Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 30, 2017 | Jun. 30, 2016 | |
Document and Entity Information: | |||
Entity Registrant Name | New Concept Energy, Inc. | ||
Entity Trading Symbol | gbr | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Entity Central Index Key | 105,744 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 1,946,935 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 1,626,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 113 | $ 473 |
Accounts receivable from oil and gas sales | 119 | 141 |
Other current assets | 206 | 37 |
Total current assets | 438 | 651 |
Oil and natural gas properties (full cost accounting method) | ||
Proved developed and undeveloped oil and gas properties, net of depletion | 5,608 | 5,914 |
Property and equipment, net of depreciation | ||
Land, buildings and equipment - oil and gas operations | 706 | 803 |
Other | 25 | 134 |
Total property and equipment | 731 | 937 |
Other assets | 401 | 1,373 |
Total assets | 7,178 | 8,875 |
Current liabilities | ||
Accounts payable - trade (including$160 and $168 in 2016 and 2015 due to related parties) | 238 | 241 |
Accrued expenses | 59 | 151 |
Current portion of long term debt | 96 | 831 |
Total current liabilities | 393 | 1,223 |
Long-term debt | ||
Notes payable less current portion | 296 | 1,211 |
Asset retirement obligation | 2,770 | 2,770 |
Total liabilities | 3,459 | 5,204 |
Stockholders' equity | ||
Series B convertible preferred stock, $10 par value, liquidation value of $100 authorized 100 shares, issued and outstanding one share | 1 | 1 |
Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 1,946,935 shares at December 31, 2016 and 2015 | 20 | 20 |
Additional paid-in capital | 58,838 | 58,838 |
Accumulated deficit | (55,140) | (55,188) |
Total Stockholder's equity | 3,719 | 3,671 |
Total liabilities & stockholders' equity | $ 7,178 | $ 8,875 |
CONSOLIDATED BALANCE SHEETS PAR
CONSOLIDATED BALANCE SHEETS PARENTHETICALS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Parentheticals | ||
Accounts payable due to related parties | $ 160 | $ 168 |
Series B convertible preferred stock, par value | $ 10 | $ 10 |
Series B convertible preferred stock, liquidation value | $ 100 | $ 100 |
Series B convertible preferred stock, shares authorized | 100 | 100 |
Series B convertible preferred stock, shares issued | 1 | 1 |
Series B convertible preferred stock, shares outstanding | 1 | 1 |
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 1,946,935 | 1,946,935 |
Common Stock, Shares Outstanding | 1,946,935 | 1,946,935 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATION - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue | |||
Oil and gas operations, net of royalties | $ 764 | $ 820 | $ 1,489 |
Total Revenues | 764 | 820 | 1,489 |
Operating expenses | |||
Oil & gas operations | 1,181 | 1,800 | 1,853 |
Corporate general and administrative | 352 | 605 | 823 |
Impairment of natural gas and oil properties | 0 | 2,717 | 0 |
Total Operating Expenses | 1,533 | 5,122 | 2,676 |
Operating earnings (loss) | (769) | (4,302) | (1,187) |
Other income (expense) | |||
Interest income | 23 | 12 | 5 |
Interest expense | (38) | (62) | (91) |
Gain on prepayment of debt | 888 | 0 | 0 |
Gain on sale of land | 50 | 0 | 0 |
Bad debt expense (recovery) - note receivable | 0 | 1,430 | 0 |
Other income (expense), net | (110) | (32) | 197 |
Total Other income (expense) | 813 | 1,348 | 111 |
Earnings (loss) from continuing operations | 44 | (2,954) | (1,076) |
Discontinued Operations: | 4 | 332 | 297 |
Net income (loss) applicable to common shares | $ 48 | $ (2,622) | $ (779) |
Net income (loss) per common share-basic and diluted | $ 0.02 | $ (1.35) | $ (0.40) |
Weighted average common and equivalent shares outstanding - basic | 1,947 | 1,947 | 1,947 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net income (loss) | $ 48 | $ (2,622) | $ (779) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation, depletion and amortization | 664 | 721 | 732 |
Impairment of natural gas and oil properties | 0 | 2,717 | 0 |
Write-off (recovery) of affiliate receivable | 0 | (1,430) | 0 |
Gain on prepayment of long term debt | (888) | 0 | 0 |
Gain from sale of land | (50) | 0 | 0 |
Changes in operating assets and liabilities | |||
Other current and non-current assets | 7 | 260 | 5 |
Accounts payable and other liabilities | (95) | 920 | (240) |
Net cash provided by (used) in operating activities | (314) | 566 | (282) |
Cash flows from investing activities | |||
Investment in oil and gas properties | 0 | (336) | (129) |
Fixed asset additions | (52) | (31) | (175) |
Cash from sale of land | 700 | 116 | 0 |
Repayment of loan from affiliate | 0 | 126 | 0 |
Collections of note receivable | 38 | 13 | 0 |
Real estate held for investment | 0 | 0 | (650) |
Net cash provided by (used) in investing activities | 686 | (112) | (954) |
Cash flows from financing activities | |||
Payment on notes payable | (732) | (281) | (213) |
Proceeds from loans | 0 | 0 | 128 |
Net cash provided by (used in) financing activities | (732) | (281) | (85) |
Net increase (decrease) in cash and cash equivalents | (360) | 173 | (1,321) |
Cash and cash equivalents at beginning of year | 473 | 300 | 1,621 |
Cash and cash equivalents at end of year | 113 | 473 | 300 |
Supplemental disclosures of cash flow information | |||
Cash paid for interest on notes payable: | 22 | 77 | 77 |
Cash paid for principal on notes payable: | 725 | 279 | 213 |
Non cash portion of sale of land | 0 | 415 | 0 |
Cash paid income taxes | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Series B Preferred stock Shares | Series B Preferred stock Amount | Common Stock Shares | Common Stock Amount | Additional paid in capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2013 | 1 | 1 | 1,947 | 20 | 58,838 | (51,787) | 7,072 |
Net Income | $ 0 | $ 0 | $ 0 | $ (779) | $ (779) | ||
Balance at Dec. 31, 2014 | 1 | 1 | 1,947 | 20 | 58,838 | (52,566) | 6,293 |
Net Income | $ 0 | $ 0 | $ 0 | $ (2,622) | $ (2,622) | ||
Balance at Dec. 31, 2015 | 1 | 1 | 1,947 | 20 | 58,838 | (55,188) | 3,671 |
Net Income | $ 0 | $ 0 | $ 0 | $ 48 | $ 48 | ||
Balance at Dec. 31, 2016 | 1 | 1 | 1,947 | 20 | 58,838 | (55,140) | 3,719 |
BUSINESS DESCRIPTION AND PRESEN
BUSINESS DESCRIPTION AND PRESENTATION | 12 Months Ended |
Dec. 31, 2016 | |
BUSINESS DESCRIPTION AND PRESENTATION | |
BUSINESS DESCRIPTION AND PRESENTATION | NOTE A BUSINESS DESCRIPTION AND PRESENTATION The Company, through its wholly owned subsidiaries Mountaineer State Energy, Inc. and Mountaineer State Operations, LLC, operates oil and gas wells and mineral leases in Athens and Meigs Counties in Ohio and in Calhoun, Jackson and Roane Counties in West Virginia. As of December 31, 2016 the Company has 153 producing oil & gas wells, 31 non-producing wells and related equipment and mineral leases covering approximately 20,000 acres. The Company engaged the firm of independent oil and gas engineers Lee Keeling & Associates, Inc. to estimate the net oil and gas reserves. On the basis of their study, the estimates of future net revenues using a present value discount of 10% were estimated to be $6.3 million at December 31, 2016. NCE also leases and operates a retirement community in King City Oregon, with a capacity of 114 residents. Our lease provides that should the property be sold the lease maintained by the Company would be terminated. The Company has been notified that the building is under contract to be sold effective March 30, 2017 and our lease will be terminated on that date. These financial statements reflect the operations of the retirement community as a discontinued operation. In February 2014 the Company acquired 7.4 acres of undeveloped land in Desoto TX. For $624,000. The Company acquired the property for investment purposes. This investment has been included in other assets on the balance sheet. In December 2016 the Company sold the land for $700,000 and recorded a gain of $50,000. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting policies applied in the preparation of the accompanying consolidated financial statements follows: Principles of Consolidation The consolidated financial statements include the accounts of New Concept Energy, Inc. and its majority-owned subsidiaries (collectively, the Company, New Concept or NCE) and are prepared on the basis of accounting principles generally accepted in the United States of America GAAP. All significant intercompany transactions and accounts have been eliminated. Depreciation and Amortization Depreciation is provided for in amounts sufficient to relate the cost of property and equipment to operations over their estimated service lives, ranging from 3 to 40 years. Depreciation is computed by the straight-line method. Depreciation and amortization expense, which is included in operations, was $352,000, $151,000 and $176,000 for 2016, 2015 and 2014, respectively. Depreciation, Depletion and Amortization of Producing Oil & Gas Properties Depreciation, depletion and amortization (DD&A) of producing properties is computed on the unit-of-production method based on estimated proved oil and gas reserves. While total DD&A expense for the life of a property is limited to the propertys total cost, proved reserve revisions result in a change in timing of when DD&A expense is recognized. The Company recorded depletion of mineral rights of $310,000, $514,000 and $510,000 in 2016, 2015 and 2014 respectively. Segments The Company operates two primary business segments; oil and gas operations and retirement facilities. Segment data is provided in Note H to these consolidated financial statements. Major Purchaser The Company sells most of its natural gas production to one purchaser and all of its oil production to one purchaser. While there is an available market for crude oil and natural gas production, we cannot be assured that the loss of this purchaser would not have a material impact on the Company. Oil and Gas Reserves Our proved oil and gas reserves are estimated by independent petroleum engineers. Reserve engineering is a subjective process that is dependent upon the quality of available data and the interpretation thereof, including evaluations and extrapolations of well flow rates and reservoir pressure. Estimates by different engineers often vary, sometimes significantly. In addition, physical factors such as the results of drilling, testing and production subsequent to the date of an estimate, as well as economic factors such as changes in product prices, may justify revision of such estimates. Because proved reserves are required to be estimated using recent prices of the evaluation, estimated reserve quantities can be significantly impacted by changes in product prices. The standardized measure of discounted future net cash flows and changes in such cash flows are prepared using assumptions required by the Financial Accounting Standards Board and the Securities and Exchange Commission. Such assumptions include using recent oil and gas prices and year-end costs for estimated future development and production expenditures. Discounted future net cash flows are calculated using a 10% rate. Changes in any of these assumptions could have a significant impact on the standardized measure. Accordingly, the standardized measure does not represent managements estimated current market value of proved reserves. Full cost accounting The Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under this method of accounting, all costs of acquisition, exploration and development of oil and natural gas properties (including such costs as leasehold acquisition costs, geological expenditures, dry hole costs, tangible and intangible development costs and direct internal costs) are capitalized as the cost of oil and natural gas properties when incurred. The full cost method requires the Company to calculate quarterly, by cost center, a ceiling, or limitation on the amount of properties that can be capitalized on the balance sheet. To the extent capitalized costs of oil and natural gas properties, less accumulated depletion and related deferred taxes exceed the sum of the discounted future net revenues of proved oil and natural gas reserves, the lower of cost or estimated fair value of unproved properties subject to amortization, the cost of properties not being amortized, and the related tax amounts, such excess capitalized costs are charged to expense. Beginning December 31, 2009, full cost companies use the unweighted arithmetic average first day of the month price for oil and natural gas for the 12-month period preceding the calculation date to calculate the future net revenues of proved reserves. Prior to December 31, 2009, companies used the price in effect at the calculation date and had the option, under certain circumstances, to elect to use subsequent commodity prices if they increased after the calculation date. The Company assesses any unproved oil and gas properties on an annual basis for possible impairment or reduction in value. The Company assesses properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment of unproved properties not subject to amortization, the associated costs incurred to date for such properties are then included in unproved properties subject to amortization. Gas gathering assets Gas gathering assets are capitalized as part of the depletable pool and ratably charged to earnings along with other capitalized exploration, drilling and development costs. Office and field equipment Office and field equipment are capitalized at cost and depreciated on a straight line basis over their estimated useful lives. Office and field equipment useful lives range from 5 to 30 years. Revenue recognition and gas imbalances We use the sales method of accounting for oil and natural gas revenues. Under the sales method, revenues are recognized based on actual volumes of oil and natural gas sold to purchasers. Gas imbalances at December 31, 2016 were not significant. New Concept also follows the sales method of accounting for natural gas production imbalances and would recognize a liability if the existing proved reserves were not adequate to cover an imbalance. Accounting for Leases Leases of property, plant and equipment where the Company assumes substantially all the benefits and risks of ownership are classified as finance leases. Finance leases are capitalized at the estimated present value of the underlying lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element of the finance charge is charged to the income statement over the lease period. Property, plant and equipment acquired under finance leasing contracts are depreciated over the useful life of the asset. Leases of assets under which all the risks and benefits of ownership are effectively retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the income statement on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognized as an expense in the period in which termination takes place. Revenue Recognition Rental income for residential property leases is recorded when due from residents and is recognized monthly as it is earned, which is not materially different than on a straight-line basis as lease terms are generally for periods of one year or less. Revenues are recognized when products are shipped or services are provided to customers, title is transferred, the sales price is fixed or determinable and collectability is reasonably assured. Costs associated with revenues are recorded in cost of revenues. Production volumes of natural gas are sold immediately and transported via pipeline. Royalties on the production of natural gas either paid in cash or settled through the delivery of volumes. The Company includes royalties in its revenues and cost of revenues when settlement of the royalties is paid in cash, while royalties settled by the delivery of volumes are excluded from revenues and cost of revenues. The Company follows the sales method of accounting for natural gas production imbalances and would recognize a liability if the existing proved reserves were not adequate to cover an imbalance. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents The Company considers all short-term deposits and money market investments with a maturity of less than three months to be cash equivalents. Other Intangible Assets The cost of acquired patents, trademarks and licenses is capitalized and amortized using the straight-line method over their useful lives. The carrying amount of each intangible asset is reviewed annually and adjusted for permanent impairment where it is considered necessary. Impairment of Notes Receivable Notes receivable are identified as impaired when it is probable that interest and principal will not be collected according to the contractual terms of the note agreements. The accrual of interest is discontinued on such notes, and no income is recognized until all past due amounts of principal and interest are recovered in full. Impairment of Long-Lived Assets The Company reviews its long-lived assets and certain identifiable intangibles for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In reviewing recoverability, the Company estimates the future cash flows expected to result from use of the assets and eventually disposing of them. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss is recognized based on the assets fair value. The Company determines the fair value of assets to be disposed of and records the asset at the lower of fair value less disposal costs or carrying value. Assets are not depreciated while held for disposal. Sales of Real Estate Gains on sales of real estate are recognized to the extent permitted by Accounting Standards Codification Topic 360-20, Real Estate Sales Real Estate Sales, (ASC 360-20). Until the requirements of ASC 360-20 have been met for full profit recognition, sales are accounted for by the installment or cost recovery method, whichever is appropriate. Real Estate Held for Sale Accounting Standards Codification Topic 360, Property, Plant, & Equipment (ASC 360)requires that properties held for sale be reported at the lower of carrying amount or fair value less costs of sale. If a reduction in a held for sale propertys carrying amount to fair value less costs of sale is required, a provision for loss is recognized by a charge against earnings. Subsequent revisions, either upward or downward, to a held for sale propertys estimated fair value less costs of sale are recorded as an adjustment to the propertys carrying amount, but not in excess of the propertys carrying amount when originally classified as held for sale. A corresponding charge against or credit to earnings is recognized. Properties held for sale are not depreciated. Asset Retirement Obligation The Company records an asset retirement obligation liability on the consolidated balance sheets and capitalizes a portion of the cost in Oil and natural gas properties during the period in which the obligation is incurred. The asset retirement obligation is further described in Note K. Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification, (ASC) No. 740, Accounting for Income Taxes. ASC 740 requires an asset and liability approach to financial accounting for income taxes. In the event differences between the financial reporting basis and the tax basis of the Companys assets and liabilities result in deferred tax assets, ASC 740 requires an evaluation of the probability of being able to realize the future benefits indicated by such assets. A valuation allowance is provided for a portion or all of the deferred tax assets when there is an uncertainty regarding the Companys ability to recognize the benefits of the assets in future years. Recognition of the benefits of deferred tax assets will require the Company to generate future taxable income. There is no assurance that the Company will generate earnings in future years. Since management could not determine the likelihood that the benefit of the deferred tax asset would be realized, no deferred tax asset was recognized by the Company. Recent Accounting Pronouncements There were no recent accounting pronouncements that our Company has not implemented that materially affect our consolidated financial statements. |
RECEIVABLES - PAYABLES - RELATE
RECEIVABLES - PAYABLES - RELATED PARTIES | 12 Months Ended |
Dec. 31, 2016 | |
RECEIVABLES - PAYABLES - RELATED PARTIES | |
RECEIVABLES - PAYABLES - RELATED PARTIES | NOTE C RECEIVABLES PAYABLES RELATED PARTIES Prime Income Asset Management, Inc. Prime Income Asset Management, Inc (PIAMI) is a real estate management company that also invests in real estate for its own account. Pillar Income Asset Management, Inc. (Pillar) is a real estate management company. Both PIAMI and Pillar are indirectly owned by a private trust. URC Energy, Inc. (URC) has been until October 2016 a significant investor in the Company. URC is indirectly owned by a private trust. While the trusts for PIAMI and Pillar and URC are separate they have similar trustees and beneficiaries and therefore the Company has noted PIAMI and Pillar as related parties. Beginning in 2006 the Company made loans to PIAMI and an affiliate at interest rates higher than the Company believes it could have gotten elsewhere. By the fourth quarter of 2011 the notes were consolidated into a balance due from PIAMI including accrued interest of $10 million. The Company determined that the financial condition of PIAMI had deteriorated and there could be no assurance that the amount owed would or could be collected. The company, in December 2011, recorded a reserve of $10 million (the full balance) for the combined note. Beginning in 2011 the Company conducted business with Pillar whereby Pillar provided the Company with services including processing payroll, acquiring insurance and other administrative matters (rent). The Company believes that by purchasing these services through certain large entities it can get lower costs and better service. Pillar does not charge the Company a fee for providing these services. While separate companies, both PIAMI and Pillar are both owned by Realty Advisors, Inc. (RAI). During 2011 and 2012, the Company incurred obligations to Pillar totaling approximately $2.1 million. In a joint agreement among Pillar, PIAMI and the Company, Pillar, in 2012, agreed to relieve the Company of its obligation to pay $2.1 million and the Company agreed to reduce the amount owed by PIAMI by a like amount. In 2013 in a similar agreement the Company recorded a $1.6 million recovery on the transaction reduction in the PIAMI obligation. During 2015, the Company incurred obligations to Pillar including the cost of payroll, insurance and other operating expenses. In a joint agreement among Pillar, PIAMI and the Company, Pillar agreed, in lieu of being reimbursed for such expenses, to relieve the Company of its obligation to pay $1.4 million and the Company agreed to reduce the amount owed by PIAMI by a like amount. Coastland Operations, LLC During 2012, the Company and several other defendants settled a lawsuit for $225,000. The Company paid the entire amount and had a note receivable from one of the other defendants, Coastland Operations, LLC (a subsidiary of Arcadian Energy, Inc) for $112,500 representing its share of the settlement Arcadian for a portion of his services. Arcadian, through its subsidiary URC is a significant shareholder of the Company and is therefore considered a related party. In March 2015 the $112,500 plus all accrued interest thereon was paid to the Company. |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2016 | |
NOTES PAYABLE | |
NOTES PAYABLE | NOTE D NOTES PAYABLE Notes payable is comprised of the following (in thousands): 2016 2015 Notes payable from the acquisition of Mountaineer State Energy, Inc. $ $ 1,528 Bank Debt $ 392 $ 514 $ 392 $ 2,042 Mountaineer State Energy, Inc. was acquired in 2008. As part of the purchase price the Company issued non-interesting bearing notes with the first payment being required in 2015 and the final payment due in 2032. The balance reflected above is the present value of those obligations. Bank debt represent loans from a bank to finance drilling and equipment at the Companys oil and gas operation. The interest rate ranges from 5% to 5 ½ %. The loans are collateralized by the Companys oil & gas leases as well as real property and equipment. Aggregate annual principal maturities of long-term debt at December 31, 2016 are as follows (in thousands): 2016 91 2017 80 2018 52 2019 50 2020 50 Thereafter 69 $ 392 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
INCOME TAXES | |
INCOME TAXES | NOTE E INCOME TAXES At December 31, 2016, the Company had net operating loss carry forwards of approximately $9.3 million, which expire between 2016 and 2030. Forms 1120, U.S, Corporation Income Tax Returns, The following table presents the principal reasons for the difference between the Company's effective tax rate and the United States statutory income tax rate. 2016 2015 2014 Earned income tax at statutory rate $ 7 $ 0 $ 0 Net operating loss utilization (7 ) 0 0 Deferred tax asset from NOL carry forwards 3,263 3,270 2,927 Valuation allowance (3,263 ) (3,270 ) (2,927 ) Reported income tax expense (benefit) $ 0 $ 0 $ 0 Effective income tax rate 0.00 % 0.00 % 0.00 % The Company believes that it is more likely than not the benefit of NOL carryforwards will not be realized. Therefore, a valuation allowance on the related deferred tax assets has been recorded. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE F STOCKHOLDERS EQUITY Outstanding Preferred Stock Preferred stock consists of the following (amounts in thousands): Year Ended December 31, 2016 2015 Series B convertible preferred stock, $10 par value, liquidation value of 1 1 $100, authorized 100 shares, issued and outstanding one share The Series B preferred stock has a liquidation value of $100 per share. The right to convert expired April 30, 2003. Dividends at a rate of 6% are payable in cash or preferred shares at the option of the Company. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
CONTINGENCIES | |
CONTINGENCIES | NOTE G CONTINGENCIES Carlton Energy Group, LLC In December 2006, Carlton Energy Group, LLC (Carlton) instituted litigation against an individual, Eurenergy Resources Corporation (Eurenergy) and several other entities including New Concept Energy, Inc., which was then known as CabelTel International Corporation (the Company) alleging tortuous conduct, breach of contract and other matters and as to the Company that it was the alter ego of Eurenergy. The Carlton claims were based upon an alleged tortuous interference with a contract by the individual and Eurenergy related to the right to explore a coal bed methane concession in Bulgaria which had never (and has not to this day) produced any hydrocarbons. At no time during the pendency of this project or since did the Company or any of its officers or directors have any interest whatsoever in the success or failure of the so-called Bulgaria Project. However, in the litigation, Carlton alleged that the Company was the alter-ego of certain of the other Defendants including Eurenergy. Following a jury trial in 2009, the Trial Court (295th District Court of Harris County, Texas) reduced the actual damages found by the jury of $66.5 million and entered judgment against EurEnergy and The individual jointly and severally for $31.16 million in actual damages on its tortuous-interference claim and the Court further assessed exemplary damages against The individual and EurEnergy in the amount of $8.5 million each. The Court granted a judgment for the Company that it was not the alter ego of any of the other parties and thereby would not incur any damages. Cross appeals were filed by Carlton, the individual and EurEnergy to the Court of Appeals for the First District of Texas (the Court of Appeals) which rendered its opinion on February 14, 2012. The Court of Appeals opinion, among other things, reinstated the jury award of actual damages jointly and severely against the individual and EurEnergy in the amount of $66.5 million and overturned the Trial Courts ruling favorable to the Company rendering a judgment for that amount plus exemplary damages against the Company as the alter ego of Eurenergy. The Company and the other defendants filed a Petition for Review of the Court of Appeals Opinion with the Supreme Court of the State of Texas. On May 8, 2015, the Supreme Court of Texas affirmed, in part, and reversed, in part, the Court of Appeals Judgment, remanding the case to that Court for further proceedings. In its opinion, the Supreme Court concluded that the evidence supports the Jurys verdict that the individual used the Company and other entities, that it would be unjust to require Carlton to treat them separately and found that the Company was an alter ego as a matter of law. The Supreme Court determined that the Court of Appeals erred in reinstating the jurys verdict on damages in the amount of $66.5 million as the amount was speculative and not supported by competent evidence. The court declined to reinstate the trial courts judgment of $31.16 million. The Supreme Court did rule that there was some evidence to support an award of actual damages and therefore remanded the case to the Court of Appeals to make a factual sufficiency determination, if possible, as to as to the amount. After remand the parties provided supplemental briefing and the Court of Appeals held additional oral argument on February 17, 2016. On August 30, 2016 the Court of Appeals entered its opinion and judgement which reinstated the trial courts actual damages award $31.6 million but did not address exemplary damages. The Company filed a Motion for Rehearing and asked for the full panel of the Court of Appeals to address the constitutional question of the Court of Appeals authority to decide fact questions which the record does not reflect were considered by the jury. That Motion is still pending. Managements preliminary analysis of these developments suggests the most likely outcome is that the entire case will be sent back to the trial court for a new trial however it is also possible that the claim will result in an unfavorable outcome. Management notes that in connection with the original appeal, the individual defendant deposited alternative security with the court to supersede the judgment which the court determined to have a value in excess of $56 million. Management believes that the maximum exposure would be in an amount significantly less than the amount on deposit. Accordingly, management believes that any adverse outcome is fully secured by that deposit. . Other The Company has been named as a defendant in other lawsuits in the ordinary course of business. Management is of the opinion that these lawsuits will not have a material effect on the financial condition, results of operations or cash flows of the Company. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2016 | |
OPERATING SEGMENTS | |
OPERATING SEGMENTS | NOTE H OPERATING SEGMENTS The following table reconciles the segment information to the corresponding amounts in the Consolidated Statements of Operations and total assets: 34 Year ended December 31, 2016 Oil and Gas Operations Corporate Total Discontinued Operations Retirement Facility Operating revenue $ 764 $ $ 764 $ 2,665 Operating expenses 687 352 1,039 1,496 Depreciation, depletion and amortization 494 494 168 Lease of Retirement Center 997 Impairment of oil and gas properties Total Operating Expenses 1,181 352 1,533 2,661 Interest income 23 23 Interest expense (38 ) (38 ) Gain on prepayment of debt 888 888 Gain on Sale of Land 50 50 Other income (expense), net (110 ) (110 ) Segment operating income (loss) $ 456 $ (412 ) $ 44 $ 4 Assets $ 6,641 $ 291 $ 6,932 $ 246 Year ended December 31, 2015 Oil and Gas Operations Corporate Total Retirement Facility Operating revenue $ 820 $ $ 820 $ 2,997 Operating expenses 1,183 605 1,788 1,623 Depreciation, depletion and amortization 617 617 62 Lease of Retirement Center 980 Impairment of oil and gas properties 2,717 2,717 Total Operating Expenses 4,517 605 5,122 2,665 Interest income 12 12 Interest expense (62 ) (62 ) Bad debt recovery 1,430 1,430 Other income (expense), net (32 ) (32 ) Segment operating income (loss) $ (3,759 ) $ 805 $ (2,954 ) $ 332 Assets $ 7,420 $ 1,025 $ 8,445 $ 430 Year ended December 31, 2014 Oil and Gas Operations Corporate Total Retirement Facility Operating revenue $ 1,489 $ $ 1,489 $ 2,874 Operating expenses 1,233 823 2,056 1,551 Depreciation, depletion and amortization 620 620 65 Lease of retirement facility 961 Impairment of oil and gas properties Total Operating Expenses 1,853 823 2,676 2,577 Interest income 5 5 Interest expense (91 ) (91 ) Other income (expense), net (19 ) 216 197 Segment operating income (loss) $ (474 ) $ (602 ) $ (1,076 ) $ 297 Assets $ 10,621 $ 1,208 $ 11,829 $ 445 |
QUARTERLY DATA (UNAUDITED)
QUARTERLY DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
QUARTERLY DATA (UNAUDITED) | |
QUARTERLY DATA (UNAUDITED) | NOTE I - QUARTERLY DATA (UNAUDITED) The table below reflects the Companys selected quarterly information for the years ended December 31, 2016, 2015 and 2014. Amounts shown are in thousands except per share amounts. First Second Third Fourth Year ended December 31, 2016 Quarter Quarter Quarter Quarter Revenue $ 219 $ 170 $ 190 $ 185 Operating (expense) (396 ) (233 ) (295 ) (327 ) Corporate general and administrative expense (166 ) (101 ) (52 ) (33 ) Gain on prepayment of debt 888 Gain on sale of land 50 Other income (expense) net (10 ) (7 ) (13 ) (80 ) Net income (loss) from continuing operations (353 ) (171 ) (170 ) 738 Net income (loss) from discontinued operations 57 38 6 (97 ) Income (loss) allocable to common shareholders $ (296 ) $ (133 ) $ (164 ) 641 Income (loss) per common share basic $ (0.15 ) $ (0.07 ) $ (0.08 ) $ 0.32 First Second Third Fourth Year ended December 31, 2015 Quarter Quarter Quarter Quarter Revenue $ 172 $ 259 $ 232 $ 157 Operating (expense) (470 ) (440 ) (527 ) (363 ) Corporate general and administrative expense (154 ) (155 ) (176 ) (120 ) Impairment of natural gas and oil properties (2,717 ) Recovery of bad debt 738 386 306 Other income (expense) net (34 ) (24 ) (14 ) (10 ) Net income (loss) from continuing operations 252 26 (179 ) (3,053 ) Net income (loss) from discontinued operations 62 84 104 82 Income (loss) allocable to common shareholders $ 314 $ 110 $ (75 ) $ (2,971 ) Income (loss) per common share basic $ 0.16 $ 0.06 $ (0.04 ) $ (1.53 ) First Second Third Fourth Year ended December 31, 2014 Quarter Quarter Quarter Quarter Revenue $ 344 $ 485 $ 410 $ 250 Operating (expense) (483 ) (425 ) (447 ) (502 ) Corporate general and administrative expense (192 ) (205 ) (208 ) (218 ) Other income (expense) net 202 (54 ) (40 ) 3 Net income (loss) from continuing operations (129 ) (199 ) (285 ) (463 ) Net income (loss) from discontinued operations 89 100 81 27 Income (loss) allocable to common shareholders $ (40 ) $ (99 ) $ (204 ) $ (436 ) Income (loss) per common share basic $ (0.02 ) $ (0.05 ) $ (0.10 ) $ (0.23 ) |
SUPPLEMENTARY FINANCIAL INFORMA
SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED) | |
SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED) | NOTE J - SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED) The Companys net ownership interests in estimated quantities of proved oil and natural gas reserves and changes in net proved reserves, all of which are located in the continental United States, are summarized below: 2016 Gas Oil (MMCF) (MBBLS) Proved developed and undeveloped reserves - January 1, 2016 2,604 58 Purchase of oil and natural gas properties in place 0 0 Discoveries and exclusions 0 0 Revisions 615 91 Sales of oil and gas properties in place 0 0 Production 0 0 December 31, 2016 3,219 149 Proved developed at beginning of year 504 59 Proved developed reserves at end of year 1,051 81 2015 Gas Oil (MMCF) (MBBLS) Proved developed and undeveloped reserves - January 1, 2015 2,866 139 Purchase of oil and natural gas properties in place 0 0 Discoveries and exclusions 0 0 Revisions (94 ) (69 ) Sales of oil and gas properties in place 0 0 Production (168 ) (12 ) December 31, 2015 2,604 58 Proved developed at beginning of year 698 70 Proved developed reserves at end of year 504 59 2016 2015 Oil and gas sales $ 764 $ 820 Operating expenses (703 ) (1,183 ) Depreciation, depletion and amortization (494 ) (617 ) Impairment of oil & gas properties (2,717 ) Results of operations $ (398 ) $ (3,697 ) The following table reflects the standardized measure of future net cash flows related to our proved reserves 2016 2015 Future oil and gas cash inflows $ 19,368 $ 14,326 Future oil & gas operating expenses (4,605 ) (2,554 ) Future development costs (2,982 ) (1,982 ) Future tax expense (1,308 ) (998 ) Future net cash flows $ 10,473 $ 8,792 10% discount to reflect timing of cash flows (4,150 ) (2,878 ) $ 6,323 $ 5,914 The following table presents the changes in our total proved undeveloped reserves. Gas Oil (MMCF) (MBBLS) Proved undeveloped reserves as of December 31, 2014 2,168 68 Revaluation of undeveloped reserves (68 ) Conversion to proved developed reserves Proved undeveloped reserves as of December 31, 2015 2,168 0 Conversion to proved developed reserves Revaluation of undeveloped reserves 68 Proved undeveloped reserves as of December 31, 2016 2,168 68 The following table reflects the capitalized costs relating to oil and gas producing activities. 2016 2015 Property acquisition costs: Proved properties $ $ 9,116 Unproved properties - - Accumulated depreciation, depletion and amortization and valuation allowance (3,202 ) Net capitalized costs $ $ 5,914 38 The following table reflects the costs incurred in oil and gas property acquisition, exploration and development activities. 2016 2015 Property acquisition costs: Proved properties $ - $ - Unproved properties - - Exploration costs - - Development costs 206 Total cost incurred $ $ 206 The following table reflects revenues and expenses directly associated with our oil and gas producing activities, including general and administrative expenses directly related to such producing activities. They do not include any allocation of interest costs or general corporate overhead and, therefore, are not necessarily indicative of the contribution to net earnings of our oil and gas operations. Income tax expense has been calculated by applying statutory income tax rates to oil and gas sales after deducting costs, including depreciation, depletion and amortization and after giving effect to permanent differences. |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 12 Months Ended |
Dec. 31, 2016 | |
ASSET RETIREMENT OBLIGATION | |
ASSET RETIREMENT OBLIGATION | NOTE K ASSET RETIREMENT OBLIGATION The Company records an asset retirement obligation (ARO) when the total depth of a drilled well is reached and the Company can reasonably estimate the fair value of an obligation to perform site reclamation, dismantle facilities or plug and abandon costs. The Company records the ARO liability on the consolidated balance sheets and capitalizes a portion of the cost in Oil and natural gas properties during the period in which the obligation is incurred. In general, the amount of an ARO and the costs capitalized will be equal to the estimated future cost to satisfy the abandonment obligation using current prices that are escalated by an assumed inflation factor up to the estimated settlement date and adjusted for the Companys credit risk. This amount is then discounted back to the date that the abandonment obligation was incurred using an assumed cost of funds for the Company. After recording these amounts, the ARO is accreted to its future estimated value using the same assumed cost of funds. The additional capitalized costs are depreciated on a unit-of-production basis or straight-line basis. In the third quarter of 2012, the Company re-evaluated its method of plugging abandoned wells and determined by doing so in-house it could lower the cost. Based upon the Companys current calculations, we have established a sufficient reserve, for accounting purposes, to plug the existing wells when necessary. 2016 2015 Asset retirement obligation, January 1 $ 2,770 $ 2,770 Acquisition of oil and gas properties Revisions in the estimated cash flows Liability incurred upon acquiring and drilling wells Liability settled upon plugging and abandoning wells Accretion of discounnt expense Asset retirement obligation, December 31 $ 2,770 $ 2,770 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE L SUBSEQUENT EVENTS The Company has evaluated subsequent events through March 31, 2017, the date the financial statements were available to be issued, and has determined that there are none to be reported. |
ACCOUNTING POLICIES (POLICIES)
ACCOUNTING POLICIES (POLICIES) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies: | |
Consolidation, Policy | Principles of Consolidation The consolidated financial statements include the accounts of New Concept Energy, Inc. and its majority-owned subsidiaries (collectively, the Company, New Concept or NCE) and are prepared on the basis of accounting principles generally accepted in the United States of America GAAP. All significant intercompany transactions and accounts have been eliminated. |
Depreciation and Amortization | Depreciation and Amortization Depreciation is provided for in amounts sufficient to relate the cost of property and equipment to operations over their estimated service lives, ranging from 3 to 40 years. Depreciation is computed by the straight-line method. Depreciation and amortization expense, which is included in operations, was $352,000, $151,000 and $176,000 for 2016, 2015 and 2014, respectively. |
Depreciation, Depletion and Amortization of Producing Oil & Gas Properties | Depreciation, Depletion and Amortization of Producing Oil & Gas Properties Depreciation, depletion and amortization (DD&A) of producing properties is computed on the unit-of-production method based on estimated proved oil and gas reserves. While total DD&A expense for the life of a property is limited to the propertys total cost, proved reserve revisions result in a change in timing of when DD&A expense is recognized. The Company recorded depletion of mineral rights of $310,000, $514,000 and $510,000 in 2016, 2015 and 2014 respectively. |
Segments | Segments The Company operates two primary business segments; oil and gas operations and retirement facilities. Segment data is provided in Note H to these consolidated financial statements. |
Major Purchaser | Major Purchaser The Company sells most of its natural gas production to one purchaser and all of its oil production to one purchaser. While there is an available market for crude oil and natural gas production, we cannot be assured that the loss of this purchaser would not have a material impact on the Company. |
Oil and Gas Reserves | Oil and Gas Reserves Our proved oil and gas reserves are estimated by independent petroleum engineers. Reserve engineering is a subjective process that is dependent upon the quality of available data and the interpretation thereof, including evaluations and extrapolations of well flow rates and reservoir pressure. Estimates by different engineers often vary, sometimes significantly. In addition, physical factors such as the results of drilling, testing and production subsequent to the date of an estimate, as well as economic factors such as changes in product prices, may justify revision of such estimates. Because proved reserves are required to be estimated using recent prices of the evaluation, estimated reserve quantities can be significantly impacted by changes in product prices. The standardized measure of discounted future net cash flows and changes in such cash flows are prepared using assumptions required by the Financial Accounting Standards Board and the Securities and Exchange Commission. Such assumptions include using recent oil and gas prices and year-end costs for estimated future development and production expenditures. Discounted future net cash flows are calculated using a 10% rate. Changes in any of these assumptions could have a significant impact on the standardized measure. Accordingly, the standardized measure does not represent managements estimated current market value of proved reserves. |
Full cost accounting | Full cost accounting The Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under this method of accounting, all costs of acquisition, exploration and development of oil and natural gas properties (including such costs as leasehold acquisition costs, geological expenditures, dry hole costs, tangible and intangible development costs and direct internal costs) are capitalized as the cost of oil and natural gas properties when incurred. The full cost method requires the Company to calculate quarterly, by cost center, a ceiling, or limitation on the amount of properties that can be capitalized on the balance sheet. To the extent capitalized costs of oil and natural gas properties, less accumulated depletion and related deferred taxes exceed the sum of the discounted future net revenues of proved oil and natural gas reserves, the lower of cost or estimated fair value of unproved properties subject to amortization, the cost of properties not being amortized, and the related tax amounts, such excess capitalized costs are charged to expense. Beginning December 31, 2009, full cost companies use the unweighted arithmetic average first day of the month price for oil and natural gas for the 12-month period preceding the calculation date to calculate the future net revenues of proved reserves. Prior to December 31, 2009, companies used the price in effect at the calculation date and had the option, under certain circumstances, to elect to use subsequent commodity prices if they increased after the calculation date. The Company assesses any unproved oil and gas properties on an annual basis for possible impairment or reduction in value. The Company assesses properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment of unproved properties not subject to amortization, the associated costs incurred to date for such properties are then included in unproved properties subject to amortization. |
Gas gathering assets | Gas gathering assets Gas gathering assets are capitalized as part of the depletable pool and ratably charged to earnings along with other capitalized exploration, drilling and development costs. |
Office and field equipment | Office and field equipment Office and field equipment are capitalized at cost and depreciated on a straight line basis over their estimated useful lives. Office and field equipment useful lives range from 5 to 30 years. |
Revenue recognition and gas imbalances | Revenue recognition and gas imbalances We use the sales method of accounting for oil and natural gas revenues. Under the sales method, revenues are recognized based on actual volumes of oil and natural gas sold to purchasers. Gas imbalances at December 31, 2016 were not significant. New Concept also follows the sales method of accounting for natural gas production imbalances and would recognize a liability if the existing proved reserves were not adequate to cover an imbalance. |
Accounting for Leases | Accounting for Leases Leases of property, plant and equipment where the Company assumes substantially all the benefits and risks of ownership are classified as finance leases. Finance leases are capitalized at the estimated present value of the underlying lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element of the finance charge is charged to the income statement over the lease period. Property, plant and equipment acquired under finance leasing contracts are depreciated over the useful life of the asset. Leases of assets under which all the risks and benefits of ownership are effectively retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the income statement on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognized as an expense in the period in which termination takes place. |
Revenue Recognition | Revenue Recognition Rental income for residential property leases is recorded when due from residents and is recognized monthly as it is earned, which is not materially different than on a straight-line basis as lease terms are generally for periods of one year or less. Revenues are recognized when products are shipped or services are provided to customers, title is transferred, the sales price is fixed or determinable and collectability is reasonably assured. Costs associated with revenues are recorded in cost of revenues. Production volumes of natural gas are sold immediately and transported via pipeline. Royalties on the production of natural gas either paid in cash or settled through the delivery of volumes. The Company includes royalties in its revenues and cost of revenues when settlement of the royalties is paid in cash, while royalties settled by the delivery of volumes are excluded from revenues and cost of revenues. The Company follows the sales method of accounting for natural gas production imbalances and would recognize a liability if the existing proved reserves were not adequate to cover an imbalance. |
Use of Estimates | Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents The Company considers all short-term deposits and money market investments with a maturity of less than three months to be cash equivalents. |
Other Intangible Assets | Other Intangible Assets The cost of acquired patents, trademarks and licenses is capitalized and amortized using the straight-line method over their useful lives. The carrying amount of each intangible asset is reviewed annually and adjusted for permanent impairment where it is considered necessary. |
Impairment of Notes Receivable | Impairment of Notes Receivable Notes receivable are identified as impaired when it is probable that interest and principal will not be collected according to the contractual terms of the note agreements. The accrual of interest is discontinued on such notes, and no income is recognized until all past due amounts of principal and interest are recovered in full. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets and certain identifiable intangibles for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. In reviewing recoverability, the Company estimates the future cash flows expected to result from use of the assets and eventually disposing of them. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss is recognized based on the assets fair value. The Company determines the fair value of assets to be disposed of and records the asset at the lower of fair value less disposal costs or carrying value. Assets are not depreciated while held for disposal. |
Sales of Real Estate | Sales of Real Estate Gains on sales of real estate are recognized to the extent permitted by Accounting Standards Codification Topic 360-20, Real Estate Sales Real Estate Sales, (ASC 360-20). Until the requirements of ASC 360-20 have been met for full profit recognition, sales are accounted for by the installment or cost recovery method, whichever is appropriate. |
Real Estate Held for Sale | Real Estate Held for Sale Accounting Standards Codification Topic 360, Property, Plant, & Equipment (ASC 360)requires that properties held for sale be reported at the lower of carrying amount or fair value less costs of sale. If a reduction in a held for sale propertys carrying amount to fair value less costs of sale is required, a provision for loss is recognized by a charge against earnings. Subsequent revisions, either upward or downward, to a held for sale propertys estimated fair value less costs of sale are recorded as an adjustment to the propertys carrying amount, but not in excess of the propertys carrying amount when originally classified as held for sale. A corresponding charge against or credit to earnings is recognized. Properties held for sale are not depreciated. |
Asset Retirement Obligation | Asset Retirement Obligation The Company records an asset retirement obligation liability on the consolidated balance sheets and capitalizes a portion of the cost in Oil and natural gas properties during the period in which the obligation is incurred. The asset retirement obligation is further described in Note K. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification, (ASC) No. 740, Accounting for Income Taxes. ASC 740 requires an asset and liability approach to financial accounting for income taxes. In the event differences between the financial reporting basis and the tax basis of the Companys assets and liabilities result in deferred tax assets, ASC 740 requires an evaluation of the probability of being able to realize the future benefits indicated by such assets. A valuation allowance is provided for a portion or all of the deferred tax assets when there is an uncertainty regarding the Companys ability to recognize the benefits of the assets in future years. Recognition of the benefits of deferred tax assets will require the Company to generate future taxable income. There is no assurance that the Company will generate earnings in future years. Since management could not determine the likelihood that the benefit of the deferred tax asset would be realized, no deferred tax asset was recognized by the Company. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There were no recent accounting pronouncements that our Company has not implemented that materially affect our consolidated financial statements. |
Schedule of Notes-Payable (Tabl
Schedule of Notes-Payable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Notes-Payable | |
Schedule of Notes Payable | Notes payable is comprised of the following (in thousands): 2016 2015 Notes payable from the acquisition of Mountaineer State Energy, Inc. $ $ 1,528 Bank Debt $ 392 $ 514 $ 392 $ 2,042 |
Schedule of Aggregate annual pr
Schedule of Aggregate annual principal maturities of long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Aggregate annual principal maturities of long-term debt (Tables): | |
Schedule of Aggregate annual principal maturities of long-term debt | Aggregate annual principal maturities of long-term debt at December 31, 2016 are as follows (in thousands): 2016 91 2017 80 2018 52 2019 50 2020 50 Thereafter 69 $ 392 |
Schedule of Effective Income Ta
Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Effective Income Tax Rate Reconciliation (Tables): | |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents the principal reasons for the difference between the Company's effective tax rate and the United States statutory income tax rate. 2016 2015 2014 Earned income tax at statutory rate $ 7 $ 0 $ 0 Net operating loss utilization (7 ) 0 0 Deferred tax asset from NOL carry forwards 3,263 3,270 2,927 Valuation allowance (3,263 ) (3,270 ) (2,927 ) Reported income tax expense (benefit) $ 0 $ 0 $ 0 Effective income tax rate 0.00 % 0.00 % 0.00 % |
Schedule of Preferred Stock (Ta
Schedule of Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Preferred Stock | |
Schedule of Preferred Stock | Preferred stock consists of the following (amounts in thousands): Year Ended December 31, 2016 2015 Series B convertible preferred stock, $10 par value, liquidation value of 1 1 $100, authorized 100 shares, issued and outstanding one share |
Schedule of Segment Reporting (
Schedule of Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Segment Reporting | |
Schedule of Segment Reporting | The following table reconciles the segment information to the corresponding amounts in the Consolidated Statements of Operations and total assets: 34 Year ended December 31, 2016 Oil and Gas Operations Corporate Total Discontinued Operations Retirement Facility Operating revenue $ 764 $ $ 764 $ 2,665 Operating expenses 687 352 1,039 1,496 Depreciation, depletion and amortization 494 494 168 Lease of Retirement Center 997 Impairment of oil and gas properties Total Operating Expenses 1,181 352 1,533 2,661 Interest income 23 23 Interest expense (38 ) (38 ) Gain on prepayment of debt 888 888 Gain on Sale of Land 50 50 Other income (expense), net (110 ) (110 ) Segment operating income (loss) $ 456 $ (412 ) $ 44 $ 4 Assets $ 6,641 $ 291 $ 6,932 $ 246 Year ended December 31, 2015 Oil and Gas Operations Corporate Total Retirement Facility Operating revenue $ 820 $ $ 820 $ 2,997 Operating expenses 1,183 605 1,788 1,623 Depreciation, depletion and amortization 617 617 62 Lease of Retirement Center 980 Impairment of oil and gas properties 2,717 2,717 Total Operating Expenses 4,517 605 5,122 2,665 Interest income 12 12 Interest expense (62 ) (62 ) Bad debt recovery 1,430 1,430 Other income (expense), net (32 ) (32 ) Segment operating income (loss) $ (3,759 ) $ 805 $ (2,954 ) $ 332 Assets $ 7,420 $ 1,025 $ 8,445 $ 430 Year ended December 31, 2014 Oil and Gas Operations Corporate Total Retirement Facility Operating revenue $ 1,489 $ $ 1,489 $ 2,874 Operating expenses 1,233 823 2,056 1,551 Depreciation, depletion and amortization 620 620 65 Lease of retirement facility 961 Impairment of oil and gas properties Total Operating Expenses 1,853 823 2,676 2,577 Interest income 5 5 Interest expense (91 ) (91 ) Other income (expense), net (19 ) 216 197 Segment operating income (loss) $ (474 ) $ (602 ) $ (1,076 ) $ 297 Assets $ 10,621 $ 1,208 $ 11,829 $ 445 |
Schedule of Quarterly Financial
Schedule of Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Quarterly Financial Information | |
Schedule of Quarterly Financial Information | NOTE I - QUARTERLY DATA (UNAUDITED) The table below reflects the Companys selected quarterly information for the years ended December 31, 2016, 2015 and 2014. Amounts shown are in thousands except per share amounts. First Second Third Fourth Year ended December 31, 2016 Quarter Quarter Quarter Quarter Revenue $ 219 $ 170 $ 190 $ 185 Operating (expense) (396 ) (233 ) (295 ) (327 ) Corporate general and administrative expense (166 ) (101 ) (52 ) (33 ) Gain on prepayment of debt 888 Gain on sale of land 50 Other income (expense) net (10 ) (7 ) (13 ) (80 ) Net income (loss) from continuing operations (353 ) (171 ) (170 ) 738 Net income (loss) from discontinued operations 57 38 6 (97 ) Income (loss) allocable to common shareholders $ (296 ) $ (133 ) $ (164 ) 641 Income (loss) per common share basic $ (0.15 ) $ (0.07 ) $ (0.08 ) $ 0.32 First Second Third Fourth Year ended December 31, 2015 Quarter Quarter Quarter Quarter Revenue $ 172 $ 259 $ 232 $ 157 Operating (expense) (470 ) (440 ) (527 ) (363 ) Corporate general and administrative expense (154 ) (155 ) (176 ) (120 ) Impairment of natural gas and oil properties (2,717 ) Recovery of bad debt 738 386 306 Other income (expense) net (34 ) (24 ) (14 ) (10 ) Net income (loss) from continuing operations 252 26 (179 ) (3,053 ) Net income (loss) from discontinued operations 62 84 104 82 Income (loss) allocable to common shareholders $ 314 $ 110 $ (75 ) $ (2,971 ) Income (loss) per common share basic $ 0.16 $ 0.06 $ (0.04 ) $ (1.53 ) First Second Third Fourth Year ended December 31, 2014 Quarter Quarter Quarter Quarter Revenue $ 344 $ 485 $ 410 $ 250 Operating (expense) (483 ) (425 ) (447 ) (502 ) Corporate general and administrative expense (192 ) (205 ) (208 ) (218 ) Other income (expense) net 202 (54 ) (40 ) 3 Net income (loss) from continuing operations (129 ) (199 ) (285 ) (463 ) Net income (loss) from discontinued operations 89 100 81 27 Income (loss) allocable to common shareholders $ (40 ) $ (99 ) $ (204 ) $ (436 ) Income (loss) per common share basic $ (0.02 ) $ (0.05 ) $ (0.10 ) $ (0.23 ) |
Schedule of information on Oil
Schedule of information on Oil and Gas Industries (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of information on Oil and Gas Industries | |
Schedule of information on Oil and Gas Industries | The Companys net ownership interests in estimated quantities of proved oil and natural gas reserves and changes in net proved reserves, all of which are located in the continental United States, are summarized below: 2016 Gas Oil (MMCF) (MBBLS) Proved developed and undeveloped reserves - January 1, 2016 2,604 58 Purchase of oil and natural gas properties in place 0 0 Discoveries and exclusions 0 0 Revisions 615 91 Sales of oil and gas properties in place 0 0 Production 0 0 December 31, 2016 3,219 149 Proved developed at beginning of year 504 59 Proved developed reserves at end of year 1,051 81 2015 Gas Oil (MMCF) (MBBLS) Proved developed and undeveloped reserves - January 1, 2015 2,866 139 Purchase of oil and natural gas properties in place 0 0 Discoveries and exclusions 0 0 Revisions (94 ) (69 ) Sales of oil and gas properties in place 0 0 Production (168 ) (12 ) December 31, 2015 2,604 58 Proved developed at beginning of year 698 70 Proved developed reserves at end of year 504 59 2016 2015 Oil and gas sales $ 764 $ 820 Operating expenses (703 ) (1,183 ) Depreciation, depletion and amortization (494 ) (617 ) Impairment of oil & gas properties (2,717 ) Results of operations $ (398 ) $ (3,697 ) |
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows | The following table reflects the standardized measure of future net cash flows related to our proved reserves 2016 2015 Future oil and gas cash inflows $ 19,368 $ 14,326 Future oil & gas operating expenses (4,605 ) (2,554 ) Future development costs (2,982 ) (1,982 ) Future tax expense (1,308 ) (998 ) Future net cash flows $ 10,473 $ 8,792 10% discount to reflect timing of cash flows (4,150 ) (2,878 ) $ 6,323 $ 5,914 |
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities | The following table presents the changes in our total proved undeveloped reserves. Gas Oil (MMCF) (MBBLS) Proved undeveloped reserves as of December 31, 2014 2,168 68 Revaluation of undeveloped reserves (68 ) Conversion to proved developed reserves Proved undeveloped reserves as of December 31, 2015 2,168 0 Conversion to proved developed reserves Revaluation of undeveloped reserves 68 Proved undeveloped reserves as of December 31, 2016 2,168 68 |
Schedule of Capitalized Costs Relating to Oil and Gas Producing Activities | The following table reflects the capitalized costs relating to oil and gas producing activities. 2016 2015 Property acquisition costs: Proved properties $ $ 9,116 Unproved properties - - Accumulated depreciation, depletion and amortization and valuation allowance (3,202 ) Net capitalized costs $ $ 5,914 |
Schedule of Costs incurred in oil and gas property acquisition, exploration and development | The following table reflects the costs incurred in oil and gas property acquisition, exploration and development activities. 2016 2015 Property acquisition costs: Proved properties $ - $ - Unproved properties - - Exploration costs - - Development costs 206 Total cost incurred $ $ 206 |
Schedule of Asset Retirement Ob
Schedule of Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Asset Retirement Obligations: | |
Schedule of Asset Retirement Obligations | In the third quarter of 2012, the Company re-evaluated its method of plugging abandoned wells and determined by doing so in-house it could lower the cost. Based upon the Companys current calculations, we have established a sufficient reserve, for accounting purposes, to plug the existing wells when necessary. 2016 2015 Asset retirement obligation, January 1 $ 2,770 $ 2,770 Acquisition of oil and gas properties Revisions in the estimated cash flows Liability incurred upon acquiring and drilling wells Liability settled upon plugging and abandoning wells Accretion of discounnt expense Asset retirement obligation, December 31 $ 2,770 $ 2,770 |
Description And Presentation (D
Description And Presentation (Details) | Dec. 31, 2016USD ($) | Feb. 28, 2014USD ($) |
Description And Presentation | ||
Oil and gas wells of the company | 153 | |
Non-producing wells | 31 | |
Related equipment and mineral leases in acres | 20,000 | |
Estimates of future net revenues in millions | $ 6,300,000 | |
Residents in retirement community | 114 | |
Company acquired 7.4 acres of undeveloped land in Desoto | $ 624,000 | |
Company sold the land | $ 700,000 | |
Recorded a gain on sale of land | $ 50,000 |
Significant Accounting Policies
Significant Accounting Policies - Depreciation (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Depreciation and amortization expense included in operations | |||
Depreciation and amortization expense included in operations | $ 352,000 | $ 151,000 | $ 176,000 |
Depletion of mineral rights | $ 310,000 | $ 514,000 | $ 510,000 |
Property and equipment to operations over their estimated service lives minimum (Years) | 5 | ||
Property and equipment to operations over their estimated service lives maximum (Years) | 40 | ||
Office and field equipment useful lives range minimum (years) | 5 | ||
Office and field equipment useful lives range maximum (years) | 30 |
Related party transactions (Det
Related party transactions (Details) - USD ($) | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related party transactions | |||||
The company has recorded a reserve of (the full balance) for the combined note. | $ 10,000,000 | ||||
Company incurred obligations to Pillar totaling approximately | $ 2,100,000 | 2,100,000 | |||
Pillar agreed to relieve the Company of its obligation to pay | 2,100,000 | $ 2,100,000 | |||
Company incurred obligations to Pillar totaling to which was reduced by Prime by a like amount approximately | $ 1,600,000 | ||||
Obligations to pay | $ 1,400,000 | ||||
The Company and several other defendants settled a lawsuit | 225,000 | ||||
Paid the entire amount and has a note receivable from one of the other defendants | $ 112,500 | ||||
Accrued interest thereon was paid | $ 112,500 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Notes Payable Details | ||
Notes payable from the acquisition of Mountaineer State Energy, Inc. | $ 0 | $ 1,528 |
Bank Debt | 392 | 514 |
Notes payables total | $ 392 | $ 2,042 |
Aggregate annual principal matu
Aggregate annual principal maturities of long-term debt (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Aggregate annual principal maturities of long-term debt | |
Annual principal maturities 2016 | $ 91 |
Annual principal maturities 2017 | 80 |
Annual principal maturities 2018 | 52 |
Annual principal maturities 2019 | 50 |
Annual principal maturities 2020 | 50 |
Annual principal maturities Thereafter | 69 |
Total Annual principal maturities | $ 392 |
Components of Effective income
Components of Effective income tax rate (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Effective income tax rate | |||
Earned income tax at statutory rate | $ 7 | $ 0 | $ 0 |
Net operating loss utilization | (7) | 0 | 0 |
Deferred tax asset from NOL carry forwards | 3,263 | 3,270 | 2,927 |
Valuation allowance | (3,263) | (3,270) | (2,927) |
Reported income tax expense (benefit) | $ 0 | $ 0 | $ 0 |
Effective income tax rate | 0.00% | 0.00% | 0.00% |
Net operating loss carry forwards of approximately | $ 9,300,000 |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Preferred stock consists of the following | ||
Series B convertible preferred stock, $10 par value, liquidation value of $100, authorized 100 shares, issued and outstanding one share | $ 1 | $ 1 |
Series B preferred stock,liquidation value per share | $ 100 | $ 100 |
Dividends rate | 6.00% |
Contingencies (Details)
Contingencies (Details) - USD ($) | Aug. 30, 2016 | May 08, 2015 | Feb. 14, 2012 | Dec. 31, 2009 |
Contingencies Details | ||||
Actual damages found by the jury | $ 66,500,000 | |||
The individual jointly and severally for actual damages | 31,160,000 | |||
Exemplary damages and individual and EurEnergy | $ 8,500,000 | |||
Reinstated the jury award of actual damages jointly and severely against the individual and EurEnergy | $ 66,500,000 | |||
Reinstating the jury's verdict on damage | $ 66,500,000 | |||
Court declined to reinstate the trial court's judgment | $ 31,160,000 | |||
Individual defendant deposited alternative security with the court to supersede the judgment in excess | $ 56,000,000 |
Segment information (Details)
Segment information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Oil and Gas operations | |||
Operating revenue | $ 764 | $ 820 | $ 1,489 |
Operating expenses | 687 | 1,183 | 1,233 |
Depreciation, depletion and amortization | 494 | 617 | 620 |
Lease of Retirement Center | 0 | 0 | 0 |
Impairment of oil and gas properties | 0 | 2,717 | 0 |
Total Operating Expenses | 1,181 | 4,517 | 1,853 |
Interest Income | 23 | 0 | 0 |
Interest expense | (38) | (62) | (91) |
Gain on prepayment of debt | 888 | 0 | 0 |
Other income | 0 | 0 | (19) |
Segment operating income (loss) | 456 | (3,759) | (474) |
Assets Oil and Gas operations | 6,641 | 7,420 | 10,621 |
Corporate | |||
Operating revenue Corporate | 0 | 0 | 0 |
Operating expenses Corporate | 352 | 605 | 823 |
Total Operating Expenses Corporate | 352 | 605 | 823 |
Interest Income Corporate | 0 | 12 | 5 |
Gain on Sale of Land Corporate | 50 | 0 | 0 |
Bad debt recovery Corporate | 0 | 1,430 | 0 |
Other income Corporate | (110) | (32) | 216 |
Segment operating income (loss) Corporate | (412) | 805 | (602) |
Assets Oil and Gas operations Corporate | 291 | 1,025 | 1,208 |
Total | |||
Operating revenue Total | 764 | 820 | 1,489 |
Operating expenses Total | 1,039 | 1,788 | 2,056 |
Depreciation, depletion and amortization Total | 494 | 617 | 620 |
Impairment of oil and gas properties Total | 0 | 2,717 | 0 |
Total Operating Expenses Total | 1,533 | 5,122 | 2,676 |
Interest Income Total | 23 | 12 | 5 |
Interest expense Total | (38) | (62) | (91) |
Gain on prepayment of debt Total | 888 | 0 | 0 |
Bad debt recovery Total | 0 | 1,430 | 0 |
Gain on Sale of Land Total | 50 | 0 | 0 |
Other income Total | (110) | (32) | 197 |
Segment operating income (loss) Total | 44 | (2,954) | (1,076) |
Assets Oil and Gas operations Total | 6,932 | 8,445 | 11,829 |
Discontinued Operations Retirement Facility | |||
Operating revenue Discontinued Operations Retirement Facility | 2,665 | 2,997 | 2,874 |
Operating expenses Discontinued Operations Retirement Facility | 1,496 | 1,623 | 1,551 |
Depreciation, depletion and amortization Discontinued Operations Retirement Facility | 168 | 62 | 65 |
Lease of Retirement Center Discontinued Operations Retirement Facility | 997 | 980 | 961 |
Total Operating Expenses Discontinued Operations Retirement Facility | 2,661 | 2,665 | 2,577 |
Segment operating income (loss) Discontinued Operations Retirement Facility | 4 | 332 | 297 |
Assets Oil and Gas operations Discontinued Operations Retirement Facility | $ 246 | $ 430 | $ 445 |
Quarterly Operations Informatio
Quarterly Operations Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
First Quarter Details | |||
First Quarter Revenue | $ 219 | $ 172 | $ 344 |
First Quarter Operating (expense) | (396) | (470) | (483) |
First Quarter Corporate general and administrative expense | (166) | (154) | (192) |
First Quarter Gain on prepayment of debt | 0 | 0 | 0 |
First Quarter Impairment of natural gas and oil properties | 0 | 0 | 0 |
First Quarter Recovery of bad debt | 0 | 738 | 0 |
First Quarter Other income (expense) net | (10) | (34) | 202 |
First Quarter Net income (loss) from continuing operations | (353) | 252 | (129) |
First Quarter Net income (loss) from discontinued operations | 57 | 62 | 89 |
First Quarter Income (loss) allocable to common shareholders | $ (296) | $ 314 | $ (40) |
First Quarter Income (loss) per common share - basic | $ (0.15) | $ 0.16 | $ (0.02) |
Second Quarter Details | |||
Second Quarter Revenue | $ 170 | $ 259 | $ 485 |
Second Quarter Operating (expense) | (233) | (440) | (425) |
Second Quarter Corporate general and administrative expense | (101) | (155) | (205) |
Second Quarter Gain on prepayment of debt | 0 | 0 | 0 |
Second Quarter Impairment of natural gas and oil properties | 0 | 0 | 0 |
Second Quarter Recovery of bad debt | 0 | 386 | 0 |
Second Quarter Other income (expense) net | (7) | (24) | (54) |
Second Quarter Net income (loss) from continuing operations | (171) | 26 | (199) |
Second Quarter Net income (loss) from discontinued operations | 38 | 84 | 100 |
Second Quarter Income (loss) allocable to common shareholders | $ (133) | $ 110 | $ (99) |
Second Quarter Income (loss) per common share - basic | $ (0.07) | $ 0.06 | $ (0.05) |
Third Quarter Details | |||
Third Quarter Revenue | $ 190 | $ 232 | $ 410 |
Third Quarter Operating (expense) | (295) | (527) | (447) |
Third Quarter Corporate general and administrative expense | (52) | (176) | (208) |
Third Quarter Gain on prepayment of debt | 0 | 0 | 0 |
Third Quarter Impairment of natural gas and oil properties | 0 | 0 | 0 |
Third Quarter Recovery of bad debt | 0 | 306 | 0 |
Third Quarter Other income (expense) net | (13) | (14) | (40) |
Third Quarter Net income (loss) from continuing operations | (170) | (179) | (285) |
Third Quarter Net income (loss) from discontinued operations | 6 | 104 | 81 |
Third Quarter Income (loss) allocable to common shareholders | $ (164) | $ (75) | $ (204) |
Third Quarter Income (loss) per common share - basic | $ (0.08) | $ (0.04) | $ (0.10) |
Fourth Quarter Details | |||
Fourth Quarter Revenue | $ 185 | $ 157 | $ 250 |
Fourth Quarter Operating (expense) | (327) | (363) | (502) |
Fourth Quarter Corporate general and administrative expense | (33) | (120) | (218) |
Fourth Quarter Gain on prepayment of debt | 888 | 0 | 0 |
Fourth Quarter Impairment of natural gas and oil properties | 0 | (2,717) | 0 |
Fourth Quarter Recovery of bad debt | 0 | 0 | 0 |
Fourth Quarter Gain on sale of land | 50 | 0 | 0 |
Fourth Quarter Other income (expense) net | (80) | (10) | 3 |
Fourth Quarter Net income (loss) from continuing operations | 738 | (3,053) | (463) |
Fourth Quarter Net income (loss) from discontinued operations | (97) | 82 | 27 |
Fourth Quarter Income (loss) allocable to common shareholders | $ 641 | $ (2,971) | $ (436) |
Fourth Quarter Income (loss) per common share - basic | $ 0.31 | $ (1.53) | $ (0.23) |
Supplementary Financial Infor38
Supplementary Financial Information Gas and Oil (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
SUPPLEMENTARY FINANCIAL INFORMATION ON OIL AND NATURAL GAS EXPLORATION Details | ||
Oil and gas sales | $ 764 | $ 820 |
Operating expenses | (703) | (1,183) |
Depreciation, depletion and amortization | (494) | (617) |
Impairment of oil and gas properties | 0 | (2,717) |
Results of operations of exploration | $ (398) | $ (3,697) |
Supplementary Financial Infor39
Supplementary Financial Information on oil and natural gas exploration (Details) | Dec. 31, 2016 | Dec. 31, 2015 |
SUPPLEMENTARY FINANCIAL INFORMATION Gas and Oil | ||
Gas (MMCF) Proved developed and undeveloped reserves - 1/1/2016 | 2,604 | 2,866 |
Gas (MMCF) Purchase of oil and natural gas properties in place | 0 | 0 |
Gas (MMCF) Discoveries and exclusions | 0 | 0 |
Gas (MMCF) Revisions | 615 | (94) |
Gas (MMCF) Sales of oil and gas properties in place | 0 | 0 |
Gas (MMCF) Production | 0 | (168) |
Gas (MMCF) Proved developed and undeveloped reserves - 12/31/2016 | 3,219 | 2,604 |
Gas (MMCF) Proved developed at beginning (of year) | 504 | 698 |
Gas (MMCF) Proved developed reserves at end (of year) | 1,051 | 504 |
SUPPLEMENTARY FINANCIAL INFORMATION Oil (MBBLS)(Details) | ||
Oil (MBBLS) Proved developed and undeveloped reserves - 1/1/2015 | 58 | 139 |
Oil (MBBLS) Purchase of oil and natural gas properties in place | 0 | 0 |
Oil (MBBLS) Discoveries and exclusions | 0 | 0 |
Oil (MBBLS) Revisions | 91 | (69) |
Oil (MBBLS) Sales of oil and gas properties in place | 0 | 0 |
Oil (MBBLS) Production | 0 | (12) |
Oil (MBBLS) Proved developed and undeveloped reserves 12/31/2015 | 149 | 58 |
Oil (MBBLS) Proved developed at beginning (of year) | 59 | 70 |
Oil (MBBLS) Proved developed reserves at end( of year) | 81 | 59 |
Standardized measure of future
Standardized measure of future net cash flows related to proved reserves (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Standardized measure of future net cash flows related to proved reserves | ||
Future oil and gas cash inflows | $ 19,368 | $ 14,326 |
Future oil & gas operating expenses | (4,605) | (2,554) |
Future development costs | (2,982) | (1,982) |
Future tax expense | (1,308) | (998) |
Future net cash flows | 10,473 | 8,792 |
10% discount to reflect timing of cash flows | (4,150) | (2,878) |
Future net cash flows related to proved reserves | $ 6,323 | $ 5,914 |
Changes in total proved undevel
Changes in total proved undeveloped reserves (Details) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Gas (MMCF) | |||
Proved undeveloped reserves - Gas | 2,168 | 2,168 | 2,168 |
Revaluation of undeveloped reserves - Gas | 0 | 0 | 0 |
Conversion to proved developed reserves - Gas | 0 | 0 | 0 |
Oil (MBBLS) | |||
Proved undeveloped reserves - Oil | 68 | 0 | 68 |
Revaluation of undeveloped reserves - Oil | 0 | 68 | (68) |
Conversion to proved developed reserves - Oil | 0 | 0 | 0 |
Capitalized costs relating to o
Capitalized costs relating to oil and gas producing activities (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Property acquisition costs: | ||
Proved properties | $ 0 | $ 9,116 |
Unproved properties | 0 | 0 |
Accumulated depreciation, depletion and amortization and valuation allowance | 0 | (3,202) |
Net capitalized costs | $ 0 | $ 5,914 |
Costs incurred in oil and gas p
Costs incurred in oil and gas property acquisition, exploration and development activities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property acquisition costs: | ||
Proved properties | $ 0 | $ 0 |
Unproved properties | 0 | 0 |
Exploration costs | 0 | 0 |
Development costs | 0 | 206 |
Total cost incurred | $ 0 | $ 206 |
Asset retirement obligation (De
Asset retirement obligation (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Asset retirement obligation Details | ||
Asset retirement obligation, January 1 | $ 2,770 | $ 2,770 |
Acquisition of oil and gas properties | 0 | 0 |
Revisions in the estimated cash flows | 0 | 0 |
Liability incurred upon acquiring and drilling wells | 0 | 0 |
Liability settled upon plugging and abandoning wells | 0 | 0 |
Accretion of discounnt expense | 0 | 0 |
Asset retirement obligation, December 31 | $ 2,770 | $ 2,770 |