Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 14, 2014 | |
Document Information | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'DUNR | ' |
Entity Registrant Name | 'DUNE ENERGY INC | ' |
Entity Central Index Key | '0001092839 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 73,149,359 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Cash | $6,245,851 | $3,251,371 |
Accounts receivable | 7,480,009 | 7,258,425 |
Current derivative asset | ' | 7,544 |
Prepayments and other current assets | 1,942,468 | 1,398,947 |
Total current assets | 15,668,328 | 11,916,287 |
Oil and gas properties, using successful efforts accounting-proved | 308,257,886 | 293,745,839 |
Less accumulated depreciation, depletion and amortization | -98,061,800 | -61,927,723 |
Net oil and gas properties | 210,196,086 | 231,818,116 |
Property and equipment, net of accumulated depreciation of $269,087 and $227,207 | 114,056 | 152,903 |
Deferred financing costs, net of accumulated amortization of $2,029,023 and $1,586,904 | 1,517,255 | 1,835,743 |
Other assets | 3,975,400 | 3,783,312 |
Other Assets, Noncurrent, Total | 5,606,711 | 5,771,958 |
TOTAL ASSETS | 231,471,125 | 249,506,361 |
Current liabilities: | ' | ' |
Accounts payable | 7,865,073 | 10,139,205 |
Accrued liabilities | 8,846,875 | 9,895,057 |
Current derivative liability | 375,041 | ' |
Current maturities on long-term debt (see note 3) | 38,366,341 | 994,895 |
Total current liabilities | 55,453,330 | 21,029,157 |
Long-term debt (see note 3) | 65,848,608 | 84,180,940 |
Other long-term liabilities | 21,731,034 | 21,449,651 |
Total liabilities | 143,032,972 | 126,659,748 |
Commitments and contingencies | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $.001 par value, $1,000,000 shares authorized, 250,000 shares undesignated, no shares issued and outstanding | ' | ' |
Common stock, $.001 par value, 4,200,000,000 shares authorized, 74,008,952 and 72,644,643 shares issued | 74,009 | 72,645 |
Treasury stock, at cost (223,760 and 145,270 shares) | -298,154 | -223,821 |
Additional paid-in capital | 179,187,242 | 177,832,574 |
Accumulated deficit | -90,524,944 | -54,834,785 |
Total stockholders' equity | 88,438,153 | 122,846,613 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $231,471,125 | $249,506,361 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Property and equipment, accumulated depreciation | $269,087 | $227,207 |
Deferred financing costs, accumulated amortization | $2,029,023 | $1,586,904 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares undesignated | 250,000 | 250,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 4,200,000,000 | 4,200,000,000 |
Common stock, shares issued | 74,008,952 | 72,644,643 |
Treasury stock, shares | 223,760 | 145,270 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues: | ' | ' | ' | ' |
Oil and gas revenues | $13,093,311 | $16,783,479 | $25,082,321 | $28,905,142 |
Other revenues | ' | ' | ' | 963,150 |
Total revenues | 13,093,311 | 16,783,479 | 25,082,321 | 29,868,292 |
Operating expenses: | ' | ' | ' | ' |
Lease operating expense and production taxes | 5,786,749 | 7,848,003 | 11,300,311 | 14,709,404 |
Accretion of asset retirement obligation | 546,684 | 402,732 | 1,093,368 | 805,464 |
Depletion, depreciation and amortization | 4,002,960 | 4,793,818 | 6,804,005 | 7,961,704 |
General and administrative expense | 2,657,465 | 3,129,377 | 5,308,750 | 5,717,459 |
Impairment of oil and gas properties | 29,351,000 | ' | 29,351,000 | ' |
Loss (gain) on settlement of asset retirement obligation liability | 761,464 | -22,920 | 761,464 | ' |
Total operating expense | 43,106,322 | 16,151,010 | 54,618,898 | 29,194,031 |
Operating income (loss) | -30,013,011 | 632,469 | -29,536,577 | 674,261 |
Other income(expense): | ' | ' | ' | ' |
Other income | 10,033 | 90 | 10,493 | 692 |
Interest expense | -2,877,542 | -2,484,209 | -5,598,474 | -4,919,188 |
Gain (loss) on derivative instruments | -315,617 | 510,288 | -565,601 | -307,302 |
Total other income (expense) | -3,183,126 | -1,973,831 | -6,153,582 | -5,225,798 |
Net loss | ($33,196,137) | ($1,341,362) | ($35,690,159) | ($4,551,537) |
Net loss per share: | ' | ' | ' | ' |
Basic and diluted | ($0.45) | ($0.02) | ($0.49) | ($0.07) |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic and diluted | 73,816,311 | 63,238,696 | 73,385,130 | 61,156,848 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net Loss | ($35,690,159) | ($4,551,537) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depletion, depreciation and amortization | 6,804,005 | 7,961,704 |
Amortization of deferred financing costs | 442,119 | 396,454 |
Stock-based compensation | 1,356,032 | 1,288,589 |
Loss on settlement of asset retirement obligation liability | 761,464 | ' |
Accretion of asset retirement obligation | 1,093,368 | 805,464 |
Impairment of oil and gas properties | 29,351,000 | ' |
Unrealized loss on derivative instruments | 382,585 | 332,000 |
Changes in: | ' | ' |
Accounts receivable | -200,632 | -1,693,865 |
Prepayments and other assets | 1,082,450 | 3,817,168 |
Payments made to settle asset retirement obligations | -330,985 | -196,314 |
Accounts payable and accrued liabilities | -897,110 | 2,805,040 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 4,154,137 | 10,964,703 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Cash investment in proved and unproved properties | -14,512,047 | -27,143,528 |
Purchase of furniture and fixtures | -3,033 | -145,477 |
Increase in other assets | -192,088 | -516,684 |
NET CASH USED IN INVESTING ACTIVITIES | -14,707,168 | -27,805,689 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from sale of common stock | ' | 20,000,000 |
Proceeds from short-term debt | 15,000,000 | ' |
Purchase of treasury stock | -74,333 | ' |
Common stock issuance costs | ' | -219,513 |
Payments on short-term debt | -1,254,525 | -1,391,607 |
Increase in long-term debt issuance costs | -123,631 | -105,522 |
Payments on long-term debt | ' | -8,000,000 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 13,547,511 | 10,283,358 |
NET CHANGE IN CASH BALANCE | 2,994,480 | -6,557,628 |
Cash balance at beginning of period | 3,251,371 | 22,793,916 |
Cash balance at end of period | 6,245,851 | 16,236,288 |
SUPPLEMENTAL DISCLOSURES | ' | ' |
Interest paid | 1,419,189 | 1,226,811 |
Income taxes paid | ' | ' |
NON-CASH INVESTING AND FINANCIAL DISCLOSURES | ' | ' |
Accrued interest converted to long-term debt | 3,667,668 | 3,269,464 |
Prepaid insurance financed with debt | 1,625,971 | ' |
Non-cash investment in proved and unproved properties in accounts payable | ' | $1,904,486 |
Accounting_Policies_and_Basis_
Accounting Policies and Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies and Basis of Presentation | ' |
NOTE 1—ACCOUNTING POLICIES AND BASIS OF PRESENTATION | |
Dune Energy, Inc., a Delaware corporation (“Dune” or the “Company”), is an independent energy company that was formed in 1998. Since May 2004, Dune has been engaged in the exploration, development, acquisition and exploitation of crude oil and natural gas properties. Dune sells its oil and gas production primarily to domestic pipelines and refineries. The Company’s operations are presently focused in the states of Texas and Louisiana. | |
Dune prepared these financial statements according to the instructions for Form 10-Q. Therefore, the financial statements do not include all disclosures required by generally accepted accounting principles in the United States. However, Dune has recorded all transactions and adjustments necessary to fairly present the financial statements included in this Form 10-Q. The adjustments made are normal and recurring. The following notes describe only the material changes in accounting policies, account details or financial statement notes during the first six months of 2014. Therefore, please read these financial statements and notes to the financial statements together with the audited financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2013. The income statement for the six months ended June 30, 2014 cannot necessarily be used to project results for the full year. | |
Reclassifications | |
Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year presentation. | |
Revenue recognition | |
Dune records oil and gas revenues following the entitlement method of accounting for production in which any excess amount received above Dune’s share is treated as a liability. If less than Dune’s share is received, the underproduction is recorded as an asset. Dune did not have an imbalance position in terms of volumes or values at June 30, 2014. Additionally, Dune records the sale of emission credits as other revenue in the period they are sold. | |
Impairment of oil and gas properties | |
Impairment analysis is performed on an ongoing basis. In addition to using estimates of oil and gas reserve volumes in conducting impairment analysis, it is also necessary to estimate future oil and gas prices and costs, considering all available evidence at the date of review. The impairment evaluation triggers include a significant long-term decrease in current and projected prices or reserve volumes, an accumulation of project costs significantly in excess of the amount originally expected and historical and current negative operating losses. Although we evaluate future oil and gas prices as part of the impairment analysis, we do not view short-term decreases in prices, even if significant, as impairment triggering events. | |
During the three and six-months ended June 30, 2014, the Company impaired its oil and gas properties by $29,351,000, which is reflected in the accompanying consolidated financial statements. This impairment occurred in the Live Oak and North Broussard fields and was primarily the result of removing proved undeveloped reserves, which had been included in our previous reserve reports in excess of five years, from the June 30, 2014 Reserve Report. These opportunities remain available as future drilling projects which will be conducted on an exploratory basis. | |
Loss per share | |
Basic earnings per share amounts are calculated based on the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is based on the weighted average numbers of shares of common stock outstanding for the periods, including dilutive effects of stock options and warrants granted. Dilutive options and warrants that are issued during a period or that expire or are canceled during a period are reflected in the computations for the time they were outstanding during the periods being reported. Since Dune has incurred losses for all periods, the impact of the common stock equivalents would be antidilutive and therefore are not included in the calculation. | |
Fair value of financial instruments | |
The Company’s financial instruments consist of cash, receivables, payables and long-term debt. The carrying amount of cash, receivables and payables approximate fair value because of the short-term nature of these items. The carrying amount of long-term debt approximates fair value due to the relationship between the interest rate on long-term debt and the Company’s incremental risk adjusted borrowing rate. |
Liquidity_and_Going_Concern
Liquidity and Going Concern | 6 Months Ended |
Jun. 30, 2014 | |
Liquidity and Going Concern | ' |
NOTE 2—LIQUIDITY AND GOING CONCERN | |
The accompanying financial statements have been prepared assuming Dune will continue as a going concern. At June 30, 2014, Dune’s cash balance was $6.2 million while the Company also registered a net loss of $35.7 million for the first six months of fiscal year 2014. In addition, as of June 30, 2014, Dune has negative working capital of $39.8 million resulting from the $37.0 million revolving credit loan being classified as a current liability and due upon demand of the Lender. Management is and will continue to strive to raise additional capital and/or restructure its debt obligations. However, should these efforts prove unsuccessful, Dune’s ability to continue to operate as a going concern in 2014 would be substantially in doubt. |
Debt_Financing
Debt Financing | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Financing | ' | ||||||||
NOTE 3—DEBT FINANCING | |||||||||
Long-term debt consists of: | |||||||||
June 30, 2014 | December 31, 2013 | ||||||||
Revolving credit loan | $ | 37,000,000 | $ | 22,000,000 | |||||
Insurance note payable | 1,366,341 | 994,895 | |||||||
Floating Rate Senior Secured Notes due 2016 | 65,848,608 | 62,180,940 | |||||||
Total long-term debt | 104,214,949 | 85,175,835 | |||||||
Less: current maturities | (38,366,341 | ) | (994,895 | ) | |||||
Long-term debt, net of current maturities | $ | 65,848,608 | $ | 84,180,940 | |||||
Credit Agreement | |||||||||
On December 22, 2011, concurrent with our Restructuring (as defined herein), Wayzata assigned to Bank of Montreal its rights and obligations under our existing Credit Agreement pursuant to an agreement, by and among the Company and Dune Properties, Inc., as borrowers, Dune Operating Company, as guarantor, and Wells Fargo and Wayzata, as agents and lenders. In connection with such assignment, on December 22, 2011, the Company entered into the Amended and Restated Credit Agreement, dated as of December 22, 2011 (the “Credit Agreement”), among the Company, as borrower, Bank of Montreal, as administrative agent, CIT Capital Securities LLC, as syndication agent, and the lenders party thereto (the “Lenders”). | |||||||||
The Credit Agreement will mature on December 22, 2015. The Lenders have committed to provide up to $200 million of loans and up to $10 million of letters of credit, provided that the sum of the outstanding loans and the face amount of the outstanding letters of credit cannot exceed $200 million at any time and further provided that the availability of loans under the New Credit Agreement will be limited by a borrowing base (initially set at $63 million, reduced to $50 million as of May 1, 2012 and further reduced to $47.5 million as of December 17, 2013) as in effect from time to time, which is determined by the Lenders at their discretion based upon their evaluation of the Company’s oil and gas properties. The principal balance of the loans may be prepaid at any time, in whole or in part, without premium or penalty, except for losses incurred by the Lenders as a consequence of such prepayment. Amounts repaid under the Credit Agreement may be reborrowed. | |||||||||
On July 15, 2014, Bank of Montreal notified the Company that Lenders had completed their interim redetermination of the Company’s borrowing base. Such notification provided that, effective as of July 1, 2014, the Company’s borrowing base will be reduced by $2.5 million, and thereafter will be further reduced by $2.5 million on the first business day of each month (each a “Reduction Date”) until October 1, 2014, at which time, the borrowing base will be $37.5 million. The letter amendment provides that outstanding borrowings in excess of the borrowing base on any Reduction Date must be repaid immediately or such excess will constitute an event of default under the Credit Agreement. | |||||||||
The Company borrowed $3.0 million in the second quarter of 2014. Borrowings under the Credit Agreement equaled $37.0 million and $2.0 million of letters of credit as of June 30, 2014. | |||||||||
As security for its obligations under the Credit Agreement, the Company and its domestic subsidiaries have granted to the administrative agent (for the benefit of the Lenders) a first priority lien on substantially all of their assets, including liens on not less than 85% of the total value of proved oil and gas reserves and not less than 90% of the total value of proved developed and producing reserves. | |||||||||
Generally, outstanding borrowings under the Credit Agreement are priced at LIBOR plus a margin or, at the Company’s option, a domestic bank rate plus a margin. The LIBOR margin is 2.75% if usage is greater than 75% and steps down to 2.25% if usage is 50% or less and the domestic rate margin is 1.75% if usage is greater than 75% and steps down to 1.25% if usage is 50% or less. The Company is charged the above LIBOR margin plus an additional fronting fee of 0.25% on outstanding letters of credit, which are considered usage of the revolving credit facility, plus a nominal administrative fee. The Company is also required to pay a commitment fee equal to 0.50% of the average daily amount of unborrowed funds. | |||||||||
The Credit Agreement contains various affirmative and negative covenants as well as other customary representations and warranties and events of default. | |||||||||
On September 25, 2012, the parties entered into an Amendment to the Credit Agreement. Prior to the amendment, the Credit Agreement provided that the Company would not, as of the last day of any fiscal quarter, permit its ratio of Total Debt (as such term is defined in the Credit Agreement) as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 4.0 to 1.0. The Amendment to the Credit Agreement provided that the Company will not, as of the last day of the fiscal quarter ending September 30, 2012 or December 31, 2012, permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 5.0 to 1.0. On March 31, 2013, and thereafter, the Company would not, as of the last day of the fiscal quarter, permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 4.0 to 1.0. An amendment fee of $100,000 was paid for this change. | |||||||||
On May 3, 2013, the parties entered into the Second Amendment to the Credit Agreement. The Second Amendment to the Credit Agreement provided that the Company will not, as of the last day of the fiscal quarter ending March 31, 2013 permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 5.0 to 1.0. It further provides that the Company will not, as of the last day of the fiscal quarter ending June 30, 2013 permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 4.5 to 1.0. On September 30, 2013, and thereafter, the Company will not, as of the last day of the fiscal quarter, permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 4.0 to 1.0. An amendment fee of $100,000 was paid for this change. | |||||||||
On December 17, 2013, the parties entered into the Third Amendment to the Credit Agreement. The Third Amendment to the Credit Agreement provides that (i) the Company will not, as of the last day of the fiscal quarter ending December 31, 2013 permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 5.0 to 1.0 and (ii) the Company will not, as of the last day of the fiscal quarter ending March 31, 2014 permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 5.0 to 1.0. On June 30, 2014, and thereafter, the Company will not, as of the last day of the fiscal quarter, permit its ratio of Total Debt as of such day to EBITDAX for the immediately preceding four fiscal quarters ending on such day to be greater than 4.0 to 1.0. In addition, the Amendment includes a “change of management” provision that specifies that should either our chief executive officer, James A. Watt or our chief financial officer, Frank T. Smith, Jr. die, become incompetent or disabled for 120 consecutive days or cease to be active in the Company’s affairs, an Event of Default (as such term is defined in the Credit Agreement) shall be deemed to have occurred unless Mr. Watt or Mr. Smith is replaced within 120 days by an individual acceptable to the administrative agent. An amendment fee of $95,000 was paid for this change. | |||||||||
The Company determined that the Total Debt to EBITDAX ratio for the four immediately preceding quarters ending June 30, 2014 was 5.28 to 1.0 which fell short of the required ratio. The Credit Agreement provides that the failure to observe any financial covenant will constitute an event of default, and Bank of Montreal, at the request of the majority Lenders, may terminate the commitments under the Credit Agreement and cause all of the Company’s obligations under the Credit Agreement to immediately become due and payable, upon notice to the Company. The event of default is deemed continuing until waived in writing by the Lenders. The Company has entered into discussions with the Credit Agreement Lenders in hopes of obtaining a favorable resolution to the situation. No assurances can be given at this time that the matter will be resolved in a satisfactory manner and the $37.0 million has been reflected on the balance sheet as current maturities on long-term debt. The Company is seeking other sources of financing. | |||||||||
Restructuring of Senior Secured Notes | |||||||||
On December 22, 2011, the Company completed its restructuring (the “Restructuring”), which included the consummation of the exchange of $297,012,000 aggregate principal amount, or approximately 99%, of the Senior Secured Notes for 2,485,616 shares of the Company’s newly issued common stock, 247,506 shares of a new series of preferred stock that mandatorily converted into 35,021,098 shares of the Company’s newly issued common stock and approximately $49.5 million aggregate principal amount of newly issued Floating Rate Senior Secured Notes due 2016 (the “Notes”). In addition to completing the exchange offer for the Senior Secured Notes, the Company completed a consent solicitation of the holders of the Senior Secured Notes, in which it procured the requisite consent of the holders of approximately 99% of the aggregate principal amount of the Senior Secured Notes to eliminate all the restrictive covenants and certain events of default in the Indenture. | |||||||||
The Notes were issued pursuant to an indenture, dated December 22, 2011 (the “Notes Indenture”), by and among the Company, the guarantors named therein and U.S. Bank National Association, as trustee and collateral agent. The Notes will mature on December 15, 2016. The Company did not receive any proceeds from the issuance of the Notes. | |||||||||
Interest on the Notes is payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, beginning on March 15, 2012. Subject to applicable law, interest accrues on the Notes at a variable rate per annum equal to 13% plus the greater of 1.5% and Three-Month LIBOR, determined as of two London banking days prior to the original issue date and reset quarterly on each interest payment date. Such interest consists of (a) a mandatory cash interest component (that shall accrue at a fixed rate of 3% per annum and be payable solely in cash) and (b) a component that shall accrue at a variable rate and be payable in either cash or by accretion of principal. The Company has elected to increase the aggregate principal amount of the Notes by a cumulative amount of $16,344,616 in lieu of making cash quarterly interest payments, including $3,667,668 during the six months ended June 30, 2014 and $6,751,077 during the year-ended December 31, 2013. This results in an outstanding balance of $65,848,608 at June 30, 2014. |
Oil_and_Gas_Commodity_Derivati
Oil and Gas Commodity Derivatives | 6 Months Ended | ||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||||
Oil and Gas Commodity Derivatives | ' | ||||||||||||||||||||||||||||||||||
NOTE 4—OIL AND GAS COMMODITY DERIVATIVES | |||||||||||||||||||||||||||||||||||
In accordance with the requirements of the Credit Agreement entered into in connection with the Restructuring, the Company entered into hedge agreements in January 2012. All derivative contracts are recorded at fair market value in accordance with FASB ASC 815 and ASC 820 and included in the consolidated balance sheets as assets or liabilities. The Company did not designate derivative instruments as accounting hedges and recognizes gains or losses on the change in fair value of the hedge instruments in current earnings. | |||||||||||||||||||||||||||||||||||
For the three and six months ended June 30, 2014 Dune recorded a loss on the derivatives of ($315,617) and ($565,601) composed of an unrealized loss on changes in mark-to-market valuations of ($174,928) and ($382,585) and a realized loss on cash settlements of ($140,689) and ($183,016) respectively. | |||||||||||||||||||||||||||||||||||
DUNE ENERGY, INC. | |||||||||||||||||||||||||||||||||||
Current Hedge Positions as of June 30, 2014 | |||||||||||||||||||||||||||||||||||
Crude Trade Details | |||||||||||||||||||||||||||||||||||
Instrument | Beginning | Ending | Floor | Ceiling | Fixed | Total | Bbl/d | Total | |||||||||||||||||||||||||||
Date | Date | Bbls | Volumes | ||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||
Collar | 7/1/14 | 12/31/14 | $ | 90 | $ | 99 | 68,000 | 370 | 68,000 | ||||||||||||||||||||||||||
68,000 | 370 | 68,000 | |||||||||||||||||||||||||||||||||
Days | 184 | ||||||||||||||||||||||||||||||||||
Hedged Daily Production (bbl) | 370 | ||||||||||||||||||||||||||||||||||
Natural Gas Trade Details | |||||||||||||||||||||||||||||||||||
Instrument | Beginning | Ending | Floor | Ceiling | Fixed | Total | Mmbtu/d | Total | |||||||||||||||||||||||||||
Date | Date | Mmbtu | Volumes | ||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||
Collar | 7/1/14 | 12/31/14 | $ | 3.75 | $ | 5.01 | 252,000 | 1,370 | 252,000 | ||||||||||||||||||||||||||
252,000 | 1,370 | 252,000 | |||||||||||||||||||||||||||||||||
Days | 184 | ||||||||||||||||||||||||||||||||||
Hedged Daily Production (mmbtu) | 1,370 |
Restricted_Stock_Stock_Options
Restricted Stock, Stock Options and Warrants | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Restricted Stock, Stock Options and Warrants | ' | ||||||||||||||||
NOTE 5—RESTRICTED STOCK, STOCK OPTIONS AND WARRANTS | |||||||||||||||||
The Company utilizes restricted stock, stock options and warrants to compensate employees, officers, directors and consultants. Total stock-based compensation expense including options, warrants and restricted stock was $692,587 and $1,356,032 for the three months and six months ended June 30, 2014 and $656,284 and $1,288,589 for the three and six months ended June 30, 2013, respectively. | |||||||||||||||||
Pursuant to a unanimous written consent dated March 5, 2012, the board of directors of the Company authorized the adoption of the Dune Energy, Inc. 2012 Stock Incentive Plan (the “2012 Plan”), to become effective immediately. The 2012 Plan is administered by the Compensation Committee of Dune’s board of directors. Under the 2012 Plan, the Compensation Committee may grant any one or a combination of incentive options, non-qualified stock options, restricted stock, stock appreciation rights and phantom stock awards, as well as purchased stock, bonus stock and other performance awards. The aggregate number of shares of common stock that may be issued or transferred to grantees under the 2012 Plan could not exceed 3,250,000 shares. On April 25, 2013, the Company’s board of directors approved an amendment to the Company’s 2012 Plan. The 2012 Plan amendment provided for an increase of 1,750,000 in the number of authorized shares in the 2012 Plan from 3,250,000 to 5,000,000. This amendment was subsequently approved by Dune’s stockholders. | |||||||||||||||||
On April 25, 2014, the non-employee directors voluntarily agreed to return 400,000 stock options granted on March 5, 2012 which were cancelled by the Company. | |||||||||||||||||
On June 4, 2014, the board of directors unanimously approved the grant to each of the five non-employee directors of 57,803 deferred stock units (a total of $49,133 worth of deferred stock units per director at a price of $0.85 per share) as recommended by the Compensation Committee. Subject to each director’s continuous service to the Company, the units vest over a two year period with one-third vesting immediately and the remaining two-thirds vesting ratably on the anniversary date in subsequent years. The Company will issue to each director one share of common stock on the settlement date for each vested unit held by the director. The settlement date will be the first to occur of (i) the fifth anniversary of the date of grant and (ii) a Change of Control (as defined in the deferred stock unit agreement). The following table reflects the vesting activity associated with the 2012 Plan, as amended: | |||||||||||||||||
Grant Date | Shares | Shares | Shares | Shares | |||||||||||||
Awarded | Canceled | Vested | Unvested | ||||||||||||||
March 5, 2012 stock options | 600,000 | (400,000 | ) | (200,000 | ) | — | |||||||||||
March 5, 2012 stock grants | 831,500 | (138,330 | ) | (425,560 | ) | 267,610 | |||||||||||
October 1, 2012 stock grants | 225,000 | — | (75,001 | ) | 149,999 | ||||||||||||
December 3, 2012 stock grants | 659,933 | (4,900 | ) | (218,354 | ) | 436,679 | |||||||||||
February 20, 2013 stock grant | 103,978 | — | (34,660 | ) | 69,318 | ||||||||||||
April 25, 2013 deferred stock units | 346,818 | — | (250,483 | ) | 96,335 | ||||||||||||
December 10, 2013 stock grant | 579,996 | (25,436 | ) | (5,785 | ) | 548,775 | |||||||||||
December 12, 2013 stock grant | 156,695 | — | — | 156,695 | |||||||||||||
March 7, 2014 stock grant | 156,695 | — | — | 156,695 | |||||||||||||
March 7, 2014 stock grant | 1,000,000 | — | — | 1,000,000 | |||||||||||||
June 4, 2014 deferred stock units | 289,015 | — | (96,340 | ) | 192,675 | ||||||||||||
4,949,630 | (568,666 | ) | (1,306,183 | ) | 3,074,781 | ||||||||||||
Common shares available to be awarded at June 30, 2014 are as follows: | |||||||||||||||||
Total shares authorized | 5,000,000 | ||||||||||||||||
Total shares issued | (4,949,630 | ) | |||||||||||||||
Total shares canceled | 568,666 | ||||||||||||||||
Total shares available | 619,036 | ||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
NOTE 6—FAIR VALUE MEASUREMENTS | |||||||||||||||||
Certain assets and liabilities are reported at fair value on a recurring basis in Dune’s consolidated balance sheet. The following table summarizes the valuation of our investments and financial instruments by FASB ASC 820-10-05 pricing levels as of June 30, 2014: | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
at June 30, 2014 Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Oil and gas derivative assets | $ | — | $ | — | $ | — | $ | — | |||||||||
Oil and gas derivative liabilities | — | (375,041 | ) | — | (375,041 | ) | |||||||||||
Total | $ | — | $ | (375,041 | ) | $ | — | $ | (375,041 | ) | |||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies | ' |
NOTE 7—COMMITMENTS AND CONTINGENCIES | |
The Company, as an owner or lessee and operator of oil and gas properties, is subject to various federal, state and local laws and regulations relating to discharge of materials into, and protection of, the environment. | |
These laws and regulations may, among other things, impose liability on the lessee under an oil and gas lease for the cost of pollution clean-up resulting from operations and subject the lessee to liability for pollution damages. In some instances, the Company may be directed to suspend or cease operations in the affected area. Dune maintains insurance coverage, which it believes is customary in the industry, although Dune is not fully insured against all environmental risks. |
Remediation_Costs
Remediation Costs | 6 Months Ended |
Jun. 30, 2014 | |
Remediation Costs | ' |
NOTE 8—REMEDIATION COSTS | |
In connection with the acquisition of Goldking, the Company inherited a remediation contingency, which after conducting its due diligence and subsequent testing, the Company believes is the responsibility of a third party. However, federal and state regulators have determined Dune is the responsible party for cleanup of this area. Dune has maintained a passive maintenance of this site since it was first discovered after Hurricane Katrina. The Company still believes another party has the primary responsibility for this occurrence but is committed to working with the various state and federal authorities on resolution of this issue. Plans for testing and analysis of various containment products and remediation procedures by third party consultants have been approved and in the third quarter of 2013, the Company recorded a liability of $4,586,000. Costs of $1,587,687 have been incurred through the second quarter of 2014 resulting in a $2,998,313 balance of which $700,313 is included in accrued liabilities and $2,298,000 is included in other long-term liabilities in the consolidated balance sheets at June 30, 2014. |
Accounting_Policies_and_Basis_1
Accounting Policies and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Reclassifications | ' |
Reclassifications | |
Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year presentation. | |
Revenue recognition | ' |
Revenue recognition | |
Dune records oil and gas revenues following the entitlement method of accounting for production in which any excess amount received above Dune’s share is treated as a liability. If less than Dune’s share is received, the underproduction is recorded as an asset. Dune did not have an imbalance position in terms of volumes or values at June 30, 2014. Additionally, Dune records the sale of emission credits as other revenue in the period they are sold. | |
Impairment of oil and gas properties | ' |
Impairment of oil and gas properties | |
Impairment analysis is performed on an ongoing basis. In addition to using estimates of oil and gas reserve volumes in conducting impairment analysis, it is also necessary to estimate future oil and gas prices and costs, considering all available evidence at the date of review. The impairment evaluation triggers include a significant long-term decrease in current and projected prices or reserve volumes, an accumulation of project costs significantly in excess of the amount originally expected and historical and current negative operating losses. Although we evaluate future oil and gas prices as part of the impairment analysis, we do not view short-term decreases in prices, even if significant, as impairment triggering events. | |
During the three and six-months ended June 30, 2014, the Company impaired its oil and gas properties by $29,351,000, which is reflected in the accompanying consolidated financial statements. This impairment occurred in the Live Oak and North Broussard fields and was primarily the result of removing proved undeveloped reserves, which had been included in our previous reserve reports in excess of five years, from the June 30, 2014 Reserve Report. These opportunities remain available as future drilling projects which will be conducted on an exploratory basis. | |
Loss per share | ' |
Loss per share | |
Basic earnings per share amounts are calculated based on the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is based on the weighted average numbers of shares of common stock outstanding for the periods, including dilutive effects of stock options and warrants granted. Dilutive options and warrants that are issued during a period or that expire or are canceled during a period are reflected in the computations for the time they were outstanding during the periods being reported. Since Dune has incurred losses for all periods, the impact of the common stock equivalents would be antidilutive and therefore are not included in the calculation. | |
Fair value of financial instruments | ' |
Fair value of financial instruments | |
The Company’s financial instruments consist of cash, receivables, payables and long-term debt. The carrying amount of cash, receivables and payables approximate fair value because of the short-term nature of these items. The carrying amount of long-term debt approximates fair value due to the relationship between the interest rate on long-term debt and the Company’s incremental risk adjusted borrowing rate. |
Debt_Financing_Tables
Debt Financing (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Long-Term Debt | ' | ||||||||
Long-term debt consists of: | |||||||||
June 30, 2014 | December 31, 2013 | ||||||||
Revolving credit loan | $ | 37,000,000 | $ | 22,000,000 | |||||
Insurance note payable | 1,366,341 | 994,895 | |||||||
Floating Rate Senior Secured Notes due 2016 | 65,848,608 | 62,180,940 | |||||||
Total long-term debt | 104,214,949 | 85,175,835 | |||||||
Less: current maturities | (38,366,341 | ) | (994,895 | ) | |||||
Long-term debt, net of current maturities | $ | 65,848,608 | $ | 84,180,940 | |||||
Oil_and_Gas_Commodity_Derivati1
Oil and Gas Commodity Derivatives (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||||
Hedge Positions | ' | ||||||||||||||||||||||||||||||||||
DUNE ENERGY, INC. | |||||||||||||||||||||||||||||||||||
Current Hedge Positions as of June 30, 2014 | |||||||||||||||||||||||||||||||||||
Crude Trade Details | |||||||||||||||||||||||||||||||||||
Instrument | Beginning | Ending | Floor | Ceiling | Fixed | Total | Bbl/d | Total | |||||||||||||||||||||||||||
Date | Date | Bbls | Volumes | ||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||
Collar | 7/1/14 | 12/31/14 | $ | 90 | $ | 99 | 68,000 | 370 | 68,000 | ||||||||||||||||||||||||||
68,000 | 370 | 68,000 | |||||||||||||||||||||||||||||||||
Days | 184 | ||||||||||||||||||||||||||||||||||
Hedged Daily Production (bbl) | 370 | ||||||||||||||||||||||||||||||||||
Natural Gas Trade Details | |||||||||||||||||||||||||||||||||||
Instrument | Beginning | Ending | Floor | Ceiling | Fixed | Total | Mmbtu/d | Total | |||||||||||||||||||||||||||
Date | Date | Mmbtu | Volumes | ||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||
Collar | 7/1/14 | 12/31/14 | $ | 3.75 | $ | 5.01 | 252,000 | 1,370 | 252,000 | ||||||||||||||||||||||||||
252,000 | 1,370 | 252,000 | |||||||||||||||||||||||||||||||||
Days | 184 | ||||||||||||||||||||||||||||||||||
Hedged Daily Production (mmbtu) | 1,370 |
Restricted_Stock_Stock_Options1
Restricted Stock, Stock Options and Warrants (Tables) (2012 Stock Incentive Plan) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
2012 Stock Incentive Plan | ' | ||||||||||||||||
Vesting Activity Associated with Stock Incentives Plan | ' | ||||||||||||||||
The following table reflects the vesting activity associated with the 2012 Plan, as amended: | |||||||||||||||||
Grant Date | Shares | Shares | Shares | Shares | |||||||||||||
Awarded | Canceled | Vested | Unvested | ||||||||||||||
March 5, 2012 stock options | 600,000 | (400,000 | ) | (200,000 | ) | — | |||||||||||
March 5, 2012 stock grants | 831,500 | (138,330 | ) | (425,560 | ) | 267,610 | |||||||||||
October 1, 2012 stock grants | 225,000 | — | (75,001 | ) | 149,999 | ||||||||||||
December 3, 2012 stock grants | 659,933 | (4,900 | ) | (218,354 | ) | 436,679 | |||||||||||
February 20, 2013 stock grant | 103,978 | — | (34,660 | ) | 69,318 | ||||||||||||
April 25, 2013 deferred stock units | 346,818 | — | (250,483 | ) | 96,335 | ||||||||||||
December 10, 2013 stock grant | 579,996 | (25,436 | ) | (5,785 | ) | 548,775 | |||||||||||
December 12, 2013 stock grant | 156,695 | — | — | 156,695 | |||||||||||||
March 7, 2014 stock grant | 156,695 | — | — | 156,695 | |||||||||||||
March 7, 2014 stock grant | 1,000,000 | — | — | 1,000,000 | |||||||||||||
June 4, 2014 deferred stock units | 289,015 | — | (96,340 | ) | 192,675 | ||||||||||||
4,949,630 | (568,666 | ) | (1,306,183 | ) | 3,074,781 | ||||||||||||
Common Shares Available to be Awarded | ' | ||||||||||||||||
Common shares available to be awarded at June 30, 2014 are as follows: | |||||||||||||||||
Total shares authorized | 5,000,000 | ||||||||||||||||
Total shares issued | (4,949,630 | ) | |||||||||||||||
Total shares canceled | 568,666 | ||||||||||||||||
Total shares available | 619,036 | ||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Summary of Valuation of Investments and Financial Instruments | ' | ||||||||||||||||
The following table summarizes the valuation of our investments and financial instruments by FASB ASC 820-10-05 pricing levels as of June 30, 2014: | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
at June 30, 2014 Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Oil and gas derivative assets | $ | — | $ | — | $ | — | $ | — | |||||||||
Oil and gas derivative liabilities | — | (375,041 | ) | — | (375,041 | ) | |||||||||||
Total | $ | — | $ | (375,041 | ) | $ | — | $ | (375,041 | ) | |||||||
Accounting_Policies_and_Basis_2
Accounting Policies and Basis of Presentation (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2014 | Jun. 30, 2014 | |
Principal Accounting Policies and Basis of Preparation [Line Items] | ' | ' |
Impairment of oil and gas properties | $29,351,000 | $29,351,000 |
Liquidity_And_Going_Concern_Ad
Liquidity And Going Concern - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Going Concern [Line Items] | ' | ' | ' | ' | ' | ' |
Cash | $6,245,851 | $16,236,288 | $6,245,851 | $16,236,288 | $3,251,371 | $22,793,916 |
Net Loss | -33,196,137 | -1,341,362 | -35,690,159 | -4,551,537 | ' | ' |
Working capital deficit | 39,800,000 | ' | 39,800,000 | ' | ' | ' |
Revolving credit loan being classified as a current liability | $37,000,000 | ' | $37,000,000 | ' | ' | ' |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Debt Instrument | ' | ' |
Revolving credit loan | $37,000,000 | $22,000,000 |
Total long-term debt | 104,214,949 | 85,175,835 |
Less: current maturities | -38,366,341 | -994,895 |
Long-term debt, net of current maturities | 65,848,608 | 84,180,940 |
Insurance Notes | ' | ' |
Debt Instrument | ' | ' |
Notes payable | 1,366,341 | 994,895 |
Floating Rate Senior Secured Notes Due 2016 | ' | ' |
Debt Instrument | ' | ' |
Notes payable | $65,848,608 | $62,180,940 |
Debt_Financing_Additional_Info
Debt Financing - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 9 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 17, 2013 | 3-May-13 | Dec. 31, 2011 | Sep. 30, 2012 | Jun. 30, 2014 | Dec. 17, 2013 | Dec. 31, 2012 | 1-May-12 | Dec. 22, 2011 | Dec. 22, 2011 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 22, 2011 | Dec. 22, 2011 | Dec. 22, 2011 | Oct. 01, 2014 | Dec. 22, 2011 | Dec. 22, 2011 | Jun. 30, 2014 | Sep. 30, 2013 | Dec. 17, 2013 | 3-May-13 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 22, 2011 | Dec. 22, 2011 | Dec. 22, 2011 | Dec. 22, 2011 | Dec. 22, 2011 | Dec. 22, 2011 | Jul. 15, 2014 | Jul. 15, 2014 | Dec. 22, 2011 | Dec. 22, 2011 | Dec. 22, 2011 | Jun. 30, 2014 | Dec. 22, 2011 | |
Floating Rate Senior Secured Notes Due 2016 | Floating Rate Senior Secured Notes Due 2016 | New Credit Agreement | New Credit Agreement | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | Financial Restructuring | ||||
Floating Rate Senior Secured Notes Due 2016 | Floating Rate Senior Secured Notes Due 2016 | Floating Rate Senior Secured Notes Due 2016 | Floating Rate Senior Secured Notes Due 2016 | 10.5% Senior Secured Notes Due 2012 | 10.5% Senior Secured Notes Due 2012 | Scenario, Forecast | Scenario 5 | Scenario 6 | New Credit Agreement | New Credit Agreement | New Credit Agreement | New Credit Agreement | New Credit Agreement | New Credit Agreement | Minimum | Minimum | Maximum | Maximum | Common Stock | Preferred Stock | Subsequent Event | Subsequent Event | Proved Oil and Gas Reserves | Proved Developed and Producing Reserves | Loans | Letter of Credit | Letter of Credit | |||||||||||||||
Floating Rate Senior Secured Notes Due 2016 | Scenario 5 | Scenario 5 | Scenario 6 | Scenario 6 | 10.5% Senior Secured Notes Due 2012 | 10.5% Senior Secured Notes Due 2012 | As of July 1, 2014 | Thereafter on the first business day of each month until October 1, 2014, | Minimum | Minimum | ||||||||||||||||||||||||||||||||
Domestic | Domestic | |||||||||||||||||||||||||||||||||||||||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22-Dec-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, maximum borrowing amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000,000 | ' | $10,000,000 |
Credit facility, initial borrowing base limit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, current borrowing base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,500,000 | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | 37,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, reduction in borrowing base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | 2,500,000 | ' | ' | ' | ' | ' |
Credit facility, borrowed | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, borrowings | 37,000,000 | 22,000,000 | ' | ' | ' | ' | ' | ' | ' | 37,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' |
Credit facility, lien as percentage of assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | 90.00% | ' | ' | ' |
LIBOR margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | 2.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowing usage percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | 75.00% | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Domestic bank rate margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional fronting fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% |
Commitment fee as percentage of average daily amount of unborrowed funds | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Debt to EBITDAX | ' | ' | 400.00% | ' | ' | 500.00% | 500.00% | ' | ' | 528.00% | ' | 500.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400.00% | 400.00% | 500.00% | 450.00% | 400.00% | 500.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amendment fee paid | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consecutive days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '120 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current maturities on long-term debt | 38,366,341 | 994,895 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount of notes exchanged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 297,012,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of notes outstanding exchanged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock newly issued for the Restructuring | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,485,616 | 247,506 | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for conversion of preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,021,098 | ' | ' | ' | ' | ' | ' | ' | ' |
Note newly issued for the Restructuring | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Dec-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate, base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate, margin rate, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash interest component, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
New Notes, increase in aggregate principal amount in lieu of making cash quarterly interest payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,344,616 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,667,668 | 6,751,077 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes outstanding balance | ' | ' | ' | $65,848,608 | $62,180,940 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $65,848,608 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Oil_and_Gas_Commodity_Derivati2
Oil and Gas Commodity Derivatives - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Gain (loss) on derivative instruments | ($315,617) | $510,288 | ($565,601) | ($307,302) |
Unrealized gain (loss) on changes in derivative instruments | -174,928 | ' | -382,585 | -332,000 |
Realized gain (loss) on cash settlements of derivative instruments | ($140,689) | ' | ($183,016) | ' |
Hedge_Positions_Detail
Hedge Positions (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
bbl | |
Crude Oil Contract | ' |
Derivative | ' |
Total Bbls | 68,000 |
Crude Oil Contract | Collar One | ' |
Derivative | ' |
Beginning Date | 1-Jul-14 |
Ending Date | 31-Dec-14 |
Floor | $90 |
Ceiling | 99 |
Total Bbls | 68,000 |
Crude Oil Contract | Year 2014 | ' |
Derivative | ' |
Days | '184 days |
Hedged Daily Production (bbl) | 370 |
Total Bbls | 68,000 |
Bbl/d | 370 |
Crude Oil Contract | Year 2014 | Collar One | ' |
Derivative | ' |
Total Bbls | 68,000 |
Bbl/d | 370 |
Natural Gas Contract | ' |
Derivative | ' |
Total Mmbtu | 252,000 |
Natural Gas Contract | Collar One | ' |
Derivative | ' |
Beginning Date | 1-Jul-14 |
Ending Date | 31-Dec-14 |
Floor | 3.75 |
Ceiling | $5.01 |
Total Mmbtu | 252,000 |
Natural Gas Contract | Year 2014 | ' |
Derivative | ' |
Days | '184 days |
Hedged Daily Production (mmbtu) | 1,370 |
Total Mmbtu | 252,000 |
Mmbtu/d | 1,370 |
Natural Gas Contract | Year 2014 | Collar One | ' |
Derivative | ' |
Total Mmbtu | 252,000 |
Mmbtu/d | 1,370 |
Restricted_Stock_Stock_Options2
Restricted Stock Stock Options and Warrants - Additional Information (Detail) (USD $) | 6 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 04, 2014 | Jun. 04, 2014 | Jun. 04, 2014 | Jun. 04, 2014 | Apr. 25, 2014 | Dec. 31, 2012 | Apr. 25, 2013 | Apr. 25, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
2012 Stock Incentive Plan | Deferred Stock Units | Deferred Stock Units | Deferred Stock Units | Deferred Stock Units | Non Employee Director | Before Amendment | After Amendment | After Amendment | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | |||
2013 annual bonus for an officer of the Company | 2013 annual bonus for an officer of the Company | 2013 annual bonus for an officer of the Company | 2013 annual bonus for an officer of the Company | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | |||||||||
Director | Vesting immediately | Vesting ratably on the anniversary date in subsequent years | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total stock-based compensation expense | $1,356,032 | $1,288,589 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $692,587 | $656,284 | $1,356,032 | $1,288,589 |
Increase in authorized shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,750,000 | ' | ' | ' | ' | ' |
Shares authorized | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | 3,250,000 | ' | 5,000,000 | ' | ' | ' | ' |
Stock options forfeited | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' |
Number of non employee directors | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred stock granted to non employee directors,share per director | ' | ' | ' | 57,803 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred share granted to non employee directors,value per director | ' | ' | ' | $49,133 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred share granted to non employee directors, per share | ' | ' | ' | ' | $0.85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares vesting period | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares vesting percentage | ' | ' | ' | ' | ' | 33.30% | 66.60% | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock to be issued for each vested unit held by the director | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting_Activity_Associated_wi
Vesting Activity Associated with Restricted Stock Awards (Detail) (2012 Stock Incentive Plan) | 6 Months Ended |
Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Shares Awarded | 4,949,630 |
Shares Canceled | -568,666 |
Shares Vested | -1,306,183 |
Shares Unvested | 3,074,781 |
March 05, 2012 | Non Qualified Options | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Grant Date | 5-Mar-12 |
Shares Awarded | 600,000 |
Shares Canceled | -400,000 |
Shares Vested | -200,000 |
March 05, 2012 | Restricted Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Grant Date | 5-Mar-12 |
Shares Awarded | 831,500 |
Shares Canceled | -138,330 |
Shares Vested | -425,560 |
Shares Unvested | 267,610 |
October 01, 2012 | Restricted Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Grant Date | 1-Oct-12 |
Shares Awarded | 225,000 |
Shares Vested | -75,001 |
Shares Unvested | 149,999 |
December 03, 2012 | Restricted Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Grant Date | 3-Dec-12 |
Shares Awarded | 659,933 |
Shares Canceled | -4,900 |
Shares Vested | -218,354 |
Shares Unvested | 436,679 |
20-Feb-13 | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Grant Date | 20-Feb-13 |
Shares Awarded | 103,978 |
Shares Vested | -34,660 |
Shares Unvested | 69,318 |
25-Apr-13 | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Grant Date | 25-Apr-13 |
Shares Awarded | 346,818 |
Shares Vested | -250,483 |
Shares Unvested | 96,335 |
10-Dec-13 | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Grant Date | 10-Dec-13 |
Shares Awarded | 579,996 |
Shares Canceled | -25,436 |
Shares Vested | -5,785 |
Shares Unvested | 548,775 |
12-Dec-13 | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Grant Date | 12-Dec-13 |
Shares Awarded | 156,695 |
Shares Unvested | 156,695 |
March 7, 2014 | Restricted Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Grant Date | 7-Mar-14 |
Shares Awarded | 1,000,000 |
Shares Unvested | 1,000,000 |
March 7, 2014 | Performance Shares | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Grant Date | 7-Mar-14 |
Shares Awarded | 156,695 |
Shares Unvested | 156,695 |
4-Jun-14 | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Grant Date | 4-Jun-14 |
Shares Awarded | 289,015 |
Shares Vested | -96,340 |
Shares Unvested | 192,675 |
Common_Shares_Available_for_Aw
Common Shares Available for Award (Detail) (2012 Stock Incentive Plan) | 6 Months Ended |
Jun. 30, 2014 | |
2012 Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Total shares authorized | 5,000,000 |
Total shares issued | -4,949,630 |
Total shares canceled | 568,666 |
Total shares available | 619,036 |
Summary_of_Valuation_of_Invest
Summary of Valuation of Investments and Financial Instruments (Detail) (USD $) | Jun. 30, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' |
Total | ($375,041) |
Oil and gas | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' |
Derivative assets | ' |
Derivative liabilities | -375,041 |
Level 1 | Oil and gas | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' |
Derivative assets | ' |
Level 2 | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' |
Total | -375,041 |
Level 2 | Oil and gas | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' |
Derivative assets | ' |
Derivative liabilities | -375,041 |
Level 3 | Oil and gas | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' |
Derivative assets | ' |
Remediation_Costs_Additional_I
Remediation Costs - Additional Information (Detail) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Sep. 30, 2013 | |
Site Contingency [Line Items] | ' | ' |
Remediation contingency liability, gross | ' | $4,586,000 |
Remediation costs incurred | 1,587,687 | ' |
Recorded contingency liability, outstanding | 2,998,313 | ' |
Accrued liabilities | ' | ' |
Site Contingency [Line Items] | ' | ' |
Recorded contingency liability, outstanding | 700,313 | ' |
Other long-term liabilities | ' | ' |
Site Contingency [Line Items] | ' | ' |
Recorded contingency liability, outstanding | $2,298,000 | ' |