Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 08, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | RING ENERGY, INC. | |
Entity Central Index Key | 1,384,195 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | REI | |
Entity Common Stock, Shares Outstanding | 54,145,901 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash | $ 12,136,378 | $ 71,086,381 |
Accounts receivable | 8,010,885 | 3,453,238 |
Joint interest billing receivable | 845,448 | 454,461 |
Prepaid expenses and retainers | 419,796 | 226,835 |
Total Current Assets | 21,412,507 | 75,220,915 |
Properties and Equipment | ||
Oil and natural gas properties subject to amortization | 335,043,354 | 250,133,965 |
Inventory for property development | 1,877,327 | 1,582,427 |
Fixed assets subject to depreciation | 1,735,910 | 1,549,311 |
Total Properties and Equipment | 338,656,591 | 253,265,703 |
Accumulated depreciation, depletion and amortization | (49,957,597) | (41,347,152) |
Net Properties and Equipment | 288,698,994 | 211,918,551 |
Deferred Income Taxes | 19,549,961 | 20,051,908 |
Deferred Financing Costs | 270,684 | 406,025 |
Total Assets | 329,932,146 | 307,597,399 |
Current Liabilities | ||
Accounts payable | 24,523,864 | 9,099,391 |
Total Current Liabilities | 24,523,864 | 9,099,391 |
Asset retirement obligations | 8,434,710 | 7,957,035 |
Total Liabilities | 32,958,574 | 17,056,426 |
Stockholders' Equity | ||
Preferred stock - $0.001 par value; 50,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock - $0.001 par value; 150,000,000 shares authorized; 49,168,243 shares and 49,113,063 shares outstanding, respectively | 49,168 | 49,113 |
Additional paid-in capital | 336,843,882 | 335,197,845 |
Retained loss | (39,919,478) | (44,705,985) |
Total Stockholders' Equity | 296,973,572 | 290,540,973 |
Total Liabilities and Stockholders' Equity | $ 329,932,146 | $ 307,597,399 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares, Outstanding | 49,168,243 | 49,113,063 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Oil and Gas Revenues | $ 14,503,309 | $ 7,104,609 | $ 26,747,102 | $ 13,196,997 |
Costs and Operating Expenses | ||||
Oil and gas production costs | 3,514,375 | 2,200,109 | 6,219,746 | 4,690,543 |
Oil and gas production taxes | 691,174 | 344,035 | 1,274,438 | 643,306 |
Depreciation, depletion and amortization | 5,136,426 | 2,579,201 | 8,610,445 | 5,973,828 |
Ceiling test impairment | 0 | 25,451,988 | 0 | 46,864,074 |
Accretion expense | 173,573 | 124,976 | 310,749 | 234,354 |
General and administrative expense | 2,366,149 | 1,920,387 | 5,207,260 | 4,140,459 |
Total Costs and Operating Expenses | 11,881,697 | 32,620,696 | 21,622,638 | 62,546,564 |
Income (Loss) from Operations | 2,621,612 | (25,516,087) | 5,124,464 | (49,349,567) |
Other Income | ||||
Interest expense | 0 | (86,538) | 0 | (502,046) |
Interest income | 47,311 | 74,166 | 163,990 | 77,053 |
Net Other Income | 47,311 | (12,372) | 163,990 | (424,993) |
Income (Loss) before tax provision | 2,668,923 | (25,528,459) | 5,288,454 | (49,774,560) |
(Provision For) Benefit From Income Taxes | (758,160) | 9,586,959 | (2,098,410) | 18,558,016 |
Net Income (Loss) | $ 1,910,763 | $ (15,941,500) | $ 3,190,044 | $ (31,216,544) |
Basic Earnings (Loss) per Share | $ 0.04 | $ (0.41) | $ 0.06 | $ (0.90) |
Diluted Earnings (Loss) per Share | $ 0.04 | $ (0.41) | $ 0.06 | $ (0.90) |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 3,190,044 | $ (31,216,544) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation, depletion and amortization | 8,610,445 | 5,973,828 |
Ceiling test impairment | 0 | 46,864,074 |
Accretion expense | 310,749 | 234,354 |
Share-based compensation | 1,803,292 | 1,091,967 |
Deferred income tax provision (benefit) | 1,787,513 | (18,558,015) |
Excess tax deficiency (benefit) related to share-based compensation | 310,897 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | (4,948,634) | 417,610 |
Prepaid expenses and retainers | (57,620) | 3,475 |
Accounts payable | 7,424,473 | (7,778,590) |
Settlement of asset retirement obligation | (309,511) | (1,344) |
Net Cash Provided by (Used in) Operating Activities | 18,121,648 | (2,969,185) |
Cash Flows From Investing Activities | ||
Payments to purchase oil and natural gas properties | (24,727,390) | (1,804,590) |
Payments to develop oil and natural gas properties | (49,184,297) | (6,616,360) |
Purchase of inventory for development | (2,816,165) | 0 |
Purchase of equipment, vehicles and leasehold improvements | (186,599) | 0 |
Net Cash Used in Investing Activities | (76,914,451) | (8,420,950) |
Cash Flows From Financing Activities | ||
Amounts paid for registration statement for future offerings | (157,200) | 0 |
Proceeds from issuance of common stock | 0 | 61,074,997 |
Proceeds from issuance of notes payable | 0 | 5,000,000 |
Principal payments on revolving line of credit | 0 | (50,900,000) |
Proceeds from option exercise | 0 | 112,500 |
Net Cash Provided by (Used in) Financing Activities | (157,200) | 15,287,497 |
Net Decrease in Cash | (58,950,003) | 3,897,362 |
Cash at Beginning of Period | 71,086,381 | 4,431,350 |
Cash at End of Period | 12,136,378 | 8,328,712 |
Supplemental Cash Flow Information | ||
Cash paid for interest | 0 | 468,777 |
Noncash Investing and Financing Activities | ||
Asset retirement obligation incurred during development | 476,437 | 87,059 |
Use of inventory in property development | 2,521,265 | 0 |
Capitalized expenditures attributable to drilling projects financed through current liabilities | $ 8,000,000 | $ 0 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 1 BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Condensed Financial Statements Certain notes and other disclosures have been omitted from these interim financial statements. Therefore, these financial statements should be read in conjunction with the Company’s 2016 Annual Report on Form 10-K. Organization and Nature of Operations Use of Estimates Fair Measurements Fair Values of Financial Instruments Concentration of Credit Risk and Major Customer Approximately 91% of the Company’s accounts and joint interest receivables is from purchasers of oil and gas. Oil and gas sales are generally unsecured. The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectable. Accordingly, no allowance for doubtful accounts has been provided at June 30, 2017. The Company also has a joint interest billing receivable. Joint interest billing receivables are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself. Oil and Gas Properties All capitalized costs of oil and gas properties, plus estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves as determined by independent engineers. The Company evaluates oil and gas properties for impairment at least annually. Amortization expense for the three and six months ended June 30, 2017, was $5,136,426 and $8,610,445, respectively, based on depletion at the rate of $4.97 per barrel of oil equivalent compared to $2,579,201 and $5,973,828, respectively, for the three and six months ended June 30, 2016, based on depletion at the rate of $12.85 per barrel of oil equivalent. These amounts include $76,773 and $149,478, respectively, of depreciation for the three and six months ended June 30, 2017 compared to $78,878 and $157,756, respectively, of depreciation for the three and six months ended June 30, 2016, respectively. Write-down of Oil and Gas Properties The Company did not have any write-downs related to the full cost ceiling limitation during the three or six months ended June 30, 2017. During the three and six months ended June 30, 2016, the Company recorded $25,451,988 and $46,864,074, respectively, non-cash write-down of the carrying value of the Company’s proved oil and gas properties as a result of ceiling test limitations, which is reflected as Ceiling test impairment in the accompanying Statements of Operations. Office Equipment Asset Retirement Obligation Revenue Recognition Share-Based Employee Compensation Share-Based Compensation to Non-Employees Reclassifications Recently Adopted Accounting Pronouncements Compensation Stock Compensation (Topic 718.) Recent Accounting Pronouncements In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, Statement of Cash Flows (Topic 230). ASU 2016-15 seeks to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The adoption of this guidance will not have a material impact on the Company’s statement of cash flows. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 841). For lessees, the amendments in this update require that for all leases not considered to be short term, a company recognize both a lease liability and right-of-use asset on its balance sheet, representing the obligation to make payments and the right to use or control the use of a specified asset for the lease term. The amendments in this update are effective for annual periods beginning after December 15, 2018. Upon adoption the Company will begin reflecting long-term future lease payments as both an asset and a liability on its balance sheet. The adoption of this guidance will not have a material impact on the Company’s financial statements. In May 2014, the FASB and the International Accounting Standards Board (IASB) issued a joint revenue recognition standard, ASU 2014-09. The new standard removes inconsistencies in existing standards, changes the way companies recognize revenue from contracts with customers, and increases disclosure requirements. The codification was amended through additional ASUs and, as amended, requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The guidance is effective for annual and interim periods beginning after December 15, 2017. The standard is required to be adopted using either the full retrospective approach, with all prior periods presented adjusted, or the modified retrospective approach, with a cumulative adjustment to retained earnings on the opening balance sheet. The Company will adopt the new standard utilizing the modified retrospective approach. Upon preliminary evaluation, the Company does not expect the adoption of this ASU to have a material impact on its financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. Basic and Diluted Earnings (Loss) per Share |
EARNINGS (LOSS) PER SHARE INFOR
EARNINGS (LOSS) PER SHARE INFORMATION | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 2 EARNINGS (LOSS) PER SHARE INFORMATION Stock options to purchase 582,500 602,500 2,766,600 For The Three Months For The Six Months Ended June 30, Ended June 30, 2017 2016 2017 2016 Net Income (Loss) $ 1,910,763 $ (15,941,500) $ 3,190,044 $ (31,216,544) Basic Weighted-Average Shares Outstanding 49,156,895 38,625,307 49,135,929 34,509,833 Effect of dilutive securities: Stock options 1,317,502 - 1,298,561 - Diluted Weighted-Average Shares Outstanding 50,474,397 38,625,307 50,434,490 34,509,833 Basic Earnings (Loss) per Share $ 0.04 $ (0.41) $ 0.06 $ (0.90) Diluted Earnings (Loss) per Share $ 0.04 $ (0.41) $ 0.06 $ (0.90) |
REVOLVING LINE OF CREDIT
REVOLVING LINE OF CREDIT | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 3 REVOLVING LINE OF CREDIT On July 1, 2014, the Company entered into a Credit Agreement with SunTrust Bank, as lender, issuing bank and administrative agent for several banks and other financial institutions and lenders (“Administrative Agent”), which was amended on May 18, 2016, June 26, 2015 and July 24, 2014 (as amended, the “Credit Facility”). The Credit Facility provides for a senior secured revolving credit facility with a maximum borrowing amount of $ 500 June 26, 2020 In May 2016, the borrowing base (the “Borrowing Base”) was reduced from the initial $ 100 60 The Borrowing Base will be redetermined semi-annually on each May 1 and November 1, beginning November 1, 2015. The Credit Facility allows for Eurodollar Loans and Base Rate Loans (each as defined in the Credit Facility). The interest rate on each Eurodollar Loan will be the adjusted LIBOR for the applicable interest period plus a margin between 1.75 2.75 0.5 1.00 2.75 3.75 The Credit Facility contains certain covenants, which, among other things, require the maintenance of (i) a total leverage ratio of not more than 4.0 to 1.0 and (ii) a minimum current ratio of 1.0 to 1.0. The Credit Facility also contains other customary affirmative and negative covenants and events of default. As of June 30, 2017, no amounts were outstanding on the Credit Facility. We are in compliance with all covenants contained in the Credit Facility. |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | NOTE 4 ASSET RETIREMENT OBLIGATION The Company provides for the obligation to plug and abandon oil and gas wells at the dates properties are either acquired or the wells are drilled. The asset retirement obligation is adjusted each quarter for any liabilities incurred or settled during the period, accretion expense and any revisions made to the estimated cash flows. The asset retirement obligation incurred at the time of drilling was computed using the annual credit-adjusted risk-free discount rate at the applicable dates. Balance, December 31, 2016 $ 7,957,035 Liabilities incurred 476,437 Liabilities settled (309,511) Accretion expense 310,749 Balance, June 30, 2017 $ 8,434,710 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 5 STOCKHOLDERS’ EQUITY Common Stock Issued in Option Exercise During the six months ended June 30, 2016, the Company issued 25,000 4.50 112,500 Also during the six months ended June 30, 2016, the Company issued 119 shares of common stock as the result of the cashless exercise of the 150 options with an exercise price of $2.00 per share. The Company withheld 31 300 During the six months ended June 30, 2017, the Company issued 55,180 shares of common stock as the result of option exercises. Stock price on Options Exercise Shares Shares date of exercise Aggregate value of exercised price ($) issued retained ($) shares retained ($) 4,100 2.00 3,491 609 13.47 8,200.00 60,000 2.00 50,156 9,844 12.19 120,000.00 200 8.00 116 84 13.75 1,600.00 1,500 10.89 1,188 312 13.75 16,335.00 600 5.25 229 371 13.75 3,150.00 Totals 66,400 55,180 11,220 149,285.00 Average 2.25 13.31 |
EMPLOYEE STOCK OPTIONS
EMPLOYEE STOCK OPTIONS | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 6 EMPLOYEE STOCK OPTIONS Compensation expense charged against income for share-based awards during the three and six months ended June 30, 2017, was $ 812,082 1,803,292 507,642 1,091,967 e three and six months ended June 30, 2016. These amounts are included in general and administrative expense in the accompanying financial statements. In 2011, the Board of Directors and stockholders approved and adopted a long-term incentive plan which allowed for the issuance of up to 2,500,000 5,000,000 1,378,600 On January 13, 2016, upon the recommendation of the Compensation Committee, Ring rescinded the option awards granted to its employees and directors on December 9, 2015 (other than Messrs. McCabe and Rochford, who are the members of the Compensation Committee) as the result of a significant decline in the stock price and re-issued the option awards as of that date to meet the goals and objectives of the Company’s equity based compensation program. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model and using certain assumptions. The expected volatility is based on the historical price volatility of the Company’s common stock. The Company uses the simplified method for estimating the expected term for options granted. Under the simplified method, the expected term is equal to the midpoint between the vesting period and the contractual term of the stock option. The risk-free interest rate represents the U.S. Treasury bill rate for the expected life of the related stock options. The dividend yield represents the Company’s anticipated cash dividend over the expected life of the stock options. 2016 Weighted-average volatility 100 % Expected dividends 0 Expected term (in years) 6.5 Risk-free interest rate 1.51 % There were no options granted during the six months ended June 30, 2017. Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding, December 31, 2016 3,362,350 $ 5.90 Exercised (66,400) $ 2.25 Forfeited (11,450) $ 10.12 Outstanding, June 30, 2017 3,284,500 $ 5.96 6.5 Years $ 23,161,325 Exercisable, June 30, 2017 1,976,800 $ 4.18 5.4 Years The intrinsic value was calculated using the closing price on June 30, 2017 of $ 13.00 5,433,037 2.5 668,967 |
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 7 CONTINGENCIES AND COMMITMENTS Standby Letters of Credit 280,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 8 SUBSEQUENT EVENTS On July 21, 2017, the Company completed an underwritten public offering of 4,977,658 12.50 62.2 59.2 |
BASIS OF PRESENTATION AND SIG14
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Condensed Financial Statements Certain notes and other disclosures have been omitted from these interim financial statements. Therefore, these financial statements should be read in conjunction with the Company’s 2016 Annual Report on Form 10-K. |
Organization And Nature Of Operations [Policy Text Block] | Organization and Nature of Operations |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Fair Value Measurement, Policy [Policy Text Block] | Fair Measurements |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Values of Financial Instruments |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk and Major Customer Approximately 91% of the Company’s accounts and joint interest receivables is from purchasers of oil and gas. Oil and gas sales are generally unsecured. The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectable. Accordingly, no allowance for doubtful accounts has been provided at June 30, 2017. The Company also has a joint interest billing receivable. Joint interest billing receivables are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself. |
Oil and Gas Properties Policy [Policy Text Block] | Oil and Gas Properties All capitalized costs of oil and gas properties, plus estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves as determined by independent engineers. The Company evaluates oil and gas properties for impairment at least annually. Amortization expense for the three and six months ended June 30, 2017, was $5,136,426 and $8,610,445, respectively, based on depletion at the rate of $4.97 per barrel of oil equivalent compared to $2,579,201 and $5,973,828, respectively, for the three and six months ended June 30, 2016, based on depletion at the rate of $12.85 per barrel of oil equivalent. These amounts include $76,773 and $149,478, respectively, of depreciation for the three and six months ended June 30, 2017 compared to $78,878 and $157,756, respectively, of depreciation for the three and six months ended June 30, 2016, respectively. Write-down of Oil and Gas Properties The Company did not have any write-downs related to the full cost ceiling limitation during the three or six months ended June 30, 2017. During the three and six months ended June 30, 2016, the Company recorded $25,451,988 and $46,864,074, respectively, non-cash write-down of the carrying value of the Company’s proved oil and gas properties as a result of ceiling test limitations, which is reflected as Ceiling test impairment in the accompanying Statements of Operations. |
Property, Plant and Equipment, Policy [Policy Text Block] | Office Equipment |
Asset Retirement Obligations, Policy [Policy Text Block] | Asset Retirement Obligation |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-Based Employee Compensation |
Share-based Compensation, Option and Incentive Plans, Director Policy [Policy Text Block] | Share-Based Compensation to Non-Employees |
Reclassification, Policy [Policy Text Block] | Reclassifications |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements Compensation Stock Compensation (Topic 718.) Recent Accounting Pronouncements In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, Statement of Cash Flows (Topic 230). ASU 2016-15 seeks to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The adoption of this guidance will not have a material impact on the Company’s statement of cash flows. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 841). For lessees, the amendments in this update require that for all leases not considered to be short term, a company recognize both a lease liability and right-of-use asset on its balance sheet, representing the obligation to make payments and the right to use or control the use of a specified asset for the lease term. The amendments in this update are effective for annual periods beginning after December 15, 2018. Upon adoption the Company will begin reflecting long-term future lease payments as both an asset and a liability on its balance sheet. The adoption of this guidance will not have a material impact on the Company’s financial statements. In May 2014, the FASB and the International Accounting Standards Board (IASB) issued a joint revenue recognition standard, ASU 2014-09. The new standard removes inconsistencies in existing standards, changes the way companies recognize revenue from contracts with customers, and increases disclosure requirements. The codification was amended through additional ASUs and, as amended, requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The guidance is effective for annual and interim periods beginning after December 15, 2017. The standard is required to be adopted using either the full retrospective approach, with all prior periods presented adjusted, or the modified retrospective approach, with a cumulative adjustment to retained earnings on the opening balance sheet. The Company will adopt the new standard utilizing the modified retrospective approach. Upon preliminary evaluation, the Company does not expect the adoption of this ASU to have a material impact on its financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. |
Earnings Per Share, Policy [Policy Text Block] | Basic and Diluted Earnings (Loss) per Share |
EARNINGS (LOSS) PER SHARE INF15
EARNINGS (LOSS) PER SHARE INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share Basic And Diluted [Table Text Block] | For The Three Months For The Six Months Ended June 30, Ended June 30, 2017 2016 2017 2016 Net Income (Loss) $ 1,910,763 $ (15,941,500) $ 3,190,044 $ (31,216,544) Basic Weighted-Average Shares Outstanding 49,156,895 38,625,307 49,135,929 34,509,833 Effect of dilutive securities: Stock options 1,317,502 - 1,298,561 - Diluted Weighted-Average Shares Outstanding 50,474,397 38,625,307 50,434,490 34,509,833 Basic Earnings (Loss) per Share $ 0.04 $ (0.41) $ 0.06 $ (0.90) Diluted Earnings (Loss) per Share $ 0.04 $ (0.41) $ 0.06 $ (0.90) |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations [Table Text Block] | Changes in the asset retirement obligation were as follows: Balance, December 31, 2016 $ 7,957,035 Liabilities incurred 476,437 Liabilities settled (309,511) Accretion expense 310,749 Balance, June 30, 2017 $ 8,434,710 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table presents the details of those exercises: Stock price on Options Exercise Shares Shares date of exercise Aggregate value of exercised price ($) issued retained ($) shares retained ($) 4,100 2.00 3,491 609 13.47 8,200.00 60,000 2.00 50,156 9,844 12.19 120,000.00 200 8.00 116 84 13.75 1,600.00 1,500 10.89 1,188 312 13.75 16,335.00 600 5.25 229 371 13.75 3,150.00 Totals 66,400 55,180 11,220 149,285.00 Average 2.25 13.31 |
EMPLOYEE STOCK OPTIONS (Tables)
EMPLOYEE STOCK OPTIONS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | The following are the assumptions used to determine the fair value of options granted during the six months ended June 30, 2016: 2016 Weighted-average volatility 100 % Expected dividends 0 Expected term (in years) 6.5 Risk-free interest rate 1.51 % |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the stock option activity as of June 30, 2017, and changes during the six months then ended is as follows: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding, December 31, 2016 3,362,350 $ 5.90 Exercised (66,400) $ 2.25 Forfeited (11,450) $ 10.12 Outstanding, June 30, 2017 3,284,500 $ 5.96 6.5 Years $ 23,161,325 Exercisable, June 30, 2017 1,976,800 $ 4.18 5.4 Years |
BASIS OF PRESENTATION AND SIG19
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)$ / bbl | Jun. 30, 2016USD ($)$ / bbl | Jun. 30, 2017USD ($)$ / bbl | Jun. 30, 2016USD ($)$ / bbl | |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Depreciation | $ 76,773 | $ 78,878 | $ 149,478 | $ 157,756 |
Amortization expense | $ 5,136,426 | $ 2,579,201 | $ 8,610,445 | $ 5,973,828 |
Depletion At The Rate Per Barrel | $ / bbl | 4.97 | 12.85 | 4.97 | 12.85 |
Estimated Present Value Of Future Net Revenues From Proved Reserves Discounted At An Interest Rate | 10.00% | |||
Percentage Of Accounts Receivables | 91.00% | 91.00% | ||
Impairment of Oil and Gas Properties | $ 25,451,988 | $ 46,864,074 | ||
Accounting Standards Update 2016-09 [Member] | Adjustments To Deferred Income Taxes And Retained Loss [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 1,596,463 | $ 1,596,463 | ||
Accounting Standards Update 2016-09 [Member] | Adjustments To Income Tax Provision [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ (105,963) | $ 310,897 | ||
Maximum [Member] | Office Equipment [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 7 years | |||
Minimum [Member] | Office Equipment [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Sales Revenue, Net [Member] | Customer One [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 68.00% | |||
Sales Revenue, Net [Member] | Customer Two [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 27.00% | |||
Accounts Receivable [Member] | Customer One [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 86.00% | |||
Accounts Receivable [Member] | Customer Two [Member] | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 11.00% |
EARNINGS (LOSS) PER SHARE INF20
EARNINGS (LOSS) PER SHARE INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net Income (Loss) | $ 1,910,763 | $ (15,941,500) | $ 3,190,044 | $ (31,216,544) |
Basic Weighted-Average Shares Outstanding | 49,156,895 | 38,625,307 | 49,135,929 | 34,509,833 |
Effect of dilutive securities: | ||||
Stock options | 1,317,502 | 0 | 1,298,561 | 0 |
Diluted Weighted-Average Shares Outstanding | 50,474,397 | 38,625,307 | 50,434,490 | 34,509,833 |
Basic Earnings (Loss) per Share | $ 0.04 | $ (0.41) | $ 0.06 | $ (0.90) |
Diluted Earnings (Loss) per Share | $ 0.04 | $ (0.41) | $ 0.06 | $ (0.90) |
EARNINGS (LOSS) PER SHARE INF21
EARNINGS (LOSS) PER SHARE INFORMATION (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 582,500 | 2,766,600 | 602,500 | 2,766,600 |
REVOLVING LINE OF CREDIT (Detai
REVOLVING LINE OF CREDIT (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Jul. 31, 2014 | Jun. 30, 2017 | May 01, 2016 | |
Line of Credit Facility [Line Items] | |||
Leverage Ratio, Total | 4.0 to 1.0 | ||
Minimum Leverage Ratio Current | 1.0 to 1.0 | ||
Debt Instrument, Redemption, Description | The Borrowing Base will be redetermined semi-annually on each May 1 and November 1, beginning November 1, 2015. | ||
LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Interest Rate During Period | 1.00% | ||
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Maturity Date | Jun. 26, 2020 | ||
Line of Credit Facility, Interest Rate During Period | 0.50% | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 | ||
Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100 | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.75% | ||
Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60 | ||
Debt Instrument, Interest Rate, Effective Percentage | 2.75% |
ASSET RETIREMENT OBLIGATION (De
ASSET RETIREMENT OBLIGATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Asset Retirement Obligation [Line Items] | ||||
Balance, December 31, 2016 | $ 7,957,035 | |||
Liabilities incurred | 476,437 | |||
Liabilities settled | (309,511) | |||
Accretion expense | $ 173,573 | $ 124,976 | 310,749 | $ 234,354 |
Balance, June 30, 2017 | $ 8,434,710 | $ 8,434,710 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Options exercised | 66,400 |
Exercise price | $ / shares | $ 2.25 |
Shares issued | 55,180 |
Shares retained | 11,220 |
Stock price on date of exercise | $ / shares | $ 13.31 |
Aggregate value of shares retained | $ | $ 149,285 |
Exercised Option 1 [Member] | |
Options exercised | 4,100 |
Exercise price | $ / shares | $ 2 |
Shares issued | 3,491 |
Shares retained | 609 |
Stock price on date of exercise | $ / shares | $ 13.47 |
Aggregate value of shares retained | $ | $ 8,200 |
Exercised Option 2 [Member] | |
Options exercised | 60,000 |
Exercise price | $ / shares | $ 2 |
Shares issued | 50,156 |
Shares retained | 9,844 |
Stock price on date of exercise | $ / shares | $ 12.19 |
Aggregate value of shares retained | $ | $ 120,000 |
Exercised Option 3 [Member] | |
Options exercised | 200 |
Exercise price | $ / shares | $ 8 |
Shares issued | 116 |
Shares retained | 84 |
Stock price on date of exercise | $ / shares | $ 13.75 |
Aggregate value of shares retained | $ | $ 1,600 |
Exercised Option 4 [Member] | |
Options exercised | 1,500 |
Exercise price | $ / shares | $ 10.89 |
Shares issued | 1,188 |
Shares retained | 312 |
Stock price on date of exercise | $ / shares | $ 13.75 |
Aggregate value of shares retained | $ | $ 16,335 |
Exercised Option 5 [Member] | |
Options exercised | 600 |
Exercise price | $ / shares | $ 5.25 |
Shares issued | 229 |
Shares retained | 371 |
Stock price on date of exercise | $ / shares | $ 13.75 |
Aggregate value of shares retained | $ | $ 3,150 |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Class of Stock [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 55,180 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 2.25 | |
Exercise Price 4.50 [Member] | ||
Class of Stock [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 25,000 | |
Stock Issued During Period, Value, Stock Options Exercised | $ 112,500 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 4.50 | |
Exercise Price 2.00 [Member] | ||
Class of Stock [Line Items] | ||
Stock Issued During Period Shares Stock Options Cashless Exercised | 150 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 119 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 2 | |
Exercise Price 9.72 [Member] | ||
Class of Stock [Line Items] | ||
Stock Options Exercise Shares Held Shares | 31 | |
Stock Options Exercise Shares Held Value | $ 300 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 9.72 |
EMPLOYEE STOCK OPTIONS (Details
EMPLOYEE STOCK OPTIONS (Details) | 6 Months Ended |
Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average volatility | 100.00% |
Expected dividends | 0.00% |
Expected term (in years) | 6 years 6 months |
Risk-free interest rate | 1.51% |
EMPLOYEE STOCK OPTIONS (Detai27
EMPLOYEE STOCK OPTIONS (Details 1) | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Exercised | shares | (55,180) |
Weighted-Average Exercise Price, Exercised | $ / shares | $ 2.25 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding, December 31, 2016 | shares | 3,362,350 |
Shares, Exercised | shares | (66,400) |
Shares, Forfeited | shares | (11,450) |
Shares, Outstanding, Jun 30, 2017 | shares | 3,284,500 |
Shares, Exercisable, Jun 30, 2017 | shares | 1,976,800 |
Weighted-Average Exercise Price, Outstanding, December 31, 2016 | $ / shares | $ 5.90 |
Weighted-Average Exercise Price, Exercised | $ / shares | 2.25 |
Weighted-Average Exercise Price, Forfeited | $ / shares | 10.12 |
Weighted-Average Exercise Price, Outstanding, Jun 30, 2017 | $ / shares | 5.96 |
Weighted-Average Exercise Price, Exercisable, Jun 30, 2017 | $ / shares | $ 4.18 |
Weighted Average Remaining Contractual Term, Outstanding, Jun 30, 2017 | 6 years 6 months |
Weighted Average Remaining Contractual Term, Exercisable, Jun 30, 2017 | 5 years 4 months 24 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 23,161,325 |
EMPLOYEE STOCK OPTIONS (Detai28
EMPLOYEE STOCK OPTIONS (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2013 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,378,600 | 1,378,600 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 5,433,037 | $ 5,433,037 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 6 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 13 | $ 13 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 668,967 | |||||
Compensation Expenses Charged Against Income For Share Based Awards Included In General And Administrative Expenses | $ 812,082 | $ 507,642 | $ 1,803,292 | $ 1,091,967 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,500,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 5,000,000 |
CONTINGENCIES AND COMMITMENTS (
CONTINGENCIES AND COMMITMENTS (Details Textual) | Jun. 30, 2017USD ($) |
Standby Letters of Credit [Member] | |
Loss Contingencies [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 280,000 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended | |
Jul. 21, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Subsequent Event [Line Items] | |||
Share Price | $ 13.31 | ||
Proceeds from Issuance of Common Stock | $ 0 | $ 61,074,997 | |
Subsequent Event [Member] | Underwritten Public Offering [Member] | |||
Subsequent Event [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 4,977,658 | ||
Share Price | $ 12.50 | ||
Proceeds from Issuance of Common Stock | $ 59.2 | ||
Stock Issued During Period, Value, New Issues | $ 62.2 |