GeoMet 10-Q 30 Apr 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 16, 2015
Document and Entity Information
Entity Registrant Name	GeoMet, Inc.
Entity Central Index Key	1352302
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		40,513,373
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$22,098,603	$22,894,405
Other current assets	79,567	148,302
Total current assets	22,178,170	23,042,707
TOTAL ASSETS	22,178,170	23,042,707
Current Liabilities:
Accounts payable	167,552	152,258
Accrued liabilities		123,092
Income tax payable	2,543	2,543
Total current liabilities	170,095	277,893
TOTAL LIABILITIES	170,095	277,893
Commitments and contingencies (Note 13)
Mezzanine equity:
Series A Convertible Redeemable Preferred Stock-net of offering costs of $1,660,435; redemption amount $69,983,600; $.001 par value; 7,401,832 shares authorized, 6,998,360 and 6,786,334 shares were issued and outstanding at March 31, 2015 and December 31, 2014, respectively	50,125,262	48,676,221
Stockholders' Deficit:
Preferred stock, $0.001 par value-2,598,168 shares authorized, none issued
Common stock, $0.001 par value-authorized 125,000,000 shares; 40,523,805 issued and 40,513,373 outstanding at March 31, 2015 and December 31, 2014	40,524	40,524
Treasury stock, at cost-10,432 shares at March 31, 2015 and December 31, 2014	-94,424	-94,424
Paid-in capital	180,825,733	182,275,243
Retained deficit	-208,889,020	-208,132,750
Total stockholders' deficit	-28,117,187	-25,911,407
TOTAL LIABILITIES, MEZZANINE AND STOCKHOLDERS' DEFICIT	$22,178,170	$23,042,707

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Series A Convertible Redeemable Preferred Stock, offering costs (in dollars)	$1,660,435	$1,660,435
Series A Convertible Redeemable Preferred Stock, redemption amount (in dollars)	$69,983,600	$69,983,600
Series A Convertible Redeemable Preferred Stock, par value (in dollars per share)	$0.00	$0.00
Series A Convertible Redeemable Preferred Stock, shares authorized	7,401,832	7,401,832
Series A Convertible Redeemable Preferred Stock, shares issued	6,998,360	6,786,334
Series A Convertible Redeemable Preferred Stock, shares outstanding	6,998,360	6,786,334
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	2,598,168	2,598,168
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	40,523,805	40,523,805
Common stock, shares outstanding	40,513,373	40,513,373
Treasury stock, shares	10,432	10,432

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Expenses:
Depreciation		$113,817
General and administrative	756,780	1,029,604
Total operating expenses	756,780	1,143,421
Operating loss	-756,780	-1,143,421
Other income (expense)	6,760	-18,534
Loss before income taxes from continuing operations	-750,020	-1,161,955
Income tax expense	6,250	6,250
Loss from continuing operations	-756,270	-1,168,205
Discontinued operations		2,017,061
Net (loss) income	-756,270	848,856
Accretion of discount on Series A Convertible Redeemable Preferred Stock	-897,773	-644,744
Paid-in-kind dividends on Series A Convertible Redeemable Preferred Stock	-551,268	-599,875
Cash dividends paid on Series A Convertible Redeemable Preferred Stock	-469	-568
Net loss available to common stockholders	($2,205,780)	($396,331)
Net loss per common share-basic:
Net loss per common share from continuing operations (in dollars per share)	($0.05)	($0.06)
Income per common share from discontinued operations (in dollars per share)		$0.05
Net loss per common share-basic (in dollars per share)	($0.05)	($0.01)
Net loss per common share-diluted:
Net loss per common share from continuing operations (in dollars per share)	($0.05)	($0.06)
Income per common share from discontinued operations (in dollars per share)		$0.05
Net loss per common share-diluted (in dollars per share)	($0.05)	($0.01)
Weighted average number of common shares:
Basic (in shares)	40,523,805	40,514,097
Diluted (in shares)	40,523,805	40,514,097

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows provided by operating activities:
Loss from continuing operations	($756,270)	($1,168,205)
Adjustments to reconcile loss from continuing operations to net cash flows (used in) provided by continuing operating activities:
Depreciation		113,817
Stock-based compensation		39,343
Changes in operating assets and liabilities:
Other current assets	68,735	237,002
Accounts payable	15,294	23,878
Other accrued liabilities	-123,092	-5,886
Net cash used in continuing operating activities	-795,333	-760,051
Income from discontinued operations		2,017,061
Adjustments to reconcile Income from discontinued operations to net cash flows provided by discontinued operating activities:
Depreciation, depletion and amortization		715,892
Amortization of debt issuance costs		218,357
Unrealized losses from the change in market value of open derivative contracts		271,839
Loss on sale of other assets		16,687
Accretion expense		194,884
Changes in operating assets and liabilities:
Accounts receivable		-619,091
Other current assets		-698,632
Accounts payable		-744,681
Other accrued liabilities		297,431
Net cash provided by discontinued operating activities		1,669,747
Net cash (used in) provided by operating activities	-795,333	909,696
Continuing operations:
Proceeds from the sale of other assets		140,000
Net cash provided by investing activities- continuing operations		140,000
Discontinued operations:
Capital expenditures		-68,286
Proceeds from sale of other assets		20,000
Net cash used in investing activities - discontinued operations		-48,286
Net cash provided by investing activities		91,714
Continuing operations:
Dividends paid	-469	-568
Net cash used in financing activities- continuing operations	-469	-568
Discontinued operations:
Repayment of borrowings under Credit Agreement		-1,550,000
Net cash used in financing activities - discontinued operations		-1,550,000
Net cash used in financing activities	-469	-1,550,568
Decrease in cash and cash equivalents	-795,802	-549,158
Cash and cash equivalents at beginning of period	22,894,405	8,108,272
Cash and cash equivalents at end of period	22,098,603	7,559,114
Supplemental disclosure of cash flow information:
Interest expense		705,116
Income taxes	6,250	6,250
Significant noncash investing and financing activities:
Accrued capital expenditures		$21,266

Organization_and_Our_Business

Organization and Our Business	3 Months Ended
	Mar. 31, 2015
Organization and Our Business
Organization and Our Business
	Note 1—Organization and Our Business
	GeoMet, Inc. (the “Company,” “GeoMet,” “we,” “us” or “our”) (formerly GeoMet Resources, Inc.) was incorporated under the laws of the State of Delaware on November 9, 2000.
	On May 12, 2014, we closed the sale of substantially all of our remaining assets as described in Recent Developments—May 2014 Sale of Substantially All Remaining Assets. Prior to the completion of the sale of substantially all of our remaining assets on May 12, 2014, we were engaged in the exploration, development and production of natural gas from coal seams (“coalbed methane” or “CBM”). All of our production was CBM, which is a dry natural gas containing no hydrocarbon liquids. We were originally founded as a consulting company to the coalbed methane industry in 1985 and were active as an operator, developer and producer of coalbed methane properties since 1993. Our principal operations and producing properties were located in the Central Appalachian Basin in Virginia and West Virginia.
	On August 15, 2014, we became a “shell company” as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), because we no longer had operations and our assets consisted of cash and nominal other assets.
	The accompanying unaudited consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The unaudited consolidated financial statements reflect, in the opinion of our management, all adjustments, consisting only of normal and recurring adjustments, necessary to present fairly the financial position as of, and results of operations for, the interim periods presented. These unaudited consolidated financial statements have been prepared in accordance with the guidelines of interim reporting; therefore, they do not include all disclosures required for our year-end audited consolidated financial statements prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Interim period results are not necessarily indicative of results of operations or cash flows for the full year. These unaudited consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 31, 2014 and the accompanying notes included in our Annual Report on Form 10-K, which we filed with the Securities and Exchange Commission (the “SEC”) on February 17, 2015.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncement	3 Months Ended
	Mar. 31, 2015
Recent Accounting Pronouncement
Recent Accounting Pronouncement
	Note 2—Recent Accounting Pronouncement
	In August 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standard Updated (“ASU”) No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The ASU provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements (or within one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must provide certain disclosures if there is “substantial doubt about the entity’s ability to continue as a going concern.” The ASU is effective for annual periods ending after December 15, 2016, and interim periods thereafter and early adoption is permitted. The Company does not expect the adoption of this amendment to have a material impact on its consolidated financial statements.
	In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20), which eliminates the concept of extraordinary items from accounting principles generally accepted in the United States of America (GAAP) as part of its simplification initiative. The ASU does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence. The ASU is effective for interim and annual periods in fiscal years beginning after December 15, 2015. The ASU allows prospective or retrospective application. Early adoption is permitted if applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of this amendment to have a material impact on its consolidated financial statements.
	In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis, which changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (VIE), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The new consolidation guidance is effective for annual and interim periods in fiscal years beginning after December 15, 2015. At the effective date, all previous consolidation analyses that the guidance affects must be reconsidered. This includes the consolidation analyses for all VIEs and for all limited partnerships and similar entities that previously were consolidated by the general partner even though the entities were not VIEs. Early adoption is permitted, including early adoption in an interim period. The Company does not expect the adoption of this amendment to have a material impact on its consolidated financial statements.
	In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. Entities that have historically presented debt issuance costs as an asset, related to a recognized debt liability, will be required to present those costs as a direct deduction from the carrying amount of that debt liability. This presentation will result is debt issuance cost being presented the same way debt discounts have historically been handled. The ASU does not change the recognition, measurement, or subsequent measurement guidance for debt issuance costs. The Company does not expect the adoption of this amendment to have a material impact on its consolidated financial statements.

Sale_of_our_Central_Appalachia

Sale of our Central Appalachian Assets and Termination of Credit Agreement	3 Months Ended
	Mar. 31, 2015
Sale of our Central Appalachian Assets and Termination of Credit Agreement
Sale of our Central Appalachian Assets and Termination of Credit Agreement
	Note 3—Sale of our Central Appalachian Assets and Termination of Credit Agreement
	On May 12, 2014, we closed the sale of substantially all of our remaining assets which consisted of coalbed methane interests and other assets located in the Appalachian Basin in McDowell, Harrison, Wyoming, Raleigh, Barbour and Taylor Counties, West Virginia and Buchanan County, Virginia (the “Asset Sale”) to ARP Mountainner Production, LLC, a Delaware limited liability company and a wholly-owned subsidiary of Atlas Resource Partners, L.P., a Delaware limited partnership.
	Immediately following the closing of the Asset Sale, GeoMet, Bank of America, N.A., as administrative agent (the “Administrative Agent”), and the financial institutions party thereto terminated the Fifth Amended and Restated Credit Agreement, dated as of October 14, 2011, by and among GeoMet, the Administrative Agent, the financial institutions party thereto as lenders and the other agents party thereto (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”). Immediately prior to termination of the Credit Agreement, we repaid all amounts owed to the lenders party to the Credit Agreement, satisfying all of our obligations under the Credit Agreement. Additionally, we settled all of our remaining outstanding natural gas hedge positions.

Results_of_Discontinued_Operat

Results of Discontinued Operations	3 Months Ended
	Mar. 31, 2015
Results of Discontinued Operations
Results of Discontinued Operations
	Note 4—Results of Discontinued Operations
	As a result of the Asset Sale, all operating activities are presented as discontinued operations in the Consolidated Statements of Operations (Unaudited) for the three months ended March 31, 2015 and 2014 as follows:
		2015		2014
	Revenues:
	Gas sales	$	—	$	9,678,375
	Other	—		17,775
	Total revenues	—		9,696,150
	Expenses:
	Lease operating expense	—		2,551,646
	Compression and transportation expense	—		1,673,399
	Production taxes	—		578,487
	Depreciation, depletion and amortization	—		715,892
	Losses on natural gas derivatives	—		1,237,716
	Total operating expenses	—		6,757,140
	Operating income (loss)	—		2,939,010
	Interest expense	—		(923,511		)
	Interest income	—		1,562
	Income from discontinued operations	$	—	$	2,017,061

Pro_Forma_Financial_Informatio

Pro Forma Financial Information	3 Months Ended
	Mar. 31, 2015
Pro Forma Financial Information
Pro Forma Financial Information
	Note 5— Pro Forma Financial Information
	Pro forma adjustments related to the unaudited pro forma financial information presented below were computed assuming the Asset Sale completed in May 2014 was consummated on January 1, 2014 and include adjustments which give effect to events that are (i) directly attributable to the Asset Sale, (ii) expected to have a continuing impact on the registrant and (iii) factually supportable. As such, included in Net income (loss), Net income (loss) available to common stockholders and Net income (loss) per common share (basic and diluted) for the three months ended March 31, 2014 is the gains on the asset sales completed in May 2014 of $62,455,853.
		2015			2014
	Revenue	$	—		$	—
	Loss from continuing operations	$	(756,780	)	$	(1,168,205	)
	Net (loss) income	$	(756,270	)	$	63,304,709
	Net (loss) income available to common stockholders	$	(2,205,780	)	$	62,059,522
	Net (loss) income per common share—basic	$	(0.05	)	$	1.53
	Net (loss) income per common share—diluted	$	(0.05	)	$	1.53

Net_Loss_Per_Common_Share

Net Loss Per Common Share	3 Months Ended
	Mar. 31, 2015
Net Loss Per Common Share
Net Loss Per Common Share
	Note 6—Net Loss Per Common Share
	Net loss per common share—basic is calculated by dividing Net loss available to common stockholders by the weighted average number of shares of our Common Stock, par value $0.001 per share (the “Common Stock”), outstanding during the period. Net loss per common share—diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing Net loss available to common stockholders by the sum of the weighted average number of shares of Common Stock outstanding plus potentially dilutive securities. Net loss per common share—diluted considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential shares of Common Stock would have an anti-dilutive effect. A reconciliation of Net loss per common share for the three months ended March 31, 2015 and 2014 is as follows:
		2015			2014
	Net loss available to common stockholders	$	(2,205,780	)	$	(396,331	)
	Income from discontinued operations	$	—		$	2,017,061
	Net loss per common share—basic:
	Net loss per common share from continuing operations	$	(0.05	)	$	(0.06	)
	Income per common share from discontinued operations	—			0.05
	Net loss per common share—basic	$	(0.05	)	$	(0.01	)
	Net loss per common share—diluted:
	Net loss per common share from continuing operations	$	(0.05	)	$	(0.06	)
	Income per common share from discontinued operations	—			0.05
	Net loss per common share—diluted	$	(0.05	)	$	(0.01	)
	Weighted average number of common shares:
	Basic	40,523,805			40,514,097
	Diluted	40,523,805			40,514,097
	Net loss per common share—diluted for the three months ended March 31, 2015 excluded the effect of 6,998,360 shares of our Series A Convertible Redeemable Preferred Stock, par value $0.001 per share (“Preferred Stock”) (50,639,091 in dilutive shares, as converted, which assumes conversion on the first day of the period), because we reported a Net loss available to common stockholders which caused the options and restricted shares to be anti-dilutive. Additionally, in computing the dilutive effect of convertible securities, Net loss available to common stockholders is also adjusted to add back any convertible preferred dividends and accretion unless the preferred shares are anti-dilutive. As such, there was no add back to Net loss available to common stockholders for the three months ended March 31, 2015 for accretion of and dividends paid for Preferred Stock of $897,773 and $551,737, respectively, in computing Net loss per common share—diluted as the preferred shares were anti-dilutive.
	Net loss per common share—diluted for the three months ended March 31, 2014 excluded the effect of outstanding exercisable options to purchase 1,555,508 shares, 135,343 weighted average restricted shares outstanding, and 6,188,032 shares of Preferred Stock (47,600,246 in dilutive shares, as converted, which assumes conversion on the first day of the period) because we reported a Net loss available to common stockholders which caused the options and restricted shares to be anti-dilutive. Additionally, in computing the dilutive effect of convertible securities, Net loss available to common stockholders is also adjusted to add back any convertible preferred dividends and accretion unless the preferred shares are anti-dilutive. As such, there was no add back to Net loss available to common stockholders for the three months ended March 31, 2014 for accretion of and dividends paid for Preferred Stock of $644,744 and $600,443, respectively, in computing Net loss per common share—diluted as the preferred shares were anti-dilutive.

Derivative_Instruments_and_Hed

Derivative Instruments and Hedging Activities	3 Months Ended
	Mar. 31, 2015
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities
	Note 7—Derivative Instruments and Hedging Activities
	In connection with the closing of the Asset Sale described in Note 3—Sale of our Central Appalachian Assets and Termination of Credit Agreement, we settled all of our outstanding natural gas hedge positions.
	Prior to the closing of the Asset Sale, in an effort to reduce the effects of the volatility of the price of natural gas on our operations, management had historically hedged natural gas prices primarily using derivative instruments in the form of three-way collars, traditional collars and swaps. While the use of these hedging arrangements limited the downside risk of adverse price movements, it also limited future gains from favorable movements. We entered into hedging transactions, generally for forward periods up to two years or more, which increased the probability of achieving our targeted level of cash flows. Our price risk management policy strictly prohibited the use of derivatives for speculative positions.
	Swaps exchange floating price risk in the future for a fixed price at the time of the hedge. Costless collars set both a maximum ceiling (a sold ceiling) and a minimum floor (a bought floor) future price. We have accounted for these transactions using the mark-to-market accounting method. Generally, we incurred accounting losses on derivatives during periods where prices were rising and gains during periods where prices were falling which caused significant fluctuations in our Consolidated Balance Sheets (Unaudited) and Consolidated Statements of Operations (Unaudited).
	Commodity Price Risk and Related Hedging Activities
	At March 31, 2015 and December 31, 2014, we had no natural gas derivative contracts.
	The following losses on our hedging instruments have been classified as Discontinued operations on the Consolidated Statements of Operations (Unaudited) for the three months ended March 31, 2015 and 2014. See Note 4—Results of Discontinued Operations for further discussion on the classification.
		Location of Loss Recognized in	Amount of Loss
			Recognized in Income on
			Derivatives
	Derivatives not designated as hedging instruments	Income on Derivatives	2015		2014
	Natural gas collar/swap settled positions	Discontinued operations	$	—	$	965,877
	Natural gas collar/swap unsettled positions	Discontinued operations	—		271,839
	Total loss		$	—	$	1,237,716

LongTerm_Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2015
Long-Term Debt
Long-Term Debt
	Note 8—Long-Term Debt
	As described in Note 3—Sale of our Central Appalachian Assets and Termination of Credit Agreement, on May 12, 2014, we sold substantially all of our remaining assets in the Asset Sale. Immediately following the closing of the Asset Sale, we repaid all of our outstanding borrowings under the Credit Agreement. For the three months ended March 31, 2014, we had no borrowings and made payments of $1.6 million under our Credit Agreement. For the three months ended March 31, 2014, interest on the borrowings averaged 4.02%.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2015
Income Taxes
Income Taxes
	Note 9—Income Taxes
	We record our income taxes using an asset and liability approach. This results in the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the book carrying amounts and the tax basis of assets and liabilities using enacted tax rates at the end of the period. The effect of a change in tax rates of deferred tax assets and liabilities is recognized in the year of the enacted change.
	For tax reporting purposes, we have federal and state net operating losses (“NOLs”) of approximately $120.2 million and $133.3 million, respectively, as of March 31, 2015 that are available to reduce future taxable income. For tax reporting purposes, we had federal and state NOLs of approximately $119.4 million and $133.3 million, respectively, as of December 31, 2014, that were available to reduce future taxable income. Our first material federal NOL carryforward expires in 2024, and the last one expires in 2033.
	Additionally, for tax reporting purposes, we have a federal capital loss carryforward generated by the sale of Hudson’s Hope Gas, Ltd. in 2012 (the “Hudson Sale”), of approximately $33.9 million as of December 31, 2014 that is available to reduce future taxable capital gains and expires in 2017. Additionally, we have a federal capital loss carryforward of $0.2 million generated by the sale of other assets in 2014.
	As of March 31, 2015, we have a valuation allowance of $61.1 million recorded against our net deferred tax asset, which includes $48.2 million related to our United States operations and $12.9 million related to the capital loss carryforward generated by the Hudson Sale and other assets in 2014.
	The income tax expense in the current year period was different than the amount computed using the statutory rate primarily due to an increase of $0.2 million in the valuation allowance on our deferred tax asset. A reconciliation of the effective tax rate to the statutory rate is as follows:
	Amount computed using statutory rates	$	(255,007	)	34	%
	State income taxes—net of federal benefit	6,250			-0.83	%
	Valuation Allowance	235,718			-31.43	%
	Nondeductible items and other	19,289			-2.57	%
	Income tax provision	$	6,250		0.83	%

Common_Stock

Common Stock	3 Months Ended
	Mar. 31, 2015
Common Stock
Common Stock
	Note 10—Common Stock
	As of both March 31, 2015 and December 31, 2014, shares of the Common Stock issued were 40,523,805 and outstanding were 40,513,373. Included in shares of our Common Stock issued as of March 31, 2015 and December 31, 2014 were 10,432 shares of treasury stock held by the Company. During the three months ended March 31, 2014, 153 shares of restricted stock were forfeited and canceled upon the termination of an employee by the Company and 2,724 shares of restricted stock expired unvested and were canceled.

Series_A_Convertible_Redeemabl

Series A Convertible Redeemable Preferred Stock	3 Months Ended
	Mar. 31, 2015
Series A Convertible Redeemable Preferred Stock
Series A Convertible Redeemable Preferred Stock
	Note 11—Series A Convertible Redeemable Preferred Stock
	As of March 31, 2015 and December 31, 2014, 6,998,360 and 6,786,334 shares of Preferred Stock were issued and outstanding, respectively. As of March 31, 2015, an additional 403,472 shares of the Preferred Stock were reserved exclusively for the payment of paid-in-kind dividends (“PIK dividends”). We measure the fair value of PIK dividends using the closing quoted OTC market price on the dividend date. The following table details the activity related to the Preferred Stock for the three months ended March 31, 2015:
		Dividend Period	Date Issued	Number of Shares	Balance
		(Three Months Ended)
	Balance on December 31, 2014			6,786,334	$	48,676,221
	Accretion of discount on Preferred Stock				897,773
	PIK dividend Issued for Preferred Stock	3/31/15	3/31/15	212,026	551,268
	Balance on March 31, 2015			6,998,360	$	50,125,262
	As of March 31, 2015, the 6,998,360 shares of Preferred Stock were issued and outstanding were convertible into 53,833,538 shares of our Common Stock.

ShareBased_Awards

Share-Based Awards	3 Months Ended
	Mar. 31, 2015
Share-Based Awards
Share-Based Awards
	Note 12—Share-Based Awards
	Our 2006 Long-Term Incentive Plan (the “2006 Plan”) authorized the granting of incentive stock options, non-qualified stock options, stock appreciation rights, stock awards, restricted stock, restricted stock units and performance awards. On May 12, 2014, all remaining awards under the 2006 Plan were forfeited.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies
Commitments and Contingencies
	Note 13— Commitments and Contingencies
	From time to time we are a party to litigation in the normal course of business. While the outcome of lawsuits or other proceedings against us are not possible to reasonably predict, management does not believe that the adverse effect on our financial condition, results of operations or cash flows, if any, will be material. As of March 31, 2015, there are no lawsuits or other proceedings to which we are named that we are aware of.
	Environmental and Regulatory
	As of March 31, 2015, there were no known environmental or other regulatory matters related to our operations that are reasonably expected to result in a material liability to us.

Results_of_Discontinued_Operat1

Results of Discontinued Operations (Tables)	3 Months Ended
	Mar. 31, 2015
Results of Discontinued Operations
Schedule of statement of operations
		2015		2014
	Revenues:
	Gas sales	$	—	$	9,678,375
	Other	—		17,775
	Total revenues	—		9,696,150
	Expenses:
	Lease operating expense	—		2,551,646
	Compression and transportation expense	—		1,673,399
	Production taxes	—		578,487
	Depreciation, depletion and amortization	—		715,892
	Losses on natural gas derivatives	—		1,237,716
	Total operating expenses	—		6,757,140
	Operating income (loss)	—		2,939,010
	Interest expense	—		(923,511		)
	Interest income	—		1,562
	Income from discontinued operations	$	—	$	2,017,061

Pro_Forma_Financial_Informatio1

Pro Forma Financial Information (Tables)	3 Months Ended
	Mar. 31, 2015
Pro Forma Financial Information
Schedule of pro forma adjustments related to the unaudited pro forma financial information
		2015			2014
	Revenue	$	—		$	—
	Loss from continuing operations	$	(756,780	)	$	(1,168,205	)
	Net (loss) income	$	(756,270	)	$	63,304,709
	Net (loss) income available to common stockholders	$	(2,205,780	)	$	62,059,522
	Net (loss) income per common share—basic	$	(0.05	)	$	1.53
	Net (loss) income per common share—diluted	$	(0.05	)	$	1.53

Net_Loss_Per_Common_Share_Tabl

Net Loss Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2015
Net Loss Per Common Share
Schedule of reconciliation of net loss per common share
		2015			2014
	Net loss available to common stockholders	$	(2,205,780	)	$	(396,331	)
	Income from discontinued operations	$	—		$	2,017,061
	Net loss per common share—basic:
	Net loss per common share from continuing operations	$	(0.05	)	$	(0.06	)
	Income per common share from discontinued operations	—			0.05
	Net loss per common share—basic	$	(0.05	)	$	(0.01	)
	Net loss per common share—diluted:
	Net loss per common share from continuing operations	$	(0.05	)	$	(0.06	)
	Income per common share from discontinued operations	—			0.05
	Net loss per common share—diluted	$	(0.05	)	$	(0.01	)
	Weighted average number of common shares:
	Basic	40,523,805			40,514,097
	Diluted	40,523,805			40,514,097

Derivative_Instruments_and_Hed1

Derivative Instruments and Hedging Activities (Tables)	3 Months Ended
	Mar. 31, 2015
Derivative Instruments and Hedging Activities
Schedule of losses (gains) on our hedging instruments have been classified as Discontinued operations included in the consolidated statements of operations
		Location of Loss Recognized in	Amount of Loss
			Recognized in Income on
			Derivatives
	Derivatives not designated as hedging instruments	Income on Derivatives	2015		2014
	Natural gas collar/swap settled positions	Discontinued operations	$	—	$	965,877
	Natural gas collar/swap unsettled positions	Discontinued operations	—		271,839
	Total loss		$	—	$	1,237,716

Income_Taxes_Tables

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2015
Income Taxes
Schedule of reconciliation of the effective tax rate to the statutory rate
	Amount computed using statutory rates	$	(255,007	)	34	%
	State income taxes—net of federal benefit	6,250			-0.83	%
	Valuation Allowance	235,718			-31.43	%
	Nondeductible items and other	19,289			-2.57	%
	Income tax provision	$	6,250		0.83	%

Series_A_Convertible_Redeemabl1

Series A Convertible Redeemable Preferred Stock (Tables)	3 Months Ended
	Mar. 31, 2015
Series A Convertible Redeemable Preferred Stock
Schedule of activity related to the Preferred Stock
		Dividend Period	Date Issued	Number of Shares	Balance
		(Three Months Ended)
	Balance on December 31, 2014			6,786,334	$	48,676,221
	Accretion of discount on Preferred Stock				897,773
	PIK dividend Issued for Preferred Stock	3/31/15	3/31/15	212,026	551,268
	Balance on March 31, 2015			6,998,360	$	50,125,262

Results_of_Discontinued_Operat2

Results of Discontinued Operations (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Revenues:
Gas sales	$9,678,375
Other	17,775
Total revenues	9,696,150
Expenses:
Lease operating expense	2,551,646
Compression and transportation expense	1,673,399
Production taxes	578,487
Depreciation, depletion and amortization	715,892
Losses on natural gas derivatives	1,237,716
Total operating expenses	6,757,140
Operating income (loss)	2,939,010
Interest expense	-923,511
Interest income	1,562
Income from discontinued operations	$2,017,061

Pro_Forma_Financial_Informatio2

Pro Forma Financial Information (Details) (USD $)	1 Months Ended	3 Months Ended
	31-May-14	Mar. 31, 2015	Mar. 31, 2014
Discontinued Operations
Loss from continuing operations		($756,270)	($1,168,205)
Net (loss) income		-756,270	848,856
Net (loss) income available to common stockholders		-2,205,780	-396,331
Net (loss) income per common share-basic		($0.05)	($0.01)
Net (loss) income per common share-diluted		($0.05)	($0.01)
Coalbed Methane Properties | Pro Forma
Discontinued Operations
Loss from continuing operations		-756,780	-1,168,205
Net (loss) income		-756,270	63,304,709
Net (loss) income available to common stockholders		-2,205,780	62,059,522
Net (loss) income per common share-basic		($0.05)	$1.53
Net (loss) income per common share-diluted		($0.05)	$1.53
Total gain on sale	$62,455,853

Net_Loss_Per_Common_Share_Deta

Net Loss Per Common Share (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net Loss Per Common Share
Net loss available to common stockholders	($2,205,780)	($396,331)
Income loss from discontinued operations		$2,017,061
Net loss per common share-basic:
Net loss per common share from continuing operations (in dollars per share)	($0.05)	($0.06)
Income per common share from discontinued operations		$0.05
Net loss per common share-basic	($0.05)	($0.01)
Net loss per common share-diluted:
Net loss per common share from continuing operations	($0.05)	($0.06)
Income (loss) per common share from discontinued operations		$0.05
Net loss per common share-diluted	($0.05)	($0.01)
Weighted average number of common shares:
Basic (in shares)	40,523,805	40,514,097
Diluted (in shares)	40,523,805	40,514,097

Net_Loss_Per_Common_Share_Deta1

Net Loss Per Common Share (Details 2) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Net Loss Per Common Share
Common Stock, Par or Stated Value Per Share	$0.00		$0.00
Preferred Stock, Par or Stated Value Per Share	$0.00		$0.00
Effect of anti-dilutive securities
Antidilutive securities excluded from diluted weighted average shares outstanding		47,600,246
Dilutive shares of preferred stock	50,639,091	6,188,032
Add back to Net loss available to common stockholders for Accretion of and dividends paid for Series A Convertible Redeemable Preferred Stock (in shares)	0	0
Accretion of discount on Series A Convertible Redeemable Preferred Stock	($897,773)	($644,744)
Dividends paid for Series A Convertible Redeemable Preferred Stock (cash and PIK)	$551,737	$600,443
Employee Stock Option
Effect of anti-dilutive securities
Antidilutive securities excluded from diluted weighted average shares outstanding		1,555,508
Restricted Stock Units R S U
Effect of anti-dilutive securities
Antidilutive securities excluded from diluted weighted average shares outstanding		135,343
Restricted stock
Effect of anti-dilutive securities
Antidilutive securities excluded from diluted weighted average shares outstanding		6,998,360

Derivative_Instruments_and_Hed2

Derivative Instruments and Hedging Activities (Details) (Commodity Contract)	3 Months Ended
	Mar. 31, 2015
Commodity Contract
Derivative instruments and hedging activities
Period of derivative contracts	2 years

Derivative_Instruments_and_Hed3

Derivative Instruments and Hedging Activities (Details 2) (Nondesignated, USD $)	3 Months Ended
	Mar. 31, 2014
The Effect of Derivative Instruments on the Unaudited Consolidated Statements of Operations and Other Comprehensive Income
Discontinued operations	$1,237,716
Natural gas collar/swap settled positions
The Effect of Derivative Instruments on the Unaudited Consolidated Statements of Operations and Other Comprehensive Income
Discontinued operations	965,877
Natural gas collar/swap unsettled positions
The Effect of Derivative Instruments on the Unaudited Consolidated Statements of Operations and Other Comprehensive Income
Discontinued operations	$271,839

LongTerm_Debt_Details

Long-Term Debt (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Long-term debt
Payments made during the period	$1,550,000
Credit Agreement
Long-term debt
Amount borrowed during the period	0
Payments made during the period	$1,600,000
Average interest rate (as a percent)	4.02%

Income_Taxes_Details

Income Taxes (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Millions, unless otherwise specified
Net operating loss carryforward
Recorded valuation allowances	$61.10
Valuation allowance related to U.S. operations	48.2
Federal
Net operating loss carryforward
Loss carry forward	120.2	119.4
Federal | Capital loss carryforward | Hudson's Hope Gas, Ltd.
Net operating loss carryforward
Loss carry forward		33.9
State
Net operating loss carryforward
Loss carry forward	133.3	133.3
Canada Energy Partners Inc | Federal | Capital loss carryforward
Net operating loss carryforward
Loss carry forward		0.2
Canada Energy Partners Inc | Federal | Capital loss carryforward | Hudson's Hope Gas, Ltd.
Net operating loss carryforward
Valuation allowance related to the capital loss carryforward	$12.90

Income_Taxes_Details_2

Income Taxes (Details 2) (USD $)	3 Months Ended
	Mar. 31, 2015
Income tax expense reconciliation
Amount computed using statutory rates	($255,007)
State income taxes - net of federal benefit	6,250
Valuation Allowance	235,718
Nondeductible items and other	19,289
Income tax provision	$6,250
Income tax expense reconciliation
Amount computed using statutory rates (as a percent)	34.00%
State income taxes - net of federal benefit (as a percent)	-0.83%
Valuation allowance (as a percent)	-31.43%
Nondeductible items and other (as a percent)	-2.57%
Income tax provision (as a percent)	0.83%

Common_Stock_Details

Common Stock (Details)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2015	Dec. 31, 2014
Common Stock
Common stock, shares issued		40,523,805	40,523,805
Common stock, shares outstanding		40,513,373	40,513,373
Treasury stock (in shares)		10,432	10,432
Restricted stock
Common Stock
Forfeited and canceled	153
Unvested and canceled	2,724

Series_A_Convertible_Redeemabl2

Series A Convertible Redeemable Preferred Stock (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Series A Convertible Redeemable Preferred Stock
Number of shares issued	6,998,360	6,786,334
Number of shares outstanding	6,998,360	6,786,334
Activity related to the preferred stock (Balance)
Balance at the beginning of the period	$48,676,221
Balance at the end of the period	50,125,262
Conversion of Stock, Shares Converted	53,833,538
Redeemable Convertible Preferred Stock
Series A Convertible Redeemable Preferred Stock
Number of shares issued	6,998,360	6,786,334
Number of shares outstanding	6,998,360	6,786,334
Additional shares reserved for paid-in-kind dividends	403,472
Activity related to common stock (Number of Shares)
Balance at the beginning of the period (in shares)	6,786,334
PIK Dividend Issued for Preferred Stock	212,026
Balance at the end of the period (in shares)	6,998,360
Activity related to the preferred stock (Balance)
Balance at the beginning of the period	48,676,221
Accretion of discount on Preferred Stock	897,773
PIK Dividend Issued for Preferred Stock	551,268
Balance at the end of the period	$50,125,262

Commitments_and_Contingencies_

Commitments and Contingencies (Details)	Mar. 31, 2015
	item
Commitments and Contingencies
Number of environmental or other regulatory matters, reasonably expected to result in a material liability	0