Lilis Energy (LLEX) 10-Q 23 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 19, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	LILIS ENERGY, INC.
Entity Central Index Key	1,437,557
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		27,542,466

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash	$ 51,610	$ 509,628
Restricted cash	669	183,707
Accounts receivable (net of allowance of $80,000)	924,339	831,706
Prepaid assets	13,175	54,064
Total current assets	989,793	1,579,105
Oil and gas properties (full cost method), at cost:
Evaluated properties	$ 50,096,063	46,268,756
Unevaluated acreage, excluded from amortization		2,885,758
Wells in progress, excluded from amortization	$ 109,909	6,041,743
Total oil and gas properties, at cost	50,205,972	55,196,257
Less accumulated depreciation, depletion, amortization, and impairment	(49,450,534)	(24,550,217)
Oil and gas properties at cost, net	755,438	30,646,040
Other assets:
Office equipment net of accumulated depreciation of $130,091 and $107,712, respectively.	51,444	73,823
Deferred financing costs, net	247,411	60,000
Restricted cash and deposits	460,877	215,541
Total other assets	759,732	349,364
Total Assets	2,504,963	32,574,509
Current liabilities:
Dividends accrued on preferred stock	540,000	180,000
Accrued expenses for drilling activity	535,938	5,734,131
Accounts payable	1,064,979	975,749
Accrued expenses	3,206,804	$ 1,248,995
Short-term loan and deposits - related parties	500,002
Term loan - Heartland, net of discount	2,707,364
Convertible debentures, net of discount	6,846,465
Convertible debentures conversion derivative liability	646,991
Total current liabilities	16,048,543	$ 8,138,875
Long term liabilities:
Asset retirement obligation	$ 206,980	200,063
Convertible debentures, net of discount		6,840,076
Warrant liability	$ 363,800	393,788
Convertible debentures conversion derivative liability		1,249,442
Total long-term liabilities	$ 570,780	8,683,369
Total liabilities	$ 16,619,323	$ 16,822,244
Commitments and contingencies
Conditionally redeemable 6% preferred stock, $0.0001 par value: 7,000 shares authorized; 2,000 shares issued and outstanding with a liquidation preference of $2,090,000 as of September 30, 2015 and $2,030,000 as of December 31, 2014.	$ 1,557,953	$ 1,686,102
Stockholders' equity
Series A Preferred stock, $0.0001 par value; stated rate $1,000:10,000,000 shares authorized; 7,500 issued and outstanding with a liquidation preference of $7,950,000 as of September 30, 2015 and $7,650,000 as of December 31, 2014.	6,794,000	6,794,000
Common stock, $0.0001 par value: 100,000,000 shares authorized; 27,415,414 shares issued and outstanding as of September 30, 2015 and 26,988,240 as of December 31, 2014.	2,742	2,699
Additional paid in capital	158,146,716	155,097,785
Accumulated deficit	(180,615,771)	(147,828,321)
Total stockholders' equity (deficit)	(15,672,313)	14,066,163
Total Liabilities, Redeemable Preferred Stock and Stockholders' Equity	$ 2,504,963	$ 32,574,509

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Balance Sheets [Abstract]
Allowance related to accounts receivable	$ 80,000	$ 80,000
Accumulated depreciation of office equipment	$ 130,091	$ 107,712
Redeemable 6% preferred stock, par value	$ 0.0001	$ 0.0001
Redeemable 6% preferred stock, shares authorized	7,000	7,000
Redeemable 6% preferred stock, shares issued	2,000	2,000
Redeemable 6% preferred stock, shares outstanding	2,000	2,000
Redeemable 6% preferred stock, liquidation preferences	$ 2,090,000	$ 2,030,000
Series A Preferred Stock, value stated rate	$ 1,000	$ 1,000
Series A Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Series A Preferred Stock, shares issued	7,500	7,500
Series A Preferred Stock, shares outstanding	7,500	7,500
Preferred Stock, liquidation preference	$ 7,950,000	$ 7,650,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	27,415,414	26,988,240
Common stock, shares outstanding	27,415,414	26,988,240

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Oil sales	$ 52,395	$ 735,386	$ 275,873	$ 2,414,995
Gas sales	4,512	118,639	55,391	308,629
Operating fees	$ 4,560	$ (39,015)	$ 20,280	37,866
Realized gain on commodity price derivatives				11,143
Total revenue	$ 61,467	$ 815,010	$ 351,544	2,772,633
Costs and expenses:
Production costs	39,073	101,593	126,289	739,176
Production taxes	16,515	71,864	31,734	266,774
General and administrative	1,712,481	2,935,404	7,116,572	8,536,882
Depreciation, depletion, accretion and amortization	56,232	$ 252,548	490,881	$ 1,211,587
Impairment of evaluated oil and gas properties	18,471,993		24,438,902
Total costs and expenses	20,296,294	$ 3,361,409	32,204,378	$ 10,754,419
Loss from operations before loss on conveyance of property	$ (20,234,827)	(2,546,399)	$ (31,852,834)	(7,981,786)
Loss on conveyance of property		(2,694,466)		(2,694,466)
Loss from operations	$ (20,234,827)	(5,240,865)	$ (31,852,834)	(10,676,252)
Other income (expenses):
Other income		$ 32,338	$ 794	32,435
Inducement expense				(6,661,275)
Change in fair value of convertible debentures conversion derivative liability	$ 876,348	$ (572,427)	$ 602,451	$ (5,966,236)
Change in fair value of warrant liability	352,450		86,238
Change in fair value of conditionally redeemable 6% preferred stock	7,958		128,149
Interest expense	(437,114)	$ (1,130,727)	(1,212,248)	$ (4,477,277)
Total other income (expenses)	799,642	(1,670,816)	(394,616)	(17,072,353)
Net loss	(19,435,185)	(6,911,681)	(32,247,450)	(27,748,605)
Dividends on redeemable preferred stock	(30,000)	$ (121,167)	(90,000)	(161,848)
Deemed dividend Series A Convertible Preferred Stock	(150,000)		(450,000)	(3,566,895)
Net loss attributable to common shareholders	$ (19,615,185)	$ (7,032,848)	$ (32,787,450)	$ (31,477,348)
Net loss per common share basic and diluted	$ (0.72)	$ (0.25)	$ (1.21)	$ (1.17)
Weighted average shares outstanding:
Basic and diluted	27,387,881	27,631,220	27,178,202	26,794,437

Condensed Statements of Operat5

Condensed Statements of Operations (Parenthetical) (Unaudited)	9 Months Ended
	Sep. 30, 2015
Statements Of Operations [Abstract]
Percentage of redeemable preferred stock	6.00%

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (32,247,450)	$ (27,748,605)
Adjustments to reconcile net loss to net cash used in operating activities:
Inducement expense		6,661,275
Common stock issued to investment bank for fees related to conversion of convertible debentures		686,251
Equity instruments issued for services and compensation	$ 3,048,974	2,667,213
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
Amortization of deferred financing cost	$ 78,897	278,750
Change in fair value of convertible debentures conversion derivative liability	(602,451)	$ 5,966,236
Change in fair value of warrant liability	(86,238)
Change in fair value of conditionally redeemable 6% preferred stock	(128,149)
Depreciation, depletion, amortization and accretion of asset retirement obligation	490,881	$ 1,211,587
Impairment of evaluated oil and gas properties	24,438,902
Accretion of debt discount	20,003	$ 810,804
Changes in operating assets and liabilities:
Accounts receivable	(92,633)	(264,011)
Restricted cash	(62,298)	282,849
Other assets	40,889	(104,510)
Accounts payable and other accrued expenses	2,046,869	531,855
Net cash used in operating activities	$ (3,053,804)	(6,293,145)
Cash flows from investing activities:
Acquisition of undeveloped acreage		(305,000)
Drilling capital expenditures	$ (207,908)	(92,708)
Additions of office equipment		(10,815)
Net cash used in investing activities	$ (207,908)	(408,523)
Cash flows from financing activities:
Net proceeds from issuance of Common Stock		5,327,700
Net proceeds from issuance of Series A Preferred Stock		6,794,000
Dividend payments on Preferred Stock	$ (180,000)	$ (40,681)
Debt issuance costs	(266,308)
Proceeds from issuance of short-term loan and deposits - related parties	500,002
Proceeds from issuance of debt	3,000,000	$ 1,000,000
Repayment of debt	(250,000)	(5,071,720)
Net cash provided by financing activities	2,803,694	8,009,299
Increase (decrease) in cash	(458,018)	1,307,631
Cash at beginning of period	509,628	165,365
CASH AT END OF THE PERIOD	51,610	1,472,996
Supplemental disclosure:
Cash paid for interest	$ 179,039	$ 1,170,300
Cash paid for income taxes
Non-cash transactions:
Fair value of warrants issued as debt discount	$ 56,250
Disposition of oil and gas assets for elimination of accrued expenses for drilling	$ 5,198,193
Acquisition of oil and gas assets for accounts payable and accrued interest		$ 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 Common Stock for payment of convertible debentures		2,000,000
Conveyance of property for payment of term loan		14,833,311
Disposition of asset retirement obligation (liability) through the conveyance of property		973,135
Common Stock issued for convertible note interest		$ 148,129

Organization

Organization	9 Months Ended
	Sep. 30, 2015
Organization [Abstract]
ORGANIZATION	NOTE 1 - ORGANIZATION On September 21, 2009, Universal Holdings, Inc. (“Universal”), a Nevada corporation, completed the acquisition of Coronado Acquisitions, LLC (“Coronado”). Under the terms of the acquisition, Coronado was merged into Universal. On October 12, 2009, Universal changed its name to Recovery Energy, Inc. On December 1, 2013, Recovery Energy, Inc. changed its name to Lilis Energy, Inc. (“Lilis”, “Lilis Energy”, “we”, “our” and the “Company”). The acquisition was accounted for as a reverse acquisition with Coronado being treated as the acquirer for accounting purposes. Accordingly, the financial statements of Coronado and Recovery Energy have been adopted as the historical financial statements of Lilis. The Company is an independent oil and gas exploration and production company focused on the Denver-Julesburg Basin (“DJ Basin”) where it holds 18,200 net acres. Lilis drills for, operates and produces oil and natural gas wells through the Company’s land holdings located in Wyoming, Colorado, and Nebraska. All references to production, sales volumes and reserves quantities are net to the Company’s interest unless otherwise indicated.

Liquidity

Liquidity	9 Months Ended
	Sep. 30, 2015
Liquidity [Abstract]
LIQUIDITY	NOTE 2 - LIQUIDITY Going Concern The Company’s financial statements for the three and nine months ended September 30, 2015 have been prepared on a going concern basis. The Company has reported net operating losses during the three and nine months ended September 30, 2015 and for the past five years. This history of operating losses, along with the recent decrease in commodity prices, may adversely affect the Company’s ability to access capital it needs to continue operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts of liabilities, that might result from this uncertainty. The Company is currently looking for additional capital, potential merger candidates, or funding sources which may offer improved opportunities to obtain capital to continue its current operations and to further develop its properties, acquire oil and gas properties and to cure any potential defaults in connection with its credit facility and current liabilities deficiencies. The Company is also focused on maintaining production while efficiently managing, and in some cases reducing, its operating and general and administrative expenses. The Company is also evaluating asset divestiture opportunities to provide capital to reduce its indebtedness. Successfully completing a significant capital infusion could possibly eliminate doubt about the Company’s ability to continue as a going concern. On January 8, 2015, the Company entered into a credit agreement, as amended, (the “Credit Agreement”) with Heartland Bank (“Heartland”), as administrative agent, and the financial institutions from time to time signatory thereto (each individually a “Lender,” and any and all such financial institutions collectively the “Lenders”). As previously disclosed, as of June 30, 2015, and as of the date hereof, the Company was not in compliance with the financial covenant in the Credit Agreement that relates to the total debt to EBITDAX ratio. EBITDAX is defined in the Credit Agreement as, for any period of determination, determined in accordance with GAAP, the pre-tax net income of the Company for such period plus less plus The Company is currently in default of the Credit Agreement for failure to make the principal payment due on October 1, 2015, in the amount of $125,000 and interest payments in the aggregate amount of $89,000, pursuant to Section 4.1 of the Credit Agreement. The Company is also in default under Section 8.1 and 8.20 of the Credit Agreement for failure to satisfy the covenants relating to the furnishing of reserve reports as of September 15 of each year and holding regularly scheduled operations meetings, respectively. Additionally, as of the date hereof, the Company has assumed an aggregate amount of $650,002 in additional subordinated unsecured debt, which is a default under the Credit Agreement pursuant to of Section 9.1(c). As a result of these violations, the Company has recorded the entire amount under the Term Loan totaling $2.75 million as a current liability. The Debentures also contain certain cross-default provisions with certain other debt instruments. Therefore, a default under the Credit Agreement, constitutes an event of default pursuant to the Debentures which may result in an acceleration of the Company’s obligations at the holders’ election. No demand has been received as of the date hereof, however, as a result of these violations, the Company has recorded the entire amount under the Debentures totaling $6.85 million as a current liability. The Company is currently in discussions with Heartland to resolve the existing defaults. There can be no assurance that the Company and Heartland will be successful in doing so. If we are unable to reach a successful resolution with Heartland, it may exercise its rights with respect to the Company’s collateral which includes substantially all of its assets. If Heartland exercises its rights with respect to the collateral, including foreclosure, we may need to severely curtail or cease operations. We are considering options available to the Company. Liquidity Plan As of September 30, 2015, the Company had a negative working capital balance and a cash balance of approximately $15.06 million and $52,000, respectively. As of November 20, 2015, the current cash balance was approximately $20,000. The Company is currently in default under and has $2.75 million outstanding under its Credit Agreement. Also, as of September 30, 2015, the Company has $6.85 million outstanding under its 8% Senior Secured Convertible Debentures due 2018 (the “Debentures”). The Debentures also contain certain cross-default provisions with certain other debt instruments. Therefore, a default under the Credit Agreement, constitutes an event of default pursuant to the Debentures and may result in an acceleration of the Company’s obligations at the holders’ election. No demand has been received as of the date hereof, however, as a result of these violations, the Company has recorded the entire amount under the Debentures totaling $6.85 million as a current liability. As of November 1, 2015, the Company is producing approximately 20 barrels of oil equivalent (“BOE”) a day from eight economically producing wells. As previously announced, the Company had entered into an asset purchase agreement with Swan Exploration, LLC (“Swan”) to acquire non-operated leasehold working interests including interests producing wells and acres of undeveloped leasehold in the core area of the Wattenberg Field in Weld County, Colorado. Due to current market conditions, volatility in the oil and gas market and the Company’s inability to secure adequate financing, the Company and Swan entered into a second amendment dated as of June 30, 2015, to extend the closing date of the transaction and to mutually agree to further negotiate the final purchase price. After failing to close the transaction by the final extension date, the Company received a letter from Swan indicating that it was in default on the acquisition. However, discussions remain ongoing and pending the success of continuing negotiations and the Company’s ability to obtain the necessary financing, the Company remains optimistic that a closing could occur. We cannot assure you that this transaction will close or that it may be in the same form as negotiated. Upon entering into the Credit Agreement, the Company believed it had secured adequate access to capital generally, and specifically, to fund the drilling and development of its proved undeveloped reserves. Due to the lack of liquidity that had been expected, but unavailable to the Company pursuant to the Credit Agreement, the Company believes that a full write-down of its proved undeveloped and unproved properties is appropriate as of the period ending September 30, 2015. 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 through a combination of capital raising activities, including borrowing transactions, subject to the approval of Heartland while that debt is outstanding, the sale of additional debt and/or equity securities, 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 continues to be unsuccessful in obtaining sufficient cash to fund the aforementioned capital requirements, the Company will 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 or cease operations altogether. There is no assurance that any such funding will be available to the Company on acceptable terms, if at all.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Estimates	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies and Estimates [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES	NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES Basis of Presentation The condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial statements and with Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission. Accordingly, the financial statements do not contain all information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of September 30, 2015 and the results of operations and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the operating results for the full fiscal year for any future period. These condensed financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Company’s accounting policies are described in the Notes to Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2014, and updated, as necessary, in this Quarterly Report on Form 10-Q. Use of Estimates The preparation of 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. Although actual results may differ from these estimates under different assumptions or conditions, the Company believes that its estimates are reasonable. 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, including derivative liabilities, depreciation and accretion, income taxes and contingencies. Oil and Gas Producing Activities The Company follows the full cost method of accounting for oil and 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 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 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 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 gas property costs less accumulated depletion and net of deferred income taxes may not exceed an amount equal to the sum of the present value, discounted at 10%, of estimated future net revenues from proved oil and gas reserves and 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. During the three and nine months ended September 30, 2015, the Company recorded an $18.5 million and a $24.4 million impairment, respectively. No impairment was recorded in 2014. The present value of estimated future net cash flows was computed by applying a flat oil price to forecast revenues from estimated future production of proved oil and 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 connotes wells that are currently in the process of being drilled or completed or otherwise under evaluation as to their potential to produce oil and gas reserves in commercial quantities. Such wells continue to be classified as 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 Rule 4-10 of Regulation S-X of the Securities Exchange Act of 1934, as amended. Accrued Expense Accrued liabilities are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide service to other entities in the future as a result of past transactions or events. Below is the break-out of the accrued expense account as of September 30, 2015 and December 31, 2014. September 30, December 31, Fair-value of executive compensation and other accrued payroll $ 786,000 $ 40,000 Accrued convertible debenture interest 848,000 3,043 Board of director fees 170,347 - Accrued professional fees 381,000 78,000 Production taxes 501,300 504,000 Other payables 520,157 623,952 $ 3,206,804 $ 1,248,995 Asset Retirement Obligations The Company's activities are subject to various laws and regulations, including legal and contractual obligations to reclaim, remediate, or otherwise restore properties at the time the asset is permanently removed from service. Calculation of an asset retirement obligation ("ARO") requires estimates about several future events, including the life of the asset, the costs to remove the asset from service, and inflation factors. The ARO is initially estimated based upon discounted cash flows over the life of the asset and is accreted to full value over time using the Company's credit adjusted risk-free interest rate. Estimates are periodically reviewed and adjusted to reflect changes. The present value of a liability for the ARO is initially recorded when it is incurred if a reasonable estimate of fair value can be made. This is typically done when a well is completed or an asset is placed in service. When the ARO is initially recorded, the Company capitalizes the cost (the asset retirement cost or "ARC") by increasing the carrying value of the related asset. ARCs related to wells are capitalized to the full cost pool and are subject to depletion. Over time, the liability increases for the change in its present value (accretion of ARO), while the net capitalized cost decreases over the useful life of the asset as depletion expense is recognized. In addition, ARCs are included in the ceiling test calculation for valuing the full cost pool. The fair value of the Company’s asset retirement obligation liability is calculated at the point of inception by taking into account (i) the cost of abandoning oil and gas wells, which is based on the Company’s and/or industry’s historical experience for similar work, or estimates from independent third-parties; (ii) the economic lives of its properties, which are based on estimates from reserve engineers; (iii) the inflation rate; and (iv) the credit adjusted risk-free rate, which takes into account the Company’s credit risk and the time value of money. Given the unobservable nature of the inputs, the initial measurement of the asset retirement obligation liability is deemed to use Level 3 inputs. The Company has accreted $3,000 and $7,000 for the three and nine months ended September 30, 2015, respectively. During the three and nine months ended September 30, 2014, the Company accreted $17,000 and $61,000, respectively. Revenue Recognition The Company derives revenue primarily from the sale of produced natural gas and crude oil. The Company reports revenue as the gross amount received before taking into account production taxes and transportation costs, which are reported as separate expenses and are included in oil and gas production expense in the accompanying consolidated statements of operations. Revenue is recorded in the month the Company’s production is delivered to the purchaser, but payment is generally received between 30 and 90 days after the date of production. No revenue is recognized unless it is determined that title to the product has transferred to the purchaser. At the end of each month, the Company estimates the amount of production delivered to the purchaser and the price the Company will receive. The Company uses its knowledge of its properties, its historical performance, existing contracts, NYMEX and local spot market prices, quality and transportation differentials, and other factors as the basis for these estimates. Impairment of Long-lived Assets The Company accounts for long-lived assets (other than oil and gas properties) at cost. Other long-lived assets consist principally of property and equipment and identifiable intangible assets with finite useful lives (subject to amortization, depletion, and depreciation). The Company may impair these assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. Recoverability is measured by comparing the carrying amount of an asset to the expected undiscounted future net cash flows generated by the asset. If it is determined that the asset may not be recoverable, and if the carrying amount of an asset exceeds its estimated fair value, an impairment charge is recognized to the extent of the difference. Net Loss per Common Share Earnings (losses) per share are computed based on the weighted average number of common shares outstanding during the period presented. Diluted earnings 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 warrants and options, are excluded from the calculation when their effect would be anti-dilutive. As of September 30, 2015 and 2014 shares underlying options, warrants, preferred stock and 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, 2015 and 2014: September 30, 2015 September 30, 2014 Stock Options 6,150,000 3,600,000 Unvested Restricted Stock (employees/directors) 1,880,667 1,914,001 Series A Preferred Stock 3,112,033 3,112,033 Warrants 12,983,153 17,749,281 Convertible Debentures 3,364,016 3,364,016 27,489,869 29,739,331 Recently Issued Accounting Pronouncements Various accounting standards updates are issued, most of which represented technical corrections to the accounting literature or were applicable to specific industries, are not expected to have a material impact on the Company’s condensed financial position and, results of operations.

Oil and Gas Properties & Oil an

Oil and Gas Properties & Oil and Gas Properties Acquisitions and Divestitures	9 Months Ended
	Sep. 30, 2015
Oil and Gas Properties & Oil and Gas Properties Acquisitions and Divestitures [Abstract]
OIL AND GAS PROPERTIES & OIL AND GAS PROPERTIES ACQUISITIONS AND DIVESTITURES	NOTE 4 - OIL AND GAS PROPERTIES & OIL AND GAS PROPERTIES ACQUISITIONS AND DIVESTITURES During the three and nine months ended September 30, 2015, the Company did not buy or sell any of its oil and gas properties. If commodity prices continue to stay at current 2015 levels or decline further, the Company may incur additional full cost ceiling impairments in future quarters. Because the ceiling calculation uses rolling 12-month average commodity prices, the effect of lower quarter-over-quarter prices in 2015 compared to 2014 is a lower ceiling value each quarter. This will result in ongoing impairments each quarter until prices stabilize or improve. Impairment charges would not affect cash flow from operating activities, but would adversely affect the Company’s net income and stockholders’ equity. As a result of this lower ceiling value, during the three and nine months ended September 30, 2015, the Company recognized an impairment expense on its evaluated oil and gas properties of $18.5 million and $24.4 million. No impairment was recognized in three and nine months ended September 30, 2014. Depreciation, depletion and amortization (“DD&A”) expenses related to the proved properties were approximately $46,000 and $461,000 for three and nine months ended September 30, 2015 as compared to $229,000 and $1.13 million for the three and nine months ended September 30, 2014, respectively. During the quarter ended September 30, 2015, the Company was put in non-consent status on three wells it agreed to participate in within the Northern Wattenberg field which includes each of two Wattenberg horizontal wells (1 Niobrara and 1 Codell), and a third well (Niobrara) that are described further below in connection with the Great Western Operating Company, LLC litigation. As such, the previously capitalized and accrued costs of approximately $5.20 million relating to these wells were eliminated since being placed in non-consent status relieved the Company of such liabilities. The Company has retained the right to participate in future drilling on this acreage block.

Derivatives

Derivatives	9 Months Ended
	Sep. 30, 2015
Derivatives [Abstract]
DERIVATIVES	NOTE 5 - DERIVATIVES The Company periodically enters into various commodity derivative financial instruments intended to hedge against exposure to market fluctuations of oil prices. As of September 30, 2015 and December 31, 2014, the Company did not have any commodity derivative instruments. Through January 31, 2014, the Company maintained an active commodity swap for 100 barrels of oil per day at a price of $99.25 per barrel. The Company recorded a realized gain on oil price hedges of approximately $11,000 for the nine months ended September 30, 2014. The Company did not have a hedge agreement for the three months ended September 30, 2014. Realized gains and losses are recorded as individual swaps mature and settle. These gains and losses are recorded as income or expenses in the periods during which applicable contracts settle. Swaps which are unsettled as of a balance sheet date are carried at fair value, either as an asset or liability. Unrealized gains and losses result from mark-to-market changes in the fair value of these derivatives between balance sheet dates.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2015
Fair Value of Financial Instruments [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures 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 marketplace. ● 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 interest rate term loan and Debentures are measured using Level 3 inputs. Executive Compensation In September 2013, the Company announced the appointment of Abraham Mirman as its new president. In connection with Mr. Mirman’s appointment, the Company entered into an employment agreement with Mr. Mirman (the “Mirman Agreement”). The Mirman Agreement provides for an incentive bonus package that, depending upon the relative performance of the Company’s Common Stock compared to the performance of stocks of certain peer group companies as measured from Mr. Mirman’s initial date of employment through December 31, 2014, may result in a cash bonus payment to Mr. Mirman of up to 3.0 times his base salary. The incentive bonus is recorded as a liability and valued at each reporting period. The Company engaged a valuation firm (“VFIRM”) to complete a valuation of this incentive bonus. As of December 31, 2014, the Company recorded a liability of $40,000 for accrued compensation. As previously announced, on March 30, 2015, the Company entered into an amended and restated employment agreement (the “CEO Agreement”) with Mr. Mirman. The CEO Agreement also provides for Mr. Mirman to receive a cash incentive bonus if certain production thresholds are achieved by the Company. Mr. Mirman’s new incentive bonus liability was valued by VFIRM at $225,000 at September 30, 2015. As of September 30, 2015, the Company provided for $131,000 of the bonus liability which represents the amount earned as of September 30, 2015. On March 6, 2015, the Company announced the appointment of Kevin Nanke as its new Executive Vice President and Chief Financial Officer. Mr. Nanke will also receive a cash incentive bonus if certain production thresholds are achieved by the Company and a performance bonus of $100,000 if the Company achieves certain goals set forth in the employment agreement. Mr. Nanke’s new incentive bonus liability was valued by VFIRM at $181,000 at September 30, 2015. As of September 30, 2015, provided for $106,000 of the liability which represents the amount earned as of that date. As previously announced, in March 2015, the Company entered into an employment agreement with Ariella Fuchs for services to be performed as General Counsel to the Company. Ms. Fuchs will also receive a cash incentive bonus if certain production thresholds are achieved by the Company. Ms. Fuchs’ new incentive bonus liability was valued by VFIRM at $173,000 at September 30, 2015. As of September 30, 2015, the Company has provided for $100,000 of the liability which represents the amount earned as of that date. The three executive compensation agreements had a change in fair value for the three and nine months ended September 30, 2015 of $106,000 and $337,000, respectively. The fair value of executive compensation is recorded as an accrued expense. Consulting Agreement with Bristol Capital-Warrant Price Protection Feature On September 2, 2014, the Company entered into a Consulting Agreement (the “Consulting Agreement”) with Bristol Capital, LLC (“Bristol”), pursuant to which 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 (or, in the alternative, 1,000,000 options, but in no case both). The agreement has a price protection feature that will automatically reduce the exercise price if the Company enters into another consulting agreement pursuant to which warrants are issued with a lower exercise price. On December 31, 2014, the Company revalued the warrants/option using the following variables: (i) 1,000,000 total warrants/options issued (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 of $0.72; (iii) exercise price of $2.00; (iv) expected life of 4.67 years; (v) volatility of 96.78%; (vi) risk free rate of 1.10% for a total value of $394,000, which adjusted the change in fair value valuation of the derivative by $571,000. On September 30, 2015, the Company revalued the warrants/options using the following variables: (i) 1,000,000 total warrants/options issued (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 of $0.61; (iii) exercise price of $2.00; (iv) expected life of 3.9 years; (v) volatility of 100%; risk free rate of 1.1% for a total value of $299,000, which adjusted the change in fair value valuation of the derivative by $289,000 and $95,000 for the three and nine months ended September 30, 2015, respectively. Credit Agreement - Warrant Anti-Dilution Feature On January 8, 2015, the Company entered into the Credit Agreement which provides for a three-year senior secured term loan in an initial aggregate principal amount of $3.0 million, which principal amount may be increased to a maximum principal amount of $50.0 million at the request of the Company, subject to certain conditions, and pursuant to an accordion advance provision in the Credit Agreement. Heartland is entitled to receive 75,000 warrants for every $1.0 million advance at an exercise price equal to 115% of the 10-day volume weighted average price (“VWAP”) prior to closing of each advance. The Company issued 225,000 warrants (the “Initial Warrants”) at an exercise price of $2.50 with the initial advance. The Initial Warrants have an anti-dilution feature that will automatically reduce the exercise price if the Company enters into another agreement pursuant to which warrants are issued with a lower exercise price. The Company is carrying the Initial Warrants, valued as of January 8, 2015, as a long-term derivative liability and will revalue the instrument periodically. On January 8, 2015: (i) 225,000 warrants issued; (ii) stock price of $0.72; (iii) exercise price of $2.50; (iv) expected life of 5.0 years; (v) volatility of 97.1%; (vi) risk free rate of 1.50% for a total value of $56,000, which was recorded as a debt discount and amortized over the life of the loan. On September 30, 2015, the Company revalued the warrants using the following variables: (i) 225,000 warrants issued; (ii) stock price of $0.61; (iii) exercise price of $ 2.50; (iv) expected life of 4.3 years; (v) volatility of 100%; (vi) risk free rate of 1.2% for a total value of $65,000, which adjusted the change in fair value valuation of the derivative by $64,000 and $(9,000) for the three and nine months ended September 30, 2015, respectively. Convertible Debentures Conversion Derivative Liability As of September 30, 2015, the Company had $6.85 million in remaining Debentures, which, subject to shareholder approval, are convertible at any time at the holders’ option into shares of Common Stock at $2.00 per share, or 3,423,233 underlying conversion shares. The Debentures have elements of a derivative due to the potential 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 underlying Common Stock at a conversion price of $2.00 per share, subject to certain adjustments, including the requirement to reset the conversion for any subsequent offering at a lower price per share amount. The Company values this conversion liability at each reporting period using a Monte Carlo pricing model. At September 30, 2015 and December 31, 2014, the Company valued the conversion feature associated with the Debentures at $647,000 and $1.25 million, respectively. The Company used the following inputs to calculate the valuation of the derivative as of September 30, 2015: (i) volatility of 100%; (ii) conversion price of $2.00; (iii) stock price of $0.61; and (iv) present value of conversion feature of $0.19 per convertible share and as of December 31, 2014: (i) volatility of 70%; (ii) conversion price of $2.00; (iii) stock price of $0.72; and (iv) present value of conversion feature of $0.47 per convertible share. The change in fair value valuation of the derivative was $876,000 and $602,000 for the three and nine months ended September 30, 2015, respectively. The following table provides a summary of the fair values of assets and liabilities measured at fair value: September 30, 2015: Level 1 Level 2 Level 3 Total Liability Executive employment agreements $ - $ - $ (337,000 ) $ (337,000 ) Warrant liabilities - - (364,000 ) (364,000 ) Convertible debenture conversion derivative liability - - (647,000 ) (647,000 ) Total liability, at fair value $ - $ - $ (1,348,000 ) $ (1,348,000 ) December 31, 2014: Level 1 Level 2 Level 3 Total Liability Executive employment agreement $ - $ - $ (40,000 ) $ (40,000 ) Warrant liabilities - - (394,000 ) (394,000 ) Convertible debenture conversion derivative liability - - (1,249,000 ) (1,249,000 ) Total liability, at fair value $ - $ - $ (1,683,000 ) $ (1,683,000 ) The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets and liabilities as of September 30, 2015: Conversion derivative liability Bristol/ Incentive bonus Total Balance at January 1, 2015 $ 1,249,000 $ 394,000 $ 40,000 $ 1,683,000 Additional liability - 56,000 149,000 205,000 Change in fair value of liability (602,000 ) (86,000 ) 148,000 (540,000 ) Balance at September 30, 2015 $ 647,000 $ 364,000 $ 337,000 $ 1,348,000 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, 2015 and 2014.

Loan Agreements

Loan Agreements	9 Months Ended
	Sep. 30, 2015
Loan Agreements [Abstract]
LOAN AGREEMENTS	NOTE 7 - LOAN AGREEMENTS As of Heartland Term Loan (due January 8, 2018) $ 2,750,000 Unamortized debt discount (42,636 ) Heartland Term Loan, net 2,707,364 Less: amount due within one year (2,707,364 ) Heartland Term Loan due after one year $ - 8% Convertible Debentures, net (due 2018; 8% weighted average interest rate) $ 6,846,000 Credit Agreement On January 8, 2015, the Company entered into the Credit Agreement. 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 Agreement 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. As of January 8, 2015, the Company valued the 225,000 warrants at $56,000, which was accounted for as debt discount and amortized over the life of the debt. The Company accreted $5,000 and $14,000 of debt discount for the three and nine months ended September 30, 2015, respectively. The warrants are valued every quarter due to their derivative characteristics. See Note 6—Fair Value of Financial Instruments for valuation and inputs. 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. As previously disclosed, as of June 30, 2015, and as of the date hereof, the Company was not in compliance with the financial covenant in the Credit Agreement that relates to the total debt to EBITDAX ratio. 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. 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, 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 election of the holder, subject to receipt of shareholder approval as required by Nasdaq continued listing requirements. In the event the Company decides to seek shareholder approval, the Company would present a proposal to approve the conversion of the remaining outstanding Debentures at its 2015 annual meeting of shareholders, which it plans to hold sometime in the fourth quarter or at a special meeting at a later date. As of September 30, 2015 and December 31, 2014, the Company had $6.85 million and $6.84 million, net, remaining Debentures, respectively, which are convertible at any time at the holders’ option into shares of Common Stock at a conversion price of $2.00 per share, subject to certain standard adjustments. The Debentures also contain certain cross-default provisions with certain other debt instruments. Therefore, a default under the Credit Agreement, constitutes an event of default pursuant to the Debentures and may result in an acceleration of the Company’s obligations at the holders’ election. No demand has been received as of the date hereof, however, as a result of these violations, the Company has recorded the entire amount under the Debentures totaling $6.85 million as a current liability. Interest Expense Interest expense for the three and nine months ended September 30, 2015 was $437,000 and $1.21 million, respectively, and for the three and nine months ended September 30, 2014 of $1.13 million and $4.48 million, respectively. The non-cash interest expense during the three and nine months ended September 30, 2015 was approximately $347,000 and $944,000, respectively, and $860,000 and $2.30 million for the three and nine months ended September 30, 2014. The non-cash interest expenses consisted of non-cash interest expense and amortization of the deferred financing costs, accretion of the Debentures payable discount, and Debentures interest paid in common stock.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 8 - COMMITMENTS AND CONTINGENCIES Environmental and Governmental Regulation At September 30, 2015, there were no known environmental or regulatory matters which were 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, and various other matters including taxation. Oil and gas industry legislation and administrative regulations are periodically changed for a variety of political, economic, and other reasons. As of September 30, 2015 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 In re Roger A. Parker: Tracinda Corp. v. Recovery Energy, Inc. and Roger A. Parker Lilis Energy, Inc. v. Great Western Operating Company LLC, On July 7, 2015, as previously reported, the Company entered into a Settlement Agreement (the “Settlement Agreement”) with the Operator. The Settlement Agreement provides that upon the Company’s payment to the Operator, net of the revenues owed to the Company based on the Company’s respective working interests in the subject wells of (i) the balance of its share of the costs and expenses of drilling, completion and operating costs of the subject wells, (ii) interest due on that amount and (iii) a penalty fee of $250,000. The Company will have its full rights restored in the subject wells and return to having all rights and obligations under the JOA. This includes the right to participate in any future proposed wells at the Company’s full interest under the JOA as if the Company had participated and paid its proportionate share of costs of the subject wells prior to the notices of default sent to the Company by the Operator. Pursuant to the JOA, the Company will regain an approximately 50% working interest in each of two Wattenberg horizontal wells (1 Niobrara and 1 Codell), an approximately 33% working interest in a third well (Niobrara), and an approximately 50% working interest in the remaining leasehold. Due to the Company’s inability to secure financing pursuant to the Credit Agreement or another funding source, payment has not yet remanded payment to the Operator. 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.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 9 - RELATED PARTY TRANSACTIONS G. Tyler Runnels The Company has participated in several transactions with TR Winston, of which G. Tyler Runnels, currently a member of the Company’s board of directors, is chairman and majority owner. Mr. Runnels also beneficially holds more than 5% of the Company’s Common Stock, including the holdings of TR Winston and his personal holdings, and has personally participated in certain transactions with the Company. On June 6, 2014, TR 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 90 days thereof. The agreement was subsequently extended and expired on February 22, 2015. On February 25, 2015, the Company and TR Winston agreed in principal to a replacement commitment, pursuant to which TR Winston has agreed to purchase or affect the purchase by third parties of an additional $7.5 million in Series A 8% Convertible Preferred Stock, to be consummated no later than February 23, 2016, with all other terms substantially the same as those of the original commitment. This has not yet occurred. Ronald D. Ormand On March 20, 2014, the Company entered into an Engagement Agreement (the “Engagement Agreement”) with MLV & Co. LLC (“MLV”), pursuant to which MLV will act as the Company’s exclusive financial advisor. Ronald D. Ormand, currently a member of the Company’s board of directors as of February 2015, is the Managing Director and Head of the Energy Investment Banking Group at MLV. The Engagement Agreement provides for a fee of $25,000 to be paid monthly to MLV, subject to certain adjustments and other specific fee arrangements in connection with the nature of financial services being provided. The Company expensed $75,000 and $225,000 for the three and nine months ended September 30, 2015, respectively, and expensed a total of $50,000 and $150,000 for the three and nine months ended September 30, 2014, respectively On May 27, 2015, MLV agreed to take $150,000 of its accrued fees in the Company’s Common Stock and was issued 75,000 shares in lieu of payment. The closing share price on May 27, 2015 was $1.56. Abraham Mirman On August 14, 2015, the Company received a deposit in the amount of $250,000 from the Bruin Trust (the “Trust”) in connection with a potential financing to be conducted by the Company. The deposit was subsequently purchased by Abraham Mirman, Chief Executive Officer and director of the Company, from the Trust in its entirety with an effective date of August 14, 2015, and exchanged into a note (the “Mirman Note”) from the Company. The Trust is an irrevocable trust whose beneficiaries include the adult children of Mr. Ormand, a current member of the Company’s board of directors. The Trust is managed by an independent trustee and Mr. Ormand has no pecuniary interest in or control over the Trust. The Trust received no compensation for the deposit or interest on the Note. The Mirman Note carries a 12% interest rate and has generated minimal interest. The amount will be repaid within one year and has been recorded as a short-term loan. General Merrill McPeak On June 22, 2015, the Company received $250,002 from General McPeak as an unsecured short-term loan (the “McPeak Agreement”). The McPeak Agreement carries a 12% interest rate and has generated minimal interest. The amount will be repaid within one year. General McPeak is currently a member of the Company’s board of directors. The McPeak Agreement has been recorded as a short-term loan. Nuno Brandolini On November 10, 2015, the Company received $150,000 from Nuno Brandolini as an unsecured short-term loan (the “Brandolini Agreement”). The Brandolini Agreement carries a 12% interest rate and has generated minimal interest. The amount will be repaid within one year. Mr. Brandolini is currently a member of the Company’s board of directors. The Brandolini Agreement has been recorded as a short-term loan.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2015
Shareholders' Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 10 - SHAREHOLDERS’ EQUITY Series A 8% Convertible Preferred Stock On May 30, 2014, the Company consummated a private placement of 7,500 shares of Series A 8% Convertible Preferred Stock (the “Series A Preferred Stock”), together with warrants to purchase up to 1,556,017 shares of Common Stock, at an exercise price of $2.89 per share, for aggregate gross proceeds of $7.50 million. The Series A Preferred Stock bears an 8% dividend per annum, payable quarterly. The Series A Preferred Stock is convertible into 3,112,033 shares of Common Stock at a conversion price of $2.41 per share, and has a liquidation preference to any junior securities. As of September 30, 2015 and December 31, 2014, the Company has accrued a cumulative dividend of $450,000 and $150,000, respectively on the Series A Preferred Stock. Additionally, the Company is subject to an 18% late fee on the outstanding dividend amount owed until the balance is paid. 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”). All 2,000 shares of Redeemable Preferred were issued pursuant to the execution of the settlement agreement with Hexagon, LLC (“Hexagon”) in September 2014. The Redeemable Preferred has the same par value and stated value characteristics as the Series A Preferred Stock, except the 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 are not 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 reserve thresholds. These thresholds include the Company’s annualized gross production average for 90 consecutive days at 2,500 BOE per day or higher or the Company’s PV-10 value of its producing developed properties filed with the Securities and Exchange Commission exceeds $50 million. On September 30, 2015 and December 31, 2014, the Company revalued the Conditionally Redeemable 6% Preferred Stock using the Monte Carlo pricing for a total value of $1.56 million, which adjusted the change in fair value valuation of the derivative down by $8,000 and $128,000 for the three and nine months ended September 30, 2015, respectively. On December 31, 2014, the Conditionally Redeemable Preferred Stock was valued at approximately $1.69 million. As of September 30, 2015 and December 31, 2014, the Company has accrued a cumulative dividend of $90,000 and $30,000 respectively, on the Redeemable Preferred. Consulting Agreements In the ordinary course of business, the Company enters into services agreements for various services 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, public relations, investment banking and any other consulting or advisory services including the one entered into with Bristol, discussed above. Often times, these agreements provide for an equity compensation component which has been paid in Common Stock, stock options and warrants or a combination thereof. During the nine months ended September 30, 2015, the Company issued a total 600,000 warrants that were paid to consultants, as discussed below. The Company did not issue any warrants to consultants during the three months ended September 30, 2015. Warrants Below is a summary of warrant activity for the nine months ended September 30, 2015: Warrants Weighted- Average Exercise Price Outstanding at January 1, 2015 17,007,065 3.59 Warrants issued to Heartland Bank 225,000 4.53 Warrants issued to consultants 600,000 4.68 Forfeited or expired (4,848,912 ) 6.00 Outstanding at September 30, 2015 12,983,153 $ 2.56 The aggregate intrinsic value associated with outstanding warrants was zero at September 30, 2015 as the strike price of all warrants exceeded the market price for Common Stock, based on the Company’s closing Common Stock price of $0.61 on September 30, 2015. The weighted average remaining contract life as of September 30, 2015 was 2.86 years. During the nine months ended September 30, 2015 and 2014, the Company issued warrants to purchase Common Stock to consultants for professional services. The warrants were valued using a Black Sholes model and the Company expensed approximately $425,000 for the nine months ended September 30, 2015. During the three and nine months ended September 30, 2014, the Company expensed $74,000 and $717,000, respectively, representing the fair value of warrants issued to consultants for services rendered. As of September 30, 2015, there was no unearned compensation related to warrants issued as of that date.

Share Based and Other Compensat

Share Based and Other Compensation	9 Months Ended
	Sep. 30, 2015
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 stock options and/or restricted stock grants and may be awarded additional grants under the terms of the EIP in the future. The value of employee services received in exchange for an award of equity instruments is 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, 2015, the Company granted 634,188 shares of restricted Common Stock and 4,800,000 stock options, to employees, directors and consultants. Also during the nine months ended September 30, 2015, certain of the Company’s employees, directors and consultants forfeited 100,000 shares of restricted Common Stock and 2,233,333 stock options previously issued in connection with various terminations. As a result, as of September 30, 2015, the Company had 1,880,667 restricted shares and 6,150,000 options to purchase common shares outstanding to employees and directors. Options issued to employees vest in equal installments over specified time periods during the service period or upon achievement of certain performance based operating thresholds. The Company requires that employees and directors pay the tax on equity grants in order to issue the shares and there is currently no cashless exercise option. Therefore, as of September 30, 2015, 1,479,208 shares have been granted, but are not issued. Compensation Costs Three Months Ended September 30, 2015** Three Months Ended As of September 30, 2014 Stock Options Restricted Stock Total Stock Options Restricted Stock Total Stock-based compensation expensed* $ 268,000 $ 65,000 $ 333,000 $ 261,000 $ (60,000 ) $ 201,000 Nine Months Ended September 30, 2015** Nine Months Ended As of September 30, 2014 (Dollar amounts in thousands) Stock Options Restricted Stock Total Stock Options Restricted Stock Total Stock-based compensation expensed* $ 1,991,000 $ 406,000 $ 2,397,000 $ 433,000 $ 307,000 $ 740,000 * Only includes directors and employees for which the options vest over time instead of based upon performance criteria for which the performance criteria have not been met as of September 30, 2015. ** As of September 30, 2015, the Company has unamortized stock-based compensation costs for stock options of $2.1 million and $394,000 for restricted stock. The Company has a weighted average amortization period remaining for stock options of 4.49 years and 1.25 years for restricted stock. Restricted Stock A summary of restricted stock grant activity for the nine months ended September 30, 2015 is presented below: Number of Shares Weighted Average Grant Date Price Outstanding at January 1, 2015 1,630,667 1.27 Granted 634,188 1.35 Vested and issued (284,188 ) 1.35 Forfeited (100,000 ) 2.45 Outstanding at September 30, 2015 1,880,667 1.25 As of September 30, 2015, total unrecognized compensation costs related to 411,667 unvested restricted shares of Common Stock issued to directors and employees was approximately $394,000, which is expected to be recognized over a weighted-average remaining service period of 1.25 years. During the nine months ended September 30, 2015 and 2014, the Company granted restricted stock for professional services. The restricted stock granted was valued at the fair value at the date of grant and vested over the contract life. During the three and nine months ended September 30, 2015 the Company expensed $65,000 and $406,000, respectively, relating to the contracts. During the three and nine months ended September 30, 2014, the Company expensed $(60,000) and $307,000, respectively. During the three and nine months ended September 30, 2015, the Company expensed $465,000, and $1.83 million, respectively for non-employee director compensation. No cash compensation has been paid to the directors in 2015. On April 20, 2015, the Company valued the 200,000 stock options issued to three of the non-employee directors using the following variables: (i) 200,000 options issued per director (600,000 options); (ii) stock price of $1.65; (iii) exercise price of $ 1.65; (iv) expected life of 7 years; (v) volatility of 99.44%; (vi) risk free rate of 1.65% for a total value of $271,000 for each grant (total of $813,000 for all three directors) which the amount is amortized over the vesting period. On April 20, 2015, the Company valued the 250,000 stock options issued to the three non-employee directors using the following variables: (i) 250,000 options issued for per director (750,000 options); (ii) stock price of $1.65; (iii) exercise price of $ 1.65; (iv) expected life of 5 years; (v) volatility of 99.44%; (vi) risk free rate of 1.65% for a total value of $306,000 for each grant (total of $918,000 for all three directors) which amount is expensed immediately. Stock Options A summary of stock options activity for the nine months ended September 30, 2015 is presented below: Stock Options Outstanding and Exercisable Number Weighted Number Weighted Outstanding at January 1, 2015 3,583,333 $ 2.24 - - Granted 4,800,000 $ 1.26 - - Exercised - - Forfeited or cancelled (2,233,333 ) $ (2.39 ) - - Outstanding at September 30, 2015 6,150,000 $ 1.26 2,672,223 4.49 As of September 30, 2015, total unrecognized compensation costs relating to the outstanding options was $2.09 million, which is expected to be recognized over the remaining vesting period of approximately 2.02 years. During the nine months ended September 30, 2015 and 2014, the Company issued options to purchase Common Stock to certain of its officers and directors. The options are valued using a Black Scholes model and amortized over the life of the option. During the three months ended September 30, 2015 and 2014 the Company amortized $268,000 and $257,000, respectively and during the nine months ended September 30, 2015 and 2014, the Company amortized $1.99 million and $433,000, respectively, relating to options outstanding. As of September 30, 2015, 3,477,777 options were exercisable and 2,672,223 options have yet to vest in accordance with employee and board of director compensation agreements.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 12 – SUBSEQUENT EVENTS Nuno Brandolini On November 10, the Company received $150,000 from Nuno Brandolini as an unsecured short-term funding source (the “Brandolini Agreement”). The Brandolini Agreement carries a 12% interest rate and has generated minimal interest. The amount will be repaid within one year. Mr. Brandolini is currently a member of the Company’s board of directors. The Brandolini Agreement has been recorded as a short-term loan.

Summary of Significant Accoun19

Summary of Significant Accounting Policies and Estimates (Policies)	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies and Estimates [Abstract]
Basis of Presentation	Basis of Presentation The condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial statements and with Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission. Accordingly, the financial statements do not contain all information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of September 30, 2015 and the results of operations and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the operating results for the full fiscal year for any future period. These condensed financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Company’s accounting policies are described in the Notes to Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2014, and updated, as necessary, in this Quarterly Report on Form 10-Q.
Use of Estimates	Use of Estimates The preparation of 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. Although actual results may differ from these estimates under different assumptions or conditions, the Company believes that its estimates are reasonable. 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, including derivative liabilities, depreciation and accretion, income taxes and contingencies.
Oil and Gas Producing Activities	Oil and Gas Producing Activities The Company follows the full cost method of accounting for oil and 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 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 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 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 gas property costs less accumulated depletion and net of deferred income taxes may not exceed an amount equal to the sum of the present value, discounted at 10%, of estimated future net revenues from proved oil and gas reserves and 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. During the three and nine months ended September 30, 2015, the Company recorded an $18.5 million and a $24.4 million impairment, respectively. No impairment was recorded in 2014. The present value of estimated future net cash flows was computed by applying a flat oil price to forecast revenues from estimated future production of proved oil and 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 connotes wells that are currently in the process of being drilled or completed or otherwise under evaluation as to their potential to produce oil and gas reserves in commercial quantities. Such wells continue to be classified as 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 Rule 4-10 of Regulation S-X of the Securities Exchange Act of 1934, as amended.
Accrued Expense	Accrued Expense Accrued liabilities are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide service to other entities in the future as a result of past transactions or events. Below is the break-out of the accrued expense account as of September 30, 2015 and December 31, 2014. September 30, December 31, Fair-value of executive compensation and other accrued payroll $ 786,000 $ 40,000 Accrued convertible debenture interest 848,000 3,043 Board of director fees 170,347 - Accrued professional fees 381,000 78,000 Production taxes 501,300 504,000 Other payables 520,157 623,952 $ 3,206,804 $ 1,248,995
Asset Retirement Obligations	Asset Retirement Obligations The Company's activities are subject to various laws and regulations, including legal and contractual obligations to reclaim, remediate, or otherwise restore properties at the time the asset is permanently removed from service. Calculation of an asset retirement obligation ("ARO") requires estimates about several future events, including the life of the asset, the costs to remove the asset from service, and inflation factors. The ARO is initially estimated based upon discounted cash flows over the life of the asset and is accreted to full value over time using the Company's credit adjusted risk-free interest rate. Estimates are periodically reviewed and adjusted to reflect changes. The present value of a liability for the ARO is initially recorded when it is incurred if a reasonable estimate of fair value can be made. This is typically done when a well is completed or an asset is placed in service. When the ARO is initially recorded, the Company capitalizes the cost (the asset retirement cost or "ARC") by increasing the carrying value of the related asset. ARCs related to wells are capitalized to the full cost pool and are subject to depletion. Over time, the liability increases for the change in its present value (accretion of ARO), while the net capitalized cost decreases over the useful life of the asset as depletion expense is recognized. In addition, ARCs are included in the ceiling test calculation for valuing the full cost pool. The fair value of the Company’s asset retirement obligation liability is calculated at the point of inception by taking into account (i) the cost of abandoning oil and gas wells, which is based on the Company’s and/or industry’s historical experience for similar work, or estimates from independent third-parties; (ii) the economic lives of its properties, which are based on estimates from reserve engineers; (iii) the inflation rate; and (iv) the credit adjusted risk-free rate, which takes into account the Company’s credit risk and the time value of money. Given the unobservable nature of the inputs, the initial measurement of the asset retirement obligation liability is deemed to use Level 3 inputs. The Company has accreted $3,000 and $7,000 for the three and nine months ended September 30, 2015, respectively. During the three and nine months ended September 30, 2014, the Company accreted $17,000 and $61,000, respectively.
Revenue Recognition	Revenue Recognition The Company derives revenue primarily from the sale of produced natural gas and crude oil. The Company reports revenue as the gross amount received before taking into account production taxes and transportation costs, which are reported as separate expenses and are included in oil and gas production expense in the accompanying consolidated statements of operations. Revenue is recorded in the month the Company’s production is delivered to the purchaser, but payment is generally received between 30 and 90 days after the date of production. No revenue is recognized unless it is determined that title to the product has transferred to the purchaser. At the end of each month, the Company estimates the amount of production delivered to the purchaser and the price the Company will receive. The Company uses its knowledge of its properties, its historical performance, existing contracts, NYMEX and local spot market prices, quality and transportation differentials, and other factors as the basis for these estimates.
Impairment of Long-lived Assets	Impairment of Long-lived Assets The Company accounts for long-lived assets (other than oil and gas properties) at cost. Other long-lived assets consist principally of property and equipment and identifiable intangible assets with finite useful lives (subject to amortization, depletion, and depreciation). The Company may impair these assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. Recoverability is measured by comparing the carrying amount of an asset to the expected undiscounted future net cash flows generated by the asset. If it is determined that the asset may not be recoverable, and if the carrying amount of an asset exceeds its estimated fair value, an impairment charge is recognized to the extent of the difference.
Net Loss per Common Share	Net Loss per Common Share Earnings (losses) per share are computed based on the weighted average number of common shares outstanding during the period presented. Diluted earnings 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 warrants and options, are excluded from the calculation when their effect would be anti-dilutive. As of September 30, 2015 and 2014 shares underlying options, warrants, preferred stock and 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, 2015 and 2014: September 30, 2015 September 30, 2014 Stock Options 6,150,000 3,600,000 Unvested Restricted Stock (employees/directors) 1,880,667 1,914,001 Series A Preferred Stock 3,112,033 3,112,033 Warrants 12,983,153 17,749,281 Convertible Debentures 3,364,016 3,364,016 27,489,869 29,739,331
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Various accounting standards updates are issued, most of which represented technical corrections to the accounting literature or were applicable to specific industries, are not expected to have a material impact on the Company’s condensed financial position and, results of operations.

Summary of Significant Accoun20

Summary of Significant Accounting Policies and Estimates (Tables)	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies and Estimates [Abstract]
Schedule of accrued expense	September 30, December 31, Fair-value of executive compensation and other accrued payroll $ 786,000 $ 40,000 Accrued convertible debenture interest 848,000 3,043 Board of director fees 170,347 - Accrued professional fees 381,000 78,000 Production taxes 501,300 504,000 Other payables 520,157 623,952 $ 3,206,804 $ 1,248,995
Schedule of common stock equivalents	September 30, 2015 September 30, 2014 Stock Options 6,150,000 3,600,000 Unvested Restricted Stock (employees/directors) 1,880,667 1,914,001 Series A Preferred Stock 3,112,033 3,112,033 Warrants 12,983,153 17,749,281 Convertible Debentures 3,364,016 3,364,016 27,489,869 29,739,331

Fair Value of Financial Instr21

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value of Financial Instruments [Abstract]
Summary of fair value of assets and liabilities measured at fair value	Level 1 Level 2 Level 3 Total Liability Executive employment agreements $ - $ - $ (337,000 ) $ (337,000 ) Warrant liabilities - - (364,000 ) (364,000 ) Convertible debenture conversion derivative liability - - (647,000 ) (647,000 ) Total liability, at fair value $ - $ - $ (1,348,000 ) $ (1,348,000 ) Level 1 Level 2 Level 3 Total Liability Executive employment agreement $ - $ - $ (40,000 ) $ (40,000 ) Warrant liabilities - - (394,000 ) (394,000 ) Convertible debenture conversion derivative liability - - (1,249,000 ) (1,249,000 ) Total liability, at fair value $ - $ - $ (1,683,000 ) $ (1,683,000 )
Summary of changes in fair value of Level 3 financial assets and liabilities	Conversion derivative liability Bristol/ Incentive bonus Total Balance at January 1, 2015 $ 1,249,000 $ 394,000 $ 40,000 $ 1,683,000 Additional liability - 56,000 149,000 205,000 Change in fair value of liability (602,000 ) (86,000 ) 148,000 (540,000 ) Balance at September 30, 2015 $ 647,000 $ 364,000 $ 337,000 $ 1,348,000

Loan Agreements (Tables)

Loan Agreements (Tables)	9 Months Ended
	Sep. 30, 2015
Loan Agreements [Abstract]
Schedule of debt	As of Heartland Term Loan (due January 8, 2018) $ 2,750,000 Unamortized debt discount (42,636 ) Heartland Term Loan, net 2,707,364 Less: amount due within one year (2,707,364 ) Heartland Term Loan due after one year $ - 8% Convertible Debentures, net (due 2018; 8% weighted average interest rate) $ 6,846,000

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2015
Shareholders' Equity [Abstract]
Summary of warrant activity	Warrants Weighted- Average Exercise Price Outstanding at January 1, 2015 17,007,065 3.59 Warrants issued to Heartland Bank 225,000 4.53 Warrants issued to consultants 600,000 4.68 Forfeited or expired (4,848,912 ) 6.00 Outstanding at September 30, 2015 12,983,153 $ 2.56

Share Based and Other Compens24

Share Based and Other Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Share Based and Other Compensation [Abstract]
Summary of compensation costs activity	Three Months Ended September 30, 2015** Three Months Ended As of September 30, 2014 Stock Options Restricted Stock Total Stock Options Restricted Stock Total Stock-based compensation expensed* $ 268,000 $ 65,000 $ 333,000 $ 261,000 $ (60,000 ) $ 201,000 Nine Months Ended September 30, 2015** Nine Months Ended As of September 30, 2014 (Dollar amounts in thousands) Stock Options Restricted Stock Total Stock Options Restricted Stock Total Stock-based compensation expensed* $ 1,991,000 $ 406,000 $ 2,397,000 $ 433,000 $ 307,000 $ 740,000 * Only includes directors and employees for which the options vest over time instead of based upon performance criteria for which the performance criteria have not been met as of September 30, 2015. ** As of September 30, 2015, the Company has unamortized stock-based compensation costs for stock options of $2.1 million and $394,000 for restricted stock. The Company has a weighted average amortization period remaining for stock options of 4.49 years and 1.25 years for restricted stock.
Summary of restricted stock grant activity	Number of Shares Weighted Average Grant Date Price Outstanding at January 1, 2015 1,630,667 1.27 Granted 634,188 1.35 Vested and issued (284,188 ) 1.35 Forfeited (100,000 ) 2.45 Outstanding at September 30, 2015 1,880,667 1.25
Summary of stock options activity	Stock Options Outstanding and Exercisable Number Weighted Number Weighted Outstanding at January 1, 2015 3,583,333 $ 2.24 - - Granted 4,800,000 $ 1.26 - - Exercised - - Forfeited or cancelled (2,233,333 ) $ (2.39 ) - - Outstanding at September 30, 2015 6,150,000 $ 1.26 2,672,223 4.49

Organization (Details)

Organization (Details)	Sep. 30, 2015a
Organization (Textual)
Area of land for oil and gas exploration and production (In acres)	18,200

Liquidity (Details)

Liquidity (Details)	Nov. 01, 2015Boe	Sep. 30, 2015USD ($)	Nov. 20, 2015USD ($)	Jan. 08, 2015USD ($)
Credit Agreement [Member]
Liquidity (Textual)
Debt amount, Description		Specifically, the ratio requires that the Company shall maintain at all times, as determined on June 30 of each year, a ratio of (i) the aggregate amount of all Debt (as defined in the Credit Agreement), to (ii) EBITDAX of not less than 4.5:1, 3.5:1 and 2.5:1 for the periods ending June 30, 2015, 2016, and 2017 and thereafter, respectively.
Debt due date		Oct. 1, 2015
Debt instrument principal amount				$ 3,000,000
Aggregate interest amount		$ 89,000
Additional subordinated unsecured debt		650,002
Total term loan		2,750,000
Total debentures		6,850,000
Liquidity Plan [Member]
Liquidity (Textual)
Total debentures		6,850,000
Negative working capital		15,060,000
Cash		52,000
Outstanding debt		$ 2,750,000
Liquidity Plan [Member] | Subsequent Event [Member]
Liquidity (Textual)
Cash			$ 20,000
Number of barrels | Boe	20
8% Senior Secured Convertible Debentures [Member]
Liquidity (Textual)
Debt interest rate		8.00%
Outstanding debt		$ 6,850,000

Summary of Significant Accoun27

Summary of Significant Accounting Policies and Estimates (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Summary of Significant Accounting Policies and Estimates [Abstract]
Fair-value of executive compensation and other accrued payroll	$ 786,000	$ 40,000
Accrued convertible debenture interest	848,000	$ 3,043
Board of director fees	170,347
Accrued professional fees	381,000	$ 78,000
Production taxes	501,300	504,000
Other payables	520,157	623,952
Total accrued expenses	$ 3,206,804	$ 1,248,995

Summary of Significant Accoun28

Summary of Significant Accounting Policies and Estimates (Details 1) - shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	27,489,869	29,739,331
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	6,150,000	3,600,000
Unvested Restricted Stock (employees/directors) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	1,880,667	1,914,001
Series A Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	3,112,033	3,112,033
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	12,983,153	17,749,281
Convertible Debentures [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	3,364,016	3,364,016

Summary of Significant Accoun29

Summary of Significant Accounting Policies and Estimates (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Summary of Significant Accounting Policies and Estimates (Textual)
Percentage of sale of proved reserves			25% or more.
Percentage of discounted estimated future net revenues			10.00%
Impairment of oil and gas properties	$ 18,500,000		$ 24,400,000
Accretion expense	$ 3,000	$ 17,000	$ 7,000	$ 61,000

Oil and Gas Properties & Oil 30

Oil and Gas Properties & Oil and Gas Properties Acquisitions and Divestitures (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Oil and Gas Properties & Oil and Gas Properties Acquisitions and Divestitures (Textual)
Impairment of oil and gas properties	$ 18,500,000		$ 24,400,000
Depreciation, depletion and amortization for proved properties	46,000	$ 229,000	461,000	$ 1,130,000
Capitalized and accrued costs of wells	$ 5,200,000		$ 5,200,000

Derivatives (Details)

Derivatives (Details)	9 Months Ended
	Sep. 30, 2015USD ($)Barrel	Sep. 30, 2014USD ($)
Derivatives (Textual)
Realized gain on settlement of commodity swaps | $
Realized gain on oil price | $		$ 11,000
Through January 31, 2014 [Member]
Derivatives (Textual)
Quantity of commodity swap oil per day, barrels	100
Commodity swap strike price, per barrel	99.25

Fair Value of Financial Instr32

Fair Value of Financial Instruments (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Liability
Executive employment agreements	$ (337,000)	$ (40,000)
Warrant liabilities	(364,000)	(394,000)
Convertible debenture conversion derivative liability	(647,000)	(1,249,000)
Total liability, at fair value	$ (1,348,000)	$ (1,683,000)
Level 1 [Member]
Liability
Executive employment agreements
Warrant liabilities
Convertible debenture conversion derivative liability
Total liability, at fair value
Level 2 [Member]
Liability
Executive employment agreements
Warrant liabilities
Convertible debenture conversion derivative liability
Total liability, at fair value
Level 3 [Member]
Liability
Executive employment agreements	$ (337,000)	$ (40,000)
Warrant liabilities	(364,000)	(394,000)
Convertible debenture conversion derivative liability	(647,000)	(1,249,000)
Total liability, at fair value	$ (1,348,000)	$ (1,683,000)

Fair Value of Financial Instr33

Fair Value of Financial Instruments (Details 1)	9 Months Ended
	Sep. 30, 2015USD ($)
Summary of changes in fair value of Level 3 financial assets and liabilities
Balance at January 1, 2015	$ 1,683,000
Additional liability	205,000
Change in fair value of liability	(540,000)
Balance at September 30, 2015	1,348,000
Conversion derivative liability [Member]
Summary of changes in fair value of Level 3 financial assets and liabilities
Balance at January 1, 2015	$ 1,249,000
Additional liability
Change in fair value of liability	$ (602,000)
Balance at September 30, 2015	647,000
Bristol/Heartland warrant liability[Member]
Summary of changes in fair value of Level 3 financial assets and liabilities
Balance at January 1, 2015	394,000
Additional liability	56,000
Change in fair value of liability	(86,000)
Balance at September 30, 2015	364,000
Incentive bonus [Member]
Summary of changes in fair value of Level 3 financial assets and liabilities
Balance at January 1, 2015	40,000
Additional liability	149,000
Change in fair value of liability	148,000
Balance at September 30, 2015	$ 337,000

Fair Value of Financial Instr34

Fair Value of Financial Instruments (Details Textual) - USD ($)	Mar. 06, 2015	Jan. 08, 2015	Sep. 02, 2014	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Fair Value of Financial Instruments (Textual)
Share price				$ 0.61	$ 0.61
Accrued compensation				$ 60,000	$ 60,000
Convertible Debt [Member]
Fair Value of Financial Instruments (Textual)
Beneficial conversion feature					$ 647,000	$ 1,250,000
Share price				$ 0.61	$ 0.61	$ 0.72
Exercise price				$ 2	$ 2	$ 2
Volatility rate					100.00%	70.00%
Fair value of derivative				$ 876,000	$ 602,000
Convertible debentures conversion shares					3,423,233
Conversion price				$ 2	$ 2	$ 2
Convertible debentures conversion shares, value					$ 6,850,000
Present value of conversion feature, Description					Present value of conversion feature of $0.19 per convertible share.	Present value of conversion feature of $0.47 per convertible share.
Consulting Agreement [Member]
Fair Value of Financial Instruments (Textual)
Share price				0.61	$ 0.61	$ 0.72
Exercise price				$ 2	$ 2	$ 2
Expected life					3 years 10 months 24 days	4 years 8 months 1 day
Volatility rate					100.00%	96.78%
Risk free rate					1.10%	1.10%
Fair value of derivative				$ 289,000	$ 95,000	$ 571,000
Total value of options/warrants					$ 299,000	$ 394,000
Warrants to purchase common stock					1,000,000	1,000,000
Options to purchase common shares					1,000,000	1,000,000
Credit Agreement [Member]
Fair Value of Financial Instruments (Textual)
Exercise price of warrant			$ 2
Share price		$ 0.72		$ 0.61	$ 0.61
Exercise price		$ 2.5		$ 2.50	$ 2.50
Expected life		5 years			4 years 3 months 18 days
Volatility rate		97.10%			100.00%
Risk free rate		1.50%			1.20%
Fair value of derivative				$ 64,000	$ (9,000)
Warrants/options issued		1,000,000			225,000
Total value of options/warrants		$ 56,000			$ 65,000
Secured term loan		3,000,000
Maximum principal amount		$ 50,000,000
Warrants to purchase common stock			1,000,000
Options to purchase common shares			1,000,000
Description of exercise price		115% of the 10-day volume weighted average price (“VWAP”) prior to closing of each advance.
Executive Compensation Agreements [Member]
Fair Value of Financial Instruments (Textual)
Fair value of derivative				106,000	337,000
Abraham Mirman [Member]
Fair Value of Financial Instruments (Textual)
Description of employment agreement						Cash bonus payment to Mr. Mirman of up to 3.0 times his base salary.
Accrued compensation						$ 40,000
New incentive bonus liability				225,000	225,000
Bonus liability				131,000	131,000
Kevin Nanke [Member]
Fair Value of Financial Instruments (Textual)
Performance Fees	$ 100,000
New incentive bonus liability				181,000	181,000
Bonus liability				106,000	106,000
Ariella Fuchs [Member]
Fair Value of Financial Instruments (Textual)
New incentive bonus liability				173,000	173,000
Bonus liability				$ 100,000	$ 100,000

Loan Agreements (Details)

Loan Agreements (Details)	Sep. 30, 2015USD ($)
Convertible Debentures [Member]
Debt Instrument [Line Items]
Total	$ 6,846,000
Heartland Term Loan (due January 8, 2018) [Member]
Debt Instrument [Line Items]
Total	2,750,000
Unamortized debt discount	(42,636)
Heartland Term Loan, net	2,707,364
Less: amount due within one year	$ (2,707,364)
Heartland Term Loan due after one year

Loan Agreements (Details Textua

Loan Agreements (Details Textual) - USD ($)	Jan. 08, 2015	Oct. 31, 2013	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Loan Agreements (Textual)
Interest expense			$ 437,114	$ 1,130,727	$ 1,212,248	$ 4,477,277
Stock price			$ 0.61		$ 0.61
Non cash interest expense			$ 347,000	$ 860,000	$ 944,000	2,300,000
Inducement expense						$ 6,661,275
Debentures totaling							$ 6,840,076
Convertible Debentures [Member]
Loan Agreements (Textual)
Interest rate on debentures			8.00%		8.00%
Debentures issued		$ 15,600,000
Conversion price per share			$ 2		$ 2		$ 2
Conversion of debt, Amount					$ 6,850,000		$ 6,840,000
Credit Agreement [Member]
Loan Agreements (Textual)
Maximum principal amount	$ 3,000,000
Warrants exercise price, per share	$ 2.50
Debt discount	$ 56,000
Accretion of debt discount			$ 5,000		$ 14,000
Proceeds from lines of credit	1,000,000
Increase in principal amount	$ 50,000,000
Warrants issued	75,000
Warrants to purchase common stock	225,000
Nonrefundable commitment fee	$ 75,000
Term of warrants	5 years

Commitments and Contingencies (

Commitments and Contingencies (Details)	Apr. 10, 2015USD ($)	Jan. 09, 2015USD ($)	Sep. 30, 2015	May. 31, 2015Well
Commitments and Contingencies (Textual)
Claim for breach of contract | $	$ 625,572.10	$ 6,981,302.60
Settlement agreement			(i) the balance of its share of the costs and expenses of drilling, completion and operating costs of the subject wells, (ii) interest due on that amount and (iii) a penalty fee of $250,000. The Company will have its full rights restored in the subject wells and return to having all rights and obligations under the JOA. This includes the right to participate in any future proposed wells at the Company's full interest under the JOA as if the Company had participated and paid its proportionate share of costs of the subject wells prior to the notices of default sent to the Company by the Operator. Pursuant to the JOA, the Company will regain an approximately 50% working interest in each of two Wattenberg horizontal wells (1 Niobrara and 1 Codell), an approximately 33% working interest in a third well (Niobrara), and an approximately 50% working interest in the remaining leasehold.
Number of economically producing wells				3

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	Nov. 10, 2015	Aug. 14, 2015	May. 27, 2015	Jun. 06, 2014	Mar. 20, 2014	Jun. 22, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Related Party Transactions (Textual)
Related party expense							$ 75,000	$ 50,000	$ 225,000	$ 150,000
Ronald D. Ormand [Member]
Related Party Transactions (Textual)
Management fee					$ 25,000
Accrued fees			$ 150,000
Debt conversion, converted instrument, shares issued			75,000
General McPeak [Member]
Related Party Transactions (Textual)
Cash received from related party						$ 250,002
Interest rate						12.00%
TR Winston [Member]
Related Party Transactions (Textual)
Ownership interest in common stock							5.00%		5.00%
Debt interest rate				8.00%
Proceeds from preferred stock				$ 7,500,000
Additional preferred stock purchase by third parties value				$ 15,000,000
Maturity period of purchase transaction				90 days
Abraham Mirman [Member]
Related Party Transactions (Textual)
Cash received from related party		$ 250,000
Interest rate		12.00%
Nuno Brandolini [Member] | Subsequent Event [Member]
Related Party Transactions (Textual)
Cash received from related party	$ 150,000
Interest rate	12.00%

Shareholders' Equity (Details)

Shareholders' Equity (Details) - Warrant [Member]	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Summary of warrant activity
Outstanding Beginning	17,007,065
Forfeited or expired	(4,848,912)
Outstanding Ending	12,983,153
Weighted Average Exercise Price, Outstanding Beginning | $ / shares	$ 3.59
Weighted Average Exercise Price, Exercised, forfeited, or expired | $ / shares	6
Weighted Average Exercise Price, Outstanding Ending | $ / shares	$ 2.56
Heartland Bank [Member]
Summary of warrant activity
Outstanding Beginning	17,007,065
Warrants issued	225,000
Outstanding Ending	15,685,331
Weighted Average Exercise Price, Issued	4.53
Consultants [Member]
Summary of warrant activity
Warrants issued	600,000
Weighted Average Exercise Price, Issued	4.68

Shareholders' Equity (Details T

Shareholders' Equity (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		9 Months Ended
	Aug. 31, 2014	May. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Series A Preferred Stock, shares issued			7,500		7,500		7,500
Preferred Stock, Shares Authorized			10,000,000		10,000,000		10,000,000
Fair value of warrants					$ (86,238)
Share price			$ 0.61		$ 0.61
Weighted average remaining contract life					2 years 10 months 10 days
Warrants issued, shares					600,000
Warrants expenses				$ 74,000	$ 425,000	$ 717,000
Series A 8% Convertible Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Series A Preferred Stock, shares issued		7,500
Debt Instrument interest rate, Percentage		8.00%
Percentage on dividends payable		8.00%			18.00%
Convertible common stock		3,112,033
Conversion price		$ 2.41
Cumulative dividend			$ 450,000		$ 450,000		$ 150,000
Purchase of common stock warrant		1,556,017
Gross proceeds from preferred stock		$ 7,500,000
Conditionally Redeemable 6% Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage on dividends payable	6.00%
Cumulative dividend			90,000		$ 90,000		30,000
Preferred Stock, Shares Authorized	2,000
Convertible preferred stock, Description					These thresholds include the Company's annualized gross production average for 90 consecutive days at 2,500 BOE per day or higher or the Company's PV-10 value of its producing developed properties filed with the Securities and Exchange Commission exceeds $50 million.
Fair value of warrants			8,000		$ 128,000
Outstanding redeemable preferred stock value			$ 1,560,000		$ 1,560,000		$ 1,690,000

Share Based and Other Compens41

Share Based and Other Compensation (Details) - USD ($)		3 Months Ended			9 Months Ended
		Sep. 30, 2015	[1]	Sep. 30, 2014	Sep. 30, 2015	[1]	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expensed	[2]	$ 333,000		$ 201,000	$ 2,397,000		$ 740,000
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expensed	[2]	268,000		261,000	1,991,000		433,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expensed	[2]	$ 65,000		$ (60,000)	$ 406,000		$ 307,000
[1]	As of September 30, 2015, the Company has unamortized stock-based compensation costs for stock options of $2.1 million and $394,000 for restricted stock. The Company has a weighted average amortization period remaining for stock options of 4.49 years and 1.25 years for restricted stock.
[2]	Only includes directors and employees for which the options vest over time instead of based upon performance criteria for which the performance criteria have not been met as of September 30, 2015.

Share Based and Other Compens42

Share Based and Other Compensation (Details 1) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Summary of restricted stock grant activity
Outstanding Beginning | shares	1,630,667
Granted | shares	634,188
Vested and issued | shares	(284,188)
Forfeited | shares	(100,000)
Outstanding Ending | shares	1,880,667
Weighted Average Grant Date Price
Weighted Average Exercise Price, Outstanding Beginning	$ 1.27
Granted	1.35
Vested and issued	1.35
Forfeited	2.45
Weighted Average Exercise Price, Outstanding Ending	$ 1.25

Share Based and Other Compens43

Share Based and Other Compensation (Details 2) - Stock Option [Member]	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Number of Options
Outstanding Beginning	3,583,333
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	4,800,000
Exercised
Forfeited or cancelled	(2,233,333)
Outstanding Ending	6,150,000
Weighte Average Exercise Price
Weighted Average Exercise Price, Outstanding Beginning | $ / shares	$ 2.24
Granted | $ / shares	$ 1.26
Exercised | $ / shares
Forfeited or cancelled | $ / shares	$ (2.39)
Weighted Average Exercise Price, Outstanding Ending | $ / shares	$ 1.26
Stock Options Outstanding and Exercisable Number of Options Vested/ Exercisable
Outstanding
Granted
Exercised
Forfeited or cancelled
Outstanding	2,672,223
Stock Options Outstanding and Exercisable Weighted Average Remaining Contractual Life (Years)
Forfeited or cancelled	4 years 5 months 27 days

Share Based and Other Compens44

Share Based and Other Compensation (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Apr. 20, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	May. 27, 2015	Nov. 13, 2013	Jun. 27, 2013
Share Based and Other Compensation (Textual)
Recognized over a weighted-average remaining service period				2 years 10 months 10 days
Share price		$ 0.61		$ 0.61
Total fair value				$ 394,000		$ 394,000
Share-based Compensation				$ 3,048,974	$ 2,667,213
Unrecognized non cash compensation, shares				411,667
Board of Directors Chairman [Member]
Share Based and Other Compensation (Textual)
Share price	$ 1.65
Risk free rate	1.65%
Volatility rate	99.44%
Exercise price	$ 1.65
Share-based compensation arrangement outstanding	7 years
Total value of options/warrants	$ 271,000
Share-based Compensation		$ 465,000		$ 1,830,000
Unrecognized non cash compensation, shares	200,000
Number of options vested shares				2,672,223
Director [Member]
Share Based and Other Compensation (Textual)
Share price	$ 1.65						$ 1.56
Risk free rate	1.65%
Volatility rate	99.44%
Total fair value	$ 306,000
Exercise price	$ 1.65
Share-based compensation arrangement outstanding	5 years
Unrecognized non cash compensation, shares	250,000
Equity Incentive Plan [Member] | Maximum [Member]
Share Based and Other Compensation (Textual)
Increase number of common shares available for grant under the EIP		3,000,000		3,000,000				6,800,000	1,800,000
Equity Incentive Plan [Member] | Minimum [Member]
Share Based and Other Compensation (Textual)
Increase number of common shares available for grant under the EIP		1,000,000		1,000,000				1,800,000	900,000
Restricted Stock [Member]
Share Based and Other Compensation (Textual)
Purchase common shares outstanding to employees and directors		1,880,667		1,880,667		1,630,667
Grant of restricted shares to employees, former chief financial officer during the period				634,188
Unrecognized non cash compensation expense		$ 2,100,000		$ 2,100,000
Recognized over a weighted-average remaining service period				1 year 3 months
Share-based Compensation		$ 65,000	$ (60,000)	$ 406,000	307,000
Number of options vested shares				(284,188)
Stock Options [Member]
Share Based and Other Compensation (Textual)
Purchase common shares outstanding to employees and directors		6,150,000		6,150,000		3,583,333
Grant of restricted shares to employees, former chief financial officer during the period				4,800,000
Unrecognized non cash compensation expense		$ 394,000		$ 394,000
Recognized over a weighted-average remaining service period				4 years 5 months 27 days
Stock grants to employees, board members, or consultants				4,800,000
Share-based Compensation		$ 268,000	$ 257,000	$ 1,990,000	$ 433,000
Unrecognized non cash compensation, shares				2,672,223
Options exercisable		3,477,777		3,477,777

Subsequent Events (Details)

Subsequent Events (Details) - Nuno Brandolini [Member] - Subsequent Event [Member]	Nov. 10, 2015USD ($)
Subsequent Events (Textual)
Cash received from related party	$ 150,000
Interest rate	12.00%