Osage Exploration & Development (OSGE) 10-Q 15 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	11-May-15
Document And Entity Information
Entity Registrant Name	OSAGE EXPLORATION & DEVELOPMENT, INC.
Entity Central Index Key	1405686
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		58,284,948
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

Balance_Sheets_Unaudited

Balance Sheets (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and equivalents	$2,428,569	$5,054,735
Accounts receivable	2,059,540	3,595,555
Unrealized gains on oil and gas derivatives	770,833	1,116,740
Prepaid expenses and other current assets	66,275	120,390
Deferred financing costs	819,142	1,009,642
Total current assets	6,144,359	10,897,062
Property and equipment, at cost:
Oil & gas properties and equipment (successful efforts method)	62,575,262	62,115,916
Other property & equipment	267,558	260,526
Total property & equipment, gross	62,842,820	62,376,442
Less: accumulated depletion, impairment, depreciation and amortization	-40,295,096	-39,270,342
Total property & equipment, net	22,547,724	23,106,099
Restricted cash	893,357	896,367
Total assets	29,585,440	34,899,529
Current liabilities:
Accounts payable	11,068,867	16,949,047
Joint interest liabilities	1,936,213	2,313,801
Revenues and royalties payable	3,874,152	1,761,634
Accrued expenses	351,341	1,039,945
Capital lease liability, current portion	42,503	45,698
Notes payable	25,000,000	25,000,000
Total current liabilities	42,273,076	47,110,125
Unrealized losses on oil and gas derivatives, net of current portion
Capital lease liability, net of current portion	39,221	50,135
Liability for asset retirement obligations	6,586	6,281
Total liabilities	42,318,883	47,166,541
Commitments and contingencies
Stockholders' Equity (Deficit) :
Preferred stock, $0.0001 par value, 10,000,000 authorized, none issued and outstanding as of March 31, 2015 or December 31, 2014
Common stock, $0.0001 par value, 190,000,000 shares authorized; 58,284,948 and 58,098,014 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively	5,828	5,809
Additional paid-in capital	26,842,382	26,551,541
Stock purchase notes receivable	-95,000	-95,000
Accumulated deficit	-39,486,653	-38,729,362
Total stockholders' equity (Deficit)	-12,733,443	-12,267,012
Total liabilities and stockholders' equity (Deficit)	$29,585,440	$34,899,529

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	190,000,000	190,000,000
Common stock, shares issued	58,284,948	58,098,014
Common stock, shares outstanding	58,284,948	58,098,014

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating revenues
Oil revenues	$2,463,828	$2,132,817
Natural gas and natural gas liquids revenues	446,452	504,598
Total operating revenues	2,910,280	2,637,415
Operating costs and expenses
Operating costs	704,922	473,142
General and administrative expenses	1,195,879	843,952
Depreciation, depletion and accretion	1,025,059	999,899
Write off of expired mineral rights leases	141,348
Gain on sale of land interests	-197,905	-70,314
Total operating costs and expenses	2,869,303	2,246,679
Operating income	40,977	390,736
Other income (expenses):
Interest income	1,298	424
Interest expense	-1,003,213	-1,210,560
Gain (loss) on oil and gas derivatives	203,647	-115,727
Loss before income taxes	-757,291	-935,127
Provision for income taxes
Net loss	($757,291)	($935,127)
Basic and diluted loss per share	($0.01)	($0.02)
Weighted average number of common share and common share equivalents used to compute basic and diluted loss per share	58,218,483	51,602,380

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net loss	($757,291)	($935,127)
Adjustments to reconcile net loss to net cash provided by operating activites:
Stock based compensation	290,860	109,000
Amortization of deferred financing costs	190,500	347,983
Gain on sale of land interests	-197,905	-70,314
Write off of expired mineral rights leases	141,348
Accretion of asset retirement obligation	305	200
Provision for depletion, depreciation and amortization	1,024,754	999,699
Unrealised loss on oil and gas derivatives	345,907	68,058
Changes in operating assets and liabilities:
Decrease in accounts receivable	1,536,015	388,618
Decrease in prepaid expenses and other current assets	54,115	537,315
(Decrease) increase in accounts payable and accrued expenses	-7,509,505	1,854,500
(Decrease) increase in joint interest billing account	-377,588	355,894
Increase in revenue and royalties payable	2,112,518
Net cash (used) provided by operating activities	-3,145,967	3,655,826
Cash flows from investing activities:
Investments in oil & gas properties	-231,250	-3,955,953
Investments in non-oil & gas properties	-7,032	-41,044
Decrease in restricted cash	3,010	16
Net proceeds from sale of land interests	769,182	104,261
Net cash provided by (used in) investing activities	533,910	-3,892,720
Cash flows from financing activities:
Net proceeds from offering of securities		6,066,201
Principal payments on capital leases	-14,109	-3,502
Proceeds from exercise of warrants		2,000
Net cash (used) provided by financing activities	-14,109	6,064,699
Net (decrease) increase in cash and equivalents	-2,626,166	5,827,805
Cash and equivalents - beginning of period	5,054,735	2,782,643
Cash and equivalents - end of period	2,428,569	8,610,448
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash payment for interest	812,713	862,577
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Increase in asset retirement obligation		39
Oil and gas additions in accounts payable	940,721
Purchase of furniture and fixtures through capital lease		127,435
Cashless exercise of warrants	$19

Organization_and_Basis_of_Pres

Organization and Basis of Presentation	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	1. ORGANIZATION AND BASIS OF PRESENTATION
	Osage Exploration and Development, Inc. (“Osage” or the “Company”) is an independent energy company engaged primarily in the acquisition, development, production and sale of oil, natural gas and natural gas liquids. The Company’s production activities are located in the State of Oklahoma. The principal executive offices of the Company are at 2445 Fifth Avenue, Suite 310, San Diego, CA 92101.
	Osage prepared the accompanying unaudited consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) instructions to Form 10-Q and Item 310(b) of Regulation S-K. These financial statements should be read together with the financial statements and notes in the Company’s 2014 Form 10-K filed with the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP were condensed or omitted. The accompanying financial statements reflect all adjustments and disclosures, which, in the Company’s opinion, are necessary for fair presentation. All such adjustments are of a normal recurring nature. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year.

Summary_of_Significant_Account

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Going Concern

The Company has an accumulated deficit of $39,486,653 and a working capital deficit of $36,128,717 as of March 31, 2015. As of March 31, 2015, as a result of production delays and a general decline in prevailing oil prices, the Company was not able to operate profitably and was not in compliance with certain covenants under the senior secured note purchase agreement. (see Note 5 - Debt). Without additional financing, the Company may not be able to fully implement its operating plan. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

On April 27, 2012, we entered into a $10,000,000 senior secured note purchase agreement with Apollo Investment Corporation. On April 5, 2013 we amended this agreement, increasing the facility to $20,000,000. On April 3, 2014, the Company and Apollo amended the Note Purchase Agreement, increasing the amount of the total facility to $30,000,000, extending the term by one year and reducing the interest rate from Libor plus 15% to Libor plus 11%. During the year ended December 31, 2014, we drew down $5,000,000 of additional funds and, as of December 31, 2014 and March 31, 2015, the amount outstanding under the senior secured note purchase agreement was $25,000,000.

Management of the Company has undertaken steps as part of a plan to improve operations with the goal of sustaining our operations for the next 12 months and beyond. These steps include (a) becoming operators of our own wells, (b) participating in drilling of wells in Logan County, Oklahoma within the next 12 months, (c) controlling overhead and expenses, (d) selling portions of existing operations, and (e) raising additional equity and/or debt.

The Company’s operating plans require additional funds which may take the form of debt or equity financings. The Company’s ability to continue as a going concern is dependent upon achieving profitable operations and obtaining additional financing. Our cash flows and results of operations depend to a great extent on the prevailing prices for oil and gas. Prolonged or substantial declines in oil / and/or gas prices may materially and adversely affect our liquidity, the amount of cash flows we have available for our capital expenditures and other operating expenses, our ability to access credit and capital markets and our results of operations. There is no assurance additional funds will be available on acceptable terms or at all.

These consolidated financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying consolidated financial statements.

Basis of Consolidation

The consolidated financial statements include the accounts of Osage and its wholly owned subsidiaries, Osage Energy Company, LLC and Osage Exploration and Development Operating, LLC. Accordingly, all references herein to Osage or the Company include the consolidated results. All significant inter-company accounts and transactions were eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management used significant estimates in determining the carrying value of its oil and gas producing assets and the associated impairment, depreciation and depletion expense related to sales volumes. The significant estimates included the use of proved oil and gas reserve volumes and the related present value of estimated future net revenues there-from.

Reclassifications

Certain amounts included in the prior year financial statements have been reclassified to conform to the current year’s presentation. These reclassifications have no effect on the reported results in 2015 or 2014.

Risk Factors Related to Concentration of Sales and Products

The Company’s future financial condition and results of operations depend upon prices received for its oil and natural gas and the costs of finding, acquiring, developing and producing reserves. Prices for oil and natural gas are subject to fluctuations in response to changes in supply, market uncertainty and a variety of other factors beyond the Company’s control. These factors include worldwide political instability (especially in the Middle East), the foreign supply of oil and natural gas, the price of foreign imports, the level of consumer product demand and the price and availability of alternative fuels.

Cash and Equivalents

Cash and equivalents consist of short-term, highly liquid investments readily convertible into cash with an original maturity of three months or less.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company places its cash in what it believes are credit-worthy financial institutions. However, the Company’s cash balances have exceeded the FDIC insured levels at various times during the three months ended March 31, 2015 and 2014. The Company maintains cash accounts only at large, high quality financial institutions and believes the credit risk associated with cash held in banks exceeding the FDIC insured levels is remote. The Company generated substantially all of its revenues from seven customers and four customers in the three months ended March 31, 2015 and March 31, 2014, respectively.

Deferred Financing Costs

The Company incurred deferred financing costs in connection with the Note Purchase Agreement (see Note 5), which represented the fair value of warrants, placement fees and legal fees. Deferred financing costs of $3,959,448 are being amortized over the term of the Note Purchase Agreement on a straight-line basis, which approximates the effective interest method. In 2014, the term of the Note Purchase Agreement was extended by one year.

Deferred financing costs net of accumulated amortization at March 31, 2015 were $819,142. Amortization of deferred financing costs was $190,500 for the three months ended March 31, 2015, and $347,983 for the three months ended March 31, 2014.

Restricted Cash

In connection with the Apollo Note Purchase Agreement, as amended (see Note 5), the Company has classified $812,500, representing three months interest, as restricted cash as of March 31, 2015 and December 31, 2014, respectively. The Company has also pledged $80,857 for certain bonds and sureties at March 31, 2015. Restricted cash at March 31, 2015 was $893,357, compared to $896,367 at December 31, 2014.

Risk Management Activities

The Company has entered into certain derivative financial instruments to manage the inherent uncertainty of future revenues. The Company does not intend to hold or issue derivative financial instruments for speculative purposes and has elected not to designate any of its derivative instruments for hedge accounting treatment. These derivative financial instruments are marked to market at each reporting period.

Net Loss Per Share

In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260 “Earnings Per Share,” the Company’s basic net loss per share of common stock is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share of common stock is computed by dividing the net loss using the weighted-average number of common shares including potential dilutive common shares outstanding during the period. Potential common shares are excluded from the computation of diluted net loss per share if anti-dilutive.

The following table shows the computation of basic and diluted net loss per share for the three months ended March 31, 2015 and 2014:

Three Months Ended March 31,

2015

2014

Net loss

$

$

(935,127

)

Basic and diluted net loss per share

$

(0.01

)

$

(0.02

)

Basic and diluted weighted average shares outstanding

58,218,483

51,602,380

Potential common shares consisted of 8,394,179 and 4,531,392 warrants and options to purchase common stock at March 31, 2015 and 2014, respectively. All of these warrants and options were excluded from the computations for the three months March 31, 2015 and 2014, as their effect would have been anti-dilutive.

Impairment of Long-Lived Assets

The Company follows the guidance provided under FASB ASC Topic 360 (“ASC 360”), “Accounting for the Impairment or Disposal of Long-Lived Assets”, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The Company periodically evaluates the carrying value of long-lived assets to be held and used in accordance with ASC 360. ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal. During the three months ended March 31, 2015 and 2014, the Company did not record impairment charges related to its long-lived assets.

Fair Value of Financial Instruments

As of March 31, 2015 and December 31, 2014, the fair value of cash, accounts receivable, short term debt and accounts payable approximate carrying values because of the short-term maturity of these instruments.

FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest.

The three levels of valuation hierarchy are defined as follows:

●

Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

●

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

●

Level 3 inputs to the valuation methodology use one or more unobservable inputs which are significant to the fair value measurement.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC Topic 480, “Distinguishing Liabilities from Equity,” and ASC Topic 815, “Derivatives and Hedging.”

As of March 31, 2015 and December 31, 2014, the Company identified certain derivative financial instruments which required disclosure at fair value on the balance sheet.

The following table presents information for those assets and liabilities requiring disclosure at fair value as of March 31, 2015 and December 31, 2014:

Total

Fair Value Measurements Using:

Carrying

Fair

Level 1

Level 2

Level 3

Amount

Value

Inputs

Inputs

Inputs

March 31, 2015 assets (liabilities):

Commodity derivative asset

770,833

770,833

-

770,833

-

December 31, 2014 assets (liabilities):

Commodity derivative asset

1,116,740

1,116,740

-

1,116,740

-

The following methods and assumptions were used to estimate the fair values in the tables above.

Level 2 Fair Value Measurements

Commodity derivatives — The fair values of commodity derivatives are estimated using internal option pricing models based upon forward curves and data obtained from independent third parties for contracts with similar terms or data obtained from counterparties to the agreements.

Assets and Liabilities Measured on a Non-Recurring Basis

The Company utilizes fair value on a non-recurring basis to perform impairment tests on its oil and gas properties when required. During the year ended December 31, 2014, the Company recognized impairment on proved oil and gas properties of $29,858,178. These proved oil and gas properties are located in the Logan County Field in Oklahoma and the fair value evaluation was performed on a field basis. The factors used to determine fair value are subject to our judgment and expertise and include, but are not limited to, recent actual or proposed sales prices of comparable properties, the present value of future cash flows, net of estimated operating and development costs using estimates of proved reserves, future commodity pricing, future production estimates, anticipated capital expenditures, and various discount rates commensurate with the risk and current market conditions associated with realizing the expected cash flows projected and would generally be classified within Level 3.

Carrying

Amount

Total

Fair Value Measurements Using:

(before

Fair

Level 1

Level 2

Level 3

impairment)

Value

Inputs

Inputs

Inputs

December 31, 2014 assets (liabilities):

Proved oil and gas properties, net book value

50,872,404

21,014,226

-

-

21,014,226

Recent Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. The ASU will supersede most of the existing revenue recognition requirements in GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which it expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires disclosures sufficient to enable users to understand an entity’s nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In April 2015, the FASB proposed a one-year deferral of the effective date of the new standard. If approved, the new standard will be effective for the Company in fiscal 2018. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which 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. 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 is evaluating the impact, if any, that ASU 2014-09 and ASU 2014-15 will have on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. The standard requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. The standard will become effective for the Company beginning January 1, 2016. The implementation of this standard is not expected to have a significant impact on our consolidated financial statements.

Oil_and_Gas_Properties

Oil and Gas Properties	3 Months Ended
	Mar. 31, 2015
Oil and Gas Property [Abstract]
Oil and Gas Properties	3. OIL AND GAS PROPERTIES
	Oil and gas properties consisted of the following:
		31-Mar-15			31-Dec-14
	Properties subject to amortization	$	60,609,983		$	60,168,713
	Properties not subject to amortization		1,960,121			1,942,045
	Capitalized asset retirement costs		5,158			5,158
	Accumulated impairment, depreciation and depletion		(40,169,572	)		(39,154,487	)
	Oil & Gas Properties, Net	$	22,405,690		$	22,961,429
	Depreciation and depletion expense for oil and gas properties totaled $1,015,085 and $992,952 in the three months ended March 31, 2015 and 2014, respectively.
	On April 21, 2011, the Company entered into a participation agreement (“Participation Agreement”) with Slawson Exploration Company (“Slawson”) and U.S. Energy Development Corporation (“USE,” Slawson and USE, together, the “Parties”). Pursuant to the terms of the Participation Agreement, Slawson and USE acquired 45% and 30% respectively, of our 10,000 acre Nemaha Ridge prospect in Logan County, Oklahoma for $4,875,000. In addition, the Parties carried Osage for 7.5% of the cost of the first three horizontal Mississippian wells, which means that for the first three horizontal Mississippian wells, the Company provided up to 17.5% of the total well costs. After the first three wells, the Company was responsible for up to 25% of the total well costs. Revenue from wells drilled pursuant to the Participation Agreement, after royalty and third party acreage interest payments, was allocated 45% to Slawson, 30% to USE and 25% to Osage. Slawson was the operator of all wells in the Nemaha Ridge prospect in sections where the Parties’ acreage controlled the section. In sections where the Parties’ acreage did not control the section, we may elect to participate in wells operated by others.
	On December 12, 2013, Osage and Slawson entered into an agreement (the “Partition Agreement”) related to certain lands located within the Nemaha Ridge in Logan County, Oklahoma, and for the exploration and development of those leases by the Parties.
	Under the Partition Agreement and effective as of September 1, 2013, the Slawson Exploration Group agreed to assign all of its rights, title and interest in and to the oil and gas leases and force-pooled acreage which are part of the Nemaha Ridge Project within certain sections to Osage and Osage agreed to assign all of its rights, title and interest in and to the oil and gas leases and force-pooled acreage which are part of the Nemaha Ridge Project within certain sections to the Slawson Exploration Group, such that the net acreage controlled by the parties would remain substantially unchanged, but that the acreage controlled by each of the parties in undeveloped sections would be located in sections where the other party did not control acreage. The parties also agreed that the Participation Agreement would terminate as to all lands within the Nemaha Ridge Project except for lands within sections already developed by the parties which shall continue to be controlled by the Participation Agreement.
	In September 2014, Slawson sold its interests in its oil and gas properties in Logan County, Oklahoma to Stephens Energy Group, LLC and Stephens Production Company (collectively “Stephens”).
	As a result of the Partition Agreement, Osage has become the project operator on much of its acreage in the Nemaha Ridge Project. As of March 31, 2015, Osage operated or has the right to operate approximately 4,876 net acres (7,601 gross), and remains joint-venture or potential joint-venture partners with others in approximately 4,854 net acres (31,754 gross).
	In 2011, we also began to acquire leases in Coal County, Oklahoma, targeting the Woodford Shale formation. The Woodford Shale formation is located mainly in southeastern Oklahoma in the Arkoma Basin. The Woodford shale lies directly under the Mississippian and started as a vertical play, but horizontal drilling techniques and multi-stage fracturing technology have been used in the Woodford in recent years with much success. At March 31, 2015, we had 3,037 net (7,502 gross) acres leased in Coal County.
	In 2011, the Company began to acquire leases in Pawnee County, Oklahoma, targeting the Mississippian formation. In July 2011, we purchased from B&W Exploration, Inc. (“B&W”) the Pawnee County prospect targeting the Mississippian, for $8,500. In addition, B&W is also entitled to an overriding royalty interest on the leases acquired and a 12.5% carry on the first $200,000 of lease bonus paid in the form of an assignment of 12.5% of the leases acquired. Subsequently, B&W shall have an option to purchase a 12.5% share of leasehold acquired on a heads-up basis. As of March 31, 2015, the Company had 2,886 net acres (3,784 gross) leased in Pawnee County.
	At March 31, 2015, we have leased 15,653 net (50,541 gross) acres across three counties in Oklahoma as follows:
		Gross			Osage Net
	Logan - non-operated		31,754			4,854
	Logan - Osage		7,601			4,876
	Coal		7,502			3,037
	Pawnee		3,784			2,886
			50,541			15,653

Segment_and_Geographical_Infor

Segment and Geographical Information	3 Months Ended
	Mar. 31, 2015
Segments, Geographical Areas [Abstract]
Segment and Geographical Information	4. SEGMENT AND GEOGRAPHICAL INFORMATION
	At March 31, 2015 and December 31, 2014, the Company’s operations comprised one segment in one geographic region.

Debt

Debt	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
Debt	5. DEBT
	Apollo - Note Purchase Agreement
	On April 27, 2012, we entered into a $10,000,000 senior secured note purchase agreement (“Note Purchase Agreement” or “Notes”) with Apollo Investment Corporation (“Apollo”). The Notes, which mature on April 27, 2015, are secured by substantially all of the assets of the Company, including a mortgage on all our Oklahoma leases. The Notes bear interest of Libor plus 15.0% with a Libor floor of 2.0%, with interest payable monthly. In addition, Apollo received a warrant to purchase 1,496,843 shares of common stock, exercisable at $0.01 per share, with a Black-Scholes value of $2,483,952 and an expiration date of April 27, 2017. Variables used in the valuation include (1) discount rate of 0.82%, (2) expected life of 5 years, (3) expected volatility of 245.0% and (4) zero expected dividends. The minimum draw amount on the Note Purchase Agreement is $1,000,000. At closing, we did not draw down any funds. In the year ended December 31, 2013, we drew down $17,000,000 and, as of December 31, 2013, the amount outstanding under the Note Purchase Agreement was $20,000,000.
	At closing of the Note Purchase Agreement, we paid $100,000 of a minimum placement fee to CC Natural Resource Partners, LLC (“CCNRP”) and issued a warrant to purchase 250,000 shares of common stock, exercisable at $0.01 per share, with a Black-Scholes value of $413,690 and an expiration date of April 27, 2014. Variables used in the valuation include (1) discount rate of 0.26%, (2) expected life of 2 years, (3) expected volatility of 242.0% and (4) zero expected dividends. In addition, we paid $170,692 in legal fees, of which $100,000 were paid to Apollo. In December 2012, we paid an additional $380,000 in placement fees. We also issued a warrant to purchase 100,000 shares of common stock, exercisable at $0.01 per share, with a Black-Scholes value of $89,952 and a term of five years, to the placement agent for the Note Purchase Agreement and amended the term of the warrant granted on April 27, 2012 from two to five years, with a Black-Scholes value of $1,161. Variables used in the valuation include (1) discount rate of 0.72%, (2) expected life of five years, (3) expected volatility of 242.0% and (4) zero expected dividends. In December 2013 we paid an additional $100,000 in placement fees.
	On April 5, 2013 the Company and Apollo amended the Note Purchase Agreement, increasing the amount of the facility to $20,000,000 and modifying certain covenants for the remainder of the Note Purchase Agreement term. The amendment also provided a waiver of certain covenants as of March 31, 2013, as the Company did not meet certain covenants including the minimum production covenant as of that date. The Company paid an amendment fee of $100,000 which is being amortized over the remaining term of the Note Purchase Agreement.
	On August 12, 2013, the Company and Apollo amended the Note Purchase Agreement. The amendment required that the Company, within 75 days of the effective date as defined in the amendment, complete either (1) a sale of certain assets, or (2) the issuance of capital stock in a transaction that resulted in aggregate net proceeds as defined in the amendment. In the event that the Company did not complete either one of the aforementioned transactions, the Company would have been required under the terms of the amendment to issue to Apollo additional warrants equivalent to three percent of the Company’s common stock, on a fully-diluted basis. On October 7, 2013 the Company completed the sale of its membership interests in Cimarrona LLC. This sale satisfied the requirements of the amendment and the Company is thus not obligated to issue additional Warrants to Apollo.
	On April 3, 2014, the Company and Apollo amended the Note Purchase Agreement, increasing the amount of the total facility to $30,000,000, extending the term by one year and reducing the interest rate from Libor plus 15% to Libor plus 11%. In the year ended December 31, 2014, we drew down $5,000,000 and, as of March 31, 2015 and December 31, 2014, the amount outstanding under the Note Purchase Agreement was $25,000,000.
	The Company has recorded deferred financing costs in the aggregate amount of $3,959,448 in connection with the Note Purchase Agreement, which represented the fair value of warrants issued to Apollo and CCNRP, placement fees, amendment fees and legal fees, which are amortized on a straight-line basis over the term of the Notes, which approximates the effective interest method, as the Company did not draw funds at issuance.
	On each anniversary of the closing date, the Company is obligated to pay an administrative fee of $50,000. The Company is subject to certain precedents in connection with each draw, an upfront fee equal to 2.0% of the principal amount of each draw, and is required to maintain a deposit account equal to three months of interest payments.
	The Company is subject to various affirmative, negative and financial covenants under the Note Purchase Agreement as amended along with other restrictions and requirements, all as defined in the Note Purchase Agreement. Affirmative covenants include by October 31st of each year beginning in 2012, a reserve report prepared as of the immediately preceding September 30, concerning the Company’s domestic oil and gas properties prepared by approved petroleum engineers, and thereafter as of September 30th of each year.
	The Company was not in compliance with certain covenants under the Note Purchase Agreement as of March 31, 2015 and December 31, 2014, due to production delays and a general decline in prevailing oil prices. Accordingly, the Company has classified borrowings under the Note Purchase Agreement as short term in the accompanying consolidated balance sheets.
	Use of proceeds is limited to those purposes specified in the Note Purchase Agreement. The Notes are subject to mandatory prepayment in the event of certain asset sales, insurance or condemnation proceeds, issuance of indebtedness, extraordinary receipts and tax refunds. All terms are as defined in the Note Purchase Agreement.
	In connection with the Note Purchase Agreement and certain capital leases, the Company recognized $1,003,213 of interest expense, of which $812,713 was cash interest expense, for the three months ended March 31, 2015 and $1,210,560 of interest expense, of which $862,577 was cash interest expense, for the three months ended March 31, 2014.

Derivative_Financial_Instrumen

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	6. DERIVATIVE FINANCIAL INSTRUMENTS
	The Company entered into certain derivative financial instruments with respect to a portion of its oil and gas production. These instruments are used to manage the inherent uncertainty of future revenues due to commodity price volatility and currently include only costless price collars. The Company does not intend to hold or issue derivative financial instruments for speculative trading purposes and has elected not to designate any of its derivative instruments for hedge accounting treatment.
	As of March 31, 2015, the Company had the following open oil derivative positions. These oil derivatives settle against the average of the daily settlement prices for the WTI first traded contract month on the New York Mercantile Exchange (“NYMEX”) for each successive day of the calculation period.
				Price Collars
				Monthly			Weighted Average		Weighted Average
				Volume			Floor Price		Ceiling Price
	Period			(BBLs/m)			($/BBL)		($/BBL)
	Q2, 2015			6,000		$	80	$	93.5
	As of March 31, 2015, the Company had the following open natural gas derivative positions. These natural gas derivatives settle against the NYMEX Penultimate for the calculation period.
				Price Collars
				Monthly			Weighted Average		Weighted Average
				Volume			Floor Price		Ceiling Price
	Period			(Btu/m)			($/Btu)		($/Btu)
	Q2, 2015			10,000		$	3.75	$	4.4
	Cash settlements and unrealized gains and losses on fair value changes associated with the Company’s commodity derivatives are presented in the “Gain (loss) on oil and gas derivatives’ caption in the accompanying consolidated statements of earnings.
	The following table sets forth the cash settlements and unrealized gains and losses on fair value changes for commodity derivatives for the three months ended March 31, 2015 and 2014.
		Three Months Ended			Three Months Ended
		31-Mar-15			31-Mar-14
	Cash settlements to (by) Company	$	549,554		$	(47,669	)
	Unrealized losses on commodity derivatives		(345,907	)		(68,058	)
	Gain (loss) on oil and gas derivatives	$	203,647		$	(115,727	)
	On October 15, 2013, the Company entered into an Intercreditor Agreement with Apollo and BP Energy Company to provide collateral for its oil and gas derivative financial instruments. BP Energy Corporation North America simultaneously provided a Guarantee for $25 million as collateral for BP Energy Company’s obligations to the Company.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. COMMITMENTS AND CONTINGENCIES
	Environment
	Osage, as owner and operator of oil and gas properties, is subject to various Federal, State, and local laws and regulations relating to discharge of materials into, and protection of, the environment. These laws and regulations may, among other things, impose liability on the owner of real property and the lessee under oil and gas leases for the cost of pollution clean-up resulting from operations, subject the owner/lessee to liability for pollution damages and impose restrictions on the injection of liquids into subsurface strata. Although Company environmental policies and practices are designed to ensure compliance with these laws and regulations, future developments and increasing stringent regulations could require the Company to make additional unforeseen environmental expenditures. The Company maintains insurance coverage it believes is customary in the industry, although it is not fully insured against all environmental risks. The Company is not aware of any environmental claims existing as of March 31, 2015, that would have a material impact on its consolidated financial position or results of operations. There can be no assurance, however, that current regulatory requirements will not change, or past non-compliance with environmental laws will not be discovered on the Company’s property.
	Operating Leases
	In February 2011, the Company entered into a 36 month lease for its corporate offices in San Diego. In February 2014, the Company amended this lease to extend the term for an additional three years through February 2017. In February 2012, the Company entered into a 24 month lease for a vehicle to be utilized by its operations in Oklahoma and entered into a 36 month lease for a vehicle at the termination of the original auto lease. In December 2013, the Company entered into a three year lease for office space in Oklahoma City the term for which commenced in February 2014.
	Rental expense totaled $44,163 and $30,939 in the three months ended March 31, 2015 and 2014, respectively.
	Future minimum commitments under operating leases are as follows as of March 31, 2015:
	Year			Amount
	2015 (April - December)			138,764
	2016			186,314
	2017			29,862
			$	354,940
	Capital leases
	The Company entered into a lease for certain office furniture and equipment in the first quarter of 2014. The term of the lease is three years and as the lease essentially transfer the risks of ownership it is being accounted for as a capital lease.
	Leased property under capital leases at March 31, 2015 includes:
			31-Mar-15
	Furniture and equipment	$	127,436
	less: accumulated depreciation		(27,612	)
		$	99,824
	Total depreciation expense under capital leases was $6,372 and $2,124 for the three months ended March 31, 2015 and 2014, respectively. As of March 31, 2015, the future minimum lease payments under capital leases were as follows:
	Year	Amount
	2015 (April - December)		32,217
	2016		42,956
	2017		7,158
			82,331
	Less amount representing interest		(607	)
	Present value of minimum lease payments	$	81,724
	Current maturities	$	42,503
	Non-current maturities		39,221
		$	81,724
	Legal Proceedings
	The Company has initiated litigation against Stephens with respect to their right to operate 22 wells in which we have a working interest as we contend that we should be the operator. The Company is not a party to any other litigation that has arisen in the normal course of its business or that of its subsidiaries.
	Sale of Cimarrona LLC
	On October 7, 2013, the Company completed the sale of 100% of the membership interests in Cimarrona LLC to Raven Pipeline Company, LLC (“Raven”), pursuant to a Membership Interest Purchase Agreement dated September 30, 2013 (the “Agreement”) by and between the Company and Raven. The Cimarrona property is subject to an Ecopetrol Association Contract (the “Association Contract”) whereby Ecopetrol S.A. (“Ecopetrol”) receives royalties of 20% of the oil produced. The pipeline is not subject to the Association Contract. In addition to the royalty, according to the Association Contract, Ecopetrol may, for no consideration, become a 50% partner, once an audit of revenues and expenses indicate that the partners in the Association Contract have received a 200% reimbursement of all historical costs to develop and operate the Guaduas field. If such an audit determines that the specified reimbursement of historical costs occurred prior to September 30, 2013, the Company is required to reimburse Raven for any amounts due to Ecopetrol from Cimarrona LLC which relate to the period prior to that date. The Company believes its maximum exposure is 50% of Cimarrona LLC’s oil revenues for the nine months ended September 30, 2013, or $729,308. The Company has not recorded any provision for this matter, as it is not possible to estimate the potential liability, if any.

Major_Customers

Major Customers	3 Months Ended
	Mar. 31, 2015
Risks and Uncertainties [Abstract]
Major Customers	8. MAJOR CUSTOMERS
	During the three months ended March 31, 2015 and 2014, the Company had the following customers who accounted for all of its sales:
		Three Months Ended March 31, 2015					Three Months Ended March 31, 2014
		Amount		% of Total			Amount		% of Total
	Phillips 66	$	2,058,449		70.7	%	$	-		0	%
	Slawson		-		0	%		1,917,664		72.7	%
	Stephens		453,906		15.6	%		171,764		6.5	%
	Energy Financial		255,685		8.8	%		-		0	%
	Devon		119,102		4.1	%		543,469		20.6	%
	Other		23,139		0.8	%		4,518		0.2	%
	Total	$	2,910,281		100	%	$	2,637,415		100	%
	In September 2014, Slawson sold its interests in its oil and gas properties in Logan County, Oklahoma to Stephens.

Liability_for_Asset_Retirement

Liability for Asset Retirement Obligations	3 Months Ended
	Mar. 31, 2015
Asset Retirement Obligation [Abstract]
Liability for Asset Retirement Obligations	9. LIABILITY FOR ASSET RETIREMENT OBLIGATIONS
	The Company recognizes a liability at discounted fair value for the future retirement of tangible long-lived assets and associated assets retirement cost associated with the petroleum and natural gas properties. The fair value of the liability is capitalized as part of the cost of the related asset and amortized to expense over its useful life. The liability accretes until the date of expected settlement of the retirement obligations. The related accretion expense is recognized in the statement of operations. The provision will be revised for the effect of any changes to timing related to cash flow or undiscounted abandonment costs. Actual expenditures incurred for the purpose of site reclamation are charged to the asset retirement obligations (“AROs”) to the extent that the liability exists on the balance sheet. The Company recognizes a liability at discounted fair value for the future retirement of tangible long-lived assets and associated assets retirement cost associated with the petroleum and natural gas properties. The fair value of the liability is capitalized as part of the cost of the related asset and amortized to expense over its useful life. The liability accretes until the date of expected settlement of the retirement obligations. The related accretion expense is recognized in the statements of operations. The provision will be revised for the effect of any changes to timing related to cash flow or undiscounted abandonment costs. Actual expenditures incurred for the purpose of site reclamation are charged to the asset retirement obligations (“AROs”) to the extent that the liability exists on the balance sheet. Differences between the actual costs incurred and the fair value of the liability recorded are recognized in income in the period the actual costs are incurred. There are no legally restricted assets for the settlement of AROs. No income tax is applicable to the ARO as of March 31, 2015 and December 31, 2014, because the Company records a valuation allowance on deductible temporary differences due to the uncertainty of its realization.
	A reconciliation of the Company’s asset retirement obligations for the three months ended March 31, 2015 is as follows:
		Three Months Ended
		31-Mar-15
	Beginning balance	$	6,281
	Incurred during the period		-
	Reversed during the period		-
	Additions for new wells		-
	Accretion expense		305
	Ending balance	$	6,586

Equity

Equity	3 Months Ended
	Mar. 31, 2015
Equity [Abstract]
Equity	10. EQUITY
	Common Stock and Options
	In February 2015, the Company issued 186,934 shares of common stock to two warrantholders as a result of a cashless exercise of 193,380 warrants to purchase common stock.
	In February 2015, the Company issued a total of 1,100,000 non-qualified stock options to employees and consultants, exercisable at $0.26 per share, with a Black-Scholes value of $290,860 and an expiration date of February 3, 2018. Variables used in the valuation include (1) discount rate of 0.85%, (2) expected life of 1.5 years for employees and 3 years for the consultants, (3) expected volatility of 220.0% and 221.0% for employees and consultants, respectively, and (4) zero expected dividends. These options were fully vested as of the grant date.
	In February 2014, the Company initiated a private placement, pursuant to Securities Purchase Agreements between Osage and certain purchasers, with aggregate gross proceeds of approximately $6.7 million. The purchase price of each unit, representing one share of common stock and a warrant to purchase 0.4 shares of common stock at $1.80 per share, was $0.90. The warrants have a term of five years. The placement agent received placement fees of 8%, in cash or warrants or a combination thereof at their election. In total, units representing $6,744,000 were sold in 2014, representing 7,493,339 shares of common stock and warrants to purchase 2,997,333 shares of common stock. The placement agent fees related to these units were cash fees of $338,940 and warrants to purchase 193,380 shares of common stock at $0.01 per share. In addition, the Company incurred legal fees of $10,000 with respect to the private placement in 2014.
	On January 2, 2014 the Company issued a total of 550,000 shares to three individuals in connection with amended employment and consulting agreements. Stock based compensation had already been expensed for 150,000 shares. The remaining 400,000 shares vested on January 1, 2015, and as of March 31, 2014 were valued at $436,000 based on closing prices of $1.00 for 200,000 shares and $1.18 for 200,000 shares. Stock based compensation on the 400,00 shares was expensed over one year in 2014.
	Warrants
	In February, 2015, 193,380 warrants were exercised by way of cashless exercise, resulting in the issuance of 186,934 shares of common stock (see above).
	During the three months ended March 31, 2014, 200,000 warrants were exercised by a consultant who had previously received the warrants in exchange for services.
	Total stock-based compensation expense was $290,860 and $109,000 for the three months ended March 31, 2015 and 2014, respectively. All stock-based compensation expense is included in general and administrative expenses in the accompanying unaudited financial statements.

Summary_of_Significiant_Accoun

Summary of Significiant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Going Concern

Going Concern

The Company has an accumulated deficit of $39,486,653 and a working capital deficit of $36,128,717 as of March 31, 2015. As of March 31, 2015, as a result of production delays and a general decline in prevailing oil prices, the Company was not able to operate profitably and was not in compliance with certain covenants under the senior secured note purchase agreement. (see Note 5 - Debt). Without additional financing, the Company may not be able to fully implement its operating plan. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

On April 27, 2012, we entered into a $10,000,000 senior secured note purchase agreement with Apollo Investment Corporation. On April 5, 2013 we amended this agreement, increasing the facility to $20,000,000. On April 3, 2014, the Company and Apollo amended the Note Purchase Agreement, increasing the amount of the total facility to $30,000,000, extending the term by one year and reducing the interest rate from Libor plus 15% to Libor plus 11%. During the year ended December 31, 2014, we drew down $5,000,000 of additional funds and, as of December 31, 2014 and March 31, 2015, the amount outstanding under the senior secured note purchase agreement was $25,000,000.

Management of the Company has undertaken steps as part of a plan to improve operations with the goal of sustaining our operations for the next 12 months and beyond. These steps include (a) becoming operators of our own wells, (b) participating in drilling of wells in Logan County, Oklahoma within the next 12 months, (c) controlling overhead and expenses, (d) selling portions of existing operations, and (e) raising additional equity and/or debt.

The Company’s operating plans require additional funds which may take the form of debt or equity financings. The Company’s ability to continue as a going concern is dependent upon achieving profitable operations and obtaining additional financing. Our cash flows and results of operations depend to a great extent on the prevailing prices for oil and gas. Prolonged or substantial declines in oil / and/or gas prices may materially and adversely affect our liquidity, the amount of cash flows we have available for our capital expenditures and other operating expenses, our ability to access credit and capital markets and our results of operations. There is no assurance additional funds will be available on acceptable terms or at all.

These consolidated financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying consolidated financial statements.

Basis of Consolidation

Basis of Consolidation

The consolidated financial statements include the accounts of Osage and its wholly owned subsidiaries, Osage Energy Company, LLC and Osage Exploration and Development Operating, LLC. Accordingly, all references herein to Osage or the Company include the consolidated results. All significant inter-company accounts and transactions were eliminated in consolidation.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management used significant estimates in determining the carrying value of its oil and gas producing assets and the associated impairment, depreciation and depletion expense related to sales volumes. The significant estimates included the use of proved oil and gas reserve volumes and the related present value of estimated future net revenues there-from.

Reclassifications

Reclassifications

Certain amounts included in the prior year financial statements have been reclassified to conform to the current year’s presentation. These reclassifications have no effect on the reported results in 2015 or 2014.

Risk Factors Related to Concentration of Sales and Products

Risk Factors Related to Concentration of Sales and Products

The Company’s future financial condition and results of operations depend upon prices received for its oil and natural gas and the costs of finding, acquiring, developing and producing reserves. Prices for oil and natural gas are subject to fluctuations in response to changes in supply, market uncertainty and a variety of other factors beyond the Company’s control. These factors include worldwide political instability (especially in the Middle East), the foreign supply of oil and natural gas, the price of foreign imports, the level of consumer product demand and the price and availability of alternative fuels.

Cash and Equivalents

Cash and Equivalents

Cash and equivalents consist of short-term, highly liquid investments readily convertible into cash with an original maturity of three months or less.

Concentration of Credit Risk

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk are cash and accounts receivable arising from its normal business activities. The Company places its cash in what it believes are credit-worthy financial institutions. However, the Company’s cash balances have exceeded the FDIC insured levels at various times during the three months ended March 31, 2015 and 2014. The Company maintains cash accounts only at large, high quality financial institutions and believes the credit risk associated with cash held in banks exceeding the FDIC insured levels is remote. The Company generated substantially all of its revenues from seven customers and four customers in the three months ended March 31, 2015 and March 31, 2014, respectively.

Deferred Financing Costs

Deferred Financing Costs

The Company incurred deferred financing costs in connection with the Note Purchase Agreement (see Note 5), which represented the fair value of warrants, placement fees and legal fees. Deferred financing costs of $3,959,448 are being amortized over the term of the Note Purchase Agreement on a straight-line basis, which approximates the effective interest method. In 2014, the term of the Note Purchase Agreement was extended by one year.

Deferred financing costs net of accumulated amortization at March 31, 2015 were $819,142. Amortization of deferred financing costs was $190,500 for the three months ended March 31, 2015, and $347,983 for the three months ended March 31, 2014.

Restricted Cash

Restricted Cash

In connection with the Apollo Note Purchase Agreement, as amended (see Note 5), the Company has classified $812,500, representing three months interest, as restricted cash as of March 31, 2015 and December 31, 2014, respectively. The Company has also pledged $80,857 for certain bonds and sureties at March 31, 2015. Restricted cash at March 31, 2015 was $893,357, compared to $896,367 at December 31, 2014.

Risk Management Activities

Risk Management Activities

The Company has entered into certain derivative financial instruments to manage the inherent uncertainty of future revenues. The Company does not intend to hold or issue derivative financial instruments for speculative purposes and has elected not to designate any of its derivative instruments for hedge accounting treatment. These derivative financial instruments are marked to market at each reporting period.

Net Loss Per Share

Net Loss Per Share

In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260 “Earnings Per Share,” the Company’s basic net loss per share of common stock is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share of common stock is computed by dividing the net loss using the weighted-average number of common shares including potential dilutive common shares outstanding during the period. Potential common shares are excluded from the computation of diluted net loss per share if anti-dilutive.

The following table shows the computation of basic and diluted net loss per share for the three months ended March 31, 2015 and 2014:

Three Months Ended March 31,

2015

2014

Net loss

$

$

(935,127

)

Basic and diluted net loss per share

$

(0.01

)

$

(0.02

)

Basic and diluted weighted average shares outstanding

58,218,483

51,602,380

Potential common shares consisted of 8,394,179 and 4,531,392 warrants and options to purchase common stock at March 31, 2015 and 2014, respectively. All of these warrants and options were excluded from the computations for the three months March 31, 2015 and 2014, as their effect would have been anti-dilutive.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

The Company follows the guidance provided under FASB ASC Topic 360 (“ASC 360”), “Accounting for the Impairment or Disposal of Long-Lived Assets”, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The Company periodically evaluates the carrying value of long-lived assets to be held and used in accordance with ASC 360. ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal. During the three months ended March 31, 2015 and 2014, the Company did not record impairment charges related to its long-lived assets.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

As of March 31, 2015 and December 31, 2014, the fair value of cash, accounts receivable, short term debt and accounts payable approximate carrying values because of the short-term maturity of these instruments.

FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest.

The three levels of valuation hierarchy are defined as follows:

●

Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

●

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

●

Level 3 inputs to the valuation methodology use one or more unobservable inputs which are significant to the fair value measurement.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC Topic 480, “Distinguishing Liabilities from Equity,” and ASC Topic 815, “Derivatives and Hedging.”

As of March 31, 2015 and December 31, 2014, the Company identified certain derivative financial instruments which required disclosure at fair value on the balance sheet.

The following table presents information for those assets and liabilities requiring disclosure at fair value as of March 31, 2015 and December 31, 2014:

Total

Fair Value Measurements Using:

Carrying

Fair

Level 1

Level 2

Level 3

Amount

Value

Inputs

Inputs

Inputs

March 31, 2015 assets (liabilities):

Commodity derivative asset

770,833

770,833

-

770,833

-

December 31, 2014 assets (liabilities):

Commodity derivative asset

1,116,740

1,116,740

-

1,116,740

-

The following methods and assumptions were used to estimate the fair values in the tables above.

Level 2 Fair Value Measurements

Commodity derivatives — The fair values of commodity derivatives are estimated using internal option pricing models based upon forward curves and data obtained from independent third parties for contracts with similar terms or data obtained from counterparties to the agreements.

Assets and Liabilities Measured on a Non-Recurring Basis

The Company utilizes fair value on a non-recurring basis to perform impairment tests on its oil and gas properties when required. During the year ended December 31, 2014, the Company recognized impairment on proved oil and gas properties of $29,858,178. These proved oil and gas properties are located in the Logan County Field in Oklahoma and the fair value evaluation was performed on a field basis. The factors used to determine fair value are subject to our judgment and expertise and include, but are not limited to, recent actual or proposed sales prices of comparable properties, the present value of future cash flows, net of estimated operating and development costs using estimates of proved reserves, future commodity pricing, future production estimates, anticipated capital expenditures, and various discount rates commensurate with the risk and current market conditions associated with realizing the expected cash flows projected and would generally be classified within Level 3.

Carrying

Amount

Total

Fair Value Measurements Using:

(before

Fair

Level 1

Level 2

Level 3

impairment)

Value

Inputs

Inputs

Inputs

December 31, 2014 assets (liabilities):

Proved oil and gas properties, net book value

50,872,404

21,014,226

-

-

21,014,226

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. The ASU will supersede most of the existing revenue recognition requirements in GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which it expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires disclosures sufficient to enable users to understand an entity’s nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In April 2015, the FASB proposed a one-year deferral of the effective date of the new standard. If approved, the new standard will be effective for the Company in fiscal 2018. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which 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. 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 is evaluating the impact, if any, that ASU 2014-09 and ASU 2014-15 will have on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. The standard requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. The standard will become effective for the Company beginning January 1, 2016. The implementation of this standard is not expected to have a significant impact on our consolidated financial statements.

Summary_of_Significiant_Accoun1

Summary of Significiant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share

The following table shows the computation of basic and diluted net loss per share for the three months ended March 31, 2015 and 2014:

Three Months Ended March 31,

2015

2014

Net loss

$

$

(935,127

)

Basic and diluted net loss per share

$

(0.01

)

$

(0.02

)

Basic and diluted weighted average shares outstanding

58,218,483

51,602,380

Schedule of Fair Value Measurements Assets and Liability

The following table presents information for those assets and liabilities requiring disclosure at fair value as of March 31, 2015 and December 31, 2014:

Total

Fair Value Measurements Using:

Carrying

Fair

Level 1

Level 2

Level 3

Amount

Value

Inputs

Inputs

Inputs

March 31, 2015 assets (liabilities):

Commodity derivative asset

770,833

770,833

-

770,833

-

December 31, 2014 assets (liabilities):

Commodity derivative asset

1,116,740

1,116,740

-

1,116,740

-

Schedule of Assets and Liabilities Measured on Non-recurring Basis

Carrying

Amount

Total

Fair Value Measurements Using:

(before

Fair

Level 1

Level 2

Level 3

impairment)

Value

Inputs

Inputs

Inputs

December 31, 2014 assets (liabilities):

Proved oil and gas properties, net book value

50,872,404

21,014,226

-

-

21,014,226

Oil_and_Gas_Properties_Tables

Oil and Gas Properties (Tables)	3 Months Ended
	Mar. 31, 2015
Oil and Gas Property [Abstract]
Schedule of Oil and Gas Properties	Oil and gas properties consisted of the following:
		31-Mar-15			31-Dec-14
	Properties subject to amortization	$	60,609,983		$	60,168,713
	Properties not subject to amortization		1,960,121			1,942,045
	Capitalized asset retirement costs		5,158			5,158
	Accumulated impairment, depreciation and depletion		(40,169,572	)		(39,154,487	)
	Oil & Gas Properties, Net	$	22,405,690		$	22,961,429
Schedule of Area of Land Leased	At March 31, 2015, we have leased 15,653 net (50,541 gross) acres across three counties in Oklahoma as follows:
		Gross			Osage Net
	Logan - non-operated		31,754			4,854
	Logan - Osage		7,601			4,876
	Coal		7,502			3,037
	Pawnee		3,784			2,886
			50,541			15,653

Derivative_Financial_Instrumen1

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2015
Schedule of Cash Settlements and Unrealized Gains (Losses) on Fair Value Changes for Commodity Derivatives	The following table sets forth the cash settlements and unrealized gains and losses on fair value changes for commodity derivatives for the three months ended March 31, 2015 and 2014.
		Three Months Ended			Three Months Ended
		31-Mar-15			31-Mar-14
	Cash settlements to (by) Company	$	549,554		$	(47,669	)
	Unrealized losses on commodity derivatives		(345,907	)		(68,058	)
	Gain (loss) on oil and gas derivatives	$	203,647		$	(115,727	)
Oil [Member]
Schedule of Oil and Natural Gas Open Derivative Positions				Price Collars
				Monthly			Weighted Average		Weighted Average
				Volume			Floor Price		Ceiling Price
	Period			(BBLs/m)			($/BBL)		($/BBL)
	Q2, 2015			6,000		$	80	$	93.5
Natural Gas Member]
Schedule of Oil and Natural Gas Open Derivative Positions				Price Collars
				Monthly			Weighted Average		Weighted Average
				Volume			Floor Price		Ceiling Price
	Period			(Btu/m)			($/Btu)		($/Btu)
	Q2, 2015			10,000		$	3.75	$	4.4

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Commitments Under Operating Leases	Future minimum commitments under operating leases are as follows as of March 31, 2015:
	Year			Amount
	2015 (April - December)			138,764
	2016			186,314
	2017			29,862
			$	354,940
Schedule of Leased Property Under Capital Leases	Leased property under capital leases at March 31, 2015 includes:
			31-Mar-15
	Furniture and equipment	$	127,436
	less: accumulated depreciation		(27,612	)
		$	99,824
Schedule of Future Minimum Lease Payments Under Capital Leases	As of March 31, 2015, the future minimum lease payments under capital leases were as follows:
	Year	Amount
	2015 (April - December)		32,217
	2016		42,956
	2017		7,158
			82,331
	Less amount representing interest		(607	)
	Present value of minimum lease payments	$	81,724
	Current maturities	$	42,503
	Non-current maturities		39,221
		$	81,724

Major_Customers_Tables

Major Customers (Tables)	3 Months Ended
	Mar. 31, 2015
Major Customers Tables
Schedule of Major Customers Accounting for All of Its Sale	During the three months ended March 31, 2015 and 2014, the Company had the following customers who accounted for all of its sales:
		Three Months Ended March 31, 2015					Three Months Ended March 31, 2014
		Amount		% of Total			Amount		% of Total
	Phillips 66	$	2,058,449		70.7	%	$	-		0	%
	Slawson		-		0	%		1,917,664		72.7	%
	Stephens		453,906		15.6	%		171,764		6.5	%
	Energy Financial		255,685		8.8	%		-		0	%
	Devon		119,102		4.1	%		543,469		20.6	%
	Other		23,139		0.8	%		4,518		0.2	%
	Total	$	2,910,281		100	%	$	2,637,415		100	%

Liability_for_Asset_Retirement1

Liability for Asset Retirement Obligations (Tables)	3 Months Ended
	Mar. 31, 2015
Asset Retirement Obligation [Abstract]
Schedule of Reconciliation of Asset Retirement Obligations	A reconciliation of the Company’s asset retirement obligations for the three months ended March 31, 2015 is as follows:
		Three Months Ended
		31-Mar-15
	Beginning balance	$	6,281
	Incurred during the period		-
	Reversed during the period		-
	Additions for new wells		-
	Accretion expense		305
	Ending balance	$	6,586

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Apr. 03, 2014	Apr. 27, 2012	Apr. 05, 2013
	Customers	Customers
Accumulated deficit	$39,486,653		$38,729,362
Working capital deficit	36,128,717
Note purchase agreement extended period	1 year
Proceeds from secured promissory notes	5,000,000
Number of customers	7	4
Deferred financing costs	3,959,448
Deferred financing costs net of accumulated amortization	819,142
Amortization of deferred finance costs	190,500	347,983
Restricted cash	893,357		896,367
Pledged for bonds and sureties	80,857
Warrant and options to purchase share of common stock were excluded from the computation as their effect would have been anti-dilutive	8,394,179	4,531,392
Impairment of long-lived assets	29,858,178
Apollo Note Purchase Agreement [Member]
Restricted cash	812,500		812,500
Apollo Investment Corporation [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt interest rate				15.00%
Apollo Investment Corporation [Member] | Senior Secured Note Purchase Agreement [Member]
Senior secured notes	25,000,000				10,000,000
Apollo Investment Corporation [Member] | Senior Secured Note Purchase Agreement [Member] | Maximum [Member]
Senior secured notes				30,000,000		$20,000,000
Apollo Investment Corporation [Member] | Senior Secured Note Purchase Agreement [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt interest rate				11.00%

Summary_of_Significant_Account2

Summary of Significant Accounting Policies - Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Accounting Policies [Abstract]
Net loss	($757,291)	($935,127)
Basic and diluted loss per share	($0.01)	($0.02)
Basic and diluted weighted average shares outstanding	58,218,483	51,602,380

Summary_of_Significant_Account3

Summary of Significant Accounting Policies - Schedule of Fair Value Measurements Assets and Liability (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Commodity derivative asset	$770,833
Commodity derivative liability		1,116,740
Level 1 Inputs [Member]
Commodity derivative asset
Commodity derivative liability
Level 2 Inputs [Member]
Commodity derivative asset	770,833
Commodity derivative liability		1,116,740
Level 3 Inputs [Member]
Commodity derivative asset
Commodity derivative liability
Carrying Amount [Member]
Commodity derivative asset	770,833
Commodity derivative liability		$1,116,740

Summary_of_Significiant_Accoun2

Summary of Significiant Accounting Policies - Schedule of Assets and Liabilities Measured on Non-recurring Basis (Details) (USD $)	Mar. 31, 2015
Proved oil & gas properties, net book value	$21,014,226
Level 1 Inputs [Member]
Proved oil & gas properties, net book value
Level 2 Inputs [Member]
Proved oil & gas properties, net book value
Level 3 Inputs [Member]
Proved oil & gas properties, net book value	21,014,226
Carrying Amount [Member]
Proved oil & gas properties, net book value	$50,872,404

Oil_and_Gas_Properties_Details

Oil and Gas Properties (Details Narrative) (USD $)	1 Months Ended	0 Months Ended	3 Months Ended
	Jul. 31, 2011	Apr. 21, 2011	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2011
						acre
Percentage of leases acquired	12.50%
Gross acres of leased land			50,541
Purchase of oil prospects	$8,500		$22,405,690		$22,961,429
Percentage of the cost of wells		7.50%
Net acres of leased land			15,653
Lease bonus paid	200,000
Others [Member]
Gross acres of leased land			31,754
Net acres of leased land			4,854
Parent Company [Member]
Gross acres of leased land			7,601
Net acres of leased land			4,876
Coal Country [Member]
Gross acres of leased land						7,502
Net acres of leased land						3,037
Pawnee [Member]
Gross acres of leased land			3,784
Net acres of leased land			2,886
Oklahoma County [Member]
Gross acres of leased land			50,541
Net acres of leased land			15,653
Slawson Exploration Company [Member]
Percentage of leases acquired		45.00%
Percentage of interest payments		45.00%
USE [Member]
Percentage of leases acquired		30.00%
Percentage of interest payments		30.00%
Nemaha Ridge Logan County [Member]
Gross acres of leased land		10,000
Purchase of oil prospects		4,875,000
First Three Horizontal Mississippian Wells [Member]
Percentage of the cost of wells		17.50%
After First Three Horizontal Mississippian Wells [Member]
Percentage of the cost of wells		25.00%
Osage [Member]
Percentage of interest payments		25.00%
Oil and Gas Properties [Member]
Depreciation and depletion expense			$1,015,085	$992,952

Oil_and_Gas_Properties_Schedul

Oil and Gas Properties - Schedule of Oil and Gas Properties (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Jul. 31, 2011
Oil and Gas Property [Abstract]
Properties subject to amortization	$60,609,983	$60,168,713
Properties not subject to amortization	1,960,121	1,942,045
Capitalized asset retirement costs	5,158	5,158
Accumulated impairment, depreciation and depletion	-40,169,572	-39,154,487
Oil & Gas Properties, Net	$22,405,690	$22,961,429	$8,500

Oil_and_Gas_Properties_Schedul1

Oil and Gas Properties - Schedule of Area of Land Leased (Details)	Mar. 31, 2015
	acre
Gross acres of leased land	50,541
Net acres of leased land	15,653
Logan - Non Operated [Member]
Gross acres of leased land	31,754
Net acres of leased land	4,854
Logan - Osage [Member]
Gross acres of leased land	7,601
Net acres of leased land	4,876
Coal [Member]
Gross acres of leased land	7,502
Net acres of leased land	3,037
Pawnee [Member]
Gross acres of leased land	3,784
Net acres of leased land	2,886

Segment_and_Geographical_Infor1

Segment and Geographical Information (Details Narrative)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
	Region	Segment
	Segment	Region
Segments, Geographical Areas [Abstract]
Number of segment	1	1
Number of geographic region	1	1

Debt_Details_Narrative

Debt (Details Narrative) (USD $)	3 Months Ended		0 Months Ended			12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Apr. 03, 2014	Apr. 03, 2014	Apr. 27, 2012	Dec. 31, 2014	Apr. 05, 2013	Dec. 31, 2013	Dec. 31, 2012
Minimum amount draw through purchase of notes	$5,000,000
Note purchase agreemnt outstanding amount	25,000,000					25,000,000
Deferred financing costs	3,959,448
Administrative fee	50,000
Percentage of upfront fee equal of principal amount	2.00%
Interest expense	1,003,213	1,210,560
Cash interest expense	812,713	862,577
Minimum [Member]
Percentage of LIBOR plus interest rate			15.00%
Maximum [Member]
Percentage of LIBOR plus interest rate				11.00%
Warrant [Member]
Discount rate					0.82%
Expected life in years					5 years
Expected volatility rate					245.00%
Expected dividends rate					0.00%
Apollo Investment Corporation [Member]
Notes maturity date					27-Apr-15
Percentage of LIBOR plus interest rate					15.00%
Percentage of LIBOR floor interest rate					2.00%
Warrants issued to purchase of common stock					1,496,843
Warrants maturity date					27-Apr-17
Note purchase agreemnt outstanding amount			30,000,000	30,000,000			20,000,000
Line of credit facility, interest rate description						reducing the interest rate from Libor plus 15% to Libor plus 11%
Legal fees on notes							100,000
Apollo Investment Corporation [Member] | Senior Secured Note Purchase Agreement [Member]
Senior secured notes					10,000,000
Warrants exercise price					0.01
Warrants value using Black-Scholes					2,483,952
Minimum amount draw through purchase of notes	1,000,000							17,000,000
Note purchase agreemnt outstanding amount								20,000,000
Legal fees on notes	100,000
CC Natural Resource Partners, LLC [Member]
Note purchase agreement minimum placement fee					100,000			100,000	380,000
Warrants issued to purchase of common stock	100,000				250,000
Warrants exercise price	$0.01				0.01
Warrants value using Black-Scholes	89,952				413,690
Warrants maturity date					27-Apr-14
Legal fees on notes					170,692
CC Natural Resource Partners, LLC [Member] | Warrant [Member]
Discount rate	0.26%
Expected life in years	2 years
Expected volatility rate	242.00%
Expected dividends rate	0.00%
CC Natural Resource Partners, LLC [Member] | Amended Warrants [Member]
Warrants value using Black-Scholes	$1,161
Discount rate	0.72%
Expected life in years	5 years
Expected volatility rate	242.00%
Expected dividends rate	0.00%

Derivative_Financial_Instrumen2

Derivative Financial Instruments (Details Narrative) (USD $)	Oct. 15, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Collateral amount	$25,000,000

Derivative_Financial_Instrumen3

Derivative Financial Instruments - Schedule of Oil Open Derivative Positions (Details) (Oil [Member], Q2, 2015 [Member])	3 Months Ended
	Mar. 31, 2015
	bbl
Oil [Member] | Q2, 2015 [Member]
Monthly Volume (BBLs/m)	6,000
Weighted Average Floor Price ($/BBL)	80
Weighted Average Ceiling Price ($/BBL)	93.5

Derivative_Financial_Instrumen4

Derivative Financial Instruments - Schedule of Natural Gas Open Derivative Positions (Details) (Natural Gas Member], Q2, 2015 [Member])	3 Months Ended
	Mar. 31, 2015
	Btu
Natural Gas Member] | Q2, 2015 [Member]
Monthly Volume (Btu/m)	10,000
Weighted Average Floor Price ($/Btu)	3.75
Weighted Average Ceiling Price ($/BBL)	4.4

Derivative_Financial_Instrumen5

Derivative Financial Instruments - Schedule of Cash Settlements and Unrealized Gains (Losses) on Fair Value Changes for Commodity Derivatives (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash settlements to (by) Company	$549,554	($47,669)
Unrealized losses on commodity derivatives	-345,907	-68,058
Gain (loss) on oil and gas derivatives	$203,647	($115,727)

Commitments_and_Contingencies_1

Commitments and Contingencies (Details Narrative) (USD $)	1 Months Ended			3 Months Ended		9 Months Ended
	Feb. 28, 2014	Feb. 29, 2012	Feb. 28, 2011	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2013
Lease periods in months		24 months	36 months
Extended lease term	3 years
Rental expense				$44,163	$30,939
Depreciation expense				6,372	2,124
Oil revenues				2,463,828	2,132,817
Cimarrona LLC [Member]
Lease periods in months						36 months
Percentage of sale membership interest						100.00%
Percentage of royalty received for oil produced						20.00%
Percentage of additional royalty received						50.00%
Percentage of received reimbursement of all historical costs						200.00%
Percentage of maximum exposure						50.00%
Oil revenues						$729,308

Commitments_and_Contingencies_2

Commitments and Contingencies - Schedule of Future Minimum Commitments Under Operating Leases (Details) (USD $)	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
2015 (April - December)	$138,764
2016	186,314
2017	29,862
Total	$354,940

Commitments_and_Contingencies_3

Commitments and Contingencies - Schedule of Leased Property Under Capital Leases (Details) (USD $)	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Furniture and equipment	$127,436
less: accumulated depreciation	-27,612
Leased property under capital leases, total	$99,824

Commitments_and_Contingencies_4

Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Capital Leases (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
2015 (April - December)	$32,217
2016	42,956
2017	7,158
Future minimum payments due	82,331
Less amount representing interest	-607
Present value of minimum lease payments	81,724
Current maturities	42,503	45,698
Non-current maturities	39,221	50,135
Capital lease	$81,724

Major_Customers_Schedule_of_Ma

Major Customers - Schedule of Major Customers Accounting for All of its Sale (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenue from major customers	$2,910,280	$2,637,415
Percentage of revenue from major customers	100.00%	100.00%
Phillips 66 [Member]
Revenue from major customers	2,058,449
Percentage of revenue from major customers	70.70%	0.00%
Slawson Exploration Company [Member]
Revenue from major customers		1,917,664
Percentage of revenue from major customers	0.00%	72.70%
Stephens [Member]
Revenue from major customers	453,906	171,764
Percentage of revenue from major customers	15.60%	6.50%
Energy Financial [Member]
Revenue from major customers	255,685
Percentage of revenue from major customers	8.80%	0.00%
Devon [Member]
Revenue from major customers	119,102	543,469
Percentage of revenue from major customers	4.10%	20.60%
Others [Member]
Revenue from major customers	$23,139	$4,518
Percentage of revenue from major customers	0.80%	0.20%

Liability_for_Asset_Retirement2

Liability for Asset Retirement Obligations (Details Narrative) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Asset Retirement Obligation [Abstract]
Legally restricted assets for settlement of AROs	$0
Asset retirement obligation, income tax	$0	$0

Liability_for_Asset_Retirement3

Liability for Asset Retirement Obligations - Schedule of Reconciliation of Asset Retirement Obligations (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Asset Retirement Obligation Disclosure [Abstract]
Beginning balance	$6,281
Incurred during the period
Reversed during the period
Additions for new wells
Accretion expense	305	200
Ending balance	$6,586

Equity_Details_Narrative

Equity (Details Narrative) (USD $)	0 Months Ended	1 Months Ended		3 Months Ended		12 Months Ended
	Jan. 02, 2014	Feb. 28, 2015	Feb. 28, 2014	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Number of shares non-quilified stock option to employees and consultants		1,100,000
Exercisable price per share		$0.26
Stock option value		$290,860
Stock option expiration date		3-Feb-18
Discount rate		0.85%
Expected dividends		0.00%
Proceeds from issuance of private placement			6,700,000	6,700,000
Number of common stock warrants purchase			0.4
Common stock price per share			$1.80
Warrants price per share			$0.90
Warrant, expiration term			5 years
Percentage of placement fee in cash or warrants			8.00%
Units sold			6,744,000
Common stock, shares				58,284,948		58,098,014
Legal fees						10,000
Shares issued under employment agreement	550,000
Stock based compensation, shares	150,000
Shares issued during period remaining shares vested	400,000
Shares issued during period remaining shares vested, value	436,000
Warrants, exercised					200,000
Stock-based compensation expense				290,860	109,000
Placement Agent Fees [Member]
Common stock price per share			$0.01
Warrants issued to purchase of common stock			193,380
Placement agent fees paid in cash			$338,940
Share Valuation Condition One [Member]
Shares issued during period remaining shares vested	200,000
Shares, closing prices, per share	$1
Share Valuation Condition Two [Member]
Shares issued during period remaining shares vested	200,000
Shares, closing prices, per share	$1.18
Common Stock [Member]
Common stock, shares			7,493,339
Warrants issued to purchase of common stock			2,997,333
Warrant [Member]
Stock based compensation, shares		40,000
Warrants, exercised		193,380
Issuance of share of common stock		186,934
Number of warrants exercised for consultant services		20,000
Two Warrantholders [Member]
Common stock issued to brokers		186,934
Number of cashless exercise warrants to purchase common stock		193,380
Employees [Member]
Exprected life		1 year 6 months
Expected volatility rate		220.00%
Consultants [Member]
Exprected life		3 years
Expected volatility rate		221.00%