PEDEVCO (PED) 10-Q 15 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 12, 2020
Income Taxes All Open Details
Entity Registrant Name	PEDEVCO CORP
Entity Central Index Key	0001141197
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		71,125,328
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	TX
Entity File Number	001-35922

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash	$ 12,401	$ 22,415
Accounts receivable - oil and gas	2,824	4,602
Prepaid expenses and other current assets	77	73
Total current assets	15,302	27,090
Oil and gas properties:
Oil and gas properties, subject to amortization, net	85,122	76,952
Oil and gas properties, not subject to amortization, net	7,730	14,896
Total oil and gas properties, net	92,852	91,848
Operating lease - right-of-use asset	338	360
Other assets	3,588	3,598
Total assets	112,080	122,896
Current liabilities:
Accounts payable	4,622	12,099
Accrued expenses	2,226	1,972
Revenue payable	823	827
Operating lease liabilities - current	99	97
Asset retirement obligations - current	43	225
Total current liabilities	7,813	15,220
Long-term liabilities:
Operating lease liabilities	274	300
Asset retirement obligations	1,895	1,874
Total liabilities	9,982	17,394
Commitments and contingencies
Shareholders' equity:
Common stock, $0.001 par value, 200,000,000 shares authorized; 72,125,328 and 71,061,328 shares issued and outstanding, respectively	72	71
Additional paid-in-capital	201,879	201,027
Accumulated deficit	(99,853)	(95,596)
Total shareholders' equity	102,098	105,502
Total liabilities and shareholders' equity	$ 112,080	$ 122,896

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Stockholders' equity:
Common stock, par value	$ .001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	72,125,328	72,125,328
Common stock, shares outstanding	71,061,328	71,061,328

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue:
Oil and gas sales	$ 2,832	$ 1,568
Operating expenses:
Lease operating costs	1,522	970
Exploration expense	30	10
Selling, general and administrative expense	2,123	1,328
Depreciation, depletion, amortization and accretion	3,437	2,249
Total operating expenses	7,112	4,557
Gain on sale of oil and gas properties	0	920
Operating loss	(4,280)	(2,069)
Other income (expense):
Interest expense	0	(826)
Interest income	24	0
Other expense	(1)	(100)
Total other income (expense)	23	(926)
Net income (loss)	$ (4,257)	$ (2,995)
Earnings (loss) per common share: Basic and diluted	$ (0.06)	$ (0.11)
Weighted average number of common shares outstanding: Basic and diluted	71,996,295	27,828,383

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash Flows From Operating Activities:
Net loss	$ (4,257)	$ (2,995)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, depletion, amortization and accretion	3,437	2,249
Amortization of debt discount	0	161
Amortization of right-of-use asset	22	0
Share-based compensation expense	853	299
Gain on sale of oil and gas properties	0	(920)
Changes in operating assets and liabilities:
Accounts receivable - oil and gas	1,778	(53)
Prepaid expenses and other current assets	(4)	49
Accounts payable	(3,373)	1,847
Accrued expenses	254	(1,954)
Accrued expenses - related parties	0	657
Revenue payable	(4)	30
Net cash used in operating activities	(1,294)	(630)
Cash Flows From Investing Activities:
Cash paid for the acquisition of oil and gas properties	0	(700)
Cash paid for drilling and completion costs	(8,720)	(9,279)
Proceeds from the sale of oil and gas property	0	1,175
Net cash used in investing activities	(8,720)	(8,804)
Cash Flows From Financing Activities:
Proceeds from notes payable - related parties	0	15,000
Net cash provided by financing activities	0	15,000
Net (decrease) increase in cash and restricted cash	(10,014)	5,566
Cash and restricted cash at beginning of period	25,712	5,779
Cash and restricted cash at end of period	15,698	11,345
Supplemental Disclosure of Cash Flow Information
Cash paid for: Interest	0	0
Cash paid for: Income Taxes	0	0
Noncash Investing and Financing Activities:
Change in accrued oil and gas development costs	4,128	3,656
Changes in estimates of asset retirement obligations	210	11
Acquisition of asset retirement costs	0	33
Issuance of restricted common stock	1	0
Common stock issued for debt conversion	$ 0	$ 55,075

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Common Stock	Additional Paid in Capital	Accumulated Deficit	Total
Beginning Balance, Amount at Dec. 31, 2018	$ 16	$ 101,450	$ (84,494)	$ 16,972
Beginning Balance, Shares at Dec. 31, 2018	15,808,445
Issuance of restricted common stock, Amount	$ 29	55,046		55,075
Issuance of restricted common stock, Shares	29,480,383
Shared-based compensation		299		299
Net loss			(2,995)	(2,995)
Ending Balance, Amount at Mar. 31, 2019	$ 45	156,795	(87,489)	69,351
Ending Balance, Shares at Mar. 31, 2019	45,288,828
Beginning Balance, Amount at Dec. 31, 2019	$ 71	201,027	(95,596)	105,502
Beginning Balance, Shares at Dec. 31, 2019	71,061,328
Issuance of restricted common stock, Amount	$ 1	(1)		0
Issuance of restricted common stock, Shares	1,119,000
Rescinded restricted common stock, Amount				0
Rescinded restricted common stock, Shares	(55,000)
Shared-based compensation		853		853
Net loss			(4,257)	(4,257)
Ending Balance, Amount at Mar. 31, 2020	$ 72	$ 201,879	$ (99,853)	$ 102,098
Ending Balance, Shares at Mar. 31, 2020	72,125,328

1. BASIS OF PRESENTATION

1. BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	The accompanying interim unaudited consolidated financial statements of PEDEVCO Corp. (“PEDEVCO” or the “Company”), have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes thereto contained in PEDEVCO’s latest Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate disclosures contained in the audited financial statements for the most recent fiscal year, as reported in the Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 30, 2020, have been omitted. The Company’s consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and subsidiaries in which the Company has a controlling financial interest. All significant inter-company accounts and transactions have been eliminated in consolidation. The Company's future financial condition and liquidity will be impacted by, among other factors, the success of our drilling program, the number of commercially viable oil and natural gas discoveries made and the quantities of oil and natural gas discovered, the speed with which we can bring such discoveries to production, the actual cost of exploration, appraisal and development of our prospects, the prevailing prices for, and demand for, oil and natural gas.

2. DESCRIPTION OF BUSINESS

2. DESCRIPTION OF BUSINESS	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	PEDEVCO is an oil and gas company focused on the development, acquisition and production of oil and natural gas assets where the latest in modern drilling and completion techniques and technologies have yet to be applied. In particular, the Company focuses on legacy proven properties where there is a long production history, well defined geology and existing infrastructure that can be leveraged when applying modern field management technologies. The Company’s current properties are located in the San Andres formation of the Permian Basin situated in West Texas and eastern New Mexico (the “Permian Basin”) and in the Denver-Julesberg Basin (“D-J Basin”) in Colorado. The Company holds its Permian Basin acres located in Chaves and Roosevelt Counties, New Mexico, through its wholly-owned operating subsidiary, Pacific Energy Development Corp. (“PEDCO”), which asset the Company refers to as its “Permian Basin Asset,” and it holds its D-J Basin acres located in Weld and Morgan Counties, Colorado, through its wholly-owned operating subsidiary, Red Hawk Petroleum, LLC (“Red Hawk”), which asset the Company refers to as its “D-J Basin Asset.” The Company believes that horizontal development and exploitation of conventional assets in the Permian Basin and development of the Wattenberg and Wattenberg Extension in the D-J Basin represent among the most economic oil and natural gas plays in the United States (“U.S.”). Moving forward, the Company plans to optimize its existing assets and opportunistically seek additional acreage proximate to its currently held core acreage, as well as other attractive onshore U.S. oil and gas assets that fit the Company’s acquisition criteria, that Company management believes can be developed using its technical and operating expertise and be accretive to shareholder value. As a result of the recent COVID-19 outbreak, and the recent sharp decline in oil prices which occurred partially as a result of the decreased demand for oil caused by such outbreak and the actions taken globally to stop the spread of such virus, as of April 24, 2020, the Company has shut-in all of its operated producing wells in its Permian Basin Asset and D-J Basin Asset to preserve the Company’s oil and gas reserves for production during a more favorable oil price environment. The Company anticipates resuming production once the realized wellhead price recovers to the mid-$20’s/Bbl for a reasonable period of time. Wellhead prices as of the filing of this report were approximately $13.00/Bbl for our Permian Basin Asset properties and $17.00/Bbl for our D-J Basin Asset properties.

3. SUMMARY OF SIGNIFICANT ACCOU

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	The Company has provided a discussion of significant accounting policies, estimates and judgments in its 2019 Annual Report. There have been no changes to the Company’s significant accounting policies since December 31, 2019. Recently Issued Accounting Pronouncements The Company does not expect the adoption of any other recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows. Subsequent Events The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration.

4. REVENUE FROM CONTRACTS WITH

4. REVENUE FROM CONTRACTS WITH CUSTOMERS	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	Exploration and Production. Disaggregation of Revenue from Contracts with Customers. Three Months Ended March 31, 2020 2019 Oil sales $ 2,703 $ 1,453 Natural gas sales 89 109 Natural gas liquids sales 40 6 Total revenue from customers $ 2,832 $ 1,568 There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of March 31, 2020.

5. CASH

5. CASH	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
CASH	The following table provides a reconciliation of cash and restricted cash reported within the balance sheets, which sum to the total of such amounts as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Cash $ 12,401 $ 22,415 Restricted cash included in other assets 3,297 3,297 Total cash and restricted cash $ 15,698 $ 25,712

6. OIL AND GAS PROPERTIES

6. OIL AND GAS PROPERTIES	3 Months Ended
	Mar. 31, 2020
Oil and Gas Property [Abstract]
OIL AND GAS PROPERTIES	The following table summarizes the Company’s oil and gas activities by classification for the three months ended March 31, 2020 (in thousands): Balance at December 31, Balance at March 31, 2019 Additions Disposals Transfers 2020 Oil and gas properties, subject to amortization $ 107,164 $ 4,475 $ - $ 7,284 $ 118,923 Oil and gas properties, not subject to amortization 14,896 117 - (7,284 ) 7,729 Asset retirement costs 1,547 (210 ) - - 1,337 Accumulated depreciation and depletion (31,759 ) (3,378 ) - - (35,137 ) Total oil and gas assets $ 91,848 $ 1,004 $ - $ - $ 92,852 For the three-month period ended March 31, 2020, the Company incurred $4,592,000 in capital costs primarily related to the drilling of a salt water disposal well (“SWD”) in our Permian Basin Asset in order to increase the produced water injection capacity for the Company’s Chaveroo field and, in turn, increase production of the corresponding wells therein. The drilling and completion of the SWD has currently been postponed due to the recent downturn in the economic conditions in the oil and gas industry. The Company will continue to monitor the environment for future completion opportunities. Also, the Company transferred $7,284,000 in capital costs from three recently completed wells, for which production had not commenced, from unproved properties to proved properties, when production began during the early part of 2020. Additionally, drilling and completion costs of $7,729,000, the majority of which were incurred in the prior year and for the uncompleted SWD noted above, and one well in the Permian Asset, for which production had not yet commenced; therefore, these amounts were included in the amount not subject to amortization at March 31, 2020. The depletion recorded for production on proved properties for the three months ended March 31, 2020 and 2019, amounted to $3,378,000, compared to $2,140,000, respectively.

7. ASSET RETIREMENT OBLIGATIONS

7. ASSET RETIREMENT OBLIGATIONS	3 Months Ended
	Mar. 31, 2020
Asset Retirement Obligation [Abstract]
ASSET RETIREMENT OBLIGATIONS	Activity related to the Company’s asset retirement obligations is as follows (in thousands): Three Months Ended March 31, 2020 Balance at the beginning of the period (1) $ 2,099 Accretion expense 49 Changes in estimates (210 ) Balance at end of period (2) $ 1,938 (1) Includes $225,000 of current asset retirement obligations at December 31, 2019. (2) Includes $43,000 of current asset retirement obligations at March 31, 2020.

8. COMMITMENTS AND CONTINGENCIE

8. COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Lease Agreements Currently, the Company has one operating lease for office space that requires ASC Topic 842 treatment, discussed below. Discount Rate The Company’s leases typically do not provide an implicit rate. Accordingly, the Company is required to use its incremental borrowing rate in determining the present value of lease payments based on the information available at commencement date. The Company’s incremental borrowing rate would reflect the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. However, the Company currently maintains no debt, and in order to apply an appropriate discount rate, the Company used an average discount rate of eight publicly-traded peer group companies similar to it based on size, geographic location, asset types and/or operating characteristics. Office Lease The Company has a sublease for its corporate offices in Houston, Texas on approximately 5,200 square feet of office space that expires on August 31, 2023 and has a base monthly rent of approximately $10,000. The Company also has a lease for 187 square feet of office space located in Danville, California for the Company’s General Counsel. The monthly rent is $1,200, and the lease is renewable on a six-month basis and was extended for an additional six months in February 2020. The Company did not apply ASC Topic 842 to this lease, as the lease term and extension period are for 12-months or less, and we cannot currently conclude if the lease will be renewed or extended beyond a 12-month period. In April 2020, the Company was granted a 20% discount on the remaining lease term. Therefore, the total current obligation for the remainder of this lease through July 2020 is $3,800. For the three months ended March 31, 2020, the Company incurred lease expense of $32,500, for the combined leases. Supplemental cash flow information related to the Company’s operating lease is included in the table below (in thousands): Three Months Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities $ 29 Supplemental balance sheet information related to operating leases is included in the table below (in thousands): March 31, 2020 Operating lease – right-of-use asset $ 338 Operating lease liabilities - current $ 99 Operating lease liabilities - long-term 274 Total lease liability $ 373 The weighted-average remaining lease term for the Company’s operating lease is 3.4 years as of March 31, 2020, with a weighted-average discount rate of 5.35%. Lease liability with enforceable contract terms that have greater than one-year terms are as follows (in thousands): Remainder of 2020 $ 87 2021 118 2022 121 2023 82 Thereafter - Total lease payments 408 Less imputed interest (35 ) Total lease liability $ 373 Leasehold Drilling Commitments The Company’s oil and gas leasehold acreage is subject to expiration of leases if the Company does not drill and hold such acreage by production or otherwise exercises options to extend such leases, if available, in exchange for payment of additional cash consideration. In the D-J Basin Asset, 170 net acres expire during the remainder of 2020, and no significant net acres expire thereafter (net to our direct ownership interest only). In the Permian Basin Asset, 1,190 acres are due to expire in 2020 and 7,645 net acres expire thereafter (net to our direct ownership interest only). The Company plans to hold significantly all of this acreage through a program of drilling and completing producing wells. If the Company is not able to drill and complete a well before lease expiration, the Company may seek to extend leases where able. Other Commitments Although the Company may, from time to time, be involved in litigation and claims arising out of its operations in the normal course of business, the Company is not currently a party to any material legal proceeding. In addition, the Company is not aware of any material legal or governmental proceedings against it or contemplated to be brought against it. As part of its regular operations, the Company may become party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning its commercial operations, products, employees and other matters. Although the Company provides no assurance about the outcome of these or any other pending legal and administrative proceedings and the effect such outcomes may have on the Company, the Company believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by insurance, will not have a material adverse effect on the Company’s financial condition or results of operations.

9. SHAREHOLDERS' EQUITY

9. SHAREHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2020
Shareholders' equity:
SHAREHOLDERS' EQUITY	Common Stock During the three months ended March 31, 2020, the Company granted an aggregate of 1,119,000 restricted stock awards to various employees and a consultant of the Company. Additionally, 55,000 shares of restricted common stock were forfeited to the Company and cancelled due to an employee termination (see Note 10 below). Warrants During the three months ended March 31, 2020, no warrants were granted, exercised or cancelled, and as of March 31, 2020, the Company had warrants to purchase 150,329 shares of common stock outstanding, with an exercise price of $0.32 per share and a June 25, 2021 expiration date. The intrinsic value of these outstanding, as well as exercisable, warrants at March 31, 2020 was $83,000.

10. SHARE-BASED COMPENSATION

10. SHARE-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
SHARE-BASED COMPENSATION	The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award over the vesting period. Common Stock On January 13, 2020, restricted stock awards were granted to various employees and one consultant for an aggregate of 1,049,000 (including 924,000 restricted stock awards to officers of the Company) and 70,000 shares, respectively, of the Company’s common stock, under the Company’s Amended and Restated 2012 Equity Incentive Plan. The grant of the 1,049,000 shares of restricted stock vest as follows: 33.3% vest each subsequent year from the date of grant, contingent upon the recipient’s continued service with the Company. These shares have a total fair value of $1,172,000, based on the market price on the issuance date. The grant of the 70,000 shares of restricted stock vest as follows: 100% on the one-year anniversary of the grant date, subject to the recipient’s continued service with the Company. These shares have a total fair value of $118,000, based on the market price on the issuance date. In February 2020, 55,000 shares of restricted common stock were forfeited to the Company and cancelled due to an employee termination. As a result, these shares are once again eligible to be awarded under the Company’s Amended and Restated 2012 Equity Incentive Plan. Stock-based compensation expense recorded related to the vesting of restricted stock for the three months ended March 31, 2020 was $708,000. The remaining unamortized stock-based compensation expense at March 31, 2020 related to restricted stock was $2,066,000. Options During the three months ended March 31, 2020, no options were exercised, options to purchase 733,000 shares of common stock were granted (discussed below), options to purchase 34,000 shares of common stock expired, and options to purchase 90,000 shares of common stock were cancelled. On January 13, 2020, the Company granted options to purchase an aggregate of 733,000 shares of common stock to various Company employees at an exercise price of $1.68 per share. The options have a term of five years and fully vest in January 2023, with 33.3% of each grant vesting each subsequent year from the date of grant, contingent upon each recipient’s continued service with the Company. The aggregate fair value of the options on the date of grant, using the Black-Scholes model, was $1,053,000. Variables used in the Black-Scholes option-pricing model for the options issued include: (1) a discount rate of 1.63%, (2) expected term of 3.5 years, (3) expected volatility of 155%, and (4) zero expected dividends. During the three months ended March 31, 2020, the Company recognized stock option expense of $145,000. The remaining amount of unamortized stock options expense at March 31, 2020, was $801,000. The intrinsic value of outstanding and exercisable options at March 31, 2020 was $64,000. Option activity during the three months ended March 31, 2020 was: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Term (Years) Outstanding at December 31, 2019 753,349 $ 3.30 2.4 Granted 733,000 $ 1.68 Expired/Canceled (124,000 ) $ 2.23 Outstanding at March 31, 2020 1,362,349 $ 2.32 1.8 Exercisable at March 31, 2020 686,016 $ 2.97 2.3

11. INCOME TAXES

11. INCOME TAXES	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	The Company has estimated that its effective tax rate for U.S. purposes will be zero for the 2020 and 2019 fiscal years as a result of net losses and a full valuation allowance against the net deferred tax assets. Consequently, the Company has recorded no provision or benefit for income taxes for the three months ended March 31, 2020 and 2019.

12. SUBSEQUENT EVENTS

12. SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	On April 22, 2020, the Company received loan proceeds of $370,000 (the “PPP Loan”) under the U. S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”). The PPP Loan is evidenced by a promissory note, dated as of April 11, 2020 (the “Note”), between the Company and Texas Capital Bank, N.A. The Note has a two-year term, bears interest at the rate of 1.00% per annum, and may be prepaid at any time without payment of any premium. No payments of principal or interest are due during the six-month period beginning on the date of the Note. The principal and accrued interest under the Note are forgivable after eight weeks if the Company uses the PPP Loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and otherwise complies with PPP requirements. On April 23, 2020, the SBA issued new guidance that cast doubt on the ability of public companies to qualify for a PPP loan. As a result, out of an abundance of caution, on May 1, 2020, the Company repaid the full amount of the PPP loan to

3. SUMMARY OF SIGNIFICANT ACC_2

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Recently Issued Accounting Pronouncements	The Company does not expect the adoption of any other recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows.
Subsequent Events	The Company has evaluated all transactions through the date the consolidated financial statements were issued for subsequent event disclosure consideration.

4. REVENUE FROM CONTRACTS WIT_2

4. REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue by significant product type	Three Months Ended March 31, 2020 2019 Oil sales $ 2,703 $ 1,453 Natural gas sales 89 109 Natural gas liquids sales 40 6 Total revenue from customers $ 2,832 $ 1,568

5. CASH (Tables)

5. CASH (Tables)	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
Summary of cash and restricted cash	March 31, 2020 December 31, 2019 Cash $ 12,401 $ 22,415 Restricted cash included in other assets 3,297 3,297 Total cash and restricted cash $ 15,698 $ 25,712

6. OIL AND GAS PROPERTIES (Tabl

6. OIL AND GAS PROPERTIES (Tables)	3 Months Ended
	Mar. 31, 2020
Oil and Gas Property [Abstract]
Oil and gas interests	Balance at December 31, Balance at March 31, 2019 Additions Disposals Transfers 2020 Oil and gas properties, subject to amortization $ 107,164 $ 4,475 $ - $ 7,284 $ 118,923 Oil and gas properties, not subject to amortization 14,896 117 - (7,284 ) 7,729 Asset retirement costs 1,547 (210 ) - - 1,337 Accumulated depreciation and depletion (31,759 ) (3,378 ) - - (35,137 ) Total oil and gas assets $ 91,848 $ 1,004 $ - $ - $ 92,852

7. ASSET RETIREMENT OBLIGATIO_2

7. ASSET RETIREMENT OBLIGATIONS (Tables)	3 Months Ended
	Mar. 31, 2020
Asset Retirement Obligation [Abstract]
Asset retirement obligation	Three Months Ended March 31, 2020 Balance at the beginning of the period (1) $ 2,099 Accretion expense 49 Changes in estimates (210 ) Balance at end of period (2) $ 1,938

8. COMMITMENTS AND CONTINGENC_2

8. COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Supplemental information related to operating lease	Supplemental cash flow information related to the Company’s operating lease is included in the table below (in thousands): Three Months Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities $ 29 Supplemental balance sheet information related to operating leases is included in the table below (in thousands): March 31, 2020 Operating lease – right-of-use asset $ 338 Operating lease liabilities - current $ 99 Operating lease liabilities - long-term 274 Total lease liability $ 373
Lease liability maturity	Remainder of 2020 $ 87 2021 118 2022 121 2023 82 Thereafter - Total lease payments 408 Less imputed interest (35 ) Total lease liability $ 373

10. SHARE-BASED COMPENSATION (T

10. SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2020
Warrant
Schedule of stock option and warrant activity	Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Term (Years) Outstanding at December 31, 2019 753,349 $ 3.30 2.4 Granted 733,000 $ 1.68 Expired/Canceled (124,000 ) $ 2.23 Outstanding at March 31, 2020 1,362,349 $ 2.32 1.8 Exercisable at March 31, 2020 686,016 $ 2.97 2.3

4. REVENUE FROM CONTRACTS WIT_3

4. REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Total revenue from customers	$ 2,832	$ 1,568
Oil Sales
Total revenue from customers	2,703	1,453
Natural Gas Sales
Total revenue from customers	89	109
Natural Gas Liquids Sales
Total revenue from customers	$ 40	$ 6

5. CASH (Details)

5. CASH (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Cash	$ 12,401	$ 22,415
Restricted cash included in other assets	3,297	3,297
Total cash and restricted cash	$ 15,698	$ 25,712	$ 11,345	$ 5,779

6. OIL AND GAS PROPERTIES (Deta

6. OIL AND GAS PROPERTIES (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Oil and gas properties, subject to amortization	$ 118,923	$ 107,164
Oil and gas properties, not subject to amortization	7,729	14,896
Asset retirement costs	1,337	1,547
Accumulated depreciation, depletion and impairment	(35,137)	(31,759)
Total oil and gas assets	92,852	$ 91,848
Additions
Oil and gas properties, subject to amortization	4,475
Oil and gas properties, not subject to amortization	117
Asset retirement costs	(210)
Accumulated depreciation, depletion and impairment	(3,378)
Total oil and gas assets	1,004
Disposals
Oil and gas properties, subject to amortization	0
Oil and gas properties, not subject to amortization	0
Asset retirement costs	0
Accumulated depreciation, depletion and impairment	0
Total oil and gas assets	0
Transfers
Oil and gas properties, subject to amortization	7,284
Oil and gas properties, not subject to amortization	(7,284)
Asset retirement costs	0
Accumulated depreciation, depletion and impairment	0
Total oil and gas assets	$ 0

6. OIL AND GAS PROPERTIES (De_2

6. OIL AND GAS PROPERTIES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Oil and Gas Property [Abstract]
Capital costs for recently completed wells	$ 4,592
Depletion	$ 3,378	$ 2,140

7. ASSET RETIREMENT OBLIGATIO_3

7. ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Asset Retirement Obligation [Abstract]
Balance at the beginning of the period	$ 2,099
Accretion expense	49
Changes in estimates	(210)	$ (11)
Balance at end of period	$ 1,938

8. COMMITMENTS AND CONTINGENC_3

8. COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 29
Operating lease - right-of-use asset	338	$ 360
Operating lease liabilities - current	99	97
Operating lease liabilities - long-term	274	$ 300
Total lease liability	$ 373

8. COMMITMENTS AND CONTINGENC_4

8. COMMITMENTS AND CONTINGENCIES (Details 1) $ in Thousands	Mar. 31, 2020USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2020	$ 87
2021	118
2022	121
2023	82
Thereafter	0
Total lease payments	408
Less imputed interest	(35)
Total lease liability	$ 373

9. SHAREHOLDERS' EQUITY (Detail

9. SHAREHOLDERS' EQUITY (Details)	3 Months Ended
	Mar. 31, 2020shares
Shareholders' equity:
Restricted stock awards	1,119,000
Warrants to purchase common stock	150,329

10. SHARE-BASED COMPENSATION (D

10. SHARE-BASED COMPENSATION (Details)	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Equity [Abstract]
Number of Options Outstanding, Beginning | shares	753,349
Number of Options Granted | shares	733,000
Number of Options Expired/Canceled | shares	(124,000)
Number of Options Outstanding, Ending | shares	1,362,349
Number of Options Exercisable | shares	686,016
Weighted Average Exercise Price Outstanding, Beginning | $ / shares	$ 3.30
Weighted Average Exercise Price Granted | $ / shares	1.68
Weighted Average Exercise Price Expired/Canceled | $ / shares	2.23
Weighted Average Exercise Price Outstanding, Ending | $ / shares	2.32
Weighted Average Exercise Price Exercisable | $ / shares	$ 2.97
Weighted Average Remaining Contractual Life (in years) Outstanding, Beginning	2 years 4 months 24 days
Weighted Average Remaining Contractual Life (in years) Outstanding, Ending	1 year 9 months 18 days
Weighted Average Remaining Contractual Life (in years) Exercisable	2 years 3 months 18 days

10. SHARE-BASED COMPENSATION _2

10. SHARE-BASED COMPENSATION (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Equity [Abstract]
Stock-based compensation expense, restricted stock	$ 708
Unamortized stock-based compensation expense, restricted stock	2,066
Stock-based compensation expense, stock option	145
Unamortized stock-based compensation expense, stock option	801
Intrinsic value of options exercisable	$ 64