Lilis Energy (LLEX) 10-Q26 Feb 152014 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2014	Feb. 24, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	LILIS ENERGY, INC.
Entity Central Index Key	1437557
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Document Type	10-Q
Document Period End Date	30-Sep-14
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		28,918,475

Condensed_Balance_Sheets_Unaud

Condensed Balance Sheets (Unaudited) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Current assets:
Cash	$1,472,996	$165,365
Restricted cash	221,774	504,623
Accounts receivable (net of allowance of $76,016 at September 30, 2014 and $50,000 at December 31, 2013, respectively)	705,332	467,337
Prepaid assets	134,091	195,716
Commodity price derivative receivable		6,679
Total current assets	2,534,193	1,339,720
Oil and natural gas properties (full cost method), at cost:
Evaluated properties	37,298,201	68,213,467
Unevaluated acreage, excluded from amortization	12,931,701	18,663,569
Wells in progress, excluded from amortization	6,041,743	1,145,794
Total oil and natural gas properties, at cost	56,271,645	88,022,830
Less accumulated depreciation, depletion, and amortization	-25,525,672	-45,457,637
Total oil and natural gas properties, net	30,745,973	42,565,193
Other Assets [Abstract]
Office equipment, net	81,304	91,161
Deferred financing costs, net	15,949	294,699
Restricted cash and deposits	215,541	215,541
Total other assets	312,794	601,401
Total assets	33,592,960	44,506,314
Current liabilities:
Dividends accrued on preferred stock	121,167
Accrued expenses for drilling activity	5,698,193
Accounts payable	282,421	1,932,618
Accrued expenses	3,055,462	1,439,956
Short term loans payable		10,662,904
Total current liabilities	9,157,243	14,035,478
Long term liabilities:
Asset retirement obligation	196,248	1,104,952
Term loans payable		8,111,436
Convertible debentures payable, net of discount	6,683,299	14,724,366
Convertible debentures conversion derivative liability	1,540,481	605,315
Total long-term liabilities	8,420,028	24,546,069
Total liabilities	17,577,271	38,581,547
Commitments and contingencies
Conditionally redeemable 6% preferred stock, $0.0001 par value: 7,000 shares issued and authorized, 2,000 shares, outstanding at September 30, 2014, liquidation preferences of $2,000,000 as of September 30, 2014. No shares were outstanding as of December 31, 2013	2,000,000
Shareholders' equity:
Series A Preferred Stock, $.0001 par value; stated rate $1,000:10,000,000 authorized, 7,500 and issued and outstanding as of September 30, 2014 and, liquidation preferences of $7,621,167 as of September 30, 2014. No shares were issued as of December 31, 2013.	6,794,000
Common stock, $0.0001 par value:100,000,000 shares authorized; 27,655,631 and 19,671,901 shares issued and outstanding as of September 30, 2014 and December 31, 2013, respectively	2,765	1,967
Additional paid in capital	154,224,704	121,451,232
Accumulated deficit	-147,005,780	-115,528,432
Total shareholders' equity	14,015,689	5,924,767
Total liabilities and shareholders' equity	$33,592,960	$44,506,314

Condensed_Balance_Sheets_Unaud1

Condensed Balance Sheets (Unaudited) (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Balance Sheets [Abstract]
Allowance related to accounts receivable	$76,016	$50,000
Redeemable 6% preferred stock, shares authorised	7,000
Redeemable 6% preferred stock, shares issued	7,000
Redeemable 6% preferred stock, shares outstanding	2,000
Redeemable 6% preferred stock, liquidation preferences	2,000,000
Series A Preferred stock, par value	$0.00	$0.00
Series A Preferred Stock, value stated rate	1,000	1,000
Series A Preferred Stock, shares authorized	10,000,000
Series A Preferred Stock, shares issued	7,500
Preferred Stock, shares outstanding	7,500
Preferred Stock, liquidation preference	$7,621,167
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	27,655,631	19,671,901
Common stock, shares outstanding	27,655,631	19,671,901

Condensed_Statements_of_Operat

Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
Condensed Statements of Operations (Unaudited) (USD $)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues:
Oil sales	$735,386	$1,003,745	$2,414,995	$3,320,083
Natural gas sales	118,639	82,651	308,629	227,853
Operating fees	-39,015	28,331	37,866	118,853
Realized gain (loss) on commodity price derivatives		-43,551	11,143	-23,661
Change in fair value on commodity price derivatives		-20,000		-20,000
Total revenues	815,010	1,051,176	2,772,633	3,623,128
Costs and expenses:
Production costs	101,593	318,322	739,176	877,623
Production taxes	71,864	102,919	266,774	380,958
General and administrative	2,935,404	1,214,029	8,536,882	3,566,264
Depreciation, depletion and amortization	252,548	532,173	1,211,587	1,873,002
Total costs and expenses	3,361,409	2,167,443	10,754,419	6,697,847
Loss from operations before loss on conveyance of property	-2,546,399	-1,116,267	-7,981,786	-3,074,719
Loss on conveyance of property	-2,694,466		-2,694,466
Loss from operations	-5,240,865	-1,116,267	-10,676,252	-3,074,719
Other Income (expenses):
Other income	32,338	145	32,435	536
Inducement expenses			-6,661,275
Change in fair value of convertible debentures conversion derivative	-572,427	-207,251	-5,966,236	93,851
Interest expense	-1,130,727	-1,582,881	-4,477,277	-4,723,624
Total other expenses	-1,670,816	-1,789,987	-17,072,353	-4,629,238
Net loss	-6,911,681	-2,906,256	-27,748,605	-7,703,956
Dividends on preferred stock	-121,167		-161,848
Deemed dividend Series A Convertible Preferred Stock			-3,566,895
Net loss attributable to common shareholders	($7,032,848)	($2,906,254)	($27,748,605)	($7,703,956)
Loss per common share:
Net loss per common share (basic and diluted)	($0.26)	($0.15)	($1.17)	($0.41)
Weighted average common shares outstanding (basic and diluted)	27,631,220	19,254,329	26,794,437	18,786,598

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
Condensed Statements of Cash Flows (Unaudited) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:
Net loss	($27,748,605)	($7,703,956)
Adjustments to reconcile net loss to net cash used in operating activities:
Inducement expenses	6,661,275
Common stock issued to investment bank for fees related to conversion of convertible debentures	686,251
Common stock issued for services and compensation	2,667,213	1,293,315
Reserve on bad debt expense	26,016
Loss on conveyance of property	2,694,466
Change in fair value of commodity price derivative	6,679	20,000
Change in fair value of executive incentive bonus	-35,000
Amortization of deferred financing costs	278,750	531,739
Change in fair value of convertible notes conversion derivative	5,966,236	-93,851
Accretion of debt discount	810,804	1,742,099
Depreciation, depletion, amortization and accretion of asset retirement obligation	1,211,587	1,873,002
Changes in operating assets and liabilities:
Accounts receivable	-264,011	452,476
Restricted cash	282,849	86,636
Other assets	-104,510	77,486
Accounts payable and other accrued expenses	566,855	162,748
Net cash used in operating activities	-6,293,145	-1,558,306
Cash flows from investing activities:
Acquisition of undeveloped acreage	-305,000	-303,814
Drilling capital expenditures	-92,708	-429,678
Sale of oil and natural gas properties		640,000
Additions to office furniture and fixtures	-10,815	-25,081
Net cash used in investing activities	-408,523	-118,573
Cash flows from financing activities:
Proceeds from issuance of common stock	5,327,700
Proceeds from issuance of debt	1,000,000	1,429,902
Proceeds from issuance of Series A Convertible Preferred Stock	6,794,000
Dividend payments on preferred stock	-40,681
Repayment of debt	5,071,720	-369,123
Net cash provided by financing activities	8,009,299	1,060,779
Change in cash	1,307,631	-616,101
Cash at beginning of period	165,365	970,035
Cash at end of period	1,472,996	353,934
Cash paid during the period for:
Interest	1,170,300	1,614,243
Income taxes
Non-cash investing and financing activities:
Common stock issued for accrued convertible debenture interest	148,129	830,660
Acquisition of oil and natural gas assets for accounts payable and other accrued expenses	5,410,467
Transfer from derivative liability to equity classification	5,031,070
Issuance of common stock for payment of convertible debentures	8,851,871
Issuance of redeemable preferred stock for payment of term note	2,000,000
Conveyance of property for payment of term note	14,833,311
Disposition of asset retirement obligation (liability) through the conveyance of property for payment of term loan	$973,135

Organization

Organization	9 Months Ended
Organization	Sep. 30, 2014
Organization [Abstract]
ORGANIZATION	NOTE 1 – ORGANIZATION



	Lilis Energy, Inc. (“Lilis”, “Lilis Energy”, and the “Company) is an independent oil and natural gas exploration and production company focused on the Denver-Julesburg Basin (“DJ Basin”), where it holds approximately 84,000 net acres. Lilis drills, operates and produces oil and natural gas wells through the Company’s land holdings located in Colorado, Wyoming, and Nebraska.



	All references to production, sales volumes and reserves quantities are net to the Company’s interest unless otherwise indicated.

Liquidity_and_Management_Plans

Liquidity and Management Plans	9 Months Ended
Liquidity and Management Plans	Sep. 30, 2014
Liquidity and Management Plans [Abstract]
LIQUIDITY AND MANAGEMENT PLANS	NOTE 2 – LIQUIDITY AND MANAGEMENT PLANS



	As of September 30, 2014, the Company had a negative working capital balance and a cash balance of approximately $6.62 million and $1.47 million, respectively. Also as of September 30, 2014, the Company had $6.68 million, net, outstanding under its 8% Senior Secured Convertible Debentures (the “Debentures”). The Debentures were originally to mature on January 15, 2015; however, in connection with the Company’s entry into the Credit Agreement (discussed below) in January 2015. As of the date of the report, the Company has entered into an extension agreement with the holders of the Debentures which extends the maturity date until January 8, 2018. The maturity date now coincides with the maturity date of the Credit Agreement.



	On January 8, 2015, the Company entered into a credit agreement with Heartland Bank (the “Credit Agreement”) which provides for a three-year senior secured term loan in an initial aggregate principal amount of $3,000,000, which principal amount may be increased to a maximum principal amount of $50,000,000 at the request of the Company, subject to certain conditions, and pursuant to an accordion advance provision in the Credit Agreement (the “Term Loan”). The availability of additional funds is generally based on the value of the Company’s proved developed producing (“PDP”) and proved undeveloped (“PUD”) reserves. The Company intends to use proceeds borrowed under the Credit Agreement to fund producing property acquisitions in North America, drill wells in the core of the Company’s lease positions and to fund working capital (See Note 13-Subsequent Events.)



	As of February 23, 2015, the Company has $2.40 million in cash on hand and is currently producing approximately 70 barrels of oil equivalent (“BOE”) a day from eight economically producing wells.



	On June 6, 2014, T.R. Winston executed a commitment to purchase or affect the purchase by third parties of an additional $15 million in Series A 8% Convertible Preferred Stock, to be consummated within ninety (90) days thereof. The agreement was subsequently extended to February 22, 2015. As of February 25, 2015, the $15 million commitment was reduced to $7.50 million, extended for one year until February 23, 2016 with all of the other terms remaining unchanged.

	The Company will require additional capital to satisfy its obligations, to fund its current drilling commitments, as well as its acquisition and capital budget plans; to help fund its ongoing overhead; and to provide additional capital to generally improve its negative working capital position. The Company anticipates that such additional funding will be provided by a combination of capital raising activities, including borrowing transactions, the sale of additional debt and/or equity securities, and the sale of certain assets and by the development of certain of the Company’s undeveloped properties via arrangements with joint venture partners. If the Company is not successful in obtaining sufficient cash to fund the aforementioned capital requirements, the Company would be required to curtail its expenditures, and may be required to restructure its operations, sell assets on terms which may not be deemed favorable and/or curtail other aspects of its operations, including deferring all or portions of the Company’s capital budget. There is no assurance that any such funding will be available to the Company on acceptable terms, if at all.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2014
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



	Basis of Presentation and Restatement



	The condensed financial statements and accompanying footnotes are prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”).



	The unaudited condensed financial information furnished herein reflects all adjustments, consisting solely of normal recurring items, which in the opinion of management are necessary to fairly state the financial position of the Company and the results of its operations for the periods presented.



	This report should be read in conjunction with the Company’s financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission (the “SEC”) on June 11, 2014. The results of operations for the interim periods presented are not necessarily indicative of results for the entire year ending December 31, 2014. The financial statements in this Quarterly Report on Form 10-Q include the restated figures for the comparative periods in 2013, as provided in Amendment No. 1 to Form 10-Q/A to the Quarterly Report on Form 10-Q of Lilis Energy for the quarterly period ended September 30, 2013 (the “Amended Q3 2013 Report”).



	In February 2015, the Company discovered an error in the valuation of the conversion derivative liability of the Company’s 8% Senior Secured Convertible Debentures (the “Debentures”) for the periods ended December 31, 2011, December 31, 2012, December 31, 2013, as well as the quarterly periods ended September 30, 2013, March 31, 2014 and June 30, 2014 (together, the “Relevant Periods”). Specifically, the calculation of the derivative liability included in the Company’s financial statements for the Relevant Periods only included the value of the price protection (anti-dilution) feature, when it should have included both the conversion option and the price protection feature embedded in the Debentures. The changes in the fair value of the derivative resulted in additional non-cash charges to the previously filed financial statements.



	The Company has evaluated the effect of the error on all Relevant Periods in accordance with Staff Accounting Bulletin (“SAB”) 99 and SAB 108 and determined that the impact of the error on its previously filed annual financial statements for the fiscal years ended December 31, 2011, December 31, 2012, and December 31, 2013 was not material. However, the Company has concluded that the impact of these non-cash items in its previously filed quarterly financial statements for the fiscal quarters ended September 30, 2013, March 31, 2014 and June 30, 2014 was sufficiently material to warrant restatement of the Company’s previously filed Quarterly Reports on Form 10-Q for those periods. In addition, the Company will restate the immaterial amounts for the fiscal years ended December 31, 2011, December 31, 2012, and December 31, 2013 in its Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The opening balance as of January 1, 2013 will be adjusted in the annual report on Form 10K for the fiscal year ended December 31, 2014 to reflect the restatement of the immaterial amounts for the fiscal year ended December 31, 2011 and 2012. The Company filed amended quarterly reports on Form 10-Q/A for the fiscal quarters ended September 30, 2013, March 31, 2014 and June 30, 2014 on February 23, 2015. This Quarterly Report should be read in conjunction with those amended quarterly reports on Form 10-Q/A, which resulted in retroactive changes to financial statements for those periods, including changes to net loss and net loss per common share.



	Use of Estimates



	The preparation of condensed financial statements in conformity with U.S. GAAP requires the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the 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 significantly from those estimates. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment.



	The most significant financial estimates are associated with the Company’s estimated volumes of proved oil and natural gas reserves, asset retirement obligations, assessments of impairment imbedded in the carrying value of undeveloped acreage and undeveloped properties, fair value of financial instruments, estimated convertible debentures derivative liabilities, depreciation and accretion, income taxes and contingencies.



	Oil and Natural Gas Properties



	The Company follows the full cost method of accounting for oil and natural gas operations whereby all costs related to the exploration, non-production-related development and acquisition of oil and natural gas reserves are capitalized. Such costs include land acquisition costs, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling, developing and completing productive wells and/or plugging and abandoning non-productive wells, and any other costs directly related to acquisition and exploration activities. Proceeds from property sales are generally applied as a credit against capitalized exploration and development costs, with no gain or loss recognized, unless such a sale/conveyance would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of proved reserves.



	The Company accounts for its unproven long-lived assets in accordance with Accounting Standards Codification (“ASC”) Topic 360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate.



	Depletion of exploration and development costs and depreciation of wells and tangible production assets is computed using the units-of-production method based upon estimated proved oil and natural gas reserves. Costs included in the depletion base to be amortized include (a) all proved capitalized costs including capitalized asset retirement costs net of estimated salvage values, less accumulated depletion, (b) estimated future development costs to be incurred in developing proved reserves, and (c) estimated decommissioning and abandonment/restoration costs, net of estimated salvage values, that are not otherwise included in capitalized costs.



	The costs of undeveloped acreage are withheld from the depletion base until it is determined whether or not proved reserves can be assigned to the properties. When proved reserves are assigned to such properties or one or more specific properties are deemed to be impaired, the cost of such properties or the amount of the impairment is added to the full cost pool which is subject to depletion calculations.



	Under the full cost method of accounting, capitalized oil and natural gas property costs less accumulated depletion and net of deferred income taxes may not exceed an amount equal to sum of: i.) The present value, discounted at 10%, of estimated future net revenues from proved oil and natural gas reserves, plus ii.) The cost of unproved properties not subject to amortization (without regard to estimates of fair value), or estimated fair value, if lower, of unproved properties that are not subject to amortization. Should capitalized costs exceed this ceiling, an impairment expense is recognized. As of September 30, 2014, the Company tested its oil and natural gas assets under the ceiling test which yielded no impairment.



The present value of estimated future net cash flows was computed by applying a flat oil and natural gas price to forecast revenues from estimated future production of proved oil and natural gas reserves as of period-end, less estimated future expenditures to be incurred in developing and producing the proved reserves (assuming the continuation of existing economic conditions), less any applicable future taxes.



Wells in Progress



Wells in progress denotes wells that are currently in the process of being drilled or completed or otherwise under evaluation as to their potential to produce oil and natural gas reserves in commercial quantities. Such wells continue to be classified as capitalized wells in progress and withheld from the depletion calculation and the ceiling test until such time as either proved reserves can be assigned, or the wells are otherwise abandoned. Upon either the assignment of proved reserves or abandonment, the costs for these wells are then transferred to the full cost pool and become subject to both depletion and the ceiling test calculations in accordance with full cost accounting under S-X Rule 4-10.



Asset Retirement Obligation



The Company incurs asset retirement obligations for certain oil and natural gas assets at the time they are placed in service. The fair values of these obligations are recorded as liabilities on a discounted basis. The costs associated with these liabilities are capitalized as part of the related assets and accretion. Over time, the liabilities are accreted for the change in their present value.



For purposes of depletion calculations, the Company also includes estimated dismantlement and abandonment costs, net of salvage values, associated with future development activities that have not yet been capitalized as asset retirement obligations.



Oil and Natural Gas Revenue



Sales of oil and natural gas, net of any royalties, are recognized when oil and natural gas have been delivered to a custody transfer point, persuasive evidence of a sales arrangement exists, the rights and responsibility of ownership pass to the purchaser upon delivery, collection of revenue from the sale is reasonably assured, and the sales price is fixed or determinable. Virtually all of the Company’s contracts’ oil and natural gas pricing provisions are tied to a NYMEX market index, with certain local differential adjustments based on, among other factors, whether a well delivers oil or natural gas to a gathering, refinery, marketing company, or transmission line and prevailing local supply and demand conditions. The price of the oil and natural gas fluctuates to remain competitive with other local oil suppliers.



Net Loss per Common Share



Earnings (losses) per common share are computed based on the weighted average number of common shares outstanding during the period presented. Diluted earnings (losses) per share are computed using the weighted-average number of common shares outstanding plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares. Potentially dilutive securities, such as shares issuable upon the conversion of debt or preferred stock, and exercise of stock purchase warrants and options, are excluded from the calculation when their effect would be anti-dilutive. As of September 30, 2014 and 2013 shares underlying options, warrants, preferred stock and convertible debentures have been excluded from the diluted share calculations as they were anti-dilutive as a result of net losses incurred.



The Company had the following common stock equivalents at September 30, 2014 and 2013:



As of		September 30, 2014		September 30, 2013
Stock Options			3,600,000		3,800,000
Series A Preferred Stock			3,112,033		-
Stock Purchase Warrants			17,749,281		6,773,913
Convertible debentures			3,364,016		3,665,859
			27,807,330		14,239,772



Recent Accounting Pronouncements



In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09), which creates Topic 606, Revenue from Contracts with Customers, and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, ASU 2014-09 supersedes the cost guidance in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts, and creates new Subtopic 340-40, Other Assets and Deferred Costs— Contracts with Customers. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, ASU 2014-09 requires enhanced financial statement disclosures over revenue recognition as part of the new accounting guidance. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application is not permitted. The Company is currently evaluating the provisions of ASU 2014-09 and assessing the impact, if any, it may have on its condensed financial position and results of operations.



In June 2014, FASB issued Accounting Standards Update 2014–12, Compensation – Stock Compensation (Topic 718), which clarifies accounting for share–based payments for which the terms of an award provide that a performance target could be achieved after the requisite service period. That is the case when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target could be achieved and still be eligible to vest in the award if and when the performance target is achieved. The updated guidance clarifies that such a term should be treated as a performance condition that affects vesting. As such, the performance target should not be reflected in estimating the grant–date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The guidance will be effective for the annual periods (and interim periods therein) ending after December 15, 2015. Early application is permitted. The Company is currently evaluating the effects of ASU 2014–12 on the condensed financial statements.



In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014–15, Presentation of Financial Statements – Going Concern. The Update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2013–300—Presentation of Financial Statements (Topic 205): Disclosure of Uncertainties about an Entity’s Going Concern Presumption, which has been deleted. The Company is currently evaluating the effects of ASU 2014–15 on the condensed financial statements.



Management does not believe that these or any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying condensed financial statements.



Subsequent Events



The Company evaluates subsequent events through the date the condensed financial statements are issued.

Oil_and_Natural_Gas_Properties

Oil and Natural Gas Properties	9 Months Ended
Oil and Natural Gas Properties	Sep. 30, 2014
Oil and Natural Gas Properties [Abstract]
OIL AND NATURAL GAS PROPERTIES	NOTE 4 – OIL AND NATURAL GAS PROPERTIES



	On September 2, 2014, the Company entered into an agreement to convey its interest in 31,725 evaluated and unevaluated net acres located in the Denver Julesburg Basin and the associated oil and natural gas production (the “Hexagon Collateral”) to its primary lender, Hexagon, LLC (“Hexagon”) in exchange for extinguishment of all outstanding debt and accrued interest obligations owed to Hexagon aggregating to $14,833,311. The conveyance assigned all assets and liabilities associated with the property, which includes PDP and PUD reserves, plugging and abandonment, and other assets and liabilities associated with the property. Pursuant to the agreement, the Company also issued to Hexagon $2.0 million in Conditionally Redeemable 6% Preferred Stock, which is recognized as temporary equity.



	Under the full cost method, sales or abandonments of oil and natural gas properties, whether or not being amortized, are accounted for as adjustments of capitalized costs, with no gain or loss recognized, unless such adjustments would significantly alter the relationship between capitalized costs and proved reserves of oil and natural gas attributable to the cost center. The conveyance to Hexagon represented greater than 25 percent of the Company’s proved reserves of oil and natural gas attributable to the full cost pool, as a result, there was a significant alteration in the relationship between capitalized costs and proved reserves of oil and natural gas attributable to the full cost pool. Total capitalized costs within the full cost pool are allocated on the basis of the relative fair values of the properties sold and those retained due to substantial economic differences between the properties sold and those retained.



	The following table represents an allocation of the transaction:



	Conveyance of oil and natural gas property to extinguish the obligation of debt and accrued interest payable	$	14,833,311
	Add: disposition of asset retirement obligations		973,135
	Net value of liabilities satisfied upon conveyance	$	15,806,446

	Oil and natural gas properties (full cost method), at cost
	Evaluated oil and natural gas properties	$	31,022,171
	Wells in progress, transferred to evaluated oil and natural gas properties		510,895
	Unevaluated oil and natural gas properties, transferred to evaluated oil and natural gas properties		6,026,297
	Total evaluated oil and natural gas properties		37,559,363
	Accumulated depletion		(21,058,451	)
	Net oil and natural gas properties conveyed, at cost		16,500,912
	Conditionally 6% Redeemable Preferred Stock		2,000,000
	Loss on conveyance of evaluated oil and natural gas properties		(2,694,466	)
	Net value of transaction	$	15,806,446

Wells_in_Progress

Wells in Progress	9 Months Ended
Wells in Progress	Sep. 30, 2014
Wells in Progress [Abstract]
WELLS IN PROGRESS	NOTE 5 – WELLS IN PROGRESS



	As of September 30, 2014 and December 31, 2013, the Company had $6.04 million and $1.15 million of wells in progress, respectively. Wells in progress are related to certain wells in the Company’s core development program within the Northern Wattenberg field. The Company has capitalized and accrued approximately $5.70 million of costs through September 30, 2014 associated with these wells, which are currently in dispute.



	The dispute relates to the Company ownership in certain wells being reduced and or eliminated from a possible farm-out. The operator of the producing wells claims the Company entered into a farm-out which will reduce the Company’s ownership in the wells. As of February 23, 2015, the Company is currently attempting to negotiate a settlement to this dispute or will pursue litigation to resolve the dispute. The Company will continue analyzing the ownership of the wells on a periodic basis to determine if any impairment is deemed necessary. If the dispute is resolved in favor of the Company, the value of the assets will be transferred to the full cost pool and the accrual of $5.20 million will be relieved from accrued expenses.



	During 2014, the Company transferred $0.47 million from wells-in progress to developed oil and natural gas properties for one of its other wells in Northern Wattenberg, when it became producing and economic. The amount transferred to producing properties represents 12.5% of the total 25% interest owned by the Company. The remaining 12.5% ownership in the well is currently being accrued at $0.50 million for the authorization for expenditure to drill the wells, since the remaining ownership is being disputed by the mineral owners. The Company purchased the rights from both royalty owners which claimed ownership of the mineral rights. The Company has secured its 12.5% ownership by paying both owners $0.10 million (total $0.20 million). The payment was recorded as an asset to obtain the right to the minerals. By securing the interest with both interest owners, the Company’s interest will remain at 25%.



	The mineral owners are disputing the validity of an overriding royalty interest, and as a result, the operator of the well is currently holding revenues from the Company until the dispute is resolved. The Company believes the well is near payout and this should be resolved in the near future. The Company is currently accruing the remaining 12.5% authorization of expenditure and deferring the revenue in a suspense receivable account. As of February 23, 2015, the Company received notification that the settlement between both royalty owners has been settled. As a result, the Company is working with the operator to receive payment of its interest.

Derivatives

Derivatives	9 Months Ended
Derivatives	Sep. 30, 2014
Derivatives [Abstract]
DERIVATIVES	NOTE 6 - DERIVATIVES



	Oil Price Hedging



	The Company is exposed to fluctuations in crude oil prices for all of its production. In order to mitigate the effect of commodity price volatility and enhance the predictability of cash flows relating to the marketing of the Company’s crude oil, from time to time, the Company enters into crude oil price hedging arrangements with respect to a portion of its expected production. Realized gains and losses are recorded as income or expenses in the periods during which applicable contracts mature and settle. As of December 31, 2013, such hedges were not material and as of September 30, 2014, the Company did not maintain any commodity derivatives.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	9 Months Ended
Fair Value of Financial Instruments	Sep. 30, 2014
Fair Value of Financial Instruments [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 7 - FAIR VALUE OF FINANCIAL INSTRUMENTS



	The Company measures the fair value of its financial assets on a three-tier value hierarchy, which prioritizes the inputs, used in the valuation methodologies in measuring fair value:



	●	Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

	●	Level 2 – Other inputs that are directly or indirectly observable in the market place.

	●	Level 3 – Unobservable inputs which are supported by little or no market activity.



	The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.



	The Company’s accounts receivable, accounts payable, accrued expenses and interest payable approximate fair value due to the short-term nature or maturity of the instruments.



	Convertible Debentures Conversion Derivative Liability



	As of September 30, 2014, the Company had $6.68 million, net, in remaining Debentures which are convertible at any time at the holders’ option into shares of Common Stock at $2.00 per share, or 3,364,016 underlying conversion shares. The debentures have elements of a derivative from the ability for certain adjustments, including both the conversion option and the price protection embedded in the Debentures. The conversion option allows the Debenture holders to convert their Debentures to the underlying common stock at $2.00. When the price of the common stock exceeds $2.00, it is more attractive for the Debenture holders to convert. Adversely, the price protection protects the holder of the Debenture for any capital raises with a strike price lower than $2.00 per share. The Company values this conversion liability at each reporting period using a Monte Carlo pricing model.



	Common stock incentive options



	The Executive Stock Incentive Options Bonus was issued on September 16, 2013 as a part of the employment agreement with the current Chief Executive Officer. The incentive bonus contains a target provision, whereby the bonus amount to be earned by the executive may vary between 0% and 300%, depending on the Company achieving certain operating milestones. The change in fair value for the common stock incentive option bonus is recorded in general and administrative expenses.



	The following table provides a summary of the fair values of assets and liabilities measured at fair value (in thousands):



	September 30, 2014:



			Level 1			Level 2			Level 3				Total
	Liabilities
	Convertible debentures conversion derivative liability		$	-		$	-		$	(1,540	)		$	(1,540	)
	Common stock incentive options for executive employment agreements compensation with both market and performance factors.			-			-			(110	)			(110	)
	Total liability, at fair value		$	-		$	-		$	(1,650	)		$	(1,650	)



	December 31, 2013:



			Level 1			Level 2			Level 3				Total
	Liabilities
	Common stock incentive options for executive employment agreements compensation with both market and performance factors		$	-		$	-		$	(145	)		$	(145	)
	Convertible debentures conversion derivative liability		$	-		$	-		$	(605	)		$	(605	)
Total liability, at fair value		$	-		$	-		$	(750	)		$	(750	)



The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets and liabilities:



For the nine months ended September 30, 2014 (in thousands)		Executive			Convertible			Total
		compensation			debentures derivative
		liability			liability
Beginning balance, January 1, 2014		$	(145	)	$	(605	)	$	(750	)
Change in fair value of the common stock executive employment agreement			35			-			35
Change in fair value of the convertible debentures conversion derivative liability						(5,966	)		(5,966	)
Reclassification of convertible debenture conversion derivative liability to additional paid in capital upon conversion of debenture			-			5,031			5,031
Ending balance, September 30, 2014		$	(110	)		(1,540	)		(1,650	)



For the three months ended September 30, 2014 (in thousands)		Executive			Convertible			Total
		compensation			debentures
		liability			derivative
					liability
Beginning balance, June 1, 2014		$	(325	)	$	(968	)	$	(1,293	)
Change in fair value of the common stock executive employment agreement			215			-			215
Change in fair value of the convertible conversion debentures derivative liability			-			(572	)		(572	)
Ending balance, September 30, 2014		$	(110	)		(1,540	)		(1,650	)



For the nine months ended September 30, 2013 (in thousands)		Convertible
		notes derivative
		liability
Beginning balance, January 1, 2013		$	(694	)
Change in fair value of the convertible debentures conversion derivative liability			48
Ending balance, September 30, 2013			(646	)



For the three months ended September 30, 2013 (in thousands)		Convertible
		debentures derivative
		liability
Beginning balance, June 30, 2013		$	(427	)
Change in fair value of the convertible debentures derivative			(218	)
Ending balance, September 30, 2013			(646	)



The Company did not have any transfers of assets or liabilities between Level 1, Level 2 or Level 3 of the fair value measurement hierarchy during the three and nine months ended September 30, 2014 or 2013.

Loan_Agreements

Loan Agreements	9 Months Ended
	Sep. 30, 2014
Loan Agreements [Abstract]
LOAN AGREEMENTS	NOTE 8 – LOAN AGREEMENTS



	The Company’s term loan and Debenture for the period ended September 30, 2014 and December 31, 2014, consists of the following:



	(thousands, except percentages)		As of September 30,				As of December 31,
			2014				2013
	10% Hexagon term loans		$	-			$	18,774
	8% Convertible Debentures			6,728				15,580
	Total			6,728				34,354
	Unamortized debenture discount			(45	)			(993	)
	Total debt, net of discount			6,683				33,361
	Less: amount due within one year			-				(10,663	)
	Long-term debt due after one year		$	6,683			$	22,698



	10% Term Loans



	Prior to September 2, 2014, the Company had three term loans with Hexagon, its senior lender, with an aggregate outstanding principal amount of approximately $19.83 million. The loans required the Company to make monthly payments of $0.23 million consisting of interest and principal. On May 19, 2014, the Company received an extension from Hexagon of the maturity date under its term loans, from May 16, 2014 to August 15, 2014. In connection with the extension, the Company paid a forbearance fee of $0.25 million which was recorded as deferred financing cost and amortized over the extension period of the term loans.



	On May 30, 2014, the Company entered into the First Settlement Agreement with Hexagon, which provided for the settlement of all amounts outstanding under the term loans. In connection with the execution of the First Settlement Agreement, the Company made an initial cash payment of $5.0 million reducing the total principal and interest due under the term loan from $19.83 million to $14.83 million. The First Settlement Agreement required the Company to make an additional cash payment of $5.0 million (the “Second Cash Payment”) by August 15, 2014, and at that time issue to Hexagon (i) a two-year $6.0 million unsecured note (the “Replacement Note”), bearing interest at an annual rate of 8%, requiring principal and interest payments of $90,000 per month, and (ii) 943,208 shares of unregistered Common Stock (the “Shares”). The parties also agreed that if the Second Cash Payment was not made by June 30, 2014, an additional $1.0 million in principal would be added to the Replacement Note, and if the Replacement Note was not retired by December 31, 2014, the Company would issue an additional 1.0 million shares of Common Stock to Hexagon. The first settlement agreement was superseded by the final settlement agreement which is discussed below.



	On September 2, 2014, the Company entered into the Final Settlement Agreement with Hexagon which replaced the First Settlement Agreement, pursuant to which, in exchange for full extinguishment of all amounts outstanding under the term loans (approximately $14.83 million in principal and interest as of the settlement date), the Company assigned Hexagon the Hexagon Collateral, which consisted of approximately 32,000 net acres including 17 producing wells that consisted of several economic wells which secured properties with PDP reserves and PUD reserves with a carrying value of approximately $16.5 million. The Company also conveyed $0.97 million in asset retirement obligations (“ARO”) for the 17 active and several non-producing wells. In addition to the conveyance of oil and natural gas property, the Company issued to Hexagon $2,000,000 in 6% Conditionally Redeemable Preferred Stock with a par value of $0.0001, stated value of $1,000 and dividends paid on a quarterly basis. As a result of this conveyance, the Company recorded a loss on conveyance of property during the three and nine months ended September 30, 2014 of approximately $2.7 million.



	8% Convertible Debentures



	In numerous separate private placement transactions between February 2011 and October 2013, the Company issued an aggregate of approximately $15.6 million of Debentures, secured by mortgages on several of its properties. The Debentures are currently convertible at the holders' option into shares of Common Stock at $2.00 per share, subject to certain adjustments which include a convertible option and price protection, and bear interest at an annualized rate of 8%, payable quarterly on each May 15, August 15, November 15 and February 15 in cash or, at the Company's option subject to certain conditions, in shares of Common Stock. The interest option price is calculated using a 10 day VWAP discounted by 10% and applied to the outstanding interest.



	On January 31, 2014, the Company entered into a "Conversion Agreement" with all of the holders of the Debentures. Pursuant to the terms of the Conversion Agreement, $9.00 million in Debentures (approximately $8.85 million of principal and $0.15 million in interest) was converted by the holders to shares of common stock at a conversion price of $2.00 per share of Common Stock. In addition, the Company issued warrants to the Debenture holders to purchase one share of Common Stock for each share issued in connection with conversion of the Debentures, at an exercise price equal to $2.50 per share (see Inducement Expense, discussed below). As of September 30, 2014, the Company had $6.68 million, net, remaining Debentures which are convertible at any time at the holders’ option into shares of Common Stock at $2.00 per share, subject to certain adjustments, including the requirement to reset the conversion price based upon any subsequent equity offering at a lower price per share amount.



	During September 30, 2014 and December 31, 2013, the Company valued the conversion feature associated with the Debentures at $1.54 million and $0.61 million, respectively. The Company used the following inputs to calculate the valuation of the derivative as of September 30, 2014: volatility 70%; conversion price $2.00; stock price $2.25; and present value of conversion feature $0.47 per convertible share. For the year ended December 31, 2013, the Company valued the derivative using the following inputs: volatility 70%, stock price $2.32, conversion price $4.25, risk free rate 0.38%, and present value of conversion feature of $0.17 per convertible share. The Company utilized a Monte Carlo model to value both conversion features.



	The Company’s failure to meet its obligations under the First Settlement Agreement with Hexagon constituted a default under the term loans, which in turn triggered an event of default under the Debentures. However, the holders of the Debentures waived their right to declare a default in respect of that matter.



	The Debentures were to mature on January 15, 2015; however, as of the date of this filing, the Company has received waivers from each Debenture holders extending the maturity date thereunder to match the maturity date of the Credit Agreement to January 8, 2018.



	Convertible Debenture Interest



During the nine months ended September 30, 2014, the Company elected to fund their interest payment for their convertible debentures with stock and issued 70,000 shares valued at $0.15 million which is an add back to accrued expense in the cash flow and further disclosed in the supplemental disclosure. The interest was accrued for past interest from November 15, 2013 to January 2014.



Debenture Conversion Agreement



As of September 30, 2014, the Company has $6.68 million, net, outstanding convertible debentures.



		Convertible				Convertible Debentures Debt Discount				Total
		Debentures
Balance at 12/31/2013		$	(15,579,902	)		$	855,536			$	(14,724,366	)
Accretion of debt discount			-				(433,725	)			(433,725	)
Less: conversion of convertible debenture			8,851,871				(377,079	)			8,478,792
Balance at 9/30/2014			(6,728,031	)			44,732				(6,683,299	)



Inducement Expense



On January 31, 2014, the Company entered into a Debenture Conversion Agreement (the “Conversion Agreement”) with all of the holders of the Debentures. Under the terms of the Conversion Agreement, $9.0 million of the approximately $15.6 million in Debentures outstanding as of January 30, 2014 immediately converted to shares of common stock at a price of $2.00 per common share. As additional inducement for the conversions, the Company issued warrants to the converting Debenture holders to purchase one share of Common Stock, at an exercise price equal to $2.50 per share (the “Warrants”), for each share of Common Stock issued upon conversion of the Debentures. Utilizing Black Scholes option price model, with a 3 year life and 65% volatility, risk free rate of 0.2%, and the market price of $3.05. The Company recorded an inducement expense of $6.61 million, during the nine months ended September 30, 2014 for the warrants issued to induce the convertible debentures to convert their debt to Common Stock. T.R. Winston acted as the investment banker for the Conversion Agreement and was compensated by issuing 225,000 shares of the Company’s common stock and valued at a market price of $3.05 per share. During the nine months ended September 30, 2014, the Company valued the investment banker compensation at $0.69 million, which was expensed immediately.



Under the terms of the Conversion Agreement, the balance of the Debentures may be converted to common stock on the terms provided in the Conversion Agreement (including the terms related to the warrants) at the holder’s option, subject to receipt of shareholder approval as required by NASDAQ continued listing requirements. The Company intends to present proposals to approve the conversion of the remaining outstanding Debentures at its 2015 annual meeting of shareholders.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2014
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9 - COMMITMENTS and CONTINGENCIES



	Environmental and Governmental Regulation



	At September 30, 2014, there were no known environmental or regulatory matters which are reasonably expected to result in a material liability to the Company. Many aspects of the oil and gas industry are extensively regulated by federal, state, and local governments in all areas in which the Company has operations. Regulations govern such things as drilling permits, environmental protection and air emissions/pollution control, spacing of wells, the unitization and pooling of properties, reports concerning operations, land use, royalty rates and various other matters including taxation. Oil and natural gas industry legislation and administrative regulations are periodically changed for a variety of political, economic, and other reasons. As of September 30, 2014 the Company had not been fined or cited for any violations of governmental regulations that would have a material adverse effect upon the financial condition of the Company.



	Legal Proceedings



	The Company may from time to time be involved in various legal actions arising in the normal course of business. In the opinion of management, the Company’s liability, if any, in these pending actions would not have a material adverse effect on the financial position of the Company. The Company’s general and administrative expenses would include amounts incurred to resolve claims made against the Company.



	Parker v. Tracinda Corporation, Denver District Court, Case No. 2011CV561. In November 2012, the Company filed a motion to intervene in garnishment proceedings involving Roger Parker, the Company’s former Chief Executive Officer and Chairman. The Defendant, Tracinda, served various writs of garnishment on the Company to enforce a judgment against Mr. Parker seeking, among other things, shares of unvested restricted stock. The Company asserted rights to lawful set-offs and deductions in connection with certain tax consequences, which may be material to the Company. The underlying judgment against Mr. Parker was appealed to the Colorado Court of Appeals and, by Order dated October 17, 2013, that Court reversed the trial court with respect to Mr. Parker’s claims of waiver, estoppel and mitigation of damages and remanded with instruction to enter judgment for Mr. Parker. The Court of Appeals also ordered the trial court to conduct further proceedings to determine the amount of damages to award Mr. Parker on his breach of contract claim. The trial court conducted a later hearing and found in its Findings of Fact, Conclusions of Law and Order dated January 9, 2015, in favor of Mr. Parker on his claim for breach of contract, awarding him $6,981,302.60. Tracinda’s Motion for Amendment of the Court’s January 9 Findings and Conclusions is pending.

	In re Roger A. Parker: Tracinda Corp. v. Recovery Energy, Inc. and Roger A. Parker, United States Bankruptcy Court for the District of Colorado, Case No. 13-10897-EEB. On June 10, 2013, Tracinda Corp. (“Tracinda”) filed a complaint (Adversary No. 13-01301 EEB) against the Company and Roger Parker in connection with the personal bankruptcy proceedings of Roger Parker, alleging that the Company improperly failed to remit to Tracinda certain property in connection with a writs of garnishment issued by the Denver District Court (discussed above). The Company filed an answer to this complaint on July 10, 2013. A trial date has not been set and, by Order dated February 2, 2015, the Bankruptcy Court ordered that the Adversary Proceeding be held in abeyance pending final resolution of the state-court action (2011CV561). The Company is unable to predict the timing and outcome of this matter.



	From time to time the Company is involved in legal proceedings arising in the ordinary course of business. The Company believes there is no other litigation pending that could have, individually or in the aggregate, a material adverse effect on its results of operations or financial condition.

Shareholders_Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2014
Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 10 - SHAREHOLDERS’ EQUITY



	January 2014 Private Placement



	In January 2014, the Company entered into and closed a series of subscription agreements with accredited investors, pursuant to which the Company issued an aggregate of 2,959,125 units, with each unit consisting of (i) one share of the Common Stock and (ii) one three-year warrant to purchase one share of Common Stock, at an exercise price equal to $2.50 per share (together, the “Units”), for a purchase price of $2.00 per Unit, for aggregate gross proceeds of $5,918,250 (the “January Private Placement”). The warrants are not exercisable for six months following the closing of the January Private Placement. As of February 23, 2015, the underlying common shares have not been registered. The warrants still can be exercised without an effective registration statement on file. The Company will be filing a registration statement during the year 2015. The Company valued the warrants within the Unit, utilizing a Black Scholes Option Pricing Model using a volatility calculation of 65%, and 3 year term, the relative fair value allocated to warrants were approximately $1.69 million. The Company paid $1.06 million in financing fees to T.R. Winston.



	Series A 8% Convertible Preferred Stock



	On May 30, 2014, the Company consummated a private placement of 7,500 shares of Series A Preferred, along with detachable warrants to purchase up to 1,556,016 shares of Common Stock at an exercise price of $2.89 per share, for aggregate proceeds of $7.50 million. The Series A Preferred has a par value of $0.0001 per share, a stated value of $1,000 per share, a conversion price of $2.41 per share, and a liquidation preference to any junior securities. Except as otherwise required by law, holders of Series A Preferred shall not be entitled to voting rights, except with respect to proposals to alter or change adversely the powers, preferences or rights given to the Series A Preferred, authorize or create any class of stock ranking senior to the Series A Preferred as to dividends, redemption or distribution of assets upon liquidation, amend its certificate of incorporation or other charter documents in any manner that adversely affects any rights of the Preferred Stock holder, or increase the number of authorized Series A Preferred Stock. The holders of the Series A Preferred are entitled to receive a dividend payable, at the election of the Company (subject to certain conditions as set forth in the Certificate of Designations), in cash or shares of Common Stock, at a rate of 8% per annum payable a day after the end of each quarter. The Series A Preferred is convertible at any time at the option of the holders, or at the Company’s discretion when Common Stock trades above $7.50 for ten consecutive days with a daily dollar trading volume above $300,000. In addition, the Company has the right to redeem the shares of Series A Preferred, along with any accrued and unpaid dividends, at any time, subject to certain conditions as set forth in the Certificate of Designations. In addition, holders of the Series A Preferred can require the Company to redeem the Series A Preferred upon the occurrence of certain triggering events, including (i) failure to timely deliver shares of Common Stock after valid delivery of a notice of conversion by the holder; (ii) failure to have available a sufficient number of authorized and unreserved shares of Common Stock to issue upon conversion; (iii) the occurrence of certain change of control transactions; (iv) the occurrence of certain events of insolvency; and (v) the ineligibility of the Company to electronically transfer its shares via the Depository Trust Company or another established clearing corporation.



	The Series A Preferred is classified as equity based on the following criteria: i) the redemption of the instrument at the control of the Company; ii) the instrument is convertible into a fixed amount of shares at a conversion price of $2.41; iii) the instrument is closely related to the underlying Company’s common stock; iv) the conversion option is indexed to the Company’s stock; v) the conversion option cannot be settled in cash and only can be redeemed at the discretion of the Company; vi) and the Series A Preferred is not considered convertible debt.



	In connection with the issuance of the Series A Preferred, the Company also issued a warrant for 50% of the amount of shares of Common Stock into which the Series A Preferred is convertible.



	In connection with issuance of the Series A Preferred, the beneficial conversion feature (“BCF”) was valued at $2.25 million and the fair value of the warrant were valued at $1.35 million. The BCF was valued at $3.6 million was considered a deemed dividend and the full amount was expensed immediately.



	The Company determined the transaction created a beneficial conversion feature which is calculated by taking the net proceeds of $6.79 million and valuing the warrants as of May 2014, utilizing a Black Scholes option pricing model. The inputs for the pricing model are: $2.48 market price per share; exercise price of $2.89 per share; expected life of 3 years; volatility of 70%; and risk free rate of 0.20 %. The Company calculated the total consideration given to be $8.40 million comprised of $5.50 million for the Series A Preferred and $1.30 million for the warrants. The Company deemed the value of the beneficial conversion feature to be $2.21 million and immediately accreted that amount as a deemed dividend. As of September 30, 2014, the Company has accrued a cumulative dividend for $0.11 million, which was paid fully on October 1, 2014.



	Conditionally Redeemable 6% Preferred Stock



	In August 2014, the Company designated 2,000 shares of its authorized preferred stock as “Conditionally Redeemable 6% Preferred Stock” (“Redeemable Preferred”). The Redeemable Preferred has the same par value and stated value characteristics and liquidation preferences of the Series A preferred stock, yet the 6% Conditionally Redeemable Preferred is not convertible into common stock or any other securities of the Company. Except as otherwise required by law, holders of the Redeemable Preferred shall not be entitled to voting rights.



	The Redeemable Preferred Stock bears a 6% dividend per annum, payable quarterly, and is redeemable at face value (plus any accrued and unpaid dividends) at any time at the Company’s option, or at the Holders option upon the Company’s achievement of certain production and reserves thresholds. As of September 30, 2014, the Company accrued $0.01 million of accrued dividends during the period. In September 2014, the 2,000 shares of Redeemable Preferred Stock were issued pursuant to the Settlement Agreement with Hexagon at a value of $2.0 million.



	Consulting Agreement with Market Development Consulting Group, Inc. (“MDC”)



	In January 2014, the Company entered into a consulting agreement with MDC, a public relations company. The agreement provided for the issuance by the Company of 90,000 shares of Common Stock, 350,000 warrants to purchase common shares, and cash of $0.1 million a month.



	The 90,000 shares of Common Stock were issued on February 7, 2014 with an original market price of $3.35 for a total value of $0.30 million. The fair value of the shares amortized over the life of the contract, or until December 31, 2014 which were revalued at each reporting period. As of September 30, 2014, the Company had 25,322 shares remaining to vest at a value of $0.06 million. During the three and nine months ended September 30, 2014, the Company amortized the non-cash consulting expense for the Common Stock issued of $0.06 million and $0.20 million, respectively.



	The 350,000 warrants were valued using the Black Scholes option pricing model with the following inputs: (i) 350,000 warrants to purchase common stock; (ii) assumed stock price $2.33; (iii) strike price $4.25 for 100,000 and $2.33 for 250,000 warrants; volatility 45%; risk free rate of 0.20%; and expected life of 5 years. The valuation yielded a value of $0.40 million. The warrant value vested immediately and was recognized as stock based non-employee compensation.



Investment Banking Agreement



During the year ended December 31, 2013, the Company was party to a one-year, non-exclusive investment banking agreement with T.R. Winston, pursuant to which the Company issued to T.R. Winston 100,000 common shares, and 900,000 common stock purchase warrants. All warrants have a term of three years and a strike price of $4.25 per share, risk free rate of 0.20%, common stock price $1.880, volatility 63% valued at $0.26 million and amortized over the life of the contract. As of September 30, 2014, the full $0.26 million has been expensed through general and administrative expenses.



Consulting Agreement with Bristol Capital



On September 2, 2014, the Company entered into a Consulting Agreement (the “Consulting Agreement”) with Bristol Capital, LLC (“Bristol”). Pursuant to the Consulting Agreement, Bristol agreed to assist the Company in general corporate activities including but not limited to strategic planning; management and business operations; introductions to further its business goals; advice and services related to the Company’s growth initiatives; and any other consulting or advisory services the Company reasonably requests that Bristol provide to the Company. The Consulting Agreement has a term of three years. In connection with the Consulting Agreement and as compensation for the services to be provided by Bristol thereunder, the Company issued to Bristol a warrant to purchase up to 1,000,000 shares of Common Stock at an exercise price of $2.00 per share (the “Bristol Warrant”). In addition, the Company issued to Bristol an option to purchase up to 1,000,000 shares with no forfeitures provisions. The Bristol Option is intended as an alternative to the Bristol Warrant, and will automatically terminate upon and to the extent the Bristol Warrant is exercised. Likewise, if and to the extent the Bristol Option is exercised, the Bristol Warrant will terminate. If the Company has not registered the Common Shares underlying the Bristol Warrants within six months following the execution of the Consulting Agreement, Bristol may elect to terminate the Bristol Warrant and retain the Bristol Option, or to terminate the Bristol Option and retain the Bristol Warrant, but in either case may only retain either the Warrant or the Option. In no event will Bristol have the right to exercise, in whole or in part, the Bristol Warrant and/or Bristol Option for a number of shares in excess of 1,000,000. Each of the Bristol Warrant and the Bristol Option (whichever ultimately remains outstanding) has a term of five years. The Consulting Agreement does not include any cash payment. The Company used a Black Scholes option pricing model to value the warrants/options using the following variables: (i) warrants/options issued 1,000,000 total (as stated above, the Company will only issue a total of 1,000,000 shares of Common Stock under the option or the warrant, but no more than 1,000,000 shares in the aggregate); (ii) stock price $1.47; (iii) exercise price $ 2.00; expected life of 5 years; volatility of 60%; risk free rate of 0.20% for a total value of $0.62 million, which was expensed immediately. The warrants/options did not have any cancellation or forfeiture provisions in the contract and as a result, the amounts were fully recognized at the date of issuance.



Warrants



A summary of warrant activity for the nine months ended September 30, 2014 is presented below:



		Warrants		Weighted-
				Average
				Exercise
				Price
Outstanding at December 31, 2013			6,773,913	$	5.24
Granted – January 2014 private placement			3,326,340		2.5
Granted – May 2014 preferred private placement			1,556,017		2.89
Granted-debenture conversion agreement			4,743,011		2.5
Granted-issued to service consulting firms			350,000		2.88
Granted – Consulting Agreement with Bristol Capital			1,000,000		2
Exercised, forfeited, or expired			-		-
Outstanding at September 30, 2014			17,749,281	$	3.25



The weighted average remaining contract life of the warrants, as of September 30, 2014, was 1.09 years. These warrants are valued at $63.17 million. These warrants are cash warrants and the holders must pay the Company the full exercise price in cash. The intrinsic value of the warrants as of September 30, 2014 is $0.25 million.

Share_Based_and_Other_Compensa

Share Based and Other Compensation	9 Months Ended
	Sep. 30, 2014
Share Based and Other Compensation [Abstract]
SHARE BASED AND OTHER COMPENSATION	NOTE 11 - SHARE BASED AND OTHER COMPENSATION



	Share-Based Compensation



	In September 2012, the Company adopted the 2012 Equity Incentive Plan (the “EIP”). The EIP was amended by the stockholders on June 27, 2013 to increase the number of shares of Common Stock available for grant under the EIP from 900,000 shares to 1,800,000 shares and again on November 13, 2013 to increase the number of shares of Common Stock available for grant under the EIP from 1,800,000 shares to 6,800,000 shares and to increase the number of shares of Common Stock eligible for grant under the EIP in a single year to a single participant from 1,000,000 shares to 3,000,000 shares. Each member of the board of directors and the management team has been periodically awarded restricted stock grants, and in the future may be awarded such grants under the terms of the EIP.



	The value of employee services received in exchange for an award of equity instruments are based on the grant-date fair value of the award, recognized over the period during which an employee is required to provide services in exchange for such award.



	During the nine months ended September 30, 2014, the Company granted 324,428 shares of restricted common stock and 1,500,000 stock options, to employees, directors and consultants, which 2,212,084 shares of restricted common stock and stock options that had previously been granted under the EIP were forfeited in connection with the termination of certain employees, directors and consultants. The 1,500,000 options to purchase common stock were subsequently forfeited upon the resignation of Robert A. Bell, ex-COO/ President. As a result, the Company currently has 1,852,928 restricted shares and 3,600,000 options to purchase common shares outstanding to employees and directors. The restricted shares are included in the outstanding share count in the balance sheet and at the front of this document, yet they are currently on a vesting schedule based on service. Some of the options vest based on time and other options to purchase common stock are vested based certain operating thresholds.



	The Company recognized a restricted stock share based compensation expense of approximately $2.67 million, net of a credit of $0.31 million for cancelled Plan shares and options for the nine months ended September 30, 2014. The elements of share based compensation are as follows:



	Restricted Stock



	A summary of restricted stock grant activity for the nine months ended September 30, 2014 is presented below:



			Shares
	Balance outstanding at December 31, 2013			2,024,375
	Granted restricted shares			12,750
	Granted restricted shares			45,011
	Granted restricted shares			216,667
	Granted restricted shares			50,000
	Vested			(183,791	)
	Expired/ cancelled			(312,084	)
	Balance outstanding at September 30, 2014			1,852,928



	As of September 30, 2014, total unrecognized compensation cost related to unvested stock grants was approximately $0.18 million, which is expected to be recognized over a weighted-average remaining service period of 1years.



	Employment and Separation Agreements



	W. Phillip Marcum



	In April 2014, the Company entered into a separation agreement (the “Marcum Agreement”) with W. Phillip Marcum, its Former Chief Executive Officer, in connection with his resignation from his positions with the Company. The Marcum Agreement provides, among other things, that, consistent with his resignation for good reason under his Employment Agreement, the Company would pay him 12 months of severance through payroll continuation, in the gross amount of $220,000, less all applicable withholdings and taxes, that all stock options held by Mr. Marcum as of the time of his termination would immediately vest, and that Mr. Marcum would remain eligible to receive any performance bonus granted by the Company to its senior executives with respect to Company and/or executive performance in 2013. In addition, the Marcum Agreement provides that the Company would pay Mr. Marcum $150,000 in accrued base salary for his service in 2013, less all applicable withholdings and taxes, in exchange for Mr. Marcum’s forfeiture of the 93,750 shares of unvested restricted common stock of the Company that was issued to Marcum in June 2013 in lieu of such base salary. Mr. Marcum may elect to apply amounts payable under the Marcum Agreement against his commitment to invest $125,000 in the Company’s previously disclosed private offering, upon shareholder approval of the participation of the Company’s officers and directors in that offering. The Marcum Agreement also contains certain mutual non-disparagement covenants, as well as certain mutual confidentiality, non-solicitation and non-compete covenants. In addition, Mr. Marcum and the Company each mutually released and discharged all known and unknown claims against the other and their respective representatives that they had or presently may have, including claims relating to Mr. Marcum’s employment. The Marcum Agreement effectively terminated the previously disclosed Employment Agreement entered into between Mr. Marcum and the Company, dated as of June 25, 2013 and all items were immediately accrued.



	In connection with the Marcum Agreement, the Company reversed the 200,000 unvested options previously issued to Mr. Marcum valued at $0.07 million, and reissued fully vested options, which it valued utilizing the Black Scholes option pricing model at $0.41 million. The Company used a Black Scholes option pricing model to value the 200,000 options which Mr. Marcum retained using the following variables: i) 200,000 options; ii) stock price $ 3.50; iii) strike price $1.60; volatility 65%; and a total value of $0.41 million which is expensed immediately since under the terms of his separation agreement, the Company is not to be provided any additional services.



Robert A. Bell



On August 1, 2014, the Company entered into a separation agreement with Robert A. Bell, its former president and chief operating officer (the “Separation Agreement”). The Separation Agreement provides, among other things, that the Company would pay to Mr. Bell an aggregate of $100,000 in cash and issue to Mr. Bell 66,667 shares of Common Stock, in addition to satisfying the Company’s outstanding obligation to pay Mr. Bell $100,000 in cash and issue to Mr. Bell 33,333 shares of Common Stock. The Separation Agreement also contains certain mutual covenants, and reaffirms the survival of certain confidentiality provisions contained in the Employment Agreement dated as of May 1, 2014 between the Company and Mr. Bell. In addition, Mr. Bell and the Company each mutually released and discharged all known and unknown claims against the other and their respective representatives that they had or presently may have, including claims relating to Mr. Bell’s employment. The total amount was fully expensed as of September 30, 2014 for $0.26 million.



In connection with the termination of his employment, Mr. Bell forfeited the 1,500,000 stock options that were unvested at the time of his termination and the Company reversed $0.30 million.



A .Bradley Gabbard



In May 2014, in connection with his resignation as CFO of the Company, A. Bradley Gabbard forfeited the 200,000 options that were unvested at the time of his termination. At the date of his resignation, the Company recorded a credit of $0.07 million into the shareholder employee compensation expense account. Additionally, Mr. Gabbard forfeited his respective 52,084 shares of unvested restricted stock, for which the Company recorded a reversal of $0.07 million.



Board of Directors



In October 2013, the Company granted each of its independent directors 200,000 non-statutory options to purchase Common Stock at an exercise price of $2.05, equal to the closing price at October 24, 2013. The options vest one-third for the next three years on the anniversary grant date. The value of the 600,000 options at grant date was $0.64 million and will be amortized over the vesting period.



In connection with execution of an amended independent agreement, each director also agreed to receive 31,250 shares of restricted common stock in lieu of a portion of their cash salaries, to vest on April 15, 2014. During the three and nine months ended September 30, 2104, the Company recognized $0.05 million and $0.20 million, respectively.



Stock Options



A summary of stock options activity for the nine months ended September 30, 2014 is presented below:



		Stock				Weighted Average
						Exercise
		Options				Price
Outstanding at December 31, 2013			3,800,000				2.25
Granted			1,700,000				2.45
Exercised, forfeited, or expired			(1,900,000	)			(2.36	)
Outstanding at September 30, 2014			3,600,000				2.28



The average life of the options is 3 years and has no intrinsic value as of September 30, 2014.



As of September 30, 2014, the Company has 3,600,000 options outstanding which have an unrecognized expense to be expensed over the next 25 months of $0.50 million.

Related_Party_Transactions

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2014
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 12- RELATED PARTY TRANSACTIONS



	Abraham Mirman

	Transactions between the Company and Abraham Mirman



	The Company’s Chief Executive Officer (“CEO”) is an indirect owner of a group which converted approximately $0.22 million of Debentures in connection with the $9.00 million of Debentures converted in January 2014,and was paid $0.01 million in interest at the time of the Debenture conversion.



	During the January 2014 private placement, Mr. Mirman entered into a subscription agreement with the Company to invest $0.50 million, for which Mr. Mirman will receive 250,000 shares of stock and 250,000 warrants. The subscription agreement will not be consummated until a shareholder meeting is conducted to allow executives and board directors the ability to participate in the offering.



	During the May Private Placement, Mr. Mirman invested $0.25 million, for which Mr. Mirman received 250 shares of Series A Preferred and 51,867 warrants.



	In September 2013, the Company appointed Abraham Mirman as its President and in April 2014 he was appointed to serve as the Company’s Chief Executive Officer. Prior to joining the Company, Mr. Mirman was employed by TRW as its Managing Director of Investment Banking and until September 2014 continued to devote a portion of his time to serving in that role. In connection with the appointment of Mr. Mirman, the Company and TRW amended the investment banking agreement in place between the Company and TRW at that time to provide that, upon the receipt by the Company of gross cash proceeds or drawing availability of at least $30,000,000, measured on a cumulative basis and including certain restructuring transactions, subject to the Company’s continued employment of Mr. Mirman, TRW would receive from the Company a lump sum payment of $1.00 million. Mr. Mirman’s compensation arrangements with TRW provided that upon TRW’s receipt from the Company of the lump sum payment, TRW would make a payment of $1.00 million to Mr. Mirman. The Board determined in September 2014 that the criteria for the lump sum payment had been met. Mr. Mirman also received, as part of his compensation arrangement with TRW, the 100,000 common shares of the Company that were issued to TRW in conjunction with the investment banking agreement.



	G. Tyler Runnells

	Transactions between the Company and G. Tyler Runnels



	The Company has participated in several transactions with TRW, of which G. Tyler Runnels, currently a member of the Company’s directors, is the majority owner of TRW. Mr. Runnels also beneficially holds more than 5% of the Company’s common stock, including the holdings of TRW and his personal holdings, and has personally participated in certain transactions with the Company.



	On January 22, 2014, the Company paid TRW a commission equal to $486,000 (equal to 8% of gross proceeds at the closing of the January Private Placement). Of this $486,000 commission, $313,750 was paid in cash and $172,250 was paid in 86,125 Units. In addition, the Company paid TRW a non-accountable expense allowance of $182,250 (equal to 3% of gross proceeds at the closing of the January Private Placement) in cash. If the participation of certain of the Company’s current and former officers and directors is approved by the Company’s shareholders, the Company will pay TRW an additional commission equal to $0.06 million (equal to 8% of gross proceeds from the sale of Units of the Company’s officers and directors agreed to purchase in the January Private Placement), and the Company will pay TRW a non-accountable expense allowance of $0.02 million (equal to 3% of gross proceeds of the Units members of the Company’s officers and board of directors agreed to purchase in the January Private Placement). The Units issued to TRW were the same Units sold in the January Private Placement and were invested in the January Private Placement.



	On January 31, 2014, the Company entered into a Debenture Conversion Agreement (the “Conversion Agreement”) with all of the holders of the Debentures. Under the terms of the Conversion Agreement, $9.0 million of the approximately $15.6 million in Debentures outstanding as of January 30, 2014 immediately converted to shares of common stock at a price of $2.00 per common share. As additional inducement for the conversions, the Company issued warrants to the converting Debenture holders to purchase one share of Common Stock, at an exercise price equal to $2.50 per share (the “Warrants”), for each share of Common Stock issued upon conversion of the Debentures. T.R. Winston acted as the investment banker for the Conversion Agreement and was compensated by issuing 225,000 shares of the Company’s common stock and valued at a market price of $3.05 per share. During the nine months ended September 30, 2014, the Company valued the investment banker compensation at $0.69 million, which was expensed immediately.



	On May 19, 2014, the Company and the holders of the Debentures agreed to extend the maturity date under the Debentures until August 15, 2014, and on June 6, 2014, they agreed to further extend the maturity date under the Debentures from August 15, 2014 to January 15, 2015. In January 2015, the Company has entered into an extension agreement which extends the maturity date until January 8, 2018. The maturity date now coincides with the maturity date of the Credit Agreement.



	On March 28, 2014, the Company and TRW entered into a Transaction Fee Agreement in connection the May Private Placement. Pursuant to the Transaction Fee Agreement, the Company agreed to compensate TRW 5% of the gross proceeds of the May Private Placement, plus a $25,000 expense reimbursement. On April 29, 2014, the Company and TRW amended the Transaction Fee Agreement to increase TRW’s compensation to 8% of the gross proceeds, plus an additional 1% of the gross proceeds as a non-accountable expense reimbursement in addition to the $25,000 originally contemplated.



	On October 6, 2014, the Company entered into a letter agreement (the “Waiver”) with the holders of its Debentures. Pursuant to the Waiver, the holders of the Debentures agreed to waive any Event of Default (as that term is defined in the Debentures) that may have occurred prior to the date of the Waiver, including any default in connection with the Hexagon term loan, and to rescind and annul any acceleration or right to acceleration that may have been triggered thereby. In exchange for the Waiver, the Company agreed that TRW, as representative for the holders of the Debentures, would have the right to nominate two qualified individuals to serve on the Company’s Board. Mr. Runnells is one of the qualified nomination designees which TRW has elected to place on the board.



	On May 30, 2014, the Company paid TRW a commission equal to $600,000 (equal to 8% of gross proceeds at the closing of the May Private Placement). Of this $600,000 commission, $51,850 was paid in cash to TRW, $94,150 was paid in cash to other brokers designated by TRW, and $454,000 was paid in shares of Preferred Stock. In addition, the Company paid TRW a non-accountable expense allowance of $75,000 (equal to 1% of gross proceeds at the closing of the May Private Placement) in cash.



	From May 2013 until March 2014, the Company was party to a one-year, non-exclusive investment banking agreement with T.R. Winston, pursuant to which the Company issued to T.R. Winston 100,000 common shares, and 900,000 common stock purchase warrants. All warrants have a term of three years and a strike price of $4.25 per share, risk free rate of 0.20%, common stock price $1.880, volatility 63% valued at $0.26 million and amortized over the life of the contract. As of September 30, 2014, the full $0.26 million has been expensed through general and administrative expenses.



On June 6, 2014, T.R. Winston executed a commitment to purchase or affect the purchase by third parties of an additional $15 million in Series A 8% Convertible Preferred Stock, to be consummated within ninety (90) days thereof. The agreement was subsequently extended to February 22, 2015. As of February 25, 2015, the $15 million commitment was reduced to $7.50 million, extended for one year until February 23, 2016 with all of the other terms remaining unchanged.

Subsequent_Events

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2014
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 13- SUBSEQUENT EVENTS



	Waiver of Default under Debentures



	On October 6, 2014, the Debenture holders agreed to waive any event of default under the Debentures that may have occurred prior to the date of the waiver (including, without limitation, any default relating to the Company’s indebtedness to Hexagon), and to rescind and annul any acceleration or right to acceleration that may have been triggered thereby.



	Heartland Bank

	On January 8, 2015, Lilis Energy, Inc. (the “Company”) entered into a credit agreement (the “Credit Agreement”) with Heartland Bank, as administrative agent, and the financial institutions from time to time signatory thereto (individually a “Lender,” and any and all such financial institutions collectively the “Lenders”).



	The Credit Agreement provides for a three-year senior secured term loan in an initial aggregate principal amount of $3,000,000, which principal amount may be increased to a maximum principal amount of $50,000,000 at the request of the Company pursuant to an accordion advance provision in the Credit Agreements subject to certain conditions, including the discretion of the lender (the “Term Loan”). Funds borrowed under the Credit Agreement may be used by the Company to (i) purchase oil and gas assets, (ii) fund certain Lender-approved development projects, (iii) fund a debt service reserve account, (iv) pay all costs and expenses arising in connection with the negotiation and execution of the Credit Agreement, and (v) fund the Company’s general working capital needs.



	The Term Loan bears interest at a rate calculated based upon the Company’s leverage ratio and the “prime rate” then in effect. In connection with its entry into the Credit Agreement, the Company also paid a nonrefundable commitment fee in the amount of $75,000, and agreed to issue to the Lenders 75,000, 5-year warrants for every $1 million funded. An initial warrant to purchase up to 225,000 shares of the Company’s common stock at $2.50 per share was issued in connection with closing.



	The Company has the right to prepay the Term Loan, in whole or in part, subject to certain conditions. If the Company exercises its right to prepay under the Credit Agreement prior to January 8, 2016, it will be assessed a prepayment premium in an amount equal to 3% of the amount of such prepayment. If the Company exercises its right to prepay under the Credit Agreement after January 8, 2016, such prepayment shall be without premium or penalty.



	The Credit Agreement contains certain customary representations and warranties and affirmative and negative covenants. The Credit Agreement also contains financial covenants with respect to the Company’s (i) debt to EBITDAX ratio and (ii) debt coverage ratio. In addition, in certain situations, the Credit Agreement requires mandatory prepayments of the Term Loans, including in the event of certain non-ordinary course asset sales, the incurrence of certain debt, and the Company’s receipt of proceeds in connection with insurance claims.



	Debenture extension

	As of September 30, 2014, the Company had $6.68 million, net, outstanding under the Debentures. The Debentures were originally to mature on January 15, 2015; however, as of the date of this Form 10Q, the Company has entered into an extension agreement with each of the Debenture holders which extends the maturity date until January 8, 2018. As of the date of this filing, the maturity date now coincides with the maturity date of the Credit Agreement (discussed above).



	Convertible Debenture Interest Payment

	On December 29, 2014, the Company issued 1,262,844 shares to fund $0.94 million Debenture interest obligation.



	T.R. Winston

	On June 6, 2014, T.R. Winston executed a commitment to purchase or affect the purchase by third parties of an additional $15 million in Series A 8% Convertible Preferred Stock, to be consummated within ninety (90) days thereof. The agreement was subsequently extended to February 22, 2015. As of February 25, 2015, the $15 million commitment was reduced to $7.50 million, extended for one year until February 23, 2016 with all of the other terms remaining unchanged.



	Executive Employment Agreement

	On February 19, 2015, the Company entered into an Employment Agreement with Eric Ulwelling, its Chief Financial Officer. The Employment Agreement provides for a base salary of $175,000, a discretionary bonus equal to up to 50% of base salary, and 400,000 stock options with an exercise price equal to the greater of fair market value of the Company’s common stock on the date of execution of the Employment Agreement or $2.50 per share. One quarter of the stock options vested immediately upon grant, and the other three quarters will vest in three annual installments on the anniversary of the execution of the Employment Agreement. The Employment Agreement provides for severance and accelerated vesting of any outstanding equity award upon termination of Mr. Ulwelling’s employment by the Company without cause or by Mr. Ulwelling for good reason or in connection with a change in control, as each is defined in the Employment Agreement.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2014
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation and Restatement	Basis of Presentation and Restatement



	The condensed financial statements and accompanying footnotes are prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”).



	The unaudited condensed financial information furnished herein reflects all adjustments, consisting solely of normal recurring items, which in the opinion of management are necessary to fairly state the financial position of the Company and the results of its operations for the periods presented.



	This report should be read in conjunction with the Company’s financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission (the “SEC”) on June 11, 2014. The results of operations for the interim periods presented are not necessarily indicative of results for the entire year ending December 31, 2014. The financial statements in this Quarterly Report on Form 10-Q include the restated figures for the comparative periods in 2013, as provided in Amendment No. 1 to Form 10-Q/A to the Quarterly Report on Form 10-Q of Lilis Energy for the quarterly period ended September 30, 2013 (the “Amended Q3 2013 Report”).



	In February 2015, the Company discovered an error in the valuation of the conversion derivative liability of the Company’s 8% Senior Secured Convertible Debentures (the “Debentures”) for the periods ended December 31, 2011, December 31, 2012, December 31, 2013, as well as the quarterly periods ended September 30, 2013, March 31, 2014 and June 30, 2014 (together, the “Relevant Periods”). Specifically, the calculation of the derivative liability included in the Company’s financial statements for the Relevant Periods only included the value of the price protection (anti-dilution) feature, when it should have included both the conversion option and the price protection feature embedded in the Debentures. The changes in the fair value of the derivative resulted in additional non-cash charges to the previously filed financial statements.



	The Company has evaluated the effect of the error on all Relevant Periods in accordance with Staff Accounting Bulletin (“SAB”) 99 and SAB 108 and determined that the impact of the error on its previously filed annual financial statements for the fiscal years ended December 31, 2011, December 31, 2012, and December 31, 2013 was not material. However, the Company has concluded that the impact of these non-cash items in its previously filed quarterly financial statements for the fiscal quarters ended September 30, 2013, March 31, 2014 and June 30, 2014 was sufficiently material to warrant restatement of the Company’s previously filed Quarterly Reports on Form 10-Q for those periods. In addition, the Company will restate the immaterial amounts for the fiscal years ended December 31, 2011, December 31, 2012, and December 31, 2013 in its Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The opening balance as of January 1, 2013 will be adjusted in the annual report on Form 10K for the fiscal year ended December 31, 2014 to reflect the restatement of the immaterial amounts for the fiscal year ended December 31, 2011 and 2012. The Company filed amended quarterly reports on Form 10-Q/A for the fiscal quarters ended September 30, 2013, March 31, 2014 and June 30, 2014 on February 23, 2015. This Quarterly Report should be read in conjunction with those amended quarterly reports on Form 10-Q/A, which resulted in retroactive changes to financial statements for those periods, including changes to net loss and net loss per common share.
Use of Estimates	Use of Estimates



	The preparation of condensed financial statements in conformity with U.S. GAAP requires the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the 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 significantly from those estimates. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment.



	The most significant financial estimates are associated with the Company’s estimated volumes of proved oil and natural gas reserves, asset retirement obligations, assessments of impairment imbedded in the carrying value of undeveloped acreage and undeveloped properties, fair value of financial instruments, estimated convertible debentures derivative liabilities, depreciation and accretion, income taxes and contingencies.
Oil and Natural Gas Properties	Oil and Natural Gas Properties



	The Company follows the full cost method of accounting for oil and natural gas operations whereby all costs related to the exploration, non-production-related development and acquisition of oil and natural gas reserves are capitalized. Such costs include land acquisition costs, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling, developing and completing productive wells and/or plugging and abandoning non-productive wells, and any other costs directly related to acquisition and exploration activities. Proceeds from property sales are generally applied as a credit against capitalized exploration and development costs, with no gain or loss recognized, unless such a sale/conveyance would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of proved reserves.



	The Company accounts for its unproven long-lived assets in accordance with Accounting Standards Codification (“ASC”) Topic 360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets. ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate.



	Depletion of exploration and development costs and depreciation of wells and tangible production assets is computed using the units-of-production method based upon estimated proved oil and natural gas reserves. Costs included in the depletion base to be amortized include (a) all proved capitalized costs including capitalized asset retirement costs net of estimated salvage values, less accumulated depletion, (b) estimated future development costs to be incurred in developing proved reserves, and (c) estimated decommissioning and abandonment/restoration costs, net of estimated salvage values, that are not otherwise included in capitalized costs.



	The costs of undeveloped acreage are withheld from the depletion base until it is determined whether or not proved reserves can be assigned to the properties. When proved reserves are assigned to such properties or one or more specific properties are deemed to be impaired, the cost of such properties or the amount of the impairment is added to the full cost pool which is subject to depletion calculations.



	Under the full cost method of accounting, capitalized oil and natural gas property costs less accumulated depletion and net of deferred income taxes may not exceed an amount equal to sum of: i.) The present value, discounted at 10%, of estimated future net revenues from proved oil and natural gas reserves, plus ii.) The cost of unproved properties not subject to amortization (without regard to estimates of fair value), or estimated fair value, if lower, of unproved properties that are not subject to amortization. Should capitalized costs exceed this ceiling, an impairment expense is recognized. As of September 30, 2014, the Company tested its oil and natural gas assets under the ceiling test which yielded no impairment.



	The present value of estimated future net cash flows was computed by applying a flat oil and natural gas price to forecast revenues from estimated future production of proved oil and natural gas reserves as of period-end, less estimated future expenditures to be incurred in developing and producing the proved reserves (assuming the continuation of existing economic conditions), less any applicable future taxes.
Wells in Progress	Wells in Progress



	Wells in progress denotes wells that are currently in the process of being drilled or completed or otherwise under evaluation as to their potential to produce oil and natural gas reserves in commercial quantities. Such wells continue to be classified as capitalized wells in progress and withheld from the depletion calculation and the ceiling test until such time as either proved reserves can be assigned, or the wells are otherwise abandoned. Upon either the assignment of proved reserves or abandonment, the costs for these wells are then transferred to the full cost pool and become subject to both depletion and the ceiling test calculations in accordance with full cost accounting under S-X Rule 4-10.
Asset Retirement Obligation	Asset Retirement Obligation



	The Company incurs asset retirement obligations for certain oil and natural gas assets at the time they are placed in service. The fair values of these obligations are recorded as liabilities on a discounted basis. The costs associated with these liabilities are capitalized as part of the related assets and accretion. Over time, the liabilities are accreted for the change in their present value.



	For purposes of depletion calculations, the Company also includes estimated dismantlement and abandonment costs, net of salvage values, associated with future development activities that have not yet been capitalized as asset retirement obligations.
Oil and Natural Gas Revenue:	Oil and Natural Gas Revenue



	Sales of oil and natural gas, net of any royalties, are recognized when oil and natural gas have been delivered to a custody transfer point, persuasive evidence of a sales arrangement exists, the rights and responsibility of ownership pass to the purchaser upon delivery, collection of revenue from the sale is reasonably assured, and the sales price is fixed or determinable. Virtually all of the Company’s contracts’ oil and natural gas pricing provisions are tied to a NYMEX market index, with certain local differential adjustments based on, among other factors, whether a well delivers oil or natural gas to a gathering, refinery, marketing company, or transmission line and prevailing local supply and demand conditions. The price of the oil and natural gas fluctuates to remain competitive with other local oil suppliers.
Net Loss per Common Share	Net Loss per Common Share



	Earnings (losses) per common share are computed based on the weighted average number of common shares outstanding during the period presented. Diluted earnings (losses) per share are computed using the weighted-average number of common shares outstanding plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares. Potentially dilutive securities, such as shares issuable upon the conversion of debt or preferred stock, and exercise of stock purchase warrants and options, are excluded from the calculation when their effect would be anti-dilutive. As of September 30, 2014 and 2013 shares underlying options, warrants, preferred stock and convertible debentures have been excluded from the diluted share calculations as they were anti-dilutive as a result of net losses incurred.



	The Company had the following common stock equivalents at September 30, 2014 and 2013:



	As of	September 30, 2014		September 30, 2013
	Stock Options		3,600,000		3,800,000
	Series A Preferred Stock		3,112,033		-
	Stock Purchase Warrants		17,749,281		6,773,913
	Convertible debentures		3,364,016		3,665,859
			27,807,330		14,239,772
Recent Accounting Pronouncements	Recent Accounting Pronouncements



	In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09), which creates Topic 606, Revenue from Contracts with Customers, and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, ASU 2014-09 supersedes the cost guidance in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts, and creates new Subtopic 340-40, Other Assets and Deferred Costs— Contracts with Customers. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, ASU 2014-09 requires enhanced financial statement disclosures over revenue recognition as part of the new accounting guidance. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application is not permitted. The Company is currently evaluating the provisions of ASU 2014-09 and assessing the impact, if any, it may have on its condensed financial position and results of operations.



	In June 2014, FASB issued Accounting Standards Update 2014–12, Compensation – Stock Compensation (Topic 718), which clarifies accounting for share–based payments for which the terms of an award provide that a performance target could be achieved after the requisite service period. That is the case when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target could be achieved and still be eligible to vest in the award if and when the performance target is achieved. The updated guidance clarifies that such a term should be treated as a performance condition that affects vesting. As such, the performance target should not be reflected in estimating the grant–date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The guidance will be effective for the annual periods (and interim periods therein) ending after December 15, 2015. Early application is permitted. The Company is currently evaluating the effects of ASU 2014–12 on the condensed financial statements.



	In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014–15, Presentation of Financial Statements – Going Concern. The Update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2013–300—Presentation of Financial Statements (Topic 205): Disclosure of Uncertainties about an Entity’s Going Concern Presumption, which has been deleted. The Company is currently evaluating the effects of ASU 2014–15 on the condensed financial statements.



	Management does not believe that these or any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying condensed financial statements.
Subsequent Events	Subsequent Events



	The Company evaluates subsequent events through the date the condensed financial statements are issued.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Tables)	9 Months Ended
Summary of Significant Accounting Policies (Tables)	Sep. 30, 2014
Summary of Significant Accounting Policies [Abstract]
Schedule of common stock equivalents

	As of	September 30, 2014		September 30, 2013
	Stock Options		3,600,000		3,800,000
	Series A Preferred Stock		3,112,033		-
	Stock Purchase Warrants		17,749,281		6,773,913
	Convertible debentures		3,364,016		3,665,859
			27,807,330		14,239,772

Oil_and_Natural_Gas_Properties1

Oil and Natural Gas Properties (Tables)	9 Months Ended
Oil and Natural Gas Properties (Tables)	Sep. 30, 2014
Oil and Natural Gas Properties [Abstract]
Schedule of oil and gas properties	The following table represents an allocation of the transaction:



	Conveyance of oil and natural gas property to extinguish the obligation of debt and accrued interest payable	$	14,833,311
	Add: disposition of asset retirement obligations		973,135
	Net value of liabilities satisfied upon conveyance	$	15,806,446

	Oil and natural gas properties (full cost method), at cost
	Evaluated oil and natural gas properties	$	31,022,171
	Wells in progress, transferred to evaluated oil and natural gas properties		510,895
	Unevaluated oil and natural gas properties, transferred to evaluated oil and natural gas properties		6,026,297
	Total evaluated oil and natural gas properties		37,559,363
	Accumulated depletion		(21,058,451	)
	Net oil and natural gas properties conveyed, at cost		16,500,912
	Conditionally 6% Redeemable Preferred Stock		2,000,000
	Loss on conveyance of evaluated oil and natural gas properties		(2,694,466	)
	Net value of transaction	$	15,806,446

Fair_Value_of_Financial_Instru1

Fair Value of Financial Instruments (Tables)	9 Months Ended
Fair Value of Financial Instruments (Tables)	Sep. 30, 2014
Fair Value of Financial Instruments [Abstract]
Summary of fair value of assets and liabilities measured at fair value

	September 30, 2014:



		Level 1			Level 2			Level 3			Total
	Liabilities
	Convertible debentures conversion derivative liability	$	-		$	-		$	(1,540	)	$	(1,540	)
	Common stock incentive options for executive employment agreements compensation with both market and performance factors.		-			-			(110	)		(110	)
	Total liability, at fair value	$	-		$	-		$	(1,650	)	$	(1,650	)



	December 31, 2013:



		Level 1			Level 2			Level 3			Total
	Liabilities
	Common stock incentive options for executive employment agreements compensation with both market and performance factors	$	-		$	-		$	(145	)	$	(145	)
	Convertible debentures conversion derivative liability	$	-		$	-		$	(605	)	$	(605	)
	Total liability, at fair value	$	-		$	-		$	(750	)	$	(750	)


Summary of changes in fair value of Level 3 financial assets and liabilities

	For the nine months ended September 30, 2014 (in thousands)	Executive			Convertible			Total
		compensation			debentures derivative
		liability			liability
	Beginning balance, January 1, 2014	$	(145	)	$	(605	)	$	(750	)
	Change in fair value of the common stock executive employment agreement		35			-			35
	Change in fair value of the convertible debentures conversion derivative liability					(5,966	)		(5,966	)
	Reclassification of convertible debenture conversion derivative liability to additional paid in capital upon conversion of debenture		-			5,031			5,031
	Ending balance, September 30, 2014	$	(110	)		(1,540	)		(1,650	)



	For the three months ended September 30, 2014 (in thousands)	Executive			Convertible			Total
		compensation			debentures
		liability			derivative
					liability
	Beginning balance, June 1, 2014	$	(325	)	$	(968	)	$	(1,293	)
	Change in fair value of the common stock executive employment agreement		215			-			215
	Change in fair value of the convertible conversion debentures derivative liability		-			(572	)		(572	)
	Ending balance, September 30, 2014	$	(110	)		(1,540	)		(1,650	)



	For the nine months ended September 30, 2013 (in thousands)	Convertible
		notes derivative
		liability
	Beginning balance, January 1, 2013	$	(694	)
	Change in fair value of the convertible debentures conversion derivative liability		48
	Ending balance, September 30, 2013		(646	)



	For the three months ended September 30, 2013 (in thousands)	Convertible
		debentures derivative
		liability
	Beginning balance, June 30, 2013	$	(427	)
	Change in fair value of the convertible debentures derivative		(218	)
	Ending balance, September 30, 2013		(646	)

Loan_Agreements_Tables

Loan Agreements (Tables)	9 Months Ended
Loan Agreements (Tables)	Sep. 30, 2014
Loan Agreements [Abstract]
Schedule of debt

	(thousands, except percentages)	As of September 30,			As of December 31,
	(thousands, except percentages)	2014			2013
	10% Hexagon term loans	$	-		$	18,774
	8% Convertible Debentures		6,728			15,580
	Total		6,728			34,354
	Unamortized debenture discount		(45	)		(993	)
	Total debt, net of discount		6,683			33,361
	Less: amount due within one year		-			(10,663	)
	Long-term debt due after one year	$	6,683		$	22,698


Shedule of convertible debentures

		Convertible			Convertible Debentures Debt Discount			Total
		Debentures			Convertible Debentures Debt Discount			Total
	Balance at 12/31/2013	$	(15,579,902	)	$	855,536		$	(14,724,366	)
	Accretion of debt discount		-			(433,725	)		(433,725	)
	Less: conversion of convertible debenture		8,851,871			(377,079	)		8,478,792
	Balance at 9/30/2014		(6,728,031	)		44,732			(6,683,299	)

Shareholders_Equity_Tables

Shareholders' Equity (Tables)	9 Months Ended
Shareholders' Equity (Tables)	Sep. 30, 2014
Equity [Abstract]
Summary of warrant activity

		Warrants		Weighted-
				Average
				Exercise
				Price
	Outstanding at December 31, 2013		6,773,913	$	5.24
	Granted – January 2014 private placement		3,326,340		2.5
	Granted – May 2014 preferred private placement		1,556,017		2.89
	Granted-debenture conversion agreement		4,743,011		2.5
	Granted-issued to service consulting firms		350,000		2.88
	Granted – Consulting Agreement with Bristol Capital		1,000,000		2
	Exercised, forfeited, or expired		-		-
	Outstanding at September 30, 2014		17,749,281	$	3.25

Share_Based_and_Other_Compensa1

Share Based and Other Compensation (Tables)	9 Months Ended
Share Based and Other Compensation (Tables)	Sep. 30, 2014
Share Based and Other Compensation [Abstract]
Summary of restricted stock grant activity

		Shares
	Balance outstanding at December 31, 2013		2,024,375
	Granted restricted shares		12,750
	Granted restricted shares		45,011
	Granted restricted shares		216,667
	Granted restricted shares		50,000
	Vested		(183,791	)
	Expired/ cancelled		(312,084	)
	Balance outstanding at September 30, 2014		1,852,928
Summary of stock options activity

		Stock			Weighted Average
		Stock			Exercise
		Options			Price
	Outstanding at December 31, 2013		3,800,000			2.25
	Granted		1,700,000			2.45
	Exercised, forfeited, or expired		(1,900,000	)		(2.36	)
	Outstanding at September 30, 2014		3,600,000			2.28

Organization_Details

Organization (Details)	Sep. 30, 2014
Organization (Details)	acre
Organization (Textual)
Area of land for crude oil and natural gas (In acres)	84,000

Liquidity_and_Management_Plans1

Liquidity and Management Plans (Details) (USD $)	0 Months Ended	9 Months Ended	0 Months Ended
	Dec. 16, 2014	Sep. 30, 2014	Jun. 06, 2014	Jan. 08, 2015	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012	Feb. 23, 2015	Feb. 15, 2015
	Well	Sep. 30, 2014	Jun. 06, 2014	Jan. 08, 2015	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012	Feb. 23, 2015	Feb. 15, 2015
Liquidity (Textual)
Cash		$1,472,996			$165,365	$353,934	$970,035
Negative working capital		6,620,000
Debentures outstanding		6,728,000			34,354,000
Term loans and Debentures maturity date		15-Aug-14
Debt interest rate, Percentage		8.00%
Accrued liabilities for convertible debenture interest		500,000			5,100,000
Number of economically producing wells	8
Common stock, shares		27,655,631			19,671,901
Secured term loan				3,000,000
Maximum secured loan				50,000,000
T.R. Winston [Member]
Liquidity (Textual)
Additional preferred stock purchase by third parties value			15,000,000
Purchase commitment, description			On June 6, 2014, T.R. Winston executed a commitment to purchase or affect the purchase by third parties of an additional $15 million in Series A 8% Convertible Preferred Stock, to be consummated within ninety (90) days thereof. The agreement was subsequently extended to February 22, 2015. As of February 25, 2015, the $15 million commitment was reduced to $7.50 million, extended for one year until February 23, 2016 with all of the other terms remaining unchanged.
8% Senior Secured Convertible Debentures [Member]
Liquidity (Textual)
Cash		1,470,000
Negative working capital		6,620,000
Debentures outstanding		6,680,000			15,580,000		13,400,000
Term loans and Debentures maturity date		15-Jan-15
Extended maturity date of loan agreements		8-Jan-18
Subsequent Event [Member]
Liquidity (Textual)
Cash on hand								2,400,000	2,400,000
Subsequent Event [Member] \| Credit Agreement [Member]
Liquidity (Textual)
Debt instrument principal amount				$3,000,000
Debt instrument, term		5 years		3 years
Debt instrument, description				Principal amount may be increased to a maximum principal amount of $50,000,000 at the request of the Company, subject to certain conditions, and pursuant to an accordion advance provision in the Credit Agreement (the ''Term Loan'').

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Details)	9 Months Ended
Summary of Significant Accounting Policies (Details)	Sep. 30, 2014	Sep. 30, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	27,825,330	14,239,772
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	3,600,000	3,800,000
Series A Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	3,112,033
Stock Purchase Warrants (Member)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	17,749,280	6,773,913
Convertible debentures (Member)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	3,364,016	3,665,859

Summary_of_Significant_Account4

Summary of Significant Accounting Policies (Details Textuals)	9 Months Ended
	Sep. 30, 2014
Summary of Significant Accounting Policies [Abstract]
Percentage of proved reserves	25.00%

Oil_and_Natural_Gas_Properties2

Oil and Natural Gas Properties (Details ) (USD $)	9 Months Ended
Oil and Natural Gas Properties (Details ) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Oil and Natural Gas Properties [Abstract]
Conveyance of oil and natural gas property to extinguish the obligation of debt and accrued interest payable	$14,833,311
Add: disposition of asset retirement obligations	973,135
Net value of liabilities satisfied upon conveyance	15,806,446
Oil and natural gas properties (full cost method), at cost
Evaluated oil and natural gas properties	31,022,171
Wells in progress, transferred to evaluated oil and natural gas properties	510,895
Unevaluated oil and natural gas properties, transferred to evaluated oil and natural gas properties	6,026,297
Total evaluated oil and natural gas properties	56,271,645	88,022,830
Accumulated depletion	-21,058,451
Net oil and natural gas properties conveyed, at cost	16,500,912
Conditionally 6% Redeemable Preferred Stock	2,000,000
Loss on conveyance of evaluated oil and natural gas properties	-2,694,466
Net value of transaction	$30,745,973	$42,565,193

Oil_and_Natural_Gas_Properties3

Oil and Natural Gas Properties (Details Textual) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 02, 2014
	Sep. 30, 2014	acre
Oil and Natural Gas Properties (Textual)
Payment of debt and accrued interest payable	($14,833,311)
Redeemable preferred stock	$2,000,000
Redeemable preferred stock, percentage	6.00%
Hexagon [Member]
Oil and Natural Gas Properties (Textual)
Redeemable preferred stock, percentage	6.00%
Maximum percentage of proved reserves of oil and natural gas	25.00%
DJ Basin [Member]
Oil and Natural Gas Properties (Textual)
Operated net acres		31,725

Wells_in_Progress_Details

Wells in Progress (Details) (USD $)	9 Months Ended
Wells in Progress (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Wells in Progress (Textual)
Wells-in progress, Oil and gas	$6,041,743	$1,145,794
Accrued costs from wells in progress	5,700,000
Amount relieved from accrued expenses	5,200,000
Wells-in progress to developed oil and gas properties	16,500,912
Wells in progress description	The amount transferred to producing properties represents 12.5% of the total 25% interest owned by the Company. The remaining 12.5% ownership in the well is currently being accrued at $0.50 million for the authorization for expenditure to drill the wells, since the remaining ownership is being disputed by the mineral owners. The Company purchased the rights from both royalty owners which claimed ownership of the mineral rights. The Company has hedged their 12.5% ownership by paying both owners $0.10 million (total $0.20 million).
Interest owned by Company	12.50%
Accrued liabilities	500,000	5,100,000
Remaining ownership interest	25.00%
Costs incurred development costs	470,000
Hexagon [Member]
Wells in Progress (Textual)
Payment for purchase of rights	100,000
DJ Basin [Member]
Wells in Progress (Textual)
Payment for purchase of rights	$100,000

Fair_Value_of_Financial_Instru2

Fair Value of Financial Instruments (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Liability
Convertible debentures conversion derivative liability	($1,540)	($145)
Common stock incentive options for executive employment agreements compensation with both market and performance factors.	-110	-605
Total liability, at fair value	-1,650	-750
Level 1 [Member]
Liability
Convertible debentures conversion derivative liability
Common stock incentive options for executive employment agreements compensation with both market and performance factors.
Total liability, at fair value
Level 2 [Member]
Liability
Convertible debentures conversion derivative liability
Common stock incentive options for executive employment agreements compensation with both market and performance factors.
Total liability, at fair value
Level 3 [Member]
Liability
Convertible debentures conversion derivative liability	-1,540	-145
Common stock incentive options for executive employment agreements compensation with both market and performance factors.	-110	-605
Total liability, at fair value	($1,650)	($750)

Fair_Value_of_Financial_Instru3

Fair Value of Financial Instruments (Details 1) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Summary of changes in fair value of Level 3 financial assets and liabilities
Beginning balance	($1,293)		($750)
Change in fair value of the common stock executive employment agreement	215		35
Change in fair value of the convertible debentures conversion derivative liability	-572		-5,966
Reclassification of convertible debenture conversion derivative liability to additional paid in capital upon conversion of debenture			5,031
Ending balance, September 30, 2014	1,650		1,650
Executive compensation liability [Member]
Summary of changes in fair value of Level 3 financial assets and liabilities
Beginning balance	-325		-145
Change in fair value of the common stock executive employment agreement	215		35
Change in fair value of the convertible debentures conversion derivative liability
Reclassification of convertible debenture conversion derivative liability to additional paid in capital upon conversion of debenture
Ending balance, September 30, 2014	-110		-110
Convertible debentures derivative liability [Member]
Summary of changes in fair value of Level 3 financial assets and liabilities
Beginning balance	-968	-427	-605	-694
Change in fair value of the common stock executive employment agreement
Change in fair value of the convertible debentures conversion derivative liability	-572	-218	-5,966	-48
Reclassification of convertible debenture conversion derivative liability to additional paid in capital upon conversion of debenture			5,031
Ending balance, September 30, 2014	($1,540)	($646)	($1,540)	($646)

Fair_Value_of_Financial_Instru4

Fair Value of Financial Instruments (Details Textual) (USD $)	9 Months Ended
In Millions, except Per Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Fair Value of Financial Instruments (Textual)
Debentures, convertible, conversion price (per share)	$2	$4.25
Executive stock incentive bonus earned	The Executive Stock Incentive Options Bonus was issued on September 16, 2013 as a part of the employment agreement with current Chief Executive Officer. The incentive bonus contains a target provision, whereby the bonus amount earned by the executive may vary between 0% and 300%, depending on the Company achieving certain operating milestones.
Convertible Debt [Member]
Fair Value of Financial Instruments (Textual)
Convertible debentures	$6.68
Debentures, convertible, conversion price (per share)	$2
Description of common stock conversion	The debentures have elements of a derivative from the ability for certain adjustments, including both the conversion option and the price protection embedded in the Debentures. The conversion option allows the Debenture holders to convert their Debentures to the underlying common stock at $2.00. When the price of the common stock exceeds $2.00, it is more attractive for the Debenture holders to convert.
Underlying derivative description	Convertible at any time at the holders' option into shares of Common Stock at $2.00 per share, or 3,364,016 underlying conversion shares.

Loan_Agreements_Details

Loan Agreements (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Total	$6,728	$34,354
Unamortized debenture discount	-45	-993
Total debt, net of discount	6,683	33,361
Less: amount due within one year		-10,663
Long-term debt due after one year	6,683	22,698
10% Hexagon term loans [Member]
Debt Instrument [Line Items]
Total		18,774
8% Convertible Debentures, [Member]
Debt Instrument [Line Items]
Total	$6,728	$15,580

Loan_Agreements_Details_1

Loan Agreements (Details 1) (USD $)	9 Months Ended
Loan Agreements (Details 1) (USD $)	Sep. 30, 2014	Sep. 30, 2013
Schedule of Trading Securities and Other Trading Assets [Line Items]
Begining balance outstanding convertible debentures	($14,724,366)
Accretion of debt discount	810,804	1,742,099
Less: conversion of convertible debenture	8,478,792
Ending balance outstanding convertible debentures	-6,728,031
Convertible Debt Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Begining balance outstanding convertible debentures	-15,579,902
Accretion of debt discount
Less: conversion of convertible debenture	8,851,871
Ending balance outstanding convertible debentures	-6,728,031
Convertible Debentures Debt Discount [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Begining balance outstanding convertible debentures	855,536
Accretion of debt discount	-433,725
Less: conversion of convertible debenture	-377,079
Ending balance outstanding convertible debentures	$44,732

Loan_Agreements_Details_Textua

Loan Agreements (Details Textual) (USD $)	0 Months Ended	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended	1 Months Ended	33 Months Ended	0 Months Ended
	Aug. 01, 2014	30-May-14	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Jan. 31, 2014	Oct. 31, 2013	Sep. 02, 2014
			acre		acre					acre
										Well
Loan Agreements (Textual)
Area of net acres			84,000		84,000
Preferred stock par value			$0.00		$0.00		$0.00
Preferred Stock, Redemption Amount			$2,000,000		$2,000,000
Loss on conveyance of property			-2,694,466		-2,694,466
Conversion price per share			$2		$2		$4.25
Convertible per share present value			$0.47		$0.47		$0.17
Conversion of debt, Amount					6,680,000
Fair value of conversion feature		8,400,000			1,540,000		610,000
Volatility					70.00%		70.00%
Share Price			$2.25		$2.25		$2.32
Risk free rate							38.00%
Inducement expenses					6,661,275
Stock issued during period, Shares	66,667
Stock issued during period, Value	100,000
Convertible debentures, Shares					70,000
Convertible debentures, Value					150,000
8% Convertible Debentures, [Member]
Loan Agreements (Textual)
Debentures issued									15,600,000
Conversion price per share								$2
Description of interest payment on debentures other than cash									Interest at an annualized rate of 8%, payable quarterly on each May 15, August 15, November 15 and February 15 in cash or, at the Company's option subject to certain conditions, in shares of Common Stock. The interest option price is calculated using a 10 day VWAP discounted by 10% and applied to the outstanding interest.
Debt Instrument, Interest Rate During Period									10.00%
Conversion of debt, Amount								9,000,000
Debt Instrument, Periodic Payment, Interest								8,850,000
Debt Instrument, Periodic Payment, Principal								150,000
8% Convertible Debentures, [Member] \| Warrant [Member]
Loan Agreements (Textual)
Conversion price per share								$2.50
Conversion Agreement [Member]
Loan Agreements (Textual)
Conversion price per share								$2
Conversion of debt, Amount					9,000,000			9,000,000
Debt conversion outstanding								15,600,000
Share Price			$3.05		$3.05			$3.05
Warrants exercise price, per share								$2.50
Expected Life								3 years
Risk free rate								0.20%
Volatility rate								65.00%
Inducement expenses					6,610,000
Percentage Of Compensation					8
Investment banker compensation					690,000
Stock issued during period, Shares								225,000
Hexagon [Member]
Loan Agreements (Textual)
Aggregate outstanding loans										14,830,000
Monthly payments with interest and payment										230,000
Repayments of Debt		5,000,000
Secured term loan in original principal amount		19,830,000
Reducing amount of debt under the term loan		14,830,000
Extinguishment of term loans										19,830,000
Area of net acres										32,000
Carrying value of wells reserves										16,500,000
Asset retirement obligations of wells										970,000
Number of active wells										17
Additional Redeemable Preferred Share										2,000,000
Redeemable preferred stock percentage										6.00%
Preferred stock par value										$0.00
Preferred Stock, Redemption Amount										1,000
Hexagon [Member] \| Unsecured Debt [Member]
Loan Agreements (Textual)
Aggregate outstanding loans		6,000,000
Monthly payments with interest and payment		90,000
Interest rate on debentures		8.00%
Unsecured note, term		2 years
Unregistered common stock		943,208
Additional principal in replacement note		1,000,000
Additional shares issued		1,000,000
Hexagon [Member] \| Second Cash Payment
Loan Agreements (Textual)
Repayments of Debt		$5,000,000

Shareholders_Equity_Details

Shareholders' Equity (Details) (USD $)	9 Months Ended
Shareholders' Equity (Details) (USD $)	Sep. 30, 2014
Warrant [Member]
Summary of warrant activity
Outstanding Beginning	6,773,913
Exercised, forfeited, or expired
Outstanding Ending	17,749,281
Weighted Average Exercise Price, Outstanding Beginning	$5.24
Weighted Average Exercise Price, Exercised, forfeited, or expired
Weighted Average Exercise Price, Outstanding Ending
January 2014 private placement [Member] \| Warrant [Member]
Summary of warrant activity
Granted	3,326,340
Weighted Average Exercise Price, Granted	$2.50
May 2014 preferred private placement [Member] \| Warrant [Member]
Summary of warrant activity
Granted	1,556,017
Weighted Average Exercise Price, Granted	$2.89
Debenture conversion agreement [Member] \| Warrant [Member]
Summary of warrant activity
Granted	4,743,011
Weighted Average Exercise Price, Granted	$2.50
Issued to service consulting firms [Member] \| Warrant [Member]
Summary of warrant activity
Granted	350,000
Weighted Average Exercise Price, Granted	$2.88
Consulting Agreement With Bristol Capital [Member]
Summary of warrant activity
Granted	1,000,000
Weighted Average Exercise Price, Granted	$2

Shareholders_Equity_Details_Te

Shareholders' Equity (Details Textual) (USD $)	0 Months Ended	1 Months Ended		3 Months Ended	9 Months Ended		12 Months Ended	1 Months Ended		0 Months Ended
Shareholders' Equity (Details Textual) (USD $)	Aug. 01, 2014	30-May-14	Feb. 28, 2011	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Aug. 31, 2014	Jan. 31, 2014	Feb. 07, 2014	Sep. 02, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amount of noncash expense					$278,750	$531,739
Beneficial conversion feature		8,400,000			1,540,000		610,000
Share Price				$2.25	$2.25		$2.32
Proceeds from private placement			8,400,000
Series A Preferred Stock, shares issued				7,500	7,500
Series A Preferred Stock, value stated rate				1,000	1,000		1,000
Conversion price				$2	$2		$4.25
Debt interest rate, Percentage				8.00%	8.00%
Preferred stock par value				$0.00	$0.00		$0.00
Dividend on preferred stock				121,167	161,848
Preferred Stock, shares authorized				10,000,000	10,000,000
Preferred Stock, Value, Issued				6,794,000	6,794,000
Stock issued during period, Shares	66,667
Stock issued during period, Value	100,000
Common stock price, Value				2,765	2,765		1,967
Common stock, shares issued				27,655,631	27,655,631		19,671,901
Series A 8% Convertible Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants exercise price, per share		$2.89
Beneficial conversion feature		2,250,000		3,600,000
Beneficial conversion feature reversed value				500,000
Series A Preferred Stock, shares issued		7,500
Purchase of common stock warrant		1,556,016
Aggregate value of warrants issued		7,500,000
Series A Preferred Stock, value stated rate		1,000
Conversion price		$2.41
Debt interest rate, Percentage		8.00%
Preferred stock par value		$0.00
Convertible preferred stock description		The Series A Preferred is convertible at any time at the option of the holders, or at the Company's discretion when Common Stock trades above $7.50 for ten consecutive days with a daily dollar trading volume above $300,000.
Fair value of warrants		1,350,000
Deemed dividend		3,600,000
Deemed value of beneficial conversion feature		2,210,000
Dividend on preferred stock		110,000
Conditionally Redeemable 6% Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Debt interest rate, Percentage								6.00%
Dividend on preferred stock					10,000
Preferred stock, dividend rate, percentage								6.00%
Preferred Stock, shares authorized								2,000
Stock issued during period, Shares					2,000
Stock issued during period, Value					2,000,000
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beneficial conversion feature		1,300,000
Share Price									$2.33
Volatility rate									45.00%
Expected Life									5 years
Risk free interest rate									0.20%
Warrants issued value					63,170,000
Warrants issued									350,000
Warrant, vested									400,000
Weighted average remaining contractual life (in years)					1 year 1 month 2 days
Intrinsic value of warrants				250,000	250,000
Warrant [Member] \| Strike Price $4.25 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Price									$4.25
Warrants issued									100,000
Warrant [Member] \| Strike Price $2.33 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Price									$2.33
Warrants issued									250,000
Warrant [Member] \| Series A 8% Convertible Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants exercise price, per share		$2.89
Beneficial conversion feature		5,500,000
Gross proceeds from preferred stock		6,790,000
Share Price		$2.48
Volatility rate		70.00%
Expected Life		3 years
Risk free interest rate		0.20%
Private Placement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted									2,959,125
Warrants exercise price, per share									$2.50
Share Price									$2
Proceeds from private placement									5,918,250
Risk free interest rate		0.20%
Warrants issued		1,556,017
Total fair value		1,600,000
Private Placement [Member] \| T.R. Winston [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Financing fees									1,060,000
Private Placement [Member] \| Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility rate									65.00%
Expected Life									3 years
Fair value of warrants									1,690,000
Consulting Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amount of noncash expense				60,000	200,000
Share Price										$3.35
Stock issued during period, Shares									90,000	90,000
Stock issued during period, Value										300,000
Warrants issued value									100,000
Warrants issued									350,000
Number of shares vested					25,322
Total fair value					60,000
Investment Banking Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Price							$4.25
Volatility rate							63.00%
Purchase of common stock warrant							900,000
Risk free interest rate							0.20%
Total fair value							260,000
Warrants Term							3 years
Common stock price, Value							1,880
Common stock, shares issued							100,000
General and administrative expenses					260,000
Consulting Agreement With Bristol Capital [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted					1,000,000
Warrants exercise price, per share											$2
Share Price											$1.47
Volatility rate											60.00%
Expected Life											5 years
Risk free interest rate											0.20%
Stock issued during period, Shares											1,000,000
Warrants issued											1,000,000
Total fair value											$620,000
Warrants issued to purchase shares											1,000,000
Options granted to purchase shares											1,000,000
Number of shares in excess of warrants or options											1,000,000

Share_Based_and_Other_Compensa2

Share Based and Other Compensation (Details) (Restricted Stock [Member])	9 Months Ended
	Sep. 30, 2014
Restricted Stock [Member]
Summary of restricted stock grant activity
Beginning Balance	2,024,375
Granted restricted shares	12,750
Granted restricted shares	45,011
Granted restricted shares	216,667
Granted restricted shares	50,000
Vested	-183,791
Expired/ cancelled	-312,084
Ending Balance	1,852,928

Share_Based_and_Other_Compensa3

Share Based and Other Compensation (Details 1) (Stock Option [Member], USD $)	9 Months Ended
	Sep. 30, 2014
Stock Option [Member]
Summary of stock options activity
Outstanding Beginning	3,800,000
Granted	1,700,000
Exercised, forfeited, or expired	-1,900,000
Outstanding Ending	3,600,000
Weighted Average Exercise Price, Outstanding Beginning	$2.25
Weighted Average Exercise Price, Granted	$2.45
Weighted Average Exercise Price, Exercised, forfeited, or expired	($2.36)
Weighted Average Exercise Price, Outstanding Ending	$2.28

Share_Based_and_Other_Compensa4

Share Based and Other Compensation (Details Textual) (USD $)	0 Months Ended	9 Months Ended	1 Months Ended		3 Months Ended	1 Months Ended	0 Months Ended
	Aug. 01, 2014	Sep. 30, 2014	Apr. 30, 2014	Oct. 31, 2013	Sep. 30, 2014	31-May-14	Apr. 15, 2014	Dec. 31, 2013	Nov. 13, 2013	Jun. 27, 2013
Share Based and Other Compensation (Textual)
Compensation expense	$260,000	$2,670,000
Unrecognized non cash compensation expense		500,000			500,000
Share based compensation, Shares		3,600,000
Share Price		$2.25			$2.25			$2.32
Average life of options		3 years
Stock issued during period, Shares	66,667
Stock issued during period, Value	100,000
Share based compensation of cancelled plan		310,000
Additional Share Based Compensation (Textual)
Unrecognized compensation cost, non-vested stock grants		180,000			180,000
Unrecognized compensation cost, non-vested stock grants, period for recognition (in years)		1 year
Employee Stock Option [Member]
Share Based and Other Compensation (Textual)
Stock options granted to employees		1,500,000
W. Phillip Marcum
Share Based and Other Compensation (Textual)
Share Price			$3.50
Unvested option			200,000
Unvested option value			70
Vested option reissued, Shares			200,000
Vested option reissued, Value			410
Strike price			$1.60
Volatility rate			65.00%
Total fair value			410
Independent Directors [Member]
Share Based and Other Compensation (Textual)
Compensation expense		200,000			50,000
Stock options granted to employees				600,000
Exercise price				$2.05
Remaining term				3 years
Fair value of shares granted				640,000
Chief Operating Officer [Member]
Share Based and Other Compensation (Textual)
Unvested option forfeited, Shares	1,500,000
Unvested option forfeited, Value	300,000
Chief Operating Officer [Member] \| Employee Stock Option [Member]
Share Based and Other Compensation (Textual)
Number of shares reversed		1,500,000
Separation Agreement [Member] \| W. Phillip Marcum
Share Based and Other Compensation (Textual)
Payroll gross amount			220,000
Accrued base salary			150,000
Restricted common stock and stock options forfeited			93,750
Commitment fee, Amount			125,000
Separation Agreement [Member] \| Chief Operating Officer [Member]
Share Based and Other Compensation (Textual)
Stock issued during period, Shares	33,333
Stock issued during period, Value	100,000
Severance Agreement [Member]
Share Based and Other Compensation (Textual)
Unvested option		200,000			200,000
Severance Agreement [Member] \| Chief Financial Officer [Member]
Share Based and Other Compensation (Textual)
Unvested option forfeited, Shares						200,000
Unvested option forfeited, Value						70,000
Severance Agreement [Member] \| Mr.Gabbard [Member]
Share Based and Other Compensation (Textual)
Unvested common stock, Value						$70,000
Unvested common stock, Shares						52,084
Equity Incentive Plan [Member] \| Maximum [Member]
Share Based and Other Compensation (Textual)
Increase number of common stock available for grant under the EIP									6,800,000	1,800,000
Increase number of common stock available for grant under the EIP for single participant		3,000,000			3,000,000
Equity Incentive Plan [Member] \| Minimum [Member]
Share Based and Other Compensation (Textual)
Increase number of common stock available for grant under the EIP									1,800,000	900,000
Increase number of common stock available for grant under the EIP for single participant		1,000,000			1,000,000
Restricted Stock [Member]
Share Based and Other Compensation (Textual)
Unvested common stock, Shares		-312,084
Issue of shares to director							31,250
Restricted Stock [Member] \| Employees and Directors [Member]
Share Based and Other Compensation (Textual)
Stock options granted to employees		3,600,000
Restricted common stock and stock options forfeited		2,212,084
Restricted common stock granted, shares		324,428
Restricted common stock granted result of forfeituresres		1,852,928

Related_Party_Transactions_Det

Related Party Transactions (Details) (USD $)	1 Months Ended		9 Months Ended	1 Months Ended	12 Months Ended	1 Months Ended	0 Months Ended	1 Months Ended		0 Months Ended
Related Party Transactions (Details) (USD $)	30-May-14	Feb. 28, 2011	Sep. 30, 2014	Jan. 31, 2014	Dec. 31, 2013	Apr. 30, 2014	Jun. 06, 2014	Jan. 22, 2014	Mar. 28, 2014	19-May-14
Related Party Textual [Abstract]
Long-term Debt			$6,683,000		$33,361,000
Debt Conversion, Converted Instrument, Amount			6,680,000
Proceeds from private placement		8,400,000
Preferred Stock, Shares Issued			7,500
Commission paid in cash	600,000
Share market price			$2.25		$2.32
Inducement expenses			6,661,275
Common stock price, Value			2,765		1,967
Common stock, shares issued			27,655,631		19,671,901
Private Placement [Member]
Related Party Textual [Abstract]
Proceeds from private placement				5,918,250
Warrants issued	1,556,017
Warrants exercise price, per share				$2.50
Risk free interest rate	0.20%
Share market price				$2
Total fair value	1,600,000
Investment Banking Agreement [Member]
Related Party Textual [Abstract]
Volatility rate					63.00%
Risk free interest rate					0.20%
Share market price					$4.25
Purchase of common stock warrant					900,000
Total fair value					260,000
Warrants Term					3 years
Common stock price, Value					1,880
Common stock, shares issued					100,000
General and administrative expenses			260,000
Subscription Arrangement [Member]
Related Party Textual [Abstract]
Fair value of shares								700,000
Debenture Conversion Agreement [Member]
Related Party Textual [Abstract]
Long-term Debt				15,600,000
Debt Conversion, Converted Instrument, Amount				9,000,000
Common stock price per share				$2
Warrants exercise price, per share				$2.50
Share market price				$3.05
Debenture conversion description				Under the terms of the Conversion Agreement, $9.0 million of the approximately $15.6 million in Debentures outstanding as of January 30, 2014 immediately converted to shares of common stock at a price of $2.00 per common share.
Chief Executive Officer [Member]
Related Party Textual [Abstract]
Long-term Debt				220,000
Debt Conversion, Converted Instrument, Amount				9,000,000
Volatility rate						65.00%
Share market price						$3.50
Total fair value						410
Chief Executive Officer [Member] \| Private Placement [Member] \| Convertible Preferred Stock [Member]
Related Party Textual [Abstract]
Proceeds from private placement	250,000
Warrants issued	51,867
Preferred Stock, Shares Issued	250
Chief Executive Officer [Member] \| Subscription Arrangement [Member] \| Private Placement [Member]
Related Party Textual [Abstract]
Proceeds from private placement				500,000
Number of shares received				250,000
Warrants issued				250,000
Mr. Mirman [Member]
Related Party Textual [Abstract]
Compensation to related party			1,000,000
Mr. Mirman [Member] \| Private Placement [Member]
Related Party Textual [Abstract]
Proceeds from private placement		8,400,000
Mr. Mirman [Member] \| Subscription Arrangement [Member] \| Private Placement [Member]
Related Party Textual [Abstract]
Proceeds from private placement				500,000
Number of shares received				250,000
Warrants issued				250,000
TRW [Member]
Related Party Textual [Abstract]
Drawing availability			30,000,000
Due to related party			1,000,000
Share issued as compensation to related party			100,000
Commission paid in cash								313,750
Commission paid in stock								86,125
Percentage of gross proceeds at closing private placement								8.00%
Non-accountable expense allowance								182,250
Additional commission paid in cash								60,000
Percentage of gross proceeds at purchase of private placement								8.00%
Additional non accountable expense allowance								20,000
Additional preferred stock purchase by third parties value							15,000,000
Purchase commitment, description							On June 6, 2014, T.R. Winston executed a commitment to purchase or affect the purchase by third parties of an additional $15 million in Series A 8% Convertible Preferred Stock, to be consummated within ninety (90) days thereof. The agreement was subsequently extended to February 22, 2015. As of February 25, 2015, the $15 million commitment was reduced to $7.50 million, extended for one year until February 23, 2016 with all of the other terms remaining unchanged.
TRW [Member] \| Private Placement [Member]
Related Party Textual [Abstract]
Commission paid in cash	51,850
Commission paid in stock	454,000
Percentage of gross proceeds at closing private placement	8.00%							3.00%	5.00%
Non-accountable expense allowance	75,000
Expense reimbursement									25,000
Percentage of gross proceeds from non-accountable expense reimbursement	1.00%								1.00%
TRW [Member] \| Debenture Conversion Agreement [Member]
Related Party Textual [Abstract]
Common stock price per share			$3.05
Debentures maturity date, description										Company and the holders of the Debentures agreed to extend the maturity date under the Debentures until August 15, 2014, and on June 6, 2014, they agreed to further extend the maturity date under the Debentures from August 15, 2014 to January 15, 2015. In January 2015, the Company has entered into an extension agreement which extends the maturity date until January 8, 2018.
Inducement expenses			6,610,000
Common stock issued for services as compensation, share			225,000
Common stock issued for services as compensation, value			$690,000
G. Tyler Runnels [Member]
Related Party Textual [Abstract]
Ownership interest, description			Mr. Runnels also beneficially holds more than 5% of the Company's common stock.
Percentage of gross proceeds at purchase of private placement								3.00%

Subsequent_Events_Details_Text

Subsequent Events (Details Textual) (USD $)	0 Months Ended					9 Months Ended
Subsequent Events (Details Textual) (USD $)	Jun. 06, 2014	Oct. 06, 2014	Feb. 19, 2015	Dec. 29, 2014	Jan. 08, 2015	Sep. 30, 2014	Dec. 31, 2013	Dec. 31, 2012
Subsequent Event (Textual)
Debentures outstanding						$6,728,000	$34,354,000
T.R. Winston [Member]
Subsequent Event (Textual)
Purchase commitment, description	On June 6, 2014, T.R. Winston executed a commitment to purchase or affect the purchase by third parties of an additional $15 million in Series A 8% Convertible Preferred Stock, to be consummated within ninety (90) days thereof. The agreement was subsequently extended to February 22, 2015. As of February 25, 2015, the $15 million commitment was reduced to $7.50 million, extended for one year until February 23, 2016 with all of the other terms remaining unchanged.
Convertible Debt [Member]
Subsequent Event (Textual)
Debentures outstanding						6,680,000	15,580,000	13,400,000
Subsequent Event [Member]
Subsequent Event (Textual)
Commitment fee, Amount		15,000,000
Subsequent Event [Member] \| Eric Ulwelling [Member]
Subsequent Event (Textual)
Fair market value of common stock			$2.50
Stock option exercisable			400,000
Base salary			175,000
Discretionary bonus percentage			50.00%
Subsequent Event [Member] \| Convertible Debt [Member]
Subsequent Event (Textual)
Convertible debenture, Shares				1,262,844
Debenture interest obligation				940,000
Subsequent Event [Member] \| Credit Agreement [Member]
Subsequent Event (Textual)
Commitment fee, Amount						75,000
Warrants issued						75,000
Warrants issued for cash						75,000
Debt instrument principal amount					$3,000,000
Debt instrument, term					3 years	5 years
Debt instrument, description					Principal amount may be increased to a maximum principal amount of $50,000,000 at the request of the Company, subject to certain conditions, and pursuant to an accordion advance provision in the Credit Agreement (the ''Term Loan'').
Convertible debenture, Shares						225,000
common stock price per share						$2.50
Percentage of prepayment premium						3.00%