PEDEVCO (PED) 10-Q 17 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 14, 2021
Cover [Abstract]
Entity Registrant Name	PEDEVCO CORP
Entity Central Index Key	0001141197
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
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 Interactive Data Current	Yes
Entity Incorporation State Country Code	TX
Entity File Number	001-35922
Entity Common Stock, Shares Outstanding		79,461,603
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current Assets:
Cash	$ 18,532	$ 8,027
Accounts receivable - oil and gas	1,409	660
Prepaid expenses and other current assets	67	66
Total current assets	20,008	8,753
Oil and Gas Properties:
Oil and gas properties, subject to amortization, net	66,295	66,994
Oil and gas properties, not subject to amortization, net	4	4
Total oil and gas properties, net	66,299	66,998
Operating lease - right-of-use asset	246	270
Other assets	3,536	3,543
Total assets	90,089	79,564
Current Liabilities:
Accounts payable	678	212
Accrued expenses	464	3,032
Revenue payable	879	836
PPP loan - current	349	288
Operating lease liabilities - current	107	105
Asset retirement obligations - current	245	234
Total current liabilities	2,722	1,978
Long-Term Liabilities:
PPP loan	21	82
Operating lease liabilities	167	195
Asset retirement obligations	1,828	1,673
Total liabilities	4,738	3,928
Commitments and contingencies
Shareholders' Equity:
Common stock, $0.001 par value, 200,000,000 shares authorized; 79,461,603 and 72,463,340 shares issued and outstanding, respectively	79	72
Additional paid-in-capital	212,830	203,850
Accumulated deficit	(127,558)	(128,286)
Total shareholders' equity	85,351	75,636
Total liabilities and shareholders' equity	$ 90,089	$ 79,564

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Stockholders' Equity:
Common stock, par value	$ .001	$ .001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	79,461,603	72,463,340
Common stock, shares outstanding	79,461,603	72,463,340

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue:
Oil and gas sales	$ 3,531	$ 2,832
Operating Expenses:
Lease operating costs	1,286	1,522
Exploration expense	0	30
Selling, general and administrative expense	1,767	2,123
Depreciation, depletion, amortization and accretion	1,561	3,437
Total operating expenses	4,614	7,112
Gain on sale of oil and gas properties	1,805	0
Operating income (loss)	722	(4,280)
Other Income (Expense):
Interest expense	(1)	0
Interest income	4	24
Other income (expense)	3	(1)
Total other income	6	23
Net income (loss)	$ 728	$ (4,257)
Loss per common share: basic	$ 0.01	$ (0.06)
Loss per common share: diluted	$ 0.01	$ (0.06)
Weighted average number of common shares outstanding: basic	76,839,795	71,996,295
Weighted average number of common shares outstanding: diluted	77,039,719	71,996,295

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flows From Operating Activities:
Net loss	$ 728	$ (4,257)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, depletion, amortization and accretion	1,561	3,437
Gain on sale of oil and gas properties	(1,805)	0
Amortization of right-of-use asset	24	22
Share-based compensation expense	684	853
Changes in operating assets and liabilities:
Accounts receivable - oil and gas	(749)	1,778
Prepaid expenses and other current assets	(1)	(4)
Accounts payable	267	(3,373)
Accrued expenses	161	254
Revenue payable	43	(4)
Net cash (used in) provided by operating activities	913	(1,294)
Cash Flows From Investing Activities:
Cash paid for drilling and completion costs	(582)	(8,720)
Proceeds from the sale of oil and gas property	1,871	0
Net cash provided by (used in) investing activities	1,289	(8,720)
Cash Flows From Financing Activities:
Proceeds from issuance of shares, net of offering costs	8,303	0
Net cash provided by financing activities	8,303	0
Net (decrease) increase in cash and restricted cash	10,505	(10,014)
Cash and restricted cash at beginning of period	11,324	25,712
Cash and restricted cash at end of period	21,829	15,698
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	173	4,128
Changes in estimates of asset retirement obligations, net	45	210
Issuance of restricted common stock	$ 1	$ 1

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Common Stock	Additional Paid in Capital	Accumulated Deficit	Total
Beginning balance, shares at Dec. 31, 2019	71,061,328
Beginning balance, amount at Dec. 31, 2019	$ 71	$ 201,027	$ (95,596)	$ 105,502
Issuance of restricted common stock, shares	1,119,000
Issuance of restricted common stock, amount	$ 1	(1)		0
Rescinded restricted common stock, shares	(55,000)
Rescinded restricted common stock, amount				0
Shared-based compensation		853		853
Net loss			(4,257)	(4,257)
Ending balance, shares at Mar. 31, 2020	72,125,328
Ending balance, amount at Mar. 31, 2020	$ 72	201,879	(99,853)	102,098
Beginning balance, shares at Dec. 31, 2020	72,463,340
Beginning balance, amount at Dec. 31, 2020	$ 72	203,850	(128,286)	75,636
Issuance of restricted common stock, shares	960,000
Issuance of restricted common stock, amount	$ 1	(1)		$ 0
Rescinded restricted common stock, shares	(16,667)			0
Issuance of restricted common stock to non-affiliate, shares	5,968,500
Issuance of restricted common stock to non-affiliate, amount	$ 6	8,297		$ 8,303
Cashless exercise of stock options, shares	86,430			191,999
Cashless exercise of stock options, amount				$ 0
Shared-based compensation		684		684
Net loss			728	728
Ending balance, shares at Mar. 31, 2021	79,461,603
Ending balance, amount at Mar. 31, 2021	$ 79	$ 212,830	$ (127,558)	$ 85,351

1. BASIS OF PRESENTATION

1. BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2021
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, 2020, filed with the SEC on March 23, 2021 (the “2020 Annual Report”), 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, 2021
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-Julesburg 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.

3. SUMMARY OF SIGNIFICANT ACCOU

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	The Company has provided a discussion of significant accounting policies, estimates and judgments in its 2020 Annual Report. There have been no changes to the Company’s significant accounting policies since December 31, 2020. 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, 2021
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	Disaggregation of Revenue from Contracts with Customers. Three Months Ended March 31, 2021 2020 Oil sales $ 3,433 $ 2,703 Natural gas sales 75 89 Natural gas liquids sales 23 40 Total revenue from customers $ 3,531 $ 2,832 There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of March 31, 2021.

5. CASH

5. CASH	3 Months Ended
	Mar. 31, 2021
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 in the periods indicated (in thousands): March 31, 2021 December 31, 2020 Cash $ 18,532 $ 8,027 Restricted cash included in other assets 3,297 3,297 Total cash and restricted cash $ 21,829 $ 11,324

6. OIL AND GAS PROPERTIES

6. OIL AND GAS PROPERTIES	3 Months Ended
	Mar. 31, 2021
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, 2021 (in thousands): Balance at December 31, 2020 Additions Disposals Transfers Balance at March 31, 2021 Oil and gas properties, subject to amortization $ 146,950 $ 755 $ (66 ) $ - $ 147,639 Oil and gas properties, not subject to amortization 4 - - - 4 Asset retirement costs 1,108 50 (5 ) - 1,153 Accumulated depreciation, depletion and impairment (81,064 ) (1,433 ) - - (82,497 ) Total oil and gas assets $ 66,998 $ (628 ) $ (71 ) $ - $ 66,299 For the three-month period ended March 31, 2021, the Company incurred $755,000 in capital costs primarily related to capital workovers for three wells in our Permian Basin Asset, which included clean outs, converting from an electric submersible pump (“ESP”) to rod pump, and installation of an ESP. On March 18, 2021, the Company, through its wholly-owned subsidiary Red Hawk, consummated the sale of certain assets and associated liabilities located in its D-J Basin Asset to third parties pursuant to a Purchase and Sale Agreement. The Company received net cash at closing of $1.9 million. The final purchase price is further subject to customary post-closing adjustments. As a result of the transaction, the Company recognized a $1.8 million gain on sale of oil and gas properties on the Statement of Operations for the three months ended March 31, 2021. The depletion recorded for production on proved properties for the three months ended March 31, 2021 and 2020, amounted to $1,433,000, compared to $3,378,000, respectively.

7. PPP LOANS

7. PPP LOANS	3 Months Ended
	Mar. 31, 2021
Loans Payable [Abstract]
PPP LOANS	On April 22, 2020, the Company received loan proceeds of $370,000 (the “Original PPP Loan”) under the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) n April 23, 2020, the SBA issued 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 Original PPP Loan to On June 2, 2020, the Company again received loan proceeds of $370,000 (the “New PPP Loan”) under the SBA PPP. The New PPP Loan is evidenced by a promissory note, dated as of May 28, 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 New PPP Loan proceeds for eligible purposes, including payroll, benefits, rent, and utilities, and otherwise complies with PPP requirements, with the full principal and accrued interest expected to be forgiven in full by the Company. As of March 31, 2021, the Company had accrued $3,000 in interest on the Note. As of March 31, 2021, the full amount of the loan was outstanding, with $349,000 included in current liabilities on the balance sheet. As of the issuance date of these financial statements, the Company believes that it has used the loan proceeds only for eligible expenses, has submitted the necessary loan forgiveness application to Texas Capital Bank, N.A., and the SBA has notified the Company that the SBA has selected its loan for review. The Company is awaiting completion of the review and confirmation from the SBA on its loan forgiveness determination.

8. ASSET RETIREMENT OBLIGATIONS

8. ASSET RETIREMENT OBLIGATIONS	3 Months Ended
	Mar. 31, 2021
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, 2021 Balance at the beginning of the period (1) $ 1,907 Accretion expense 121 Changes in estimates, net 45 Balance at end of period (2) $ 2,073 (1) Includes $234,000 of current asset retirement obligations at December 31, 2020. (2) Includes $245,000 of current asset retirement obligations at March 31, 2021.

9. COMMITMENTS AND CONTINGENCIE

9. COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Lease Agreements Currently, the Company has one operating lease for office space that requires Accounting Standards Codification (ASC) Topic 842 treatment, discussed below. 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 the 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 (other than the New PPP Loan which the Company expects to be forgiven), 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. 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. Supplemental cash flow information related to the Company’s operating lease is included in the table below (in thousands): Three Months Ended March 31, 2021 Cash paid for amounts included in the measurement of lease liabilities $ 30 Supplemental balance sheet information related to operating leases is included in the table below (in thousands): March 31, 2021 Operating lease – right-of-use asset $ 246 Operating lease liabilities - current $ 107 Operating lease liabilities - long-term 167 Total lease liability $ 274 The weighted-average remaining lease term for the Company’s operating lease is 2.4 years as of March 31, 2021, 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 2021 $ 89 2022 121 2023 82 Thereafter - Total lease payments 292 Less imputed interest (18 ) Total lease liability $ 274 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, no net acres expire during the remainder of 2021, and no significant net acres expire thereafter (net to our direct ownership interest only). In the Permian Basin Asset, 2,731 acres are due to expire during the remainder of 2021 and 1,475 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.

10. SHAREHOLDERS' EQUITY

10. SHAREHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2021
Shareholders' Equity:
SHAREHOLDERS' EQUITY	Common Stock During the three months ended March 31, 2021, the Company granted an aggregate of 960,000 restricted stock awards to various employees of the Company. Additionally, 16,667 shares of restricted common stock were forfeited to the Company and canceled due to an employee termination (see Note 11 below). On February 5, 2021, the Company closed an underwritten public offering of 5,968,500 shares of common stock at a public offering price of $1.50 per share, which included the full exercise of the underwriter’s over-allotment option, for net proceeds (after deducting the underwriters’ discount equal to 6% of the public offering price and expenses associated with the offering) of approximately $8.3 million. Warrants During the three months ended March 31, 2021, no warrants were granted, exercised or cancelled, and as of March 31, 2021 and December 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, 2021 was $171,000.

11. SHARE-BASED COMPENSATION

11. SHARE-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2021
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 19, 2021, restricted stock awards were granted to officers of the Company for an aggregate of 940,000 of the Company’s common stock, under the Company’s Amended and Restated 2012 Equity Incentive Plan. The grant for the 940,000 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 $1,307,000 based on the market price on the issuance date. On February 5, 2021, the Company closed an underwritten public offering of 5,968,500 shares of common stock at a public offering price of $1.50 per share, which included the full exercise of the underwriter’s over-allotment option, for net proceeds (after deducting the underwriters’ discount equal to 6% of the public offering price and expenses associated with the offering) of approximately $8.3 million. On February 28, 2021, 16,667 shares of restricted common stock were rescinded due to an employee termination. As a result, these shares were canceled and the shares once again became eligible for future awards under the Company’s Amended and Restated 2012 Equity Incentive Plan. On March 31, 2021, 20,000 restricted stock awards were granted to a new employee of the Company, under the Company’s Amended and Restated 2012 Equity Incentive Plan. The grant for the 20,000 shares of restricted stock vest as follows: 100% vest on March 23, 2022, contingent upon the recipient’s continued service with the Company. These shares have a total fair value of $29,000 based on the market price on the issuance date. Stock-based compensation expense recorded related to the vesting of restricted stock for the three months ended March 31, 2021 was $570,000. The remaining unamortized stock-based compensation expense at March 31, 2021 related to restricted stock was $1,881,000. Options On January 19, 2021, the Company granted options to purchase an aggregate of 550,000 shares of common stock to various Company employees at an exercise price of $1.39 per share. The options have a term of five years and fully vest in January 2024, with 33.3% 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 $654,000. Variables used in the Black-Scholes option-pricing model for the options issued include: (1) a discount rate of 0.45% based on the applicable US Treasury bill rate, (2) expected term of 3.5 years, (3) expected volatility of 156% based on the trading history of the Company, and (4) zero expected dividends. On January 28, 2021, the Company issued 86,430 total shares of common stock upon the cashless exercise of stock options to purchase an aggregate of 191,999 shares of common stock with exercise prices ranging between $1.10 and $1.68 per share, based on a then-current market value of $2.89 per share, under the terms of the options. The options had an intrinsic value of $250,000 on the exercise date. During the three months ended March 31, 2021, the Company recognized stock option expense of $114,000. The remaining amount of unamortized stock options expense at March 31, 2021, was $722,000. The intrinsic value of outstanding and exercisable options at March 31, 2021 was $108,000. Option activity during the three months ended March 31, 2021 was: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Term (Years) Outstanding at December 31, 2020 1,234,849 $ 2.43 2.7 Granted 550,000 $ 1.39 Exercised (191,999 ) $ 1.59 Expired/Canceled (236,334 ) $ 4.01 Outstanding at March 31, 2021 1,354,516 $ 1.85 3.3 Exercisable at March 31, 2021 532,515 $ 2.38 1.8

12. EARNINGS (LOSS) PER COMMON

12. EARNINGS (LOSS) PER COMMON SHARE	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER COMMON SHARE	Earnings (loss) per common share-basic is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Net income (loss) per common share-diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing net (loss) income by the sum of the weighted average number of shares of common stock, as defined above, outstanding plus potentially dilutive securities. Net (loss) income per common share-diluted considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares, as defined above, would have an anti-dilutive effect. The calculation of earnings (loss) per share for the periods ended March 31, 2021 and 2020 were as follows (amounts in thousands, except share and per share data): Numerator: March 31, 2021 March 31, 2020 Net income (loss) $ 728 $ (4,257 ) Effect of common stock equivalents - - Net income (loss) adjusted for common stock equivalents $ 728 $ (4,257 ) Denominator: Weighted average common shares – basic 76,839,795 71,996,295 Dilutive effect of common stock equivalents: Options and Warrants 199,923 - Denominator: Weighted average common shares – diluted 77,039,719 71,996,295 Earnings (loss) per common share – basic $ 0.01 $ (0.06 ) Earnings (loss) per common share – diluted $ 0.01 $ (0.06 ) For the periods ended March 31, 2021 and 2020, share equivalents related to options to purchase 1,202,849 and 1,179,849 shares of common stock, respectively, were excluded from the computation of diluted net income (loss) per share as the inclusion of such shares would be anti-dilutive.

13. INCOME TAXES

13. INCOME TAXES	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	The Company has estimated that its effective tax rate for U.S. purposes will be zero for the 2021 and 2020 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, 2021 and 2020, respectively.

3. SUMMARY OF SIGNIFICANT ACC_2

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2021
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, 2021
Revenue from Contract with Customer [Abstract]
Revenue by significant product type	Three Months Ended March 31, 2021 2020 Oil sales $ 3,433 $ 2,703 Natural gas sales 75 89 Natural gas liquids sales 23 40 Total revenue from customers $ 3,531 $ 2,832

5. CASH (Tables)

5. CASH (Tables)	3 Months Ended
	Mar. 31, 2021
Receivables [Abstract]
Cash and restricted cash	March 31, 2021 December 31, 2020 Cash $ 18,532 $ 8,027 Restricted cash included in other assets 3,297 3,297 Total cash and restricted cash $ 21,829 $ 11,324

6. OIL AND GAS PROPERTIES (Tabl

6. OIL AND GAS PROPERTIES (Tables)	3 Months Ended
	Mar. 31, 2021
Oil and Gas Property [Abstract]
Oil and gas interests	Balance at December 31, 2020 Additions Disposals Transfers Balance at March 31, 2021 Oil and gas properties, subject to amortization $ 146,950 $ 755 $ (66 ) $ - $ 147,639 Oil and gas properties, not subject to amortization 4 - - - 4 Asset retirement costs 1,108 50 (5 ) - 1,153 Accumulated depreciation, depletion and impairment (81,064 ) (1,433 ) - - (82,497 ) Total oil and gas assets $ 66,998 $ (628 ) $ (71 ) $ - $ 66,299

8. ASSET RETIREMENT OBLIGATIO_2

8. ASSET RETIREMENT OBLIGATIONS (Tables)	3 Months Ended
	Mar. 31, 2021
Asset Retirement Obligation [Abstract]
Asset retirement obligation	Three Months Ended March 31, 2021 Balance at the beginning of the period (1) $ 1,907 Accretion expense 121 Changes in estimates, net 45 Balance at end of period (2) $ 2,073 (1) Includes $234,000 of current asset retirement obligations at December 31, 2020. (2) Includes $245,000 of current asset retirement obligations at March 31, 2021.

9. COMMITMENTS AND CONTINGENC_2

9. COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Supplemental information related to operating lease	Three Months Ended March 31, 2021 Cash paid for amounts included in the measurement of lease liabilities $ 30 Supplemental balance sheet information related to operating leases is included in the table below (in thousands): March 31, 2021 Operating lease – right-of-use asset $ 246 Operating lease liabilities - current $ 107 Operating lease liabilities - long-term 167 Total lease liability $ 274
Lease liability maturity	Remainder of 2021 $ 89 2022 121 2023 82 Thereafter - Total lease payments 292 Less imputed interest (18 ) Total lease liability $ 274

11. SHARE-BASED COMPENSATION (T

11. SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2021
Warrant
Stock option activity	Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Term (Years) Outstanding at December 31, 2020 1,234,849 $ 2.43 2.7 Granted 550,000 $ 1.39 Exercised (191,999 ) $ 1.59 Expired/Canceled (236,334 ) $ 4.01 Outstanding at March 31, 2021 1,354,516 $ 1.85 3.3 Exercisable at March 31, 2021 532,515 $ 2.38 1.8

12. EARNINGS (LOSS) PER COMMO_2

12. EARNINGS (LOSS) PER COMMON SHARE (Tables)	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Earnings (loss) per share	Numerator: March 31, 2021 March 31, 2020 Net income (loss) $ 728 $ (4,257 ) Effect of common stock equivalents - - Net income (loss) adjusted for common stock equivalents $ 728 $ (4,257 ) Denominator: Weighted average common shares – basic 76,839,795 71,996,295 Dilutive effect of common stock equivalents: Options and Warrants 199,923 - Denominator: Weighted average common shares – diluted 77,039,719 71,996,295 Earnings (loss) per common share – basic $ 0.01 $ (0.06 ) Earnings (loss) per common share – diluted $ 0.01 $ (0.06 )

4. REVENUE FROM CONTRACTS WIT_3

4. REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Total revenue from customers	$ 3,531	$ 2,832
Oil Sales
Total revenue from customers	3,433	2,703
Natural Gas Sales
Total revenue from customers	75	89
Natural Gas Liquids Sales
Total revenue from customers	$ 23	$ 40

5. CASH (Details)

5. CASH (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Receivables [Abstract]
Cash	$ 18,532	$ 8,027
Restricted cash included in other assets	3,297	3,297
Total cash and restricted cash	$ 21,829	$ 11,324	$ 15,698	$ 25,712

6. OIL AND GAS PROPERTIES (Deta

6. OIL AND GAS PROPERTIES (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Oil and gas properties, subject to amortization	$ 147,639	$ 146,950
Oil and gas properties, not subject to amortization	4	4
Asset retirement costs	1,153	1,108
Accumulated depreciation, depletion and impairment	(82,497)	(81,064)
Total oil and gas assets	66,299	$ 66,998
Additions
Oil and gas properties, subject to amortization	755
Oil and gas properties, not subject to amortization	0
Asset retirement costs	50
Accumulated depreciation, depletion and impairment	(1,433)
Total oil and gas assets	(628)
Disposals
Oil and gas properties, subject to amortization	(66)
Oil and gas properties, not subject to amortization	0
Asset retirement costs	(5)
Accumulated depreciation, depletion and impairment	0
Total oil and gas assets	(71)
Transfers
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

6. OIL AND GAS PROPERTIES (De_2

6. OIL AND GAS PROPERTIES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Oil and Gas Property [Abstract]
Capital costs for recently completed wells	$ 755
Depletion	$ 1,433	$ 3,378

8. ASSET RETIREMENT OBLIGATIO_3

8. ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Asset Retirement Obligation [Abstract]
Balance at the beginning of the period	[1]	$ 1,907
Accretion expense		121
Changes in estimates		45	$ 210
Balance at end of period	[2]	$ 2,073
[1]	Includes $234,000 of current asset retirement obligations at December 31, 2020
[2]	Includes $245,000 of current asset retirement obligations at March 31, 2021.

9. COMMITMENTS AND CONTINGENC_3

9. COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 30
Operating lease - right-of-use asset	246	$ 270
Operating lease liabilities - current	107	105
Operating lease liabilities - long-term	167	$ 195
Total lease liability	$ 274

9. COMMITMENTS AND CONTINGENC_4

9. COMMITMENTS AND CONTINGENCIES (Details 1) $ in Thousands	Mar. 31, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2021	$ 89
2022	121
2023	82
Thereafter	0
Total lease payments	292
Less imputed interest	(18)
Total lease liability	$ 274

9. COMMITMENTS AND CONTINGENC_5

9. COMMITMENTS AND CONTINGENCIES (Details Narrative)	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Weighted-average remaining lease term	2 years 4 months 24 days
Weighted-average discount rate	5.35%

10. SHAREHOLDERS' EQUITY (Detai

10. SHAREHOLDERS' EQUITY (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)shares
Shareholders' Equity:
Restricted stock awards granted | shares	960,000
Warrants to purchase common stock | shares	150,329
Intrinsic value of warrants outstanding | $	$ 171
Intrinsic value of warrants exercisable | $	$ 171

11. SHARE-BASED COMPENSATION (D

11. SHARE-BASED COMPENSATION (Details)	3 Months Ended
	Mar. 31, 2021$ / sharesshares
Equity [Abstract]
Number of options outstanding, beginning | shares	1,234,849
Granted | shares	550,000
Exercised | shares	(191,999)
Expired/canceled | shares	(236,334)
Number of options outstanding, ending | shares	1,354,516
Number of options exercisable | shares	532,515
Weighted average exercise price outstanding, beginning | $ / shares	$ 2.43
Granted | $ / shares	1.39
Exercised | $ / shares	1.59
Expired/canceled | $ / shares	4.01
Weighted average exercise price outstanding, ending | $ / shares	1.85
Weighted average exercise price exercisable | $ / shares	$ 2.38
Weighted average remaining contractual life (in years) outstanding, beginning	2 years 8 months 12 days
Weighted average remaining contractual life (in years) outstanding, ending	3 years 3 months 18 days
Weighted average remaining contractual life (in years) exercisable	1 year 9 months 18 days

11. SHARE-BASED COMPENSATION _2

11. SHARE-BASED COMPENSATION (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Equity [Abstract]
Stock-based compensation expense, restricted stock	$ 570
Unamortized stock-based compensation expense, restricted stock	1,881
Stock-based compensation expense, stock option	114
Unamortized stock-based compensation expense, stock option	772
Intrinsic value of options exercisable	$ 108

12. EARNINGS (LOSS) PER COMMO_3

12. EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Numerator
Net income (loss)	$ 728	$ (4,257)
Effect of common stock equivalents
Net income (loss) adjusted for common stock equivalents	$ 728	$ (4,257)
Weighted average number of common shares outstanding: basic	76,839,795	71,996,295
Dilutive effect of common stock equivalents:
Options and warrants	$ 199,923	$ 0
Denominator:
Weighted average number of common shares outstanding: diluted	77,039,719	71,996,295
Loss per common share: basic	$ 0.01	$ (0.06)
Loss per common share: diluted	$ 0.01	$ (0.06)