Eco-Stim Energy Solutions (ESESQ) 10-Q 12 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 10, 2014
Document And Entity Information	'	'
Entity Registrant Name	'Eco-Stim Energy Solutions, Inc.	'
Entity Central Index Key	'0001135657	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	5,705,773
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2014	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$7,709,941	$4,292,122
Accounts receivable	81,961	'
Inventory	241,770	'
Prepaids	893,271	959,611
Other assets	543,295	3,100
Total current assets	9,470,238	5,254,833
Property, plant and equipment, net	17,103,223	3,532,659
Other non-current assets	985,863	488,633
Total assets	27,559,324	9,276,125
Current liabilities:	'	'
Accounts payable	385,687	677,031
Accrued expenses	1,832,295	1,223,600
Short term notes payable	14,286	187,315
Current portion of capital lease payable	576,976	428,050
Total current liabilities	2,809,244	2,515,996
Non-current liabilities:	'	'
Long term notes payable	11,863,885	'
Long-term capital lease payable	2,241,837	2,721,114
Total non-current liabilities	14,105,722	2,721,114
Stockholders' equity	'	'
Common stock	5,705	3,985
Additional paid-in capital	20,730,149	10,007,490
Accumulated other comprehensive income	'	25,749
Accumulated deficit	-10,091,496	-5,998,209
Total stockholders' equity	10,644,358	4,039,015
Total liabilities and stockholders' equity	$27,559,324	$9,276,125

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Statement [Abstract]	'	'	'	'
Revenues	$88,106	'	$645,402	$4,800
Operating cost and expenses:	'	'	'	'
Cost of sales	984,861	'	2,207,326	2,400
Selling, general, and administrative expenses	1,677,637	937,206	4,294,761	2,462,067
Depreciation and amortization expense	88,008	2,212	175,778	4,358
Total operating costs and expenses	2,750,506	939,418	6,677,865	2,468,825
Operating loss	-2,662,400	-939,418	-6,032,463	-2,464,025
Interest and other income (expense)	2,403,493	-25,295	1,939,176	-63,885
Provision for income taxes	'	'	'	'
Net loss	($258,907)	($964,713)	($4,093,287)	($2,527,910)
Loss per share:	'	'	'	'
Basic and diluted	($0.05)	($0.86)	($0.91)	($2.26)
Weighted average number of common shares outstanding-basic and diluted	5,537,799	1,117,316	4,512,360	1,117,316

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Statement of Comprehensive Income [Abstract]	'	'	'	'
Net loss	($258,907)	($964,713)	($4,093,287)	($2,527,910)
Other comprehensive loss:	'	'	'	'
Foreign currency cumulative translation adjustment	'	'	-25,749	'
Other comprehensive loss	'	'	-25,749	'
Comprehensive loss for the year	($258,907)	($964,713)	($4,119,036)	($2,527,910)

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (USD $)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2013	$3,985	$10,007,490	$25,749	($5,998,209)	$4,039,015
Balance, shares at Dec. 31, 2013	3,985,206	'	'	'	'
Exercise of stock options	3	312	'	'	315
Exercise of stock options, shares	3,500	'	'	'	'
Private equity placement, net	1,717	9,823,630	'	'	9,825,347
Private equity placement, net, shares	1,717,067	'	'	'	'
Option issued in conjunction with debt	'	32,611	'	'	32,611
Stock based compensation	'	866,106	'	'	866,106
Foreign currency cumulative translation adjustment	'	'	-25,749	'	-25,749
Net loss	'	'	'	-4,093,287	-4,093,287
Balance at Sep. 30, 2014	$5,705	$20,730,149	'	($10,091,496)	$10,644,358
Balance, shares at Sep. 30, 2014	5,705,773	'	'	'	'

Condensed_Consolidated_Stateme3

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Operating Activities	'	'
Net loss	($4,093,287)	($2,527,910)
Depreciation and amortization	175,778	4,358
Amortization of debt discount	85,236	'
Amortization of loan origination costs	61,787	'
Stock based compensation	866,106	102,858
Foreign currency gain	-181,757	'
Gain on the sale of trading securities	-2,926,073	'
Changes in operating assets and liabilities:	'	'
Accounts receivable	-81,961	-55,299
Inventory	-241,770	'
Prepaids	66,340	-274,902
Other current assets	-943,692	'
Accounts payable	-291,344	206,649
Accrued expenses	1,778,877	205,178
Net cash used in operating activities	-5,725,760	-2,339,069
Investing Activities	'	'
Purchase of equipment	-11,771,206	-5,209
Deposits paid for fixed asset purchases	-2,688,416	'
Proceeds from sale of trading securities	7,925,655	'
Purchase of trading	-4,999,582	'
Net cash used in investing activities	-11,533,549	-5,209
Financing Activities	'	'
Proceeds from private placement	10,302,400	'
Private placement cost	-471,531	'
Proceeds from convertible debt	11,863,885	1,000,000
Convertible debt cost	-732,476	'
Proceeds from notes payable	15,015	'
Payments on notes payable	-168,354	'
Payments on capital lease	-132,126	'
Proceeds from exercise of stock options	315	1,654
Net cash provided financing activities	20,677,128	1,001,654
Net increase (decrease) in cash and cash equivalents	3,417,819	-1,342,624
Cash and cash equivalents, beginning of period	4,292,122	1,492,871
Cash and cash equivalents, end of period	7,709,941	150,247
Supplemental Disclosure of Cash Flow Information	'	'
Cash paid during the year for interest	649,748	'
Cash paid during the year for income taxes	'	'
Non-cash transactions	'	'
Private placement issuance cost	5,522	'
Debt issuance cost	8,973	'
Prepaids amortized to settle capital lease obligations	$250,850	'

Organization

Organization	9 Months Ended
	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Organization	'
	Note 1 – Organization
	Nature of Business
	Eco-Stim Energy Solutions, Inc. (the “Company,” “EcoStim,” “we” or “us”) is an early stage technology-driven independent oilfield services company providing well stimulation, coiled tubing and field management services to the upstream oil and gas industry. We are focused on reducing the ecological impact and improving the economic performance of the well stimulation process. We have assembled technologies and processes that have the ability to (1) reduce the surface footprint, (2) reduce emissions, and (3) conserve fuel and water during the stimulation process. The Company will focus on the most active shale resource basins outside of the U.S., using our technology to differentiate our service offerings. Our management team has extensive international industry experience. Our first operation is in Argentina, home to the Vaca Muerta, the world’s third-largest shale resource basin as measured by technically recoverable reserves. We will also pursue other markets including Mexico, Colombia and the U.S. or any other location where we believe we can offer clear advantages and achieve strong returns. The Company may also explore opportunistic acquisitions and/or joint ventures with established companies in target markets.

Basis_of_Presentation_and_Sign

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Basis of Presentation and Significant Accounting Policies	'
	Note 2 – Basis of Presentation and Significant Accounting Policies
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The December 31, 2013 consolidated balance sheet was derived from audited financial statements, but does not include all the disclosures required by U.S. GAAP. However, the Company believes that the disclosures are adequate to make the information presented not misleading. In the Company’s opinion, all the adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation have been included. The results of operations for the three and nine month periods ended September 30, 2014 are not necessarily indicative of the results that may be achieved for the full fiscal year or for any future period. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2013, a copy of which was filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.
	Use of Estimates
	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are used in, but are not limited to, determining the following: allowance for doubtful accounts, recoverability of long-lived assets and intangibles, useful lives used in depreciation and amortization, income taxes and stock-based compensation. The accounting estimates used in the preparation of the condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes.
	Cash and Cash Equivalents
	The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company maintains deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses related to amounts in excess of FDIC limits.
	Deferred Debt Costs
	The Company capitalizes certain costs in connection with obtaining its financings, such as lender’s fees and related attorney fees. These costs are amortized to interest expense using the straight-line method.
	Deferred debt costs were approximately $679,662 net of accumulated amortization of $61,787 for the nine months ended September 30, 2014.
	Revenue Recognition
	Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue producing transactions are presented on a net basis and excluded from sales in the condensed consolidated statement of operations. The Company records a liability until remitted to the respective taxing authority. All revenue is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable, and collection is reasonably assured as follows:
	Well Stimulation Revenue
	The Company expects to provide well stimulation services based on contractual arrangements, such as term contracts and pricing agreements, or on a spot market basis. Revenue will be recognized and customers will be invoiced upon the completion of each job, which can consist of one or more stimulation stages.
	Under anticipated term pricing agreement arrangements, customers typically commit to targeted utilization levels at agreed-upon pricing, but without termination penalties or obligations to pay for services not used by the customer. In addition, the agreed-upon pricing is typically subject to periodic review.
	Spot market basis arrangements will be based on an agreed-upon hourly spot market rate. The Company may also charge fees for setup and mobilization of equipment depending on the job, additional equipment used on the job, if any, and materials that are consumed during the well stimulation process. Generally, these fees and other charges vary depending on the equipment and personnel required for the job and market conditions in the region in which the services are performed.
	The Company also plans to generate revenues from chemicals and proppants that are consumed while performing well stimulation services.
	Coiled Tubing Revenue
	The Company expects to provide coiled tubing and other well stimulation services. Jobs for these services are typically short term in nature, lasting anywhere from a few hours to multiple days. Revenue will be recognized upon completion of each day’s work based upon a completed field ticket. The Company anticipates charging the customer for mobilization, services performed, and personnel on the job, equipment used on the job, and miscellaneous consumables based on an hourly basis at agreed-upon spot market rates.
	Field Management Revenue
	The Company enters into arrangements to provide field management services. Field management revenue relates primarily to geophysical predictions and production monitoring, utilizing down-hole diagnostics tools. Revenue is recognized and customers are invoiced upon the completion of each job. The service invoices are for a set amount, which includes charges for the mobilization of the equipment to the location, the service performed, the personnel on the job, additional equipment used on the job, consumables used throughout the course of the service, and processing and interpretation of data acquired via down-hole diagnostic tools.
	Fair Value of Financial Instruments
	The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, capital lease obligations and notes payable. The recorded values of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their fair values based on their short-term nature. The carrying value of capital lease obligations and notes payable approximate their fair value, and the interest rates approximate market rates.
	Functional and Presentation Currency
	Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “Functional Currency”). The Company has reviewed its policies related to Functional Currency and has concluded that the Functional Currency for the Norwegian and Argentine subsidiaries is the US Dollar. The condensed consolidated financial statements are presented in US Dollars, which is the Company’s presentation currency.
	Marketable Securities
	Investments in marketable securities are classified as trading, available-for-sale or held-to-maturity. Our marketable equity investments are classified as trading with their cost basis determined by the specific identification method. Realized and unrealized gains and losses on trading securities are included in net income.
	During the third quarter, the Company purchased and sold Argentine bonds to capitalize its subsidiary in Argentina. This resulted in a gain on the sale of trading securities of $2,926,073 for the three months ended September 30, 2014. This increase was primarily due to the Company taking advantage of the favorable spread in exchange rates between the US Dollar and Argentine Peso. There were no securities held at September 30, 2014 and all trades had been settled.
	Net Loss per Common Share
	For the periods ended September 30, 2014 and 2013, the weighted average shares outstanding excluded certain stock options and potential shares from convertible debt of 2,193,611 and 371,174, respectively, from the calculation of diluted earnings per share because these shares would be anti-dilutive. Anti-dilutive warrants of 100,000 and 0 for the periods ended September 30, 2014 and 2013, respectively, were also excluded from the calculation.
	Reclassifications
	Certain prior period amounts have been reclassified in the current period in order to be consistent with the current period presentation.
	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2017.

Other_Assets

Other Assets	9 Months Ended
	Sep. 30, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]	'
Other Assets	'
	Note 3 – Other Assets
	As of September 30, 2014, total other assets of the Company are approximately $1,529,158, of which $543,295 and $985,863 are current and long-term assets, respectively. The Company has (1) incurred debt and equity issuance costs of approximately $679,662, (2) unamortized exclusivity costs for the license of technology, as further discussed in “Note 5 - Commitments and Contingencies” below, of approximately $333,333, (3) prepaid deposits on a capital lease, as described in “Note 5 - Commitments and Contingencies” below, of approximately $488,633, and (4) other assets of approximately $27,530.

StockBased_Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Stock-Based Compensation	'
	Note 4 – Stock-Based Compensation
	As of September 30, 2014, the Company has two stock incentive plans approved by its stockholders, the 2013 Stock Incentive Plan (the “2013 Plan”) and the 2014 Stock Incentive Plan (the “2014 Plan”), for the granting of stock-based incentive awards, including incentive stock options, non-qualified stock options, and restricted stock to employees, consultants, and members of the Company’s board of directors (the “Board”). The 2013 Plan was originally adopted in 2012, and a maximum of 2,164,500 shares were reserved for issuance under the 2013 Plan. In connection with the merger in December, 2013, the Company modified the maximum number of shares authorized to be issued under the Plan to 1,000,000 shares. As of September 30, 2014, 281,828 shares were available for grant under the 2013 Plan. The 2014 Plan was adopted in July 2014, with a maximum of 500,000 shares authorized to be issued under the 2014 Plan. As of September 30, 2014, 300,000 shares were available for grant under the 2014 Plan.
	The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options and restricted stock. The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company determined the initial expected life based on a simplified method in accordance with the FASB Accounting Standards Codification Topic 718, giving consideration to the contractual terms, vesting schedules, and pre-vesting and post-vesting forfeitures.
	During the nine months ended September 30, 2014 and 2013, the Company recorded $866,106 and $102,858, respectively, of stock-based compensation, which is included in general and administrative expense in the accompanying condensed consolidated statement of operations. Total unamortized stock-based compensation expense at September 30, 2014 was $2,494,401 and will be fully expensed through 2018.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	Note 5 – Commitments and Contingencies
	Capital Lease Obligations
	In the fourth quarter of 2013, the Company purchased and upgraded equipment from non-related third parties, investing approximately $3.5 million. In December 2013, the Company sold the equipment to a related party leasing company, Impact Engineering, AS. Simultaneously, the equipment package was leased back to Eco-Stim Energy Solutions Argentina SA (“EcoStim Argentina”), a subsidiary of the Company, as a capital lease for a 60-month period with payments beginning in February of 2014. The Company agreed to prepay one year of payments in the amount of approximately $1.0 million and maintain a balance of no less than six months of prepayments until the final six months of the lease. These prepayments were made prior to December 31, 2013. Further rent payments are $81,439 per month and commenced on February 1, 2014. The final six months prepaid is shown as other non-current assets in the condensed consolidated balance sheets with a balance of $488,633.
	The minimum present value of the lease payments is $3.1 million with a sixty-month term and implied interest of 14%. The next five years of lease payments are:
		Capital Lease
		Payments
	2014	$	244,317
	2015		977,267
	2016		977,267
	2017		977,267
	2018		977,267
	Total Future Payments		4,153,385
	Less debt discount due to warrants		(298,211	)
	Less amount representing interest		(1,036,361	)
			2,818,813
	Less current portion of capital lease obligations		(576,976	)
	Capital lease obligations, excluding current installments	$	2,241,837
	Operating Leases
	During the third quarter of 2014, the Company and EcoStim Argentina each entered into separate three-year office space leases. The leases each have a term of three years. The combined future minimum lease payments as of September 30, 2014 are as follows:
		Operating
		Leases
	2014	$	76,328
	2015		307,502
	2016		314,079
	2017		225,348
	Thereafter		—
	Total	$	923,257
	Contracts
	On May 1, 2014, the Company entered into an agreement with a fiber optic technology provider to purchase equipment and secure exclusive rights to market, sell, utilize and distribute such equipment in Argentina and Mexico (the “Exclusive Purchase Agreement”). Under the Exclusive Purchase Agreement, the Company agreed to purchase proprietary distributed acoustic recording systems, which record and process acoustic and temperature signals from oil and gas wells using fiber optic technology. The agreement called for the purchase of approximately $500,000 in equipment and provided an additional $500,000 payment for the exclusivity previously described. The equipment was delivered in the second quarter of 2014 and will be used for customers requesting field management services based on down-hole well diagnostics.
	On May 22, 2014, the Company signed a contract to provide its technology focused well stimulation and completion services to an exploration and production company in the Neuquén province of Argentina. Under the terms of the agreement, this customer will exclusively utilize EcoStim’s well stimulation services. The exclusive agreement extends into 2015 and 2016 for the customer’s full work program. The work is scheduled to begin in the fourth quarter of 2014, subject to certain conditions. On October 20, 2014, the majority of the equipment the Company will use to perform this contract arrived into the Neuquén province of Argentina.
	On July 31, 2014, a subsidiary of the Company entered into an equipment purchase order with Feadar S.A., a local Argentine manufacturer of trucks and heavy equipment, to acquire trucks and related equipment to transport well stimulation equipment for a purchase price of approximately $2,723,000.

Convertible_Debt

Convertible Debt	9 Months Ended
	Sep. 30, 2014
Debt Disclosure [Abstract]	'
Convertible Debt	'
	Note 6 – Convertible Debt
	On May 28, 2014 (the “Closing Date”), the Company entered into a Convertible Note Facility Agreement (the “Note Agreement”) with ACM. The proceeds from the Note Agreement will be used primarily for capital expenditures incurred in accordance with an approved operating budget.
	The Note Agreement allows the Company to issue ACM a multiple draw secured promissory note (the “Convertible Note”) with a maximum aggregate principal amount of $22 million, convertible into the common stock of the Company (the “Common Stock”) at a price of $6.00 per share at the option of ACM. The outstanding debt under the facility is convertible immediately and accrues interest at 14% per annum with interest payments due annually in arrears. The debt can be prepaid in full under certain conditions after the first anniversary of the Closing Date and matures on the date that is four years following the Closing Date.
	The initial advance of $11,863,885 under the Note Agreement was primarily used for equipment purchases and other approved capital expenditures. Until the earlier of (i) May 28, 2016 or (ii) the date on which the Company makes any prepayment in respect of the Convertible Notes, the Company may request further advances from the purchaser of the Note so long as the total principal amount does not exceed $22,000,000.
	All obligations under the Note Agreement will be secured by liens on substantially all of the assets of the Company and will have subsidiary guarantees and pledges of the capital stock of the subsidiary guarantors subject to certain terms and exceptions.
	In addition, on the Closing Date and as a condition precedent for the closing of the Note Agreement, the Company entered into a Securities Purchase Option Agreement (the “Option Agreement”) with ACM. Pursuant to the Option Agreement, ACM had the option, in ACM’s sole discretion, to purchase an aggregate of 1,333,333 shares of Common Stock, at a price of $6.00 per share (such right, the “Option”). The Option was exercised on July 14, 2014, see “Note 7 – Private Equity Placement.”

Private_Equity_Placement

Private Equity Placement	9 Months Ended
	Sep. 30, 2014
Private Equity Placement	'
Private Equity Placement	'
	Note 7 – Private Equity Placement
	On July 14, 2014 ACM exercised the Option (as referenced in “Note 6 – Convertible Debt”), resulting in net proceeds of $7,708,874 after deducting $291,126 in transaction related expenses.
	On July 24, 2014, the Company sold 383,733 shares of its Common Stock in a private placement to 17 accredited investors resulting in net proceeds of $2,116,473 after deducting $185,927 in transaction related expenses. The offering was exempt from registration under the Securities Act in reliance on exemptions provided by Section 4(2) and Regulations D and S of that act.

Subsequent_Events

Subsequent Events	9 Months Ended
	Sep. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	Note 8 – Subsequent Events
	On October 10, 2014, a subsidiary of the Company entered into a purchase agreement with QM Equipment SA for the purchase of well stimulation equipment for a total purchase price of approximately $8,793,245, of which $6,028,075 is due upon delivery of the equipment anticipated to be completed in June 2015.
	On October 10, 2014, the Company entered into an equipment purchase agreement for the purchase of certain turbine powered pressure pumping equipment for a total purchase price of approximately $6,500,000, of which $4,100,000 has been financed. The total amount financed, including any accrued interest, will become due and payable in full on April 1, 2015.
	On October 29, 2014, the Company elected to draw the remaining $10,136,115 under the Note Agreement as referred to in “Note 6 – Convertible Debt.” These funds will be used to supplement cash flow from operations and to finance various capital expenditures to be incurred over the next three quarters.
	On November 10, 2014, the Company granted 110,000 and 28,500 stock-based incentive awards under the 2014 Plan and 2013 Plan respectively to employees and consultants of the Company.

Basis_of_Presentation_and_Sign1

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are used in, but are not limited to, determining the following: allowance for doubtful accounts, recoverability of long-lived assets and intangibles, useful lives used in depreciation and amortization, income taxes and stock-based compensation. The accounting estimates used in the preparation of the condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company maintains deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses related to amounts in excess of FDIC limits.
Deferred Debt Costs	'
	Deferred Debt Costs
	The Company capitalizes certain costs in connection with obtaining its financings, such as lender’s fees and related attorney fees. These costs are amortized to interest expense using the straight-line method.
	Deferred debt costs were approximately $679,662 net of accumulated amortization of $61,787 for the nine months ended September 30, 2014.
Revenue Recognition	'
	Revenue Recognition
	Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue producing transactions are presented on a net basis and excluded from sales in the condensed consolidated statement of operations. The Company records a liability until remitted to the respective taxing authority. All revenue is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable, and collection is reasonably assured as follows:
	Well Stimulation Revenue
	The Company expects to provide well stimulation services based on contractual arrangements, such as term contracts and pricing agreements, or on a spot market basis. Revenue will be recognized and customers will be invoiced upon the completion of each job, which can consist of one or more stimulation stages.
	Under anticipated term pricing agreement arrangements, customers typically commit to targeted utilization levels at agreed-upon pricing, but without termination penalties or obligations to pay for services not used by the customer. In addition, the agreed-upon pricing is typically subject to periodic review.
	Spot market basis arrangements will be based on an agreed-upon hourly spot market rate. The Company may also charge fees for setup and mobilization of equipment depending on the job, additional equipment used on the job, if any, and materials that are consumed during the well stimulation process. Generally, these fees and other charges vary depending on the equipment and personnel required for the job and market conditions in the region in which the services are performed.
	The Company also plans to generate revenues from chemicals and proppants that are consumed while performing well stimulation services.
	Coiled Tubing Revenue
	The Company expects to provide coiled tubing and other well stimulation services. Jobs for these services are typically short term in nature, lasting anywhere from a few hours to multiple days. Revenue will be recognized upon completion of each day’s work based upon a completed field ticket. The Company anticipates charging the customer for mobilization, services performed, and personnel on the job, equipment used on the job, and miscellaneous consumables based on an hourly basis at agreed-upon spot market rates.
	Field Management Revenue
	The Company enters into arrangements to provide field management services. Field management revenue relates primarily to geophysical predictions and production monitoring, utilizing down-hole diagnostics tools. Revenue is recognized and customers are invoiced upon the completion of each job. The service invoices are for a set amount, which includes charges for the mobilization of the equipment to the location, the service performed, the personnel on the job, additional equipment used on the job, consumables used throughout the course of the service, and processing and interpretation of data acquired via down-hole diagnostic tools.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, capital lease obligations and notes payable. The recorded values of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their fair values based on their short-term nature. The carrying value of capital lease obligations and notes payable approximate their fair value, and the interest rates approximate market rates.
Functional and Presentation Currency	'
	Functional and Presentation Currency
	Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “Functional Currency”). The Company has reviewed its policies related to Functional Currency and has concluded that the Functional Currency for the Norwegian and Argentine subsidiaries is the US Dollar. The condensed consolidated financial statements are presented in US Dollars, which is the Company’s presentation currency.
Marketable Securities	'
	Marketable Securities
	Investments in marketable securities are classified as trading, available-for-sale or held-to-maturity. Our marketable equity investments are classified as trading with their cost basis determined by the specific identification method. Realized and unrealized gains and losses on trading securities are included in net income.
	During the third quarter, the Company purchased and sold Argentine bonds to capitalize its subsidiary in Argentina. This resulted in a gain on the sale of trading securities of $2,926,073 for the three months ended September 30, 2014. This increase was primarily due to the Company taking advantage of the favorable spread in exchange rates between the US Dollar and Argentine Peso. There were no securities held at September 30, 2014 and all trades had been settled.
Net Loss per Common Share	'
	Net Loss per Common Share
	For the periods ended September 30, 2014 and 2013, the weighted average shares outstanding excluded certain stock options and potential shares from convertible debt of 2,193,611 and 371,174, respectively, from the calculation of diluted earnings per share because these shares would be anti-dilutive. Anti-dilutive warrants of 100,000 and 0 for the periods ended September 30, 2014 and 2013, respectively, were also excluded from the calculation.
Reclassifications	'
	Reclassifications
	Certain prior period amounts have been reclassified in the current period in order to be consistent with the current period presentation.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2017.

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Schedule of Future Minimum Lease Payments Under Capital Leases	'
	The minimum present value of the lease payments is $3.1 million with a sixty-month term and implied interest of 14%. The next five years of lease payments are:
		Capital Lease
		Payments
	2014	$	244,317
	2015		977,267
	2016		977,267
	2017		977,267
	2018		977,267
	Total Future Payments		4,153,385
	Less debt discount due to warrants		(298,211	)
	Less amount representing interest		(1,036,361	)
			2,818,813
	Less current portion of capital lease obligations		(576,976	)
	Capital lease obligations, excluding current installments	$	2,241,837
Schedule of Future Minimum Lease Payments for Operating Leases	'
	The combined future minimum lease payments as of September 30, 2014 are as follows:
		Operating
		Leases
	2014	$	76,328
	2015		307,502
	2016		314,079
	2017		225,348
	Thereafter		—
	Total	$	923,257

Basis_of_Presentation_and_Sign2

Basis of Presentation and Significant Accounting Policies (Details Narrative) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013
Deferred debt costs	'	$679,662	'
Accumulated amortization	61,787	61,787	'
Gain on the sale of trading securities	2,926,073	'	'
Held securities	$0	$0	'
Weighted average shares outstanding excluded certain stock options and potential shares from convertible debt	'	2,193,611	371,174
Warrant [Member]	'	'	'
Weighted average share anti-diluted	'	100,000	0

Other_Assets_Details_Narrative

Other Assets (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]	'	'
Other assets	$1,529,158	'
Other assets, current	543,295	3,100
Other assets, long term	985,863	488,633
Payment of debt and equity issuance costs	679,662	'
Secured for use of technology with Fotech	333,333	'
prepaid deposits on capital lease	488,633	'
Other assets amount	$27,530	'

StockBased_Compensation_Detail

Stock-Based Compensation (Details Narrative) (USD $)	9 Months Ended		12 Months Ended			1 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Sep. 30, 2014	Dec. 31, 2012	Jul. 31, 2014	Sep. 30, 2014
			2013 Stock Incentive Plan [Member]	2013 Stock Incentive Plan [Member]	2013 Stock Incentive Plan [Member]	2014 Stock Incentive Plan [Member]	2014 Stock Incentive Plan [Member]
Common stock reserve for future issuance under Stock Incentive Plan	'	'	'	'	2,164,500	'	'
Maximum number of shares authorized to be issued	'	'	1,000,000	'	'	500,000	'
Number of shares available for grant under the Plan	'	'	'	281,828	'	'	300,000
Stock-based compensation	$866,106	$102,858	'	'	'	'	'
Unamortized stock based compensation expense	$2,494,401	'	'	'	'	'	'
Future expensing period description for unamortized stock based compensation	'	'	'	'	'	'	'
	through 2018.

Commitments_and_Contingencies_1

Commitments and Contingencies (Details Narrative) (USD $)	0 Months Ended	3 Months Ended	9 Months Ended	0 Months Ended		9 Months Ended
	Feb. 01, 2014	Dec. 31, 2013	Sep. 30, 2014	1-May-14	Jul. 31, 2014	Sep. 30, 2014	Sep. 30, 2014
				Fiber Optic Technology Provider [Member]	Feadar S.A [Member]	Capital Lease Obligations [Member]	Operating Leases [Member]
Purchase of upgraded equipment from non related parties	'	$3,500,000	'	$500,000	$2,723,000	'	'
Prepayment for equipment from non related parties	'	1,000,000	'	'	'	'	'
Lease term	'	'	'	'	'	'60 months	'3 years
Payment for rent	81,439	'	'	'	'	'	'
Other non-current assets	'	488,633	985,863	'	'	'	'
Minimum present value of the lease payments	'	'	3,100,000	'	'	'	'
Percentage of lease payment Interest	'	'	14.00%	'	'	'	'
Additional payment for equipment	'	'	'	$500,000	'	'	'
Equipment expected to be delivered date	'	'	'	30-Jun-14	'	'	'

Commitments_and_Contingencies_2

Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Capital Leases (Details) (Capital Lease Obligations [Member], USD $)	Sep. 30, 2014
Capital Lease Obligations [Member]	'
2014	$244,317
2015	977,267
2016	977,267
2017	977,267
2018	977,267
Total future payments	4,153,385
Less debt discount due to warrants	-298,211
Less amount representing interest	-1,036,361
Present value of net minimum lease payments	2,818,813
Less current portion of capital lease obligations	-576,976
Capital lease obligations, excluding current installments	$2,241,837

Commitments_and_Contingencies_3

Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Details) (Operating Leases [Member], USD $)	Sep. 30, 2014
Operating Leases [Member]	'
2014	$76,328
2015	307,502
2016	314,079
2017	225,348
Thereafter	'
Total	$923,257

Convertible_Debt_Details_Narra

Convertible Debt (Details Narrative) (USD $)	0 Months Ended	9 Months Ended	0 Months Ended
	28-May-14	Sep. 30, 2014	28-May-14	28-May-14
	Note Agreement [Member]	ACM Emerging Markets Master Fund I, L.P [Member]	Convertible Debt [Member]	Convertible Debt [Member]
				ACM Emerging Markets Master Fund I, L.P [Member]
Debt instrument principal outstanding	'	'	'	$22,000,000
Debt instruments conversion price per share	'	'	'	$6
Debt instruments accrued interest rate	'	'	14.00%	'
Payments for equipment purchase and other capital expenditures	11,863,885	'	'	'
Debt instruments maturity date	28-May-16	'	'	'
Maximum proceeds from purchaser	$22,000,000	'	'	'
Number of stock shares issued	'	1,333,333	'	'
Equity issuance price per share	'	$6	'	'
Option exercised date	'	14-Jul-14	'	'

Private_Equity_Placement_Detai

Private Equity Placement (Details Narrative) (USD $)	0 Months Ended	9 Months Ended		0 Months Ended
	Jul. 14, 2014	Sep. 30, 2014	Sep. 30, 2013	Jul. 24, 2014
				Private Placement [Member]
				Integer
Proceeds from exercised option	$7,708,874	$315	$1,654	'
Private placement transaction related expenses	291,126	'	'	'
Number of stock shares issued for private placement	'	'	'	383,733
Number of accredited investors	'	'	'	17
Proceeds from issuance of common stock to private placements	'	10,302,400	'	2,116,473
Cash commission and expense allowance to relatedparty	'	'	'	$185,927

Subsequent_Events_Details_Narr

Subsequent Events (Details Narrative) (USD $)	3 Months Ended	9 Months Ended		0 Months Ended			0 Months Ended
	Dec. 31, 2013	Sep. 30, 2014	Sep. 30, 2013	Nov. 10, 2014	Nov. 10, 2014	Oct. 10, 2014	Oct. 29, 2014	Oct. 10, 2014	Oct. 10, 2014
				Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]
				2014 Stock Incentive Plan [Member]	2013 Stock Incentive Plan [Member]	Pumping Equipment [Member]	Convertible Debt [Member]	Well Stimulation Equipment [Member]	Pumping Equipment [Member]
Payment for purchase of equipment	$3,500,000	'	'	'	'	'	'	$8,793,245	$6,500,000
Purchase price of equpiument due	'	'	'	'	'	4,100,000	'	6,028,075	'
Proceeds from notes payable	'	$11,863,885	$1,000,000	'	'	'	$10,136,115	'	'
Stock-based incentive awards granted to employees and consultants	'	'	'	110,000	28,500	'	'	'	'