Houston American Energy (HUSA) 10-Q 13 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	12-May-15
Document and Entity Information [Abstract]
Entity Registrant Name	HOUSTON AMERICAN ENERGY CORP
Entity Central Index Key	1156041
Current Fiscal Year End Date	-19
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		52,169,945
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Mar-15

CONSOLIDATED_BALANCE_SHEETS_Un

CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash	$3,342,836	$4,052,212
Escrow receivable	321,428	321,428
Insurance claim receivable	7,770,574	8,612,681
Prepaid expenses and other current assets	295,306	124,960
TOTAL CURRENT ASSETS	11,730,144	13,111,281
Oil and gas properties - full cost method
Costs subject to amortization	54,833,445	54,025,617
Costs not being amortized	2,803,303	3,586,284
Office equipment	90,004	90,004
Total	57,726,752	57,701,905
Accumulated depreciation, depletion, amortization and impairment	-53,010,832	-52,201,878
PROPERTY AND EQUIPMENT, NET	4,715,920	5,500,027
Other assets	3,167	3,167
TOTAL ASSETS	16,449,231	18,614,475
CURRENT LIABILITIES
Accounts payable	33,897	181,683
Litigation settlement payable	7,000,000	7,000,000
Accrued legal fees	880,574	1,722,681
Contingent liability	400,000	400,000
Accrued expenses	1,436	10,100
TOTAL CURRENT LIABILITIES	8,315,907	9,314,464
LONG-TERM LIABILITIES
Reserve for plugging and abandonment costs	28,729	28,147
TOTAL LIABILITIES	8,344,636	9,342,611
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common stock, $0.001 par value; 150,000,000 shares authorized; 52,169,945 shares issued and outstanding	52,170	52,170
Additional paid-in capital	65,947,851	65,928,056
Accumulated deficit	-57,895,426	-56,708,362
TOTAL SHAREHOLDERS' EQUITY	8,104,595	9,271,864
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$16,449,231	$18,614,475

CONSOLIDATED_BALANCE_SHEETS_Un1

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
SHAREHOLDERS' EQUITY
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	52,169,945	52,169,945
Common stock, outstanding (in shares)	52,169,945	52,169,945

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]
OIL AND GAS REVENUE	$101,971	$106,023
EXPENSES OF OPERATIONS
Lease operating expense and severance tax	28,913	26,903
General and administrative expense	455,873	608,509
Impairment of oil and gas properties	677,051	0
Depreciation and depletion	131,903	6,716
Total operating expenses	1,293,740	642,128
Loss from operations	-1,191,769	-536,105
OTHER INCOME
Interest income	5,456	1,473
Total other income	5,456	1,473
Net loss before taxes	-1,186,313	-534,632
Income tax expense	751	736
Net loss	($1,187,064)	($535,368)
Basic and diluted loss per common share (in dollars per share)	($0.02)	($0.01)
Basic and diluted weighted average common shares outstanding (in shares)	52,169,945	52,169,945

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CASH FLOW FROM OPERATING ACTIVITIES
Net loss	($1,187,064)	($535,368)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and depletion	131,903	6,716
Impairment of oil and gas properties	677,051	0
Stock-based compensation	19,795	230,010
Accretion of asset retirement obligation	582	138
Changes in operating assets and liabilities:
Decrease in insurance receivable	842,107	0
Increase in prepaid expenses and other current assets	-170,346	-392,240
Decrease in accounts payable and accrued expenses	-156,450	-9,934
Decrease in accrued legal fees	-842,107	0
Net cash used in operating activities	-684,529	-700,678
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for the acquisition and development of oil and gas properties	-24,847	-944,446
Proceeds from receipt of escrow receivables	0	1,565,862
Net cash provided by (used in) investing activities	-24,847	621,416
Decrease in cash	-709,376	-79,262
Cash, beginning of period	4,052,212	7,578,730
Cash, end of period	3,342,836	7,499,468
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid	0	0
Taxes paid	$751	$13,560

BASIS_OF_PRESENTATION_AND_SIGN

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2015
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
	The accompanying unaudited consolidated financial statements of Houston American Energy Corp., a Delaware corporation (the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for a complete financial presentation. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included in the accompanying unaudited consolidated financial statements.  Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year.
	These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes, which are included as part of the Company’s Form 10-K for the year ended December 31, 2014.
	Consolidation
	The accompanying consolidated financial statements include all accounts of the Company and its subsidiaries (HAEC Louisiana E&P, Inc., HAEC Oklahoma E&P, Inc., and HAEC Caddo Lake E&P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation.
	Accounting Principles and Use of Estimates
	The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews its estimates, including those related to such potential matters as litigation, environmental liabilities, income taxes and the related valuation allowance, determination of proved reserves of oil and gas and asset retirement obligations. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates.
	Concentration of Credit Risk
	Financial instruments that potentially subject the Company to a concentration of credit risk include cash, cash equivalents and any marketable securities. The Company had cash deposits of $2,753,578 in excess of the FDIC’s current insured limit on interest bearing accounts of $250,000 as of March 31, 2015. The Company has not experienced any losses on its deposits of cash and cash equivalents.
	Loss per Share
	Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares that then shared in the earnings of the Company. The Company’s only outstanding potentially dilutive securities are options and warrants. For the three months ended March 31, 2015 and 2014, using the treasury stock method, outstanding ‘in-the-money’ options would have increased our diluted weighted average shares outstanding by 55,600 and 229,014 shares, respectively; however, due to losses during these periods, these options were excluded from the diluted earnings per share calculation because their effect would have been anti-dilutive.
	Subsequent Events
	The Company has evaluated all transactions from March 31, 2015 through the financial statement issuance date for subsequent event disclosure consideration.
	Recent Accounting Pronouncements
	No accounting standards or interpretations issued recently are expected to a have a material impact on our consolidated financial position, operations or cash flows.

ESCROW_RECEIVABLE

ESCROW RECEIVABLE	3 Months Ended
	Mar. 31, 2015
ESCROW RECEIVABLE [Abstract]
ESCROW RECEIVABLE	NOTE 2 – ESCROW RECEIVABLE
	At March 31, 2015 and December 31, 2014, the Company’s balance sheets reflected the following current escrow receivables relating to various oil and gas properties previously held by the Company:
		31-Mar-15		31-Dec-14
	Tambaqui Escrow	$	4,331	$	4,331
	HDC LLC & HL LLC 15% Escrow		294,383		294,383
	HDC LLC & HL LLC 5% Contingency		11,256		11,256
	HC LLC 5% Contingency		11,458		11,458
	TOTAL	$	321,428	$	321,428
	The principal escrow receivables relate to the sale of Hupecol Cuerva LLC (“HC LLC”) and the 2010 sale of HDC LLC and Hupecol Llanos LLC (“HL LLC”).

OIL_AND_GAS_PROPERTIES

OIL AND GAS PROPERTIES	3 Months Ended
	Mar. 31, 2015
OIL AND GAS PROPERTIES [Abstract]
OIL AND GAS PROPERTIES	NOTE 3 – OIL AND GAS PROPERTIES
	During the three months ended March 31, 2015, the Company invested $24,847 for the development of oil and gas properties, consisting of (1) preparation and evaluation costs in Colombia of $3,749, and (2) costs on U.S. properties of $21,098. Of the amount invested, the Company capitalized $21,098 to oil and gas properties subject to amortization, and $3,749 to oil and gas properties not subject to amortization, attributable to preparation and evaluation cost in Colombia of $3,749 and drilling cost in the U.S. of $21,098.
	Geographical Information
	The Company currently has operations in two geographical areas, the United States and Colombia. Revenues for the three months ended March 31, 2015 and long lived assets (net of depletion, amortization, and impairments) as of March 31, 2015 attributable to each geographical area are presented below:
		Three Months Ended March 31, 2015			As of March 31, 2015
		Revenues			Long Lived Assets, Net
	United States		$	101,971		$	2,678,163
	Colombia			—			2,037,757
	Total		$	101,971		$	4,715,920

STOCKBASED_COMPENSATION_EXPENS

STOCK-BASED COMPENSATION EXPENSE	3 Months Ended
	Mar. 31, 2015
STOCK-BASED COMPENSATION EXPENSE [Abstract]
STOCK-BASED COMPENSATION EXPENSE	NOTE 4 – STOCK-BASED COMPENSATION EXPENSE
	The Company periodically grants options to employees, directors and consultants under the Company’s 2005 Stock Option Plan and the Company’s 2008 Equity Incentive Plan (together, the “Plans”).  The Company is required to make estimates of the fair value of the related instruments and recognize expense over the period benefited, usually the vesting period.
	Stock Option Activity
	A summary of stock option activity and related information for the three months ended March 31, 2015 is presented below:
			Options				Weighted-Average Exercise Price			Aggregate Intrinsic Value
	Outstanding at January 1, 2015			3,392,832			$	3.21
	Granted			-				-
	Exercised			-				-
	Forfeited			-				-
	Outstanding at March 31, 2015			3,392,832			$	3.21		$	-
	Exercisable at March 31, 2015			2,292,832			$	4.56		$	-
	No options were granted or exercised during the three months ended March 31, 2015. During the three months ended March 31, 2015, the Company recognized $19,795 of stock compensation expense attributable to the amortization of unrecognized stock-based compensation.  As of March 31, 2015, total unrecognized stock-based compensation expense related to non-vested stock options was $94,484. The unrecognized expense is expected to be recognized over a weighted average period of 2.19 years and the weighted average remaining contractual term of the outstanding options and exercisable options at March 31, 2015 is 6.54 years and 5.40 years, respectively.
	Shares available for issuance under the Plans as of March 31, 2015 totaled 2,607,168 shares.
	Restricted Stock Activity
	During 2011, the Company granted to officers an aggregate of 45,000 shares of restricted stock, which shares vested over a period of three years.  The fair value of $743,400 was determined based on the fair market value of the shares on the date of grant.  This value was amortized over the vesting period and, during the three months ended March 31, 2015 and 2014, $0 and $20,155 was amortized to expense.  As of March 31, 2015, there was no unrecognized compensation cost related to unvested restricted stock.
	Share-Based Compensation Expense
	The following table reflects share-based compensation recorded by the Company for the three months ended March 31, 2015 and 2014:
		Three Months Ended
		March 31,
		2015				2014
	Share-based compensation expense included in general and administrative expense		$	19,795			$	230,010
	Earnings per share effect of share-based compensation expense – basic and diluted		$	(0.00	)		$	(0.00	)

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 5 - COMMITMENTS AND CONTINGENCIES
	Lease Commitment
	The Company leases office facilities under an operating lease agreement that expires May 31, 2017.  As of March 31, 2015, the lease agreement requires future payments as follows:
	Year	Amount
	2015		70,345
	2016		96,162
	2017		40,479
	Total	$	206,986
	For the three months ended March 31, the total base rental expense was $21,376 in 2015 and $23,730 in 2014.  The Company does not have any capital leases or other operating lease commitments.
	Legal Contingencies
	The Company is subject to legal proceedings, claims and liabilities that arise in the ordinary course of its business. The Company accrues for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as further information develops or circumstances change.
	Silverman Shareholder Class Action Suit.  On April 27, 2012, a purported class action lawsuit was filed in the U.S. District Court for the Southern District of Texas against the Company and certain of its executive officers: Steve Silverman v. Houston American Energy Corp. et al., Case No. 4:12-CV-1332.  The complaint generally alleged that, between March 29, 2010 and April 18, 2012, all of the defendants violated Sections 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 and the individual defendants violated Section 20(a) of the Exchange Act in making materially false and misleading statements including certain statements related to the status and viability of the Tamandua #1 well on the Company’s CPO 4 prospect. Two additional class action lawsuits were filed against us in May 2012. The complaints sought unspecified damages, interest, attorneys’ fees, and other costs. On September 20, 2012, the court consolidated the class action lawsuits and appointed a lead plaintiff and, on November 15, 2012, the lead plaintiffs filed an amended complaint.  The amended complaint, among other things, expanded the putative class period to November 9, 2009 to April 18, 2012 and added allegations challenging a November 2009 estimate concerning the CPO 4 prospect.  On January 14, 2013, the Company filed a motion to dismiss and, on August 22, 2013, the court granted the motion and dismissed the complaint. The plaintiffs subsequently filed a Notice of Appeal of the dismissal of the complaint. On July 15, 2014, the U.S. Court of Appeals for the Fifth Circuit reversed the dismissal of the case. The appellate court ruling focused on the sufficiency of the pleadings in the case, made no determination regarding the merits of the factual allegations, and remanded the case to the District Court for further proceedings. In October 2014, the parties reached an agreement in principle to settle the consolidated lawsuit. The settlement, which provides for a $7,000,000 payment, is expected to be fully funded by the Company’s insurance and was subject to preliminary and final approval of the court. The parties submitted the settlement to the court for approval on December 31, 2014.  The court signed an order on April 16, 2015 preliminarily approving the settlement and scheduled a final approval hearing on July 29, 2015.  Pursuant to the terms of the settlement, the Company, through its insurer, is required to escrow settlement funds in the amount of $7,000,000 by approximately May 15, 2015, The Compnay's insurer deposited the required funds into an escrow account to fund  the settlement. If, for any reason, the settlement is not approved and consummated, we may be exposed to damages and costs in excess of our insurance which would have a material adverse effect on our financial position, results of operations or cash flows.
	SEC Administrative Proceeding.  On August 4, 2014, following a multi-year investigation, the SEC instituted administrative cease-and-desist proceedings pursuant to Section 8A of the Securities Act of 1933 and 21C of the Securities Exchange Act of 1934, styled In the Matter of Houston American Energy Corp., John F. Terwilliger, Jr., Undiscovered Equities, Inc. and Kevin T. McKnight.  The administrative proceeding alleged that Mr. Terwilliger and, in turn, Houston American Energy, made false and misleading statements with respect to the CPO 4 prospect and promoted those statements through Undiscovered Equities and its principal, Kevin McKnight. The SEC was seeking a determination from an administrative law judge as to whether (i) the allegations of the SEC were true; (ii) Houston American Energy and Mr. Terwilliger should be ordered to (A) cease-and-desist from committing or causing violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, (B) pay a civil penalty pursuant to Section 8A(g) of the Securities Act and Section 21B(a) of the Exchange Act, and (C) pay disgorgement pursuant to Section 8A(e) of the Securities Act and Sections 21B(e) and 21C(e) of the Exchange Act; and (iii) Mr. Terwilliger should be prohibited from acting as an officer and director of a public company pursuant to Section 8A(f) of the Securities Act and Section 21C(f) of the Exchange Act.
	At December 31, 2014, the administrative proceeding was pending and was scheduled for trial in January 2015.  The trial was stayed in January 2015 pending consideration by the Commission of a proposed settlement and remains pending. The settlement proposal remained pending at March 31, 2015.  On April 16, 2015, the Commission formally approved the settlement. Pursuant to the terms of the settlement, among other things, the Company agreed to pay a penalty of $400,000 and the Company’s Chief Executive Officer resigned and agreed to pay a penalty of $150,000. The Company, at December 31, 2014, recorded on its balance sheet a contingent liability, and on its statement of operations a contingent loss of $400,000 relating to the settlement.  The Company has an insurance policy that insures for legal fees incurred in connection with the above administrative proceeding.  At December 31, 2014, the Company had recorded an insurance claim receivable of $1,612,681 for fees which have been incurred, but not yet reimbursed by its insurance company.  As of March 31, 2015, the insurance claim receivable relating to unpaid legal fees totaled $770,574.

TAXES

TAXES	3 Months Ended
	Mar. 31, 2015
TAXES [Abstract]
TAXES	NOTE 6 – TAXES
	The Company has estimated that its effective tax rate for U.S. purposes will be zero for 2015, and consequently, recorded no U.S. income tax liability or tax expense for the three months ended March 31, 2015.
	During the three months ended March 31, 2015, significant temporary differences between financial statement net loss and estimated taxable income related primarily to the stock compensation expense recognized for book purposes during the period.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2015
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	NOTE 7 – SUBSEQUENT EVENTS
	Settlement of SEC Administrative Proceeding
	As noted above, the Company’s ongoing SEC Administrative Proceeding was settled in April 2015.  As a result of that settlement, among other things, the Company agreed to pay a penalty in the amount of $400,000.  The penalty and associated loss were recorded during 2014.
	Silverman Shareholder Class Action Suit.
	In May 2015, the Company’s insurance carriers deposited into escrow funds to settle the Silverman Shareholder Class Action Suit. As a result, the insurance claim receivable and litigation settlement payable pertaining to the settlement recorded on the balance sheet, in the amount of $7,000,000, are each expected to be fully satisfied and removed from the balance sheet.
	Changes in Officers and Directors
	Under the terms of the settlement of our SEC Administrative Proceeding, John Terwilliger, the Company’s Chairman and Chief Executive Officer, resigned from all positions as an officer and director of the Company.
	In connection with the resignation of John Terwilliger: (1) John Boylan, a current director, was appointed Chairman, President and Chief Executive Officer of the Company; (2) an additional independent director was appointed to fill the vacancy created by Mr. Terwilliger’s resignation; and (3) the Company agreed to continue to employ Mr. Terwilliger in a non-executive capacity to assist in the management transition through at least December 31, 2015.
	Mr. Boylan’s compensation, in addition to benefits generally provided to Company employees, consists of: (1) an annual base salary of $120,000; and (2) a ten-year stock option grant, exercisable at $0.2158 per share, fair market value on the date of grant, to purchase 900,000 shares of the Company’s common stock.  The stock option vests 1/3 on each of the first three anniversaries of the date of grant subject to accelerated vesting upon either (i) the receipt by the Company, on or after the grant date and during the term of Mr. Boylan’s employment, of $10 million or more of aggregate gross proceeds from the sale of equity securities or securities convertible into equity securities, or (ii) the acquisition by the Company, on or after the grant date and during the term of Mr. Boylan’s employment, of $10 million or more in aggregate purchase price of oil and gas properties. The option grant was valued on the date of grant at $87,209 using the Black-Scholes option-pricing model.
	In conjunction with the appointment of the new independent director, a stock option to purchase 8,333 shares of common stock was granted.  The option is exercisable for a term of ten years at $0.2158 per share, fair market value on the date of grant, and vests 20% on the date of grant and 80% nine months from the date of grant. The option grant was valued on the date of grant at $807 using the Black-Scholes option-pricing model.

BASIS_OF_PRESENTATION_AND_SIGN1

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2015
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Consolidation	Consolidation
	The accompanying consolidated financial statements include all accounts of the Company and its subsidiaries (HAEC Louisiana E&P, Inc., HAEC Oklahoma E&P, Inc., and HAEC Caddo Lake E&P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation.
Accounting Principles and Use of Estimates	Accounting Principles and Use of Estimates
	The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews its estimates, including those related to such potential matters as litigation, environmental liabilities, income taxes and the related valuation allowance, determination of proved reserves of oil and gas and asset retirement obligations. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates.
Concentration of Credit Risk	Concentration of Credit Risk
	Financial instruments that potentially subject the Company to a concentration of credit risk include cash, cash equivalents and any marketable securities. The Company had cash deposits of $2,753,578 in excess of the FDIC’s current insured limit on interest bearing accounts of $250,000 as of March 31, 2015. The Company has not experienced any losses on its deposits of cash and cash equivalents.
Loss per Common Share	Loss per Share
	Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares that then shared in the earnings of the Company. The Company’s only outstanding potentially dilutive securities are options and warrants. For the three months ended March 31, 2015 and 2014, using the treasury stock method, outstanding ‘in-the-money’ options would have increased our diluted weighted average shares outstanding by 55,600 and 229,014 shares, respectively; however, due to losses during these periods, these options were excluded from the diluted earnings per share calculation because their effect would have been anti-dilutive.
Subsequent Events	Subsequent Events
	The Company has evaluated all transactions from March 31, 2015 through the financial statement issuance date for subsequent event disclosure consideration.
Recent Accounting Pronouncements	Recent Accounting Pronouncements
	No accounting standards or interpretations issued recently are expected to a have a material impact on our consolidated financial position, operations or cash flows.

ESCROW_RECEIVABLE_Tables

ESCROW RECEIVABLE (Tables)	3 Months Ended
	Mar. 31, 2015
ESCROW RECEIVABLE [Abstract]
Escrow receivables relating to oil and gas properties	At March 31, 2015 and December 31, 2014, the Company’s balance sheets reflected the following current escrow receivables relating to various oil and gas properties previously held by the Company:
		31-Mar-15		31-Dec-14
	Tambaqui Escrow	$	4,331	$	4,331
	HDC LLC & HL LLC 15% Escrow		294,383		294,383
	HDC LLC & HL LLC 5% Contingency		11,256		11,256
	HC LLC 5% Contingency		11,458		11,458
	TOTAL	$	321,428	$	321,428

OIL_AND_GAS_PROPERTIES_Tables

OIL AND GAS PROPERTIES (Tables)	3 Months Ended
	Mar. 31, 2015
OIL AND GAS PROPERTIES [Abstract]
Revenues and long lived assets attributable to geographical area	The Company currently has operations in two geographical areas, the United States and Colombia. Revenues for the three months ended March 31, 2015 and long lived assets (net of depletion, amortization, and impairments) as of March 31, 2015 attributable to each geographical area are presented below:
		Three Months Ended March 31, 2015			As of March 31, 2015
		Revenues			Long Lived Assets, Net
	United States		$	101,971		$	2,678,163
	Colombia			—			2,037,757
	Total		$	101,971		$	4,715,920

STOCKBASED_COMPENSATION_EXPENS1

STOCK-BASED COMPENSATION EXPENSE (Tables)	3 Months Ended
	Mar. 31, 2015
STOCK-BASED COMPENSATION EXPENSE [Abstract]
Summary of stock option activity and related information	A summary of stock option activity and related information for the three months ended March 31, 2015 is presented below:
			Options				Weighted-Average Exercise Price			Aggregate Intrinsic Value
	Outstanding at January 1, 2015			3,392,832			$	3.21
	Granted			-				-
	Exercised			-				-
	Forfeited			-				-
	Outstanding at March 31, 2015			3,392,832			$	3.21		$	-
	Exercisable at March 31, 2015			2,292,832			$	4.56		$	-
Share-based compensation expense	The following table reflects share-based compensation recorded by the Company for the three months ended March 31, 2015 and 2014:
		Three Months Ended
		March 31,
		2015				2014
	Share-based compensation expense included in general and administrative expense		$	19,795			$	230,010
	Earnings per share effect of share-based compensation expense – basic and diluted		$	(0.00	)		$	(0.00	)

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
Future payments under lease agreement	The Company leases office facilities under an operating lease agreement that expires May 31, 2017.  As of March 31, 2015, the lease agreement requires future payments as follows:
	Year	Amount
	2015		70,345
	2016		96,162
	2017		40,479
	Total	$	206,986

BASIS_OF_PRESENTATION_AND_SIGN2

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Concentration of Credit Risk [Abstract]
Cash deposits in excess of the FDIC's current insured limit	2,753,578
Current insured limit on interest bearing accounts	250,000
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average shares excluded from diluted earning per share calculation (in shares)	55,600	229,014

ESCROW_RECEIVABLE_Details

ESCROW RECEIVABLE (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Escrow receivables relating to oil and gas properties [Abstract]
Escrow receivable - Current	$321,428	$321,428
Tambaqui Escrow [Member]
Escrow receivables relating to oil and gas properties [Abstract]
Escrow receivable - Current	4,331	4,331
HDC LLC and HL LLC 15% Escrow [Member]
Escrow receivables relating to oil and gas properties [Abstract]
Escrow receivable - Current	294,383	294,383
Escrow receivables, percentage (in hundredths)	15.00%	15.00%
HDC LLC & HL LLC 5% Contingency [Member]
Escrow receivables relating to oil and gas properties [Abstract]
Escrow receivable - Current	11,256	11,256
Escrow receivables, percentage (in hundredths)	5.00%	5.00%
HC LLC 5% Contingency [Member]
Escrow receivables relating to oil and gas properties [Abstract]
Escrow receivable - Current	$11,458	$11,458
Escrow receivables, percentage (in hundredths)	5.00%	5.00%

OIL_AND_GAS_PROPERTIES_Details

OIL AND GAS PROPERTIES (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
	Area
OIL AND GAS PROPERTIES [Abstract]
Cost incurred in development of oil and gas properties	$24,847
Preparation and evaluation costs	3,749
Leasehold costs on U.S. properties	21,098
Development costs subject to amortization	21,098
Development costs not subject to amortization	3,749
Capitalized cost attributable to preparation and evaluation cost	3,749
Capitalized cost attributable to drilling cost	21,098
Revenues and long lived assets by geographical area [Abstract]
Number of geographical areas	2
Revenues [Abstract]
Revenues	101,971	106,023
Long Lived Assets, Net [Abstract]
Long Lived Assets, Net	4,715,920		5,500,027
United States [Member]
Revenues [Abstract]
Revenues	101,971
Long Lived Assets, Net [Abstract]
Long Lived Assets, Net	2,678,163
Colombia [Member]
Revenues [Abstract]
Revenues	0
Long Lived Assets, Net [Abstract]
Long Lived Assets, Net	$2,037,757

STOCKBASED_COMPENSATION_EXPENS2

STOCK-BASED COMPENSATION EXPENSE (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Options [Roll Forward]
Outstanding at beginning of the period (in shares)	3,392,832
Granted (in shares)	0
Exercised (in shares)	0
Forfeited (in shares)	0
Outstanding at end of the period (in shares)	3,392,832
Exercisable at end of the period (in shares)	2,292,832
Weighted-Average Exercise Price [Roll Forward]
Outstanding at beginning of the period (in dollars per share)	$3.21
Granted (in dollars per share)	$0
Exercised (in dollars per share)	$0
Forfeited (in dollars per share)	$0
Outstanding at end of the period (in dollars per share)	$3.21
Exercisable at end of the period (in dollars per share)	$4.56
Aggregate Intrinsic Value [Abstract]
Outstanding at end of the period	$0
Exercisable at end of the period	0
Stock compensation amortized expense	19,795	230,010
Options [Member]
Aggregate Intrinsic Value [Abstract]
Stock compensation amortized expense	19,795
Unrecognized stock-based compensation expense related to non-vested stock options	94,484
Weighted average period for recognition of compensation expense	2 years 2 months 8 days
Weighted average remaining contractual term of the outstanding options	6 years 6 months 14 days
Weighted average remaining contractual term of the exercisable options	5 years 4 months 24 days
Shares available for issuance (in shares)	2,607,168
Restricted Stock [Member]
Aggregate Intrinsic Value [Abstract]
Stock compensation amortized expense	0	20,155
Fair market value of the shares on date of grant	743,400
Unrecognized compensation cost related to unvested restricted stock	$0
Restricted Stock [Member] | Officer [Member]
Aggregate Intrinsic Value [Abstract]
Restricted stock granted to officers (in shares)	45,000
Vesting period of restricted stock award granted to officers	3 years

STOCKBASED_COMPENSATION_Alloca

STOCK-BASED COMPENSATION, Allocation of Recognized Period Costs (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Share-based compensation expense [Abstract]
Share-based compensation expense included in general and administrative expense	$19,795	$230,010
General and administrative expense [Member]
Share-based compensation expense [Abstract]
Share-based compensation expense included in general and administrative expense	$19,795	$230,010
Earnings per share effect of share-based compensation expense - basic and diluted (in dollars per share)	$0	$0

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	3 Months Ended		1 Months Ended	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Apr. 30, 2015	Dec. 31, 2014	31-May-15	15-May-15
	Suit
Lease Commitment [Abstract]
Lease expiration date	31-May-17
Future payments under lease agreement [Abstract]
2015	$70,345
2016	96,162
2017	40,479
Total	206,986
Total rental expense	21,376	23,730
Loss Contingencies [Line Items]
Additional class action lawsuits	2
Litigation settlement payable recorded as contingent liability	7,000,000			7,000,000
Subsequent Event [Member]
Loss Contingencies [Line Items]
Increase in insurance receivable					7,000,000
Litigation settlement payable			-400,000
Litigation settlement payable recorded as contingent liability					7,000,000
Silverman Shareholder Class Action Suit [Member]
Loss Contingencies [Line Items]
Increase in insurance receivable	7,000,000
Silverman Shareholder Class Action Suit [Member] | Subsequent Event [Member]
Loss Contingencies [Line Items]
Litigation settlement payable recorded as contingent liability						7,000,000
SEC Administrative Proceeding [Member]
Loss Contingencies [Line Items]
Increase in insurance receivable	770,574			1,612,681
Contingent liability				400,000
SEC Administrative Proceeding [Member] | Subsequent Event [Member]
Loss Contingencies [Line Items]
Litigation settlement payable			-400,000
Amount of Penalty Paid by Chief Executive Officer			$150,000

TAXES_Details

TAXES (Details)	3 Months Ended
	Mar. 31, 2015
TAXES [Abstract]
Effective tax rate for US purposes (in hundredths)	0.00%

SUBSEQUENT_EVENTS_Details

SUBSEQUENT EVENTS (Details) (USD $)	3 Months Ended	1 Months Ended
	Mar. 31, 2015	Apr. 30, 2015	31-May-15	Dec. 31, 2014
Subsequent Event [Line Items]
Litigation settlement payable	$7,000,000			$7,000,000
Stock options to purchase shares of common stock (in shares)	0
Stock options granted, exercisable price (in dollar per share)	$4.56
Subsequent Event [Member]
Subsequent Event [Line Items]
Administrative penalty payments		-400,000
Insurance claim receivable			7,000,000
Litigation settlement payable			7,000,000
Subsequent Event [Member] | John Boylan [Member]
Subsequent Event [Line Items]
Annual base salary of chairman, president and chief executive officer			120,000
Stock options to purchase shares of common stock (in shares)			900,000
Stock options granted, exercisable price (in dollar per share)			$0.22
Stock options term	10 years
Percentage of vesting awards on first anniversary (in hundredths)			0.33%
Percentage of vesting awards on second anniversary (in hundredths)			0.33%
Percentage of vesting awards on third anniversary (in hundredths)			0.33%
Minimum aggregate gross proceeds from the sale of equity securities under vesting condition			10,000,000
Minimum aggregate purchase price of oil and gas properties under vesting condition			10,000,000
Stock options grant date value			87,209
Subsequent Event [Member] | Director [Member]
Subsequent Event [Line Items]
Stock options to purchase shares of common stock (in shares)			8,333
Stock options granted, exercisable price (in dollar per share)			$0.22
Stock options term	10 years
Percentage of vesting awards on date of grant (in hundredths)			20.00%
Percentage of vesting awards on nine months from date of grant (in hundredths)			80.00%
Stock options grant date value			$807