Lilis Energy (LLEX) 10-Q 20 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 20, 2016
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	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		31,671,789

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash	$ 29,052	$ 110,022
Restricted cash	10,648	3,777
Accounts receivable (net of allowance of $80,000)	986,057	951,645
Prepaid assets	387,104	75,233
Total current assets	1,412,861	1,140,677
Oil and gas properties (full cost method), at cost:
Evaluated properties	50,096,063	50,096,063
Less accumulated depreciation, depletion, amortization, and impairment	(49,586,309)	(49,573,439)
Oil and gas properties at cost, net	509,754	522,624
Other assets:
Office equipment net of accumulated depreciation of $144,109 and $137,149, respectively.	37,426	44,386
Restricted cash and deposits	2,592,928	2,000,406
Total other assets	2,630,354	2,044,795
Total Assets	4,552,969	3,708,093
Current liabilities:
Dividends accrued on preferred stock	900,000	720,000
Accrued expenses for drilling activity	535,938	535,938
Accounts payable	2,411,403	1,331,963
Accrued expenses	3,247,335	2,955,419
Convertible notes - net of discount	1,424,109	673,739
Convertible notes - related parties, net of discount	1,847,496	1,054,552
Term loan - Heartland, net of discount	2,523,837	2,492,069
Convertible debentures, net of discount	6,846,465	6,846,465
Convertible debentures conversion derivative liability	54,429	5,511
Total current liabilities	19,791,012	16,615,656
Long term liabilities:
Asset retirement obligation	211,008	207,953
Warrant liability	74,452	55,655
Total long-term liabilities	285,460	263,608
Total liabilities	$ 20,462,326	$ 16,879,264
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 $2,150,000 as of March 31,2016	$ 1,496,457	$ 1,172,517
Stockholders' deficiency
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 $8,250,000 as of March 31, 2016.	6,794,000	6,794,000
Common stock, $0.0001 par value: 100,000,000 shares authorized; 29,166,590 shares issued and outstanding as of March 31, 2016 and 27,858,255 issued and outstanding as of December 31, 2015.	2,917	2,786
Additional paid in capital	160,684,200	159,769,184
Accumulated deficit	(184,501,077)	(180,909,658)
Total stockholders' deficiency	(17,019,960)	(14,343,688)
Total Liabilities, Redeemable Preferred Stock and Stockholders' Deficiency	$ 4,552,969	$ 3,708,093

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Balance Sheets [Abstract]
Allowance related to accounts receivable	$ 80,000	$ 80,000
Accumulated depreciation of office equipment	$ 144,109	$ 137,149
Redeemable 6% preferred stock, par value	$ 0.0001
Redeemable 6% preferred stock, shares authorized	7,000
Redeemable 6% preferred stock, shares issued	2,000
Redeemable 6% preferred stock, shares outstanding	2,000
Redeemable 6% preferred stock, liquidation preferences	$ 2,150,000
Series A Preferred stock, par value	$ 0.0001
Series A Preferred Stock, value stated rate	$ 1,000
Preferred Stock, Shares Authorized	10,000,000
Series A Preferred Stock, shares issued	7,500
Series A Preferred Stock, shares outstanding	7,500
Preferred Stock, liquidation preference	$ 8,250,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	29,166,590	27,858,255
Common stock, shares outstanding	29,166,590	27,858,255

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Oil sales	$ 36,236	$ 89,385
Gas sales	3,081	21,943
Operating fees	2,400	6,832
Total revenue	41,717	118,160
Costs and expenses:
Production costs	37,225	20,392
Production taxes	1,928	10,814
General and administrative	1,663,975	2,352,878
Depreciation, depletion, accretion and amortization	$ 22,885	243,580
Impairment of evaluated oil and gas properties		5,462,012
Total costs and expenses	$ 1,726,013	8,089,676
Loss from operations	(1,684,296)	(7,971,516)
Other (expenses) income:
Other (expense) income	(1,464)	8
Change in fair value of convertible debentures conversion derivative liability	(48,918)	(112,091)
Change in fair value of warrant liability	(18,798)	(48,962)
Change in fair value of conditionally redeemable 6% preferred stock	(323,940)	45,886
Interest expense	(1,334,003)	(221,610)
Total other expenses	(1,727,123)	(336,769)
Net loss	(3,411,419)	(8,308,285)
Dividends on redeemable preferred stock	(30,000)	(30,000)
Deemed dividend Series A Convertible Preferred Stock	(150,000)	(150,000)
Net loss attributable to common shareholders	$ (3,591,419)	$ (8,488,285)
Net loss per common share basic and diluted	$ (0.12)	$ (0.29)
Weighted average shares outstanding:
Basic and diluted	29,152,369	28,803,095

Condensed Statements of Operat5

Condensed Statements of Operations (Parenthetical) (Unaudited)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statements Of Operations [Abstract]
Percentage of redeemable preferred stock	6.00%	6.00%

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (3,411,419)	$ (8,308,285)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity instruments issued for services and compensation	368,993	816,628
Amortization of deferred financing cost	27,093	24,413
Change in fair value of executive bonus	(222,508)	58,589
Change in fair value of convertible debentures conversion derivative liability	48,918	112,091
Change in fair value of warrant liability	18,798	48,962
Change in fair value of conditionally redeemable 6% preferred stock	323,940	(45,886)
Depreciation, depletion, amortization and accretion of asset retirement obligation	$ 22,885	243,580
Impairment of evaluated oil and gas properties		5,462,012
Accretion of debt discount	$ 794,143	10,601
Changes in operating assets and liabilities:
Accounts receivable	(34,412)	(30,502)
Restricted cash	8,712	(145,259)
Prepaid assets	(311,871)	(144,038)
Accounts payable and other accrued expenses	1,593,863	(164,977)
Net cash used in operating activities	(772,865)	$ (1,732,117)
Cash flows from investing activities:
Deposit on potential merger	$ (608,105)
Drilling capital expenditures		$ (428)
Net cash used in investing activities	$ (608,105)	$ (428)
Cash flows from financing activities:
Proceeds from issuance of convertible notes	$ 1,300,000
Dividend payments on Preferred Stock		$ (180,000)
Debt issuance costs		(266,308)
Proceeds from issuance of term loan		3,000,000
Net cash provided by financing activities	$ 1,300,000	2,553,692
Increase (decrease) in cash	(80,970)	821,147
Cash at beginning of period	110,022	509,628
CASH AT END OF THE PERIOD	29,052	1,330,775
Supplemental disclosure:
Cash paid for interest	$ 87,390	$ 49,665
Cash paid for income taxes
Non-cash transactions:
Fair value of warrants issued as debt discount	$ 546,155	$ 56,250

Organization

Organization	3 Months Ended
	Mar. 31, 2016
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 16,000 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.

Going Concern and Management Pl

Going Concern and Management Plans	3 Months Ended
	Mar. 31, 2016
Going Concern and Management Plans [Abstract]
GOING CONCERN AND MANAGEMENT PLANS	NOTE 2 – GOING CONCERN AND MANAGEMENT PLANS The Company’s financial statements for the three months ended March 31, 2016 have been prepared on a going concern basis. The Company has reported net operating losses during the three months ended March 31, 2016 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. We will need to raise additional funds to finance continuing operations. However, we may not be successful in doing so. Without sufficient additional financing, it would be unlikely for us to continue as a going concern. Our ability to continue as a going concern is dependent upon our ability to successfully accomplish our business plan and eventually secure other sources of financing and attain profitable operations. Information about our financial position is presented in the following table (in thousands): March 31, December 31, 2016 2015 Financial Position Summary Cash and cash equivalents $ 29 $ 110 Working capital (deficit) $ (18,378 ) $ (15,695 ) Balance outstanding on convertible debentures, $ 12,642 $ 11,317 Stockholders’ deficiency $ (17,020 ) $ (14,344 ) As of May 20, 2016, the Company’s cash balance was approximately $100,000. The Company has historically financed its operations through the sale of debt and equity securities and borrowings under credit facilities with financial institutions. For a complete description of the Company’s indebtedness, see Note 6 — Loan Agreements. Development and Production During the year ended December 31, 2015, the Company entered into eight joint operating agreements to participate as a non-operator in the drilling of eight horizontal wells. The Company has an average of 3.41% working interest in each of these wells which are being drilled by reliable companies. However, due to capital constraints, the Company was placed in non-consent status. In May, 2016, the Company renegotiated the ability to fund its share of the outstanding drilling operations in the amount of approximately $1.55 million. It paid a $300,000 deposit and is required to pay the balance by June 30, 2016. If full payment is remitted, the Company will regain compliance under each of the joint operating agreements. Additionally, as of May 20, 2016, the Company was producing approximately 20 BOE a day from eight economically producing wells. Due to a decline in commodity prices, the cash generated from the Company’s production activity is not sufficient to pay its operating costs and the Company does not have sufficient cash to continue operations in the ordinary course . Proposed Merger with Brushy Resources On December 29, 2015, the Company entered into a merger agreement with Brushy Resources, Inc. (“Brushy”). Among other conditions to the merger, the Company is required to repay its Term Loan with Heartland Bank in full, convert the $6.85 million outstanding under its 8% Senior Secured Convertible Debentures (the “Debentures”) into Common Stock at $0.50 and convert $7.5 million of its outstanding Series A Preferred Stock into Common Stock at $0.50. In addition, Brushy will have to repay, refinance or negotiate alternative terms with its senior lender prior to completing the Merger. The stockholders’ meeting to vote on the merger and related transactions is scheduled for May 23, 2016. The Company believes that if the Merger is successfully completed, it will substantially increase its producing properties resulting in significantly greater cash flow while eliminating or refinancing its existing indebtedness. The Company will however be required to obtain significant additional capital to pay outstanding debt obligations, pay professional fees related to the Merger, pay outstanding payables in the ordinary course and to fund the combined company’s working capital requirements. While the Company expects to raise additional capital to fund all of these obligations, the current volatility in the commodity markets has made it difficult for oil and gas exploration companies, including the Company, to access debt or equity financing or obtain borrowings from financial lenders. If the Company is unable to complete the Merger or otherwise obtain significant capital, it will likely not be able to continue its current operations and would have to consider other alternatives to preserve value for the Company’s stockholders. These alternatives could include engaging in discussions to acquire other producing properties, selling or disposing of some or all of the Company’s assets or a liquidation of its business. As of March 31, 2016, the Company has paid deposits toward the Merger of approximately of $2.4 million. This amount is recorded in restricted cash and deposits.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Estimates	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and the results of operations and cash flows for the periods presented. The results of operations for the three ended March 31, 2016 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, 2015. 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, 2015, 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 months ended March 31, 2016 no impairment was recorded. During the three months ended March 31, 2015, the Company incurred a $5.46 million impairment on its oil and gas properties. 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. 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 March 31, 2016 and December 31, 2015. March 31, December 31, Fair-value of executive compensation and other accrued payroll $ 355,063 $ 720,414 Accrued convertible debenture interest 1,550,724 1,239,210 Board of director fees 175,869 177,847 Accrued professional fees 87,500 90,825 Production taxes 364,647 357,618 Other payables 713,532 367,505 $ 3,247,335 $ 2,955,419 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 approximately $3,000 and $4,000 for the three months ended March 31, 2016 and March 31, 2015, 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 March 31, 2016 and March 31, 2015 shares underlying restricted stock units, 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 March 31, 2016 and March 31, 2015: March 31, March 31, Stock Options 6,233,333 1,200,000 Restricted Stock Units (employees/directors) 1,794,000 1,814,855 Series A Preferred Stock 3,112,033 3,112,033 Stock Purchase Warrants 29,733,161 17,532,065 Convertible Notes 8,500,004 - Convertible Debentures 3,423,233 3,423,233 52,795,764 27,082,186 Recently Issued Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01 (“ASU 2016-01”), “Financial Instruments – Overall (Subtopic 825-10)”. ASU 2016-01 updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The new guidance is effective for us on January 1, 2018. The Company does not expect the adoption of ASU 2016–01 to have a significant impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02), “Leases (Topic 842).” ASU 2016-02 requires a lessee to recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. ASU 2016-02 is effective for us on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the effect that ASU 2016-02 will have on its financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-06 (“ASU 2016-06”), “Contingent Put and Call Option in Debt Instruments”. ASU 2016-06 is intended to simplify the analysis of embedded derivatives for debt instruments that contain contingent put or call options. The amendments in ASU 2016-06 clarify that an entity is required to assess the embedded call or put options solely in accordance with the four-step decision sequence. Consequently, when a call (put) option is contingently exercisable, an entity does not have to initially assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. The amendments in ASU 2016-06 take effect for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016–01 to have a significant impact on its financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date The FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.

Oil and Gas Properties & Oil an

Oil and Gas Properties & Oil and Gas Properties Acquisitions and Divestitures	3 Months Ended
	Mar. 31, 2016
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 months ended March 31, 2016 and 2015, the Company did not buy or sell any of its oil and gas properties. If commodity prices continue to stay at current 2016 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 2016 compared to 2015 is a lower ceiling value each quarter. This could 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. During the three months ended March 31, 2016 no impairment was recorded. During the three months ended March 31, 2015, the Company incurred a $5.46 million impairment on its oil and gas properties. Depreciation, depletion and amortization expenses related to the proved properties were approximately $13,000 and $244,000 for three months ended March 31, 2016 and March 31, 2015, respectively.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
Fair Value of Financial Instruments [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 5 - 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. Derivative Instruments The Company determines its estimate of the fair value of derivative instruments using a market approach based on several factors, including quoted market prices in active markets, quotes from third parties, and the credit rating of its counterparty. The Company also performs an internal valuation to ensure the reasonableness of third-party quotes. The types of derivative instruments utilized by the Company included commodity swaps. The oil derivative markets are highly active. Although the Company’s economic hedges are valued using public indices, the instruments themselves are traded with third-party counterparties and are not openly traded on an exchange. As such, the Company classifies these instruments as Level 2. In evaluating counterparty credit risk, the Company assessed the possibility of whether the counterparty to the derivative would default by failing to make any contractually required payments. The Company considered that the counterparty is of substantial credit quality and has the financial resources and willingness to meet its potential repayment obligations associated with the derivative transactions. The Company has no such derivative instruments at March 31, 2016 and December 31, 2015. Asset Retirement Obligation The fair value of the Company’s asset retirement obligation liability is calculated at the point of inception by taking into account, 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; the economic lives of its properties, which are based on estimates from reserve engineers; the inflation rate; and 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. Impairment The Company estimates the expected undiscounted future cash flows of its oil and natural gas properties and compares such amounts to the carrying amount of the oil and natural gas properties to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will adjust the carrying amount of the oil and natural gas properties to fair value. The factors used to determine fair value are subject to management’s judgment and expertise and include, but are not limited to, recent sales prices of comparable properties, the present value of future cash flows, net of estimated operating and development costs using estimates or proved reserves, future commodity pricing, future production estimates, anticipated capital expenditures and various discount rates commensurate with the risk and current market conditions associated with realizing the expected cash flows projected. These assumptions represent Level 3 inputs. Impairment of oil and gas assets for the three months ended March 31, 2015 was $5.4 million. The Company did not have an impairment during the three months ended March 31, 2016. Executive Compensation On March 30, 2015, the Company and Abraham Mirman entered into an amended and restated employment agreement. Mr. Mirman’s amended and restated employment agreement provides for Mr. Mirman to receive a cash incentive bonus if certain production thresholds are achieved by the Company. The Company did not meet these production thresholds within the required measurement period for that term. As such, Mr. Mirman’s incentive bonus liability had no value at March 31, 2016. On March 6, 2015, the Company entered into an employment agreement with Kevin Nanke to act as the Company’s Executive Vice President and Chief Financial Officer. Pursuant to the terms of Mr. Nanke’s employment agreement, he would have received a cash incentive bonus if certain production thresholds had been achieved by the Company and a performance bonus of $100,000 if the Company were to achieve certain compliance goals set forth in Mr. Nanke’s employment agreement. The Company did not meet the production thresholds within the required measurement period for that term. As such, Mr. Nanke’s incentive bonus liability had no value at March 31, 2016. While the Company did meet the compliance goals outlined in Mr. Nanke’s employment agreement, due to capital constraints, Mr. Nanke’s performance bonus remains outstanding at March 31, 2016. On March 16, 2015, the Company entered into an employment agreement with Ariella Fuchs for services to be performed as General Counsel to the Company. Pursuant to the terms of Ms. Fuchs’s employment agreement, she would have received a cash incentive bonus if certain production thresholds had been achieved by the Company. The Company did not meet these production thresholds within the required measurement period for that term. As such, Ms. Fuch’s incentive bonus liability had no value at March 31, 2016. Change in Warrant Liability On September 2, 2014, the Company entered into a Consulting Agreement with Bristol Capital, LLC, 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 March 31, 2016, 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 $0.17; (iii) exercise price of $2.00; (iv) expected life of 3.4 years; (v) volatility of 125%; risk free rate of .9% for a total value of $59,000, which adjusted the change in fair value valuation of the derivative by approximately $14,000 for the three months ended March 31, 2016. On January 8, 2015, the Company entered into the Credit Agreement (as defined below). In connection with the Credit Agreement, the Company issued to Heartland a warrant to purchase up to 225,000 shares of Common Stock at an exercise price of $2.50 with the initial advance, which contains 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. During the three months ended March 31, 2016, the Company issued convertible notes with a conversion price of $0.50 and warrants with an exercise price of $0.25. Subsequently, on May 6, 2016, the Company issued additional convertible notes and warrants with an exercise price of $0.01. The Company also reduced the exercise price on certain of the warrants issued in the first quarter to $0.01. On March 31, 2016, the Company revalued the warrants using the following variables: (i) 225,000 warrants issued; (ii) stock price of $0.17; (iii) adjusted exercise price of $ 1.19; (iv) expected life of 3.8 years; (v) volatility of 100%; (vi) risk free rate of .9% for a total value of $16,000, which adjusted the fair value valuation of the derivative by approximately $4,000 for the three months ended March 31, 2016. Debentures Conversion Derivative Liability As of March 31, 2016, the Company had $6.85 million in remaining Debentures, which, subject to stockholder approval, were 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 prior to the execution of the Debenture Conversion Agreement. 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 March 31 2016, the Company valued the conversion feature associated with the Debentures at $54,000. The Company used the following inputs to calculate the valuation of the derivative as of March 31, 2016: (i) volatility of 125%; (ii) conversion price of $2.00; (iii) stock price of $0.17; and (iv) present value of conversion feature of $0.016 per convertible share. The change in fair value valuation of the derivative was approximately $48,000 for the three months ended March 31, 2016. The following table provides a summary of the fair values of assets and liabilities measured at fair value: March 31, 2016: Level 1 Level 2 Level 3 Total Liability Executive employment agreements $ - $ - $ - $ - Warrant liabilities - - (74,000 ) (74,000 ) Convertible debenture conversion derivative liability - - (54,000 ) (54,000 ) Total liability, at fair value $ - $ - $ (128,000 ) $ (128,000 ) December 31, 2015: Level 1 Level 2 Level 3 Total Liability Executive employment agreements $ - $ - $ (223,000 ) $ (223,000 ) Warrant liabilities - - (56,000 ) (56,000 ) Convertible debenture conversion derivative liability - - (6,000 ) (6,000 ) Total liability, at fair value $ - $ - $ (285,000 ) $ (285,000 ) The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets and liabilities as of March 31, 2016 and 2015: Conversion derivative liability Bristol/ Incentive bonus Total Balance at January 1, 2016 $ (6,000 ) $ (56,000 ) $ (223,000 ) $ (285,000 ) Additional liability - - - - Change in fair value of liability (48,000 ) (18,000 ) 223,000 157,000 Balance at March 31, 2016 $ (54,000 ) $ (74,000 ) $ - $ (128,000 ) 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 months ended March 31, 2016 and March 31, 2015.

Loan Agreements

Loan Agreements	3 Months Ended
	Mar. 31, 2016
Loan Agreements [Abstract]
LOAN AGREEMENTS	NOTE 6 - LOAN AGREEMENTS Credit Agreement As of As of Term loan - Heartland (due January 8, 2018) $ 2,750,000 $ 2,750,000 Unamortized debt discount (33,236 ) (37,911 ) Deferred financing costs (192,927 ) (220,020 ) Term loan - Heartland, net 2,523,837 2,492,069 Less: amount due within one year (2,523,837 ) (2,492,069 ) Term loan - Heartland due after one year $ - $ - On January 8, 2015, the Company entered into the Credit Agreement with Heartland Bank (the “Credit Agreement”), as administrative agent and the Lenders party thereto. The Credit Agreement provides for a three-year senior secured term loan in an initial aggregate principal amount of $3,000,000, or the Term Loan, 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. 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. On December 29, 2015, after a default on an interest payment and in connection with the merger, the Company entered into the Forbearance Agreement with Heartland. The Forbearance Agreement restricts Heartland from exercising any of its remedies until April 30, 2016 and is subject to certain conditions, including a requirement for the Company to make a monthly interest payment to Heartland. On March 1, 2016, the Company entered into an amendment to the Forbearance Agreement with Heartland (the “First Amendment”). Pursuant to the First Amendment, the amount of New Subordinated Debt (as defined in the Amendment) was increased by $1 million to a total of $5 million. The Company agreed to use the proceeds from the issuance of up to $1,000,000 in New Subordinated Debt, issued after March 1, 2016, for the following purposes: (i) up to $150,000 paid to the Company’s auditors, (ii) up to $100,000 for legal expenses related to the Merger and (iii) up to $750,000 for interest payments to the Lenders and for the Company’s general working capital and other ordinary accounts payable. Additionally, the Company agreed to deliver by email to Heartland (i) a list of any money in escrow, and the investor which deposited such money, for any anticipated financing to be used for the proposed purchase of the Brushy Resources, Inc. bank loan from its senior lender, Independent Bank, and the repayment of the Loan (the “New Financing”) and (ii) a brief update on the status and targeted closing date of the New Financing. Following a default on the required March 1, April 1, and May 1 interest payments, on May 4, 2016, the Company entered into a second amendment to the Forbearance Agreement (the “Second Amendment”). Pursuant to the Second Amendment, the limit on the amount of New Subordinated Debt the Company had been permitted to raise was eliminated and the Forbearance Expiration Date was extended to May 31, 2016. As consideration for the forgoing, the Company paid Heartland the overdue interest owed pursuant to the Term Loan and interest due through May 31, 2016 in the approximate amount of $87,000 and reimbursement of a portion of Heartland’s fees and expenses in an approximate amount of $53,000. Convertible Notes March 31, 2016: Related Non Related Party Convertible notes $ 2,350,002 $ 1,900,000 Unamortized debt discount (502,506 ) (475,891 ) Convertible notes, net 1,847,496 1,424,109 Less: amount due within one year (1,847,496 ) (1,424,109 ) Convertible notes due after one year $ - $ - December 31, 2015: Related Non Related Party Convertible notes $ 1,800,002 $ 1,150,000 Unamortized debt discount (745,450 ) (476,261 ) Convertible notes, net 1,054,552 673,739 Less: amount due within one year (1,054,552 ) (673,739 ) Convertible notes due after one year $ - $ - During the three months ended March 31, 2016 and 2015, the Company amortized $789,000 and zero of convertible debt discount, respectively. This amount is recorded as a component of non-cash interest expense. From December 29, 2015 to January 5, 2016, the Company entered into 12% Convertible Subordinated Note Purchase Agreements with various lending parties (the “Purchasers”), for the issuance of an aggregate principal amount of $3.75 million unsecured subordinated convertible notes, which includes the $750,002 of short-term notes exchanged for convertible notes by the Company and warrants to purchase up to an aggregate of approximately 15,000,000 shares of Common Stock at an exercise price of $0.25 per share. The proceeds from this financing were used to pay a $2 million refundable deposit in connection with the merger, to fund approximately $1.3 million of interest payments to our lenders and for our working capital and accounts payables. The convertible notes bear interest at a rate of 12% per annum, payable at maturity on June 30, 2016. The convertible notes and accrued but unpaid interest thereon are convertible in whole or in part from time to time at the option of the holders thereof into shares of our Common Stock at a conversion price of $0.50. The convertible notes may be prepaid in whole or in part (but with payment of accrued interest to the date of prepayment) at any time at a premium of 103% for the first 120 days and a premium of 105% thereafter, so long as no Senior Debt is outstanding. The convertible notes contain customary events of default, which, if uncured, entitle each noteholder to accelerate the due date of the unpaid principal amount of, and all accrued and unpaid interest, subject to certain subordination provisions. On March 18, 2016, the Company issued an additional aggregate principal amount of $500,000 of convertible notes and warrants to purchase 2.0 million shares of Common Stock, which have the terms and conditions as the convertible notes and warrants with the exception of the maturity date on the convertible notes, which is April 1, 2017. A portion of the proceeds from these convertible notes were used to make advances to Brushy for payment of operating expenses pending completion of the Merger. If the Merger is not completed, these amounts are subject to repayment by Brushy. Additionally, on or about May 6, 2016 (the “May Financing”), the Company issued an additional aggregate principal amount of approximately $1.3 million of convertible notes and warrants to purchase approximately 5.0 million shares of Common Stock, which have the same terms as the convertible notes with a maturity date of April 1, 2017 and with the exception of the warrant exercise price which is $0.01. Debentures As of March 31, 2016 and December 31, 2015: 8% Convertible debentures, net (due 2018; 8% weighted average interest rate) $ 6,846,465 Unamortized debt discount - 8% Convertible debenture, net 6,846,465 Less: amount due within one year (6,846,465 ) 8% Convertible debenture due after one year $ - 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 “First Conversion Agreement”) with all of the holders of the Debentures. Pursuant to the terms of the First Conversion Agreement, $9.0 million in Debentures (approximately $8.73 million of principal and $270,000 in interest) was converted by the holders to shares of Common Stock at a conversion price of $2.00 per share. In addition, the Company issued warrants to the Debenture holders to purchase one share of Common Stock for each share issued in connection with the conversion of the Debentures, at an exercise price equal to $2.50 per share. Under the terms of the First Conversion Agreement, the balance of the Debentures may be converted to Common Stock on the terms provided therein (including the terms related to the warrants) at the election of the holder, subject to receipt of stockholder approval as required by Nasdaq continued listing requirements. On December 29, 2015, the Company entered into a second agreement with the holders of its Debentures, which provides for the full automatic conversion of Debentures into shares of the Company’s Common Stock at a price of $0.50 per share, upon the receipt of requisite stockholder approval and the consummation of the merger. If the Debentures are converted on these terms, it would result in the issuance of 13,692,930 shares of Common Stock and the elimination of $8.08 million in short-term debt obligations including accrued but unpaid interest which would be forfeited and cancelled upon conversion pursuant to the terms of the agreement. As of March 31, 2016 and December 31, 2015 the Company had $6.85 million, net, remaining Debentures, which prior to December 29, 2015, were 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. If the merger is not successful or the stockholders do not approve the conversion of the Debentures at the Company’s special meeting to be held in the second quarter of 2016, the Debentures will no longer be subject to the terms of current debenture conversion agreement. The debt discount amortization on the Debentures was approximately $6,000 for the three months ended March 31, 2015. Interest Expense For the three months ended March 31, 2016 and 2015, the Company incurred interest expense of approximately $1.3 million and $222,000, respectively. Non-cash interest of approximately $821,000 and $172,000, respectively, were comprised of amortization of the deferred financing costs and accretion of the Debentures payable and convertible note discounts.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 7 - COMMITMENTS AND CONTINGENCIES Development and Production During the year ended December 31, 2015, the Company entered into eight joint operating agreements to participate as a non-operator in the drilling of eight horizontal wells. The Company has an average of 3.41% working interest in each of these wells which are being drilled by reliable companies. However, due to capital constraints, the Company was placed in non-consent status. In May, 2016, the Company renegotiated the ability to fund its share of the outstanding drilling operations in the amount of approximately $1.55 million. It paid a $300,000 deposit and is required to pay the balance by June 30, 2016. If full payment is remitted, the Company will regain compliance under each of the joint operating agreements. Environmental and Governmental Regulation At March 31, 2016, there were no known environmental or regulatory matters which are reasonably expected to result in a material liability to the Company. Many aspects of the oil and gas industry are extensively regulated by federal, state, and local governments in all areas in which the Company has operations. Regulations govern such things as drilling permits, environmental protection and air emissions/pollution control, spacing of wells, the unitization and pooling of properties, reports concerning operations, land use, 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 March 31, 2016 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 with the Operator. Due to the Company’s inability to secure financing pursuant to the Credit Agreement or another funding source, payment was not remitted to the Operator and the dispute remained unsettled. 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	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 8 - RELATED PARTY TRANSACTIONS During the three months ended March 31, 2016 and 2015, the Company has engaged in the following transactions with related parties: Convertible Notes From December 29, 2015 to January 5, 2016, the Company entered into 12% Convertible Subordinated Note Purchase Agreements with various lending parties, or the Purchasers, for the issuance of an aggregate principal amount of $3.75 million unsecured subordinated convertible notes, which includes the $750,002 of short-term notes exchanged for convertible notes by the Company and warrants to purchase up to an aggregate of approximately 15,000,000 shares of Common Stock at an exercise price of $0.25 per share. As of December 31, 2015, $2.95 million convertible notes were outstanding. The proceeds from this financing was used to pay a $2 million refundable deposit in connection with the merger, to fund approximately $1.3 million of interest payments to certain of our lenders and for the Company’s working capital and accounts payables. The convertible notes bear interest at a rate of 12% per annum, payable at maturity on June 30, 2016. The convertible notes and accrued but unpaid interest thereon are convertible in whole or in part from time to time at the option of the holders thereof into shares of our common stock at a conversion price of $0.50. The convertible notes may be prepaid in whole or in part by paying all or a portion of the principal amount to be prepaid together with accrued interest thereon to the date of prepayment at a premium of 103% for the first 120 days and a premium of 105% thereafter, so long as no Senior Debt is outstanding. The convertible notes contain customary events of default, which, if uncured, entitle each noteholder to accelerate the due date of the unpaid principal amount of, and all accrued and unpaid interest, subject to certain subordination provisions The Purchasers included certain related parties of the Company, including Abraham Mirman, the Company’s Chief Executive Officer and a member of the Board of Directors ($750,000 including the short-term note exchange investment), the Bruin Trust, an irrevocable trust managed by an independent trustee and whose beneficiaries include the adult children of Ronald D. Ormand, Chairman of the Company’s Board of Directors ($1.15 million) and Pierre Caland through Wallington Investment Holdings, Ltd. ($300,000), who holds more than 5% of our Common Stock. Certain of the Company’s officers, directors and consultants who the Company entered into short-term note agreements with in 2015, also entered into note exchange agreements, whereby the short-term noteholder agreed to exchange all of the Company’s outstanding obligations under such short-term notes, which as of December 29, 2015 had outstanding obligations of $750,002, into the convertible notes at a rate, expressed in principal amount of convertible notes equal to $1.00 for $1.00, in exchange for the cancellation of the short-term notes, with all amounts due thereunder being cancelled and deemed to have been paid in full, including any accrued but unpaid interest. The short-term noteholders included certain related parties of the Company, including Abraham Mirman, the Chief Executive Officer and a director of the Company ($250,000), General Merrill McPeak, a director of the Company ($250,000), and Nuno Brandolini, a director of the Company ($150,000). Additionally, on March 18, 2016, the Company issued an additional aggregate principal amount of $500,000 in convertible notes and warrants to purchase up to 2.0 million shares of our Common Stock. The terms and conditions of the convertible notes are identical to those of the convertible notes issued previously with the exception of the maturity date, which is April 1, 2017. The Purchasers included a related party of the Company, R. Glenn Dawson, a director of the Company ($50,000).

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2016
Shareholders' Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 9 - SHAREHOLDERS’ EQUITY January 2014 Private Placement In January 2014, the Company entered into and closed a series of subscription agreements with accredited investors, pursuant to which the Company issued an aggregate of 2,959,125 units, with each unit consisting of (i) one share of Common Stock for $2.00 a share and (ii) one three-year warrant to purchase one share of Common Stock at an exercise price equal to $2.50 per share (together, the “Units”), for a purchase price of $2.00 per Unit, for aggregate gross proceeds of $5.24 million (the “January Private Placement”). The warrants became exercisable in July 2014. As of February 23, 2015, neither the Common Stock issued in the January Private Placement nor the Common Stock underlying the warrants has been registered for resale. The Company valued the warrants within the Unit, utilizing a Black Scholes Option Pricing Model using a volatility calculation of 65%, risk free rate at the date of grant, and a 3 year term, the relative fair value allocated to warrants were approximately $1.68 million. The Company paid TRW 243,000 warrants valued using the Black Scholes option model at $203,000 and cash of approximately $668,000 million in financing fees to TRW, of which approximately $172,000 was reinvested into the private placement. May 2014 Private Placement - Series A 8% Convertible Preferred Stock On May 30, 2014, the Company consummated a private placement of 7,500 shares of Series A Preferred Stock, along with detachable 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 has a par value of $0.0001 per share, a stated value of $1,000 per share, a conversion price of $2.41 per share, and a liquidation preference to any junior securities. Except as otherwise required by law, holders of Series A Preferred Stock shall not be entitled to voting rights, except with respect to proposals to alter or change adversely the powers, preferences or rights given to the Series A Preferred Stock, authorize or create any class of stock ranking senior to the Series A Preferred Stock as to dividends, redemption or distribution of assets upon liquidation, amend its certificate of incorporation or other charter documents in any manner that adversely affects any rights of the Preferred Stock holder, or increase the number of authorized Series A Preferred Stock. The holders of the Series A Preferred Stock are entitled to receive a dividend payable, at the election of the Company (subject to certain conditions as set forth in the Certificate of Designations), in cash or shares of Common Stock, at a rate of 8% per annum payable a day after the end of each quarter. The Series A Preferred Stock is convertible at any time at the option of the holders, or at the Company’s discretion when the Common Stock trades above $7.50 for ten consecutive days with a daily dollar trading volume above $300,000. In addition, the Company has the right to redeem the shares of Series A Preferred Stock, along with any accrued and unpaid dividends, at any time, subject to certain conditions as set forth in the Certificate of Designations. In addition, holders of the Series A Preferred Stock can require the Company to redeem the Series A Preferred upon the occurrence of certain triggering events, including (i) failure to timely deliver shares of Common Stock after valid delivery of a notice of conversion by the holder; (ii) failure to have available a sufficient number of authorized and unreserved shares of Common Stock to issue upon conversion; (iii) the occurrence of certain change of control transactions; (iv) the occurrence of certain events of insolvency; and (v) the ineligibility of the Company to electronically transfer its shares via the Depository Trust Company or another established clearing corporation. The Series A Preferred Stock is classified as equity based on the following criteria: i) the redemption of the instrument at the control of the Company; ii) the instrument is convertible into a fixed amount of shares at a conversion price of $2.41; iii) the instrument is closely related to the underlying Company’s Common Stock; iv) the conversion option is indexed to the Company’s stock; v) the conversion option cannot be settled in cash and only can be redeemed at the discretion of the Company; vi) and the Series A Preferred Stock is not considered convertible debt. In connection with the issuance of the Series A Preferred Stock, the Company also issued a warrant for 50% of the amount of shares of Common Stock into which the Series A Preferred Stock is convertible. In connection with issuance of the Series A Preferred Stock, the beneficial conversion feature (“BCF”) was valued at $2.21 million and the fair value of the warrant was valued at $1.35 million. The aggregate value of the Series A Preferred Stock and warrant, valued at $3.56 million, was considered a deemed dividend and the full amount was expensed immediately. The Company determined the transaction created a beneficial conversion feature which is calculated by taking the net proceeds of $6.79 million and valuing the warrants as of May 2014, utilizing a Black Scholes option pricing model. The inputs for the pricing model are: $2.48 market price per share; exercise price of $2.89 per share; expected life of 3 years; volatility of 70%; and risk free rate of 0.20%. The Company calculated the total consideration given to be $8.40 million comprised of $6.80 million for the Series A Preferred and $1.6 million for the warrants. The Company deemed the value of the beneficial conversion feature to be $2.21 million and immediately accreted that amount as a deemed dividend. As of March 31, 2016, the Company has accrued a cumulative dividend of $750,000. 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, or the Redeemable Preferred. All 2,000 shares of Redeemable Preferred were issued in September 2014, pursuant to the Settlement Agreement with Hexagon. The Redeemable Preferred has the same par value and stated value characteristics as the Series A Preferred Stock, yet the Conditionally Redeemable 6% Preferred Stock is not convertible into Common Stock or any other securities of the Company. Except as otherwise required by law, holders of the Redeemable Preferred shall not be entitled to voting rights. The Redeemable Preferred Stock bears a 6% dividend per annum, payable quarterly, and is redeemable at face value (plus any accrued and unpaid dividends) at any time at the Company’s option, or at the Holders option upon the Company’s achievement of certain production and reserves thresholds. 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. As of March 31, 2016, the Company has accrued a cumulative dividend of $150,000. The total outstanding Redeemable Preferred was valued at approximately 1.5 million at March 31, 2016. Warrants Below is a summary of warrant activity for the three months ended March 31, 2016: Warrants Weighted- Average Exercise Outstanding at January 1, 2016 24,783,161 $ 1.48 Warrants issued with Convertible Notes 5,200,000 .25 Exercised, forfeited or expired (250,000 ) 6.00 Outstanding at March 31, 2016 29,733,161 $ 1.29 The aggregate intrinsic value associated with outstanding warrants was zero at March 31, 2016 as the strike price of all warrants exceeded the market price for Common Stock, based on the Company’s closing Common Stock price of $0.17 on March 31, 2016. The weighted average remaining contract life as of March 31, 2016 was 2.08 years. During the three months ended March 31, 2016, the Company issued 5.2 million warrants to purchase shares of Common Stock to Purchasers of the convertible notes. The warrants were valued using the following variables: (i) 5.2 million warrants; (ii) warrant price of $.20; (iii) exercise price of $ .25; (iv) expected life of 3 years; (v) volatility of 186.52%; (vi) risk free rate of 1.29% for a total value of $546,000 which the amount is amortized over the maturity period. The Company did not issue any warrants to purchase shares of Common Stock to consultants during the three months ended March 31, 2016. During the three months ended March 31, 2015, the Company issued 300,000 warrants to consultants. The warrants were valued using a Black Sholes model and $204,000 and were expensed immediately. As of March 31, 2016, there was no unearned compensation related to warrants issued as of that date.

Share Based and Other Compensat

Share Based and Other Compensation	3 Months Ended
	Mar. 31, 2016
Share Based and Other Compensation [Abstract]
SHARE BASED AND OTHER COMPENSATION	NOTE 10 - 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. On December 29, 2015, the EIP was amended again to increase the number of shares of Common Stock available for grant under the EIP from 6,800,000 shares to 10,000,000 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 three months ended March 31, 2016, the Company granted 1.2 million shares of restricted Common Stock to certain non-employee directors in connection with each of their appointment anniversaries pursuant to each director’s non-employee director award agreement and as board fees for the quarter ended December 31, 2015, paid in stock in lieu of cash. During the three months ended March 31, 2016, the Company also issued 100,000 restricted stock units and 450,000 stock options to a newly appointed director pursuant to his non-employee director award and stock option award agreements. Also during the three months ended March 31, 2016, certain of the Company’s employees, directors and consultants forfeited 66,666 shares of restricted stock units and 300,000 stock options previously granted in connection with various terminations. As a result, as of March 31, 2016, the Company had 1,794,000 restricted stock units, and 6,233,333 options to purchase shares of Common Stock 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 March 31, 2016, 1,594,002 restricted stock units have been granted, but have not been issued. Compensation Costs Three Months Ended March 31, 2016* Three Months Ended As of March 31, 2015 Stock Options Restricted Stock Total Stock Options Restricted Total Stock-based compensation expensed* $ 192 $ 49 $ 242 $ 555 $ 58 $ 613 Unamortized stock-based compensation costs $ 1,707 $ 171 $ 1,878 $ 1,789 $ 75 $ 1,864 Weighted average amortization period remaining* 2.93 1.08 - 8.26 1.07 - * 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 March 31, 2016. Restricted Stock Units A summary of restricted stock unit grant activity for the three months ended March 31, 2016 is presented below: Number of Shares Weighted Average Grant Date Price Outstanding at January 1, 2016 1,869,000 1.23 Granted 100,000 .18 Vested and issued (108,334 ) (1.87 ) Forfeited (66,666 ) (1.65 ) Outstanding at March 31, 2016 1,794,000 1.12 As of March 31, 2016, total unrecognized compensation costs related to 274,999 unvested restricted shares of Common Stock issued to directors and employees was approximately $171,000, which is expected to be recognized over a weighted-average remaining service period of 1.08 years. During the three months ended March 31, 2016 and 2015, the Company expensed $49,000, and $58,000, respectively for non-employee director compensation. No cash compensation was paid to the directors in the three months ended March 31, 2016 or the year ended December 31, 2015. Stock Options A summary of stock options activity for the three months ended March 31, 2016 is presented below: Stock Options Outstanding and Exercisable Number Weighted Number Weighted Outstanding at January 1, 2016 6,083,333 $ 1.46 Granted 450,000 1.46 Exercised - - Forfeited or cancelled (300,000 ) (1.93 ) Outstanding at March 31, 2016 6,233,333 $ 1.27 4,133,335 2.93 As of March 31, 2016, total unrecognized compensation costs relating to the outstanding options was $1.7 million, which is expected to be recognized over the remaining vesting period of approximately 1.96 years. During the three months ended March 31, 2016 and 2015, 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 March 31, 2016 and 2015 the Company amortized $192,000 and $555,000, respectively. As of March 31, 2016, 4,133,335 options were exercisable and 2,099,998 options have yet to vest in accordance with employee and board of director compensation agreements. On January 13, 2016, the Company granted 250,000 stock options, which vested immediately, to a non-employee director valued using the following variables: (i) 250,000 options; (ii) stock price of $.18; (iii) exercise price of $.18; (iv) expected life of 5 years; (v) volatility of 192.13%; (vi) risk free rate of 1.51% for a total value of $44,000 which amount is expensed immediately. On January 13, 2016, the Company granted 200,000 stock options to a non-employee director, which vest in equal installments over three years and were valued using the following variables: (i) 200,000 options; (ii) stock price of $.18; (iii) exercise price of $ .18; (iv) expected life of 7 years; (v) volatility of 192.13%; (vi) risk free rate of 1.85% for a total value of $36,000 which the amount is amortized over the vesting period.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 11 – SUBSEQUENT EVENTS On May 4, 2016, following a default on the required March 1, April 1 and May 1 interest payments pursuant to the Company’s Forbearance Agreement with Heartland, the Company entered into a second amendment to the Forbearance Agreement (the “Second Amendment”). Pursuant to the Second Amendment, the limit on the amount of New Subordinated Debt the Company has been permitted to raise was eliminated and the Forbearance Expiration Date was extended to May 31, 2016. As consideration for the forgoing, the Company paid Heartland the overdue interest owed pursuant to the Term Loan and interest due through May 31, 2016 in the approximate amount of $87,000 and reimbursement of a portion of Heartland’s fees and expenses in an approximate amount of $53,000. On or about May 6, 2016 (the “May Financing”), the Company issued an additional aggregate principal amount of approximately $1.3 million of convertible notes and warrants to purchase approximately 5.0 million shares of Common Stock, which have the same terms as the convertible notes with a maturity date of April 1, 2017 and with the exception of the warrant exercise price which is $0.01. In connection with the May Financing, in exchange for the additional consideration certain Purchasers received amended and restated warrants to purchase approximately 5.0 million shares of Common Stock, which reduced the exercise price of the warrants issued to these Purchasers in each of the prior two convertible notes issuances from $0.25 to $0.01. Additionally, certain of these Purchasers received amended and restated warrants to purchase an aggregate amount of up to approximately 2.6 million shares of Common Stock, which were amended to reduce the exercise price on each of the warrants, which had been issued in previous transactions during the years 2014 and 2013 from $4.25, in the case of approximately 800,000 warrants and $2.50 in the case of the remainder to $0.01, which were all subsequently exercised.

Summary of Significant Accoun18

Summary of Significant Accounting Policies and Estimates (Policies)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and the results of operations and cash flows for the periods presented. The results of operations for the three ended March 31, 2016 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, 2015. 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, 2015, 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 months ended March 31, 2016 no impairment was recorded. During the three months ended March 31, 2015, the Company incurred a $5.46 million impairment on its oil and gas properties. 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.
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 March 31, 2016 and December 31, 2015. March 31, December 31, Fair-value of executive compensation and other accrued payroll $ 355,063 $ 720,414 Accrued convertible debenture interest 1,550,724 1,239,210 Board of director fees 175,869 177,847 Accrued professional fees 87,500 90,825 Production taxes 364,647 357,618 Other payables 713,532 367,505 $ 3,247,335 $ 2,955,419
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 approximately $3,000 and $4,000 for the three months ended March 31, 2016 and March 31, 2015, 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 March 31, 2016 and March 31, 2015 shares underlying restricted stock units, 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 March 31, 2016 and March 31, 2015: March 31, March 31, Stock Options 6,233,333 1,200,000 Restricted Stock Units (employees/directors) 1,794,000 1,814,855 Series A Preferred Stock 3,112,033 3,112,033 Stock Purchase Warrants 29,733,161 17,532,065 Convertible Notes 8,500,004 - Convertible Debentures 3,423,233 3,423,233 52,795,764 27,082,186
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01 (“ASU 2016-01”), “Financial Instruments – Overall (Subtopic 825-10)”. ASU 2016-01 updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The new guidance is effective for us on January 1, 2018. The Company does not expect the adoption of ASU 2016–01 to have a significant impact on its financial statements. In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02), “Leases (Topic 842).” ASU 2016-02 requires a lessee to recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. ASU 2016-02 is effective for us on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the effect that ASU 2016-02 will have on its financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-06 (“ASU 2016-06”), “Contingent Put and Call Option in Debt Instruments”. ASU 2016-06 is intended to simplify the analysis of embedded derivatives for debt instruments that contain contingent put or call options. The amendments in ASU 2016-06 clarify that an entity is required to assess the embedded call or put options solely in accordance with the four-step decision sequence. Consequently, when a call (put) option is contingently exercisable, an entity does not have to initially assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. The amendments in ASU 2016-06 take effect for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016–01 to have a significant impact on its financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date The FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.

Going Concern and Management 19

Going Concern and Management Plans (Tables)	3 Months Ended
	Mar. 31, 2016
Going Concern and Management Plans [Abstract]
Summary of financial position	March 31, December 31, 2016 2015 Financial Position Summary Cash and cash equivalents $ 29 $ 110 Working capital (deficit) $ (18,378 ) $ (15,695 ) Balance outstanding on convertible debentures, $ 12,642 $ 11,317 Stockholders’ deficiency $ (17,020 ) $ (14,344 )

Summary of Significant Accoun20

Summary of Significant Accounting Policies and Estimates (Tables)	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies and Estimates [Abstract]
Schedule of accrued expense	March 31, December 31, Fair-value of executive compensation and other accrued payroll $ 355,063 $ 720,414 Accrued convertible debenture interest 1,550,724 1,239,210 Board of director fees 175,869 177,847 Accrued professional fees 87,500 90,825 Production taxes 364,647 357,618 Other payables 713,532 367,505 $ 3,247,335 $ 2,955,419
Schedule of common stock equivalents	March 31, March 31, Stock Options 6,233,333 1,200,000 Restricted Stock Units (employees/directors) 1,794,000 1,814,855 Series A Preferred Stock 3,112,033 3,112,033 Stock Purchase Warrants 29,733,161 17,532,065 Convertible Notes 8,500,004 - Convertible Debentures 3,423,233 3,423,233 52,795,764 27,082,186

Fair Value of Financial Instr21

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value of Financial Instruments [Abstract]
Summary of fair value of assets and liabilities measured at fair value	March 31, 2016: Level 1 Level 2 Level 3 Total Liability Executive employment agreements $ - $ - $ - $ - Warrant liabilities - - (74,000 ) (74,000 ) Convertible debenture conversion derivative liability - - (54,000 ) (54,000 ) Total liability, at fair value $ - $ - $ (128,000 ) $ (128,000 ) December 31, 2015: Level 1 Level 2 Level 3 Total Liability Executive employment agreements $ - $ - $ (223,000 ) $ (223,000 ) Warrant liabilities - - (56,000 ) (56,000 ) Convertible debenture conversion derivative liability - - (6,000 ) (6,000 ) Total liability, at fair value $ - $ - $ (285,000 ) $ (285,000 )
Summary of changes in fair value of Level 3 financial assets and liabilities	Conversion derivative liability Bristol/ Incentive bonus Total Balance at January 1, 2016 $ (6,000 ) $ (56,000 ) $ (223,000 ) $ (285,000 ) Additional liability - - - - Change in fair value of liability (48,000 ) (18,000 ) 223,000 157,000 Balance at March 31, 2016 $ (54,000 ) $ (74,000 ) $ - $ (128,000 )

Loan Agreements (Tables)

Loan Agreements (Tables)	3 Months Ended
	Mar. 31, 2016
Loan Agreements [Abstract]
Schedule of debt	As of As of Term loan - Heartland (due January 8, 2018) $ 2,750,000 $ 2,750,000 Unamortized debt discount (33,236 ) (37,911 ) Deferred financing costs (192,927 ) (220,020 ) Term loan - Heartland, net 2,523,837 2,492,069 Less: amount due within one year (2,523,837 ) (2,492,069 ) Term loan - Heartland due after one year $ - $ -
Shedule of convertible Notes	Related Non Related Party Convertible notes $ 2,350,002 $ 1,900,000 Unamortized debt discount (502,506 ) (475,891 ) Convertible notes, net 1,847,496 1,424,109 Less: amount due within one year (1,847,496 ) (1,424,109 ) Convertible notes due after one year $ - $ - Related Non Related Party Convertible notes $ 1,800,002 $ 1,150,000 Unamortized debt discount (745,450 ) (476,261 ) Convertible notes, net 1,054,552 673,739 Less: amount due within one year (1,054,552 ) (673,739 ) Convertible notes due after one year $ - $ -
Shedule of convertible debentures	8% Convertible debentures, net (due 2018; 8% weighted average interest rate) $ 6,846,465 Unamortized debt discount - 8% Convertible debenture, net 6,846,465 Less: amount due within one year (6,846,465 ) 8% Convertible debenture due after one year $ -

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Shareholders' Equity [Abstract]
Summary of warrant activity	Warrants Weighted- Average Exercise Outstanding at January 1, 2016 24,783,161 $ 1.48 Warrants issued with Convertible Notes 5,200,000 .25 Exercised, forfeited or expired (250,000 ) 6.00 Outstanding at March 31, 2016 29,733,161 $ 1.29

Share Based and Other Compens24

Share Based and Other Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Share Based and Other Compensation [Abstract]
Summary of compensation costs activity	Three Months Ended March 31, 2016* Three Months Ended As of March 31, 2015 Stock Options Restricted Stock Total Stock Options Restricted Total Stock-based compensation expensed* $ 192 $ 49 $ 242 $ 555 $ 58 $ 613 Unamortized stock-based compensation costs $ 1,707 $ 171 $ 1,878 $ 1,789 $ 75 $ 1,864 Weighted average amortization period remaining* 2.93 1.08 - 8.26 1.07 - * 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 March 31, 2016.
Summary of restricted stock grant activity	Number of Shares Weighted Average Grant Date Price Outstanding at January 1, 2016 1,869,000 1.23 Granted 100,000 .18 Vested and issued (108,334 ) (1.87 ) Forfeited (66,666 ) (1.65 ) Outstanding at March 31, 2016 1,794,000 1.12
Summary of stock options activity	Stock Options Outstanding and Exercisable Number Weighted Number Weighted Outstanding at January 1, 2016 6,083,333 $ 1.46 Granted 450,000 1.46 Exercised - - Forfeited or cancelled (300,000 ) (1.93 ) Outstanding at March 31, 2016 6,233,333 $ 1.27 4,133,335 2.93

Organization (Details)

Organization (Details)	Mar. 31, 2016a
Organization (Textual)
Area of land for oil and gas exploration and production (In acres)	16,000

Going Concern and Management 26

Going Concern and Management Plans (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Financial Position Summary
Cash and cash equivalents	$ 29,052	$ 110,022	$ 1,330,775	$ 509,628
Working capital (deficit)	(18,378,000)	15,695,000
Balance outstanding on convertible debentures, convertible notes payable and term loan	12,642,000	11,317,000
Stockholders' deficiency	$ (17,019,960)	$ (14,343,688)

Going Concern and Management 27

Going Concern and Management Plans (Details Textual)	1 Months Ended			3 Months Ended
	May. 31, 2016USD ($)	May. 20, 2016USD ($)Boe	Dec. 29, 2015USD ($)$ / shares	Mar. 31, 2016USD ($)$ / shares	May. 30, 2014$ / shares
Going Concern And Management Plans (Textual)
Cash				$ 52,000
Working interest rate				3.41%
Conversion price per share | $ / shares				$ 0.50
Paid deposits				$ 2,400,000
Subsequent Event [Member]
Going Concern And Management Plans (Textual)
Cash		$ 100,000
Production, barrels of oil | Boe | Boe		20
Paid deposits	$ 300,000
Outstanding amount for drilling operations	$ 1,550,000
Series A Preferred Stock [Member]
Going Concern And Management Plans (Textual)
Conversion price per share | $ / shares					$ 2.41
Convertible debentures conversion shares, value			$ 7,500,000
Debenture [Member]
Going Concern And Management Plans (Textual)
Conversion price per share | $ / shares			$ 0.50
Convertible debentures conversion shares, value			$ 6,850,000
Convertible debenture percentage			8.00%

Summary of Significant Accoun28

Summary of Significant Accounting Policies and Estimates (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Summary of Significant Accounting Policies and Estimates [Abstract]
Fair-value of executive compensation and other accrued payroll	$ 355,063	$ 720,414
Accrued convertible debenture interest	1,550,724	1,239,210
Board of director fees	175,869	177,847
Accrued professional fees	87,500	90,825
Production taxes	364,647	357,618
Other payables	713,532	367,505
Total accrued expenses	$ 3,247,335	$ 2,955,419

Summary of Significant Accoun29

Summary of Significant Accounting Policies and Estimates (Details 1) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	52,795,764	27,082,186
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	6,233,333	1,200,000
Restricted Stock Units (employees/directors)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	1,794,000	1,814,855
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
Stock Purchase Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	29,733,161	17,532,065
Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	8,500,004
Convertible Debentures [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	3,423,233	3,423,233

Summary of Significant Accoun30

Summary of Significant Accounting Policies and Estimates (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
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		$ 5,460,000
Accretion expense	$ 3,000	$ 4,000
Other current assets and short-term debt	$ 193,000		$ 220,000

Oil and Gas Properties & Oil 31

Oil and Gas Properties & Oil and Gas Properties Acquisitions and Divestitures (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Oil and Gas Properties & Oil and Gas Properties Acquisitions and Divestitures (Textual)
Impairment of oil and gas properties		$ 5,460,000
Depreciation, depletion and amortization for proved properties	$ 13,000	$ 244,000

Fair Value of Financial Instr32

Fair Value of Financial Instruments (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Liability
Executive employment agreements		$ (223,000)
Warrant liabilities	$ (74,000)	(56,000)
Convertible debenture conversion derivative liability	(54,000)	(6,000)
Total liability, at fair value	$ (128,000)	$ (285,000)
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		$ (223,000)
Warrant liabilities	$ (74,000)	(56,000)
Convertible debenture conversion derivative liability	(54,000)	(6,000)
Total liability, at fair value	$ (128,000)	$ (285,000)

Fair Value of Financial Instr33

Fair Value of Financial Instruments (Details 1)	3 Months Ended
	Mar. 31, 2016USD ($)
Summary of changes in fair value of Level 3 financial assets and liabilities
Balance at January 1, 2016	$ (285,000)
Additional liability
Change in fair value of liability	$ 157,000
Balance at March 31, 2016	(128,000)
Conversion derivative liability [Member]
Summary of changes in fair value of Level 3 financial assets and liabilities
Balance at January 1, 2016	$ (6,000)
Additional liability
Change in fair value of liability	$ (48,000)
Balance at March 31, 2016	(54,000)
Bristol/Heartland warrant liability[Member]
Summary of changes in fair value of Level 3 financial assets and liabilities
Balance at January 1, 2016	$ (56,000)
Additional liability
Change in fair value of liability	$ (18,000)
Balance at March 31, 2016	(74,000)
Incentive bonus [Member]
Summary of changes in fair value of Level 3 financial assets and liabilities
Balance at January 1, 2016	$ (223,000)
Additional liability
Change in fair value of liability	$ 223,000
Balance at March 31, 2016

Fair Value of Financial Instr34

Fair Value of Financial Instruments (Details Textual) - USD ($)	May. 06, 2016	Mar. 06, 2015	Jan. 08, 2015	Sep. 02, 2014	Mar. 18, 2016	May. 30, 2014	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2014	May. 04, 2016	Dec. 31, 2015
Fair Value of Financial Instruments (Textual)
Beneficial conversion feature						$ 8,400,000
Impairment of evaluated oil and gas properties								$ 5,462,012
Exercise price of warrant							$ 0.01
Warrants/options issued							1,000,000
Maximum principal amount					$ 500,000
Conversion price							$ 0.50
Warrants to purchase common stock					2,000,000
Subsequent Event [Member]
Fair Value of Financial Instruments (Textual)
Exercise price of warrant	$ 0.01
Maximum principal amount	$ 1,300,000									$ 87,000
Warrants to purchase common stock	5,000,000
Convertible Debt [Member]
Fair Value of Financial Instruments (Textual)
Beneficial conversion feature							$ 54,000
Share price							$ 0.17
Exercise price							$ 2
Volatility rate							125.00%
Fair value of derivative							$ 48,000
Convertible debentures conversion shares							3,423,233
Conversion price							$ 2				$ 2
Convertible debentures conversion shares, value							$ 6,850,000
Present value of conversion feature, Description							Present value of conversion feature of $0.016 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							$ 0.17
Exercise price							$ 2
Expected life							3 years 4 months 24 days
Volatility rate							125.00%
Risk free rate							0.90%
Fair value of derivative							$ 14,000
Total value of options/warrants							$ 59,000
Warrants to purchase common stock							1,000,000
Options to purchase common shares							1,000,000
Credit Agreement [Member]
Fair Value of Financial Instruments (Textual)
Exercise price of warrant							$ 0.25
Share price							0.17
Exercise price			$ 2.50	$ 2			$ 1.19
Expected life							3 years 9 months 18 days
Volatility rate							100.00%
Risk free rate							0.90%
Fair value of derivative							$ 4,000
Total value of options/warrants							$ 16,000
Secured term loan			$ 3,000,000
Maximum principal amount			$ 50,000,000
Conversion price							$ 0.50
Warrants issued							225,000
Warrants to purchase common stock			225,000	1,000,000
Options to purchase common shares				1,000,000
Mr. Nanke's [Member]
Fair Value of Financial Instruments (Textual)
Performance Fees		$ 100,000

Loan Agreements (Details)

Loan Agreements (Details) - Credit Agreement [Member] - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Term loan - Heartland (due January8,2018)	$ 2,750,000	$ 2,750,000
Unamortized debt discount	(33,236)	(37,911)
Deferred financing costs	(192,927)	(220,020)
Term loan - Heartland, net	2,523,837	2,492,069
Less: amount due within one year	$ (2,523,837)	$ (2,492,069)
Term loan - Heartland due after one year

Loan Agreements (Details 1)

Loan Agreements (Details 1) - Convertible notes [Member] - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Related Party [Member]
Short-term Debt [Line Items]
Convertible notes	$ 2,350,002	$ 1,800,002
Unamortized debt discount	(502,506)	(745,450)
Convertible notes, net	1,847,496	1,054,552
Less: amount due within one year	$ (1,847,496)	$ (1,054,552)
Convertible notes due after one year
Non Related Party [Member]
Short-term Debt [Line Items]
Convertible notes	$ 1,900,000	$ 1,150,000
Unamortized debt discount	(475,891)	(476,261)
Convertible notes, net	1,424,109	673,739
Less: amount due within one year	$ (1,424,109)	$ (673,739)
Convertible notes due after one year

Loan Agreements (Details 2)

Loan Agreements (Details 2) - Convertible Debt One [Member] - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
8% Convertible debentures, net (due 2018; 8% weighted average interest rate)	$ 6,846,465	$ 6,846,465
Unamortized debt discount
8% Convertible debenture, net	$ 6,846,465	$ 6,846,465
Less: amount due within one year	$ (6,846,465)	$ (6,846,465)
8% Convertible debenture due after one year

Loan Agreements (Details Textua

Loan Agreements (Details Textual) - USD ($)	May. 06, 2016	May. 04, 2016	Mar. 01, 2016	Jan. 05, 2016	Jan. 08, 2015	Sep. 02, 2014	Mar. 18, 2016	Dec. 29, 2015	Oct. 30, 2013	Feb. 21, 2011	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Loan Agreements (Textual)
Maximum principal amount							$ 500,000
Subordinated debt								$ 3,750,000
Debt maturity date							Apr. 1, 2017				Jun. 30, 2016
Interest payments								1,300,000
Amortization of convertible debt discount											$ 794,143	$ 10,601
Warrants to purchase common stock							2,000,000
Refundable deposit								2,000,000
Short term convertible notes											$ 1,424,109		$ 673,739
Warrants exercise price, per share											$ 0.01
Convertible note description											The Convertible Notes may be prepaid in whole or in part (but with payment of accrued interest to the date of prepayment) at any time at a premium of 103% for the first 120 days and a premium of 105% thereafter, so long as no Senior Debt is outstanding.
Common stock conversion price											$ 0.50
Aggregate principal amount							$ 500,000
Conversion price per share											$ 0.50
Interest expense											$ 1,334,003	221,610
Non-cash interest expense											$ 821,000	172,000
Debt interest rate											12.00%
Subsequent Event [Member]
Loan Agreements (Textual)
Maximum principal amount	$ 1,300,000	$ 87,000
Debt maturity date	Apr. 1, 2017	May 31, 2016
Fees and expenses		$ 53,000
Warrants to purchase common stock	5,000,000
Warrants exercise price, per share	$ 0.01
Convertible Debt [Member]
Loan Agreements (Textual)
Amortization of convertible debt discount											$ 789,000	0
Debt conversion											$ 6,850,000
Conversion price per share											$ 2		$ 2
Convertible Debenture [Member]
Loan Agreements (Textual)
Amortization of convertible debt discount												6,000
Debentures issued									$ 15,600,000	$ 15,600,000
Debt conversion											$ 6,850,000	$ 6,850,000
Conversion price per share											$ 2	$ 2
Convertible Subordinated Debt [Member]
Loan Agreements (Textual)
Interest payments				$ 1,300,000
Warrants to purchase common stock				15,000,000
Unsecured subordinated convertible notes				$ 3,750,000
Convertible subordinated note percentage				12.00%
Refundable deposit				$ 2,000,000
Short term convertible notes				$ 750,002
Warrants exercise price, per share				$ 0.25
Convertible Debt One [Member]
Loan Agreements (Textual)
Warrants exercise price, per share											$ 2.50
Aggregate principal amount											$ 8,730,000
Debt instrument payment of interest											270,000
Debt conversion											$ 9,000,000
Conversion price per share											$ 2
Convertible Debt Two [Member]
Loan Agreements (Textual)
Short term convertible notes								$ 8,080,000
Common stock conversion price								$ 0.50
Convertible debentures conversion shares								13,692,930
Heartland Credit Agreement [Member]
Loan Agreements (Textual)
Secured term loan in original principal amount					$ 3,000,000
Maximum principal amount					$ 50,000,000
Subordinated debt			$ 5,000,000
Increased subordinated debt			$ 1,000,000
Amendment, Descriptions			(i) up to $150,000 paid to the Company's auditors, (ii) up to $100,000 for legal expenses related to the Merger and (iii) up to $750,000 for interest payments to the Lenders and for the Company's general working capital and other ordinary accounts payable. Additionally, the Company agreed to deliver by email to Heartland (i) a list of any money in escrow, and the investor which deposited such money, for any anticipated financing to be used for the proposed purchase of the Brushy Resources, Inc. bank loan from its senior lender, Independent Bank, and the repayment of the Loan (the "New Financing") and (ii) a brief update on the status and targeted closing date of the New Financing.
Proceeds from the issuance of subordinated debt			$ 1,000,000
Amount paid			150,000
Legal expenses			100,000
Interest payments			$ 750,000
Warrants to purchase common stock					225,000	1,000,000
Warrants exercise price, per share											0.25
Conversion price per share											$ 0.50

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	Apr. 10, 2015	Jan. 09, 2015	Dec. 29, 2015	Jun. 30, 2016	May. 31, 2016
Commitments and Contingencies (Textual)
Claim for breach of contract	$ 625,572	$ 6,981,302.60
Percentage of working interest			3.41%
Deposits			$ 2,000,000
Development and Production [Member] | Subsequent Event [Member]
Commitments and Contingencies (Textual)
Deposits				$ 300,000
Drilling operations outstanding					$ 1,550,000

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	1 Months Ended		3 Months Ended
	Mar. 18, 2016	Dec. 29, 2015	Mar. 31, 2016	Dec. 31, 2015	Aug. 14, 2015	Jun. 22, 2015
Related Party Transactions Textual [Abstract]
Convertible Subordinated Note		12.00%
Subordinated debt		$ 3,750,000
Short-term notes		$ 750,002	$ 1,847,496	$ 1,054,552
Warrants purchase	2,000,000	15,000,000
Exercise price		$ 0.25
Convertible notes outstanding				$ 2,950,000
Refundable deposit		$ 2,000,000
Interest payments		1,300,000
Debt due date	Apr. 1, 2017		Jun. 30, 2016
Conversion price			$ 0.50
Outstanding obligations		$ 750,002
Convertible notes, Description		The convertible notes at a rate, expressed in principal amount of convertible notes equal to $1.00 for $1.00, in exchange for the cancellation of the short-term notes, with all amounts due thereunder being cancelled and deemed to have been paid in full, including any accrued but unpaid interest.
Convertible notes interest rate			12.00%
Additional aggregate principal amount	$ 500,000
Wallington Investment Holdings, Ltd. [Member]
Related Party Transactions Textual [Abstract]
Investments			$ 300,000
Percentage of common stock			5.00%
Board of Directors [Member]
Related Party Transactions Textual [Abstract]
Short-term notes			$ 750,000
Investments			1,150,000
Cash received from related party			250,000			$ 250,002
Purchasers included related party			50,000
Abraham Mirman [Member]
Related Party Transactions Textual [Abstract]
Cash received from related party			250,000		$ 250,000
Nuno Brandolini [Member]
Related Party Transactions Textual [Abstract]
Cash received from related party			$ 150,000

Shareholders' Equity (Details)

Shareholders' Equity (Details) - Warrant [Member]	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at January 1, 2016	24,783,161
Warrants issued with Convertible Notes	5,200,000
Exercised, forfeited or expired	(250,000)
Outstanding at March 31, 2016	29,733,161
Weighted Average Exercise Price, Outstanding at January 1, 2016 | $ / shares	$ 1.48
Weighted Average Exercise Price, Warrants issued with Convertible Notes	0.25
Weighted Average Exercise Price, Exercised, forfeited, or expired | $ / shares	$ 6
Weighted Average Exercise Price, Outstanding at March 31, 2016 | $ / shares	$ 1.29

Shareholders' Equity (Details T

Shareholders' Equity (Details Textual) - USD ($)	1 Months Ended			3 Months Ended
	Aug. 31, 2014	May. 30, 2014	Jan. 31, 2014	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants exercise price, per share				$ 0.01
Fair value of warrants				$ 18,798	$ 48,962
Warrants issued value				$ 546,000
Series A Preferred Stock, shares issued				7,500
Preferred stock par value				$ 0.0001
Series A Preferred Stock, value stated rate				$ 1,000
Conversion price				$ 0.50
Fair value of conversion feature		$ 8,400,000
Dividend on preferred stock				$ 750,000
Preferred Stock, shares authorized	2,000			10,000,000
Debt Instrument interest rate, Percentage				12.00%
Series A 8% Convertible Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants exercise price, per share		$ 2.89
Fair value of warrants		$ 1,350,000
Purchase of common stock warrant		1,556,017
Series A Preferred Stock, shares issued		7,500
Aggregate value of warrants issued		$ 7,500,000
Preferred stock par value		$ 0.0001
Series A Preferred Stock, value stated rate		$ 1,000
Conversion price		$ 2.41
Convertible preferred stock, Description		The Series A Preferred Stock is convertible at any time at the option of the holders, or at the Company's discretion when the Common Stock trades above $7.50 for ten consecutive days with a daily dollar trading volume above $300,000.
Deemed value of beneficial conversion feature		$ 2,210,000
Deemed dividend		3,560,000
Conditionally Redeemable 6% Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Convertible preferred stock, Description				The Redeemable Preferred Stock bears a 6% dividend per annum, payable quarterly, and is redeemable at face value (plus any accrued and unpaid dividends) at any time at the Company's option, or at the Holders option upon the Company's achievement of certain production and reserves thresholds. 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.
Gross proceeds from preferred stock				$ 50,000,000
Dividend on preferred stock				150,000
Preferred Stock, shares authorized	2,000
Preferred stock, dividend rate, percentage	6.00%
Outstanding redeemable preferred stock value				$ 1,500,000
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price per share				$ 0.17
Expected life				2 years 29 days
Warrants issued				5,200,000
Deemed value of beneficial conversion feature		2,210,000
Fair value of conversion feature		$ 1,600,000
Warrants expenses				$ 204,000
Warrant [Member] | Series A 8% Convertible Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price per share		$ 2.48
Warrants exercise price, per share		$ 2.89
Expected life		3 years
Risk free rate		0.20%
Gross proceeds from preferred stock		$ 6,790,000
Volatility rate		70.00%
Fair value of conversion feature		$ 6,800,000
Warrant [Member] | Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued				300,000
Warrant [Member] | Purchasers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price per share				$ 0.20
Warrants exercise price, per share				$ 0.25
Expected life				3 years
Risk free rate				1.29%
Warrants issued				5,200,000
Warrants issued value				$ 5,200,000
Volatility rate				186.52%
Private Placement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted			2,959,125
Purchase price per share			$ 2
Price per share			2
Warrants exercise price, per share			$ 2.50
Proceeds from private placement			$ 5,240,000
Warrants issued value			172,000
Private Placement [Member] | T R Winston [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of warrants			203,000
Financing fees			$ 668,000
Warrants issued			243,000
Private Placement [Member] | Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life			3 years
Risk free rate			65.00%
Fair value of warrants			$ 1,680,000

Share Based and Other Compens43

Share Based and Other Compensation (Details) - USD ($)		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expensed	[1]	$ 242	$ 613
Unamortized stock-based compensation costs		1,878	1,864
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expensed	[1]	192	555
Unamortized stock-based compensation costs		$ 1,707	$ 1,789
Weighted average amortization period remaining*	[1]	2 years 11 months 5 days	8 years 3 months 4 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expensed	[1]	$ 49	$ 58
Unamortized stock-based compensation costs		$ 171	$ 75
Weighted average amortization period remaining*	[1]	1 year 29 days	1 year 26 days
[1]	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 March 31, 2016.

Share Based and Other Compens44

Share Based and Other Compensation (Details 1)	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Summary of restricted stock grant activity
Granted	1,000,000
Restricted Stock [Member]
Summary of restricted stock grant activity
Outstanding at January 1, 2016	1,869,000
Granted	100,000
Vested and issued	(108,334)
Forfeited or cancelled	(66,666)
Outstanding at March 31, 2016	1,794,000
Weighted Average Grant Date Price
Weighted Average Exercise Price, Outstanding at January 1, 2016 | $ / shares	$ 1.23
Granted | $ / shares	0.18
Vested and issued | $ / shares	(1.87)
Forfeited or cancelled | $ / shares	(1.65)
Weighted Average Exercise Price, Outstanding at March 31, 2016 | $ / shares	$ 1.12

Share Based and Other Compens45

Share Based and Other Compensation (Details 2) - Stock Option [Member]	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Number of Options
Outstanding at January 1, 2016	6,083,333
Granted	450,000
Exercised
Forfeited or cancelled	(300,000)
Outstanding at March 31, 2016	6,233,333
Weighte Average Exercise Price
Weighted Average Exercise Price, Outstanding at January 1, 2016 | $ / shares	$ 1.46
Granted | $ / shares	$ 1.46
Exercised | $ / shares
Forfeited or cancelled | $ / shares	$ (1.93)
Weighted Average Exercise Price, Outstanding at March 31, 2016 | $ / shares	$ 1.27
Stock Options Outstanding and Exercisable Number of Options Vested/ Exercisable
Outstanding
Granted
Exercised
Forfeited or cancelled
Outstanding	4,133,335
Stock Options Outstanding and Exercisable Weighted Average Remaining Contractual Life (Years)
Forfeited or cancelled	2 years 11 months 5 days

Share Based and Other Compens46

Share Based and Other Compensation (Details Textual) - USD ($)	Jan. 13, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 29, 2015	Nov. 13, 2013	Jun. 27, 2013
Share Based and Other Compensation (Textual)
Grant of restricted shares		1,000,000
Recognized over a weighted-average remaining service period		1 year 29 days
Unrecognized compensation cost		$ 274,999
Non-employee director compensation expenses		49,000	$ 58,000
Outstanding unrecognized compensation costs		$ 1,700,000
Share based compensation vesting period		1 year 11 months 16 days
Amortization cost		$ 192,000	$ 555,000
Options exercisable		4,133,335
Options expected to vest		2,099,998
Total fair value		$ 171,000
Stock Options Vested Immediately [Member]
Share Based and Other Compensation (Textual)
Stock grants to non-employee and director	250,000
Exercise price	$ 0.18
Expected life	5 years
Risk free rate	1.51%
Volatility rate	192.13%
Share based compensation total value	$ 44,000
Stock price	$ 0.18
Stock Options Vested Over Three Years [Member]
Share Based and Other Compensation (Textual)
Stock grants to non-employee and director	200,000
Exercise price	$ 0.18
Expected life	7 years
Risk free rate	1.85%
Volatility rate	192.13%
Share based compensation total value	$ 36,000
Stock price	$ 0.18
Employees And Directors [Member]
Share Based and Other Compensation (Textual)
Grant of restricted shares		1,594,002
Restricted Stock [Member]
Share Based and Other Compensation (Textual)
Grant of restricted shares		100,000
Purchase common shares outstanding to employees and directors		1,794,000		1,869,000
Restricted stock units issued		100,000
Restricted stock shares forfeited		66,666
Stock Option [Member]
Share Based and Other Compensation (Textual)
Grant of restricted shares		4,800,000
Purchase common shares outstanding to employees and directors		6,233,333		6,083,333
Restricted stock units issued		450,000
Restricted stock shares forfeited		300,000
Stock grants to non-employee and director		450,000
Equity Incentive Plan [Member]
Share Based and Other Compensation (Textual)
Grant of restricted shares		1,200,000
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			10,000,000	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			6,800,000	1,800,000	900,000

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Millions	May. 06, 2016	May. 04, 2016	Mar. 18, 2016	Mar. 31, 2016
Subsequent Events (Textual)
Principal amount			$ 500,000
Debt maturity date			Apr. 1, 2017	Jun. 30, 2016
Warrants to purchase common stock			2
Warrants exercise price, per share				$ 0.01
Subsequent Event [Member]
Subsequent Events (Textual)
Principal amount	$ 1,300,000	$ 87,000
Debt maturity date	Apr. 1, 2017	May 31, 2016
Fees and expenses		$ 53,000
Warrants to purchase common stock	5
Warrants exercise price, per share	$ 0.01
Warrant, Description	Additionally, certain of these Purchasers received amended and restated warrants to purchase an aggregate amount of up to approximately 2.6 million shares of Common Stock, which were amended to reduce the exercise price on each of the warrants, which had been issued in previous transactions during the years 2014 and 2013 from $4.25, in the case of approximately 800,000 warrants and $2.50 in the case of the remainder to $0.01, which were all subsequently exercised.
Convertible Debt [Member] | Minimum [Member] | Subsequent Event [Member]
Subsequent Events (Textual)
Warrants exercise price, per share	$ 0.01
Convertible Debt [Member] | Maximum [Member] | Subsequent Event [Member]
Subsequent Events (Textual)
Warrants exercise price, per share	$ 0.25