Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 27, 2020 | Jun. 28, 2019 | |
Document And Entity Information | |||
Entity Registrant Name | HOUSTON AMERICAN ENERGY CORP | ||
Entity Central Index Key | 0001156041 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10,600,000 | ||
Entity Common Stock, Shares Outstanding | 87,007,145 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash | $ 97,915 | $ 755,702 |
Accounts receivable - oil and gas sales | 80,195 | 136,042 |
Prepaid expenses and other current assets | 39,505 | 66,381 |
TOTAL CURRENT ASSETS | 217,615 | 958,125 |
Oil and gas properties, full cost method | ||
Costs subject to amortization | 61,068,240 | 60,397,878 |
Costs not being amortized | 2,478,456 | 2,456,499 |
Office equipment | 90,004 | 90,004 |
Total | 63,633,534 | 62,944,381 |
Accumulated depletion, depreciation, amortization, and impairment | (57,267,145) | (56,082,902) |
PROPERTY AND EQUIPMENT, NET | 6,369,555 | 6,861,479 |
Cost method investment | 197,009 | |
Right of use asset | 281,489 | |
Other assets | 3,167 | 3,167 |
TOTAL ASSETS | 7,068,835 | 7,822,771 |
CURRENT LIABILITIES | ||
Accounts payable | 270,119 | 61,826 |
Accrued expenses | 447 | 933 |
Notes payable - related party, net of debt discount | 597,585 | |
Short-term lease liability | 97,890 | |
TOTAL CURRENT LIABILITIES | 966,041 | 62,759 |
LONG-TERM LIABILITIES | ||
Lease liability, net of current portion | 219,410 | |
Reserve for plugging and abandonment costs | 44,186 | 38,754 |
Deferred rent obligation | 43,965 | |
TOTAL LONG-TERM LIABILITIES | 263,596 | 82,965 |
TOTAL LIABILITIES | 1,229,637 | 145,478 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value $0.001; 10,000,000 shares authorized, | ||
Common stock, par value $0.001; 150,000,000 shares authorized 65,947,646 and 62,425,140 shares issued and outstanding | 65,947 | 62,425 |
Additional paid-in capital | 73,816,661 | 73,084,009 |
Subscription Receivable | 58,575 | |
Accumulated deficit | (67,984,837) | (65,469,143) |
TOTAL SHAREHOLDERS' EQUITY | 5,839,198 | 7,677,293 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,068,835 | 7,822,771 |
Series A Convertible Preferred Stock [Member] | ||
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value $0.001; 10,000,000 shares authorized, | 1 | 1 |
Series B Convertible Preferred Stock [Member] | ||
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value $0.001; 10,000,000 shares authorized, | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 65,947,646 | 62,425,140 |
Series A Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, shares issued | 1,085 | 1,085 |
Preferred stock, shares outstanding | 1,085 | 1,085 |
Preferred stock liquidation share value | $ 1,085,000 | $ 1,085,000 |
Series B Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 835 | 835 |
Preferred stock, shares outstanding | 835 | 835 |
Preferred stock liquidation share value | $ 835,000 | $ 835,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUES | ||
Oil and gas revenue | $ 997,992 | $ 2,243,325 |
Lease bonus revenue | 113,335 | |
Total operating revenue | 997,992 | 2,356,660 |
EXPENSES OF OPERATIONS | ||
Lease operating expense and severance tax | 789,708 | 914,269 |
General and administrative expense | 1,357,723 | 1,422,560 |
Depreciation and depletion | 438,553 | 357,822 |
Impairment expense | 745,691 | |
Total operating expenses | 3,331,675 | 2,694,651 |
Loss from operations | (2,333,683) | (337,991) |
OTHER INCOME (EXPENSE) | ||
Interest income | 1,961 | 102 |
Other income | 86,553 | |
Interest expense | (183,972) | |
Total other income (expense), net | (182,011) | 86,665 |
Loss before taxes | (2,515,694) | (251,336) |
Income tax expense (benefit) | ||
Net loss | (2,515,694) | (251,336) |
Dividends to Series A and B Preferred shareholders | (230,400) | (238,950) |
Net loss attributable to common shareholders | $ (2,746,094) | $ (490,286) |
Basic and diluted net loss per common share outstanding | $ (0.04) | $ (0.01) |
Basic and diluted weighted average number of common shares outstanding | 65,947,646 | 60,616,220 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Subscription Receivable [Member] | Retained Earnings (Deficit) [Member] | Total |
Balance at Dec. 31, 2017 | $ 2 | $ 59,260 | $ 72,482,303 | $ (65,217,807) | $ 7,323,758 | |
Balance, shares at Dec. 31, 2017 | 2,070 | 59,260,101 | ||||
Issuance of common stock for cash, net | $ 2,434 | 744,771 | 747,205 | |||
Issuance of common stock for cash, net, shares | 2,433,993 | |||||
Conversion of Series A and Series B Preferred Stock to common stock | $ 617 | (617) | ||||
Conversion of Series A and Series B Preferred Stock to common stock, shares | (150) | 616,667 | ||||
Cashless exercise of options | $ 114 | (114) | ||||
Cashless exercise of options, shares | 114,379 | 250,000 | ||||
Stock-based compensation | 96,616 | $ 96,616 | ||||
Series A and Series B Preferred Stock dividends paid | (238,950) | (238,950) | ||||
Net loss | (251,336) | (251,336) | ||||
Balance at Dec. 31, 2018 | $ 2 | $ 62,425 | 73,084,009 | (65,469,143) | 7,677,293 | |
Balance, shares at Dec. 31, 2018 | 1,920 | 62,425,140 | ||||
Issuance of common stock for cash, net | $ 3,472 | 662,063 | (58,575) | $ 606,960 | ||
Issuance of common stock for cash, net, shares | 3,472,506 | 3,191,667 | ||||
Conversion of Series A and Series B Preferred Stock to common stock | ||||||
Cashless exercise of options | ||||||
Stock-based compensation | $ 50 | 156,041 | $ 156,091 | |||
Stock-based compensation, shares | 50,000 | |||||
Series A and Series B Preferred Stock dividends paid | (230,400) | (230,400) | ||||
Debt discount from issuance of warrants as debt inducement | 144,948 | 144,948 | ||||
Net loss | (2,515,694) | (2,515,694) | ||||
Balance at Dec. 31, 2019 | $ 2 | $ 65,947 | $ 73,816,661 | $ (58,575) | $ (67,984,837) | $ 5,839,198 |
Balance, shares at Dec. 31, 2019 | 1,920 | 65,947,646 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net loss | $ (2,515,694) | $ (251,336) |
Adjustments to reconcile net loss to net cash (used in) provided by operations | ||
Depreciation and depletion | 438,553 | 357,822 |
Impairment of oil and gas properties | 745,691 | |
Accretion of plugging and abandonment costs | 5,432 | 3,096 |
Stock-based compensation | 156,091 | 96,616 |
Amortization of right of use asset | 76,495 | |
Amortization of debt discount | 162,533 | |
Change in operating assets and liabilities: | ||
Decrease in accounts receivable | 55,847 | 211,506 |
Decrease/(increase) in prepaid expense and other current assets | 26,876 | (62,631) |
Increase in accounts payable and accrued expenses | 305,697 | 10,999 |
Decrease in deferred rent obligation | (5,280) | |
Decrease in operating lease liability | (182,539) | |
Net cash (used in) provided by operating activities | (725,019) | 360,792 |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Payments for the acquisition and development of oil and gas properties | (692,319) | (505,407) |
Payments for the acquisition of cost method investment | (197,009) | |
Net cash used in investing activities | (889,328) | (505,407) |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of notes payable, net of debt discount | 680,000 | |
Repayments of notes payable | (100,000) | |
Proceeds from issuance of common stock for cash, net of offering costs | 606,960 | 747,205 |
Payment of preferred stock dividends | (230,400) | (238,950) |
Net cash provided by financing activities | 966,560 | 508,255 |
(DECREASE) INCREASE IN CASH | (657,787) | 363,640 |
Cash, beginning of year | 755,702 | 392,062 |
Cash, end of year | 97,915 | 755,702 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid | 21,439 | |
Taxes paid | ||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Change in accrued oil and gas development costs | 99,897 | |
Debt discount from issuance of warrants as debt inducement | 144,948 | |
Conversion of Series A and Series B Preferred Stock to common stock | 617 | |
Cashless exercise of options | $ 114 |
Nature of Company and Summary o
Nature of Company and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Company and Summary of Significant Accounting Policies | NOTE 1—NATURE OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Houston American Energy Corp. (a Delaware Corporation) (“the Company” or “HUSA”) was incorporated in 2001. The Company is engaged, as a non-operating joint owner, in the exploration, development, and production of natural gas, crude oil, and condensate from properties. The Company’s principal properties are in the Texas Permian Basin with additional holdings in Gulf Coast areas of the United States and international holdings in Colombia, South America. Consolidation The accompanying consolidated financial statements include all accounts of HUSA 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. Liquidity and Capital Requirements 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 issuance date of these consolidated financial statements. The Company has incurred continuing losses since 2011, including a loss of $2,515,694 for the year ended December 31, 2019. However, during 2019, the Company raised, net of offering costs, $606,960 in its ATM offering. Subsequent to December 31, 2019, through the date hereof, the Company raised, net of offering costs, $4,376,549 in its ATM offering, thereby mitigating going concern considerations. The Company believes that it has the ability to fund, from cash on hand and through the subsequent equity financing, its operating costs and anticipated drilling operations for at least the next twelve months following the issuance of these financial statements. The actual timing and number of wells drilled during 2020 will be principally controlled by the operators of the Company’s acreage, based on a number of factors, including but not limited to availability of financing, performance of existing wells on the subject acreage, energy prices and industry condition and outlook, costs of drilling and completion services and equipment and other factors beyond the Company’s control or that of its operators. With the steep decline in energy prices in March 2020, due at least in part to the economic effects of the coronavirus, drilling operations are expected to be deferred until at least the second half of 2020 pending clarity as to the timing of economic recovery from the effects of the coronavirus. In the event that the Company pursues additional acreage acquisitions or expands its drilling plans, the Company may be required to secure additional funding beyond our resources on hand. While the Company may, among other efforts, seek additional funding from “at-the-market” sales of common stock, and private sales of equity and debt securities, it presently does not have any commitments to provide additional funding (beyond what was already received subsequent to December 31, 2019 and described above), and there can be no assurance that the Company can secure the necessary capital to fund its share of drilling, acquisition or other costs on acceptable terms or at all. If, for any reason, the Company is unable to fund its share of drilling and completion costs, it would forego participation in one or more of such wells. In such event, the Company may be subject to penalties or to the possible loss of some of its rights and interests in prospects with respect to which it fails to satisfy funding obligations and it may be required to curtail operations and forego opportunities. General 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 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. Reclassification Certain amounts for prior periods have been reclassified to conform to the current presentation. Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits and cash investments with initial maturity dates of less than three months when purchased. As of December 31, 2019 and 2018, the Company had no cash equivalents outstanding. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk include cash, cash equivalents and marketable securities (if any). The Company had no cash deposits in excess of the FDIC’s current insured limit of $250,000 at December 31, 2019 for interest bearing accounts. The Company also had cash deposits of approximately $3,600 in Colombian banks at December 31, 2019 that are not insured by the FDIC. The Company has not experienced any losses on its deposits of cash and cash equivalents. Revenue Recognition ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” Revenue Recognition (Topic 605) The Company’s revenue is comprised principally of revenue from exploration and production activities. The Company’s oil is sold primarily to marketers, gatherers, and refiners. Natural gas is sold primarily to interstate and intrastate natural-gas pipelines, direct end-users, industrial users, local distribution companies, and natural-gas marketers. NGLs are sold primarily to direct end-users, refiners, and marketers. Payment is generally received from the customer in the month following delivery. Contracts with customers have varying terms, including spot sales or month-to-month contracts, contracts with a finite term, and life-of-field contracts where all production from a well or group of wells is sold to one or more customers. The Company recognizes sales revenues for oil, natural gas, and NGLs based on the amount of each product sold to a customer when control transfers to the customer. Generally, control transfers at the time of delivery to the customer at a pipeline interconnect, the tailgate of a processing facility, or as a tanker lifting is completed. Revenue is measured based on the contract price, which may be index-based or fixed, and may include adjustments for market differentials and downstream costs incurred by the customer, including gathering, transportation, and fuel costs. Revenues are recognized for the sale of the Company’s net share of production volumes. 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 in common shares that then shared in the earnings of the Company. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted net loss per share amounts as the effect would be anti-dilutive. For the years ended December 31, 2019 and 2018, the following convertible preferred stock and warrants and options to purchase shares of common stock were excluded from the computation of diluted net loss per share, as the inclusion of such shares would be anti-dilutive: Year Ended December 31, 2019 2018 Series A Convertible Preferred Stock 5,425,000 5,425,000 Series B Convertible Preferred Stock 2,320,556 2,320,556 Stock warrants 1,230,000 12,500 Stock options 6,012,166 4,978,832 Totals 14,987,722 12,736,888 Accounts Receivable Accounts receivable – other and escrow receivables have been evaluated for collectability and are recorded at their net realizable values. Allowance for Accounts Receivable The Company regularly reviews outstanding receivables and provides for estimated losses through an allowance for doubtful accounts when necessary. In evaluating the need for an allowance, the Company makes judgments regarding its customers’ ability to make required payments, economic events and other factors. As the financial condition of these parties change, circumstances develop or additional information becomes available, an allowance for doubtful accounts may be required. When the Company determines that a customer may not be able to make required payments, the Company increases the allowance through a charge to income in the period in which that determination is made. As of December 31, 2019 and 2018, the Company evaluated their receivables and determined that no allowance was necessary. Oil and Gas Properties The Company uses the full cost method of accounting for exploration and development activities as defined by the SEC. Under this method of accounting, the costs for unsuccessful, as well as successful, exploration and development activities are capitalized as oil and gas properties. Capitalized costs include lease acquisition, geological and geophysical work, delay rentals, costs of drilling, completing and equipping the wells and any internal costs that are directly related to acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Proceeds from the sale or other disposition of oil and gas properties are generally treated as a reduction in the capitalized costs of oil and gas properties, unless the impact of such a reduction would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a country. The Company categorizes its full cost pools as costs subject to amortization and costs not being amortized. The sum of net capitalized costs subject to amortization, including estimated future development and abandonment costs, are amortized using the unit-of-production method. Depletion and amortization for oil and gas properties was $438,552 and $357,822 for the years ended December 31, 2019 and 2018, respectively and accumulated amortization, depreciation and impairment was $57,177,141 and $55,992,898 at December 31, 2019 and 2018, respectively. Costs Excluded Oil and gas properties include costs that are excluded from capitalized costs being amortized. These amounts represent costs of investments in unproved properties. The Company excludes these costs on a country-by-country basis until proved reserves are found or until it is determined that the costs are impaired. All costs excluded are reviewed quarterly to determine if impairment has occurred. The amount of any impairment is transferred to the costs subject to amortization. Ceiling Test Under the full cost method of accounting, a ceiling test is performed each quarter. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X. The ceiling test determines a limit, on a country-by-country basis, on the book value of oil and gas properties. The capitalized costs of proved oil and gas properties, net of accumulated depreciation, depletion, amortization and impairment (“DD&A”) Furniture and Equipment Office equipment is stated at original cost and is depreciated on the straight-line basis over the useful life of the assets, which ranges from three to five years. Office equipment having an original cost basis of $90,004 was fully depreciated as of January 1, 2018. Therefore, the related depreciation expense was $0 and $0 for 2019 and 2018, respectively, and accumulated depreciation was $90,004 and $90,004 at December 31, 2019 and 2018, respectively. Asset Retirement Obligations For the Company, asset retirement obligations (“ARO”) represent the systematic, monthly accretion and depreciation of future abandonment costs of tangible assets such as platforms, wells, service assets, pipelines, and other facilities. The fair value of a liability for an asset’s retirement obligation is recorded in the period in which it is incurred if a reasonable estimate of fair value can be made, and that the corresponding cost is capitalized as part of the carrying amount of the related long-lived asset. The liability is accreted to its then present value each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount, an adjustment is made to the full cost pool, with no gain or loss recognized, unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves. Although the Company’s domestic policy with respect to ARO is to assign depleted wells to a salvager for the assumption of abandonment obligations before the wells have reached their economic limits, the Company has estimated its future ARO obligation with respect to its domestic operations. The ARO assets, which are carried on the balance sheet as part of the full cost pool, have been included in our amortization base for the purposes of calculating depreciation, depletion and amortization expense. For the purposes of calculating the ceiling test, the future cash outflows associated with settling the ARO liability have been included in the computation of the discounted present value of estimated future net revenues. Asset retirement obligations are classified as Level 3 (unobservable inputs) fair value measurements. Joint Venture Expense Joint venture expense reflects the indirect field operating and regional administrative expenses billed by the operator of the Colombian concessions. Income Taxes Deferred income taxes are provided on a liability method whereby deferred tax assets and liabilities are established for the difference between the financial reporting and income tax basis of assets and liabilities as well as operating loss and tax credit carry forwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Stock-Based Compensation The Company measures the cost of employee services received in exchange for stock and stock options based on the grant date fair value of the awards. The Company determines the fair value of stock option grants using the Black-Scholes option pricing model. The Company determines the fair value of shares of non-vested stock based on the last quoted price of our stock on the date of the share grant. The fair value determined represents the cost for the award and is recognized over the vesting period during which an employee is required to provide service in exchange for the award. As stock-based compensation expense is recognized based on awards ultimately expected to vest, the Company reduces the expense for estimated forfeitures based on historical forfeiture rates. Previously recognized compensation costs may be adjusted to reflect the actual forfeiture rate for the entire award at the end of the vesting period. Excess tax benefits, if any, are recognized as an addition to paid-in capital. Concentration of Risk As a non-operator oil and gas exploration and production company, and through its interest in a limited liability company (“Hupecol”) and concessions operated by Hupecol in the South American country of Colombia, the Company is dependent on the personnel, management and resources of the operators of its various properties to operate efficiently and effectively. As a non-operating joint interest owner, the Company has a right of investment refusal on specific projects and the right to examine and contest its division of costs and revenues determined by the operator. The Company’s Permian Basin, Texas properties accounted for all of the Company’s drilling operations and substantially all of its oil and gas investments in 2019 and 2018. In the event of a significant negative change in operations or operating outlook pertaining to the Company’s Permian Basin properties, the Company may be forced to abandon or suspend such operations, which abandonment or suspension could be materially harmful to the Company. Additionally, the Company currently has interests in concessions in Colombia and expects to be active in Colombia for the foreseeable future. The political climate in Colombia is unstable and could be subject to radical change over a very short period of time. In the event of a significant negative change in political and economic stability in the vicinity of the Company’s Colombian operations, the Company may be forced to abandon or suspend its efforts. Either of such events could be harmful to the Company’s expected business prospects. For 2019, the Company’s oil production from the its mineral interests was sold to U.S. oil marketing companies based on the highest bid. The gas production is sold to U.S. natural gas marketing companies based on the highest bid. No purchaser accounted for more than 10% of our oil and gas sales. The Company reviews accounts receivable balances when circumstances indicate a balance may not be collectible. Based upon the Company’s review, no allowance for uncollectible accounts was deemed necessary at December 31, 2019 and 2018, respectively. Recent Accounting Developments In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). Under this new guidance, lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of greater than twelve months. The guidance requires qualitative disclosures along with certain specific quantitative disclosures for both lessees and lessors. The ASU and its related amendments are effective for fiscal years beginning after December 15, 2018, with early adoption permitted, and are effective for interim periods in the year of adoption. The Company has adopted the new lease standard using the new transition option issued under the amendments in ASU 2018-11, Leases, which allowed the Company to continue to apply the legacy guidance in Accounting Standards Codification (ASC) 840, Leases, in the comparative periods presented in the year of adoption. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The Company evaluated the impact of this new guidance and reviewed lease or possible lease contracts and evaluated contract related processes. The Company adopted ASU 2016-02 effective January 1, 2019 and recorded an initial right-of-use asset and liability for its operating leases of $357,985. In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”. The amendments in this update are to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. The areas for simplification in this Update involve several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, to include share-based payment transactions for acquiring goods and services from nonemployees. Some of the areas for simplification apply only to nonpublic entities. The amendments in this update is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company adopted ASU 2018-07 effective January 1, 2019 and recognized no significant impact to its statements of operations or cash flows as a result of the adoption of this standard. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”. The amendments in this update are to improve the effectiveness of disclosures in the notes to the financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each entity’s financial statements. The amendments in this Update apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not expect that this guidance will have a material impact on its consolidated financial statements. The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows. Subsequent Events The Company evaluated subsequent events for disclosure from December 31, 2019 through the date the consolidated financial statements were issued. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | NOTE 2—REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue from Contracts with Customers The following table disaggregates revenue by significant product type for the years ended December 31, 2019 and 2018: Year Ended December 31, 2019 2018 Oil sales $ 762,039 $ 1,416,946 Natural gas sales 79,889 663,389 Natural gas liquids sales 156,064 162,987 Lease bonus revenue — 113,335 Total revenue from customers $ 997,992 $ 2,356,660 There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of December 31, 2019 or 2018. |
Revenue From Lease of Mineral I
Revenue From Lease of Mineral Interests | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Revenue From Lease of Mineral Interests | NOTE 3—REVENUE FROM LEASE OF MINERAL INTERESTS The Company holds a 23.437% mineral interest in 2,485 gross acres in East Baton Rouge Parish, Louisiana. Out of that acreage, in 2018, the Company leased to an operator/lessee 743.94 acres. Under the terms of that lease, the Company received a lease bonus totaling $113,335 and a royalty of 22.5% gross in 2018, entitling the Company to a 5.27% net interest in all production from the acreage free of operating costs, other than production and ad valorem taxes. The lease bonus received was recorded as lease bonus revenue on the statement of operations when the drilling did not commence under the terms of the lease. |
Escrow Receivable
Escrow Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Escrow Receivable | |
Escrow Receivable | NOTE 4—ESCROW RECEIVABLE In 2010, the Company, and its operator in Colombia, Hupecol, sold its interests in two entities in Colombia. Pursuant to the terms of those sales, a portion of the sales price was escrowed to secure certain representations of the selling parties. The Company’s share of amounts escrowed was recorded as escrow receivables. In 2016, the Company recorded an allowance in the amount of $262,016 relating to the undisbursed balance of escrow receivables. In October 2018, the Company received payments totaling $86,553 representing recoveries of escrowed funds related to the previously written-off escrow receivables. As a result of the receipt of such funds, the Company recorded non-recurring other income of $86,553 during 2018 on the statement of operations. |
Oil and Gas Properties
Oil and Gas Properties | 12 Months Ended |
Dec. 31, 2019 | |
Oil and Gas Property [Abstract] | |
Oil and Gas Properties | NOTE 5—OIL AND GAS PROPERTIES Evaluated Oil and Gas Properties Evaluated oil and gas properties subject to amortization at December 31, 2019 included the following: United States South America Total Evaluated properties being amortized $ 11,613,538 $ 49,454,702 $ 61,068,240 Accumulated depreciation, depletion, amortization and impairment (7,722,439 ) (49,454,702 ) (57,177,141 ) Net capitalized costs $ 3,891,099 $ — $ 3,891,099 Evaluated oil and gas properties subject to amortization at December 31, 2018 included the following: United States South America Total Evaluated properties being amortized $ 10,943,176 $ 49,454,702 $ 60,397,878 Accumulated depreciation, depletion, amortization and impairment (6,538,196 ) (49,454,702 ) (55,992,898 ) Net capitalized costs $ 4,404,980 $ — $ 4,404,980 Unevaluated Oil and Gas Properties Unevaluated oil and gas properties not subject to amortization at December 31, 2019 included the following: United States South America Total Leasehold acquisition costs $ — $ 143,847 $ 143,847 Geological, geophysical, screening and evaluation costs 135,330 2,199,279 2,334,609 Total $ 135,330 $ 2,343,126 $ 2,478,456 Unevaluated oil and gas properties not subject to amortization at December 31, 2018 included the following: United States South America Total Leasehold acquisition costs $ — $ 141,318 $ 141,318 Geological, geophysical, screening and evaluation costs 135,329 2,179,852 2,315,181 Total $ 135,329 $ 2,321,170 $ 2,456,499 During 2019, the Company invested $889,328 for the acquisition and development of oil and gas properties and the acquisition of a 2% interest in Hupecol Meta LLC, consisting of (1) cost of acquisition of U.S. properties ($531,417), attributable to acreage acquired in the Northern Shelf of the Permian Basin in Texas, (2) cost of acquisition of Colombian properties ($197,009), attributable to our acquisition of an interest in the CPO-11 block through our purchase of an interest in Hupecol Meta, (3) drilling and development operations in the U.S. ($138,945), and (4) leasehold, drilling and development operations in Colombia ($21,957). Of the amount invested, we capitalized $21,957 to oil and gas properties not subject to amortization and capitalized $670,362 to oil and gas properties subject to amortization. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | NOTE 6—ASSET RETIREMENT OBLIGATIONS The following table describes changes in our asset retirement liability (“ARO”) during each of the years ended December 31, 2019 and 2018. 2019 2018 ARO liability at January 1 $ 38,754 $ 35,658 Accretion expense 5,432 3,096 ARO liability at December 31 $ 44,186 $ 38,754 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 7 – NOTES PAYABLE Bridge Loan Financing In September 2019, the Company issued promissory notes (the “Bridge Loan Notes”) with a total principal amount of $621,052, an original issue discount of 5%, warrants (the “Bridge Loan Warrants”) to purchase 1,180,000 shares of common stock, and a term of 120 days to the Company’s Chief Executive Officer and significant shareholder. Net proceeds received for the Bridge Loan Notes and Warrants totaled $590,000. The Bridge Loan Notes were unsecured obligations bearing interest at 12.0% per annum and payable interest only on the last day of each calendar month with any unpaid principal and accrued interest being payable in full on January 16, 2020. The Bridge Loan Notes were subject to mandatory prepayment from and to the extent of (i) 100% of net proceeds the Company receive from any sales, for cash, of equity or debt securities (other than Bridge Loan Notes), (ii) 100% of net proceeds the Company receive from the sale of assets (other than sales in the ordinary course of business); and (iii) 75% of net proceeds the Company receive from the sale of oil and gas produced from our Hockley County, Texas properties. Additionally, the Company had the option to prepay the Bridge Loan Notes, at its sole election, without penalty. The holders of the Bridge Loan Notes waived mandatory prepayment at the end of each month during 2019. The Bridge Loan Notes were recorded net of debt discount that consists of (i) $31,052 of original issue discount on the Bridge Loan Notes and (ii) the relative fair value of the Bridge Loan Warrants of $144,948. The debt discount is amortized over the life of the Bridge Loan Notes as additional interest expense. During 2019, interest expense paid in cash totaled $21,439, and interest expense attributable to amortization of debt discount totaled $152,533. As of December 31, 2019, the Company owed $621,052 under the Bridge Loan Notes and $0 of accrued interest. The Bridge Loan Notes were repaid in full in January 2020. The holders of the Bridge Loan Notes were the CEO and a 10% shareholder of the Company. OID Promissory Note In October 2019, the Company issued a promissory note (the “OID Note”) with a principal amount of $100,000 and an original issue discount of 10% to a significant shareholder of the Company. Net proceeds received for the OID Note totaled $90,000. The debt discount was amortized over the life of the OID Note as additional interest expense. During 2019, the Company recognized additional interest expense of $10,000 related to the amortization of the OID Note debt discount. The OID Note was an unsecured obligation bearing interest at 0% per annum and payable from any and all of the Company’s cash receipts, with any unpaid principal and accrued interest being payable in full on October 31, 2019. The OID Note was repaid in full as of October 31, 2019. The holder of the OID Note was a 10% shareholder of the Company. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 8—STOCK-BASED COMPENSATION In 2008, the Company 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. In 2017, the Company adopted 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. Stock Option Activity In February 2018, options to purchase an aggregate of 1,000,000 shares were granted to an executive officer. The options had a ten-year life, vested 1/3 on each of the first three anniversaries of the grant date and were exercisable at $0.2922 per share, the fair market value on the date of grant. The executive officer was terminated in June 2018 and the options were forfeited unvested on termination of employment. The options were valued on the date of grant at $166,940 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 2.68%; (2) expected life in years of 5.79; (3) expected stock volatility of 105.4%; and (4) expected dividend yield of 0%. The Company determined the options qualified as ‘plain vanilla’ under the provisions of SAB 107 and the simplified method was used to estimate the expected option life. In March 2018, options to purchase an aggregate of 500,000 shares were granted to a non-officer employee. The options had a ten-year life, vested 1/3 on each of the first three anniversaries of the grant date and were exercisable at $0.30 per share, the fair market value on the date of grant. The options were valued on the date of grant at $89,808 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 2.72%; (2) expected life in years of 5.81; (3) expected stock volatility of 105.0%; and (4) expected dividend yield of 0%. The Company determined the options qualified as ‘plain vanilla’ under the provisions of SAB 107 and the simplified method was used to estimate the expected option life. In April 2018, options to purchase 8,333 shares were granted to a newly appointed non-employee director. The options had a ten-year life, vested 20% on the date of grant and 80% nine months from the date of grant and an exercise price of $0.267 per share, the fair market value on the date of grant. The options were valued on the date of grant at $1,770 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 2.69%; (2) expected life in years of 5.8; (3) expected stock volatility of 105.0%; and (4) expected dividend yield of 0%. The Company determined the options qualified as ‘plain vanilla’ under the provisions of SAB 107 and the simplified method was used to estimate the expected option life. In June 2018, options to purchase an aggregate of 150,000 shares were granted to three non-employee directors. The options had a ten-year life, vested 20% on the date of grant and 80% nine months from the date of grant and exercise prices of $0.2425 per share, the fair market value on the date of grant. The options were valued on the date of grant at $27,422 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 2.79%; (2) expected life in years of 5.88; (3) expected stock volatility of 103.9%; and (4) expected dividend yield of 0%. The Company determined the options qualified as ‘plain vanilla’ under the provisions of SAB 107 and the simplified method was used to estimate the expected option life. In June 2018, stock options to purchase 250,000 shares of common stock were exercised, in a cashless exercise, resulting in the issuance of 114,379 shares of common stock. In June 2019, options to purchase an aggregate of 1,100,000 shares of common stock were granted to the Company’s directors and to a non-executive employee. The options have a ten-year life and are exercisable at $0.2165 per share, the market price on the date of grant. 1,000,000 of the options vest one year from the date of grant. 100,000 of the options vest 20% on the date of grant and 80% nine months from the date of grant. The grant date fair value of these stock options was $200,562 based on the Black-Scholes Option Pricing model with the following parameters: (1) risk-free interest rate of 2.1%; (2) expected life in years of 10; (3) expected stock volatility of 85.7%; and (4) expected dividend yield of 0%. The Company determined the options qualified as ‘plain vanilla’ under the provisions of SAB 107 and the simplified method was used to estimate the expected option life. Option activity during 2019 and 2018 was as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Outstanding at December 31, 2017 6,012,165 $ 1.86 Granted 1,658,333 $ 0.29 Exercised (250,000 ) $ 0.22 Forfeited (2,441,666 ) $ 3.79 Outstanding at December 31, 2018 4,978,832 $ 0.77 Granted 1,100,000 $ 0.22 Forfeited (66,666 ) $ 0.68 Outstanding at December 31, 2019 6,012,166 $ 0.67 6.02 $ — Exercisable at December 31, 2019 4,648,833 $ 0.80 5.06 $ — During 2019 and 2018, the Company recognized $156,091 and $94,846, respectively, of stock-based compensation expense attributable to a stock grant and outstanding stock option grants, including current period grants and unamortized expense associated with prior period grants. As of December 31, 2019, non-vested options totaled 1,413,333 and total unrecognized stock-based compensation expense related to non-vested stock options was $116,733. The unrecognized expense is expected to be recognized over a weighted average period of 0.62 years. The weighted average remaining contractual term of the outstanding options and exercisable options at December 31, 2019 is 6.02 years and 5.06 years, respectively. As of December 31, 2019, there were 3,191,667 shares of common stock available for issuance pursuant to future stock or option grants under the Plans. Stock-Based Compensation Expense The following table reflects stock-based compensation recorded by the Company for 2019 and 2018: 2019 2018 Stock-based compensation expense from stock options and warrants included in general and administrative expense $ 156,091 $ 96,616 Earnings per share effect of stock-based compensation expense $ (0.00 ) $ (0.00 ) |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Capital Stock | NOTE 9 – CAPITAL STOCK Common Stock - At-the-Market Offering In July 2017, the Company entered into an At-the-Market Issuance Sales Agreement (the “Sales Agreement”) with WestPark Capital, Inc. (“WestPark Capital”) pursuant to which the Company could sell, at its option, up to an aggregate of $5 million in shares of its common stock through WestPark Capital, as sales agent. Sales of shares under the Sales Agreement (the “2017 ATM Offering”) were made, in accordance with one or more placement notices delivered by the Company to WestPark Capital, which notices set parameters under which shares could be sold. The 2017 ATM Offering was made pursuant to a shelf registration statement by methods deemed to be “at the market,” as defined in Rule 415 promulgated under the Securities Act of 1933. The Company paid WestPark a commission in cash equal to 3% of the gross proceeds from the sale of shares in the 2017 ATM Offering. Additionally, the Company reimbursed WestPark Capital for $25,000 of expenses incurred in connection with the 2017 ATM Offering. In October 2018, the Company entered into another Sales Agreement with WestPark Capital pursuant to which the Company could sell (the “2018 ATM Offering”), at its option, up to an aggregate of $1.9 million in shares of its common stock through WestPark Capital, as sales agent. The terms of the 2018 ATM Offering were substantially identical to those of the 2017 ATM Offering. The Company reimbursed WestPark Capital for $18,000 of expenses incurred in connection with the 2018 ATM Offering. During the year ended December 31, 2018, in connection with the 2017 and 2018 ATM Offerings, the Company sold an aggregate of 2,433,963 shares of its common stock and received net proceeds of $747,205, net of commissions and expenses. In May 2019, the Company entered into another Sales Agreement with WestPark Capital pursuant to which the Company could sell (the “2019 ATM Offering”), at its option, up to an aggregate of $5.2 million in shares of its common stock through WestPark Capital, as sales agent. The terms of the 2019 ATM Offering were substantially identical to those of the 2017 ATM Offering. The Company reimbursed WestPark Capital for $18,000 of expenses incurred in connection with the 2019 ATM Offering. During the year ended December 31, 2019, in connection with the 2019 ATM Offering, the Company sold an aggregate of 3,472,506 shares of its common stock and received net proceeds of $606,960, net of commissions and expenses. In January 2020, the Company sold an aggregate of 21,059,499 shares in connection with the 2019 ATM Offering and received proceeds, net of commissions and expenses, of $4,376,549. Preferred Stock The Company has authorized 10,000,000 shares of preferred stock with a par value of $0.001. The Board of Directors shall determine the designations, rights, preferences, privileges and voting rights of the preferred stock as well as any restrictions and qualifications thereon. As of December 31, 2019, the Company had 1,085 shares of 12.0% Series A Convertible Preferred Stock and 835 shares of 12.0% Series B Convertible Preferred Stock issued and outstanding. 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 the Company’s 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. During 2019 and 2018, respectively, the Company paid $129,450 and $132,900 of dividends on its Series A Preferred Stock. During 2019 and 2018, respectively, 0 and 90 shares of Series A Preferred Stock were converted to 0 and 450,000 shares of common stock. At December 31, 2019, there were 1,085 shares of Series A Preferred Stock issued and outstanding. Series B Convertible Preferred Stock 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 “Series B 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 the Company’s 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. During 2019 and 2018, respectively, the Company paid $100,950 and $106,050 of dividends on its Series B Preferred Stock. During 2019 and 2018, respectively, 0 and 60 shares of Series B Preferred Stock were converted to 0 and 166,667 shares of common stock. At December 31, 2019, there were 835 shares of Series B Preferred Stock issued and outstanding. Warrants Consultant Warrants. Bridge Loan Warrants A summary of warrant activity and related information for 2019 and 2018 is presented below: Warrants Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at December 31, 2017 3,651,680 $ 0.44 Issued — — Exercised — — Expired (3,601,680 ) 0.44 Outstanding at December 31, 2018 50,000 $ 0.55 $ Issued 1,180,000 0.20 Exercised — — Expired — — Outstanding at December 31, 2019 1,230,000 $ 0.21 $ — Exercisable at December 31, 2019 1,192,500 $ 0.21 $ — |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Taxes | NOTE 10—TAXES The following table sets forth a reconciliation of the statutory federal income tax for the years ended December 31, 2019 and 2018. 2019 2018 Income (loss) before income taxes $ (2,515,694 ) $ (251,336 ) Income tax expense (benefit) computed at statutory rates $ (528,296 ) $ (52,781 ) Permanent differences, nondeductible expenses 376 405 Increase (decrease) in valuation allowance 613,162 (1,386,204 ) State and Local Taxes — 6,548 Other adjustment 2,103 1,090,595 Deferred True-Up (78,112 ) 341,437 ASC 842 lease standard adoption (9,233 ) — Tax provision $ — $ — Total provision Foreign $ — $ — Total provision (benefit) $ — $ — For years beginning January 1, 2018, the Tax Cuts and Jobs Act (“the Act’) includes significant changes to the U.S. corporate income tax system including the reduction of the corporate tax rate from 35% to 21%. At December 31, 2019 the Company has a federal tax loss carry forward of $54,295,837 and a foreign tax credit carry forward of $505,745, both of which have been fully reserved. The tax effects of the temporary differences between financial statement income and taxable income are recognized as a deferred tax asset and liabilities. Significant components of the deferred tax asset and liability as of December 31, 2019 and 2018 are set out below. 2019 2018 Non-Current Deferred tax assets: Net operating loss carry forward $ 11,481,979 $ 11,128,619 Foreign tax credit carry forward 505,745 505,745 Deferred state tax 13,966 13,966 Stock compensation 502,210 471,534 Book in excess of tax depreciation, depletion and capitalization methods on oil and gas properties (661,614 ) (883,220 ) Other (196,560 ) (196,560 ) ASC 842 lease standard – building lease 7,520 — Colombia future tax obligations — — Total Non-Current Deferred tax assets 11,653,246 11,040,084 Valuation Allowance (11,653,246 ) (11,040,084 ) Net deferred tax asset $ — $ — Schedule of Net Operating Loss Carryforwards The Company is currently subject to a three-year statute of limitation for federal tax purposes and, in general, three to four-year statute of limitation for state tax purposes. State NOL expiration will occur beginning in 2019 and Federal NOL expiration will begin in 2035. Under the Tax Cuts and Jobs Act of 2017, net operating losses incurred for tax years beginning after December 31, 2017 will have no expiration date but utilization will be limited to 80% of taxable income. For losses generated prior to January 1, 2018, there will be no limitation on the utilization, but there is an expiration on the carryforward of 20 years for federal tax purposes. Foreign Income Taxes The Company owns direct ownership in several properties in Colombia operated by Hupecol. Colombia’s current income tax rate is 25%. During 2019 and 2018, the Company recorded no foreign tax expense. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11—COMMITMENTS AND CONTINGENCIES Lease Commitment The Company leases office facilities under an operating lease agreement that expires October 31, 2022. The implementation of ASU 842 resulted in a right of use asset of $281,489 and related lease liability of $317,300 (of which $97,890 was classified as current on the consolidated balance sheet) as of December 31, 2019. During the year ended December 31, 2019, the operating cash outflows related to operating lease liabilities were $182,539 and the expense for the amortization of the right of use asset for operating leases was $76,495. As of December 31, 2019, the Company’s operating lease had a weighted-average remaining term of 3.1 years and a weighted average discount rate of 12%. Below is a summary of the Company’s right of use assets and liabilities as of December 31, 2019: Right of use asset $ 281,489 Operating lease, current liability $ 97,890 Long-term operating lease liability 219,410 Total lease liability $ 317,300 During the years ended December 31, 2019 and 2018, the Company recognized operating lease expense of $120,193 and $129,370, respectively, which is included in general and administrative expenses in the Company’s consolidated statements of operations. 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. Environmental Contingencies The Company’s oil and natural gas operations are subject to stringent federal, state and local laws and regulations relating to the release or disposal of materials into the environment or otherwise relating to environmental protection. These laws and regulations may require the acquisition of a permit before drilling commences, restrict the types, quantities and concentration of substances that can be released into the environment in connection with drilling and production activities, limit or prohibit drilling activities on certain lands lying within wilderness, wetlands and other protected areas, and impose substantial liabilities for pollution resulting from our operations. Failure to comply with these laws and regulations may result in the assessment of administrative, civil and criminal penalties, incurrence of investigatory or remedial obligations or the imposition of injunctive relief. Changes in environmental laws and regulations occur frequently, and any changes that result in more stringent or costly waste handling, storage, transport, disposal or cleanup requirements could require the Company to make significant expenditures to maintain compliance, and may otherwise have a material adverse effect on its results of operations, competitive position or financial condition as well as the industry in general. Under these environmental laws and regulations, the Company could be held strictly liable for the removal or remediation of previously released materials or property contamination regardless of whether the Company was responsible for the release or if its operations were standard in the industry at the time they were performed. The Company maintains insurance coverage, which it believes is customary in the industry, although the Company is not fully insured against all environmental risks. Development Commitments During the ordinary course of oil and gas prospect development, the Company commits to a proportionate share for the cost of acquiring mineral interests, drilling exploratory or development wells and acquiring seismic and geological information. Production Incentive Arrangements and ORRIs In conjunction with our efforts to secure oil and gas prospects, financing and services, we have, from time to time, granted overriding royalty interests (“ORRI”) in various properties and have adopted a Production Incentive Compensation Plan under which grant interests in pools, which may take the form of ORRIs, to provide additional incentive identify and secure attractive oil and gas properties. Production Incentive Compensation Plan. Under that Plan, the committee may establish one or more Pools and designate employees and consultants to participate in those Pools and designate prospects and wells, and a defined percentage of the Company’s revenues from those wells, to fund those Pools. Only prospects acquired on or after establishment of the Plan, and excluding all prospects in Colombia, may be designated to fund a Pool. The maximum percentage of the Company’s share of revenues from a well that may be designated to fund a Pool is 2% (the “Pool Cap”); provided, however, that with respect to wells with a net revenue interest to the 8/8 of less than 73%, the Pool Cap with respect to such wells shall be reduced on a 1-for-1 basis such that no portion of the Company’s revenues from a well may be designated to fund a Pool if the NRI is 71% or less. Designated participants in a Pool will be assigned a specific percentage out of the Company’s revenues assigned to the Pool and will be paid that percentage of such revenues from all wells designated to such Pool and spud during that participant’s employment or services with the Company. In no event may the percentage assigned to the Company’s chief executive officer relative to any well within a Pool exceed one-half of the applicable Pool Cap for that well. Payouts of revenues funded into Pools shall be made to participants not later than 60 days following year end, subject to the committee’s right to make partial interim payouts. Participants will continue to receive their percentage share of revenues from wells included in a Pool and spud during the term of their employment or service so long as revenues continue to be derived by the Company from those wells even after termination of employment or services of the Participant; provided, however, that a participant’s interest in all Pools shall terminate on the date of termination of employment or services where such termination is for cause. In the event of certain changes in control of the Company, the acquirer or survivor of such transaction must assume all obligations under the Plan; provided, however, that in lieu of such assumption obligation, the committee may, at its sole discretion, assign overriding royalty interests in wells to substantially mirror the rights of participants under the Plan. Similarly, the committee may, at any time, assign overriding royalty interests in wells in settlement of obligations under the Plan. The Plan is administered by the Company’s compensation committee which shall consult with the Company’s chief executive officer relative to Pool participants, prospects, wells and interests assign although the committee will have final and absolute authority to make all such determinations. During 2019, a Pool was established under the Plan representing an aggregate of 1% of the Company’s interest in the Company’s Northern Shelf Permian Basin acreage. The Company records amounts payable under the plan as a reduction to revenue as revenues are recognized from prospects included in pools covered by the plan based on the participants’ interest in such prospect revenues and records the same as accounts payable until such time as such amounts are paid out. ORRI Grants Payments made by the Company under the Plan and ORRI’s totaled $84 and $1,439 in 2019 and 2018, respectively. As of December 31, 2019 and 2018, the Company had accrued $0 and $0, respectively, under the Plan as accounts payable. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 12—SUBSEQUENT EVENTS In January 2020, the Company sold an aggregate of 21,059,499 shares in the 2019 ATM Offering and received proceeds, net of commissions and expenses, of $4,376,549. |
Geographical Information
Geographical Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Geographical Information | NOTE 13—GEOGRAPHICAL INFORMATION The Company currently has operations in two geographical areas, the United States and Colombia. Revenues for the years ended December 31, 2019 and 2018 and long-lived assets as of December 31, 2019 and 2018 attributable to each geographical area are presented below: 2019 2018 Revenues Long Lived Assets, Net Revenues Long Lived Assets, Net North America $ 997,992 $ 4,026,429 $ 2,243,325 $ 4,540,309 South America — 2,343,126 — 2,321,170 Total $ 997,992 $ 6,369,555 $ 2,243,325 $ 6,861,479 |
Supplemental Information on Oil
Supplemental Information on Oil and Gas Exploration, Development and Production Activities (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Extractive Industries [Abstract] | |
Supplemental Information on Oil and Gas Exploration, Development and Production Activities (Unaudited) | NOTE 14—SUPPLEMENTAL INFORMATION ON OIL AND GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED) This footnote provides unaudited information required by FASB ASC Topic 932, Extractive Activities—Oil and Gas Geographical Data The following table shows the Company’s oil and gas revenues and lease operating expenses, which excludes the joint venture expenses incurred in South America, by geographic area: 2019 2018 Revenues North America $ 997,992 $ 2,243,325 South America — — $ 997,992 $ 2,243,325 Production Cost North America $ 789,708 $ 914,269 South America — — $ 789,708 $ 914,269 Capital Costs Capitalized costs and accumulated depletion relating to the Company’s oil and gas producing activities as of December 31, 2019, all of which are onshore properties located in the United States and Colombia, South America are summarized below: United States South Total Unproved properties not being amortized $ 135,330 $ 2,343,126 $ 2,478,456 Proved properties being amortized 11,613,538 49,454,702 61,068,240 Accumulated depreciation, depletion, amortization and impairment (7,772,439 ) (49,454,702 ) (57,177,141 ) Net capitalized costs $ 4,026,429 $ 2,343,126 $ 6,369,555 Amortization Rate The amortization rate per unit based on barrel of oil equivalents was $13.24 for the United States and $0 for South America for the year ended December 31, 2019. Acquisition, Exploration and Development Costs Incurred Costs incurred in oil and gas property acquisition, exploration and development activities as of December 31, 2019 and 2018 are summarized below: 2019 United States South America Property acquisition costs: Proved $ 531,417 $ — Unproved — 21,957 Exploration costs — — Development costs 138,945 — Total costs incurred $ 670,362 $ 21,957 2018 United States South America Property acquisition costs: Proved $ 258,352 $ — Unproved 135,329 11,829 Exploration costs — — Development costs — — Total costs incurred $ 393,681 $ 11,829 Reserve Information and Related Standardized Measure of Discounted Future Net Cash Flows The unaudited supplemental information on oil and gas exploration and production activities has been presented in accordance with reserve estimation and disclosures rules issued by the SEC in 2008. Under those rules, average first-day-of-the-month price during the 12-month period before the end of the year are used when estimating whether reserve quantities are economical to produce. This same 12-month average price is also used in calculating the aggregate amount of (and changes in) future cash inflows related to the standardized measure of discounted future net cash flows. The rules also allow for the use of reliable technology to estimate proved oil and gas reserves if those technologies have been demonstrated to result in reliable conclusions about reserve volumes. Disclosures by geographic area include the United States and South America, which consists of our interests in Colombia. The supplemental unaudited presentation of proved reserve quantities and related standardized measure of discounted future net cash flows provides estimates only and does not purport to reflect realizable values or fair market values of the Company’s reserves. Volumes reported for proved reserves are based on reasonable estimates. These estimates are consistent with current knowledge of the characteristics and production history of the reserves. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries are more imprecise than those of producing oil and gas properties. Accordingly, significant changes to these estimates can be expected as future information becomes available. Proved reserves are those estimated reserves of crude oil (including condensate and natural gas liquids) and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are those expected to be recovered through existing wells, equipment, and operating methods. The reserve estimates set forth below were prepared by Russell K. Hall and Associates, Inc. (“R.K. Hall”) and Lonquist & Co., LLC (“Lonquist”), utilizing reserve definitions and pricing requirements prescribed by the SEC. R.K. Hall and Lonquist are independent professional engineering firms specializing in the technical and financial evaluation of oil and gas assets. R.K. Hall’s report was conducted under the direction of Russell K. Hall, founder and President of R.K. Hall. Mr. Hall holds a BS in Mechanical Engineering from the University of Oklahoma and is a registered professional engineer with more than 30 years of experience in reserve evaluation services. Lonquist’s report was conducted under the direction of Don E. Charbula, P.E., Vice President of Lonquist. Mr. Charbula holds a BS in Petroleum Engineering from The University of Texas at Austin and is a registered professional engineer with more than 30 years of experience in production engineering, reservoir engineering, acquisitions and divestments, field operations and management. R.K. Hall, Lonquist and their respective employees have no interest in the Company, and were objective in determining the results of the Company’s reserves. Lonquist used a combination of production performance, offset analogies, seismic data and their interpretation, subsurface geologic data and core data, along with estimated future operating and development costs as provided by the Company and based upon historical costs adjusted for known future changes in operations or development plans, to estimate our reserves. The Company does not operate any of its oil and gas properties. Total estimated proved developed and undeveloped reserves by product type and the changes therein are set forth below for the years indicated. United States South America Total Gas (mcf) Oil (bbls) Gas (mcf) Oil (bbls) Gas (mcf) Oil (bbls) Total proved reserves Balance December 31, 2017 2,840,061 391,213 — — 2,840,061 391,213 Revisions of prior estimates 136,932 (16,674 ) — — 136,932 (16,674 ) Production (253,053 ) (23,842 ) — — (253,053 ) (23,842 ) Balance December 31, 2018 2,723,940 350,697 — — 2,723,940 350,697 Discoveries — — — — Revisions to prior estimates (596,642 ) (89,787 ) — — (596,642 ) (89,787 ) Production (116,629 ) (13,674 ) — — (116,629 ) (13,674 ) Balance December 31, 2019 2,010,669 247,236 — — 2,010,669 247,236 Proved developed reserves at December 31, 2018 1,544,383 107,548 — — 1,544,833 107,548 at December 31, 2019 1,254,526 91,746 — — 1,254,526 91,746 Proved undeveloped reserves at December 31, 2018 1,179,557 242,949 — — 1,179,557 242,949 at December 31, 2019 756,143 155,490 — — 756,143 155,490 As of December 31, 2019, the Company had proved undeveloped (“PUD”) reserves totaling 155,490 bbls and 756,143 mcf. As of December 31, 2018, the Company had PUD reserves totaling 242,949 bbls and 1,179,557 mcf. No PUD reserves were converted to proved developed producing reserves in 2019 or 2018. The standardized measure of discounted future net cash flows relating to proved oil and gas reserves is computed using average first-day-of the-month prices for oil and gas during the preceding 12 month period (with consideration of price changes only to the extent provided by contractual arrangements), applied to the estimated future production of proved oil and gas reserves, less estimated future expenditures (based on year-end costs) to be incurred in developing and producing the proved reserves, less estimated related future income tax expenses (based on year-end statutory tax rates, with consideration of future tax rates already legislated), and assuming continuation of existing economic conditions. Future income tax expenses give effect to permanent differences and tax credits but do not reflect the impact of continuing operations including property acquisitions and exploration. The estimated future cash flows are then discounted using a rate of ten percent a year to reflect the estimated timing of the future cash flows. Standardized measure of discounted future net cash flows at December 31, 2019: United States South America Total Future cash flows from sales of oil and gas $ 16,199,011 $ — $ 16,199,011 Future production cost (4,665,423 ) — (4,665,423 ) Future development cost (3,076,020 ) — (3,076,020 ) Future net cash flows 8,457,568 — 8,457,568 10% annual discount for timing of cash flow (4,891,475 ) — (4,891,475 ) Standardized measure of discounted future net cash flow relating to proved oil and gas reserves $ 3,566,093 $ — $ 3,566,093 Changes in standardized measure: Change due to current year operations $ (208,284 ) $ — $ (208,284 ) Change due to revisions in standardized variables: Accretion of discount 771,465 — 771,465 Net change in sales and transfer price, net of production costs (3,358,522 ) — (3,358,522 ) Net change in future development cost 1,558,788 — (1,558,788 ) Discoveries — — — Revision and others (1,540,161 ) — (1,540,161 ) Changes in production rates and other (1,371,841 ) — (1,371,841 ) Net (4,148,555 ) — (4,148,555 ) Beginning of year 7,714,648 — 7,714,648 End of year $ 3,566,093 $ — $ 3,566,093 Standardized measure of discounted future net cash flows at December 31, 2018: United States South America Total Future cash flows from sales of oil and gas $ 31,125,778 $ — $ 31,125,778 Future production cost (7,611,052 ) — (7,611,052 ) Future development cost (4,758,170 ) — (4,758,170 ) Future net cash flows 18,756,556 — 18,756,556 10% annual discount for timing of cash flow (11,041,908 ) — (11,041,908 ) Standardized measure of discounted future net cash flow relating to proved oil and gas reserves $ 7,714,648 $ — $ 7,714,648 Changes in standardized measure: Change due to current year operations $ (1,465,985 ) $ — $ (1,465,985 ) Change due to revisions in standardized variables: Accretion of discount 684,886 — 684,886 Net change in sales and transfer price, net of production costs 1,656,330 — 1,656,330 Revision and others 84,038 — 84,038 Changes in production rates and other (93,476 ) — (93,476 ) Net 865,793 — 865,793 Beginning of year 6,848,855 — 6,848,855 End of year $ 7,714,648 $ — $ 7,714,648 |
Summarized Quarterly Financial
Summarized Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Financial Information (Unaudited) | NOTE 15—SUMMARIZED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Three Months Ended March 31, June 30, Sept. 30, Dec. 31, 2019 Operating revenue $ 250,720 $ 209,193 $ 264,935 $ 273,144 Loss from operations (240,987 ) (482,943 ) (284,445 ) (1,325,308 ) Net loss (239,620 ) (482,423 ) (304,633 ) (1,489,018 ) Loss per common share – basic $ (0.00 ) $ (0.01 ) $ (0.01 ) $ (0.02 ) Loss per common share – diluted $ (0.00 ) $ (0.01 ) $ (0.01 ) $ (0.02 ) 2018 Operating revenue $ 754,157 $ 574,580 $ 552,946 $ 474,977 Loss from operations (52,911 ) (146,259 ) (116,933 ) (21,888 ) Net income (loss) (52,911 ) (146,259 ) (116,831 ) 64,665 Income (loss) per common share – basic $ (0.00 ) $ (0.00 ) $ (0.00 ) $ 0.00 Income (loss) per common share – diluted $ (0.00 ) $ (0.00 ) $ (0.00 ) $ 0.00 |
Nature of Company and Summary_2
Nature of Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The accompanying consolidated financial statements include all accounts of HUSA 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. |
Liquidity and Capital Requirements | Liquidity and Capital Requirements 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 issuance date of these consolidated financial statements. The Company has incurred continuing losses since 2011, including a loss of $2,515,694 for the year ended December 31, 2019. However, during 2019, the Company raised, net of offering costs, $606,960 in its ATM offering. Subsequent to December 31, 2019, through the date hereof, the Company raised, net of offering costs, $4,376,549 in its ATM offering, thereby mitigating going concern considerations. The Company believes that it has the ability to fund, from cash on hand and through the subsequent equity financing, its operating costs and anticipated drilling operations for at least the next twelve months following the issuance of these financial statements. The actual timing and number of wells drilled during 2020 will be principally controlled by the operators of the Company’s acreage, based on a number of factors, including but not limited to availability of financing, performance of existing wells on the subject acreage, energy prices and industry condition and outlook, costs of drilling and completion services and equipment and other factors beyond the Company’s control or that of its operators. With the steep decline in energy prices in March 2020, due at least in part to the economic effects of the coronavirus, drilling operations are expected to be deferred until at least the second half of 2020 pending clarity as to the timing of economic recovery from the effects of the coronavirus. In the event that the Company pursues additional acreage acquisitions or expands its drilling plans, the Company may be required to secure additional funding beyond our resources on hand. While the Company may, among other efforts, seek additional funding from “at-the-market” sales of common stock, and private sales of equity and debt securities, it presently does not have any commitments to provide additional funding (beyond what was already received subsequent to December 31, 2019 and described above), and there can be no assurance that the Company can secure the necessary capital to fund its share of drilling, acquisition or other costs on acceptable terms or at all. If, for any reason, the Company is unable to fund its share of drilling and completion costs, it would forego participation in one or more of such wells. In such event, the Company may be subject to penalties or to the possible loss of some of its rights and interests in prospects with respect to which it fails to satisfy funding obligations and it may be required to curtail operations and forego opportunities. |
General Principles and Use of Estimates | General 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 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. |
Reclassification | Reclassification Certain amounts for prior periods have been reclassified to conform to the current presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits and cash investments with initial maturity dates of less than three months when purchased. As of December 31, 2019 and 2018, the Company had no cash equivalents outstanding. |
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 marketable securities (if any). The Company had no cash deposits in excess of the FDIC’s current insured limit of $250,000 at December 31, 2019 for interest bearing accounts. The Company also had cash deposits of approximately $3,600 in Colombian banks at December 31, 2019 that are not insured by the FDIC. The Company has not experienced any losses on its deposits of cash and cash equivalents. |
Revenue Recognition | Revenue Recognition ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” Revenue Recognition (Topic 605) The Company’s revenue is comprised principally of revenue from exploration and production activities. The Company’s oil is sold primarily to marketers, gatherers, and refiners. Natural gas is sold primarily to interstate and intrastate natural-gas pipelines, direct end-users, industrial users, local distribution companies, and natural-gas marketers. NGLs are sold primarily to direct end-users, refiners, and marketers. Payment is generally received from the customer in the month following delivery. Contracts with customers have varying terms, including spot sales or month-to-month contracts, contracts with a finite term, and life-of-field contracts where all production from a well or group of wells is sold to one or more customers. The Company recognizes sales revenues for oil, natural gas, and NGLs based on the amount of each product sold to a customer when control transfers to the customer. Generally, control transfers at the time of delivery to the customer at a pipeline interconnect, the tailgate of a processing facility, or as a tanker lifting is completed. Revenue is measured based on the contract price, which may be index-based or fixed, and may include adjustments for market differentials and downstream costs incurred by the customer, including gathering, transportation, and fuel costs. Revenues are recognized for the sale of the Company’s net share of production volumes. |
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 in common shares that then shared in the earnings of the Company. In periods in which the Company reports a net loss, dilutive securities are excluded from the calculation of diluted net loss per share amounts as the effect would be anti-dilutive. For the years ended December 31, 2019 and 2018, the following convertible preferred stock and warrants and options to purchase shares of common stock were excluded from the computation of diluted net loss per share, as the inclusion of such shares would be anti-dilutive: Year Ended December 31, 2019 2018 Series A Convertible Preferred Stock 5,425,000 5,425,000 Series B Convertible Preferred Stock 2,320,556 2,320,556 Stock warrants 1,230,000 12,500 Stock options 6,012,166 4,978,832 Totals 14,987,722 12,736,888 |
Accounts Receivable | Accounts Receivable Accounts receivable – other and escrow receivables have been evaluated for collectability and are recorded at their net realizable values. |
Allowance for Accounts Receivable | Allowance for Accounts Receivable The Company regularly reviews outstanding receivables and provides for estimated losses through an allowance for doubtful accounts when necessary. In evaluating the need for an allowance, the Company makes judgments regarding its customers’ ability to make required payments, economic events and other factors. As the financial condition of these parties change, circumstances develop or additional information becomes available, an allowance for doubtful accounts may be required. When the Company determines that a customer may not be able to make required payments, the Company increases the allowance through a charge to income in the period in which that determination is made. As of December 31, 2019 and 2018, the Company evaluated their receivables and determined that no allowance was necessary. |
Oil and Gas Properties | Oil and Gas Properties The Company uses the full cost method of accounting for exploration and development activities as defined by the SEC. Under this method of accounting, the costs for unsuccessful, as well as successful, exploration and development activities are capitalized as oil and gas properties. Capitalized costs include lease acquisition, geological and geophysical work, delay rentals, costs of drilling, completing and equipping the wells and any internal costs that are directly related to acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Proceeds from the sale or other disposition of oil and gas properties are generally treated as a reduction in the capitalized costs of oil and gas properties, unless the impact of such a reduction would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to a country. The Company categorizes its full cost pools as costs subject to amortization and costs not being amortized. The sum of net capitalized costs subject to amortization, including estimated future development and abandonment costs, are amortized using the unit-of-production method. Depletion and amortization for oil and gas properties was $438,552 and $357,822 for the years ended December 31, 2019 and 2018, respectively and accumulated amortization, depreciation and impairment was $57,177,141 and $55,992,898 at December 31, 2019 and 2018, respectively. |
Costs Excluded | Costs Excluded Oil and gas properties include costs that are excluded from capitalized costs being amortized. These amounts represent costs of investments in unproved properties. The Company excludes these costs on a country-by-country basis until proved reserves are found or until it is determined that the costs are impaired. All costs excluded are reviewed quarterly to determine if impairment has occurred. The amount of any impairment is transferred to the costs subject to amortization. |
Ceiling Test | Ceiling Test Under the full cost method of accounting, a ceiling test is performed each quarter. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X. The ceiling test determines a limit, on a country-by-country basis, on the book value of oil and gas properties. The capitalized costs of proved oil and gas properties, net of accumulated depreciation, depletion, amortization and impairment (“DD&A”) |
Furniture and Equipment | Furniture and Equipment Office equipment is stated at original cost and is depreciated on the straight-line basis over the useful life of the assets, which ranges from three to five years. Office equipment having an original cost basis of $90,004 was fully depreciated as of January 1, 2018. Therefore, the related depreciation expense was $0 and $0 for 2019 and 2018, respectively, and accumulated depreciation was $90,004 and $90,004 at December 31, 2019 and 2018, respectively. |
Asset Retirement Obligations | Asset Retirement Obligations For the Company, asset retirement obligations (“ARO”) represent the systematic, monthly accretion and depreciation of future abandonment costs of tangible assets such as platforms, wells, service assets, pipelines, and other facilities. The fair value of a liability for an asset’s retirement obligation is recorded in the period in which it is incurred if a reasonable estimate of fair value can be made, and that the corresponding cost is capitalized as part of the carrying amount of the related long-lived asset. The liability is accreted to its then present value each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount, an adjustment is made to the full cost pool, with no gain or loss recognized, unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves. Although the Company’s domestic policy with respect to ARO is to assign depleted wells to a salvager for the assumption of abandonment obligations before the wells have reached their economic limits, the Company has estimated its future ARO obligation with respect to its domestic operations. The ARO assets, which are carried on the balance sheet as part of the full cost pool, have been included in our amortization base for the purposes of calculating depreciation, depletion and amortization expense. For the purposes of calculating the ceiling test, the future cash outflows associated with settling the ARO liability have been included in the computation of the discounted present value of estimated future net revenues. Asset retirement obligations are classified as Level 3 (unobservable inputs) fair value measurements. |
Joint Venture Expense | Joint Venture Expense Joint venture expense reflects the indirect field operating and regional administrative expenses billed by the operator of the Colombian concessions. |
Income Taxes | Income Taxes Deferred income taxes are provided on a liability method whereby deferred tax assets and liabilities are established for the difference between the financial reporting and income tax basis of assets and liabilities as well as operating loss and tax credit carry forwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
Stock-Based Compensation | Stock-Based Compensation The Company measures the cost of employee services received in exchange for stock and stock options based on the grant date fair value of the awards. The Company determines the fair value of stock option grants using the Black-Scholes option pricing model. The Company determines the fair value of shares of non-vested stock based on the last quoted price of our stock on the date of the share grant. The fair value determined represents the cost for the award and is recognized over the vesting period during which an employee is required to provide service in exchange for the award. As stock-based compensation expense is recognized based on awards ultimately expected to vest, the Company reduces the expense for estimated forfeitures based on historical forfeiture rates. Previously recognized compensation costs may be adjusted to reflect the actual forfeiture rate for the entire award at the end of the vesting period. Excess tax benefits, if any, are recognized as an addition to paid-in capital. |
Concentration of Risk | Concentration of Risk As a non-operator oil and gas exploration and production company, and through its interest in a limited liability company (“Hupecol”) and concessions operated by Hupecol in the South American country of Colombia, the Company is dependent on the personnel, management and resources of the operators of its various properties to operate efficiently and effectively. As a non-operating joint interest owner, the Company has a right of investment refusal on specific projects and the right to examine and contest its division of costs and revenues determined by the operator. The Company’s Permian Basin, Texas properties accounted for all of the Company’s drilling operations and substantially all of its oil and gas investments in 2019 and 2018. In the event of a significant negative change in operations or operating outlook pertaining to the Company’s Permian Basin properties, the Company may be forced to abandon or suspend such operations, which abandonment or suspension could be materially harmful to the Company. Additionally, the Company currently has interests in concessions in Colombia and expects to be active in Colombia for the foreseeable future. The political climate in Colombia is unstable and could be subject to radical change over a very short period of time. In the event of a significant negative change in political and economic stability in the vicinity of the Company’s Colombian operations, the Company may be forced to abandon or suspend its efforts. Either of such events could be harmful to the Company’s expected business prospects. For 2019, the Company’s oil production from the its mineral interests was sold to U.S. oil marketing companies based on the highest bid. The gas production is sold to U.S. natural gas marketing companies based on the highest bid. No purchaser accounted for more than 10% of our oil and gas sales. The Company reviews accounts receivable balances when circumstances indicate a balance may not be collectible. Based upon the Company’s review, no allowance for uncollectible accounts was deemed necessary at December 31, 2019 and 2018, respectively. |
Recent Accounting Developments | Recent Accounting Developments In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). Under this new guidance, lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of greater than twelve months. The guidance requires qualitative disclosures along with certain specific quantitative disclosures for both lessees and lessors. The ASU and its related amendments are effective for fiscal years beginning after December 15, 2018, with early adoption permitted, and are effective for interim periods in the year of adoption. The Company has adopted the new lease standard using the new transition option issued under the amendments in ASU 2018-11, Leases, which allowed the Company to continue to apply the legacy guidance in Accounting Standards Codification (ASC) 840, Leases, in the comparative periods presented in the year of adoption. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The Company evaluated the impact of this new guidance and reviewed lease or possible lease contracts and evaluated contract related processes. The Company adopted ASU 2016-02 effective January 1, 2019 and recorded an initial right-of-use asset and liability for its operating leases of $357,985. In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”. The amendments in this update are to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. The areas for simplification in this Update involve several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, to include share-based payment transactions for acquiring goods and services from nonemployees. Some of the areas for simplification apply only to nonpublic entities. The amendments in this update is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company adopted ASU 2018-07 effective January 1, 2019 and recognized no significant impact to its statements of operations or cash flows as a result of the adoption of this standard. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”. The amendments in this update are to improve the effectiveness of disclosures in the notes to the financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each entity’s financial statements. The amendments in this Update apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not expect that this guidance will have a material impact on its consolidated financial statements. The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on its financial position, results of operations, or cash flows. |
Subsequent Events | Subsequent Events The Company evaluated subsequent events for disclosure from December 31, 2019 through the date the consolidated financial statements were issued. |
Nature of Company and Summary_3
Nature of Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Computation of Diluted Net Loss Per Share | For the years ended December 31, 2019 and 2018, the following convertible preferred stock and warrants and options to purchase shares of common stock were excluded from the computation of diluted net loss per share, as the inclusion of such shares would be anti-dilutive: Year Ended December 31, 2019 2018 Series A Convertible Preferred Stock 5,425,000 5,425,000 Series B Convertible Preferred Stock 2,320,556 2,320,556 Stock warrants 1,230,000 12,500 Stock options 6,012,166 4,978,832 Totals 14,987,722 12,736,888 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregates Revenue by Significant Product | The following table disaggregates revenue by significant product type for the years ended December 31, 2019 and 2018: Year Ended December 31, 2019 2018 Oil sales $ 762,039 $ 1,416,946 Natural gas sales 79,889 663,389 Natural gas liquids sales 156,064 162,987 Lease bonus revenue — 113,335 Total revenue from customers $ 997,992 $ 2,356,660 |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Oil and Gas Property [Abstract] | |
Schedule of Evaluated Oil and Gas Properties Subject to Amortization | Evaluated oil and gas properties subject to amortization at December 31, 2019 included the following: United States South America Total Evaluated properties being amortized $ 11,613,538 $ 49,454,702 $ 61,068,240 Accumulated depreciation, depletion, amortization and impairment (7,722,439 ) (49,454,702 ) (57,177,141 ) Net capitalized costs $ 3,891,099 $ — $ 3,891,099 Evaluated oil and gas properties subject to amortization at December 31, 2018 included the following: United States South America Total Evaluated properties being amortized $ 10,943,176 $ 49,454,702 $ 60,397,878 Accumulated depreciation, depletion, amortization and impairment (6,538,196 ) (49,454,702 ) (55,992,898 ) Net capitalized costs $ 4,404,980 $ — $ 4,404,980 |
Schedule of Unevaluated Oil and Gas Properties Not Subject to Amortization | Unevaluated oil and gas properties not subject to amortization at December 31, 2019 included the following: United States South America Total Leasehold acquisition costs $ — $ 143,847 $ 143,847 Geological, geophysical, screening and evaluation costs 135,330 2,199,279 2,334,609 Total $ 135,330 $ 2,343,126 $ 2,478,456 Unevaluated oil and gas properties not subject to amortization at December 31, 2018 included the following: United States South America Total Leasehold acquisition costs $ — $ 141,318 $ 141,318 Geological, geophysical, screening and evaluation costs 135,329 2,179,852 2,315,181 Total $ 135,329 $ 2,321,170 $ 2,456,499 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes in Our Asset Retirement Liability | The following table describes changes in our asset retirement liability (“ARO”) during each of the years ended December 31, 2019 and 2018. 2019 2018 ARO liability at January 1 $ 38,754 $ 35,658 Accretion expense 5,432 3,096 ARO liability at December 31 $ 44,186 $ 38,754 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | Option activity during 2019 and 2018 was as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Outstanding at December 31, 2017 6,012,165 $ 1.86 Granted 1,658,333 $ 0.29 Exercised (250,000 ) $ 0.22 Forfeited (2,441,666 ) $ 3.79 Outstanding at December 31, 2018 4,978,832 $ 0.77 Granted 1,100,000 $ 0.22 Forfeited (66,666 ) $ 0.68 Outstanding at December 31, 2019 6,012,166 $ 0.67 6.02 $ — Exercisable at December 31, 2019 4,648,833 $ 0.80 5.06 $ — |
Schedule of Stock-based Compensation | The following table reflects stock-based compensation recorded by the Company for 2019 and 2018: 2019 2018 Stock-based compensation expense from stock options and warrants included in general and administrative expense $ 156,091 $ 96,616 Earnings per share effect of stock-based compensation expense $ (0.00 ) $ (0.00 ) |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Warrant Activity | A summary of warrant activity and related information for 2019 and 2018 is presented below: Warrants Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at December 31, 2017 3,651,680 $ 0.44 Issued — — Exercised — — Expired (3,601,680 ) 0.44 Outstanding at December 31, 2018 50,000 $ 0.55 $ Issued 1,180,000 0.20 Exercised — — Expired — — Outstanding at December 31, 2019 1,230,000 $ 0.21 $ — Exercisable at December 31, 2019 1,192,500 $ 0.21 $ — |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Statutory Federal Income Tax | The following table sets forth a reconciliation of the statutory federal income tax for the years ended December 31, 2019 and 2018. 2019 2018 Income (loss) before income taxes $ (2,515,694 ) $ (251,336 ) Income tax expense (benefit) computed at statutory rates $ (528,296 ) $ (52,781 ) Permanent differences, nondeductible expenses 376 405 Increase (decrease) in valuation allowance 613,162 (1,386,204 ) State and Local Taxes — 6,548 Other adjustment 2,103 1,090,595 Deferred True-Up (78,112 ) 341,437 ASC 842 lease standard adoption (9,233 ) — Tax provision $ — $ — Total provision Foreign $ — $ — Total provision (benefit) $ — $ — |
Significant Components of Deferred Tax Asset and Liability | Significant components of the deferred tax asset and liability as of December 31, 2019 and 2018 are set out below. 2019 2018 Non-Current Deferred tax assets: Net operating loss carry forward $ 11,481,979 $ 11,128,619 Foreign tax credit carry forward 505,745 505,745 Deferred state tax 13,966 13,966 Stock compensation 502,210 471,534 Book in excess of tax depreciation, depletion and capitalization methods on oil and gas properties (661,614 ) (883,220 ) Other (196,560 ) (196,560 ) ASC 842 lease standard – building lease 7,520 — Colombia future tax obligations — — Total Non-Current Deferred tax assets 11,653,246 11,040,084 Valuation Allowance (11,653,246 ) (11,040,084 ) Net deferred tax asset $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Right of Use Assets and Liabilities | Below is a summary of the Company’s right of use assets and liabilities as of December 31, 2019: Right of use asset $ 281,489 Operating lease, current liability $ 97,890 Long-term operating lease liability 219,410 Total lease liability $ 317,300 |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenues and Long Lived Assets Attributable to Geographical Area | Revenues for the years ended December 31, 2019 and 2018 and long-lived assets as of December 31, 2019 and 2018 attributable to each geographical area are presented below: 2019 2018 Revenues Long Lived Assets, Net Revenues Long Lived Assets, Net North America $ 997,992 $ 4,026,429 $ 2,243,325 $ 4,540,309 South America — 2,343,126 — 2,321,170 Total $ 997,992 $ 6,369,555 $ 2,243,325 $ 6,861,479 |
Supplemental Information on O_2
Supplemental Information on Oil and Gas Exploration, Development and Production Activities (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Extractive Industries [Abstract] | |
Schedule of Oil and Gas Revenues and Lease Operating Expenses | The following table shows the Company’s oil and gas revenues and lease operating expenses, which excludes the joint venture expenses incurred in South America, by geographic area: 2019 2018 Revenues North America $ 997,992 $ 2,243,325 South America — — $ 997,992 $ 2,243,325 Production Cost North America $ 761,439 $ 914,269 South America — — $ 761,439 $ 914,269 |
Capitalized Costs and Accumulated Depletion Relating to Oil and Gas Producing Activities | Capitalized costs and accumulated depletion relating to the Company’s oil and gas producing activities as of December 31, 2019, all of which are onshore properties located in the United States and Colombia, South America are summarized below: United States South America Total Unproved properties not being amortized $ $ $ Proved properties being amortized Accumulated depreciation, depletion, amortization and impairment Net capitalized costs $ $ $ |
Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities | Costs incurred in oil and gas property acquisition, exploration and development activities as of December 31, 2019 and 2018 are summarized below: 2019 United States South America Property acquisition costs: Proved $ $ Unproved Exploration costs Development costs Total costs incurred $ $ 2018 United States South America Property acquisition costs: Proved $ 258,352 $ — Unproved 135,329 11,829 Exploration costs — — Development costs — — Total costs incurred $ 393,681 $ 11,829 |
Schedule of Proved Developed and Undeveloped Reserves by Product Type | Total estimated proved developed and undeveloped reserves by product type and the changes therein are set forth below for the years indicated. United States South America Total Gas (mcf) Oil (bbls) Gas (mcf) Oil (bbls) Gas (mcf) Oil (bbls) Total proved reserves Balance December 31, 2017 2,840,061 391,213 — — 2,840,061 391,213 Revisions of prior estimates 136,932 (16,674 ) — — 136,932 (16,674 ) Production (253,053 ) (23,842 ) — — (253,053 ) (23,842 ) Balance December 31, 2018 2,723,940 350,697 — — 2,723,940 350,697 Discoveries — — — — Revisions to prior estimates (596,642 ) (89,787 ) — — (596,642 ) (89,787 ) Production (116,629 ) (13,674 ) — — (116,329 ) (13,674 ) Balance December 31, 2019 2,010,669 247,236 — — 2,010,669 247,236 Proved developed reserves at December 31, 2018 1,544,383 107,548 — — 1,544,833 107,548 at December 31, 2019 1,254,556 91,624 — — 1,254,556 91,624 Proved undeveloped reserves at December 31, 2018 1,179,557 242,949 — — 1,179,557 242,949 at December 31, 2019 1,169,633 248,932 — — 1,169,633 248,932 |
Standardized Measure of Discounted Future Net Cash Flows | Standardized measure of discounted future net cash flows at December 31, 2019: United States South America Total Future cash flows from sales of oil and gas $ 16,199,011 $ — $ 16,199,011 Future production cost (4,665,423 ) — (4,665,423 ) Future development cost (3,076,020 ) — (3,076,020 ) Future net cash flows 8,457,568 — 8,457,568 10% annual discount for timing of cash flow (4,891,475 ) — 4,891,475 ) Standardized measure of discounted future net cash flow relating to proved oil and gas reserves $ 3,566,093 $ — $ 3,566,093 Changes in standardized measure: Change due to current year operations $ (208,248 ) $ — $ (208,248 Change due to revisions in standardized variables: Accretion of discount 771,403 — 771,403 Net change in sales and transfer price, net of production costs (3,358,251 ) — 3,358,251 Net change in future development cost (1,558,788 ) — (,1558,788 ) Discoveries — — — Revision and others (1,540,037 ) — (1,540,037 ) Changes in production rates and other (1,371,551 ) — (1,371,551 ) Net (6,125,130 ) — (6,125,130 ) Beginning of year 7,714,648 — 7,714,648 End of year $ 3,566,093 $ — $ 3,566,093 Standardized measure of discounted future net cash flows at December 31, 2018: United States South America Total Future cash flows from sales of oil and gas $ 31,125,778 $ — $ 31,125,778 Future production cost (7,611,052 ) — (7,611,052 ) Future development cost (4,758,170 ) — (4,758,170 ) Future net cash flows 18,756,556 — 18,756,556 10% annual discount for timing of cash flow (11,041,908 ) — (11,041,908 ) Standardized measure of discounted future net cash flow relating to proved oil and gas reserves $ 7,714,648 $ — $ 7,714,648 Changes in standardized measure: Change due to current year operations $ (1,465,985 ) $ — $ (1,465,985 ) Change due to revisions in standardized variables: Accretion of discount 684,886 — 684,886 Net change in sales and transfer price, net of production costs 1,656,330 — 1,656,330 Revision and others 84,038 — 84,038 Changes in production rates and other (93,476 ) — (93,476 ) Net 865,793 — 865,793 Beginning of year 6,848,855 — 6,848,855 End of year $ 7,714,648 $ — $ 7,714,648 |
Summarized Quarterly Financia_2
Summarized Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Financial Information | Three Months Ended March 31, June 30, Sept. 30, Dec. 31, 2019 Operating revenue $ 250,720 $ 209,193 $ 264,935 $ 273,142 Loss from operations (240,987 ) (482,943 ) (284,445 ) (1,325,433 ) Net loss (239,620 ) (482,423 ) (304,633 ) (1,489,143 ) Loss per common share – basic $ 0.00 $ 0.00 $ 0.00 $ 0.00 Loss per common share – diluted $ 0.00 $ 0.00 $ 0.00 $ 0.00 2018 Operating revenue $ 754,157 $ 574,580 $ 552,946 $ 474,977 Loss from operations (52,911 ) (146,259 ) (116,933 ) (21,888 ) Net income (loss) (52,911 ) (146,259 ) (116,831 ) 64,665 Loss per common share – basic $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.00 ) Loss per common share – diluted $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.00 ) |
Nature of Company and Summary_4
Nature of Company and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Jan. 02, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 02, 2019 | Jan. 02, 2018 |
Net loss | $ (1,489,018) | $ (304,633) | $ (482,423) | $ (239,620) | $ 64,665 | $ (116,831) | $ (146,259) | $ (52,911) | $ (2,515,694) | $ (251,336) | |||
Proceeds from atm offering | 606,960 | 747,205 | |||||||||||
Cash equivalents | |||||||||||||
Current insured limit on interest bearing accounts | 250,000 | 250,000 | |||||||||||
Depletion and amortization | 438,553 | 357,822 | |||||||||||
Accumulated amortization, depreciation and impairment | 57,267,145 | 56,082,902 | $ 57,267,145 | 56,082,902 | |||||||||
Discount rate, net of related tax effects | 10.00% | ||||||||||||
Impairment of oil and gas properties | |||||||||||||
Right-of-use asset | 281,489 | 281,489 | |||||||||||
Operating leases liability | 317,300 | 317,300 | |||||||||||
Accounting Standards Update 2016-02 [Member] | |||||||||||||
Right-of-use asset | $ 357,985 | ||||||||||||
Operating leases liability | $ 357,985 | ||||||||||||
Office Equipment [Member] | |||||||||||||
Depletion and amortization | 0 | 0 | |||||||||||
Accumulated amortization, depreciation and impairment | 90,004 | $ 90,004 | $ 90,004 | $ 90,004 | $ 90,004 | ||||||||
Office Equipment [Member] | Minimum [Member] | |||||||||||||
Estimated useful life | 3 years | ||||||||||||
Office Equipment [Member] | Maximum [Member] | |||||||||||||
Estimated useful life | 5 years | ||||||||||||
Oil and Gas [Member] | Minimum [Member] | Sales Revenue, Net [Member] | |||||||||||||
Concentration risk, percentage | 10.00% | ||||||||||||
Colombian Banks [Member] | |||||||||||||
Cash deposits insured fdic's | $ 3,600 | $ 3,600 | |||||||||||
Subsequent Event [Member] | |||||||||||||
Proceeds from atm offering | $ 4,376,549 |
Nature of Company and Summary_5
Nature of Company and Summary of Significant Accounting Policies - Schedule of Computation of Diluted Net Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Total | 14,987,722 | 12,736,888 |
Series A Convertible Preferred Stock [Member] | ||
Total | 5,425,000 | 5,425,000 |
Series B Convertible Preferred Stock [Member] | ||
Total | 2,320,556 | 2,320,556 |
Stock Warrants [Member] | ||
Total | 1,230,000 | 12,500 |
Stock Options [Member] | ||
Total | 6,012,166 | 4,978,832 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details Narrative) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligations |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Disaggregates Revenue by Significant Product (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Total revenue from customers | $ 997,992 | $ 2,243,325 |
Oil Sales [Member] | ||
Total revenue from customers | 762,039 | 1,416,946 |
Natural Gas Sales [Member] | ||
Total revenue from customers | 79,889 | 663,389 |
Natural Gas Liquids Sales [Member] | ||
Total revenue from customers | 156,064 | 162,987 |
Lease Bonus Revenue [Member] | ||
Total revenue from customers | $ 113,335 |
Revenue From Lease of Mineral_2
Revenue From Lease of Mineral Interests (Details Narrative) - East Baton Rouge Parish, Louisiana [Member] | 12 Months Ended |
Dec. 31, 2019USD ($)a | |
Percentage on mineral interest | 23.437% |
Area of land | 2,485 |
Operator/Lessee [Member] | |
Percentage on mineral interest | 5.27% |
Area of land | 743.94 |
Percentage of royalty | 22.50% |
Proceeds from lease bonus | $ | $ 113,335 |
Escrow Receivable (Details Narr
Escrow Receivable (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2016 | |
Escrow Receivable | |||
Allowance for escrow receivables | $ 262,016 | ||
Proceeds from recoveries of escrowed funds | $ 86,553 | ||
Non-recurring other income | $ 86,553 |
Oil and Gas Properties (Details
Oil and Gas Properties (Details Narrative) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Investment in development of oil and gas properties | $ 889,328 |
Acquisition of interest rate | 2.00% |
Acquisition and development cost of oil and gas properties | $ (138,945) |
Properties Not Subject to Amortization [Member] | |
Capitalized oil and gas properties | 21,957 |
Properties Subject to Amortization [Member] | |
Capitalized oil and gas properties | 670,362 |
Yoakum County, Texas [Member] | |
Acquisition and development cost of oil and gas properties | (531,417) |
Permian Basin [Member] | |
Acquisition and development cost of oil and gas properties | (197,009) |
Colombia [Member] | |
Acquisition and development cost of oil and gas properties | $ (21,957) |
Oil and Gas Properties - Schedu
Oil and Gas Properties - Schedule of Evaluated Oil and Gas Properties Subject to Amortization (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Accumulated depreciation, depletion, amortization and impairment | $ (57,177,141) | |
United States [Member] | ||
Accumulated depreciation, depletion, amortization and impairment | (7,772,439) | |
South America [Member] | ||
Accumulated depreciation, depletion, amortization and impairment | (49,454,702) | |
Oil and Gas Properties [Member] | ||
Evaluated properties being amortized | 61,068,240 | $ 60,397,878 |
Accumulated depreciation, depletion, amortization and impairment | (57,177,141) | (55,992,898) |
Net capitalized costs | 3,891,099 | 4,404,980 |
Oil and Gas Properties [Member] | United States [Member] | ||
Evaluated properties being amortized | 11,613,538 | 10,943,176 |
Accumulated depreciation, depletion, amortization and impairment | (7,722,439) | (6,538,196) |
Net capitalized costs | 3,891,099 | 4,404,980 |
Oil and Gas Properties [Member] | South America [Member] | ||
Evaluated properties being amortized | 49,454,702 | 49,454,702 |
Accumulated depreciation, depletion, amortization and impairment | (49,454,702) | (49,454,702) |
Net capitalized costs |
Oil and Gas Properties - Sche_2
Oil and Gas Properties - Schedule of Unevaluated Oil and Gas Properties Not Subject to Amortization (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Leasehold acquisition costs | $ 143,847 | $ 141,318 |
Geological, geophysical, screening and evaluation costs | 2,334,609 | 2,315,181 |
Total | 2,478,456 | 2,456,499 |
United States [Member] | ||
Leasehold acquisition costs | ||
Geological, geophysical, screening and evaluation costs | 135,330 | 135,329 |
Total | 135,330 | 135,329 |
South America [Member] | ||
Leasehold acquisition costs | 143,847 | 141,318 |
Geological, geophysical, screening and evaluation costs | 2,199,279 | 2,179,852 |
Total | $ 2,343,126 | $ 2,321,170 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Changes in Our Asset Retirement Liability (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
ARO liability at January 1 | $ 38,754 | $ 35,658 |
Accretion expense | 5,432 | 3,096 |
ARO liability at December 31 | $ 44,186 | $ 38,754 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortization of debt discount | $ 162,533 | |||
Maximum [Member] | ||||
Bridge loan, debt discount | $ 144,948 | |||
Bridge Loan Notes [Member] | ||||
Note, face amount | $ 600,000 | |||
Original issue discount, percent | 5.00% | |||
Debt instrument interest rate | 12.00% | |||
Prepayment, description | The Bridge Loan Notes were subject to mandatory prepayment from and to the extent of (i) 100% of net proceeds the Company receive from any sales, for cash, of equity or debt securities (other than Bridge Loan Notes), (ii) 100% of net proceeds the Company receive from the sale of assets (other than sales in the ordinary course of business); and (iii) 75% of net proceeds the Company receive from the sale of oil and gas produced from our Hockley County, Texas properties. Additionally, the Company had the option to prepay the Bridge Loan Notes, at its sole election, without penalty. | |||
Proceeds received from sale of equity and debt securities, percentage | 100.00% | |||
Bridge loan, debt discount | $ 31,052 | |||
Interest expense | 21,439 | |||
Amortization of debt discount | 152,533 | |||
Bridge Loan Notes [Member] | Remaining Note Holders [Member] | ||||
Note, face amount | 621,052 | |||
Debt instrument interest payable | 0 | |||
Repayments of debt | $ 621,052 | |||
Bridge Loan Warrants [Member] | ||||
Number of warrant issued to purchase common stock | 1,180,000 | |||
Bridge Loan Notes and Warrants [Member] | ||||
Consideration received from warrants | $ 590,000 | |||
OID Note [Member] | ||||
Note, face amount | $ 100,000 | |||
Original issue discount, percent | 10.00% | |||
Debt instrument interest rate | 0.00% | |||
Proceeds from issuance of debt | $ 90,000 | |||
OID Note [Member] | Shareholder [Member] | ||||
Ownership percentage | 10.00% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2019 | Jun. 30, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Feb. 28, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2008 | |
Number of options granted during period | 1,100,000 | 1,658,333 | |||||||
Option term | 6 years 7 days | ||||||||
Stock option exercisable price per share | $ 0.80 | ||||||||
Number of options vested | 1,413,333 | ||||||||
Stock-based compensation | $ 156,091 | $ 96,616 | |||||||
Unrecognized share-based compensation expense related to non-vested stock options | $ 116,733 | ||||||||
Weighted average period for recognition of compensation expense | 7 months 13 days | ||||||||
Weighted average remaining contractual term of the outstanding options | 6 years 7 days | ||||||||
Weighted average remaining contractual term of the exercisable options | 5 years 22 days | ||||||||
Issuance of common stock, shares | 3,191,667 | ||||||||
Executive Officer [Member] | |||||||||
Number of options granted during period | 1,000,000 | ||||||||
Option term | 10 years | ||||||||
Stock option exercisable price per share | $ 0.2922 | ||||||||
Description on vesting of stock options | The options had a ten-year life, vested 1/3 on each of the first three anniversaries of the grant date and were exercisable at $0.2922 per share, the fair market value on the date of grant. The executive officer was terminated in June 2018 and the options were forfeited unvested on termination of employment. | ||||||||
Fair value of options granted | $ 166,940 | ||||||||
Risk free interest rate | 2.68% | ||||||||
Stock option life, term | 5 years 9 months 14 days | ||||||||
Expected stock volatility | 105.40% | ||||||||
Expected dividend yield | 0.00% | ||||||||
Non-Officer Employee [Member] | |||||||||
Number of options granted during period | 500,000 | ||||||||
Option term | 10 years | ||||||||
Stock option exercisable price per share | $ 0.30 | ||||||||
Description on vesting of stock options | The options had a ten-year life, vested 1/3 on each of the first three anniversaries of the grant date and were exercisable at $0.30 per share, the fair market value on the date of grant. | ||||||||
Fair value of options granted | $ 89,808 | ||||||||
Risk free interest rate | 2.72% | ||||||||
Stock option life, term | 5 years 9 months 22 days | ||||||||
Expected stock volatility | 105.00% | ||||||||
Expected dividend yield | 0.00% | ||||||||
Non-Employee Director [Member] | |||||||||
Number of options granted during period | 150,000 | 8,333 | |||||||
Option term | 10 years | 10 years | |||||||
Stock option exercisable price per share | $ 0.2425 | $ 0.267 | |||||||
Description on vesting of stock options | The options had a ten-year life, vested 20% on the date of grant and 80% nine months from the date of grant and exercise prices of $0.2425 per share, the fair market value on the date of grant. | The options had a ten-year life, vested 20% on the date of grant and 80% nine months from the date of grant and an exercise price of $0.267 per share, the fair market value on the date of grant. | |||||||
Fair value of options granted | $ 27,422 | $ 1,770 | |||||||
Risk free interest rate | 2.79% | 2.69% | |||||||
Stock option life, term | 5 years 10 months 17 days | 5 years 9 months 18 days | |||||||
Expected stock volatility | 103.90% | 105.00% | |||||||
Expected dividend yield | 0.00% | 0.00% | |||||||
Shares available for issuance | 250,000 | ||||||||
Number of shares, grant in cashless transaction | 114,379 | ||||||||
Directors and Non-executive Employee [Member] | |||||||||
Number of options granted during period | 1,100,000 | ||||||||
Option term | 10 years | ||||||||
Stock option exercisable price per share | $ 0.2165 | ||||||||
Description on vesting of stock options | The options have a ten-year life and are exercisable at $0.2165 per share, the market price on the date of grant. 1,000,000 of the options vest one year from the date of grant. 100,000 of the options vest 20% on the date of grant and 80% nine months from the date of grant. | ||||||||
Fair value of options granted | $ 1,000,000 | ||||||||
Risk free interest rate | 2.10% | ||||||||
Stock option life, term | 10 years | ||||||||
Expected stock volatility | 85.70% | ||||||||
Expected dividend yield | 0.00% | ||||||||
Shares available for issuance | 200,562 | ||||||||
2008 Equity Incentive Plan [Member] | Maximum [Member] | |||||||||
Number of options authorized to purchase shares of common stock | 6,000,000 | ||||||||
2017 Equity Incentive Plan [Member] | Maximum [Member] | |||||||||
Number of options authorized to purchase shares of common stock | 5,000,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | ||
Options Outstanding at beginning of the period | 4,978,832 | 6,012,165 |
Options Granted | 1,100,000 | 1,658,333 |
Options Exercised | (250,000) | |
Options Forfeited | (66,666) | (2,441,666) |
Options Outstanding at end of the period | 6,012,166 | 4,978,832 |
Options Outstanding Exercisable | 4,648,833 | |
Weighted-Average Exercise Price Outstanding at beginning of the period | $ 0.77 | $ 1.86 |
Weighted-Average Exercise Price Granted | 0.22 | 0.29 |
Weighted-Average Exercise Price Exercised | 0.22 | |
Weighted-Average Exercise Price Forfeited | 0.68 | 3.79 |
Weighted-Average Exercise Price Outstanding at end of the period | 0.67 | 0.77 |
Weighted-Average Exercise Price Outstanding Exercisable | $ 0.80 | |
Weighted Average Remaining Contractual Term Options, Outstanding | 6 years 7 days | |
Weighted Average Remaining Contractual Term Options, Exercisable | 5 years 22 days | |
Aggregate Intrinsic Value Outstanding at end of the period | ||
Aggregate Intrinsic Value Outstanding Exercisable |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-based Compensation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | ||
Stock-based compensation expense included in general and administrative expense | $ 156,091 | $ 96,616 |
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 | 12 Months Ended | |||||||||||
Jan. 31, 2020 | Sep. 30, 2019 | May 31, 2019 | Oct. 31, 2018 | Sep. 30, 2017 | Jul. 31, 2017 | May 31, 2017 | Jan. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 06, 2019 | Sep. 06, 2018 | Dec. 06, 2017 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||||||
Stock-based compensation | $ 156,091 | $ 96,616 | |||||||||||
Consultant Warrants [Member] | |||||||||||||
Number of warrants issued to purchase common stock | 50,000 | 12,500 | 12,500 | 12,500 | |||||||||
Warrants expiration date | Dec. 31, 2021 | ||||||||||||
Warrants exercise price | $ 0.55 | ||||||||||||
Warrants fair value | $ 16,132 | ||||||||||||
Risk free interest rate | 1.63% | ||||||||||||
Expected life in years | 4 years 3 months 26 days | ||||||||||||
Expected stock volatility | 99.75% | ||||||||||||
Expected dividend yield | 0.00% | ||||||||||||
Expiration term of warrants | The consultant was terminated in May 2018. | ||||||||||||
Number of unvested portion of warrants | 37,500 | ||||||||||||
Stock-based compensation | $ 0 | 1,770 | |||||||||||
Consultant Warrants [Member] | September 6, 2020 [Member] | |||||||||||||
Number of warrants issued to purchase common stock | 12,500 | ||||||||||||
Bridge Loan Warrants [Member] | |||||||||||||
Number of warrants issued to purchase common stock | 1,180,000 | ||||||||||||
Warrants expiration date | Sep. 18, 2029 | ||||||||||||
Warrants exercise price | $ 0.20 | ||||||||||||
Warrants fair value | $ 144,948 | ||||||||||||
Risk free interest rate | 1.80% | ||||||||||||
Expected life in years | 10 years | ||||||||||||
Expected stock volatility | 82.90% | ||||||||||||
Expected dividend yield | 0.00% | ||||||||||||
12.0% Series A Convertible Preferred Stock [Member] | |||||||||||||
Preferred stock, shares issued | 1,085 | ||||||||||||
Preferred stock, shares outstanding | 1,085 | ||||||||||||
12.0% Series B Convertible Preferred Stock [Member] | |||||||||||||
Preferred stock, shares issued | 835 | ||||||||||||
Preferred stock, shares outstanding | 835 | ||||||||||||
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] | Minimum [Member] | |||||||||||||
Premium issuance price decreased percentage | 12.00% | ||||||||||||
12% Series A Convertible Preferred Stock [Member] | Maximum [Member] | |||||||||||||
Premium issuance price decreased percentage | 0.00% | ||||||||||||
Series A Preferred Stock [Member] | |||||||||||||
Preferred stock, shares issued | 1,085 | ||||||||||||
Preferred stock, shares outstanding | 1,085 | ||||||||||||
Payments for dividend | $ 129,450 | $ 132,900 | |||||||||||
Number of shares converted | 0 | 90 | |||||||||||
Conversion of stock, shares converted | 0 | 450,000 | |||||||||||
Series B Convertible Preferred Stock [Member] | |||||||||||||
Number shares sold | 909.6 | ||||||||||||
Preferred stock, shares authorized | 1,000 | 1,000 | |||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||||||
Preferred stock, shares issued | 835 | 835 | |||||||||||
Preferred stock, shares outstanding | 835 | 835 | |||||||||||
Proceeds from issuance of preferred stock | $ 909,600 | ||||||||||||
Preferred stock dividend percentage | 12.00% | ||||||||||||
Series B Preferred Stock [Member] | |||||||||||||
Preferred stock, shares issued | 835 | ||||||||||||
Preferred stock, shares outstanding | 835 | ||||||||||||
Preferred stock dividend percentage | 12.00% | ||||||||||||
Payments for dividend | $ 100,950 | $ 106,050 | |||||||||||
Number of shares converted | 0 | 60 | |||||||||||
Conversion of stock, shares converted | 0 | 166,667 | |||||||||||
Common stock conversion basis | Holder into shares of common stock at a conversion price of $0.36 per share | ||||||||||||
Common stock conversion price per share | $ 0.36 | ||||||||||||
Preferred stock liquidation preference | $ 1,000 | ||||||||||||
Series B Preferred Stock [Member] | Minimum [Member] | |||||||||||||
Preferred stock premium percentage | 12.00% | ||||||||||||
Series B Preferred Stock [Member] | Maximum [Member] | |||||||||||||
Preferred stock premium percentage | 0.00% | ||||||||||||
Sales Agreement (2017 ATM Offering) [Member] | WestPark Capital, Inc [Member] | |||||||||||||
Sale of stock shares of common stock value | $ 5,000,000 | ||||||||||||
Commission percentage | 3.00% | ||||||||||||
Reimbursement of expenses connection with offering | $ 25,000 | ||||||||||||
Sales Agreement (2018 ATM Offering) [Member] | WestPark Capital, Inc [Member] | |||||||||||||
Sale of stock shares of common stock value | $ 1,900,000 | ||||||||||||
Reimbursement of expenses connection with offering | $ 18,000 | ||||||||||||
2017 and 2018 ATM Offering [Member] | |||||||||||||
Sale of stock shares of common stock value | $ 747,205 | ||||||||||||
Number shares sold | 2,433,963 | ||||||||||||
Sales Agreement (2019 ATM Offering) [Member] | WestPark Capital, Inc [Member] | |||||||||||||
Sale of stock shares of common stock value | $ 5,200,000 | ||||||||||||
Reimbursement of expenses connection with offering | $ 18,000 | ||||||||||||
2019 ATM Offering [Member] | |||||||||||||
Sale of stock shares of common stock value | $ 606,960 | ||||||||||||
Number shares sold | 3,472,506 | ||||||||||||
2019 ATM Offering [Member] | Subsequent Event [Member] | |||||||||||||
Number shares sold | 21,059,499 | ||||||||||||
Commissions and expenses | $ 4,376,549 |
Capital Stock - Summary of Warr
Capital Stock - Summary of Warrant Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Warrants Outstanding, Beginning | 50,000 | 3,651,680 |
Warrants Outstanding, Issued | 1,180,000 | |
Warrants Outstanding, Exercised | ||
Warrants Outstanding, Expired | (3,601,680) | |
Warrants Outstanding, Ending | 1,230,000 | 50,000 |
Warrants Outstanding, Exercisable | 1,192,500 | |
Weighted-Average Exercise Price Outstanding, Beginning | $ 0.55 | $ 0.44 |
Weighted-Average Exercise Price, Issued | 0.20 | |
Weighted-Average Exercise Price, Exercised | ||
Weighted-Average Exercise Price, Expired | 0.44 | |
Weighted-Average Exercise Price Outstanding, Ending | $ 0.21 | $ 0.55 |
Weighted-Average Exercise Price Outstanding, Exercisable | 0.21 | |
Aggregate Intrinsic Value, Ending | ||
Aggregate Intrinsic Value, Exercisable |
Taxes (Details Narrative)
Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income tax description | The Tax Cuts and Jobs Act ("the Act") includes significant changes to the U.S. corporate income tax system including the reduction of the corporate tax rate from 35% to 21%. | |
Federal corporate income tax rate | 21.00% | |
Federal tax loss carry forward | $ 54,295,837 | |
Foreign tax credit carry forward | $ 505,745 | |
Net operating loss expiration year | Under the Tax Cuts and Jobs Act of 2017, net operating losses incurred for tax years beginning after 12/31/2017 will have no expiration date but utilization will be limited to 80% of taxable income. For losses generated prior to 1/1/2018, there will be no limitation on the utilization, but there is an expiration on the carryforward of 20 years for federal tax purposes. | |
Effective tax rate | 25.00% | |
Foreign tax expense | ||
State [Member] | ||
Net operating loss expiration year | State NOL expiration will occur beginning in 2019 | |
Federal [Member] | ||
Net operating loss expiration year | Federal NOL expiration will begin in 2035. |
Taxes - Schedule of Reconciliat
Taxes - Schedule of Reconciliation of Statutory Federal Income Tax (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income taxes | $ (2,515,694) | $ (251,336) |
Income tax expense (benefit) computed at statutory rates | (528,296) | (52,781) |
Permanent differences, nondeductible expenses | 376 | 405 |
Increase (decrease) in valuation allowance | 613,162 | (1,386,204) |
State and Local Taxes | 6,548 | |
Other adjustment | 2,103 | 1,090,595 |
Deferred True-Up | (78,112) | 341,437 |
ASC 842 lease standard adoption | (9,233) | |
Tax provision | ||
Foreign | ||
Total provision (benefit) |
Taxes - Significant Components
Taxes - Significant Components of Deferred Tax Asset and Liability (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry forward | $ 11,481,979 | $ 11,128,619 |
Foreign tax credit carry forward | 505,745 | 505,745 |
Deferred state tax | 13,966 | 13,966 |
Stock compensation | 502,210 | 471,534 |
Book in excess of tax depreciation, depletion and capitalization methods on oil and gas properties | (661,614) | (883,220) |
Other | (196,560) | (196,560) |
ASC 842 lease standard - building lease | 7,520 | |
Colombia future tax obligations | ||
Total Non-Current Deferred tax assets | 11,653,246 | 11,040,084 |
Valuation Allowance | (11,653,246) | (11,040,084) |
Net deferred tax asset | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2013 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating lease agreement expire date | Oct. 31, 2022 | ||
Right-of-use asset | $ 281,489 | ||
Operating leases liability | 317,300 | ||
Short-term lease liability | 97,890 | ||
Operating cash outflows related to operating lease liabilities | (182,539) | ||
Amortization of right of use asset | $ 76,495 | ||
Operating lease, weighted average remaining lease term | 3 years 1 month 6 days | ||
Weighted average discount rate | 12.00% | ||
Rental expense | $ 120,193 | 129,370 | |
Description of production incentive compensation plan | The maximum percentage of the Company's share of revenues from a well that may be designated to fund a Pool is 2% (the "Pool Cap"); provided, however, that with respect to wells with a net revenue interest to the 8/8 of less than 73%, the Pool Cap with respect to such wells shall be reduced on a 1-for-1 basis such that no portion of the Company's revenues from a well may be designated to fund a Pool if the NRI is 71% or less. | ||
Maximum percentage of revenue to fund a pool from a well | 2.00% | ||
Maximum percentage of revenue from a well considered for pool cap | 73.00% | ||
Maximum percentage of revenue from a well considered for pool nri | 71.00% | ||
Period consider for payout of revenues to participants | 60 days | ||
Production Incentive Compensation Plan [Member] | |||
Payment of overriding royalty interests | 84 | 1,439 | |
Accounts payable | $ 0 | $ 0 | |
Colombia [Member] | Current Director [Member] | |||
Percentage of royalty interest | 1.50% | ||
Colombia [Member] | Former Chairman [Member] | |||
Percentage of royalty interest | 1.50% | ||
Colombia [Member] | Chief Executive Officer [Member] | |||
Percentage of royalty interest | 1.50% | ||
Yoakum County Acreage [Member] | |||
Percentage of pool interest rate | 1.00% |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Right of Use Assets and Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Right of use asset | $ 281,489 | |
Operating lease, current liability | 97,890 | |
Long-term operating lease liability | 219,410 | |
Total lease liability | $ 317,300 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - 2019 ATM Offering [Member] | 1 Months Ended |
Jan. 31, 2020USD ($)shares | |
Number of shares sold during period | shares | 21,059,499 |
Proceeds, net of commissions and expenses | $ | $ 4,376,549 |
Geographical Information - Sche
Geographical Information - Schedule of Revenues and Long Lived Assets Attributable to Geographical Area (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 997,992 | $ 2,243,325 |
Long Lived Assets, Net | 6,369,555 | 6,861,479 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 997,992 | 2,243,325 |
South America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | ||
Reportable Geographical Components [Member] | North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 997,992 | 2,243,325 |
Long Lived Assets, Net | 4,026,429 | 4,540,309 |
Reportable Geographical Components [Member] | South America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | ||
Long Lived Assets, Net | $ 2,343,126 | $ 2,321,170 |
Supplemental Information on O_3
Supplemental Information on Oil and Gas Exploration, Development and Production Activities (Unaudited) (Details Narrative) | 12 Months Ended | |
Dec. 31, 2019$ / sharesbblMMcf | Dec. 31, 2018bblMMcf | |
Period of average prices used in calculating proved oil and gas reserves | 12 months | |
Minimum experience of Vice President of independent professional engineering firm | 30 years | |
Gas [Member] | ||
Proved undeveloped reserves | MMcf | 756,143 | 1,179,557 |
Oil [Member] | ||
Proved undeveloped reserves | 155,490 | 242,949 |
United States [Member] | ||
Amortization rate per unit | $ / shares | $ 13.24 | |
United States [Member] | Oil [Member] | ||
Proved undeveloped reserves | 155,490 | 242,949 |
South America [Member] | ||
Amortization rate per unit | $ / shares | $ 0 | |
South America [Member] | Oil [Member] | ||
Proved undeveloped reserves |
Supplemental Information on O_4
Supplemental Information on Oil and Gas Exploration, Development and Production Activities (Unaudited) - Schedule of Oil and Gas Revenues and Lease Operating Expenses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Revenues | $ 997,992 | $ 2,243,325 |
Production Cost | 789,708 | 914,269 |
North America [Member] | ||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Revenues | 997,992 | 2,243,325 |
Production Cost | 789,708 | 914,269 |
South America [Member] | ||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Revenues | ||
Production Cost |
Supplemental Information on O_5
Supplemental Information on Oil and Gas Exploration, Development and Production Activities (Unaudited) - Capitalized Costs and Accumulated Depletion Relating to Oil and Gas Producing Activities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Unproved properties not being amortized | $ 2,478,456 | $ 2,456,499 |
Proved properties being amortized | 61,068,240 | |
Accumulated depreciation, depletion, amortization and impairment | (57,177,141) | |
Net capitalized costs | 6,369,555 | |
United States [Member] | ||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Unproved properties not being amortized | 135,330 | 135,329 |
Proved properties being amortized | 11,613,538 | |
Accumulated depreciation, depletion, amortization and impairment | (7,772,439) | |
Net capitalized costs | 4,026,429 | |
South America [Member] | ||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Unproved properties not being amortized | 2,343,126 | $ 2,321,170 |
Proved properties being amortized | 49,454,702 | |
Accumulated depreciation, depletion, amortization and impairment | (49,454,702) | |
Net capitalized costs | $ 2,343,126 |
Supplemental Information on O_6
Supplemental Information on Oil and Gas Exploration, Development and Production Activities (Unaudited) - Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development Activities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
United States [Member] | ||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Proved | $ 531,417 | $ 258,352 |
Unproved | 135,329 | |
Exploration costs | ||
Development costs | 138,945 | |
Total costs incurred | 670,362 | 393,681 |
South America [Member] | ||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Proved | ||
Unproved | 21,957 | 11,829 |
Exploration costs | ||
Development costs | ||
Total costs incurred | $ 21,957 | $ 11,829 |
Supplemental Information on O_7
Supplemental Information on Oil and Gas Exploration, Development and Production Activities (Unaudited) - Schedule of Proved Developed and Undeveloped Reserves by Product Type (Details) | 12 Months Ended | |
Dec. 31, 2019bblMMcf | Dec. 31, 2018bblMMcf | |
Gas [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | MMcf | 2,723,940 | 2,840,061 |
Revisions of prior estimates | MMcf | (596,642) | 136,932 |
Production | MMcf | (116,329) | (253,053) |
Discoveries | MMcf | ||
Balance at end of the period | MMcf | 2,010,669 | 2,723,940 |
Proved developed reserves | MMcf | 1,254,526 | 1,544,383 |
Proved undeveloped reserves | MMcf | 756,143 | 1,179,557 |
Oil [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | 350,697 | 391,213 |
Revisions of prior estimates | (89,787) | (16,674) |
Production | (13,674) | (23,842) |
Discoveries | ||
Balance at end of the period | 247,236 | 350,697 |
Proved developed reserves | 91,746 | 107,548 |
Proved undeveloped reserves | 155,490 | 242,949 |
United States [Member] | Gas [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | MMcf | 2,723,940 | 2,840,061 |
Revisions of prior estimates | MMcf | (596,642) | 136,932 |
Production | MMcf | (116,629) | (253,053) |
Discoveries | MMcf | ||
Balance at end of the period | MMcf | 2,010,669 | 2,723,940 |
Proved developed reserves | MMcf | 1,254,526 | 1,544,383 |
Proved undeveloped reserves | 756,143 | 1,179,557 |
United States [Member] | Oil [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | 350,697 | 391,213 |
Revisions of prior estimates | (89,787) | (16,674) |
Production | (13,674) | (23,842) |
Discoveries | ||
Balance at end of the period | 247,236 | 350,697 |
Proved developed reserves | 91,746 | 107,548 |
Proved undeveloped reserves | 155,490 | 242,949 |
South America [Member] | Gas [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | MMcf | ||
Revisions of prior estimates | MMcf | ||
Production | MMcf | ||
Discoveries | MMcf | ||
Balance at end of the period | MMcf | ||
Proved developed reserves | MMcf | ||
Proved undeveloped reserves | MMcf | ||
South America [Member] | Oil [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | ||
Revisions of prior estimates | ||
Production | ||
Discoveries | ||
Balance at end of the period | ||
Proved developed reserves | ||
Proved undeveloped reserves |
Supplemental Information on O_8
Supplemental Information on Oil and Gas Exploration, Development and Production Activities (Unaudited) - Standardized Measure of Discounted Future Net Cash Flows (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Future cash flows from sales of oil and gas | $ 16,199,011 | $ 31,125,778 | ||
Future production cost | (4,665,423) | (7,611,052) | ||
Future development cost | (3,076,020) | (4,758,170) | ||
Future net cash flows | 8,457,568 | 18,756,556 | ||
10% annual discount for timing of cash flow | (4,891,475) | (11,041,908) | ||
Standardized measure of discounted future net cash flow relating to proved oil and gas reserves | $ 3,566,093 | $ 7,714,648 | 3,566,093 | 7,714,648 |
Change due to current year operations Sales, net of production costs | (208,284) | (1,465,985) | ||
Accretion of discount | 771,465 | 684,886 | ||
Net change in sales and transfer price, net of production costs | (3,358,522) | 1,656,330 | ||
Net change in future development cost | (1,558,788) | |||
Discoveries | ||||
Revision and others | (1,540,161) | 84,038 | ||
Changes in production rates and other | (1,371,841) | (93,476) | ||
Net | (4,148,555) | 865,793 | ||
Beginning of year | 7,714,648 | 6,848,855 | ||
End of year | 3,566,093 | 7,714,648 | ||
United States [Member] | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Future cash flows from sales of oil and gas | 16,199,011 | 31,125,778 | ||
Future production cost | (4,665,423) | (7,611,052) | ||
Future development cost | (3,076,020) | (4,758,170) | ||
Future net cash flows | 8,457,568 | 18,756,556 | ||
10% annual discount for timing of cash flow | (4,891,475) | (11,041,908) | ||
Standardized measure of discounted future net cash flow relating to proved oil and gas reserves | 3,566,093 | 7,714,648 | 3,566,093 | 7,714,648 |
Change due to current year operations Sales, net of production costs | (208,284) | (1,465,985) | ||
Accretion of discount | 771,465 | 684,886 | ||
Net change in sales and transfer price, net of production costs | (3,358,522) | 1,656,330 | ||
Net change in future development cost | 1,558,788 | |||
Discoveries | ||||
Revision and others | (1,540,161) | 84,038 | ||
Changes in production rates and other | (1,371,841) | (93,476) | ||
Net | (4,148,555) | 865,793 | ||
Beginning of year | 7,714,648 | 6,848,855 | ||
End of year | 3,566,093 | 7,714,648 | ||
South America [Member] | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Future cash flows from sales of oil and gas | ||||
Future production cost | ||||
Future development cost | ||||
Future net cash flows | ||||
10% annual discount for timing of cash flow | ||||
Standardized measure of discounted future net cash flow relating to proved oil and gas reserves | ||||
Change due to current year operations Sales, net of production costs | ||||
Accretion of discount | ||||
Net change in sales and transfer price, net of production costs | ||||
Net change in future development cost | ||||
Discoveries | ||||
Revision and others | ||||
Changes in production rates and other | ||||
Net | ||||
Beginning of year | ||||
End of year |
Summarized Quarterly Financia_3
Summarized Quarterly Financial Information (Unaudited) - Summarized Quarterly Financial Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Operating revenue | $ 273,144 | $ 264,935 | $ 209,193 | $ 250,720 | $ 474,977 | $ 552,946 | $ 574,580 | $ 754,157 | $ 997,992 | $ 2,356,660 |
Loss from operations | (1,325,308) | (284,445) | (482,943) | (240,987) | (21,888) | (116,933) | (146,259) | (52,911) | 2,333,683 | 337,991 |
Net income (loss) | $ (1,489,018) | $ (304,633) | $ (482,423) | $ (239,620) | $ 64,665 | $ (116,831) | $ (146,259) | $ (52,911) | $ (2,515,694) | $ (251,336) |
Income (loss) per common share - basic | $ (0.02) | $ (0.01) | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||
Income (loss) per common share - diluted | $ (0.02) | $ (0.01) | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |