Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 12, 2017 | |
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 | Mar. 31, 2017 | |
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 | Q1 | |
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash | $ 321,249 | $ 481,172 |
Prepaid expenses and other current assets | 37,500 | 3,750 |
TOTAL CURRENT ASSETS | 358,749 | 484,922 |
Oil and gas properties, full cost method | ||
Costs subject to amortization | 55,638,225 | 55,639,333 |
Costs not being amortized | 3,290,274 | 2,291,181 |
Office equipment | 90,004 | 90,004 |
Total | 59,018,503 | 58,020,518 |
Accumulated depletion, depreciation, amortization, and impairment | (55,581,287) | (55,563,591) |
PROPERTY AND EQUIPMENT, NET | 3,437,216 | 2,456,927 |
Other assets | 3,167 | 3,167 |
TOTAL ASSETS | 3,799,132 | 2,945,016 |
CURRENT LIABILITIES | ||
Accounts payable | 103,325 | 50,122 |
Accrued expenses | 43,805 | 11,005 |
TOTAL CURRENT LIABILITIES | 147,130 | 61,127 |
LONG-TERM LIABILITIES | ||
Reserve for plugging and abandonment costs | 28,002 | 27,444 |
TOTAL LIABILITIES | 175,132 | 88,571 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value $0.001; 10,000,000 shares authorized 1,200 and 0 shares issued and outstanding | 1 | |
Common stock, par value $0.001; 150,000,000 shares authorized 51,277,388 and 52,169,945 shares issued and outstanding | 51,277 | 52,170 |
Additional paid-in capital | 67,255,314 | 66,158,593 |
Treasury shares, at cost; 0 and 892,557 shares, respectively | (174,125) | |
Accumulated deficit | (63,682,592) | (63,180,193) |
TOTAL SHAREHOLDERS' EQUITY | 3,624,000 | 2,856,445 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 3,799,132 | $ 2,945,016 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
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 | 1,200 | 0 |
Preferred stock, shares outstanding | 1,200 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 51,277,388 | 52,169,945 |
Common stock, shares outstanding | 51,277,388 | 52,169,945 |
Treasury stock, at cost | 0 | 892,557 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
OIL AND GAS REVENUE | $ 57,633 | $ 48,260 |
EXPENSES OF OPERATIONS | ||
Lease operating expense and severance tax | 23,154 | 10,388 |
General and administrative expense | 519,297 | 356,270 |
Depreciation and depletion | 17,696 | 25,013 |
Total operating expenses | 560,147 | 391,671 |
Loss from operations | (502,514) | (343,411) |
OTHER INCOME | ||
Interest income | 115 | 3,960 |
Total other income | 115 | 3,960 |
Net loss before taxes | (502,399) | (339,451) |
Income tax expense | ||
Net loss | $ (502,399) | $ (339,451) |
Basic and diluted loss per common share | $ (0.01) | $ (0.01) |
Based and diluted weighted average number of common shares outstanding | 51,277,388 | 51,646,527 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net loss | $ (502,399) | $ (339,451) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation and depletion | 17,696 | 25,013 |
Stock-based compensation | 69,954 | 22,868 |
Accretion of asset retirement obligation | 558 | 138 |
Change in operating assets and liabilities: | ||
Increase/(decrease) in prepaid expenses and other current assets | (33,750) | 725 |
Increase/(decrease) in accounts payable and accrued expenses | 86,003 | (4,338) |
Net cash used in operating activities | (361,938) | (295,045) |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Payments for the acquisition and development of oil and gas properties | (997,985) | (40,603) |
Net cash used in investing activities | (997,985) | (40,603) |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Issuance of Series A Preferred Stock | 1,200,000 | |
Payment for acquisition of treasury shares | (90,079) | |
Net cash provided by (used in) financing activities | 1,200,000 | (90,079) |
Decrease in cash | (159,923) | (425,727) |
Cash, beginning of period | 481,172 | 2,123,520 |
Cash, end of period | 321,249 | 1,697,793 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid | ||
Taxes paid | 226 | |
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Retirement of treasury shares | $ 174,125 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
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 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, 2016. 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 flows of $361,938 for the three months ended March 31, 2017. These conditions, together with continued low oil and natural gas prices and financial commitments the Company has made relative to its Reeves County, Texas and Colombian properties, raise substantial doubt as to the Company’s 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 raised $1,200,000 of capital from the sale of Series A Preferred Stock during the quarter ended March 31, 2017 and, subsequent to March 31, 2017, raised $909,600 from the sale of Series B Preferred Stock and Warrants and 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 $45,765 in excess of the FDIC’s current insured limit on interest bearing accounts of $250,000 as of March 31, 2017. 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 stock options. For the three months ended March 31, 2017 and 2016, using the treasury stock method, there were no outstanding ‘in-the-money’ options that would have increased our diluted weighted average shares outstanding and, due to losses during these periods, all outstanding 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, 2017 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. |
Oil and Gas Properties
Oil and Gas Properties | 3 Months Ended |
Mar. 31, 2017 | |
Oil and Gas Property [Abstract] | |
Oil and Gas Properties | NOTE 2 – OIL AND GAS PROPERTIES During the three months ended March 31, 2017, the Company invested $997,985, net, for the acquisition and development of oil and gas properties, consisting of (1) cost of acquisition of U.S. properties $986,937, net, principally attributable to acreage acquired in Reeves County, Texas, and (2) preparation and evaluation costs in Colombia of $11,048. Of the amount invested, the Company capitalized $999,093 to oil and gas properties not subject to amortization and reduced oil and gas properties subject to amortization by $1,108. Geographical Information The Company currently has operations in two geographical areas, the United States and Colombia. Revenues for the three months ended March 31, 2017 and long lived assets (net of depletion, amortization, and impairments) as of March 31, 2017 attributable to each geographical area are presented below: Three Months Ended March 31, 2017 As of March 31, 2017 Revenues Long Lived Assets, Net United States $ 57,633 $ 1,141,981 Colombia — 2,295,235 Total $ 57,633 $ 3,437,216 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense | NOTE 3 – STOCK-BASED COMPENSATION EXPENSE In 2008, the Company’s Board of Directors adopted the Houston American Energy Corp. 2008 Equity Incentive Plan (the “2008 Plan”). The terms of the 2008 Plan, as amended in 2012 and 2013, allow for the issuance of up to 6,000,000 shares of the Company’s common stock pursuant to the grant of stock options and restricted stock. Persons eligible to participate in the Plans are key employees, consultants and directors of the Company. In March 2017, the Company’s Board of Directors adopted, subject to shareholder approval, the Houston American Energy Corp. 2017 Equity Incentive Plan (the “2017 Plan” and, together with the 2008 Plan, the “Plans”). The terms of the 2017 Plan, allow for the issuance of up to 5,000,000 shares of the Company’s common stock pursuant to the grant of stock options and restricted stock. Persons eligible to participate in the Plans are key employees, consultants and directors of the Company. The Company periodically grants options to employees, directors and consultants under the Plans and 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 2017, options to purchase an aggregate of 1,200,000 shares were granted to an executive officer, a non-executive officer and an advisor to the Company. All of the options have a ten-year life and are exercisable at $0.30 per share, the fair market value on date of grant. The executive officer’s option grant vests 1/3 on each of the first three anniversaries of the grant date; subject to vesting in full on December 31, 2017 if the Company’s common stock continues to be listed on the NYSE MKT (or another national securities exchange) on that date. The non-executive officer’s option grant vests 25% on June 12, 2017 and 25% on each of the first three anniversaries of the grant date. The advisor option grant vested on the grant date. The options were valued on the date of grant at $234,947 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 2.19%; (2) expected life in years of 5.50; (3) expected stock volatility of 109.16%; and (4) expected dividend yield of 0%. 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. See Note 7 – Subsequent Events A summary of stock option activity and related information for the three months ended March 31, 2017 is presented below: Options Weighted- Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2017 5,232,165 $ 2.11 Granted 1,200,000 0.30 Exercised - - Forfeited - - Outstanding at March 31, 2017 6,432,165 $ 1.77 $ 104,033 Exercisable at March 31, 2017 4,082,165 $ 2,64 $ 41,573 During the three months ended March 31, 2017, the Company recognized $69,954 of stock compensation expense attributable to the amortization of unrecognized stock-based compensation. As of March 31, 2017, total unrecognized stock-based compensation expense related to non-vested stock options was $285,328. The unrecognized expense is expected to be recognized over a weighted average period of 1.79 years and the weighted average remaining contractual term of the outstanding options and exercisable options at March 31, 2017 is 6.82 years and 5.44 years, respectively. Shares available for issuance under the 2008 Plan as of March 31, 2017 totaled 167,835. Shares available for issuance under the 2017 Plan, as of March 31, 2017 and subject to shareholder approval of the 2017 Plan, totaled 4,400,000. Share-Based Compensation Expense The following table reflects share-based compensation recorded by the Company for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 Share-based compensation expense included in general and administrative expense $ 69,954 $ 22,868 Earnings per share effect of share-based compensation expense – basic and diluted $ (0.00 ) $ (0.00 ) |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Capital Stock | NOTE 4 – CAPITAL STOCK Treasury Stock In March 2017, the Company’s board of directors approved the cancellation of all shares of common stock held in treasury. As a result, 892,557 shares of common stock were cancelled and $174,125 previously classified on the balance sheet as treasury stock was reclassified as a reduction in additional paid-in capital. 12.0% Series A Convertible Preferred Stock In January 2017, the Company issued 1,200 shares of 12% Series A Convertible Preferred Stock (the “Series A Preferred Stock”) for aggregate gross proceeds of $1.2 million. The Series A Preferred Stock (i) accrues a cumulative dividend, commencing July 1, 2017, at 12% payable, if and when declared, quarterly; (ii) is convertible at the option of the holder into shares of common stock at a conversion price of $0.20 per share, (iii) has a liquidation preference of $1,000 per share plus accrued and unpaid dividends; and (iv) is redeemable at our option, commencing on the second anniversary of the issue date, at a premium to issue price, which premium decreases from 12% to 0% following the fifth anniversary of the issue date, plus accrued and unpaid dividends. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
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 was schedule to expire May 31, 2017. In March 2017, the Company entered into a new lease extending the term of its office lease until October 31, 2022. As of March 31, 2017, the lease agreement requires future payments as follows: Year Amount 2017 $ 89,449 2018 125,978 2019 128,348 2020 130,717 2021 133,087 2022 112,551 Total $ 720,130 For the three months ended March 31, the total base rental expense was $31,748 in 2017 and $25,429 in 2016. The Company does not have any capital leases or other operating lease commitments. Employment Commitments In March 2017, the Company’s compensation committee approved revised compensation arrangements for John P. Boylan, Chairman, Chief Executive Officer and President of the Company. The principal terms of Mr. Boylan’s compensation, as so revised, include (i) an annual base salary of $250,000, effective January 1, 2017, with $10,000 per month being payable on a current basis, and full salary and accrued unpaid salary being payable at such time as the compensation committee determines that the Company has sufficient financial capability to pay such amounts; (ii) annual bonuses as determined by the compensation committee; (iii) grant, pursuant to the Company’s Production Incentive Compensation Plan, of a 1% interest in the Company revenues from all wells drilled on the Company’s Reeves County, Texas acreage; and (iv) grant of a stock option to purchase 500,000 shares of common stock. In March 2017, the Company hired a non-executive officer at a base salary of $5,000 per month, increasing to $15,000 per month beginning May 1, 2017, with periodic raises and bonuses as determined by the compensation committee. Additionally, the Company granted a stock option to the non-executive officer to purchase 600,000 shares of common stock. See Note 7 – Subsequent Events. |
Taxes
Taxes | 3 Months Ended |
Mar. 31, 2017 | |
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 2017, and consequently, recorded During the three months ended March 31, 2017, 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, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 7 – SUBSEQUENT EVENTS Unit Offering In May 2017, the Company received $909,600 from the sale of 909.6 Units (the “Units”), each Unit consisting of one share of 12.0% Series B Convertible Preferred Stock (the “Series B Preferred Stock”) and a Warrant (the “Warrant”). The Series B Preferred Stock (i) accrues a cumulative dividend at 12% payable, if and when declared, quarterly; (ii) is convertible at the option of the holder into shares of common stock at a conversion price of $0.36 per share, (iii) has a liquidation preference of $1,000 per share plus accrued and unpaid dividends; and (iv) is redeemable at our option, commencing on the second anniversary of the issue date, at a premium to issue price, which premium decreases from 12% to 0% following the fifth anniversary of the issue date, plus accrued and unpaid dividends. The Warrants are exercisable, for a period of 9 months to purchase an aggregate of 3,001,680 shares of common stock at $0.43 per share. Termination of Employee and Options In May 2017, the Company terminated the employment of the non-executive officer hired in March 2017. See Note 5 – Commitments and Contingencies – Employment Commitments See Note 3 – Stock-Based Compensation Expense – Stock Option Activity |
Basis of Presentation and Sig13
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
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 flows of $361,938 for the three months ended March 31, 2017. These conditions, together with continued low oil and natural gas prices and financial commitments the Company has made relative to its Reeves County, Texas and Colombian properties, raise substantial doubt as to the Company’s 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 raised $1,200,000 of capital from the sale of Series A Preferred Stock during the quarter ended March 31, 2017 and, subsequent to March 31, 2017, raised $909,600 from the sale of Series B Preferred Stock and Warrants and 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 $45,765 in excess of the FDIC’s current insured limit on interest bearing accounts of $250,000 as of March 31, 2017. 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 Company’s only outstanding potentially dilutive securities are stock options. For the three months ended March 31, 2017 and 2016, using the treasury stock method, there were no outstanding ‘in-the-money’ options that would have increased our diluted weighted average shares outstanding and, due to losses during these periods, all outstanding 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, 2017 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. |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 three months ended March 31, 2017 and long lived assets (net of depletion, amortization, and impairments) as of March 31, 2017 attributable to each geographical area are presented below: Three Months Ended March 31, 2017 As of March 31, 2017 Revenues Long Lived Assets, Net United States $ 57,633 $ 1,141,981 Colombia — 2,295,235 Total $ 57,633 $ 3,437,216 |
Stock-Based Compensation Expe15
Stock-Based Compensation Expense (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 three months ended March 31, 2017 is presented below: Options Weighted- Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2017 5,232,165 $ 2.11 Granted 1,200,000 0.30 Exercised - - Forfeited - - Outstanding at March 31, 2017 6,432,165 $ 1.77 $ 104,033 Exercisable at March 31, 2017 4,082,165 $ 2,64 $ 41,573 |
Schedule of Share-based Compensation Expense | The following table reflects share-based compensation recorded by the Company for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 Share-based compensation expense included in general and administrative expense $ 69,954 $ 22,868 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, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Payments Under Lease Agreement | As of March 31, 2017, the lease agreement requires future payments as follows: Year Amount 2017 $ 89,449 2018 125,978 2019 128,348 2020 130,717 2021 133,087 2022 112,551 Total $ 720,130 |
Basis of Presentation and Sig17
Basis of Presentation and Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net cash used in operations | $ 361,938 | $ 295,045 |
Proceeds from issuance of preferred stock | 1,200,000 | |
Cash deposits in excess of FDIC's | 45,765 | |
Current insured limit on interest bearing accounts | 250,000 | |
Series A Preferred Stock [Member] | ||
Proceeds from issuance of preferred stock | 1,200,000 | |
Series B Preferred Stock [Member] | ||
Proceeds from issuance of preferred stock | $ 909,600 |
Oil and Gas Properties (Details
Oil and Gas Properties (Details Narrative) | 3 Months Ended | |
Mar. 31, 2017USD ($)Segment | Mar. 31, 2016USD ($) | |
Investment in development of oil and gas properties | $ 997,985 | $ 40,603 |
Development costs not subject to amortization | 999,093 | |
Reduced oil and gas properties subject to amortization | $ 1,108 | |
Number of geographical areas in which entity operates | Segment | 2 | |
United States [Member] | ||
Acquisition and development cost of oil and gas properties | $ 986,937 | |
Colombia [Member] | ||
Preparation and evaluation costs | $ 11,048 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | $ 57,633 | $ 48,260 |
Long Lived Assets, Net | 3,437,216 | |
United States [Member] | ||
Revenues | 57,633 | |
Long Lived Assets, Net | 1,141,981 | |
Colombia [Member] | ||
Revenues | ||
Long Lived Assets, Net | $ 2,295,235 |
Stock-Based Compensation Expe20
Stock-Based Compensation Expense (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2008 | |
Number of options authorized to purchase shares of common stock | 500,000 | ||
Number of stock option shares granted | 1,200,000 | ||
Stock option exercise per share | |||
Stock compensation amortized expense | $ 69,954 | $ 22,868 | |
Unrecognized share-based compensation expense related to non-vested stock options | $ 285,328 | ||
Weighted average period for recognition of compensation expense | 1 year 9 months 15 days | ||
Weighted average remaining contractual term of the outstanding options | 6 years 9 months 26 days | ||
Weighted average remaining contractual term of the exercisable options | 5 years 5 months 9 days | ||
Executive Officer [Member] | |||
Number of stock option shares granted | 1,200,000 | ||
Stock option grand period | 10 years | ||
Stock option exercise per share | $ 0.30 | ||
Non Executive Officer [Member] | |||
Number of options authorized to purchase shares of common stock | 600,000 | ||
Number of stock option shares granted | 234,947 | ||
Risk free interest rate | 2.19% | ||
Stock option expected life | 5 years 6 months | ||
Expected stock volatility | 109.16% | ||
Expected dividend yield | 0.00% | ||
Non Executive Officer [Member] | June 12, 2017 [Member] | |||
Stock option vesting percentage | 25.00% | ||
Non Executive Officer [Member] | June 12, 2017 [Member] | Tranche One [Member] [Member] | |||
Stock option vesting percentage | 25.00% | ||
Non Executive Officer [Member] | June 12, 2017 [Member] | Tranche Two [Member] | |||
Stock option vesting percentage | 25.00% | ||
Non Executive Officer [Member] | June 12, 2017 [Member] | Tranche Three [Member] | |||
Stock option vesting percentage | 25.00% | ||
2008 Equity Incentive Plan [Member] | |||
Number of options authorized to purchase shares of common stock | 6,000,000 | ||
2017 Plan [Member] | |||
Number of options authorized to purchase shares of common stock | 5,000,000 | ||
Shares available for issuance | 4,400,000 | ||
2008 Plan [Member] | |||
Shares available for issuance | 167,835 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options Outstanding at beginning of the period | shares | 5,232,165 |
Options Granted | shares | 1,200,000 |
Options Exercised | shares | |
Options Forfeited | shares | |
Options Outstanding at end of the period | shares | 6,432,165 |
Options Outstanding Exercisable | shares | 4,082,165 |
Weighted-Average Exercise Price Outstanding at beginning of the period | $ / shares | $ 2.11 |
Weighted-Average Exercise Price Granted | $ / shares | 0.30 |
Weighted-Average Exercise Price Exercised | $ / shares | |
Weighted-Average Exercise Price Forfeited | $ / shares | |
Weighted-Average Exercise Price Outstanding at end of the period | $ / shares | 1.77 |
Weighted-Average Exercise Price Outstanding Exercisable | $ / shares | $ 264 |
Aggregate Intrinsic Value Outstanding at end of the period | $ | $ 104,033 |
Aggregate Intrinsic Value Outstanding Exercisable | $ | $ 41,573 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based compensation expense included in general and administrative expense | $ 69,954 | $ 22,868 |
Earnings per share effect of share-based compensation expense – basic and diluted | $ 0 | $ 0 |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Number of treasury stock shares | 0 | 892,557 | ||
Tresury stock value | $ 174,125 | |||
Proceeds from issuance of preferred stock | $ 1,200,000 | |||
12% Series A Convertible Preferred Stock [Member] | ||||
Number of preferred stock issued | 1,200 | |||
Proceeds from issuance of preferred stock | $ 1,200,000 | |||
Dividend payable or declared date | Jul. 1, 2017 | |||
Preferred stock dividend percentage | 12.00% | |||
Debt conversion price per share | $ 0.20 | |||
Preferred stock liquidation preference price per share | $ 1,000 | |||
12% Series A Convertible Preferred Stock [Member] | Maximum [Member] | ||||
Premium issuance price decreased percentage | 12.00% | |||
12% Series A Convertible Preferred Stock [Member] | Minimum [Member] | ||||
Premium issuance price decreased percentage | 0.00% | |||
Board of Directors [Member] | ||||
Number of treasury stock shares | 892,557 | |||
Tresury stock value | $ 174,125 |
Commitments and Contingencies24
Commitments and Contingencies (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | |
Operating lease agreement expiration date | May 31, 2017 | ||
Total rental expense | $ 31,748 | $ 25,429 | |
Revenues percentage | 1.00% | ||
Number of option to purchase shares of common stock | 500,000 | ||
Employee [Member] | |||
Annual base salary | $ 250,000 | ||
Periodic payment | 10,000 | ||
Non Executive Officer [Member] | |||
Annual base salary | $ 5,000 | ||
Number of option to purchase shares of common stock | 600,000 | ||
Non Executive Officer [Member] | May 1, 2017 [Member] | |||
Base salary increasing per month | $ 15,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Payments under Lease Agreement (Details) | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 89,449 |
2,018 | 125,978 |
2,019 | 128,348 |
2,020 | 130,717 |
2,021 | 133,087 |
2,022 | 112,551 |
Total | $ 720,130 |
Taxes (Details Narrative)
Taxes (Details Narrative) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Effective tax rate | 0.00% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($) | 1 Months Ended | |
May 31, 2017 | Jan. 31, 2017 | |
Number of sale of stock shares received value | $ 909,600 | |
Number of sale of stock shares received | 909.6 | |
Number of warrant to purchase shares common stock | 3,001,680 | |
Warrant exercise price per share | $ 0.43 | |
12% Series B Convertible Preferred Stock [Member] | ||
Conversion of preferred stock description | each Unit consisting of one share of 12.0% Series B Convertible Preferred Stock (the Series B Preferred Stock) and a Warrant (the Warrant). | |
Debt conversion price per share | $ 0.36 | |
Preferred stock liquidation preference price per share | $ 1,000 | |
Premium issuance price decreased percentage | 0.00% | |
12% Series B Convertible Preferred Stock [Member] | Maximum [Member] | ||
Preferred stock dividend percentage | 12.00% |