Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 29, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | HOUSTON AMERICAN ENERGY CORP | ||
Entity Central Index Key | 0001156041 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10,700,000 | ||
Entity Common Stock, Shares Outstanding | 9,923,338 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash | $ 1,242,560 | $ 97,915 |
Accounts receivable - oil and gas sales | 95,763 | 80,195 |
Prepaid expenses and other current assets | 35,845 | 39,505 |
TOTAL CURRENT ASSETS | 1,374,168 | 217,615 |
Oil and gas properties, full cost method | ||
Costs subject to amortization | 61,089,737 | 61,068,240 |
Costs not being amortized | 3,981,805 | 2,478,456 |
Office equipment | 90,004 | 90,004 |
Total | 65,161,546 | 63,633,534 |
Accumulated depletion, depreciation, amortization, and impairment | (60,150,988) | (57,267,145) |
PROPERTY AND EQUIPMENT, NET | 5,010,558 | 6,369,555 |
Cost method investment | 260,405 | 197,009 |
Right of use asset | 194,123 | 281,489 |
Other assets | 3,167 | 3,167 |
TOTAL ASSETS | 6,842,421 | 7,068,835 |
CURRENT LIABILITIES | ||
Accounts payable | 120,140 | 270,119 |
Accrued expenses | 939 | 447 |
Notes payable - related party, net of debt discount | 597,585 | |
Short-term lease liability | 110,577 | 97,890 |
TOTAL CURRENT LIABILITIES | 231,656 | 966,041 |
LONG-TERM LIABILITIES | ||
Lease liability, net of current portion | 107,862 | 219,410 |
Reserve for plugging and abandonment costs | 63,929 | 44,186 |
TOTAL LONG-TERM LIABILITIES | 171,791 | 263,596 |
TOTAL LIABILITIES | 403,447 | 1,229,637 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY | ||
Common stock, par value $0.001; 12,000,000 shares authorized 5,275,816 and 6,977,718 shares issued and outstanding | 6,977 | 5,276 |
Additional paid-in capital | 78,453,906 | 73,877,332 |
Subscription receivable | (58,575) | |
Accumulated deficit | (72,021,911) | (67,984,837) |
TOTAL SHAREHOLDERS' EQUITY | 6,438,974 | 5,839,198 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 6,842,421 | 7,068,835 |
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, 2020 | Dec. 31, 2019 |
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 | 12,000,000 | 12,000,000 |
Common stock, shares issued | 6,977,718 | 5,275,816 |
Common stock, shares outstanding | 6,977,718 | 5,275,816 |
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, 2020 | Dec. 31, 2019 | |
REVENUES | ||
Oil and gas revenue | $ 552,345 | $ 997,992 |
Total operating revenue | 552,345 | 997,992 |
EXPENSES OF OPERATIONS | ||
Lease operating expense and severance tax | 403,974 | 789,708 |
General and administrative expense | 1,447,298 | 1,357,723 |
Depreciation and depletion | 364,810 | 438,553 |
Impairment expense | 2,519,032 | 745,691 |
Total operating expenses | 4,735,114 | 3,331,675 |
Loss from operations | (4,182,769) | (2,333,683) |
OTHER INCOME (EXPENSE) | ||
Interest income | 12,748 | 1,961 |
Other income | 164,706 | |
Interest expense | (31,759) | (183,972) |
Total other income (expense), net | 145,695 | (182,011) |
Loss before taxes | (4,037,074) | (2,515,694) |
Income tax expense (benefit) | ||
Net loss | (4,037,074) | (2,515,694) |
Dividends to Series A and B Preferred shareholders | (231,900) | (230,400) |
Net loss attributable to common shareholders | $ (4,268,974) | $ (2,746,094) |
Basic and diluted net loss per common share outstanding | $ (0.62) | $ (0.52) |
Basic and diluted weighted average number of common shares outstanding | 6,939,305 | 5,275,812 |
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, 2018 | $ 2 | $ 4,994 | $ 73,141,440 | $ (65,469,143) | $ 7,677,293 | |
Balance, shares at Dec. 31, 2018 | 1,920 | 4,994,011 | ||||
Issuance of common stock for cash, net | $ 278 | 665,257 | (58,575) | 606,960 | ||
Issuance of common stock for cash, net, shares | 277,800 | |||||
Stock-based compensation | $ 4 | 156,087 | 156,091 | |||
Stock-based compensation, shares | 4,000 | |||||
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 | $ 5,276 | 73,877,332 | (58,575) | (67,984,837) | 5,839,198 |
Balance, shares at Dec. 31, 2019 | 1,920 | 5,275,811 | ||||
Issuance of common stock for cash, net | $ 1,684 | 4,373,910 | 58,575 | $ 4,434,169 | ||
Issuance of common stock for cash, net, shares | 1,684,763 | 446,553 | ||||
Stock-based compensation | 434,581 | $ 434,581 | ||||
Stock-based compensation, shares | ||||||
Series A and Series B Preferred Stock dividends paid | (231,900) | (231,900) | ||||
Rounding of common stock due to reverse split | $ 17 | (17) | ||||
Rounding of common stock due to reverse split, shares | 17,144 | |||||
Net loss | (4,037,074) | (4,037,074) | ||||
Balance at Dec. 31, 2020 | $ 2 | $ 6,977 | $ 78,453,906 | $ (72,021,911) | $ 6,438,974 | |
Balance, shares at Dec. 31, 2020 | 1,920 | 6,977,718 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net loss | $ (4,037,074) | $ (2,515,694) |
Adjustments to reconcile net loss to net cash (used in) provided by operations | ||
Depreciation and depletion | 364,810 | 438,553 |
Impairment of oil and gas properties | 2,519,032 | 745,691 |
Accretion of plugging and abandonment costs | 3,286 | 5,432 |
Stock-based compensation | 434,581 | 156,091 |
Amortization of right of use asset | 87,366 | 76,495 |
Amortization of debt discount | 23,467 | 162,533 |
Change in operating assets and liabilities: | ||
Decrease/(increase) in accounts receivable | (15,568) | 55,847 |
Decrease in prepaid expense and other current assets | 3,660 | 26,876 |
Increase/(decrease) in accounts payable and accrued expenses | (136,799) | 305,697 |
Decrease in operating lease liability | (111,548) | (182,539) |
Net cash used in operating activities | (864,787) | (725,019) |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Payments for the acquisition and development of oil and gas properties | (1,509,876) | (692,319) |
Proceeds from sale of mineral interest | 1,487 | |
Payments for the acquisition of cost method investment | (63,396) | (197,009) |
Net cash used in investing activities | (1,571,785) | (889,328) |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of notes payable, net of debt discount | 680,000 | |
Repayments of notes payable | (621,052) | (100,000) |
Proceeds from issuance of common stock for cash, net of offering costs | 4,434,169 | 606,960 |
Payment of preferred stock dividends | (231,900) | (230,400) |
Net cash provided by financing activities | 3,581,217 | 966,560 |
(DECREASE) INCREASE IN CASH | 1,144,645 | (657,787) |
Cash, beginning of year | 97,915 | 755,702 |
Cash, end of year | 1,242,560 | 97,915 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid | 3,350 | 21,439 |
Taxes paid | ||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Change in asset retirement obligations, net | 17,082 | |
Debt discount from issuance of warrants as debt inducement | $ 144,948 |
Nature of Company and Summary o
Nature of Company and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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. Reverse Stock Split In July 2020, the Company’s shareholders approved a reverse split of the Company’s common stock in a ratio to be determined, within a specified range, by the Company’s board of directors. The Company’s board of directors approved, and, effective at the close of business on July 31, 2020, the Company’s Certificate of Incorporation was amended to affect a 1-for-12.5 reverse split (the “Reverse Split”) of the Company’s common stock. Fractional shares otherwise issuable pursuant to the Reverse Split were rounded up to the next highest whole number of shares. As a result of the Reverse Split, the shares of common stock outstanding immediately prior to the Reverse Split decreased from 87,007,145 to 6,960,575 shares and the shares of common stock authorized for issuance decreased from 150,000,000 shares to 12,000,000 shares. Similarly, all shares of common stock issuable under outstanding options, warrants and shares of convertible preferred stock were adjusted, and applicable conversion or exercise prices were proportionately adjusted, to reflect the Reverse Split. The par value of the Company’s common stock remained unchanged at $0.001 per share. All references to shares of common stock and per share data for all periods in the financial statements and notes thereto have been adjusted to reflect the Reverse Split on a retroactive basis. 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 $4,037,074 for the year ended December 31, 2020. As a result of the steep global economic slowdown that began in March 2020 as the coronavirus pandemic (“COVID-19”) spread, oil and gas demand and prices realized from oil and gas sales declined sharply and have only partially recovered as of December 31, 2020, with such demand and price declines expected to persist until governments worldwide are confident that the pandemic is adequately contained to permit renewed economic activity. Depending upon the duration of the pandemic and the resulting global economic slowdown, the Company may incur continuing declines in revenues and increased losses, associated from lower demand for energy and resulting depressed oil and gas prices. However, during 2020, the Company raised a total, net of offering costs, of $4.3 million in its ATM offering and, during January and February 2021, the Company raised an additional $6.5 million, net of offering costs, in additional ATM offerings. The Company believes that it has the ability to fund, from cash on hand, its operating costs and anticipated drilling operations, as well as mitigate the immediate impact of COVID-19, for at least the next twelve months following the issuance of these financial statements. The actual timing and number of wells drilled during 2021 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. 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, 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. 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 2020, 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 cash deposits of $908,997 in excess of the FDIC’s current insured limit of $250,000 at December 31, 2020 for interest bearing accounts. The Company also had cash deposits of $2,547 in Colombian banks at December 31, 2020 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 2020, 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 2020 Series A Convertible Preferred Stock 434,000 434,000 Series B Convertible Preferred Stock 185,644 185,644 Stock warrants 98,400 98,400 Stock options 480,973 784,977 Totals 1,199,017 1,503,021 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 2020, 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 $364,810 for the years ended December 31, 2019 and 2020, respectively, and accumulated amortization, depreciation and impairment was $57,177,141 and $60,060,984 at December 31, 2019 and 2020, 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, 2019. Therefore, the related depreciation expense was $0 and $0 for 2019 and 2020, respectively, and accumulated depreciation was $90,004 and $90,004 at December 31, 2019 and 2020, 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. Uncertain Tax Positions The Company evaluates uncertain tax positions to recognize a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard or are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statute of limitations. De-recognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained. The Company is subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Accordingly, the Company may incur additional tax expense based upon the outcomes of such matters, including any interest or penalties. In addition, when applicable, the Company will adjust tax expense to reflect the Company’s ongoing assessments of such matters, which require judgment and can materially increase or decrease its effective rate as well as impact operating results. There were no liabilities recorded for uncertain tax positions at December 31, 2020 and 2019. 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 2020. 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 2020, 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 2020, respectively. Recent Accounting Developments In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes. The new guidance simplifies the accounting for income taxes by removing several exceptions in the current standard and adding guidance to reduce complexity in certain areas, such as requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently assessing the impact that adopting this guidance will have 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, 2020 through the date the consolidated financial statements were issued. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
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 2020: Year Ended December 31, 2019 2020 Oil sales $ 762,039 $ 381,611 Natural gas sales 79,889 62,103 Natural gas liquids sales 156,064 108,631 Total revenue from customers $ 997,992 $ 552,345 There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of December 31, 2019 or 2020. |
Escrow Receivable
Escrow Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Escrow Receivable | |
Escrow Receivable | NOTE 3—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 2020, the Company received payments totaling $164,706 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 $164,706 during 2020 on the statement of operations. |
Oil and Gas Properties
Oil and Gas Properties | 12 Months Ended |
Dec. 31, 2020 | |
Oil and Gas Property [Abstract] | |
Oil and Gas Properties | NOTE 4—OIL AND GAS PROPERTIES Evaluated Oil and Gas Properties Evaluated oil and gas properties subject to amortization at December 31, 2020 included the following: United States South America Total Evaluated properties being amortized $ 11,645,084 $ 49,444,654 $ 61,089,738 Accumulated depreciation, depletion, amortization and impairment (10,616,331 ) (49,444,654 ) (60,060,985 ) Net capitalized costs $ 1,028,753 $ — $ 1,028,753 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 Unevaluated Oil and Gas Properties Unevaluated oil and gas properties not subject to amortization at December 31, 2020 included the following: United States South America Total Leasehold acquisition costs $ 1,503,349 $ 143,847 $ 1,647,196 Geological, geophysical, screening and evaluation costs 135,330 2,199,279 2,334,609 Total $ 1,638,679 $ 2,343,126 $ 3,981,805 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 During 2020, the Company invested $1,573,272 for the acquisition and development of oil and gas properties, consisting of (1) cost of acquisition, evaluation, and development of U.S. properties ($1,503,349), attributable to acreage acquired in the Northern Shelf of the Permian Basin in Texas which have been classified as oil and gas properties not subject to amortization, (2) drilling and development operations in the U.S. Permian Basin ($6,527) which have been classified as oil and gas properties subject to amortization, and (3) investments in Hupecol Meta LLC (“Hupecol Meta”) relating to drilling operations in Colombia ($63,396). Of the amount invested, we capitalized $1,503,349 to oil and gas properties not subject to amortization, capitalized $6,527 to oil and gas properties subject to amortization and capitalized $63,396 as additional investment in Hupecol Meta, reflected in the cost method investment on the Company’s balance sheet. The Company also sold its interests in two marginal wells and associated acreage in Louisiana for nominal consideration and relief from the related asset retirement obligations. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | NOTE 5—ASSET RETIREMENT OBLIGATIONS The following table describes changes in our asset retirement liability (“ARO”) during each of the years ended December 31, 2019 and 2020. 2019 2020 ARO liability at January 1 $ 38,754 $ 44,186 Additions from new drilling — 26,685 Dispositions from sales of oil and gas properties — (10,677 ) Changes in estimates — 449 Accretion expense 5,432 3,286 ARO liability at December 31 $ 44,186 $ 63,929 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 6 – 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. During 2020, interest expense paid in cash totaled $3,350, and interest expense attributable to amortization of debt discount totaled $23,467. 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, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 7—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 480,000 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”). The terms of the 2017 Plan allow for the issuance of up to 400,000 shares of the Company’s common stock pursuant to the grant of stock options and restricted stock. Persons eligible to participate in the Plans are key employees, consultants and directors of the Company. In 2021, the Company adopted, subject to approval by shareholders within 12 months, the Houston American Energy 2021 Equity Incentive Plan (the “2021 Plan” and, together with the 2008 Plan and the 2017 Plan, the “Plans”). The terms of the 2021 Plan allow for the issuance of up to 500,000 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 June 2019, options to purchase an aggregate of 88,000 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 $2.70625 per share, the market price on the date of grant. 80,000 of the options vest one year from the date of grant. 8,000 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. In July 2020, options to purchase an aggregate of 8,000 shares of common stock were granted to the Company’s directors. The options have a ten-year life and are exercisable at $1.61 per share. 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 $13,080 based on the Black-Scholes Option Pricing model with the following parameters: (1) risk-free interest rate of 0.64% based on the applicable US Treasury bill rate; (2) expected life in years of 10; (3) expected stock volatility of 97.34% based on the trading history of the Company; 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 November 2020, options to purchase an aggregate of 300,000 shares of common stock were granted to the Company’s chief executive officer and to a non-executive employee. The options have a ten-year life and are exercisable at $1.45 per share. 246,000 of the options were granted under the 2017 Plan and vested on the date of grant and 54,000 of the options vest on approval of the 2021 Plan by shareholders. Assessment of the 2021 Plan options is not determinable by the Company until such time as the plan is approved by the shareholders. The grant date fair value of the stock options under the 2017 Plan was $320,160 based on the Black-Scholes Option Pricing model with the following parameters: (1) risk-free interest rate of 0.00% based on the applicable US Treasury bill rate; (2) expected life in years of 10; (3) expected stock volatility of 103.29% based on the trading history of the Company; 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 2020 was as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Outstanding at December 31, 2018 398,306 $ 9.625 Granted 88,000 $ 2.75 Forfeited (5,333 ) $ 8.50 Outstanding at December 31, 2019 480,973 $ 8.50 Granted (1) 254,000 $ 1.46 Forfeited (4,000 ) $ 176.00 Outstanding at December 31, 2020 730,973 $ 5.07 6.73 $ 74,920 Exercisable at December 31, 2020 711,244 $ 5.13 6.69 $ 74,024 (1) Excludes 54,000 of options granted in November 2020 under the Company’s 2021 Plan, which is pending shareholder approval and which decision is outside the Company’s control. During 2019 and 2020, the Company recognized $156,091 and $434,581, 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. Excluding the stock options granted under the 2021 Plan, as of December 31, 2020, non-vested options totaled 19,733 and total unrecognized stock-based compensation expense related to non-vested stock options was $15,110. The related unrecognized expense is expected to be recognized over a weighted average period of 0.34 years. The weighted average remaining contractual term of the outstanding options and exercisable options at December 31, 2020 is 6.73 years and 6.69 years, respectively. As of December 31, 2020, there were 446,553 shares of common stock available for issuance pursuant to future stock or option grants under the Plans, including 446,000 shares issuable under the 2021 Plan subject to shareholder approval of the 2021 Plan. Stock-Based Compensation Expense The following table reflects stock-based compensation recorded by the Company for 2019 and 2020: 2019 2020 Stock-based compensation expense from stock options and warrants included in general and administrative expense $ 156,091 $ 434,581 Earnings per share effect of stock-based compensation expense $ (0.00 ) $ (0.06 ) |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Capital Stock | NOTE 8 – CAPITAL STOCK Common Stock - At-the-Market Offerings In May 2019, 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 $5.2 million in shares of its common stock through WestPark Capital, as sales agent. Sales of shares under the Sales Agreement (the “2019 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 2019 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 2019 ATM Offering. Additionally, 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 277,800 shares of its common stock and received net proceeds of $606,960, net of commissions and expenses. During the year ended December 31, 2020, in connection with the 2019 ATM Officering, the Company (1) sold an aggregate of 1,684,760 shares in connection with the 2019 ATM Offering and received proceeds, net of commissions and expenses, of $4,376,549, and (2) collected $58,575 of subscription receivable attributable to shares sold under the 2019 ATM Offering during 2019. 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, 2020, 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 $2.50 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 2020, respectively, the Company paid $129,450 and $130,950 of dividends on its Series A Preferred Stock. At December 31, 2020, there were 1,085 shares of Series A Preferred Stock issued and outstanding. In February 2021, 60 shares of Series A Preferred Stock were converted into 24,000 shares of common stock, and the Company redeemed all remaining shares of Series A Preferred Stock for cash paid of $1.07 million plus accrued dividends totaling $21,700. 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 $4.50 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 2020, respectively, the Company paid $100,950 and $100,950 of dividends on its Series B Preferred Stock. At December 31, 2020, there were 835 shares of Series B Preferred Stock issued and outstanding. In February 2021, the Company redeemed all remaining shares of Series B Preferred Stock for cash paid of $0.9 million plus accrued dividends of $16,700. Warrants Consultant Warrants. Bridge Loan Warrants A summary of warrant activity and related information for 2019 and 2020 is presented below: Warrants Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at December 31, 2018 4,000 $ 6.87 Issued 94,400 2.50 Exercised — — Expired — $ — Outstanding at December 31, 2019 98,400 $ 2.63 Issued — — Exercised — — Expired — — Outstanding at December 31, 2020 98,400 $ 2.63 $ 151,403 Exercisable at December 31, 2020 98,400 $ 2.63 $ 151,403 |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Taxes | NOTE 9—TAXES The following table sets forth a reconciliation of the statutory federal income tax for the years ended December 31, 2019 and 2020. 2019 2020 Income (loss) before income taxes $ (2,515,694 ) $ (4,037,074 ) Income tax expense (benefit) computed at statutory rates $ (528,296 ) $ (853,287 ) Permanent differences, nondeductible expenses 376 9 Increase (decrease) in valuation allowance 613,162 801,291 State and Local Taxes — (54,257 ) Other adjustment 2,103 105,715 Deferred True-Up (78,112 ) 529 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, 2020 the Company has a federal tax loss carry forward of $55,089,193 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 2020 are set out below. 2019 2020 Non-Current Deferred tax assets: Net operating loss carry forward $ 11,481,979 $ 11,702,841 Foreign tax credit carry forward 505,745 505,745 Deferred state tax 13,966 13,966 Stock compensation 502,210 482,661 Book in excess of tax depreciation, depletion and capitalization methods on oil and gas properties (661,614 ) (59,608 ) Other (196,560 ) (196,560 ) ASC 842 lease standard – building lease 7,520 5,310 Colombia future tax obligations — Total Non-Current Deferred tax assets 11,653,246 12,454,355 Valuation Allowance (11,653,246 ) (12,454,355 ) 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 began 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. The provisions were subsequently amended further under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) on March 27, 2020. The CARES Act amended the net operating loss provisions in the 2017 Tax Cuts and Jobs Act (“TCJA”) and allows for the carryback of NOL’s arising in the taxable years ending December 31, 2017 and before January 1, 2021, to each of the five taxable years preceding the taxable year of the loss. Additionally, the 80% limitation related to application of NOL’s towards current federal taxable income has been removed for taxable years prior to January 1, 2021; thereby allowing 100% of the NOL to be applied to federal taxable income. 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 2020, the Company recorded no foreign tax expense. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10—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, 2020, the operating cash outflows related to operating lease liabilities were $130,717 and the expense for the amortization of the right of use asset for operating leases was $87,366. As of December 31, 2020, the Company’s operating lease had a weighted-average remaining term of 1.8 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, 2020: Right of use asset $ 194,125 Operating lease, current liability $ 107,862 Long-term operating lease liability 111,548 Total lease liability $ 219,410 During the years ended December 31, 2019 and 2020, the Company recognized operating lease expense of $120,193 and $120,193, 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 2020, a Pool was established under the Plan representing an aggregate of 1% of the Company’s interest in the Lou Brock Prospect. 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 $6,538 in 2019 and 2020, respectively. As of December 31, 2019 and 2020, the Company had accrued $0 and $0, respectively, under the Plan as accounts payable. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 11—SUBSEQUENT EVENTS In January 2021, the Company entered into a Sales Agreement with Univest Securities, LLC (“Univest”) pursuant to which the Company could sell (the “2021 ATM Offering”), at its option, up to an aggregate of $4.768 million in shares of its common stock through Univest, as sales agent. Sales of shares under the Sales Agreement (the “2021 ATM Offering”) were made, in accordance with placement notices delivered to Univest, which notices set parameters under which shares could be sold. The 2021 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. We paid Univest a commission in cash equal to 3% of the gross proceeds from the sale of shares in the 2021 ATM Offering. The Company reimbursed Univest for $18,000 of expenses incurred in connection with the 2021 ATM Offering. In January 2021, the Company sold an aggregate of 2,108,520 shares in connection with the 2021 ATM Offering and received proceeds, net of commissions and expenses, of $4.6 million. In February 2021, the Company entered into another Sales Agreement with Univest pursuant to which the Company could sell (the “2021 Supplemental ATM Offering”), at its option, up to an aggregate of $2.03 million in shares of its common stock through Univest, as sales agent. Sales of shares under the Sales Agreement (the “2021 Supplemental ATM Offering”) were made, in accordance with placement notices delivered to Univest, which notices set parameters under which shares could be sold. The 2021 Supplemental 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. We paid Univest a commission in cash equal to 3% of the gross proceeds from the sale of shares in the 2021 Supplemental ATM Offering. The Company reimbursed Univest for $18,000 of expenses incurred in connection with the 2021 Supplemental ATM Offering. In February 2021, the Company sold an aggregate of 813,100 shares in connection with the 2021 Supplemental ATM Offering and received proceeds, net of commissions and expenses, of $1.9 million. In early 2021, Hupecol Meta, acquired, an additional interest in the CPO-11 block in Colombia and the Venus Exploration area and the Company agreed to contribute an additional $99,716 of capital to increase its ownership interest in Hupecol Meta to 7.85%. Following the acquisition, the Company’s interest in the Venus Exploration Area will increase to 6.99% and its interest in the balance of the CPO-11 block will increase to 3.495%. |
Geographical Information
Geographical Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Geographical Information | NOTE 12—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 2020 and long-lived assets as of December 31, 2019 and 2020 attributable to each geographical area are presented below: 2019 2020 Revenues Long Lived Assets, Net Revenues Long Lived Assets, Net North America $ 997,992 $ 4,026,429 $ 552,345 $ 2,667,432 South America — 2,343,126 — 2,343,126 Total $ 997,992 $ 6,369,555 $ 552,345 $ 5,010,558 |
Supplemental Information on Oil
Supplemental Information on Oil and Gas Exploration, Development and Production Activities (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Extractive Industries [Abstract] | |
Supplemental Information on Oil and Gas Exploration, Development and Production Activities (Unaudited) | NOTE 13—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 2020 Revenues North America $ 997,992 $ 552,345 South America — — $ 997,992 $ 552,345 Production Cost North America $ 789,708 $ 403,974 South America — — $ 789,708 $ 403,974 Capital Costs Capitalized costs and accumulated depletion relating to the Company’s oil and gas producing activities as of December 31, 2020, 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 $ 1,638,679 $ 2,343,126 $ 3,981,805 Proved properties being amortized 11,645,084 49,444,654 61,089,738 Accumulated depreciation, depletion, amortization and impairment (10,616,331 ) (49,444,654 ) (60,060,985 ) Net capitalized costs $ 2,667,432 $ 2,343,126 $ 5,010,558 Amortization Rate The amortization rate per unit based on barrel of oil equivalents was $15.89 for the United States and $0 for South America for the year ended December 31, 2020. Acquisition, Exploration and Development Costs Incurred Costs incurred in oil and gas property acquisition, exploration and development activities as of December 31, 2019 and 2020 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 2020 United States South America Property acquisition costs: Proved $ 3,521 $ — Unproved 1,503,349 — Exploration costs — — Development costs 3,006 — Total costs incurred $ 1,509,876 $ — 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”), utilizing reserve definitions and pricing requirements prescribed by the SEC. R.K. Hall is an independent professional engineering firm 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. R.K. Hall and their respective employees have no interest in the Company and were objective in determining the results of the Company’s reserves. 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, 2018 2,723,940 350,697 — — 2,723,940 350,697 Revisions of 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 Discoveries Revisions to prior estimates (1,176,962 ) (139,338 ) — — (1,176,962 ) (139,338 ) Production (69,433 ) (11,385 ) — — (69,433 ) (11,385 ) Balance December 31, 2020 764,274 96,513 — — 764,274 96,513 Proved developed reserves at December 31, 2019 1,254,526 91,746 — — 1,254,526 91,746 at December 31, 2020 764,274 96,513 — — 764,274 96,513 Proved undeveloped reserves at December 31, 2019 756,143 155,490 — — 756,143 155,490 at December 31, 2020 — — — — — — As of December 31, 2019, the Company had proved undeveloped (“PUD”) reserves totaling 155,490 bbls and 756,143 mcf. As of December 31, 2020, the Company had no PUD reserves. No PUD reserves were converted to proved developed producing reserves in 2019 or 2020. 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 South 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, 2020: United South Total Future cash flows from sales of oil and gas $ 4,967,430 $ — $ 4,967,430 Future production cost (3,127,015 ) — (3,127,015 ) Future development cost — — — Future net cash flows 1,840,415 — 1,840,415 10% annual discount for timing of cash flow (666,283 ) — (666,283 ) Standardized measure of discounted future net cash flow relating to proved oil and gas reserves $ 1,174,132 $ — $ 1,174,132 Changes in standardized measure: Change due to current year operations $ (171,448 ) $ — $ (171,448 ) Change due to revisions in standardized variables: Accretion of discount 356,609 — 356,609 Net change in sales and transfer price, net of production costs (2,859,773 ) — (2,859,773 ) Net change in future development cost — — — Discoveries — — — Revision and others (1,164,932 ) — (1,164,932 ) Changes in production rates and other 1,447,583 — 1,447,583 Net (2,391,961 ) — (2,391,961 ) Beginning of year 3,566,093 — 3,566,093 End of year $ 1,174,132 $ — $ 1,174,132 |
Summarized Quarterly Financial
Summarized Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Financial Information (Unaudited) | NOTE 14—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 ) 2020 Operating revenue $ 147,136 $ 77,928 $ 126,425 $ 200,856 Loss from operations (828,098 ) (341,854 ) (262,494 ) (2,750,323 ) Net loss (850,990 ) (336,502 ) (259,765 ) (2,589,817 ) Loss per common share – basic $ (0.01 ) $ (0.06 ) $ (0.05 ) $ (0.38 ) Loss per common share – diluted $ (0.01 ) $ (0.06 ) $ (0.05 ) $ (0.38 ) |
Nature of Company and Summary_2
Nature of Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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. |
Reverse Stock Split | Reverse Stock Split In July 2020, the Company’s shareholders approved a reverse split of the Company’s common stock in a ratio to be determined, within a specified range, by the Company’s board of directors. The Company’s board of directors approved, and, effective at the close of business on July 31, 2020, the Company’s Certificate of Incorporation was amended to affect a 1-for-12.5 reverse split (the “Reverse Split”) of the Company’s common stock. Fractional shares otherwise issuable pursuant to the Reverse Split were rounded up to the next highest whole number of shares. As a result of the Reverse Split, the shares of common stock outstanding immediately prior to the Reverse Split decreased from 87,007,145 to 6,960,575 shares and the shares of common stock authorized for issuance decreased from 150,000,000 shares to 12,000,000 shares. Similarly, all shares of common stock issuable under outstanding options, warrants and shares of convertible preferred stock were adjusted, and applicable conversion or exercise prices were proportionately adjusted, to reflect the Reverse Split. The par value of the Company’s common stock remained unchanged at $0.001 per share. All references to shares of common stock and per share data for all periods in the financial statements and notes thereto have been adjusted to reflect the Reverse Split on a retroactive basis. |
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 $4,037,073 for the year ended December 31, 2020. As a result of the steep global economic slowdown that began in March 2020 as the coronavirus pandemic (“COVID-19”) spread, oil and gas demand and prices realized from oil and gas sales declined sharply and have only partially recovered as of December 31, 2020, with such demand and price declines expected to persist until governments worldwide are confident that the pandemic is adequately contained to permit renewed economic activity. Depending upon the duration of the pandemic and the resulting global economic slowdown, the Company may incur continuing declines in revenues and increased losses, associated from lower demand for energy and resulting depressed oil and gas prices. However, during 2020, the Company raised a total, net of offering costs, of $4.3 million in its ATM offering and, during January and February 2021, the Company raised an additional $6.5 million, net of offering costs, in additional ATM offerings. The Company believes that it has the ability to fund, from cash on hand, its operating costs and anticipated drilling operations, as well as mitigate the immediate impact of COVID-19, for at least the next twelve months following the issuance of these financial statements. The actual timing and number of wells drilled during 2021 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. 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, 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. |
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 2020, 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 cash deposits of $908,997 in excess of the FDIC’s current insured limit of $250,000 at December 31, 2020 for interest bearing accounts. The Company also had cash deposits of $2,547 in Colombian banks at December 31, 2020 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 2020, 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 2020 Series A Convertible Preferred Stock 434,000 434,000 Series B Convertible Preferred Stock 185,644 185,644 Stock warrants 98,400 98,400 Stock options 480,973 784,977 Totals 1,199,017 1,503,021 |
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 2020, 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 $364,810 for the years ended December 31, 2019 and 2020, respectively, and accumulated amortization, depreciation and impairment was $57,177,141 and $60,060,984 at December 31, 2019 and 2020, 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, 2019. Therefore, the related depreciation expense was $0 and $0 for 2019 and 2020, respectively, and accumulated depreciation was $90,004 and $90,004 at December 31, 2019 and 2020, 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. Uncertain Tax Positions The Company evaluates uncertain tax positions to recognize a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard or are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statute of limitations. De-recognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained. The Company is subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Accordingly, the Company may incur additional tax expense based upon the outcomes of such matters, including any interest or penalties. In addition, when applicable, the Company will adjust tax expense to reflect the Company’s ongoing assessments of such matters, which require judgment and can materially increase or decrease its effective rate as well as impact operating results. There were no liabilities recorded for uncertain tax positions at December 31, 2020 and 2019. |
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 2020. 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 2020, 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 2020, respectively. |
Recent Accounting Developments | Recent Accounting Developments 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, 2020 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, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Computation of Diluted Net Loss Per Share | For the years ended December 31, 2019 and 2020, 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 2020 Series A Convertible Preferred Stock 434,000 434,000 Series B Convertible Preferred Stock 185,644 185,644 Stock warrants 98,400 98,400 Stock options 480,973 784,977 Totals 1,199,017 1,503,021 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020: Year Ended December 31, 2019 2020 Oil sales $ 762,039 $ 381,611 Natural gas sales 79,889 62,103 Natural gas liquids sales 156,064 108,631 Total revenue from customers $ 997,992 $ 552,345 |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 included the following: United States South America Total Evaluated properties being amortized $ 11,645,084 $ 49,444,654 $ 61,089,738 Accumulated depreciation, depletion, amortization and impairment (10,616,331 ) (49,444,654 ) (60,060,985 ) Net capitalized costs $ 1,028,753 $ — $ 1,028,753 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 |
Schedule of Unevaluated Oil and Gas Properties Not Subject to Amortization | Unevaluated oil and gas properties not subject to amortization at December 31, 2020 included the following: United States South America Total Leasehold acquisition costs $ 1,503,349 $ 143,847 $ 1,647,196 Geological, geophysical, screening and evaluation costs 135,330 2,199,279 2,334,609 Total $ 1,638,679 $ 2,343,126 $ 3,981,805 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 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020. 2019 2020 ARO liability at January 1 $ 38,754 $ 44,186 Additions from new drilling — 26,685 Dispositions from sales of oil and gas properties — (10,677 ) Changes in estimates — 449 Accretion expense 5,432 3,286 ARO liability at December 31 $ 44,186 $ 63,929 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | Option activity during 2019 and 2020 was as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Outstanding at December 31, 2018 398,306 $ 9.625 Granted 88,000 $ 2.75 Forfeited (5,333 ) $ 8.50 Outstanding at December 31, 2019 480,973 $ 8.50 Granted (1) 254,000 $ 1.46 Forfeited (4,000 ) $ 176.00 Outstanding at December 31, 2020 730,973 $ 5.07 6.73 $ 74,920 Exercisable at December 31, 2020 711,244 $ 5.13 6.69 $ 74,024 (1) Excludes 54,000 of options granted in November 2020 under the Company’s 2021 Plan, which is pending shareholder approval and which decision is outside the Company’s control. |
Schedule of Stock-Based Compensation | The following table reflects stock-based compensation recorded by the Company for 2019 and 2020: 2019 2020 Stock-based compensation expense from stock options and warrants included in general and administrative expense $ 156,091 $ 434,581 Earnings per share effect of stock-based compensation expense $ (0.00 ) $ (0.06 ) |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of Warrant Activity | A summary of warrant activity and related information for 2019 and 2020 is presented below: Warrants Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at December 31, 2018 4,000 $ 6.87 Issued 94,400 2.50 Exercised — — Expired — $ — Outstanding at December 31, 2019 98,400 $ 2.63 Issued — — Exercised — — Expired — — Outstanding at December 31, 2020 98,400 $ 2.63 $ 151,403 Exercisable at December 31, 2020 98,400 $ 2.63 $ 151,403 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020. 2019 2020 Income (loss) before income taxes $ (2,515,694 ) $ (4,037,073 ) Income tax expense (benefit) computed at statutory rates $ (528,296 ) $ (853,287 ) Permanent differences, nondeductible expenses 376 9 Increase (decrease) in valuation allowance 613,162 801,291 State and Local Taxes — (54,257 ) Other adjustment 2,103 105,715 Deferred True-Up (78,112 ) 529 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 2020 are set out below. 2019 2020 Non-Current Deferred tax assets: Net operating loss carry forward $ 11,481,979 $ 11,702,841 Foreign tax credit carry forward 505,745 505,745 Deferred state tax 13,966 13,966 Stock compensation 502,210 482,661 Book in excess of tax depreciation, depletion and capitalization methods on oil and gas properties (661,614 ) (59,608 ) Other (196,560 ) (196,560 ) ASC 842 lease standard – building lease 7,520 5,310 Colombia future tax obligations — Total Non-Current Deferred tax assets 11,653,246 12,454,355 Valuation Allowance (11,653,246 ) (12,454,355 ) Net deferred tax asset $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020: Right of use asset $ 194,125 Operating lease, current liability $ 107,862 Long-term operating lease liability 111,548 Total lease liability $ 219,410 |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenues and Long Lived Assets Attributable to Geographical Area | Revenues for the years ended December 31, 2019 and 2020 and long-lived assets as of December 31, 2019 and 2020 attributable to each geographical area are presented below: 2019 2020 Revenues Long Lived Assets, Net Revenues Long Lived Assets, Net North America $ 997,992 $ 4,026,429 $ 552,345 $ 2,667,432 South America — 2,343,126 — 2,343,126 Total $ 997,992 $ 6,369,555 $ 552,345 $ 5,010,558 |
Supplemental Information on O_2
Supplemental Information on Oil and Gas Exploration, Development and Production Activities (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 Revenues North America $ 997,992 $ 552,345 South America — — $ 997,992 $ 552,345 Production Cost North America $ 789,708 $ 403,974 South America — — $ 789,708 $ 403,974 |
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, 2020, 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 $ 1,638,679 $ 2,343,126 $ 3,981,805 Proved properties being amortized 11,645,084 49,444,654 61,089,738 Accumulated depreciation, depletion, amortization and impairment (10,616,331 ) (49,444,654 ) (60,060,985 ) Net capitalized costs $ 2,667,432 $ 2,343,126 $ 5,010,558 |
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 2020 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 2020 United States South America Property acquisition costs: Proved $ 3,521 $ — Unproved 1,503,349 — Exploration costs — — Development costs 3,006 — Total costs incurred $ 1,509,876 $ — |
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, 2018 2,723,940 350,697 — — 2,723,940 350,697 Revisions of 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 Discoveries Revisions to prior estimates (1,176,962 ) (139,338 ) — — (1,176,962 ) (139,338 ) Production (69,433 ) (11,385 ) — — (69,433 ) (11,385 ) Balance December 31, 2020 764,274 96,513 — — 764,274 96,513 Proved developed reserves at December 31, 2019 1,254,526 91,746 — — 1,254,526 91,746 at December 31, 2020 764,274 96,513 — — 764,274 96,513 Proved undeveloped reserves at December 31, 2019 756,143 155,490 — — 756,143 155,490 at December 31, 2020 — — — — — — |
Standardized Measure of Discounted Future Net Cash Flows | Standardized measure of discounted future net cash flows at December 31, 2019: United South 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, 2020: United South Total Future cash flows from sales of oil and gas $ 4,967,430 $ — $ 4,967,430 Future production cost (3,127,015 ) — (3,127,015 ) Future development cost — — — Future net cash flows 1,840,415 — 1,840,415 10% annual discount for timing of cash flow (666,283 ) — (666,283 ) Standardized measure of discounted future net cash flow relating to proved oil and gas reserves $ 1,174,132 $ — $ 1,174,132 Changes in standardized measure: Change due to current year operations $ (171,448 ) $ — $ (171,448 ) Change due to revisions in standardized variables: Accretion of discount 356,609 — 356,609 Net change in sales and transfer price, net of production costs (2,859,773 ) — (2,859,773 ) Net change in future development cost — — — Discoveries — — — Revision and others (1,164,932 ) — (1,164,932 ) Changes in production rates and other 1,447,583 — 1,447,583 Net (2,391,961 ) — (2,391,961 ) Beginning of year 3,566,093 — 3,566,093 End of year $ 1,174,132 $ — $ 1,174,132 |
Summarized Quarterly Financia_2
Summarized Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 $ 273,144 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 ) 2020 Operating revenue $ 147,136 $ 77,928 $ 126,425 $ 200,856 Loss from operations (828,098 ) (341,854 ) (262,494 ) (2,750,323 ) Net loss (850,990 ) (336,502 ) (259,765 ) (2,589,817 ) Loss per common share – basic $ (0.01 ) $ (0.06 ) $ (0.05 ) $ (0.38 ) Loss per common share – diluted $ (0.01 ) $ (0.06 ) $ (0.05 ) $ (0.38 ) |
Nature of Company and Summary_4
Nature of Company and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2020 | Feb. 28, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 | |
Reverse split, description | 1-for-12.5 reverse split | ||||||||||||
Common stock, shares authorized | 150,000,000 | 12,000,000 | 12,000,000 | 12,000,000 | 12,000,000 | ||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Net loss | $ (2,589,817) | $ (259,765) | $ (336,502) | $ (850,990) | $ (1,489,018) | $ (304,633) | $ (482,423) | $ (239,620) | $ (4,037,074) | $ (2,515,694) | |||
Proceeds from atm offering | 4,434,169 | 606,960 | |||||||||||
Cash equivalents | |||||||||||||
Cash deposits | 908,997 | 908,997 | |||||||||||
Current insured limit on interest bearing accounts | 250,000 | 250,000 | |||||||||||
Depletion and amortization | 364,810 | 438,553 | |||||||||||
Accumulated amortization, depreciation and impairment | 60,150,988 | 57,267,145 | $ 60,150,988 | 57,267,145 | |||||||||
Discount rate, net of related tax effects | 10.00% | ||||||||||||
Impairment of oil and gas properties | $ 2,519,032 | 745,691 | |||||||||||
Office Equipment [Member] | |||||||||||||
Depletion and amortization | 0 | 0 | |||||||||||
Accumulated amortization, depreciation and impairment | $ 90,004 | 90,004 | 90,004 | 90,004 | $ 90,004 | ||||||||
Colombian Banks [Member] | |||||||||||||
Cash deposits | $ 2,547 | $ 2,547 | |||||||||||
Subsequent Event [Member] | |||||||||||||
Proceeds from atm offering | $ 6,500,000 | ||||||||||||
ATM Offering [Member] | |||||||||||||
Proceeds from atm offering | $ 4,300,000 | ||||||||||||
Minimum [Member] | |||||||||||||
Number of reverse split, shares | 87,007,145 | ||||||||||||
Minimum [Member] | Office Equipment [Member] | |||||||||||||
Estimated useful life | 3 years | ||||||||||||
Maximum [Member] | |||||||||||||
Number of reverse split, shares | 6,960,575 | ||||||||||||
Maximum [Member] | Office Equipment [Member] | |||||||||||||
Estimated useful life | 5 years |
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, 2020 | Dec. 31, 2019 | |
Totals | 1,503,021 | 1,199,017 |
Series A Convertible Preferred Stock [Member] | ||
Totals | 434,000 | 434,000 |
Series B Convertible Preferred Stock [Member] | ||
Totals | 185,644 | 185,644 |
Stock Warrants [Member] | ||
Totals | 98,400 | 98,400 |
Stock Options [Member] | ||
Totals | 784,977 | 480,973 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details Narrative) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligations |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Disaggregates Revenue by Significant Product (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Total revenue from customers | $ 552,345 | $ 997,992 |
Oil Sales [Member] | ||
Total revenue from customers | 381,611 | 762,039 |
Natural Gas Sales [Member] | ||
Total revenue from customers | 62,103 | 79,889 |
Natural Gas Liquids Sales [Member] | ||
Total revenue from customers | $ 108,631 | $ 156,064 |
Escrow Receivable (Details Narr
Escrow Receivable (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2016 | |
Escrow Receivable | |||
Allowance for escrow receivables | $ 262,016 | ||
Proceeds from recoveries of escrowed funds | $ 164,706 | ||
Non-recurring other income | $ 164,706 |
Oil and Gas Properties (Details
Oil and Gas Properties (Details Narrative) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Investment in development of oil and gas properties | $ 1,573,272 |
Properties Not Subject to Amortization [Member] | |
Capitalized oil and gas properties | 1,503,349 |
Properties Subject to Amortization [Member] | |
Capitalized oil and gas properties | 6,527 |
Yoakum County, Texas [Member] | |
Acquisition and development cost of oil and gas properties | 1,503,349 |
Permian Basin [Member] | |
Acquisition and development cost of oil and gas properties | 6,527 |
Colombia [Member] | |
Acquisition and development cost of oil and gas properties | 63,396 |
Hupecol Meta [Member] | |
Capitalized oil and gas properties | $ 63,396 |
Oil and Gas Properties - Schedu
Oil and Gas Properties - Schedule of Evaluated Oil and Gas Properties Subject to Amortization (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accumulated depreciation, depletion, amortization and impairment | $ (60,060,985) | |
United States [Member] | ||
Accumulated depreciation, depletion, amortization and impairment | (10,616,331) | |
South America [Member] | ||
Accumulated depreciation, depletion, amortization and impairment | (49,444,654) | |
Oil and Gas Properties [Member] | ||
Evaluated properties being amortized | 61,089,738 | $ 61,068,240 |
Accumulated depreciation, depletion, amortization and impairment | (60,060,985) | (57,177,141) |
Net capitalized costs | 1,028,753 | 3,891,099 |
Oil and Gas Properties [Member] | United States [Member] | ||
Evaluated properties being amortized | 11,645,084 | 11,613,538 |
Accumulated depreciation, depletion, amortization and impairment | (10,616,331) | (7,722,439) |
Net capitalized costs | 1,028,753 | 3,891,099 |
Oil and Gas Properties [Member] | South America [Member] | ||
Evaluated properties being amortized | 49,444,654 | 49,454,702 |
Accumulated depreciation, depletion, amortization and impairment | (49,444,654) | (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, 2020 | Dec. 31, 2019 |
Leasehold acquisition costs | $ 1,647,196 | $ 143,847 |
Geological, geophysical, screening and evaluation costs | 2,334,609 | 2,334,609 |
Total | 3,981,805 | 2,478,456 |
United States [Member] | ||
Leasehold acquisition costs | 1,503,349 | |
Geological, geophysical, screening and evaluation costs | 135,330 | 135,330 |
Total | 1,638,679 | 135,330 |
South America [Member] | ||
Leasehold acquisition costs | 143,847 | 143,847 |
Geological, geophysical, screening and evaluation costs | 2,199,279 | 2,199,279 |
Total | $ 2,343,126 | $ 2,343,126 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Changes in Our Asset Retirement Liability (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
ARO liability at January 1 | $ 44,186 | $ 38,754 |
Additions from new drilling | 26,685 | |
Dispositions from sales of oil and gas properties | (10,677) | |
Changes in estimates | 449 | |
Accretion expense | 3,286 | 5,432 |
ARO liability at December 31 | $ 63,929 | $ 44,186 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amortization of debt discount | $ 23,467 | $ 162,533 | ||
Maximum [Member] | ||||
Bridge loan, debt discount | $ 144,948 | |||
Bridge Loan Notes [Member] | ||||
Note, face amount | $ 621,052 | |||
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 | 3,350 | 21,439 | ||
Amortization of debt discount | $ 23,467 | 152,533 | ||
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% | |||
Interest expense | $ 10,000 | |||
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 | |||||||
Nov. 30, 2020 | Jul. 31, 2020 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2017 | Dec. 31, 2008 | ||
Number of options granted during period | 254,000 | [1] | 88,000 | ||||||
Option term | 6 years 8 months 23 days | ||||||||
Stock option exercisable price per share | $ 5.13 | ||||||||
Stock-based compensation | $ 434,581 | $ 156,091 | |||||||
Weighted average remaining contractual term of the exercisable options | 6 years 8 months 9 days | ||||||||
Issuance of common stock, shares | 446,553 | ||||||||
Directors and Non-executive Employee [Member] | |||||||||
Number of options granted during period | 88,000 | ||||||||
Option term | 10 years | ||||||||
Stock option exercisable price per share | $ 2.70625 | ||||||||
Description on vesting of stock options | The options have a ten-year life and are exercisable at $2.70625 per share, the market price on the date of grant. 80,000 of the options vest one year from the date of grant. 8,000 of the options vest 20% on the date of grant and 80% nine months from the date of grant. | ||||||||
Shares available for issuance | 80,000 | ||||||||
Fair value of options granted | $ 200,562 | ||||||||
Risk free interest rate | 2.10% | ||||||||
Stock option life, term | 10 years | ||||||||
Expected stock volatility | 85.70% | ||||||||
Expected dividend yield | 0.00% | ||||||||
Directors [Member] | |||||||||
Number of options granted during period | 8,000 | ||||||||
Option term | 10 years | ||||||||
Stock option exercisable price per share | $ 1.61 | ||||||||
Description on vesting of stock options | The options have a ten-year life and are exercisable at $1.61 per share. The options vest 20% on the date of grant and 80% nine months from the date of grant. | ||||||||
Fair value of options granted | $ 13,080 | ||||||||
Risk free interest rate | 0.64% | ||||||||
Stock option life, term | 10 years | ||||||||
Expected stock volatility | 97.34% | ||||||||
Expected dividend yield | 0.00% | ||||||||
Chief Executive Officer and Non-Executive Employee [Member] | |||||||||
Number of options granted during period | 300,000 | ||||||||
Option term | 10 years | ||||||||
Stock option exercisable price per share | $ 1.45 | ||||||||
Description on vesting of stock options | The options have a ten-year life and are exercisable at $1.45 per share. 246,000 of the options were granted under the 2017 Plan and vested on the date of grant and 54,000 of the options vest on approval of the 2021 Plan by shareholders. | ||||||||
Shares available for issuance | 246,000 | ||||||||
Fair value of options granted | $ 320,160 | ||||||||
Risk free interest rate | 0.00% | ||||||||
Stock option life, term | 10 years | ||||||||
Expected stock volatility | 103.29% | ||||||||
Expected dividend yield | 0.00% | ||||||||
2008 Equity Incentive Plan [Member] | Maximum [Member] | |||||||||
Number of options authorized to purchase shares of common stock | 480,000 | ||||||||
2017 Equity Incentive Plan [Member] | Maximum [Member] | |||||||||
Number of options authorized to purchase shares of common stock | 400,000 | ||||||||
2021 Equity Incentive Plan [Member] | |||||||||
Number of options granted during period | 54,000 | ||||||||
2021 Equity Incentive Plan [Member] | Maximum [Member] | Forecast [Member] | |||||||||
Number of options authorized to purchase shares of common stock | 500,000 | ||||||||
2021 Equity Incentive Plan [Member] | |||||||||
Number of options non-vested | 19,733 | ||||||||
Unrecognized share-based compensation expense related to non-vested stock options | $ 15,110 | ||||||||
Weighted average period for unrecognition of compensation expense | 4 months 2 days | ||||||||
Weighted average remaining contractual term of the outstanding options | 6 years 8 months 23 days | ||||||||
Weighted average remaining contractual term of the exercisable options | 6 years 8 months 9 days | ||||||||
Issuance of common stock, shares | 446,000 | ||||||||
[1] | Excludes 54,000 of options granted in November 2020 under the Company's 2021 Plan, which is pending shareholder approval and which decision is outside the Company's control. |
Stock-Based Compensation Expens
Stock-Based Compensation Expense - Summary of Stock Option Activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Share-based Payment Arrangement [Abstract] | |||
Options Outstanding at beginning of the period | 480,973 | 398,306 | |
Options Granted | 254,000 | [1] | 88,000 |
Options Forfeited | (4,000) | (5,333) | |
Options Outstanding at end of the period | 730,973 | 480,973 | |
Options Outstanding Exercisable at end of the period | 711,244 | ||
Weighted-Average Exercise Price Outstanding at beginning of the period | $ 8.50 | $ 9.625 | |
Weighted-Average Exercise Price Granted | 1.46 | [1] | 2.75 |
Weighted-Average Exercise Price Forfeited | 176 | 8.50 | |
Weighted-Average Exercise Price Outstanding at end of the period | 5.07 | $ 8.50 | |
Weighted-Average Exercise Price Outstanding Exercisable at end of the period | $ 5.13 | ||
Weighted Average Remaining Contractual Term Options, Outstanding | 6 years 8 months 23 days | ||
Weighted Average Remaining Contractual Term Options, Exercisable | 6 years 8 months 9 days | ||
Aggregate Intrinsic Value Outstanding at end of the period | $ 74,920 | ||
Aggregate Intrinsic Value Outstanding Exercisable at end of the period | $ 74,024 | ||
[1] | Excludes 54,000 of options granted in November 2020 under the Company's 2021 Plan, which is pending shareholder approval and which decision is outside the Company's control. |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense - Summary of Stock Option Activity (Details) (Parenthetical) - shares | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2020 | Dec. 31, 2020 | [1] | Dec. 31, 2019 | |
Options granted | 254,000 | 88,000 | ||
2021 Equity Incentive Plan [Member] | ||||
Options granted | 54,000 | |||
[1] | Excludes 54,000 of options granted in November 2020 under the Company's 2021 Plan, which is pending shareholder approval and which decision is outside the Company's control. |
Stock-Based Compensation Expe_3
Stock-Based Compensation Expense - Schedule of Stock-Based Compensation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Stock-based compensation expense from stock options and warrants included in general and administrative expense | $ 434,581 | $ 156,091 |
Earnings per share effect of stock-based compensation expense | $ 0 | $ 0 |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||
Feb. 28, 2021 | Sep. 30, 2019 | May 31, 2019 | Sep. 30, 2017 | May 31, 2017 | Jan. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | 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 | $ 434,581 | $ 156,091 | ||||||||||
Consultant Warrants [Member] | ||||||||||||
Number of warrants issued to purchase common stock | 4,000 | 1,000 | 1,000 | 1,000 | 1,000 | |||||||
Warrants expiration date | Dec. 31, 2021 | |||||||||||
Warrants exercise price | $ 6.875 | |||||||||||
Expiration term of warrants | The consultant was terminated in May 2018. | |||||||||||
Number of unvested portion of warrants | 3,000 | |||||||||||
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% | |||||||||||
Stock-based compensation | $ 0 | 0 | ||||||||||
Bridge Loan Warrants [Member] | ||||||||||||
Number of warrants issued to purchase common stock | 94,400 | |||||||||||
Warrants expiration date | Sep. 18, 2029 | |||||||||||
Warrants exercise price | $ 2.50 | |||||||||||
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 | $ 2.50 | |||||||||||
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 | $ 130,950 | $ 129,450 | ||||||||||
Series A Preferred Stock [Member] | Subsequent Event [Member] | ||||||||||||
Number of shares converted | 60 | |||||||||||
Conversion of stock, shares converted | 24,000 | |||||||||||
Value of shares redeemed during period | $ 1,070,000 | |||||||||||
Accrued dividends | 21,700 | |||||||||||
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 | |||||||||||
Series B Preferred Stock [Member] | ||||||||||||
Preferred stock, shares issued | 835 | |||||||||||
Preferred stock, shares outstanding | 835 | |||||||||||
Preferred stock dividend percentage | 12.00% | |||||||||||
Preferred stock liquidation preference price per share | $ 1,000 | |||||||||||
Payments for dividend | $ 100,950 | $ 100,950 | ||||||||||
Common stock conversion basis | Holder into shares of common stock at a conversion price of $4.50 per share | |||||||||||
Common stock conversion price per share | $ 4.50 | |||||||||||
Series B Preferred Stock [Member] | Subsequent Event [Member] | ||||||||||||
Value of shares redeemed during period | 900,000 | |||||||||||
Accrued dividends | $ 16,700 | |||||||||||
Series B Preferred Stock [Member] | Minimum [Member] | ||||||||||||
Premium issuance price decreased percentage | 12.00% | |||||||||||
Series B Preferred Stock [Member] | Maximum [Member] | ||||||||||||
Premium issuance price decreased percentage | 0.00% | |||||||||||
Sales Agreement (2019 ATM Offering) [Member] | ||||||||||||
Sale of stock shares of common stock value | $ 606,960 | |||||||||||
Number shares sold | 1,684,760 | 277,800 | ||||||||||
Commissions and expenses | $ 4,376,549 | |||||||||||
Subscription receivable attributable to shares sold for offering | $ 58,575 | |||||||||||
Sales Agreement (2019 ATM Offering) [Member] | WestPark Capital, Inc [Member] | ||||||||||||
Sale of stock shares of common stock value | $ 5,200,000 | |||||||||||
Commission percentage | 3.00% | |||||||||||
Reimbursement of expenses connection with offering | $ 18,000 |
Capital Stock - Summary of Warr
Capital Stock - Summary of Warrant Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Warrants Outstanding, Beginning | 98,400 | 4,000 |
Warrants Outstanding, Issued | 94,400 | |
Warrants Outstanding, Exercised | ||
Warrants Outstanding, Expired | ||
Warrants Outstanding, Ending | 98,400 | 98,400 |
Warrants Outstanding, Exercisable | 98,400 | |
Weighted-Average Exercise Price Outstanding, Beginning | $ 2.63 | $ 6.87 |
Weighted-Average Exercise Price, Issued | 2.50 | |
Weighted-Average Exercise Price, Exercised | ||
Weighted-Average Exercise Price, Expired | ||
Weighted-Average Exercise Price Outstanding, Ending | $ 2.63 | $ 2.63 |
Weighted-Average Exercise Price Outstanding, Exercisable | 2.63 | |
Aggregate Intrinsic Value, Ending | $ 151,403 | |
Aggregate Intrinsic Value, Exercisable | $ 151,403 |
Taxes (Details Narrative)
Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | $ 55,089,193 | |
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 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. | |
Effective tax rate | 25.00% | |
Foreign tax expense | ||
State [Member] | ||
Net operating loss expiration year | State NOL expiration began 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, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income taxes | $ (4,037,074) | $ (2,515,694) |
Income tax expense (benefit) computed at statutory rates | (853,287) | (528,296) |
Permanent differences, nondeductible expenses | 9 | 376 |
Increase (decrease) in valuation allowance | 801,291 | 613,162 |
State and Local Taxes | (54,257) | |
Other adjustment | 105,715 | 2,103 |
Deferred True-Up | 529 | (78,112) |
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, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry forward | $ 11,702,841 | $ 11,481,979 |
Foreign tax credit carry forward | 505,745 | 505,745 |
Deferred state tax | 13,966 | 13,966 |
Stock compensation | 482,661 | 502,210 |
Book in excess of tax depreciation, depletion and capitalization methods on oil and gas properties | (59,608) | (661,614) |
Other | (196,560) | (196,560) |
ASC 842 lease standard - building lease | 5,310 | 7,520 |
Colombia future tax obligations | ||
Total Non-Current Deferred tax assets | 12,454,355 | 11,653,246 |
Valuation Allowance | (12,454,355) | (11,653,246) |
Net deferred tax asset |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2013 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating lease agreement expire date | Oct. 31, 2022 | ||
Right-of-use asset | $ 194,123 | $ 281,489 | |
Operating leases liability | 219,410 | 317,300 | |
Short-term lease liability | 110,577 | 97,890 | |
Operating cash outflows related to operating lease liabilities | (111,548) | (182,539) | |
Amortization of right of use asset | $ 87,366 | ||
Operating lease, weighted average remaining lease term | 1 year 9 months 18 days | ||
Weighted average discount rate | 12.00% | ||
Rental expense | $ 120,193 | 120,193 | |
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 | 6,538 | 84 | |
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, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Right of use asset | $ 194,123 | $ 281,489 |
Operating lease, current liability | 110,577 | 97,890 |
Long-term operating lease liability | 107,862 | 219,410 |
Total lease liability | $ 219,410 | $ 317,300 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($) | 1 Months Ended | ||
Feb. 28, 2021 | Jan. 31, 2021 | Mar. 31, 2021 | |
Commission perecentage from gross proceeds of sale of share | 3.00% | 3.00% | |
Hupecol Meta [Member] | |||
Additional interests acquired | $ 99,716 | ||
Percentage of interests acquired | 7.85% | ||
Hupecol Meta [Member] | Venus Exploration Area [Member] | |||
Percentage of interests acquired | 6.99% | ||
Hupecol Meta [Member] | CPO-11 block [Member] | |||
Percentage of interests acquired | 3.495% | ||
Sales Agreement (2021 ATM Offering) [Member] | Univest Securities, LLC [Member] | Maximum [Member] | |||
Sale of stock shares of common stock value | $ 4,768,000 | ||
Reimbursement of expenses connection with offering | 18,000 | ||
ATM Offering [Member] | |||
Sale of stock shares of common stock value | $ 4,600,000 | ||
Number shares sold | 2,108,520 | ||
Sales Agreement (2021 Supplemental ATM Offering) [Member] | Univest Securities, LLC [Member] | Maximum [Member] | |||
Sale of stock shares of common stock value | $ 2,030,000 | ||
Reimbursement of expenses connection with offering | 18,000 | ||
Supplemental ATM Offering [Member] | |||
Sale of stock shares of common stock value | $ 1,940,000 | ||
Number shares sold | 813,100 |
Geographical Information - Sche
Geographical Information - Schedule of Revenues and Long Lived Assets Attributable to Geographical Area (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 552,345 | $ 997,992 |
Long Lived Assets, Net | 5,010,558 | 6,369,555 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 552,346 | 997,992 |
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 | 552,345 | 997,992 |
Long Lived Assets, Net | 2,667,432 | 4,026,429 |
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 | $ 2,343,126 |
Supplemental Information on O_3
Supplemental Information on Oil and Gas Exploration, Development and Production Activities (Unaudited) (Details Narrative) | 12 Months Ended | |
Dec. 31, 2020$ / sharesbbl | Dec. 31, 2019bbl | |
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 | 756,143 | |
Oil [Member] | ||
Proved undeveloped reserves | 155,490 | |
United States [Member] | ||
Amortization rate per unit | $ / shares | $ 15.89 | |
United States [Member] | Oil [Member] | ||
Proved undeveloped reserves | 155,490 | |
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, 2020 | Dec. 31, 2019 | |
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Revenues | $ 552,345 | $ 997,992 |
Production Cost | 403,974 | 789,708 |
North America [Member] | ||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Revenues | 552,346 | 997,992 |
Production Cost | 403,974 | 789,708 |
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, 2020 | Dec. 31, 2019 |
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Unproved properties not being amortized | $ 3,981,805 | $ 2,478,456 |
Proved properties being amortized | 61,089,738 | |
Accumulated depreciation, depletion, amortization and impairment | (60,060,985) | |
Net capitalized costs | 5,010,558 | |
United States [Member] | ||
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Unproved properties not being amortized | 1,638,679 | 135,330 |
Proved properties being amortized | 11,645,084 | |
Accumulated depreciation, depletion, amortization and impairment | (10,616,331) | |
Net capitalized costs | 2,667,432 | |
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 | $ 2,343,126 |
Proved properties being amortized | 49,444,654 | |
Accumulated depreciation, depletion, amortization and impairment | (49,444,654) | |
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, 2020 | Dec. 31, 2019 | |
United States [Member] | ||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Proved | $ 3,521 | $ 531,417 |
Unproved | 1,503,349 | |
Exploration costs | ||
Development costs | 3,006 | 138,945 |
Total costs incurred | 1,509,876 | 670,362 |
South America [Member] | ||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Proved | ||
Unproved | 21,957 | |
Exploration costs | ||
Development costs | ||
Total costs incurred | $ 21,957 |
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) - bbl | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Gas [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | 2,010,669 | 2,723,940 |
Revisions of prior estimates | (1,176,962) | (596,642) |
Production | (69,433) | (116,629) |
Discoveries | ||
Balance at end of the period | 764,274 | 2,010,669 |
Proved developed reserves | 764,274 | 1,254,526 |
Proved undeveloped reserves | 756,143 | |
Oil [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | 247,236 | 350,697 |
Revisions of prior estimates | (139,338) | (89,787) |
Production | (11,385) | (13,674) |
Discoveries | ||
Balance at end of the period | 96,513 | 247,236 |
Proved developed reserves | 96,513 | 91,746 |
Proved undeveloped reserves | 155,490 | |
United States [Member] | Gas [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | 2,010,669 | 2,723,940 |
Revisions of prior estimates | (1,176,962) | (596,642) |
Production | (69,433) | (116,629) |
Discoveries | ||
Balance at end of the period | 764,274 | 2,010,669 |
Proved developed reserves | 764,275 | 1,254,526 |
Proved undeveloped reserves | 756,143 | |
United States [Member] | Oil [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | 247,236 | 350,697 |
Revisions of prior estimates | (139,338) | (89,787) |
Production | (11,385) | (13,674) |
Discoveries | ||
Balance at end of the period | 96,513 | 247,236 |
Proved developed reserves | 96,512 | 91,746 |
Proved undeveloped reserves | 155,490 | |
South America [Member] | Gas [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 | ||
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, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ||||
Future cash flows from sales of oil and gas | $ 4,967,430 | $ 16,199,011 | ||
Future production cost | (3,127,015) | (4,665,423) | ||
Future development cost | (3,076,020) | |||
Future net cash flows | 1,840,415 | 8,457,568 | ||
10% annual discount for timing of cash flow | (666,283) | (4,891,475) | ||
Standardized measure of discounted future net cash flow relating to proved oil and gas reserves | $ 1,174,132 | $ 3,566,093 | 1,174,132 | 3,566,093 |
Change due to current year operations Sales, net of production costs | (171,448) | (208,284) | ||
Accretion of discount | 356,609 | 771,465 | ||
Net change in sales and transfer price, net of production costs | (2,859,773) | (3,358,522) | ||
Net change in future development cost | (1,558,788) | |||
Discoveries | ||||
Revision and others | (1,164,932) | (1,540,161) | ||
Changes in production rates and other | 1,447,583 | (1,371,841) | ||
Net | (2,391,961) | (4,148,555) | ||
Beginning of year | 3,566,093 | 7,714,648 | ||
End of year | 1,174,132 | 3,566,093 | ||
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 | 4,967,430 | 16,199,011 | ||
Future production cost | (3,127,015) | (4,665,423) | ||
Future development cost | (3,076,020) | |||
Future net cash flows | 1,840,415 | 8,457,568 | ||
10% annual discount for timing of cash flow | (666,283) | (4,891,475) | ||
Standardized measure of discounted future net cash flow relating to proved oil and gas reserves | 1,174,132 | 3,566,093 | 1,174,132 | 3,566,093 |
Change due to current year operations Sales, net of production costs | (171,448) | (208,284) | ||
Accretion of discount | 356,609 | 771,465 | ||
Net change in sales and transfer price, net of production costs | (2,859,773) | (3,358,522) | ||
Net change in future development cost | 1,558,788 | |||
Discoveries | ||||
Revision and others | (1,164,932) | (1,540,161) | ||
Changes in production rates and other | 1,447,583 | (1,371,841) | ||
Net | (2,391,961) | (4,148,555) | ||
Beginning of year | 3,566,093 | 7,714,648 | ||
End of year | 1,174,132 | 3,566,093 | ||
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Operating revenue | $ 200,856 | $ 126,425 | $ 77,928 | $ 147,136 | $ 273,144 | $ 264,935 | $ 209,193 | $ 250,720 | $ 552,345 | $ 997,992 |
Loss from operations | (2,750,323) | (262,494) | (341,854) | (828,098) | (1,325,308) | (284,445) | (482,943) | (240,987) | (4,182,769) | (2,333,683) |
Net loss | $ (2,589,817) | $ (259,765) | $ (336,502) | $ (850,990) | $ (1,489,018) | $ (304,633) | $ (482,423) | $ (239,620) | $ (4,037,074) | $ (2,515,694) |
Loss per common share - basic | $ (0.38) | $ (0.05) | $ (0.06) | $ (0.01) | $ (0.02) | $ (0.01) | $ (0.01) | $ 0 | ||
Loss per common share - diluted | $ (0.38) | $ (0.05) | $ (0.06) | $ (0.01) | $ (0.02) | $ (0.01) | $ (0.01) | $ 0 |