Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 31, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 1-32955 | ||
Entity Registrant Name | HOUSTON AMERICAN ENERGY CORP. | ||
Entity Central Index Key | 0001156041 | ||
Entity Tax Identification Number | 76-0675953 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 801 Travis Street | ||
Entity Address, Address Line Two | Suite 1425 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77002 | ||
City Area Code | (713) | ||
Local Phone Number | 222-6966 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | HUSA | ||
Security Exchange Name | NYSEAMER | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 41.8 | ||
Entity Common Stock, Shares Outstanding | 10,622,518 | ||
Documents Incorporated by Reference [Text Block] | Portions of the Company’s Proxy Statement for its 2022 Annual Meeting are incorporated by reference into Part III of this Report | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Firm ID | 688 | ||
Auditor Name | Marcum LLP | ||
Auditor Location | New York, New York |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash | $ 4,547,210 | $ 4,894,577 |
Accounts receivable – oil and gas sales | 164,575 | 214,662 |
Prepaid expenses and other current assets | 84,544 | 85,403 |
TOTAL CURRENT ASSETS | 4,796,329 | 5,194,642 |
PROPERTY AND EQUIPMENT | ||
Costs subject to amortization | 62,786,267 | 62,771,222 |
Costs not being amortized | 2,343,126 | 2,343,126 |
Office equipment | 90,004 | 90,004 |
Total | 65,219,397 | 65,204,352 |
Accumulated depletion, depreciation, amortization, and impairment | (60,602,051) | (60,396,594) |
PROPERTY AND EQUIPMENT, NET | 4,617,346 | 4,807,758 |
Cost method investment | 2,102,139 | 455,779 |
Right of use asset | 212,202 | 272,507 |
Other assets | 3,167 | 3,167 |
TOTAL ASSETS | 11,731,183 | 10,733,853 |
CURRENT LIABILITIES | ||
Accounts payable | 113,741 | 69,607 |
Accrued expenses | 16,035 | 15,176 |
Short-term lease liability | 65,385 | 57,174 |
TOTAL CURRENT LIABILITIES | 195,161 | 141,957 |
LONG-TERM LIABILITIES | ||
Lease liability, net of current portion | 146,359 | 211,744 |
Reserve for plugging and abandonment costs | 72,789 | 68,209 |
TOTAL LONG-TERM LIABILITIES | 219,148 | 279,953 |
TOTAL LIABILITIES | 414,309 | 421,910 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY | ||
Common stock, par value $0.001; 12,000,000 shares authorized 10,327,646 and 9,928,338 shares issued and outstanding | 10,328 | 9,928 |
Additional paid-in capital | 85,094,266 | 83,345,456 |
Accumulated deficit | (73,787,720) | (73,043,441) |
TOTAL SHAREHOLDERS’ EQUITY | 11,316,874 | 10,311,943 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 11,731,183 | 10,733,853 |
Series A Convertible Redeemable Preferred Stock [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Preferred stock, value | ||
Series B Convertible Redeemable Preferred Stock [Member] | ||
SHAREHOLDERS’ EQUITY | ||
Preferred stock, value |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Preferred stock, par or stated value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | |
Preferred stock, shares outstanding | 0 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, shares issued | 10,327,646 | 9,928,338 |
Common stock, shares outstanding | 10,327,646 | 9,928,338 |
Series A Convertible Redeemable Preferred Stock [Member] | ||
Preferred stock, par or stated value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series B Convertible Redeemable Preferred Stock [Member] | ||
Preferred stock, par or stated value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUES | ||
Oil and gas revenue | $ 1,638,841 | $ 1,330,198 |
Total operating revenue | 1,638,841 | 1,330,198 |
EXPENSES OF OPERATIONS | ||
Lease operating expense and severance tax | 631,033 | 626,210 |
General and administrative expense | 1,580,270 | 1,492,580 |
Depreciation and depletion | 205,458 | 245,606 |
Total operating expenses | 2,416,761 | 2,364,396 |
Loss from operations | (777,920) | (1,034,198) |
OTHER INCOME | ||
Interest income | 33,641 | 12,964 |
Interest expense | (296) | |
Total other income, net | 33,641 | 12,668 |
Loss before taxes | (744,279) | (1,021,530) |
Income tax expense (benefit) | ||
Net loss | (744,279) | (1,021,530) |
Dividends to Series A and B Preferred shareholders | (37,201) | |
Net loss attributable to common shareholders | $ (744,279) | $ (1,058,731) |
Basic and diluted net loss per common share outstanding | $ (0.07) | $ (0.11) |
Basic and diluted weighted average number of common shares outstanding | 9,961,253 | 9,671,909 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
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 | |||
Issuance of common stock for cash, net | $ 2,922 | 6,572,967 | 6,575,889 | ||
Issuance of common stock for cash, net, shares | 2,921,620 | ||||
Stock-based compensation | $ 5 | 323,606 | 323,611 | ||
Stock-based compensation, shares | 5,000 | ||||
Conversion of Series A Preferred Stock to common stock | $ 24 | (24) | |||
Conversion of Series A Preferred Stock to common stock, shares | (60) | 24,000 | |||
Redemption of Series A and Series B Preferred Stock | $ (2) | (1,967,798) | (1,967,800) | ||
Redemption of Series A and Series B Preferred Stock, shares | (1,860) | ||||
Series A and Series B Preferred Stock dividends paid | (37,201) | (37,201) | |||
Net loss | (1,021,530) | (1,021,530) | |||
Balance at Dec. 31, 2021 | $ 9,928 | 83,345,456 | (73,043,441) | 10,311,943 | |
Balance, shares at Dec. 31, 2021 | 9,928,338 | ||||
Issuance of common stock for cash, net | $ 395 | 1,542,605 | $ 1,543,000 | ||
Issuance of common stock for cash, net, shares | 394,678 | 4,630 | |||
Stock-based compensation | 206,210 | $ 206,210 | |||
Net loss | (744,279) | (744,279) | |||
Issuance of common stock on cashless exercise of option | $ 5 | (5) | |||
Issuance of common stock on cashless exercise of option, shares | 4,630 | 48,000 | |||
Balance at Dec. 31, 2022 | $ 10,328 | $ 85,094,266 | $ (73,787,720) | $ 11,316,874 | |
Balance, shares at Dec. 31, 2022 | 10,327,646 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net loss | $ (744,279) | $ (1,021,530) |
Adjustments to reconcile net loss to net cash used in operations | ||
Depreciation and depletion | 205,458 | 245,606 |
Accretion of plugging and abandonment costs | 4,580 | 4,280 |
Stock-based compensation | 206,210 | 323,611 |
Amortization of right of use asset | 60,305 | 74,037 |
Change in operating assets and liabilities: | ||
Decrease/(Increase) in accounts receivable | 50,087 | (118,899) |
Decrease/(Increase) in prepaid expense and other current assets | 855 | (49,558) |
Increase/(Decrease) in accounts payable and accrued expenses | 53,203 | (89,699) |
Decrease in operating lease liability | (65,385) | (48,539) |
Net cash used in operating activities | (228,962) | (680,691) |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Payments for the acquisition and development of oil and gas properties | (15,045) | (42,806) |
Payments for the acquisition of cost method investment | (1,646,360) | (195,374) |
Net cash used in investing activities | (1,661,405) | (238,180) |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock for cash, net of offering costs | 1,543,000 | 6,575,889 |
Redemption of Series A and Series B Preferred Stock | (1,967,800) | |
Payment of preferred stock dividends | (37,201) | |
Net cash provided by financing activities | 1,543,000 | 4,570,888 |
(DECREASE)/INCREASE IN CASH | (347,367) | 3,652,017 |
Cash, beginning of year | 4,894,577 | 1,242,560 |
Cash, end of year | 4,547,210 | 4,894,577 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid | ||
Taxes paid | ||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Change in asset retirement obligations, net | 17,082 | |
Cashless exercise of stock options | 5 | |
Conversion of Series A Preferred Stock to common stock | $ (24) |
NATURE OF COMPANY AND SUMMARY O
NATURE OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [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 and international holdings in Colombia, South America, with additional holdings in Gulf Coast areas of the United States. Consolidation The accompanying consolidated financial statements include all accounts of HUSA and its subsidiaries (HAEC Louisiana E&P, Inc., HAEC Oklahoma E&P, Inc. and HAEC Caddo Lake E&P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation. Liquidity and Capital Requirements The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. The Company has incurred continuing losses since 2011, including a loss of $ 744,279 During 2021 and 2022, the Company raised $ 6.6 1.5 The actual timing and number of wells drilled during 2023 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 has limited shares of common stock authorized for issuance to support sales of such shares and 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. As of December 31, 2022, the Company had $ 2 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, 2022 and 2021, the Company had no 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 $ 4.3 250,000 3,665 Revenue Recognition ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” 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, 2022 and 2021, the following 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: SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER SHARE Year Ended December 31, 2022 2021 Stock warrants 94,400 98,400 Stock options 944,177 990,177 Totals 1,038,577 1,088,577 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, 2022 and 2021, 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 $ 194,392 245,606 60,501,999 60,306,590 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”) no 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 90,004 90,004 Cost Method Businesses not accounted for under either the consolidation method or equity method of accounting are accounted for under the cost method of accounting and are further discussed in Note 3, “Oil and Gas Properties.” The Company’s share of the earnings and/or losses of cost method businesses is not included in the Consolidated Statements of Operations. Income from cost method investments is only realized if and when distributions are made from the cost method business to its investors. However, impairment charges related to cost method businesses are recognized in the company’s Consolidated Statements of Operations. If circumstances suggest that the value of a cost method business with respect to which an impairment charge has been made has subsequently recovered, that recovery is not recorded. The carrying values of the company’s cost method businesses are reflected in the line item “Cost method investment” in the Company’s Consolidated Balance Sheets. 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, 2022 and 2021. 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 2022 and 2021. 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 2022, 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 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, 2022 and 2021, respectively. 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 The Company evaluated subsequent events for disclosure from December 31, 2022 through the date the consolidated financial statements were issued. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021: SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT 2022 2021 Year Ended December 31, 2022 2021 Oil sales $ 995,083 $ 913,809 Natural gas sales 377,534 247,992 Natural gas liquids sales 266,224 168,397 Total revenue from customers $ 1,638,841 $ 1,330,198 There were no |
OIL AND GAS PROPERTIES
OIL AND GAS PROPERTIES | 12 Months Ended |
Dec. 31, 2022 | |
Extractive Industries [Abstract] | |
OIL AND GAS PROPERTIES | NOTE 3— OIL AND GAS PROPERTIES Evaluated Oil and Gas Properties Evaluated oil and gas properties subject to amortization at December 31, 2022 included the following: SCHEDULE OF EVALUATED OIL AND GAS PROPERTIES SUBJECT TO AMORTIZATION United States South America Total Evaluated properties being amortized $ 13,331,565 $ 49,444,654 $ 62,776,219 Accumulated depreciation, depletion, amortization and impairment (11,057,345 ) (49,444,654 ) (60,501,999 ) Net capitalized costs $ 2,274,220 $ — $ 2,274,220 Evaluated oil and gas properties subject to amortization at December 31, 2021 included the following: United States South America Total Evaluated properties being amortized $ 13,326,568 $ 49,444,654 $ 62,771,222 Accumulated depreciation, depletion, amortization and impairment (10,861,936 ) (49,444,654 ) (60,306,590 ) Net capitalized costs $ 2,464,632 $ — $ 2,464,632 Unevaluated Oil and Gas Properties Unevaluated oil and gas properties not subject to amortization at December 31, 2022 included the following: SCHEDULE OF UNEVALUATED OIL AND GAS PROPERTIES NOT SUBJECT TO AMORTIZATION United States South America Total 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 Unevaluated oil and gas properties not subject to amortization at December 31, 2021 included the following: United States South America Total 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 During 2022, the Company invested $ 1,661,405 15,045 657,638 988,722 15,045 1,646,360 42,806 — |
Cost Method Investment
Cost Method Investment | 12 Months Ended |
Dec. 31, 2022 | |
Cost Method Investment | |
Cost Method Investment | NOTE 4— Cost Method Investment The Company’s carrying value of its holdings in cost method investment was $ 2.1 0.5 During the year ended December 31, 2022, the Company paid $ 657,638 18 988,722 During the year ended December 31, 2021, the Company contributed $ 99,716 7.85 195,374 Impairments The Company performs annual business reviews of its cost method investments to determine whether the carrying value in that investment is impaired. The Company determined its carrying value in its cost method business was not impaired during the years ended December 31, 2022 and 2021. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021. SCHEDULE OF CHANGES IN OUR ASSET RETIREMENT LIABILITY 2022 2021 ARO liability at January 1 $ 68,209 $ 63,929 Additions from new drilling — — Dispositions from sales of oil and gas properties — — Changes in estimates — — Accretion expense 4,580 4,280 ARO liability at December 31 $ 72,879 $ 68,209 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 6— 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 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 In 2021, the Company adopted 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 Stock Option Activity In June 2021, options to purchase an aggregate of 210,000 ten 1.77 60,000 vest 20% on the date of grant and 80% ten months from the date of grant 150,000 340,308 1.77 1.27 0 107.2 10 0 Additionally, in June 2021, options to purchase 54,000 ten-year 1.45 The grant date fair value of these stock options was $ 70,279 1.45 0 0 103.3 10 0 In September 2022, options to purchase an aggregate of 60,000 ten 3.91 The options vest 20% on the date of grant and 80% nine months from the date of grant 216,326 0 10 121 0 Option activity during 2022 and 2021 was as follows: SUMMARY OF STOCK OPTION ACTIVITY Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Outstanding at December 31, 2020 730,973 $ 5.07 Granted (1) 264,000 $ 1.70 Forfeited (4,800 ) $ 167.81 Outstanding at December 31, 2021 990,177 3.38 Granted 60,000 3.91 Exercised (48,000 ) 3.84 Forfeited (58,000 ) 20.43 Outstanding at December 31, 2022 944,177 $ 2.08 7.85 $ 1,025,655 Exercisable at December 31, 2022 896,177 $ 1.92 7.68 $ 1,025,655 (1) 54,000 During 2022 and 2021, the Company recognized $ 206,210 323,611 As of December 31, 2022, non-vested options totaled 48,000 163,735 2.08 7.85 7.68 As of December 31, 2022, there were 181,333 During the year ended December 31, 2022, stock options covering 48,000 4,630 Stock-Based Compensation Expense During 2021, a non-executive employee was granted 5,000 10,825 The following table reflects stock-based compensation recorded by the Company for 2022 and 2021: SCHEDULE OF STOCK-BASED COMPENSATION 2021 2021 Stock-based compensation expense from stock options and common stock included in general and administrative expense $ 206,210 $ 323,611 Earnings per share effect of stock-based compensation expense $ (0.02 ) $ (0.03 ) |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
CAPITAL STOCK | NOTE 7— CAPITAL STOCK Common Stock - At-the-Market Offerings In January 2021, the Company entered into an At-the-Market Issuance Sales Agreement (the “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 3 18,000 In January 2021, the Company sold an aggregate of 2,108,520 4.6 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 3 18,000 In February 2021, the Company sold an aggregate of 813,100 2.0 In November 2022, the Company entered into another Sales Agreement with Univest pursuant to which the Company could sell (the “2022 ATM Offering”), at its option, up to an aggregate of $ 3.5 3 25,000 In December 2022, the Company sold an aggregate of 394,678 1.5 Preferred Stock The Company has authorized 10,000,000 0.001 no Series A Convertible Preferred Stock In January 2017, the Company issued 1,200 1.2 12 2.50 1,000 12 0 During 2022 and 2021, respectively, the Company paid $ 0 21,501 In February 2021, 60 24,000 1.07 21,501 Series B Convertible Preferred Stock In May 2017, the Company received $ 909,600 909.6 12.0 holder into shares of common stock at a conversion price of $ 4.50 1,000 12 0 During 2022 and 2021, respectively, the Company paid $ 0 16,700 In February 2021, the Company redeemed all outstanding shares of Series B Preferred Stock for cash paid of $ 0.9 16,700 Warrants Consultant Warrants. 4,000 6.875 16,132 1.63 4.32 99.75 0 0 Bridge Loan Warrants ten years September 18, 2029 94,400 2.50 144,948 1.80 82.9 0 A summary of warrant activity and related information for 2022 and 2021 is presented below: SUMMARY OF WARRANT ACTIVITY Warrants Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at December 31, 2020 98,400 $ 2.63 Issued — — Exercised — — Expired 4,000 $ 6.88 Outstanding at December 31, 2021 94,400 $ 2.50 Issued — — Exercised — — Expired — — Outstanding at December 31, 2022 94,400 $ 2.50 $ — Exercisable at December 31, 2022 94,400 $ 2.50 $ — |
TAXES
TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 8— TAXES The following table sets forth a reconciliation of the statutory federal income tax for the years ended December 31, 2022 and 2021. SCHEDULE OF RECONCILIATION OF STATUTORY FEDERAL INCOME TAX 2022 2021 Income (loss) before income taxes $ (744,279 ) $ (1,021,530 ) Income tax expense (benefit) computed at statutory rates $ (156,299 ) $ (214,521 ) Permanent differences, nondeductible expenses 10,439 10,484 Increase (decrease) in valuation allowance (189,914 ) (75,989 ) State and Local Taxes 3,003 — Other adjustment 369,680 227,752 Deferred True-Up (33,082 ) 48,276 ASC 842 lease standard adoption — 3,998 Tax provision $ 3,827 $ — Total provision Foreign $ — $ — Total provision (benefit) $ 3,827 $ — At December 31, 2022 the Company has a federal tax loss carry forward of $ 11,889,216 27,745 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, 2022 and 2021 are set out below. SIGNIFICANT COMPONENTS OF DEFERRED TAX ASSET AND LIABILITY 2022 2021 Non-Current Deferred tax assets: Net operating loss carry forward $ 11,912,710 $ 11,814,489 Foreign tax credit carry forward 27,745 394,745 Deferred state tax — — Stock compensation 425,860 433,104 Book in excess of tax depreciation, depletion and capitalization methods on oil and gas properties (3,458 ) (38,124 ) Other (174,401 ) (225,368 ) ASC 842 lease standard – building lease (4 ) (481 ) Pass-through investment — — Total Non-Current Deferred tax assets 12,188,452 12,378,366 Valuation Allowance (12,188,452 ) (12,378,366 ) Net deferred tax asset $ — $ — Schedule of Net Operating Loss Carryforwards The Company is currently subject to a three-year statute of limitation for federal tax purposes and, in general, three to four-year statute of limitation for state tax purposes. State NOL expiration will occur beginning in 2033 and Federal NOL expiration will begin in 2032. 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% 100% To the best of the Company’s knowledge, Hupecol Meta has made all requisite filings relative to its operations, including those in Colombia, and that there are no known or expected tax issues, payments due, or judgments related to Hupecol Meta that would adversely impact the Company’s cost method investment therein. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 9— COMMITMENTS AND CONTINGENCIES Lease Commitment The Company leases office facilities under an operating lease agreement that expires October 31, 2025 86,373 59,445 2.8 12% SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT Right of use asset $ 212,202 Year Amount 2023 $ 87,288 2024 88,801 2025 75,051 Total future lease payments 251,140 Less: imputed interest 39,396 Present value of future operating lease payments 211,744 Less: current portion of operating lease liabilities (65,385 ) Long-term operating lease liability $ 146,359 During the years ended December 31, 2022 and 2021, the Company recognized operating lease expense of $ 86,644 80,998 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% 73% 71% 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 2022, no pools were established under the Plan. 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 1.5% Payments made by the Company under the Plan and ORRI’s totaled $ 17,725 15,081 0 0 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10— SUBSEQUENT EVENTS Subsequent to December 31, 2022, and through the date of this report, the Company issued a total of 294,872 shares of common stock under the 2022 ATM Offering for proceeds, net of commissions and offering expenses, of $ 874,309. |
GEOGRAPHICAL INFORMATION
GEOGRAPHICAL INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
GEOGRAPHICAL INFORMATION | NOTE 11— GEOGRAPHICAL INFORMATION The Company currently has operations in two geographical areas, the United States and Colombia. Revenues for the years ended December 31, 2022 and 2021 and long-lived assets as of December 31, 2022 and 2021 attributable to each geographical area are presented below: SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA 2022 2021 Revenues Long Lived Assets, Net Revenues Long Lived Assets, Net North America $ 1,638,841 $ 2,274,220 $ 1,330,198 $ 2,464,632 South America — 2,343,126 — 2,343,126 Total $ 1,638,841 $ 4,617,346 $ 1,330,198 $ 4,807,758 |
SUPPLEMENTAL INFORMATION ON OIL
SUPPLEMENTAL INFORMATION ON OIL AND GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED) | 12 Months Ended |
Dec. 31, 2022 | |
Extractive Industries [Abstract] | |
SUPPLEMENTAL INFORMATION ON OIL AND GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED) | NOTE 12— 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: SCHEDULE OF OIL AND GAS REVENUES AND LEASE OPERATING EXPENSES 2022 2021 Revenues North America $ 1,638,841 $ 1,330,198 South America — — $ 1,638,841 $ 1,330,198 Production Cost North America $ 631,033 $ 626,210 South America — — $ 631,033 $ 626,210 Capital Costs Capitalized costs and accumulated depletion relating to the Company’s oil and gas producing activities as of December 31, 2022, all of which are onshore properties located in the United States and Colombia, South America are summarized below: CAPITALIZED COSTS AND ACCUMULATED DEPLETION RELATING TO OIL AND GAS PRODUCTION ACTIVITIES United States South America Total Unproved properties not being amortized $ — $ 2,343,126 $ 2,343,126 Proved properties being amortized 13,331,565 49,444,654 62,776,219 Accumulated depreciation, depletion, amortization and impairment (11,057,345 ) (49,444,654 ) (60,501,999 ) Net capitalized costs $ 2,274,220 $ 2,343,126 $ 4,617,346 Amortization Rate The amortization rate per unit based on barrel of oil equivalents was $ 8.95 Acquisition, Exploration and Development Costs Incurred Costs incurred in oil and gas property acquisition, exploration and development activities as of December 31, 2022 and 2021 are summarized below: COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION , EXPLORATION AND DEVELOPMENT ACTIVITIES United States South America 2022 United States South America Property acquisition costs: Proved $ — $ — Unproved — — Exploration costs — — Development costs 15,045 — Total costs incurred $ 15,045 $ — United States South America 2021 United States South America Property acquisition costs: Proved $ 19,835 $ — Unproved — — Exploration costs — — Development costs 22,971 — Total costs incurred $ 42,806 $ — 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 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 Total estimated proved developed and undeveloped reserves by product type and the changes therein are set forth below for the years indicated. SCHEDULE OF PROVED DEVELOPED AND UNDEVELOPED RESERVES BY PRODUCT TYPE United States South America Total Gas (mcf) Oil (bbls) Gas (mcf) Oil (bbls) Gas (mcf) Oil (bbls) Total proved reserves Balance December 31, 2020 764,274 96,513 — — 764,274 96,513 Revisions of prior estimates 202,713 12,405 — — 202,713 12,405 Production (60,069 ) (14,367 ) — — (60,069 ) (14,367 ) Balance December 31, 2021 906,918 94,551 — — 906,918 94,551 Revisions to prior estimates 197,137 (346 ) — — 197,137 (346 ) Production (73,635 ) (10,688 ) — — (73,635 ) (10,688 ) Balance December 31, 2022 1,030,420 83,517 — — 1,030,420 83,517 Proved developed reserves at December 31, 2021 906,918 94,551 — — 906,918 94,551 at December 31, 2022 1,030,420 83,517 — — 1,030,420 83,517 Proved undeveloped reserves at December 31, 2021 — — — — — — at December 31, 2022 — — — — — — As of December 31, 2022 and 2021, the Company had no proved undeveloped (“PUD”) reserves. 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, 2022: STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS United States South America Total Future cash flows from sales of oil and gas $ 16,451,375 $ — $ 16,451,375 Future production cost (5,918,092 ) — (5,918,092 ) Future development cost — — — Future net cash flows 10,533,283 — 10,533,283 10% annual discount for timing of cash flow (5,370,124 ) — (5,370,124 ) Standardized measure of discounted future net cash flow relating to proved oil and gas reserves $ 5,163,159 $ — $ 5,163,159 Changes in standardized measure: Change due to current year operations $ (1,007,808 ) $ — $ (1,007,808 ) Change due to revisions in standardized variables: Accretion of discount 338,098 — 338,098 Net change in sales and transfer price, net of production costs 1,876,949 — 1,876,949 Net change in future development cost — — — Discoveries — — — Revision and others 691,609 — 691,609 Changes in production rates and other (116,667 ) — (116,667 ) Net 1,782,181 — 1,782,181 Beginning of year 3,380,978 — 3,380,978 End of year $ 5,163,159 $ — $ 5,163,159 Standardized measure of discounted future net cash flows at December 31, 2021: United States South America Total Future cash flows from sales of oil and gas $ 11,281,236 $ — $ 11,281,236 Future production cost (4,726,717 ) — (4,726,717 ) Future development cost — — — Future net cash flows 6,554,519 — 6,554,519 10% annual discount for timing of cash flow (3,173,541 ) — (3,173,541 ) Standardized measure of discounted future net cash flow relating to proved oil and gas reserves $ 3,380,978 $ — $ 3,380,978 Changes in standardized measure: Change due to current year operations $ (678,014 ) $ — $ (678,014 ) Change due to revisions in standardized variables: Accretion of discount 117,413 — 117,413 Net change in sales and transfer price, net of production costs 2,650,901 — 2,650,901 Net change in future development cost — — — Discoveries — — — Revision and others 786,094 — 786,094 Changes in production rates and other (669,548 ) — (669,548 ) Net 2,206,846 — 2,206,846 Beginning of year 1,174,132 — 1,174,132 End of year $ 3,380,978 $ — $ 3,380,978 |
NATURE OF COMPANY AND SUMMARY_2
NATURE OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | 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 and international holdings in Colombia, South America, with additional holdings in Gulf Coast areas of the United States. |
Consolidation | Consolidation The accompanying consolidated financial statements include all accounts of HUSA and its subsidiaries (HAEC Louisiana E&P, Inc., HAEC Oklahoma E&P, Inc. and HAEC Caddo Lake E&P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation. |
Liquidity and Capital Requirements | Liquidity and Capital Requirements The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the issuance date of these consolidated financial statements. The Company has incurred continuing losses since 2011, including a loss of $ 744,279 During 2021 and 2022, the Company raised $ 6.6 1.5 The actual timing and number of wells drilled during 2023 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 has limited shares of common stock authorized for issuance to support sales of such shares and 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. As of December 31, 2022, the Company had $ 2 |
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, 2022 and 2021, the Company had no |
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 $ 4.3 250,000 3,665 |
Revenue Recognition | Revenue Recognition ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” 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, 2022 and 2021, the following 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: SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER SHARE Year Ended December 31, 2022 2021 Stock warrants 94,400 98,400 Stock options 944,177 990,177 Totals 1,038,577 1,088,577 |
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, 2022 and 2021, 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 $ 194,392 245,606 60,501,999 60,306,590 |
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”) no |
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 90,004 90,004 |
Cost Method | Cost Method Businesses not accounted for under either the consolidation method or equity method of accounting are accounted for under the cost method of accounting and are further discussed in Note 3, “Oil and Gas Properties.” The Company’s share of the earnings and/or losses of cost method businesses is not included in the Consolidated Statements of Operations. Income from cost method investments is only realized if and when distributions are made from the cost method business to its investors. However, impairment charges related to cost method businesses are recognized in the company’s Consolidated Statements of Operations. If circumstances suggest that the value of a cost method business with respect to which an impairment charge has been made has subsequently recovered, that recovery is not recorded. The carrying values of the company’s cost method businesses are reflected in the line item “Cost method investment” in the Company’s Consolidated Balance Sheets. |
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 | 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, 2022 and 2021. |
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 2022 and 2021. 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 2022, 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 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, 2022 and 2021, 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, 2022 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, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER SHARE | For the years ended December 31, 2022 and 2021, the following 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: SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER SHARE Year Ended December 31, 2022 2021 Stock warrants 94,400 98,400 Stock options 944,177 990,177 Totals 1,038,577 1,088,577 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021: SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT 2022 2021 Year Ended December 31, 2022 2021 Oil sales $ 995,083 $ 913,809 Natural gas sales 377,534 247,992 Natural gas liquids sales 266,224 168,397 Total revenue from customers $ 1,638,841 $ 1,330,198 |
OIL AND GAS PROPERTIES (Tables)
OIL AND GAS PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Extractive Industries [Abstract] | |
SCHEDULE OF EVALUATED OIL AND GAS PROPERTIES SUBJECT TO AMORTIZATION | Evaluated oil and gas properties subject to amortization at December 31, 2022 included the following: SCHEDULE OF EVALUATED OIL AND GAS PROPERTIES SUBJECT TO AMORTIZATION United States South America Total Evaluated properties being amortized $ 13,331,565 $ 49,444,654 $ 62,776,219 Accumulated depreciation, depletion, amortization and impairment (11,057,345 ) (49,444,654 ) (60,501,999 ) Net capitalized costs $ 2,274,220 $ — $ 2,274,220 Evaluated oil and gas properties subject to amortization at December 31, 2021 included the following: United States South America Total Evaluated properties being amortized $ 13,326,568 $ 49,444,654 $ 62,771,222 Accumulated depreciation, depletion, amortization and impairment (10,861,936 ) (49,444,654 ) (60,306,590 ) Net capitalized costs $ 2,464,632 $ — $ 2,464,632 |
SCHEDULE OF UNEVALUATED OIL AND GAS PROPERTIES NOT SUBJECT TO AMORTIZATION | Unevaluated oil and gas properties not subject to amortization at December 31, 2022 included the following: SCHEDULE OF UNEVALUATED OIL AND GAS PROPERTIES NOT SUBJECT TO AMORTIZATION United States South America Total 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 Unevaluated oil and gas properties not subject to amortization at December 31, 2021 included the following: United States South America Total 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 (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021. SCHEDULE OF CHANGES IN OUR ASSET RETIREMENT LIABILITY 2022 2021 ARO liability at January 1 $ 68,209 $ 63,929 Additions from new drilling — — Dispositions from sales of oil and gas properties — — Changes in estimates — — Accretion expense 4,580 4,280 ARO liability at December 31 $ 72,879 $ 68,209 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SUMMARY OF STOCK OPTION ACTIVITY | Option activity during 2022 and 2021 was as follows: SUMMARY OF STOCK OPTION ACTIVITY Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Outstanding at December 31, 2020 730,973 $ 5.07 Granted (1) 264,000 $ 1.70 Forfeited (4,800 ) $ 167.81 Outstanding at December 31, 2021 990,177 3.38 Granted 60,000 3.91 Exercised (48,000 ) 3.84 Forfeited (58,000 ) 20.43 Outstanding at December 31, 2022 944,177 $ 2.08 7.85 $ 1,025,655 Exercisable at December 31, 2022 896,177 $ 1.92 7.68 $ 1,025,655 (1) 54,000 |
SCHEDULE OF STOCK-BASED COMPENSATION | The following table reflects stock-based compensation recorded by the Company for 2022 and 2021: SCHEDULE OF STOCK-BASED COMPENSATION 2021 2021 Stock-based compensation expense from stock options and common stock included in general and administrative expense $ 206,210 $ 323,611 Earnings per share effect of stock-based compensation expense $ (0.02 ) $ (0.03 ) |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
SUMMARY OF WARRANT ACTIVITY | A summary of warrant activity and related information for 2022 and 2021 is presented below: SUMMARY OF WARRANT ACTIVITY Warrants Weighted-Average Exercise Price Aggregate Intrinsic Value Outstanding at December 31, 2020 98,400 $ 2.63 Issued — — Exercised — — Expired 4,000 $ 6.88 Outstanding at December 31, 2021 94,400 $ 2.50 Issued — — Exercised — — Expired — — Outstanding at December 31, 2022 94,400 $ 2.50 $ — Exercisable at December 31, 2022 94,400 $ 2.50 $ — |
TAXES (Tables)
TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021. SCHEDULE OF RECONCILIATION OF STATUTORY FEDERAL INCOME TAX 2022 2021 Income (loss) before income taxes $ (744,279 ) $ (1,021,530 ) Income tax expense (benefit) computed at statutory rates $ (156,299 ) $ (214,521 ) Permanent differences, nondeductible expenses 10,439 10,484 Increase (decrease) in valuation allowance (189,914 ) (75,989 ) State and Local Taxes 3,003 — Other adjustment 369,680 227,752 Deferred True-Up (33,082 ) 48,276 ASC 842 lease standard adoption — 3,998 Tax provision $ 3,827 $ — Total provision Foreign $ — $ — Total provision (benefit) $ 3,827 $ — |
SIGNIFICANT COMPONENTS OF DEFERRED TAX ASSET AND LIABILITY | SIGNIFICANT COMPONENTS OF DEFERRED TAX ASSET AND LIABILITY 2022 2021 Non-Current Deferred tax assets: Net operating loss carry forward $ 11,912,710 $ 11,814,489 Foreign tax credit carry forward 27,745 394,745 Deferred state tax — — Stock compensation 425,860 433,104 Book in excess of tax depreciation, depletion and capitalization methods on oil and gas properties (3,458 ) (38,124 ) Other (174,401 ) (225,368 ) ASC 842 lease standard – building lease (4 ) (481 ) Pass-through investment — — Total Non-Current Deferred tax assets 12,188,452 12,378,366 Valuation Allowance (12,188,452 ) (12,378,366 ) Net deferred tax asset $ — $ — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT | SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT Right of use asset $ 212,202 Year Amount 2023 $ 87,288 2024 88,801 2025 75,051 Total future lease payments 251,140 Less: imputed interest 39,396 Present value of future operating lease payments 211,744 Less: current portion of operating lease liabilities (65,385 ) Long-term operating lease liability $ 146,359 |
GEOGRAPHICAL INFORMATION (Table
GEOGRAPHICAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA | SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA 2022 2021 Revenues Long Lived Assets, Net Revenues Long Lived Assets, Net North America $ 1,638,841 $ 2,274,220 $ 1,330,198 $ 2,464,632 South America — 2,343,126 — 2,343,126 Total $ 1,638,841 $ 4,617,346 $ 1,330,198 $ 4,807,758 |
SUPPLEMENTAL INFORMATION ON O_2
SUPPLEMENTAL INFORMATION ON OIL AND GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: SCHEDULE OF OIL AND GAS REVENUES AND LEASE OPERATING EXPENSES 2022 2021 Revenues North America $ 1,638,841 $ 1,330,198 South America — — $ 1,638,841 $ 1,330,198 Production Cost North America $ 631,033 $ 626,210 South America — — $ 631,033 $ 626,210 |
CAPITALIZED COSTS AND ACCUMULATED DEPLETION RELATING TO OIL AND GAS PRODUCTION ACTIVITIES | Capitalized costs and accumulated depletion relating to the Company’s oil and gas producing activities as of December 31, 2022, all of which are onshore properties located in the United States and Colombia, South America are summarized below: CAPITALIZED COSTS AND ACCUMULATED DEPLETION RELATING TO OIL AND GAS PRODUCTION ACTIVITIES United States South America Total Unproved properties not being amortized $ — $ 2,343,126 $ 2,343,126 Proved properties being amortized 13,331,565 49,444,654 62,776,219 Accumulated depreciation, depletion, amortization and impairment (11,057,345 ) (49,444,654 ) (60,501,999 ) Net capitalized costs $ 2,274,220 $ 2,343,126 $ 4,617,346 |
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, 2022 and 2021 are summarized below: COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION , EXPLORATION AND DEVELOPMENT ACTIVITIES United States South America 2022 United States South America Property acquisition costs: Proved $ — $ — Unproved — — Exploration costs — — Development costs 15,045 — Total costs incurred $ 15,045 $ — United States South America 2021 United States South America Property acquisition costs: Proved $ 19,835 $ — Unproved — — Exploration costs — — Development costs 22,971 — Total costs incurred $ 42,806 $ — |
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. SCHEDULE OF PROVED DEVELOPED AND UNDEVELOPED RESERVES BY PRODUCT TYPE United States South America Total Gas (mcf) Oil (bbls) Gas (mcf) Oil (bbls) Gas (mcf) Oil (bbls) Total proved reserves Balance December 31, 2020 764,274 96,513 — — 764,274 96,513 Revisions of prior estimates 202,713 12,405 — — 202,713 12,405 Production (60,069 ) (14,367 ) — — (60,069 ) (14,367 ) Balance December 31, 2021 906,918 94,551 — — 906,918 94,551 Revisions to prior estimates 197,137 (346 ) — — 197,137 (346 ) Production (73,635 ) (10,688 ) — — (73,635 ) (10,688 ) Balance December 31, 2022 1,030,420 83,517 — — 1,030,420 83,517 Proved developed reserves at December 31, 2021 906,918 94,551 — — 906,918 94,551 at December 31, 2022 1,030,420 83,517 — — 1,030,420 83,517 Proved undeveloped reserves at December 31, 2021 — — — — — — at December 31, 2022 — — — — — — |
STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS | Standardized measure of discounted future net cash flows at December 31, 2022: STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS United States South America Total Future cash flows from sales of oil and gas $ 16,451,375 $ — $ 16,451,375 Future production cost (5,918,092 ) — (5,918,092 ) Future development cost — — — Future net cash flows 10,533,283 — 10,533,283 10% annual discount for timing of cash flow (5,370,124 ) — (5,370,124 ) Standardized measure of discounted future net cash flow relating to proved oil and gas reserves $ 5,163,159 $ — $ 5,163,159 Changes in standardized measure: Change due to current year operations $ (1,007,808 ) $ — $ (1,007,808 ) Change due to revisions in standardized variables: Accretion of discount 338,098 — 338,098 Net change in sales and transfer price, net of production costs 1,876,949 — 1,876,949 Net change in future development cost — — — Discoveries — — — Revision and others 691,609 — 691,609 Changes in production rates and other (116,667 ) — (116,667 ) Net 1,782,181 — 1,782,181 Beginning of year 3,380,978 — 3,380,978 End of year $ 5,163,159 $ — $ 5,163,159 Standardized measure of discounted future net cash flows at December 31, 2021: United States South America Total Future cash flows from sales of oil and gas $ 11,281,236 $ — $ 11,281,236 Future production cost (4,726,717 ) — (4,726,717 ) Future development cost — — — Future net cash flows 6,554,519 — 6,554,519 10% annual discount for timing of cash flow (3,173,541 ) — (3,173,541 ) Standardized measure of discounted future net cash flow relating to proved oil and gas reserves $ 3,380,978 $ — $ 3,380,978 Changes in standardized measure: Change due to current year operations $ (678,014 ) $ — $ (678,014 ) Change due to revisions in standardized variables: Accretion of discount 117,413 — 117,413 Net change in sales and transfer price, net of production costs 2,650,901 — 2,650,901 Net change in future development cost — — — Discoveries — — — Revision and others 786,094 — 786,094 Changes in production rates and other (669,548 ) — (669,548 ) Net 2,206,846 — 2,206,846 Beginning of year 1,174,132 — 1,174,132 End of year $ 3,380,978 $ — $ 3,380,978 |
SCHEDULE OF COMPUTATION OF DILU
SCHEDULE OF COMPUTATION OF DILUTED NET LOSS PER SHARE (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Totals | 1,038,577 | 1,088,577 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Totals | 94,400 | 98,400 |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Totals | 944,177 | 990,177 |
NATURE OF COMPANY AND SUMMARY_4
NATURE OF COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Net loss | $ 744,279 | $ 1,021,530 | |
Proceeds from atm offering | 1,543,000 | 6,575,889 | |
General partners offering costs | 2,000,000 | ||
Cash equivalents | 0 | 0 | |
Cash deposits | 4,300,000 | ||
Current insured limit on interest bearing accounts | 250,000 | ||
Depreciation depletion amortization | 205,458 | 245,606 | |
Accumulated amortization, depreciation and impairment | 60,501,999 | 60,306,590 | |
Impairment of oil and gas properties | 0 | 0 | |
Accumulated depreciation | $ 60,602,051 | 60,396,594 | |
Discount rate, net of related tax effects | 10% | ||
Office Equipment [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Accumulated depreciation | $ 90,004 | 90,004 | $ 90,004 |
Colombian Banks [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Cash deposits | 3,665 | ||
Oil and Gas [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Depreciation depletion amortization | $ 194,392 | $ 245,606 |
SCHEDULE OF DISAGGREGATES REVEN
SCHEDULE OF DISAGGREGATES REVENUE BY SIGNIFICANT PRODUCT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from customers | $ 1,638,841 | $ 1,330,198 |
Oil Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from customers | 995,083 | 913,809 |
Natural Gas Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from customers | 377,534 | 247,992 |
Natural Gas Liquids Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from customers | $ 266,224 | $ 168,397 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details Narrative) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligations | $ 0 | $ 0 |
SCHEDULE OF EVALUATED OIL AND G
SCHEDULE OF EVALUATED OIL AND GAS PROPERTIES SUBJECT TO AMORTIZATION (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Reserve Quantities [Line Items] | ||
Evaluated properties being amortized | $ 62,776,219 | $ 62,771,222 |
Accumulated depreciation, depletion, amortization and impairment | (60,501,999) | (60,306,590) |
Net capitalized costs | 2,274,220 | 2,464,632 |
UNITED STATES | ||
Reserve Quantities [Line Items] | ||
Evaluated properties being amortized | 13,331,565 | 13,326,568 |
Accumulated depreciation, depletion, amortization and impairment | (11,057,345) | (10,861,936) |
Net capitalized costs | 2,274,220 | 2,464,632 |
South America [Member] | ||
Reserve Quantities [Line Items] | ||
Evaluated properties being amortized | 49,444,654 | 49,444,654 |
Accumulated depreciation, depletion, amortization and impairment | (49,444,654) | (49,444,654) |
Net capitalized costs |
SCHEDULE OF UNEVALUATED OIL AND
SCHEDULE OF UNEVALUATED OIL AND GAS PROPERTIES NOT SUBJECT TO AMORTIZATION (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Reserve Quantities [Line Items] | ||
Total | $ 2,343,126 | |
UNITED STATES | ||
Reserve Quantities [Line Items] | ||
Total | ||
South America [Member] | ||
Reserve Quantities [Line Items] | ||
Total | 2,343,126 | |
Oil and Gas Properties [Member] | ||
Reserve Quantities [Line Items] | ||
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 |
Oil and Gas Properties [Member] | UNITED STATES | ||
Reserve Quantities [Line Items] | ||
Leasehold acquisition costs | ||
Geological, geophysical, screening and evaluation costs | ||
Total | ||
Oil and Gas Properties [Member] | South America [Member] | ||
Reserve Quantities [Line Items] | ||
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 |
OIL AND GAS PROPERTIES (Details
OIL AND GAS PROPERTIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reserve Quantities [Line Items] | ||
Invested in acquisition and development of oil and gas properties | $ 1,661,405 | $ 238,180 |
Direct investment operations | 988,722 | 195,374 |
Payments for the acquisition and development of oil and gas properties | 15,045 | 42,806 |
Payments for the acquisition of cost method investment | 1,646,360 | 195,374 |
Permian Basin [Member] | ||
Reserve Quantities [Line Items] | ||
Direct investment operations | 15,045 | |
Hupecol Meta [Member] | ||
Reserve Quantities [Line Items] | ||
Direct investment operations | 657,638 | $ 99,716 |
Payments for the acquisition and development of oil and gas properties | 15,045 | |
Payments for the acquisition of cost method investment | 1,646,360 | |
COLOMBIA | ||
Reserve Quantities [Line Items] | ||
Direct investment operations | $ 988,722 |
Cost Method Investment (Details
Cost Method Investment (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cost method investments | $ 2,102,139 | $ 455,779 |
Direct investment operations | $ 988,722 | $ 195,374 |
Hupecol Meta [Member] | ||
Ownership percentage | 18% | 7.85% |
Hupecol Meta [Member] | ||
Direct investment operations | $ 657,638 | $ 99,716 |
SCHEDULE OF CHANGES IN OUR ASSE
SCHEDULE OF CHANGES IN OUR ASSET RETIREMENT LIABILITY (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
ARO liability at January 1 | $ 68,209 | $ 63,929 |
Additions from new drilling | ||
Dispositions from sales of oil and gas properties | ||
Changes in estimates | ||
Accretion expense | 4,580 | 4,280 |
ARO liability at December 31 | $ 72,879 | $ 68,209 |
SUMMARY OF STOCK OPTION ACTIVIT
SUMMARY OF STOCK OPTION ACTIVITY (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Share-Based Payment Arrangement [Abstract] | |||
Options Outstanding at beginning of the period | 990,177 | 730,973 | |
Weighted-Average Exercise Price Outstanding at end of the period | $ 3.38 | $ 5.07 | |
Options Granted | 60,000 | 264,000 | [1] |
Weighted-Average Exercise Price Granted | $ 3.91 | $ 1.70 | [1] |
Options Forfeited | (58,000) | (4,800) | |
Weighted-Average Exercise Price Forfeited | $ 20.43 | $ 167.81 | |
Option exercised | (48,000) | ||
Weighted Average Exercise Price Exercised | $ 3.84 | ||
Options Outstanding at end of the period | 944,177 | 990,177 | |
Weighted-Average Exercise Price Outstanding at end of the period | $ 2.08 | $ 3.38 | |
Weighted Average Remaining Contractual Term Options, Outstanding | 7 years 10 months 6 days | ||
Aggregate Intrinsic Value Outstanding at end of the period | $ 1,025,655 | ||
Options Outstanding Exercisable at end of the period | 896,177 | ||
Weighted-Average Exercise Price Outstanding Exercisable at end of the period | $ 1.92 | ||
Weighted Average Remaining Contractual Term Options, Exercisable | 7 years 8 months 4 days | ||
Aggregate Intrinsic Value Outstanding Exercisable at end of the period | $ 1,025,655 | ||
[1] 54,000 |
SUMMARY OF STOCK OPTION ACTIV_2
SUMMARY OF STOCK OPTION ACTIVITY (Details) (Parenthetical) - shares | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | [1] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Options granted | 60,000 | 264,000 | |||
2021 Equity Incentive Plan [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Options granted | 54,000 | 54,000 | |||
[1] 54,000 |
SCHEDULE OF STOCK-BASED COMPENS
SCHEDULE OF STOCK-BASED COMPENSATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation expense from stock options and common stock included in general and administrative expense | $ 206,210 | $ 323,611 |
Earnings per share effect of stock-based compensation expense | $ (0.02) | $ (0.03) |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2022 | Nov. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2017 | Dec. 31, 2008 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Options Granted | 60,000 | 264,000 | [1] | ||||||
Option term | 7 years 10 months 6 days | ||||||||
Stock option exercisable price per share | $ 1.92 | ||||||||
Risk free interest rate | 0% | ||||||||
Stock-based compensation recognized | $ 206,210 | $ 323,611 | |||||||
Weighted average remaining contractual term of the exercisable options | 7 years 8 months 4 days | ||||||||
Shares issued | 4,630 | ||||||||
Shares exercised | 48,000 | ||||||||
Director and Sole Officer [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Options Granted | 210,000 | ||||||||
Option term | 10 years | ||||||||
Stock option exercisable price per share | $ 1.77 | ||||||||
Fair value of options granted | $ 340,308 | ||||||||
Common stock, no par value | $ 1.77 | ||||||||
Risk free interest rate | 1.27% | ||||||||
Expected dividend yield | 0% | ||||||||
Expected stock volatility | 107.20% | ||||||||
Stock option life, term | 10 years | ||||||||
Expected forfeited rate | 0% | ||||||||
Director [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Options Granted | 60,000 | ||||||||
Description on vesting of stock options | The options vest 20% on the date of grant and 80% nine months from the date of grant | vest 20% on the date of grant and 80% ten months from the date of grant | |||||||
Sole Officer [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Options Granted | 150,000 | ||||||||
Directors [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Options Granted | 60,000 | ||||||||
Option term | 10 years | ||||||||
Stock option exercisable price per share | $ 3.91 | ||||||||
Fair value of options granted | $ 216,326 | ||||||||
Risk free interest rate | 0% | ||||||||
Expected dividend yield | 0% | ||||||||
Expected stock volatility | 121% | ||||||||
Stock option life, term | 10 years | ||||||||
Non Executive Employee [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Options Granted | 5,000 | ||||||||
Fair value of common stock granted | $ 10,825 | ||||||||
2008 Equity Incentive Plan [Member] | Maximum [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Number of options authorized to purchase shares of common stock | 480,000 | ||||||||
2017 Equity Incentive Plan [Member] | Maximum [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Number of options authorized to purchase shares of common stock | 400,000 | ||||||||
2021 Equity Incentive Plan [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Options Granted | 54,000 | 54,000 | |||||||
2021 Equity Incentive Plan [Member] | Equity Option [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Option term | 10 years | ||||||||
Stock option exercisable price per share | $ 1.45 | ||||||||
Common stock, no par value | $ 1.45 | ||||||||
Risk free interest rate | 0% | ||||||||
Expected stock volatility | 103.30% | ||||||||
Stock option life, term | 10 years | ||||||||
Expected forfeited rate | 0% | ||||||||
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture | $ 70,279 | ||||||||
2021 Equity Incentive Plan [Member] | Maximum [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Number of options authorized to purchase shares of common stock | 500,000 | ||||||||
2021 Equity Incentive Plan [Member] | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||||
Number of options non-vested | 48,000 | ||||||||
Unrecognized share-based compensation expense related to non-vested stock options | $ 163,735 | ||||||||
Weighted average period for unrecognition of compensation expense | 2 years 29 days | ||||||||
Weighted average remaining contractual term of the outstanding options | 7 years 10 months 6 days | ||||||||
Weighted average remaining contractual term of the exercisable options | 7 years 8 months 4 days | ||||||||
Shares issued | 181,333 | ||||||||
[1] 54,000 |
SUMMARY OF WARRANT ACTIVITY (De
SUMMARY OF WARRANT ACTIVITY (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Warrants Outstanding, Beginning | 94,400 | 98,400 |
Weighted-Average Exercise Price Outstanding, Beginning | $ 2.50 | $ 2.63 |
Warrants Outstanding, Issued | ||
Weighted-Average Exercise Price, Issued | ||
Warrants Outstanding, Exercised | ||
Weighted-Average Exercise Price, Exercised | ||
Warrants Outstanding, Expired | 4,000 | |
Weighted-Average Exercise Price, Expired | $ 6.88 | |
Warrants Outstanding, Ending | 94,400 | 94,400 |
Weighted-Average Exercise Price Outstanding, Ending | $ 2.50 | $ 2.50 |
Aggregate Intrinsic Value Outstanding at end of the period | ||
Warrants Outstanding, Exercisable | 94,400 | |
Weighted-Average Exercise Price Outstanding, Exercisable | $ 2.50 | |
Aggregate Intrinsic Value Outstanding Exercisable at end of the period |
CAPITAL STOCK (Details Narrativ
CAPITAL STOCK (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Nov. 30, 2022 | Feb. 28, 2021 | Jan. 31, 2021 | Sep. 30, 2019 | Sep. 30, 2017 | May 31, 2017 | Jan. 31, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 06, 2019 | |
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Preferred stock, shares issued | 0 | 0 | |||||||||
Preferred stock, shares outstanding | 0 | 0 | |||||||||
Risk free interest rate | 0% | ||||||||||
Stock-based compensation expense from stock options and common stock included in general and administrative expense | $ 206,210 | $ 323,611 | |||||||||
Consultant Warrants [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of warrants issued to purchase common stock | 4,000 | 94,400 | |||||||||
Warrants exercise price | $ 6.875 | ||||||||||
Warrants fair value | $ 16,132 | ||||||||||
Risk free interest rate | 1.63% | ||||||||||
Expected life in years | 4 years 3 months 25 days | ||||||||||
Expected stock volatility | 99.75% | ||||||||||
Stock-based compensation expense from stock options and common stock included in general and administrative expense | 0 | 0 | |||||||||
Bridge Loan Warrants [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants exercise price | $ 2.50 | ||||||||||
Warrants fair value | $ 144,948 | ||||||||||
Risk free interest rate | 180% | ||||||||||
Expected life in years | 10 years | ||||||||||
Expected stock volatility | 82.90% | ||||||||||
Warrants expiration date | Sep. 18, 2029 | ||||||||||
Expected dividend yield | 0% | ||||||||||
12% Of Series A Convertible Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares issued | 1,200 | ||||||||||
Proceeds from issuance of preferred stock | $ 1,200,000 | ||||||||||
Preferred stock dividend percentage | 12% | ||||||||||
Debt conversion price per share | $ 2.50 | ||||||||||
Preferred stock liquidation preference price per share | $ 1,000 | ||||||||||
Series A Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Accrued dividends | $ 21,501 | 0 | 21,501 | ||||||||
Number of shares converted | 60 | ||||||||||
Conversion of stock, shares converted | 24,000 | ||||||||||
Value of shares redeemed during period | $ 1,070,000 | ||||||||||
Series B Convertible Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number shares sold | 909.6 | ||||||||||
Proceeds from issuance of preferred stock | $ 909,600 | ||||||||||
Series B Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock dividend percentage | 12% | ||||||||||
Preferred stock liquidation preference price per share | $ 1,000 | ||||||||||
Accrued dividends | 16,700 | $ 0 | $ 16,700 | ||||||||
Value of shares redeemed during period | 900,000 | ||||||||||
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 | ||||||||||
Maximum [Member] | 12% Of Series A Convertible Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Premium issuance price decreased percentage | 0% | ||||||||||
Maximum [Member] | Series B Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Premium issuance price decreased percentage | 12% | ||||||||||
Minimum [Member] | 12% Of Series A Convertible Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Premium issuance price decreased percentage | 12% | ||||||||||
Minimum [Member] | Series B Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Premium issuance price decreased percentage | 0% | ||||||||||
Sales Agreement (2021 ATM Offering) [Member] | West Park Capital LLC [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Commission perecentage from gross proceeds of sale of share | 3% | ||||||||||
Reimbursement of expenses connection with offering | $ 18,000 | ||||||||||
Sales Agreement (2021 ATM Offering) [Member] | West Park Capital LLC [Member] | Maximum [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Sale of stock shares of common stock value | 4,768,000 | ||||||||||
Sales Agreement (2021 ATM Offering) [Member] | Univest Securities, LLC [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Sale of stock shares of common stock value | $ 2,030,000 | ||||||||||
Commission perecentage from gross proceeds of sale of share | 3% | ||||||||||
Reimbursement of expenses connection with offering | $ 18,000 | ||||||||||
2021 ATM Offering [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Sale of stock shares of common stock value | $ 2,000,000 | $ 4,600,000 | |||||||||
Number shares sold | 813,100 | 2,108,520 | |||||||||
2022 ATM Offering [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Sale of stock shares of common stock value | $ 1,500,000 | ||||||||||
Number shares sold | 394,678 | ||||||||||
2022 ATM Offering [Member] | Univest Securities, LLC [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Commission perecentage from gross proceeds of sale of share | 3% | ||||||||||
Reimbursement of expenses connection with offering | $ 25,000 | ||||||||||
2022 ATM Offering [Member] | Univest Securities, LLC [Member] | Maximum [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Sale of stock shares of common stock value | $ 3,500,000 |
SCHEDULE OF RECONCILIATION OF S
SCHEDULE OF RECONCILIATION OF STATUTORY FEDERAL INCOME TAX (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income taxes | $ (744,279) | $ (1,021,530) |
Income tax expense (benefit) computed at statutory rates | (156,299) | (214,521) |
Permanent differences, nondeductible expenses | 10,439 | 10,484 |
Increase (decrease) in valuation allowance | (189,914) | (75,989) |
State and Local Taxes | 3,003 | |
Other adjustment | 369,680 | 227,752 |
Deferred True-Up | (33,082) | 48,276 |
ASC 842 lease standard adoption | 3,998 | |
Tax provision | 3,827 | |
Foreign Income Tax Expense (Benefit), Continuing Operations | ||
Income tax expense benefits | $ 3,827 |
SIGNIFICANT COMPONENTS OF DEFER
SIGNIFICANT COMPONENTS OF DEFERRED TAX ASSET AND LIABILITY (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry forward | $ 11,912,710 | $ 11,814,489 |
Foreign tax credit carry forward | 27,745 | 394,745 |
Deferred state tax | ||
Stock compensation | 425,860 | 433,104 |
Book in excess of tax depreciation, depletion and capitalization methods on oil and gas properties | (3,458) | (38,124) |
Other | (174,401) | (225,368) |
ASC 842 lease standard – building lease | (4) | (481) |
Pass-through investment | ||
Total Non-Current Deferred tax assets | 12,188,452 | 12,378,366 |
Valuation Allowance | (12,188,452) | (12,378,366) |
Net deferred tax asset |
TAXES (Details Narrative)
TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Federal tax loss carry forward | $ 11,889,216 | |
Foreign tax credit carry forward | $ 27,745 | $ 394,745 |
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 | |
Minimum [Member] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Federal statutory income tax rate | 80% | |
Maximum [Member] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Federal statutory income tax rate | 100% |
SCHEDULE OF FUTURE PAYMENTS UND
SCHEDULE OF FUTURE PAYMENTS UNDER LEASE AGREEMENT (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease right of use asset | $ 212,202 | $ 272,507 |
2023 | 87,288 | |
2024 | 88,801 | |
2025 | 75,051 | |
Total future lease payments | 251,140 | |
Less: imputed interest | 39,396 | |
Present value of future operating lease payments | 211,744 | |
Less: current portion of operating lease liabilities | (65,385) | (57,174) |
Long-term operating lease liability | $ 146,359 | $ 211,744 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2013 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | |||
Amortization of right of use asset | $ 60,305 | $ 74,037 | |
Rental expense | 631,033 | 626,210 | |
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% | ||
Maximum percentage of revenue from a well considered for pool cap | 73% | ||
Maximum percentage of revenue from a well considered for pool nri | 71% | ||
Payment of overriding royalty interests | 17,725 | 15,081 | |
Accounts payable | $ 0 | 0 | |
COLOMBIA | Current Director [Member] | |||
Loss Contingencies [Line Items] | |||
Percentage of royalty interest | 1.50% | ||
General and Administrative Expense [Member] | |||
Loss Contingencies [Line Items] | |||
Rental expense | $ 86,644 | $ 80,998 | |
Operating Lease Agreement [Member] | |||
Loss Contingencies [Line Items] | |||
Operating lease agreement expire date | Oct. 31, 2025 | ||
Operating cash outflows related to operating lease liabilities | $ 86,373 | ||
Amortization of right of use asset | $ 59,445 | ||
Operating lease, weighted average remaining lease term | 2 years 9 months 18 days | ||
Weighted average discount rate | 12% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Two Thousand Twenty Two ATM Offering [Member] - Subsequent Event [Member] | 3 Months Ended |
Mar. 31, 2023 USD ($) shares | |
Subsequent Event [Line Items] | |
Sale of Stock, Number of Shares Issued in Transaction | shares | 294,872 |
Sale of Stock, Consideration Received on Transaction | $ | $ 874,309 |
SCHEDULE OF REVENUES AND LONG L
SCHEDULE OF REVENUES AND LONG LIVED ASSETS ATTRIBUTABLE TO GEOGRAPHICAL AREA (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 1,638,841 | $ 1,330,198 |
Long Lived Assets, Net | 4,617,346 | 4,807,758 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 1,638,841 | 1,330,198 |
North America [Member] | Reportable Geographical Components [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 1,638,841 | 1,330,198 |
Long Lived Assets, Net | 2,274,220 | 2,464,632 |
South America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | ||
South America [Member] | Reportable Geographical Components [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | ||
Long Lived Assets, Net | $ 2,343,126 | $ 2,343,126 |
SCHEDULE OF OIL AND GAS REVENUE
SCHEDULE OF OIL AND GAS REVENUES AND LEASE OPERATING EXPENSES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reserve Quantities [Line Items] | ||
Revenues | $ 1,638,841 | $ 1,330,198 |
Production Cost | 631,033 | 626,210 |
North America [Member] | ||
Reserve Quantities [Line Items] | ||
Revenues | 1,638,841 | 1,330,198 |
Production Cost | 631,033 | 626,210 |
South America [Member] | ||
Reserve Quantities [Line Items] | ||
Revenues | ||
Production Cost |
CAPITALIZED COSTS AND ACCUMULAT
CAPITALIZED COSTS AND ACCUMULATED DEPLETION RELATING TO OIL AND GAS PRODUCTION ACTIVITIES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Reserve Quantities [Line Items] | ||
Unproved properties not being amortized | $ 2,343,126 | |
Proved properties being amortized | 62,776,219 | |
Accumulated depreciation, depletion, amortization and impairment | (60,501,999) | $ (60,306,590) |
Net capitalized costs | 4,617,346 | |
UNITED STATES | ||
Reserve Quantities [Line Items] | ||
Unproved properties not being amortized | ||
Proved properties being amortized | 13,331,565 | |
Accumulated depreciation, depletion, amortization and impairment | (11,057,345) | (10,861,936) |
Net capitalized costs | 2,274,220 | |
South America [Member] | ||
Reserve Quantities [Line Items] | ||
Unproved properties not being amortized | 2,343,126 | |
Proved properties being amortized | 49,444,654 | |
Accumulated depreciation, depletion, amortization and impairment | (49,444,654) | $ (49,444,654) |
Net capitalized costs | $ 2,343,126 |
COSTS INCURRED IN OIL AND GAS P
COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION , EXPLORATION AND DEVELOPMENT ACTIVITIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reserve Quantities [Line Items] | ||
Proved | $ 19,835 | |
Unproved | ||
Exploration costs | ||
Development costs | 15,045 | 22,971 |
Total costs incurred | 15,045 | 42,806 |
South America [Member] | ||
Reserve Quantities [Line Items] | ||
Proved | ||
Unproved | ||
Exploration costs | ||
Development costs | ||
Total costs incurred |
SCHEDULE OF PROVED DEVELOPED AN
SCHEDULE OF PROVED DEVELOPED AND UNDEVELOPED RESERVES BY PRODUCT TYPE (Details) - bbl | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Natural Gas [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | 906,918 | 764,274 |
Revisions of prior estimates | 197,137 | 202,713 |
Discoveries | (60,069) | |
Production | (73,635) | |
Balance at end of the period | 1,030,420 | 906,918 |
Proved developed reserves | 1,030,420 | 906,918 |
Proved undeveloped reserves | ||
Oil [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | 94,551 | 96,513 |
Revisions of prior estimates | (346) | 12,405 |
Discoveries | (14,367) | |
Production | (10,688) | |
Balance at end of the period | 83,517 | 94,551 |
Proved developed reserves | 83,517 | 94,551 |
Proved undeveloped reserves | ||
UNITED STATES | Natural Gas [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | 906,918 | 764,274 |
Revisions of prior estimates | 197,137 | 202,713 |
Discoveries | (60,069) | |
Production | (73,635) | |
Balance at end of the period | 1,030,420 | 906,918 |
Proved developed reserves | 1,030,420 | 906,918 |
Proved undeveloped reserves | ||
UNITED STATES | Oil [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | 94,551 | 96,513 |
Revisions of prior estimates | (346) | 12,405 |
Discoveries | (14,367) | |
Production | (10,688) | |
Balance at end of the period | 83,517 | 94,551 |
Proved developed reserves | 83,517 | 94,551 |
Proved undeveloped reserves | ||
South America [Member] | Natural Gas [Member] | ||
Reserve Quantities [Line Items] | ||
Balance at beginning of the period | ||
Revisions of prior estimates | ||
Discoveries | ||
Production | ||
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 | ||
Discoveries | ||
Production | ||
Balance at end of the period | ||
Proved developed reserves | ||
Proved undeveloped reserves |
STANDARDIZED MEASURE OF DISCOUN
STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reserve Quantities [Line Items] | ||
Future cash flows from sales of oil and gas | $ 11,281,236 | |
Future production cost | (4,726,717) | |
Future development cost | ||
Future net cash flows | 6,554,519 | |
10% annual discount for timing of cash flow | (3,173,541) | |
Standardized measure of discounted future net cash flow relating to proved oil and gas reserves | $ 5,163,159 | 3,380,978 |
Change due to current year operations Sales, net of production costs | (1,007,808) | (678,014) |
Accretion of discount | 338,098 | 117,413 |
Net change in sales and transfer price, net of production costs | 1,876,949 | 2,650,901 |
Net change in future development cost | ||
Discoveries | ||
Revision and others | 691,609 | 786,094 |
Changes in production rates and other | (116,667) | (669,548) |
Net | 1,782,181 | 2,206,846 |
Beginning of year | 3,380,978 | 1,174,132 |
End of year | 5,163,159 | 3,380,978 |
UNITED STATES | ||
Reserve Quantities [Line Items] | ||
Future cash flows from sales of oil and gas | 16,451,375 | 11,281,236 |
Future production cost | (5,918,092) | (4,726,717) |
Future development cost | ||
Future net cash flows | 10,533,283 | 6,554,519 |
10% annual discount for timing of cash flow | (5,370,124) | (3,173,541) |
Standardized measure of discounted future net cash flow relating to proved oil and gas reserves | 5,163,159 | 3,380,978 |
Change due to current year operations Sales, net of production costs | (1,007,808) | (678,014) |
Accretion of discount | 338,098 | 117,413 |
Net change in sales and transfer price, net of production costs | 1,876,949 | 2,650,901 |
Net change in future development cost | ||
Discoveries | ||
Revision and others | 691,609 | 786,094 |
Changes in production rates and other | (116,667) | (669,548) |
Net | 1,782,181 | 2,206,846 |
Beginning of year | 3,380,978 | 1,174,132 |
End of year | 5,163,159 | 3,380,978 |
South America [Member] | ||
Reserve Quantities [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 |
SUPPLEMENTAL INFORMATION ON O_3
SUPPLEMENTAL INFORMATION ON OIL AND GAS EXPLORATION, DEVELOPMENT AND PRODUCTION ACTIVITIES (UNAUDITED) (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Reserve Quantities [Line Items] | |
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 |
UNITED STATES | |
Reserve Quantities [Line Items] | |
Amortization rate per unit | $ 8.95 |