Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 06, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | TENGASCO INC | |
Entity Central Index Key | 1,001,614 | |
Entity Filer Category | Smaller Reporting Company | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 10,624,493 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current | ||
Cash and cash equivalents | $ 3,235 | $ 185 |
Accounts receivable, less allowance for doubtful accounts of $14 | 555 | 517 |
Accounts receivable – related party, less allowance for doubtful accounts of $159 | ||
Inventory | 602 | 541 |
Other current assets | 206 | 134 |
Discontinued operations included in current assets | 121 | |
Total current assets | 4,598 | 1,498 |
Loan fees, net | 11 | 13 |
Oil and gas properties, net (full cost accounting method) | 4,617 | 4,720 |
Other property and equipment, net | 250 | 135 |
Deferred tax asset | 242 | 242 |
Discontinued operations included in non-current assets | 1,497 | |
Total assets | 9,718 | 8,105 |
Current liabilities | ||
Accounts payable – trade | 301 | 181 |
Accounts payable – other | 159 | 159 |
Accrued and other current liabilities | 208 | 187 |
Current maturities of long-term debt | 61 | 41 |
Discontinued operations included in current liabilities | 22 | 43 |
Total current liabilities | 751 | 611 |
Asset retirement obligation | 2,328 | 2,270 |
Long term debt, less current maturities | 108 | 49 |
Total liabilities | 3,187 | 2,930 |
Commitments and contingencies (Note 13) | ||
Preferred stock, 25,000,000 shares authorized: | ||
Series A Preferred stock, $0.0001 par value, 10,000 shares designated; 0 shares issued and outstanding | ||
Common stock, $.001 par value, authorized 100,000,000 shares, 10,624,493 and 10,619,924 shares issued and outstanding | 11 | 11 |
Additional paid–in capital | 58,257 | 58,253 |
Accumulated deficit | (51,737) | (53,089) |
Total stockholders' equity | 6,531 | 5,175 |
Total liabilities and stockholders' equity | $ 9,718 | $ 8,105 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Allowance for doubtful accounts | $ 14 | $ 14 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 10,624,493 | 10,619,924 |
Common stock, shares outstanding | 10,624,493 | 10,619,924 |
Related Party [Member] | ||
Allowance for doubtful accounts | $ 159 | $ 159 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Revenues | $ 1,475,000 | $ 1,138,000 | $ 2,843,000 | $ 2,347,000 |
Cost and expenses | ||||
Production costs and taxes | 910,000 | 880,000 | 1,640,000 | 1,687,000 |
Depreciation, depletion, and amortization | 196,000 | 226,000 | 379,000 | 448,000 |
General and administrative | 272,000 | 258,000 | 608,000 | 592,000 |
Total cost and expenses | 1,378,000 | 1,364,000 | 2,627,000 | 2,727,000 |
Net income (loss) from operations | 97,000 | (226,000) | 216,000 | (380,000) |
Other income (expense) | ||||
Net expense | (1,000) | (4,000) | (3,000) | (20,000) |
Gain on sale of assets | 3,000 | 19,000 | ||
Total other income (expense) | 2,000 | (4,000) | 16,000 | (20,000) |
Net income (loss) from operations before income tax | 99,000 | (230,000) | 232,000 | (400,000) |
Deferred income tax benefit | ||||
Net income (loss) from continuing operations | 99,000 | (230,000) | 232,000 | (400,000) |
Net income from discontinued operations | 10,000 | 52,000 | 1,120,000 | 9,000 |
Net income (loss) | $ 109,000 | $ (178,000) | $ 1,352,000 | $ (391,000) |
Net income (loss) per share - basic and fully diluted | ||||
Continuing operations | $ 0.01 | $ (0.02) | $ 0.02 | $ (0.04) |
Discontinued operations | $ 0 | $ 0 | $ 0.11 | $ 0 |
Shares used in computing earnings per share | ||||
Basic and fully diluted | 10,624,493 | 10,608,792 | 10,624,468 | 9,536,420 |
Oil And Gas Proeprties Revenue [Member] | ||||
Revenues | ||||
Revenues | $ 1,475,000 | $ 1,138,000 | $ 2,843,000 | $ 2,347,000 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||
Net income (loss) from continuing operations | $ 232 | $ (400) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation, depletion, and amortization | 379 | 448 |
Amortization of loan fees-interest expense | 2 | 7 |
Accretion on asset retirement obligation | 71 | 71 |
(Gain) loss on assets sales | (19) | |
Stock based compensation | 4 | 7 |
Changes in assets and liabilities: | ||
Accounts receivable | (38) | 66 |
Inventory and other assets | (133) | 154 |
Accounts payable | (11) | (91) |
Accrued and other current liabilities | (3) | (97) |
Settlement on asset retirement obligation | (5) | (21) |
Net cash provided by operating activities - continuing operations | 479 | 144 |
Net cash provided by (used in) operating activities – discontinued operations | 67 | (123) |
Net cash provided by operating activities | 546 | 21 |
Investing activities | ||
Additions to oil and gas properties | (110) | (140) |
Prooceeds from sale of oil and gas properties | 6 | 6 |
Additions to other property & equipment | (26) | |
Proceeds from sale of other property and equipment | 8 | |
Net cash used in investing activities - continuing operations | (122) | (134) |
Net cash provided by investing activities - discontinued operations | 2,650 | |
Net cash provided by (used in) investing activities | 2,528 | (134) |
Financing activities | ||
Repayments of borrowings | (124) | (2,828) |
Proceeds from borrowings | 100 | 400 |
Proceeds from stock issuance in rights offering | 2,699 | |
Cost of stock issuance in rights offering | (102) | |
Net cash provided by (used in) financing activities - continuing operations | (24) | 169 |
Net cash provided by (used in) financing activities | (24) | 169 |
Net change in cash and cash equivalents | 3,050 | 56 |
Net change in cash and cash equivalents | 3,050 | 56 |
Cash and cash equivalents, beginning of period | 185 | 76 |
Cash and cash equivalents, end of period | 3,235 | 132 |
Supplemental cash flow information: | ||
Cash interest payments | 12 | |
Supplemental non-cash investing and financing activities: | ||
Financed company vehicles | 136 | 24 |
Cost of stock issuance in rights offering | (140) | |
Asset retirement obligations incurred | $ 1 | |
Capital expenditures included in accounts payable and accrued liabilities | $ 155 |
Description Of Business And Sig
Description Of Business And Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Description Of Business And Significant Accounting Policies [Abstract] | |
Description Of Business And Significant Accounting Policies | (1) D escription of Business and Significant Accounting Policies Tengasco, Inc. (the “Company”) is a Delaware corporation. The Company is in the business of exploration for and production of oil and natural gas. The Company’s primary area of exploration and production is in Kansas. The Company’s wholly-owned subsidiary, 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, except the applicable U.S. patent, on January 26, 2018 for $2.65 million. (See Note 11. Discontinued Operations) Basis of Presentation The accompanying unaudited condensed consolidated financial statements as of June 30 , 2018 and June 30 , 2017 have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Item 210 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet as of December 31, 2017 is derived from the audited financial statements, but does not include all disclosures required by U.S. GAAP. The Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation for the periods presented have been included as required by Regulation S-X, Rule 10-01. Operating results for the six months ended June 30 , 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018. It is suggested that these condensed consolidated financial statements be read in conjunction with the Company’s consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after elimination of all significant intercompany transactions and balances. Use of Estimates The accompanying condensed consolidated financial statements are prepared in conformity with U.S. GAAP which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the condensed consolidated financial statements are appropriate, actual results could differ from those estimates. Revenue Recognition Effective January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers . 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 passe d through sales meters located at the Carter Valley landfill site, at which time control of the electricity transfer red 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 this date. Revenues associated with the methane facility are included in Discontinued Operations. (See Note 1 1 . 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 three months and six months ended June 30 , 2018 and 2017 (in thousands): Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30 2018 June 30, 2017 Revenues (in thousands): Crude oil $1,468 $1,129 $2,825 $2,332 Salt water disposal fees 7 9 18 15 Total $1,475 $1,138 $2,843 $2,347 There were no natural gas imbalances at June 30 , 2018 or December 31, 2017. Cash and Cash Equivalents Cash and cash equivalents include temporary cash investments with a maturity of ninety days or less at date of purchase. Inventory Inventory consists of crude oil in tanks and is carried at lower of cost or market value. The cost component of the oil inventory is calculated using the average cost per barrel for the three months ended June 30 , 2018 and December 31, 2017. These costs includes production costs and taxes, allocated general and administrative costs, depletion, and allocated interest cost. The market value component is calculated using the average June 2018 and December 2017 oil sales prices received from the Company’s Kansas properties. In addition, the Company also carried equipment and materials to be used in its Kansas operation and is carried at the lower of cost or market value. The cost component of the equipment and materials inventory represents the original cost paid for the equipment and materials. The market component is based on estimated sales value for similar equipment and materials at the end of each period. At June 30 , 2018 and December 31, 2017, inventory consisted of the following (in thousands) : June 30, December 31, 2018 2017 Oil – carried at cost $ 497 $ 436 Equipment and materials – carried at market 105 105 Total inventory $ 602 $ 541 Full Cost Method of Accounting The Company follows the full cost method of accounting for oil and gas property acquisition, exploration, and development activities. Under this method, all costs incurred in connection with acquisition, exploration, and development of oil and gas reserves are capitalized. Capitalized costs include lease acquisitions, seismic related costs, certain internal exploration costs, drilling, completion, and estimated asset retirement costs. The capitalized costs of oil and gas properties, plus estimated future development costs relating to proved reserves and estimated asset retirement costs which are not already included net of estimated salvage value, are amortized on the unit-of-production method based on total proved reserves. The Company has determined its reserves based upon reserve reports provided by LaRoche Petroleum Consultants Ltd. since 2009. The costs of unproved properties are excluded from amortization until the properties are evaluated, subject to an annual assessment of whether impairment has occurred. The Company had $0 in unevaluated properties as of June 30 , 2018 and December 31, 2017. 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. Accounts Receivable Accounts receivable consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date, uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 days of sales of oil and gas production and within 60 days of sales of produced electricity, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied first to the earliest unpaid items. We review accounts receivable periodically and reduce the carrying amount by a valuation allowance that reflects our best estimate of the amount that may not be collectible. An allowance was recorded at June 30 , 2018 and December 31, 2017. The following table sets forth information concerning the Company’s accounts receivable (in thousands) : June 30, December 31, 2018 2017 Revenue $ 523 $ 479 Joint interest 20 23 Other 26 29 Allowance for doubtful accounts (14) (14) Total accounts receivable $ 555 $ 517 Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation with no effect on net income. |
Liquidity
Liquidity | 6 Months Ended |
Jun. 30, 2018 | |
Liquidity [Abstract] | |
Liquidity | (2) Liquidity The Company incurred a net loss of approximately $574,000 in 2017. In January 2018, the Company sold its methane facility for $2.65 million. During 2018, the Company believes its revenues as well as the proceeds received from the sale of the methane facility will be sufficient to fund operating and general and administrative expenses and to remain in compliance with its bank covenants. If revenues and the proceeds from the sale of the methane facility are not sufficient to fund these expenses or if the Company needs additional funds for capital spending, the Company could borrow funds against the credit facility as this facility currently has a $2.0 million borrowing base with no funds currently drawn. In addition, if required, the Company could also issue additional shares of stock and/or sell assets as needed to further fund operations. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | ( 3 ) Income Taxes Income taxes are reported in accordance with U.S. GAAP, which requires the establishment of deferred tax accounts for all temporary differences between the financial reporting and tax bases of assets and liabilities, using currently enacted federal and state income tax rates. In addition, deferred tax accounts must be adjusted to reflect new rates if enacted into law . The deferred income tax assets or liabilities for an oil and gas exploration and development company are dependent on many variables such as estimates of the economic lives of depleting oil and gas reserves and commodity prices. Accordingly, the asset or liability is subject to continuous recalculation, and revision of the numerous estimates required, and may change significantly in the event of occurrences such as major acquisitions, divestitures, commodity price changes, changes in reserve estimates, changes in reserve lives, and changes in tax rates or tax laws. At December 31, 2017, federal net operating loss carryforwards amounted to approximately $30.2 million which expire between 2019 and 2036 . The net total deferred tax asset was $242,000 at June 30, 2018 and December 31, 2017. In 2017, The Company released a portion of the allowance related to the Company’s Minimum Tax Credit (“MTC”) as a result of the 2017 Tax Act. The Company recorded an allowance on the remaining deferred tax asset at June 30, 2018 and December 31, 2017 primarily due to cumulative losses incurred during the 3 years ended December 31, 2017. The Company expects to utilize its net operating losses and reduce its valuation allowance to offset taxable income resulting from the sale of the methane facility assets. There were no recorded unrecognized tax benefits at June 30, 2018. |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2018 | |
Capital Stock [Abstract] | |
Capital Stock | (4) Capital Stock Common Stock There were no common shares issued during the three months ended June 30, 2018. Rights Agreement Effective March 17, 2017 the Board of Directors declared a dividend of one right (a “ Right ”) for each of the Company’s issued and outstanding shares of common stock, $0.001 par value per share (“ Common Stock ”). The dividend was paid to the stockholders of record at the close of business on March 27, 2017 (the “ Record Date ”). Each Right entitles the registered holder, subject to the terms of the Rights Agreement dated as of March 16, 2017 (the “ Rights Agreement ”) between the Company and the Rights Agent, Continental Stock Transfer & Trust Company, to purchase from the Company one one-thousandth of a share of the Company’s Series A Preferred Stock at a price of $1.10 (the “ Exercise Price ”), subject to certain adjustments. The purpose of the Rights Agreement is to reduce the risk that the Company’s ability to use its net operating losses to reduce potential future federal income tax obligations would be limited by reason of the Company’s experiencing 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 will expire prior to the earlier of March 16, 2020; or a date the Board of Directors determines by resolution in its business judgment that the Agreement is no longer necessary or appropriate; or in certain other specified circumstances. At any time after any person or group of affiliated or associated persons becomes an Acquiring Person, the Board, at its option, may exchange each Right (other than Rights owned by such person or group of affiliated or associated persons which will have become void), in whole or in part, at an exchange ratio of two shares of Common Stock per outstanding Right (subject to adjustment). For further information on the Rights Agreement, please refer to the Rights Agreement that was attached in full as an exhibit to the Company’s Form 8-K filed with SEC on March 17, 2017. Preferred Stock Series A Preferred Stock has a par value of $0.0 0 01 and 10,000 shares have been designated. No shares of Series A Preferred Stock have been issued by the Company pursuant to the Rights Agreement described above or otherwise. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | ( 5 ) Earnings per Common Share We report basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share which include the effect of all potentially dilutive securities unless their impact is anti-dilutive. The following are reconciliations of the numerators and denominators of our basic and diluted earnings per share, (in thousands except for share and per share amounts): For the Three Months Ended For the Six Months Ended June 30, June 30, 2018 2017 2018 2017 Income (numerator): Net income (loss) from continuing operations $ 99 $ (230) $ 232 $ (400) Net income from discontinued operations $ 10 $ 52 $ 1,120 $ 9 Weighted average shares (denominator): Weighted average shares – basic 10,624,493 10,608,792 10,624,468 9,536,420 Dilution effect of share-based compensation, treasury method — — — — Weighted average shares – dilutive 10,624,493 10,608,792 10,624,468 9,536,420 Income (loss) per share – Basic and Dilutive: Continuing operations $ 0.01 $ (0.02) $ 0.02 $ (0.04) Discontinued operations $ 0.00 $ 0.00 $ 0.11 $ 0.00 Options issued to the Company’s directors in which the exercise price was higher than the average market price each quarter were excluded from diluted shares. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | ( 6 ) Recent Accounting Pronouncements In February 2016, the FASB issued Update 2016-02 Leases (Topic 842). This guidance was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements . This guidance is e ffective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in this Update is permitted for all entities. To date, the Company has identified each of its leases and is in the process of determining the impact of this new guidance on each of the identified leases. The Company does not expect this to impact its operating results or cash flows, however, the Company does expect to carry a portion of future lease costs as an asset and a liability on its balance sheet . |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (7) Related Party Transactions On September 17, 2007, Hoactzin Partners, L.P. (“Hoactzin”) subscribed to a drilling program offered by the Company consisting of wells to be drilled on the Company’s Kansas Properties (the “Program”). Peter E. Salas, the Chairman of the Board of Directors of the Company, is the controlling person of Hoactzin and of Dolphin Offshore Partners, L.P., the Company’s largest shareholder. On December 18, 2007, the Company entered into a Management Agreement with Hoactzin to manage on behalf of Hoactzin all of its working interest in certain oil and gas properties owned by Hoactzin and located in the onshore Texas Gulf Coast, and offshore Texas and offshore Louisiana. As part of the consideration for the Company’s agreement to enter into the Management Agreement, Hoactzin granted to the Company an option to participate in up to a 15% working interest on a dollar for dollar cost basis in any new drilling or workover activities undertaken on Hoactzin’s managed properties during the term of the Management Agreement. The Management Agreement expired on December 18, 2012. The Company entered into a transition agreement with Hoactzin whereby the Company no longer performs operations, but administratively assists Hoactzin in becoming operator of record of these wells and transferring all bonds from the Company to Hoactzin. This assistance is primarily related to signing the necessary documents to effectuate this transition. Hoactzin and its controlling member are indemnifying the Company for any costs or liabilities incurred by the Company resulting from such assistance, or the fact that the Company is the listed operator of record on an expired lease owned by Hoactzin where a production platform remains located. The Company performs no operations on any property in the Gulf including that expired lease and platform, but regulations do not allow removal of the last listed operator on any expired lease. As of the date of this Report, the Company continues to administratively assist Hoactzin with this transition process. As operator during the term of the Management Agreement that expired in 2012, the Company routinely contracted in its name for goods and services with vendors in connection with its operation of the Hoactzin properties. In practice, Hoactzin directly paid these invoices for goods and services that were contracted in the Company’s name. As a result of the operations performed in late 2009 and early 2010, Hoactzin had significant past due balances to several vendors, a portion of which were included on the Company’s balance sheet. Payables related to these past due and ongoing operations remained outstanding at June 30, 2018 and December 31, 2017 in the amount of $159,000 . The Company has recorded the Hoactzin-related payables and the corresponding receivable from Hoactzin as of June 30, 2018 and December 31, 2017 in its Consolidated Balance Sheets under “Accounts payable – other” and “Accounts receivable – related party”. The outstanding balance of $159,000 should not increase in the future. However, Hoactzin has not made payments to reduce the $159,000 of past due balances from 2009 and 2010 since the second quarter of 2012. Based on these circumstances, the Company has elected to record an allowance in the amount of $159,000 for the balances outstanding at June 30, 2018 and December 31, 2017. This allowance was recorded in the Company’s Consolidated Balance Sheets under “Accounts receivable – related party”. The resulting balances recorded in the Company’s Consolidated Balance Sheets under “Accounts receivable – related party, less allowance for doubtful accounts of $159” are $0 at June 30, 2018 and December 31, 2017 . |
Oil And Gas Properties
Oil And Gas Properties | 6 Months Ended |
Jun. 30, 2018 | |
Oil And Gas Properties [Abstract] | |
Oil And Gas Properties | ( 8 ) Oil and Gas Properties The following table sets forth information concerning the Company’s oil and gas properties (in thousands) : June 30, December 31, 2018 2017 Oil and gas properties $ 5,957 $ 5,704 Unevaluated properties — — Accumulated depreciation, depletion and amortization (1,340) (984) Oil and gas properties, net $ 4,617 $ 4,720 The Company recorded depletion expense of $348,000 and $414,000 for the six months ended June 30, 2018 and 2017 , respectively. During the six months ended June 30, 2018 and 2017, the Company also recorded in “Accumulated depreciation, depletion, and amortization” a $8,000 gain on asset retirement obligations and a $2,000 gain on asset retirement obligations, respectively . |
Asset Retirement Obligation
Asset Retirement Obligation | 6 Months Ended |
Jun. 30, 2018 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligation | ( 9 ) 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 six months ended June 30, 2018 (in thousands) : Balance December 31, 2017 $ 2,270 Accretion expense 71 Liabilities incurred — Liabilities settled (13) Balance June 30, 2018 $ 2,328 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | ( 10 ) Long-Term Debt Long-term debt to unrelated entities consisted of the following (in thousands) : June 30, December 31, 2018 2017 Note payable to a financial institution, with interest only payment until maturity. $ — $ — Installment notes bearing interest at the rate of 4.16% to 4.60% per annum collateralized by vehicles with monthly payments including interest, insurance and maintenance of approximately $10 169 90 Total long-term debt 169 90 Less current maturities (61) (41) Long-term debt, less current maturities $ 108 $ 49 At June 30, 2018, the Company had a revolving credit facility with Prosperity Bank. This 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 are available to the Company on a revolving basis in an amount outstanding not to exceed the lesser of $50 million or the Company’s borrowing base in effect from time to time. As of June 30, 2018, the Company’s borrowing base was $2 million. The credit facility is secured by substantially all of the Company’s producing and non-producing oil and gas properties. The credit facility includes certain covenants with which the Company is required to comply. At June 30, 2018, these covenants include the following: (a) Current Ratio > 1 :1; (b) Funded Debt to EBITDA < 3.5 x; and (c) Interest Coverage > 3.0 x. At June 30, 2018, the interest rate on this credit facility was 5.50% . The Company was in compliance with all covenants during the quarter ended June 30, 2018. On March 21, 2018, the Company’s senior credit facility with Prosperity Bank after Prosperity Bank’s most recent review of the Company’s currently owned producing properties was amended to increase the borrowing base to $2 million and the maturity date was extended to July 31, 2020 . The borrowing base remains subject to the existing periodic redetermination provisions in the credit facility. The interest rate remained prime plus 0.50% per annum. This rate was 5.00% at the date of the amendment. The maximum line of credit of the Company under the Prosperity Bank credit facility remained $50 million and the Company had no outstanding borrowing under the facility as of June 30, 2018. The next borrowing base review will take place in August 2018 . |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | (11) Discontinued Operations The following table sets forth information concerning the Discontinued Operations (in thousands): June 30, December 31, 2018 2017 Accounts receivable $ — $ 91 Other current assets — 30 Discontinued operations included in current assets $ — $ 121 Property, plant, and equipment $ — $ 1,681 Accumulated depreciation, depletion, and amortization — (184) Discontinued operations included in non-current assets $ — $ 1,497 Accounts payable - trade $ — $ 27 Accrued and other current liabilities 22 16 Discontinued operations included in current liabilities $ 22 $ 43 For the Three Months Ended For the Six Months Ended June 30, June 30, 2018 2017 2018 2017 Revenues $ — $ 180 $ 6 $ 315 Production costs and taxes 10 (112) (40) (275) Depreciation, depletion, and amortization — (16) (4) (31) Interest income — — 1 — Gain on sale of assets — — 1,157 — Deferred income tax benefit — — — — Net income (loss) from discontinued operations $ 10 $ 52 $ 1,120 $ 9 The Discontinued Operations are related to the Manufactured Methane facilities. The Company sold all its methane facility assets, except the applicable U.S. patent, on January 26, 2018 for $2.65 million . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (1 2 ) Fair Value Measurements FASB ASC 820, “Fair Value Measurements and Disclosures”, establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows: Level 1 – Observable inputs, such as unadjusted quoted prices in active markets, for substantially identical assets and liabilities. Level 2 – Observable inputs other than quoted prices within Level 1 for similar assets and liabilities. These include quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. If the asset or liability has a specified or contractual term, the input must be observable for substantially the full term of the asset or liability. Level 3 – Unobservable inputs that are supported by little or no market activity, generally requiring a significant amount of judgment by management. The assets or liabilities fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Further, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Upon completion of wells, the Company records an asset retirement obligation at fair value using Level 3 assumptions. Nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis upon impairment. The carrying amounts of other financial instruments including cash and cash equivalents, accounts receivable, account payables, accrued liabilities and long term debt in our balance sheet approximates fair value as of March 31, 2018 and December 31, 201 7 . |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | (13) Commitments and Contingencies The Company as designated operator of the Hoactzin properties was administratively issued an “Incident of Non-Compliance” by the Bureau of Safety and Environmental Enforcement (“BSEE”) during the quarter ended September 30, 2012 concerning one of Hoactzin’s operated properties. This action called for payment of a civil penalty of $386,000 for failure to provide, upon request, documentation to the BSEE evidencing that certain safety inspections and tests had been conducted in 2011. On July 14, 2015, the federal district court in the Eastern District of Louisiana affirmed the civil penalty without reduction. The Company did not further appeal. In the third quarter of 2015, the Company paid the civil penalty and statutory interest thereon from funds borrowed under its credit facility. In the fourth quarter of 2015, the Company received a return of the cash collateral previously provided to RLI Insurance Company. The Company has not advanced any funds to pay any obligations of Hoactzin and no borrowing capability of the Company has been used in connection with its obligations under the Management Agreement, except for those funds used to pay the civil penalty and interest thereon. During the second quarter of 2015, the Company received from Hoactzin a copy of an internal analysis prepared by Hoactzin setting out certain issues that Hoactzin may consider to form the basis of operational and other claims against the Company primarily under the Management Agreement. This analysis raised issues other than the “Incident of Non-Compliance” discussed above. The Company is discussing this analysis, as well as the civil penalty discussed above, with Hoactzin in an effort to determine whether there is possibility of a reasonable resolution of some or all of these matters on a negotiated basis. In the normal course of business, the Company enters into commitments to spend capital on oil and gas properties. Since June 30, 2018, the Company has entered into a drilling commitment in the amount of approximately $280,000 . The work associated with this commitment is anticipated to start in August 2018. Cost Reduction Measures Commencing in the quarter ended March 31, 2015 and continuing through the quarter ended March 31, 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 June 30, 2018, the reductions were approximately $451,000 . The Company has not accrued any liabilities associated with these compensation reductions. Legal Proceedings The Company is not a party to any pending material legal proceeding. To the knowledge of management, no federal, state, or local governmental agency is presently contemplating any proceeding against the Company which would have a result materially adverse to the Company. To the knowledge of management, no director, executive officer or affiliate of the Company or owner of record or beneficially of more than 5% of the Company’s common stock is a party adverse to the Company or has a material interest adverse to the Company in any proceeding . |
Description Of Business And S19
Description Of Business And Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2018 | |
Description Of Business And Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements as of June 30 , 2018 and June 30 , 2017 have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Item 210 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet as of December 31, 2017 is derived from the audited financial statements, but does not include all disclosures required by U.S. GAAP. The Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation for the periods presented have been included as required by Regulation S-X, Rule 10-01. Operating results for the six months ended June 30 , 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018. It is suggested that these condensed consolidated financial statements be read in conjunction with the Company’s consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. |
Principles Of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after elimination of all significant intercompany transactions and balances. |
Use Of Estimates | Use of Estimates The accompanying condensed consolidated financial statements are prepared in conformity with U.S. GAAP which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the condensed consolidated financial statements are appropriate, actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers . 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 passe d through sales meters located at the Carter Valley landfill site, at which time control of the electricity transfer red 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 this date. Revenues associated with the methane facility are included in Discontinued Operations. (See Note 1 1 . 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 three months and six months ended June 30 , 2018 and 2017 (in thousands): Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30 2018 June 30, 2017 Revenues (in thousands): Crude oil $1,468 $1,129 $2,825 $2,332 Salt water disposal fees 7 9 18 15 Total $1,475 $1,138 $2,843 $2,347 There were no natural gas imbalances at June 30 , 2018 or December 31, 2017. |
Cash And Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include temporary cash investments with a maturity of ninety days or less at date of purchase. |
Inventory | Inventory Inventory consists of crude oil in tanks and is carried at lower of cost or market value. The cost component of the oil inventory is calculated using the average cost per barrel for the three months ended June 30 , 2018 and December 31, 2017. These costs includes production costs and taxes, allocated general and administrative costs, depletion, and allocated interest cost. The market value component is calculated using the average June 2018 and December 2017 oil sales prices received from the Company’s Kansas properties. In addition, the Company also carried equipment and materials to be used in its Kansas operation and is carried at the lower of cost or market value. The cost component of the equipment and materials inventory represents the original cost paid for the equipment and materials. The market component is based on estimated sales value for similar equipment and materials at the end of each period. At June 30 , 2018 and December 31, 2017, inventory consisted of the following (in thousands) : June 30, December 31, 2018 2017 Oil – carried at cost $ 497 $ 436 Equipment and materials – carried at market 105 105 Total inventory $ 602 $ 541 |
Full Cost Method Of Accounting | Full Cost Method of Accounting The Company follows the full cost method of accounting for oil and gas property acquisition, exploration, and development activities. Under this method, all costs incurred in connection with acquisition, exploration, and development of oil and gas reserves are capitalized. Capitalized costs include lease acquisitions, seismic related costs, certain internal exploration costs, drilling, completion, and estimated asset retirement costs. The capitalized costs of oil and gas properties, plus estimated future development costs relating to proved reserves and estimated asset retirement costs which are not already included net of estimated salvage value, are amortized on the unit-of-production method based on total proved reserves. The Company has determined its reserves based upon reserve reports provided by LaRoche Petroleum Consultants Ltd. since 2009. The costs of unproved properties are excluded from amortization until the properties are evaluated, subject to an annual assessment of whether impairment has occurred. The Company had $0 in unevaluated properties as of June 30 , 2018 and December 31, 2017. 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. |
Accounts Receivable | Accounts Receivable Accounts receivable consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date, uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 days of sales of oil and gas production and within 60 days of sales of produced electricity, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied first to the earliest unpaid items. We review accounts receivable periodically and reduce the carrying amount by a valuation allowance that reflects our best estimate of the amount that may not be collectible. An allowance was recorded at June 30 , 2018 and December 31, 2017. The following table sets forth information concerning the Company’s accounts receivable (in thousands) : June 30, December 31, 2018 2017 Revenue $ 523 $ 479 Joint interest 20 23 Other 26 29 Allowance for doubtful accounts (14) (14) Total accounts receivable $ 555 $ 517 |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation with no effect on net income. |
Description Of Business And S20
Description Of Business And Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Description Of Business And Significant Accounting Policies [Abstract] | |
Disaggregation Of Revenue | Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30 2018 June 30, 2017 Revenues (in thousands): Crude oil $1,468 $1,129 $2,825 $2,332 Salt water disposal fees 7 9 18 15 Total $1,475 $1,138 $2,843 $2,347 |
Inventory | June 30, December 31, 2018 2017 Oil – carried at cost $ 497 $ 436 Equipment and materials – carried at market 105 105 Total inventory $ 602 $ 541 |
Accounts Receivable | June 30, December 31, 2018 2017 Revenue $ 523 $ 479 Joint interest 20 23 Other 26 29 Allowance for doubtful accounts (14) (14) Total accounts receivable $ 555 $ 517 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Common Share [Abstract] | |
Reconciliations Of The Numerators And Denominators On Basic And Diluted Earnings Per Share | For the Three Months Ended For the Six Months Ended June 30, June 30, 2018 2017 2018 2017 Income (numerator): Net income (loss) from continuing operations $ 99 $ (230) $ 232 $ (400) Net income from discontinued operations $ 10 $ 52 $ 1,120 $ 9 Weighted average shares (denominator): Weighted average shares – basic 10,624,493 10,608,792 10,624,468 9,536,420 Dilution effect of share-based compensation, treasury method — — — — Weighted average shares – dilutive 10,624,493 10,608,792 10,624,468 9,536,420 Income (loss) per share – Basic and Dilutive: Continuing operations $ 0.01 $ (0.02) $ 0.02 $ (0.04) Discontinued operations $ 0.00 $ 0.00 $ 0.11 $ 0.00 |
Oil And Gas Properties (Tables)
Oil And Gas Properties (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Oil And Gas Properties [Abstract] | |
Schedule Of Oil And Gas Properties | June 30, December 31, 2018 2017 Oil and gas properties $ 5,957 $ 5,704 Unevaluated properties — — Accumulated depreciation, depletion and amortization (1,340) (984) Oil and gas properties, net $ 4,617 $ 4,720 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligation Transactions | Balance December 31, 2017 $ 2,270 Accretion expense 71 Liabilities incurred — Liabilities settled (13) Balance June 30, 2018 $ 2,328 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Long-Term Debt [Abstract] | |
Schedule Of Long-term Debt To Unrelated Entites | June 30, December 31, 2018 2017 Note payable to a financial institution, with interest only payment until maturity. $ — $ — Installment notes bearing interest at the rate of 4.16% to 4.60% per annum collateralized by vehicles with monthly payments including interest, insurance and maintenance of approximately $10 169 90 Total long-term debt 169 90 Less current maturities (61) (41) Long-term debt, less current maturities $ 108 $ 49 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations [Abstract] | |
Schedule Of The Amounts In Net Loss From Discontinued Operations | June 30, December 31, 2018 2017 Accounts receivable $ — $ 91 Other current assets — 30 Discontinued operations included in current assets $ — $ 121 Property, plant, and equipment $ — $ 1,681 Accumulated depreciation, depletion, and amortization — (184) Discontinued operations included in non-current assets $ — $ 1,497 Accounts payable - trade $ — $ 27 Accrued and other current liabilities 22 16 Discontinued operations included in current liabilities $ 22 $ 43 For the Three Months Ended For the Six Months Ended June 30, June 30, 2018 2017 2018 2017 Revenues $ — $ 180 $ 6 $ 315 Production costs and taxes 10 (112) (40) (275) Depreciation, depletion, and amortization — (16) (4) (31) Interest income — — 1 — Gain on sale of assets — — 1,157 — Deferred income tax benefit — — — — Net income (loss) from discontinued operations $ 10 $ 52 $ 1,120 $ 9 |
Description Of Business And S26
Description Of Business And Significant Accounting Policies (Narrative) (Details) - USD ($) | Jan. 26, 2018 | Jan. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Description Of Business And Significant Accounting Policies [Abstract] | ||||
Material natural gas imbalances | $ 0 | $ 0 | ||
Unevaluated properties | $ 0 | $ 0 | ||
Sale of methane facility assets | $ 2,650,000 | $ 2,650,000 |
Description Of Business And S27
Description Of Business And Significant Accounting Policies (Disaggregation Of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,475 | $ 1,138 | $ 2,843 | $ 2,347 |
Crude Oil [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,468 | 1,129 | 2,825 | 2,332 |
Salt Water Disposal Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 7 | $ 9 | $ 18 | $ 15 |
Description Of Business And S28
Description Of Business And Significant Accounting Policies (Inventory) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Description Of Business And Significant Accounting Policies [Abstract] | ||
Oil - carried at cost | $ 497 | $ 436 |
Equipment and materials – carried at market | 105 | 105 |
Total inventory | $ 602 | $ 541 |
Description Of Business And S29
Description Of Business And Significant Accounting Policies (Accounts Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (14) | $ (14) |
Total accounts receivable | 555 | 517 |
Revenue [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 523 | 479 |
Joint Interest [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 20 | 23 |
Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 26 | $ 29 |
Liquidity (Narrative) (Details)
Liquidity (Narrative) (Details) - USD ($) | Jan. 26, 2018 | Jan. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Liquidity [Line Items] | |||||||
Net loss from operations | $ 109,000 | $ (178,000) | $ 1,352,000 | $ (391,000) | $ (574,000) | ||
Sale of methane facility assets | $ 2,650,000 | $ 2,650,000 | |||||
Prosperity Bank [Member] | |||||||
Liquidity [Line Items] | |||||||
Credit facility current borrowing capacity | 2,000,000 | 2,000,000 | |||||
Current funds drawn | $ 0 | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||||
Provision or benefit for income taxes | |||||
Unrecognized tax benefits | 0 | 0 | |||
Federal net operating loss carryforwards | $ 30,200,000 | ||||
Deferred tax asset | $ 242,000 | $ 242,000 | $ 242,000 | ||
Minimum [Member] | |||||
Income Taxes [Line Items] | |||||
Federal net operating loss carryforwards expiration between, years | Dec. 31, 2019 | ||||
Maximum [Member] | |||||
Income Taxes [Line Items] | |||||
Federal net operating loss carryforwards expiration between, years | Dec. 31, 2036 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) | Mar. 17, 2017$ / shares | Jun. 30, 2018$ / sharesshares | Jun. 30, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares | Mar. 16, 2017$ / shares |
Capital Stock [Line Items] | |||||
Common stock, New shares issued | 0 | ||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 | ||
Dividends conversion ratio | 0.001 | ||||
Exercise price | $ / shares | $ 1.10 | ||||
Rights Plan [Member] | |||||
Capital Stock [Line Items] | |||||
Number of preferred share purchase right for each outstanding share of its common stock to shareholder | $ / shares | $ 1 | ||||
Common stock, Threshold for exercise of rights percentage | 4.95% | ||||
Rights [Member] | |||||
Capital Stock [Line Items] | |||||
Date declared | Mar. 17, 2017 | ||||
Date to be paid | Mar. 27, 2017 | ||||
Date of record | Mar. 16, 2017 | ||||
Series A Preferred Stock [Member] | |||||
Capital Stock [Line Items] | |||||
Preferred stock, shares authorized | 10,000 | 10,000 | 10,000 | ||
Preferred stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Preferred stock, shares issued | 0 | 0 | 0 | ||
Series A Preferred Stock [Member] | Rights Plan [Member] | |||||
Capital Stock [Line Items] | |||||
Preferred stock, shares issued | 0 | 0 |
Earnings Per Common Share (Reco
Earnings Per Common Share (Reconciliations Of The Numerators And Denominators Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Common Share [Abstract] | ||||
Net income (loss) from continuing operations | $ 99 | $ (230) | $ 232 | $ (400) |
Net income (loss) from discontinued operations | $ 10 | $ 52 | $ 1,120 | $ 9 |
Weighted average shares - basic | 10,624,493 | 10,608,792 | 10,624,468 | 9,536,420 |
Dilution effect of share-based compensation, treasury method | ||||
Weighted average shares – dilutive | 10,624,493 | 10,608,792 | 10,624,468 | 9,536,420 |
Continuing operations | $ 0.01 | $ (0.02) | $ 0.02 | $ (0.04) |
Discontinued operations | $ 0 | $ 0 | $ 0.11 | $ 0 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | Dec. 18, 2007 | Jun. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | |||
Working interest percent | 15.00% | ||
Related party allowance for doubtful accounts receivable | $ 14,000 | $ 14,000 | |
Accounts receivable - related parties balance | |||
Hoactzin Partners, L.P. [Member] | |||
Related Party Transaction [Line Items] | |||
Related parties accounts payable | 159,000 | 159,000 | |
Past due related parties accounts payable | 159,000 | ||
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Related party allowance for doubtful accounts receivable | 159,000 | 159,000 | |
Related Party [Member] | Hoactzin Partners, L.P. [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts receivable-related party, allowance for doubtful accounts | 159,000 | 159,000 | |
Accounts receivable - related parties balance | $ 159,000 | $ 0 |
Oil And Gas Properties (Narrati
Oil And Gas Properties (Narrative) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Oil And Gas Properties [Abstract] | ||
Depletion expense | $ 348,000 | $ 414,000 |
Gain on asset retirement obligations | $ 8,000 | $ 2,000 |
Oil And Gas Properties (Schedul
Oil And Gas Properties (Schedule Of Oil And Gas Properties) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Oil And Gas Properties [Abstract] | ||
Oil and gas properties | $ 5,957 | $ 5,704 |
Accumulated depreciation, depletion, and amortization | (1,340) | (984) |
Oil and gas properties, net | $ 4,617 | $ 4,720 |
Asset Retirement Obligation (As
Asset Retirement Obligation (Asset Retirement Obligation Transactions) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Asset Retirement Obligation [Abstract] | ||
Balance | $ 2,270 | |
Accretion expense | 71 | $ 71 |
Liabilities incurred | ||
Liabilities settled | (13) | |
Balance | $ 2,328 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - Prosperity Bank [Member] | Mar. 21, 2018USD ($) | Jun. 30, 2018USD ($) |
Debt Instrument [Line Items] | ||
Credit facility maturity date | Jul. 31, 2020 | |
Rate above prime | 0.50% | |
Interest rate | 5.00% | 5.50% |
Credit facility maximum borrowing capacity | $ 2,000,000 | $ 50,000,000 |
Credit facility current borrowing capacity | 2,000,000 | |
Credit facility amount outstanding | 0 | |
Loans And Letters Of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility maximum borrowing capacity | $ 50,000,000 | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Funded debt to EBITDA | 3.5 | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Current ratio | 1 | |
Interest coverage | 3 |
Long-Term Debt (Schedule Of Lon
Long-Term Debt (Schedule Of Long-Term Debt To Unrelated Entities) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Installment notes bearing interest at the rate of 4.16% to 4.60% per annum collateralized by vehicles with monthly payments including interest, insurance and maintenance of approximately $10 | $ 169 | $ 90 |
Total long-term debt | 169 | 90 |
Less current maturities | (61) | (41) |
Long-term debt, less current maturities | 108 | $ 49 |
Periodic payments including interest, insurance and maintenance | $ 10 | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate per annum | 4.60% | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate per annum | 4.16% |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of The Amounts In Net Loss From Discontinued Operations) (Details) - USD ($) $ in Thousands | Jan. 26, 2018 | Jan. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued operations included in current assets | $ 121 | ||||||
Discontinued operations included in non-current assets | 1,497 | ||||||
Discontinued operations included in current liabilities | $ 22 | $ 22 | 43 | ||||
Net income (loss) from discontinued operations | 10 | $ 52 | 1,120 | $ 9 | |||
Sale of methane facility assets | $ 2,650 | $ 2,650 | |||||
Disposal Group, Not Discontinued Operations [Member] | Methane Facilities [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Accounts receivable | 91 | ||||||
Other current assets | 30 | ||||||
Discontinued operations included in current assets | 121 | ||||||
Property, plant, and equipment | 1,681 | ||||||
Accumulated depreciation, depletion, and amortization | (184) | ||||||
Discontinued operations included in non-current assets | 1,497 | ||||||
Accounts payable - trade | 27 | ||||||
Accrued and other current liabilities | 22 | 22 | 16 | ||||
Discontinued operations included in current liabilities | 22 | 22 | $ 43 | ||||
Revenues | 180 | 6 | 315 | ||||
Production costs and taxes | 10 | (112) | (40) | (275) | |||
Depreciation, depletion, and amortization | (16) | (4) | (31) | ||||
Interest income | 1 | ||||||
Gain on sale of assets | 1,157 | ||||||
Net income (loss) from discontinued operations | $ 10 | $ 52 | $ 1,120 | $ 9 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) | 6 Months Ended | 42 Months Ended | |
Jun. 30, 2018USD ($)$ / bbl | Jun. 30, 2018USD ($) | Sep. 30, 2012USD ($) | |
Loss Contingencies [Line Items] | |||
Decrease in compensation | $ 451,000 | ||
Period of trailing average of WTI | 30 days | ||
Drilling commitment | $ 280,000 | $ 280,000 | |
Incidence Of Non-Compliance [Member] | |||
Loss Contingencies [Line Items] | |||
Maximum potential loss | $ 386,000 | ||
Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Compensation reduction until WTI posting | $ / bbl | 70 | ||
Compensation reimbursement at WTI posting | $ / bbl | 85 |