Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 25, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | TENGASCO INC | ||
Entity Central Index Key | 0001001614 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 3.9 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 10,644,252 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current | ||
Cash and cash equivalents | $ 3,115,000 | $ 185,000 |
Accounts receivable, less allowance for doubtful accounts of $0 and $14 | 533,000 | 517,000 |
Accounts receivable - related party, less allowance for doubtful accounts of $0 and $159 | ||
Inventory | 464,000 | 541,000 |
Prepaid expenses | 235,000 | 130,000 |
Discontinued operations included in current assets | 121,000 | |
Total current assets | 4,347,000 | 1,494,000 |
Loan fees, net | 9,000 | 13,000 |
Oil and gas properties, net (full cost accounting method) | 4,804,000 | 4,720,000 |
Other property and equipment, net | 190,000 | 135,000 |
Accounts receivable - noncurrent | 130,000 | 242,000 |
Other noncurrent assets | 4,000 | 4,000 |
Discontinued operations included in non-current assets | 1,497,000 | |
Total assets | 9,484,000 | 8,105,000 |
Current liabilities | ||
Accounts payable - trade | 132,000 | 181,000 |
Accounts payable - other | 159,000 | |
Accrued liabilities | 282,000 | 187,000 |
Current maturities of long-term debt | 51,000 | 41,000 |
Asset retirement obligation - current | 83,000 | |
Discontinued operations included in current liabilities | 43,000 | |
Total current liabilities | 548,000 | 611,000 |
Asset retirement obligation - non current | 2,096,000 | 2,270,000 |
Long term debt, less current maturities | 73,000 | 49,000 |
Total liabilities | 2,717,000 | 2,930,000 |
Commitments and contingencies (Note 9) | ||
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, 10,639,290 and 10,619,924 shares issued and outstanding | 11,000 | 11,000 |
Additional paid-in capital | 58,276,000 | 58,253,000 |
Accumulated deficit | (51,520,000) | (53,089,000) |
Total stockholders' equity | 6,767,000 | 5,175,000 |
Total liabilities and stockholders' equity | $ 9,484,000 | $ 8,105,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for doubtful accounts | $ 0 | $ 14 |
Accounts receivable-related party, allowance for doubtful accounts | $ 0 | $ 159 |
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 | 10,639,290 | 10,619,924 |
Common stock, shares outstanding | 10,639,290 | 10,619,924 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | ||
Revenues | $ 5,871,000 | $ 4,683,000 |
Cost and expenses | ||
Production costs and taxes | 3,591,000 | 3,444,000 |
Depreciation, depletion, and amortization | 795,000 | 862,000 |
General and administrative | 1,245,000 | 1,171,000 |
Total cost and expenses | 5,631,000 | 5,477,000 |
Net income (loss) from operations | 240,000 | (794,000) |
Other income (expense) | ||
Net interest expense | (5,000) | (53,000) |
Gain on sale of assets | 33,000 | 2,000 |
Other income | 157,000 | |
Total other income (expense) | 185,000 | (51,000) |
Income (loss) from operations before income tax | 425,000 | (845,000) |
Deferred income tax benefit | 17,000 | 242,000 |
Net income (loss) from continuing operations | 442,000 | (603,000) |
Net income from discontinued operations | 1,127,000 | 29,000 |
Net income (loss) | $ 1,569,000 | $ (574,000) |
Net income (loss) per share - basic and fully diluted | ||
Continuing operations | $ 0.04 | $ (0.06) |
Discontinued operations | $ 0.11 | |
Shares used in computing earnings per share | ||
Basic and fully diluted | 10,628,170 | 10,081,218 |
Oil And Gas Proeprties [Member] | ||
Revenues | ||
Revenues | $ 5,871,000 | $ 4,683,000 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) | Common Stock [Member] | Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance, value at Dec. 31, 2016 | $ 6,000 | $ 55,787,000 | $ (52,515,000) | $ 3,278,000 |
Balance, shares at Dec. 31, 2016 | 6,097,723 | |||
Net income (loss) | (574,000) | (574,000) | ||
Compensation expense related to options issued | 14,000 | 14,000 | ||
Compensation expense related to stock issued, shares | 23,503 | |||
Shares issued for rights offering | $ 5,000 | 2,452,000 | $ 2,457,000 | |
Shares issued for rights offering, shares | 4,498,698 | |||
Balance, shares at Dec. 31, 2017 | 10,619,924 | 10,619,924 | ||
Balance, value at Dec. 31, 2017 | $ 11,000 | 58,253,000 | (53,089,000) | $ 5,175,000 |
Net income (loss) | 1,569,000 | 1,569,000 | ||
Compensation expense related to stock issued | 23,000 | $ 23,000 | ||
Compensation expense related to stock issued, shares | 19,366 | |||
Balance, shares at Dec. 31, 2018 | 10,639,290 | 10,639,290 | ||
Balance, value at Dec. 31, 2018 | $ 11,000 | $ 58,276,000 | $ (51,520,000) | $ 6,767,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | ||
Net income (loss) from continuing operations | $ 442,000 | $ (603,000) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||
Depreciation, depletion, and amortization | 795,000 | 862,000 |
Amortization of loan fees-interest expenses | 4,000 | 20,000 |
Accretion of discount on asset retirement obligation | 141,000 | 141,000 |
(Gain) loss on asset sales | (33,000) | (2,000) |
Compensation and services paid in stock / stock options | 23,000 | 14,000 |
Changes in assets and liabilities: | ||
Accounts receivable | 96,000 | (318,000) |
Inventory, prepaid expense, and other assets | (28,000) | 203,000 |
Accounts payable | (58,000) | (78,000) |
Accrued liabilities | (64,000) | (73,000) |
Settlement on asset retirement obligations | (25,000) | (53,000) |
Net cash provided by operating activities - continuing operations | 1,293,000 | 113,000 |
Net cash provided by operating activities - discontinued operations | 44,000 | 41,000 |
Net cash provided by operating activities | 1,337,000 | 154,000 |
Investing activities | ||
Additions to oil and gas properties | (1,011,000) | (169,000) |
Proceeds from sale of oil and gas properties | 7,000 | 7,000 |
Additions to other property and equipment | (27,000) | (17,000) |
Proceeds from sale of other property and equipment | 8,000 | |
Net cash used in investing activities - continuing operations | (1,023,000) | (179,000) |
Net cash provided by investing activities - discontinued operations | 2,658,000 | |
Net cash provided by (used in) investing activities | 1,635,000 | (179,000) |
Financing activities | ||
Proceeds from stock issuance in rights offering | 2,699,000 | |
Cost of stock issuance in rights offering | (102,000) | |
Proceeds from borrowings | 100,000 | 400,000 |
Repayment of borrowings | (142,000) | (2,854,000) |
Loan fees | (9,000) | |
Net cash provided by (used in) financing activities - continuing operations | (42,000) | 134,000 |
Net cash provided by (used in) financing activities | (42,000) | 134,000 |
Net change in cash and cash equivalents | 2,930,000 | 109,000 |
Cash and cash equivalents, beginning of period | 185,000 | 76,000 |
Cash and cash equivalents, end of period | 3,115,000 | 185,000 |
Supplemental cash flow information: | ||
Cash interest payments | 33,000 | |
Supplemental non-cash investing and financing activities: | ||
Financed company vehicles | 136,000 | 81,000 |
Cost of stock issuance in rights offering | (140,000) | |
Asset retirement obligations incurred | 7,000 | 1,000 |
Revisions to asset retirement obligations | (198,000) | $ 138,000 |
Capital expenditures included in accounts payable and accrued liabilities | $ 9,000 |
Description Of Business And Sig
Description Of Business And Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Description Of Business And Significant Accounting Policies [Abstract] | |
Description Of Business And Significant Accounting Policies | 1. Descr iption 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 on January 26, 2018. (See Note 5. Discontinued Operations) Principles of Consolidation The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company, and its wholly-owned subsidiaries after elimination of all significant intercompany transactions and balances. Use of Estimates The accompanying consolidated financial statements are prepared in conformity with U.S. GAAP which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. Revenue Recognition 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 passed through sales meters located at the Carter Valley landfill site, at which time control of the electricity transferred to the purchaser, the Company’s contractual obligation was satisfied, and revenues were recognized . The Company sold its methane facility and generation assets on January 26, 2018 and therefore will not recognize revenues associated with any sales volumes after that date. Revenues associated with the methane facility are included in Discontinued Operations. (See Note 5. Discontinued Operations) The Company operates certain salt water disposal wells, some of which accept water from third parties. The contracts with the third parties primarily require a flat monthly fee for the third parties to dispose water into the wells. In some cases, the contract is based on a per barrel charge to dispose water into the wells. There is no requirement under the contracts for these third parties to use these wells for their water disposal. If the third parties do dispose water into the Company operated wells in a given month, the Company has met its contractual obligations and revenues are recognized for that month. The following table presents the disaggregated revenue by commodity for the years ended December 31, 2018 and 2017 (in thousands): Year Ended Year Ended December 31, 2018 December 31, 2017 Revenue (in thousands): Crude oil $5,840 $4,653 Salt water disposal fees 31 30 Total $5,871 $4,683 There were no natural gas imbalances at December 31, 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 quarterly per barrel cost for the quarter ended December 31, 2018 and December 31, 2017 . During 2018 , the Company included production costs and taxes in its calculation of estimated cost. During 2017 , the Company included production costs and taxes, allocated general and administrative costs, depletion, and allocated interest in its calculation of estimated cost. T he Company made this change as it believes that excluding allocated general and administrative costs, depletion, and interests provides a better estimate of its cost of oil inventory. The market component is calculated using the average December 2018 and December 2017 oil sales price for 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 year. At December 31, 2018 and December 31, 2017, inventory consisted of the following (in thousands): December 31, 2018 2017 Oil – carried at cost $ 359 $ 436 Equipment and materials – carried at market 105 105 Total inventory $ 464 $ 541 Oil and Gas Properties The Company follows the full cost method of accounting for oil and gas property acquisition, exploration, and development activities. Under this method, all costs incurred in connection with acquisition, exploration, and development of oil and gas reserves are capitalized. Capitalized costs include lease acquisitions, seismic related costs, certain internal exploration costs, drilling, completion, and estimated asset retirement costs. The capitalized costs of oil and gas properties, plus estimated future development costs relating to proved reserves and estimated asset retirement costs which are not already included net of estimated salvage value, are amortized on the unit-of-production method based on total proved reserves. The Company has determined its reserves based upon reserve reports provided by LaRoche Petroleum Consultants Ltd. since 2009. The costs of unproved properties are excluded from amortization until the properties are evaluated, subject to an annual assessment of whether impairment has occurred. The Company had $23,000 and $0 in unevaluated properties as of December 31, 2018 and 2017, respectively. Proceeds from the sale of oil and gas properties are accounted for as reductions to capitalized costs unless such sales cause a significant change in the relationship between costs and the estimated value of proved reserves, in which case a gain or loss is recognized. At the end of each reporting period, the Company performs a “ceiling test” on the value of the net capitalized cost of oil and gas properties. This test compares the net capitalized cost (capitalized cost of oil and gas properties, net of accumulated depreciation, depletion and amortization and related deferred income taxes) to the present value of estimated future net revenues from oil and gas properties using an average price (arithmetic average of the beginning of month prices for the prior 12 months) and current cost discounted at 10% plus cost of properties not being amortized and the lower of cost or estimated fair value of unproven properties included in the cost being amortized (ceiling). If the net capitalized cost is greater than the ceiling, a write-down or impairment is required. A write-down of the carrying value of the asset is a non-cash charge that reduces earnings in the current period. Once incurred, a write-down may not be reversed in a later period. The Company performed its ceiling tests during 2017 and 2018, resulting in no impairments of its oil and gas properties. Asset Retirement Obligation An asset retirement obligation associated with the retirement of a tangible long-lived asset is recognized as a liability in the period incurred, with an associated increase in the carrying amount of the related long-lived asset, our oil and natural gas properties. The cost of the tangible asset, including the asset retirement cost, is depleted over the useful life of the asset. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. Accretion expense is recorded as “Production costs and taxes” in the Consolidated Statements of Operations. If the estimated future cost of the asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the long-lived asset. Revisions to estimated asset retirement obligations can result from changes in retirement cost estimates, revisions to estimated inflation rates, and changes in the estimated timing of abandonment. Manufactured Methane Facilities The Manufactured Methane facilities were placed into service in April 2009 and were being depreciated using the straight-line method over the useful life based on the estimated landfill closure date of December 2041. The Company sold all its methane facility assets, except the applicable U.S. patent, on January 26, 2018. (See Note 5. Discontinued Operations) Other Property and Equipment Other property and equipment is carried at cost. The Company provides for depreciation of other property and equipment using the straight-line method over the estimated useful lives of the assets which range from two to seven years. Net gains or losses on other property and equipment disposed of are included in operating income in the period in which the transaction occurs. Stock-Based Compensation The Company records stock-based compensation to employees based on the estimated fair value of the award at grant date. We recognize expense on a straight line basis over the requisite service period. For stock-based compensation that vests immediately, the Company recognizes the entire expense in the quarter in which the stock-based compensation is granted. The Company recorded compensation expense of $23,000 in 2018 and $14,000 in 2017. Accounts Receivable Accounts receivable consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date, uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 days of production, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied to the earliest unpaid items. We review accounts receivable periodically and reduce the carrying amount by a valuation allowance that reflects our best estimate of the amount that may not be collectible. An allowance was recorded at December 31, 2018 and 2017. At December 31, 2018 and 2017, accounts receivable consisted of the following (in thousands): December 31, 2018 2017 Revenue $ 396 $ 479 Tax 129 — Joint interest 8 23 Other — 29 Allowance for doubtful accounts — (14) Total accounts receivable $ 533 $ 517 At year-end 2018, the Company removed the $159,000 from Accounts receivable-related party and also from the associated allowance for doubtful accounts. This removal occurred as the Company determined that the outstanding balance of the associated payable recorded in Accounts payable – other was not recoverable against the Company by operation of applicable statutes of limitation or prescription. At December 31, 2018 and December 31, 2017, the Company recorded a tax related non-current receivable in the amount of $130,000 and $242,000, respectively. At September 30, 2018, based upon its expected recovery, the Company reclassified $121,000 of this tax related non-current receivable as a current receivable. At December 31, 2018, the increased the tax related current and non-current receivable by approximately $8,000 and $9,000 , respectively. (See Note 13. Income Taxes) Income Taxes Income taxes are reported in accordance with U.S. GAAP, which requires the establishment of deferred tax accounts for all temporary differences between the financial reporting and tax bases of assets and liabilities, using currently enacted federal and state income tax rates. In addition, deferred tax accounts must be adjusted to reflect new rates if enacted into law. Realization of deferred tax assets is contingent on the generation of future taxable income. As a result, management considers whether it is more likely than not that all or a portion of such assets will be realized during periods when they are available, and if not, management provides a valuation allowance for amounts not likely to be recognized. Management periodically evaluates tax reporting methods to determine if any uncertain tax positions exist that would require the establishment of a loss contingency. A loss contingency would be recognized if it were probable that a liability has been incurred as of the date of the financial statements and the amount of the loss can be reasonably estimated. The amount recognized is subject to estimates and management’s judgment with respect to the likely outcome of each uncertain tax position. The amount that is ultimately incurred for an individual uncertain tax position or for all uncertain tax positions in the aggregate could differ from the amount recognized. Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. The Company’s primary business activities include oil sales to a limited number of customers in the state of Kansas. The related trade receivables subject the Company to a concentration of credit risk. The Company sells a majority of its crude oil primarily to two customers in Kansas. Although management believes that customers could be replaced in the ordinary course of business, if the present customers were to discontinue business with the Company, it may have a significant adverse effect on the Company’s results of operations. Revenue from the top two purchasers accounted for 85.6% and 13.8% of total revenues for year ended December 31, 2018. Revenue from the top t wo purchasers accounted for 84.6% and 14.8% of total revenues for year ended December 31, 2017. As of December 31, 2018 and 2017, two of the Company’s oil purchasers accounted for 93.2% and 89.7% , respectively of accounts receivable, of which one oil purchaser accounted for 84.4% and 74.4% , respectively. The amounts above exclude revenues and accounts receivable associated with Discontinued Operations. (see Note 5. Discontinued Operations) Earnings per Common Share The Company reports basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share which include the effect of all potentially dilutive securities unless their impact is anti-dilutive. The following are reconciliations of the numerators and denominators of the Company’s basic and diluted earnings per share, ( in thousands except for share and per share amounts): For the years ended December 31, 2018 2017 Income (numerator): Net income (loss) from continuing operations $ 442 $ (603) Net income from discontinued operations 1,127 29 Weighted average shares (denominator): Weighted average shares - basic 10,628,170 10,081,218 Dilution effect of share-based compensation, treasury method — — Weighted average shares - dilutive 10,628,170 10,081,218 Income (loss) per share – Basic and Dilutive: Continuing operations $ 0.04 $ (0.06) Discontinued operations $ 0.11 $ — O ptions issued to the Company’s directors in which the exercise price was higher than the average market price each quarter was also excluded from diluted shares as they would have been anti-dilutive (See Note 12. Stock and Stock Options). In addition, the shares that would be issued to employees and Company directors have also been excluded from this calculation. (See Note 9. Commitments and Contingencies) Fair Value of Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payables, accrued liabilities and long term debt approximates fair value as of December 31, 2018 and 2017. Derivative Financial Instruments The Company uses derivative instruments to manage our exposure to commodity price risk on sales of oil production. The Company does not enter into derivative instruments for speculative trading purposes. The Company presents the fair value of derivative contracts on a net basis where the right to offset is provided for in our counterparty agreements. As of December 31, 2018 and 2017, the Company did not have any open derivatives. Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation with no effect on net income. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 2. 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. The Company has identified each of its leases and determined the impact of this new guidance on each of the identified leases. Upon adoption on January 1, 2019, the Company anticipates that it will record right-of-use assets and liabilities associated with operating leases of approximately $100,000 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 3. Related Party Transactions On September 17, 2007, Hoactzin Partners, L.P. (“Hoactzin”) subscribed to a drilling program offered by the Company consisting of wells to be drilled on the Company’s Kansas Properties (the “Program”). Peter E. Salas, the Chairman of the Board of Directors of the Company, is the controlling person of Hoactzin and of Dolphin Offshore Partners, L.P., the Company’s largest shareholder. Hoactzin was also conveyed a net profits interest in the MMC facility at the Carter Valley municipal solid waste landfill owned and operated by Republic Services, Inc. in Church Hill, Tennessee where the Company installed a propriety combination of advanced gas treatment technology to extract the methane component of the purchased gas stream (the “Methane Project”). The net profits interest owned by Hoactzin during 2017 was 7.5% of the net profits as defined by agreement and takes into account specific costs and expenses as well as gross gas revenues for the project. As a result of the startup costs, monthly operating expenses, and gas production levels experienced, no net profits as defined were realized during the period from the project startup in April, 2009 through January 26, 2018, the date the Company sold the Methane Project to a third party, for payment to Hoactzin under the net profits interest. In addition, during Company during the 4 th quarter of 2018, the Company acquired all of Hoactzin’s interest in the drilling program wells for $134,690 . On December 18, 2007, the Company entered into a Management Agreement with Hoactzin to manage on behalf of Hoactzin all of its working interest in certain oil and gas properties owned by Hoactzin and located in the onshore Texas Gulf Coast, and offshore Texas and offshore Louisiana. As part of the consideration for the Company’s agreement to enter into the Management Agreement, Hoactzin granted to the Company an option to participate in up to a 15% working interest on a dollar for dollar cost basis in any new drilling or workover activities undertaken on Hoactzin’s managed properties during the term of the Management Agreement. The Management Agreement expired on December 18, 2012. The Company entered into a transition agreement with Hoactzin whereby the Company no longer performs operations, but administratively assists Hoactzin in becoming operator of record of these wells and transferring all bonds from the Company to Hoactzin. This assistance is primarily related to signing the necessary documents to effectuate this transition. Hoactzin and its controlling member are indemnifying the Company for any costs or liabilities incurred by the Company resulting from such assistance, or the fact that the Company is the operator of record on certain of these wells. As of the date of this Report, the Company continues to administratively assist Hoactzin with this transition process. 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 by Hoactzin in late 2009 and 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 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 December 31, 2017 in its Consolidated Balance Sheets under “Accounts payable – other” and “Accounts receivable – related party”. However, Hoactzin had 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 establish an allowance in the amount of $159,000 for the balances outstanding at 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 December 31, 2017. At year-end 2018, the Company has determined that the outstanding balances under these vendor contracts for services or materials provided in 2009 and 2010 are not recoverable against the Company by operation of applicable statutes of limitation or prescription, and consequently, these amounts have been removed from the Company’s balance sheet at December 31, 2018. This removal also result ed in the Company recording other income in 2018 in the amount of $159,000 . |
Oil And Gas Properties
Oil And Gas Properties | 12 Months Ended |
Dec. 31, 2018 | |
Oil And Gas Properties [Abstract] | |
Oil And Gas Properties | 4. Oil and Gas Properties The following table sets forth information concerning the Company’s oil and gas properties: (in thousands): December 31, 2018 2017 Oil and gas properties $ 6,503 $ 5,704 Unevaluated properties 23 — Accumulated depreciation, depletion and amortization (1,722) (984) Oil and gas properties, net $ 4,804 $ 4,720 During the years ended December 31, 201 8 and 201 7 , the Company recorded depletion expense of $722,000 and $796,000 , respectively. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 5. Discontinued Operations The following table sets forth information concerning Discontinued Operations: (in thousands): 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 — 16 Discontinued operations included in current liabilities $ — $ 43 For the years ended December 31, 2018 2017 Revenues $ 6 $ 580 Production costs and taxes (40) (489) Depreciation, depletion, and amortization (4) (62) Interest income — — Gain on sale of assets 1,165 — Deferred income tax benefit — — Net income (loss) from discontinued operations $ 1,127 $ 29 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 |
Other Property And Equipment
Other Property And Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Other Property And Equipment [Abstract] | |
Other Property And Equipment | 6. Other Property and Equipment Other property and equipment consisted of the following as of December 31, 2018: (in thousands) Depreciable Accumulated Net Book Type Life Gross Cost Depreciation Value Machinery and equipment 5 -7 yrs $ 20 $ 20 $ — Vehicles 2 -5 yrs 293 103 190 Other 5 yrs 63 63 — Total $ 376 $ 186 $ 190 Other property and equipment consisted of the following as of December 31, 2017: (in thousands) Depreciable Accumulated Net Book Type Life Gross Cost Depreciation Value Machinery and equipment 5 -7 yrs $ 20 $ 20 $ — Vehicles 2 -5 yrs 318 183 135 Other 5 yrs 63 63 — Total $ 401 $ 266 $ 135 The Company uses the straight-line method of depreciation for other property and equipment. During each of the years ended December 31, 2018 and 2017, the Company recorded depreciation expense of $73,000 and $66,000 , respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 7. Long-Term Debt Long-term debt consisted of the following: (in thousands) December 31, 2018 2017 Note payable to a bank, with interest only payment until maturity. $ — $ — Installment notes bearing interest at the rate of 5.0% to 6.5% per annum collateralized by vehicles with monthly payments including interest, insurance and maintenance of approximately $10 124 90 Total long-term debt 124 90 Less current maturities (51) (41) Long-term debt, less current maturities $ 73 $ 49 Future debt payments to unrelated entities as of December 31, 2018 consisted of the following: (in thousands) 2019 2020 2021 Total Bank Credit Facility $ — $ — $ — $ — Company Vehicles $ 51 $ 47 $ 26 $ 124 Total $ 51 $ 47 $ 26 $ 124 At December 31, 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 December 31, 2018, the Company’s borrowing base was $3 million, subject to a credit limit based on current covenants of approximately $2.74 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 December 31, 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 December 31, 2018, the interest rate on this credit facility was 6.00% . The Company was in compliance with all covenants during the quarter ended December 31, 2018. On August 24, 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 $3 million, subject to a credit limit based on current covenants of approximately $2.74 million. 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 5.50% 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 December 31, 2018. The next borrowing base review will take place in April 2019. On March 21, 2018, the Company’s senior credit facility with Prosperity Bank after Prosperity Bank’s review of the Company’s 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 remained 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. The Company had zero borrowings under the facility at December 31, 2018 and December 31, 2017. The next borrowing base review will take place in April 2019. |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2018 | |
Liquidity [Abstract] | |
Liquidity | 8. Liquidity The Company incurred a net loss of approximately $574,000 in 2017 and $4.2 million in 2016. In January 2018, the Company sold its methane facility for $2.65 million. During 2019, 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 $2.74 million credit limit base with no funds currently drawn. In addition, if required, the Compa ny could also issue additional shares of stock and/or sell assets as needed to further fund operations. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 9. 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. Cost Reduction Measures Commencing in the quarter ended March 31, 2015 and continuing into the quarter ended June 30, 2018, the Company implemented cost reduction measures including compensation reductions for each employee as well as members of the Board of Directors. These compensation reductions were to remain in place until such time, if any, that the market price of crude oil, calculated as a thirty day trailing average of WTI postings as published by the U.S. Energy Information Administration meets or exceeds $70 per barrel. In May 2018, oil prices as so calculated exceeded $70 and compensation reverted to the levels in place before the reductions became effective. At such time, if any, that the market price of crude oil, calculated as a thirty day trailing average of WTI postings as published by the U.S. Energy Information Administration meets or exceeds $85 per barrel, all previous reductions made will be reimbursed, a portion which may be paid in stock, to each employee and members of the Board of Directors if is still employed by the Company or still a member of the Board of Directors. For the period January 1, 2015 through December 31, 2018, the reductions were approximately $424,000 . Of the $424,000, approximately $95,000 will be paid in the Company’s common stock. The $95,000 value represents approximately 100,000 common share valued at $0.95 per share which represents the closing price on December 31, 2018. 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. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 10. 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 December 31, 201 8 and December 31, 201 7 . |
Asset Retirement Obligation
Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligation | 11 . Asset Retirement Obligation Our asset retirement obligations represent the estimated present value of the amount we will incur to plug, abandon and remediate our producing properties at the end of their productive lives in accordance with applicable laws. The following table summarizes the Company’s Asset Retirement Obligation transactions for the years ended December 31, 201 7 and 201 8 (in thousands): Balance December 31, 2016 $ 2,046 Accretion expense 141 Liabilities incurred 1 Liabilities settled (45) Liabilities sold properties (11) Revisions in estimated liabilities 138 Balance December 31, 2017 $ 2,270 Accretion expense 141 Liabilities incurred 7 Liabilities settled (41) Revisions in estimated liabilities (198) Balance December 31, 2018 $ 2,179 The revisions in estimated liabilities resulted from change in timing of wells to be plugged, change in inflation factor, and change in current plugging costs. |
Stock And Stock Options
Stock And Stock Options | 12 Months Ended |
Dec. 31, 2018 | |
Stock And Stock Options [Abstract] | |
Stock And Stock Options | 12. Stock and Stock Options In October 2000, the Company approved a Stock Incentive Plan which was effective for a ten -year period commencing on October 25, 2000 and ending on October 24, 2010. The aggregate number of shares of Common Stock as to which options and Stock Appreciation Rights may be granted to participants under the original Plan was not to exceed 7,000,000 . An amendment to the Plan increasing the number of shares that may be issued under the Plan by 3,500,000 shares and extending the Plan for another ten years was approved by the Company’s Board of Directors on February 1, 2008 and approved by the Company’s shareholders at the Annual Meeting of Stockholders held on June 2, 2008. On March 21, 2016 at a special meeting of the shareholders, the Plan was amended to permit grant of common stock. Options are not transferable, are exercisable for 3 months after voluntary resignation from the Company, and terminate immediately upon involuntary termination from the Company. The purchase price of shares subject to this Plan shall be determined at the time the options are granted, but are not permitted to be less than 85% of the fair market value of such shares on the date of grant. On March 21, 2016, the Company’s shareholders approved a 1 for 10 reverse stock split, effective with trading on March 24, 2016. All share and per share information in the following tables has been adjusted to reflect the impact of this reverse stock split. In August 2018, the Tengasco, Inc. 2018 Stock Incentive Plan (the “2018 Plan”) was adopted to continue to provide an incentive to key employees, officers, directors, and consultants of the Company and its present and future subsidiary corporations, and to offer an additional inducement in obtaining the services of such individuals. The 2018 Plan contains the same substantive terms as the Company’s previous stock incentive plan adopted in October, 2000 and thereafter amended until its expiration on January 10, 2018. The 2018 Plan provided an aggregate number of shares for which shares, options, and stock appreciation rights may be issued equal to the number of shares that had been available for issuance in the previous plan upon expiration. The 2018 Plan was approved by a majority of the Company’s shareholders acting on written consents and the shares thereunder were subject to Registration Statement on Form S-8 filed August 27, 2018. The following table summarizes stock option activity in 2018 and 2017: 2018 2017 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Outstanding, beginning of year 30,000 $ 3.73 37,500 $ 4.70 Granted — $ — — $ — Exercised — $ — — $ — Expired/cancelled (13,125) $ 4.43 (7,500) $ 8.40 Outstanding, end of year 16,875 $ 3.18 30,000 $ 3.73 Exercisable, end of year 16,875 $ 3.18 30,000 $ 3.73 The following table summarizes information about stock options outstanding and exercisable at December 31, 2018: Weighted Average Exercise Price Options Outstanding (shares) Weighted Average Remaining Contractual Life (years) Options Exercisable (shares) $ 4.10 1,875 — 1,875 $ 4.80 1,875 0.2 1,875 $ 4.40 1,875 0.5 1,875 $ 4.40 1,875 0.8 1,875 $ 2.50 1,875 1.0 1,875 $ 2.30 1,875 1.2 1,875 $ 2.70 1,875 1.5 1,875 $ 2.20 1,875 1.8 1,875 $ 1.20 1,875 2.0 1,875 16,875 16,875 During 2018 and 2017, the Company issued no additional options to each of the three non-executive directors. In addition, during 2018, the Company issued 19,366 shares of common stock to the Directors and to the CEO. The shares issued to Directors was in lieu of stock options and vested immediately. The shares issued to the CEO was in lieu of a portion of the quarterly cash payment paid for service as the Company’s CEO and vested immediately. The company recorded compensation expense of approximately $23,000 as a result of the stock issuances. In addition, during 2017, the Company issued 23,503 shares of common stock to the Directors and to the CEO. The shares issued to Directors was in lieu of stock options and vested immediately. The shares issued to the CEO was in lieu of a portion of the quarterly cash payment paid for service as the Company’s CEO and vested immediately. The company recorded compensation expense of approximately $14,000 as a result of the stock issuances. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | 13. Income Taxes The Company did not have taxable income for the years ended December 31, 2018, and 2017. A reconciliation of the statutory U.S. Federal income tax and the income tax provision included in the accompanying consolidated statements of operations is as follows (in thousands): Year Ended December 31, 2018 Total Statutory rate 21 % Tax (benefit) expense at statutory rate $ 326 State income tax (benefit) expense 95 Permanent difference 1 Return to provision 152 Net change in deferred tax asset valuation allowance (591) Total income tax provision (benefit) $ (17) Year Ended December 31, 2017 Total Statutory rate 34 % Tax (benefit) expense at statutory rate $ (278) State income tax (benefit) expense (42) Permanent difference 1 Impact of 2017 Tax Act 5,319 Other 14 Net change in deferred tax asset valuation allowance (5,256) Total income tax provision (benefit) $ (242) Management has evaluated the positions taken in connection with the tax provisions and tax compliance for the years included in these financial statements. The Company believes that all of the positions it has taken will prevail on a more likely than not basis. As such no disclosure of such positions was deemed necessary. Management continuously estimates its ability to recognize a deferred tax asset related to prior period net operating loss carry forwards based on its anticipation of the likely timing and adequacy of future net income. At December 31, 2018, federal net operating loss carryforwards amounted to approximately $35.6 million, of which $34.6 million expires between 2019 and 2037 which can offset 100% of taxable income and $1 million that has an indefinite carryforward period which can offset 80% of taxable income per year. The total net deferred tax asset was $130,000 at December 31, 2018 and $242,000 at 2017. In 2018, the Company released a portion of the allowance related to its MTC as a result of the 2017 Tax Act. The Company recorded an allowance on the remaining deferred tax asset at December 31, 2018 primarily due to cumulative losses incurred during the 3 years ended December 31, 2018. The Company recorded a full allowance against the deferred tax asset net of the AMT credit at December 31, 2017 primarily due to cumulative losses incurred during the 3 years ended December 31, 2017. The total valuation allowance December 31, 2018 was $11.5 million, and $12.1 million at December 31, 2017. As the Company adopted ASU 2016-09 during the first quarter of 2017, the excess tax benefits associated with certain stock compensation deductions that have not been previously recognized were recorded to retained earnings net of valuation allowance. The effect on the valuation allowance on this adoption was an increase of $687,000 recorded to retained earnings. Our open tax years include all returns filed for 2015 and later. In addition, any of the Company’s NOLs for tax reporting purposes are still subject to review and adjustment by both the Company and the IRS to the extent such NOLs should be carried forward into an open tax year. Comprehensive tax reform legislation enacted in December 2017, commonly referred to as the Tax Cuts and Jobs Act (the “2017 Tax Act”), made significant changes to U.S. federal income tax laws. The 2017 Tax Act, among other things, reduces the corporate income tax rate to 21%, repeal of the corporate Alternative Minimum tax, partially limits the deductibility of business interest expense and net operating losses, and allows the immediate deduction of certain new investments instead of deductions for depreciation expense over time. The Company had not completed its determination of the accounting implications of the 2017 Tax Act on its tax accruals. However the Company has reasonably estimated the effects of the 2017 Tax Act and recorded provisional amounts in its financial statements as of December 31, 2017. The Company recorded the following provisional amounts for the effects of the 2017 Tax Act. Beginning January 1, 2018, the U.S. corporate income tax rate was be 21%. The Company was required to recognize the impacts of this rate change on its deferred tax assets and liabilities in the period enacted. The provisional tax effect of the change in tax rate was a decrease to the deferred tax asset of $5.3 million. However, as the Company has a full valuation allowance on its net deferred tax asset, the deferred tax recognized due to the change in rate will be offset with a change in the valuation allowance. Therefore, there was no overall impact to the Financial Statements in 2017 due to this change in rate. The 2017 Tax Act also repealed the corporate AMT for tax years beginning on or after January 1, 2018 and provides for existing alternative minimum tax credit carryovers to be refunded beginning in 2018. The Company has approximately $260,000 in refundable credits, and it expects that a substantial portion will be refunded between 2018 and 2021. As 50% of the credit will be refunded when we file the 2018 tax return, this amount is recorded as a current accounts receivable on the Balance Sheet at December 31, 2018, with balance of this refund recorded as a non-current accounts receivable. The ultimate impact of the 2017 Tax Act may differ from the provisional amounts recorded due to additional information becoming available, changes in interpretation of the 2017 Tax Act as well as additional regulatory guidance that may be issued. The company completed its review of the 2017 Tax Act in 2018, and there were no material changes in the measurement period . The Company’s deferred tax assets and liabilities are as follows: (in thousands) Year Ended December 31, 2018 2017 Net deferred tax assets – current : Bad debt $ — $ — Valuation allowance — — Total deferred tax assets – current $ — $ — Net deferred tax assets (liabilities) – noncurrent: Net operating loss carryforwards $ 9,675 $ 8,187 Oil and gas properties 1,327 2,735 Property, Plant and Equipment (163) 419 Asset retirement obligation 592 616 Tax credits 130 260 Miscellaneous 45 92 Valuation allowance (11,476) (12,067) Total deferred tax assets – noncurrent $ 130 $ 242 Net deferred tax asset $ 130 $ 242 |
Quarterly Data And Share Inform
Quarterly Data And Share Information | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Data And Share Information [Abstract] | |
Quarterly Data And Share Information | 14. Quarterly Data and Share Information (unaudited) The following tables sets forth for the fiscal periods indicated, selected consolidated financial data (In thousands, except per share data) Fiscal Year Ended 2018 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Revenues $ 1,367 $ 1,475 $ 1,654 $ 1,375 Net income (loss) from continuing operations 133 99 298 (88) Income (loss) per common share from continuing operations $ 0.01 $ 0.01 $ 0.03 $ (0.01) Fiscal Year Ended 2017 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Revenues $ 1,209 $ 1,138 $ 1,035 $ 1,301 Net income (loss) from continuing operations (170) (230) (361) 158 Income (loss) per common share from continuing operations $ (0.02) $ (0.02) $ (0.03) $ 0.01 |
Supplemental Oil And Gas Inform
Supplemental Oil And Gas Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Oil And Gas Information [Abstract] | |
Supplemental Oil And Gas Information | 15. Supplemental Oil and Gas Information (unaudited) Information with respect to the Company’s oil and gas producing activities is presented in the following tables. Estimates of reserves quantities, as well as future production and discounted cash flows before income taxes, were determined by LaRoche Petroleum Consultants Ltd. All of the Company’s reserves were located in the United States. Capitalized Costs Related to Oil and Gas Producing Activities The table below reflects our capitalized costs related to our oil and gas producing activities at December 31, 2018 and 2017 (in thousands): Years Ended December 31, 2018 2017 Proved oil and gas properties $ 6,503 $ 5,704 Unproved properties 23 — Total proved and unproved oil and gas properties $ 6,526 $ 5,704 Less accumulated depreciation, depletion and amortization (1,722) (984) Net oil and gas properties $ 4,804 $ 4,720 Oil and Gas Related Costs The following table sets forth information concerning costs incurred, including accruals, related to the Company’s oil and gas property acquisition, exploration and development activities (in thousands): Years Ended December 31, 2018 2017 Property acquisitions proved $ 164 $ — Property acquisitions unproved 23 93 Exploration cost 590 69 Development cost 243 — Total $ 1,020 $ 162 Results of Operations from Oil and Gas Producing Activities The following table sets forth the Company’s results of operations from oil and gas producing activities (in thousands): Years Ended December 31, 2018 2017 Revenues $ 5,871 $ 4,683 Production costs and taxes (3,591) (3,444) Depreciation, depletion and amortization (722) (796) Income (loss) from oil and gas producing activities $ 1,558 $ 443 In the presentation above, no deduction has been made for indirect costs such as general corporate overhead or interest expense. No income taxes are reflected above due to the Company’s operating tax loss carry-forward position. Estimated Quantities of Oil and Gas Reserves The following table sets forth the Company’s net proved oil and gas reserves and the changes in net proved oil and gas reserves for the years ended December 31, 2016, 2017 and 2018. All of the Company’s proved reserves are located in the United States of America. Oil (MBbl) Gas (MMcf) MBOE Proved reserves at December 31, 2016 730 — 730 Revisions of previous estimates 195 — 195 Improved recovery — — — Purchase of reserves in place — — — Extensions and discoveries 47 — 47 Production (102) — (102) Sales of reserves in place — — — Proved reserves at December 31, 2017 870 — 870 Revisions of previous estimates 223 — 223 Improved recovery — — — Purchase of reserves in place 13 — 13 Extensions and discoveries 86 — 86 Production (98) — (98) Sales of reserves in place — — — Proved reserves at December 31, 2018 1,094 — 1,094 Proved developed reserves at: December 31, 2016 730 — 730 December 31, 2017 832 — 832 December 31, 2018 976 — 976 Proved undeveloped reserves at: December 31, 2016 — — — December 31, 2017 38 — 38 December 31, 2018 118 — 118 The Company’s Proved Undeveloped Reserves at December 31, 2018 included 7 locations and at December 31, 2017 included 3 locations, and no locations at December 31, 2016 and 2015. During 2016 and 2015 , all Proved Undeveloped locations were remove d from the Company’s Proved Reserves primarily due to the low oil prices experienced during these years . Increases in prices allowed the company to include 3 Proved Undeveloped locations in its December 31, 2017 reserves and 7 Proved Undeveloped locations in its December 31, 2018 reserves. Although the Company completed a well during 2018 that was not included in Proved Reserves at the end of 2017 and therefore contributed to extensions and discoveries, t he primary factor causing the revisions as well as the extensions and discoveries during 2018 levels was related to higher oil prices that enabled the Company to consider certain properties as becoming economic or remaining economic longer and to consequently increase the oil volumes included in Proved Reserves . The following table identifies the Company’s net proved reserve value by category and the respective present values, before income taxes, discounted at 10% as a percentage of total proved reserves (in thousands): Year Ended 12/31/2018 Year Ended 12/31/2017 Year Ended 12/31/2016 Oil Gas Total Oil Gas Total Oil Gas Total Total proved reserves year-end reserve report $ 13,976 — $ 13,976 $ 8,170 — $ 8,170 $ 5,815 — $ 5,815 Proved developed producing reserves (PDP) $ 12,534 — $ 12,534 $ 7,065 — $ 7,065 $ 5,397 — $ 5,397 % of PDP reserves to total proved reserves 90% — 90% 87% — 87% 93% — 93% Proved developed non- producing reserves $ 739 — $ 739 $ 1,082 — $ 1,082 $ 418 — $ 418 % of PDNP reserves to total proved reserves 5% — 5% 13% — 13% 7% — 7% Proved undeveloped reserves (PUD) $ 703 — $ 703 $ 23 — $ 23 $ — — $ — % of PUD reserves to total proved reserves 5% — 5% — — — — — — S tandardized Measure of Discounted Future Net Cash Flows The standardized measure of discounted future net cash flows from the Company’s proved oil and gas reserves is presented in the following table (in thousands): Years Ended December 31, 2018 2017 2016 Future cash inflows $ 65,871 $ 39,889 $ 27,253 Future production costs and taxes (35,877) (23,343) (16,270) Future development costs (2,833) (1,586) (553) Future income tax expenses — — — Future net cash flows 27,161 14,960 10,430 Discount at 10% for timing of cash flows (13,185) (6,790) (4,615) Standardized measure of discounted future net cash flows $ 13,976 $ 8,170 $ 5,815 The following are the principal sources of change in the standardized measure of discounted future net cash flows from the Company’s proved oil and gas reserves (in thousands): Years Ended December 31, 2018 2017 2016 Balance, beginning of year $ 8,170 $ 5,815 $ 8,287 Sales, net of production costs and taxes (2,611) (1,239) (2,037) Discoveries and extensions, net of costs 798 123 35 Purchase of reserves in place 143 — — Sale of reserves in place — — (10) Net changes in prices and production costs 4,304 1,780 (863) Revisions of quantity estimates 2,180 1,611 (412) Previously estimated development cost incurred during the year 210 — — Changes in future development costs 78 (228) 196 Changes in timing and other (4) (164) (20) Accretion of discount 708 472 639 Net change in income taxes — — — Balance, end of year $ 13,976 $ 8,170 $ 5,815 Estimated future net cash flows represent an estimate of future net revenues from the production of proved reserves using average sales prices along with estimates of the operating costs, production taxes and future development and abandonment cost (less salvage value) necessary to produce such reserves. Future income taxes were calculated by applying the statutory federal and state income tax rates to pre-tax future net cash flows, net of the tax basis of the properties and utilizing available tax loss carryforwards related to oil and gas operations. The oil prices used for December 31, 2018, 2017, and 2016 were $60.21 , and $45.83 , and $37.35 per barrel of oil, respectively. The Company’s proved reserves as of December 31, 2018, 2017 and 2016 were measured by using commodity prices based on the twelve month unweighted arithmetic average of the first day of the month price for the period January through December. No deduction has been made for depreciation, depletion, or any indirect cost such as general corporate overhead or interest expense. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events On January 2, 2019, 4,962 common shares were issued in the aggregate to the Company’s three directors and the CFO and interim CEO. This issuance will result in compensation expense of approximately $4,714 to be recorded during the quarter ended March 31, 2019. In January 2019, the Company sold its equipment inventory for $150,000 . The Company will record a gain on this sale of $45,000 during the quarter ended March 31, 2019. |
Description Of Business And S_2
Description Of Business And Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Description Of Business And Significant Accounting Policies [Abstract] | |
Principles Of Consolidation | Principles of Consolidation The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The consolidated financial statements include the accounts of the Company, and its wholly-owned subsidiaries after elimination of all significant intercompany transactions and balances. |
Use Of Estimates | Use of Estimates The accompanying consolidated financial statements are prepared in conformity with U.S. GAAP which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition 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 passed through sales meters located at the Carter Valley landfill site, at which time control of the electricity transferred to the purchaser, the Company’s contractual obligation was satisfied, and revenues were recognized . The Company sold its methane facility and generation assets on January 26, 2018 and therefore will not recognize revenues associated with any sales volumes after that date. Revenues associated with the methane facility are included in Discontinued Operations. (See Note 5. Discontinued Operations) The Company operates certain salt water disposal wells, some of which accept water from third parties. The contracts with the third parties primarily require a flat monthly fee for the third parties to dispose water into the wells. In some cases, the contract is based on a per barrel charge to dispose water into the wells. There is no requirement under the contracts for these third parties to use these wells for their water disposal. If the third parties do dispose water into the Company operated wells in a given month, the Company has met its contractual obligations and revenues are recognized for that month. The following table presents the disaggregated revenue by commodity for the years ended December 31, 2018 and 2017 (in thousands): Year Ended Year Ended December 31, 2018 December 31, 2017 Revenue (in thousands): Crude oil $5,840 $4,653 Salt water disposal fees 31 30 Total $5,871 $4,683 There were no natural gas imbalances at December 31, 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 quarterly per barrel cost for the quarter ended December 31, 2018 and December 31, 2017 . During 2018 , the Company included production costs and taxes in its calculation of estimated cost. During 2017 , the Company included production costs and taxes, allocated general and administrative costs, depletion, and allocated interest in its calculation of estimated cost. T he Company made this change as it believes that excluding allocated general and administrative costs, depletion, and interests provides a better estimate of its cost of oil inventory. The market component is calculated using the average December 2018 and December 2017 oil sales price for 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 year. At December 31, 2018 and December 31, 2017, inventory consisted of the following (in thousands): December 31, 2018 2017 Oil – carried at cost $ 359 $ 436 Equipment and materials – carried at market 105 105 Total inventory $ 464 $ 541 |
Oil And Gas Properties | Oil and Gas Properties The Company follows the full cost method of accounting for oil and gas property acquisition, exploration, and development activities. Under this method, all costs incurred in connection with acquisition, exploration, and development of oil and gas reserves are capitalized. Capitalized costs include lease acquisitions, seismic related costs, certain internal exploration costs, drilling, completion, and estimated asset retirement costs. The capitalized costs of oil and gas properties, plus estimated future development costs relating to proved reserves and estimated asset retirement costs which are not already included net of estimated salvage value, are amortized on the unit-of-production method based on total proved reserves. The Company has determined its reserves based upon reserve reports provided by LaRoche Petroleum Consultants Ltd. since 2009. The costs of unproved properties are excluded from amortization until the properties are evaluated, subject to an annual assessment of whether impairment has occurred. The Company had $23,000 and $0 in unevaluated properties as of December 31, 2018 and 2017, respectively. Proceeds from the sale of oil and gas properties are accounted for as reductions to capitalized costs unless such sales cause a significant change in the relationship between costs and the estimated value of proved reserves, in which case a gain or loss is recognized. At the end of each reporting period, the Company performs a “ceiling test” on the value of the net capitalized cost of oil and gas properties. This test compares the net capitalized cost (capitalized cost of oil and gas properties, net of accumulated depreciation, depletion and amortization and related deferred income taxes) to the present value of estimated future net revenues from oil and gas properties using an average price (arithmetic average of the beginning of month prices for the prior 12 months) and current cost discounted at 10% plus cost of properties not being amortized and the lower of cost or estimated fair value of unproven properties included in the cost being amortized (ceiling). If the net capitalized cost is greater than the ceiling, a write-down or impairment is required. A write-down of the carrying value of the asset is a non-cash charge that reduces earnings in the current period. Once incurred, a write-down may not be reversed in a later period. The Company performed its ceiling tests during 2017 and 2018, resulting in no impairments of its oil and gas properties. |
Asset Retirement Obligation | Asset Retirement Obligation An asset retirement obligation associated with the retirement of a tangible long-lived asset is recognized as a liability in the period incurred, with an associated increase in the carrying amount of the related long-lived asset, our oil and natural gas properties. The cost of the tangible asset, including the asset retirement cost, is depleted over the useful life of the asset. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. Accretion expense is recorded as “Production costs and taxes” in the Consolidated Statements of Operations. If the estimated future cost of the asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the long-lived asset. Revisions to estimated asset retirement obligations can result from changes in retirement cost estimates, revisions to estimated inflation rates, and changes in the estimated timing of abandonment. |
Manufactured Methane Facilities | Manufactured Methane Facilities The Manufactured Methane facilities were placed into service in April 2009 and were being depreciated using the straight-line method over the useful life based on the estimated landfill closure date of December 2041. The Company sold all its methane facility assets, except the applicable U.S. patent, on January 26, 2018. (See Note 5. Discontinued Operations) |
Other Property And Equipment | Other Property and Equipment Other property and equipment is carried at cost. The Company provides for depreciation of other property and equipment using the straight-line method over the estimated useful lives of the assets which range from two to seven years. Net gains or losses on other property and equipment disposed of are included in operating income in the period in which the transaction occurs. |
Stock-Based Compensation | Stock-Based Compensation The Company records stock-based compensation to employees based on the estimated fair value of the award at grant date. We recognize expense on a straight line basis over the requisite service period. For stock-based compensation that vests immediately, the Company recognizes the entire expense in the quarter in which the stock-based compensation is granted. The Company recorded compensation expense of $23,000 in 2018 and $14,000 in 2017. |
Accounts Receivable | Accounts Receivable Accounts receivable consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date, uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 days of production, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied to the earliest unpaid items. We review accounts receivable periodically and reduce the carrying amount by a valuation allowance that reflects our best estimate of the amount that may not be collectible. An allowance was recorded at December 31, 2018 and 2017. At December 31, 2018 and 2017, accounts receivable consisted of the following (in thousands): December 31, 2018 2017 Revenue $ 396 $ 479 Tax 129 — Joint interest 8 23 Other — 29 Allowance for doubtful accounts — (14) Total accounts receivable $ 533 $ 517 At year-end 2018, the Company removed the $159,000 from Accounts receivable-related party and also from the associated allowance for doubtful accounts. This removal occurred as the Company determined that the outstanding balance of the associated payable recorded in Accounts payable – other was not recoverable against the Company by operation of applicable statutes of limitation or prescription. At December 31, 2018 and December 31, 2017, the Company recorded a tax related non-current receivable in the amount of $130,000 and $242,000, respectively. At September 30, 2018, based upon its expected recovery, the Company reclassified $121,000 of this tax related non-current receivable as a current receivable. At December 31, 2018, the increased the tax related current and non-current receivable by approximately $8,000 and $9,000 , respectively. (See Note 13. Income Taxes) |
Income Taxes | Income Taxes Income taxes are reported in accordance with U.S. GAAP, which requires the establishment of deferred tax accounts for all temporary differences between the financial reporting and tax bases of assets and liabilities, using currently enacted federal and state income tax rates. In addition, deferred tax accounts must be adjusted to reflect new rates if enacted into law. Realization of deferred tax assets is contingent on the generation of future taxable income. As a result, management considers whether it is more likely than not that all or a portion of such assets will be realized during periods when they are available, and if not, management provides a valuation allowance for amounts not likely to be recognized. Management periodically evaluates tax reporting methods to determine if any uncertain tax positions exist that would require the establishment of a loss contingency. A loss contingency would be recognized if it were probable that a liability has been incurred as of the date of the financial statements and the amount of the loss can be reasonably estimated. The amount recognized is subject to estimates and management’s judgment with respect to the likely outcome of each uncertain tax position. The amount that is ultimately incurred for an individual uncertain tax position or for all uncertain tax positions in the aggregate could differ from the amount recognized. |
Concentration Of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. The Company’s primary business activities include oil sales to a limited number of customers in the state of Kansas. The related trade receivables subject the Company to a concentration of credit risk. The Company sells a majority of its crude oil primarily to two customers in Kansas. Although management believes that customers could be replaced in the ordinary course of business, if the present customers were to discontinue business with the Company, it may have a significant adverse effect on the Company’s results of operations. Revenue from the top two purchasers accounted for 85.6% and 13.8% of total revenues for year ended December 31, 2018. Revenue from the top t wo purchasers accounted for 84.6% and 14.8% of total revenues for year ended December 31, 2017. As of December 31, 2018 and 2017, two of the Company’s oil purchasers accounted for 93.2% and 89.7% , respectively of accounts receivable, of which one oil purchaser accounted for 84.4% and 74.4% , respectively. The amounts above exclude revenues and accounts receivable associated with Discontinued Operations. (see Note 5. Discontinued Operations) |
Earnings Per Common Share | Earnings per Common Share The Company reports basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share which include the effect of all potentially dilutive securities unless their impact is anti-dilutive. The following are reconciliations of the numerators and denominators of the Company’s basic and diluted earnings per share, ( in thousands except for share and per share amounts): For the years ended December 31, 2018 2017 Income (numerator): Net income (loss) from continuing operations $ 442 $ (603) Net income from discontinued operations 1,127 29 Weighted average shares (denominator): Weighted average shares - basic 10,628,170 10,081,218 Dilution effect of share-based compensation, treasury method — — Weighted average shares - dilutive 10,628,170 10,081,218 Income (loss) per share – Basic and Dilutive: Continuing operations $ 0.04 $ (0.06) Discontinued operations $ 0.11 $ — O ptions issued to the Company’s directors in which the exercise price was higher than the average market price each quarter was also excluded from diluted shares as they would have been anti-dilutive (See Note 12. Stock and Stock Options). In addition, the shares that would be issued to employees and Company directors have also been excluded from this calculation. (See Note 9. Commitments and Contingencies) |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payables, accrued liabilities and long term debt approximates fair value as of December 31, 2018 and 2017. |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative instruments to manage our exposure to commodity price risk on sales of oil production. The Company does not enter into derivative instruments for speculative trading purposes. The Company presents the fair value of derivative contracts on a net basis where the right to offset is provided for in our counterparty agreements. As of December 31, 2018 and 2017, the Company did not have any open derivatives. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation with no effect on net income. |
Description Of Business And S_3
Description Of Business And Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Description Of Business And Significant Accounting Policies [Abstract] | |
Disaggregation Of Revenue | Year Ended Year Ended December 31, 2018 December 31, 2017 Revenue (in thousands): Crude oil $5,840 $4,653 Salt water disposal fees 31 30 Total $5,871 $4,683 |
Inventory | December 31, 2018 2017 Oil – carried at cost $ 359 $ 436 Equipment and materials – carried at market 105 105 Total inventory $ 464 $ 541 |
Accounts Receivable | December 31, 2018 2017 Revenue $ 396 $ 479 Tax 129 — Joint interest 8 23 Other — 29 Allowance for doubtful accounts — (14) Total accounts receivable $ 533 $ 517 |
Reconciliations Of The Numerators And Denominators On Basic And Diluted Earnings Per Share | For the years ended December 31, 2018 2017 Income (numerator): Net income (loss) from continuing operations $ 442 $ (603) Net income from discontinued operations 1,127 29 Weighted average shares (denominator): Weighted average shares - basic 10,628,170 10,081,218 Dilution effect of share-based compensation, treasury method — — Weighted average shares - dilutive 10,628,170 10,081,218 Income (loss) per share – Basic and Dilutive: Continuing operations $ 0.04 $ (0.06) Discontinued operations $ 0.11 $ — |
Oil And Gas Properties (Tables)
Oil And Gas Properties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Oil And Gas Properties [Abstract] | |
Schedule Of Oil And Gas Properties | December 31, 2018 2017 Oil and gas properties $ 6,503 $ 5,704 Unevaluated properties 23 — Accumulated depreciation, depletion and amortization (1,722) (984) Oil and gas properties, net $ 4,804 $ 4,720 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations [Abstract] | |
Schedule Of The Amounts In Net Loss From Discontinued Operations | 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 — 16 Discontinued operations included in current liabilities $ — $ 43 For the years ended December 31, 2018 2017 Revenues $ 6 $ 580 Production costs and taxes (40) (489) Depreciation, depletion, and amortization (4) (62) Interest income — — Gain on sale of assets 1,165 — Deferred income tax benefit — — Net income (loss) from discontinued operations $ 1,127 $ 29 |
Other Property And Equipment (T
Other Property And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Property And Equipment [Abstract] | |
Schedule Of Other Property And Equipment | Other property and equipment consisted of the following as of December 31, 2018: (in thousands) Depreciable Accumulated Net Book Type Life Gross Cost Depreciation Value Machinery and equipment 5 -7 yrs $ 20 $ 20 $ — Vehicles 2 -5 yrs 293 103 190 Other 5 yrs 63 63 — Total $ 376 $ 186 $ 190 Other property and equipment consisted of the following as of December 31, 2017: (in thousands) Depreciable Accumulated Net Book Type Life Gross Cost Depreciation Value Machinery and equipment 5 -7 yrs $ 20 $ 20 $ — Vehicles 2 -5 yrs 318 183 135 Other 5 yrs 63 63 — Total $ 401 $ 266 $ 135 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Long-Term Debt [Abstract] | |
Schedule Of Long-Term Debt | December 31, 2018 2017 Note payable to a bank, with interest only payment until maturity. $ — $ — Installment notes bearing interest at the rate of 5.0% to 6.5% per annum collateralized by vehicles with monthly payments including interest, insurance and maintenance of approximately $10 124 90 Total long-term debt 124 90 Less current maturities (51) (41) Long-term debt, less current maturities $ 73 $ 49 |
Schedule Of Future Debt Payments | 2019 2020 2021 Total Bank Credit Facility $ — $ — $ — $ — Company Vehicles $ 51 $ 47 $ 26 $ 124 Total $ 51 $ 47 $ 26 $ 124 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligation Transactions | Balance December 31, 2016 $ 2,046 Accretion expense 141 Liabilities incurred 1 Liabilities settled (45) Liabilities sold properties (11) Revisions in estimated liabilities 138 Balance December 31, 2017 $ 2,270 Accretion expense 141 Liabilities incurred 7 Liabilities settled (41) Revisions in estimated liabilities (198) Balance December 31, 2018 $ 2,179 |
Stock And Stock Options (Tables
Stock And Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stock And Stock Options [Abstract] | |
Schedule Of Stock Option Activity | 2018 2017 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Outstanding, beginning of year 30,000 $ 3.73 37,500 $ 4.70 Granted — $ — — $ — Exercised — $ — — $ — Expired/cancelled (13,125) $ 4.43 (7,500) $ 8.40 Outstanding, end of year 16,875 $ 3.18 30,000 $ 3.73 Exercisable, end of year 16,875 $ 3.18 30,000 $ 3.73 |
Schedule Of Stock Options Outstanding And Exercisable | Weighted Average Exercise Price Options Outstanding (shares) Weighted Average Remaining Contractual Life (years) Options Exercisable (shares) $ 4.10 1,875 — 1,875 $ 4.80 1,875 0.2 1,875 $ 4.40 1,875 0.5 1,875 $ 4.40 1,875 0.8 1,875 $ 2.50 1,875 1.0 1,875 $ 2.30 1,875 1.2 1,875 $ 2.70 1,875 1.5 1,875 $ 2.20 1,875 1.8 1,875 $ 1.20 1,875 2.0 1,875 16,875 16,875 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Reconciliation Of The Statutory U.S. Federal Income Tax And The Income Tax Provision | Year Ended December 31, 2018 Total Statutory rate 21 % Tax (benefit) expense at statutory rate $ 326 State income tax (benefit) expense 95 Permanent difference 1 Return to provision 152 Net change in deferred tax asset valuation allowance (591) Total income tax provision (benefit) $ (17) Year Ended December 31, 2017 Total Statutory rate 34 % Tax (benefit) expense at statutory rate $ (278) State income tax (benefit) expense (42) Permanent difference 1 Impact of 2017 Tax Act 5,319 Other 14 Net change in deferred tax asset valuation allowance (5,256) Total income tax provision (benefit) $ (242) |
Schedule Of Deferred Tax Assets And Liabilities | Year Ended December 31, 2018 2017 Net deferred tax assets – current : Bad debt $ — $ — Valuation allowance — — Total deferred tax assets – current $ — $ — Net deferred tax assets (liabilities) – noncurrent: Net operating loss carryforwards $ 9,675 $ 8,187 Oil and gas properties 1,327 2,735 Property, Plant and Equipment (163) 419 Asset retirement obligation 592 616 Tax credits 130 260 Miscellaneous 45 92 Valuation allowance (11,476) (12,067) Total deferred tax assets – noncurrent $ 130 $ 242 Net deferred tax asset $ 130 $ 242 |
Quarterly Data And Share Info_2
Quarterly Data And Share Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Data And Share Information [Abstract] | |
Schedule Of Quarterly Data | Fiscal Year Ended 2018 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Revenues $ 1,367 $ 1,475 $ 1,654 $ 1,375 Net income (loss) from continuing operations 133 99 298 (88) Income (loss) per common share from continuing operations $ 0.01 $ 0.01 $ 0.03 $ (0.01) Fiscal Year Ended 2017 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Revenues $ 1,209 $ 1,138 $ 1,035 $ 1,301 Net income (loss) from continuing operations (170) (230) (361) 158 Income (loss) per common share from continuing operations $ (0.02) $ (0.02) $ (0.03) $ 0.01 |
Supplemental Oil And Gas Info_2
Supplemental Oil And Gas Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Oil And Gas Information [Abstract] | |
Schedule Of Capitalized Costs Related To Oil And Gas Producing Activities | Years Ended December 31, 2018 2017 Proved oil and gas properties $ 6,503 $ 5,704 Unproved properties 23 — Total proved and unproved oil and gas properties $ 6,526 $ 5,704 Less accumulated depreciation, depletion and amortization (1,722) (984) Net oil and gas properties $ 4,804 $ 4,720 |
Schedule Of Oil And Gas Property Acquisition, Exploration And Development | Years Ended December 31, 2018 2017 Property acquisitions proved $ 164 $ — Property acquisitions unproved 23 93 Exploration cost 590 69 Development cost 243 — Total $ 1,020 $ 162 |
Schedule Of Results Of Operations From Oil And Gas Producing Activities | Years Ended December 31, 2018 2017 Revenues $ 5,871 $ 4,683 Production costs and taxes (3,591) (3,444) Depreciation, depletion and amortization (722) (796) Income (loss) from oil and gas producing activities $ 1,558 $ 443 |
Schedule Of Net Proved Oil And Gas Reserves And The Changes In Net Proved Oil And Gas Reserves | Oil (MBbl) Gas (MMcf) MBOE Proved reserves at December 31, 2016 730 — 730 Revisions of previous estimates 195 — 195 Improved recovery — — — Purchase of reserves in place — — — Extensions and discoveries 47 — 47 Production (102) — (102) Sales of reserves in place — — — Proved reserves at December 31, 2017 870 — 870 Revisions of previous estimates 223 — 223 Improved recovery — — — Purchase of reserves in place 13 — 13 Extensions and discoveries 86 — 86 Production (98) — (98) Sales of reserves in place — — — Proved reserves at December 31, 2018 1,094 — 1,094 Proved developed reserves at: December 31, 2016 730 — 730 December 31, 2017 832 — 832 December 31, 2018 976 — 976 Proved undeveloped reserves at: December 31, 2016 — — — December 31, 2017 38 — 38 December 31, 2018 118 — 118 |
Schedule Of Reserve Value By Category And The Respective Present Values, Before Income Taxes, Discounted At 10% As A Percentage Of Total Proved Reserves | Year Ended 12/31/2018 Year Ended 12/31/2017 Year Ended 12/31/2016 Oil Gas Total Oil Gas Total Oil Gas Total Total proved reserves year-end reserve report $ 13,976 — $ 13,976 $ 8,170 — $ 8,170 $ 5,815 — $ 5,815 Proved developed producing reserves (PDP) $ 12,534 — $ 12,534 $ 7,065 — $ 7,065 $ 5,397 — $ 5,397 % of PDP reserves to total proved reserves 90% — 90% 87% — 87% 93% — 93% Proved developed non- producing reserves $ 739 — $ 739 $ 1,082 — $ 1,082 $ 418 — $ 418 % of PDNP reserves to total proved reserves 5% — 5% 13% — 13% 7% — 7% Proved undeveloped reserves (PUD) $ 703 — $ 703 $ 23 — $ 23 $ — — $ — % of PUD reserves to total proved reserves 5% — 5% — — — — — — |
Schedule Of Standardized Measure Of Discounted Futures Net Cash Flows From Proved Oil And Gas Reserves | Years Ended December 31, 2018 2017 2016 Future cash inflows $ 65,871 $ 39,889 $ 27,253 Future production costs and taxes (35,877) (23,343) (16,270) Future development costs (2,833) (1,586) (553) Future income tax expenses — — — Future net cash flows 27,161 14,960 10,430 Discount at 10% for timing of cash flows (13,185) (6,790) (4,615) Standardized measure of discounted future net cash flows $ 13,976 $ 8,170 $ 5,815 |
Schedule Of Changes In The Standardized Measure Of Discounted Future Net Cash Flows From Proved Oil And Gas Reserves | Years Ended December 31, 2018 2017 2016 Balance, beginning of year $ 8,170 $ 5,815 $ 8,287 Sales, net of production costs and taxes (2,611) (1,239) (2,037) Discoveries and extensions, net of costs 798 123 35 Purchase of reserves in place 143 — — Sale of reserves in place — — (10) Net changes in prices and production costs 4,304 1,780 (863) Revisions of quantity estimates 2,180 1,611 (412) Previously estimated development cost incurred during the year 210 — — Changes in future development costs 78 (228) 196 Changes in timing and other (4) (164) (20) Accretion of discount 708 472 639 Net change in income taxes — — — Balance, end of year $ 13,976 $ 8,170 $ 5,815 |
Description Of Business And S_4
Description Of Business And Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)customer | Dec. 31, 2017USD ($) | Sep. 30, 2018USD ($) | |
Description Of Business And Significant Accounting Policies [Line Items] | |||
Material natural gas imbalances | $ 0 | $ 0 | |
Unevaluated properties | $ 23,000 | 0 | |
Current cost discount | 10.00% | ||
Stock based compensation | $ 23,000 | 14,000 | |
Federal net operating loss carryforwards | 35,600,000 | ||
Deferred tax asset | $ 130,000 | 242,000 | |
Customers | customer | 2 | ||
Write-off for accounts receivable-related party, allowance for doubtful accounts | $ 159,000 | ||
Impairment | 0 | 0 | |
Accounts receivable - noncurrent | 130,000 | 242,000 | |
Accounts receivable | 533,000 | $ 517,000 | |
Increased accounts receivable, current | 8,000 | ||
Increased accounts receivable, noncurrent | $ 9,000 | ||
Customer A [Member] | Revenue [Member] | |||
Description Of Business And Significant Accounting Policies [Line Items] | |||
Customer's percentage of revenue | 85.60% | 84.60% | |
Customer B [Member] | Revenue [Member] | |||
Description Of Business And Significant Accounting Policies [Line Items] | |||
Customer's percentage of revenue | 13.80% | ||
Customer C [Member] | Revenue [Member] | |||
Description Of Business And Significant Accounting Policies [Line Items] | |||
Customer's percentage of revenue | 14.80% | ||
Two Customers [Member] | Accounts Receivable [Member] | |||
Description Of Business And Significant Accounting Policies [Line Items] | |||
Customer's percentage of revenue | 93.20% | 89.70% | |
Customer D [Member] | Accounts Receivable [Member] | |||
Description Of Business And Significant Accounting Policies [Line Items] | |||
Customer's percentage of revenue | 84.40% | 74.40% | |
Restatement Adjustment [Member] | |||
Description Of Business And Significant Accounting Policies [Line Items] | |||
Accounts receivable | $ 121,000 |
Description Of Business And S_5
Description Of Business And Significant Accounting Policies (Disaggregation Of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 5,871 | $ 4,683 |
Crude Oil [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,840 | 4,653 |
Salt Water Disposal Fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 31 | $ 30 |
Description Of Business And S_6
Description Of Business And Significant Accounting Policies (Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Description Of Business And Significant Accounting Policies [Abstract] | ||
Oil - carried at cost | $ 359 | $ 436 |
Equipment and materials - carried at market | 105 | 105 |
Total inventory | $ 464 | $ 541 |
Description Of Business And S_7
Description Of Business And Significant Accounting Policies (Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ 0 | $ (14) |
Total accounts receivable | 533 | 517 |
Revenue [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 396 | 479 |
Tax [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 129 | |
Joint Interest [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 8 | 23 |
Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 29 |
Description Of Business And S_8
Description Of Business And Significant Accounting Policies (Reconciliations Of The Numerators And Denominators On Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Common Share [Abstract] | ||||||||||
Net income (loss) from continuing operations | $ (88) | $ 298 | $ 99 | $ 133 | $ 158 | $ (361) | $ (230) | $ (170) | $ 442 | $ (603) |
Net income from discontinued operations | $ 1,127 | $ 29 | ||||||||
Weighted average shares - basic | 10,628,170 | 10,081,218 | ||||||||
Weighted average shares - dilutive | 10,628,170 | 10,081,218 | ||||||||
Continuing operations | $ 0.04 | $ (0.06) | ||||||||
Discontinued operations | $ 0.11 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Narrative) (Details) | Jan. 01, 2019USD ($) |
Subsequent Event [Member] | Accounting Standards Update 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease, Right-of-use asset | $ 100,000 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | Dec. 18, 2007 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 29, 2018 |
Related Party Transaction [Line Items] | |||||
Working interest percent | 15.00% | ||||
Related party allowance for doubtful accounts receivable | $ 0 | $ 0 | $ 14,000 | ||
Accounts receivable-related party, allowance for doubtful accounts | 0 | 0 | 159,000 | ||
Accounts receivable - related parties balance | |||||
Other income | 159,000 | ||||
Payments to acquire interest in the drilling program wells | 134,690 | ||||
Methane Project [Member] | |||||
Related Party Transaction [Line Items] | |||||
Percent of net profits, interest | 7.50% | ||||
Hoactzin Partners, L.P. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related parties accounts payable | $ 159,000 | ||||
Past due related parties accounts payable | 159,000 | ||||
Accounts receivable-related party, allowance for doubtful accounts | 159,000 | ||||
Hoactzin Partners, L.P. [Member] | Methane Project [Member] | |||||
Related Party Transaction [Line Items] | |||||
Net profits | $ 0 | ||||
Related Party [Member] | Hoactzin Partners, L.P. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable - related parties balance | $ 0 | $ 0 | $ 159 |
Oil And Gas Properties (Narrati
Oil And Gas Properties (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Oil And Gas Properties [Abstract] | ||
Depletion expense | $ 722,000 | $ 796,000 |
Oil And Gas Properties (Schedul
Oil And Gas Properties (Schedule Of Oil And Gas Properties) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Oil And Gas Properties [Abstract] | ||
Oil and gas properties | $ 6,503 | $ 5,704 |
Unevaluated properties | 23 | |
Accumulated depreciation, depletion and amortization | (1,722) | (984) |
Oil and gas properties, net | $ 4,804 | $ 4,720 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of The Amounts In Net Loss From Discontinued Operations) (Details) - USD ($) $ in Thousands | Jan. 26, 2018 | Dec. 31, 2018 | 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 | 43 | ||
Net income (loss) from discontinued operations | $ 1,127 | 29 | |
Sale of methane facility assets | $ 2,650 | ||
Discontinued Operations [Member] | Methane Facilities [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
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 | 16 | ||
Discontinued operations included in current liabilities | 43 | ||
Revenues | 6 | 580 | |
Production costs and taxes | (40) | (489) | |
Depreciation, depletion, and amortization | (4) | (62) | |
Gain on sale of assets | 1,165 | ||
Net income (loss) from discontinued operations | $ 1,127 | $ 29 |
Other Property And Equipment (S
Other Property And Equipment (Schedule Of Other Property And Equipment) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Gross Cost | $ 376,000 | $ 401,000 |
Accumulated depreciation | 186,000 | 266,000 |
Manufactured Methane facilities, net | 190,000 | 135,000 |
Depreciation expense | 73,000 | 66,000 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross Cost | 20,000 | 20,000 |
Accumulated depreciation | 20,000 | 20,000 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross Cost | 293,000 | 318,000 |
Accumulated depreciation | 103,000 | 183,000 |
Manufactured Methane facilities, net | $ 190,000 | $ 135,000 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 5 years | 5 years |
Gross Cost | $ 63,000 | $ 63,000 |
Accumulated depreciation | $ 63,000 | $ 63,000 |
Minimum [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 5 years | 5 years |
Minimum [Member] | Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 2 years | 2 years |
Maximum [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 7 years | 7 years |
Maximum [Member] | Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life | 5 years | 5 years |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Aug. 24, 2018USD ($) | Mar. 21, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||
Credit facility amount outstanding | $ 0 | $ 0 | ||
Prosperity Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility maturity date | Jul. 31, 2020 | |||
Rate above prime | 0.50% | 0.50% | ||
Interest rate | 5.50% | 5.00% | 6.00% | |
Credit facility maximum borrowing capacity | $ 2,740,000 | $ 2,000,000 | $ 50,000,000 | |
Credit facility current borrowing capacity | $ 3,000,000 | 2,740,000 | ||
Credit facility amount outstanding | 0 | |||
Credit limit | 2,740,000 | |||
Prosperity Bank [Member] | Loans And Letters Of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility maximum borrowing capacity | $ 50,000,000 | |||
Maximum [Member] | Prosperity Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Funded debt to EBITDA | 3.5 | |||
Minimum [Member] | Prosperity Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Current ratio | 1 | |||
Interest coverage | 3 |
Long-Term Debt (Schedule Of Lon
Long-Term Debt (Schedule Of Long-term Debt) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | ||
Installment notes bearing interest at the rate of 5.0% to 6.5% per annum collateralized by vehicles with monthly payments including interest, insurance and maintenance of approximately $10 | $ 124,000 | $ 90,000 |
Total long-term debt | 124,000 | 90,000 |
Less current maturities | (51,000) | (41,000) |
Long-term debt, less current maturities | 73,000 | $ 49,000 |
Periodic payments including interest, insurance and maintenance | $ 10 | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate per annum | 6.50% | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate per annum | 5.00% |
Long-Term Debt (Schedule Of Fut
Long-Term Debt (Schedule Of Future Debt Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Long-Term Debt [Line Items] | ||
2019 | $ 51 | |
2020 | 47 | |
2021 | 26 | |
Total long-term debt | 124 | $ 90 |
Company Vehicles [Member] | ||
Long-Term Debt [Line Items] | ||
2019 | 51 | |
2020 | 47 | |
2021 | 26 | |
Total long-term debt | $ 124 |
Liquidity (Narrative) (Details)
Liquidity (Narrative) (Details) - USD ($) | Jan. 26, 2018 | Jan. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 24, 2018 | Mar. 21, 2018 |
Liquidity [Line Items] | ||||||
Net loss from operations | $ 1,569,000 | $ (574,000) | ||||
Sale of methane facility assets | $ 2,650,000 | |||||
Proceeds from sale of oil and gas properties | 7,000 | $ 7,000 | ||||
Prosperity Bank [Member] | ||||||
Liquidity [Line Items] | ||||||
Credit facility current borrowing capacity | 2,740,000 | $ 3,000,000 | ||||
Current funds drawn | 0 | |||||
Credit facility maximum borrowing capacity | $ 50,000,000 | $ 2,740,000 | $ 2,000,000 | |||
Methane Facilities [Member] | ||||||
Liquidity [Line Items] | ||||||
Proceeds from sale of oil and gas properties | $ 2,650,000 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) | 12 Months Ended | 48 Months Ended | |
Dec. 31, 2018USD ($)$ / shares$ / bblshares | Dec. 31, 2018USD ($)$ / shares | Sep. 30, 2012USD ($) | |
Loss Contingencies [Line Items] | |||
Cost reduction | $ 424,000 | ||
Cost reduction paid into common stock | $ 95,000 | ||
Shares issued for services | shares | 100,000 | ||
Share price | $ / shares | $ 0.95 | $ 0.95 | |
Period of trailing average of WTI | 30 days | ||
Incidence Of Non-Compliance [Member] | |||
Loss Contingencies [Line Items] | |||
Maximum potential loss | $ 386,000 | ||
Minimum [Member] | West Texas Intermediate [Member] | |||
Loss Contingencies [Line Items] | |||
Compensation reduction | $ / bbl | 70 | ||
Compensation reimbursement | $ / bbl | 85 |
Asset Retirement Obligation (As
Asset Retirement Obligation (Asset Retirement Obligation Transactions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation [Abstract] | ||
Balance | $ 2,270 | $ 2,046 |
Accretion expense | 141 | 141 |
Liabilities incurred | 7 | 1 |
Liabilities settled | (41) | (45) |
Liabilities sold properties | (11) | |
Revisions in estimated liabilities | (198) | 138 |
Balance | $ 2,179 | $ 2,270 |
Stock And Stock Options (Narrat
Stock And Stock Options (Narrative) (Details) | Mar. 21, 2016 | Feb. 01, 2008shares | Mar. 28, 2019USD ($) | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Oct. 25, 2000shares |
Stock Options [Line Items] | ||||||
Number of shares that may be granted | 7,000,000 | |||||
Number of additional shares that may be granted | 3,500,000 | |||||
Stock Incentive Plan term | 10 years | |||||
Purchase price floor of fair market value | 85.00% | |||||
Stock based compensation | $ | $ 23,000 | $ 14,000 | ||||
Reverse stock split | 0.1 | |||||
Common stock, shares issued | 10,639,290 | 10,619,924 | ||||
Directors And CEO [Member] | ||||||
Stock Options [Line Items] | ||||||
Stock based compensation | $ | $ 23,000 | $ 14,000 | ||||
Common stock, shares issued | 19,366 | 23,503 | ||||
Four Non-Executive Directors [Member] | ||||||
Stock Options [Line Items] | ||||||
Number of additional shares that may be granted | 0 | 0 | ||||
Voluntary Resignation [Member] | ||||||
Stock Options [Line Items] | ||||||
Stock Incentive Plan exercisable period | 3 months | |||||
Subsequent Event [Member] | Directors And CEO [Member] | ||||||
Stock Options [Line Items] | ||||||
Stock based compensation | $ | $ 4,714 |
Stock And Stock Options (Schedu
Stock And Stock Options (Schedule Of Stock Option Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Stock And Stock Options [Abstract] | ||
Shares, Outstanding beginning of year | 30,000 | 37,500 |
Shares, Granted | ||
Shares, Exercised | ||
Shares, Expired/cancelled | (13,125) | (7,500) |
Shares, Outstanding end of year | 16,875 | 30,000 |
Weighted Average Exercise Price, Outstanding beginning of year | $ 3.73 | $ 4.70 |
Weighted Average Exercise Price, Granted | ||
Weighted Average Exercise Price, Exercised | ||
Weighted Average Exercise Price, Expired/cancelled | 4.43 | 8.40 |
Weighted Average Exercise Price, Outstanding end of year | $ 3.18 | $ 3.73 |
Exercisable, end of year, Shares | 16,875 | 30,000 |
Exercisable, end of year, Weighted Average Exercise Price | $ 3.18 | $ 3.73 |
Stock And Stock Options (Sche_2
Stock And Stock Options (Schedule Of Stock Options Outstanding And Exercisable) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Exercise Price | $ 3.18 | $ 3.73 | $ 4.70 |
Options Outstanding | 16,875 | 30,000 | 37,500 |
Options Exercisable | 16,875 | ||
$4.10 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Exercise Price | $ 4.10 | ||
Options Outstanding | 1,875 | ||
Weighted Average Remaining Contractual Life | 0 years | ||
Options Exercisable | 1,875 | ||
$4.80 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Exercise Price | $ 4.80 | ||
Options Outstanding | 1,875 | ||
Weighted Average Remaining Contractual Life | 2 months 12 days | ||
Options Exercisable | 1,875 | ||
$4.40 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Exercise Price | $ 4.40 | ||
Options Outstanding | 1,875 | ||
Weighted Average Remaining Contractual Life | 6 months | ||
Options Exercisable | 1,875 | ||
$4.40 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Exercise Price | $ 4.40 | ||
Options Outstanding | 1,875 | ||
Weighted Average Remaining Contractual Life | 9 months 18 days | ||
Options Exercisable | 1,875 | ||
$2.50 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Exercise Price | $ 2.50 | ||
Options Outstanding | 1,875 | ||
Weighted Average Remaining Contractual Life | 1 year | ||
Options Exercisable | 1,875 | ||
$2.30 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Exercise Price | $ 2.30 | ||
Options Outstanding | 1,875 | ||
Weighted Average Remaining Contractual Life | 1 year 2 months 12 days | ||
Options Exercisable | 1,875 | ||
$2.70 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Exercise Price | $ 2.70 | ||
Options Outstanding | 1,875 | ||
Weighted Average Remaining Contractual Life | 1 year 6 months | ||
Options Exercisable | 1,875 | ||
$2.20 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Exercise Price | $ 2.20 | ||
Options Outstanding | 1,875 | ||
Weighted Average Remaining Contractual Life | 1 year 9 months 18 days | ||
Options Exercisable | 1,875 | ||
$1.20 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Exercise Price | $ 1.20 | ||
Options Outstanding | 1,875 | ||
Weighted Average Remaining Contractual Life | 2 years | ||
Options Exercisable | 1,875 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||
Valuation allowance | $ 11,476,000 | $ 12,067,000 |
Provision or benefit for income taxes | (17,000) | (242,000) |
Federal net operating loss carryforwards | 35,600,000 | |
Deferred tax asset | $ 130,000 | $ 242,000 |
Federal tax rate | 21.00% | 34.00% |
Refundable credits | $ 260,000 | |
Decrease in deferred tax asset | 5,300,000 | |
Accounts receivable - noncurrent | 130,000 | $ 242,000 |
Tax Period Between 2019 And 2037 [Member] | ||
Income Taxes [Line Items] | ||
Federal net operating loss carryforwards | 34,600,000 | |
Indefinite Tax Period [Member] | ||
Income Taxes [Line Items] | ||
Federal net operating loss carryforwards | $ 1,000,000 | |
Accounting Standards Update 2016-09 [Member] | ||
Income Taxes [Line Items] | ||
Increase to retained earnings | $ 687,000 | |
Minimum [Member] | Tax Period Between 2019 And 2037 [Member] | ||
Income Taxes [Line Items] | ||
Federal net operating loss carryforwards expiration between, years | Jan. 1, 2019 | |
Maximum [Member] | Tax Period Between 2019 And 2037 [Member] | ||
Income Taxes [Line Items] | ||
Federal net operating loss carryforwards expiration between, years | Dec. 31, 2037 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of The Statutory U.S. Federal Income Tax And The Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | ||
Statutory rate | 21.00% | 34.00% |
Tax (benefit) expense at statutory rate | $ 326 | $ (278) |
State income tax (benefit) expense | 95 | (42) |
Permanent difference | 1 | 1 |
Return to provision | 152 | |
Impact of 2017 Tax Act | 5,319 | |
Other | 14 | |
Net change in deferred tax asset valuation allowance | (591) | (5,256) |
Total income tax provision (benefit) | $ (17) | $ (242) |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes [Abstract] | ||
Bad debt | ||
Valuation allowance | ||
Total deferred tax assets - current | ||
Net operating loss carryforwards | 9,675 | 8,187 |
Oil and gas properties | 1,327 | 2,735 |
Property, Plant and Equipment | 419 | |
Property, Plant and Equipment | (163) | |
Asset retirement obligation | 592 | 616 |
Tax credits | 130 | 260 |
Miscellaneous | 45 | 92 |
Valuation allowance | (11,476) | (12,067) |
Total deferred tax assets - noncurrent | 130 | 242 |
Net deferred tax asset | $ 130 | $ 242 |
Quarterly Data And Share Info_3
Quarterly Data And Share Information (Schedule Of Quarterly Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Data And Share Information [Abstract] | ||||||||||
Revenues | $ 1,375 | $ 1,654 | $ 1,475 | $ 1,367 | $ 1,301 | $ 1,035 | $ 1,138 | $ 1,209 | $ 5,871 | $ 4,683 |
Net income (loss) from continuing operations | $ (88) | $ 298 | $ 99 | $ 133 | $ 158 | $ (361) | $ (230) | $ (170) | $ 442 | $ (603) |
Income (loss) per common share from continuing operations | $ (0.01) | $ 0.03 | $ 0.01 | $ 0.01 | $ 0.01 | $ (0.03) | $ (0.02) | $ (0.02) |
Supplemental Oil And Gas Info_3
Supplemental Oil And Gas Information (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2018item$ / bbl | Dec. 31, 2017item$ / bbl | Dec. 31, 2016item$ / bbl | Dec. 31, 2015item | |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ||||
Proved undeveloped reserve locations | item | 7 | 3 | 0 | 0 |
Barrel Of Oil [Member] | ||||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ||||
Price | $ / bbl | 60.21 | 45.83 | 37.35 |
Supplemental Oil And Gas Info_4
Supplemental Oil And Gas Information (Schedule Of Capitalized Costs Related To Oil And Gas Producing Activities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Supplemental Oil And Gas Information [Abstract] | ||
Proved oil and gas properties | $ 6,503 | $ 5,704 |
Unproved properties | 23 | |
Total proved and unproved oil and gas properties | 6,526 | 5,704 |
Less accumulated depreciation, depletion and amortization | (1,722) | (984) |
Net oil and gas properties | $ 4,804 | $ 4,720 |
Supplemental Oil And Gas Info_5
Supplemental Oil And Gas Information (Schedule Of Oil And Gas Property Acquisition, Exploration And Development) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Oil And Gas Information [Abstract] | ||
Property acquisitions proved | $ 164 | |
Property acquisitions unproved | 23 | $ 93 |
Exploration cost | 590 | 69 |
Development cost | 243 | |
Total | $ 1,020 | $ 162 |
Supplemental Oil And Gas Info_6
Supplemental Oil And Gas Information (Schedule Of Results Of Operations From Oil And Gas Producing Activities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Oil And Gas Information [Abstract] | ||
Revenues | $ 5,871 | $ 4,683 |
Production costs and taxes | (3,591) | (3,444) |
Depreciation, depletion and amortization | (722) | (796) |
Income (loss) from oil and gas producing activities | $ 1,558 | $ 443 |
Supplemental Oil And Gas Info_7
Supplemental Oil And Gas Information (Schedule Of Net Proved Oil And Gas Reserves And The Changes In Net Proved Oil And Gas Reserves) (Details) | 12 Months Ended | ||
Dec. 31, 2018MBoeMMcfMBbls | Dec. 31, 2017MBoeMMcfMBbls | Dec. 31, 2016MBoeMMcfMBbls | |
Reserve Quantities [Line Items] | |||
Proved reserves | 870 | 730 | |
Revisions of previous estimates | 223 | 195 | |
Improved recovery | |||
Purchase of reserves in place | 13 | ||
Extensions and discoveries | 86 | 47 | |
Production | (98) | (102) | |
Sales of reserves in place | |||
Proved reserves | 1,094 | 870 | 730 |
Proved developed reserves (equivalent) | MBoe | 976 | 832 | 730 |
Proved undeveloped reserves (equivalent) | MBoe | 118 | 38 | |
Oil [Member] | |||
Reserve Quantities [Line Items] | |||
Proved reserves | 870 | 730 | |
Revisions of previous estimates | 223 | 195 | |
Improved recovery | |||
Purchase of reserves in place | 13 | ||
Extensions and discoveries | 86 | 47 | |
Production | (98) | (102) | |
Sales of reserves in place | |||
Proved reserves | 1,094 | 870 | 730 |
Proved developed reserves (volume) | 976 | 832 | 730 |
Proved undeveloped reserves (volume) | 118 | 38 | |
Gas [Member] | |||
Reserve Quantities [Line Items] | |||
Proved reserves | MMcf | |||
Revisions of previous estimates | MMcf | |||
Improved recovery | MMcf | |||
Purchase of reserves in place | MMcf | |||
Extensions and discoveries | MMcf | |||
Production | MMcf | |||
Sales of reserves in place | MMcf | |||
Proved reserves | MMcf | |||
Proved developed reserves (volume) | MMcf | |||
Proved undeveloped reserves (volume) | MMcf |
Supplemental Oil And Gas Info_8
Supplemental Oil And Gas Information (Schedule Of Reserve Value By Category And The Respective Present Values, Before Income Taxes, Discounted At 10% As A Percentage Of Total Proved Reserves) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reserve Quantities [Line Items] | |||
Total proved reserves year-end reserve report | $ 13,976 | $ 8,170 | $ 5,815 |
Proved developed producing reserves (PDP) | $ 12,534 | $ 7,065 | $ 5,397 |
% of PDP reserves to total proved reserves | 90.00% | 87.00% | 93.00% |
Proved developed non-producing reserves | $ 739 | $ 1,082 | $ 418 |
% of PDNP reserves to total proved reserves | 5.00% | 13.00% | 7.00% |
Proved undeveloped reserves (PUD) | $ 703 | $ 23 | |
% of PUD reserves to total proved reserves | 5.00% | ||
Oil [Member] | |||
Reserve Quantities [Line Items] | |||
Total proved reserves year-end reserve report | $ 13,976 | 8,170 | $ 5,815 |
Proved developed producing reserves (PDP) | $ 12,534 | $ 7,065 | $ 5,397 |
% of PDP reserves to total proved reserves | 90.00% | 87.00% | 93.00% |
Proved developed non-producing reserves | $ 739 | $ 1,082 | $ 418 |
% of PDNP reserves to total proved reserves | 5.00% | 13.00% | 7.00% |
Proved undeveloped reserves (PUD) | $ 703 | $ 23 | |
% of PUD reserves to total proved reserves | 5.00% |
Supplemental Oil And Gas Info_9
Supplemental Oil And Gas Information (Schedule Of Standardized Measure Of Discounted Futures Net Cash Flows From Proved Oil And Gas Reserves) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Supplemental Oil And Gas Information [Abstract] | ||||
Future cash inflows | $ 65,871 | $ 39,889 | $ 27,253 | |
Future production costs and taxes | (35,877) | (23,343) | (16,270) | |
Future development costs | (2,833) | (1,586) | (553) | |
Future net cash flows | 27,161 | 14,960 | 10,430 | |
Discount at 10% for timing of cash flows | (13,185) | (6,790) | (4,615) | |
Standardized measure of discounted future net cash flows | $ 13,976 | $ 8,170 | $ 5,815 | $ 8,287 |
Supplemental Oil And Gas Inf_10
Supplemental Oil And Gas Information (Schedule Of Changes In The Standardized Measure Of Discounted Future Net Cash Flows From Proved Oil And Gas Reserves) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Oil And Gas Information [Abstract] | |||
Balance, beginning of year | $ 8,170 | $ 5,815 | $ 8,287 |
Sales, net of production costs and taxes | (2,611) | (1,239) | (2,037) |
Discoveries and extensions, net of costs | 798 | 123 | 35 |
Purchase of reserves in place | 143 | ||
Sale of reserves in place | (10) | ||
Net changes in prices and production costs | 4,304 | 1,780 | (863) |
Revisions of quantity estimates | 2,180 | 1,611 | (412) |
Previously estimated development cost incurred during the year | 210 | ||
Changes in future development costs | 78 | (228) | 196 |
Changes in timing and other | (4) | (164) | (20) |
Accretion of discount | 708 | 472 | 639 |
Net change in income taxes | |||
Balance, end of year | $ 13,976 | $ 8,170 | $ 5,815 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jan. 02, 2019 | Jan. 31, 2019 | Mar. 28, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||||
Stock based compensation | $ 23,000 | $ 14,000 | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Proceeds from sale of equipment inventory | $ 150,000 | ||||
Gain on sale of assets | $ 45,000 | ||||
Directors And CEO [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock based compensation | $ 23,000 | $ 14,000 | |||
Directors And CEO [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, New shares issued | 4,962 | ||||
Stock based compensation | $ 4,714 |