 2020 2019 2018 Balance, beginning of year $ 8,365 $ 13,976 $ 8,170 Sales, net of production costs and taxes (210) (1,646) (2,611) Discoveries and extensions, net of costs — 154 798 Purchase of reserves in place — — 143 Sale of reserves in place — (26) — Net changes in prices and production costs (2,893) (3,348) 4,304 Revisions of quantity estimates (2,353) (3,058) 2,180 Previously estimated development cost incurred during the year — — 210 Changes in future development costs (314) 1,016 78 Changes in timing and other (389) 86 (4) Accretion of discount 691 1,211 708 Net change in income taxes — — — Balance, end of year $ 2,897 $ 8,365 $ 13,976 |
Description Of Business And S_4
Description Of Business And Significant Accounting Policies (Narrative) (Details) | Feb. 25, 2021 | Mar. 21, 2016 | Dec. 31, 2020USD ($)customer | Dec. 31, 2019USD ($) |
Description Of Business And Significant Accounting Policies [Line Items] | ||||
Unevaluated properties | $ 0 | $ 0 | ||
Current cost discount | 10.00% | |||
Stock based compensation | $ 14,000 | 17,000 | ||
Deferred tax asset | 65,000 | |||
Derivatives | $ 0 | 0 | ||
Customers | customer | 2 | |||
Impairment | $ 920,000 | 0 | ||
Accounts receivable - noncurrent | 65,000 | |||
Allowance for doubtful accounts | $ 0 | $ 0 | ||
Reverse stock split | 0.1 | |||
Customer A [Member] | Revenue [Member] | ||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||
Customer's percentage of revenue | 84.70% | 87.70% | ||
Customer B [Member] | Revenue [Member] | ||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||
Customer's percentage of revenue | 11.10% | 11.80% | ||
Customer C [Member] | Accounts Receivable [Member] | ||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||
Customer's percentage of revenue | 83.90% | 76.90% | ||
Two Customers [Member] | Accounts Receivable [Member] | ||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||
Customer's percentage of revenue | 96.80% | 86.00% | ||
Subsequent Event [Member] | ||||
Description Of Business And Significant Accounting Policies [Line Items] | ||||
Reverse stock split | 0.083 |
Description Of Business And S_5
Description Of Business And Significant Accounting Policies (Disaggregation Of Revenue) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 3,038,000 | $ 4,911,000 |
Crude Oil [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,015,000 | 4,884,000 |
Saltwater Disposal Fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 23,000 | 27,000 |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Description Of Business And Significant Accounting Policies [Abstract] | ||
Oil - carried at cost | $ 361 | $ 415 |
Equipment and materials - carried at net realizable value | ||
Total inventory | $ 361 | $ 415 |
Description Of Business And S_7
Description Of Business And Significant Accounting Policies (Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable - current | $ 294 | $ 557 |
Revenue [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable - current | 292 | 415 |
Tax [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable - current | 65 | |
Tax - noncurrent | 65 | |
Joint Interest [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable - current | $ 2 | $ 77 |
Description Of Business And S_8
Description Of Business And Significant Accounting Policies (Reconciliations Of The Numerators And Denominators On Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Common Share [Abstract] | ||||||||||
Net loss | $ (1,754) | $ (813) | $ (554) | $ (527) | $ (167) | $ (182) | $ 9 | $ (96) | $ (3,648) | $ (436) |
Weighted average shares - basic | 889,670 | 887,612 | ||||||||
Dilution effect of share-based compensation, treasury method | ||||||||||
Weighted average shares - dilutive | 889,670 | 887,612 | ||||||||
Basic | $ (1.92) | $ (0.96) | $ (0.60) | $ (0.60) | $ (0.12) | $ (0.24) | $ 0.01 | $ (0.12) | $ (4.10) | $ (0.49) |
Dilutive | $ (4.10) | $ (0.49) |
Oil And Gas Properties (Narrati
Oil And Gas Properties (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Oil And Gas Properties [Abstract] | ||
Depletion expense | $ 569,000 | $ 637,000 |
Oil And Gas Properties (Schedul
Oil And Gas Properties (Schedule Of Oil And Gas Properties) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Oil And Gas Properties [Abstract] | ||
Oil and gas properties | $ 6,752 | $ 6,751 |
Ceiling test impairment | (3,855) | |
Oil and gas properties, net of ceiling test impairment | 2,897 | 6,751 |
Unevaluated properties | ||
Accumulated depreciation, depletion and amortization | (2,935) | (2,366) |
Ceiling test impairment | 2,935 | |
Accumulated depreciation, depletion and amortization, net of ceiling test impairment | (2,366) | |
Oil and gas properties, net | $ 2,897 | $ 4,385 |
Other Property And Equipment (S
Other Property And Equipment (Schedule Of Other Property And Equipment) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Gross Cost | $ 342,000 | $ 378,000 |
Accumulated depreciation | 240,000 | 229,000 |
Net Book Value | 102,000 | 149,000 |
Depreciation expense | 75,000 | 79,000 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross Cost | 259,000 | 295,000 |
Accumulated depreciation | 157,000 | 146,000 |
Net Book Value | 102,000 | 149,000 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross Cost | 83,000 | 83,000 |
Accumulated depreciation | $ 83,000 | $ 83,000 |
Minimum [Member] | Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 2 years | 2 years |
Minimum [Member] | Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 5 years | 5 years |
Maximum [Member] | Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 3 years | 3 years |
Maximum [Member] | Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 7 years | 7 years |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Feb. 26, 2021USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||
Other income | $ 166,000 | ||||
Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility amount outstanding | $ 0 | ||||
Prosperity Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.75% | ||||
Credit facility current borrowing capacity | 3,100,000 | $ 3,100,000 | |||
Credit facility amount outstanding | 0 | 0 | $ 0 | ||
Credit limit | 1,442,000 | ||||
Prosperity Bank [Member] | Loans And Letters Of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowing capacity | $ 50,000,000 | $ 50,000,000 | |||
Prosperity Bank [Member] | Paycheck Protection Program Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit limit | $ 166,000 | ||||
Maximum [Member] | Prosperity Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Funded debt to EBITDA | 3.5 | ||||
Minimum [Member] | Prosperity Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Current ratio | 1 | ||||
Interest coverage | 3 |
Lease Liabilities (Narrative) (
Lease Liabilities (Narrative) (Details) | Dec. 31, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Increased operating lease right of use | $ 63,000 |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Payment term | 36 months |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Payment term | 18 months |
Prosperity Bank [Member] | |
Lessee, Lease, Description [Line Items] | |
Borrowing rate | 3.75% |
Lease Liabilities (Components O
Lease Liabilities (Components Of Lease Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Cost [Line Items] | ||
Total operating lease cost | $ 63 | $ 62 |
Amortization of right of use assets | 75 | 79 |
Interest on lease liabilities | 5 | 5 |
Total finance lease cost | 80 | 84 |
Production Costs And Taxes [Member] | ||
Lease Cost [Line Items] | ||
Total operating lease cost | 13 | 13 |
General and Administrative [Member] | ||
Lease Cost [Line Items] | ||
Total operating lease cost | $ 50 | $ 49 |
Lease Liabilities (Supplemental
Lease Liabilities (Supplemental Cash Flow Information Related To Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Liabilities [Abstract] | ||
Operating cash flows from operating leases | $ 63 | $ 62 |
Operating cash flows from finance leases | 5 | 5 |
Finance cash flows from finance leases | 41 | 53 |
Right of use assets obtained in exchange for lease obligations, Operating leases | $ 63 | $ 98 |
Lease Liabilities (Supplement_2
Lease Liabilities (Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Lease Liabilities [Abstract] | ||
Right of use asset - operating leases | $ 42 | $ 41 |
Lease liabilities - current | 42 | 41 |
Total operating lease liabilities | 42 | 41 |
Other property and equipment, gross | 342 | 295 |
Accumulated depreciation | (240) | (146) |
Other property and equipment, net | 102 | 149 |
Lease liabilities - current | 61 | 61 |
Lease liabilities - noncurrent | 16 | 41 |
Total finance lease liabilities | $ 77 | $ 102 |
Lease Liabilities (Schedule Of
Lease Liabilities (Schedule Of Weighted Average Remaining Lease Term And Discount Rate) (Details) | Dec. 31, 2020 |
Lease Liabilities [Abstract] | |
Weighted average remaining lease term, Operating Leases | 8 months 12 days |
Weighted average discount rate, Operating Leases | 3.75% |
Weighted average remaining lease term, Finance Leases | 8 months 12 days |
Weighted average discount rate, Finance Leases | 5.30% |
Lease Liabilities (Maturity Ana
Lease Liabilities (Maturity Analysis For Operating and Finance Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Lease Liabilities [Abstract] | ||
Operating Leases, 2021 | $ 43 | |
Operating Leases, Total lease payments | 43 | |
Operating Leases, Less imputed interest | (1) | |
Total operating lease liabilities | 42 | $ 41 |
Finance Leases, 2021 | 62 | |
Finance Leases, 2022 | 16 | |
Finance Leases, Total lease payments | 78 | |
Finance Leases, Less imputed interest | (1) | |
Total finance lease liabilities | $ 77 | $ 102 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) | Feb. 25, 2021 | Mar. 21, 2016 | Dec. 31, 2020USD ($)$ / shares$ / bblshares | Dec. 31, 2020USD ($)$ / shares |
Loss Contingencies [Line Items] | ||||
Cost reduction | $ | $ 430,000 | $ 430,000 | ||
Cost reduction paid into common stock | $ | $ 117,000 | |||
Shares issued for services | shares | 8,000 | |||
Share price | $ / shares | $ 14.88 | $ 14.88 | ||
Period of trailing average of WTI | 30 days | |||
Reverse stock split | 0.1 | |||
Subsequent Event [Member] | ||||
Loss Contingencies [Line Items] | ||||
Reverse stock split | 0.083 | |||
Minimum [Member] | West Texas Intermediate [Member] | ||||
Loss Contingencies [Line Items] | ||||
Compensation reduction | $ / bbl | 70 | |||
Compensation reimbursement | $ / bbl | 85 |
Asset Retirement Obligation (As
Asset Retirement Obligation (Asset Retirement Obligation Transactions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation [Abstract] | ||
Balance | $ 1,998 | $ 2,179 |
Accretion expense | 125 | 132 |
Liabilities incurred | 12 | |
Liabilities settled | (25) | (83) |
Liabilities sold properties | (50) | (55) |
Revisions in estimated liabilities | 69 | (187) |
Balance | $ 2,117 | $ 1,998 |
Stock And Stock Options (Narrat
Stock And Stock Options (Narrative) (Details) | Feb. 25, 2021 | Mar. 17, 2017$ / shares | Mar. 21, 2016 | Feb. 01, 2008shares | Dec. 31, 2020$ / shares | Oct. 25, 2020shares | Dec. 31, 2019$ / shares | Mar. 16, 2017$ / shares |
Stock Options [Line Items] | ||||||||
Number of shares that may be granted | shares | 7,000,000 | |||||||
Number of additional shares that may be granted | shares | 3,500,000 | |||||||
Stock incentive plan term | 10 years | |||||||
Purchase price floor of fair market value | 85.00% | |||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Reverse stock split | 0.1 | |||||||
Voluntary Resignation [Member] | ||||||||
Stock Options [Line Items] | ||||||||
Stock Incentive Plan exercisable period | 3 months | |||||||
Subsequent Event [Member] | ||||||||
Stock Options [Line Items] | ||||||||
Reverse stock split | 0.083 | |||||||
Series A Preferred Stock [Member] | ||||||||
Stock Options [Line Items] | ||||||||
Exercise price | $ / shares | $ 1.10 | |||||||
Rights Plan [Member] | ||||||||
Stock Options [Line Items] | ||||||||
Common stock, Threshold for exercise of rights percentage | 4.95% |
Stock And Stock Options (Schedu
Stock And Stock Options (Schedule Of Stock Option Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock And Stock Options [Abstract] | ||
Shares, Outstanding beginning of year | 781 | 1,406 |
Shares, Exercised | (52) | |
Shares, Expired/cancelled | (625) | (625) |
Shares, Outstanding end of year | 104 | 781 |
Weighted Average Exercise Price, Outstanding beginning of year | $ 26.16 | $ 38.16 |
Weighted Average Exercise Price, Exercised | 14.40 | |
Weighted Average Exercise Price, Expired/cancelled | 29.16 | 53.16 |
Weighted Average Exercise Price, Outstanding end of year | $ 14.40 | $ 26.16 |
Exercisable, end of year, Shares | 104 | 781 |
Exercisable, end of year, Weighted Average Exercise Price | $ 14.40 | $ 26.16 |
Stock And Stock Options (Sche_2
Stock And Stock Options (Schedule Of Stock Options Outstanding And Exercisable) (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Exercise Price | $ 14.40 | $ 26.16 | $ 38.16 |
Options Outstanding | 104 | 781 | 1,406 |
Options Exercisable | 104 | ||
$14.40 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Exercise Price | $ 14.40 | ||
Options Outstanding | 104 | ||
Options Exercisable | 104 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | |||
Valuation allowance | $ 11,090,000 | $ 10,704,000 | |
Federal net operating loss carryforwards | 35,400,000 | ||
Deferred tax asset | $ 65,000 | ||
Refundable credits | 130,000 | ||
Refundable credits | $ 130,000 | ||
Tax Period Between 2021 And 2037 [Member] | |||
Income Taxes [Line Items] | |||
Federal net operating loss carryforwards | 30,100,000 | ||
Indefinite Tax Period [Member] | |||
Income Taxes [Line Items] | |||
Federal net operating loss carryforwards | $ 5,300,000 | ||
Minimum [Member] | Tax Period Between 2021 And 2037 [Member] | |||
Income Taxes [Line Items] | |||
Federal net operating loss carryforwards expiration between, years | Jan. 1, 2021 | ||
Maximum [Member] | Tax Period Between 2021 And 2037 [Member] | |||
Income Taxes [Line Items] | |||
Federal net operating loss carryforwards expiration between, years | Dec. 31, 2037 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of The Statutory U.S. Federal Income Tax And The Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Abstract] | ||
Statutory rate | 21.00% | 21.00% |
Tax (benefit) expense at statutory rate | $ (764) | $ (99) |
State income tax (benefit) expense | (148) | 321 |
Permanent difference | 184 | |
Return to provision | 1 | |
Stock Compensation Tax Deficit - ASU 2016-09 | 7 | 4 |
NOL Expiration | 334 | 557 |
Other | (40) | |
Net change in deferred tax asset valuation allowance | 386 | (771) |
Total income tax provision (benefit) | $ (28) |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Taxes [Abstract] | ||
Net operating loss carryforwards | $ 9,596 | $ 9,119 |
Oil and gas properties | 922 | 1,054 |
Property, Plant and Equipment | 1 | |
Property, Plant and Equipment | (5) | |
Asset retirement obligation | 542 | 500 |
Tax credits | 65 | |
Miscellaneous | 29 | 36 |
Valuation allowance | (11,090) | (10,704) |
Net deferred tax asset | $ 65 |
Quarterly Data And Share Info_3
Quarterly Data And Share Information (Schedule Of Quarterly Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Data And Share Information [Abstract] | ||||||||||
Revenues | $ 747 | $ 765 | $ 563 | $ 963 | $ 1,135 | $ 1,215 | $ 1,390 | $ 1,171 | $ 3,038 | $ 4,911 |
Net income (loss) | $ (1,754) | $ (813) | $ (554) | $ (527) | $ (167) | $ (182) | $ 9 | $ (96) | $ (3,648) | $ (436) |
Income (loss) per common share | $ (1.92) | $ (0.96) | $ (0.60) | $ (0.60) | $ (0.12) | $ (0.24) | $ 0.01 | $ (0.12) | $ (4.10) | $ (0.49) |
Supplemental Oil And Gas Info_3
Supplemental Oil And Gas Information (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)item$ / bbl | Dec. 31, 2019item$ / bbl | Dec. 31, 2018item$ / bbl | |
Oil And Gas, Average Sale Price And Production Cost Per Unit [Line Items] | |||
Proved undeveloped reserve locations | item | 0 | 0 | 7 |
Depreciation, depletion, or any indirect cost | $ | $ 0 | ||
Barrel Of Oil [Member] | |||
Oil And Gas, Average Sale Price And Production Cost Per Unit [Line Items] | |||
Price | $ / bbl | 34.87 | 50.65 | 60.21 |
Supplemental Oil And Gas Info_4
Supplemental Oil And Gas Information (Schedule Of Capitalized Costs Related To Oil And Gas Producing Activities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Supplemental Oil And Gas Information [Abstract] | ||
Oil and gas properties | $ 6,752 | $ 6,751 |
Ceiling test impairment | (3,855) | |
Oil and gas properties, net of ceiling test impairment | 2,897 | 6,751 |
Unevaluated properties | ||
Accumulated depreciation, depletion and amortization | (2,935) | (2,366) |
Ceiling test impairment | 2,935 | |
Accumulated depreciation, depletion and amortization, net of ceiling test impairment | (2,366) | |
Oil and gas properties, net | $ 2,897 | $ 4,385 |
Supplemental Oil And Gas Info_5
Supplemental Oil And Gas Information (Schedule Of Oil And Gas Property Acquisition, Exploration And Development) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Oil And Gas Information [Abstract] | ||
Property acquisitions proved | ||
Property acquisitions unproved | 6 | 14 |
Exploration cost | 1 | 491 |
Development cost | 14 | 7 |
Total | $ 21 | $ 512 |
Supplemental Oil And Gas Info_6
Supplemental Oil And Gas Information (Schedule Of Results Of Operations From Oil And Gas Producing Activities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Oil And Gas Information [Abstract] | ||
Revenues | $ 3,038 | $ 4,911 |
Production costs and taxes | (3,104) | (3,398) |
Depletion | (569) | (637) |
Income (loss) from oil and gas producing activities | $ (635) | $ 876 |
Supplemental Oil And Gas Info_7
Supplemental Oil And Gas Information (Schedule Of Net Proved Oil And Gas Reserves And The Changes In Net Proved Oil And Gas Reserves) (Details) | 12 Months Ended | ||
Dec. 31, 2020MBoeMMcfMBbls | Dec. 31, 2019MBoeMMcfMBbls | Dec. 31, 2018MBoeMMcfMBbls | |
Reserve Quantities [Line Items] | |||
Proved reserves | 803 | 1,094 | |
Revisions of previous estimates | (200) | (203) | |
Improved recovery | |||
Purchase of reserves in place | |||
Extensions and discoveries | 8 | ||
Production | (86) | (94) | |
Sales of reserves in place | (2) | ||
Proved reserves | 517 | 803 | 1,094 |
Proved developed reserves (equivalent) | MBoe | 517 | 803 | 976 |
Proved undeveloped reserves (equivalent) | MBoe | 118 | ||
Oil [Member] | |||
Reserve Quantities [Line Items] | |||
Proved reserves | 803 | 1,094 | |
Revisions of previous estimates | (200) | (203) | |
Improved recovery | |||
Purchase of reserves in place | |||
Extensions and discoveries | 8 | ||
Production | (86) | (94) | |
Sales of reserves in place | (2) | ||
Proved reserves | 517 | 803 | 1,094 |
Proved developed reserves (volume) | 517 | 803 | 976 |
Proved undeveloped reserves (volume) | 118 | ||
Gas [Member] | |||
Reserve Quantities [Line Items] | |||
Proved reserves | MMcf | |||
Revisions of previous estimates | MMcf | |||
Improved recovery | MMcf | |||
Purchase of reserves in place | MMcf | |||
Extensions and discoveries | MMcf | |||
Production | MMcf | |||
Sales of reserves in place | MMcf | |||
Proved reserves | MMcf | |||
Proved developed reserves (volume) | MMcf | |||
Proved undeveloped reserves (volume) | MMcf |
Supplemental Oil And Gas Info_8
Supplemental Oil And Gas Information (Schedule Of Reserve Value By Category And The Respective Present Values, Before Income Taxes, Discounted At 10% As A Percentage Of Total Proved Reserves) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reserve Quantities [Line Items] | |||
Total proved reserves year-end reserve report | $ 2,897 | $ 8,365 | $ 13,976 |
Proved developed producing reserves (PDP) | $ 2,598 | $ 7,592 | $ 12,534 |
% of PDP reserves to total proved reserves | 90.00% | 91.00% | 90.00% |
Proved developed non-producing reserves | $ 299 | $ 773 | $ 739 |
% of PDNP reserves to total proved reserves | 10.00% | 9.00% | 5.00% |
Proved undeveloped reserves (PUD) | $ 703 | ||
% of PUD reserves to total proved reserves | 5.00% | ||
Oil [Member] | |||
Reserve Quantities [Line Items] | |||
Total proved reserves year-end reserve report | $ 2,897 | $ 8,365 | $ 13,976 |
Proved developed producing reserves (PDP) | $ 2,598 | $ 7,592 | $ 12,534 |
% of PDP reserves to total proved reserves | 90.00% | 91.00% | 90.00% |
Proved developed non-producing reserves | $ 299 | $ 773 | $ 739 |
% of PDNP reserves to total proved reserves | 10.00% | 9.00% | 5.00% |
Proved undeveloped reserves (PUD) | $ 703 | ||
% of PUD reserves to total proved reserves | 5.00% | ||
Gas [Member] | |||
Reserve Quantities [Line Items] | |||
Total proved reserves year-end reserve report | |||
Proved developed producing reserves (PDP) | |||
% of PDP reserves to total proved reserves | |||
Proved developed non-producing reserves | |||
% of PDNP reserves to total proved reserves | |||
Proved undeveloped reserves (PUD) | |||
% of PUD reserves to total proved reserves |
Supplemental Oil And Gas Info_9
Supplemental Oil And Gas Information (Schedule Of Standardized Measure Of Discounted Futures Net Cash Flows From Proved Oil And Gas Reserves) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Supplemental Oil And Gas Information [Abstract] | ||||
Future cash inflows | $ 18,036 | $ 40,655 | $ 65,871 | |
Future production costs and taxes | (12,664) | (24,829) | (35,877) | |
Future development costs | (538) | (542) | (2,833) | |
Future income tax expenses | ||||
Future net cash flows | 4,834 | 15,284 | 27,161 | |
Discount at 10% for timing of cash flows | (1,937) | (6,919) | (13,185) | |
Standardized measure of discounted future net cash flows | $ 2,897 | $ 8,365 | $ 13,976 | $ 8,170 |
Supplemental Oil And Gas Inf_10
Supplemental Oil And Gas Information (Schedule Of Changes In The Standardized Measure Of Discounted Future Net Cash Flows From Proved Oil And Gas Reserves) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Oil And Gas Information [Abstract] | |||
Balance, beginning of year | $ 8,365 | $ 13,976 | $ 8,170 |
Sales, net of production costs and taxes | (210) | (1,646) | (2,611) |
Discoveries and extensions, net of costs | 154 | 798 | |
Purchase of reserves in place | 143 | ||
Sale of reserves in place | (26) | ||
Net changes in prices and production costs | (2,893) | (3,348) | 4,304 |
Revisions of quantity estimates | (2,353) | (3,058) | 2,180 |
Previously estimated development cost incurred during the year | 210 | ||
Changes in future development costs | (314) | 1,016 | 78 |
Changes in timing and other | (389) | 86 | (4) |
Accretion of discount | 691 | 1,211 | 708 |
Net change in income taxes | |||
Balance, end of year | $ 2,897 | $ 8,365 | $ 13,976 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Mar. 01, 2021USD ($) |
Kansas | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Discontinued Operation, Sale Price | $ 3.5 |