Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Sep. 30, 2018 | Nov. 12, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SSN | |
Entity Registrant Name | Samson Oil & Gas LTD | |
Entity Central Index Key | 1,404,079 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 3,283,000,444 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 2,492,749 | $ 1,376,676 |
Accounts receivable | 2,581,153 | 1,759,461 |
Prepayments | 137,230 | 137,342 |
Oil inventory | 219,288 | 219,288 |
Oil and gas properties held for sale | 28,707,047 | 28,675,890 |
Total current assets | 34,137,467 | 32,168,657 |
PROPERTY, PLANT AND EQUIPMENT, AT COST | ||
Oil and gas properties, successful efforts method of accounting, less accumulated depreciation, depletion and impairment of $15,991,616 and $15,049,015 at December 31, 2016 and June 30, 2016, respectively | 1,735,852 | 1,744,951 |
Other property and equipment, net of accumulated depreciation and amortization of $647,467 and $573,995 at December 31, 2016 and June 30, 2016, respectively | 192,908 | 242,822 |
Net property, plant and equipment | 1,928,760 | 1,987,773 |
OTHER NON CURRENT ASSETS | ||
Restricted cash - bonding | 450,000 | 450,000 |
Deferred tax asset | 732,056 | 732,056 |
Other | 133,464 | 134,644 |
TOTAL ASSETS | 37,381,747 | 35,473,130 |
CURRENT LIABILITIES | ||
Accounts payable | 10,067,842 | 8,383,570 |
Accruals | 459,924 | 1,088,338 |
Provision for annual leave | 243,808 | 250,826 |
Asset retirement obligations associated with assets for sale | 2,509,981 | 2,509,981 |
Credit facility | 23,834,749 | 23,867,557 |
Fair value of derivative instruments | 877,310 | 1,210,795 |
Total current liabilities | 37,993,614 | 37,311,067 |
NON CURRENT LIABILITIES | ||
Asset retirement obligations | 829,687 | 834,131 |
TOTAL LIABILITIES | 38,823,301 | 38,145,198 |
STOCKHOLDERS' EQUITY - nil par value | ||
3,282,860,301(equivalent to 16,414,301ADR's) and 3,215,854,701 (equivalent to 16,079,273 ADR's) ordinary shares issued and outstanding at December 31, 2016 and June 30, 2016, respectively | 106,743,167 | 106,743,167 |
Accumulated other comprehensive income | 876,417 | 846,556 |
Accumulated deficit | (109,061,138) | (110,261,791) |
Total stockholders' equity | (1,441,554) | (2,672,068) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 37,381,747 | $ 35,473,130 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets [Abstract] | |||
Other property and equipment, net of accumulated depreciation and amortization | $ 737,896 | $ 758,803 | |
Oil and gas properties, successful efforts method of accounting, less accumulated depreciation, depletion and impairment | $ 12,622,572 | $ 12,606,491 | |
Common stock, par value | $ 0 | ||
Common stock, shares issued | 16,415,002 | 16,415,002 | 3,283,000,444 |
Common stock, shares issued ADR | 3,283,000,444 | ||
Common stock, shares outstanding ADR | 16,415,002 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive Income (Loss) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
REVENUES AND OTHER INCOME: | ||
Interest income | $ 418 | $ 58 |
Other | 178,658 | |
TOTAL REVENUE AND OTHER INCOME | 284,635 | 284,179 |
EXPENSES: | ||
Lease operating expense | (101,645) | (24,191) |
Depletion, depreciation and amortization | (28,043) | (71,709) |
Impairment expense | (40,856) | |
Exploration and evaluation expenditure | (28,778) | (3,173) |
Accretion of asset retirement obligations | (8,521) | (12,026) |
Loss on derivative instruments | (26,980) | (667,395) |
General and administrative | (836,303) | (1,359,287) |
TOTAL EXPENSES | (1,030,270) | (2,178,637) |
Loss from operations | (745,635) | (1,894,458) |
Income tax benefit | ||
Net (loss) from continuing operations | (745,635) | (1,894,458) |
Gain from discontinued operations | 1,946,288 | 151,274 |
Net gain | 1,200,653 | (1,743,184) |
OTHER COMPREHENSIVE GAIN (LOSS) [Abstract] | ||
Foreign Currency Translation gain/( loss) | 29,861 | (1,228) |
Total comprehensive loss for the period | $ 1,230,514 | $ (1,744,412) |
Net gain/(loss) per ordinary share from operations: | ||
Basic - cents per share | $ (0.02) | $ (0.06) |
Diluted - cents per share | (0.02) | (0.06) |
Net earnings per common share from discontinued operations: | ||
Basic - cents per share | 0.06 | 0.01 |
Diluted - cents per share | 0.06 | 0.01 |
Net earnings per common share from operations: | ||
Basic - cents per share | 0.04 | (0.05) |
Diluted - cents per share | $ 0.04 | $ (0.05) |
Weighted average ordinary shares outstanding: | ||
Basic | 3,283,000,444 | 3,283,000,444 |
Diluted | 3,283,000,444 | 3,283,000,444 |
Oil [Member] | ||
REVENUES AND OTHER INCOME: | ||
Sales | $ 275,848 | $ 97,617 |
Gas [Member] | ||
REVENUES AND OTHER INCOME: | ||
Sales | 8,322 | 7,846 |
Other Liquids [Member] | ||
REVENUES AND OTHER INCOME: | ||
Sales | $ 47 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders' Equity - 3 months ended Sep. 30, 2018 - USD ($) | Ordinary Shares [Member] | Retained Earnings/(Accumulated Deficit) [Member] | Other Comprehensive Income (Loss) [Member] | Total |
Balance at Jun. 30, 2018 | $ 106,743,167 | $ (110,261,791) | $ 846,556 | $ (2,672,068) |
Net loss | 1,200,653 | 1,200,653 | ||
Foreign Currency Translation, net tax of $nil | 29,861 | |||
Total comprehensive loss for the period | 1,200,653 | 29,861 | 1,230,514 | |
Balance at Sep. 30, 2018 | $ 106,743,167 | $ (109,061,138) | $ 876,417 | $ (1,441,554) |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical) | 3 Months Ended |
Sep. 30, 2017USD ($) | |
Consolidated Statements Of Changes In Stockholders' Equity [Abstract] | |
Foreign currency translation, tax | $ 0 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Jun. 30, 2018 | |
Cash flows (used in)/provided by operating activities | ||
Receipts from customers | $ 469,598 | $ 445,199 |
Proceeds from/(Payments for) derivative instruments | (510,326) | (125,815) |
Payments to suppliers & employees | (883,459) | (403,174) |
Interest received | 11 | 58 |
Interest paid | ||
Net cash flows provided by operating activities | (924,176) | (83,732) |
Cash flows from investing activities | ||
Proceeds from sale of oil and gas properties | ||
Payments for plant & equipment | (4,060) | |
Payments for exploration and evaluation | (28,778) | (2,671) |
Payments for oil and gas properties | (6,389) | (13,927) |
Net cash flows used in investing activities | (35,167) | (20,658) |
Cash flows from financing activities | ||
Proceeds from borrowings | ||
Repayment of borrowings | ||
Net cash flows (used in)/ provided by financing activities | ||
Net increase/(decrease) in cash and cash equivalents | (959,343) | (104,390) |
Cash and cash equivalents at the beginning of the fiscal period | 1,376,676 | 628,778 |
Effects of exchange rate changes on cash and cash equivalents | (4,152) | |
Cash and cash equivalents at end of fiscal period | $ 2,492,749 | $ 1,376,676 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Dec. 31, 2017 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation These Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting. All adjustments which are normal and recurring by nature, in the opinion of management, necessary for fair statement of Samson Oil & Gas Limited’s (the “Company”) Consolidated Financial Statements have been included herein. Interim results are not necessarily indicative of expected annual results because of the impact of fluctuations in prices received for oil and natural gas, as well as other factors. In the course of preparing the Consolidated Financial Statements, management makes various assumptions, judgments and estimates to determine the reported amounts of assets, liabilities, revenues and expenses, and in the disclosures of commitments and contingencies. Changes in these assumptions, judgments and estimates will occur as a result of the passage of time and the occurrence of future events, and, accordingly, actual results could differ from amounts previously established. The Company’s Consolidated Financial Statements have been prepared on a basis consistent with the accounting principles and policies reflected in the Company’s audited financial statements as of and for the year ended June 30, 2018. The year-end Consolidated Balance Sheet presented herein was derived from audited Consolidated Financial Statements, but does not include all disclosures required by GAAP. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in the Company’s latest annual report (“Form 10-K”). Accruals. Accrued liabilities at June 30, 2018 and September 30, 2018 consist primarily of estimates for goods and services received but not yet invoiced. Prepayments. Prepayments at June 30, 2018 and September 30, 2018 include tubing and chemicals and other subscription costs paid in advance for the year. Comparatives. Changes have been made to the classification of certain prior period comparatives in order to remain consistent with the current period presentation. These changes have had no material impact on the financial statements , but amounts and disclosures were changed to show the impact of discontinued operations. Liquidity and Going Concern These financial statements have been prepared on the going concern basis, which contemplates the continuity of normal business activities and the realization of assets and settlement of liabilities in the normal course of business. As disclosed in the financial statements, we incurred a net loss from continuing operations of $0.7 million for the three months ended September 30, 2018, and as at that date, we had $38 million in current liabilities, including $10.1 million in accounts payable, and approximately $5.4 million in current assets, excluding oil and gas assets held for sale. As at September 30, 2018, we had net current liabilities of $3.2 million . Our ability to continue as a going concern is dependent on refinancing our $24 million bank debt or the sale of our oil and gas properties to repay that debt. We are engaged in discussions with a non-bank lender with respect to refinancing our current $24 million credit facility, which expired October 31, 2018, and is now due and payable. We have also engaged PLS Energy Advisory Group to market our assets. Based on our current financial position, in both cases we may be required to accept terms less favorable than would otherwise be available to us. There also can be no assurances that we will be successful in refinancing of our debt or to sell substantially all of our assets. These factors indicate there is substantial doubt about our ability to continue as a going concern. Discontinued Operations As of September 30, 2018, the majority of our interest in the wells in the Foreman Butte project were held for sale and therefore have been recognized as discontinued operations for the quarter ended September 30, 2018 and 2017. These are expected to be sold within the next 12 months, although we can offer no assurances these sale efforts will be successful. Discontinued Operations Quarter ended September 30, 2018 2017 Major line items constituting pretax gain (loss) of discontinued operations Oil sales 3,259,393 2,486,904 Gas sales 28,955 41,411 Other liquids 3,822 1,579 Other income* 1,000,000 - Lease operating expense (2,071,472) (1,627,486) Depletion, depreciation and amortization - (406,349) Accretion of asset retirement obligations - (68,145) Amortization of borrowing costs - (28,950) Interest expense (274,410 ) (247,690) Gain from discontinued operations 1,946,288 151,274 Cashflows from Discontinued Operations Cashflows from Operating Activities 1,415,774 (84,977) Cashflows from Investing Activities 663,794 (78,921) Cashflows from Financing Activities - 450,000 *”Other income” includes $1 million released from escrow in relation to the contracted sale of the Foreman Butte project that did not close. Recent Accounting Standards Revenue Recognition On J uly 1, 2018, we adopted Accounting Standards Codification (“ASC”) Topic 606 “Revenue from Contracts with Customers” (“ASC 606”) using the modified retrospective approach, which only applies to contracts that were not completed as of the date of the application. The adoption did not require an adjustment to the ope ning retained deficit for the cumulative effect adjustment and does not have a material impact on our ongoing consolidated balance sheet, statement of operations, statement of stockholders’ equity or statement of cash flows. We recognize revenues from the sales of oil, natural gas and natural gas liquids (“NGL”) to our customers in accordance with the five-step revenue recognition model prescribed in ASC 606. Specifically, revenue is recognized when our performance obligations under contracts with customers (purchasers) are satisfied, which generally occurs with the transfer of control of the products to the purchasers. Control is generally considered transferred when the following criteria are met: (i) transfer of physical custody, (ii) transfer of title, (iii) transfer of risk of loss and (iv) relinquishment of any repurchase rights or other similar rights. Given the nature of our sales , revenue is recognized at a point in time based on the amount of consideration we expect to receive in accordance with the price specified in the contracts. Consideration under the marketing contracts is typically received from the purchaser one to two months after production and, as a result, the Company is required to estimate the amount of production that was delivered to the purchaser and the price that will be received for the sale of the product. We record the differences between estimates and the actual amounts received for product sales once payment is received from the purchaser. Such differences have historically not been significant as we use knowledge of our properties and their historical performance, spot market prices and other factors as the basis for these estimates. At September 30 , 2018, the Company had receivables related to contracts with customers of $ 1.2 million . There was no impact on previously recognized revenue and no changes to what we would have recognized under the previous revenue recognition standard, ASC Topic 605 Revenue Recognition Leasing Accounting Standards Codification 842 (“ASC 842”) Leases is effective for fiscal years beginning after December 15, 2018. Although the impacts of the standard are still being reviewed, due to minimal leasing activity undertaken by the us, we expect this statement to have little impact on the Financial Statements. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 2. Income Taxes The Company has cumulative net operating losses (“NOLs”) that may be carried forward to reduce taxable income in future years. The Tax Reform Act of 1986 contains provisions that limit the utilization of NOLs if there has been a change in ownership as described in Internal Revenue Code Section 382. The Company’s prior year NOLs are limited by IRC Section 382. ASC Topic 740 requires that a valuation allowance be provided if it is more likely than not that some portion or all deferred tax assets will not be realized. The Company’s ability to realize the benefits of its deferred tax assets will depend on the generation of future taxable income through profitable operations. Due to the Company’s history of losses and the uncertainty of future profitable operations, the Company has recorded a full valuation allowance against its deferred tax assets. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Dec. 31, 2017 | |
Net earnings per common share from operations: | |
Earnings Per Share | 3. Earnings Per Share Basic earnings (loss) per share is calculated by dividing net earnings (loss) attributable to ordinary shares by the weighted average number of shares outstanding for the period. Under the treasury stock method, diluted earnings per share is calculated by dividing net earnings (loss) by the weighted average number of shares outstanding including all potentially dilutive ordinary shares (which in Samson’s case consists of unexercised stock options). In the event of a net loss, however no potential ordinary shares are included in the calculation of shares outstanding since the impact would be anti-dilutive. The following table details the weighted average dilutive and anti-dilutive securities outstanding, which consist of transferable options to purchase ordinary shares which are tradeable on the ASX (“options”), for the periods presented: Three months ended 30-Sep-18 30-Sep-17 Dilutive - - Anti–dilutive 314,500,000 314,500,000 The following tables set forth the calculation of basic and diluted loss per share: Three months ended 30-Sep-18 30-Sep-17 Net income (loss) from continuing operations $ (745,635) $ (1,894,458) Basic weighted average ordinary shares outstanding 3,283,000,444 3,282,861,876 Add: dilutive effect of stock options - - Diluted weighted average ordinary shares outstanding 3,283,000,444 3,282,861,876 Basic earnings/(loss) from continuing operations per ordinary share – cents per share (0.02) (0.06) Diluted earnings/(loss) fom continuing operations per ordinary share – cents per share (0.02) (0.06) |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligations [Abstract] | |
Asset Retirement Obligations | 4. Asset Retirement Obligations The Company’s asset retirement obligations primarily represent the estimated present value of the amounts expected to be incurred to plug, abandon and remediate producing and shut–in properties at the end of their productive lives in accordance with applicable state and federal laws. The Company determines the estimated fair value of its asset retirement obligations by calculating the present value of estimated cash flows related to those obligations. The significant inputs used to calculate such liabilities include estimates of costs to be incurred, the Company’s credit adjusted discount rates, inflation rates and estimated dates of abandonment. The asset retirement liability is accreted to its present value each period and the capitalized asset retirement cost is depleted using the units–of–production method. The value of asset retirement obligation held related to asset held for disposal relates to the retirement obligation associated with certain properties held for sale relating to our Foreman Butte project in North Dakota and Montana. In the prior year, the liabilities settled relate to wells plugged and abandoned in our Sabretooth project in Texas. Disposition of properties relate to the sale of certain wells in Wyoming. The following table summarizes the activities for the Company’s asset retirement obligations for the three months ended September 30, 2018 and 2017: Three months ended 30-Sep-18 30-Sep-17 Asset retirement obligations at beginning of period $ 3,344,112 $ 3,456,236 Liabilities incurred or acquired - - Liabilities settled (12,965) (12,500) Disposition of properties - (131,202) Accretion expense 8,521 80,171 Asset retirement obligations at end of period 3,339,668 3,392,705 Less: current asset retirement obligations (classified with accounts payable and accrued liabilities) (2,509,981) - Long-term asset retirement obligations $ 829,687 $ 3,392,705 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements Fair value is defined as the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. The FASB has established a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1—Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2—Pricing inputs are other than quoted prices in active markets included in level 1, but are either directly or indirectly observable as of the reported date and for substantially the full term of the instrument. Inputs may include quoted prices for similar assets and liabilities. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. Level 3—Pricing inputs include significant inputs that are generally unobservable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value as of September 30, 2018 and June 30, 2018. Carrying value at September 30, 2018 Level 1 Level 2 Level 3 Netting (1) Fair Value at September 30, 2018 Current Assets: Cash and cash equivalents $ 2,492,749 $ 2,492,749 $ - $ - $ - $ 2,492,749 Derivative Instruments - - 344 - (344) - Non Current Assets Derivative Instruments - - - - - - Current Liabilities Derivative instruments 877,310 - 877,654 - (344) 877,310 Non Current Liabilities Derivative Instruments - - - - - - Carrying value at June 30, 2018 Level 1 Level 2 Level 3 Netting (1) Fair Value at June 30, 2018 Current Assets: Cash and cash equivalents $ 1,376,676 $ 1,376,676 $ - $ - $ - $ 1,376,676 Derivative Instruments - - 4,218 - (4,218) - Non Current Assets Derivative Instruments - - - - - - Current Liabilities Derivative instruments 1,210,795 - 1,215,013 - (4,218) 1,210,795 Non Current Liabilities Derivative Instruments - - - - - - (1) Netting In accordance with the Company’s standard practice, its commodity derivatives are subject to counterparty netting under agreements governing such derivatives and therefore the risk of loss is somewhat mitigated. The following methods and assumptions were used to estimate the fair value of the assets and liabilities in the table above: Level 1 Fair value Measurements Fair Value of Financial Instruments. The Company’s financial instruments consist primarily of cash and cash equivalents, restricted cash, accounts receivable and payable and derivatives (discussed below). The carrying values of cash equivalents and accounts receivable and payable are representative of their fair values due to their short–term maturities. Level 2 Fair Measurements Derivative Contracts. The Company’s derivative contracts consist of oil collars and oil call options. The fair value of these contracts are based on inputs that are either readily available in the public market, such as oil future prices or inputs that can be corroborated from active markets. Fair value is determined through the use of a discounted cash model using applicable inputs discussed above. Other fair value measurements Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis. The Company also applies fair value accounting guidance to measure non–financial assets and liabilities such as business acquisitions, proved oil and gas properties, and the initial recognition of asset retirement obligations. These assets and liabilities are subject to fair value adjustments only in certain circumstances and are not subject to recurring revaluations. These items are primarily valued using the present value of estimated future cash inflows and/or outflows. Given the unobservable nature of these inputs, they are deemed to be Level 3. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 6. Commitments and Contingencies The Company has no accrued environmental liabilities for its sites, including sites in which governmental agencies have designated the Company as a potentially responsible party, because it is not probable that a loss will be incurred and the minimum cost and/or amount of loss cannot be reasonably estimated. However, due to uncertainties associated with environmental assessment and remediation activities, future expense to remediate the currently identified sites, and sites identified in the future, if any, could be incurred. Management believes, based upon current site assessments, that the ultimate resolution of any such matters will not materially affect our results of operations or cash flows. From time to time, we are involved in various legal proceedings through the ordinary course of business. While the ultimate outcome is not known, management believes that any resolution will not materially impact the financial statements. |
Issue of Share Capital
Issue of Share Capital | 6 Months Ended |
Dec. 31, 2017 | |
Issue of Share Capital [Abstract] | |
Issue of Share Capital | 8. Share Capital Issue of Share Capital No shares were issued during the three months ended September 30, 2018. |
Cash Flow Statement
Cash Flow Statement | 6 Months Ended |
Dec. 31, 2017 | |
Cash Flow Statement [Abstract] | |
Cash Flow Statement | 9. Cash Flow Statement Reconciliation of loss after tax to the net cash flows from operations: Three months ended 30-Sep-18 30-Sep-17 Net loss $ 1,200,653 $ (1,743,184) Depletion, depreciation and amortization 28,043 478,058 Accretion of asset retirement obligation 8,521 80,171 Impairment expense - - Exploration and evaluation expenditure 28,778 3,173 Amortization borrowing costs - 28,950 Non cash (gain)/loss on derivative instruments (333,485) 541,580 Net gain from sale of assets (1,000,000) (178,658) Share based payments - 236,717 Changes in assets and liabilities: Increase in receivables (821,692) 139,033 Increase in provision for annual leave (7,018) 585 Increase in payables 1,387,798 244,866 NET CASH FLOWS PROVIDED BY/(USED IN) OPERATING ACTIVITIES $ 491,598 $ (168,709) This amount reconciles to the Statement of Cashflows as follows: Net cash flows used in operating activities from continuing operations - (924,176) (83,732) Net cashflows provided by/(used in) operating activities from discontinued activities 1,415,774 (84,977) $ 491,598 $ (168,709) |
Credit Facility
Credit Facility | 6 Months Ended |
Dec. 31, 2017 | |
Credit Facility [Abstract] | |
Credit Facility Disclosure | 10. Credit Facility Three months ended 30-Sep-18 30-Sep-17 Credit facility at beginning of period $ 23,867,557 $ 23,419,719 Cash advanced under facility - 450,000 Cash committed to be advanced under facility - - Repayments - - Credit facility at end of period (1) $ 23,867,557 $ 23,869,719 Funds available for drawdown under the facility - 97,443 (1) The credit facility is recognized as a current liability due the Company’s continued breach of the covenants in the facility. The loan is due and payable. In January 2014, we entered into a $25.0 million credit facility with our primary lender, Mutual of Omaha Bank, with an initial borrowing base of $8.0 million, which was increased to $15.5 million in June 2014. In November 2014, the borrowing base was increased to $19.0 million, which was fully drawn prior to the closing of the Foreman Butte Acquisition (as defined below). In March 2016, our credit facility was amended to increase the borrowing base to $30.5 million to partially fund the Foreman Butte Acquisition. An additional $4 million in financing was also provided by the seller. This promissory note was paid off in May 2017. We were required under the amended credit agreement to repay Mutual of Omaha $10 million by June 30, 2016. This was ultimately increased to $11.5 million and extended to October 31, 2016. The pay down was achieved through the sale of our North Stockyard property for $14.95 million on October 28, 2016 and was made on October 31, 2016. In March 2016, the facility was extended to $30.5 million to partly fund the Foreman Butte Acquisition. In connection with this amendment to the facility agreement, the following covenants, tested on a quarterly basis, were included: · Current ratio greater than 1 · Debt to EBITDAX (annualized) ratio no greater than 4.00 for the quarter ended September 30, 2017 and thereafter · Senior leverage ratio of no greater than 3.75 for the quarter ending December 31, 2016 and thereafter · Interest coverage ratio minimum of between 2.5 and 1.0 Following multiple covenant breaches, on June 14, 2018 we entered into a forbearance agreement with Mutual of Omaha Bank pursuant to which Mutual of Omaha Bank agreed to forbear on exercising its remedies under the credit facility contingent upon the success of our effort to sell the Foreman Butte asset. This agreement, as amended, terminated in accordance with its terms on October 15, 2018. The $23.9 million outstanding under our credit facility was due for repayment October 31, 2018 but we did not repay it by that deadline. Mutual of Omaha Bank may issue a notice of default and seek repayment of the facility or pursue alternative repayment methods, including the sale of the outstanding loan to a third party, at any time. We incurred $0.6 million in borrowing costs (including legal fees and bank fees) in connection with the establishment of this facility. These costs were written off in total during the year ended June 30, 2018. |
Derivatives
Derivatives | 6 Months Ended |
Dec. 31, 2017 | |
Derivatives [Abstract] | |
Derivatives | 11. Derivatives The Company has not designated any of its derivative contracts as hedges for accounting purposes. The Company records all derivative contracts at fair value. Changes in derivative contracts are recognized in earnings. Changes in settlements and valuation gains and losses are included in loss/(gain) on derivative instruments in the Statement of Operations. These contracts are settled on a monthly basis. Derivative assets and liabilities arising from the Company’s derivative contracts with the same counterparty that provide for net settlement are reported on a net basis in the Balance Sheet. The Company is exposed to commodity price risk, which impacts the predictability of its cash flows from the sale of oil. The Company seeks to manage this risk through the use of commodity derivative contracts These derivative contracts allow the Company to limit its exposure to commodity price volatility on a portion of its forecasted oil sales. At September 30, 2018 the Company’s commodity derivative contracts consisted of collars which are described below: Collar Collars contain a fixed floor price (put) and fixed ceiling price (call). If the market price exceeds the call strike price or falls below the put strike price, the Company receives the fixed price and pays the market price. If the market price is between the call and the put strike price, no payments are due from the either party. All of the Company’s derivative contracts are with the same counterparty (a large multinational oil company) and are shown on a net basis on the Balance Sheet. The Company’s counterparty has entered into an inter-creditor agreement with the Company’s primary lender, and as such, no additional collateral is required by the counterparty. During the three months ended September 30, 2018 we recognized $0.03 in loss on derivative instruments in the Statement of Operations. At September 30, 2018, the Company’s open derivative contracts consisted of the following: Collars Product Start Date End Date Volume (BO/Mmbtu) Floor Ceiling WTI 1-Oct-18 31-Dec-18 40,480 45.00 56.00 Henry Hub 1-Nov-18 31-Dec-18 20,130 2.65 2.90 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Net earnings per common share from operations: | |
Schedule Of Weighted Average Dilutive And Anti-Dilutive Securities | Three months ended 30-Sep-18 30-Sep-17 Dilutive - - Anti–dilutive 314,500,000 314,500,000 |
Schedule Of Calculation Of Basic And Diluted Earnings Per Share | Three months ended 30-Sep-18 30-Sep-17 Net income (loss) from continuing operations $ (745,635) $ (1,894,458) Basic weighted average ordinary shares outstanding 3,283,000,444 3,282,861,876 Add: dilutive effect of stock options - - Diluted weighted average ordinary shares outstanding 3,283,000,444 3,282,861,876 Basic earnings/(loss) from continuing operations per ordinary share – cents per share (0.02) (0.06) Diluted earnings/(loss) fom continuing operations per ordinary share – cents per share (0.02) (0.06) |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligations [Abstract] | |
Summary Of Activities Of Asset Retirement Obligations | Three months ended 30-Sep-18 30-Sep-17 Asset retirement obligations at beginning of period $ 3,344,112 $ 3,456,236 Liabilities incurred or acquired - - Liabilities settled (12,965) (12,500) Disposition of properties - (131,202) Accretion expense 8,521 80,171 Asset retirement obligations at end of period 3,339,668 3,392,705 Less: current asset retirement obligations (classified with accounts payable and accrued liabilities) (2,509,981) - Long-term asset retirement obligations $ 829,687 $ 3,392,705 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Schedule Of Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis | Carrying value at September 30, 2018 Level 1 Level 2 Level 3 Netting (1) Fair Value at September 30, 2018 Current Assets: Cash and cash equivalents $ 2,492,749 $ 2,492,749 $ - $ - $ - $ 2,492,749 Derivative Instruments - - 344 - (344) - Non Current Assets Derivative Instruments - - - - - - Current Liabilities Derivative instruments 877,310 - 877,654 - (344) 877,310 Non Current Liabilities Derivative Instruments - - - - - - Carrying value at June 30, 2018 Level 1 Level 2 Level 3 Netting (1) Fair Value at June 30, 2018 Current Assets: Cash and cash equivalents $ 1,376,676 $ 1,376,676 $ - $ - $ - $ 1,376,676 Derivative Instruments - - 4,218 - (4,218) - Non Current Assets Derivative Instruments - - - - - - Current Liabilities Derivative instruments 1,210,795 - 1,215,013 - (4,218) 1,210,795 Non Current Liabilities Derivative Instruments - - - - - - |
Cash Flow Statement Reconcilati
Cash Flow Statement Reconcilation (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Cash Flow Statement [Abstract] | |
Schedule Of Cash Flow Statement Reconciliation | Three months ended 30-Sep-18 30-Sep-17 Net loss $ 1,200,653 $ (1,743,184) Depletion, depreciation and amortization 28,043 478,058 Accretion of asset retirement obligation 8,521 80,171 Impairment expense - - Exploration and evaluation expenditure 28,778 3,173 Amortization borrowing costs - 28,950 Non cash (gain)/loss on derivative instruments (333,485) 541,580 Net gain from sale of assets (1,000,000) (178,658) Share based payments - 236,717 Changes in assets and liabilities: Increase in receivables (821,692) 139,033 Increase in provision for annual leave (7,018) 585 Increase in payables 1,387,798 244,866 NET CASH FLOWS PROVIDED BY/(USED IN) OPERATING ACTIVITIES $ 491,598 $ (168,709) This amount reconciles to the Statement of Cashflows as follows: Net cash flows used in operating activities from continuing operations - (924,176) (83,732) Net cashflows provided by/(used in) operating activities from discontinued activities 1,415,774 (84,977) $ 491,598 $ (168,709) |
Credit Facility (Tables)
Credit Facility (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Credit Facility [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | Three months ended 30-Sep-18 30-Sep-17 Credit facility at beginning of period $ 23,867,557 $ 23,419,719 Cash advanced under facility - 450,000 Cash committed to be advanced under facility - - Repayments - - Credit facility at end of period (1) $ 23,867,557 $ 23,869,719 Funds available for drawdown under the facility - 97,443 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Derivatives [Abstract] | |
Schedule Of Open Derivative Contracts | Collars Product Start Date End Date Volume (BO/Mmbtu) Floor Ceiling WTI 1-Oct-18 31-Dec-18 40,480 45.00 56.00 Henry Hub 1-Nov-18 31-Dec-18 20,130 2.65 2.90 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income tax Rate) (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Income Taxes [Abstract] | ||
Income tax benefit |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net earnings per common share from operations: | ||||||
Anti-dilutive | 314,500,000 | 314,500,000 | ||||
Net income | $ (745,635) | $ (745,635) | $ (1,894,458) | $ (1,894,458) | $ 1,200,653 | $ (1,743,184) |
Basic weighted average ordinary shares outstanding | 3,283,000,444 | 3,283,000,444 | 3,283,000,444 | 3,282,861,876 | ||
Diluted weighted average ordinary shares outstanding | 3,283,000,444 | 3,283,000,444 | ||||
Basic earnings per ordinary share - cents per share | $ 0.04 | $ (0.02) | $ (0.05) | $ (0.06) | ||
Diluted earnings per ordinary share - cents per share | $ 0.04 | $ (0.02) | $ (0.05) | $ (0.06) |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | |
Asset Retirement Obligations [Abstract] | ||||||
Asset retirement obligations at beginning of period | $ 3,344,112 | $ 3,456,236 | $ 3,344,112 | $ 3,456,236 | ||
Liabilities settled | (12,965) | (12,500) | ||||
Disposition of properties | (131,202) | |||||
Accretion expense | $ 8,521 | 12,026 | 80,171 | 8,521 | 80,171 | |
Asset retirement obligations at end of period | 3,339,668 | $ 3,392,705 | ||||
Less: current asset retirement obligations (classified with accounts payable and accrued liabilities) | (2,509,981) | $ (2,509,981) | $ (2,509,981) | |||
Long-term asset retirement obligations | $ 829,687 | $ 829,687 | $ 3,392,705 | $ 834,131 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 3 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | $ 2,492,749 | $ 1,376,676 | ||||
Derivative Liability, Current | $ 877,310 | $ 1,210,795 | 877,310 | 1,210,795 | ||
Impairment of Oil and Gas Properties | $ 40,856 | |||||
Carrying Value [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 2,492,749 | 1,376,676 | ||||
Derivative Liability, Current | 877,310 | 1,210,795 | ||||
Level 1 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and cash equivalents | 2,492,749 | 1,376,676 | ||||
Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative instruments, Current Assets | 344 | 4,218 | ||||
Derivative Liability, Current | 877,654 | 1,215,013 | ||||
Netting [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative instruments, Current Assets | [1] | (344) | (4,218) | |||
Derivative Liability, Current | [1] | $ (344) | $ (4,218) | |||
[1] | Netting In accordance with the Company's standard practice, its commodity derivatives are subject to counterparty netting under agreements governing such derivatives and therefore the risk of loss is somewhat mitigated. |
Cash Flow Statement (Details)
Cash Flow Statement (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flow Statement [Abstract] | |||||||
Net income/(loss) after tax | $ 1,200,653 | $ (1,743,184) | |||||
Net (loss) after tax | (745,635) | $ (745,635) | (1,894,458) | $ (1,894,458) | $ 1,200,653 | $ (1,743,184) | |
Depletion, depreciation and amortization | 28,043 | 478,058 | |||||
Stock based compensation | 236,717 | ||||||
Accretion of asset retirment obligation | $ 8,521 | $ 12,026 | $ 80,171 | 8,521 | 80,171 | ||
Exploration and evaluation expenditure | 28,778 | 3,173 | |||||
Amortisation of borrowing costs | 28,950 | ||||||
Acquisition Costs, Period Cost | (1,000,000) | (178,658) | |||||
Unrealized Gain (Loss) on Derivatives | (333,485) | 541,580 | |||||
Increase in receivables | (821,692) | 139,033 | |||||
Increase/(decrease) in provision for annual leave | (7,018) | 585 | |||||
Increase in payables | 1,387,798 | 244,866 | |||||
Net cash flows used in operating activities | $ 491,598 | $ (168,709) |
Credit Facility (Details)
Credit Facility (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2016 | Jun. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2016 | |
Credit Facility [Abstract] | |||||
Credit Facility at end of period | $ 23,834,749 | $ 23,867,557 | |||
Total Credit Facility | $ 23,869,719 | $ 23,867,557 | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 97,443 | ||||
Less amount of credit facility currently due for repayment within a year, recorded as a current liability | 23,834,749 | 23,867,557 | |||
Cash advanced under facility | $ 450,000 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Derivatives [Abstract] | ||
Loss on derivative instruments | $ 26,980 | $ 667,395 |
Derivatives (Schedule Of Open D
Derivatives (Schedule Of Open Derivative Contracts) (Details) - Derivative Contract Two [Member] | 3 Months Ended |
Sep. 30, 2017$ / McfMMcf | |
Derivative [Line Items] | |
Derivative inception | Oct. 1, 2018 |
Derivative maturity | Dec. 31, 2018 |
Volumes (bbls) | MMcf | 40,480 |
Floor US$ | 45 |
Ceiling US$ | 56 |
Uncategorized Items - ssn-20180
Label | Element | Value |
Effect Of Exchange Rate On Cash And Cash Equivalents | us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents | $ (2,838) |
Other Comprehensive Income [Member] | ||
Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Period Increase Decrease | us-gaap_OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax | $ 29,861 |