Evolution Petroleum (EPM) 10-Q 8 Nov 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2017	Nov. 05, 2017
Document and Entity Information
Entity Registrant Name	EVOLUTION PETROLEUM CORP
Entity Central Index Key	1,006,655
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		33,064,246

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets - USD ($)	Sep. 30, 2017	Jun. 30, 2017
Current assets
Cash and cash equivalents	$ 24,129,161	$ 23,028,153
Receivables	3,027,283	2,726,702
Prepaid expenses and other current assets	291,376	387,672
Total current assets	27,447,820	26,142,527
Oil and natural gas property and equipment, net (full-cost method of accounting)	60,901,957	61,790,068
Other property and equipment, net	36,418	40,689
Total property and equipment	60,938,375	61,830,757
Other assets	277,926	295,384
Total assets	88,664,121	88,268,668
Current liabilities
Accounts payable	2,032,076	1,992,416
Accrued liabilities and other	634,642	726,478
State and federal income taxes payable	370,745	0
Total current liabilities	3,037,463	2,718,894
Long term liabilities
Deferred income taxes	15,845,804	15,826,291
Asset retirement obligations	1,275,207	1,253,628
Total liabilities	20,158,474	19,798,813
Commitments and contingencies (Note 15)
Stockholders’ equity
Common stock; par value $0.001; 100,000,000 shares authorized: issued and outstanding 33,066,717 shares and 33,087,308 as of September 30, 2017 and June 30, 2017, respectively	33,066	33,087
Additional paid-in capital	41,338,709	40,961,957
Retained earnings	27,133,872	27,474,811
Total stockholders’ equity	68,505,647	68,469,855
Total liabilities and stockholders’ equity	$ 88,664,121	$ 88,268,668

Consolidated Condensed Balance3

Consolidated Condensed Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Jun. 30, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	33,066,717	33,087,308
Common stock, shares issued	33,066,717	33,087,308

Consolidated Condensed Statemen

Consolidated Condensed Statements of Operations - USD ($)		3 Months Ended
		Sep. 30, 2017	Sep. 30, 2016
Revenues
Total revenues		$ 8,537,871	$ 7,593,940
Operating costs
Production costs		2,891,586	2,344,641
Depreciation, depletion and amortization		1,518,543	1,273,439
Accretion of discount on asset retirement obligations		21,579	13,224
General and administrative expenses	[1]	1,569,704	1,235,043
Total operating costs		6,001,412	4,866,347
Income from operations		2,536,459	2,727,593
Other
Gain on realized derivative instruments, net		0	90
Loss on unrealized derivative instruments, net		0	(14,132)
Interest and other income		14,850	12,745
Interest expense		(20,455)	(20,345)
Income before income taxes		2,530,854	2,705,951
Income tax provision		390,322	889,176
Net income attributable to the Company		2,140,532	1,816,775
Dividends on preferred stock		0	250,990
Deemed dividend on preferred shares called for redemption		0	1,002,440
Net income available to common stockholders		$ 2,140,532	$ 563,345
Earnings per common share
Basic (in dollars per share)		$ 0.06	$ 0.02
Diluted (in dollars per share)		$ 0.06	$ 0.02
Weighted average number of common shares
Basic (in shares)		33,089,244	32,957,010
Diluted (in shares)		33,147,508	33,007,599
Crude oil
Revenues
Total revenues		$ 7,829,255	$ 7,593,855
Natural gas liquids
Revenues
Total revenues		708,616	89
Natural gas
Revenues
Total revenues		$ 0	$ (4)
[1]	General and administrative expenses for the three months ended September 30, 2017 and 2016 included non-cash stock-based compensation expense of $487,484 and $311,688, respectively.

Consolidated Condensed Stateme5

Consolidated Condensed Statements of Operations (Parenthetical) - USD ($)	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Stock-based compensation expense	$ 487,484	$ 311,688
General and administrative expenses
Stock-based compensation expense	$ 487,484	$ 311,688

Consolidated Condensed Stateme6

Consolidated Condensed Statements of Cash Flows - USD ($)	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net income attributable to the Company	$ 2,140,532	$ 1,816,775
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	1,532,610	1,287,523
Stock-based compensation	487,484	311,688
Accretion of discount on asset retirement obligations	21,579	13,224
Settlements of asset retirement obligations	0	(15,899)
Deferred income taxes	19,513	708,673
Loss on derivative instruments, net	0	14,042
Changes in operating assets and liabilities:
Receivables	(300,581)	119,808
Prepaid expenses and other current assets	96,296	(21,365)
Accounts payable and accrued expenses	(166,904)	(2,235,240)
Income taxes payable	370,745	(524,772)
Net cash provided by operating activities	4,201,274	1,474,457
Cash flows from investing activities
Derivative settlement payments (paid) received	0	(318,708)
Capital expenditures for oil and natural gas properties	(508,042)	(4,818,816)
Capital expenditures for other property and equipment	0	(26,347)
Net cash used in investing activities	(508,042)	(5,163,871)
Cash flows from financing activities
Cash dividends to preferred stockholders	0	(168,575)
Cash dividends to common stockholders	(2,481,471)	(1,652,290)
Common share repurchases, including shares surrendered for tax withholding	(110,753)	(330,070)
Net cash used in financing activities	(2,592,224)	(2,150,935)
Net increase (decrease) in cash and cash equivalents	1,101,008	(5,840,349)
Cash and cash equivalents, beginning of period	23,028,153	34,077,060
Cash and cash equivalents, end of period	24,129,161	28,236,711
Supplemental disclosures of cash flow information:
Income taxes paid	0	787,366
Non-cash transactions:
Change in accounts payable used to acquire property and equipment	114,729	(2,030,485)
Accrued redemption of called preferred shares	0	7,932,975
Accrued preferred dividends through redemption date	$ 0	$ 82,415

Consolidated Condensed Stateme7

Consolidated Condensed Statement of Changes in Stockholders' Equity - 3 months ended Sep. 30, 2017 - USD ($)	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock
Beginning Balance at Jun. 30, 2017	$ 68,469,855	$ 33,087	$ 40,961,957	$ 27,474,811	$ 0
Beginning Balance (shares) at Jun. 30, 2017	33,087,308	33,087,308
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of restricted common stock (shares)		14,254
Issuance of restricted common stock	$ 0	$ 14	(14)
Forfeitures of restricted stock (shares)		(19,561)
Forfeitures of restricted stock		$ (20)	20
Common share repurchases, including shares surrendered for tax withholding (shares)		(15,284)
Common share repurchases, including shares surrendered for tax withholding	(110,753)				(110,753)
Retirements of treasury stock		$ (15)	(110,738)		110,753
Stock-based compensation	487,484		487,484
Net income attributable to the Company	2,140,532			2,140,532
Common stock cash dividends	(2,481,471)			(2,481,471)
Ending Balance at Sep. 30, 2017	$ 68,505,647	$ 33,066	$ 41,338,709	$ 27,133,872	$ 0
Ending Balance (shares) at Sep. 30, 2017	33,066,717	33,066,717

Organization and Basis of Prepa

Organization and Basis of Preparation	3 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Preparation	Organization and Basis of Preparation Nature of Operations. Evolution Petroleum Corporation ("EPM"), together with its subsidiaries (the "Company", "we", "our" or "us"), is an independent petroleum company headquartered in Houston, Texas and incorporated under the laws of the State of Nevada. We are engaged primarily in the development and production of oil and gas reserves. Interim Financial Statements. The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the appropriate rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. All adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the interim periods presented have been included. The interim financial information and notes hereto should be read in conjunction with the Company’s 2017 Annual Report on Form 10-K for the fiscal year ended June 30, 2017 , as filed with the SEC. The results of operations for interim periods are not necessarily indicative of results to be expected for a full fiscal year. Principles of Consolidation and Reporting. Our consolidated financial statements include the accounts of EPM and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements for the previous year may include certain reclassifications to conform to the current presentation. Any such reclassifications have no impact on previously reported net income or stockholders' equity. Use of Estimates. The preparation of financial statements in conformity with GAAP requires us 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 (a) 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, (b) asset retirement obligations, (c) stock-based compensation, (d) fair values of derivative assets and liabilities, (e) income taxes and the valuation of deferred tax assets and (f) 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. New Accounting Pronouncements. In August 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2015-14, which defers the effective date of ASU 2014-09 Revenue from Contracts with Customers (Topic 606) (" ASU 2014-09") by one year and allows entities the option to early adopt the new revenue standard as of the original effective date. Issued in May 2014, ASU 2014-09 provided guidance on revenue recognition on contracts with customers to transfer goods or services or on contracts for the transfer of nonfinancial assets. ASU 2014-09 requires that revenue recognition on contracts with customers depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public companies, ASU 2014-09 is now effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The standard provides for either the full retrospective or modified retrospective transition methods. We expect to adopt this standard using the modified retrospective method. The Company expects that additional disclosures will be required as a result of adopting ASU 2014-09 and is currently assessing the impact of the guidance on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). The pronouncement requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These changes become effective for fiscal years beginning after December 15, 2017. The expected adoption method of ASU 2016-01 is being evaluated by the Company and the adoption is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. On February 25, 2016, the FASB issued ASU 2016-02 , Leases (“ASU 2016-02”), which relates to the accounting for leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than twelve months. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance addresses eight specific cash flow issues for which current GAAP is either unclear or does not include specific guidance. This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years with early adoption permitted, provided that it is adopted in its entirety in the same period. Currently, the Company does not expect the impact of adopting ASU 2016-15 to have a material effect on its consolidated statements of cash flows.

Receivables

Receivables	3 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Receivables	Receivables As of September 30, 2017 and June 30, 2017 , our receivables consisted of the following: September 30, June 30, Receivables from oil and gas sales $ 3,027,247 $ 2,722,880 Other 36 3,822 Total receivables $ 3,027,283 $ 2,726,702

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	3 Months Ended
	Sep. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets As of September 30, 2017 and June 30, 2017 , our prepaid expenses and other current assets consisted of the following: September 30, June 30, Prepaid insurance $ 113,554 $ 169,416 Retainers and deposits 7,553 7,553 Prepaid federal and state income taxes 121,231 121,232 Other prepaid expenses 49,038 89,471 Prepaid expenses and other current assets $ 291,376 $ 387,672

Property and Equipment

Property and Equipment	3 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment As of September 30, 2017 and June 30, 2017 , our oil and natural gas properties and other property and equipment consisted of the following: September 30, June 30, Oil and natural gas properties Property costs subject to amortization $ 85,585,703 $ 84,962,933 Less: Accumulated depreciation, depletion, and amortization (24,683,746 ) (23,172,865 ) Unproved properties not subject to amortization — — Oil and natural gas properties, net $ 60,901,957 $ 61,790,068 Other property and equipment Furniture, fixtures, office equipment and other, at cost $ 135,377 $ 135,377 Less: Accumulated depreciation (98,959 ) (94,688 ) Other property and equipment, net $ 36,418 $ 40,689 During the three months ended September 30, 2017 , the Company incurred capital expenditures of $0.6 million for the Delhi field.

Other Assets

Other Assets	3 Months Ended
	Sep. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	Other Assets As of September 30, 2017 and June 30, 2017 , other assets consisted of the following: September 30, June 30, Royalty rights $ 108,512 $ 108,512 Less: Accumulated amortization of royalty rights (23,737 ) (20,346 ) Investment in Well Lift Inc., at cost 108,750 108,750 Deferred loan costs 168,972 168,972 Less: Accumulated amortization of deferred loan costs (84,571 ) (70,504 ) Other assets, net $ 277,926 $ 295,384 The Company accounts for its investment in Well Lift Inc. using the cost method under which any return of capital reduces our cost basis in the investment and any dividends paid are recorded as income. Investment value is evaluated for impairment at least quarterly or when management identifies any events or changes in circumstances that might have a significant adverse effect on the fair value of the investment. There is no published market value for this private investment, so it is not practicable to value it at fair market value on a periodic basis.

Accrued Liabilities and Other

Accrued Liabilities and Other	3 Months Ended
	Sep. 30, 2017
Other Liabilities, Current [Abstract]
Accrued Liabilities and Other	Accrued Liabilities and Other As of September 30, 2017 and June 30, 2017 , our other current liabilities consisted of the following: September 30, June 30, Accrued incentive and other compensation $ 143,802 $ 413,113 Accrued severance payments 90,800 — Asset retirement obligations due within one year 35,115 35,115 Accrued royalties, including suspended accounts 11,524 17,708 Accrued franchise taxes 191,362 150,062 Accrued ad valorem taxes 162,039 108,639 Other accrued liabilities — 1,841 Accrued liabilities and other $ 634,642 $ 726,478

Asset Retirement Obligations

Asset Retirement Obligations	3 Months Ended
	Sep. 30, 2017
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Asset Retirement Obligations 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 is a reconciliation of the beginning and ending asset retirement obligations for the three months ended September 30, 2017 and for the year ended June 30, 2017 : September 30, June 30, Asset retirement obligations — beginning of period $ 1,288,743 $ 962,196 Liabilities incurred — 52,792 Liabilities settled — (157,164 ) Liabilities sold — (47,817 ) Accretion of discount 21,579 59,664 Revision of previous estimates — 419,072 Asset retirement obligations — end of period $ 1,310,322 $ 1,288,743 Less current portion in accrued liabilities (35,115 ) (35,115 ) Long-term portion of asset retirement obligations $ 1,275,207 $ 1,253,628

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common Stock As of September 30, 2017 , we had 33,066,717 sh ares of common stock outstanding. Effective December 31, 2013, the Board of Directors initiated a quarterly cash dividend on our common stock at the rate of $0.10 per share per quarter. The rate was subsequently adjusted to $0.05 per share for the dividend payments from March 31, 2015 to September 30, 2016. During fiscal year 2017, the Board made two increases to the quarterly cash dividend resulting in rates of $0.065 per share for the December 31, 2016 dividend payment and $0.07 per share for the March 31, 2017 and June 30, 2017 dividend payments. The Board made a further increase to $0.075 per share for the September 30, 2017 dividend payment. We paid cash dividends of $2,481,471 ( $0.075 per share) and $1,652,290 ( $0.05 per share) to our common shareholders during the three months ended September 30, 2017 and 2016, respectively. On May 12, 2015, the Board of Directors approved a share repurchase program covering up to $5 million of the Company's common stock. Since commencing in June 2015, the Company spent $1,609,008 to repurchase 265,762 shares at an average price of $6.05 per share. There have been no shares repurchased in the open market since mid-December 2015. Under the program's terms, shares are repurchased only on the open market and in accordance with the requirements of the Securities and Exchange Commission. Such shares are initially recorded as treasury stock, then subsequently canceled. The timing and amount of repurchases depends upon several factors, including financial resources and market and business conditions. There is no fixed termination date for this repurchase program, and it may be suspended or discontinued at any time. During the three months ended September 30, 2017 and 2016, the Company acquired treasury stock from holders of newly vested stock-based awards to fund the recipients' payroll taxes paid in the quarter. Such shares were valued at fair market value on the date of vesting. The treasury shares were subsequently canceled. Three Months Ended 2017 2016 Number of treasury shares acquired 15,284 58,147 Average cost per share $ 7.25 $ 5.68 Total cost of treasury shares acquired $ 110,753 $ 330,070 Series A Cumulative Preferred Stock Called for Redemption On September 30, 2016, the Company announced the decision to redeem all 317,319 outstanding shares of its 8.5% Series A Cumulative Preferred Stock. The redemption occurred on November 14, 2016 at the stated value of $25.00 per share plus all accumulated and unpaid distributions, for an aggregate redemption cost of $7,932,975 . On September 30, 2016, in connection with the planned redemption, the Company recorded a deemed dividend of $1,002,440 , representing the difference between the redemption consideration paid and the historical net issuance proceeds of the preferred shares. Accordingly, net income was adjusted for this deemed dividend to determine net income attributable to common shareholders and earnings per common share. Dividends on the Series A Cumulative Preferred Stock were paid at a fixed rate of 8.5% per annum on the $25.00 per share liquidation preference, payable monthly. During the three months ended September 30, 2016 , we paid cash dividends of $168,575 to holders of our Series A Preferred Stock and accrued $82,415 of remaining dividends which were paid on the November redemption date. Expected Tax Treatment of Dividends For the fiscal year ended June 30, 2017, all preferred and common dividends were treated for tax purposes as qualified dividend income to recipients. Based on our current projections for the fiscal year ending June 30, 2018, we expect all common dividends for such period to be treated as qualified dividend income. Such projections are based on our reasonable expectations as of September 30, 2017 and are subject to change based on our final tax calculations at the end of the fiscal year.

Stock-Based Incentive Plan

Stock-Based Incentive Plan	3 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Incentive Plan	Stock-Based Incentive Plan At the December 8, 2016 annual meeting, the stockholders approved the adoption of the Evolution Petroleum Corporation 2016 Equity Incentive Plan (the “2016 Plan”), which replaced the Evolution Petroleum Corporation Amended and Restated 2004 Stock Plan (the "2004 Plan"). The 2016 Plan authorizes the issuance of 1,100,000 shares of common stock prior to its expiration on December 8, 2026. Incentives under the 2016 Plan may be granted to employees, directors and consultants of the Company in any one or a combination of the following forms: incentive stock options and non-statutory stock options, stock appreciation rights, restricted stock awards and restricted stock unit awards, performance share awards, performance cash awards, and other forms of incentives valued in whole or in part by reference to, or otherwise based on, our common stock, including its appreciation in value. As of September 30, 2017 , 1,100,000 shares were available for grant under the 2016 Plan. At September 30, 2017, there were no shares available for future grants under the 2004 Plan. All outstanding awards granted under the 2004 Plan continue to be subject to the terms and conditions as set forth in the agreements evidencing such awards and the terms of the 2004 Plan. Under these agreements, we have outstanding grants of restricted common stock awards ("Restricted Stock"), contingent restricted common stock awards ("Contingent Restricted Stock") to employees and directors of the Company. Restricted Stock and Contingent Restricted Stock Prior to August 28, 2014, all Restricted Stock grants contained a four -year vesting period based on service. Restricted Stock which vests based on service is valued at the fair market value on the date of grant and amortized over the service period. In August 2014, December 2015 and September 2016, the Company awarded grants of both Restricted Stock and Contingent Restricted Stock as part of its long-term incentive plan. Such grants, which expire after four years if unvested, contain service-based, performance-based and market-based vesting provisions. The common shares underlying the Restricted Stock grants were issued on the date of grant, whereas the Contingent Restricted Stock are reserved from the Plan, but will be issued only upon the attainment of specified performance-based or market-based vesting provisions. Performance-based grants vest upon the attainment of earnings, revenue and other operational goals and require that the recipient remain an employee or director of the Company through the vesting date. The Company recognizes compensation expense for performance-based awards ratably over the expected vesting period based on the grant date fair value when it is deemed probable, for accounting purposes, that the performance criteria will be achieved. The expected vesting period may be deemed to be shorter than the four -year term. As of September 30, 2017 , certain contingent performance-based awards were not considered probable of vesting for accounting purposes and no compensation expense has been recognized with regard to these awards. If these awards are later determined to be probable of vesting, cumulative compensation expense will be recorded at that time and amortization would continue over the remaining expected vesting period. Market-based awards granted in fiscal 2017 entitle employees to vest in a fixed number of shares when the three-year trailing total return on the Company’s common stock exceeds the corresponding total returns of various quartiles of an index consisting of sixteen designated peer companies in our industry with comparable market capitalizations on defined measurement dates. Market-based awards granted in fiscal 2015 and 2016 entitle employees to vest in a fixed number of shares when the three-year trailing total return on the Company’s common stock exceeds the corresponding total returns of various quartiles of companies comprising the SIG Exploration and Production Index (NASDAQ EPX) on defined measurement dates. The fair value and expected vesting period of these awards were determined using a Monte Carlo simulation based on the historical volatility of the Company's total return compared to the historical volatilities of the other companies in the index. During the fiscal year ended June 30, 2017, we granted market-based awards with grant date fair values ranging from $3.42 to $5.62 per share, all with an expected vesting period of 2.83 years, based on the various quartiles of comparative market performance. During the fiscal year ended June 30, 2016, we granted market-based awards with grant date fair values ranging from $2.93 to $5.07 per share, all with an expected vesting period of 3.83 years , based on the various quartiles of comparative market performance. During the fiscal year ended June 30, 2015, we granted market-based awards with grant date fair values ranging from $4.26 to $8.40 per share and with expected vesting periods of 3.30 years to 2.55 years , based on the various quartiles of comparative market performance. Compensation expense for market-based awards is recognized over the expected vesting period using the straight-line method, so long as the award holder remains an employee of the Company. Total compensation expense is based on the fair value of the awards at the date of grant and is independent of vesting or expiration of the awards, except for termination of service. Unvested Restricted Stock awards at September 30, 2017 consisted of the following: Number of Weighted Service-based awards 165,504 $ 6.98 Performance-based awards 50,360 5.67 Market-based awards 115,111 4.96 Unvested Restricted Stock at September 30, 2017 330,975 $ 6.08 The following table sets forth the Restricted Stock transactions for the three months ended September 30, 2017 : Number of Weighted Unamortized Compensation Expense at September 30, 2017 Weighted Average Remaining Amortization Period (Years) Unvested at July 1, 2017 391,624 $ 6.22 Vested (41,088 ) 7.37 Forfeited (19,561 ) 6.16 Unvested Restricted Stock at September 30, 2017 330,975 $ 6.08 $ 1,101,876 1.87 Unvested Contingent Restricted Stock awards at September 30, 2017 consisted of the following: Number of Weighted Performance-based awards 36,688 $ 7.04 Market-based awards 57,556 3.14 Unvested contingent shares at September 30, 2017 94,244 $ 4.66 The following table sets forth Contingent Restricted Stock transactions for the three months ended September 30, 2017 : Number of Weighted Unamortized Compensation Expense at September 30, 2017 (1) Weighted Average Remaining Amortization Period (Years) Unvested at July 1, 2017 113,270 $ 4.64 Vested (14,254 ) 4.26 Forfeited (4,772 ) 5.30 Unvested contingent shares at September 30, 2017 94,244 $ 4.66 $ 53,155 1.74 (1) Excludes $258,430 of potential future compensation expense for contingent performance-based awards for which vesting is not considered probable at this time for accounting purposes. Stock-based compensation expense related to Restricted Stock and Contingent Restricted Stock grants for the three months ended September 30, 2017 and 2016 was $487,484 and $311,688 , respectively.

Derivatives

Derivatives	3 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	Derivatives In June 2015, the Company began using derivative instruments to reduce its exposure to crude oil price volatility for a substantial portion of its near-term forecasted production. The Company's objectives for this program were to achieve a more predictable level of cash flows to support the Company’s capital expenditure program and to provide better financial visibility for the payment of dividends on common stock. The Company uses both fixed price swap agreements and costless collars to manage its exposure to crude oil price risk. While these derivative instruments are intended to limit the downside risk of adverse price movements, they may also limit future revenues from favorable price movements. The Company does not intend to enter into derivative instruments for speculative or trading purposes. The Company accounts for derivatives under the provisions of ASC 815 Derivatives and Hedgin g ("ASC 815") under which the Company records the fair value of the instruments on the balance sheet at each reporting date, with changes in fair value recognized in income. Given cost and complexity considerations, the Company did not elect to use cash flow hedge accounting provided under ASC 815. Under cash flow hedge accounting, the effective portion of the change in fair value of the derivative instruments would be deferred in other comprehensive income and not recognized in earnings until the underlying hedged item impacts earnings. These derivative instruments can result in both fair value asset and liability positions held with each counterparty. These positions are offset to a single net fair value asset or liability at the end of each reporting period. The Company nets its fair value amounts of derivative instruments executed with the same counterparty pursuant to ISDA master agreements, which provide for net settlement over the term of the contract and in the event of default or termination of the contract. At June 30, 2017, the Company had no derivative asset or liability positions. At September 30, 2017 and 2016, the Company held no derivative asset or liability positions. The Company monitors the credit rating of its counterparties and believes it does not have significant credit risk. Accordingly, we do not currently require our counterparties to post collateral to support the net asset positions of our derivative instruments. As such, the Company is exposed to credit risk to the extent of nonperformance by the counterparties to its derivative instruments. For the three months ended September 30, 2017 , the Company had no gains or losses from derivatives. For the three months ended September 30, 2016 , the Company recorded in its consolidated statement of operations a loss on derivative instruments of $14,042 consisting of an realized gain of $90 on settled positions and an unrealized net loss of $14,132 on unsettled positions.

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement Accounting guidelines for measuring fair value establish a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: Level 1—Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities. Level 2—Other inputs that are observable directly or indirectly such as quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3—Unobservable inputs for which there is little or no market data and which the Company makes its own assumptions about how market participants would price the assets and liabilities.

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We file a consolidated federal income tax return in the United States and various combined and separate filings in several state and local jurisdictions. There were neither unrecognized tax benefits nor any accrued interest or penalties associated with unrecognized tax benefits during the three months ended September 30, 2017 . We believe we have appropriate support for the income tax positions taken and to be taken on our tax returns and that the accruals for tax liabilities are adequate for all open years based on our assessment of various factors including past experience and interpretations of tax law applied to the facts of each matter. The Company’s federal and state income tax returns are open to audit under the statute of limitations for the years ended June 30, 2014 through June 30, 2016 for federal tax purposes and for the years ended June 30, 2013 through June 30, 2016 for state tax purposes. To the extent we utilize net operating losses generated in earlier years, such earlier years may also be subject to audit. We recognized income tax expense of $390,322 and $889,176 for the three months ended September 30, 2017 and 2016 , respectively, with corresponding effective tax rates of 15% and 33% . Our effective tax rate will typically differ from the statutory federal rate as a result of state income taxes, primarily in the State of Louisiana, and differences related to percentage depletion in excess of basis, stock-based compensation and other permanent differences. The effective tax rate for the three months ended September 30, 2017 was significantly lower than the statutory federal rate as a result of percentage depletion in excess of basis and the tax effects of stock-based compensation, partially offset by state income taxes net of federal benefit. Our quarterly income tax provisions are based on our reasonable estimates of income taxes payable at the end of the year. These estimates involve uncertainties and our estimated interim effective tax rates may change as additional financial results become available during the year. In particular, the utilization of excess percentage depletion is limited to 65% of actual taxable income and is subject to greater uncertainty than other components of our tax provision.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The following table sets forth the computation of basic and diluted income per share: Three Months Ended September 30, 2017 2016 Numerator Net income available to common shareholders $ 2,140,532 $ 563,345 Denominator Weighted average number of common shares — Basic 33,089,244 32,957,010 Effect of dilutive securities: Contingent restricted stock grants 58,264 28,845 Stock options — 21,744 Weighted average number of common shares and dilutive potential common shares used in diluted EPS 33,147,508 33,007,599 Net income per common share — Basic $ 0.06 $ 0.02 Net income per common share — Diluted $ 0.06 $ 0.02 Outstanding potentially dilutive securities as of September 30, 2017 were as follows: Outstanding Potentially Dilutive Securities Weighted At September 30, 2017 Contingent Restricted Stock grants $ — 94,244 Outstanding potentially dilutive securities as of September 30, 2016 were as follows: Outstanding Potentially Dilutive Securities Weighted At September 30, 2016 Contingent Restricted Stock grants $ — 113,270 Stock Options 2.19 35,231 Total outstanding potentially dilutive securities $ 0.52 148,501

Senior Secured Credit Agreement

Senior Secured Credit Agreement	3 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Senior Secured Credit Agreement	Senior Secured Credit Agreement On April 11, 2016, the Company entered into a three -year, senior secured reserve-based credit facility ("Facility") in an amount up to $50 million . The Facility replaces the Company's previous unsecured credit facility which expired in April 2016. The borrowing base under the Facility has been set at $10,000,000 . As of September 30, 2017 , the Company was in compliance with all covenants contained in the Facility, and no amounts were outstanding under the Facility. Borrowings from the Facility may be used for the acquisition and development of oil and gas properties and for letters of credit and other general corporate purposes. Availability of borrowings under the Facility is subject to semi-annual borrowing base redeterminations. The Facility included a placement fee of 0.50% on the initial borrowing base, amounting to $50,000 , and carries a commitment fee of 0.25% per annum on the undrawn portion of the borrowing base. Any borrowings under the Facility will bear interest, at the Company’s option, at either LIBOR plus 2.75% or the Prime Rate, as defined, plus 1.00% . The Facility contains financial covenants including a requirement that the Company maintain, as of the last day of each fiscal quarter, (a) a maximum total leverage ratio of not more than 3.00 to 1.00, (b) a debt service coverage ratio of not less than 1.10 to 1.00, and (c) a consolidated tangible net worth of not less than $40 million , all as defined under the Facility. In connection with this agreement, the Company incurred $168,972 of debt issuance costs. Such costs were capitalized in Other Assets and are being amortized to expense. The unamortized balance in debt issuance costs related to the Facility was $84,401 as of September 30, 2017 .

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are subject to various claims and contingencies in the normal course of business. In addition, from time to time, we receive communications from government or regulatory agencies concerning investigations or allegations of noncompliance with laws or regulations in jurisdictions in which we operate. At a minimum we disclose such matters if we believe it is reasonably possible that a future event or events will confirm a loss through impairment of an asset or the incurrence of a liability. We accrue a loss if we believe it is probable that a future event or events will confirm a loss and we can reasonably estimate such loss and we do not accrue future legal costs related to that loss. Furthermore, we will disclose any matter that is unasserted if we consider it probable that a claim will be asserted and there is a reasonable possibility that the outcome will be unfavorable. We expense legal defense costs as they are incurred. On December 3, 2013, our wholly owned subsidiary, NGS Sub Corp., was served with a lawsuit filed in the 8th Judicial District Court of Winn Parish, Louisiana by Cecil M. Brooks and Brandon Hawkins, residents of Louisiana, alleging that in 2006 a former subsidiary of NGS Sub Corp. improperly disposed of water from an off-lease well into a well located on the plaintiffs’ lands in Winn Parish. The plaintiffs requested monetary damages and other relief. The plaintiffs subsequently filed an amended petition joining the Company as defendants in its capacity as parent company of NGS Sub Corp. NGS Sub Corp. divested its ownership of the property in question along with its ownership of the subsidiary in 2008 to a third party. NGS Sub Corp. and the Company have denied the plaintiffs’ claims. The district court dismissed the claim of Brooks against NGS Sub Corp. and the Company because Brooks purchased the land where the well is located subsequent to the divestiture of the property by NGS Sub. Corp. The claim of Hawkins is still being defended. Trial is currently scheduled for March 2018. We will continue to vigorously defend the claims and based on the input of our legal counsel, we consider the likelihood of a material loss to the Company in this matter to be remote. Lease Commitments. We have a non-cancelable operating lease for office space that expires on May 31, 2019. Future minimum lease commitments as of September 30, 2017 under this operating lease are as follows: Twelve months ended September 30, 2018 $ 73,073 2019 $ 66,984 Rent expense for the three months ended September 30, 2017 and 2016 was $19,851 and $34,856 , respectively.

Organization and Basis of Pre23

Organization and Basis of Preparation (Policies)	3 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation and Reporting	Principles of Consolidation and Reporting. Our consolidated financial statements include the accounts of EPM and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements for the previous year may include certain reclassifications to conform to the current presentation. Any such reclassifications have no impact on previously reported net income or stockholders' equity.
Use of Estimates	Use of Estimates. The preparation of financial statements in conformity with GAAP requires us 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 (a) 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, (b) asset retirement obligations, (c) stock-based compensation, (d) fair values of derivative assets and liabilities, (e) income taxes and the valuation of deferred tax assets and (f) 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.
New Accounting Pronouncements	New Accounting Pronouncements. In August 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2015-14, which defers the effective date of ASU 2014-09 Revenue from Contracts with Customers (Topic 606) (" ASU 2014-09") by one year and allows entities the option to early adopt the new revenue standard as of the original effective date. Issued in May 2014, ASU 2014-09 provided guidance on revenue recognition on contracts with customers to transfer goods or services or on contracts for the transfer of nonfinancial assets. ASU 2014-09 requires that revenue recognition on contracts with customers depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public companies, ASU 2014-09 is now effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The standard provides for either the full retrospective or modified retrospective transition methods. We expect to adopt this standard using the modified retrospective method. The Company expects that additional disclosures will be required as a result of adopting ASU 2014-09 and is currently assessing the impact of the guidance on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). The pronouncement requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These changes become effective for fiscal years beginning after December 15, 2017. The expected adoption method of ASU 2016-01 is being evaluated by the Company and the adoption is not expected to have a significant impact on the Company’s consolidated financial position or results of operations. On February 25, 2016, the FASB issued ASU 2016-02 , Leases (“ASU 2016-02”), which relates to the accounting for leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than twelve months. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance addresses eight specific cash flow issues for which current GAAP is either unclear or does not include specific guidance. This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years with early adoption permitted, provided that it is adopted in its entirety in the same period. Currently, the Company does not expect the impact of adopting ASU 2016-15 to have a material effect on its consolidated statements of cash flows.

Receivables (Tables)

Receivables (Tables)	3 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Schedule of Receivables	As of September 30, 2017 and June 30, 2017 , our receivables consisted of the following: September 30, June 30, Receivables from oil and gas sales $ 3,027,247 $ 2,722,880 Other 36 3,822 Total receivables $ 3,027,283 $ 2,726,702

Prepaid Expenses and Other Cu25

Prepaid Expenses and Other Current Assets (Tables)	3 Months Ended
	Sep. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of prepaid expenses and other current assets	As of September 30, 2017 and June 30, 2017 , our prepaid expenses and other current assets consisted of the following: September 30, June 30, Prepaid insurance $ 113,554 $ 169,416 Retainers and deposits 7,553 7,553 Prepaid federal and state income taxes 121,231 121,232 Other prepaid expenses 49,038 89,471 Prepaid expenses and other current assets $ 291,376 $ 387,672

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Schedule of oil and natural gas properties and other property and equipment	As of September 30, 2017 and June 30, 2017 , our oil and natural gas properties and other property and equipment consisted of the following: September 30, June 30, Oil and natural gas properties Property costs subject to amortization $ 85,585,703 $ 84,962,933 Less: Accumulated depreciation, depletion, and amortization (24,683,746 ) (23,172,865 ) Unproved properties not subject to amortization — — Oil and natural gas properties, net $ 60,901,957 $ 61,790,068 Other property and equipment Furniture, fixtures, office equipment and other, at cost $ 135,377 $ 135,377 Less: Accumulated depreciation (98,959 ) (94,688 ) Other property and equipment, net $ 36,418 $ 40,689

Other Assets (Tables)

Other Assets (Tables)	3 Months Ended
	Sep. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of other assets	As of September 30, 2017 and June 30, 2017 , other assets consisted of the following: September 30, June 30, Royalty rights $ 108,512 $ 108,512 Less: Accumulated amortization of royalty rights (23,737 ) (20,346 ) Investment in Well Lift Inc., at cost 108,750 108,750 Deferred loan costs 168,972 168,972 Less: Accumulated amortization of deferred loan costs (84,571 ) (70,504 ) Other assets, net $ 277,926 $ 295,384

Accrued Liabilities and Other (

Accrued Liabilities and Other (Tables)	3 Months Ended
	Sep. 30, 2017
Other Liabilities, Current [Abstract]
Schedule of accrued liabilities	As of September 30, 2017 and June 30, 2017 , our other current liabilities consisted of the following: September 30, June 30, Accrued incentive and other compensation $ 143,802 $ 413,113 Accrued severance payments 90,800 — Asset retirement obligations due within one year 35,115 35,115 Accrued royalties, including suspended accounts 11,524 17,708 Accrued franchise taxes 191,362 150,062 Accrued ad valorem taxes 162,039 108,639 Other accrued liabilities — 1,841 Accrued liabilities and other $ 634,642 $ 726,478

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	3 Months Ended
	Sep. 30, 2017
Asset Retirement Obligation Disclosure [Abstract]
Schedule of reconciliations of the beginning and ending asset retirement obligation balances	The following is a reconciliation of the beginning and ending asset retirement obligations for the three months ended September 30, 2017 and for the year ended June 30, 2017 : September 30, June 30, Asset retirement obligations — beginning of period $ 1,288,743 $ 962,196 Liabilities incurred — 52,792 Liabilities settled — (157,164 ) Liabilities sold — (47,817 ) Accretion of discount 21,579 59,664 Revision of previous estimates — 419,072 Asset retirement obligations — end of period $ 1,310,322 $ 1,288,743 Less current portion in accrued liabilities (35,115 ) (35,115 ) Long-term portion of asset retirement obligations $ 1,275,207 $ 1,253,628

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Schedule of share repurchases	During the three months ended September 30, 2017 and 2016, the Company acquired treasury stock from holders of newly vested stock-based awards to fund the recipients' payroll taxes paid in the quarter. Such shares were valued at fair market value on the date of vesting. The treasury shares were subsequently canceled. Three Months Ended 2017 2016 Number of treasury shares acquired 15,284 58,147 Average cost per share $ 7.25 $ 5.68 Total cost of treasury shares acquired $ 110,753 $ 330,070

Stock-Based Incentive Plan (Tab

Stock-Based Incentive Plan (Tables)	3 Months Ended
	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Restricted Stock transactions	Unvested Contingent Restricted Stock awards at September 30, 2017 consisted of the following: Number of Weighted Performance-based awards 36,688 $ 7.04 Market-based awards 57,556 3.14 Unvested contingent shares at September 30, 2017 94,244 $ 4.66 Unvested Restricted Stock awards at September 30, 2017 consisted of the following: Number of Weighted Service-based awards 165,504 $ 6.98 Performance-based awards 50,360 5.67 Market-based awards 115,111 4.96 Unvested Restricted Stock at September 30, 2017 330,975 $ 6.08
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Restricted Stock transactions	The following table sets forth the Restricted Stock transactions for the three months ended September 30, 2017 : Number of Weighted Unamortized Compensation Expense at September 30, 2017 Weighted Average Remaining Amortization Period (Years) Unvested at July 1, 2017 391,624 $ 6.22 Vested (41,088 ) 7.37 Forfeited (19,561 ) 6.16 Unvested Restricted Stock at September 30, 2017 330,975 $ 6.08 $ 1,101,876 1.87
Contingent Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Restricted Stock transactions	The following table sets forth Contingent Restricted Stock transactions for the three months ended September 30, 2017 : Number of Weighted Unamortized Compensation Expense at September 30, 2017 (1) Weighted Average Remaining Amortization Period (Years) Unvested at July 1, 2017 113,270 $ 4.64 Vested (14,254 ) 4.26 Forfeited (4,772 ) 5.30 Unvested contingent shares at September 30, 2017 94,244 $ 4.66 $ 53,155 1.74 (1) Excludes $258,430 of potential future compensation expense for contingent performance-based awards for which vesting is not considered probable at this time for accounting purposes.

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of computation of basic and diluted income per share	The following table sets forth the computation of basic and diluted income per share: Three Months Ended September 30, 2017 2016 Numerator Net income available to common shareholders $ 2,140,532 $ 563,345 Denominator Weighted average number of common shares — Basic 33,089,244 32,957,010 Effect of dilutive securities: Contingent restricted stock grants 58,264 28,845 Stock options — 21,744 Weighted average number of common shares and dilutive potential common shares used in diluted EPS 33,147,508 33,007,599 Net income per common share — Basic $ 0.06 $ 0.02 Net income per common share — Diluted $ 0.06 $ 0.02
Schedule of outstanding potentially dilutive securities	Outstanding potentially dilutive securities as of September 30, 2017 were as follows: Outstanding Potentially Dilutive Securities Weighted At September 30, 2017 Contingent Restricted Stock grants $ — 94,244 Outstanding potentially dilutive securities as of September 30, 2016 were as follows: Outstanding Potentially Dilutive Securities Weighted At September 30, 2016 Contingent Restricted Stock grants $ — 113,270 Stock Options 2.19 35,231 Total outstanding potentially dilutive securities $ 0.52 148,501

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum lease commitments under the operating lease	Future minimum lease commitments as of September 30, 2017 under this operating lease are as follows: Twelve months ended September 30, 2018 $ 73,073 2019 $ 66,984

Receivables (Details)

Receivables (Details) - USD ($)	Sep. 30, 2017	Jun. 30, 2017
Receivables [Abstract]
Receivables from oil and gas sales	$ 3,027,247	$ 2,722,880
Other	36	3,822
Total receivables	$ 3,027,283	$ 2,726,702

Prepaid Expenses and Other Cu35

Prepaid Expenses and Other Current Assets (Details) - USD ($)	Sep. 30, 2017	Jun. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid insurance	$ 113,554	$ 169,416
Retainers and deposits	7,553	7,553
Prepaid federal and state income taxes	121,231	121,232
Other prepaid expenses	49,038	89,471
Prepaid expenses and other current assets	$ 291,376	$ 387,672

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	3 Months Ended
	Sep. 30, 2017	Jun. 30, 2017
Oil and natural gas properties
Property costs subject to amortization	$ 85,585,703	$ 84,962,933
Less: Accumulated depreciation, depletion, and amortization	(24,683,746)	(23,172,865)
Unproved properties not subject to amortization	0	0
Oil and natural gas properties, net	60,901,957	61,790,068
Other property and equipment
Furniture, fixtures, office equipment and other, at cost	135,377	135,377
Less: Accumulated depreciation	(98,959)	(94,688)
Other property and equipment, net	36,418	$ 40,689
Delhi field
Other property and equipment
Capital expenditures	$ 600,000

Other Assets (Details)

Other Assets (Details) - USD ($)	Sep. 30, 2017	Jun. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Royalty rights	$ 108,512	$ 108,512
Less: Accumulated amortization of royalty rights	(23,737)	(20,346)
Investment in Well Lift Inc., at cost	108,750	108,750
Deferred loan costs	168,972	168,972
Less: Accumulated amortization of deferred loan costs	(84,571)	(70,504)
Other assets, net	$ 277,926	$ 295,384

Accrued Liabilities and Other38

Accrued Liabilities and Other (Details) - USD ($)	Sep. 30, 2017	Jun. 30, 2017
Other Liabilities, Current [Abstract]
Accrued incentive and other compensation	$ 143,802	$ 413,113
Accrued severance payments	90,800	0
Asset retirement obligations due within one year	35,115	35,115
Accrued royalties, including suspended accounts	11,524	17,708
Accrued franchise taxes	191,362	150,062
Accrued ad valorem taxes	162,039	108,639
Other accrued liabilities	0	1,841
Accrued liabilities and other	$ 634,642	$ 726,478

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Asset retirement obligations — beginning of period	$ 1,288,743	$ 962,196	$ 962,196
Liabilities incurred	0		52,792
Liabilities settled	0		(157,164)
Liabilities sold	0		(47,817)
Accretion of discount	21,579	$ 13,224	59,664
Revision of previous estimates	0		419,072
Asset retirement obligations — end of period	1,310,322		1,288,743
Less current portion in accrued liabilities	(35,115)		(35,115)
Long-term portion of asset retirement obligations	$ 1,275,207		$ 1,253,628

Stockholders' Equity - Common S

Stockholders' Equity - Common Stock Dividends and Buyback Program (Details)	Dec. 31, 2013$ / shares	Sep. 30, 2017USD ($)$ / sharesshares	Jun. 30, 2017$ / shares	Mar. 31, 2017$ / shares	Dec. 31, 2016$ / shares	Sep. 30, 2016USD ($)$ / sharesshares	Jun. 30, 2016$ / shares	Mar. 31, 2016$ / shares	Dec. 31, 2015$ / shares	Sep. 30, 2015$ / shares	Jun. 30, 2015$ / shares	Mar. 31, 2015$ / shares	Jun. 30, 2017increase	Sep. 30, 2017shares	Sep. 30, 2017USD ($)$ / sharesshares	May 12, 2015USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock outstanding | shares		33,066,717												33,066,717	33,066,717
Cash dividend (in dollars per share) | $ / shares	$ 0.10	$ 0.075	$ 0.07	$ 0.07	$ 0.065	$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0.05	$ 0.05
Number of increases to quarterly cash dividend | increase													2
Cash dividends to common stockholders		$ 2,481,471				$ 1,652,290
Common Stock | 2015 Share Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized amount to be repurchased																$ 5,000,000
Value of shares repurchased		$ 110,753				$ 330,070									$ 1,609,008
Number of treasury shares acquired | shares		15,284				58,147								0	265,762
Average cost per share (in dollars per share) | $ / shares		$ 7.25				$ 5.68									$ 6.05

Stockholders' Equity - Series A

Stockholders' Equity - Series A Cumulative Perpetual Preferred Stock (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Series A Cumulative Perpetual Preferred Stock
Cash dividends to preferred stockholders		$ 0	$ 168,575
Series A cumulative perpetual preferred stock | Preferred
Series A Cumulative Perpetual Preferred Stock
Number of shares sold of series A cumulative perpetual preferred stock	317,319
Preferred stock dividend rate (as a percent)	8.50%
Preferred stock, liquidation preference (in dollars per share)	$ 25		$ 25
Consideration paid to preferred shareholders at redemption at liquidation preference	$ 7,932,975
Deemed dividend	$ 1,002,440		$ 1,002,440
Cash dividends to preferred stockholders			$ 168,575
Accrued preferred dividends through redemption date		$ 82,415

Stock-Based Incentive Plan - Na

Stock-Based Incentive Plan - Narrative (Details) - USD ($)	Aug. 27, 2014	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015	Dec. 08, 2016
Restricted Stock and Contingent Restricted Stock
Stock-Based Incentive Plan
Stock-based compensation expense		$ 487,484	$ 311,688
Restricted Stock, Market-Based
Stock-Based Incentive Plan
Vesting period				2 years 9 months 29 days	3 years 303 days
2016 Plan
Stock-Based Incentive Plan
Number of shares of common stock authorized for issuance under plan							1,100,000
Number of shares remaining available for grant under plan		1,100,000
2004 Stock Plan | Restricted Stock
Stock-Based Incentive Plan
Vesting period	4 years
2004 Stock Plan | Restricted Stock and Contingent Restricted Stock
Stock-Based Incentive Plan
Expiration period		4 years
2004 Stock Plan | Performance-based Awards
Stock-Based Incentive Plan
Vesting period		4 years
Minimum | Restricted Stock, Market-Based
Stock-Based Incentive Plan
Vesting period						3 years 109 days
Fair value at grant date, per share (in dollars per share)				$ 3.42	$ 2.93	$ 4.26
Maximum | Restricted Stock, Market-Based
Stock-Based Incentive Plan
Vesting period						2 years 200 days
Fair value at grant date, per share (in dollars per share)				$ 5.62	$ 5.07	$ 8.40

Stock-Based Incentive Plan - Un

Stock-Based Incentive Plan - Unvested Restricted Stock (Details)	3 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Restricted Stock, Service-Based
Number of Restricted Shares
Unvested at the end of the period (in shares) | shares	165,504
Weighted Average Grant-Date Fair Value
Unvested at the end of the period (in dollars per share) | $ / shares	$ 6.98
Restricted Stock, Performance-Based
Number of Restricted Shares
Unvested at the end of the period (in shares) | shares	50,360
Weighted Average Grant-Date Fair Value
Unvested at the end of the period (in dollars per share) | $ / shares	$ 5.67
Restricted Stock, Market-Based
Number of Restricted Shares
Unvested at the end of the period (in shares) | shares	115,111
Weighted Average Grant-Date Fair Value
Unvested at the end of the period (in dollars per share) | $ / shares	$ 4.96
Restricted Stock
Number of Restricted Shares
Unvested at the beginning of the period (in shares) | shares	391,624
Vested (in shares) | shares	(41,088)
Forfeited (in shares) | shares	(19,561)
Unvested at the end of the period (in shares) | shares	330,975
Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share) | $ / shares	$ 6.22
Vested (in dollars per share) | $ / shares	7.37
Forfeited (in dollars per share) | $ / shares	6.16
Unvested at the end of the period (in dollars per share) | $ / shares	$ 6.08
Additional disclosures of restricted stock
Unrecognized stock compensation expense related to Restricted Stock | $	$ 1,101,876
Weighted average remaining service period over which unrecognized compensation cost is expected to be recognized	1 year 10 months 13 days
Contingent Restricted Stock, Performance-Based
Number of Restricted Shares
Unvested at the end of the period (in shares) | shares	36,688
Weighted Average Grant-Date Fair Value
Unvested at the end of the period (in dollars per share) | $ / shares	$ 7.04
Additional disclosures of restricted stock
Potential future compensation expense | $	$ 258,430
Contingent Restricted Stock, Market-Based
Number of Restricted Shares
Unvested at the end of the period (in shares) | shares	57,556
Weighted Average Grant-Date Fair Value
Unvested at the end of the period (in dollars per share) | $ / shares	$ 3.14
Contingent Restricted Stock
Number of Restricted Shares
Unvested at the beginning of the period (in shares) | shares	113,270
Vested (in shares) | shares	(14,254)
Forfeited (in shares) | shares	(4,772)
Unvested at the end of the period (in shares) | shares	94,244
Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share) | $ / shares	$ 4.64
Vested (in dollars per share) | $ / shares	4.26
Forfeited (in dollars per share) | $ / shares	5.30
Unvested at the end of the period (in dollars per share) | $ / shares	$ 4.66
Additional disclosures of restricted stock
Unrecognized stock compensation expense related to Restricted Stock | $	$ 53,155	[1]
Weighted average remaining service period over which unrecognized compensation cost is expected to be recognized	1 year 8 months 27 days
[1]	Excludes $258,430 of potential future compensation expense for contingent performance-based awards for which vesting is not considered probable at this time for accounting purposes.

Derivatives (Details)

Derivatives (Details) - USD ($)	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives held	$ 0	$ 0	$ 0
Gain (losses) on derivatives	$ 0	(14,042)
Gain on settled derivatives		90
Unrealized loss on open positions		$ 14,132

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income tax expense	$ 390,322	$ 889,176
Income tax expense, effective rates (as a percent)	15.00%	33.00%

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($)	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Numerator
Net income available to common shareholders	$ 2,140,532	$ 563,345
Denominator
Weighted average number of common shares — Basic (in shares)	33,089,244	32,957,010
Effect of dilutive securities:
Weighted average number of common shares and dilutive potential common shares used in diluted EPS (in shares)	33,147,508	33,007,599
Net income per common share - Basic (in dollars per share)	$ 0.06	$ 0.02
Net income per common share - Diluted (in dollars per share)	$ 0.06	$ 0.02
Contingent restricted stock grants
Effect of dilutive securities:
Weighted average of securities (in shares)	58,264	28,845
Stock options
Effect of dilutive securities:
Weighted average of securities (in shares)	0	21,744

Net Income Per Share - Schedu47

Net Income Per Share - Schedule of Dilutive Securities (Details) - $ / shares	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Outstanding Potential Dilutive Securities
Weighted Average Exercise Price (in dollars per share)		$ 0.52
Balance at the end of the period (in shares)		148,501
Contingent restricted stock grants
Outstanding Potential Dilutive Securities
Weighted Average Exercise Price (in dollars per share)	$ 0	$ 0
Balance at the end of the period (in shares)	94,244	113,270
Stock options
Outstanding Potential Dilutive Securities
Weighted Average Exercise Price (in dollars per share)		$ 2.19
Balance at the end of the period (in shares)		35,231

Senior Secured Credit Agreeme48

Senior Secured Credit Agreement (Details) - Senior Secured Reserve-Based Credit Facility - Line of Credit - Revolving credit facility	Apr. 11, 2016USD ($)	Sep. 30, 2017USD ($)
Line of Credit Facility [Line Items]
Term of revolving credit facility	3 years
Maximum amount available under revolving credit facility	$ 50,000,000
Initial borrowing base	$ 10,000,000
Amount outstanding		$ 0
Placement fee percentage	0.50%
Placement fee percentage	$ 50,000
Commitment fee percentage	0.25%
Maximum total leverage ratio (not more than)	3
Debt service coverage ratio (not less than)	1.10
Minimum consolidated tangible net worth	$ 40,000,000
Debt issuance costs	$ 168,972
Unamortized debt issuance costs		$ 84,401
LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.75%
Prime rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.00%

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details)	Sep. 30, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,018	$ 73,073
2,019	$ 66,984

Commitments and Contingencies50

Commitments and Contingencies - Narrative (Details) - USD ($)	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 19,851	$ 34,856