Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2015 | Nov. 01, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | RED MOUNTAIN RESOURCES, INC. | |
Entity Central Index Key | 1,483,496 | |
Current Fiscal Year End Date | --06-30 | |
Trading Symbol | RDMP | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Wel Known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Common Stock, Shares Outstanding | 14,857,488 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2015 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2015 | Jun. 30, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 1,175 | $ 1,682 |
Accounts receivable - oil and natural gas sales | 2,341 | 3,186 |
Accounts receivable - joint interest | 683 | 1,645 |
Prepaid expenses and other current assets | 671 | 527 |
Commodities derivative asset - current | 292 | 37 |
Assets held for sale | 25,000 | |
Deferred tax asset - current | 368 | |
Total current assets | 30,162 | 7,445 |
Long-Term Investments: | ||
Debentures - held to maturity | 927 | 4,820 |
Oil and Natural Gas Properties, Successful Efforts Method: | ||
Proved properties | 49,621 | 82,362 |
Unproved properties | 10,397 | 19,109 |
Other property and equipment | 1,218 | 1,196 |
Less accumulated depreciation, depletion and impairment | (30,478) | (19,497) |
Oil and natural gas properties, net | 30,759 | 83,170 |
Other Assets: | ||
Commodities derivative asset, net of current portion | 106 | |
Restricted cash, long-term | 474 | 493 |
Debt issuance costs, net of current portion | 746 | 1,101 |
Security deposit and other assets | 58 | 197 |
Total Assets | 63,232 | 97,226 |
Current Liabilities: | ||
Accounts payable | 10,498 | 3,536 |
Revenues payable | 930 | 1,673 |
Preferred dividend payable | 390 | 179 |
Accrued expenses | 1,945 | 2,035 |
Line of credit, current | 27,450 | |
Commodities derivative liability | 121 | |
Asset retirement obligation - current | 2,917 | 214 |
Environmental remediation liability- current | 2,057 | 2,067 |
Total current liabilities | 46,187 | 9,825 |
Long-Term Liabilities: | ||
Line of credit, net of current portion | 26,800 | |
Mandatorily redeemable preferred stock, net of discount of $1,270 and $1,561, respectively | 5,092 | 4,801 |
Commodities derivative liability | $ 186 | |
Environmental remediation liability, net of current portion | ||
Deferred tax liability - long-term | 409 | |
Asset retirement obligation, net of current portion | $ 2,917 | 5,531 |
Total long-term liabilities | 8,195 | 37,541 |
Total Liabilities | 54,382 | 47,366 |
Stockholders' Equity: | ||
Common stock, $0.00001 par value; 50,000 shares authorized; 14,857 shares issued and outstanding as of March 31, 2015 and June 30, 2014 | 1 | 1 |
Noncontrolling interest | 3,211 | 6,076 |
Additional paid-in capital | 78,105 | 78,105 |
Accumulated deficit | (72,467) | (34,322) |
Total stockholders' equity | 8,850 | 49,860 |
Total Liabilities and Stockholders' Equity | $ 63,232 | $ 97,226 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2015 | Jun. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Discount on mandatorily redeemable preferred stock (in dollars) | $ 1,270 | $ 1,561 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized shares | 50,000 | 50,000 |
Common stock, issued shares | 14,857 | 14,857 |
Common stock, outstanding shares | 14,857 | 14,857 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Revenue: | ||||
Oil and natural gas sales | $ 2,547 | $ 5,270 | $ 11,209 | $ 15,511 |
Operating Expenses: | ||||
Exploration expense | 135 | 515 | 1,396 | 943 |
Production taxes | 249 | 386 | 904 | 1,564 |
Lease operating expenses | 981 | 633 | 3,226 | 2,088 |
Natural gas transportation and marketing expenses | 40 | 43 | 177 | 117 |
Depreciation, depletion, amortization and impairment | 2,665 | 2,460 | 35,675 | 6,712 |
Accretion of discount on asset retirement obligation | 33 | 64 | 100 | 199 |
General and administrative expense | 1,577 | 1,993 | 5,689 | 5,852 |
Total operating expenses | 5,680 | 6,094 | 47,167 | 17,475 |
Loss from Operations | (3,133) | (824) | (35,958) | $ (1,964) |
Other Income (Expense): | ||||
Interest income | ||||
Interest expense | (692) | (902) | (2,047) | $ (2,717) |
Unrealized loss on debentures | (3,787) | |||
Unrealized (loss) gain on commodity derivatives | (183) | (41) | 782 | (272) |
Realized (loss) gain on commodity derivatives | (23) | (74) | ||
Total Other Expense | (875) | (966) | (5,052) | (3,063) |
Loss Before Income Taxes | (4,008) | (1,790) | (41,010) | $ (5,027) |
Income tax provision | ||||
Net loss | (4,008) | (1,790) | (41,010) | $ (5,027) |
Net income (loss) attributable to non-controlling interest | (274) | 194 | (2,865) | 437 |
Net loss attributable to Red Mountain Resources, Inc | $ (3,734) | $ (1,984) | $ (38,145) | $ (5,464) |
Basic and diluted net loss per common share (in dollars per share) | $ (0.25) | $ (0.15) | $ (2.57) | $ (0.41) |
Basic and diluted weighted average common shares outstanding (in shares) | 14,857 | 13,422 | 14,857 | 13,237 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash Flow From Operating Activities: | ||
Net loss | $ (41,010) | $ (5,027) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion, amortization and impairment | 35,675 | 6,712 |
Amortization of debt issuance costs | 646 | 1,215 |
Accretion of discount on asset retirement obligation | 100 | 199 |
Impairment of debentures | 3,787 | |
Change in fair value of derivative liability | (295) | (18) |
Settlement of environmental liabilities | (11) | |
Dividend accrued for mandatorily redeemable preferred stock | 211 | 298 |
Change in fair value of commodity derivatives | 146 | |
Change in deferred taxes | (41) | |
Change in working capital: | ||
Accounts receivable - oil and natural gas sales | 845 | 1,592 |
Accounts receivable - other | 962 | $ 373 |
Accounts receivable - related party | ||
Prepaid expenses and other assets | (4) | $ 550 |
Accounts payable | (176) | $ (2,653) |
Accounts payable - related party | ||
Restricted cash | 19 | $ (13) |
Accrued expenses | (102) | 1,153 |
Net cash provided by operating activities | 617 | 4,516 |
Cash Flow From Investing Activities: | ||
Additions to oil and natural gas properties | (1,822) | (16,259) |
Interest received on debentures | 106 | |
Additions to other property and equipment | (22) | (153) |
Settlement of asset retirement obligations | (36) | |
Net cash used in investing activities | (1,774) | (16,412) |
Cash Flow From Financing Activities: | ||
Proceeds from issuance of common stock, net of issuance costs | 3,605 | |
Proceeds from issuance of preferred stock, net of issuance costs | $ 7,068 | |
Exercise of warrants | ||
Draws on line of credit | 1,000 | $ 9,000 |
Payments on line of credit | (350) | $ (5,000) |
Proceeds from notes payable | ||
Payments on notes payable | $ (2,000) | |
Net cash provided by financing activities | 650 | 12,673 |
Net change in cash and equivalents | (507) | 777 |
Cash at beginning of period | 1,682 | 456 |
Cash at end of period | $ 1,175 | $ 1,233 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest | ||
Non-Cash Transactions | ||
Change in asset retirement obligation estimate | $ 8 | |
Issuance of shares for debentures | 541 | |
Issuance of shares to brokers | $ 2,395 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - 9 months ended Mar. 31, 2015 - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Noncontrolling Interest [Member] | Total |
Balance at beginning at Jun. 30, 2014 | $ 1,487 | $ 78,105 | $ (34,322) | $ 6,076 | $ 49,860 |
Balance at beginning (in shares) at Jun. 30, 2014 | 14,857 | 14,857 | |||
Net loss | (38,145) | (2,865) | $ (41,010) | ||
Balance at ending at Mar. 31, 2015 | $ 1,487 | $ 78,105 | $ (72,467) | $ 3,211 | $ 8,850 |
Balance at ending (in shares) at Mar. 31, 2015 | 14,857 | 14,857 |
Organization
Organization | 9 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization Red Mountain Resources, Inc. is a Texas corporation formed on January 23, 2014. On January 31, 2014, the Company changed its state of incorporation from the State of Florida to the State of Texas by merging Red Mountain Resources, Inc., a Florida corporation (RMR FL), with and into Red Mountain Resources, Inc., a Texas corporation. RMR FL was formed in January 2010 and acquired Black Rock Capital, LLC in a reverse merger effective July 1, 2011. Unless the context otherwise requires, the terms Red Mountain and Company refer to Red Mountain Resources, Inc. and its consolidated subsidiaries. The Company is a Dallas-based company with oil and natural gas properties in the Permian Basin of West Texas and Southeast New Mexico, the onshore Gulf Coast of Texas and Kansas. |
Going Concern
Going Concern | 9 Months Ended |
Mar. 31, 2015 | |
Going Concern | |
Going Concern | 2. Going Concern These consolidated financial statements have been prepared on the basis of accounting principles applicable to a going concern. These principles assume that the Company will be able to realize its assets and discharge its obligations in the normal course of operations for the foreseeable future. The Company incurred a net loss of $38.1 million during the nine months ended March 31, 2015. At March 31, 2015, the outstanding principal amount of the Companys debt was $32.5 million, net of an aggregate discount of $1.3 million, and the Company had a working capital deficit of $16.0 million. Of the outstanding debt, $27.5 million is outstanding under the Companys Credit Facility (as defined below). Of the $16.0 million working capital deficit at March 31, 2015, $27.5 million relates to outstanding borrowings under the Companys Credit Facility, which is classified as a short-term liability on its Consolidated Balance Sheets as of March 31, 2015. The Company is currently in default under the Credit Facility, and the lender has the right to accelerate all amounts outstanding under the Credit Facility upon notice to the borrowers. The Company is in discussions with the lender regarding either a waiver of the non-compliance or an amendment to the credit agreement to cure the non-compliance. While the Company anticipates obtaining a waiver from the lender, it cannot provide any assurance that these negotiations will be successful. The Company is exploring available financing options, including the sale of debt or equity. If the Company is unable to finance its operations on acceptable terms or at all, its business, financial condition and results of operations may be materially and adversely affected. As a result of recurring losses from operations and a working capital deficiency, there is substantial doubt regarding the Companys ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amount and classification of liabilities that may result from the possible inability of the Company to continue as a going concern. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The condensed consolidated financial statements include the accounts of Red Mountain Resources, Inc. and its subsidiaries. The condensed consolidated financial statements and related footnotes are presented in accordance with generally accepted accounting principles in the United States (GAAP). The Company has prepared the accompanying unaudited interim financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC), and in the opinion of management, such financial statements reflect all adjustments necessary to present fairly the consolidated financial position of the Company at March 31, 2015 and its results of operations and cash flows for the periods presented. The Company has omitted certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP pursuant to those rules and regulations, although the Company believes that the disclosures it has made are adequate to make the information presented not misleading. These unaudited interim financial statements should be read in conjunction with the Companys audited consolidated financial statements and related footnotes included in its most recent Annual Report on Form 10-K. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the financial statements and disclosures. The results of operations for the interim periods are not necessarily indicative of the results the Company expects for the full fiscal year. The Company has not made any changes in its significant accounting policies from those disclosed in its most recent Annual Report on Form 10-K. The Company effected a reverse stock split of its outstanding common stock at a ratio of one-for-ten (1:10) on January 31, 2014. Retroactive application of the reverse stock split is required and all share and per share information included for all periods presented in these financial statements reflect the reverse stock split. Business Combinations The Company accounts for business combinations under the acquisition method of accounting in accordance with Accounting Standards Codification (ASC) Topic 805, Business Combinations Noncontrolling Interests Subsequent to January 28, 2013, the Company accounts for the noncontrolling interest in Cross Border in accordance with ASC Topic 810, Consolidation Investments in Non-Performing Debentures The Companys investments in non-performing debentures were initially recorded at cost which the Company believes was fair value. Management estimated cash flows expected to be collected considering the contractual terms of the loans, the nature and estimated fair value of collateral, and other factors it deemed appropriate. The estimated fair value of the loans at acquisition was significantly less than the contractual amounts due under the terms of the loan agreements. Since, at the acquisition date, the Company expected to collect less than the contractual amounts due under the terms of the loans based, at least in part, on the assessment of the credit quality of the borrower, the loans are accounted for in accordance with ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality Debentures are classified as non-accrual when management is unable to reasonably estimate the timing or amount of cash flows expected to be collected from the debentures or has serious doubts about further collectability of principal or interest. As of March 31, 2015 and June 30, 2014, all of the Companys debentures were on non-accrual status since the borrower remains under the supervision of the bankruptcy court. The Company periodically re-evaluates cash flows expected to be collected for each debenture based upon all available information as of the measurement date. Subsequent increases in cash flows expected to be collected are recognized prospectively through an adjustment to the debentures yield over its remaining life, which may result in a reclassification from non-accretable difference to accretable yield. Subsequent decreases in cash flows expected to be collected are evaluated to determine whether a provision for loan loss should be established. If decreases in expected cash flows result in a decrease in the estimated fair value of the debenture below its amortized cost, the debenture is deemed to be impaired, and the Company will record a provision for impairment to write the debenture down to its estimated fair value. The Company recorded impairment on the debentures of approximately $3.8 million during the nine months ended March 31, 2015 while the Company did not record any impairment expense on the debentures during the nine months ended March 31, 2014. The Companys investments in non-performing debentures are classified as held to maturity because the Company has the intent and ability to hold them until maturity. Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, Reporting Discontinued Operations and Disclosures of Components of an Entity (ASU 2014-08). ASU 2014-08 revises the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entitys operations and financial results, removing the lack of continuing involvement criteria and requiring discontinued operations reporting for the disposal of an equity method investment that meets the definition of discontinued operations. The update also requires expanded disclosures for discontinued operations, including disclosure of pretax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. The update is effective prospectively to all periods beginning after December 15, 2014. Currently, the Company does not expect the adoption of ASU 2014-08 to have a material impact on our financial statements or results of operations. Effective January 1, 2016, the Company will be required to adopt the amended guidance of ASC Topic 718, Compensation - Stock Compensation The Company will be required to adopt the amended guidance either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the consolidated financial statements and to all new or modified awards thereafter. The Company does not expect the adoption of this amended guidance to impact financial results. Effective January 1, 2016, the Company will be required to adopt the amended guidance of ASC 810, which seeks to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The amended guidance changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The changes include, among others, modification of the evaluation whether limited partnerships and similar legal entities are variable interest entities or voting interest entities and elimination of the presumption that a general partner should consolidate a limited partnership. The Company will be required to adopt ASC 810 either on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the new guidance recognized at the date of initial application. The Company has not yet completed its assessment of the impact of the amended guidance on its financial statements but does not expect the adoption of this amended guidance to have a significant impact on financial results. Effective January 1, 2017, the Company will be required to adopt the new guidance of ASC Topic 606, Revenue from Contracts with Customers Revenue Recognition In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern (ASU 2014-15), an amendment to ASC Topic 205, Presentation of Financial Statements The Company has reviewed other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our results of operations, financial position and cash flows. Based on that review, we believe that none of these recent pronouncements will have a significant effect on our current or future earnings or operations. |
Oil and Natural Gas Properties
Oil and Natural Gas Properties and Other Property and Equipment | 9 Months Ended |
Mar. 31, 2015 | |
Oil and Gas Property [Abstract] | |
Oil and Natural Gas Properties and Other Property and Equipment | 3. Oil and Natural Gas Properties and Other Property and Equipment Oil and Natural Gas Properties The following table sets forth the capitalized costs under the successful efforts method for oil and natural gas properties: (in thousands) March 31, June 30, Oil and natural gas properties: Proved $ 49,621 $ 82,362 Unproved 10,398 19,109 Total oil and natural gas properties 60,019 101,471 Less accumulated depletion and impairment (29,854 ) (19,138 ) Net oil and natural gas properties capitalized costs $ 30,165 $ 82,333 During the three and nine months ended March 31, 2015 and March 31, 2014, the Company did not incur any significant exploratory drilling costs. The Company had no transfers of exploratory well costs to proved properties during the three and nine months ended March 31, 2015 and March 31, 2014. Capitalized costs related to proved oil and natural gas properties, including wells and related equipment and facilities, are evaluated for impairment based on the Companys analysis of undiscounted future net cash flows. If undiscounted future net cash flows are insufficient to recover the net capitalized costs related to proved properties, then the Company recognizes an impairment charge in income equal to the difference between the carrying value and the estimated fair value of the properties. Estimated fair values are determined using discounted cash flow models. The discounted cash flow models include managements estimates of future oil and natural gas production, operating and development costs and discount rates. The Company recorded an impairment of approximately $29.1 million during the nine months ended March 31, 2015. Assets are classified as held for sale when the Company commits to a plan to sell the assets and there is reasonable certainty that the sale will take place within one year. Upon classification as held for sale, long-lived assets are no longer depreciated or depleted, and a measurement for impairment is performed to identify and expense any excess of carrying value over fair value less estimated costs to sell. The accompanying balance sheets present $25 million of assets held for sale, net of accumulated depreciation, depletion, and amortization expense, which consists of our oil and gas properties sold on April 21, 2015. |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Mar. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 4. Asset Retirement Obligations The following table summarizes the changes in the Companys asset retirement obligations (AROs) for the nine months ended March 31, 2015 and the fiscal year ended June 30, 2014: (in thousands) Nine Months Ended March 31, 2015 Fiscal Year Ended Asset retirement obligations at beginning of period $ 5,745 $ 5,020 Liabilities incurred 25 75 Liabilities settled (36 ) (2 ) Acquisitions Accretion expense 100 267 Revisions in estimated liabilities 385 Asset retirement obligations at end of period 5,834 5,745 Less: current portion 2,917 214 Long-term portion $ 2,917 $ 5,531 During fiscal year ended June 30, 2014, the Company recorded an upward revision to previous estimates for its ARO primarily due to changes in the estimated future cash outlays. There were no revisions to ARO during the nine months ended March 31, 2015. |
Derivatives
Derivatives | 9 Months Ended |
Mar. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 5. Derivatives At March 31, 2015, the Company had the following commodity derivatives positions outstanding: Commodity and Time Period Contract Volume Transacted Contract Price Crude Oil April 1, 2015 December 31, 2015 Put 5,500-7,000 Bbls/month $50.00/Bbl January 1, 2016 June 30, 2016 Put 5,000-5,500 Bbls/month $58.00/Bbl The following table summarizes the fair value of the Companys open commodity derivatives as of March 31, 2015 and June 30, 2014: Balance Sheet Location Fair Value ( in thousands) March 31, June 30, 2014 Derivatives not designated as hedging instruments Commodity derivatives Commodities derivative asset $ 292 $ 37 Commodity derivatives Commodities derivative liability $ $ (121 ) The following tables summarize the change in the fair value of the Companys commodity derivatives: Income Statement Location Three Months Ended, (in thousands) March 31, March 31, Derivatives not designated as hedging instruments Commodity derivatives Realized (loss) gain on commodity derivatives $ $ (23 ) Commodity derivatives Unrealized (loss) gain on commodity derivatives (183 ) (41 ) $ (183 ) $ (64 ) Income Statement Location Nine Months Ended, (in thousands) March 31, March 31, Derivatives not designated as hedging instruments Commodity derivatives Realized (loss) gain on commodity derivatives $ 782 $ (74 ) Commodity derivatives Unrealized (loss) gain on commodity derivatives (272 ) $ 782 $ (346 ) Unrealized gains and losses, at fair value, are included on the Companys Condensed Consolidated Balance Sheets as current or non-current assets or liabilities based on the anticipated timing of cash settlements under the related contracts. Changes in the fair value of the Companys commodity derivatives contracts are recorded in earnings as they occur and included in other income (expense) on the Companys Condensed Consolidated Statements of Operations. Realized gains and losses are also included in other income (expense) on the Companys Condensed Consolidated Statements of Operations. The Company estimates the fair values of swap contracts based on the present value of the difference in exchange-quoted forward price curves and contractual settlement prices multiplied by notional quantities. The Company internally valued the option contracts using industry-standard option pricing models and observable market inputs. The Company uses its internal valuations to determine the fair values of the contracts that are reflected on its Condensed Consolidated Balance Sheets. The Company is exposed to credit losses in the event of nonperformance by the counterparties on its commodity derivatives positions and has considered the exposure in its internal valuations. However, the Company does not anticipate nonperformance by the counterparties over the term of the commodity derivatives positions. In connection with the closing of the Senior First Lien Secured Credit Agreement (as amended, the Credit Agreement), the Company was required to enter into hedging agreements effectively hedging at least 50% of the oil volumes of the Company and its subsidiaries. At the same time, the Company entered into a Novation Agreement with BP Energy Company, LP (BP Energy) that transferred Cross Borders then-existing swap agreements to the Company. Pursuant to an Inter-Borrower Agreement between the Company and Cross Border, the Company allocates these swap agreements back to Cross Border and may allocate future hedging agreements related to Cross Borders production to Cross Border. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements Fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a companys own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. These two types of inputs are further prioritized into the following fair value input hierarchy: ● Level 1 - quoted prices for identical assets or liabilities in active markets. ● Level 2 - quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g. interest rates) and inputs derived principally from or corroborated by observable market data by correlation or other means. ● Level 3 - unobservable inputs for the asset or liability. The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety. The following table summarizes the valuation of the Companys financial assets and liabilities at March 31, 2015 and June 30, 2014: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Prices in Significant or Significant Fair Value at Assets: Commodity derivatives $ $ 292 $ $ 292 Total $ $ 292 $ $ 292 Liabilities: Asset retirement obligations (non-recurring) $ $ $ (5,834 ) $ (5,834 ) Commodity derivatives (186 ) (186 ) Environmental remediation liability (2,057 ) (2,057 ) Total $ $ (186 ) $ (7,891 ) $ (8,077 ) Fair Value Measurements at Reporting Date Using (in thousands) Quoted Prices in Significant or Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at June 30, 2014 Assets: Commodity derivatives $ $ 37 $ $ 37 Oil and gas properties impairment (nonrecurring) (487 ) (487 ) Total $ $ 37 $ (487 ) $ (450 ) Liabilities: Asset retirement obligations (non-recurring) $ $ $ (5,745 ) $ (5,745 ) Commodity derivative (121 ) (121 ) Environmental remediation liability (2,067 ) (2,067 ) Total $ $ (121 ) $ (7,812 ) $ (7,933 ) The following is a summary of changes to fair value measurements using Level 3 inputs during the period ending March 31, 2015: (in thousands) Environmental Balance, June 30, 2014 $ (2,067 ) Acquisitions Settlement of liabilities 10 Balance, March 31, 2015 $ (2,057 ) |
Debt
Debt | 9 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt As of the dates indicated, the Companys debt consisted of the following: (in thousands) March 31, June 30, Credit Facility $ 27,450 $ 26,800 Mandatorily redeemable preferred stock, net of discount of $1,270 and $1,561, respectively 5,092 4,801 Total debt 32,542 31,601 Less: short-term portion 27,450 Long-term debt $ 5,092 $ 31,601 Credit Facility On February 5, 2013, the Company entered into the Credit Agreement with Cross Border, Black Rock Capital, Inc. and RMR Operating, LLC (collectively with the Company, the Borrowers) and Independent Bank, as the lender (the Lender). The Credit Agreement provides for a revolving credit facility (as amended, the Credit Facility) with a maturity date of February 5, 2016. The borrowing base under the Credit Facility is determined at the discretion of the Lender based on, among other things, the Lenders estimated value of the proved reserves attributable to the Borrowers oil and natural gas properties that have been mortgaged to the Lender, and is subject to regular redeterminations on September 30 and March 31 of each year, and interim redeterminations described in the Credit Agreement and potentially monthly commitment reductions, in each case which may reduce the amount of the borrowing base. As of March 31, 2015, the borrowing base was $30.0 million. A portion of the Credit Facility, in an aggregate amount not to exceed $2.0 million, may be used to issue letters of credit for the account of Borrowers. The Borrowers may be required to prepay the Credit Facility in the event of a borrowing base deficiency as a result of over-advances, sales of oil and gas properties or terminations of hedging transactions. Amounts outstanding under the Credit Facility bear interest at a rate per annum equal to the greater of (x) the U.S. prime rate as published in The Wall Street Journals Money Rates table in effect from time to time and (y) 4.0% (4.0% at March 31, 2015). Interest is payable monthly in arrears on the last day of each calendar month. Borrowings under the Credit Facility are secured by first priority liens on substantially all the property of each of the Borrowers and are unconditionally guaranteed by Doral West Corp. and Pure Energy Operating, Inc., each a subsidiary of Cross Border. Under the Credit Agreement, the Borrowers are required to pay fees consisting of (i) an unused facility fee equal to 0.5% multiplied by the average daily unused commitment amount, payable quarterly in arrears until the commitment is terminated; (ii) a fronting fee payable on the date of issuance of each letter of credit and annually thereafter or on the date of any increase or extension thereof, equal to the greater of (a) 2.0% per annum multiplied by the face amount of such letter of credit or (b) $1,000; and (iii) an origination fee (x) of $200,000, and (y) payable on any date the commitment is increased, an additional facility fee equal to 1.0% multiplied by any increase of the commitment above the highest previously determined or redetermined commitment. The Credit Agreement contains negative covenants that may limit the Borrowers ability to, among other things, incur liens, incur additional indebtedness, enter into mergers, sell assets, make investments and pay dividends. The Credit Agreement permits the payment of cash dividends on the Companys 10.0% Series A Cumulative Redeemable Preferred Stock (the Series A Preferred Stock) so long as the Company is not otherwise in default under the Credit Agreement and payment of such cash dividends would not cause the Company to be in default under the Credit Agreement. The Credit Agreement also contains financial covenants, measured as of the last day of each fiscal quarter of Red Mountain, requiring the Borrowers to maintain a ratio of (i) the Borrowers and their consolidated subsidiaries consolidated current assets (inclusive of the unfunded commitment amount under the Credit Agreement) to consolidated current liabilities (exclusive of the current portion of long-term debt under the Credit Agreement) of at least 1.00 to 1.00; (ii) the Borrowers and their subsidiaries consolidated Funded Debt to consolidated EBITDAX (for the four fiscal quarter period then ended) of less than 3.50 to 1.00; and (iii) the Borrowers and their subsidiaries consolidated EBITDAX less paid and accrued dividends on the Series A Preferred Stock to interest expenses (each for the four fiscal quarter period then ended) of at least 3.00 to 1.00. Funded Debt is defined in the Credit Agreement as the sum of all debt for borrowed money, whether as a direct or reimbursement obligor, but excludes shares of Series A Preferred Stock. EBITDAX is defined in the Credit Agreement as (a) consolidated net income plus (b) (i) interest expense, (ii) income taxes, (iii) depreciation, (iv) depletion and amortization expenses, (v) dry hole and exploration expenses, (vi) non-cash losses or charges on any hedge agreements resulting from derivative accounting, (vii) extraordinary or non-recurring losses, (viii) expenses that could be capitalized under GAAP but by election of Borrowers are being expensed for such period under GAAP, (ix) costs associated with intangible drilling costs, (x) other non-cash charges, (xi) one-time expenses associated with transactions associated with (b)(i) through (iv), minus (c)(i) non-cash income on any hedge agreements resulting from FASB Statement 133, (ii) extraordinary or non-recurring income, and (iii) other non-cash income. Amounts outstanding under the Credit Facility may be accelerated and become immediately due and payable upon specified events of default of Borrowers, including, among other things, a default in the payment of principal, interest or other amounts due under the Credit Facility, certain loan documents or hydrocarbon hedge agreements, failure to perform or observe covenants under the Credit Facility, a material inaccuracy of a representation or warranty, a default with regard to certain loan documents which remains unremedied for a period of 30 days following notice, a default in the payment of other indebtedness of the Borrowers of $200,000 or more, bankruptcy or insolvency, certain changes in control, failure of the Lenders security interest in any portion of the collateral with a value greater than $500,000, cessation of any security document to be in full force and effect, or Alan Barksdale ceasing to be Red Mountains Chief Executive Officer or Chairman of Cross Border and not being replaced with an officer acceptable to the Lender within 30 days. Pursuant to the Credit Agreement, at least one of the Borrowers is required to have acceptable hydrocarbon hedge agreements in place at all times effectively hedging at least 50% of the oil volumes of the Borrowers, derived from the most recent third party engineering report received by Lender covering a period of not less than eighteen (18) consecutive months. As of March 31, 2015, the Borrowers had collectively borrowed $27.5 million and had no availability under the Credit Facility. The Company was not in compliance with all of the financial covenants and the hedge agreement covenant under the Credit Facility described above at March 31, 2015, which constitutes an event of default under the Credit Facility, and the Lender has the right to accelerate all amounts outstanding under the Credit Facility upon notice to the Borrowers. As a result, the Company has included a going concern note in its consolidated financial statements. The Company has recorded the full amount of its outstanding borrowings under the Credit Facility as a current liability on its Consolidated Balance Sheet as of March 31, 2015 because the facility matures in February 2016. Mandatorily Redeemable Preferred Stock The Companys Series A Preferred Stock is mandatorily redeemable and is not convertible into shares of the Companys common stock. The Company classifies the Series A Preferred Stock as a long-term liability, and the Company records dividends paid or accrued as interest expense in the Companys Condensed Consolidated Statement of Operations. Because the Company is in default under the Credit Facility, as described above, it cannot pay dividends on the Series A Preferred Stock. In August 2013, the Company closed offerings of 476,687 Units (the Units), including 100,002 Units sold in cancellation of $2.3 million in debt under convertible notes payable to Hohenplan Privatstiftung and SST Advisors, Inc., raising net proceeds of $7.1 million. Each Unit consisted of one share of Series A Preferred Stock and one warrant to purchase up to 2.5 shares of common stock at a price of $22.50 per Unit. The warrants are exercisable until the earlier of (i) August 2016 or (ii) the first trading day that is at least 30 days after the date that the Company has provided notice to the holders of the warrants by filing a Current Report on Form 8-K stating that the common stock has (A) achieved a 20 trading day volume weighted average price of $15.00 per share or more and (B) traded, in the aggregate, 300,000 shares or more over the same 20 consecutive trading days for which the 20 trading day volume weighted average price was calculated; provided, that clause (ii) shall only be applicable so long as a warrant is exercisable for shares of common stock. The warrants have an exercise price of $10.00 per share. The warrants issued with the Series A Preferred Stock were valued at $2.4 million. The value of the warrants is treated as a discount to the Series A Preferred Stock and will be accreted over the life of the mandatorily redeemable preferred stock. Management determined the fair value using a probability weighted Black-Scholes option model with a volatility based on the historical closing price of common stock of industry peers and the closing price of the Companys common stock on the OTCBB on the date of issuance. The volatility and remaining term was approximately 55% and three years, respectively. The Series A Preferred Stock is mandatorily redeemable on July 15, 2018 at $25.00 per share, plus accrued and unpaid dividends to the redemption date, for a total redeemable value of $11.9 million at the time of issuance. The difference between the $11.9 million redeemable value and the $10.8 million of gross proceeds and canceled debt is treated as a discount and will be accreted over the life of the Series A Preferred Stock. As of March 31, 2015, the Company had 254,463 shares of Series A Preferred Stock outstanding. For the three and nine months ended March 31, 2015, the Company recognized total interest expense of $0.3 million and $1.0 million, respectively, related to the Series A Preferred Stock, which includes accretion of discount and amortization of issuance costs of $0.1 million and $0.4 million for the three and nine months ended March 31, 2015, respectively. Schedule of Future Debt Payments The following is a schedule by fiscal year of future principal payments required under the Companys outstanding debt as of March 31, 2015: (in thousands) Fiscal Years Ending June 30, 2016 $ 27,450 2017 2018 2019 6,362 Total 33,812 Discount (1,270 ) Total, net value $ 32,542 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 8. Earnings Per Share The Company reports basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive. The following are reconciliations of the numerators and denominators of basic and diluted earnings per share: Three Months Ended Nine Months Ended (dollars in thousands, except per share amounts) March 31, March March 31, March Net loss (numerator): Net loss basic $ (3,734 ) $ (1,984 ) $ (38,145 ) $ (5,464 ) Weighted average shares (denominator): Weighted average shares basic 14,857 13,422 14,857 13,237 Dilution effect of share-based compensation, treasury method(1) Weighted average shares diluted 14,857 13,422 14,857 13,237 Loss per share: Basic $ (0.25 ) $ (0.15 ) $ (2.57 ) $ (0.41 ) Diluted $ (0.25 ) $ (0.15 ) $ (2.57 ) $ (0.41 ) (1) Warrants to purchase approximately 1,553,560, shares of the Companys common stock were excluded from this calculation during the three and nine months ended March 31, 2015 and 2014 because they were anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Litigation On May 4, 2011, Clifton M. (Marty) Bloodworth filed a lawsuit in the State District Court of Midland County, Texas, against Doral West Corp. d/b/a Doral Energy Corp. and Everett Willard Gray II. Mr. Bloodworth alleges that Mr. Gray, as CEO of Cross Border, made false representations which induced Mr. Bloodworth to enter into an employment contract that was subsequently breached by Cross Border. The claims that Mr. Bloodworth has alleged are: breach of his employment agreement with Doral West Corp, common law fraud, civil conspiracy breach of fiduciary duty, and violation of the Texas Deceptive Trade Practices-Consumer Protection Act. Mr. Bloodworth is seeking damages of approximately $280,000. Mr. Gray and Cross Border deny that Mr. Bloodworths claims have any merit. Cross Border was previously party to an engagement letter, dated February 7, 2012 (the Engagement Letter) with KeyBanc Capital Markets Inc. (KeyBanc) pursuant to which KeyBanc was to act as exclusive financial advisor to Cross Borders board of directors in connection with a possible Transaction (as defined in the Engagement Letter). The Engagement Letter was formally terminated by Cross Border on August 21, 2012. The Engagement Letter provided that KeyBanc would be entitled to a fee upon consummation of a Transaction within a certain period of time following termination of the Engagement Letter. On May 16, 2013, KeyBanc delivered an invoice to Cross Border representing a fee and out-of-pocket expenses purportedly owed by Cross Border to KeyBanc as a result of the consummation of a purported Transaction that KeyBanc asserts had been consummated within the required time period. Cross Border disputed that any Transaction was consummated and that KeyBanc was entitled to any fees or out-of-pocket expenses. Cross Border filed a complaint seeking (i) a declaration that it was not liable to KeyBanc for any amounts in connection with the Engagement Letter, (ii) attorneys fees, and (iii) costs of suit. KeyBanc filed a counterclaim seeking (i) compensatory damages, (ii) interest, (iii) expenses and court costs, and (iv) reasonable and necessary attorneys fees. The matter was originally filed in the 44th Judicial District Court for the State of Texas, Dallas County but was subsequently removed to the United States District Court for the Northern District of Texas, Dallas Division. On August 26, 2014, Cross Border entered into a settlement agreement with KeyBanc, settling a lawsuit between the parties. In connection with the settlement, Cross Border agreed to pay KeyBanc $900,000 in three equal installments of $300,000 each on or before August 28, 2014, October 31, 2014 and December 31, 2014, and the parties agreed to mutual releases of liability related to the Engagement Letter. The Company fully accrued this amount at June 30, 2014. In addition to the foregoing, in the ordinary course of business, the Company is periodically a party to various litigation matters that it does not believe will have a material adverse effect on its results of operations or financial condition. Environmental issues The Company is subject to federal and state laws and regulations relating to the protection of the environment. Environmental risk is inherent in all oil and natural gas operations, and the Company could be subject to environmental cleanup and enforcement actions. The Company manages this environmental risk through appropriate environmental policies and practices to minimize the impact to the Company. As of December 31, 2014, the Company had approximately $2.1 million in environmental remediation liabilities related to Cross Borders operated Tom Tom and Tomahawk fields located in Chaves and Roosevelt counties in New Mexico. In February 2013, the Bureau of Land Management (BLM) accepted Cross Borders remediation plan for the Tom Tom and Tomahawk fields. Cross Border is working in conjunction with the BLM to initiate remediation on a site-by-site basis. This is managements best estimate of the costs of remediation and restoration with respect to these environmental matters, although the ultimate cost could differ materially. Inherent uncertainties exist in these estimates due to unknown conditions, changing governmental regulation, and legal standards regarding liability, and emerging remediation technologies for handling site remediation and restoration. Cross Border has incurred approximately $43,000 in costs and expects to incur the remaining expenditures during the Companys fiscal year ending June 30, 2016. Leases As of March 31, 2015, the Company rented various office spaces in Dallas, Texas and Midland, Texas under non-cancelable lease agreements. In the aggregate, these leases cover approximately 16,884 square feet at a cost of approximately $24,000 per month and have remaining lease terms of 18 months. The following is a schedule by year of future minimum rental payments required under these lease arrangements as of March 31, 2015: (in thousands) Fiscal Years Ending June 30, 2015 $ 44 2016 181 2017 45 2018 2019 Total $ 270 Rent expense under the Companys lease arrangements amounted to approximately $41,000 and $67,000 for the three months ended March 31, 2015 and March 31, 2014 respectively. Rent expense under the Companys lease arrangements amounted to approximately $123,000 and $200,000 for the nine months ended March 31, 2015 and March 31, 2014 respectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions Enerstar Resources O&G, LLC (Enerstar), a company owned by Tommy Folsom, the former Executive Vice President and Director of Exploration and Production for RMR Operating, LLC, a subsidiary of the Company, and formerly the Executive Vice President and Director of Exploration and Production for the Company, owns an overriding royalty interest in the Companys Madera Prospect. During the three and nine months ended March 31, 2015, the Company paid royalties of approximately $2,775 and $7,200, respectively, to Enerstar. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events Purchase and Sale Agreement On April 21, 2015, RMR Operating, Black Rock, RMR KS Holdings, LLC (RMR KS) and Cross Border (together with RMR Operating, Black Rock and RMR KS, the Operating Subsidiaries) entered into a purchase and sale agreement (the PSA) with Black Shale Minerals, LLC (Buyer). Each of the Operating Subsidiaries is a subsidiary of the Company. Pursuant to the PSA, the Company, through the Operating Subsidiaries, sold, assigned, transferred and conveyed to Buyer, effective as of April 1, 2015, fifty percent (50%) of its right, title, and interest in and to certain oil and natural gas assets and properties (the Assets), including its oil and natural gas leasehold interests, wells, contracts, and oil and natural gas produced after April 1, 2015. The aggregate purchase price for the Assets under the PSA was $25.0 million, subject to certain adjustments, including post-closing adjustments for any title or environmental benefits or title or environmental defects resulting from Buyers title and environmental reviews. The PSA contains customary representations, warranties and covenants. Pursuant to the PSA, the Company and Buyer have agreed to indemnify each other, their respective affiliates and their respective employees, officers, directors, managers, shareholders, members, partners, or representatives from and against all losses that such indemnified parties incur arising from any breach of representations, warranties or covenants in the PSA and certain other matters. Fourth Amendment to the Credit Agreement In conjunction with the PSA, on April 21, 2015, the Borrowers entered into an amendment (the Fourth Amendment) to the Credit Agreement with the Lender. Pursuant to the Fourth Amendment, the borrowing base was decreased from $27.8 million to $12.4 million, effective as of April 21, 2015, and the commitment amount was decreased to $12.4 million. In addition, the monthly commitment reduction amount was set to $0 as of April 1, 2015. Fifth Amendment to the Credit Agreement Effective June 30, 2015, the Borrowers entered into an amendment and waiver (the Fifth Amendment) to the Credit Agreement with the Lender. Pursuant to the Fifth Amendment, the borrowing base was set at $12.4 million, and the initial monthly commitment reduction was set at $125,000 beginning on July 1, 2015. In addition, the Lender waived any default, event of default or right to exercise any remedy as a result of the failure by the Borrowers to be in compliance with (i) the requirements of Section 6.18 of the Credit Agreement with respect to the permitted ratio of consolidated current assets to consolidated current liabilities of Borrowers for the fiscal quarter ended December 31, 2014; and (ii) the requirements of Section 6.21 of the Credit Agreement with respect to the trade payables or other accounts payable of Borrowers that may be past due for more than 90 days for the fiscal quarter ended December 31, 2014 and the fiscal quarter ended March 31, 2015. Lease and Lease Amendment On July 31, 2015, the Company entered into an amendment and consent to assignment of lease pursuant to which the Company assigned its lease for its office space in Dallas, Texas, to a new tenant, effective as of November 1, 2015. The Company and the new tenant will be jointly and severally liable under the lease through October 1, 2016. In addition, the Company entered into a lease agreement for approximately 4100 square feet of new office space, for approximately $2700 per month and a term of three years beginning on September 1, 2015. Unwinding of Hedge Agreements On August 19, 2015, the Company unwound a portion of its commodity derivative positions for net proceeds of $18,600. Deregistration On November 13, 2015, the Companys Board of Directors voted to voluntarily deregister the Companys common stock, Series A Preferred Stock and warrants under the Exchange Act and become a non-reporting company. In connection therewith, the Board of Directors approved the filing with the SEC of a Form 15 to voluntarily deregister the Companys securities under Section 12(g) of the Exchange Act and suspend its reporting obligations under Section 15(d) of the Exchange Act. The Company expects to file the Form 15 on or about November 13, 2015. The Company expects that its obligations to file periodic reports, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, will be suspended immediately upon the filing of the Form 15 with the SEC, and its proxy statement, Section 16 and other Section 12(g) reporting responsibilities will terminate effective 90 days after the filing of the Form 15. The Company is eligible to deregister under the Exchange Act because its common stock, Series A Preferred Stock and warrants are each held by fewer than 300 shareholders of record. Arbitration Claim On August 27, 2015, the Company received a demand for arbitration with the Dallas, Texas office of the American Arbitration Association (AAA) that was filed by a former RMR employee, Tommy Folsom. The arbitration demand asserts claims for breach of contract and defamation and identifies the total claim amount as $100,000 and further seeks unspecified attorneys fees, interest, arbitration costs, and punitive/exemplary damages. The Company disputes the allegations in the arbitration proceedings made by Mr. Folsom. The parties are engaged in settlement negotiations. |
Significant Accounting Polici19
Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of Red Mountain Resources, Inc. and its subsidiaries. The condensed consolidated financial statements and related footnotes are presented in accordance with generally accepted accounting principles in the United States (GAAP). The Company has prepared the accompanying unaudited interim financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC), and in the opinion of management, such financial statements reflect all adjustments necessary to present fairly the consolidated financial position of the Company at March 31, 2015 and its results of operations and cash flows for the periods presented. The Company has omitted certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP pursuant to those rules and regulations, although the Company believes that the disclosures it has made are adequate to make the information presented not misleading. These unaudited interim financial statements should be read in conjunction with the Companys audited consolidated financial statements and related footnotes included in its most recent Annual Report on Form 10-K. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the financial statements and disclosures. The results of operations for the interim periods are not necessarily indicative of the results the Company expects for the full fiscal year. The Company has not made any changes in its significant accounting policies from those disclosed in its most recent Annual Report on Form 10-K. The Company effected a reverse stock split of its outstanding common stock at a ratio of one-for-ten (1:10) on January 31, 2014. Retroactive application of the reverse stock split is required and all share and per share information included for all periods presented in these financial statements reflect the reverse stock split. |
Business Combinations | Business Combinations The Company accounts for business combinations under the acquisition method of accounting in accordance with Accounting Standards Codification (ASC) Topic 805, Business Combinations |
Noncontrolling Interests | Noncontrolling Interests Subsequent to January 28, 2013, the Company accounts for the noncontrolling interest in Cross Border in accordance with ASC Topic 810, Consolidation |
Investments in Non-Performing Debentures | Investments in Non-Performing Debentures The Companys investments in non-performing debentures were initially recorded at cost which the Company believes was fair value. Management estimated cash flows expected to be collected considering the contractual terms of the loans, the nature and estimated fair value of collateral, and other factors it deemed appropriate. The estimated fair value of the loans at acquisition was significantly less than the contractual amounts due under the terms of the loan agreements. Since, at the acquisition date, the Company expected to collect less than the contractual amounts due under the terms of the loans based, at least in part, on the assessment of the credit quality of the borrower, the loans are accounted for in accordance with ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality Debentures are classified as non-accrual when management is unable to reasonably estimate the timing or amount of cash flows expected to be collected from the debentures or has serious doubts about further collectability of principal or interest. As of March 31, 2015 and June 30, 2014, all of the Companys debentures were on non-accrual status since the borrower remains under the supervision of the bankruptcy court. The Company periodically re-evaluates cash flows expected to be collected for each debenture based upon all available information as of the measurement date. Subsequent increases in cash flows expected to be collected are recognized prospectively through an adjustment to the debentures yield over its remaining life, which may result in a reclassification from non-accretable difference to accretable yield. Subsequent decreases in cash flows expected to be collected are evaluated to determine whether a provision for loan loss should be established. If decreases in expected cash flows result in a decrease in the estimated fair value of the debenture below its amortized cost, the debenture is deemed to be impaired, and the Company will record a provision for impairment to write the debenture down to its estimated fair value. The Company recorded impairment on the debentures of approximately $3.8 million during the nine months ended March 31, 2015 while the Company did not record any impairment expense on the debentures during the nine months ended March 31, 2014. The Companys investments in non-performing debentures are classified as held to maturity because the Company has the intent and ability to hold them until maturity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, Reporting Discontinued Operations and Disclosures of Components of an Entity (ASU 2014-08). ASU 2014-08 revises the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entitys operations and financial results, removing the lack of continuing involvement criteria and requiring discontinued operations reporting for the disposal of an equity method investment that meets the definition of discontinued operations. The update also requires expanded disclosures for discontinued operations, including disclosure of pretax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. The update is effective prospectively to all periods beginning after December 15, 2014. Currently, the Company does not expect the adoption of ASU 2014-08 to have a material impact on our financial statements or results of operations. Effective January 1, 2016, the Company will be required to adopt the amended guidance of ASC Topic 718, Compensation - Stock Compensation The Company will be required to adopt the amended guidance either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the consolidated financial statements and to all new or modified awards thereafter. The Company does not expect the adoption of this amended guidance to impact financial results. Effective January 1, 2016, the Company will be required to adopt the amended guidance of ASC 810, which seeks to improve targeted areas of the consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures. The amended guidance changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The changes include, among others, modification of the evaluation whether limited partnerships and similar legal entities are variable interest entities or voting interest entities and elimination of the presumption that a general partner should consolidate a limited partnership. The Company will be required to adopt ASC 810 either on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the new guidance recognized at the date of initial application. The Company has not yet completed its assessment of the impact of the amended guidance on its financial statements but does not expect the adoption of this amended guidance to have a significant impact on financial results. Effective January 1, 2017, the Company will be required to adopt the new guidance of ASC Topic 606, Revenue from Contracts with Customers Revenue Recognition In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern (ASU 2014-15), an amendment to ASC Topic 205, Presentation of Financial Statements The Company has reviewed other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our results of operations, financial position and cash flows. Based on that review, we believe that none of these recent pronouncements will have a significant effect on our current or future earnings or operations. |
Oil and Natural Gas Propertie20
Oil and Natural Gas Properties and Other Property and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2015 | |
Oil and Gas Property [Abstract] | |
Schedule of Capitalized Costs Relating to Oil and Gas Producing Activities | The following table sets forth the capitalized costs under the successful efforts method for oil and natural gas properties: (in thousands) March 31, June 30, Oil and natural gas properties: Proved $ 49,621 $ 82,362 Unproved 10,398 19,109 Total oil and natural gas properties 60,019 101,471 Less accumulated depletion and impairment (29,854 ) (19,138 ) Net oil and natural gas properties capitalized costs $ 30,165 $ 82,333 |
Schedule of Property, Plant and Equipment | The historical cost of other property and equipment, presented on a gross basis with accumulated depreciation and amortization is summarized as follows: (in thousands) March 31, June 30, Other property and equipment $ 1,218 $ 1,196 Less accumulated depreciation and amortization (624 ) (359 ) Net property and equipment $ 594 $ 837 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Mar. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule Of Changes in Asset Retirement Obligation | The following table summarizes the changes in the Companys asset retirement obligations (AROs) for the nine months ended March 31, 2015 and the fiscal year ended June 30, 2014: (in thousands) Nine Months Ended March 31, Fiscal Year Ended Asset retirement obligations at beginning of period $ 5,745 $ 5,020 Liabilities incurred 25 75 Liabilities settled (36 ) (2 ) Acquisitions Accretion expense 100 267 Revisions in estimated liabilities 385 Asset retirement obligations at end of period 5,834 5,745 Less: current portion 2,917 214 Long-term portion $ 2,917 $ 5,531 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Mar. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of commodity derivative positions | At March 31, 2015, the Company had the following commodity derivatives positions outstanding: Commodity and Time Period Contract Volume Transacted Contract Price Crude Oil April 1, 2015 December 31, 2015 Put 5,500-7,000 Bbls/month $50.00/Bbl January 1, 2016 June 30, 2016 Put 5,000-5,500 Bbls/month $58.00/Bbl |
Schedule of fair value of open commodity derivatives | The following table summarizes the fair value of the Companys open commodity derivatives as of March 31, 2015 and June 30, 2014: Balance Sheet Location Fair Value ( in thousands) March 31, June 30, 2014 Derivatives not designated as hedging instruments Commodity derivatives Commodities derivative asset $ 292 $ 37 Commodity derivatives Commodities derivative liability $ $ (121 ) |
Schedule of change in fair value of commodity derivatives | The following tables summarize the change in the fair value of the Companys commodity derivatives: Income Statement Location Three Months Ended, (in thousands) March 31, March 31, Derivatives not designated as hedging instruments Commodity derivatives Realized (loss) gain on commodity derivatives $ $ (23 ) Commodity derivatives Unrealized (loss) gain on commodity derivatives (183 ) (41 ) $ (183 ) $ (64 ) Income Statement Location Nine Months Ended, (in thousands) March 31, March 31, Derivatives not designated as hedging instruments Commodity derivatives Realized (loss) gain on commodity derivatives $ 782 $ (74 ) Commodity derivatives Unrealized (loss) gain on commodity derivatives (272 ) $ 782 $ (346 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of the valuation of the Company's financial assets and liabilities | The following table summarizes the valuation of the Companys financial assets and liabilities at March 31, 2015 and June 30, 2014: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Prices in Significant or Significant Fair Value at Assets: Commodity derivatives $ $ 292 $ $ 292 Total $ $ 292 $ $ 292 Liabilities: Asset retirement obligations (non-recurring) $ $ $ (5,834 ) $ (5,834 ) Commodity derivatives (186 ) (186 ) Environmental remediation liability (2,057 ) (2,057 ) Total $ $ (186 ) $ (7,891 ) $ (8,077 ) Fair Value Measurements at Reporting Date Using (in thousands) Quoted Prices in Significant or Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at June 30, 2014 Assets: Commodity derivatives $ $ 37 $ $ 37 Oil and gas properties impairment (nonrecurring) (487 ) (487 ) Total $ $ 37 $ (487 ) $ (450 ) Liabilities: Asset retirement obligations (non-recurring) $ $ $ (5,745 ) $ (5,745 ) Commodity derivative (121 ) (121 ) Environmental remediation liability (2,067 ) (2,067 ) Total $ $ (121 ) $ (7,812 ) $ (7,933 ) |
Summary of changes to fair value measurements using Level 3 inputs | The following is a summary of changes to fair value measurements using Level 3 inputs during the period ending March 31, 2015: (in thousands) Environmental Balance, June 30, 2014 $ (2,067 ) Acquisitions Settlement of liabilities 10 Balance, March 31, 2015 $ (2,057 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of debt | As of the dates indicated, the Companys debt consisted of the following: (in thousands) March 31, June 30, Credit Facility $ 27,450 $ 26,800 Mandatorily redeemable preferred stock, net of discount of $1,270 and $1,561, respectively 5,092 4,801 Total debt 32,542 31,601 Less: short-term portion 27,450 Long-term debt $ 5,092 $ 31,601 |
Schedule by fiscal year of future principal payments of debt | The following is a schedule by fiscal year of future principal payments required under the Companys outstanding debt as of March 31, 2015: (in thousands) Fiscal Years Ending June 30, 2016 $ 27,450 2017 2018 2019 6,362 Total 33,812 Discount (1,270 ) Total, net value $ 32,542 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliations of the numerators and denominators of basic and diluted earnings per share | The following are reconciliations of the numerators and denominators of basic and diluted earnings per share: Three Months Ended Nine Months Ended (dollars in thousands, except per share amounts) March 31, March March 31, March Net loss (numerator): Net loss basic $ (3,734 ) $ (1,984 ) $ (38,145 ) $ (5,464 ) Weighted average shares (denominator): Weighted average shares basic 14,857 13,422 14,857 13,237 Dilution effect of share-based compensation, treasury method(1) Weighted average shares diluted 14,857 13,422 14,857 13,237 Loss per share: Basic $ (0.25 ) $ (0.15 ) $ (2.57 ) $ (0.41 ) Diluted $ (0.25 ) $ (0.15 ) $ (2.57 ) $ (0.41 ) (1) Warrants to purchase approximately 1,553,560, shares of the Companys common stock were excluded from this calculation during the three and nine months ended March 31, 2015 and 2014 because they were anti-dilutive. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments | The following is a schedule by year of future minimum rental payments required under these lease arrangements as of March 31, 2015: (in thousands) Fiscal Years Ending June 30, 2015 $ 44 2016 181 2017 45 2018 2019 Total $ 270 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | |
Going Concern | |||||
Net loss | $ (3,734) | $ (1,984) | $ (38,145) | $ (5,464) | |
Total debt | 32,542 | 32,542 | $ 31,601 | ||
Debt discount | 1,270 | 1,270 | $ 1,561 | ||
Working capital deficit | 16,000 | ||||
Line of credit - current | $ 27,450 | $ 27,450 |
Significant Accounting Polici28
Significant Accounting Policies (Details Narrative) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Jan. 31, 2014 | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | |
Accounting Policies [Abstract] | |||
Non-accretable difference of debentures | $ 2,500 | $ 2,500 | |
Impairment on debentures | $ 3,800 | ||
Reverse stock split exchange ratio | 0.10 |
Oil and Natural Gas Propertie29
Oil and Natural Gas Properties and Other Property and Equipment (Details Narrative) $ in Thousands | 9 Months Ended |
Mar. 31, 2015USD ($) | |
Oil and Gas Property [Abstract] | |
Impairment on oil and gas properties | $ 29,100 |
Oil and Natural Gas Propertie30
Oil and Natural Gas Properties and Other Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Jun. 30, 2014 |
Oil and natural gas properties: | ||
Proved | $ 49,621 | $ 82,362 |
Unproved | 10,398 | 19,109 |
Total oil and natural gas properties | 60,019 | 101,471 |
Less accumulated depletion and impairment | (29,854) | (19,138) |
Net oil and natural gas properties capitalized costs | $ 30,165 | $ 82,333 |
Oil and Natural Gas Propertie31
Oil and Natural Gas Properties and Other Property and Equipment (Details 1) - USD ($) $ in Thousands | Mar. 31, 2015 | Jun. 30, 2014 |
Oil and Gas Property [Abstract] | ||
Other property and equipment | $ 1,218 | $ 1,196 |
Less accumulated depreciation and amortization | (624) | (359) |
Net property and equipment | $ 594 | $ 837 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset retirement obligations at beginning of period | $ 5,745 | $ 5,020 | $ 5,020 |
Liabilities incurred | 25 | 75 | |
Liabilities settled | $ (36) | $ (2) | |
Acquisitions | |||
Accretion expense | $ 100 | $ 199 | $ 267 |
Revisions in estimated liabilities | 385 | ||
Asset retirement obligations at end of period | $ 5,834 | 5,745 | |
Less: current portion | 2,917 | 214 | |
Long-term portion | $ 2,917 | $ 5,531 |
Derivatives (Details)
Derivatives (Details) | 9 Months Ended |
Mar. 31, 2015bbl / mo$ / bbl | |
Crude Oil Contract 1 [Member] | |
Derivative Time Period | April 1, 2015 December 31, 2015 |
Type | Put |
Volume transacted | 5,500-7,000 Bbls/month |
Contract Price | $ / bbl | 50 |
Volume transacted - lower | 5,500 |
Volume transacted - higher | 7,000 |
Crude Oil Contract 2 [Member] | |
Derivative Time Period | January 1, 2016 June 30, 2016 |
Type | Put |
Volume transacted | 5,000-5,500 Bbls/month |
Contract Price | $ / bbl | 58 |
Volume transacted - lower | 5,000 |
Volume transacted - higher | 5,500 |
Derivatives (Details 1)
Derivatives (Details 1) - USD ($) $ in Thousands | Mar. 31, 2015 | Jun. 30, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Commodity derivative asset - fair value | $ 292 | $ 37 |
Commodity derivative liability - fair value | $ (121) |
Derivatives (Details 2)
Derivatives (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Realized (loss) gain on commodity derivatives | $ (23) | $ 782 | $ (74) | |
Unrealized (loss) gain on commodity derivatives | $ (183) | (44) | (272) | |
Gain (loss) on derivatives | $ (183) | $ (64) | $ 782 | $ (346) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Assets | |||
Commodities derivatives | $ 292 | $ 37 | |
2009A and 2009B Debentures of O&G Leasing, LLC (nonrecurring) | 927 | 4,820 | |
Liabilities | |||
Asset retirement obligations (non-recurring) | $ (5,834) | (5,745) | $ (5,020) |
Commodities derivative liability | (121) | ||
Environmental remediation liability | |||
Fair Value [Member] | |||
Assets | |||
Commodities derivatives | $ 292 | 37 | |
Oil and gas properties impairment (nonrecurring) | (487) | ||
Total | 292 | (450) | |
Liabilities | |||
Asset retirement obligations (non-recurring) | (5,834) | (5,745) | |
Commodities derivative liability | (186) | (121) | |
Environmental remediation liability | (2,057) | (2,067) | |
Total | (8,077) | (7,933) | |
Fair Value, Inputs, Level 2 [Member] | |||
Assets | |||
Commodities derivatives | 292 | 37 | |
Total | 292 | 37 | |
Liabilities | |||
Commodities derivative liability | (186) | (121) | |
Total | (186) | (121) | |
Fair Value, Inputs, Level 3 [Member] | |||
Assets | |||
Oil and gas properties impairment (nonrecurring) | (487) | ||
Total | (487) | ||
Liabilities | |||
Asset retirement obligations (non-recurring) | (5,834) | (5,745) | |
Environmental remediation liability | (2,057) | (2,067) | |
Total | $ (7,891) | $ (7,812) |
Fair Value Measurements (Deta37
Fair Value Measurements (Details 1) $ in Thousands | 9 Months Ended |
Mar. 31, 2015USD ($) | |
Fair Value Disclosures [Abstract] | |
Balance, beginning | $ (2,067) |
Settlement of liabilities | 10 |
Balance, ending | $ (2,057) |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2015 | Jun. 30, 2014 | Feb. 05, 2013 | |
Lines of Credit (Credit facility and secured line) | |||
Line of credit outstanding amount borrowed | $ 27,450 | $ 26,800 | |
Debt instrument, unamortized discount | 1,270 | $ 1,561 | |
Credit Facility [Member] | |||
Lines of Credit (Credit facility and secured line) | |||
Current borrowing base of line of credit | $ 30,000 | ||
Interest rate description of line of credit | U.S. prime rate as published in The Wall Street Journals Money Rates table in effect from time to time and (y) 4.0% (4.0% at March 31, 2015). | ||
Interest rate of line of credit | 4.00% | ||
Line of credit fee description | Under the Credit Agreement, the Borrowers are required to pay fees consisting of (i) an unused facility fee equal to 0.5% multiplied by the average daily unused commitment amount, payable quarterly in arrears until the commitment is terminated; (ii) a fronting fee payable on the date of issuance of each letter of credit and annually thereafter or on the date of any increase or extension thereof, equal to the greater of (a) 2.0% per annum multiplied by the face amount of such letter of credit or (b) $1,000; and (iii) an origination fee (x) of $200,000, and (y) payable on any date the commitment is increased, an additional facility fee equal to 1.0% multiplied by any increase of the commitment above the highest previously determined or redetermined commitment. | ||
Unused Facility fee | 0.50% | ||
Percentage fee multiplied against face amount associated with an increase on the letter of credit | 2.00% | ||
Fee associated with an increase in letter of credit | $ 1 | ||
Origination fee | $ 200 | ||
Additional facility fee | 1.00% | ||
Required ratio of current assets to current liabilities under line of credit agreement | 100.00% | ||
Required ratio of funded debt to EBITDAX under line of credit agreement | 350.00% | ||
Required ratio of EBITDAX to interest expenses under line of credit agreement | 300.00% | ||
Line of credit default amount trigger to cause immediate payment | $ 200 | ||
Collateral security interest trigger to cause immediate payment | $ 500 | ||
Percentage of oil volume required to be effectively hedged | 50.00% | ||
Line of credit outstanding amount borrowed | $ 27,500 | ||
Credit Facility [Member] | Letter of Credit [Member] | |||
Lines of Credit (Credit facility and secured line) | |||
Maximum borrowing capacity under line of credit | $ 2,000 |
Debt (Details Narrative 1)
Debt (Details Narrative 1) $ / shares in Units, $ in Thousands | Aug. 31, 2013USD ($)N$ / shares$ / Unitsshares | Mar. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2014USD ($) | Mar. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2014USD ($) |
Units sold in period | N | 476,687 | ||||
Proceeds from units sold, net | $ 7,100 | ||||
Number of shares, per unit | shares | 1 | ||||
Number of warrants, per unit | shares | 1 | ||||
Number of shares, per warrant | shares | 2.5 | ||||
Exercise price, warrants | $ / shares | $ 22.50 | ||||
Exercise price, units | $ / Units | 10 | ||||
Volatility used for fair vaue | 55.00% | ||||
Term used for fair vaue | 3 years | ||||
Accretion of discount and amortization of issuance costs | $ 33 | $ 64 | $ 100 | $ 199 | |
Units cancellation in period | N | 100,002 | ||||
Proceeds from units cancellation, net | $ 2,300 | ||||
Series A Preferred Stock [Member] | |||||
Interest expense, preferred stock | 300 | 1,000 | |||
Accretion of discount and amortization of issuance costs | 100 | 400 | |||
Series A Preferred Stock [Member] | |||||
Warrant value | $ 2,400 | $ 2,400 | |||
Series A preferred stock, redemption price per share | $ / shares | $ 25 | $ 25 | |||
Series A preferred stock, redemption value | $ 11,900 | $ 11,900 | |||
Preferred stock gross proceeds and canceled debt amount | $ 10,800 | $ 10,800 | |||
Preferred stock, shares outstanding | shares | 254,463 | 254,463 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Jun. 30, 2014 |
Debt Disclosure [Abstract] | ||
Credit Facility | $ 27,450 | $ 26,800 |
Mandatorily redeemable preferred stock, net of discount of $1,464 and $1,561, respectively | 5,092 | 4,801 |
Total debt | 32,542 | 31,601 |
Less: short-term portion | 27,450 | |
Long-term debt | $ 5,092 | $ 31,601 |
Debt (Details 1)
Debt (Details 1) - USD ($) $ in Thousands | Mar. 31, 2015 | Jun. 30, 2014 |
Debt Maturing in Fiscal Year Ending June 30, | ||
2,016 | $ 27,450 | |
2,019 | 6,362 | |
Total | 33,812 | |
Discount | (1,270) | $ (1,561) |
Total debt | $ 32,542 | $ 31,601 |
Earnings Per Share (Details Nar
Earnings Per Share (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Antidilutive securities excluded from computation of earnings per share, amount | 1,553,560 | 1,553,560 | ||
Warrants [Member] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 1,553,560 | 1,553,560 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net loss (numerator): | ||||
Net loss - basic | $ (3,734) | $ (1,984) | $ (38,145) | $ (5,464) |
Weighted average shares (denominator): | ||||
Weighted average shares - basic | 14,857 | 13,422 | 14,857 | 13,237 |
Dilution effect of share-based compensation, treasury method | ||||
Weighted average shares - diluted | 14,857 | 13,422 | 14,857 | 13,237 |
Loss per share: | ||||
Basic (in dollars per share) | $ (0.25) | $ (0.15) | $ (2.57) | $ (0.41) |
Diluted (in dollars per share) | $ (0.25) | $ (0.15) | $ (2.57) | $ (0.41) |
Commitments and Contingencies44
Commitments and Contingencies (Details Narrative) $ in Thousands | May. 04, 2011USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Mar. 31, 2015USD ($)ft² | Mar. 31, 2014USD ($) | Aug. 26, 2014USD ($) |
Lawsuit, damages sought | $ 280,000 | |||||
Environmental remediation liabilities related to Cross Border | $ 300 | $ 300 | ||||
Settlement of environmental liabilities | $ 11 | |||||
Number of square feet covered in rentals | ft² | 16,884 | |||||
Monthly rental payment | $ 24 | |||||
Rent expense | $ 41 | $ 67 | $ 123 | $ 200 | ||
Settlement Agreement [Member] | ||||||
Damages paid value in the legal matter in three equal installments | $ 900 |
Commitments and Contingencies45
Commitments and Contingencies (Details) $ in Thousands | Mar. 31, 2015USD ($) |
Future minimum rental payments in fiscal years ending June 30, | |
2,015 | $ 44 |
2,016 | 181 |
2,017 | $ 45 |
2,018 | |
2,019 | |
Total | $ 270 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Enerstar Resources [Member] | ||
Royalty expense | $ 2,775 | $ 7,200 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Jul. 31, 2015USD ($)ft² | Apr. 01, 2015USD ($) | May. 04, 2011USD ($) | Mar. 31, 2015USD ($)ft² | Aug. 19, 2015USD ($) | Jun. 30, 2015USD ($) | Apr. 21, 2015USD ($) |
Number of square feet covered in rentals | ft² | 16,884 | ||||||
Monthly rental payment | $ 24,000 | ||||||
Lawsuit, damages sought | $ 280,000,000 | ||||||
Credit Facility [Member] | |||||||
Current borrowing base of line of credit | $ 30,000,000 | ||||||
Subsequent Event [Member] | |||||||
Number of square feet covered in rentals | ft² | 4,100 | ||||||
Monthly rental payment | $ 2,700 | ||||||
Net proceeds commodity derivative positions | $ 18,600 | ||||||
Subsequent Event [Member] | Purchase And Sale Agreement (Operating Subsidiaries) [Member] | Black Shale Minerals, LLC [Member] | |||||||
Percentage of ownership interest | 50.00% | ||||||
Purchase price | $ 25,000,000 | ||||||
Subsequent Event [Member] | Breach of Contract And Defamation [Member] | |||||||
Lawsuit, damages sought | $ 100,000 | ||||||
Subsequent Event [Member] | Credit Facility [Member] | |||||||
Current borrowing base of line of credit | 12,400,000 | 12,400,000 | |||||
Debt related commitment fees | $ 0 | $ 125,000 | |||||
Maximum borrowing capacity of line of credit | $ 27,800,000 |