Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Jun. 06, 2014 | Sep. 30, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'LUCAS ENERGY, INC. | ' | ' |
Entity Central Index Key | '0001309082 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Mar-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--03-31 | ' | ' |
Entity a Well-known Seasoned Issuer | 'No | ' | ' |
Entity a Voluntary Filer | 'No | ' | ' |
Entity Reporting Status Current | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $28,700,886 |
Entity Common Stock, Shares Outstanding | ' | 33,399,615 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Current Assets | ' | ' |
Cash | $522,155 | $450,691 |
Accounts Receivable | 609,097 | 832,801 |
Inventories | 112,677 | 64,630 |
Other Current Assets | 342,787 | 337,860 |
Total Current Assets | 1,586,716 | 1,685,982 |
Property and Equipment | ' | ' |
Oil and Gas Properties (Full Cost Method) | 49,554,069 | 44,709,800 |
Other Property and Equipment | 444,924 | 552,154 |
Total Property and Equipment | 49,998,993 | 45,261,954 |
Accumulated Depletion, Depreciation and Amortization | -11,190,505 | -9,204,649 |
Total Property and Equipment, Net | 38,808,488 | 36,057,305 |
Other Assets | 343,273 | ' |
Total Assets | 40,738,477 | 37,743,287 |
Current Liabilities | ' | ' |
Accounts Payable | 2,554,977 | 3,696,848 |
Common Stock Payable | 11,250 | 17,502 |
Accrued Expenses | 286,629 | 501,809 |
Advances From Working Interest Owners | ' | 1,384,085 |
Asset Retirement Obligation, current | ' | 73,621 |
Current Portion of Long-Term Notes Payable | 1,793,367 | 875,000 |
Total Current Liabilities | 4,646,223 | 6,548,865 |
Asset Retirement Obligation | 978,430 | 851,873 |
Long-Term Notes Payable, net of current portion | 5,430,144 | ' |
Commitments and Contingencies (see Note 7) | ' | ' |
Stockholders' Equity | ' | ' |
Preferred Stock Series A, 2,000 Shares Authorized of $0.001 Par, 2,000 Shares Issued and Outstanding | 3,095,600 | 3,095,600 |
Common Stock, 100,000,000 Shares Authorized of $0.001 Par, 30,018,081 Shares Issued and 29,981,181 Outstanding Shares at March 31, 2014 and 26,751,407 Issued and 26,714,507 Outstanding Shares at March 31, 2013, respectively | 30,018 | 26,751 |
Additional Paid in Capital | 52,995,987 | 48,970,509 |
Accumulated Deficit | -26,388,766 | -21,701,152 |
Common Stock Held in Treasury, 36,900 Shares, at Cost | -49,159 | -49,159 |
Total Stockholders' Equity | 29,683,680 | 30,342,549 |
Total Liabilities and Stockholders' Equity | $40,738,477 | $37,743,287 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares issued | 2,000 | 2,000 |
Preferred stock, shares outstanding | $2,000 | $2,000 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares issued | 30,018,081 | 26,751,407 |
Common stock, shares outstanding | 29,981,181 | 26,714,507 |
Treasury stock, shares in treasury | 36,900 | 36,900 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Operating Revenues | ' | ' |
Crude Oil | $5,219,752 | $8,219,984 |
Natural Gas | ' | 27,100 |
Total Revenues | 5,219,752 | 8,247,084 |
Operating Expenses | ' | ' |
Lease Operating Expenses | 2,217,029 | 3,760,036 |
Severance and Property Taxes | 394,372 | 432,187 |
Depreciation, Depletion, Amortization, and Accretion | 2,189,721 | 3,585,674 |
General and Administrative | 3,958,314 | 6,098,773 |
Total Expenses | 8,759,436 | 13,876,670 |
Operating Loss | -3,539,684 | -5,629,586 |
Other Expense (Income) | ' | ' |
Interest Expense | 1,169,440 | 1,367,844 |
Other Income, Net | -21,510 | -241,112 |
Total Other Expenses | 1,147,930 | 1,126,732 |
Loss Before Income Taxes | -4,687,614 | -6,756,318 |
Income Tax Provision | ' | 39,161 |
Net Loss | ($4,687,614) | ($6,795,479) |
Net Loss Per Share | ' | ' |
Basic and Diluted (in dollars per share) | ($0.16) | ($0.27) |
Weighted Average Shares Outstanding | ' | ' |
Basic and Diluted (in shares) | 28,593,995 | 25,099,749 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock [Member] | Preferred Stock [Member] | Additional Paid In Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Total |
Balance, beginning at Mar. 31, 2012 | $19,582 | $8,262,354 | $35,791,345 | ($14,905,673) | ($49,159) | $29,118,449 |
Balance, beginning, shares at Mar. 31, 2012 | 19,581,657 | 4,824 | ' | ' | ' | ' |
Common Shares issued for: | ' | ' | ' | ' | ' | ' |
Unit Offerings | 3,750 | ' | 6,822,990 | ' | ' | 6,826,740 |
Unit Offerings, shares | 3,750,000 | ' | ' | ' | ' | ' |
Warrants Exercised | 412 | ' | 412,089 | ' | ' | 412,501 |
Warrants Exercised, shares | 412,501 | ' | ' | ' | ' | ' |
Share-Based Compensation | 183 | ' | 320,686 | ' | ' | 320,869 |
Share-Based Compensation, shares | 183,249 | ' | ' | ' | ' | ' |
Conversion of Series B Preferred | 2,824 | -5,166,754 | 5,163,930 | ' | ' | ' |
Conversion of Series B Preferred, shares | 2,824,000 | -2,824 | ' | ' | ' | ' |
Amortization of stock options | ' | ' | 575,812 | ' | ' | 575,812 |
Modification of stock options | ' | ' | -116,343 | ' | ' | -116,343 |
Net loss | ' | ' | ' | -6,795,479 | ' | -6,795,479 |
Balance, ending at Mar. 31, 2013 | 26,751 | 3,095,600 | 48,970,509 | -21,701,152 | -49,159 | 30,342,549 |
Balance, ending, shares at Mar. 31, 2013 | 26,751,407 | 2,000 | ' | ' | ' | ' |
Common Shares issued for: | ' | ' | ' | ' | ' | ' |
Unit Offerings | 3,135 | ' | 3,299,922 | ' | ' | 3,303,057 |
Unit Offerings, shares | 3,135,185 | ' | ' | ' | ' | ' |
Share-Based Compensation | 132 | ' | 162,986 | ' | ' | 163,118 |
Share-Based Compensation, shares | 131,489 | ' | ' | ' | ' | ' |
Amortization of stock options | ' | ' | 270,106 | ' | ' | 270,106 |
Discount on Notes | ' | ' | 292,464 | ' | ' | 292,464 |
Net loss | ' | ' | ' | -4,687,614 | ' | -4,687,614 |
Balance, ending at Mar. 31, 2014 | $30,018 | $3,095,600 | $52,995,987 | ($26,388,766) | ($49,159) | $29,683,680 |
Balance, ending, shares at Mar. 31, 2014 | 30,018,081 | 2,000 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash Flows from Operating Activities | ' | ' |
Net Loss | ($4,687,614) | ($6,795,479) |
Adjustments to reconcile net losses to net cash used in operating activities: | ' | ' |
Depreciation, Depletion, Amortization and Accretion | 2,189,721 | 3,585,674 |
Share-Based Compensation | 413,711 | 677,553 |
Share-Based Compensation Related to Purchase of Stock Options | ' | 83,657 |
Amortization of Discount on Notes | 207,157 | ' |
Amortization of Deferred Financing Costs | 228,065 | ' |
Settlement of Debt | -118,620 | -344,329 |
Gain on Sale of Property and Equipment | -1,000 | 2,065 |
Impairment of Other Property | ' | 123,513 |
Changes in Components of Working Capital and Other Assets | ' | ' |
Accounts Receivable | 223,704 | 584,018 |
Inventories | -48,047 | -762 |
Other Current Assets | -4,927 | -138,183 |
Accounts Payable and Accrued Expenses | -702,529 | 371,402 |
Advances from Working Interest Owners | -1,384,085 | 35,019 |
Other Assets | ' | 1,212 |
Net Cash Used in Operating Activities | -3,684,464 | -1,814,640 |
Investing Cash Flows | ' | ' |
Additions of Oil and Gas Properties | -5,662,026 | -9,139,834 |
Additions of Other Property and Equipment | -230,517 | -69,486 |
Proceeds from Sale of Oil and Gas Properties | 156,935 | 4,069,948 |
Proceeds from Sale of Other Property and Equipment | 326,000 | ' |
Payments Received on Notes Receivable | ' | 14,703 |
Repayment of Note Payable | ' | -250,000 |
Net Cash (Used in) Provided by Investing Activities | -5,409,608 | -5,374,669 |
Financing Cash Flows | ' | ' |
Net Proceeds from Exercises of Warrants | ' | 412,501 |
Net Proceeds from the Sale of Common Stock | 3,303,057 | 6,826,740 |
Proceeds from Issuance of Notes Payable | 10,750,000 | ' |
Deferred Financing Costs | -571,338 | ' |
Repayment of Borrowings | -4,316,183 | -283,220 |
Net Cash Provided by Financing Activities | 9,165,536 | 6,956,021 |
Increase in Cash | 71,464 | -233,288 |
Cash at Beginning of the Period | 450,691 | 683,979 |
Cash at End of the Period | $522,155 | $450,691 |
ORGANIZATION_AND_OPERATIONS_OF
ORGANIZATION AND OPERATIONS OF THE COMPANY | 12 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
ORGANIZATION AND OPERATIONS OF THE COMPANY | ' |
NOTE 1 – ORGANIZATION AND OPERATIONS OF THE COMPANY | |
Lucas Energy Inc. is an independent oil and gas company engaged in the development and acquisition of onshore properties in Texas. The Company’s main operations are primarily located in the Eagle Ford and Austin Chalk trends in Wilson and Gonzales Counties and in the Eaglebine, Buda, and Glen Rose formations in Madison and Leon Counties. | |
Our corporate headquarters are in Houston, Texas and our field operation is located in Gonzales, Texas where we manage the Company’s well operations. | |
LIQUIDITY
LIQUIDITY | 12 Months Ended |
Mar. 31, 2014 | |
Liquidity | ' |
LIQUIDITY | ' |
NOTE 2 – LIQUIDITY | |
At March 31, 2014, the Company’s Total Current Liabilities of $4.6 million exceeded its Total Current Assets of $1.6 million, resulting in a working capital deficit of approximately $3.0 million, while at March 31, 2013, the Company’s total current liabilities of $6.5 million exceeded its total current assets of $1.7 million, resulting in a working capital deficit of $4.8 million. The $1.8 million reduction in the working capital deficit is primarily related to the Company effectively accessing the capital markets in connection with the sale of both equity and debt during the year ended March 31, 2014. Subsequent to year end, as described below the Company also raised capital and amended its current loan agreement in an effort to maintain adequate cash flow entering the coming year (see “Note 13. Subsequent Events”). | |
On August 13, 2013, the Company secured a long-term loan for $7.5 million. A portion of the funds raised in connection with the Loan were used to repay the $3.25 million in outstanding current Notes issued in April and May 2013 (as defined and described in Note 6). | |
On September 6, 2013, the Company closed a registered direct offering of $3,451,500 (approximately $3.2 million net, after deducting commissions and other expenses) in shares of common stock to certain institutional investors. The Company used the funds raised in the offerings to pay down expenses related to lease operating, workover activities and for general corporate purposes, including general and administrative expenses and legal settlements. | |
On April 21, 2014, the Company closed a registered direct offering of $2,000,000 (approximately $1.88 million net, after deducting commissions and other expenses) of 3,333,332 units, each consisting of one share of common stock and 0.50 of one warrant to purchase one share of common stock at an exercise price of $1.00 per share to certain institutional investors (see “Note 13. Subsequent Events”). The Company used the funds raised in the offering to pay down expenses related to lease operating, workover activities and for general corporate purposes, including general and administrative expenses. | |
On April 29, 2014 and effective March 14, 2014, the Company entered into an amended loan agreement on the long-term note noted above, which had a balance of approximately $7.3 million as of March 14, 2014. Pursuant to the amended long-term note, we restructured the repayment terms to defer monthly amortizing principal payments which began on March 13, 2014, during the period from April 13, 2014 through September 13, 2014 (see “Note 13. Subsequent Events”). | |
The Company believes the value of its undeveloped acreage provides a continued ability to access the capital markets in both equity and debt, which provides a sufficient means to conduct its current operations, meet its contractual obligations and undertake a forward outlook on future development of its current fields. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | |
The consolidated financial statements of Lucas Energy include the accounts of its wholly-owned subsidiary, LEI Alcalde Holdings, LLC. On August 16, 2012, Lucas Energy created the wholly-owned subsidiary LEI Alcalde Holdings, LLC to distinguish our investment in a Gonzales county building bought on November 21, 2011. All intercompany accounts and transactions have been eliminated. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Lucas’s consolidated financial statements are based on a number of significant estimates, including oil and natural gas reserve quantities which are the basis for the calculation of depreciation, depletion and impairment of oil and natural gas properties, and timing and costs associated with its asset retirement obligations, as well as those related to the fair value of stock options, stock warrants and stock issued for services. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash in banks and financial instruments which mature within three months of the date of purchase. The Company maintains cash and cash equivalents in bank deposit accounts, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company had no cash equivalents at March 31, 2014 or 2013. | |
Restricted Cash | |
As of March 31, 2014 and 2013, the Company had no restricted cash. | |
Allowance for Doubtful Accounts | |
Accounts receivable consist of uncollaterized oil and natural gas revenues due under normal trade terms. Management reviews receivables periodically and reduces the carrying amount by a valuation allowance that reflects management’s best estimate of the amount that may not be collectible. There was no allowance recorded as of March 31, 2014 or 2013. | |
Concentration of Credit Risk | |
Accounts receivable are recorded at invoiced amount and generally do not bear interest. The Company’s accounts receivables are concentrated among entities engaged in the energy industry within the U.S. and include operating revenue from our producing wells. The Company periodically assesses the financial condition of these entities and institutions and considers any possible credit risk to be minimal. | |
We sell a significant portion of our oil and gas production to a relatively small number of customers. For the year ended March 31, 2014, approximately 86% of our consolidated product revenues were attributable to three customers: Sunoco Refining and Marketing, Inc.; EDF Trading North America LLC.; and Enterprise Crude Oil LLC. The remaining 14% was sold to Shell Trading (US) Company, our current and only customer as of March 31, 2014. We are not dependent upon any one purchaser and have alternative purchasers readily available at competitive market prices if there is disruption in services or other events that cause us to search for other ways to sell our production. | |
Fair Value of Financial Instruments | |
As of March 31, 2014 and 2013, the fair value of Lucas’s cash, accounts receivable, accounts payable, note receivable and note payable approximate carrying values because of the short-term maturity of these instruments. | |
The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with property and equipment. Significant Level 3 inputs used in the calculation of asset retirement obligations include plugging costs and reserve lives. A reconciliation of the Company's asset retirement obligations is presented in “Note 5 – Asset Retirement Obligations”. | |
Oil and Natural Gas Properties, Full Cost Method | |
Lucas uses the full cost method of accounting for oil and natural gas producing activities. Costs to acquire mineral interests in oil and natural gas properties, to drill and equip exploratory wells used to find proved reserves, and to drill and equip development wells including directly related overhead costs and related asset retirement costs are capitalized. | |
Under this method, all costs, including internal costs directly related to acquisition, exploration and development activities are capitalized as oil and natural gas property costs on a country-by-country basis. Costs not subject to amortization consist of unproved properties that are evaluated on a property-by-property basis. Amortization of these unproved property costs begins when the properties become proved or their values become impaired. Lucas assesses overall values of unproved properties, if any, on at least an annual basis or when there has been an indication that impairment in value may have occurred. Impairment of unproved properties is assessed based on management's intention with regard to future development of individually significant properties and the ability of Lucas to obtain funds to finance their programs. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is added to the capitalized costs to be amortized. | |
Sales of oil and natural gas properties are accounted for as adjustments to the net full cost pool with no gain or loss recognized, unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves. If it is determined that the relationship is significantly altered, the corresponding gain or loss will be recognized in the consolidated statements of operations. | |
Costs of oil and natural gas properties are amortized using the units of production method. Amortization expense calculated per equivalent physical unit of production amounted to $35.94 and $40.51 per barrel of oil equivalent for the years ended March 31, 2014 and 2013, respectively. | |
Ceiling Test | |
In applying the full cost method, Lucas performs an impairment test (ceiling test) at each reporting date, whereby the carrying value of property and equipment is compared to the “estimated present value” of its proved reserves discounted at a 10-percent interest rate of future net revenues, based on current economic and operating conditions at the end of the period, plus the cost of properties not being amortized, plus the lower of cost or fair market value of unproved properties included in costs being amortized, less the income tax effects related to book and tax basis differences of the properties. If capitalized costs exceed this limit, the excess is charged as an impairment expense. During the years ended March 31, 2014 and 2013, no impairment of oil and natural gas properties was recorded. | |
Other Property and Equipment | |
Other property and equipment are stated at cost and consist primarily of a field office, furniture and computer equipment. Depreciation is computed on a straight-line basis over the estimated useful lives. | |
Income Taxes | |
Deferred income taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry-forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. 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 accrued tax liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |
Lucas has evaluated and concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements as of March 31, 2014 and 2013. The Company’s policy is to classify assessments, if any, for tax related interest expense and penalties as interest expense. | |
Earnings per Share of Common Stock | |
Basic and diluted net income per share calculations are calculated on the basis of the weighted average number of shares of the Company's common stock (Common Shares) outstanding during the year. Purchases of treasury stock reduce the outstanding shares commencing on the date that the stock is purchased. Common stock equivalents are excluded from the calculation when a loss is incurred as their effect would be anti-dilutive. | |
Stock options to purchase 914,468 Common Shares at an average exercise price of $1.39 per share and warrants to purchase 4,298,487 Common Shares at an average exercise price of $2.53 per share were outstanding at March 31, 2014. | |
Stock options to purchase 819,668 Common Shares at an average exercise price of $1.55 per share and warrants to purchase 3,893,636 Common Shares at an average exercise price of $2.65 per share were outstanding at March 31, 2013. | |
At the year ended March 31, 2014, Lucas had outstanding 2,000 shares of Series A Convertible Preferred Stock. Each share of the Series A Convertible Preferred Stock shares is convertible into an aggregate of 1,000 shares of the Company’s common stock and have no liquidation preference and no maturity date. | |
Using the treasury stock method, had the Company had net income, no common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share calculation for the year ended March 31, 2014. | |
Share-Based Compensation | |
Lucas measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award over the vesting period. | |
Revenue and Cost Recognition | |
Lucas recognizes oil and natural gas revenue under the sales method of accounting for its interests in producing wells as crude oil and natural gas is produced and sold from those wells. Costs associated with production are expensed in the period incurred. Crude oil produced but remaining as inventory in field tanks is not recorded as revenue in Lucas’s consolidated financial statements because it is not material. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property And Equipment | ' | ||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||
NOTE 4 – PROPERTY AND EQUIPMENT | |||||||||
Oil and Natural Gas Properties | |||||||||
All of Lucas’s oil and natural gas properties are located in the United States. Costs being amortized at March 31, 2014 and 2013 are as follows: | |||||||||
At March 31, | |||||||||
2014 | 2013 | ||||||||
Proved leasehold costs | $ | 11,354,136 | $ | 10,002,828 | |||||
Costs of wells and development | 37,447,018 | 33,961,775 | |||||||
Capitalized asset retirement costs | 752,915 | 745,197 | |||||||
Total oil & natural gas properties | 49,554,069 | 44,709,800 | |||||||
Accumulated depreciation and depletion | (10,991,064 | ) | (9,077,997 | ) | |||||
Net Capitalized Costs | $ | 38,563,005 | $ | 35,631,803 | |||||
Acquisition of Oil and Natural Gas Properties | |||||||||
During the year ended March 31, 2014, the Company purchased additional working interests consisting of three oil and natural gas properties for approximately $70,000. | |||||||||
During the year ended March 31, 2013, the Company purchased various oil and natural gas properties and equipment for $1,037,512. As part of the acquisitions, we entered into a $450,000 Note Payable, paid $116,700 in cash, and extinguished a Note Receivable for $470,812. | |||||||||
Sale of Oil and Gas Properties | |||||||||
On March 31, 2014, the Company sold 156 acres of oil and natural gas properties with aggregate gross proceeds of $156,935 in Madison County, Texas. All oil and natural gas property sale proceeds were treated as a reduction in the full cost pool with no gain or loss recorded on the sales. | |||||||||
During the year ended March 31, 2013, the Company sold several oil and natural gas properties with aggregate gross proceeds of $4,069,948, of which $269,163 was offset by a Note Payable due from a previous purchase transaction. All oil and natural gas property sale proceeds were treated as a reduction in the full cost pool with no gain or loss recorded on the sales. On November 21, 2012, the Company entered into a Purchase Agreement with Sundown Energy, LP to sell the Company’s 0.77% net royalty interest in the oil and natural gas properties located on approximately 52 acres of land within the Baker Deforest Unit, located in Gonzales and Dewitt Counties, Texas, including the Baker Deforest Unit #1H, #2H, #3H, #4H and #12H wells. The purchaser paid $4.0 million in cash in connection with the sale, excluding any adjusted purchase amounts. The closing occurred on December 19, 2012, but was effective as of October 1, 2012. | |||||||||
Other Property and Equipment | |||||||||
On March 21, 2013, Lucas entered into an agreement to sell its Gonzales County, Texas office building for $325,000, which resulted in an impairment loss of $123,513 and was recorded to Other Expenses, in the Consolidated Statements of Operations. A non-reimbursable down payment of $32,500 was paid on June 26, 2013, resulting in the carrying amount of the building to be reduced by the down payment amount. On September 20, 2013, Lucas was paid an additional $30,000 non-reimbursable payment and on November 14, 2013 the final payment of $262,500 was made completing the sale. As of March 31, 2014, the building is no longer recognized in the Company’s financial statements. | |||||||||
In February 2014, the Company purchased a field office for approximately $50,000 which is used to provide local operational support for our properties in the Eagleford and Austin Chalk areas. The land upon which the field office resides is leased by the Company over a three-year term beginning in January 2014 through December 2016. The lease is renewable, and the yearly lease amounts are $7,200, $7,800 and $8,400 over the three-year term, respectively. |
ASSET_RETIREMENT_OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Asset Retirement Obligations | ' | ||||||||
ASSET RETIREMENT OBLIGATIONS | ' | ||||||||
NOTE 5 – ASSET RETIREMENT OBLIGATIONS | |||||||||
Lucas records the fair value of a liability for asset retirement obligations (“ARO”) in the period in which it is incurred and a corresponding increase in the carrying amount of the related long-lived asset. The present value of the estimated asset retirement cost is capitalized as part of the carrying amount of the long-lived asset and is depreciated over the useful life of the asset. Lucas accrues an abandonment liability associated with its oil and natural gas wells when those assets are placed in service. The ARO is recorded at its estimated fair value and accretion is recognized over time as the discounted liability is accreted to its expected settlement value. Fair value is determined by using the expected future cash outflows discounted at Lucas’s credit-adjusted risk-free interest rate. No market risk premium has been included in Lucas’s calculation of the ARO balance. | |||||||||
The following table presents the reconciliation of the beginning and ending aggregate carrying amounts of long-term legal obligations associated with the future retirement of oil and natural gas properties for the years ended March 31, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Carrying amount at beginning of year | $ | 925,494 | $ | 1,075,152 | |||||
Liabilities incurred | 7,719 | 228,918 | |||||||
Liabilities settled | (52,071 | ) | (27,337 | ) | |||||
Accretion | 97,288 | 59,649 | |||||||
Revisions | - | 39,162 | |||||||
Reduction for sale of oil and natural gas property | - | (450,050 | ) | ||||||
Carrying amount at end of year | $ | 978,430 | $ | 925,494 |
NOTE_PAYABLE
NOTE PAYABLE | 12 Months Ended |
Mar. 31, 2014 | |
Note Payable | ' |
NOTE PAYABLE | ' |
NOTE 6 – NOTE PAYABLE | |
Effective April 4, 2013, the Company entered into a Loan Agreement with various lenders (the “April 2013 Loan Agreement”) pursuant to which such lenders loaned the Company an aggregate of $2,750,000 to be used for general working capital. The lenders included entities beneficially owned by our chairman, Ken Daraie (which entity loaned us $2,000,000) and director, W. Andrew Krusen, Jr. (which entities loaned us $250,000), as well as an unrelated third party which loaned the Company $500,000. On August 16, 2013, the outstanding balance and interest was paid in full. | |
Effective May 31, 2013, the Company entered into a Loan Agreement with various lenders (the “May 2013 Loan Agreement” and together with the April 2013 Loan Agreement, the “Loan Agreements”), pursuant to which such lenders loaned the Company an aggregate of $500,000 to be used for general working capital and to pay amounts the Company owed to Nordic Oil USA I, LLLP (“Nordic”). The lenders were third parties, unaffiliated with the Company, and one lender who previously loaned the Company funds in connection with the April 2013 Loan Agreement provided the Company an additional $300,000 loan in connection with the May 2013 Loan Agreement. The Loan Agreement included substantially similar terms as the April 2013 Loan Agreement and was approved by the prior lenders in the April 2013 Loan Agreement, who also waived their right to be repaid from the proceeds from the loans. On August 16, 2013, the outstanding balance and interest was paid in full. | |
The loans provided pursuant to the Loan Agreements were documented by Promissory Notes (the “Notes”) which accrued interest at the rate of 14% per annum, with such interest payable monthly in arrears (beginning June 1, 2013 in connection with the April 2013 Loan Agreement and July 1, 2013 in connection with the May 2013 Loan Agreement) and were due and payable on October 4, 2013 in connection with the April 2013 Loan Agreement and April 4, 2014 in connection with the May 2013 Loan Agreement. The Notes could be prepaid at any time without penalty. In the event any amounts were not paid when due under the Notes and/or in the event any event of default occurred and was continuing under the Notes, the Notes accrued interest at the rate of 17% per annum. The Note holders were each paid their pro rata portion of a commitment fee ($55,000 in connection with the April 2013 Loan Agreement and $15,000 in connection with the May 2013 Loan Agreement) and were each granted their pro rata portion of warrants to purchase 325,000 shares of the Company’s common stock which were evidenced by Common Stock Purchase Warrants (the “Warrants”). The Warrants have an exercise price of $1.50 per share and a term of five years from the grant date. | |
Effective on August 13, 2013, Lucas entered into a Letter Loan Agreement with Louise H. Rogers (the “Letter Loan”). In connection with the Letter Loan and a Promissory Note entered into in connection therewith, Ms. Rogers loaned the Company $7.5 million (the “Loan”). The Loan accrues interest at the rate of 12% per annum (18% upon the occurrence of an event of default), can be prepaid by Lucas at any time without penalty after November 13, 2013 and is due and payable on August 13, 2015, provided that $75,000 in interest only payments were due on the Loan during the first six months of the term (which were escrowed by Lucas) and beginning on March 13, 2014, Lucas was required to make monthly amortization principal payments equivalent to the sum of fifty-percent of the Loan during months seven through twenty-four of the term (which requirement has since been modified by the amendment described below). An escrow deposit of $450,000 for the first six months interest was recorded as restricted cash within the balance sheet, with no balance outstanding on the balance sheet as of March 31, 2014. Lucas is also required to make mandatory prepayments of the loan in the event the collateral securing the Loan does not meet certain thresholds and coverage ratios. The repayment of the Loan is secured by a security interest in substantially all of Lucas’s assets which was evidenced by a Security Agreement and a Mortgage, Deed of Trust, Assignment, Security Agreement, Financing Statement and Fixture Filing. Lucas agreed to pay a $15,000 quarterly administrative fee in connection with the Loan and grant the administrator a warrant to purchase up to 279,851 shares of Lucas’s common stock at an exercise price of $1.35 per share and a term continuing until the earlier of (a) August 13, 2018; and (b) three years after the payment in full of the Loan. A portion of the funds raised in connection with the Loan were used to repay the $3.25 million in outstanding Notes issued in April and May 2013 as described above. The Company also capitalized approximately $480,000 in deferred financing costs in relation to expenses incurred in the execution of the Letter Loan. | |
The Company recorded the fair value of warrants issued in connection with the Notes Payable as a discount on the Notes and amortizes the discount through non-cash interest expense using the effective interest method over the term of the debt. The fair value of the 275,000 April 2013 Warrants was recorded as a $137,118 debt discount and the fair value of the 50,000 May 2013 Warrants was recorded as a $27,383 debt discount. As the Notes have been fully repaid, the Company has fully amortized the total debt discount of $164,501 for the Notes. The fair value of the 279,851 Letter Loan warrants was recorded as a $127,963 debt discount, of which, $42,656 has been amortized as of March 31, 2014. | |
Additionally, Lucas had paid $147,194 in cash interest on the April 2013 Notes and $14,972 in cash interest on the May 2013 Notes. These amounts were for total interest paid up to the Loan repayment date of August 16, 2013. Lucas also has fully recognized $70,000 in amortization expenses in relation to deferred financing costs for the Notes. The Company also paid $525,000 in cash interest and amortized approximately $152,000 in deferred financing cost for the Letter Loan reducing the deferred financing cost asset base to approximately $343,000, as of March 31, 2014. | |
On March 29, 2013, and effective March 31, 2013, Lucas entered into a Settlement and Release Agreement with Nordic Oil USA I, LLLP ("Nordic") pursuant to which the parties agreed to settle and terminate a prior purchase and sale agreement, for which Lucas purchased all of Nordic's right, title and interest in certain oil, gas and mineral leases located in Gonzales, Karnes and Wilson Counties, Texas. Lucas agreed to pay $1,125,000 to Nordic, assign certain properties and complete certain fieldwork stipulated in the Settlement and Release Agreement. On March 29, 2013, Lucas paid $250,000, leaving a balance of $875,000 owed to Nordic as of March 31, 2013. Lucas made three additional payments during this fiscal year, including a final $125,000 payment on September 19, 2013, and fulfilled the terms of the Settlement and Release Agreement. | |
Effective on April 29, 2014, the Company entered into an Amended Letter Loan Agreement (the “Amended Letter Loan”) and Amended and Restated Promissory Note (the “Amended Note”), each effective March 14, 2014, in connection with the Letter Loan. Pursuant to the Amended Letter Loan and Amended Note, we restructured the repayment terms of the original Letter Loan and Promissory Note to defer monthly amortizing principal payments which began on March 13, 2014, during the period from April 13, 2014 through September 13, 2014, during which six month period interest on the Amended Note will accrue at 15% per annum (compared to 12% per annum under the terms of the original Promissory Note). Beginning on October 13, 2014, the interest rate of the Amended Note will return to 12% per annum and we will be required to pay the monthly amortization payments in accordance with the original repayment schedule (which total approximately $205,000 to $226,000, depending on the due date), as well as additional principal amortization payments of approximately $266,000 every three months (beginning October 13, 2014, and ending on July 13, 2015) until maturity, with approximately $3.87 million due on maturity, which maturity date remains August 13, 2015. Additionally, we agreed to pay all legal expenses of the lender related to the amendments and agreed to (i) pay $25,000 and (ii) issue 75,000 shares of restricted common stock, to Robertson Global Credit, LLC (“Robertson”), the administrator of the Loan, as additional consideration for the modifications. Should we opt to prepay the Amended Note prior to the maturity date, we are required to pay an exit fee equal to the advisory fees of approximately $15,000 per quarter that would have been due, had the note remained outstanding through maturity. Our year end consolidated balance sheet has been updated to incorporate the reclassifying of our short-term and long-term loan obligations based on the Amended Note, which is effective as of March 14, 2014. Therefore, the current portion of the Note Payable is $1,793,367 and the long-term portion is $5,515,451 ($5,430,114 net of the remaining $85,307 Note discount) as of March 31, 2014. The Amended Note still has an August 31, 2015 maturity date. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments And Contingencies | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
NOTE 7 – COMMITMENTS AND CONTINGENCIES | |||||
Minimum Commitments. The Company has operating leases for office space and other property and equipment. The Company incurred rental expense of $122,498 and $130,547 for the years ended March 31, 2014 and 2013, respectively. | |||||
Future minimum annual rental commitments under non-cancelable leases at March 31, 2014 were as follows: | |||||
31-Mar-14 | |||||
2015 | $ | 86,277 | |||
2016 | 41,544 | ||||
$ | 127,821 | ||||
Legal Proceedings. There are currently various suits and claims pending against Lucas that have arisen in the ordinary course of Lucas’s business, including contract disputes and title disputes. While the ultimate outcome and impact on Lucas cannot be predicted with certainty, management believes that the resolution of these suits and claims will not, individually or in the aggregate, have a material adverse effect on Lucas’s consolidated financial position, results of operations or cash flow. Lucas records reserves for contingencies when information available indicates that a loss is probable and the amount of the loss can be reasonably estimated. | |||||
Employment Agreements. Effective November 1, 2012, we entered into an Employment Agreement with Anthony C. Schnur, our Chief Executive Officer and Interim Chief Financial Officer, which agreement was amended and restated effective December 12, 2012. The agreement has a term of two years, expiring on October 31, 2014, provided that the agreement is automatically extended for additional one year terms, unless either party provides notice of their intent not to renew within the 30 day period prior to any automatic renewal date. The Company agreed to pay Mr. Schnur a base annual salary of $310,000 during the term of the agreement, of which $290,000 is payable in cash and $20,000 is payable in shares of the Company’s common stock. In the event the agreement is terminated by the Company for a reason other than cause (as described in the agreement) or by Mr. Schnur for good reason (as described in the agreement), Mr. Schnur is due in the form of a lump sum payment, the product of the base salary and bonus he was paid under the agreement for the prior 12 month period, provided that if such termination occurs six months before or 24 months following the occurrence of a Change of Control (as described in the agreement), Mr. Schnur is due 200% of the amount described above upon such termination. The requirement to pay severance fees under the Employment Agreement may prevent or delay a change of control of the Company. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Taxes | ' | ||||||||
INCOME TAXES | ' | ||||||||
NOTE 8 – INCOME TAXES | |||||||||
The Company recorded a provision for income taxes of $0 and $39,161 for the years ended March 31, 2014 and March 31, 2013, respectively. | |||||||||
2014 | 2013 | ||||||||
Current taxes: | |||||||||
Federal | $ | - | $ | 8,161 | |||||
State | - | 31,000 | |||||||
- | 39,161 | ||||||||
Deferred taxes: | |||||||||
Federal | - | - | |||||||
State | - | - | |||||||
- | - | ||||||||
Total | $ | - | $ | 39,161 | |||||
The following is a reconciliation between actual tax expense and income taxes computed by applying the U.S. federal income tax rate to income from continuing operations before income taxes for the two years ended March 31, 2014: | |||||||||
2014 | 2013 | ||||||||
Computed at expected tax rates (34%) | $ | (1,593,788 | ) | $ | (2,297,148 | ) | |||
Meals and entertainment | 4,431 | 10,938 | |||||||
State Income tax net of FIT benefit | - | 20,460 | |||||||
Return to accrual true-up | 11,329 | (3,000 | ) | ||||||
Change in valuation allowance | 1,578,028 | 2,307,911 | |||||||
Total | $ | - | $ | 39,161 | |||||
Tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred liabilities are presented below: | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Net operating tax loss carryforwards | $ | 11,236,160 | $ | 10,049,197 | |||||
Gain on sale of oil and gas properties | 6,172,745 | 6,303,421 | |||||||
Depletion | 1,628,359 | 1,562,341 | |||||||
Unrealized net loss on available-for-sale securities | 123,954 | 123,954 | |||||||
Share-based compensation | 291,439 | 201,729 | |||||||
Accrued compensation | 263,426 | 208,313 | |||||||
Tax Credit | - | 8,161 | |||||||
Total deferred tax assets | $ | 19,716,083 | $ | 18,457,116 | |||||
Deferred tax liabilities: | |||||||||
Intangible drilling costs | (8,117,962 | ) | (8,661,765 | ) | |||||
Depreciation | (2,307,572 | ) | (2,020,555 | ) | |||||
Other | 60,209 | (2,066 | ) | ||||||
Total deferred tax liabilities | (10,365,325 | ) | (10,684,386 | ) | |||||
Subtotal | 9,350,758 | 7,772,730 | |||||||
Less: Valuation allowance | (9,350,758 | ) | (7,772,730 | ) | |||||
Total | $ | - | $ | - | |||||
At March 31, 2014, Lucas had estimated net operating loss carry-forwards for federal and state income tax purposes of approximately $33.0 million which will begin to expire, if not previously used, beginning in the year 2029. | |||||||||
The above estimates are based upon management’s decisions concerning certain elections which could change the relationship between net income and taxable income. Management decisions are made annually and could cause the estimates to vary significantly. | |||||||||
The Company files income tax returns for federal and state purposes. Management believes that with few exceptions, the Company is not subject to examination by United States tax authorities for tax periods prior to 2009. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||
STOCKHOLDERS' EQUITY | ' | ||||||||||||||||||||
NOTE 9 – STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Common Stock | |||||||||||||||||||||
The following summarizes Lucas’s common stock activity for each of the two years ended March 31, 2014: | |||||||||||||||||||||
Common Shares | |||||||||||||||||||||
Issued | |||||||||||||||||||||
Amount (a) | Per Share | Shares | Treasury | Outstanding | |||||||||||||||||
Balance at March 31, 2012 | 19,581,657 | (36,900 | ) | 19,544,757 | |||||||||||||||||
Unit Offering | $ | 6,826,740 | $ | 1.82 | 3,750,000 | - | 3,750,000 | ||||||||||||||
Warrants Exercised | 412,501 | 1 | 412,501 | - | 412,501 | ||||||||||||||||
Share-Based Compensation | 320,869 | 1.75 | 183,249 | - | 183,249 | ||||||||||||||||
Conversion of Preferred | - | - | 2,824,000 | - | 2,824,000 | ||||||||||||||||
Balance at March 31, 2013 | 26,751,407 | (36,900 | ) | 26,714,507 | |||||||||||||||||
Private Unit Offering - July | $ | 250,000 | $ | 1.35 | 185,185 | - | 185,185 | ||||||||||||||
Registered Direct Offering - September | 3,209,168 | 1.09 | 2,950,000 | - | 2,950,00 | ||||||||||||||||
Share-Based Compensation | 163,118 | 1.24 | 131,489 | - | 131,489 | ||||||||||||||||
Balance at March 31, 2014 | 30,018,081 | (36,900 | ) | 29,981,181 | |||||||||||||||||
(a) | Net proceeds or fair market value on grant date, as applicable. | ||||||||||||||||||||
In July 2013, Meson Capital Partners LP, an affiliate of Ryan J. Morris, a director of the Company, purchased 185,185 restricted shares of common stock directly from the Company in a private transaction for consideration of $250,000 or $1.35 per share ($0.01 above the closing sales price of the Company’s common stock on July 17, 2013). The Company did not pay any commission in connection with the offering. The Company used the funds raised in the offering to pay down expenses related to drilling, lease operating, workover activities and for general corporate purposes, including general and administrative expenses. In September 2013, the Company closed a registered direct offering of $3,451,500 (approximately $3,200,000 net, after deducting commissions and other expenses) of shares of common stock to certain institutional investors. In total, the Company sold 2.95 million shares of common stock at a price of $1.17 per share. The Company used the funds raised in the offering to pay down expenses related to drilling, lease operating, workover activities and for general corporate purposes, including general and administrative expenses. See Note 10 – Share-Based Compensation for information on common stock activity related to Share-Based Compensation, including shares granted to the Board of Directors, officers and employees. | |||||||||||||||||||||
In April 2012, the Company sold an aggregate of 2,950,000 units at $2.00 each, with each unit consisting of one share of Company common stock and 0.35 of a warrant to purchase one share of the Company's common stock at an exercise price of $2.30 per share in a registered direct offering. A total of 2,950,000 shares and 1,032,500 warrants were sold in connection with the offering. The Company received an aggregate of $5,900,000 (or $2.00 per unit) in gross funding and approximately $5,518,000 (or $1.87 per unit) in net proceeds after paying commissions and other expenses associated with the offering. In September 2012, the Company sold an aggregate of 800,000 units at $1.65 each, with each unit consisting of one share of Company common stock and 0.25 of a warrant to purchase one share of the Company’s common stock at an exercise price of $2.00 per share in a registered direct offering. A total of 800,000 shares and 200,000 warrants were sold in connection with the offering. The Company received an aggregate of $1,320,000 (or $1.65 per unit) in gross funding and approximately $1,308,000 (or $1.64 per unit) in net proceeds after paying related expenses associated with the offering. The Company used the net proceeds of the offerings to pay down expenses related to drilling, lease operating and workover activities; and for general corporate purposes, including general and administrative expenses. The Company did not pay any commissions in connection with the offerings. During the year ended March 31, 2013, 412,501 warrants with an exercise price of $1.00 per share were exercised for total consideration of $412,501 and 412,501 shares of common stock were issued to the warrant holders. See Note 10 – Share-Based Compensation for information on common stock activity related to Share-Based Compensation, including shares granted to the Board of Directors, officers, employees and consultants. | |||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||
The following summarizes Lucas’s preferred shares activity for each of the two years ended March 31, 2014: | |||||||||||||||||||||
Preferred Shares | |||||||||||||||||||||
Issued | |||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||
Balance at March 31, 2012 | 4,824 | $ | 8,262,354 | ||||||||||||||||||
Conversion to Common Stock: | |||||||||||||||||||||
Series B convertible | (2,824 | ) | (5,166,754 | ) | |||||||||||||||||
Balance at March 31, 2013 | 2,000 | $ | 3,095,600 | ||||||||||||||||||
No Conversions or Issuances | - | - | |||||||||||||||||||
Balance at March 31, 2014 | 2,000 | $ | 3,095,600 | ||||||||||||||||||
Each share of the Series A Convertible Preferred Stock shares is convertible into an aggregate of 1,000 shares of the Company’s common stock and has no liquidation preference and no maturity date. | |||||||||||||||||||||
Treasury Stock | |||||||||||||||||||||
Lucas did not repurchase any shares of its common stock during the two years ended March 31, 2014. The shares previously purchased are held by Lucas’s transfer agent as Treasury Stock, and the shares are treated as issued, but not outstanding, at March 31, 2014 and 2013. The shares are recorded at a cost of $49,159. | |||||||||||||||||||||
Warrant | |||||||||||||||||||||
The following summarizes Lucas’s warrant activity for each of the two years ended March 31, 2014: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Average | Average | ||||||||||||||||||||
Number of | Exercise | Number of | Exercise | ||||||||||||||||||
Warrants | Price | Warrants | Price | ||||||||||||||||||
Outstanding at Beginning of Year | 3,893,636 | $ | 2.65 | 2,966,136 | $ | 2.67 | |||||||||||||||
Issued | 604,851 | 1.43 | 1,345,001 | 2.3 | |||||||||||||||||
Expired | (200,000 | ) | 1 | (5,000 | ) | 1 | |||||||||||||||
Exercised | - | - | (412,501 | ) | 1 | ||||||||||||||||
Outstanding at End of Year | 4,298,487 | $ | 2.53 | 3,893,636 | $ | 2.65 | |||||||||||||||
During the year ended March 31, 2014, warrants to purchase 200,000 shares of our common stock with an exercise price of $2.00 per share expired unexercised. These warrants were granted in connection with the sale of units in the Company’s unit offering in September 2012. As discussed in Note 6, the Company granted warrants to purchase 325,000 shares of our common stock with an exercise price of $1.50 per share and a term of five years in conjunction with the issuance of the April 2013 and May 2013 Notes as well as warrants to purchase 279,851 shares of our common stock with an exercise price of $1.35 per share and a term of five years in conjunction with the Letter Loan. The warrants are indexed to the Company’s stock and are treated as an equity instrument since the exercise price and shares are known and fixed at the date of issuance, and no other clause in the agreement requires the warrants to be treated as a liability. | |||||||||||||||||||||
During the year ended March 31, 2013, the Company issued 1,232,500 warrants and reissued 112,501 warrants to warrant holders in connection with purchased securities. In April 2012, the Company sold an aggregate of 2,950,000 units at $2.00 each, with each unit consisting of one share of Company common stock and 0.35 of a warrant to purchase one share of the Company's common stock at an exercise price of $2.30 per share in a registered direct offering. A total of 2,950,000 shares and 1,032,500 warrants were sold in connection with the offering. The Company received an aggregate of $5,900,000 (or $2.00 per unit) in gross funding and approximately $5,518,000 (or $1.87 per unit) in net proceeds after paying commissions and other expenses associated with the offering. In September 2012, the Company sold an aggregate of 800,000 units at $1.65 each, with each unit consisting of one share of Company common stock and 0.25 of a warrant to purchase one share of the Company’s common stock at an exercise price of $2.00 per share in a registered direct offering. A total of 800,000 shares and 200,000 warrants were sold in connection with the offering. The Company received an aggregate of $1,320,000 (or $1.65 per unit) in gross funding and approximately $1,308,000 (or $1.64 per unit) in net proceeds after paying related expenses associated with the offering. The Company used the net proceeds of the offerings to pay down expenses related to drilling, lease operating and workover activities; and for general corporate purposes, including general and administrative expenses. The Company did not pay any commissions in connection with the offerings. | |||||||||||||||||||||
During the year ended March 31, 2013, 412,501 warrants with an exercise price of $1.00 per share were exercised and 5,000 warrants with an exercise price of $1.00 per share expired. These warrants were originally issued to the warrant holders in connection with the purchase of units in a private equity placement in September 2009. These warrants had an expiration date of August 31, 2012. At March 31, 2013, all of the September 2009 warrants had been exercised or expired. | |||||||||||||||||||||
At March 31, 2014, the outstanding warrants had no intrinsic value. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||||||
SHARE-BASED COMPENSATION | ' | ||||||||||||||||
NOTE 10 – SHARE-BASED COMPENSATION | |||||||||||||||||
Common Stock | |||||||||||||||||
On December 27, 2013, the Company's Board of Directors adopted, subject to the ratification of the shareholders, the Company's 2014 Stock Incentive Plan (“2014 Incentive Plan”). At the annual shareholder meeting held on February 13, 2014, Company shareholders approved the 2014 Incentive Plan providing for the Company to issue up to 1,000,000 shares of common stock to officers, directors, employees, contractors and consultants for services provided to the Company. The Company registered shares to be issued under the 2014 Incentive Plan in a Form S-8 registration statement filed with the SEC in May 2014. At March 31, 2014, 1,000,000 shares are available for issuance under the 2014 Incentive Plan (see “Note 13. Subsequent Events”). | |||||||||||||||||
During the annual shareholder meeting held on March 31, 2012, Company shareholders approved the Lucas Energy, Inc. 2012 Stock Incentive Plan (“2012 Incentive Plan”) providing for the Company to issue up to 1,500,000 shares of common stock to officers, directors, employees, contractors and consultants for services provided to the Company. The Company registered shares to be issued under the 2012 Incentive Plan in a Form S-8 registration statement filed with the SEC in April 2012. At March 31, 2014, 315,379 shares remained available for issuance under the 2012 Incentive Plan. | |||||||||||||||||
During the annual shareholder meeting held on March 30, 2010, Company shareholders approved the Lucas Energy, Inc. Long Term Incentive Plan (“2010 Incentive Plan”) providing for the Company to issue up to 900,000 shares of common stock to officers, directors, employees, contractors and consultants for services provided to the Company. The Company registered shares to be issued under the 2010 Incentive Plan in a Form S-8 registration statement filed with the SEC in April 2010. At March 31, 2014, 194,518 shares remained available for issuance under the 2010 Incentive Plan. | |||||||||||||||||
For the year ended March 31, 2014, the Company awarded 124,398 shares of its common stock with an aggregate grant date fair value of $148,806, which was recognized as stock compensation expense. The common stock share awards were valued based on the trading value of Lucas’s common stock on the date of grant, according to the employment agreements with certain officers and other managerial personnel. Of the 124,398 shares of common stock awarded, only 114,296 shares had been issued as of March 31, 2014. The remaining 10,102 shares had been awarded but not issued as of March 31, 2014; therefore, $11,250 was accrued in common stock payable, representing the fair value of Lucas’s common stock on the grant date. | |||||||||||||||||
For the year ended March 31, 2013, the Company awarded 89,768 shares of its common stock with an aggregate grant date fair value of $160,082, which were valued based on the trading value of Lucas’s common stock on the dates of grant, according to the employment agreements with certain officers and other managerial personnel. The stock compensation expense recognized for the awards of these shares was $101,741 of which $58,341 was accrued in common stock payable. The Company also awarded 93,481 shares of its common stock with an aggregate grant date fair value of $160,787, which were valued based on the trading value of Lucas’s common stock on the dates of grant to certain officers and other managerial personnel as fiscal year 2012 bonuses. The stock compensation expense recognized for the awards was accrued in bonus payable. | |||||||||||||||||
Stock Options | |||||||||||||||||
The following summarizes Lucas’s stock option activity for each of the two years ended March 31, 2014: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Number of | Weighted | Number of | Weighted | ||||||||||||||
Average | Average | ||||||||||||||||
Grant Price | Grant Price | ||||||||||||||||
Stock Options | Stock Options | ||||||||||||||||
Outstanding at Beginning of Period | 819,668 | $ | 1.55 | 456,000 | $ | 2.88 | |||||||||||
Granted | 400,000 | 1.13 | 747,668 | 1.5 | |||||||||||||
Expired | (305,200 | ) | 1.49 | (384,000 | ) | 3.04 | |||||||||||
Exercised | - | - | - | - | |||||||||||||
Outstanding at End of Period | 914,468 | $ | 1.39 | 819,668 | $ | 1.55 | |||||||||||
Lucas granted stock options to purchase shares of common stock during the year ended March 31, 2014 to an officer as employee based compensation. Effective April 1, 2013, the officer was granted stock options to purchase 125,000 shares of common stock with a fair value of $66,635 to be amortized and recognized as compensation expense over the service period. The exercise price for the options equaled the closing price of the Company stock on April 1, 2013. All grants were valued at fair value on the date of grant based on the market value of Lucas’s common stock using the Black Scholes option pricing model with the following weighted average assumptions used; dividend yield of 0.00%; expected volatility of 90.22%; risk-free interest rate of .36% and expected term of five years. On September 30, 2013, the officer resigned, thereby canceling the options to purchase 125,000 shares of common stock, which had not yet vested. | |||||||||||||||||
The Company also granted a director stock options to purchase 50,000 shares of common stock with a fair value of $17,507 to be amortized and recognized as compensation expense over the vesting period in July 2013. The 50,000 options vest at the rate of 1/12 of such options over the period from July 2013 to June 2014. The options have a two year exercise period and the exercise price for the options equaled the closing price of the Company stock on July 2, 2013. All grants were valued at fair value on the date of grant based on the market value of Lucas’s common stock using the Black Scholes option pricing model with the following weighted average assumptions used; dividend yield of 0.00%; expected volatility of 69.83%; risk-free interest rate of .14% and expected term of two years. | |||||||||||||||||
Additionally, during the year ended March 31, 2014, Lucas granted the directors of the Company stock options to purchase an aggregate of 225,000 shares of common stock with a fair value of $45,652 to be amortized and recognized as compensation expense over the vesting period. Of the 225,000 options granted, 200,000 vest at a rate of 1/12 of such options over the period from January 2014 to December 2014 while the remaining 25,000 vest at a rate of 1/6 of such options over the period from July 2014 to December 2014. The options have a three year exercise period and the exercise price for the options equaled the closing price of the Company stock on December 24, 2013 ($0.98 per share). All grants were valued at fair value on the date of grant based on the market value of Lucas’s common stock using the Black Scholes option pricing model with the following weighted average assumptions used; dividend yield of 0.00%; expected volatility of 52.35%; risk-free interest rate of .14% and expected term of three years. | |||||||||||||||||
Lucas granted stock options to purchase shares of common stock during the year ended March 31, 2013 to an officer, directors and several employees as employee based compensation. An officer was granted stock options to purchase 250,000 shares of common stock valued at approximately $243,030, directors were granted stock options to purchase 216,668 shares of common stock valued at approximately $104,629, several employees were granted stock options to purchase 206,000 shares of common stock valued at approximately $198,439 and a consultant was granted stock options to purchase 75,000 shares of common stock valued at approximately $69,265. | |||||||||||||||||
Compensation expense related to 250,000 stock options granted to an officer during the year ended March 31, 2013 was $24,659. Of the 250,000 options, 50,000 vested immediately, 150,000 vest 33% on each of the first three anniversary dates of the grant, and 50,000 vest on the second anniversary of a different grant date, and all of the options have a five year exercise period. The exercise prices for the options equal the closing price of the Company stock on the grant dates. All grants were valued at fair value on the date of grant based on the market value of Lucas’s common stock using the Black Scholes option pricing model with the following weighted average assumptions used; dividend yield of 0.00%; expected volatility of 104.69%; risk-free interest rate of .38% and expected term of two years. | |||||||||||||||||
Compensation expense related to stock options granted to directors during the year ended March 31, 2013 was $32,426. The 216,668 options vested at the rate of 1/12 of such options per month over the period from January 2013 to December 2013 and have a two year exercise period. The exercise prices for the options equal the closing price of the Company stock on the grant dates. All grants were valued at fair value on the date of grant based on the market value of Lucas’s common stock using the Black Scholes option pricing model with the following weighted average assumptions; dividend yield of 0.00%; expected volatility of 90.08%; risk-free interest rate of .26% and expected term of 1.5 years. | |||||||||||||||||
Compensation expense related to stock options granted to several employees during the year ended March 31, 2013 was $24,102. The 206,000 options vest 25% of the grants on each of the first four anniversary dates and have a five year exercise period. The exercise prices for the options equal the closing price of the Company stock on the grant dates. All grants were valued at fair value on the date of grant based on the market value of Lucas’s common stock using the Black Scholes option pricing model with the following weighted average assumptions; dividend yield of 0.00%; expected volatility of 94.72%; risk-free interest rate of .49% and expected term of three years. | |||||||||||||||||
Compensation expense related to stock options granted to a consultant during the year ended March 31, 2013 was $2,309. The 75,000 options vest 25% on each of the first four anniversary dates and have a five year exercise period. The exercise prices for the options equal the closing price of the Company stock on the grant dates. All grants were valued at fair value on the date of grant based on the market value of Lucas’s common stock using the Black Scholes option pricing model with the following weighted average assumptions used for grants; dividend yield of 0.00%; expected volatility of 93.52%; risk-free interest rate of .40% and expected term of three years. | |||||||||||||||||
During the year ended March 31, 2013, Lucas had 384,000 options cancelled (including 200,000 options granted during fiscal 2012) due to the departure of William Sawyer, the previous Chief Executive Officer of the Company, and Andrew Lai, the previous Chief Financial Officer of the Company. According to William Sawyer’s severance package the Company cancelled his options in exchange for $200,000, which resulted in a modification of the stock options and immediate recognition of $339,742 of unamortized compensation expense plus an additional $83,657 for the difference between the fair value of the options on the modification date and the purchase price of $200,000. | |||||||||||||||||
Compensation expense related to stock options during the year ended March 31, 2014 and March 31, 2013 was $270,106 and $575,812, respectively. | |||||||||||||||||
Options outstanding and exercisable at March 31, 2014 and March 31, 2013 had no intrinsic value. The intrinsic value is based upon the difference between the market price of Lucas’s common stock on the date of exercise and the grant price of the stock options. | |||||||||||||||||
At March 31, 2014, unrecognized compensation expense related to non-vested stock options totaled $230,949. This unrecognized expense is expected to be amortized to expense on a straight-line basis over a weighted average period of 2.0 years. | |||||||||||||||||
Options outstanding and exercisable as of March 31, 2014: | |||||||||||||||||
Exercise | Remaining | Options | Options | ||||||||||||||
Price | Life (Yrs) | Outstanding | Exercisable | ||||||||||||||
$1.15 | 0.7 | 216,668 | 216,668 | ||||||||||||||
$2.07 | 6.5 | 72,000 | 72,000 | ||||||||||||||
$1.63 | 3.6 | 100,800 | 25,200 | ||||||||||||||
$1.74 | 3.6 | 150,000 | 100,000 | ||||||||||||||
$1.61 | 3.8 | 50,000 | - | ||||||||||||||
$1.58 | 3.9 | 50,000 | - | ||||||||||||||
$1.28 | 1.3 | 50,000 | 37,500 | ||||||||||||||
$0.98 | 2.7 | 225,000 | 50,000 | ||||||||||||||
Total | 914,468 | 501,368 |
POSTRETIREMENT_BENEFITS
POSTRETIREMENT BENEFITS | 12 Months Ended |
Mar. 31, 2014 | |
Postretirement Benefits | ' |
POSTRETIREMENT BENEFITS | ' |
NOTE 11 – POSTRETIREMENT BENEFITS | |
Lucas maintains a matched defined contribution savings plan for its employees. During the year ended March 31, 2014 and 2013, Lucas's total costs recognized for the savings plan were $31,207 and $34,512, respectively. |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | ||||||||
NOTE 12 – SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||
Net cash paid for interest and income taxes was as follows for the years ended March 31, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Interest | $ | 692,801 | $ | 36,843 | |||||
Income taxes | 15,000 | 74,011 | |||||||
Non-cash investing and financing activities for the years ended March 31, 2014 and 2013 included the following: | |||||||||
2014 | 2013 | ||||||||
Issuance of note payable for the purchase of certain | |||||||||
oil and gas properties | - | 450,000 | |||||||
Conversion of preferred stock to | |||||||||
common stock | - | 5,163,930 | |||||||
Accrued capital expenditures included in | |||||||||
accounts payable and accrued liabilities | 1,577,930 | - | |||||||
Discounts on Notes Payable | 292,464 | ||||||||
Increase (Decrease) in asset retirement obligations | 7,719 | (181,970 | ) | ||||||
Receivable extinguished for oil and gas properties | - | 470,812 | |||||||
Note Payable extinguished for oil and gas properties | - | (23,098,496 | ) |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 13 – SUBSEQUENT EVENTS | |
On May 12, 2014, the Company entered into a Settlement Agreement with Patsy Crockett, As Guardian of the Person and Estate of Edna Elsie Gatlin, an incapacitated person, on a lawsuit regarding a dispute over the validity of a 300 acre lease in Gonzales County, Texas. Per the Settlement Agreement, Lucas acquired a new one year lease on the property with a one year renewal option and paid $800 per acre for the aforementioned lease for a total payment of $235,784. All filed claims from either party were then dismissed with prejudice. | |
On April 15, 2014, the Company agreed to sell an aggregate of 3,333,332 units to certain institutional investors at a purchase price of $0.60 per unit or $2 million in aggregate, with each unit consisting of one share of common stock (the “Shares”) and 0.50 of a warrant to purchase one share of the Company’s common stock at an exercise price of $1.00 per share and a term of five years (the “Warrants”, and collectively with the Shares, the “Units”). On April 21, 2014, the offering closed, and the Company subsequently received an aggregate of $2,000,000 in gross funding and a net of approximately $1,880,000 (after the deduction of approximately $120,000 in associated legal and placement agent fees). In total, the Company sold 3,333,332 shares of common stock and 1,666,666 warrants to purchase shares of common stock. The Company used the funds raised in the offering to pay down expenses related to drilling, lease operating, workover activities and for general corporate purposes, including general and administrative expenses. | |
On April 29, 2014, the Company entered into an Amended Letter Loan Agreement (the “Amended Letter Loan”) and Amended and Restated Promissory Note (the “Amended Note”), each effective March 14, 2014, in connection with the August 13, 2013, Letter Loan Agreement entered into between the Company and Louise H. Rogers (the “Letter Loan”). In connection with the Letter Loan and a Promissory Note entered into in connection therewith, Ms. Rogers loaned the Company $7.5 million, which had a balance of approximately $7.3 million as of March 14, 2014 (the “Loan”). Pursuant to the Amended Letter Loan and Amended Note, we restructured the repayment terms of the original Letter Loan and Promissory Note to defer monthly amortizing principal payments which began on March 13, 2014, during the period from April 13, 2014 through September 13, 2014, during which six month period interest on the Amended Note will accrue at 15% per annum (compared to 12% per annum under the terms of the original Promissory Note). Additionally, beginning on October 13, 2014, the interest rate of the Amended Note will return to 12% per annum and we will be required to pay the monthly amortization payments in accordance with the original repayment schedule (which total approximately $205,000 to $226,000, depending on the due date), as well as additional principal amortization payments of approximately $266,000 every three months (beginning October 13, 2014, and ending on July 13, 2015) until maturity, with approximately $3.87 million due on maturity, which maturity date remains August 13, 2015. Additionally, we agreed to pay all legal expenses of the lender related to the amendments and agreed to (i) pay $25,000 and (ii) issue 75,000 shares of restricted common stock, to Robertson Global Credit, LLC (“Robertson”), the administrator of the Loan, as additional consideration for the modifications. Should we opt to prepay the Amended Note prior to the maturity date, we are required to pay an exit fee equal to the advisory fees of approximately $15,000 per quarter that would have been due, had the note remained outstanding through maturity. The Amended Letter Loan includes customary events of default and positive and negative covenants for facilities of similar nature and size as the Amended Letter Loan. The repayment of the Loan is secured by a security interest in substantially all of the Company’s assets which was evidenced by a Security Agreement and a Mortgage, Deed of Trust, Assignment, Security Agreement, Financing Statement and Fixture Filing, each entered into in August 2013, which were not modified in any way by the Amended Letter Loan and Amended Note. The Company also previously granted Robertson a warrant (evidenced by a Common Stock Purchase Warrant) to purchase up to 279,851 shares of the Company’s common stock at an exercise price of $1.35 per share in connection with the initial Letter Loan closing, which was similarly not modified in any way in connection with the recent amendments. Our year end consolidated balance sheet has been updated to incorporate the reclassifying of our short-term and long-term loan obligations based on the Amended Note, which is effective as of March 14, 2014. | |
The Company shareholders approved the Lucas Energy, Inc. 2014 Stock Incentive Plan (“2014 Incentive Plan”) at the annual shareholder meeting held on February 13, 2014. The 2014 Incentive Plan provides the Company with the ability to offer (i) incentive stock options (to eligible employees only); (ii) nonqualified stock options; (iii) restricted stock; (iv) stock awards; (v) shares in performance of services; or (vi) any combination of the foregoing, to employees, consultants and contractors as provided in the 2014 Incentive Plan. Shares issuable under the 2014 Incentive Plan were registered on Form S-8 registration statement that was filed with the SEC on May 15, 2014. The NYSE MKT approved this listing application for the shares issuable under the 2014 Incentive Plan on May 22, 2014. |
Supplemental_Oil_and_Gas_Discl
Supplemental Oil and Gas Disclosures (Unaudited) | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Supplemental Oil And Gas Disclosures | ' | |||||||||
Supplemental Oil and Gas Disclosures (Unaudited) | ' | |||||||||
Supplemental Oil and Gas Disclosures (Unaudited) | ||||||||||
The following disclosures for the Company are made in accordance with authoritative guidance regarding disclosures about oil and natural gas producing activities. Users of this information should be aware that the process of estimating quantities of "proved," "proved developed," and "proved undeveloped" crude oil, natural gas liquids and natural gas reserves is complex, requiring significant subjective decisions in the evaluation of all available geological, engineering and economic data for each reservoir. The data for a given reservoir may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving production history and continual reassessment of the viability of production under varying economic conditions. Consequently, material revisions (upward or downward) to existing reserve estimates may occur from time to time. Although reasonable effort is made to ensure that reserve estimates reported represent the most accurate assessments possible, the significance of the subjective decisions required and variances in available data for various reservoirs make these estimates generally less precise than other estimates presented in connection with financial statement disclosures. | ||||||||||
Proved reserves represent estimated quantities of crude oil, natural gas liquids and natural gas that geoscience and engineering data can estimate, with reasonable certainty, to be economically producible from a given day forward from known reservoirs under economic conditions, operating methods and government regulation before the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. | ||||||||||
Proved developed reserves are proved reserves expected to be recovered under operating methods being utilized at the time the estimates were made, through wells and equipment in place or if the cost of any required equipment is relatively minor compared to the cost of a new well. | ||||||||||
Proved undeveloped reserves are reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required. Reserves on undrilled acreage are limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances. Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances justify a longer time. Estimates for proved undeveloped reserves are not attributed to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, or by other evidence using reliable technology establishing reasonable certainty. | ||||||||||
PROVED RESERVE SUMMARY | ||||||||||
All of the Company's reserves are located in the United States. The following tables sets forth Lucas’s net proved reserves, including proved developed and proved undeveloped reserves, at March 31st for each of the three years in the period ended March 31, 2014, and the changes in the net proved reserves for each of the three years in the period ended March 31, 2014, as estimated by the independent petroleum consulting firm Forrest A. Garb & Associates, Inc.: | ||||||||||
March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Crude Oil (Bbls) | ||||||||||
Net proved reserves at beginning of year | 5,131,143 | 7,023,520 | 2,768,200 | |||||||
Revisions of previous estimates | (923,465) | -1,980,284 | (313,810) | |||||||
Purchases in place | - | 14,050 | 1,193,746 | |||||||
Extensions, discoveries and other additions | 883,983 | 1,908,362 | 3,456,560 | |||||||
Sales in place | - | -1,750,278 | (26,710) | |||||||
Production | (53,228) | (84,227) | (54,466) | |||||||
Net proved reserves at end of year | 5,038,433 | 5,131,143 | 7,023,520 | |||||||
Natural Gas (Mcf) | ||||||||||
Net proved reserves at beginning of year | 2,642,889 | 10,722,480 | 843,250 | |||||||
Revisions of previous estimates | 124,025 | -8,721,436 | 194,160 | |||||||
Purchases in place | - | - | - | |||||||
Extensions, discoveries and other additions | 548,608 | 1,336,108 | 9,699,630 | |||||||
Sales in place | - | (685,027) | - | |||||||
Production | - | (9,236) | (14,560) | |||||||
Net proved reserves at end of year | 3,315,522 | 2,642,889 | 10,722,480 | |||||||
Oil Equivalents (Boe) | ||||||||||
Net proved reserves at beginning of year | 5,571,625 | 8,810,600 | 2,908,742 | |||||||
Revisions of previous estimates | (902,795) | -3,433,857 | (281,450) | |||||||
Purchases in place | - | 14,050 | 1,193,746 | |||||||
Extensions, discoveries and other additions | 975,418 | 2,131,047 | 5,073,165 | |||||||
Sales in place | - | -1,864,449 | (26,710) | |||||||
Production | (53,228) | (85,766) | (56,893) | |||||||
Net proved reserves at end of year | 5,591,020 | 5,571,625 | 8,810,600 | |||||||
RESERVES | ||||||||||
During the year ended March 31, 2014, there was not a significant adjustment to our reserves as our estimated net proved crude oil and natural gas reserves at March 31, 2014 and 2013 were approximately 5.6 million BOE, respectively, for each year. Although there was not a significant change in total proved reserves, crude oil reserves decreased slightly by approximately 0.1 million BBLs offset by an increase of natural gas reserves by approximately 0.7 BCF (or 0.1 BOE – barrel of equivalent). | ||||||||||
During the year ended March 31, 2013, Lucas adjusted its reserves approximately 3.2 million BOE of proved reserves primarily due to: the settlement and termination of the Nordic transaction that occurred in October 2011, adjustments on our undeveloped acreage in the Eagle Ford and Austin Chalk formations, and adjustments to our oil to gas ratios. The Nordic transaction settled on March 29, 2013 (effective March 31, 2013) and terminated an outstanding $22 million senior secured promissory note due to Nordic for certain assets of the Company, and resulted in the return to Nordic of ownership of previously acquired assets. Some of these assets were included in the 2012 reserve report, therefore, both the Proved Developed and the Proved Undeveloped reserves were negatively affected (a reduction of 1.6 million BOE) for the year ending March 31, 2013. | ||||||||||
During the year ended March 31, 2012, Lucas added 1.6 million BOE of proved reserves primarily in the Eagle Ford and Austin Chalk formations. Approximately 93% of the reserve additions were crude oil. Sales in place of 0.3 million BOE were primarily related to farmouts of the Eagle Ford formation. | ||||||||||
The following table sets forth Lucas’s proved developed, proved undeveloped and probable reserves at March 31, 2014, 2013, and 2012: | ||||||||||
At March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Proved Developed Reserves | ||||||||||
Crude Oil (Bbls) | 186,610 | 251,243 | 402,360 | |||||||
Natural Gas (Mcf) | - | - | - | |||||||
Oil Equivalents (Boe) | 186,610 | 251,243 | 402,360 | |||||||
Proved Undeveloped Reserves | ||||||||||
Crude Oil (Bbls) | 4,852,075 | 4,879,900 | 6,621,156 | |||||||
Natural Gas (Mcf) | 3,314,009 | 2,642,894 | 10,722,480 | |||||||
Oil Equivalents (Boe) | 5,404,410 | 5,320,382 | 8,408,236 | |||||||
Proved Reserves | ||||||||||
Crude Oil (Bbls) | 5,038,685 | 5,131,143 | 7,023,516 | |||||||
Natural Gas (Mcf) | 3,314,009 | 2,642,894 | 10,722,480 | |||||||
Oil Equivalents (Boe) | 5,591,020 | 5,571,625 | 8,810,596 | |||||||
Probable Undeveloped Reserves | ||||||||||
Crude Oil (Bbls) | 3,595,826 | 1,438,059 | - | |||||||
Natural Gas (Mcf) | 2,203,891 | 1,378,143 | - | |||||||
Oil Equivalents (Boe) | 3,963,141 | 1,667,750 | - | |||||||
*The Company engaged Forrest Garb & Associates, an independent reserve engineering firm, to provide a reserve report on the Company’s properties. The reserve report has been included as Exhibit 99.1 to the Form 10-K which these financial statements are filed with. | ||||||||||
Proved Undeveloped Reserves | ||||||||||
For the year ended March 31, 2014, total proved undeveloped reserves (PUDs) increased by 0.1 million BOE to 5.4 million BOE. The proved undeveloped reserve increase was primarily due to: | ||||||||||
· | transfer of 0.7 million BOE of PUDs to probable undeveloped reserves as there has been no development within five years since initial disclosure; | |||||||||
· | reduction of 0.2 million BOE of PUDS due to expiring leases; and | |||||||||
· | new PUD reserve additions of approximately 1.0 million BOE primarily in the Eagle Ford area due to increased development well densities in offset well activity during the previous year. | |||||||||
We had no proved developed non-producing BOE and we transferred an immaterial amount of proved undeveloped reserves to proved developed reserves during the fiscal year ended March 31, 2014. In addition, our plan is to convert our remaining PUD balance as of March 31, 2014 to proved developed reserves within five years or prior to the end of fiscal year 2019. | ||||||||||
Our reserves concentrate mainly in the Eagle Ford, Austin Chalk, Buda and Glen Rose formations. At March 31, 2014, Lucas’s proved reserves for the Eagle Ford and Austin Chalk formations were 5.2 million BOE, or 93% of the total proved developed and undeveloped reserves of 5.6 million BOE. | ||||||||||
The following table sets forth Lucas’s net reserves in BOE by reserve category and by formation at March 31, 2014 and 2013: | ||||||||||
Proved | ||||||||||
Developed | ||||||||||
Proved Developed | Non-Producing | Proved Undeveloped | Total Proved | |||||||
Eagle Ford | ||||||||||
At March 31, 2014 | 24,844 | - | 4,365,495 | 4,390,339 | ||||||
At March 31, 2013 | 25,867 | - | 3,504,803 | 3,530,670 | ||||||
Austin Chalk | ||||||||||
At March 31, 2014 | 159,267 | - | 661,886 | 821,153 | ||||||
At March 31, 2013 | 215,108 | - | 1,500,134 | 1,715,242 | ||||||
Buda & Glen Rose | ||||||||||
At March 31, 2014 | 1,924 | - | 269,451 | 271,375 | ||||||
At March 31, 2013 | 541 | - | 315,449 | 315,990 | ||||||
Other | ||||||||||
At March 31, 2014 | 575 | - | 107,578 | 108,153 | ||||||
At March 31, 2013 | 9,723 | - | - | 9,723 | ||||||
Total | ||||||||||
At March 31, 2014 | 186,610 | - | 5,404,410 | 5,591,020 | ||||||
At March 31, 2013 | 251,239 | - | 5,320,386 | 5,571,625 | ||||||
Capitalized Costs Relating to Oil and Natural Gas Producing Activities. The following table sets forth the capitalized costs relating to Lucas’s crude oil and natural gas producing activities at March 31, 2014 and 2013: | ||||||||||
At March 31, | ||||||||||
2014 | 2013 | |||||||||
Proved leasehold costs | $ | 11,354,136 | $ | 10,002,828 | ||||||
Costs of wells and development | 37,447,018 | 33,961,775 | ||||||||
Capitalized asset retirement costs | 752,915 | 745,197 | ||||||||
Total cost of oil and gas properties | 49,554,069 | 44,709,800 | ||||||||
Accumulated depreciation and depletion | (10,991,064 | ) | (9,077,997 | ) | ||||||
Net Capitalized Costs | $ | 38,563,005 | $ | 35,631,803 | ||||||
Costs Incurred in Oil and Natural Gas Property Acquisition, Exploration and Development Activities. The following table sets forth the costs incurred in Lucas’s oil and natural gas property acquisition, exploration and development activities for the years ended March 31, 2014 and 2013: | ||||||||||
2014 | 2013 | |||||||||
Acquisition of properties | ||||||||||
Proved | $ | 69,622 | $ | 116,700 | ||||||
Unproved | - | - | ||||||||
Exploration costs | - | - | ||||||||
Development costs | 4,923,864 | 4,782,327 | ||||||||
Total | $ | 4,993,486 | $ | 4,899,027 | ||||||
Results of Operations for Oil and Natural Gas Producing Activities. The following table sets forth the results of operations for oil and natural gas producing activities for the years ended March 31, 2014 and 2013: | ||||||||||
2014 | 2013 | |||||||||
Crude oil and natural gas revenues | $ | 5,219,752 | $ | 8,247,084 | ||||||
Production costs | (2,611,401 | ) | (4,192,223 | ) | ||||||
Depreciation and depletion | (2,006,899 | ) | (3,452,036 | ) | ||||||
Results of operations for producing activities, | ||||||||||
excluding corporate overhead and interest costs | $ | 601,452 | $ | 602,825 | ||||||
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Natural Gas Reserves. The following information has been developed utilizing procedures prescribed by ASC Topic 932 and based on crude oil and natural gas reserves and production volumes estimated by the independent petroleum consultants of Lucas. The estimates were based on a 12-month average of first-of-the-month commodity prices for the years ended March 31, 2014 and 2013. The following information may be useful for certain comparison purposes, but should not be solely relied upon in evaluating Lucas or its performance. Further, information contained in the following table should not be considered as representative of realistic assessments of future cash flows, nor should the Standardized Measure of Discounted Future Net Cash Flows be viewed as representative of the current value of Lucas. | ||||||||||
The future cash flows presented below are based on cost rates and statutory income tax rates in existence as of the date of the projections and average prices over the preceding twelve months. It is expected that material revisions to some estimates of crude oil and natural gas reserves may occur in the future, development and production of the reserves may occur in periods other than those assumed, and actual prices realized and costs incurred may vary significantly from those used. | ||||||||||
Management does not rely upon the following information in making investment and operating decisions. Such decisions are based upon a wide range of factors, including estimates of probable and possible as well as proved reserves, and varying price and cost assumptions considered more representative of a range of possible economic conditions that may be anticipated. | ||||||||||
The following table sets forth the standardized measure of discounted future net cash flows from projected production of Lucas’s oil and natural gas reserves as of March 31, 2014 and 2013: | ||||||||||
At March 31, | ||||||||||
2014 | 2013 | |||||||||
Future cash inflows | $ | 496,052,800 | $ | 546,811,370 | ||||||
Future production costs | (71,213,209 | ) | (80,809,010 | ) | ||||||
Future development costs | (164,412,073 | ) | (177,353,400 | ) | ||||||
Future income taxes | (66,164,897 | ) | (75,034,354 | ) | ||||||
Future net cash flows | 194,262,621 | 213,614,606 | ||||||||
Discount to present value at 10% annual rate | (110,745,133 | ) | (115,462,563 | ) | ||||||
Standardized measure of discounted future net | ||||||||||
cash flows relating to proved oil and gas | ||||||||||
reserves | $ | 83,517,488 | $ | 98,152,043 | ||||||
Changes in Standardized Measure of Discounted Future Net Cash Flows. The following table sets forth the changes in the standardized measure of discounted future net cash flows at March 31, for each of the two years in the period ended March 31, 2014: | ||||||||||
2014 | 2013 | |||||||||
Standardized measure, beginning of year | $ | 98,152,043 | $ | 75,384,856 | ||||||
Crude oil and natural gas sales, net of production costs | (2,608,351 | ) | (4,054,861 | ) | ||||||
Net changes in prices and production costs | (23,873,872 | ) | 81,109,584 | |||||||
Extensions, discoveries, additions and improved recovery | 19,410,988 | 50,696,971 | ||||||||
Changes in estimated future development costs | 9,945,359 | 72,652,500 | ||||||||
Development costs incurred | 4,117,630 | 15,848,464 | ||||||||
Revisions of previous quantity estimates | (36,912,080 | ) | (180,722,311 | ) | ||||||
Accretion of discount | 13,262,897 | 10,434,472 | ||||||||
Net change in income taxes | 6,022,118 | (5,507,907 | ) | |||||||
Purchases of reserves in place | - | 519,924 | ||||||||
Sales of reserves in place | - | (23,115,750 | ) | |||||||
Change in timing of estimated future production | (3,999,244 | ) | 4,906,101 | |||||||
Standardized measure, end of year | $ | 83,517,488 | $ | 98,152,043 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements of Lucas Energy include the accounts of its wholly-owned subsidiary, LEI Alcalde Holdings, LLC. On August 16, 2012, Lucas Energy created the wholly-owned subsidiary LEI Alcalde Holdings, LLC to distinguish our investment in a Gonzales county building bought on November 21, 2011. All intercompany accounts and transactions have been eliminated. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Lucas’s consolidated financial statements are based on a number of significant estimates, including oil and natural gas reserve quantities which are the basis for the calculation of depreciation, depletion and impairment of oil and natural gas properties, and timing and costs associated with its asset retirement obligations, as well as those related to the fair value of stock options, stock warrants and stock issued for services. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash in banks and financial instruments which mature within three months of the date of purchase. The Company maintains cash and cash equivalents in bank deposit accounts, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company had no cash equivalents at March 31, 2014 or 2013. | |
Restricted Cash | ' |
Restricted Cash | |
As of March 31, 2014 and 2013, the Company had no restricted cash. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts | |
Accounts receivable consist of uncollaterized oil and natural gas revenues due under normal trade terms. Management reviews receivables periodically and reduces the carrying amount by a valuation allowance that reflects management’s best estimate of the amount that may not be collectible. There was no allowance recorded as of March 31, 2014 or 2013. | |
Concentration of Credit Risk | ' |
Concentration of Credit Risk | |
Accounts receivable are recorded at invoiced amount and generally do not bear interest. The Company’s accounts receivables are concentrated among entities engaged in the energy industry within the U.S. and include operating revenue from our producing wells. The Company periodically assesses the financial condition of these entities and institutions and considers any possible credit risk to be minimal. | |
We sell a significant portion of our oil and gas production to a relatively small number of customers. For the year ended March 31, 2014, approximately 86% of our consolidated product revenues were attributable to three customers: Sunoco Refining and Marketing, Inc.; EDF Trading North America LLC.; and Enterprise Crude Oil LLC. The remaining 14% was sold to Shell Trading (US) Company, our current and only customer as of March 31, 2014. We are not dependent upon any one purchaser and have alternative purchasers readily available at competitive market prices if there is disruption in services or other events that cause us to search for other ways to sell our production. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
As of March 31, 2014 and 2013, the fair value of Lucas’s cash, accounts receivable, accounts payable, note receivable and note payable approximate carrying values because of the short-term maturity of these instruments. | |
The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with property and equipment. Significant Level 3 inputs used in the calculation of asset retirement obligations include plugging costs and reserve lives. A reconciliation of the Company's asset retirement obligations is presented in “Note 5 – Asset Retirement Obligations”. | |
Oil and Natural Gas Properties, Full Cost Method | ' |
Oil and Natural Gas Properties, Full Cost Method | |
Lucas uses the full cost method of accounting for oil and natural gas producing activities. Costs to acquire mineral interests in oil and natural gas properties, to drill and equip exploratory wells used to find proved reserves, and to drill and equip development wells including directly related overhead costs and related asset retirement costs are capitalized. | |
Under this method, all costs, including internal costs directly related to acquisition, exploration and development activities are capitalized as oil and natural gas property costs on a country-by-country basis. Costs not subject to amortization consist of unproved properties that are evaluated on a property-by-property basis. Amortization of these unproved property costs begins when the properties become proved or their values become impaired. Lucas assesses overall values of unproved properties, if any, on at least an annual basis or when there has been an indication that impairment in value may have occurred. Impairment of unproved properties is assessed based on management's intention with regard to future development of individually significant properties and the ability of Lucas to obtain funds to finance their programs. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is added to the capitalized costs to be amortized. | |
Sales of oil and natural gas properties are accounted for as adjustments to the net full cost pool with no gain or loss recognized, unless the adjustment would significantly alter the relationship between capitalized costs and proved reserves. If it is determined that the relationship is significantly altered, the corresponding gain or loss will be recognized in the consolidated statements of operations. | |
Costs of oil and natural gas properties are amortized using the units of production method. Amortization expense calculated per equivalent physical unit of production amounted to $35.94 and $40.51 per barrel of oil equivalent for the years ended March 31, 2014 and 2013, respectively. | |
Ceiling Test | ' |
Ceiling Test | |
In applying the full cost method, Lucas performs an impairment test (ceiling test) at each reporting date, whereby the carrying value of property and equipment is compared to the “estimated present value” of its proved reserves discounted at a 10-percent interest rate of future net revenues, based on current economic and operating conditions at the end of the period, plus the cost of properties not being amortized, plus the lower of cost or fair market value of unproved properties included in costs being amortized, less the income tax effects related to book and tax basis differences of the properties. If capitalized costs exceed this limit, the excess is charged as an impairment expense. During the years ended March 31, 2014 and 2013, no impairment of oil and natural gas properties was recorded. | |
Other Property and Equipment | ' |
Other Property and Equipment | |
Other property and equipment are stated at cost and consist primarily of a field office, furniture and computer equipment. Depreciation is computed on a straight-line basis over the estimated useful lives. | |
Income Taxes | ' |
Income Taxes | |
Deferred income taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry-forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. 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 accrued tax liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |
Lucas has evaluated and concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements as of March 31, 2014 and 2013. The Company’s policy is to classify assessments, if any, for tax related interest expense and penalties as interest expense. | |
Earnings per Share of Common Stock | ' |
Earnings per Share of Common Stock | |
Basic and diluted net income per share calculations are calculated on the basis of the weighted average number of shares of the Company's common stock (Common Shares) outstanding during the year. Purchases of treasury stock reduce the outstanding shares commencing on the date that the stock is purchased. Common stock equivalents are excluded from the calculation when a loss is incurred as their effect would be anti-dilutive. | |
Stock options to purchase 914,468 Common Shares at an average exercise price of $1.39 per share and warrants to purchase 4,298,487 Common Shares at an average exercise price of $2.53 per share were outstanding at March 31, 2014. | |
Stock options to purchase 819,668 Common Shares at an average exercise price of $1.55 per share and warrants to purchase 3,893,636 Common Shares at an average exercise price of $2.65 per share were outstanding at March 31, 2013. | |
At the year ended March 31, 2014, Lucas had outstanding 2,000 shares of Series A Convertible Preferred Stock. Each share of the Series A Convertible Preferred Stock shares is convertible into an aggregate of 1,000 shares of the Company’s common stock and have no liquidation preference and no maturity date. | |
Using the treasury stock method, had the Company had net income, no common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share calculation for the year ended March 31, 2014. | |
Share-Based Compensation | ' |
Share-Based Compensation | |
Lucas measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award over the vesting period. | |
Revenue and Cost Recognition | ' |
Revenue and Cost Recognition | |
Lucas recognizes oil and natural gas revenue under the sales method of accounting for its interests in producing wells as crude oil and natural gas is produced and sold from those wells. Costs associated with production are expensed in the period incurred. Crude oil produced but remaining as inventory in field tanks is not recorded as revenue in Lucas’s consolidated financial statements because it is not material. |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property And Equipment Tables | ' | ||||||||
Schedule of net capitalized costs being amortized | ' | ||||||||
All of Lucas’s oil and natural gas properties are located in the United States. Costs being amortized at March 31, 2014 and 2013 are as follows: | |||||||||
At March 31, | |||||||||
2014 | 2013 | ||||||||
Proved leasehold costs | $ | 11,354,136 | $ | 10,002,828 | |||||
Costs of wells and development | 37,447,018 | 33,961,775 | |||||||
Capitalized asset retirement costs | 752,915 | 745,197 | |||||||
Total oil & natural gas properties | 49,554,069 | 44,709,800 | |||||||
Accumulated depreciation and depletion | (10,991,064 | ) | (9,077,997 | ) | |||||
Net Capitalized Costs | $ | 38,563,005 | $ | 35,631,803 |
ASSET_RETIREMENT_OBLIGATIONS_T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Asset Retirement Obligations Tables | ' | ||||||||
Schedule of reconciliation of long-term legal obligations | ' | ||||||||
The following table presents the reconciliation of the beginning and ending aggregate carrying amounts of long-term legal obligations associated with the future retirement of oil and natural gas properties for the years ended March 31, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Carrying amount at beginning of year | $ | 925,494 | $ | 1,075,152 | |||||
Liabilities incurred | 7,719 | 228,918 | |||||||
Liabilities settled | (52,071 | ) | (27,337 | ) | |||||
Accretion | 97,288 | 59,649 | |||||||
Revisions | - | 39,162 | |||||||
Reduction for sale of oil and natural gas property | - | (450,050 | ) | ||||||
Carrying amount at end of year | $ | 978,430 | $ | 925,494 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments And Contingencies Tables | ' | ||||
Schedule of future minimum annual rental commitments | ' | ||||
Future minimum annual rental commitments under non-cancelable leases at March 31, 2014 were as follows: | |||||
31-Mar-14 | |||||
2015 | $ | 86,277 | |||
2016 | 41,544 | ||||
$ | 127,821 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Taxes Tables | ' | ||||||||
Schedule of provision for income taxes | ' | ||||||||
The Company recorded a provision for income taxes of $0 and $39,161 for the years ended March 31, 2014 and March 31, 2013, respectively. | |||||||||
2014 | 2013 | ||||||||
Current taxes: | |||||||||
Federal | $ | - | $ | 8,161 | |||||
State | - | 31,000 | |||||||
- | 39,161 | ||||||||
Deferred taxes: | |||||||||
Federal | - | - | |||||||
State | - | - | |||||||
- | - | ||||||||
Total | $ | - | $ | 39,161 | |||||
Schedule of reconciliation between actual tax expense (benefit) and income taxes | ' | ||||||||
The following is a reconciliation between actual tax expense and income taxes computed by applying the U.S. federal income tax rate to income from continuing operations before income taxes for the two years ended March 31, 2014: | |||||||||
2014 | 2013 | ||||||||
Computed at expected tax rates (34%) | $ | (1,593,788 | ) | $ | (2,297,148 | ) | |||
Meals and entertainment | 4,431 | 10,938 | |||||||
State Income tax net of FIT benefit | - | 20,460 | |||||||
Return to accrual true-up | 11,329 | (3,000 | ) | ||||||
Change in valuation allowance | 1,578,028 | 2,307,911 | |||||||
Total | $ | - | $ | 39,161 | |||||
Schedule of deferred tax assets and deferred liabilities | ' | ||||||||
Tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred liabilities are presented below: | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Net operating tax loss carryforwards | $ | 11,236,160 | $ | 10,049,197 | |||||
Gain on sale of oil and gas properties | 6,172,745 | 6,303,421 | |||||||
Depletion | 1,628,359 | 1,562,341 | |||||||
Unrealized net loss on available-for-sale securities | 123,954 | 123,954 | |||||||
Share-based compensation | 291,439 | 201,729 | |||||||
Accrued compensation | 263,426 | 208,313 | |||||||
Tax Credit | - | 8,161 | |||||||
Total deferred tax assets | $ | 19,716,083 | $ | 18,457,116 | |||||
Deferred tax liabilities: | |||||||||
Intangible drilling costs | (8,117,962 | ) | (8,661,765 | ) | |||||
Depreciation | (2,307,572 | ) | (2,020,555 | ) | |||||
Other | 60,209 | (2,066 | ) | ||||||
Total deferred tax liabilities | (10,365,325 | ) | (10,684,386 | ) | |||||
Subtotal | 9,350,758 | 7,772,730 | |||||||
Less: Valuation allowance | (9,350,758 | ) | (7,772,730 | ) | |||||
Total | $ | - | $ | - |
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Stockholders Equity Tables | ' | ||||||||||||||||||||
Summary of common stock activity | ' | ||||||||||||||||||||
The following summarizes Lucas’s common stock activity for each of the two years ended March 31, 2014: | |||||||||||||||||||||
Common Shares | |||||||||||||||||||||
Issued | |||||||||||||||||||||
Amount (a) | Per Share | Shares | Treasury | Outstanding | |||||||||||||||||
Balance at March 31, 2012 | 19,581,657 | (36,900 | ) | 19,544,757 | |||||||||||||||||
Unit Offering | $ | 6,826,740 | $ | 1.82 | 3,750,000 | - | 3,750,000 | ||||||||||||||
Warrants Exercised | 412,501 | 1 | 412,501 | - | 412,501 | ||||||||||||||||
Share-Based Compensation | 320,869 | 1.75 | 183,249 | - | 183,249 | ||||||||||||||||
Conversion of Preferred | - | - | 2,824,000 | - | 2,824,000 | ||||||||||||||||
Balance at March 31, 2013 | 26,751,407 | (36,900 | ) | 26,714,507 | |||||||||||||||||
Private Unit Offering - July | $ | 250,000 | $ | 1.35 | 185,185 | - | 185,185 | ||||||||||||||
Registered Direct Offering - September | 3,209,168 | 1.09 | 2,950,000 | - | 2,950,00 | ||||||||||||||||
Share-Based Compensation | 163,118 | 1.24 | 131,489 | - | 131,489 | ||||||||||||||||
Balance at March 31, 2014 | 30,018,081 | (36,900 | ) | 29,981,181 | |||||||||||||||||
(a) | Net proceeds or fair market value on grant date, as applicable. | ||||||||||||||||||||
Schedule of preferred shares activity | ' | ||||||||||||||||||||
The following summarizes Lucas’s preferred shares activity for each of the two years ended March 31, 2014: | |||||||||||||||||||||
Preferred Shares | |||||||||||||||||||||
Issued | |||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||
Balance at March 31, 2012 | 4,824 | $ | 8,262,354 | ||||||||||||||||||
Conversion to Common Stock: | |||||||||||||||||||||
Series B convertible | (2,824 | ) | (5,166,754 | ) | |||||||||||||||||
Balance at March 31, 2013 | 2,000 | $ | 3,095,600 | ||||||||||||||||||
No Conversions or Issuances | - | - | |||||||||||||||||||
Balance at March 31, 2014 | 2,000 | $ | 3,095,600 | ||||||||||||||||||
Schedule of warrant activity | ' | ||||||||||||||||||||
The following summarizes Lucas’s warrant activity for each of the two years ended March 31, 2014: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||
Average | Average | ||||||||||||||||||||
Number of | Exercise | Number of | Exercise | ||||||||||||||||||
Warrants | Price | Warrants | Price | ||||||||||||||||||
Outstanding at Beginning of Year | 3,893,636 | $ | 2.65 | 2,966,136 | $ | 2.67 | |||||||||||||||
Issued | 604,851 | 1.43 | 1,345,001 | 2.3 | |||||||||||||||||
Expired | (200,000 | ) | 1 | (5,000 | ) | 1 | |||||||||||||||
Exercised | - | - | (412,501 | ) | 1 | ||||||||||||||||
Outstanding at End of Year | 4,298,487 | $ | 2.53 | 3,893,636 | $ | 2.65 |
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Share-Based Compensation Tables | ' | ||||||||||||||||
Schedule of stock option activity | ' | ||||||||||||||||
The following summarizes Lucas’s stock option activity for each of the two years ended March 31, 2014: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Number of | Weighted | Number of | Weighted | ||||||||||||||
Average | Average | ||||||||||||||||
Grant Price | Grant Price | ||||||||||||||||
Stock Options | Stock Options | ||||||||||||||||
Outstanding at Beginning of Period | 819,668 | $ | 1.55 | 456,000 | $ | 2.88 | |||||||||||
Granted | 400,000 | 1.13 | 747,668 | 1.5 | |||||||||||||
Expired | (305,200 | ) | 1.49 | (384,000 | ) | 3.04 | |||||||||||
Exercised | - | - | - | - | |||||||||||||
Outstanding at End of Period | 914,468 | $ | 1.39 | 819,668 | $ | 1.55 | |||||||||||
Schedule of options outstanding and exercisable activity | ' | ||||||||||||||||
Options outstanding and exercisable as of March 31, 2014: | |||||||||||||||||
Exercise | Remaining | Options | Options | ||||||||||||||
Price | Life (Yrs) | Outstanding | Exercisable | ||||||||||||||
$1.15 | 0.7 | 216,668 | 216,668 | ||||||||||||||
$2.07 | 6.5 | 72,000 | 72,000 | ||||||||||||||
$1.63 | 3.6 | 100,800 | 25,200 | ||||||||||||||
$1.74 | 3.6 | 150,000 | 100,000 | ||||||||||||||
$1.61 | 3.8 | 50,000 | - | ||||||||||||||
$1.58 | 3.9 | 50,000 | - | ||||||||||||||
$1.28 | 1.3 | 50,000 | 37,500 | ||||||||||||||
$0.98 | 2.7 | 225,000 | 50,000 | ||||||||||||||
Total | 914,468 | 501,368 |
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Supplemental Cash Flow Information Tables | ' | ||||||||
Schedule of supplemental cash flow information | ' | ||||||||
Net cash paid for interest and income taxes was as follows for the years ended March 31, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Interest | $ | 692,801 | $ | 36,843 | |||||
Income taxes | 15,000 | 74,011 | |||||||
Non-cash investing and financing activities for the years ended March 31, 2014 and 2013 included the following: | |||||||||
2014 | 2013 | ||||||||
Issuance of note payable for the purchase of certain | |||||||||
oil and gas properties | - | 450,000 | |||||||
Conversion of preferred stock to | |||||||||
common stock | - | 5,163,930 | |||||||
Accrued capital expenditures included in | |||||||||
accounts payable and accrued liabilities | 1,577,930 | - | |||||||
Discounts on Notes Payable | 292,464 | ||||||||
Increase (Decrease) in asset retirement obligations | 7,719 | (181,970 | ) | ||||||
Receivable extinguished for oil and gas properties | - | 470,812 | |||||||
Note Payable extinguished for oil and gas properties | - | (23,098,496 | ) |
Supplemental_Oil_and_Gas_Discl1
Supplemental Oil and Gas Disclosures (Tables) | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Supplemental Oil And Gas Disclosures Tables | ' | |||||||||
Schedule of proved developed, proved undeveloped and probable undeveloped reserves | ' | |||||||||
All of the Company's reserves are located in the United States. The following tables sets forth Lucas’s net proved reserves, including proved developed and proved undeveloped reserves, at March 31st for each of the three years in the period ended March 31, 2014, and the changes in the net proved reserves for each of the three years in the period ended March 31, 2014, as estimated by the independent petroleum consulting firm Forrest A. Garb & Associates, Inc.: | ||||||||||
March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Crude Oil (Bbls) | ||||||||||
Net proved reserves at beginning of year | 5,131,143 | 7,023,520 | 2,768,200 | |||||||
Revisions of previous estimates | (923,465) | -1,980,284 | (313,810) | |||||||
Purchases in place | - | 14,050 | 1,193,746 | |||||||
Extensions, discoveries and other additions | 883,983 | 1,908,362 | 3,456,560 | |||||||
Sales in place | - | -1,750,278 | (26,710) | |||||||
Production | (53,228) | (84,227) | (54,466) | |||||||
Net proved reserves at end of year | 5,038,433 | 5,131,143 | 7,023,520 | |||||||
Natural Gas (Mcf) | ||||||||||
Net proved reserves at beginning of year | 2,642,889 | 10,722,480 | 843,250 | |||||||
Revisions of previous estimates | 124,025 | -8,721,436 | 194,160 | |||||||
Purchases in place | - | - | - | |||||||
Extensions, discoveries and other additions | 548,608 | 1,336,108 | 9,699,630 | |||||||
Sales in place | - | (685,027) | - | |||||||
Production | - | (9,236) | (14,560) | |||||||
Net proved reserves at end of year | 3,315,522 | 2,642,889 | 10,722,480 | |||||||
Oil Equivalents (Boe) | ||||||||||
Net proved reserves at beginning of year | 5,571,625 | 8,810,600 | 2,908,742 | |||||||
Revisions of previous estimates | (902,795) | -3,433,857 | (281,450) | |||||||
Purchases in place | - | 14,050 | 1,193,746 | |||||||
Extensions, discoveries and other additions | 975,418 | 2,131,047 | 5,073,165 | |||||||
Sales in place | - | -1,864,449 | (26,710) | |||||||
Production | (53,228) | (85,766) | (56,893) | |||||||
Net proved reserves at end of year | 5,591,020 | 5,571,625 | 8,810,600 | |||||||
The following table sets forth Lucas’s proved developed, proved undeveloped and probable reserves at March 31, 2014, 2013, and 2012: | ||||||||||
At March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Proved Developed Reserves | ||||||||||
Crude Oil (Bbls) | 186,610 | 251,243 | 402,360 | |||||||
Natural Gas (Mcf) | - | - | - | |||||||
Oil Equivalents (Boe) | 186,610 | 251,243 | 402,360 | |||||||
Proved Undeveloped Reserves | ||||||||||
Crude Oil (Bbls) | 4,852,075 | 4,879,900 | 6,621,156 | |||||||
Natural Gas (Mcf) | 3,314,009 | 2,642,894 | 10,722,480 | |||||||
Oil Equivalents (Boe) | 5,404,410 | 5,320,382 | 8,408,236 | |||||||
Proved Reserves | ||||||||||
Crude Oil (Bbls) | 5,038,685 | 5,131,143 | 7,023,516 | |||||||
Natural Gas (Mcf) | 3,314,009 | 2,642,894 | 10,722,480 | |||||||
Oil Equivalents (Boe) | 5,591,020 | 5,571,625 | 8,810,596 | |||||||
Probable Undeveloped Reserves | ||||||||||
Crude Oil (Bbls) | 3,595,826 | 1,438,059 | - | |||||||
Natural Gas (Mcf) | 2,203,891 | 1,378,143 | - | |||||||
Oil Equivalents (Boe) | 3,963,141 | 1,667,750 | - | |||||||
*The Company engaged Forrest Garb & Associates, an independent reserve engineering firm, to provide a reserve report on the Company’s properties. The reserve report has been included as Exhibit 99.1 to the Form 10-K which these financial statements are filed with. | ||||||||||
The following table sets forth Lucas’s net reserves in BOE by reserve category and by formation at March 31, 2014 and 2013: | ||||||||||
Proved | ||||||||||
Developed | ||||||||||
Proved Developed | Non-Producing | Proved Undeveloped | Total Proved | |||||||
Eagle Ford | ||||||||||
At March 31, 2014 | 24,844 | - | 4,365,495 | 4,390,339 | ||||||
At March 31, 2013 | 25,867 | - | 3,504,803 | 3,530,670 | ||||||
Austin Chalk | ||||||||||
At March 31, 2014 | 159,267 | - | 661,886 | 821,153 | ||||||
At March 31, 2013 | 215,108 | - | 1,500,134 | 1,715,242 | ||||||
Buda & Glen Rose | ||||||||||
At March 31, 2014 | 1,924 | - | 269,451 | 271,375 | ||||||
At March 31, 2013 | 541 | - | 315,449 | 315,990 | ||||||
Other | ||||||||||
At March 31, 2014 | 575 | - | 107,578 | 108,153 | ||||||
At March 31, 2013 | 9,723 | - | - | 9,723 | ||||||
Total | ||||||||||
At March 31, 2014 | 186,610 | - | 5,404,410 | 5,591,020 | ||||||
At March 31, 2013 | 251,239 | - | 5,320,386 | 5,571,625 | ||||||
Schedule of net capitalized costs being amortized | ' | |||||||||
All of Lucas’s oil and natural gas properties are located in the United States. Costs being amortized at March 31, 2014 and 2013 are as follows: | ||||||||||
At March 31, | ||||||||||
2014 | 2013 | |||||||||
Proved leasehold costs | $ | 11,354,136 | $ | 10,002,828 | ||||||
Costs of wells and development | 37,447,018 | 33,961,775 | ||||||||
Capitalized asset retirement costs | 752,915 | 745,197 | ||||||||
Total oil & natural gas properties | 49,554,069 | 44,709,800 | ||||||||
Accumulated depreciation and depletion | (10,991,064 | ) | (9,077,997 | ) | ||||||
Net Capitalized Costs | $ | 38,563,005 | $ | 35,631,803 | ||||||
Schedule of costs incurred in oil and natural gas property acquisition, exploration and development activities | ' | |||||||||
Costs Incurred in Oil and Natural Gas Property Acquisition, Exploration and Development Activities. The following table sets forth the costs incurred in Lucas’s oil and natural gas property acquisition, exploration and development activities for the years ended March 31, 2014 and 2013: | ||||||||||
2014 | 2013 | |||||||||
Acquisition of properties | ||||||||||
Proved | $ | 69,622 | $ | 116,700 | ||||||
Unproved | - | - | ||||||||
Exploration costs | - | - | ||||||||
Development costs | 4,923,864 | 4,782,327 | ||||||||
Total | $ | 4,993,486 | $ | 4,899,027 | ||||||
Schedule of results of operations for oil and natural gas producing activities | ' | |||||||||
Results of Operations for Oil and Natural Gas Producing Activities. The following table sets forth the results of operations for oil and natural gas producing activities for the years ended March 31, 2014 and 2013: | ||||||||||
2014 | 2013 | |||||||||
Crude oil and natural gas revenues | $ | 5,219,752 | $ | 8,247,084 | ||||||
Production costs | (2,611,401 | ) | (4,192,223 | ) | ||||||
Depreciation and depletion | (2,006,899 | ) | (3,452,036 | ) | ||||||
Results of operations for producing activities, | ||||||||||
excluding corporate overhead and interest costs | $ | 601,452 | $ | 602,825 | ||||||
Schedule of standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves | ' | |||||||||
The following table sets forth the standardized measure of discounted future net cash flows from projected production of Lucas’s oil and natural gas reserves as of March 31, 2014 and 2013: | ||||||||||
At March 31, | ||||||||||
2014 | 2013 | |||||||||
Future cash inflows | $ | 496,052,800 | $ | 546,811,370 | ||||||
Future production costs | (71,213,209 | ) | (80,809,010 | ) | ||||||
Future development costs | (164,412,073 | ) | (177,353,400 | ) | ||||||
Future income taxes | (66,164,897 | ) | (75,034,354 | ) | ||||||
Future net cash flows | 194,262,621 | 213,614,606 | ||||||||
Discount to present value at 10% annual rate | (110,745,133 | ) | (115,462,563 | ) | ||||||
Standardized measure of discounted future net | ||||||||||
cash flows relating to proved oil and gas | ||||||||||
reserves | $ | 83,517,488 | $ | 98,152,043 | ||||||
Schedule of changes in the standardized measure of discounted future net cash flows | ' | |||||||||
Changes in Standardized Measure of Discounted Future Net Cash Flows. The following table sets forth the changes in the standardized measure of discounted future net cash flows at March 31, for each of the two years in the period ended March 31, 2014: | ||||||||||
2014 | 2013 | |||||||||
Standardized measure, beginning of year | $ | 98,152,043 | $ | 75,384,856 | ||||||
Crude oil and natural gas sales, net of production costs | (2,608,351 | ) | (4,054,861 | ) | ||||||
Net changes in prices and production costs | (23,873,872 | ) | 81,109,584 | |||||||
Extensions, discoveries, additions and improved recovery | 19,410,988 | 50,696,971 | ||||||||
Changes in estimated future development costs | 9,945,359 | 72,652,500 | ||||||||
Development costs incurred | 4,117,630 | 15,848,464 | ||||||||
Revisions of previous quantity estimates | (36,912,080 | ) | (180,722,311 | ) | ||||||
Accretion of discount | 13,262,897 | 10,434,472 | ||||||||
Net change in income taxes | 6,022,118 | (5,507,907 | ) | |||||||
Purchases of reserves in place | - | 519,924 | ||||||||
Sales of reserves in place | - | (23,115,750 | ) | |||||||
Change in timing of estimated future production | (3,999,244 | ) | 4,906,101 | |||||||
Standardized measure, end of year | $ | 83,517,488 | $ | 98,152,043 |
LIQUIDITY_Details_Narrative
LIQUIDITY (Details Narrative) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Sep. 06, 2013 | Sep. 30, 2012 | Apr. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Aug. 13, 2013 | 31-May-13 | Apr. 21, 2014 | Apr. 29, 2014 | |
Letter Loan and Promissory Note [Member] | Notes Payable - April and May Notes [Member] | Subsequent event [Member] | Subsequent event [Member] | ||||||
Letter Loan and Promissory Note [Member] | |||||||||
Total Current Liabilities | ' | ' | ' | $4,646,223 | $6,548,865 | ' | ' | ' | ' |
Total Current Assets | ' | ' | ' | 1,586,716 | 1,685,982 | ' | ' | ' | ' |
Working capital deficit | ' | ' | ' | 3,000,000 | 4,800,000 | ' | ' | ' | ' |
Decrease in working capital deficit | ' | ' | ' | -1,800,000 | ' | ' | ' | ' | ' |
Notes Payable | ' | ' | ' | 1,793,367 | 875,000 | 7,500,000 | ' | ' | 7,300,000 |
Notes paid down | ' | ' | ' | ' | ' | ' | 3,250,000 | ' | ' |
Proceeds from shares issued, gross | 3,451,500 | 1,308,000 | 5,518,000 | ' | ' | ' | ' | 2,000,000 | ' |
Proceeds from shares issued, net of costs | $3,200,000 | ' | ' | $3,303,057 | $6,826,740 | ' | ' | $1,880,000 | ' |
Shares issued during the period | ' | ' | ' | ' | ' | ' | ' | 3,333,332 | ' |
Description of consideration received per transaction to certain institutional investors | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Each consisting of one share of common stock and 0.50 of one warrant to purchase one share of common stock at an exercise price of $1.00 per share and a term of five years (the “Warrants”, and collectively with the Shares, the “Units”) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Amortization expense, per equivalentphysical unit of production | 35.94 | 40.51 | ' |
Outstanding stock options | 914,468 | 819,668 | 456,000 |
Weighted average exercise price of outstanding stock options | $1.39 | $1.55 | $2.88 |
Outstanding warrants | 4,298,487 | 3,893,636 | ' |
Weighted average exercise price of outstanding warrants | 2.53 | 2.65 | ' |
Number of shares outstanding | 2,000 | 2,000 | 4,824 |
Series A Convertible Preferred Stock [Member] | ' | ' | ' |
Number of shares outstanding | 2,000 | ' | ' |
Number of shares issuable upon conversion | 1,000 | ' | ' |
Sunoco Refining and Marketing, Inc.; EDF Trading North America LLC. and Enterprise Crude Oil LLC [Member] | ' | ' | ' |
Percentage of product revenues attributable to customers | 86.00% | ' | ' |
Shell Trading (US) Company [Member] | ' | ' | ' |
Percentage of product revenues attributable to customers | 14.00% | ' | ' |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details Narrative) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | |||||
Nov. 14, 2013 | Sep. 20, 2013 | Jun. 26, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 21, 2013 | Feb. 28, 2014 | Mar. 31, 2014 | Nov. 21, 2012 | |
N | Eagleford and Austin Chalk [Member] | Eagleford and Austin Chalk [Member] | Sundown Energy, LP [Member] | ||||||
acre | acre | ||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of oil and natural gas properties purchased | ' | ' | ' | 3 | ' | ' | ' | ' | ' |
Purchase of oil and natural gas properties | ' | ' | ' | $70,000 | $1,037,512 | ' | $50,000 | ' | ' |
Acquisition, Note Payable | ' | ' | ' | ' | ' | 450,000 | ' | ' | ' |
Acquisition, Cash | ' | ' | ' | ' | ' | 116,700 | ' | ' | ' |
Acquisition, Relinquish of note receivable | ' | ' | ' | ' | ' | 470,812 | ' | ' | ' |
Area of oil and natural gas property sold | ' | ' | ' | 156 | ' | ' | ' | ' | 52 |
Proceeds from sale of oil and gas properties | ' | ' | ' | 156,935 | 4,069,948 | ' | ' | ' | 4,000,000 |
Amount offset, Notes payable | ' | ' | ' | ' | 269,163 | ' | ' | ' | ' |
Percentage of net royalty interest in oil and natural gas properties sold | ' | ' | ' | ' | ' | ' | ' | ' | 0.77% |
Building to be sold, included in other property and equipment | ' | ' | ' | ' | ' | 325,000 | ' | ' | ' |
Impairment of Other Property | ' | ' | ' | ' | 123,513 | ' | ' | ' | ' |
Proceeds from sale of Other Property and Equipment | 262,500 | 30,000 | 32,500 | 326,000 | ' | ' | ' | ' | ' |
Operating leases, term of contract | ' | ' | ' | ' | ' | ' | '3 years | ' | ' |
Operating leases, future minimum payments receivable, current | ' | ' | ' | 86,277 | ' | ' | ' | 7,200 | ' |
Operating leases, future minimum payments receivable, in two years | ' | ' | ' | 41,544 | ' | ' | ' | 7,800 | ' |
Operating leases, future minimum payments receivable, in three years | ' | ' | ' | ' | ' | ' | ' | $8,400 | ' |
PROPERTY_AND_EQUIPMENT_Details1
PROPERTY AND EQUIPMENT (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Components of oil and gas properties recorded at cost | ' | ' |
Proved leasehold costs | $11,354,136 | $10,002,828 |
Costs of wells and development | 37,447,018 | 33,961,775 |
Capitalized asset retirement costs | 752,915 | 745,197 |
Total oil & natural gas properties | 49,554,069 | 44,709,800 |
Accumulated depreciation and depletion | -10,991,064 | -9,077,997 |
Net capitalized costs | $38,563,005 | $35,631,803 |
ASSET_RETIREMENT_OBLIGATIONS_D
ASSET RETIREMENT OBLIGATIONS (Details) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Reconciliation of carrying amounts of long-term legal obligations | ' | ' |
Carrying amount at beginning of period | $925,494 | $1,075,152 |
Liabilities incurred | 7,719 | 228,918 |
Liabilities settled | -52,071 | -27,337 |
Accretion | 97,288 | 59,649 |
Revisions | ' | 39,162 |
Reduction for sale of oil and natural gas property | ' | -450,050 |
Carrying amount at end of period | $978,430 | $925,494 |
NOTES_PAYABLE_Details_Narrativ
NOTES PAYABLE (Details Narrative) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Sep. 19, 2013 | Mar. 29, 2013 | Mar. 31, 2013 | Aug. 13, 2013 | Mar. 31, 2014 | Apr. 04, 2013 | Mar. 31, 2014 | Apr. 04, 2013 | Apr. 04, 2013 | Apr. 04, 2013 | 31-May-13 | Mar. 31, 2014 | 31-May-13 | Mar. 31, 2014 | 31-May-13 | Apr. 29, 2014 | Apr. 29, 2014 | Apr. 29, 2014 | Jul. 13, 2015 | Apr. 29, 2014 | |
Settlement and Release Agreement (Nordic) [Member] | Settlement and Release Agreement (Nordic) [Member] | Settlement and Release Agreement (Nordic) [Member] | Letter Loan and Promissory Note [Member] | Letter Loan and Promissory Note [Member] | April 2013 Notes [Member] | April 2013 Notes [Member] | April 2013 Notes [Member] | April 2013 Notes [Member] | April 2013 Notes [Member] | May 2013 Notes [Member] | May 2013 Notes [Member] | May 2013 Notes [Member] | Notes Payable - April and May Notes [Member] | Notes Payable - April and May Notes [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
Unaffiliated Lender [Member] | Ken Daraie, Director [Member] | W. Andrew Krusen, Jr., Director [Member] | Unaffiliated Lender [Member] | Amended Letter Loan (Louise H. Rogers) [Member] | Letter Loan and Promissory Note [Member] | Amended Promissory Note (Louise H. Rogers) [Member] | Amended Promissory Note (Louise H. Rogers) [Member] | Amended Promissory Note (Louise H. Rogers) [Member] | ||||||||||||||
Robertson Global Credit, LLC [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable | $1,793,367 | $875,000 | ' | ' | $875,000 | $7,500,000 | ' | $2,750,000 | ' | $500,000 | $2,000,000 | $250,000 | $500,000 | ' | $300,000 | ' | ' | ' | $7,300,000 | ' | ' | ' |
Notes interest rate | ' | ' | ' | ' | ' | 12.00% | ' | 14.00% | ' | ' | ' | ' | 14.00% | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' |
Notes interest rate after default | ' | ' | ' | ' | ' | 18.00% | ' | 17.00% | ' | ' | ' | ' | 17.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee paid | ' | ' | ' | ' | ' | ' | ' | 55,000 | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants outstanding | 4,298,487 | 3,893,636 | ' | ' | ' | 279,851 | ' | 275,000 | ' | ' | ' | ' | 50,000 | ' | ' | 325,000 | ' | ' | ' | ' | ' | ' |
Warrant exercise price | 2.53 | 2.65 | ' | ' | ' | 1.35 | ' | 1.5 | ' | ' | ' | ' | 1.5 | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' |
Warrants, recorded as debt discount | 85,307 | ' | ' | ' | ' | 127,963 | ' | 137,118 | ' | ' | ' | ' | 27,383 | ' | ' | 164,501 | ' | ' | ' | ' | ' | ' |
Interest-only Payments due in first six months of loan | ' | ' | ' | ' | ' | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Escrow deposits, recorded as restricted cash | 150,000 | ' | ' | ' | ' | 450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly administrative fee | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | 343,000 | ' | ' | ' | ' | 480,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes paid down | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,250,000 | ' | ' | ' | ' | ' |
Amortization of Discount on Notes | 207,157 | ' | ' | ' | ' | ' | 42,656 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,870,000 | 266,000 | ' |
Amortization of Deferred Financing Costs | 228,065 | ' | ' | ' | ' | ' | 152,000 | ' | ' | ' | ' | ' | ' | ' | ' | 70,000 | ' | ' | ' | ' | ' | ' |
Interest Paid | 692,801 | 36,843 | ' | ' | ' | ' | 525,000 | ' | 147,194 | ' | ' | ' | ' | 14,972 | ' | ' | ' | ' | ' | ' | ' | ' |
Total payments of notes payable | ' | ' | ' | 1,125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of notes payable | ' | ' | 125,000 | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment terms of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The repayment of the Loan is secured by a security interest in substantially all of the Company’s assets which was evidenced by a Security Agreement and a Mortgage, Deed of Trust, Assignment, Security Agreement, Financing Statement and Fixture Filing, each entered into in August 2013, which were not modified in any way by the Amended Letter Loan and Amended Note. | We restructured the repayment terms of the original Letter Loan and Promissory Note to defer monthly amortizing principal payments which began on March 13, 2014, during the period from April 13, 2014 through September 13, 2014, during which six month period interest on the Amended Note will accrue at 15% per annum (compared to 12% per annum under the terms of the original Promissory Note). Additionally, beginning on October 13, 2014, the interest rate of the Amended Note will return to 12% per annum and we will be required to pay the monthly amortization payments. | |||||||||||||||||||||
Administrator expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 |
Number of restricted common shares issued for administrator expenses in loan modification | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 |
Advisory fees, per quarter | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' |
Net long-term notes payable | 5,430,144 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross long-term notes payable | $5,515,451 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details Narrative) (Chief Executive Officer [Member], USD $) | 12 Months Ended |
Mar. 31, 2014 | |
Chief Executive Officer [Member] | ' |
Employment agreement terms | '2 years |
Base annual salary | $310,000 |
Base salary payable in cash | 290,000 |
Base salary payable in stock | $20,000 |
Change of control period - number of months in computing compensation | '12 months |
Change in control - period after occurrence | '24 months |
Change in control - percentage of lump sum due officer | 200.00% |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Non-Cancelable Operating Leases amounts due in: | ' | ' |
2015 | $86,277 | ' |
2016 | 41,544 | ' |
Total | 127,821 | ' |
Rental expense | $122,498 | $130,547 |
INCOME_TAXES_Details_Narrative
INCOME TAXES (Details Narrative) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Taxes Details Narrative | ' | ' |
Income tax provision | ' | $39,161 |
Statutory federal tax rate | 34.00% | ' |
Net operating loss carry-forwards | $33,000,000 | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Current taxes: | ' | ' |
Federal | ' | $8,161 |
State | ' | 31,000 |
Total current taxes | ' | 39,161 |
Deferred taxes: | ' | ' |
Federal | ' | ' |
State | ' | ' |
Total deferred taxes | ' | ' |
Total | ' | $39,161 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Taxes Details 1 | ' | ' |
Computed at expected tax rates (34%) | ($1,593,788) | ($2,297,148) |
Meals and entertainment | 4,431 | 10,938 |
State Income tax net of FIT benefit | ' | 20,460 |
Return to accrual true-up | 11,329 | -3,000 |
Change in valuation allowance | 1,578,028 | 2,307,911 |
Total | ' | $39,161 |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Deferred tax assets: | ' | ' |
Net operating tax loss carryforwards | $11,236,160 | $10,049,197 |
Gain on sale of oil and gas properties | 6,172,745 | 6,303,421 |
Depletion | 1,628,359 | 1,562,341 |
Unrealized net loss on available-for-sale securities | 123,954 | 123,954 |
Share-based compensation | 291,439 | 201,729 |
Accrued compensation | 263,426 | 208,313 |
Tax Credit | ' | 8,161 |
Total deferred tax assets | 19,716,083 | 18,457,116 |
Deferred tax liabilities: | ' | ' |
Intangible drilling costs | -8,117,962 | -8,661,765 |
Depreciation | -2,307,572 | -2,020,555 |
Other | 60,209 | -2,066 |
Total deferred tax liabilities | -10,365,325 | -10,684,386 |
Subtotal | 9,350,758 | 7,772,730 |
Less: Valuation allowance | -9,350,758 | -7,772,730 |
Total | ' | ' |
STOCKHOLDERS_EQUITY_Details_Na
STOCKHOLDERS' EQUITY (Details Narrative) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||
Sep. 06, 2013 | Sep. 30, 2012 | Apr. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | |
Ryan J. Morris (Meson Capital Partners LP) [Member] | Ryan J. Morris (Meson Capital Partners LP) [Member] | ||||||
Number of common shares issued | ' | 800,000 | 2,950,000 | ' | ' | ' | 185,185 |
Number of common shares issued,value | ' | ' | ' | $3,303,057 | $6,826,740 | ' | $250,000 |
Number of common shares issued registered direct offering,value | ' | ' | ' | ' | 412,501 | 3,209,168 | ' |
Number of common shares issued registered direct offering | ' | ' | ' | ' | ' | 2,950,000 | ' |
Share price | ' | ' | $2.30 | ' | ' | $1.17 | ' |
Number of warrant issued | ' | 200,000 | 1,032,500 | ' | 412,501 | ' | ' |
Gross proceeds from sale of equity | ' | 1,320,000 | 5,900,000 | ' | ' | ' | ' |
Net proceeds from sale of equity | 3,451,500 | 1,308,000 | 5,518,000 | ' | ' | ' | ' |
Number of warrant issued,value | ' | ' | ' | ' | $412,501 | ' | ' |
Exercise price of warrants | ' | ' | ' | 2.53 | 2.65 | ' | ' |
Number of warrant reissued | ' | ' | ' | ' | 112,501 | ' | ' |
Number of warrant expired | ' | ' | ' | ' | 5,000 | ' | ' |
Exercise price of warrants during period | ' | ' | ' | ' | 1 | ' | ' |
Number of warrant issued during period | ' | ' | ' | ' | 1,232,500 | ' | ' |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2012 | Apr. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |||
Common Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Treasury Stock [Member] | Treasury Stock [Member] | |||||||
Common stock activity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Beginning balance, issued | ' | ' | 26,751,407 | ' | 26,751,407 | 19,581,657 | ' | ' | ' | ||
Beginning balance, outstanding | ' | ' | 26,714,507 | ' | 26,714,507 | 19,544,757 | ' | ' | ' | ||
Beginning balance, treasury stock | ' | ' | -36,900 | ' | ' | ' | -36,900 | -36,900 | -36,900 | ||
Private Offering - July (1) | 800,000 | 2,950,000 | ' | ' | 185,185 | 3,750,000 | ' | ' | ' | ||
Private Offering - July (1), value | ' | ' | $3,303,057 | $6,826,740 | $250,000 | [1] | $6,826,740 | [1] | ' | ' | ' |
Private Offering - July (1), per share | ' | ' | ' | ' | $1.35 | $1.82 | ' | ' | ' | ||
Registered Direct Offering - September (2) | ' | ' | ' | ' | 2,950,000 | 412,501 | ' | ' | ' | ||
Registered Direct Offering - September (2), value | ' | ' | ' | 412,501 | 3,209,168 | [1] | 412,501 | [1] | ' | ' | ' |
Registered Direct Offering - September (2), per share | ' | ' | ' | ' | $1.09 | $1 | ' | ' | ' | ||
Share-Based Compensation, shares | ' | ' | ' | ' | 131,489 | 183,249 | ' | ' | ' | ||
Share-Based Compensation, value | ' | ' | $163,118 | $320,869 | $163,118 | [1] | $320,869 | [1] | ' | ' | ' |
Share-Based Compensation, per share | ' | ' | ' | ' | $1.24 | $1.75 | ' | ' | ' | ||
Ending balance, issued | ' | ' | 30,018,081 | 26,751,407 | 30,018,081 | 26,751,407 | ' | ' | ' | ||
Ending balance, outstanding | ' | ' | 29,981,181 | 26,714,507 | 29,981,181 | 26,714,507 | ' | ' | ' | ||
Ending balance, treasury stock | ' | ' | -36,900 | -36,900 | ' | ' | -36,900 | -36,900 | -36,900 | ||
Conversion of Shares, shares | ' | ' | ' | ' | ' | 2,824,000 | ' | ' | ' | ||
[1] | Net proceeds or fair market value on grant date, as applicable. |
STOCKHOLDERS_EQUITY_Details_1
STOCKHOLDERS' EQUITY (Details 1) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Class of Stock [Line Items] | ' | ' |
Balance at Beginning of Year, shares | 2,000 | 4,824 |
Balance at Beginning of Year, amount | $3,095,600 | $8,262,354 |
Conversion of Shares | ' | -5,163,930 |
Balance at End of Year, shares | 2,000 | 2,000 |
Balance at End of Year, amount | 3,095,600 | 3,095,600 |
Series B Preferred Stock [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Conversion of Shares, shares | ' | -2,824 |
Conversion of Shares | ' | ($5,166,754) |
STOCKHOLDERS_EQUITY_Details_2
STOCKHOLDERS' EQUITY (Details 2) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Number of shares under warrant | ' | ' |
Warrants outstanding, ending | 4,298,487 | 3,893,636 |
Weighted Average Exercise Price | ' | ' |
Warrants outstanding, ending | 2.53 | 2.65 |
Warrants [Member] | ' | ' |
Number of shares under warrant | ' | ' |
Warrants outstanding, beginning | 3,893,636 | 2,966,136 |
Warrants issued | 604,851 | 1,345,001 |
Warrants expired | -200,000 | -5,000 |
Warrants exercised | ' | -412,501 |
Warrants outstanding, ending | 4,298,487 | 3,893,636 |
Weighted Average Exercise Price | ' | ' |
Warrants outstanding, beginning | 2.65 | 2.67 |
Warrants issued | 1.43 | 2.3 |
Warrants expired | 1 | 1 |
Warrants exercised | ' | 1 |
Warrants outstanding, ending | 2.53 | 2.65 |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details Narrative) (USD $) | 12 Months Ended | ||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 27, 2013 | Mar. 31, 2014 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2010 | |
Officer [Member] | Director [Member] | Director [Member] | Officer [Member] | Director [Member] | Several Employees [Member] | Consultant [Member] | 2014 Stock Incentive Plan [Member] | 2014 Stock Incentive Plan [Member] | 2012 Stock Incentive Plan [Member] | 2012 Stock Incentive Plan [Member] | 2010 Stock Incentive Plan [Member] | 2010 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares issued under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | 1,500,000 | ' | 900,000 |
Numbers of shares available for future issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | 315,379 | ' | 194,518 | ' |
Numbers of shares awarded | 124,398 | 89,768 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate grant date fair value | 148,806 | 160,082 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Numbers of shares option isssued | 114,296 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock payable | $11,250 | $17,502 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Numbers of shares awarded | ' | 93,481 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate grant date fair value | ' | 160,787 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation expense | ' | 101,741 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Numbers of shares granted | 400,000 | 747,668 | 125,000 | 50,000 | 225,000 | 250,000 | 216,668 | 206,000 | 75,000 | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | 413,711 | 677,553 | 66,635 | 17,507 | 45,652 | 24,659 | 32,426 | 24,102 | 2,309 | ' | ' | ' | ' | ' | ' |
Dividend yield | ' | ' | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' |
Expected volatility | ' | ' | 90.22% | 69.83% | 52.35% | 104.69% | 90.08% | 94.72% | 93.52% | ' | ' | ' | ' | ' | ' |
Risk-free interest rate | ' | ' | 0.36% | 0.14% | 0.14% | 0.38% | 0.26% | 0.49% | 0.40% | ' | ' | ' | ' | ' | ' |
Expected term | ' | ' | '5 years | '2 years | '3 years | '2 years | '1 year 6 months | '3 years | '3 years | ' | ' | ' | ' | ' | ' |
Numbers of shares cancelled | ' | 384,000 | 125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description of vesting period. | ' | ' | ' | 'Options vest at the rate of 1/12 of such options over the period from July 2013 to June 2014. | 'Options granted, 200,000 vest at a rate of 1/12 of such options over the period from January 2014 to December 2014 while the remaining 25,000 vest at a rate of 1/6 of such options over the period from July 2014 to December 2014. | '50,000 vested immediately, 150,000 vest 33% on each of the first three anniversary dates of the grant, and 50,000 vest on the second anniversary of a different grant date | ' The 216,668 options vested at the rate of 1/12 of such options per month over the period from January 2013 to December 2013 and have a two year exercise period | 'The 206,000 options vest 25% of the grants on each of the first four anniversary dates and have a five year exercise period. | 'The 75,000 options vest 25% on each of the first four anniversary dates and have a five year exercise period. | ' | ' | ' | ' | ' | ' |
Numbers of shares granted,value | ' | ' | ' | ' | ' | $243,030 | $104,629 | $198,439 | $69,265 | ' | ' | ' | ' | ' | ' |
Unamortized compensation expense | ' | 339,742 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional modification expense | ' | 83,657 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Numbers of shares cancelled,value | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | 270,106 | 575,812 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense | $230,949 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense period | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_Detail1
SHARE-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Number of Stock Options | ' | ' |
Oustanding beginning | 819,668 | 456,000 |
Granted | 400,000 | 747,668 |
Expired | -305,200 | -384,000 |
Exercised | ' | ' |
Oustanding ending | 914,468 | 819,668 |
Weighted Average Grant Price | ' | ' |
Oustanding beginning | $1.55 | $2.88 |
Granted | $1.13 | $1.50 |
Expired | $1.49 | $3.04 |
Exercised | ' | ' |
Oustanding ending | $1.39 | $1.55 |
SHAREBASED_COMPENSATION_Detail2
SHARE-BASED COMPENSATION (Details 1) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Stock Options Exercise Price 1.15 [Member] | Stock Options Exercise Price 2.07 [Member] | Stock Options Exercise Price 1.63 [Member] | Stock Options Exercise Price 1.74 [Member] | Stock Options Exercise Price 1.61 [Member] | Stock Options Exercise Price 1.58 [Member] | Stock Options Exercise Price 1.28 [Member] | Stock Options Exercise Price 0.98 [Member] | ||||
Remaining terms of the options outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price | ' | ' | ' | $1.15 | $2.07 | $1.63 | $1.74 | $1.61 | $1.58 | $1.28 | $0.98 |
Option Term | ' | ' | ' | '8 months 12 days | '6 years 6 months | '3 years 7 months 6 days | '3 years 7 months 6 days | '3 years 9 months 18 days | '3 years 10 months 24 days | '1 year 3 months 18 days | '2 years 8 months 12 days |
Number of stock options outstanding | 914,468 | 819,668 | 456,000 | 216,668 | 72,000 | 100,800 | 150,000 | 50,000 | 50,000 | 50,000 | 225,000 |
Options exercisable | 501,368 | ' | ' | 216,668 | 72,000 | 25,200 | 100,000 | ' | ' | 37,500 | 50,000 |
POSTRETIREMENT_BENEFITS_Detail
POSTRETIREMENT BENEFITS (Details Narrative) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Postretirement Benefits Details Narrative | ' | ' |
Total costs recognized for defined contribution savings plan | $31,207 | $34,512 |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Supplemental cash flow information | ' | ' |
Interest | $692,801 | $36,843 |
Income Taxes | 15,000 | 74,011 |
Noncash Investing and Financing Activities: | ' | ' |
Issuance of note payable for the purchase of certain oil and gas properties | ' | 450,000 |
Conversion of preferred stock to common stock | ' | 5,163,930 |
Accrued capital expenditures included in accounts payable and accrued liabilities | 1,577,930 | ' |
Discounts on Notes Payable | 292,464 | ' |
Increase (Decrease) in asset retirement obligations | 7,719 | -181,970 |
Receivable extinguished for oil and gas properties | ' | 470,812 |
Note Payable extinguished for oil and gas properties | ' | ($23,098,496) |
SUBSEQUENT_EVENTS_Details_Narr
SUBSEQUENT EVENTS (Details Narrative) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | ||||||
Sep. 06, 2013 | Sep. 30, 2012 | Apr. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Aug. 13, 2013 | 12-May-14 | Apr. 21, 2014 | Apr. 29, 2014 | Apr. 29, 2014 | Jul. 13, 2015 | Apr. 29, 2014 | |
Letter Loan and Promissory Note [Member] | Letter Loan and Promissory Note [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||
Letter Loan and Promissory Note [Member] | Amended Promissory Note (Louise H. Rogers) [Member] | Amended Promissory Note (Louise H. Rogers) [Member] | Amended Letter Loan (Louise H. Rogers) [Member] | ||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease payment per acre | ' | ' | ' | ' | ' | ' | ' | $800 | ' | ' | ' | ' | ' |
Payment for leasing cost | ' | ' | ' | ' | ' | ' | ' | 235,784 | ' | ' | ' | ' | ' |
Proceeds from shares issued, gross | 3,451,500 | 1,308,000 | 5,518,000 | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' |
Proceeds from shares issued, net of costs | 3,200,000 | ' | ' | 3,303,057 | 6,826,740 | ' | ' | ' | 1,880,000 | ' | ' | ' | ' |
Shares issued during the period | ' | ' | ' | ' | ' | ' | ' | ' | 3,333,332 | ' | ' | ' | ' |
Legal and placement agent fees | ' | ' | ' | ' | ' | ' | ' | ' | 120,000 | ' | ' | ' | ' |
Number of warrant issued | ' | 200,000 | 1,032,500 | ' | 412,501 | ' | ' | ' | 1,666,666 | ' | ' | ' | ' |
Description of consideration received per transaction to certain institutional investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Each consisting of one share of common stock and 0.50 of one warrant to purchase one share of common stock at an exercise price of $1.00 per share and a term of five years (the “Warrants”, and collectively with the Shares, the “Units”) | |||||||||||||
Notes payable | ' | ' | ' | 1,793,367 | 875,000 | ' | 7,500,000 | ' | ' | 7,300,000 | ' | ' | ' |
Repayment terms of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
We restructured the repayment terms of the original Letter Loan and Promissory Note to defer monthly amortizing principal payments which began on March 13, 2014, during the period from April 13, 2014 through September 13, 2014, during which six month period interest on the Amended Note will accrue at 15% per annum (compared to 12% per annum under the terms of the original Promissory Note). Additionally, beginning on October 13, 2014, the interest rate of the Amended Note will return to 12% per annum and we will be required to pay the monthly amortization payments. | The repayment of the Loan is secured by a security interest in substantially all of the Company’s assets which was evidenced by a Security Agreement and a Mortgage, Deed of Trust, Assignment, Security Agreement, Financing Statement and Fixture Filing, each entered into in August 2013, which were not modified in any way by the Amended Letter Loan and Amended Note. | ||||||||||||
Additional principal amortization payments | ' | ' | ' | 207,157 | ' | 42,656 | ' | ' | ' | ' | 3,870,000 | 266,000 | ' |
Advisory fees, per quarter | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,000 | ' | ' |
Supplemental_Oil_and_Gas_Discl2
Supplemental Oil and Gas Disclosures (Unaudited) (Details Narrative) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
bbl | bbl | bbl | |
Reserve Quantities [Line Items] | ' | ' | ' |
Description of increase (decrease) in reserves | ' | ' | ' |
Crude oil reserves decreased slightly by approximately 0.1 million BBLs offset by an increase of natural gas reserves by approximately 0.7 BCF (or 0.1 BOE – barrel of equivalent) | |||
Termination of senior secured promissory note | ' | 22,000,000 | ' |
Percentage of additions related to crude oil | 93.00% | ' | ' |
Eagleford and Austin Chalk [Member] | ' | ' | ' |
Reserve Quantities [Line Items] | ' | ' | ' |
Proved Reserves | 5,200,000 | ' | ' |
Crude Oil (Bbls) [Member] | ' | ' | ' |
Reserve Quantities [Line Items] | ' | ' | ' |
Increase (decrease) in proved reserves | 100,000 | ' | ' |
Proved Reserves | 5,038,685 | 5,131,143 | 7,023,516 |
Natural Gas (Mcf) [Member] | ' | ' | ' |
Reserve Quantities [Line Items] | ' | ' | ' |
Increase (decrease) in proved reserves | 700,000,000 | ' | ' |
Proved Reserves | 3,314,009 | 2,642,894 | 10,722,480 |
Oil Equivalents (Boe) [Member] | ' | ' | ' |
Reserve Quantities [Line Items] | ' | ' | ' |
Increase (decrease) in proved reserves | ' | -1,600,000 | ' |
Increase (decrease) in proved undeveloped reserves | 100,000 | ' | ' |
Proved undeveloped reserves, Transfer | 700,000 | ' | ' |
Proved undeveloped reserves, Reduction due to expiring leases | 200,000 | ' | ' |
Proved undeveloped reserves, Additions | 1,000,000 | ' | ' |
Proved Reserves | 5,591,020 | 5,571,625 | 8,810,596 |
Supplemental_Oil_and_Gas_Discl3
Supplemental Oil and Gas Disclosures (Unaudited) (Details) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
bbl | bbl | bbl | |
Crude Oil (Bbls) [Member] | ' | ' | ' |
Proved Reserves rollforward: | ' | ' | ' |
Net proved reserves at beginning of year | 5,131,143 | 7,023,520 | 2,768,200 |
Revisions of previous estimates | -923,465 | -1,980,284 | -313,810 |
Purchases in place | ' | 14,050 | 1,193,746 |
Extensions. discoveries and other additions | 883,983 | 1,908,362 | 3,456,560 |
Sales in place | ' | -1,750,278 | -26,710 |
Production | -53,228 | -84,227 | -54,466 |
Net proved reserves at end of year | 5,038,433 | 5,131,143 | 7,023,520 |
Natural Gas (Mcf) [Member] | ' | ' | ' |
Proved Reserves rollforward: | ' | ' | ' |
Net proved reserves at beginning of year | 2,642,889 | 10,722,480 | 843,250 |
Revisions of previous estimates | 124,025 | -8,721,436 | 194,160 |
Extensions. discoveries and other additions | 548,608 | 1,336,108 | 9,699,630 |
Sales in place | ' | -685,027 | ' |
Production | ' | -9,236 | -14,560 |
Net proved reserves at end of year | 3,315,522 | 2,642,889 | 10,722,480 |
Oil Equivalents (Boe) [Member] | ' | ' | ' |
Proved Reserves rollforward: | ' | ' | ' |
Net proved reserves at beginning of year | 5,571,625 | 8,810,600 | 2,908,742 |
Revisions of previous estimates | -902,795 | -3,433,857 | -281,450 |
Purchases in place | ' | 14,050 | 1,193,746 |
Extensions. discoveries and other additions | 975,418 | 2,131,047 | 5,073,165 |
Sales in place | ' | -1,864,449 | -26,710 |
Production | -53,228 | -85,766 | -56,893 |
Net proved reserves at end of year | 5,591,020 | 5,571,625 | 8,810,600 |
Supplemental_Oil_and_Gas_Discl4
Supplemental Oil and Gas Disclosures (Unaudited) (Details 1) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
bbl | bbl | bbl | |
Crude Oil (Bbls) [Member] | ' | ' | ' |
Reserve Quantities [Line Items] | ' | ' | ' |
Proved Developed Reserves | 186,610 | 251,243 | 402,360 |
Proved Undeveloped Reserves | 4,852,075 | 4,879,900 | 6,621,156 |
Proved Reserves | 5,038,685 | 5,131,143 | 7,023,516 |
Probable Undeveloped Reserves | 3,595,826 | 1,438,059 | ' |
Natural Gas (Mcf) [Member] | ' | ' | ' |
Reserve Quantities [Line Items] | ' | ' | ' |
Proved Undeveloped Reserves | 3,314,009 | 2,642,894 | 10,722,480 |
Proved Reserves | 3,314,009 | 2,642,894 | 10,722,480 |
Probable Undeveloped Reserves | 2,203,891 | 1,378,143 | ' |
Oil Equivalents (Boe) [Member] | ' | ' | ' |
Reserve Quantities [Line Items] | ' | ' | ' |
Proved Developed Reserves | 186,610 | 251,243 | 402,360 |
Proved Undeveloped Reserves | 5,404,410 | 5,320,382 | 8,408,236 |
Proved Reserves | 5,591,020 | 5,571,625 | 8,810,596 |
Probable Undeveloped Reserves | 3,963,141 | 1,667,750 | ' |
Supplemental_Oil_and_Gas_Discl5
Supplemental Oil and Gas Disclosures (Unaudited) (Details 2) (Oil Equivalents (Boe) [Member]) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
bbl | bbl | bbl | |
Reserve Quantities [Line Items] | ' | ' | ' |
Proved Developed Reserves | 186,610 | 251,243 | 402,360 |
Proved Undeveloped Reserves | 5,404,410 | 5,320,382 | 8,408,236 |
Proved Reserves | 5,591,020 | 5,571,625 | 8,810,596 |
Eagle Ford [Member] | ' | ' | ' |
Reserve Quantities [Line Items] | ' | ' | ' |
Proved Developed Reserves | 24,844 | 25,867 | ' |
Proved Undeveloped Reserves | 4,365,495 | 3,504,803 | ' |
Proved Reserves | 4,390,339 | 3,530,670 | ' |
Austin Chalk [Member] | ' | ' | ' |
Reserve Quantities [Line Items] | ' | ' | ' |
Proved Developed Reserves | 159,267 | 215,108 | ' |
Proved Undeveloped Reserves | 661,886 | 1,500,134 | ' |
Proved Reserves | 821,153 | 1,715,242 | ' |
Buda and Glen Rose [Member] | ' | ' | ' |
Reserve Quantities [Line Items] | ' | ' | ' |
Proved Developed Reserves | 1,924 | 541 | ' |
Proved Undeveloped Reserves | 269,451 | 315,449 | ' |
Proved Reserves | 271,375 | 315,990 | ' |
Other Sites [Member] | ' | ' | ' |
Reserve Quantities [Line Items] | ' | ' | ' |
Proved Developed Reserves | 575 | 9,723 | ' |
Proved Undeveloped Reserves | 107,578 | ' | ' |
Proved Reserves | 108,153 | 9,723 | ' |
Supplemental_Oil_and_Gas_Discl6
Supplemental Oil and Gas Disclosures (Unaudited) (Details 3) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Costs incurred for oil and natural gas gas property acquisition, exploration and development activities | ' | ' |
Acquisition of properties - proved | $69,622 | $116,700 |
Acquisition of properties - unproved | ' | ' |
Exploration costs | ' | ' |
Development costs | 4,923,864 | 4,782,327 |
Total | $4,993,486 | $4,899,027 |
Supplemental_Oil_and_Gas_Discl7
Supplemental Oil and Gas Disclosures (Unaudited) (Details 4) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Results of operations for oil and natural gas producing activities | ' | ' |
Crude oil and natural gas revenues | $5,219,752 | $8,247,084 |
Production costs | -2,611,401 | -4,192,223 |
Depreciation and depletion | -2,006,899 | -3,452,036 |
Results of operations for producing activities, excluding corporate overhead and interest costs | $601,452 | $602,825 |
Supplemental_Oil_and_Gas_Discl8
Supplemental Oil and Gas Disclosures (Unaudited) (Details 5) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Standardized measure of discounted future net cash flows | ' | ' |
Future cash inflows | $496,052,800 | $546,811,370 |
Future production costs | -71,213,209 | -80,809,010 |
Future development costs | -164,412,073 | -177,353,400 |
Future income taxes | -66,164,897 | -75,034,354 |
Future net cash flows | 194,262,621 | 213,614,606 |
Discount to present value at 10% annual rate | -110,745,133 | -115,462,563 |
Standardized measure of discounted future net cash flows relating to proved oil and gas reserves | $83,517,488 | $98,152,043 |
Supplemental_Oil_and_Gas_Discl9
Supplemental Oil and Gas Disclosures (Unaudited) (Details 6) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Changes in the standardized measure of discounted future cash flows | ' | ' |
Standardized measure, beginning of year | $98,152,043 | $75,384,856 |
Crude oil and natural gas sales, net of production costs | -2,608,351 | -4,054,861 |
Net changes in prices and production costs | -23,873,872 | 81,109,584 |
Extensions, discoveries, additions and improved recovery | 19,410,988 | 50,696,971 |
Changes in estimated future development costs | 9,945,359 | 72,652,500 |
Development costs incurred | 4,117,630 | 15,848,464 |
Revisions of previous quantity estimates | -36,912,080 | -180,722,311 |
Accretion of discount | 13,262,897 | 10,434,472 |
Net change in income taxes | 6,022,118 | -5,507,907 |
Purchases of reserves in place | ' | 519,924 |
Sales of reserves in place | ' | -23,115,750 |
Change in timing of estimated future production | -3,999,244 | 4,906,101 |
Standardized measure, end of year | $83,517,488 | $98,152,043 |