Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 09, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | HOUSTON AMERICAN ENERGY CORP | |
Entity Central Index Key | 1,156,041 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 51,277,388 | |
Trading Symbol | HUSA | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS | ||
Cash | $ 872,130 | $ 2,123,520 |
Escrow receivable | 262,016 | 262,016 |
Prepaid expenses and other current assets | 15,000 | 38,257 |
TOTAL CURRENT ASSETS | 1,149,146 | 2,423,793 |
Oil and gas properties, full cost method | ||
Costs subject to amortization | 54,864,850 | 54,840,599 |
Costs not being amortized | 2,947,029 | 2,879,063 |
Office equipment | 90,004 | 90,004 |
Total | 57,901,883 | 57,809,666 |
Accumulated depletion, depreciation, amortization, and impairment | (54,751,056) | (54,676,723) |
PROPERTY AND EQUIPMENT, NET | 3,150,827 | 3,132,943 |
Other assets | 3,167 | 3,167 |
TOTAL ASSETS | 4,303,140 | 5,559,903 |
CURRENT LIABILITIES | ||
Accounts payable | 7,115 | 23,195 |
Accrued expenses | 12,385 | 16,315 |
TOTAL CURRENT LIABILITIES | 19,500 | 39,510 |
LONG-TERM LIABILITIES | ||
Reserve for plugging and abandonment costs | 25,676 | 25,262 |
TOTAL LIABILITIES | 45,176 | 64,772 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value $0.001; 10,000,000 shares authorized, 0 shares issued and outstanding | ||
Common stock, par value $0.001; 150,000,000 shares authorized 52,169,945 shares issued | 52,170 | 52,170 |
Additional paid-in capital | 66,118,687 | 66,019,681 |
Treasury shares, at cost; 892,557 and 190,000 shares, respectively | (174,125) | (38,152) |
Accumulated deficit | (61,738,768) | (60,538,568) |
TOTAL SHAREHOLDERS' EQUITY | 4,257,964 | 5,495,131 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 4,303,140 | $ 5,559,903 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 52,169,945 | 52,169,945 |
Treasury stock, at cost | 892,557 | 190,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
OIL AND GAS REVENUE | $ 39,738 | $ 124,448 | $ 121,885 | $ 340,541 |
EXPENSES OF OPERATIONS | ||||
Lease operating expense and severance tax | 23,054 | 52,652 | 60,416 | 112,300 |
General and administrative expense | 362,807 | 390,411 | 1,194,223 | 1,122,987 |
Impairment of oil and gas properties | 677,051 | |||
Depreciation and depletion | 25,069 | 149,717 | 74,333 | 427,792 |
Total operating expenses | 410,930 | 592,780 | 1,328,972 | 2,340,130 |
Loss from operations | (371,192) | (468,332) | (1,207,087) | (1,999,589) |
OTHER INCOME | ||||
Interest income, net | 849 | 5,129 | 6,887 | 15,574 |
Total other income | 849 | 5,129 | 6,887 | 15,574 |
Net loss before taxes | (370,343) | (463,203) | (1,200,200) | (1,984,015) |
Income tax expense | 363 | 18,423 | ||
Net loss | $ (370,343) | $ (463,566) | $ (1,200,200) | $ (2,002,438) |
Basic and diluted loss per common share | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.04) |
Based and diluted weighted average common shares outstanding | 51,467,438 | 52,169,945 | 51,537,510 | 52,169,945 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (1,200,200) | $ (2,002,438) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation and depletion | 74,333 | 427,792 |
Accretion of asset retirement obligation | 414 | 1,191 |
Impairment of oil and gas properties | 677,051 | |
Stock-based compensation | 99,006 | 68,434 |
Changes in operating assets and liabilities: | ||
Decrease in insurance receivable | 8,566,889 | |
Decrease (increase) in prepaid expenses and other current assets | 23,257 | 1,704 |
Decrease in accounts payable, contingent liabilities and accrued expenses | (20,010) | (558,438) |
Decrease in settlement payable | (7,000,000) | |
Decrease in accrued legal costs | (1,676,889) | |
Net cash used in operating activities | (1,023,200) | (1,494,704) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Cash paid for oil and gas development costs | (92,217) | (141,146) |
Proceeds from sale of mineral interest | 56,705 | |
Proceeds from escrow receivables | 59,412 | |
Net cash used in investing activities | (92,217) | (25,029) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments for the acquisition of treasury shares | (135,973) | |
Net cash used in financing activities | (135,973) | |
Decrease in cash | (1,251,390) | (1,519,733) |
Cash, beginning of period | 2,123,520 | 4,052,212 |
Cash, end of period | 872,130 | 2,532,479 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Interest paid | ||
Income taxes paid | $ 18,423 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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 Companys audited consolidated financial statements and footnotes, which are included as part of the Companys Form 10-K for the year ended December 31, 2015. Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the date of these consolidated financial statements. The Company has incurred continuing losses, negative operating cash flow and declining cash balances since 2011, including negative operating cash flow of $1,023,200 for the nine months ended September 30, 2016. These conditions, together with continued low oil and natural gas prices and financial commitments the Company has made relative to its Colombian properties, raise substantial doubt as to the Companys ability to continue as a going concern. These financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. To address these concerns, the Company may seek additional financing or may consider divestiture of certain assets. There can be no assurance that the Company will be successful in its efforts. 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 $494,077 in excess of the FDICs current insured limit on interest bearing accounts of $250,000 as of September 30, 2016. 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 Companys only outstanding potentially dilutive securities are options and warrants. Using the treasury stock method, outstanding in-the-money options would have increased our diluted weighted average shares outstanding by approximately 55,600 shares for the three and nine months ended September 30, 2016 and by approximately 55,600 shares for the three and nine months ended September 30, 2015; 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 September 30, 2016 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 | 9 Months Ended |
Sep. 30, 2016 | |
ESCROW RECEIVABLE [Abstract] | |
Escrow Receivable | NOTE 2 ESCROW RECEIVABLE At September 30, 2016 and December 31, 2015, the Companys consolidated balance sheets reflected the following current escrow receivables relating to various oil and gas properties previously held by the Company: September 30, 2016 December 31, 2015 HDC LLC & HL LLC 15% Escrow $ 251,125 251,125 HDC LLC & HL LLC 5% Contingency 10,891 10,891 TOTAL $ 262,016 $ 262,016 |
Oil and Gas Properties
Oil and Gas Properties | 9 Months Ended |
Sep. 30, 2016 | |
Oil and Gas Property [Abstract] | |
Oil and Gas Properties | NOTE 3 OIL AND GAS PROPERTIES During the nine months ended September 30, 2016, the Company invested $92,217 for the development of oil and gas properties, consisting of (1) preparation and evaluation costs in Colombia of $67,966, and (2) costs on U.S. properties of $24,251. Of the amount invested, the Company capitalized $24,251 to oil and gas properties subject to amortization, and $67,966 to oil and gas properties not subject to amortization. During the nine months ended September 30, 2015, the Company disposed of a portion of its interest in three non-producing domestic prospects for proceeds of $56,705. Proceeds received from disposal of such interests were accounted for as a reduction in capitalized cost of oil and gas properties. Geographical Information The Company currently has operations in two geographical areas, the United States and Colombia. Revenues for the nine months ended September 30, 2016 and long lived assets (net of depletion, amortization, and impairments) as of September 30, 2016 attributable to each geographical area are presented below: Nine Months Ended September 30, 2016 As of September 30, 2016 Revenues Long Lived Assets, Net United States $ 121,885 $ 969,486 Colombia 2,181,341 Total $ 121,885 $ 3,150,827 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense | NOTE 4 STOCK-BASED COMPENSATION EXPENSE The Company periodically grants options to employees, directors and consultants under the Companys 2005 Stock Option Plan and the Companys 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 In March 2016, options to purchase an aggregate of 20,000 shares were granted to non-employee directors. The options were granted in connection with service on an ad hoc board committee and vest on the earlier of August 15, 2016, the termination of the committee or termination of service on the committee due to death or disability. The options have a five-year life and an exercise price of $0.1982 per share. The options were valued on the date of grant at $2,896 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 1.49%; (2) expected life in years of 4.99; (3) expected stock volatility of 106.95%; (4) expected dividend yield of 0%; and (5) forfeiture rate of 15.22%. The Company determined the options qualify as plain vanilla under the provisions of SAB 107 and the simplified method was used to estimate the expected option life. In June 2016, options to purchase an aggregate of 800,000 shares were granted to non-employee directors. The options, which included a one-time supplemental grant to purchase an aggregate of 600,000 shares, were granted in connection with service on the board of directors. 200,000 of the options granted to non-employee directors vested 20% on the grant date and vest as to the remaining 80% nine months from the grant date, have a ten-year life and have an exercise price of $0.2201 per share. Those option grants were valued on the date of grant at $32,640 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 1.26%; (2) expected life in years of 5.28; (3) expected stock volatility of 108.5%; (4) expected dividend yield of 0%; and (5) forfeiture rate of 15.01%. 600,000 of the options granted to non-employee directors vest (i) 50% on the earlier of June 7, 2017 or the day preceding the next annual shareholders meeting at which directors are elected, (ii) 50% on the earlier of June 7, 2018 or the day preceding the second annual shareholders meeting (after the grant date) at which directors are to be elected, and (iii) in the event that the Company consummates a transaction(s) (after the option grant date) in the nature of a sale of shares of equity securities for cash or assets resulting in a net addition(s) to the Companys stockholders equity of not less than $2 million, all unvested options vest in full. Those options have a ten-year life and have an exercise price of $0.2201 per share. Those option grants were valued on the date of grant at $83,421 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 1.26% (2) expected life in years of 5.28, and (3) expected stock volatility of 108.5%. The Company determined the option qualifies as plain vanilla under the provisions of SAB 107 and the simplified method was used to estimate the expected option life. A summary of stock option activity and related information for the nine months ended September 30, 2016 is presented below: Options Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2016 4,432,165 $ 2.47 Granted 820,000 0.22 Expired/Forfeited (20,000 ) 4.10 Exercised Outstanding at September 30, 2016 5,232,165 $ 1.86 $ Exercisable at September 30, 2016 3,452,165 $ 3.06 $ Shares available for issuance under the Plans as of September 30, 2016 totaled 767,835 shares. Share-Based Compensation Expense During the three and nine months ended September 30, 2016, the Company recognized $37,805 and $99,006, respectively, of stock compensation expense attributable to the amortization of unrecognized stock-based compensation. As of September 30, 2016, total unrecognized stock-based compensation expense related to non-vested stock options was $157,804. The unrecognized expense is expected to be recognized over a weighted average period of 1.36 years and the weighted average remaining contractual term of the outstanding options and exercisable options at September 30, 2016 is 6.6 years and 5.46 years, respectively. The following table reflects share-based compensation recorded by the Company for the three months ended September 30, 2016 and 2015: Three Months Ended September 30, 2016 2015 Share-based compensation expense included in general and administrative expense $ 37,805 $ 28,676 Earnings per share effect of share-based compensation expense basic and diluted $ (0.00 ) $ (0.00 ) The following table reflects share-based compensation recorded by the Company for the nine months ended September 30, 2016 and 2015: Nine Months Ended September 30, 2016 2015 Share-based compensation expense included in general and administrative expense $ 99,006 $ 68,434 Earnings per share effect of share-based compensation expense basic and diluted $ (0.00 ) $ (0.00 ) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 5 - COMMITMENTS AND CONTINGENCIES Lease Commitment The Company leases office facilities under an operating lease agreement that expires on May 31, 2017. As of September 30, 2016, the lease agreement requires future payments as follows: Year Amount 2016 24,041 2017 40,479 Total $ 64,520 For the three and nine months ended September 30, 2016, the total base rental expense was $26,935 and $81,076, respectively. The Company does not have any capital leases or other operating lease commitments. |
Taxes
Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Taxes | NOTE 6 TAXES The Company has estimated that its effective tax rate for U.S. purposes will be zero for 2016, and consequently, recorded no U.S. income tax liability or tax expense for the three and nine months ended September 30, 2016. During the three and nine months ended September 30, 2016, 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. |
Basis of Presentation and Sig12
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the date of these consolidated financial statements. The Company has incurred continuing losses, negative operating cash flow and declining cash balances since 2011, including negative operating cash flow of $1,023,200 for the nine months ended September 30, 2016. These conditions, together with continued low oil and natural gas prices and financial commitments the Company has made relative to its Colombian properties, raise substantial doubt as to the Companys ability to continue as a going concern. These financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. To address these concerns, the Company may seek additional financing or may consider divestiture of certain assets. There can be no assurance that the Company will be successful in its efforts. |
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 $494,077 in excess of the FDICs current insured limit on interest bearing accounts of $250,000 as of September 30, 2016. The Company has not experienced any losses on its deposits of cash and cash equivalents. |
Loss per 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 Companys only outstanding potentially dilutive securities are options and warrants. Using the treasury stock method, outstanding in-the-money options would have increased our diluted weighted average shares outstanding by approximately 55,600 shares for the three and nine months ended September 30, 2016 and by approximately 55,600 shares for the three and nine months ended September 30, 2015; 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 September 30, 2016 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) | 9 Months Ended |
Sep. 30, 2016 | |
ESCROW RECEIVABLE [Abstract] | |
Schedule of Escrow Receivables Relating to Oil and Gas Properties | At September 30, 2016 and December 31, 2015, the Companys consolidated balance sheets reflected the following current escrow receivables relating to various oil and gas properties previously held by the Company: September 30, 2016 December 31, 2015 HDC LLC & HL LLC 15% Escrow $ 251,125 251,125 HDC LLC & HL LLC 5% Contingency 10,891 10,891 TOTAL $ 262,016 $ 262,016 |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Oil and Gas Property [Abstract] | |
Schedule of 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 nine months ended September 30, 2016 and long lived assets (net of depletion, amortization, and impairments) as of September 30, 2016 attributable to each geographical area are presented below: Nine Months Ended September 30, 2016 As of September 30, 2016 Revenues Long Lived Assets, Net United States $ 121,885 $ 969,486 Colombia 2,181,341 Total $ 121,885 $ 3,150,827 |
Stock-Based Compensation Expe15
Stock-Based Compensation Expense (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity and related information for the nine months ended September 30, 2016 is presented below: Options Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2016 4,432,165 $ 2.47 Granted 820,000 0.22 Expired/Forfeited (20,000 ) 4.10 Exercised Outstanding at September 30, 2016 5,232,165 $ 1.86 $ Exercisable at September 30, 2016 3,452,165 $ 3.06 $ |
Schedule of Share-based Compensation Expense | The following table reflects share-based compensation recorded by the Company for the three months ended September 30, 2016 and 2015: Three Months Ended September 30, 2016 2015 Share-based compensation expense included in general and administrative expense $ 37,805 $ 28,676 Earnings per share effect of share-based compensation expense basic and diluted $ (0.00 ) $ (0.00 ) The following table reflects share-based compensation recorded by the Company for the nine months ended September 30, 2016 and 2015: Nine Months Ended September 30, 2016 2015 Share-based compensation expense included in general and administrative expense $ 99,006 $ 68,434 Earnings per share effect of share-based compensation expense basic and diluted $ (0.00 ) $ (0.00 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Payments under Lease Agreement | As of September 30, 2016, the lease agreement requires future payments as follows: Year Amount 2016 24,041 2017 40,479 Total $ 64,520 |
Basis of Presentation and Sig17
Basis of Presentation and Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net cash used in operations | $ 1,023,200 | $ 1,494,704 | ||
Cash deposits in excess of the FDIC's current insured limit | $ 494,077 | 494,077 | ||
Current insured limit on interest bearing accounts | $ 250,000 | $ 250,000 | ||
Options [Member] | ||||
Antidilutive securities excluded from computation of earnings per share | 55,600 | 55,600 | 55,600 | 55,600 |
Escrow Receivable - Schedule of
Escrow Receivable - Schedule of Escrow Receivables Relating to Oil and Gas Properties (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Escrow receivable - Total | $ 262,016 | $ 262,016 |
HDC LLC and HL LLC 15% Escrow [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Escrow receivable - Total | $ 251,125 | $ 251,125 |
Escrow receivables, percentage | 15.00% | 15.00% |
HDC LLC & HL LLC 5% Contingency [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Escrow receivable - Total | $ 10,891 | $ 10,891 |
Escrow receivables, percentage | 5.00% | 5.00% |
Oil and Gas Properties (Details
Oil and Gas Properties (Details Narrative) | 9 Months Ended | |
Sep. 30, 2016USD ($)Segment | Sep. 30, 2015USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Investment in development of oil and gas properties | $ 92,217 | $ 141,146 |
Proceeds from disposal of a portion of its interest in three non-producing domestic prospects | $ 56,705 | |
Number of geographical areas in which entity operates | Segment | 2 | |
Colombia [Member] | Reportable Geographical Components [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Preparation and evaluation costs | $ 67,966 | |
Development costs not subject to amortization | 67,966 | |
United States [Member] | Reportable Geographical Components [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Preparation and evaluation costs | 24,251 | |
Development costs subject to amortization | $ 24,251 |
Oil and Gas Properties - Schedu
Oil and Gas Properties - Schedule of Revenues and Long Lived Assets Attributable to Geographical Area (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | $ 39,738 | $ 124,448 | $ 121,885 | $ 340,541 |
Long Lived Assets, Net | 3,150,827 | 3,150,827 | ||
United States [Member] | ||||
Revenues | 121,885 | |||
Long Lived Assets, Net | 969,486 | 969,486 | ||
Colombia [Member] | ||||
Revenues | ||||
Long Lived Assets, Net | $ 2,181,341 | $ 2,181,341 |
Stock-Based Compensation Expe21
Stock-Based Compensation Expense (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Number of stock option shares granted | 820,000 | |||||
Options granted exercise price of per share | $ 0.22 | |||||
Shares available for issuance | 767,835 | 767,835 | 767,835 | |||
Stock compensation amortized expense | $ 37,805 | $ 99,006 | $ 68,434 | |||
Unrecognized share-based compensation expense related to non-vested stock options | $ 157,804 | $ 157,804 | $ 157,804 | |||
Weighted average period for recognition of compensation expense | 1 year 4 months 10 days | |||||
Weighted average remaining contractual term of the outstanding options | 6 years 7 months 6 days | |||||
Weighted average remaining contractual term of the exercisable options | 5 years 5 months 16 days | |||||
Non Employee Directors [Member] | ||||||
Number of stock option shares granted | 800,000 | 20,000 | ||||
Stock options vested date | Aug. 15, 2016 | |||||
Option vesting period | 10 years | 5 years | 10 years | |||
Options granted exercise price of per share | $ 0.2201 | $ 0.1982 | $ 0.2201 | |||
Total value of options granted | $ 32,640 | $ 2,896 | $ 83,421 | |||
Risk free interest rate | 1.26% | 1.49% | 1.26% | |||
Stock option expected life | 5 years 3 months 11 days | 4 years 11 months 27 days | 5 years 3 months 11 days | |||
Expected stock volatility | 108.50% | 106.95% | 108.50% | |||
Expected dividend yield | 0.00% | 0.00% | ||||
Forfeiture rate | 15.01% | 15.22% | ||||
Non Employee Directors [Member] | Maximum [Member] | ||||||
Sale of shares of equity securities for cash | $ 2,000,000 | |||||
Non Employee Directors [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||
Number of stock option shares granted | 600,000 | |||||
Stock option vesting percentage | 80.00% | |||||
Non Employee Directors [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||
Number of stock option shares granted | 200,000 | |||||
Stock option vesting percentage | 20.00% | |||||
Non Employee Directors [Member] | June 7, 2017 [Member] | ||||||
Stock option vesting percentage | 50.00% | |||||
Non Employee Directors [Member] | June 7, 2018 [Member] | ||||||
Stock option vesting percentage | 50.00% |
Stock-Based Compensation Expe22
Stock-Based Compensation Expense - Summary of Stock Option Activity (Details) | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options Outstanding at beginning of the period | shares | 4,432,165 |
Options Granted | shares | 820,000 |
Options Exprired/Forfeited | shares | (20,000) |
Options Exercised | shares | |
Options Outstanding at end of the period | shares | 5,232,165 |
Options Exercisable at end of the period | shares | 3,452,165 |
Weighted-Average Exercise Price Outstanding at beginning of the period | $ / shares | $ 2.47 |
Weighted-Average Exercise Price Granted | $ / shares | 0.22 |
Weighted-Average Exercise Price Expired/Forfeited | $ / shares | 4.10 |
Weighted-Average Exercise Price Exercised | $ / shares | |
Weighted-Average Exercise Price Outstanding at end of the period | $ / shares | 1.86 |
Weighted-Average Exercise Price Exercisable at end of the period | $ / shares | $ 3.06 |
Aggregate Intrinsic Value Outstanding at end of the period | $ | |
Aggregate Intrinsic Value Exercisable at end of the period | $ |
Stock-Based Compensation Expe23
Stock-Based Compensation Expense - Schedule of Share-based Compensation Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense included in general and administrative expense | $ 37,805 | $ 99,006 | $ 68,434 | |
General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense included in general and administrative expense | $ 37,805 | $ 28,676 | $ 99,006 | $ 68,434 |
Earnings per share effect of share-based compensation expense - basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies24
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease agreement expiration date | May 31, 2017 | |
Total rental expense | $ 26,935 | $ 81,076 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Payments under Lease Agreement (Details) | Sep. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 24,041 |
2,017 | 40,479 |
Total | $ 64,520 |
Taxes (Details Narrative)
Taxes (Details Narrative) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate for US purposes | 0.00% | 0.00% |