Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Apr. 16, 2018 | Jun. 30, 2017 | |
Document and Entity Information: | |||
Entity Registrant Name | New Concept Energy, Inc. | ||
Entity Trading Symbol | gbr | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Entity Central Index Key | 105,744 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 2,036,935 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 2,706,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 419 | $ 113 |
Accounts receivable from oil and gas sales | 67 | 119 |
Current portion note receivable | 36 | 206 |
Total current assets | 522 | 438 |
Oil and natural gas properties (full cost accounting method) | ||
Proved developed and undeveloped oil and gas properties, net of depletion | 2,721 | 5,608 |
Property and equipment, net of depreciation | ||
Land, buildings and equipment - oil and gas operations | 661 | 706 |
Other | 0 | 25 |
Total property and equipment | 661 | 706 |
Note receivable | 301 | 401 |
Total assets | 4,205 | 7,178 |
Current liabilities | ||
Accounts payable - trade (including $412 and $160 in 2017 and 2016 due to related parties) | 446 | 238 |
Accrued expenses | 29 | 59 |
Current portion of long term debt | 81 | 96 |
Total current liabilities | 556 | 393 |
Long-term debt | ||
Notes payable less current portion | 243 | 296 |
Asset retirement obligation | 2,770 | 2,770 |
Total liabilities | 3,569 | 3,459 |
Stockholders' equity | ||
Series B convertible preferred stock, $10 par value, liquidation value of $100 authorized 100 shares, issued and outstanding one share | 1 | 1 |
Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 2,036,935 and 1,946,935 shares at December 31, 2017 and 2016 | 21 | 20 |
Additional paid-in capital | 59,000 | 58,838 |
Accumulated deficit | (58,386) | (55,140) |
Total Stockholder's equity | 636 | 3,719 |
Total liabilities & stockholders' equity | $ 4,205 | $ 7,178 |
CONSOLIDATED BALANCE SHEETS PAR
CONSOLIDATED BALANCE SHEETS PARENTHETICALS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts payable due to related parties | $ 412 | $ 160 |
Series B convertible preferred stock, par value | $ 10 | $ 10 |
Series B convertible preferred stock, liquidation value | $ 100 | $ 100 |
Series B convertible preferred stock, shares authorized | 100 | 100 |
Series B convertible preferred stock, shares issued | 1 | 1 |
Series B convertible preferred stock, shares outstanding | 1 | 1 |
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 2,036,935 | 1,946,935 |
Common Stock, Shares Outstanding | 2,036,935 | 1,946,935 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATION - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Oil and gas operations, net of royalties | $ 791 | $ 764 | $ 820 |
Total Revenues | 791 | 764 | 820 |
Operating expenses | |||
Oil & gas operations | 1,027 | 1,181 | 1,800 |
Corporate general and administrative | 408 | 352 | 605 |
Impairment of natural gas and oil properties | 2,626 | 0 | 2,717 |
Total Operating Expenses | 4,061 | 1,533 | 5,122 |
Operating earnings (loss) | (3,270) | (769) | (4,302) |
Other income (expense) | |||
Interest income | 25 | 23 | 12 |
Interest expense | (24) | (38) | (62) |
Gain on prepayment of debt | 0 | 888 | 0 |
Gain on sale of land | 0 | 50 | 0 |
Bad debt expense (recovery) - note receivable | 0 | 0 | 1,430 |
Other income (expense), net | 28 | (110) | (32) |
Total Other income (expense) | 29 | 813 | 1,348 |
Earnings (loss) from continuing operations | (3,241) | 44 | (2,954) |
Earnings from discontinued operations | (5) | 4 | 332 |
Net income (loss) applicable to common shares | $ (3,246) | $ 48 | $ (2,622) |
Net income (loss) per common share-basic and diluted | $ (1.59) | $ 0.02 | $ (1.35) |
Weighted average common and equivalent shares outstanding - basic | 2,037 | 1,947 | 1,947 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Net income (loss) | $ (3,246) | $ 48 | $ (2,622) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation, depletion and amortization | 396 | 664 | 721 |
Write-off of assets from discontinued operation | 25 | 0 | 0 |
Impairment of oil and gas properties | 2,626 | 0 | 2,717 |
Write-off (recovery) of affiliate receivable | 0 | 0 | (1,430) |
Gain on prepayment of long term debt | 0 | (888) | 0 |
Gain from sale of land | 0 | (50) | 0 |
Changes in operating assets and liabilities | |||
Other current and non-current assets | 223 | 7 | 260 |
Accounts payable and other liabilities | 178 | (95) | 920 |
Net cash provided by (used) in operating activities | 202 | (314) | 566 |
Cash flows from investing activities | |||
Investment in undeveloped land | (10) | 0 | 0 |
Investment in oil and gas properties | 0 | 0 | (336) |
Fixed asset additions | 0 | (52) | (31) |
Cash from sale of land | 0 | 700 | 116 |
Repayment of loan from affiliate | 0 | 0 | 126 |
Collections of note receivable | 24 | 38 | 13 |
Net cash provided by (used) in investing activities | 14 | 686 | (112) |
Cash flows from financing activities | |||
Payment on notes payable | (73) | (732) | (281) |
Proceeds from the sale of common stock | 163 | 0 | 0 |
Net cash provided by (used in) financing activities | 90 | (732) | (281) |
Net increase (decrease) in cash and cash equivalents | 306 | (360) | 173 |
Cash and cash equivalents at beginning of year | 113 | 473 | 300 |
Cash and cash equivalents at end of year | 419 | 113 | 473 |
Supplemental disclosures of cash flow information | |||
Cash paid for interest on notes payable: | 24 | 22 | 77 |
Cash paid for principal on notes payable: | 73 | 73 | 281 |
Non cash portion of sale of land | $ 0 | $ 0 | $ 415 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Series B Preferred stock Amount | Common Stock Amount | Additional paid in capital | Accumulated Deficit | Total |
Beginning balance, shares at Dec. 31, 2014 | 1 | 1,947 | |||
Beginning balance, value at Dec. 31, 2014 | $ 1 | $ 20 | $ 58,838 | $ (55,188) | $ 3,671 |
Net income | 48 | (2,622) | |||
Ending balance, shares at Dec. 31, 2015 | 1 | 1,947 | |||
Ending balance, value at Dec. 31, 2015 | $ 1 | $ 20 | 58,838 | (55,188) | 3,671 |
Net income | 48 | 48 | |||
Ending balance, shares at Dec. 31, 2016 | 1 | 1,947 | |||
Ending balance, value at Dec. 31, 2016 | $ 1 | $ 20 | 58,838 | (55,140) | 3,719 |
Issuance of common stock, shares | 90 | ||||
Issuance of common stock, value | $ 1 | 162 | 163 | ||
Net income | (3,246) | (3,246) | |||
Ending balance, shares at Dec. 31, 2017 | 1 | 2,037 | |||
Ending balance, value at Dec. 31, 2017 | $ 1 | $ 21 | $ 59,000 | $ (58,386) | $ 636 |
A. BUSINESS DESCRIPTION AND PRE
A. BUSINESS DESCRIPTION AND PRESENTATION | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS DESCRIPTION AND PRESENTATION | The Company, through its wholly owned subsidiaries Mountaineer State Energy, Inc. and Mountaineer State Operations, LLC, operates oil and gas wells and mineral leases in Athens and Meigs Counties in Ohio and in Calhoun, Jackson and Roane Counties in West Virginia. As of December 31, 2017 the Company has 153 producing oil & gas wells, 31 non-producing wells and related equipment and mineral leases covering approximately 20,000 acres. The Company engaged the firm of independent oil and gas engineers Lee Keeling & Associates, Inc. to estimate the net oil and gas reserves. On the basis of their study, the estimates of future net revenues using a present value discount of 10% were estimated to be $2.7 million at December 31, 2017. The Company leased and operated Pacific Pointe Retirement Inn (“Pacific Pointe”) in King City, Oregon for several years. Pacific Pointe, a retirement center, that has a capacity of 114 residents and provides community living with basic services such as meals, housekeeping, laundry, 24/7 staffing, transportation and social and recreational activities. The lease provided that should the property be sold the lease maintained by the Company would be terminated. The third party owner sold the building effective March 30, 2017 and our lease was terminated on that date. These financial statements reflect the operations of the retirement community as a discontinued operation. |
B. SUMMARY OF SIGNIFICANT ACCOU
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | A summary of the significant accounting policies applied in the preparation of the accompanying consolidated financial statements follows: Principles of Consolidation The consolidated financial statements include the accounts of New Concept Energy, Inc. and its majority-owned subsidiaries (collectively, the “Company”, New Concept or “NCE”) and are prepared on the basis of accounting principles generally accepted in the United States of America “GAAP”. All significant intercompany transactions and accounts have been eliminated. Certain accounting balances have been reclassified to conform to the current year presentation. Depreciation Depreciation is provided for in amounts sufficient to relate the cost of property and equipment to operations over their estimated service lives, ranging from 3 to 40 years. Depreciation is computed by the straight-line method. Depreciation expense, which is included in operations, was $55,000, $98,000 and $93,000 for 2017, 2016 and 2015, respectively. Depreciation, Depletion and Amortization of Oil & Gas Properties Depreciation, depletion and amortization (“DD&A”) of producing properties is computed on the unit-of-production method based on estimated oil and gas reserves. While total DD&A expense for the life of a property is limited to the property’s total cost, reserve revisions result in a change in timing of when DD&A expense is recognized. The Company recorded depletion of mineral rights of $259,000, $310,000 and $515,000 in 2017, 2016 and 2015 respectively. Segments The Company operates one primary business segments: oil and gas operations. Segment data is provided in “Note H” to these consolidated financial statements. Major Purchaser The Company sells most of its natural gas production to one purchaser and all of its oil production to one purchaser. While there is an available market for crude oil and natural gas production, we cannot be assured that the loss of this purchaser would not have a material impact on the Company. Oil and Gas Reserves Our oil and gas reserves are estimated by independent petroleum engineers. Reserve engineering is a subjective process that is dependent upon the quality of available data and the interpretation thereof, including evaluations and extrapolations of well flow rates and reservoir pressure. Estimates by different engineers often vary, sometimes significantly. In addition, physical factors such as the results of drilling, testing and production subsequent to the date of an estimate, as well as economic factors such as changes in product prices, may justify revision of such estimates. Because reserves are required to be estimated using recent prices of the evaluation, estimated reserve quantities can be significantly impacted by changes in product prices. The standardized measure of discounted future net cash flows and changes in such cash flows are prepared using assumptions required by the Financial Accounting Standards Board and the Securities and Exchange Commission. Such assumptions include using recent oil and gas prices and year-end costs for estimated future development and production expenditures. Discounted future net cash flows are calculated using a 10% rate. Changes in any of these assumptions could have a significant impact on the standardized measure. Accordingly, the standardized measure does not represent management’s estimated current market value of reserves. Full cost accounting The Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under this method of accounting, all costs of acquisition, exploration and development of oil and natural gas properties (including such costs as leasehold acquisition costs, geological expenditures, dry hole costs, tangible and intangible development costs and direct internal costs) are capitalized as the cost of oil and natural gas properties when incurred. The full cost method requires the Company to calculate quarterly, by cost center, a “ceiling,” or limitation on the amount of properties that can be capitalized on the balance sheet. To the extent capitalized costs of oil and natural gas properties, less accumulated depletion and related deferred taxes exceed the sum of the discounted future net revenues of proved oil and natural gas reserves, the lower of cost or estimated fair value of unproved properties subject to amortization, the cost of properties not being amortized, and the related tax amounts, such excess capitalized costs are charged to expense. Beginning December 31, 2009, full cost companies use the unweighted arithmetic average first day of the month price for oil and natural gas for the 12-month period preceding the calculation date to calculate the future net revenues of reserves. Prior to December 31, 2009, companies used the price in effect at the calculation date and had the option, under certain circumstances, to elect to use subsequent commodity prices if they increased after the calculation date. The Company assesses any unproved oil and gas properties on an annual basis for possible impairment or reduction in value. The Company assesses properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of reserves; and the economic viability of development if reserves are assigned. During any period in which these factors indicate an impairment of unproved properties not subject to amortization, the associated costs incurred to date for such properties are then included in unproved properties subject to amortization. Gas gathering assets Gas gathering assets are capitalized as part of the depletable pool and ratably charged to earnings along with other capitalized exploration, drilling and development costs. Office and field equipment Office and field equipment are capitalized at cost and depreciated on a straight line basis over their estimated useful lives. Office and field equipment useful lives range from 5 to 30 years. Revenue recognition and gas imbalances We use the sales method of accounting for oil and natural gas revenues. Under the sales method, revenues are recognized based on actual volumes of oil and natural gas sold to purchasers. Gas imbalances at December 31, 2017 were not significant. New Concept also follows the sales method of accounting for natural gas production imbalances and would recognize a liability if the existing reserves were not adequate to cover an imbalance. Accounting for Leases Leases of property, plant and equipment where the Company assumes substantially all the benefits and risks of ownership are classified as finance leases. Finance leases are capitalized at the estimated present value of the underlying lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element of the finance charge is charged to the income statement over the lease period. Property, plant and equipment acquired under finance leasing contracts are depreciated over the useful life of the asset. Leases of assets under which all the risks and benefits of ownership are effectively retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the income statement on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognized as an expense in the period in which termination takes place. Revenue Recognition Rental income for residential property leases is recorded when due from residents and is recognized monthly as it is earned, which is not materially different than on a straight-line basis as lease terms are generally for periods of one year or less. Revenues are recognized when products are shipped or services are provided to customers, title is transferred, the sales price is fixed or determinable and collectability is reasonably assured. Costs associated with revenues are recorded in cost of revenues. Production volumes of natural gas are sold immediately and transported via pipeline. Royalties on the production of natural gas either paid in cash or settled through the delivery of volumes. The Company includes royalties in its revenues and cost of revenues when settlement of the royalties is paid in cash, while royalties settled by the delivery of volumes are excluded from revenues and cost of revenues. The Company follows the sales method of accounting for natural gas production imbalances and would recognize a liability if the existing reserves were not adequate to cover an imbalance. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents The Company considers all short-term deposits and money market investments with a maturity of less than three months to be cash equivalents. Other Intangible Assets The cost of acquired patents, trademarks and licenses is capitalized and amortized using the straight-line method over their useful lives. The carrying amount of each intangible asset is reviewed annually and adjusted for permanent impairment where it is considered necessary. Impairment of Notes Receivable Notes receivable are identified as impaired when it is probable that interest and principal will not be collected according to the contractual terms of the note agreements. The accrual of interest is discontinued on such notes, and no income is recognized until all past due amounts of principal and interest are recovered in full. Impairment of Long-Lived Assets The Company reviews its long-lived assets and certain identifiable intangibles for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In reviewing recoverability, the Company estimates the future cash flows expected to result from use of the assets and eventually disposing of them. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss is recognized based on the asset’s fair value. The Company determines the fair value of assets to be disposed of and records the asset at the lower of fair value less disposal costs or carrying value. Assets are not depreciated while held for disposal. Sales of Real Estate Gains on sales of real estate are recognized to the extent permitted by Accounting Standards Codification Topic 360-20, “Real Estate Sales – Real Estate Sales”, (“ASC 360-20”). Until the requirements of ASC 360-20 have been met for full profit recognition, sales are accounted for by the installment or cost recovery method, whichever is appropriate. Real Estate Held for Sale Accounting Standards Codification Topic 360, “Property, Plant, & Equipment” (“ASC 360”) requires that properties held for sale be reported at the lower of carrying amount or fair value less costs of sale. If a reduction in a held for sale property’s carrying amount to fair value less costs of sale is required, a provision for loss is recognized by a charge against earnings. Subsequent revisions, either upward or downward, to a held for sale property’s estimated fair value less costs of sale are recorded as an adjustment to the property’s carrying amount, but not in excess of the property’s carrying amount when originally classified as held for sale. A corresponding charge against or credit to earnings is recognized. Properties held for sale are not depreciated. Asset Retirement Obligation The Company records an asset retirement obligation liability on the consolidated balance sheets and capitalizes a portion of the cost in “Oil and natural gas properties” during the period in which the obligation is incurred. The asset retirement obligation is further described in Note K. Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification, (“ASC”) No. 740, “Accounting for Income Taxes”. ASC 740 requires an asset and liability approach to financial accounting for income taxes. In the event differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities result in deferred tax assets, ASC 740 requires an evaluation of the probability of being able to realize the future benefits indicated by such assets. A valuation allowance is provided for a portion or all of the deferred tax assets when there is an uncertainty regarding the Company’s ability to recognize the benefits of the assets in future years. Recognition of the benefits of deferred tax assets will require the Company to generate future taxable income. There is no assurance that the Company will generate earnings in future years. Since management could not determine the likelihood that the benefit of the deferred tax asset would be realized, no deferred tax asset was recognized by the Company. Recent Accounting Pronouncements There were no recent accounting pronouncements that our Company has not implemented that materially affect our consolidated financial statements. |
C. RELATED PARTIES
C. RELATED PARTIES | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | Pillar Income Asset Management, Inc. Commencing in February 2008, three publicly held entities needed a chief financial officer, Income Opportunity Realty Investors, Inc. (“IOT”), Transcontinental Realty Investors, Inc. (“TCI”) and American Realty Investors, Inc. (“ARL”) each of which have the same contractual advisor. Mr. Bertcher, is a certified public accountant and has a long history in their industry. New Concept made an arrangement with the contractual advisor whereby, in addition to his responsibilities to New Concept Mr. Bertcher would provide accounting and administrative services for the three entities. Mr. Bertcher is paid directly for such services by the contractual advisor. Beginning in 2011 Pillar became the contractual advisor to the three other publicly traded entities. In addition the relationship with Mr. Bertcher New Concept conducts business with Pillar whereby Pillar provided the Company with services including processing payroll, acquiring insurance and other administrative matters. The Company believes that by purchasing these services through certain large entities it can get lower costs and better service. Pillar does not charge the Company a fee for providing these services. |
D. FIXED ASSETS
D. FIXED ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
D. FIXED ASSETS | Land, building and furniture, fixtures and equipment are recorded at cost incurred to acquire the assets. At December 31, 2017, fixed assets are as follows: Oil and Gas Properties 2017 2016 Land and improvements $ 432 $ 422 Buildings and improvements 272 272 Equipment and furnishings 565 565 Total fixed assets 1,269 1,259 Less: Accumulated depletion (608 ) (553 ) Net Fixed Assets $ 661 $ 706 Oil and natural gas properties 2017 2016 Investment in Oil and gas properties $ 6,493 $ 9,121 Less: Accumulated depreciation (3,772 ) (3,513 ) Net oil and gas properties $ 2,721 $ 5,608 |
E. NOTES PAYABLE
E. NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | Notes payable is comprised of the following (in thousands): 2017 2016 Bank Debt 359 432 Deferred Borrowing Costs $ (35 ) $ (40 ) $ 324 $ 392 Bank debt represent loans from a bank to finance drilling and equipment at the Company’s oil and gas operation. The interest rate ranges from 5% to 5 ½ %. The loans are collateralized by the Company’s oil & gas leases as well as real property and equipment. Aggregate annual principal maturities of long-term debt at December 31, 2017 are as follows (in thousands): 2018 81 2019 58 2020 55 2021 55 2022 55 Thereafter 55 $ 359 Deferred borrowing costs (35 ) $ 324 |
F. INCOME TAXES
F. INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES | |
INCOME TAXES | At December 31, 2017, the Company had net operating loss carry forwards of approximately $9.8 million, which expire between 2018 and 2033. Forms 1120, U.S, Corporation Income Tax Returns, The following table presents the principal reasons for the difference between the Company's effective tax rate and the United States statutory income tax rate. 2017 2016 2015 Earned income tax at statutory rate $ – $ 7 $ – Net operating loss utilization – (7 ) – Deferred tax asset from NOL carry forwards 2,058 3,263 3,270 Valuation allowance (2,058 ) (3,263 ) (3,270 ) Reported income tax expense (benefit) $ 0 $ 0 $ 0 Effective income tax rate 0.00% 0.00% 0.00% The Company believes that it is more likely than not the benefit of NOL carryforwards will not be realized. Therefore, a valuation allowance on the related deferred tax assets has been recorded. |
G. STOCKHOLDERS' EQUITY
G. STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | Outstanding Preferred Stock Preferred stock consists of the following (amounts in thousands): Year Ended December 31, 2017 2016 Series B convertible preferred stock, $10 par value, liquidation value of $100, authorized 100 shares, issued and outstanding one share 1 1 The Series B preferred stock has a liquidation value of $100 per share. The right to convert expired April 30, 2003. Dividends at a rate of 6% are payable in cash or preferred shares at the option of the Company. |
H. CONCENTRATION OF CREDIT RISK
H. CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | Financial instrument that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At December 31, 2017, the Company had $343,496 in excess of the FDIC insured limit. In 2016, The Company did have cash deposits in excess of the FDIC insured limit. |
I. CONTINGENCIES
I. CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | Carlton Energy Group, LLC . Since December 2006, Carlton Energy Group, LLC (“Carlton”), an individual, Eurenergy Resources Corporation (“Eurenergy”) and several other entities, including New Concept Energy, Inc., which was then known as CabelTel International Corporation (the “Company”), have been involved in contentious litigation alleging tortuous conduct, breach of contract and other matters and, as to the Company, that it was the alter ego of Eurenergy. The Carlton claims were based upon an alleged tortuous interference with a contract by the individual and Eurenergy related to the right to explore a coal bed methane concession in Bulgaria which had never (and has not to this day) produced any hydrocarbons. At no time during the pendency of this project or since did the Company or any of its officers or directors have any interest whatsoever in the success or failure of the so-called “Bulgaria Project.” However, in the litigation Carlton alleged that the Company was the alter ego of certain of the other defendants, including Eurenergy. Following a jury trial in 2009, the Trial Court (295 th During August 2017, the parties to the litigation reached an arrangement, the final terms of which will not be determined until the outcome of another appeal to the Supreme Court. Under the terms of the arrangement, the Company should have no financial responsibility to Carlton, nor should any potential final outcome materially adversely affect the Company, in management’s opinion. Other The Company has been named as a defendant in other lawsuits in the ordinary course of business. Management is of the opinion that these lawsuits will not have a material effect on the financial condition, results of operations or cash flows of the Company. |
J. OPERATING SEGMENTS
J. OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | The following table reconciles the segment information to the corresponding amounts in the Consolidated Statements of Operations and assets from continuing operations: Year ended December 31, 2017 Oil and Gas Operations Corporate Total Discontinued Operations Retirement Facility Operating revenue $ 791 $ – $ 791 $ 659 Operating expenses 707 408 1,115 358 Depreciation, depletion and amortization 320 – 320 101 Lease of Retirement Center – – – 205 Impairment of oil and gas properties 2,626 – 2,626 – Total Operating Expenses 3,653 408 4,061 664 Interest income 25 – 25 – Interest expense (24 ) – (24 ) – Other income (expense), net – 28 28 – Segment operating income (loss) $ (2,861 ) $ (380 ) $ (3,241 ) $ (5 ) Assets $ 3,903 $ 302 $ 4,205 $ – Year ended December 31, 2016 Oil and Gas Operations Corporate Total Retirement Facility Operating revenue $ 764 $ – $ 764 $ 2,665 Operating expenses 687 352 1,039 1,496 Depreciation, depletion and amortization 494 – 494 168 Lease of Retirement Center – – – 997 Impairment of oil and gas properties – – – – Total Operating Expenses 1,181 352 1,533 2,661 Interest income 23 – 23 – Interest expense (38 ) – (38 ) – Gain on prepayment of debt 888 – 888 – Gain on Sale of Land – 50 50 – Other income (expense), net – (110 ) (110 ) – Segment operating income (loss) $ 456 $ (572 ) $ 44 $ 4 Assets $ 6,641 $ 291 $ 6,932 $ 246 Year ended December 31, 2015 Oil and Gas Operations Corporate Total Retirement Facility Operating revenue $ 820 $ – $ 820 $ 2,997 Operating expenses 1,183 605 1,788 1,623 Depreciation, depletion and amortization 617 – 617 62 Lease of Retirement Center – – – 980 Impairment of oil and gas properties 2,717 – 2,717 – Total Operating Expenses 4,517 605 5,122 2,665 Interest income – 12 12 – Interest expense (62 ) – (62 ) – Bad debt recovery – 1,430 1,430 – Other income (expense), net – (32 ) (32 ) – Segment operating income (loss) $ (3,759 ) $ 805 (2,954 ) $ 332 Assets $ 7,420 $ 1,025 $ 8,445 $ 430 |
K. QUARTERLY DATA (UNAUDITED)
K. QUARTERLY DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY DATA (UNAUDITED) | The table below reflects the Company’s selected quarterly information for the years ended December 31, 2017, 2015 and 2014. Amounts shown are in thousands except per share amounts. First Second Third Fourth Year ended December 31, 2017 Quarter Quarter Quarter Quarter Revenue $ 195 $ 243 $ 194 $ 159 Operating (expense) (256 ) (256 ) (254 ) (261 ) Corporate general and administrative expense (100 ) (122 ) (95 ) (91 ) Impairment of natural gas and oil properties – – – (2,626 ) Other income (expense) net (11 ) 11 65 (30 ) Net income (loss) from continuing operations (172 ) (124 ) (90 ) (2,849 ) Net income (loss) from discontinued operations 13 (11 ) (11 ) (2 ) Income (loss) allocable to common shareholders $ (159 ) $ (135 ) $ (101 ) $ (2,851 ) Income (loss) per common share – basic $ (0.08 ) $ (0.07 ) $ (0.05 ) $ (1.39 ) First Second Third Fourth Year ended December 31, 2016 Quarter Quarter Quarter Quarter Revenue $ 219 $ 170 $ 190 $ 185 Operating (expense) (396 ) (233 ) (295 ) (327 ) Corporate general and administrative expense (166 ) (101 ) (52 ) (33 ) Gain on prepayment of debt – – – 888 Gain on sale of land 50 Other income (expense) net (10 ) (7 ) (13 ) (80 ) Net income (loss) from continuing operations (353 ) (171 ) (170 ) 738 Net income (loss) from discontinued operations 57 38 6 (97 ) Income (loss) allocable to common shareholders $ (296 ) $ (133 ) $ (164 ) 641 Income (loss) per common share – basic $ (0.15 ) $ (0.07 ) $ (0.08 ) $ 0.32 First Second Third Fourth Year ended December 31, 2015 Quarter Quarter Quarter Quarter Revenue $ 172 $ 259 $ 232 $ 157 Operating (expense) (470 ) (440 ) (527 ) (363 ) Corporate general and administrative expense (154 ) (155 ) (176 ) (120 ) Impairment of natural gas and oil properties – – – (2,717 ) Recovery of bad debt 738 386 306 – Other income (expense) net (34 ) (24 ) (14 ) (10 ) Net income (loss) from continuing operations 252 26 (179 ) (3,053 ) Net income (loss) from discontinued operations 62 84 104 82 Income (loss) allocable to common shareholders $ 314 $ 110 $ (75 ) $ (2,971 ) Income (loss) per common share – basic $ 0.16 $ 0.06 $ (0.04 ) $ (1.53 ) |
L. SUPPLEMENTARY FINANCIAL INFO
L. SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
Extractive Industries [Abstract] | |
SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED) | The following table reflects revenues and expenses directly associated with our oil and gas producing activities, including general and administrative expenses directly related to such producing activities. They do not include any allocation of interest costs or general corporate overhead and, therefore, are not necessarily indicative of the contribution to net earnings of our oil and gas operations. Income tax expense has been calculated by applying statutory income tax rates to oil and gas sales after deducting costs, including depreciation, depletion and amortization and after giving effect to permanent differences. 2017 Gas Oil Proved developed and undeveloped reserves - January 1,2017 3,219 149 Purchase of oil and natural gas properties in place 0 0 Discoveries and exclusions 0 0 Revisions (2,211 ) (75 ) Sales of oil and gas properties in place 0 0 Production (178 ) (5 ) Proved developed and undeveloped reserves - December 31,2017 830 69 Probable reserves 1,025 Possible reserves 342 Total reserves - December 31, 2017 2,197 69 Proved developed at beginning of year 1,051 81 Proved developed reserves at end of year 830 69 2016 Gas Oil Proved developed and undeveloped reserves - January 1, 2016 2,604 58 Purchase of oil and natural gas properties in place 0 0 Discoveries and exclusions 0 0 Revisions 746 95 Sales of oil and gas properties in place 0 0 Production (155 ) (4 ) Total reserves - December 31, 2017 3,195 149 Proved developed at beginning of year 504 59 Proved developed reserves at end of year 1,051 81 2017 2016 Oil and gas sales $ 791 $ 764 Operating expenses (707 ) (687 ) Depreciation, depletion and amortization (320 ) (494 ) Impairment of oil & gas properties (2,626 ) – Results of operations $ (2,862 ) $ (417 ) The following table reflects the standardized measure of future net cash flows related to our proved reserves. 2017 2016 Future oil and gas cash inflows $ 10,653 $ 19,368 Future oil & gas operating expenses (3,425 ) (4,605 ) Future development costs (1,480 ) (2,982 ) Future tax expense (724 ) (1,308 ) Future net cash flows $ 5,024 $ 10,473 10% discount to reflect timing of cash flows (2,303 ) (4,150 ) $ 2,721 $ 6,323 (1) Probable Reserves are those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves are as likely as not to be recovered. (2) Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. |
M. ASSET RETIREMENT OBLIGATION
M. ASSET RETIREMENT OBLIGATION | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATION | The Company records an asset retirement obligation (ARO) when the total depth of a drilled well is reached and the Company can reasonably estimate the fair value of an obligation to perform site reclamation, dismantle facilities or plug and abandon costs. The Company records the ARO liability on the consolidated balance sheets and capitalizes a portion of the cost in “Oil and natural gas properties” during the period in which the obligation is incurred. In general, the amount of an ARO and the costs capitalized will be equal to the estimated future cost to satisfy the abandonment obligation using current prices that are escalated by an assumed inflation factor up to the estimated settlement date and adjusted for the Company’s credit risk. This amount is then discounted back to the date that the abandonment obligation was incurred using an assumed cost of funds for the Company. After recording these amounts, the ARO is accreted to its future estimated value using the same assumed cost of funds. The additional capitalized costs are depreciated on a unit-of-production basis or straight-line basis. In 2012, the Company re-evaluated its method of plugging abandoned wells and determined by doing so in-house it could lower the cost. Based upon the Company’s current calculations, we have established a sufficient reserve, for accounting purposes, to plug the existing wells when necessary. 2017 2016 Asset retirement obligation, January 1 $ 2,770 $ 2,770 Acquisition of oil and gas properties – – Revisions in the estimated cash flows – – Liability incurred upon acquiring and drilling wells – – Liability settled upon plugging and abandoning wells – – Accretion of discount expense – – Asset retirement obligation, December 31 $ 2,770 $ 2,770 |
N. SUBSEQUENT EVENTS
N. SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | The Company has evaluated subsequent events through April 16, 2018, the date the financial statements were available to be issued, and has determined that there are none to be reported. |
B. SUMMARY OF SIGNIFICANT ACC21
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (POLICIES) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of New Concept Energy, Inc. and its majority-owned subsidiaries (collectively, the “Company”, New Concept or “NCE”) and are prepared on the basis of accounting principles generally accepted in the United States of America “GAAP”. All significant intercompany transactions and accounts have been eliminated. Certain accounting balances have been reclassified to conform to the current year presentation. |
Depreciation | Depreciation Depreciation is provided for in amounts sufficient to relate the cost of property and equipment to operations over their estimated service lives, ranging from 3 to 40 years. Depreciation is computed by the straight-line method. Depreciation expense, which is included in operations, was $55,000, $98,000 and $93,000 for 2017, 2016 and 2015, respectively. |
Depreciation, Depletion and Amortization of Producing Oil & Gas Properties | Depreciation, Depletion and Amortization of Oil & Gas Properties Depreciation, depletion and amortization (“DD&A”) of producing properties is computed on the unit-of-production method based on estimated oil and gas reserves. While total DD&A expense for the life of a property is limited to the property’s total cost, reserve revisions result in a change in timing of when DD&A expense is recognized. The Company recorded depletion of mineral rights of $259,000, $310,000 and $515,000 in 2017, 2016 and 2015 respectively. |
Segments | Segments The Company operates one primary business segments: oil and gas operations. Segment data is provided in “Note H” to these consolidated financial statements. |
Major Purchaser | Major Purchaser The Company sells most of its natural gas production to one purchaser and all of its oil production to one purchaser. While there is an available market for crude oil and natural gas production, we cannot be assured that the loss of this purchaser would not have a material impact on the Company. |
Oil and Gas Reserves | Oil and Gas Reserves Our oil and gas reserves are estimated by independent petroleum engineers. Reserve engineering is a subjective process that is dependent upon the quality of available data and the interpretation thereof, including evaluations and extrapolations of well flow rates and reservoir pressure. Estimates by different engineers often vary, sometimes significantly. In addition, physical factors such as the results of drilling, testing and production subsequent to the date of an estimate, as well as economic factors such as changes in product prices, may justify revision of such estimates. Because reserves are required to be estimated using recent prices of the evaluation, estimated reserve quantities can be significantly impacted by changes in product prices. The standardized measure of discounted future net cash flows and changes in such cash flows are prepared using assumptions required by the Financial Accounting Standards Board and the Securities and Exchange Commission. Such assumptions include using recent oil and gas prices and year-end costs for estimated future development and production expenditures. Discounted future net cash flows are calculated using a 10% rate. Changes in any of these assumptions could have a significant impact on the standardized measure. Accordingly, the standardized measure does not represent management’s estimated current market value of reserves. |
Full cost accounting | Full cost accounting The Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under this method of accounting, all costs of acquisition, exploration and development of oil and natural gas properties (including such costs as leasehold acquisition costs, geological expenditures, dry hole costs, tangible and intangible development costs and direct internal costs) are capitalized as the cost of oil and natural gas properties when incurred. The full cost method requires the Company to calculate quarterly, by cost center, a “ceiling,” or limitation on the amount of properties that can be capitalized on the balance sheet. To the extent capitalized costs of oil and natural gas properties, less accumulated depletion and related deferred taxes exceed the sum of the discounted future net revenues of proved oil and natural gas reserves, the lower of cost or estimated fair value of unproved properties subject to amortization, the cost of properties not being amortized, and the related tax amounts, such excess capitalized costs are charged to expense. Beginning December 31, 2009, full cost companies use the unweighted arithmetic average first day of the month price for oil and natural gas for the 12-month period preceding the calculation date to calculate the future net revenues of reserves. Prior to December 31, 2009, companies used the price in effect at the calculation date and had the option, under certain circumstances, to elect to use subsequent commodity prices if they increased after the calculation date. The Company assesses any unproved oil and gas properties on an annual basis for possible impairment or reduction in value. The Company assesses properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of reserves; and the economic viability of development if reserves are assigned. During any period in which these factors indicate an impairment of unproved properties not subject to amortization, the associated costs incurred to date for such properties are then included in unproved properties subject to amortization. |
Gas gathering assets | Gas gathering assets Gas gathering assets are capitalized as part of the depletable pool and ratably charged to earnings along with other capitalized exploration, drilling and development costs. |
Office and field equipment | Office and field equipment Office and field equipment are capitalized at cost and depreciated on a straight line basis over their estimated useful lives. Office and field equipment useful lives range from 5 to 30 years. |
Revenue recognition and gas imbalances | Revenue recognition and gas imbalances We use the sales method of accounting for oil and natural gas revenues. Under the sales method, revenues are recognized based on actual volumes of oil and natural gas sold to purchasers. Gas imbalances at December 31, 2017 were not significant. New Concept also follows the sales method of accounting for natural gas production imbalances and would recognize a liability if the existing reserves were not adequate to cover an imbalance. |
Accounting for Leases | Accounting for Leases Leases of property, plant and equipment where the Company assumes substantially all the benefits and risks of ownership are classified as finance leases. Finance leases are capitalized at the estimated present value of the underlying lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element of the finance charge is charged to the income statement over the lease period. Property, plant and equipment acquired under finance leasing contracts are depreciated over the useful life of the asset. Leases of assets under which all the risks and benefits of ownership are effectively retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the income statement on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognized as an expense in the period in which termination takes place. |
Revenue Recognition | Revenue Recognition Rental income for residential property leases is recorded when due from residents and is recognized monthly as it is earned, which is not materially different than on a straight-line basis as lease terms are generally for periods of one year or less. Revenues are recognized when products are shipped or services are provided to customers, title is transferred, the sales price is fixed or determinable and collectability is reasonably assured. Costs associated with revenues are recorded in cost of revenues. Production volumes of natural gas are sold immediately and transported via pipeline. Royalties on the production of natural gas either paid in cash or settled through the delivery of volumes. The Company includes royalties in its revenues and cost of revenues when settlement of the royalties is paid in cash, while royalties settled by the delivery of volumes are excluded from revenues and cost of revenues. The Company follows the sales method of accounting for natural gas production imbalances and would recognize a liability if the existing reserves were not adequate to cover an imbalance. |
Use of Estimates | Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents The Company considers all short-term deposits and money market investments with a maturity of less than three months to be cash equivalents. |
Other Intangible Assets | Other Intangible Assets The cost of acquired patents, trademarks and licenses is capitalized and amortized using the straight-line method over their useful lives. The carrying amount of each intangible asset is reviewed annually and adjusted for permanent impairment where it is considered necessary. |
Impairment of Notes Receivable | Impairment of Notes Receivable Notes receivable are identified as impaired when it is probable that interest and principal will not be collected according to the contractual terms of the note agreements. The accrual of interest is discontinued on such notes, and no income is recognized until all past due amounts of principal and interest are recovered in full. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets and certain identifiable intangibles for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In reviewing recoverability, the Company estimates the future cash flows expected to result from use of the assets and eventually disposing of them. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss is recognized based on the asset’s fair value. The Company determines the fair value of assets to be disposed of and records the asset at the lower of fair value less disposal costs or carrying value. Assets are not depreciated while held for disposal. |
Sales of Real Estate | Sales of Real Estate Gains on sales of real estate are recognized to the extent permitted by Accounting Standards Codification Topic 360-20, “Real Estate Sales – Real Estate Sales”, (“ASC 360-20”). Until the requirements of ASC 360-20 have been met for full profit recognition, sales are accounted for by the installment or cost recovery method, whichever is appropriate. |
Real Estate Held for Sale | Real Estate Held for Sale Accounting Standards Codification Topic 360, “Property, Plant, & Equipment” (“ASC 360”) requires that properties held for sale be reported at the lower of carrying amount or fair value less costs of sale. If a reduction in a held for sale property’s carrying amount to fair value less costs of sale is required, a provision for loss is recognized by a charge against earnings. Subsequent revisions, either upward or downward, to a held for sale property’s estimated fair value less costs of sale are recorded as an adjustment to the property’s carrying amount, but not in excess of the property’s carrying amount when originally classified as held for sale. A corresponding charge against or credit to earnings is recognized. Properties held for sale are not depreciated. |
Asset Retirement Obligation | Asset Retirement Obligation The Company records an asset retirement obligation liability on the consolidated balance sheets and capitalizes a portion of the cost in “Oil and natural gas properties” during the period in which the obligation is incurred. The asset retirement obligation is further described in Note K. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification, (“ASC”) No. 740, “Accounting for Income Taxes”. ASC 740 requires an asset and liability approach to financial accounting for income taxes. In the event differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities result in deferred tax assets, ASC 740 requires an evaluation of the probability of being able to realize the future benefits indicated by such assets. A valuation allowance is provided for a portion or all of the deferred tax assets when there is an uncertainty regarding the Company’s ability to recognize the benefits of the assets in future years. Recognition of the benefits of deferred tax assets will require the Company to generate future taxable income. There is no assurance that the Company will generate earnings in future years. Since management could not determine the likelihood that the benefit of the deferred tax asset would be realized, no deferred tax asset was recognized by the Company. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There were no recent accounting pronouncements that our Company has not implemented that materially affect our consolidated financial statements. |
D. FIXED ASSETS (Tables)
D. FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | Oil and Gas Properties 2017 2016 Land and improvements $ 432 $ 422 Buildings and improvements 272 272 Equipment and furnishings 565 565 Total fixed assets 1,269 1,259 Less: Accumulated depletion (608 ) (553 ) Net Fixed Assets $ 661 $ 706 Oil and natural gas properties 2017 2016 Investment in Oil and gas properties $ 6,493 $ 9,121 Less: Accumulated depreciation (3,772 ) (3,513 ) Net oil and gas properties $ 2,721 $ 5,608 |
E. NOTES PAYABLE (Tables)
E. NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | 2017 2016 Bank Debt 359 432 Deferred Borrowing Costs $ (35 ) $ (40 ) $ 324 $ 392 |
Schedule of annual principal maturities of long-term debt | 2018 81 2019 58 2020 55 2021 55 2022 55 Thereafter 55 $ 359 Deferred borrowing costs (35 ) $ 324 |
F. INCOME TAXES (Tables)
F. INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES | |
Schedule of Effective Income Tax Rate Reconciliation | 2017 2016 2015 Earned income tax at statutory rate $ – $ 7 $ – Net operating loss utilization – (7 ) – Deferred tax asset from NOL carry forwards 2,058 3,263 3,270 Valuation allowance (2,058 ) (3,263 ) (3,270 ) Reported income tax expense (benefit) $ 0 $ 0 $ 0 Effective income tax rate 0.00% 0.00% 0.00% |
G. STOCKHOLDERS' EQUITY (Table)
G. STOCKHOLDERS' EQUITY (Table) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Preferred Stock | Year Ended December 31, 2017 2016 Series B convertible preferred stock, $10 par value, liquidation value of $100, authorized 100 shares, issued and outstanding one share 1 1 |
J. OPERATING SEGMENTS (Tables)
J. OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | The following table reconciles the segment information to the corresponding amounts in the Consolidated Statements of Operations and assets from continuing operations: Year ended December 31, 2017 Oil and Gas Operations Corporate Total Discontinued Operations Retirement Facility Operating revenue $ 791 $ – $ 791 $ 659 Operating expenses 707 408 1,115 358 Depreciation, depletion and amortization 320 – 320 101 Lease of Retirement Center – – – 205 Impairment of oil and gas properties 2,626 – 2,626 – Total Operating Expenses 3,653 408 4,061 664 Interest income 25 – 25 – Interest expense (24 ) – (24 ) – Other income (expense), net – 28 28 – Segment operating income (loss) $ (2,861 ) $ (380 ) $ (3,241 ) $ (5 ) Assets $ 3,903 $ 302 $ 4,205 $ – Year ended December 31, 2016 Oil and Gas Operations Corporate Total Retirement Facility Operating revenue $ 764 $ – $ 764 $ 2,665 Operating expenses 687 352 1,039 1,496 Depreciation, depletion and amortization 494 – 494 168 Lease of Retirement Center – – – 997 Impairment of oil and gas properties – – – – Total Operating Expenses 1,181 352 1,533 2,661 Interest income 23 – 23 – Interest expense (38 ) – (38 ) – Gain on prepayment of debt 888 – 888 – Gain on Sale of Land – 50 50 – Other income (expense), net – (110 ) (110 ) – Segment operating income (loss) $ 456 $ (572 ) $ 44 $ 4 Assets $ 6,641 $ 291 $ 6,932 $ 246 Year ended December 31, 2015 Oil and Gas Operations Corporate Total Retirement Facility Operating revenue $ 820 $ – $ 820 $ 2,997 Operating expenses 1,183 605 1,788 1,623 Depreciation, depletion and amortization 617 – 617 62 Lease of Retirement Center – – – 980 Impairment of oil and gas properties 2,717 – 2,717 – Total Operating Expenses 4,517 605 5,122 2,665 Interest income – 12 12 – Interest expense (62 ) – (62 ) – Bad debt recovery – 1,430 1,430 – Other income (expense), net – (32 ) (32 ) – Segment operating income (loss) $ (3,759 ) $ 805 (2,954 ) $ 332 Assets $ 7,420 $ 1,025 $ 8,445 $ 430 |
K. QUARTERLY DATA (UNAUDITED) (
K. QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | First Second Third Fourth Year ended December 31, 2017 Quarter Quarter Quarter Quarter Revenue $ 195 $ 243 $ 194 $ 159 Operating (expense) (256 ) (256 ) (254 ) (261 ) Corporate general and administrative expense (100 ) (122 ) (95 ) (91 ) Impairment of natural gas and oil properties – – – (2,626 ) Other income (expense) net (11 ) 11 65 (30 ) Net income (loss) from continuing operations (172 ) (124 ) (90 ) (2,849 ) Net income (loss) from discontinued operations 13 (11 ) (11 ) (2 ) Income (loss) allocable to common shareholders $ (159 ) $ (135 ) $ (101 ) $ (2,851 ) Income (loss) per common share – basic $ (0.08 ) $ (0.07 ) $ (0.05 ) $ (1.39 ) First Second Third Fourth Year ended December 31, 2016 Quarter Quarter Quarter Quarter Revenue $ 219 $ 170 $ 190 $ 185 Operating (expense) (396 ) (233 ) (295 ) (327 ) Corporate general and administrative expense (166 ) (101 ) (52 ) (33 ) Gain on prepayment of debt – – – 888 Gain on sale of land 50 Other income (expense) net (10 ) (7 ) (13 ) (80 ) Net income (loss) from continuing operations (353 ) (171 ) (170 ) 738 Net income (loss) from discontinued operations 57 38 6 (97 ) Income (loss) allocable to common shareholders $ (296 ) $ (133 ) $ (164 ) 641 Income (loss) per common share – basic ($ 0.15 ) $ (0.07 ) $ (0.08 ) $ 0.32 First Second Third Fourth Year ended December 31, 2015 Quarter Quarter Quarter Quarter Revenue $ 172 $ 259 $ 232 $ 157 Operating (expense) (470 ) (440 ) (527 ) (363 ) Corporate general and administrative expense (154 ) (155 ) (176 ) (120 ) Impairment of natural gas and oil properties – – – (2,717 ) Recovery of bad debt 738 386 306 – Other income (expense) net (34 ) (24 ) (14 ) (10 ) Net income (loss) from continuing operations 252 26 (179 ) (3,053 ) Net income (loss) from discontinued operations 62 84 104 82 Income (loss) allocable to common shareholders $ 314 $ 110 $ (75 ) $ (2,971 ) Income (loss) per common share – basic $ 0.16 $ 0.06 $ (0.04 ) $ (1.53 ) |
L. SUPPLEMENTARY FINANCIAL IN28
L. SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Extractive Industries [Abstract] | |
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities | 2017 Gas Oil Proved developed and undeveloped reserves - January 1,2017 3,219 149 Purchase of oil and natural gas properties in place 0 0 Discoveries and exclusions 0 0 Revisions (2,211 ) (75 ) Sales of oil and gas properties in place 0 0 Production (178 ) (5 ) Proved developed and undeveloped reserves - December 31,2017 830 69 Probable reserves 1,025 Possible reserves 342 Total reserves - December 31, 2017 2,197 69 Proved developed at beginning of year 1,051 81 Proved developed reserves at end of year 830 69 2016 Gas Oil Proved developed and undeveloped reserves - January 1, 2016 2,604 58 Purchase of oil and natural gas properties in place 0 0 Discoveries and exclusions 0 0 Revisions 746 95 Sales of oil and gas properties in place 0 0 Production (155 ) (4 ) Total reserves - December 31, 2017 3,195 149 Proved developed at beginning of year 504 59 Proved developed reserves at end of year 1,051 81 |
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure | 2017 2016 Oil and gas sales $ 791 $ 764 Operating expenses (707 ) (687 ) Depreciation, depletion and amortization (320 ) (494 ) Impairment of oil & gas properties (2,626 ) – Results of operations $ (2,862 ) $ (417 ) |
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows | 2017 2016 Future oil and gas cash inflows $ 10,653 $ 19,368 Future oil & gas operating expenses (3,425 ) (4,605 ) Future development costs (1,480 ) (2,982 ) Future tax expense (724 ) (1,308 ) Future net cash flows $ 5,024 $ 10,473 10% discount to reflect timing of cash flows (2,303 ) (4,150 ) $ 2,721 $ 6,323 |
M. ASSET RETIREMENT OBLIGATION
M. ASSET RETIREMENT OBLIGATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | 2017 2016 Asset retirement obligation, January 1 $ 2,770 $ 2,770 Acquisition of oil and gas properties – – Revisions in the estimated cash flows – – Liability incurred upon acquiring and drilling wells – – Liability settled upon plugging and abandoning wells – – Accretion of discount expense – – Asset retirement obligation, December 31 $ 2,770 $ 2,770 |
B. SUMMARY OF SIGNIFICANT ACC30
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Depreciation expense | $ 55,000 | $ 98,000 | $ 93,000 |
Depletion expense | $ 259,000 | $ 310,000 | $ 515,000 |
D. FIXED ASSETS (Details)
D. FIXED ASSETS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Land and improvements | $ 432,000 | $ 422,000 |
Buildings and improvements | 272,000 | 272,000 |
Equipment and furnishings | 565,000 | 565,000 |
Total fixed assets | 1,269,000 | 1,259,000 |
Less: Accumulated depletion | (608,000) | (553,000) |
Net Fixed Assets | 661,000 | 706,000 |
Investment in Oil and gas properties | 6,493,000 | 9,121,000 |
Less: Accumulated depreciation | (3,772,000) | (3,513,000) |
Net oil and gas properties | $ 2,721,000 | $ 5,608,000 |
E. NOTES PAYABLE (Details - Not
E. NOTES PAYABLE (Details - Notes Payable) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Bank debt | $ 359 | $ 432 |
Deferred borrowing costs | (35) | (40) |
Notes payable | $ 324 | $ 392 |
E. NOTES PAYABLE (Details - Deb
E. NOTES PAYABLE (Details - Debt maturities) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Principal maturity 2018 | $ 81 | |
Principal maturity 2019 | 58 | |
Principal maturity 2020 | 55 | |
Principal maturity 2021 | 55 | |
Principal maturity 2022 | 55 | |
Principal maturity Thereafter | 55 | |
Total long term debt | 359 | |
Deferred borrowing costs | (35) | $ (40) |
Total long term debt | $ 359 | $ 432 |
E. NOTES PAYABLE (Details Narra
E. NOTES PAYABLE (Details Narrative) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt interest rate range | 5% to 5 1/2% |
F. INCOME TAXES (Details)
F. INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INCOME TAXES | |||
Earned income tax at statutory rate | $ 0 | $ 7 | $ 0 |
Net operating loss utilization | 0 | (7) | 0 |
Deferred tax asset from NOL carry forwards | 2,058 | 3,263 | 3,270 |
Valuation allowance | (2,058) | (3,263) | (3,270) |
Reported income tax expense (benefit) | $ 0 | $ 0 | $ 0 |
Effective income tax rate | 0.00% | 0.00% | 0.00% |
F. INCOME TAXES (Details Narrat
F. INCOME TAXES (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
INCOME TAXES | |
Operating loss carryforward | $ 9,800 |
Operating loss carryforward beginning expiration date | Dec. 31, 2018 |
G. STOCKHOLDERS' EQUITY (Detail
G. STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | ||
Series B convertible preferred stock, par value | $ 10 | $ 10 |
Series B convertible preferred stock, liquidation value | $ 100 | $ 100 |
Series B convertible preferred stock, shares authorized | 100 | 100 |
Series B convertible preferred stock, shares issued | 1 | 1 |
Series B convertible preferred stock, shares outstanding | 1 | 1 |
Dividend rate | 6.00% |
H. CONCENTRATION OF CREDIT RI38
H. CONCENTRATION OF CREDIT RISK (Details Narrative) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Risks and Uncertainties [Abstract] | ||
Cash in excess of FDIC limits | $ 343,496 | $ 0 |
J. OPERATING SEGMENTS (Details)
J. OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | $ 159 | $ 194 | $ 243 | $ 195 | $ 157 | $ 232 | $ 259 | $ 172 | $ 791 | $ 764 | $ 820 | ||||
Operating (expense) | 1,115 | 1,039 | 1,788 | ||||||||||||
Depreciation, depletion and amortization | 320 | 494 | 617 | ||||||||||||
Lease of Retirement Center | 0 | 0 | 0 | ||||||||||||
Impairment of natural gas and oil properties | 2,626 | 0 | 0 | 0 | 2,717 | 0 | 0 | 0 | 2,626 | 0 | 2,717 | ||||
Total operating expenses | 261 | 254 | 256 | 256 | $ 327 | $ 295 | $ 233 | $ 396 | 363 | 527 | 440 | 470 | 4,061 | 1,533 | 5,122 |
Interest income | 25 | 23 | 12 | ||||||||||||
Interest expense | (24) | (38) | (62) | ||||||||||||
Gain on prepayment of debt | 888 | 0 | 0 | 0 | 0 | 888 | 0 | ||||||||
Gain on sale of land | 50 | 0 | 0 | 0 | 0 | 50 | 0 | ||||||||
Recovery of bad debt | 0 | 306 | 386 | 738 | 0 | 0 | 1,430 | ||||||||
Other income (expense) net | 28 | (110) | (32) | ||||||||||||
Segment operating income (loss) | (2,849) | $ (90) | $ (124) | $ (172) | 738 | $ (170) | $ (171) | $ (353) | (3,053) | $ (179) | $ 26 | $ 252 | (3,241) | 44 | (2,954) |
Assets | 4,205 | 7,178 | 8,445 | 4,205 | 7,178 | 8,445 | |||||||||
Oil and Gas Operations [Member] | |||||||||||||||
Revenue | 764 | 820 | |||||||||||||
Operating (expense) | 707 | 687 | 1,183 | ||||||||||||
Depreciation, depletion and amortization | 320 | 494 | 617 | ||||||||||||
Lease of Retirement Center | 0 | 0 | 0 | ||||||||||||
Impairment of natural gas and oil properties | 2,626 | 0 | 2,717 | ||||||||||||
Total operating expenses | 3,653 | 1,181 | 4,517 | ||||||||||||
Interest income | 25 | 23 | 0 | ||||||||||||
Interest expense | (24) | (38) | (62) | ||||||||||||
Gain on prepayment of debt | 888 | ||||||||||||||
Gain on sale of land | 0 | ||||||||||||||
Other income (expense) net | 0 | 0 | 0 | ||||||||||||
Segment operating income (loss) | (2,861) | 421 | (3,759) | ||||||||||||
Assets | 3,903 | 6,641 | 7,420 | 3,903 | 6,641 | 7,420 | |||||||||
Corporate [Member] | |||||||||||||||
Revenue | 0 | 0 | |||||||||||||
Operating (expense) | 408 | 352 | 605 | ||||||||||||
Depreciation, depletion and amortization | 0 | 0 | 0 | ||||||||||||
Lease of Retirement Center | 0 | 0 | 0 | ||||||||||||
Impairment of natural gas and oil properties | 0 | 0 | 0 | ||||||||||||
Total operating expenses | 408 | 352 | 605 | ||||||||||||
Interest income | 0 | 0 | 12 | ||||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||||
Gain on prepayment of debt | 0 | ||||||||||||||
Gain on sale of land | 50 | ||||||||||||||
Other income (expense) net | 28 | (110) | (32) | ||||||||||||
Segment operating income (loss) | (380) | (572) | 805 | ||||||||||||
Assets | 303 | 291 | 1,025 | 303 | 291 | 1,025 | |||||||||
Discontinued Operations [Member] | |||||||||||||||
Revenue | 659 | ||||||||||||||
Operating (expense) | 358 | ||||||||||||||
Depreciation, depletion and amortization | 101 | ||||||||||||||
Lease of Retirement Center | 205 | ||||||||||||||
Impairment of natural gas and oil properties | 0 | ||||||||||||||
Total operating expenses | 664 | ||||||||||||||
Interest income | 0 | ||||||||||||||
Interest expense | 0 | ||||||||||||||
Other income (expense) net | 0 | ||||||||||||||
Segment operating income (loss) | (5) | ||||||||||||||
Assets | $ 0 | $ 0 | |||||||||||||
Retirement Facility [Member] | |||||||||||||||
Revenue | 2,665 | 2,997 | |||||||||||||
Operating (expense) | 1,496 | 1,623 | |||||||||||||
Depreciation, depletion and amortization | 168 | 62 | |||||||||||||
Lease of Retirement Center | 997 | 980 | |||||||||||||
Impairment of natural gas and oil properties | 0 | 0 | |||||||||||||
Total operating expenses | 2,661 | 2,665 | |||||||||||||
Interest income | 0 | 0 | |||||||||||||
Interest expense | 0 | ||||||||||||||
Gain on prepayment of debt | 0 | ||||||||||||||
Gain on sale of land | 0 | ||||||||||||||
Other income (expense) net | 0 | 0 | |||||||||||||
Segment operating income (loss) | 4 | 332 | |||||||||||||
Assets | $ 246 | $ 430 | $ 246 | $ 430 |
K. QUARTERLY DATA (UNAUDITED)40
K. QUARTERLY DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Revenue | $ 159 | $ 194 | $ 243 | $ 195 | $ 157 | $ 232 | $ 259 | $ 172 | $ 791 | $ 764 | $ 820 | ||||
Operating (expense) | (261) | (254) | (256) | (256) | $ (327) | $ (295) | $ (233) | $ (396) | (363) | (527) | (440) | (470) | (4,061) | (1,533) | (5,122) |
Corporate general and administrative expense | (91) | (95) | (122) | (100) | (33) | (52) | (101) | (166) | (120) | (176) | (155) | (154) | (408) | (352) | (605) |
Gain on prepayment of debt | 888 | 0 | 0 | 0 | 0 | 888 | 0 | ||||||||
Gain on sale of land | 50 | 0 | 0 | 0 | 0 | 50 | 0 | ||||||||
Impairment of natural gas and oil properties | (2,626) | 0 | 0 | 0 | (2,717) | 0 | 0 | 0 | (2,626) | 0 | (2,717) | ||||
Recovery of bad debt | 0 | 306 | 386 | 738 | 0 | 0 | 1,430 | ||||||||
Other income (expense) net | (30) | 65 | 11 | (11) | (80) | (13) | (7) | (10) | (10) | (14) | (24) | (34) | 29 | 813 | 1,348 |
Net income (loss) from continuing operations | (2,849) | (90) | (124) | (172) | 738 | (170) | (171) | (353) | (3,053) | (179) | 26 | 252 | (3,241) | 44 | (2,954) |
Net income (loss) from discontinued operations | (2) | (11) | (11) | 13 | (97) | 6 | 38 | 57 | 82 | 104 | 84 | 62 | (5) | 4 | 332 |
Income (loss) allocable to common shareholders | $ (2,851) | $ (101) | $ (135) | $ (159) | $ 641 | $ (164) | $ (133) | $ (296) | $ (2,971) | $ (75) | $ 110 | $ 314 | $ (3,246) | $ 48 | $ (2,622) |
Income (loss) per common share - basic | $ (1.39) | $ (0.05) | $ (0.07) | $ (0.08) | $ 0.32 | $ (0.08) | $ (0.07) | $ (0.15) | $ (1.53) | $ (0.04) | $ 0.06 | $ 0.16 |
L. SUPPLEMENTARY FINANCIAL IN41
L. SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT (Details - Proved reserves) | 12 Months Ended | |
Dec. 31, 2017McfeMMBoe | Dec. 31, 2016McfeMMBoe | |
Gas (MMCF) [Member] | ||
Proved developed and undeveloped reserves - January 1, 2017 | Mcfe | 3,195 | 2,604 |
Purchase of oil and natural gas properties in place | Mcfe | 0 | 0 |
Discoveries and exclusions | Mcfe | 0 | 0 |
Revisions | Mcfe | (2,211) | 746 |
Sales of oil and gas properties in place | Mcfe | 0 | 0 |
Production | Mcfe | (178) | (155) |
Proved developed and undeveloped reserves - December 31, 2017 | Mcfe | 830 | 3,195 |
Oil (MBBLS) [Member] | ||
Proved developed and undeveloped reserves - January 1, 2017 | MMBoe | 149 | 58 |
Purchase of oil and natural gas properties in place | MMBoe | 0 | 0 |
Discoveries and exclusions | MMBoe | 0 | 0 |
Revisions | MMBoe | (75) | 95 |
Sales of oil and gas properties in place | MMBoe | 0 | 0 |
Production | MMBoe | (5) | (4) |
Proved developed and undeveloped reserves - December 31, 2017 | MMBoe | 69 | 149 |
L. SUPPLEMENTARY FINANCIAL IN42
L. SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT (Details - Oil and gas operations) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Extractive Industries [Abstract] | |||||||||||
Oil and gas sales | $ 791 | $ 764 | |||||||||
Operating expenses | (707) | (687) | |||||||||
Depreciation, depletion and amortization | (400) | (664) | |||||||||
Impairment of oil and gas properties | $ (2,626) | $ 0 | $ 0 | $ 0 | $ (2,717) | $ 0 | $ 0 | $ 0 | (2,626) | 0 | $ (2,717) |
Results of operations | $ (2,862) | $ (417) |
L. SUPPLEMENTARY FINANCIAL IN43
L. SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT (Details - Future cash flows) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Extractive Industries [Abstract] | ||
Future oil and gas cash inflows | $ 10,653 | $ 19,368 |
Future oil & gas operating expenses | (3,425) | (4,605) |
Future development costs | (1,480) | (2,982) |
Future tax expense | (724) | (1,308) |
Future net cash flows | 5,024 | 10,473 |
10% discount to reflect timing of cash flows | (2,303) | (4,150) |
Standardized measure of future cash flows | $ 2,721 | $ 6,323 |
M. ASSET RETIREMENT OBLIGATIO44
M. ASSET RETIREMENT OBLIGATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligation, January 1 | $ 2,770 | $ 0 |
Acquisition of oil and gas properties | 0 | 0 |
Revisions in the estimated cash flows | 0 | 0 |
Liability incurred upon acquiring and drilling wells | 0 | 0 |
Liability settled upon plugging and abandoning wells | 0 | 0 |
Accretion of discount expense | 0 | 0 |
Asset retirement obligation, December 31 | $ 2,770 | $ 2,770 |