Document Entity Information Doc
Document Entity Information Document | 3 Months Ended |
Mar. 31, 2018shares | |
Entity Information | |
Entity Registrant Name | ROCKIES REGION 2007 LP |
Entity Central Index Key | 1,407,805 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Smaller Reporting Company |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 0 |
Additional General Partnership Units Outstanding | 0 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) Statement - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 341,657 | $ 357,711 |
Accounts receivable | 141,083 | 166,651 |
Accounts receivable - other | 199,962 | 0 |
Crude oil inventory | 17,979 | 37,443 |
Total current assets | 700,681 | 561,805 |
Crude oil and natural gas properties, successful efforts method, at cost | 4,313,472 | 4,413,455 |
Less: Accumulated depreciation, depletion and amortization | (2,627,420) | (2,578,345) |
Crude oil and natural gas properties, net | 1,686,052 | 1,835,110 |
Total Assets | 2,386,733 | 2,396,915 |
Current liabilities: | ||
Due to Managing General Partner-other, net | 589,795 | 638,081 |
Current portion of asset retirement obligations | 1,000,000 | 750,000 |
Total current liabilities | 1,589,795 | 1,388,081 |
Asset retirement obligations | 1,038,514 | 1,450,305 |
Total liabilities | 2,628,309 | 2,838,386 |
Commitments and contingent liabilities | ||
Partners' equity (deficit): | ||
Managing General Partner | (5,279,759) | (5,353,720) |
Limited Partners - 4,470 units issued and outstanding | 5,038,183 | 4,912,249 |
Total Partners' equity (deficit) | (241,576) | (441,471) |
Total Liabilities and Partners' Equity (Deficit) | $ 2,386,733 | $ 2,396,915 |
Balance Sheet Parentheticals (P
Balance Sheet Parentheticals (Parentheticals) - shares | Mar. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Parentheticals [Abstract] | ||
Limited Partners' Capital Account, Units Issued | 4,470 | 4,470 |
Limited Partners' Capital Account, Units Outstanding | 4,470 | 4,470 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) Statement - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Crude oil, natural gas, and NGLs sales | $ 224,872 | $ 484,280 |
Operating costs and expenses: | ||
Lease operating expenses | 147,515 | 155,260 |
Production taxes | 7,837 | 18,327 |
Direct costs - general and administrative | 24,568 | 45,976 |
Depreciation, depletion, and amortization | 49,075 | 91,203 |
Accretion of asset retirement obligations | 36,348 | 57,097 |
Gain on settlement of asset retirement obligations | (240,366) | 0 |
Total operating costs and expenses | 24,977 | 367,863 |
Operating Income (Loss) | ||
Net income (loss) | 199,895 | 116,417 |
Less: Managing General Partner interest in net income (loss) | 73,961 | (43,074) |
Net Income (Loss) Allocated to Investor Partners | $ 125,934 | $ 73,343 |
Net income (loss) per Investor Partner units: | ||
Net income per Investor Partner unit | $ 28.17 | $ 16.41 |
Investor Partner units outstanding | 4,470 | 4,470 |
Condensed Statement of Partner'
Condensed Statement of Partner's Equity (Unaudited) Statement - USD ($) | Total | Investor Partners | Managing General Partner |
Limited Partners' Capital Account | $ 4,912,249 | $ 4,912,249 | |
Partners' Capital | (441,471) | ||
General Partners' Capital Account | (5,353,720) | $ (5,353,720) | |
Distributions on behalf of Investor Partners for withholding taxes | 0 | ||
Net income | 199,895 | 125,934 | 73,961 |
Limited Partners' Capital Account | 5,038,183 | $ 5,038,183 | |
Partners' Capital | (241,576) | ||
General Partners' Capital Account | $ (5,279,759) | $ (5,279,759) |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) Statement - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 199,895 | $ 116,417 |
Adjustments to net income (loss) to reconcile to net cash from operating activities: | ||
Depreciation, depletion and amortization | 49,075 | 91,203 |
Accretion of asset retirement obligations | 36,348 | 57,097 |
Gain on settlement of asset retirement obligations | (240,366) | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | 25,568 | (50,764) |
Crude oil inventory | 19,464 | 1,173 |
Asset Retirement Obligation | (157,735) | 0 |
Due from Managing General Partner-other, net | (61,051) | (222,401) |
Net cash from operating activities | (128,802) | (7,275) |
Cash Flows from Investing Activities: | ||
Capital expenditures for crude oil and natural gas properties | (54,215) | 0 |
Proceeds from Sale of Property, Plant, and Equipment | 166,963 | 0 |
Net cash from investing activities | 112,748 | 0 |
Cash flows from financing activities: | ||
Distributions on behalf of Investor Partners for withholding taxes | 0 | (9,654) |
Net cash from financing activities | 0 | (9,654) |
Net change in cash and cash equivalents | (16,054) | (16,929) |
Cash and cash equivalents, beginning of period | 357,711 | 576,132 |
Cash and cash equivalents, end of period | 341,657 | 559,203 |
Capital Lease Obligations Incurred | 5,649 | 0 |
Capital Expenditures Incurred but Not yet Paid | $ (18,414) | $ 0 |
General and Basis of Presentati
General and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | General and Basis of Presentation Rockies Region 2007 Limited Partnership (this “Partnership” or the “Registrant”) was organized in 2007 as a limited partnership, in accordance with the laws of the State of West Virginia, for the purpose of engaging in the exploration and development of crude oil and natural gas properties. Business operations commenced upon closing of an offering for the private placement of Partnership units. Upon funding, this Partnership entered into a Drilling and Operating Agreement (“D&O Agreement”) with the Managing General Partner which authorizes PDC to conduct and manage this Partnership's business. In accordance with the terms of the Limited Partnership Agreement (the “Agreement”), the Managing General Partner is authorized to manage all activities of this Partnership and initiates and completes substantially all Partnership transactions. As of March 31, 2018 , there were 1,755 limited partners ("Investor Partners") in this Partnership. PDC is the designated Managing General Partner of this Partnership and owns a 37 percent Managing General Partner ownership in this Partnership. According to the terms of the Agreement, revenues, costs, and cash distributions of this Partnership are allocated 63 percent to the Investor Partners, which are shared pro rata based upon the number of units in this Partnership, and 37 percent to the Managing General Partner. The Managing General Partner may repurchase Investor Partner units under certain circumstances provided by the Agreement, upon request of an individual Investor Partner. The formula for the repurchase price is set at a minimum of four times the most recent 12 months of cash distributions. Due to the suspension of cash distributions during the first quarter of 2017, there is no value upon which to base further calculations, and therefore, no repurchase offers are currently being considered. The Managing General Partner made no limited partner unit repurchases during the three months ended March 31, 2018 . On a cumulative basis, through March 31, 2018 , the Managing General Partner has repurchased 153 units of Partnership interest from the Investor Partners at an average price of $2,258 per unit. As of March 31, 2018 , the Managing General Partner owned a total of approximately 39 percent of this Partnership, which includes its 37 percent Managing General Partner interest and approximately two percent of Limited Partner Interests it has repurchased from the Investor Partners. In the Managing General Partner's opinion, the accompanying condensed financial statements contain all adjustments consisting of only normal recurring adjustments necessary for a fair statement of this Partnership's results for interim periods in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Accordingly, pursuant to such rules and regulations, certain notes and other financial information included in the audited financial statements have been condensed or omitted. The December 31, 2017 condensed balance sheet data was derived from this Partnership's audited financial statements, but does not include disclosures required by U.S. GAAP. The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with this Partnership's audited financial statements and notes thereto included in this Partnership's 2017 Form 10-K. This Partnership's accounting policies are described in the Notes to Financial Statements in this Partnership's 2017 Form 10-K and updated, as necessary, in this Quarterly Report on Form 10-Q. The results of operations and cash flows for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year or any future period. Certain immaterial reclassifications have been made to the prior period condensed statement of cash flows to conform to the current period presentation. The reclassifications had no impact on previously reported financial results. |
Going Concern Going Concern (No
Going Concern Going Concern (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Substantial Doubt about Going Concern [Text Block] | Going Concern This Partnership has historically funded its operations with cash flows from operations. This Partnership’s most significant cash outlays have related to its operating expenses, capital expenditures and plugging and abandonment of wells. This Partnership's negative cash flows from operations were $129,000 and $7,000 for the three months ended March 31, 2018 and March 31, 2017, respectively. This Partnership had working capital deficits of $889,000 and $826,000 as of March 31, 2018 and December 31, 2017 , respectively. The negative impact to its liquidity resulting from high gathering system line pressure, decreasing production from natural declines, and current commodity prices raises substantial doubt about this Partnership’s ability to continue as a going concern. As the cash outlays for plugging and abandoning wells over the next several years are expected to be significant, this applies further strain on the overall liquidity of this Partnership. The Managing General Partner believes that cash flows from operations will not be sufficient to meet this Partnership’s obligations largely because of ongoing expected declines in production volumes and the expenditures required to plug and abandon uneconomic wells, absent a major change in circumstances as described below. Any deficits in available cash flows generated by this Partnership's operations are currently being funded by the Managing General Partner, to the extent necessary. The Managing General Partner will recover amounts funded from future cash flows of this Partnership, to the extent available. One of this Partnership's most significant obligations is to the Managing General Partner for reimbursement of costs paid on behalf of this Partnership by the Managing General Partner. Such amounts are paid to third parties for general and administrative expenses, equipment, operating costs, and plugging and abandonment costs, as well as monthly operating fees payable to the Managing General Partner. This Partnership's quarterly cash distributions to the Investor Partners and Managing General Partner were suspended beginning in the first quarter of 2017. This suspension in cash distributions is expected to continue until such time, if ever, that cash flows can reasonably be expected to support the necessary costs of expected plugging and abandoning of the wells that are becoming unproductive and any capital investments required for regulatory compliance, and this Partnership becomes current on its obligations. The ability of this Partnership to continue as a going concern is dependent upon its ability to attain a satisfactory level of cash flows from operations. Greater cash flows would most likely occur from a sustained increase in production and improved commodity pricing. Historically, during times of normalized gathering system line pressures, as a result of the normal production decline in a well's production life cycle, this Partnership has not experienced a sustained increase in production without substantial amounts of capital expenditures. The Managing General Partner is considering various options to potentially mitigate risks impacting this Partnership’s ability to continue as a going concern, including, but not limited to, deferral of obligations, continued suspension of distributions to partners, and a partial or complete sale of assets. There can be no assurance that this Partnership will be able to mitigate such conditions. Failure to do so could result in a partial asset sale or some form of bankruptcy, liquidation, or dissolution of this Partnership. See footnote Subsequent Event . The accompanying financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities and commitments in the normal course of business. The financial statements do not reflect any adjustments that might result if this Partnership is unable to continue as a going concern. |
Recent Accounting Standards
Recent Accounting Standards | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Description of New Accounting Pronouncements Adopted [Text Block] | Summary of Significant Accounting Policies Recently Adopted Accounting Standard In May 2014, the Financial Accounting Standards Board and the International Accounting Standards Board issued their converged standard on revenue recognition that provides a single, comprehensive model that entities will apply to determine the measurement of revenue and timing of when it is recognized. The standard has been updated and now includes technical corrections. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The standard outlines a five-step approach to apply the underlying principle: (1) identify the contract with the customer, (2) identify the separate performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to separate performance obligations, and (5) recognize revenue when (or as) each performance obligation is satisfied. This Partnership adopted the standard effective January 1, 2018. In order to evaluate the impact that the adoption of the revenue standard had on this Partnership's financial statements, the Managing General Partner performed a comprehensive review of its significant revenue streams. The focus of this review included, among other things, the identification of the significant contracts and other arrangements this Partnership has with its customers to identify performance obligations and principal versus agent considerations, and factors affecting the determination of the transaction price. The Managing General Partner also reviewed this Partnership's current accounting policies, procedures, and controls with respect to these contracts and arrangements to determine what changes, if any, would be required by the adoption of the revenue standard. This Partnership adopted the standard under the modified retrospective method. Based on the review, the Managing General Partner estimates that adoption of the standard did not impact this Partnership's 2017 results of operations. Upon adoption, no adjustment to the opening balance of this Partnership's retained deficit was deemed necessary. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements This Partnership's fair value measurements were estimated pursuant to a fair value hierarchy that requires this Partnership to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, giving the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. In these cases, the lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability, and may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The Managing General Partner utilizes fair value, on a non-recurring basis, to perform impairment testing on this Partnership's crude oil and natural gas properties by comparing carrying value to estimated undiscounted future net cash flows. If carrying value exceeds undiscounted future net cash flows, the measurement of impairment is based on estimated fair value and is measured by the amount by which the carrying value exceeds the estimated fair value. |
Asset Retirement Obligations As
Asset Retirement Obligations Asset Retirement Obligations (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
ASSET RETIREMENT OBLIGATIONS [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | Asset Retirement Obligations The following table presents the changes in carrying amounts of the asset retirement obligations associated with this Partnership's working interest in crude oil and natural gas properties: Amount Balance at December 31, 2017 $ 2,200,305 Obligations discharged with asset retirements (198,139 ) Accretion expense 36,348 Balance at March 31, 2018 2,038,514 Less current portion (1,000,000 ) Long-term portion $ 1,038,514 This Partnership's estimated asset retirement obligations liability is based on the Managing General Partner's historical experience in plugging and abandoning this Partnership's wells, estimated economic lives and estimated plugging and abandonment costs considering federal and state regulatory requirements in effect. The liability is discounted using the credit-adjusted risk-free rate estimated at the time the liability is incurred or revised. As of March 31, 2018, the credit-adjusted risk-free rates used to discount this Partnership's plugging and abandonment liabilities ranged from 6.5 percent to 7.5 percent . In periods subsequent to initial measurement of the liability, this Partnership must recognize period-to-period changes in the liability resulting from the passage of time, revisions to either the amount of the original estimate of undiscounted cash flows or changes in inflation factors and changes to this Partnership's credit-adjusted risk-free rate as market conditions warrant. The current portion of the asset retirement obligations relates to 20 wells that are expected to be plugged and abandoned during the next 12 months. During the three months ended March 31, 2018, this Partnership plugged and abandoned four wells and continued reclamation efforts on certain wells that were plugged and abandoned in 2017 for a total estimated cost of approximately $158,000 . These costs were offset by the release of the asset retirement obligations liability for the four wells plugged and abandoned of approximately $198,000 and a reimbursement of plugging and abandonment costs from an unaffiliated third-party horizontal well operator of approximately $200,000 , resulting in a gain on settlement of asset retirement obligations of approximately $240,000 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Legal Proceedings Neither this Partnership nor PDC, in its capacity as the Managing General Partner of this Partnership, is party to any pending legal proceeding that PDC believes would have a materially adverse effect on this Partnership's business, financial condition, results of operations or liquidity. Derivative Action In December 2017, PDC received an action entitled Dufresne, et al. v. PDC Energy, et al., filed in the United States District Court for the District of Colorado. The complaint states that it is a derivative action brought by a number of limited partner investors seeking to assert claims on behalf this Partnership against PDC and alleging claims for breach of fiduciary duty and breach of contract. The plaintiffs also included claims against two of PDC's senior officers for alleged breach of fiduciary duty. The lawsuit accuses PDC, as the managing general partner of this Partnership, of, among other things, failing to maximize the productivity of this Partnership's crude oil and natural gas wells. PDC filed a motion to dismiss the lawsuit on February 1, 2018, on the grounds that the complaint is deficient, including because the plaintiffs failed to allege that PDC refused a demand to take action on their claims. On March 14, 2018, the motion was denied as moot by the court because the plaintiffs requested leave to amend their complaint. In late April 2018, the plaintiffs filed an amendment to their complaint. Such amendment primarily alleges additional facts to support the plaintiffs’ claims and purports to add direct class action claims in addition to the original derivative claims. The amendment also adds three new individual defendants, all of which are independent members of PDC's Board of Directors. Potential damages as a result of this lawsuit would be paid by PDC and will not affect this Partnership. Environmental Due to the nature of the natural gas and oil industry, this Partnership is exposed to environmental risks. The Managing General Partner has various policies and procedures to minimize and mitigate the risks from environmental contamination. The Managing General Partner conducts periodic reviews and simulated drills to identify changes in this Partnership's environmental risk profile. Liabilities are recorded when environmental damages resulting from past events are probable and the costs can be reasonably estimated. Except as discussed herein, the Managing General Partner is not aware of any material environmental claims existing as of March 31, 2018 which have not been provided for or would otherwise have a material impact on this Partnership's financial statements; however, there can be no assurance that current regulatory requirements will not change or that unknown potential past non-compliance with environmental laws or other environmental liabilities will not be discovered on this Partnership's properties. The liability ultimately incurred with respect to a matter may exceed the related accrual. Clean Air Act Tentative Agreement and Related Consent Decree In August 2015, the Managing General Partner received a Clean Air Act Section 114 Information Request (the "Information Request") from the U.S. Environmental Protection Agency ("EPA"). The Information Request sought, among other things, information related to the design, operation, and maintenance of this Partnership's Wattenberg Field production facilities in the Denver-Julesburg Basin of Colorado ("DJ Basin"). The Information Request focused on historical operation and design information at certain of the Managing General Partner's production facilities and asked that the Managing General Partner conduct sampling and analyses at these facilities. The Managing General Partner responded to the Information Request with the requested data in January 2016 . In addition, in December 2015, the Managing General Partner received a Compliance Advisory pursuant to C.R.S. 25-7-115(2) from the Colorado Department of Public Health and Environment's Air Quality Control Commission's Air Pollution Control Division alleging that the Managing General Partner failed to design, operate, and maintain certain condensate collection, storage, processing, and handling operations to minimize leakage of volatile organic compounds at certain production facilities consistent with applicable standards under Colorado law . In June 2017, the U.S. Department of Justice, on behalf of the EPA and the State of Colorado, filed a complaint against the Managing General Partner in the U.S. District Court for the District of Colorado, claiming that the Managing General Partner failed to operate and maintain certain condensate collection systems at certain production facilities so as to minimize leakage of volatile organic compounds in compliance with applicable law. In October 2017, the Managing General Partner entered into a consent decree to resolve the lawsuit. Pursuant to the consent decree, the Managing General Partner agreed to implement a variety of operational enhancements and mitigation and similar projects, including vapor control system modifications and verification, increased inspection and monitoring, and installation of tank pressure monitors. The three primary elements of the consent decree are: (i) fine/supplemental environmental projects; (ii) injunctive relief; and (iii) mitigation. The Managing General Partner will pay the total amount of the fine and costs associated with the supplemental environmental projects. This Partnership will share proportionally in the injunctive relief and the mitigation costs required by the consent decree. The consent decree includes 29 of this Partnership's wells, of which 18 may incur such costs. The profitability of additional older, lower production wells, such as those owned by this Partnership, would likely be affected in a negative manner by the required costs associated with the injunctive relief and mitigation, which could result in the decision to plug and abandon some or all of those wells, rather than make investments in the wells necessary to comply with consent decree. |
Transactions with Managing Gene
Transactions with Managing General Partner | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Transactions with Managing General Partner The Managing General Partner transacts business on behalf of this Partnership under the authority of the D&O Agreement. Revenues and other cash inflows received by the Managing General Partner on behalf of this Partnership are distributed to this Partnership, net of corresponding operating costs and other cash outflows incurred on behalf of this Partnership. This Partnership's net amount due to the Managing General Partner was approximately $590,000 and $638,000 as of March 31, 2018 and December 31, 2017 , respectively. The majority of the amount due represents operating costs, plugging and abandonment costs, and general and administrative and other costs that have not been deducted from distributions. A “Well operations and maintenance” fee is charged by the Managing General Partner for the operation of this Partnership's wells and is included in the “Lease operating expenses” line item on the condensed statements of operations. The fees for well operating and maintenance for the three months ended March 31, 2018 and 2017 were approximately $46,000 and $81,000 , respectively. The decrease in fees during the three months ended March 31, 2018 compared to 2017 is due to a decrease in the number of wells eligible to be charged the fee. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event On May 7, 2018, the Managing General Partner entered into an agreement with Bridgepoint Consulting LLC (“Bridgepoint”). Bridgepoint has designated Karen Nicolaou to serve as “Responsible Party” for this Partnership. The Responsible Party will make all material decisions regarding this Partnership. Pursuant to the agreement, the Responsible Party will have the power, among other things, to analyze potential restructuring and divestiture options, including but not limited to filing bankruptcy. Ms. Nicolaou has more than 20 years of experience in providing restructuring advisory services and has previously served as Responsible Party for other of the Managing General Partner's partnerships. In her capacity as the Responsible Party, Ms. Nicolaou will have the authority to, among other things, explore options for divesting of assets of this Partnership, enter into and execute definitive documents to effect such transactions, or other material Partnership actions, as well as analyze the books and records of this Partnership. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | In the Managing General Partner's opinion, the accompanying condensed financial statements contain all adjustments consisting of only normal recurring adjustments necessary for a fair statement of this Partnership's results for interim periods in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Accordingly, pursuant to such rules and regulations, certain notes and other financial information included in the audited financial statements have been condensed or omitted. The December 31, 2017 condensed balance sheet data was derived from this Partnership's audited financial statements, but does not include disclosures required by U.S. GAAP. The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with this Partnership's audited financial statements and notes thereto included in this Partnership's 2017 Form 10-K. This Partnership's accounting policies are described in the Notes to Financial Statements in this Partnership's 2017 Form 10-K and updated, as necessary, in this Quarterly Report on Form 10-Q. The results of operations and cash flows for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year or any future period. Certain immaterial reclassifications have been made to the prior period condensed statement of cash flows to conform to the current period presentation. The reclassifications had no impact on previously reported financial results. |
Recent Accounting Standards Sig
Recent Accounting Standards Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Significant Accounting Policies [Abstract] | |
Recently Issued Accounting Standards [Text Block] | Recently Adopted Accounting Standard In May 2014, the Financial Accounting Standards Board and the International Accounting Standards Board issued their converged standard on revenue recognition that provides a single, comprehensive model that entities will apply to determine the measurement of revenue and timing of when it is recognized. The standard has been updated and now includes technical corrections. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The standard outlines a five-step approach to apply the underlying principle: (1) identify the contract with the customer, (2) identify the separate performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to separate performance obligations, and (5) recognize revenue when (or as) each performance obligation is satisfied. This Partnership adopted the standard effective January 1, 2018. In order to evaluate the impact that the adoption of the revenue standard had on this Partnership's financial statements, the Managing General Partner performed a comprehensive review of its significant revenue streams. The focus of this review included, among other things, the identification of the significant contracts and other arrangements this Partnership has with its customers to identify performance obligations and principal versus agent considerations, and factors affecting the determination of the transaction price. The Managing General Partner also reviewed this Partnership's current accounting policies, procedures, and controls with respect to these contracts and arrangements to determine what changes, if any, would be required by the adoption of the revenue standard. This Partnership adopted the standard under the modified retrospective method. Based on the review, the Managing General Partner estimates that adoption of the standard did not impact this Partnership's 2017 results of operations. Upon adoption, no adjustment to the opening balance of this Partnership's retained deficit was deemed necessary. |
Asset Retirement Obligations 17
Asset Retirement Obligations Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
ASSET RETIREMENT OBLIGATIONS [Abstract] | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | The following table presents the changes in carrying amounts of the asset retirement obligations associated with this Partnership's working interest in crude oil and natural gas properties: Amount Balance at December 31, 2017 $ 2,200,305 Obligations discharged with asset retirements (198,139 ) Accretion expense 36,348 Balance at March 31, 2018 2,038,514 Less current portion (1,000,000 ) Long-term portion $ 1,038,514 |
Transactions with Managing Ge18
Transactions with Managing General Partner Transactions with Managing General Partner (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Due from (to) Managing General Partner-other, net [Table Text Block] | This Partnership's net amount due to the Managing General Partner was approximately $590,000 and $638,000 as of March 31, 2018 and December 31, 2017 , respectively. The majority of the amount due represents operating costs, plugging and abandonment costs, and general and administrative and other costs that have not been deducted from distributions. |
Schedule of Related Party Transactions [Table Text Block] | A “Well operations and maintenance” fee is charged by the Managing General Partner for the operation of this Partnership's wells and is included in the “Lease operating expenses” line item on the condensed statements of operations. The fees for well operating and maintenance for the three months ended March 31, 2018 and 2017 were approximately $46,000 and $81,000 , respectively. The decrease in fees during the three months ended March 31, 2018 compared to 2017 is due to a decrease in the number of wells eligible to be charged the fee. |
General and Basis of Presenta19
General and Basis of Presentation General and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2018Number_of_Limited_Partners$ / sharesshares | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Investor Partners | Number_of_Limited_Partners | 1,755 |
Managing General Partner, Ownership Interest Before Unit Repurchases | 37.00% |
Investor Partner Ownership Interest | 63.00% |
Limited Partner Units Repurchased by Managing General Partner | shares | 153 |
Average Price Paid for Units Repurchased by Managing General Partner | $ / shares | $ 2,258 |
Managing General Partner Ownership Interest | 39.00% |
Going Concern Going Concern (De
Going Concern Going Concern (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Going Concern [Abstract] | |||
Negative Cash Flow from Operations | $ (129,000) | $ (7,000) | |
working capital | $ (889,000) | $ (826,000) |
Asset Retirement Obligations 21
Asset Retirement Obligations Asset Retirement Obligations (Details) | 3 Months Ended | ||
Mar. 31, 2018USD ($)WellsRate | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Changes in carrying amounts of Asset Retirement Obligation [Line Items] | |||
Asset Retirement Obligation, Liabilities Settled | $ 198,139 | ||
Changes in asset retirement obligations | |||
Balance at beginning of period | 2,200,305 | ||
Accretion Expense | 36,348 | $ 57,097 | |
Balance at end of period | 2,038,514 | ||
Less current portion | (1,000,000) | $ (750,000) | |
Long-term portion | 1,038,514 | $ 1,450,305 | |
Gain on settlement of asset retirement obligations | (240,366) | $ 0 | |
Plugging and abandonment costs | $ 158,000 | ||
Number of wells plugged and abandoned | 4 | ||
Reimbursement Plugging and Abandonment Costs | $ 200,000 | ||
Gain on settlement of asset retirement obligations | $ 240,000 | ||
Minimum [Member] | |||
Changes in carrying amounts of Asset Retirement Obligation [Line Items] | |||
Credit Adjusted Risk-Free Rate used to discount plugging and abandonment liabilities range | Rate | 6.50% | ||
Maximum [Member] | |||
Changes in carrying amounts of Asset Retirement Obligation [Line Items] | |||
Credit Adjusted Risk-Free Rate used to discount plugging and abandonment liabilities range | Rate | 7.50% | ||
Minimum [Member] | |||
Changes in carrying amounts of Asset Retirement Obligation [Line Items] | |||
OIl and Gas Wells Expected to be Plugged | Wells | 20 |
Transactions with Managing Ge22
Transactions with Managing General Partner Undistributed or Unsettled Transactions With Investor Partners (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction | ||
Due to Managing General Partner-other, net | $ 589,795 | $ 638,081 |
Transactions with Managing Ge23
Transactions with Managing General Partner Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Transactions with Managing General Partner | ||
Related Party Transaction | ||
Well operations and maintenance | $ 46 | $ 81 |