Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'RICHFIELD OIL & GAS Co | ' | ' |
Entity Central Index Key | '0001537834 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Trading Symbol | 'ROIL | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 52,059,975 | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $19,523,643 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets | ' | ' |
Cash and cash equivalents | $60,395 | $286,013 |
Restricted Cash | 153,348 | 0 |
Accounts receivables | 322,604 | 387,803 |
Deposits and prepaid expenses | 77,475 | 390,750 |
Total current assets | 613,822 | 1,064,566 |
Properties and equipment, at cost - successful efforts method: | ' | ' |
Proved properties | 7,139,663 | 6,581,725 |
Unproved properties | 14,095,020 | 14,164,053 |
Well and related equipment | 1,997,913 | 1,024,972 |
Accumulated depletion, depreciation and amortization | -1,224,523 | -923,083 |
Properties and equipment, at cost - successful efforts method | 22,008,073 | 20,847,667 |
Other properties and equipment | 219,231 | 236,212 |
Accumulated depreciation | -203,743 | -188,411 |
Other properties and equipment, net | 15,488 | 47,801 |
Total assets | 22,637,383 | 21,960,034 |
Current liabilities | ' | ' |
Accounts payable | 2,049,750 | 1,578,510 |
Accrued expenses and other payables | 3,104,485 | 1,368,276 |
Current portion of notes payable | 1,338,524 | 1,487,419 |
Convertible notes payable, net of discount of $120,264 and $0 at 12/31/13 and 12/31/12, respectively | 1,861,386 | 1,352,560 |
Capital lease obligations | 135,311 | 15,748 |
Current portion of asset retirement obligations | 48,000 | 0 |
Derivative liability | 310,156 | 0 |
Total current liabilities | 8,847,612 | 5,802,513 |
Long-term liabilities | ' | ' |
Notes payable, net of current portion | 0 | 1,674,691 |
Asset retirement obligations, net of current portion | 394,075 | 482,157 |
Total long-term liabilities | 394,075 | 2,156,848 |
Total liabilities | 9,241,687 | 7,959,361 |
Commitments and contingencies | ' | ' |
Stockholders' equity | ' | ' |
Common stock, par value $.001; 250,000,000 authorized; 39,906,770 shares and 32,518,192 shares issued and outstanding at 12/31/2013 and 12/31/2012, respectively | 39,907 | 32,518 |
Additional paid-in capital | 51,360,380 | 45,147,563 |
Accumulated deficit | -38,004,591 | -31,179,408 |
Total stockholders' equity | 13,395,696 | 14,000,673 |
Total liabilities and stockholders' equity | $22,637,383 | $21,960,034 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Convertible Notes Payable Net Discount | $120,264 | $0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, authorized shares | 250,000,000 | 250,000,000 |
Common stock, shares issued | 39,906,770 | 32,518,192 |
Common stock, shares outstanding | 39,906,770 | 32,518,192 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues | ' | ' |
Oil and natural gas sales | $1,046,336 | $952,566 |
Total revenues | 1,046,336 | 952,566 |
Operating expenses | ' | ' |
Production expenses | 900,129 | 764,457 |
Production taxes | 41,782 | 30,862 |
Exploration | 136,431 | 167,212 |
Lease expiration | 182,032 | 25,293 |
Depletion, depreciation, amortization and accretion | 382,690 | 261,739 |
General and administrative expenses | 4,571,642 | 7,383,227 |
Asset retirement obligation expenses | 161,901 | 0 |
Gain on sale of assets | -105,106 | -471,392 |
Total expenses | 6,271,501 | 8,161,398 |
Loss from operations | -5,225,165 | -7,208,832 |
Other income (expenses) | ' | ' |
Gain on settlement of liabilities | 30,367 | 20,769 |
Loss on extinguishment of debt | -1,103,702 | 0 |
Gain on derivative valuation | 756,776 | 0 |
Interest and finance expenses | -1,257,143 | -1,104,612 |
Interest income | 850 | 299,879 |
Total other income (expenses) | -1,572,852 | -783,964 |
Loss before income taxes | -6,798,017 | -7,992,796 |
Income tax provision | -1,567 | -400 |
Net loss | ($6,799,584) | ($7,993,196) |
Net loss per common share - basic and diluted (in dollars per share) | ($0.19) | ($0.28) |
Weighted average shares outstanding - basic and diluted (in shares) | 36,393,603 | 28,873,656 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2011 | $8,707,957 | $27,089 | $31,232,334 | ($22,551,466) |
Balance (in shares) at Dec. 31, 2011 | ' | 27,088,744 | ' | ' |
Issued 1,806,203 common stock for oil and gas properties and JIBs (valued between $1.60 and $2.50 per share) | 4,394,148 | 1,806 | 4,392,342 | 0 |
Issued 1,806,203 common stock for oil and gas properties and JIBs (valued between $1.60 and $2.50 per share) (in shares) | ' | 1,806,203 | ' | ' |
Issued 282,511 common stock to a related party for oil and gas properties (valued between $1.60 and $2.50 per share) | 567,000 | 283 | 566,717 | 0 |
Issued 282,511 common stock to a related party for oil and gas properties (valued between $1.60 and $2.50 per share) (in shares) | ' | 282,511 | ' | ' |
Sale of common stock and warrants for cash | 3,127,252 | 1,335 | 3,125,917 | 0 |
Sale of common stock and warrants for cash (in shares) | ' | 1,335,277 | ' | ' |
Issued common stock | 3,609,444 | 1,443 | 3,608,001 | 0 |
Issued common stock (in shares) | ' | 1,443,378 | ' | ' |
Issued 77,950 common stock as settlement of accounts payables including accrued interest | 194,875 | 78 | 194,797 | 0 |
Issued 77,950 common stock as settlement of accounts payables including accrued interest (in shares) | ' | 77,950 | ' | ' |
Issued 403,651 common stock as settlement of notes payable | 949,932 | 404 | 949,528 | 0 |
Issued 403,651 common stock as settlement of notes payable (in shares) | ' | 403,651 | ' | ' |
Issued 7,193 common stock for related party payment of interest and exercise of warrants | 11,509 | 7 | 11,502 | 0 |
Issued 7,193 common stock for related party payment of interest and exercise of warrants (in shares) | ' | 7,193 | ' | ' |
Return of 25,000 common stock for cancellation from related party | -62,500 | -25 | 0 | -62,475 |
Return of 25,000 common stock for cancellation from related party (in shares) | ' | -25,000 | ' | ' |
Return of common stock for cancellation from unaffiliated investors related to the exchange/ sale of oil and gas properties | -572,500 | -229 | 0 | -572,271 |
Return of common stock for cancellation from unaffiliated investors related to the exchange/ sale of oil and gas properties (in shares) | ' | -229,000 | ' | ' |
Issued 184,072 common stock in exchange for convertible preferred stock redemption (see NOTE 11 PREFERRED STOCK) | 389,515 | 184 | 389,331 | 0 |
Issued 184,072 common stock in exchange for convertible preferred stock redemption (see NOTE 11 PREFERRED STOCK) (in shares) | ' | 184,072 | ' | ' |
Exercised 143,213 common stock warrants | 229,141 | 143 | 228,998 | 0 |
Exercised 143,213 common stock warrants (in shares) | ' | 143,213 | ' | ' |
Issued 1,017,301 common stock warrants (see NOTE 13 WARRANTS TO PURCHASE COMMON STOCK) | 448,096 | 0 | 448,096 | 0 |
Net loss for the year | -7,993,196 | 0 | 0 | -7,993,196 |
Balance at Dec. 31, 2012 | 14,000,673 | 32,518 | 45,147,563 | -31,179,408 |
Balance (in shares) at Dec. 31, 2012 | ' | 32,518,192 | ' | ' |
Sale of common stock and warrants for cash | 1,069,000 | 1,167 | 1,067,833 | 0 |
Sale of common stock and warrants for cash (in shares) | ' | 1,166,750 | ' | ' |
Issued 10,000 common stock as partial payment on purchase of new leases | 8,500 | 10 | 8,490 | 0 |
Issued 10,000 common stock as partial payment on purchase of new leases (in shares) | ' | 10,000 | ' | ' |
Issued 1,102,064 common stock and 21,250 warrants for creditors, consultants, directors, officers, and other employees outstanding payables | 889,832 | 1,102 | 888,730 | 0 |
Issued 1,102,064 common stock and 21,250 warrants for creditors, consultants, directors, officers, and other employees outstanding payables (in shares) | ' | 1,102,064 | ' | ' |
Issued common stock | 345,592 | 561 | 345,031 | 0 |
Issued common stock (in shares) | ' | 561,307 | ' | ' |
Return of common stock for cancellation from unaffiliated investors related to the exchange/ sale of oil and gas properties | -25,624 | -25 | 0 | -25,599 |
Return of common stock for cancellation from unaffiliated investors related to the exchange/ sale of oil and gas properties (in shares) | ' | -25,626 | ' | ' |
Exercised 143,213 common stock warrants (in shares) | 0 | ' | ' | ' |
Issued 4,512,874 common stock for payment of debt, interest, and extension and conversion incentives. | 2,608,776 | 4,513 | 2,604,263 | 0 |
Issued 4,512,874 common stock for payment of debt, interest, and extension and conversion incentives (in shares) | ' | 4,512,874 | ' | ' |
Issued 59,644 common stock per ratchet provision on agreement | 56,661 | 61 | 56,600 | 0 |
Issued 59,644 common stock per ratchet provision on agreement (in shares) | ' | 61,209 | ' | ' |
Issued 525,000 warrants for consultants compensation | 49,475 | 0 | 49,475 | 0 |
Issued 3,139,853 warrants with debt as a debt discount, for reduction of debt, and sale of ORRI | 557,481 | 0 | 557,481 | 0 |
Record derivative liability for stock issued for cash | -344,572 | 0 | -344,572 | 0 |
Adjustment for repricing and modification of warrants | 184,477 | 0 | 184,477 | 0 |
Employee stock option amortization | 795,009 | 0 | 795,009 | 0 |
Net loss for the year | -6,799,584 | 0 | 0 | -6,799,584 |
Balance at Dec. 31, 2013 | $13,395,696 | $39,907 | $51,360,380 | ($38,004,591) |
Balance (in shares) at Dec. 31, 2013 | ' | 39,906,770 | ' | ' |
Consolidated_Statement_of_Stoc1
Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-Based Compensation Arrangement By Share-Based Payment Award, Non-Option Equity Instruments, Granted | 3,686,103 | 1,017,301 |
Stock Issued During Period, Shares, New Issues | 59,644 | ' |
Warrant Issued For Consultant Compensation | 525,000 | ' |
Warrants Issued With Debt And Discount | 3,139,853 | ' |
Creditors, Consultants, Directors, Officers and Other Employees [Member] | ' | ' |
Warrants Granted To Purchase Of Common Stock Shares | 21,250 | 650,000 |
Warrant [Member] | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Non-Option Equity Instruments, Granted | ' | 1,017,301 |
Warrants Granted To Purchase Of Common Stock Shares | 765,375 | ' |
Maximum [Member] | ' | ' |
Per Share Value Of Stock Issued For Oil and Gas Properties | ' | 2.5 |
Per Share Value Of Stock Issued To Related Party For Oil and Gas Properties | ' | 2.5 |
Per Share Value Of Stock Issued For Sale | ' | 2.5 |
Minimum [Member] | ' | ' |
Per Share Value Of Stock Issued For Oil and Gas Properties | ' | 1.6 |
Per Share Value Of Stock Issued To Related Party For Oil and Gas Properties | ' | 1.6 |
Per Share Value Of Stock Issued For Sale | ' | 1.6 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($6,799,584) | ($7,993,196) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depletion, depreciation, amortization and accretion | 382,690 | 261,739 |
Asset retirement obligation release on plugged wells | -39,000 | 0 |
Gain on settlement of liabilities | -30,367 | -20,769 |
Accrued interest income | ' | -299,812 |
Loss on extinguishment of debt | 1,103,702 | 0 |
Gain on derivative liability | -756,776 | 0 |
Capitalized interest on notes payable | 16,317 | 91,100 |
Amortization of pre-paid interest | 6,164 | 115,256 |
Lease expirations | 182,032 | 25,293 |
Gain on sale of assets | -105,106 | -471,392 |
Amortization of debt discounts | 218,309 | 220,552 |
Issuance of common stock, options and warrants for services and other expenses | 1,627,611 | 3,694,628 |
Changes in operating assets and liabilities: | ' | ' |
Decrease (increase) in accounts receivables | 128,649 | -249,065 |
Decrease (increase) in deposits and prepaid expenses | 273,906 | 54,384 |
Decrease (increase) in other assets | 0 | -119,421 |
Increase (decrease) in accounts payable | 51,701 | 663,890 |
Increase (decrease) in accrued expenses and other payables | 2,745,718 | 571,218 |
Increase (decrease) in due to directors | 0 | -27,934 |
Increase (decrease) in due to related parties | 0 | -43,307 |
Net cash used in operating activities | -994,034 | -3,526,836 |
Cash flows from investing activities: | ' | ' |
Investment in oil and gas properties, including wells and related equipment | -1,478,594 | -2,202,128 |
Investment in other properties and equipment | 0 | -38,597 |
Proceeds from sale of assets | 467,200 | 2,307,404 |
Net cash provided by (used in) investing activities | -1,011,394 | 66,679 |
Cash flows from financing activities: | ' | ' |
Proceeds from notes and convertible notes payable | 1,921,811 | 754,276 |
Payments on notes and convertible notes payable | -1,004,798 | -721,303 |
Restricted cash for settlement of note and litigation (see NOTE 19 LEGAL PROCEEDINGS) | -153,348 | 0 |
Proceeds from related party notes payable | 0 | 111,319 |
Payments on related party notes payable | 0 | -337,713 |
Payments on capital lease obligation | -60,233 | -35,479 |
Proceeds from issuance of convertible preferred stock | 0 | 285,000 |
Proceeds from issuance of warrants | 7,378 | 296,520 |
Proceeds from issuance of common stock - net of issuance costs | 1,069,000 | 3,356,393 |
Net cash provided by financing activities | 1,779,810 | 3,709,013 |
Net increase (decrease) in cash and cash equivalents | -225,618 | 248,856 |
Cash and cash equivalents - beginning of period | 286,013 | 37,157 |
Cash and cash equivalents - end of period | 60,395 | 286,013 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid during the period for interest | 64,290 | 463,409 |
Cash paid during the period for income taxes | 1,567 | 400 |
Non-cash financing and investing activities: | ' | ' |
Redemption of preferred stock and payment of preferred stock dividends through issuance of common stock | 0 | 389,515 |
Purchase of oil and gas properties and conversion of JIB receivables billed to working interest holders through issuance of common stock and warrants | 8,500 | 4,961,148 |
Capitalized oil and gas properties included in accounts payable | 951,700 | 0 |
Purchase of properties through exchange of property and reduction of payables and notes payable | 71,332 | 779,000 |
Sale of oil and gas properties for return of common stock | 45,625 | 572,500 |
Cancellation of lease in full satisfaction of accounts payable | 0 | 180,000 |
Conversion of pre-paid expenses, payables, and notes payable through issuance of common stock and warrants | 3,351,610 | 1,793,551 |
Conversion of accounts payable through issuance of note payable | 21,000 | 186,229 |
Capitalized accrued interest on notes payable | 0 | 70,789 |
Derivative liability on common stock issued | 344,572 | 0 |
Conversion of notes payable through issuance of convertible notes payable | 0 | 1,328,000 |
Conversion of convertible notes payable through issuance of notes payable | 0 | 1,117,500 |
Amortization of plugged wells | 41,766 | 0 |
Capitalized Leased Equipment | 179,796 | ' |
Capitalized asset retirement obligations | 57,021 | 144,287 |
Write down of asset retirement obligation on sold properties | $67,115 | $0 |
ORGANIZATION_AND_NATURE_OF_BUS
ORGANIZATION AND NATURE OF BUSINESS | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Business Description and Basis of Presentation [Text Block] | ' |
NOTE 1 ORGANIZATION AND NATURE OF BUSINESS | |
Richfield Oil & Gas Company (the “Company,” “Richfield” or “ROIL”) is a Nevada corporation headquartered in Salt Lake City, Utah which was incorporated on April 8, 2011. The Company is engaged in the exploration, development and production of oil and natural gas in the states of Kansas, Oklahoma, Utah and Wyoming. The Company’s common stock trades on the OTCQX under the symbol “ROIL”. | |
Contemporaneously with ROIL’s incorporation, the Company merged (the “HPI Merger”) with its predecessor company, Hewitt Petroleum, Inc., a Delaware corporation which was incorporated on May 17, 2008 (“HPI”). In connection with the HPI Merger, HPI was merged out of existence and the Company assumed all of the assets and liabilities of HPI and the Company became the parent company of HPI’s two wholly owned subsidiaries, Hewitt Energy Group, Inc., a Texas corporation (“HEGINC”) and Hewitt Operating, Inc., a Utah corporation (“HOPIN”). The Plan of Merger required that all HPI common stock be exchanged on a one-for-one basis for ROIL common stock and that ROIL assume all of the liabilities of HPI as of the effective date of the HPI Merger. As a result, the Company’s historical financial statements are a continuation of the financial statements of HPI. In addition, effective March 31, 2011, HPI entered into a Stock Exchange Agreement with Freedom Oil & Gas, Inc., a Nevada corporation (“Freedom”), which called for the exchange of stock in HPI for all of the outstanding stock of Freedom (the “Freedom Acquisition”). Upon completion of the Freedom Acquisition, it became a wholly owned subsidiary of the Company from March 31, 2011 until June 20, 2011 when Freedom was merged into ROIL with ROIL being the surviving entity. | |
On July 27, 2012 the Company formed a new wholly owned subsidiary, HR Land Group, LLC, a Utah Limited Liability Company, (“HR Land”). HR Land’s purpose is to acquire oil and gas leases. | |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, HEGINC, HOPIN and HR Land. All significant intercompany transactions and balances have been eliminated in consolidation. | |
The Company has been involved in leasing, exploring and drilling in Kansas, Oklahoma, Utah and Wyoming since its formation. The Company is participating in over 35,000 acres of leasehold, seismic surveys, and numerous drilling projects in these states. The Company uses proven technologies and drilling and production methods that are both efficient and environmentally sound. | |
GOING_CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2013 | |
Going Concern Disclosure [Abstract] | ' |
Going Concern Disclosure [Text Block] | ' |
NOTE 2 GOING CONCERN | |
The Company’s consolidated financial statements have been prepared on a going concern basis which contemplates the realization of assets and the liquidation of liabilities in the ordinary course of business. The Company has incurred substantial losses from operations causing negative working capital, in that current liabilities exceed current assets, and the Company has negative operating cash flows, which raise substantial doubt about the Company’s ability to continue as a going concern. The Company sustained a net loss for the year ended December 31, 2013 of $6,799,584 and a net loss for the year ended December 31, 2012 of $7,993,196, and has an accumulated deficit of $38,004,591 as of December 31, 2013. | |
The Company intends to make its planned capital expenditures in order to continue its drilling programs, but does not have sufficient realized revenues or operating cash flows in order to finance these activities internally. As a result, the Company intends to seek financing in order to fund its working capital and capital expenditure needs. | |
The Company has been able to meet its short-term needs through loans from officers and third parties; sales of working interest in its oil and gas properties; private placements of equity securities; and the settlement of liabilities by issuing common stock. The Company may seek additional funding through sales of working interest in its oil and gas properties; the issuance of debt; preferred stock; common stock; or a combination of these items. Any proceeds received from these items could provide the needed funds for continued operations and drilling programs. The Company can provide no assurance that it will be able to obtain sufficient additional financing that it needs to develop its properties and alleviate doubt about its ability to continue as a going concern. If the Company is able to obtain sufficient additional financing proceeds, the Company cannot be certain that this additional financing will be available on acceptable terms, if at all. To the extent the Company raises additional funds by issuing equity securities, the Company’s stockholders may experience significant dilution. Any debt financing, if available, may involve restrictive covenants that impact the Company’s ability to conduct business. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
NOTE 3 SIGNIFICANT ACCOUNTING POLICIES | |
These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). | |
Principles of Consolidation and Presentation | |
The Company was incorporated in Nevada on April 8, 2011. Contemporaneously with the incorporation, the Company merged with its predecessor company, HPI. In connection with the HPI Merger, HPI was merged out of existence and the Company assumed all of the assets and liabilities of HPI. As a result, the Company’s historical financial statements are a continuation of the financial statements of HPI. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, HEGINC, HOPIN, HR Land, HOI KS and HOI UT. All significant intercompany transactions and balances have been eliminated in consolidation. | |
Cash and Cash Equivalents | |
The Company considers highly liquid investments with insignificant interest rate risk and original maturities to the Company of three months or less to be cash equivalents. Cash equivalents consist primarily of cash on hand, interest-bearing bank accounts and money market funds. The Company’s cash positions represent assets held in checking and money market accounts. These assets are generally available on a daily or weekly basis and are highly liquid in nature. If the balances are greater than $250,000, the Company does not have FDIC coverage on the entire amount of bank deposits. The Company believes this risk is minimal. | |
Accounts Receivable | |
Trade accounts receivable are primarily from oil and natural gas sales and net amounts due from Joint Interest Billings (“JIBs”) from working interest holders in the Company’s oil and gas properties in which we are the operator. These trade accounts receivables are recorded at the invoiced amount, net of allowances for doubtful amounts. The Company routinely reviews outstanding accounts receivable balances for estimated uncollectible accounts and regularly reviews collectability and establishes or adjusts the allowances for doubtful accounts receivables using the specific identification method and records a reserve for amounts not expected to be fully recovered. Actual balances are not applied against the reserve until substantially all collection efforts have been exhausted. At December 31, 2013 and 2012, the Company had no allowance for doubtful accounts. | |
Oil and Gas Properties Accounting Policies | |
The Company accounts for oil and gas properties by the successful efforts method. Under this method of accounting, costs relating to the acquisition and development of proved areas are capitalized when incurred. The costs of development wells are capitalized whether productive or non-productive. Leasehold acquisition costs are capitalized when incurred. If proved reserves are found on an unproved property, leasehold cost is transferred to proved properties. Exploration dry holes are charged to expense when it is determined that no commercial reserves exist. Other exploration costs, including personnel costs, geological and geophysical expenses and delay rentals for oil and gas leases, are charged to expense when incurred. The costs of acquiring or constructing support equipment and facilities used in oil and natural gas producing activities are capitalized. Production costs are charged to expense as incurred and are those costs incurred to operate and maintain the Company’s wells and related equipment and facilities. | |
Depletion of producing oil and gas properties is recorded based on units of production. Acquisition costs of proved properties are depleted on the basis of all proved reserves, developed and undeveloped, and capitalized development costs (wells and related equipment and facilities) are depleted on the basis of proved developed reserves. As more fully described below, proved reserves are estimated by the Company’s independent petroleum engineer and are subject to future revisions based on availability of additional information. As discussed in NOTE 10 ASSET RETIREMENT OBLIGATIONS, asset retirement costs are recognized when the asset is placed in service, and are depleted over proved reserves using the units of production method. | |
Oil and gas properties are reviewed for impairment when facts and circumstances indicate that their carrying value may not be recoverable. The Company compares net capitalized costs of proved oil and gas properties to estimated undiscounted future net cash flows using management’s expectations of future oil and natural gas prices. These future price scenarios reflect the Company’s estimation of future price volatility. If net capitalized costs exceed estimated undiscounted future net cash flows, the measurement of impairment is based on estimated fair value, using estimated discounted future net cash flows based on management’s expectations of future oil and natural gas prices. The Company did record an impairment allowance for expiring leaseholds on proven properties for the year ended December 31, 2013. The Company recorded no impairment allowance on proven properties for the year ended December 31, 2012. | |
Unproven properties that are individually significant are assessed for impairment and if considered impaired are charged to expense when such impairment is deemed to have occurred. We perform periodic assessment of individually significant unproved crude oil and gas properties for impairment on a quarterly basis and we would recognize a loss at the time if there was an impairment by providing an impairment allowance. In determining whether a significant unproved property is impaired we consider numerous factors including, but not limited to, current exploration plans, favorable or unfavorable exploratory activity on adjacent leaseholds, our management and geologists’ evaluation of the lease, and the remaining months in the lease term. As of December 31, 2013 and 2012, the Company does not have unproved properties whose acquisition costs are not significant. Thus, all unproven properties were assessed for impairment and the Company recorded an impairment allowance for expiring leases for the years ended December 31, 2013 and 2012. | |
The sale of a partial interest in a proved oil and gas property is accounted for as normal retirement and no gain or loss is recognized as long as this treatment does not significantly affect the units-of-production depletion rate. If the units-of-production rate is significantly affected, then the sale shall be accounted for as the sale of an asset, and a gain or loss shall be recognized. The unamortized cost of the property or group of properties shall be apportioned to the interest sold and the interest retained on the basis of the fair values of those interests. A gain or loss is recognized for all other sales of producing properties and is included in the results of operations. The sale of a partial interest in an unproved property is accounted for as a recovery of cost when substantial uncertainty exists as to recovery of the cost applicable to the interest retained. A gain on the sale is recognized to the extent the sales price exceeds the carrying amount of the unproved property. A gain or loss is recognized for all other sales of nonproducing properties and is included in the results of operations. | |
Other Property and Equipment | |
Other property and equipment include property and equipment that are not oil and gas properties and are recorded at cost and depreciated using the straight-line method over their estimated useful lives of five to seven years. Expenditures for replacements, renewals, and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Long-lived assets, other than oil and gas properties, are evaluated for impairment to determine if current circumstances and market conditions indicate the carrying amount may not be recoverable. The Company has not recognized any impairment losses on non-oil and gas long-lived assets. | |
Asset Retirement Obligations | |
Asset retirement obligation relates to future costs associated with plugging and abandonment of crude oil and natural gas wells, removal of equipment and facilities from leased acreage and returning the land to its original condition. Estimates are based on historical experience of plugging and abandoning wells, estimated remaining lives of those wells based on reserves estimates, external estimates to plug and abandon the wells in the future and federal and state regulatory requirements. The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred and a corresponding increase in the carrying amount of the related long-lived asset. The liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized. | |
Revenue Recognition | |
Revenue from the sale of crude oil, natural gas and natural gas liquids is recorded when the significant risks and rewards of ownership of the product is transferred to the buyer, which is usually when legal title passes to the external party. For crude oil and natural gas liquids delivery generally occurs upon pick up at the field tank battery and for natural gas delivery occurs at the pipeline delivery point. Revenue is not recognized for the production in tanks, or oil in pipelines that has not been delivered to the purchaser. Revenue is measured net of discounts and royalties. Royalties and severance taxes are incurred based upon the actual price received from the sales. The Company uses the sales method of accounting for natural gas balancing of natural gas production and would recognize a liability if the existing proven reserves were not adequate to cover the current imbalance situation. As of December 31, 2013 and 2012, the Company’s natural gas production was in balance, meaning its cumulative portion of natural gas production taken and sold from wells in which it has an interest equaled its entitled interest in natural gas production from those wells. | |
Stock-Based Compensation | |
The Company has accounted for stock-based compensation under the provisions of FASB ASC 718. This standard requires the Company to record an expense associated with the fair value of stock-based compensation. The Company uses the Black-Scholes option valuation model to calculate the value of options and warrants at the date of grant. Option and warrant pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. | |
Stock Issuance | |
The Company records the stock-based awards issued to consultants and other external entities for goods and services at either the fair market value of the goods received or services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in FASB ASC 505. | |
Income Taxes | |
The Company accounts for income taxes under FASB ASC 740. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is “more likely than not” that some component or all of the benefits of deferred tax assets will not be realized. | |
The tax effects from an uncertain tax position can be recognized in the consolidated financial statements only if the position is more likely than not of being sustained if the position were to be challenged by a taxing authority. The Company has examined the tax positions taken in its tax returns and determined that there are no uncertain tax positions. As a result, the Company has recorded no uncertain tax liabilities in its consolidated balance sheet. | |
Loss Per Common Share | |
Basic earnings per share (“EPS”) are computed by dividing net income (loss) (the numerator) by the weighted average number of common shares outstanding for the period (the denominator). Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, and restricted stock. The number of potential common shares outstanding relating to stock options, warrants, and restricted stock is computed using the treasury stock method. | |
As the Company has incurred losses for the years ended December 31, 2013 and 2012, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of December 31, 2013 and 2012, there were 11,937,087 and 2,707,898 potentially dilutive shares, respectively. | |
Use of Estimates | |
The preparation of financial statements under GAAP in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to proved oil and natural gas reserve volumes, certain depletion factors, future cash flows from oil and gas properties, estimates relating to certain oil and natural gas revenues and expenses, valuation of share based compensation, valuation of asset retirement obligations, estimates of future oil and natural gas commodity pricing and the valuation of deferred income taxes. Actual results may differ from those estimates. | |
Impairment | |
FASB ASC 360 requires long-lived assets to be held and used be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. There was no impairment identified at December 31, 2013 and 2012. | |
New Accounting Pronouncements | |
From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption. | |
Reclassifications | |
Certain prior period balances have been reclassified to conform to the current period presentation. Such reclassifications had no impact on net loss, statements of cash flows, working capital or equity previously reported. | |
Reverse Stock Split | |
As more fully described in NOTE 12 COMMON STOCK, effective October 23, 2012, the Company implemented a 1-for-10 reverse stock split of its issued and outstanding common stock. Under the guidance of FASB ASC 505, all common share and per common share information in the accompanying consolidated financial statements and these notes to the financial statements have been retroactively restated to reflect the reverse common stock split. | |
Jumpstart Our Business Startups Act (“JOBS Act”), adopted January 3, 2012 | |
The Company qualifies as an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933 (the “Securities Act”) as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As such, the Company is permitted to rely on exemptions from various reporting requirements including, but not limited to, the requirement to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act of 2002, and the requirement to submit certain executive compensation matters to shareholder advisory votes such as “say on pay” and “say on frequency.” | |
In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of the benefits of this extended transition period. The Company’s financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards. | |
The Company will remain an emerging growth company up to the fifth anniversary of its first registered sale of common equity securities, or until the earliest of (a) the last day of the first fiscal year in which its annual gross revenues exceed $1 billion, (b) the date that it becomes a “large accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which would occur if the market value of its common stock held by non-affiliates exceeds $700 million as of the last business day of its most recently completed second fiscal quarter, or (c) the date on which it has issued more than $1 billion in non-convertible debt during the preceding three-year period. | |
OIL_AND_NATURAL_GAS_PROPERTIES
OIL AND NATURAL GAS PROPERTIES | 12 Months Ended |
Dec. 31, 2013 | |
Business Combinations [Abstract] | ' |
Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block] | ' |
NOTE 4 OIL AND NATURAL GAS PROPERTIES | |
Acquisitions for the year ended December 31, 2012 | |
On January 1, 2012, the Company purchased a 1.00% working interest in the deep zones and 0.50% working interest in the shallow zones in the HUOP Freedom Trend Prospect located in Sanpete County, Utah from two unaffiliated investors for a value totaling $141,857 in exchange for the issuance of 50,000 shares of common stock for a value of $125,000, or $2.50 per share plus the cancelation of $16,857 of JIBs accounts receivable owed to the Company by the investors. | |
On January 1, 2012, the Company purchased a 0.25% working interest BPO and APO in the HPI Liberty #1 Well located in Juab County, Utah from an unaffiliated investor for a value totaling $22,307 in exchange for the issuance of 4,853 shares of common stock for a value of $12,133, or $2.50 per share plus the cancelation of $10,174 of JIBs accounts receivable owed to the Company by the investor. | |
On March 30, 2012, the Company acquired a 405 acre lease and lease extension of 1,416 acres for the HUOP Freedom Trend Prospect located in Sanpete County, Utah from an unaffiliated investor, at that time, for a value totaling $383,200 in exchange for the issuance of 153,280 shares of common stock for a value of $383,200, or $2.50 per share. The Company capitalized $289,316 as a result of having a 75.50% working interest and the remaining balance of $93,884 was billed to the other 24.50% HUOP Freedom Trend Prospect working interest holders. On March 31, 2012, this unaffiliated investor, Joseph P. Tate, became a Director of the Company. | |
On June 30, 2012, the Company acquired a 25.00% working interest in the Perth Field located in Sumner County, Kansas from two unaffiliated investors in exchange for an agreement to provide the investors with an aggregate 10.00% total carried interest in a certain $800,000 work plan in the Perth Field that includes drilling one new well, three well recompletions, and work on a salt water disposal well. In conjunction with this transaction, the Company sold 5.00% of the working interest received with a 5.00% carried interest in this same work plan to another unaffiliated investor. These transactions resulted in the Company acquiring a net 10.00% working interest whereby the Company’s working interest increased from 75.00% to 85.00%. This work plan commenced in December 2012. | |
On October 1, 2012, the Company purchased a 7.00% working interest in the Koelsch Field located in Stafford County, Kansas, from two unaffiliated investors for a value totaling $367,500 in exchange for the issuance of 195,544 shares of common stock. Of these 195,544 shares of common stock, 60,700 shares were valued at $151,750, or $2.50 per share and the remaining 134,844 shares of common stock were issued by exercising warrants with an exercise price of $1.60 per warrant or $215,750. | |
On October 1, 2012, the Company purchased a 5.00% working interest in the Koelsch Field located in Stafford County, Kansas, from MacKov Investments Limited, a related party, for a value totaling $262,500 in exchange for the issuances of 160,711 shares of common stock. Of these 160,711 shares of common stock, 5,958 shares were valued at $14,895, or $2.50 per share and the remaining 154,753 shares of common stock were issued by exercising warrants held by MacKov with an exercise price of $1.60 per warrant or $247,605. This purchase was made on the same terms as other unaffiliated investor transactions completed in October 2012 (see NOTE 16 RELATED PARTY TRANSACTIONS). | |
On October 1, 2012, the Company purchased a 21.00% working interest in the Prescott Lease located in Stafford County, Kansas, from seven unaffiliated investors for a value totaling $643,125 in exchange for the issuance of 257,250 shares of common stock valued at $643,125, or $2.50 per share. | |
On October 1, 2012, the Company purchased a 9.50% working interest BPO and a 6.50% working interest APO in the HPI Liberty #1 Well located in Juab County, Utah, from four unaffiliated investors for a value totaling $468,000 in exchange for the issuance of 179,887 shares of common stock valued at $449,718, or $2.50 per share, plus the cancelation of $18,282 of JIBs accounts receivable owed to the Company by the investors. | |
On October 1, 2012, the Company purchased a 12.95% working interest BPO and an 8.75% working interest APO in the HPI Liberty #1 Well, located in Juab County, Utah, from six unaffiliated investors for $630,000. In addition, the Company sold a 3.0625% working interest BPO and a 2.1875% working interest APO in the HPI Liberty #1 Well and Liberty Prospect to the six investors for $192,500. The net amount of $437,500 due to the investors was paid by the issuance of 162,146 shares of common stock for a total value of $405,365, or $2.50 per share, plus the cancelation of $32,135 of JIBs accounts receivable owed to the Company by the investors. | |
On October 1, 2012, the Company purchased a 1.00% carried working interest to tanks BPO, 1.00% working interest to tanks APO, 5.25% working interest BPO and 3.75% working interest APO in the HPI Liberty #1 Well and 1.00% working interest BPO and 1.00% working interest APO in the Liberty Prospect located in Juab and Sanpete Counties, Utah, from two unaffiliated investors for a value totaling $725,965, which was paid by the issuance of 30,000 shares of common stock valued at $75,000, or $2.50 per share, the issuance of a $589,000 note payable, plus the cancelation of $61,965 of JIBs accounts receivable owed to the Company by the investors. | |
On October 1, 2012, the Company purchased a 1.00% carried working interest to tanks, a 2.25% working interest BPO and a 1.75% working interest APO in the HPI Liberty #1 Well and a 3.25% working interest BPO and a 2.75% working interest APO in the Liberty Prospect located in Juab County, Utah, from MacKov Investments Limited, a related party, for a value totaling $242,000 in exchange for the issuance of 96,800 shares of common stock valued at $242,000, or $2.50 per share. This purchase was made on the same terms as other unaffiliated investor transactions completed in October 2012 (see NOTE 16 RELATED PARTY TRANSACTIONS). | |
On October 1, 2012, the Company purchased from an unaffiliated investor a 14.50% working interest in the deep zones and a 7.25% working interest in the shallow zones of the HUOP Freedom Trend Prospect located in Sanpete County, Utah and a 2.80% working interest BPO and 2.00% working interest APO in the HPI Liberty #1 Well located in Juab County, Utah for a total of $1,956,500 which was paid by issuing 609,243 shares of common stock valued at $1,523,108, or $2.50 per share, plus the cancelation of $433,392 of JIBs and other receivables owed to the Company by the investors. | |
On October 1, 2012, the Company purchased a 0.50% working interest in the deep zones and a 0.25% working interest in the shallow zones of the HUOP Freedom Trend Prospect located in Sanpete County, Utah, from MacKov Investments Limited, a related party, for a value totaling $62,500 in exchange for the issuance of 25,000 shares of common stock valued at $62,500, or $2.50 per share. This purchase was made on the same terms as other Company unaffiliated investor transactions completed in October 2012 (see NOTE 16 RELATED PARTY TRANSACTIONS). | |
On October 26 and November 5, 2012, the Company purchased three leases containing 1,511 net acres located in the Hogback Ridge Prospect in Rich County, Utah for the sum of $17,730. | |
On December 1, 2012, the Company acquired 100% working interest in the Wasatch National Forest Well #16-15 and the surrounding 640 acres in Uinta County, Wyoming from an unaffiliated and existing investor for $610,000 that was paid as follows: (i) the Company paid $10,000 cash; (ii) the Company issued 164,000 shares of common stock for a total value of $410,000, or $2.50 per share; and (iii) the Company issued a $190,000 note payable to the investor. | |
Acquisitions for the year ended December 31, 2013 | |
In January 2013, the Company purchased two leases in the HUOP Freedom Trend Prospect: (i) a lease totaling 111 net acres with a term of 10 years for a payment of $1,664 per year; and (ii) the City of Fountain Green Lease totaling 206 net acres with a term of 10 years and includes the right to use surplus city water for a one-time payment of $140,000. | |
In May 2013, the Company purchased two 5 year leases with a 5 year option to renew in the HUOP Freedom Trend Project totaling 1,328 acres for $74,387. As part of the consideration for the leases the Company issued 10,000 shares of common stock valued at $8,000 or $0.80 per share with the balance of $66,387 paid in cash. | |
In May 2013, the Company purchased a 10 year lease in the HUOP Freedom Trend Prospect totaling 422 acres with annual payments of $6,329. | |
In June 2013, the Company purchased a 5 year lease with a 5 year option to renew in two new prospects in the Central Utah Overthrust totaling 1,707 acres for $59,729 in cash. | |
Divestitures for the year ended December 31, 2012 | |
On January 30, 2012, the Company sold a 1.00% working interest in the Moroni #1-AXZH Well and the 320 acres leasehold for cash of $77,561 to an unaffiliated investor. | |
On February 10, 2012, the Company sold a 0.50% working interest in the Moroni #1-AXZH Well and the 320 acres leasehold for cash of $38,781 to a related party, Zions Energy Corporation. This sale was made on the same terms as the other unaffiliated investor transaction completed in January 2012 (see NOTE 16 RELATED PARTY TRANSACTIONS). | |
On February 21, 2012, the Company sold a 0.25% working interest in the Moroni #1-AXZH Well and the 320 acres leasehold for cash of $19,390 to a related party, Zions Energy Corporation. This sale was made on the same terms as the other unaffiliated investor party transaction completed in January 2012 (see NOTE 16 RELATED PARTY TRANSACTIONS). | |
On February 22, 2012, the Company sold a 2.00% working interest in the Koelsch Field, including the requirement to participate in the RFO Koelsch #25-1 Well, for cash of $6,060 to a related party, Zions Energy Corporation. This sale was made on the same terms as other unaffiliated investor transactions completed in December 2011 (see NOTE 16 RELATED PARTY TRANSACTIONS). | |
On February 22, 2012 the Company sold a 1.50% working interest in the Koelsch Field, including the requirement to participate in the RFO Koelsch #25-1 Well, for cash of $4,545 to a related party, MacKov Investments Limited. This sale was made on the same terms as other unaffiliated investor transactions completed in December 2011 (see NOTE 16 RELATED PARTY TRANSACTIONS). | |
On February 29, 2012, the Company sold a 0.50% working interest in the Moroni #1-AXZH Well and the 320 acres leasehold for cash of $38,781 to a related party, MacKov Investments Limited. This sale was made on the same terms as the other unaffiliated investor party transaction completed in January 2012 (see NOTE 16 RELATED PARTY TRANSACTIONS). | |
On March 12, 2012, the Company sold a 1.00% working interest in the Koelsch Field, including the requirement to participate in the RFO Koelsch #25-1 Well, for cash of $3,030 to a related party Zions Energy Corporation. This sale was made on the same terms as other unaffiliated investor transactions completed in January 2012 (see NOTE 16 RELATED PARTY TRANSACTIONS). | |
On March 14, 2012, the Company sold a 0.25% working interest in the Moroni #1-AXZH Well and the 320 acres leasehold for cash of $19,390 to a related party Zions Energy Corporation. This sale was made on the same terms as the other unaffiliated investor party transaction completed in January 2012 (see NOTE 16 RELATED PARTY TRANSACTIONS). | |
On March 15, 2012, the Company sold a 1.00% working interest in the Koelsch Field, including the requirement to participate in the RFO Koelsch #25-1 Well, for cash of $3,030 to an unaffiliated investor. | |
On May 15, 2012, the Company sold a 3.00% carried interest in the first well to be drilled in the shallow zone on the HUOP Freedom Trend Prospect in exchange for $100,000 in cash and a return of a 2.00% working interest in the Moroni #1-AXZH Well and the 320 acre leasehold. There were two parties to this transaction, one was an unaffiliated investor, the other was a related party, Zions Energy Corporation. The Zions Energy Corporation transaction was completed on the same terms as the unaffiliated investor transaction (see NOTE 16 RELATED PARTY TRANSACTIONS). | |
On May 16, 2012 and May 17, 2012, the Company sold a 21.00% working interest in the Prescott Lease, including the requirement to participate in the RFO Prescott #25-6 Well located in the Koelsch Field and 229,800 warrants to purchase common stock at $2.50 per share for total cash of $619,500 to unaffiliated investors. | |
On May 31, 2012, the Company determined that a lease in the HUOP Freedom Trend Prospect was not valid as there were issues regarding the title of the property, no payments had been made and the lease term had expired. As a result, the lessor agreed to cancel the original amount owing by the Company on this lease in the amount of $180,000. | |
On June 28, 2012, the Company entered into an agreement (the “Skyline Oil Agreement”) with Skyline Oil, LLC (“Skyline Oil”), whereby the Company gave Skyline Oil (i) all of its interest in the Chad Wood Lease located in Central Utah; (ii) a 44.5% working interest in the Moroni #1-AXZH Well plus 320 surrounding acres; and (iii) a 15% working interest in 4,680 acres of the Independence Prospect, and in exchange Skyline Oil gave the Company (i) $1.6 million in cash; (ii) 200,000 shares of the Company’s common stock valued at $500,000 or $2.50 per share; and (iii) a 5% working interest in an additional 15,000 acres in a new Independence Prospect. The $500,000 from the return of 200,000 shares of common stock was treated as a return of capital and the remaining Independence Prospect unproved properties are now valued at $422,865. Following this transaction, the Company now owns a 5% working interest in 19,680 acres in the new Independence Prospect and a 5% working interest in the Moroni #1-AXZH Well plus 320 surrounding acres. | |
On June 30, 2012, the Company sold a 5.00% working interest with a 5.00% carried interest in a certain $800,000 work plan in the Perth Field that includes drilling one new well, three well recompletions, and work on a salt water disposal well to an unaffiliated investor for a value of $230,000. As consideration for this transaction, the investor agreed to reduce his note payable by $80,000 and exchanged a 50.00% working interest in a salt water disposal well that was valued at $150,000. This transaction was made in conjunction with the Company’s acquisition of 25.00% working interest in the Perth Field. | |
On October 1, 2012, the Company sold a 3.0625% working interest BPO and a 2.1875% working interest APO in the HPI Liberty #1 Well and Liberty Prospect from six unaffiliated investors for $192,500. In addition, the Company purchased a 12.95% working interest BPO and an 8.75% working interest APO in the HPI Liberty #1 Well, located in Juab County, Utah, from six unaffiliated investors for $630,000 which was paid by the issuance of 162,146 shares of common stock for a total value of $405,365, or $2.50 per share, plus the cancelation of $32,135 of JIBs accounts receivable owed to the Company by the investors. | |
On October 22, 2012, the Company transferred a 1.50% ORRI in the South Haven Field valued at $32,000 to an unaffiliated note holder, as consideration for prepaid interest on a $425,000 promissory note. | |
In December 2012, the Company sold a 1.00% working interest in the deep zones and a 1.00% working interest in the shallow zones in the HUOP Freedom Trend Prospect to an unaffiliated investor for a total value of $162,500. The purchase price was paid in $90,000 cash and a return to the Company of 29,000 shares of the Company’s common stock valued at $72,500, or $2.50 per share. The shares were returned to the Company and subsequently cancelled. | |
Divestitures for the year ended December 31, 2013 | |
In March 2013, the Company sold a 20.0% working interest in the Wasatch National Forest #16-15 Well to two unaffiliated investors for a total of $145,626 with payments of $120,000 in cash and $25,626 through the return and cancelation of 25,626 shares of Common Stock valued at $1.00 per share. | |
In June 2013, the Company sold a 2.0% working interest in the Moroni #1 AXZH Well and in the surrounding 20,000 acres in the Independence Project for a total of $240,000, with payments of $220,000 in cash and $20,000 through the return and cancelation of 27,778 shares of Common Stock valued at $0.72 per share. | |
In July 2013, the Company sold a 2.0% ORRI in the Pine Springs/Edwin Prospect in the Central Utah Overthrust to an unaffiliated investor for $70,000 cash. As additional consideration for the sale, the Company granted warrants to purchase up to 70,000 shares of Common Stock with an exercise price of $1.00 that expire in July 2014. | |
In October 2013, the Company sold 51.25% working interest in the Wasatch National Forest #16-15 Well and the surrounding 640 acres to two unaffiliated investors for a total of $512,500 with payments of $112,500 in cash and $400,000 through the extinguishment of Notes Payable. | |
NOTES_PAYABLE
NOTES PAYABLE | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Notes Payable Disclosure [Abstract] | ' | |||||||
Notes Payable Disclosure [Text Block] | ' | |||||||
NOTE 5 NOTES PAYABLE | ||||||||
Notes Payable consists of the following: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Note Payable, interest at 12.0% per annum, monthly payments of $7,500, due October 2013, secured by a 5.00% working interest in certain HUOP Freedom Trend Prospect leases. | $ | - | $ | 750,000 | ||||
Note Payable, interest at 10.0% per annum, monthly payments of $3,200, secured by a 1.00% working interest in certain HUOP Freedom Trend Prospect leases. | - | 366,709 | ||||||
Note Payable, interest at 7.5% per annum, monthly payments of $1,949, due January 2014, secured by vehicle. | 8,496 | 24,759 | ||||||
Note Payable, interest at 10.0% per annum, monthly payments of $15,000, due June 2014, secured by a 10.00% working interest in certain HUOP Freedom Trend Prospect leases. | 581,327 | 716,327 | ||||||
Note Payable, interest at 10.0% per annum, monthly payments of $5,000, secured by a 1.00% working interest in certain HUOP Freedom Trend Prospect leases. | - | 87,056 | ||||||
Note Payable, interest at 0.0% per annum, monthly payments of $1,500, due on demand, unsecured. | - | 7,380 | ||||||
Note Payable, interest at 8.0% per annum, monthly payments of $10,000, due on demand, unsecured. | 94,701 | 115,879 | ||||||
Note Payable, interest at 10.0% per annum, secured by certain new leases, rights, and interests in the Central Utah Overthrust Project. | - | 250,000 | ||||||
Note Payable, interest at 6.0% per annum, quarterly payments of $50,000, due January 2014, secured by a 10.00% working interest in the Liberty Prospect. | 389,000 | 589,000 | ||||||
Note Payable, interest at 0.0% per annum, unsecured. | - | 190,000 | ||||||
Note Payable, interest at 0.0% per annum, due on demand, unsecured | 15,000 | - | ||||||
Note Payable, interest at 10.0% per annum, secured by a 1.00% working interest in certain HUOP Freedom Trend Prospect leases. | - | 65,000 | ||||||
Note Payable, interest at 12.0% per annum, due on demand, secured by a 10.00% working interest in the Liberty Prospect. | 50,000 | - | ||||||
Note Payable, interest at 8.0% per annum, due on demand, secured by a working interest in certain Kansas leases. | 100,000 | - | ||||||
Note Payable, interest at 8.0% per annum, due on demand, secured by a working interest in certain Kansas leases. | 100,000 | - | ||||||
Total Notes Payable | 1,338,524 | 3,162,110 | ||||||
Less: Current Portion (includes demand notes) | -1,338,524 | -1,487,419 | ||||||
Long-Term Portion | $ | - | $ | 1,674,691 | ||||
Estimated annual future maturities of Notes Payables are as follows: | ||||||||
Years Ended December 31, | Amount | |||||||
2014 | $ | 1,338,524 | ||||||
Thereafter | - | |||||||
Total | $ | 1,338,524 | ||||||
CONVERTIBLE_NOTES_PAYABLE
CONVERTIBLE NOTES PAYABLE | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Convertible Notes Payable Disclosure [Abstract] | ' | |||||||
Convertible Notes Payable Disclosure [Text Block] | ' | |||||||
NOTE 6 CONVERTIBLE NOTES PAYABLE | ||||||||
Convertible Notes Payable consists of the following: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Note Payable, interest at 12.0% per annum, due on demand, convertible into common shares of | $ | 52,560 | $ | 52,560 | ||||
the Company at a conversion rate of $2.50 per common share, unsecured. | ||||||||
Note Payable, interest at 10.0% per annum, due on demand, convertible into common shares of | 369,090 | 1,300,000 | ||||||
the Company at a conversion rate of $2.50 per common share, secured by certain | ||||||||
Kansas Leases and 10.00% working interest in certain Fountain Green Project Leases (see | ||||||||
NOTE 19 LEGAL PROCEEDINGS). | ||||||||
Note Payable, interest at 10.0% per annum, due March 2014, convertible into common shares of | 1,310,000 | - | ||||||
the Company at a conversion rate of $0.60 per common share subject to a ratchet adjustment provision | ||||||||
(see NOTE 12 COMMON STOCK), secured by a working interest in certain Kansas and Wyoming leases. | ||||||||
Note Payable, interest at 10.0% per annum, due March 2014, convertible into common shares of | 150,000 | - | ||||||
the Company at a conversion rate of $0.60 per common share subject to a ratchet adjustment provision | ||||||||
(see NOTE 12 COMMON STOCK), unsecured. | ||||||||
Note Payable, interest at 12.0% per annum, due on demand, convertible into common shares of | 50,000 | - | ||||||
the Company at a conversion rate determined by 50% of the weighted average price of the stock | ||||||||
during the five trading days immediately preceding the conversion date, secured by a 10.0% working | ||||||||
interest in the Liberty Prospect. | ||||||||
Note Payable, interest at 12.0% per annum, due on demand, convertible into common shares of | 50,000 | - | ||||||
the Company at a conversion rate determined by 50% of the weighted average price of the stock | ||||||||
during the five trading days immediately preceding the conversion date, secured by a 10.0% working | ||||||||
interest in the Liberty Prospect. | ||||||||
Total Convertible Notes Payable | 1,981,650 | 1,352,560 | ||||||
Less: Unamortized Debt Discount | -120,264 | - | ||||||
Less: Current Portion (includes demand notes) | -1,861,386 | -1,352,560 | ||||||
Long-Term Portion | $ | - | $ | - | ||||
Estimated annual future maturities of Convertible Notes Payables are as follows: | ||||||||
Years Ended December 31, | Amount | |||||||
2014 | $ | 1,981,650 | ||||||
Thereafter | - | |||||||
Total | $ | 1,981,650 | ||||||
CAPITAL_LEASE_OBLIGATION
CAPITAL LEASE OBLIGATION | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | ' | ||||
NOTE 7 CAPITAL LEASE OBLIGATION | |||||
The Company leases certain well equipment under two capital lease agreements. The term of the first capital lease was for 5 years with monthly payments in the amount of $3,200. The final payment on this lease was made in April 2013. The second lease is for a term of 10 months with monthly payments of $21,000. The final payment on this lease is due in June 2014. As of December 31, 2013 and 2012, the remaining capital lease obligations were $135,311 and $15,748, respectively. | |||||
As of December 31, 2013 and 2012, total well equipment acquired under capital leases was $333,951 and $154,155 and accumulated depreciation was $139,165 and $106,440, respectively. | |||||
Estimated annual future maturities of capital leases are as follows: | |||||
Years Ended December 31, | Amount | ||||
2014 | $ | 135,311 | |||
Thereafter | - | ||||
Total | $ | 135,311 | |||
OPERATING_LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2013 | |
Leases, Operating [Abstract] | ' |
Operating Leases of Lessor Disclosure [Text Block] | ' |
NOTE 8 OPERATING LEASES | |
The Company leases office space in Salt Lake City, Utah (“Premises Lease”) which consists of approximately 5,482 square feet. The Company entered into a five year and five month lease agreement effective September 1, 2013. The annualized lease obligations for the 12 month period September 1, 2013 to August 31, 2014 is $67,155 with annualized lease obligations for the subsequent 4 years in the amount of $115,122. The Company has a prepaid security deposit of $11,122. For the years ended December 31, 2013 and 2012, the Premises Lease payments were $116,708 and $121,401, respectively. | |
The Company leases a printer, copier and fax machine. The original lease term was for 37 months beginning in March 2010 with month lease payments of $255. The Company entered into a new 36 month lease with new equipment commencing January 2013 with monthly payments of $654. For the years ended December 31, 2013 and 2012 the lease payments were $8,250 and $3,060, respectively. | |
OIL_AND_GAS_PROPERTY_LEASES
OIL AND GAS PROPERTY LEASES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
NOTE 9 OIL AND GAS PROPERTY LEASES | ||||||||
The following table sets forth the oil and gas property lease acreage with an expiration date within the next three years (December 31, 2016). The Company intends to renew or place into production all of these oil and gas property leases prior to their expiration. | ||||||||
Acreage Expirations | ||||||||
Years Ended December 31, | Gross (1) | Net (2) | ||||||
2014 | 5,820 | 5,192 | ||||||
2015 | 2,903 | 2,354 | ||||||
2016 | 80 | 72 | ||||||
Total | 8,803 | 7,618 | ||||||
1- | “Gross” means the total number of acres in which we have a working interest. | |||||||
2- | “Net” means the aggregate of the percentage working interests of the Company. | |||||||
ASSET_RETIREMENT_OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | |||||||
Asset Retirement Obligation Disclosure [Text Block] | ' | |||||||
NOTE 10 ASSET RETIREMENT OBLIGATIONS | ||||||||
FASB ASC 410 requires that an asset retirement obligation (“ARO”) associated with the retirement of a tangible long-lived asset be recognized as a liability in the period in which it is incurred and becomes determinable. Under this method, when liabilities for dismantlement and abandonment costs, excluding salvage values, are initially recorded, the carrying amount of the related oil and gas properties is increased. The fair value of the ARO asset and liability is measured using expected future cash outflows discounted at the Company’s credit-adjusted risk-free interest rate. Accretion of the liability is recognized each period using the interest method of allocation, and the capitalized cost is depleted using the units of production method. Should either the estimated life or the estimated abandonment costs of a property change materially upon the Company’s periodic review, a new calculation is performed using the same methodology of taking the abandonment cost and inflating it forward to its abandonment date and then discounting it back to the present using the Company’s credit-adjusted-risk-free rate. The carrying value of the asset retirement obligation is adjusted to the newly calculated value, with a corresponding offsetting adjustment to the asset retirement cost. | ||||||||
The following table summarizes the Company’s asset retirement obligation transactions recorded in accordance with the provisions of FASB ASC 410 during the years ended December 31, 2013 and 2012: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Beginning asset retirement obligation | $ | 482,157 | $ | 350,243 | ||||
Liabilities incurred for new wells placed into production | 17,294 | 140,876 | ||||||
Liabilities decreased for wells sold or plugged | -106,115 | -14,409 | ||||||
Accretion of discount on asset retirement obligations | 9,012 | 5,447 | ||||||
Revisions of previous estimates | 39,727 | - | ||||||
Ending asset retirement obligations | $ | 442,075 | $ | 482,157 | ||||
PREFERRED_STOCK
PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Preferred Stock [Text Block] | ' |
NOTE 11 PREFERRED STOCK | |
As of December 31, 2013 and 2012, the Company had 50,000,000 shares of preferred stock authorized at a par value of $0.001 per share and had no shares of preferred stock issued or outstanding. The Company has 5,000,000 of the 50,000,000 shares of preferred stock authorized at a par value of $0.001 per share designated as “Series A Preferred Stock”. | |
On August 31, 2012, the Company filed a Certificate of Designation with the Nevada Secretary of State, designating 5,000,000 shares of the Company’s authorized shares of preferred stock as Series A Preferred Stock. All shares of common stock rank junior to the Series A Preferred Stock in regards to payment of dividends, liquidation, dissolution, and winding up of the Company. | |
The Series A Preferred Stock is convertible, at the option of the holders, into shares of common stock of the Company, at a per share conversion price determined by dividing the stated value of each share of Series A Preferred Stock by the average price at which shares of the Company’s common stock were sold over the 30-day period prior to the conversion, minus a 25.0% discount to such 30-day average price (the “Conversion Price”). Notwithstanding the foregoing, at no time shall the Conversion Price be less than $1.00 or greater than $3.70 per share. | |
The Company may redeem all or any portion of the Series A Preferred Stock at any time after August 31, 2014, or at any time if the Company’s common stock has traded at a rate of more than 10,000 shares per day for at least 30 consecutive days and the average trading price of the common stock (based on a 30-day moving average) is greater than $5.00 per share. The Series A Preferred Stock shall be redeemed by conversion into common stock of the Company. The Series A Preferred Stock redeemed shall be converted into shares of common stock of the Company at a per share conversion price determined by dividing the stated value of each share of Series A Preferred Stock by the Conversion Price. Notwithstanding the foregoing, at no time shall the Conversion Price used to determine the rate at which the Series A Preferred Stock shall be redeemed be less than $1.00 or greater than $3.70 per share. The holders of the Series A Preferred Stock shall have no voting rights, except as provided by Nevada law. | |
The holders of the Series A Preferred Stock shall be entitled to receive cumulative dividends on the Series A Preferred Stock at the rate of ten percent (10.0%) of the stated value per share per annum, payable quarterly. | |
As of September 30, 2012, the Company completed the sale of 285,000 units (the “Units”), each unit consisting of one share of Series A Preferred Stock, with a stated value of $1.00 per share and one warrant exercisable to acquire one-tenth of a share of the Company’s common stock at a price of $3.70 per share for a period of 3 years from the closing date, in exchange for gross proceeds of $285,000. The convertible preferred stock was recorded as a liability at the fair value of $380,000 in accordance with FASB ASC 480. | |
On December 19, 2012, the Company entered into letter agreements with the five unaffiliated holders of all 285,000 shares of the Company’s issued and outstanding Series A Preferred Stock (the “Preferred Shareholders”), each with a face value of $1.00 per share. Pursuant to the Letter Agreements, the Company and the Preferred Shareholders agreed to the conversion of all of the issued and outstanding Preferred Shares, along with all accrued dividends on the Preferred Shares through December 31, 2012, into shares of the Company’s common stock. The total amount of accrued dividends on the Preferred Shares through December 31, 2012 equals $9,515 (the “Dividends”) (see also NOTE 12 COMMON STOCK). | |
Notwithstanding the terms contained in the Company’s Certificate of Designation, filed on August 31, 2012 with the Nevada Secretary of State, relating to the conversion of the Preferred Shares, the Company and the Preferred Shareholders agreed to a conversion rate of $1.60 per share applicable to the conversion of the Series A Preferred Stock and the Dividends. The Series A Preferred Stock and the Dividends were converted at the $1.60 per share rate into 184,072 shares of the common stock. According to FASB ASC 480, upon issuance of the shares to settle the obligation of $380,000, equity is increased by the amount of the liability. Therefore, the value of the 184,072 shares issued was recorded at the fair value plus accrued interest amount for a total of $389,515 or $2.12 per share. | |
In consideration of the Preferred Shareholders’ conversion of the Series A Preferred Stock and the Dividends into the 184,072 shares of common stock, the Company agreed to use its commercially reasonable efforts to include the Conversion Shares in any registration by the Company of any of its securities, other than a registration relating solely to employee benefit plans, a registration relating to the offer and sale of debt securities, a registration relating to a corporate reorganization or other Rule 145 transaction, or a registration on any registration form that does not permit secondary sales. | |
COMMON_STOCK
COMMON STOCK | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
NOTE 12 COMMON STOCK | |
Common Stock Issued During the Year Ended December 31, 2012 | |
The Company issued 1,806,203 shares of common stock to unaffiliated investors for a value of $4,394,148 at a price between $1.60 and $2.50 per share. The issuance of these shares related to purchases of various working interests in oil and gas properties and cancelation of JIBs receivables. | |
The Company issued 282,511 shares of common stock to a related party for a value of $567,000 at a price between $1.60 and $2.50 per share. The issuance of these shares related to purchases of various working interests in oil and gas properties. (SEE NOTE 16 RELATED PARTY TRANSACTIONS). | |
The Company issued 1,443,378 shares of common stock to directors, employees, and consultants as compensation for services valued at $3,609,444 at a price between $1.50 and $2.50 per share. The shares issued were fully vested and the value of services was expensed on the day of grant. In addition, the Company granted warrants to purchase up to 650,000 shares of common stock to certain consultants. The warrants have an exercise price between $2.50 and $12.50 that vest over two years from April 2012 and June 2012 and expire between March 2015 and June 2015. The warrants were valued under the Black-Scholes valuation model based on factors that were present at the time the warrants were granted (see NOTE 13 WARRANTS TO PURCHASE COMMON STOCK). These warrants are being expensed over the two year vesting periods. | |
The Company issued 1,335,277 shares of common stock to unaffiliated investors for cash of $3,127,252 at a price between $1.60 and $2.50 per share. In addition, the company granted warrants to purchase up to 935,196 shares of common stock with an exercise price between $2.50 and $5.00 per share and expire between January 2013 and July 2015. | |
The Company issued 77,950 shares of common stock to an unaffiliated investor and a creditor for a value of $194,875 or $2.50 per share. These shares were issued as negotiated payments for settlement of outstanding obligations including accrued interest. | |
The Company issued 403,650 shares of common stock valued at $949,932 at a price between $1.60 and $2.50 per share to various noteholders pursuant to the exercising of their rights to convert certain notes payable and the prepayment of interest on a note payable. | |
The Company issued 7,193 shares of common stock to a related party, related to the exercise of warrants in settlement of interest outstanding on a note payable. The exercise price was $11,509 or $1.60 per share (see NOTE 16 RELATED PARTY TRANSACTIONS). | |
A former officer and director of the Company, voluntarily agreed to return to the Company, 25,000 shares of the Company’s common stock valued at $62,500 or $2.50 per share, to offset a portion of the independent audit fees recently incurred by the Company to complete the 2010 audit of Freedom, which was required by Rule 8-04 of Regulation S-X of the Exchange Act. | |
The Company received 229,000 shares of common stock from an entity and one of our shareholders valued at $572,500 or $2.50 as partial payment for the sale of certain working interests in oil and gas properties. The shares were returned to the Company and subsequently cancelled. | |
The Company issued 184,072 shares of common stock valued at $389,515 or $2.12 per share to five unaffiliated investors, relating to our redemption and conversion of all 285,000 shares of preferred stock that were outstanding, together with accrued preferred stock dividends totaling $9,515, at a conversion rate of $1.60 per share. | |
Unaffiliated investors and a related party assigned warrants to purchase 143,213 shares of our common stock to several unaffiliated investors and a related party for a total cash consideration of $28,642 or $0.20 per warrant. These warrants were then exercised to purchase 143,213 shares of our common stock for a total cash consideration of $229,141 or $1.60 per share (see NOTE 16 RELATED PARTY TRANSACTIONS). | |
Common Stock Issued During the Year Ended December 31, 2013 | |
The Company issued 1,166,750 shares of common stock to unaffiliated investors and one director for cash of $1,069,000 at a price between $0.80 and $2.50 per share. In addition, the Company granted warrants to purchase up to 765,375 shares of common stock with an exercise price between $0.50 and $2.50 per share that expire between April 2013 and June 2014. Subsequent to the original issuance, warrants that were granted with an exercise price of $2.50 per share were repriced to $1.00 per share and warrants that expired in April 2013 were extended to December 2013 (see NOTE 13 WARRANTS TO PURCHASE COMMON STOCK and NOTE 16 RELATED PARTY TRANSACTIONS). | |
The Company issued 4,512,874 shares of common stock to unaffiliated debt holders at a negotiated and contract price between $0.12 and $2.50 per share for the extinguishment, reduction or settlement of notes payable, accrued interest, extension and conversion incentives, and issuance of new debt. The fair value of these shares at the time of issuance was $2,633,407. In addition, the Company granted warrants to purchase up to 3,044,853 shares of common stock with an exercise price at $1.00 that expire between April 2014 and December 2014. | |
The Company issued 10,000 shares of common stock at a negotiated price of $0.80 per share as partial consideration for the purchase of two leases in the HUOP Freedom Trend Project. The fair value of these shares at the time of purchase was $8,500. | |
The Company issued 1,102,064 shares of common stock at a negotiated settlement price between $0.80 and $2.50 per share to creditors, consultants, directors, officers and other employees as payment for outstanding payables. The fair value of the shares at the time of conversion was $889,832. In addition, the Company granted warrants to certain consultants to purchase up to 21,250 shares of common stock with an exercise price of $1.00 that expire in June 2014. | |
The Company issued 561,307 shares of common stock at a negotiated price between $0.25 and $2.50 per share to consultants and directors as compensation for services. The shares issued were fully vested and the fair value of the shares issued in the amount of $345,592 was expensed on the date of grant. | |
The Company issued 61,209 shares of common stock to two unaffiliated investors as the result of a ratchet provision on stock that was purchased for $5.00 per share that required the Company to issue additional shares of stock at no cost to the investor to make the effective price per share $2.50. | |
Two unaffiliated investors returned 25,626 shares of common stock, valued at $25,626, or $1.00 per share, and paid us $120,000 in cash to purchase a 20.00% working interest in our Wasatch National Forest #16-15 Well for a total value of $145,626. The shares were returned to the Company and subsequently cancelled. | |
The Company has 5,039,758 shares of common stock outstanding which were issued pursuant to written subscription agreements. As part of the agreements, a ratchet provision was included that in the event the Company sells shares of common stock or convertible securities at any time prior to December 31, 2013 at a price per share less than the respective subscription price of $0.60 to $0.80 per share, the Company contractually agrees to issue an additional amount of shares of common stock to make the effective price of the shares of common stock equal to the price per share of common stock that were sold for less than the subscription price. | |
These ratchet provisions are accounted for under the provisions of FASB ASC 815 which dictate the provisions to be accounted as embedded derivatives. These standards require the Company to determine the fair value of the ratchet provision and record a corresponding derivative liability in the financial statements. (See NOTE 17 FAIR VALUE). As of December 31, 2013, the Company is required to issue 816,200 shares of common stock under the terms of the ratchet provision. The Company issued shares of common stock pursuant to the ratchet provision in January 2014 (See NOTE 20 SUBSEQUENT EVENTS). | |
Treasury Stock | |
As of December 31, 2013 the Company had no shares of common stock held as treasury stock. During the year ended December 31, 2013 the Company acquired 25,626 shares of common stock valued at $25,626 or $1.00 per share. The Company retired all 25,626 shares during the year ended December 31 2013. During the year ended December 31, 2012 the Company acquired 254,000 shares of common stock valued at $635,000 or $2.50 per share. The Company retired all 254,000 shares during the year ended December 31, 2012. The Company accounts for treasury stock using the cost method. | |
WARRANTS_TO_PURCHASE_COMMON_ST
WARRANTS TO PURCHASE COMMON STOCK | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Warrants To Purchase Common Stock Disclosure [Abstract] | ' | ||||||||
Warrants to Purchase Common Stock Disclosure [Text Block] | ' | ||||||||
NOTE 13 WARRANTS TO PURCHASE COMMON STOCK | |||||||||
As of December 31, 2013 and December 31, 2012, there were 5,361,587 and 2,166,874 warrants to purchase shares of common stock outstanding and fully vested, respectively. During the years ended December 31, 2013 and 2012, warrants totaling 4,451,478 and 2,037,497 for shares of common stock were granted. | |||||||||
During the year ended December 31, 2013, certain previously issued warrants with an exercise price between $1.00 and $5.00 and an expiration date between April 2013 and January 2014 were modified to an exercise price between $0.50 and $1.00 and an expiration date of June 2014. The fair value of the modification in the amount of $184,477 was expensed. | |||||||||
Of the total warrants granted during the year ended December 31, 2013, 765,375 warrants were granted in conjunction with private placements of common stock for cash proceeds (see NOTE 12 COMMON STOCK) that have an exercise price of between $0.50 and $2.50 per share and expire between December 2013 and June 2014. | |||||||||
Of the total warrants granted during the year ended December 31, 2012, 935,196 warrants were granted in conjunction with private placements of common stock for cash proceeds (see NOTE 12 COMMON STOCK) that have an exercise price between $2.50 and $5.00 per share and expire one to three years from the date of grant and 85,000 warrants were granted in conjunction with a debt settlement that have an exercise price of $2.50 per share and will expire one year from the date of grant. | |||||||||
The remaining 3,686,103 and 1,017,301 warrants granted during the years ended December 31, 2013 and 2012, respectively, were issued in conjunction with issuance and extinguishment of certain debt, payment for services, property purchased from the Company and issuance of preferred stock. These transactions are accounted for by the Company under the provisions of FASB ASC 470 and FASB ASC 505. These standards require the Company to record an expense associated with the fair value of stock-based payments. The Company uses the Black-Scholes option valuation model to calculate the fair value of stock-based payments at the date of grant. Warrant pricing models require the input of highly subjective assumptions, including the expected price volatility. For warrants granted, the Company used a variety of comparable and peer companies as well as its own stock trading history to determine the expected volatility. The Company believes that when its own stock trading history did not exist, the use of peer company data fairly represented the expected volatility it would experience if the Company were actively publicly traded in the oil and gas industry over the contractual term of the warrants. Changes in these assumptions can materially affect the fair value estimate. | |||||||||
During the year ended December 31, 2013, the Company has determined the fair value of the 3,686,103 warrants granted to be $632,651, of which $617,276 has been expensed as of December 31, 2013. The remaining $15,375 will be expensed in future periods. | |||||||||
During the year ended December 31, 2012, the Company has determined the fair value of the 1,071,301 warrants granted to be $752,503, of which $448,096 has been expensed as of December 31, 2012. The remaining $304,407 is attributable to forfeited warrants and will not be expensed in future periods. | |||||||||
The following is the weighted average of the assumptions used in calculating the fair value of the warrants granted during the year using the Black-Scholes model: | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Fair market value | $ | 0.63 | $ | 2.46 | |||||
Exercise price | $ | 1 | $ | 5.83 | |||||
Risk free rates | 0.12 | % | 0.36 | % | |||||
Dividend yield | 0 | % | 0 | % | |||||
Expected volatility | 112.51 | % | 72.96 | % | |||||
Contractual term | 1.00 Year | 2.89 Years | |||||||
The weighted-average fair market value at the date of grant for warrants granted are as follows: | |||||||||
Fair value per warrant | $ | 0.1716 | $ | 0.7397 | |||||
Total warrants granted | 3,686,103 | 1,017,301 | |||||||
Total fair value of warrants granted | $ | 632,651 | $ | 752,503 | |||||
Weighted- | |||||||||
Average | |||||||||
Weighted | Remainder | ||||||||
Average | Contractual | ||||||||
Warrants | Exercise Price | Term in Year | |||||||
As of December 31, 2012: | |||||||||
Warrants outstanding as of January 1, 2012 | 1,269,693 | $ | 2.22 | 1.38 | |||||
Granted | 2,037,497 | $ | 4.84 | 1.9 | |||||
Exercised | -440,003 | $ | -1.6 | - | |||||
Expired/Forfeited | -700,313 | $ | -7.14 | - | |||||
Warrants outstanding as of December 31, 2012 | 2,166,874 | $ | 3.22 | 1.32 | |||||
As of December 31, 2013: | |||||||||
Warrants outstanding as of January 1, 2013 | 2,166,874 | $ | 3.22 | 1.32 | |||||
Granted | 4,451,478 | $ | 1 | 1 | |||||
Exercised | - | $ | - | - | |||||
Expired | -1,256,765 | $ | -2.13 | - | |||||
Warrants outstanding as of December 31, 2013 | 5,361,587 | $ | 1.27 | 0.63 | |||||
EMPLOYEE_STOCK_OPTIONS
EMPLOYEE STOCK OPTIONS | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Employee Stock Option Disclosure [Abstract] | ' | |||||||||||
Employee Stock Option Disclosure [Text Block] | ' | |||||||||||
NOTE 14 EMPLOYEE STOCK OPTIONS | ||||||||||||
In May 2013, the Company announced the appointment of Alan D. Gaines as Chairman of the Board of Directors and as part of his compensation package, the Company awarded Mr. Gaines 3,500,000 common stock options with an exercise price of $1.00 and which expire in May 2020. The options vest 50% upon the earlier of six months or the Company obtaining funding in excess of $3 million, 25% after one year and 25% after two years. The Company accounts for employee stock options according to FASB ASC 718 which requires the Company to calculate the fair value of the stock option on the date of grant and amortize over the vesting period of the options. | ||||||||||||
The following are the assumptions used in calculating the fair value of the options granted on May 6, 2013 using the Black-Scholes model: | ||||||||||||
Fair market value | $ | 0.9 | ||||||||||
Exercise price | $ | 1 | ||||||||||
Risk free rate | 0.11 | % | ||||||||||
Dividend yield | 0 | % | ||||||||||
Expected volatility | 71.29 | % | ||||||||||
Expected life | 4.08 Years | |||||||||||
The Company used a variety of comparable and peer companies to determine the expected volatility. The Company believes the use of peer company data fairly represents the expected volatility it would experience if the Company was more actively publicly traded in the oil and gas industry over the expected life of the options. The Company has no historical data regarding the expected life of the options and therefore used the simplified method of calculating the expected life. The risk free rate was calculated using the U.S. Treasury constant maturity rates similar to the expected life of the options, as published by the Federal Reserve. The Company has no plans to declare any future dividends. | ||||||||||||
The following table summarizes the Company’s total option activity for the year ended December 31, 2013: | ||||||||||||
Remaining | ||||||||||||
Options | Exercise Price | Term in Years | ||||||||||
Options outstanding as of December 31, 2012 | - | - | - | |||||||||
Granted | 3,500,000 | $ | 1 | 7 | ||||||||
Exercised | - | - | - | |||||||||
Forfeited/Expired | - | - | - | |||||||||
Options outstanding as of December 31, 2013 | 3,500,000 | $ | 1 | 6.35 | ||||||||
Outstanding and exercisable stock options as of December 31, 2013 are as follows: | ||||||||||||
Options Outstanding | Options Exercisable | |||||||||||
Number of Options Outstanding | Remaining Life (Years) | Exercise Price | Number of Options Exercisable | Exercise Price | ||||||||
3,500,000 | 6.35 | $ | 1 | 1,750,000 | $ | 1 | ||||||
The estimated fair value of the Company stock options, less expected forfeitures, is amortized over the options vesting period on the straight-line basis. The Company recognized the following equity-based compensation expenses during the year ended December 31, 2013: | ||||||||||||
Year Ended | ||||||||||||
December 31, 2013 | ||||||||||||
Stock based compensation expense | $ | 795,009 | ||||||||||
Income tax benefit recognized related to stock-based compensation | - | |||||||||||
Income tax benefit realized from the exercising and vesting of options | - | |||||||||||
As of December 31, 2013, there was $795,009 of total unrecognized compensation cost with a remaining vesting period of 1.35 years. | ||||||||||||
As of December 31, 2013, the intrinsic value of outstanding and vested stock options was as follows: | ||||||||||||
December 31, 2013 | ||||||||||||
Intrinsic value – options outstanding | - | |||||||||||
Intrinsic value – options exercisable | - | |||||||||||
Intrinsic value – options exercised | - | |||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
NOTE 15 INCOME TAXES | |||||||||
The Company utilizes the asset and liability approach to measuring deferred tax assets and liabilities based on temporary differences existing at each balance sheet date using currently enacted tax rates in accordance with FASB ASC 740. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||||||
The income tax expense for the years ended December 31, 2013 and 2012 consists of the following: | |||||||||
2013 | 2012 | ||||||||
Current income taxes | $ | 1,567 | $ | 400 | |||||
Deferred income taxes | - | - | |||||||
Provision for income taxes | $ | 1,567 | $ | 400 | |||||
The following is a reconciliation of the reported amount of income tax expense (benefit) for the years ended December 31, 2013 and 2012 to the amount of income tax expenses that would result from applying the statutory rate to pretax income. | |||||||||
Reconciliation of reported amount of income tax expense for the years ended December 31, 2013 and 2012 consists of the following: | |||||||||
2013 | 2012 | ||||||||
Income (Loss) before taxes and net operating loss | $ | -6,798,017 | $ | -7,992,796 | |||||
Federal statutory rate | @34 | % | @34 | % | |||||
Taxes (benefit) computed at federal statutory rates | -2,311,326 | -2,717,550 | |||||||
State taxes (benefit), net of federal taxes | -224,334 | -263,362 | |||||||
Effects of: | |||||||||
Share-based compensation | 314,993 | 4,683,347 | |||||||
Other permanent differences | 585,496 | 126,844 | |||||||
Freedom acquisition | - | 567,707 | |||||||
Increase (decrease) in valuation allowance | 1,636,738 | -2,396,586 | |||||||
Reported Expense | $ | 1,567 | $ | 400 | |||||
At December 31, 2013 and 2012, the Company has net operating loss carry forwards for Federal income tax purposes of $28,725,339 and $22,546,058, respectively, which expire in varying amounts during the tax years 2017 through 2033. As a result of the Freedom acquisition in 2011 and the corresponding change in ownership, approximately $7,439,758 of the Company’s federal NOL’s are subject to a Section 382 limitation resulting in possible limitations on the future use of these net operating loss carry forwards. | |||||||||
The components of the Company’s deferred tax assets for the years ended December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets | |||||||||
Current: | |||||||||
Accrued payroll | $ | 138,825 | $ | 256,057 | |||||
Current | 138,825 | 256,057 | |||||||
Non-current: | |||||||||
Net operating loss carry forwards (NOLs) | 10,714,551 | 8,409,680 | |||||||
Fixed assets | -257,081 | -125,479 | |||||||
Oil & gas properties | -3,229,857 | -2,939,716 | |||||||
Other | 7,624 | 136,781 | |||||||
Non-current | 7,235,237 | 5,481,266 | |||||||
Total deferred tax assets | 7,374,062 | 5,737,323 | |||||||
Less: valuation allowance | -7,374,062 | -5,737,323 | |||||||
Net deferred tax asset | $ | - | $ | - | |||||
To date, the Company has generated operating losses. As a result the Company has recorded a full valuation allowance against its net deferred tax assets as of December 31, 2013 and 2012. The change in the valuation allowance for the years ended December 31, 2013 and 2012 was $1,636,739 and ($2,396,586), respectively. | |||||||||
Under FASB ASC 740, tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards. As of December 31, 2013 and 2012, the Company has no liabilities for unrecognized tax benefits. | |||||||||
The Company’s policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within income tax expense. For the years ended December 31, 2013, and 2012, the Company did not recognize any interest or penalties in its consolidated statement of operations, nor did it have any interest or penalties accrued in its consolidated balance sheet at December 31, 2013 and 2012 relating to unrecognized tax benefits. | |||||||||
The tax years 2013, 2012, 2011, 2010, 2009 and 2008 remain open to examination for federal income tax purposes and by the other major taxing jurisdictions to which the Company is subject. In addition, due to the fact the Company merged with Freedom, Freedom’s tax returns, prior to the merger, for years 2004 to 2011 also remain open. | |||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||
Dec. 31, 2013 | |||
Related Party Transactions [Abstract] | ' | ||
Related Parties Transactions [Text Block] | ' | ||
NOTE 16 RELATED PARTY TRANSACTIONS | |||
Certain Relationships and Related Transactions | |||
Each of the related-party transactions described below were reviewed and approved by a majority vote of the Board of Directors and were completed on the same terms as other independent third-party transactions at or around the time of the transaction. With respect to transactions in which the related party is also a member of the Board of Directors, such director abstained from voting to approve the transaction. | |||
A. | Douglas C. Hewitt, Sr., President, Chief Executive Officer and Director | ||
Affiliates of Douglas C. Hewitt, Sr., our President and Chief Executive Officer and one of our Directors, have entered into a variety of transactions with Richfield as described below. | |||
The D. Mack Trust | |||
Mr. Hewitt is the sole beneficiary of The D. Mack Trust, an irrevocable trust established by Mr. Hewitt on May 15, 2009. | |||
⋅ | As of March 31, 2014, the D. Mack Trust had ORRIs ranging from 0.50% to 3.625% in 1,636 net acres leased by Richfield in Kansas and Oklahoma, all of which were in place prior to January 1, 2012 or were purchased from MacKov in November 2012 (as described in further detail below). | ||
The D. Mack Trust received $23,284 and $12,489 in royalties in 2013 and 2012, respectively, from the overriding royalty interests described above. | |||
Mountain Home Petroleum Business Trust | |||
Mr. Hewitt was a 33.4% beneficiary of, and a trustee of, the Mountain Home Petroleum Business Trust, a Utah business trust (“Mountain Home”) during the period beginning January 1, 2011 and ending December 31, 2012. On December 19, 2012, Mr. Hewitt resigned as a Trustee of Mountain Home and as of December 31, 2012, Mr. Hewitt was no longer a beneficiary of Mountain Home. | |||
Prior to January 1, 2012, Mountain Home obtained the overriding royalty interests in conjunction with the establishment of the Utah Overthrust Agreement and the Liberty Prospect Agreement. No oil or natural gas has been extracted from the HUOP Freedom Trend Prospect or the HPI Liberty #1 Well and Liberty Prospect and therefore no royalties have been paid on those prospects. | |||
Zions Energy Corporation | |||
Zions Energy Corporation, a Utah corporation (“Zions”), is a wholly-owned subsidiary of Mountain Home and was affiliated with Mr. Hewitt by virtue of his beneficial interest in Mountain Home. Mr. Hewitt’s beneficial interest in Zions terminated concurrently with the termination of his affiliation with Mountain Home. | |||
Richfield participated in the following transactions with Zions in 2012: | |||
⋅ | In three transactions in February and March 2012, Richfield sold an aggregate of 1.00% working interest in the Moroni #1-AXZH Well and the 320 acres leasehold for total cash consideration of $77,561 to Zions. This purchase was made on the same terms as other third-party transactions that were completed in December 2011 and January 2012; | ||
⋅ | In two transactions in February and March 2012, Richfield sold an aggregate of 3.00% working interest in the Koelsch Field, including the requirement to participate in the RFO Koelsch #25-1 Well, for total cash consideration of $9,090 to Zions. This purchase was made on the same terms as other third-party transactions that were completed in December 2011 and March 2012; | ||
⋅ | In May 2012, Richfield received $50,000 in cash plus it acquired a 1.00% working interest in the Moroni #1-AXZH Well and the 320 acres leasehold from Zions in exchange for a 1.50% carried interest in the first well to be drilled in the shallow zone on the HUOP Freedom Trend Prospect. This exchange was made on the same terms as another third-party transaction that was completed in May 2012; and | ||
⋅ | In August 2012, Zions loaned us $50,000 and we issued a Note Payable to Zions at 6.0% per annum, due September 30, 2012. In conjunction with the loan, we granted warrants to purchase 15,000 shares of our common stock, exercisable at $5.00 per share and expiring on September 29, 2013. The warrants were valued at $3.68 using the Black-Scholes option valuation model and were expensed on the date of grant. We repaid the note in September 2012, including $247 in interest. | ||
During 2012, Zions received $4,662 in revenues from oil sales from our Koelsch Field. | |||
B. | Glenn G. MacNeil, Chief Financial Officer and Director | ||
Glenn G MacNeil, our Chief Financial Officer and one of our Directors, along with his spouse, owns 100% of the ownership interests in MacKov Investments Limited, an Ontario, Canada incorporated private company (“MacKov”). | |||
Richfield participated in the following transactions with MacKov between January 1, 2012 and March 31, 2014: | |||
⋅ | In November 2012, MacKov sold ORRIs ranging from 0.25% to 2.25% in 1,127 net acres of oil and natural gas properties located in Kansas to the D. Mack Trust and one unaffiliated investor; | ||
⋅ | In February 2012, MacKov purchased a 1.50% working interest in the Koelsch Field from Richfield for cash of $4,545. In October 2012, MacKov sold all of its 5.00% working interest in the Koelsch Field to Richfield for $262,500. The consideration consisted of MacKov exercising 154,753 outstanding warrants to purchase 154,753 shares of our common stock valued at $247,605 or $1.60 per share and our issuance of 5,958 shares of our common stock valued at $14,895 or $2.50 per share. Each of these transactions were completed on the same terms as other independent third-party transactions in the Koelsch Field at or around the time of the transaction; | ||
⋅ | In October 2012, MacKov sold all of its 1.00% carried working interest BPO and APO in the HPI Liberty #1 Well, its 1.00% working interest BPO and APO in the Liberty Prospect, its 2.25% working interest BPO and 1.75% working interest APO in the HPI Liberty #1 Well and Liberty Prospect to Richfield in exchange for 96,800 shares of common stock, valued at $242,000 or $2.50 per share. Each of these transactions were completed on the same terms as our other independent third-party transactions at or around the time of the transactions; | ||
⋅ | In October 2012, MacKov sold all of its 0.50% working interest in the deep zones and its 0.25% working interest in the shallow zones of the HUOP Freedom Trend Prospect to Richfield in exchange for 25,000 shares of common stock, valued at $62,500 or $2.50 per share. Each of these transactions were completed on the same terms as our other independent third-party transactions at or around the time of the transaction; | ||
⋅ | In February 2012, MacKov purchased a 0.50% working interest in the Moroni #1-AXZH Well and the 320 acre leasehold from Richfield for cash of $38,781. This purchase was made on the same terms as other independent third-party transactions in the Independence Field that were completed at or around the time of the transaction. On June 30, 2012, in connection with our sale to Skyline Oil, MacKov sold its 0.50% working interest in the Moroni #1-AXZH Well and the surrounding 320 acres to Skyline Oil; | ||
⋅ | On June 30, 2012, MacKov settled a short term loan in the amount of $217,050 along with $82,172 of interest for a total of $299,222 for consideration consisting of a payment from Richfield to MacKov of $287,713 in cash and MacKov’s election to exercise warrants to purchase 7,193 shares of common stock at an exercise price of $11,509 or $1.60 per share. Each of these transactions were completed on the same terms as our other independent third-party loan transactions at or around the time of the transaction; | ||
⋅ | In November 2012, MacKov granted a demand loan to Richfield in the amount of $65,000 with interest accruing at 10.0% per annum, secured by a 1% working interest in certain HUOP Freedom Trend Prospect leases (the “MacKov Demand Note”). On December 31, 2012, the Company paid all accrued interest under the MacKov Demand Note, in the amount of $727 and the principle was transferred to an independent third party. | ||
As of December 31, 2013, MacKov has no working interests or ORRIs in oil or natural gas properties that we control or in which we own an interest and MacKov has no warrants outstanding to purchase our common stock. | |||
For the years ended December 31, 2013 and 2012, MacKov received $0 and $12,642, respectively, in royalties relating to ORRIs and oil sales from working interest from Kansas leases including the Koelsch Field that were previously owned by MacKov. | |||
C. | Joseph P. Tate, a Director | ||
Joseph P. Tate became one of our directors effective March 31, 2012. Mr. Tate has entered into the following transactions with Richfield between January 1, 2012 and December 31, 2013: | |||
⋅ | Mr. Tate is a beneficial owner of land within the HUOP Freedom Trend Prospect. The Company has entered into two oil and natural gas leases with Mr. Tate totaling 1,816 acres (the “Tate Leases”). The Tate Leases consist of i) a new lease the Company entered into in March 2012 relating to 400 acres, for $100,000; and ii) the renewal of an existing lease the Company entered into on March 2012 for a five-year term relating to 1,416 acres, for $283,200. The total amount of $383,200 was paid to Mr. Tate through the issuance of 153,280 shares of common stock, valued at $2.50 per share. Pursuant to the terms of each Tate Lease, Mr. Tate is entitled to 12.50% landowner royalty-interest revenues relating to hydrocarbons produced by Richfield relating to each of the Tate Leases (See NOTE 20 SUBSEQUENT EVENTS for new lease agreement). No oil or natural gas has been extracted from the HUOP Freedom Trend Prospect and therefore the Company has not paid Mr. Tate any landowner royalties with respect to the Tate Leases; | ||
⋅ | In March 2012, Mr. Tate and Richfield agreed to the repayment of a $100,000 outstanding payable, including interest of $18,000, through the issuance of 47,200 shares of common stock, valued at $118,000, or $2.50 per share. | ||
⋅ | In October 2012, MacKov assigned warrants to purchase 88,057 shares of common stock to Joseph P. Tate and several unaffiliated investors for total cash consideration of $17,611, or $0.20 per warrant. Mr. Tate and the other unaffiliated investors then exercised the warrants to purchase 88,057 shares of common stock for total cash consideration of $140,889, or $1.60 per share. | ||
⋅ | In May 2013, Mr. Tate purchased 250,000 shares of common stock of the Company for cash in the amount of $200,000, or $0.80 per share. The shares are subject to a ratchet provision that in the event the Company sells shares of common stock or convertible securities at any time prior to December 31, 2013 at a price per share less than $0.80, the Company shall issue an additional amount of shares of common stock to make the effective price of the shares of common stock equal to the price per share of common stock that were sold for less than $0.80. In addition, the Company granted warrants to Mr. Tate to purchase up to 125,000 shares of common stock with an exercise price of $1.00 that expire in May 2014. In January 2014, 262,821 shares of common stock were issued pursuant to the terms of this provision. | ||
D. | Alan D. Gaines, Chairman of the Board | ||
Alan D. Gaines, Chairman of the Board of Directors, is a party to the following transaction with the Company between January 1, 2012 and December 31, 2013: | |||
⋅ | In May 2013, the Company announced the appointment of Alan D. Gaines as Chairman of the Board of Directors and as part of his compensation package, the Company awarded Mr. Gaines 3,500,000 common stock options with an exercise price of $1.00 and expire in May 2020. The options vest 50% upon the earlier of six months or the Company obtaining funding in excess of $3 million, 25% after one year and 25% after two years. In January 2014, the options were cancelled and 4,908,532 shares of common stock were issued at value of $1,472,560 or $0.30 per share (See NOTE 20 SUBSEQUENT EVENTS). | ||
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Fair Value Disclosures [Abstract] | ' | ||||
Fair Value Disclosures [Text Block] | ' | ||||
NOTE 17 FAIR VALUE | |||||
FASB ASC 820 defines fair value, establishes a framework for measuring fair value under U.S. generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined under FASB ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under FASB ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, with the first two inputs considered observable and the last input considered unobservable, that may be used to measure fair value as follows: | |||||
· | Level one — Quoted market prices in active markets for identical assets or liabilities; | ||||
· | Level two — Inputs other than level one inputs that are either directly or indirectly observable; and | ||||
· | Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. | ||||
Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The Company has two liabilities measured at fair value, the Company’s asset retirement obligation (See NOTE 10 ASSET RETIREMENT OBLIGATIONS) and a derivative liability in connection with a ratchet provision on certain issuances of the Company’s common stock (see NOTE 12 COMMON STOCK). The Company has no assets that are measured at fair value. | |||||
The fair value of the Company’s asset retirement obligations are determined using discounted cash flow methodologies based on inputs that are not readily available in public markets. These estimates are derived from historical costs as well as management’s expectation of future costs environments. As there is no corroborating market activity to support the assumptions used, the Company has designated these liabilities as Level 3. A reconciliation of the beginning and ending balances of the Company’s asset retirement obligation is presented in NOTE 10 ASSET RETIREMENT OBLIGATIONS. | |||||
The fair value of the Company’s derivative liability was determined using estimates and assumptions that are not readily available in public markets and has designated this liability as Level 3. As of December 31, 2013 the derivative liability had an estimated fair value of $310,156. The following table presents a reconciliation of the beginning and ending balances of our derivative liability, as of December 31, 2013: | |||||
Balance at December 31, 2012 | $ | - | |||
New Derivative Liability | 1,066,932 | ||||
Transfers to (from) Level 3 | - | ||||
Total (gains)/losses included in earnings | -756,776 | ||||
Issuances | - | ||||
Balance at December 31, 2013 | $ | 310,156 | |||
FINANCIAL_INSTRUMENTS_AND_CONC
FINANCIAL INSTRUMENTS AND CONCENTRATION RISKS | 12 Months Ended |
Dec. 31, 2013 | |
Investments, All Other Investments [Abstract] | ' |
Financial Instruments Disclosure [Text Block] | ' |
NOTE 18 FINANCIAL INSTRUMENTS AND CONCENTRATION RISKS | |
The Company’s financial instruments include cash and cash equivalents, accounts receivable and accounts payable. The carrying amount of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value because of their immediate or short-term maturities. | |
Substantially all of the Company’s accounts receivable result from oil and natural gas sales or joint interest billings to third parties in the oil and gas industry. This concentration of customers and joint interest owners may impact the Company’s overall credit risk in that these entities may be similarly affected by changes in economic and other conditions. As of December 31, 2013, 70% of the accounts receivable balance resulted from three entities. As of December 31, 2012, 71% of the accounts receivable balances were resulted from two entities. Historically, the Company has not experienced significant credit losses on such receivables. There was no bad debt recorded against accounts receivable for the years ended December 31, 2013 and 2012. The Company cannot ensure that such losses will not be realized in the future. For the years ended December 31, 2013 and 2012 the percentage of revenues resulting from producing wells in Kansas was 99% and 100%, respectively. | |
LEGAL_PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
NOTE 19 LEGAL PROCEEDINGS | |
On February 1, 2012, Nostra Terra Oil & Gas Company (“NTOG”) filed an action against Richfield, Hewitt Petroleum, Inc., Hewitt Energy Group, Inc., and Hewitt Energy Group, LLC in the Twenty-Third Judicial District Court of Russell County, Kansas. The complaint alleges that we defaulted on our repayment obligations under a note and security agreement, dated April 13, 2011, in the principal amount of $1,300,000 and accrued interest at 10% per annum. During 2013 the Company made substantial payments towards the payment of the obligation. On February 14, 2014 the Court entered a final judgment in favor of Nostra Terra Oil and Gas Company and against Richfield Oil & Gas Company and Hewitt Energy Group, Inc. in the sum of $220,849. The Company is in the process of paying the judgment. | |
On September 30, 2013 Roger Buller filed an action against Richfield Oil & Gas Company in the Twentieth Judicial District Court of Russell County, Kansas. The case was filed based on a claimed failure to pay a Note in full. Richfield contends that the Note has been paid in full by the issuance of Richfield Common Stock which was accepted by Mr. Buller for the payment of the Note. The action requests the sum of $50,386 plus interest. The Company believes that this claim was paid in full in September 2011 and plans on vigorously defending the action. | |
In February 2014, the Company became aware that on June 6, 2012, United States Fidelity and Guaranty Company filed an action against Douglas C. Hewitt based upon a liability as a guarantor of a plugging bond posted with the Oklahoma Corporation Commission. The Oklahoma Corporation Commission claimed the Bond for plugging a well previously owned by HEGCO Canada and Hewitt Energy Group LLC. Hewitt Petroleum, Inc., the predecessor in interest to Richfield Oil & Gas Company, purchased the assets of Hewitt Energy in January 2009. Pursuant to that purchase Hewitt Petroleum agreed to indemnify Douglas C. Hewitt. The Bond was guaranteed by HEGCO Canada Inc, which has been discharged in Bankruptcy, Douglas C. Hewitt, J. David Gowdy, Rodney Babb, and Nemaha Services. The Company is seeking contribution towards the judgment from Rodney Babb and Nemaha Services. As of March 17, 2014 the Company has paid $1,500 towards the obligation. The total obligation is $30,754. | |
At a hearing with the Kansas Corporation Commission (“KCC”) on November 21, 2013 the KCC imposed a $10,000 fine against Hewitt Energy Group, Inc., for the failure to bring certain wells into KCC compliance pursuant to an order issued in August 2012. The Company had brought 16 of 23 wells into KCC compliance as of November 21, 2013. At the November 21, 2013 KCC hearing Hewitt Energy Group, Inc., was provided three weeks per well to finalize the last seven wells to be brought into compliance. In February 2014 Hewitt Energy Group, Inc. was granted an additional three weeks due to local weather conditions. As of March 31, 2014 Hewitt Energy Group Inc. has brought four of the last seven wells into compliance. The remaining three wells are required to be completed by May 23, 2014. If the wells are not in compliance by May 23, 2014, Hewitt Energy Group’s operating license may be suspended until the wells are in compliance and Hewitt Energy Group may be fined. The Company is currently working to bring the last three wells into KCC compliance. | |
Litigation in the Ordinary Course | |
We have become involved in litigation from time to time relating to claims arising in the ordinary course of our business. We do not believe that the ultimate resolution of such claims would have a material effect on our business, results of operations, financial condition or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material effect on our business, results of operations, financial condition and cash flows. | |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 20 SUBSEQUENT EVENTS | |
In January 2014, The Company issued 3,969,408 shares of common stock to unaffiliated investors and one director pursuant to a ratchet provision on stock that was previously issued with written subscription agreements (see NOTE 12 COMMON STOCK).The ratchet provision expired on December 31, 2013 with the terms of the provision requiring 816,200 shares of common stock be issued to make the effective price of the original issuances of stock equal to $0.60 per share. However, in January 2014, the Company determined to issue 3,153,208 additional shares to make the effective price of the original issuances of stock equal to $0.39 per share. | |
In January 2014, The Board of Directors approved the cancellation of 3,500,000 outstanding employee stock options issued to Mr. Alan D. Gaines, our Executive Chairman of the Board of Directors (see NOTE 14 EMPLOYEE STOCK OPTIONS) and the issuance to him of 4,908,532 restricted Company common stock representing 9.9% of the Company’s common shares at the time. The stock was fully vested and the fair value of the shares issued in the amount of $1,472,560 or $0.30 per share was expensed on the date of grant. | |
In January 2014, the Company issued 200,000 shares of common stock to a director for cash of $50,000 at a price of $0.25 per share. In addition, the Company granted warrants to purchase up to 200,000 shares of common stock with an exercise price of $0.25 per share that expire in July 2014. | |
In January 2014, The Company consolidated notes payable and other short term advances from and unaffiliated investor in the amount of $2,665,747 into a convertible line of credit with interest at 12% per annum and due on June 30, 2014. Since January 2014, additional advances in the amount of $314,744 have been received. | |
In January and March 2014, the Company issued 888,598 shares of common stock to unaffiliated debt holders at a contract price between $0.12 and $0.13 per share for the conversion of notes payable, accrued interest, and conversion incentives. The fair value of these shares at the time of issuance was $196,614 or between $0.21 and $0.25 per share. | |
In February and March 2014, the Company issued 669,167 shares of common stock to consultants as compensation for services. The shares issued were fully vested and the fair value of the shares issued in the amount of $166,799 or between $0.22 and $0.26 per share was expensed on the date of grant. | |
In March 2014, the Company issued 1,300,000 shares of common stock to unaffiliated investors pursuant to a joint venture agreement to finish the completion of the HPI Liberty #1 Well in the Liberty Prospect. The shares issued were fully vested and the fair value of the shares at the time of issuance was $276,380 or $0.21 per share. In addition, the Company granted warrants to purchase up to 1,300,000 shares of common stock with an exercise price of $0.25 that expire in August 2014. | |
In March 2014, the Company issued 280,000 shares of common stock to a consultant for a value of $64,400 or $0.23 per share. These shares were issued as a negotiated payment for settlement of an outstanding payable. | |
In March 2014, the Company issued warrants to purchase up to 600,000 shares of common stock to an existing debt holder as consideration to extend the due date of a note payable to December 31, 2014. The exercise price of the warrants is $0.25 and they expire in March 2015. | |
In March 2014, the Company consolidated and replaced two expiring oil and gas leases with Joseph P. Tate, a director, and Jenifer M. Tate as Joint Tenants (see NOTE 16 RELATED PARTY TRANSACTIONS), covering a combined 1,823 gross acres in the HUOP Freedom Trend Prospect. The initial bonus for the new lease totals $182,308 and represents a prepayment of all delay rentals for the 10 year primary term commencing April 15, 2014. The initial bonus amount is similar to third party 10 year primary term leases obtained by the company in the HUOP Freedom Trend Prospect during 2013. | |
SUPPLEMENTAL_OIL_AND_NATURAL_G
SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Supplemental Oil And Natural Gas Information [Abstract] | ' | |||||||
Supplemental Oil And Natural Gas Information [Text Block] | ' | |||||||
NOTE 21 SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED) | ||||||||
Oil and Natural Gas Reserves and Related Financial Data | ||||||||
Information with respect to the Company's crude oil and natural gas producing activities is presented in the following tables. Reserve quantities, as well as certain information regarding future production and discounted cash flows, were determined by Pinnacle Energy Services L.L.C. as of December 31, 2013 and 2012, an independent petroleum consultant based on information provided by the Company. | ||||||||
The following table sets forth the aggregate capitalized costs related to oil and natural gas producing activities at December 31, 2013 and 2012. | ||||||||
2013 | 2012 | |||||||
Unproved Oil and Gas Properties | $ | 14,095,020 | $ | 14,164,053 | ||||
Proved Oil and Gas Properties | $ | 7,139,663 | $ | 6,581,725 | ||||
Well and Related Equipment | $ | 1,997,913 | $ | 1,024,972 | ||||
Accumulated Depreciation, Depletion, and Amortization, and Valuation Allowances | $ | -1,224,523 | $ | -923,083 | ||||
Net Capitalized Costs | $ | 22,008,073 | $ | 20,847,667 | ||||
The following table sets forth the costs incurred in oil and gas property acquisition, exploration and development activities for the years ended December 31, 2013 and 2012. | ||||||||
2013 | 2012 | |||||||
Acquisition of Properties | ||||||||
Proved | $ | - | $ | 2,033,125 | ||||
Unproved | $ | 297,773 | $ | 4,368,860 | ||||
Exploration Costs | $ | 200,244 | $ | 764,417 | ||||
Development Costs | $ | 2,149,872 | $ | 1,849,445 | ||||
The following tables present the Company's independent petroleum consultant’s estimates of our proved oil and natural gas reserves, as of December 31, 2013 and 2012. The Company emphasizes that reserves are approximations and are expected to change as additional information becomes available. Reservoir engineering is a subjective process of estimating underground accumulations of crude oil and natural gas that cannot be measured in an exact way and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. | ||||||||
Oil (Bbl) | Natural Gas (Mcf) | |||||||
Net Proved Developed and Undeveloped Reserves at December 31, 2011 | 675,630 | 267,400 | ||||||
Revisions of Previous Estimates | 572,988 | 207,369 | ||||||
Improved Recovery | - | - | ||||||
Purchase of Reserves in Place | 254,691 | 15,760 | ||||||
Extensions, Discoveries and Other Additions | 96,440 | 46,771 | ||||||
Net Production | -10,931 | - | ||||||
Sale of Reserves in Place | -20,628 | -9,990 | ||||||
Net Proved Developed and Undeveloped Reserves at December 31, 2012 | 1,568,190 | 527,310 | ||||||
Revisions of Previous Estimates | -50,222 | -2,310 | ||||||
Improved Recovery | - | - | ||||||
Purchase of Reserves in Place | - | - | ||||||
Extensions, Discoveries and Other Additions | 57,508 | - | ||||||
Net Production | -11,331 | - | ||||||
Sale of Reserves in Place | -223,145 | - | ||||||
Net Proved Developed and Undeveloped Reserves at December 31, 2013 | 1,341,000 | 525,000 | ||||||
During 2013, several factors impacted our total Net Proved Developed and Undeveloped Reserves by the following: | ||||||||
· | We modified the adjusted economic prices from $2.068/MCF for natural gas and $91.05/Bbl for oil in the Perth and South Haven Fields, $88.45/Bbl for oil in all other Kansas properties, and $84.90/Bbl for oil in the Wyoming properties used in our Reserves and Engineering Evaluation, dated January 18, 2013 (our “2012 Pinnacle Reserve Report”), to $2.75/MCF for natural gas and $93.28/Bbl for oil in the Perth and South Haven Fields, $90.68/Bbl for oil in all other Kansas properties, and $87.13/Bbl for oil in the Wyoming properties used in the 2013 Pinnacle Reserve Report. The pricing revisions caused our Net Proved Developed and Undeveloped Reserves to increase by 47 oil MBbls and to increase by 143 natural gas MMcf. | |||||||
· | We increased the lease operating expenses for our development plan to reflect our historical cost levels which resulted in our Net Proved Developed and Undeveloped Reserves to decrease by 51 oil MBbls and a decrease by 145 natural gas MMcf. | |||||||
· | We made changes to our two-year development plan, including adding seven new well locations which increased our Net Proved Developed and Undeveloped Reserves by 92 oil MBbls and 33 natural gas MMcf; removing four well locations from our new two-year development plan which decreased our reserves by 51 oil MBbls and 18 natural gas MMcf; and three well locations being moved to probable which decreased our reserves by 88 oil MBbls and 15 natural gas MMcf for a total net decrease of 47 oil MBbls and an decrease of 0 natural gas MMcf. | |||||||
· | We sold a 60% working interest in the Graham Reservoir Field in Uinta County, Wyoming, which had reserves in place. This sale caused our Net Proved Developed and Undeveloped Reserves to decrease by 233 oil MBbls and by 0 natural gas MMcf. | |||||||
· | We did recompletion work on an existing wellbore in the South Haven Field to increase Net Proved Developed and Undeveloped Reserves by 57 oil MBbls and 0 natural gas MMcf, through conversion of Probable Reserves into Net Proved Developed and Undeveloped Reserves. | |||||||
· | Our actual production resulted in a decrease in our total Net Proved Developed and Undeveloped Reserves of 11 oil MBbls. There was no natural gas production. | |||||||
Oil (Bbl) | Natural Gas (MCF) | |||||||
Proved Developed Reserves | ||||||||
Beginning of year 2012 | 106,060 | - | ||||||
End of year 2012 | 546,560 | 118,620 | ||||||
Beginning of year 2013 | 546,560 | 118,620 | ||||||
End of year 2013 | 472,000 | 103,000 | ||||||
Proved Undeveloped Reserves | ||||||||
Beginning of year 2012 | 569,570 | 267,400 | ||||||
End of year 2012 | 1,021,630 | 408,690 | ||||||
Beginning of year 2013 | 1,021,630 | 408,690 | ||||||
End of year 2013 | 869,000 | 421,000 | ||||||
Proved reserves are estimated quantities of oil and natural gas, which geological and engineering data indicate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are proved reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. Proved undeveloped reserves are included for reserves for which there is a high degree of confidence in their recoverability and they are scheduled to be drilled within the next five years. | ||||||||
Standardized Measure of Discounted Future Net Cash Inflows and Changes Therein | ||||||||
The following table presents a standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves and the changes in standardized measure of discounted future net cash flows relating to proved oil and natural gas were prepared in accordance with the provisions of ASC 932-235-50. Future cash inflows were computed by applying oil and natural gas prices that were calculated by using the unweighted arithmetic average of the first-day-of-the-month price for each month of the 12-month period prior to the ending date of the period, to estimated future production. Future production and development costs were computed by estimating the expenditures to be incurred in developing and producing the proved oil and natural gas reserves at the end of the year, based on year-end costs and assuming continuation of existing economic conditions. Future income tax expenses were calculated by applying appropriate year-end tax rates to future pretax cash flows relating to proved oil and natural gas reserves, less the tax basis of properties involved and tax credits and loss carry forwards relating to oil and natural gas producing activities. Future net cash flows are discounted at the rate of 10% annually to derive the standardized measure of discounted future cash flows. Actual future cash inflows may vary considerably, and the standardized measure does not necessarily represent the fair value of the Company's oil and natural gas reserves. | ||||||||
Standardized Measure of Discounted Future Net Cash Flows at December 31, 2013 and 2012 | ||||||||
2013 | 2012 | |||||||
Future Cash Inflows | $ | 124,095,840 | $ | 140,043,710 | ||||
Future Development Costs | -22,309,810 | -26,062,540 | ||||||
Future Production Costs | -56,390,950 | -59,329,510 | ||||||
Future Income Tax Expenses | -16,932,365 | -20,385,069 | ||||||
Future Net Cash Flows | $ | 28,462,715 | $ | 34,266,591 | ||||
10% Annual Discount for Estimated Timing of Cash Flows | -10,356,209 | -12,994,274 | ||||||
Standardized Measure of Discounted Future Net Cash Flows | $ | 18,106,506 | $ | 21,272,317 | ||||
The following table presents the aggregate change in the standardized measure of discounted future net cash flows for the years ended December 31, 2013 and 2012. | ||||||||
Changes in the Standardized Measure of Discounted Cash Flows | ||||||||
for the Years Ended December 31, 2013 and 2012 | ||||||||
2013 | 2012 | |||||||
Net Change in Sales and Transfer Prices and in Production (Lifting) Costs Related to Future Production | $ | -4,699,746 | $ | 15,115,402 | ||||
Changes in Estimated Future Development Costs | 3,752,730 | -13,914,960 | ||||||
Sales and Transfers of Oil and Gas Produced During the Period | -774,426 | -952,566 | ||||||
Net Change Due to Extensions, Discoveries, and Improved Recovery | 1,565,304 | 3,104,457 | ||||||
Net Change Due to Purchases and Sales of Reserves in Place | -5,935,737 | 5,341,555 | ||||||
Net Change Due to Revisions in Quantity Estimates | -2,164,844 | 11,736,779 | ||||||
Previously Estimated Development Costs Incurred During the Period | 2,042,378 | 1,730,765 | ||||||
Accretion of Discount | -404,174 | -186,278 | ||||||
Other – Unspecified | - | - | ||||||
Net Change in Income Taxes | 3,452,704 | -10,506,966 | ||||||
Aggregate Change in the Standardized Measure of Discounted Future Net Cash Flows for the Year | $ | -3,165,811 | $ | 11,468,188 | ||||
During 2013, there were several factors that affected our Aggregate Change in the Standardized Measure of the Discounted Future Net Cash Flows for the Year. Net Change in Sales and Transfer Prices and in Production (Lifting) Costs Related to Future Production from December 31, 2013 and 2012 are represented by the change in the economic prices and lease operating expenses used in our engineering reports. We modified the adjusted economic prices from $2.068/MCF for natural gas and $91.05/Bbl for oil in the Perth and South Haven Fields, $88.45/Bbl for oil in all other Kansas properties, and $84.90/Bbl for oil in the Wyoming properties used in our Reserves and Engineering Evaluation, dated January 18, 2013 (our “2012 Pinnacle Reserve Report”), to $2.75/MCF for natural gas and $93.28/Bbl for oil in the Perth and South Haven Fields, $90.68/Bbl for oil in all other Kansas properties, and $87.13/Bbl for oil in the Wyoming properties used in the 2013 Pinnacle Reserve Report. In addition, we increased the lease operating expenses to reflect our historical cost levels. Net Change Due to Revisions in Quantity Estimates, and Changes in Estimated Future Development Costs, were affected by a change in our work plan. We made changes to our two-year development plan, including adding seven new well locations, removing four well locations and moved three well locations from proved to probable. Net Change Due to Purchases and Sales of Reserves in Place was affected by the sale of working interest in one property. In addition to these, there were changes in our Standardized Measure of the Discounted Future Net Cash Flow because of our actual development costs and production for the year and associated changes in Income Taxes, Accretion of Discount. | ||||||||
Oil and natural gas prices were calculated by using the unweighted arithmetic average of the first-day-of-the-month price for each month of the 12-month period prior to the ending date of the period, and were adjusted to reflect applicable transportation and quality differentials on a well-by-well basis to arrive at realized sales prices used to estimate the Company's reserves. The prices for the Company's reserve estimates were as follows: | ||||||||
Natural Gas | Oil | |||||||
MCF | Bbl | |||||||
December 31, 2012: | ||||||||
South Haven, Perth and Oklahoma Properties | $ | 2.068 | $ | 91.05 | ||||
All Other Kansas Properties | $ | 2.068 | $ | 88.45 | ||||
Wyoming Properties | $ | 2.068 | $ | 84.9 | ||||
December 31, 2013: | ||||||||
South Haven and Perth Properties | $ | 2.75 | $ | 93.28 | ||||
All Other Kansas Properties | $ | 2.75 | $ | 90.68 | ||||
Wyoming Properties | $ | 2.75 | $ | 87.13 | ||||
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Consolidation, Policy [Policy Text Block] | ' |
Principles of Consolidation and Presentation | |
The Company was incorporated in Nevada on April 8, 2011. Contemporaneously with the incorporation, the Company merged with its predecessor company, HPI. In connection with the HPI Merger, HPI was merged out of existence and the Company assumed all of the assets and liabilities of HPI. As a result, the Company’s historical financial statements are a continuation of the financial statements of HPI. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, HEGINC, HOPIN, HR Land, HOI KS and HOI UT. All significant intercompany transactions and balances have been eliminated in consolidation. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Cash and Cash Equivalents | |
The Company considers highly liquid investments with insignificant interest rate risk and original maturities to the Company of three months or less to be cash equivalents. Cash equivalents consist primarily of cash on hand, interest-bearing bank accounts and money market funds. The Company’s cash positions represent assets held in checking and money market accounts. These assets are generally available on a daily or weekly basis and are highly liquid in nature. If the balances are greater than $250,000, the Company does not have FDIC coverage on the entire amount of bank deposits. The Company believes this risk is minimal. | |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' |
Accounts Receivable | |
Trade accounts receivable are primarily from oil and natural gas sales and net amounts due from Joint Interest Billings (“JIBs”) from working interest holders in the Company’s oil and gas properties in which we are the operator. These trade accounts receivables are recorded at the invoiced amount, net of allowances for doubtful amounts. The Company routinely reviews outstanding accounts receivable balances for estimated uncollectible accounts and regularly reviews collectability and establishes or adjusts the allowances for doubtful accounts receivables using the specific identification method and records a reserve for amounts not expected to be fully recovered. Actual balances are not applied against the reserve until substantially all collection efforts have been exhausted. At December 31, 2013 and 2012, the Company had no allowance for doubtful accounts. | |
Oil and Gas Properties Policy [Policy Text Block] | ' |
Oil and Gas Properties Accounting Policies | |
The Company accounts for oil and gas properties by the successful efforts method. Under this method of accounting, costs relating to the acquisition and development of proved areas are capitalized when incurred. The costs of development wells are capitalized whether productive or non-productive. Leasehold acquisition costs are capitalized when incurred. If proved reserves are found on an unproved property, leasehold cost is transferred to proved properties. Exploration dry holes are charged to expense when it is determined that no commercial reserves exist. Other exploration costs, including personnel costs, geological and geophysical expenses and delay rentals for oil and gas leases, are charged to expense when incurred. The costs of acquiring or constructing support equipment and facilities used in oil and natural gas producing activities are capitalized. Production costs are charged to expense as incurred and are those costs incurred to operate and maintain the Company’s wells and related equipment and facilities. | |
Depletion of producing oil and gas properties is recorded based on units of production. Acquisition costs of proved properties are depleted on the basis of all proved reserves, developed and undeveloped, and capitalized development costs (wells and related equipment and facilities) are depleted on the basis of proved developed reserves. As more fully described below, proved reserves are estimated by the Company’s independent petroleum engineer and are subject to future revisions based on availability of additional information. As discussed in NOTE 10 ASSET RETIREMENT OBLIGATIONS, asset retirement costs are recognized when the asset is placed in service, and are depleted over proved reserves using the units of production method. | |
Oil and gas properties are reviewed for impairment when facts and circumstances indicate that their carrying value may not be recoverable. The Company compares net capitalized costs of proved oil and gas properties to estimated undiscounted future net cash flows using management’s expectations of future oil and natural gas prices. These future price scenarios reflect the Company’s estimation of future price volatility. If net capitalized costs exceed estimated undiscounted future net cash flows, the measurement of impairment is based on estimated fair value, using estimated discounted future net cash flows based on management’s expectations of future oil and natural gas prices. The Company did record an impairment allowance for expiring leaseholds on proven properties for the year ended December 31, 2013. The Company recorded no impairment allowance on proven properties for the year ended December 31, 2012. | |
Unproven properties that are individually significant are assessed for impairment and if considered impaired are charged to expense when such impairment is deemed to have occurred. We perform periodic assessment of individually significant unproved crude oil and gas properties for impairment on a quarterly basis and we would recognize a loss at the time if there was an impairment by providing an impairment allowance. In determining whether a significant unproved property is impaired we consider numerous factors including, but not limited to, current exploration plans, favorable or unfavorable exploratory activity on adjacent leaseholds, our management and geologists’ evaluation of the lease, and the remaining months in the lease term. As of December 31, 2013 and 2012, the Company does not have unproved properties whose acquisition costs are not significant. Thus, all unproven properties were assessed for impairment and the Company recorded an impairment allowance for expiring leases for the years ended December 31, 2013 and 2012. | |
The sale of a partial interest in a proved oil and gas property is accounted for as normal retirement and no gain or loss is recognized as long as this treatment does not significantly affect the units-of-production depletion rate. If the units-of-production rate is significantly affected, then the sale shall be accounted for as the sale of an asset, and a gain or loss shall be recognized. The unamortized cost of the property or group of properties shall be apportioned to the interest sold and the interest retained on the basis of the fair values of those interests. A gain or loss is recognized for all other sales of producing properties and is included in the results of operations. The sale of a partial interest in an unproved property is accounted for as a recovery of cost when substantial uncertainty exists as to recovery of the cost applicable to the interest retained. A gain on the sale is recognized to the extent the sales price exceeds the carrying amount of the unproved property. A gain or loss is recognized for all other sales of nonproducing properties and is included in the results of operations. | |
Property, Plant and Equipment, Policy [Policy Text Block] | ' |
Other Property and Equipment | |
Other property and equipment include property and equipment that are not oil and gas properties and are recorded at cost and depreciated using the straight-line method over their estimated useful lives of five to seven years. Expenditures for replacements, renewals, and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Long-lived assets, other than oil and gas properties, are evaluated for impairment to determine if current circumstances and market conditions indicate the carrying amount may not be recoverable. The Company has not recognized any impairment losses on non-oil and gas long-lived assets. | |
Asset Retirement Obligations, Policy [Policy Text Block] | ' |
Asset Retirement Obligations | |
Asset retirement obligation relates to future costs associated with plugging and abandonment of crude oil and natural gas wells, removal of equipment and facilities from leased acreage and returning the land to its original condition. Estimates are based on historical experience of plugging and abandoning wells, estimated remaining lives of those wells based on reserves estimates, external estimates to plug and abandon the wells in the future and federal and state regulatory requirements. The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred and a corresponding increase in the carrying amount of the related long-lived asset. The liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized. | |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition | |
Revenue from the sale of crude oil, natural gas and natural gas liquids is recorded when the significant risks and rewards of ownership of the product is transferred to the buyer, which is usually when legal title passes to the external party. For crude oil and natural gas liquids delivery generally occurs upon pick up at the field tank battery and for natural gas delivery occurs at the pipeline delivery point. Revenue is not recognized for the production in tanks, or oil in pipelines that has not been delivered to the purchaser. Revenue is measured net of discounts and royalties. Royalties and severance taxes are incurred based upon the actual price received from the sales. The Company uses the sales method of accounting for natural gas balancing of natural gas production and would recognize a liability if the existing proven reserves were not adequate to cover the current imbalance situation. As of December 31, 2013 and 2012, the Company’s natural gas production was in balance, meaning its cumulative portion of natural gas production taken and sold from wells in which it has an interest equaled its entitled interest in natural gas production from those wells. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
Stock-Based Compensation | |
The Company has accounted for stock-based compensation under the provisions of FASB ASC 718. This standard requires the Company to record an expense associated with the fair value of stock-based compensation. The Company uses the Black-Scholes option valuation model to calculate the value of options and warrants at the date of grant. Option and warrant pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. | |
Stock Issuance [Policy Text Block] | ' |
Stock Issuance | |
The Company records the stock-based awards issued to consultants and other external entities for goods and services at either the fair market value of the goods received or services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in FASB ASC 505. | |
Income Tax, Policy [Policy Text Block] | ' |
Income Taxes | |
The Company accounts for income taxes under FASB ASC 740. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is “more likely than not” that some component or all of the benefits of deferred tax assets will not be realized. | |
The tax effects from an uncertain tax position can be recognized in the consolidated financial statements only if the position is more likely than not of being sustained if the position were to be challenged by a taxing authority. The Company has examined the tax positions taken in its tax returns and determined that there are no uncertain tax positions. As a result, the Company has recorded no uncertain tax liabilities in its consolidated balance sheet. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Loss Per Common Share | |
Basic earnings per share (“EPS”) are computed by dividing net income (loss) (the numerator) by the weighted average number of common shares outstanding for the period (the denominator). Diluted EPS is computed by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, and restricted stock. The number of potential common shares outstanding relating to stock options, warrants, and restricted stock is computed using the treasury stock method. | |
As the Company has incurred losses for the years ended December 31, 2013 and 2012, the potentially dilutive shares are anti-dilutive and are thus not added into the loss per share calculations. As of December 31, 2013 and 2012, there were 11,937,087 and 2,707,898 potentially dilutive shares, respectively. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
The preparation of financial statements under GAAP in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to proved oil and natural gas reserve volumes, certain depletion factors, future cash flows from oil and gas properties, estimates relating to certain oil and natural gas revenues and expenses, valuation of share based compensation, valuation of asset retirement obligations, estimates of future oil and natural gas commodity pricing and the valuation of deferred income taxes. Actual results may differ from those estimates. | |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' |
Impairment | |
FASB ASC 360 requires long-lived assets to be held and used be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. There was no impairment identified at December 31, 2013 and 2012. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
New Accounting Pronouncements | |
From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption. | |
Reclassification, Policy [Policy Text Block] | ' |
Reclassifications | |
Certain prior period balances have been reclassified to conform to the current period presentation. Such reclassifications had no impact on net loss, statements of cash flows, working capital or equity previously reported. | |
Reverse Stock Split [Policy Text Block] | ' |
Reverse Stock Split | |
As more fully described in NOTE 12 COMMON STOCK, effective October 23, 2012, the Company implemented a 1-for-10 reverse stock split of its issued and outstanding common stock. Under the guidance of FASB ASC 505, all common share and per common share information in the accompanying consolidated financial statements and these notes to the financial statements have been retroactively restated to reflect the reverse common stock split. | |
Jumpstart Our Business Startups Act[Policy Text Block] | ' |
Jumpstart Our Business Startups Act (“JOBS Act”), adopted January 3, 2012 | |
The Company qualifies as an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933 (the “Securities Act”) as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As such, the Company is permitted to rely on exemptions from various reporting requirements including, but not limited to, the requirement to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act of 2002, and the requirement to submit certain executive compensation matters to shareholder advisory votes such as “say on pay” and “say on frequency.” | |
In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of the benefits of this extended transition period. The Company’s financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards. | |
The Company will remain an emerging growth company up to the fifth anniversary of its first registered sale of common equity securities, or until the earliest of (a) the last day of the first fiscal year in which its annual gross revenues exceed $1 billion, (b) the date that it becomes a “large accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which would occur if the market value of its common stock held by non-affiliates exceeds $700 million as of the last business day of its most recently completed second fiscal quarter, or (c) the date on which it has issued more than $1 billion in non-convertible debt during the preceding three-year period. | |
NOTES_PAYABLE_Tables
NOTES PAYABLE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Notes Payable Disclosure [Abstract] | ' | |||||||
Schedule of Notes Payable [Table Text Block] | ' | |||||||
Notes Payable consists of the following: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Note Payable, interest at 12.0% per annum, monthly payments of $7,500, due October 2013, secured by a 5.00% working interest in certain HUOP Freedom Trend Prospect leases. | $ | - | $ | 750,000 | ||||
Note Payable, interest at 10.0% per annum, monthly payments of $3,200, secured by a 1.00% working interest in certain HUOP Freedom Trend Prospect leases. | - | 366,709 | ||||||
Note Payable, interest at 7.5% per annum, monthly payments of $1,949, due January 2014, secured by vehicle. | 8,496 | 24,759 | ||||||
Note Payable, interest at 10.0% per annum, monthly payments of $15,000, due June 2014, secured by a 10.00% working interest in certain HUOP Freedom Trend Prospect leases. | 581,327 | 716,327 | ||||||
Note Payable, interest at 10.0% per annum, monthly payments of $5,000, secured by a 1.00% working interest in certain HUOP Freedom Trend Prospect leases. | - | 87,056 | ||||||
Note Payable, interest at 0.0% per annum, monthly payments of $1,500, due on demand, unsecured. | - | 7,380 | ||||||
Note Payable, interest at 8.0% per annum, monthly payments of $10,000, due on demand, unsecured. | 94,701 | 115,879 | ||||||
Note Payable, interest at 10.0% per annum, secured by certain new leases, rights, and interests in the Central Utah Overthrust Project. | - | 250,000 | ||||||
Note Payable, interest at 6.0% per annum, quarterly payments of $50,000, due January 2014, secured by a 10.00% working interest in the Liberty Prospect. | 389,000 | 589,000 | ||||||
Note Payable, interest at 0.0% per annum, unsecured. | - | 190,000 | ||||||
Note Payable, interest at 0.0% per annum, due on demand, unsecured | 15,000 | - | ||||||
Note Payable, interest at 10.0% per annum, secured by a 1.00% working interest in certain HUOP Freedom Trend Prospect leases. | - | 65,000 | ||||||
Note Payable, interest at 12.0% per annum, due on demand, secured by a 10.00% working interest in the Liberty Prospect. | 50,000 | - | ||||||
Note Payable, interest at 8.0% per annum, due on demand, secured by a working interest in certain Kansas leases. | 100,000 | - | ||||||
Note Payable, interest at 8.0% per annum, due on demand, secured by a working interest in certain Kansas leases. | 100,000 | - | ||||||
Total Notes Payable | 1,338,524 | 3,162,110 | ||||||
Less: Current Portion (includes demand notes) | -1,338,524 | -1,487,419 | ||||||
Long-Term Portion | $ | - | $ | 1,674,691 | ||||
Schedule Of Estimated Annual Future Maturities Of Notes Payables [Table Text Block] | ' | |||||||
Estimated annual future maturities of Notes Payables are as follows: | ||||||||
Years Ended December 31, | Amount | |||||||
2014 | $ | 1,338,524 | ||||||
Thereafter | - | |||||||
Total | $ | 1,338,524 | ||||||
CONVERTIBLE_NOTES_PAYABLE_Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Convertible Notes Payable Disclosure [Abstract] | ' | |||||||
Schedule of Convertible Notes Payable [Table Text Block] | ' | |||||||
Convertible Notes Payable consists of the following: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Note Payable, interest at 12.0% per annum, due on demand, convertible into common shares of | $ | 52,560 | $ | 52,560 | ||||
the Company at a conversion rate of $2.50 per common share, unsecured. | ||||||||
Note Payable, interest at 10.0% per annum, due on demand, convertible into common shares of | 369,090 | 1,300,000 | ||||||
the Company at a conversion rate of $2.50 per common share, secured by certain | ||||||||
Kansas Leases and 10.00% working interest in certain Fountain Green Project Leases (see | ||||||||
NOTE 19 LEGAL PROCEEDINGS). | ||||||||
Note Payable, interest at 10.0% per annum, due March 2014, convertible into common shares of | 1,310,000 | - | ||||||
the Company at a conversion rate of $0.60 per common share subject to a ratchet adjustment provision | ||||||||
(see NOTE 12 COMMON STOCK), secured by a working interest in certain Kansas and Wyoming leases. | ||||||||
Note Payable, interest at 10.0% per annum, due March 2014, convertible into common shares of | 150,000 | - | ||||||
the Company at a conversion rate of $0.60 per common share subject to a ratchet adjustment provision | ||||||||
(see NOTE 12 COMMON STOCK), unsecured. | ||||||||
Note Payable, interest at 12.0% per annum, due on demand, convertible into common shares of | 50,000 | - | ||||||
the Company at a conversion rate determined by 50% of the weighted average price of the stock | ||||||||
during the five trading days immediately preceding the conversion date, secured by a 10.0% working | ||||||||
interest in the Liberty Prospect. | ||||||||
Note Payable, interest at 12.0% per annum, due on demand, convertible into common shares of | 50,000 | - | ||||||
the Company at a conversion rate determined by 50% of the weighted average price of the stock | ||||||||
during the five trading days immediately preceding the conversion date, secured by a 10.0% working | ||||||||
interest in the Liberty Prospect. | ||||||||
Total Convertible Notes Payable | 1,981,650 | 1,352,560 | ||||||
Less: Unamortized Debt Discount | -120,264 | - | ||||||
Less: Current Portion (includes demand notes) | -1,861,386 | -1,352,560 | ||||||
Long-Term Portion | $ | - | $ | - | ||||
Schedule of Estimated Annual Future Maturities of Convertible Notes Payables [Table Text Block] | ' | |||||||
Estimated annual future maturities of Convertible Notes Payables are as follows: | ||||||||
Years Ended December 31, | Amount | |||||||
2014 | $ | 1,981,650 | ||||||
Thereafter | - | |||||||
Total | $ | 1,981,650 | ||||||
CAPITAL_LEASE_OBLIGATION_Table
CAPITAL LEASE OBLIGATION (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | ' | ||||
Estimated annual future maturities of capital leases are as follows: | |||||
Years Ended December 31, | Amount | ||||
2014 | $ | 135,311 | |||
Thereafter | - | ||||
Total | $ | 135,311 | |||
OIL_AND_GAS_PROPERTY_LEASES_Ta
OIL AND GAS PROPERTY LEASES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Schedule Of Oil And Gas Property Lease Acreage With Expiration Date Within Next Three Years [Table Text Block] | ' | |||||||
The following table sets forth the oil and gas property lease acreage with an expiration date within the next three years (December 31, 2016). The Company intends to renew or place into production all of these oil and gas property leases prior to their expiration. | ||||||||
Acreage Expirations | ||||||||
Years Ended December 31, | Gross (1) | Net (2) | ||||||
2014 | 5,820 | 5,192 | ||||||
2015 | 2,903 | 2,354 | ||||||
2016 | 80 | 72 | ||||||
Total | 8,803 | 7,618 | ||||||
1- | “Gross” means the total number of acres in which we have a working interest. | |||||||
2- | “Net” means the aggregate of the percentage working interests of the Company. | |||||||
ASSET_RETIREMENT_OBLIGATIONS_T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | |||||||
Schedule of Asset Retirement Obligations [Table Text Block] | ' | |||||||
The following table summarizes the Company’s asset retirement obligation transactions recorded in accordance with the provisions of FASB ASC 410 during the years ended December 31, 2013 and 2012: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Beginning asset retirement obligation | $ | 482,157 | $ | 350,243 | ||||
Liabilities incurred for new wells placed into production | 17,294 | 140,876 | ||||||
Liabilities decreased for wells sold or plugged | -106,115 | -14,409 | ||||||
Accretion of discount on asset retirement obligations | 9,012 | 5,447 | ||||||
Revisions of previous estimates | 39,727 | - | ||||||
Ending asset retirement obligations | $ | 442,075 | $ | 482,157 | ||||
WARRANTS_TO_PURCHASE_COMMON_ST1
WARRANTS TO PURCHASE COMMON STOCK (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Warrants To Purchase Common Stock Disclosure [Abstract] | ' | ||||||||
Schedule of Assumptions Used [Table Text Block] | ' | ||||||||
The following is the weighted average of the assumptions used in calculating the fair value of the warrants granted during the year using the Black-Scholes model: | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Fair market value | $ | 0.63 | $ | 2.46 | |||||
Exercise price | $ | 1 | $ | 5.83 | |||||
Risk free rates | 0.12 | % | 0.36 | % | |||||
Dividend yield | 0 | % | 0 | % | |||||
Expected volatility | 112.51 | % | 72.96 | % | |||||
Contractual term | 1.00 Year | 2.89 Years | |||||||
Schedule of Fair Market Value at Date of Grant for Warrants Granted [Table Text Block] | ' | ||||||||
The weighted-average fair market value at the date of grant for warrants granted are as follows: | |||||||||
Fair value per warrant | $ | 0.1716 | $ | 0.7397 | |||||
Total warrants granted | 3,686,103 | 1,017,301 | |||||||
Total fair value of warrants granted | $ | 632,651 | $ | 752,503 | |||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Warrant Outstanding [Table Text Block] | ' | ||||||||
Weighted- | |||||||||
Average | |||||||||
Weighted | Remainder | ||||||||
Average | Contractual | ||||||||
Warrants | Exercise Price | Term in Year | |||||||
As of December 31, 2012: | |||||||||
Warrants outstanding as of January 1, 2012 | 1,269,693 | $ | 2.22 | 1.38 | |||||
Granted | 2,037,497 | $ | 4.84 | 1.9 | |||||
Exercised | -440,003 | $ | -1.6 | - | |||||
Expired/Forfeited | -700,313 | $ | -7.14 | - | |||||
Warrants outstanding as of December 31, 2012 | 2,166,874 | $ | 3.22 | 1.32 | |||||
As of December 31, 2013: | |||||||||
Warrants outstanding as of January 1, 2013 | 2,166,874 | $ | 3.22 | 1.32 | |||||
Granted | 4,451,478 | $ | 1 | 1 | |||||
Exercised | - | $ | - | - | |||||
Expired | -1,256,765 | $ | -2.13 | - | |||||
Warrants outstanding as of December 31, 2013 | 5,361,587 | $ | 1.27 | 0.63 | |||||
EMPLOYEE_STOCK_OPTIONS_Tables
EMPLOYEE STOCK OPTIONS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Employee Stock Option Disclosure [Abstract] | ' | |||||||||||
Schedule of Assumptions Used In Employee Stock Option [Table Text Block] | ' | |||||||||||
The following are the assumptions used in calculating the fair value of the options granted on May 6, 2013 using the Black-Scholes model: | ||||||||||||
Fair market value | $ | 0.9 | ||||||||||
Exercise price | $ | 1 | ||||||||||
Risk free rate | 0.11 | % | ||||||||||
Dividend yield | 0 | % | ||||||||||
Expected volatility | 71.29 | % | ||||||||||
Expected life | 4.08 Years | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||
The following table summarizes the Company’s total option activity for the year ended December 31, 2013: | ||||||||||||
Remaining | ||||||||||||
Options | Exercise Price | Term in Years | ||||||||||
Options outstanding as of December 31, 2012 | - | - | - | |||||||||
Granted | 3,500,000 | $ | 1 | 7 | ||||||||
Exercised | - | - | - | |||||||||
Forfeited/Expired | - | - | - | |||||||||
Options outstanding as of December 31, 2013 | 3,500,000 | $ | 1 | 6.35 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | ' | |||||||||||
Outstanding and exercisable stock options as of December 31, 2013 are as follows: | ||||||||||||
Options Outstanding | Options Exercisable | |||||||||||
Number of Options Outstanding | Remaining Life (Years) | Exercise Price | Number of Options Exercisable | Exercise Price | ||||||||
3,500,000 | 6.35 | $ | 1 | 1,750,000 | $ | 1 | ||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | ' | |||||||||||
The Company recognized the following equity-based compensation expenses during the year ended December 31, 2013: | ||||||||||||
Year Ended | ||||||||||||
December 31, 2013 | ||||||||||||
Stock based compensation expense | $ | 795,009 | ||||||||||
Income tax benefit recognized related to stock-based compensation | - | |||||||||||
Income tax benefit realized from the exercising and vesting of options | - | |||||||||||
Schedule Of Intrinsic Value of Outstanding And Vested Stock Options [Table Text Block] | ' | |||||||||||
As of December 31, 2013, the intrinsic value of outstanding and vested stock options was as follows: | ||||||||||||
December 31, 2013 | ||||||||||||
Intrinsic value – options outstanding | - | |||||||||||
Intrinsic value – options exercisable | - | |||||||||||
Intrinsic value – options exercised | - | |||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||
The income tax expense for the years ended December 31, 2013 and 2012 consists of the following: | |||||||||
2013 | 2012 | ||||||||
Current income taxes | $ | 1,567 | $ | 400 | |||||
Deferred income taxes | - | - | |||||||
Provision for income taxes | $ | 1,567 | $ | 400 | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
Reconciliation of reported amount of income tax expense for the years ended December 31, 2013 and 2012 consists of the following: | |||||||||
2013 | 2012 | ||||||||
Income (Loss) before taxes and net operating loss | $ | -6,798,017 | $ | -7,992,796 | |||||
Federal statutory rate | @34 | % | @34 | % | |||||
Taxes (benefit) computed at federal statutory rates | -2,311,326 | -2,717,550 | |||||||
State taxes (benefit), net of federal taxes | -224,334 | -263,362 | |||||||
Effects of: | |||||||||
Share-based compensation | 314,993 | 4,683,347 | |||||||
Other permanent differences | 585,496 | 126,844 | |||||||
Freedom acquisition | - | 567,707 | |||||||
Increase (decrease) in valuation allowance | 1,636,738 | -2,396,586 | |||||||
Reported Expense | $ | 1,567 | $ | 400 | |||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
The components of the Company’s deferred tax assets for the years ended December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets | |||||||||
Current: | |||||||||
Accrued payroll | $ | 138,825 | $ | 256,057 | |||||
Current | 138,825 | 256,057 | |||||||
Non-current: | |||||||||
Net operating loss carry forwards (NOLs) | 10,714,551 | 8,409,680 | |||||||
Fixed assets | -257,081 | -125,479 | |||||||
Oil & gas properties | -3,229,857 | -2,939,716 | |||||||
Other | 7,624 | 136,781 | |||||||
Non-current | 7,235,237 | 5,481,266 | |||||||
Total deferred tax assets | 7,374,062 | 5,737,323 | |||||||
Less: valuation allowance | -7,374,062 | -5,737,323 | |||||||
Net deferred tax asset | $ | - | $ | - | |||||
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Fair Value Disclosures [Abstract] | ' | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||
The following table presents a reconciliation of the beginning and ending balances of our derivative liability, as of December 31, 2013: | |||||
Balance at December 31, 2012 | $ | - | |||
New Derivative Liability | 1,066,932 | ||||
Transfers to (from) Level 3 | - | ||||
Total (gains)/losses included in earnings | -756,776 | ||||
Issuances | - | ||||
Balance at December 31, 2013 | $ | 310,156 | |||
SUPPLEMENTAL_OIL_AND_NATURAL_G1
SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED) (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Supplemental Oil And Natural Gas Information [Abstract] | ' | |||||||
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure [Table Text Block] | ' | |||||||
The following table sets forth the aggregate capitalized costs related to oil and natural gas producing activities at December 31, 2013 and 2012. | ||||||||
2013 | 2012 | |||||||
Unproved Oil and Gas Properties | $ | 14,095,020 | $ | 14,164,053 | ||||
Proved Oil and Gas Properties | $ | 7,139,663 | $ | 6,581,725 | ||||
Well and Related Equipment | $ | 1,997,913 | $ | 1,024,972 | ||||
Accumulated Depreciation, Depletion, and Amortization, and Valuation Allowances | $ | -1,224,523 | $ | -923,083 | ||||
Net Capitalized Costs | $ | 22,008,073 | $ | 20,847,667 | ||||
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure [Table Text Block] | ' | |||||||
The following table sets forth the costs incurred in oil and gas property acquisition, exploration and development activities for the years ended December 31, 2013 and 2012. | ||||||||
2013 | 2012 | |||||||
Acquisition of Properties | ||||||||
Proved | $ | - | $ | 2,033,125 | ||||
Unproved | $ | 297,773 | $ | 4,368,860 | ||||
Exploration Costs | $ | 200,244 | $ | 764,417 | ||||
Development Costs | $ | 2,149,872 | $ | 1,849,445 | ||||
Schedule Of Proved Developed And Undeveloped Oil And Gas Reserve Estimates [Table Text Block] | ' | |||||||
The following tables present the Company's independent petroleum consultant’s estimates of our proved oil and natural gas reserves, as of December 31, 2013 and 2012 | ||||||||
Oil (Bbl) | Natural Gas (Mcf) | |||||||
Net Proved Developed and Undeveloped Reserves at December 31, 2011 | 675,630 | 267,400 | ||||||
Revisions of Previous Estimates | 572,988 | 207,369 | ||||||
Improved Recovery | - | - | ||||||
Purchase of Reserves in Place | 254,691 | 15,760 | ||||||
Extensions, Discoveries and Other Additions | 96,440 | 46,771 | ||||||
Net Production | -10,931 | - | ||||||
Sale of Reserves in Place | -20,628 | -9,990 | ||||||
Net Proved Developed and Undeveloped Reserves at December 31, 2012 | 1,568,190 | 527,310 | ||||||
Revisions of Previous Estimates | -50,222 | -2,310 | ||||||
Improved Recovery | - | - | ||||||
Purchase of Reserves in Place | - | - | ||||||
Extensions, Discoveries and Other Additions | 57,508 | - | ||||||
Net Production | -11,331 | - | ||||||
Sale of Reserves in Place | -223,145 | - | ||||||
Net Proved Developed and Undeveloped Reserves at December 31, 2013 | 1,341,000 | 525,000 | ||||||
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block] | ' | |||||||
Oil (Bbl) | Natural Gas (MCF) | |||||||
Proved Developed Reserves | ||||||||
Beginning of year 2012 | 106,060 | - | ||||||
End of year 2012 | 546,560 | 118,620 | ||||||
Beginning of year 2013 | 546,560 | 118,620 | ||||||
End of year 2013 | 472,000 | 103,000 | ||||||
Proved Undeveloped Reserves | ||||||||
Beginning of year 2012 | 569,570 | 267,400 | ||||||
End of year 2012 | 1,021,630 | 408,690 | ||||||
Beginning of year 2013 | 1,021,630 | 408,690 | ||||||
End of year 2013 | 869,000 | 421,000 | ||||||
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure [Table Text Block] | ' | |||||||
Standardized Measure of Discounted Future Net Cash Flows at December 31, 2013 and 2012 | ||||||||
2013 | 2012 | |||||||
Future Cash Inflows | $ | 124,095,840 | $ | 140,043,710 | ||||
Future Development Costs | -22,309,810 | -26,062,540 | ||||||
Future Production Costs | -56,390,950 | -59,329,510 | ||||||
Future Income Tax Expenses | -16,932,365 | -20,385,069 | ||||||
Future Net Cash Flows | $ | 28,462.72 | $ | 34,266,591 | ||||
10% Annual Discount for Estimated Timing of Cash Flows | -10,356,209 | -12,994,274 | ||||||
Standardized Measure of Discounted Future Net Cash Flows | $ | 18,106,506 | $ | 21,272,317 | ||||
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows [Table Text Block] | ' | |||||||
Changes in the Standardized Measure of Discounted Cash Flows | ||||||||
for the Years Ended December 31, 2013 and 2012 | ||||||||
2013 | 2012 | |||||||
Net Change in Sales and Transfer Prices and in Production (Lifting) Costs Related to Future Production | $ | -4,699,746 | $ | 15,115,402 | ||||
Changes in Estimated Future Development Costs | 3,752,730 | -13,914,960 | ||||||
Sales and Transfers of Oil and Gas Produced During the Period | -774,426 | -952,566 | ||||||
Net Change Due to Extensions, Discoveries, and Improved Recovery | 1,565,304 | 3,104,457 | ||||||
Net Change Due to Purchases and Sales of Reserves in Place | -5,935,737 | 5,341,555 | ||||||
Net Change Due to Revisions in Quantity Estimates | -2,164,844 | 11,736,779 | ||||||
Previously Estimated Development Costs Incurred During the Period | 2,042,378 | 1,730,765 | ||||||
Accretion of Discount | -404,174 | -186,278 | ||||||
Other – Unspecified | - | - | ||||||
Net Change in Income Taxes | 3,452,704 | -10,506,966 | ||||||
Aggregate Change in the Standardized Measure of Discounted Future Net Cash Flows for the Year | $ | -3,165,811 | $ | 11,468,188 | ||||
Oil and Gas Net Production, Average Sales Price and Average Production Costs Disclosure [Table Text Block] | ' | |||||||
The prices for the Company's reserve estimates were as follows: | ||||||||
Natural Gas | Oil | |||||||
MCF | Bbl | |||||||
December 31, 2012: | ||||||||
South Haven, Perth and Oklahoma Properties | $ | 2.068 | $ | 91.05 | ||||
All Other Kansas Properties | $ | 2.068 | $ | 88.45 | ||||
Wyoming Properties | $ | 2.068 | $ | 84.9 | ||||
December 31, 2013: | ||||||||
South Haven and Perth Properties | $ | 2.75 | $ | 93.28 | ||||
All Other Kansas Properties | $ | 2.75 | $ | 90.68 | ||||
Wyoming Properties | $ | 2.75 | $ | 87.13 | ||||
ORGANIZATION_AND_NATURE_OF_BUS1
ORGANIZATION AND NATURE OF BUSINESS (Details Textual) | Dec. 31, 2013 |
acre | |
Organization And Nature Of Business [Line Items] | ' |
Gas and Oil Area, Developed and Undeveloped, Gross | 35,000 |
GOING_CONCERN_Details_Textual
GOING CONCERN (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Going Concern [Line Items] | ' | ' |
Net Income (Loss) Attributable to Parent | $6,799,584 | $7,993,196 |
Retained Earnings (Accumulated Deficit) | $38,004,591 | $31,179,408 |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 11,937,087 | 2,707,898 |
Allowance for Doubtful Accounts Receivable (in dollars) | $0 | ' |
Jumpstart Our Business Startups Act Description | 'The Company will remain an emerging growth company up to the fifth anniversary of its first registered sale of common equity securities, or until the earliest of (a) the last day of the first fiscal year in which its annual gross revenues exceed $1 billion, (b) the date that it becomes a "large accelerated filer" as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which would occur if the market value of its common stock held by non-affiliates exceeds $700 million as of the last business day of its most recently completed second fiscal quarter, or (c) the date on which it has issued more than $1 billion in non-convertible debt during the preceding three-year period. | ' |
Goodwill, Impairment Loss | $0 | $0 |
Fdic Coverage Description | 'balances are greater than $250,000, the Company does not have FDIC coverage on the entire amount of bank deposits. | ' |
Stockholders Equity, Reverse Stock Split | 'the Company implemented a 1-for-10 reverse stock split of its issued and outstanding common stock. | ' |
OIL_AND_NATURAL_GAS_PROPERTIES1
OIL AND NATURAL GAS PROPERTIES Acquisition (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Mar. 30, 2012 | Jan. 31, 2012 | Jan. 31, 2012 | Jun. 30, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Nov. 05, 2012 | Dec. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Jun. 30, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Jan. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Jan. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Mar. 30, 2012 | Jun. 30, 2013 | Mar. 30, 2012 | Jun. 30, 2013 | Jan. 31, 2013 | 31-May-13 | Jan. 31, 2013 | 31-May-13 | Jun. 30, 2013 |
HUOP Freedom Trend Prospect in Sanpete [Member] | HUOP Freedom Trend Prospect in Sanpete [Member] | HUOP Freedom Trend Prospect in Sanpete [Member] | HPI Liberty 1 Well in Juab [Member] | Perth Field in Sumner [Member] | Koelsch Field in Stafford [Member] | Prescott Lease in Stafford [Member] | Liberty Prospect in Juab and Sanpete [Member] | Liberty Prospect in Juab [Member] | Hogback Ridge Prospect in Rich [Member] | Wasatch National Forest Well in Uinta [Member] | MacKov Investment Limited [Member] | MacKov Investment Limited [Member] | Four Unaffiliated Investors [Member] | Six Unaffiliated Investors [Member] | Six Investors [Member] | Two Unaffilliated Investors [Member] | Two Unaffilliated Investors [Member] | Common Stock [Member] | Common Stock [Member] | Warrant [Member] | Warrant [Member] | Deep Zones [Member] | Deep Zones [Member] | Deep Zones [Member] | Shallow Zones [Member] | Shallow Zones [Member] | Shallow Zones [Member] | Tanks [Member] | Before Pay Out [Member] | Before Pay Out [Member] | Before Pay Out [Member] | Before Pay Out [Member] | Before Pay Out [Member] | Before Pay Out [Member] | Before Pay Out [Member] | Before Pay Out [Member] | After Pay Out [Member] | After Pay Out [Member] | After Pay Out [Member] | After Pay Out [Member] | After Pay Out [Member] | After Pay Out [Member] | After Pay Out [Member] | After Pay Out [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | City of Fountain Green Lease [Member] | Huop Freedom Trend Prospects [Member] | Huop Freedom Trend Prospects [Member] | Huop Freedom Trend Project [Member] | Central Utah Overthrust [Member] | |||
acre | acre | acre | HUOP Freedom Trend Prospect in Sanpete [Member] | Koelsch Field in Stafford [Member] | HPI Liberty 1 Well in Juab [Member] | HPI Liberty 1 Well in Juab [Member] | HPI Liberty 1 Well in Juab [Member] | Perth Field in Sumner [Member] | Koelsch Field in Stafford [Member] | MacKov Investment Limited [Member] | Koelsch Field in Stafford [Member] | MacKov Investment Limited [Member] | HUOP Freedom Trend Prospect in Sanpete [Member] | HUOP Freedom Trend Prospect in Sanpete [Member] | MacKov Investment Limited [Member] | HUOP Freedom Trend Prospect in Sanpete [Member] | HUOP Freedom Trend Prospect in Sanpete [Member] | MacKov Investment Limited [Member] | HPI Liberty 1 Well in Juab [Member] | HUOP Freedom Trend Prospect in Sanpete [Member] | HPI Liberty 1 Well in Juab [Member] | Liberty Prospect in Juab and Sanpete [Member] | Liberty Prospect in Juab [Member] | MacKov Investment Limited [Member] | Four Unaffiliated Investors [Member] | Six Unaffiliated Investors [Member] | Six Investors [Member] | HUOP Freedom Trend Prospect in Sanpete [Member] | HPI Liberty 1 Well in Juab [Member] | Liberty Prospect in Juab and Sanpete [Member] | Liberty Prospect in Juab [Member] | MacKov Investment Limited [Member] | Four Unaffiliated Investors [Member] | Six Unaffiliated Investors [Member] | Six Investors [Member] | HUOP Freedom Trend Prospect in Sanpete [Member] | Perth Field in Sumner [Member] | HUOP Freedom Trend Prospect in Sanpete [Member] | Perth Field in Sumner [Member] | acre | acre | acre | acre | acre | ||||||||||||
Koelsch Field in Stafford [Member] | Koelsch Field in Stafford [Member] | HUOP Freedom Trend Prospect in Sanpete [Member] | HUOP Freedom Trend Prospect in Sanpete [Member] | HPI Liberty 1 Well in Juab [Member] | HPI Liberty 1 Well in Juab [Member] | HPI Liberty 1 Well in Juab [Member] | HPI Liberty 1 Well in Juab [Member] | HPI Liberty 1 Well in Juab [Member] | HPI Liberty 1 Well in Juab [Member] | HPI Liberty 1 Well in Juab [Member] | HPI Liberty 1 Well in Juab [Member] | acre | ||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working Interest Purchase Percentage | ' | ' | ' | ' | ' | 0.25% | 10.00% | 7.00% | 21.00% | ' | ' | ' | 100.00% | ' | 5.00% | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | 14.50% | 1.00% | 0.50% | 7.25% | 0.50% | 0.25% | ' | 2.80% | 5.25% | 1.00% | 3.25% | 2.25% | 9.50% | 12.95% | 3.06% | 2.00% | 3.75% | 1.00% | 2.75% | 1.75% | 6.50% | 8.75% | 2.19% | 75.50% | 85.00% | 24.50% | 75.00% | ' | ' | ' | ' | ' |
Carried Working Interest Purchase Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Acres of Lease Purchased | ' | ' | ' | 405 | ' | ' | ' | ' | ' | ' | ' | 1,511 | 640 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,416 | ' | ' | ' | 206 | 422 | 111 | 1,328 | 1,707 |
Operating Lease Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '10 years | '10 years | '5 years | '5 years |
Lessor Leasing Arrangements, Operating Leases, Renewal Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years |
Operating Leases, Rent Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17,730 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,329 | $1,664 | $74,387 | $59,729 |
Related Party Transaction, Due from (to) Related Party, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 437,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working Interest Purchase Fair Value | ' | ' | 1,956,500 | 383,200 | 141,857 | 22,307 | ' | ' | 643,125 | 725,965 | 242,000 | ' | 610,000 | 62,500 | ' | 468,000 | 630,000 | 192,500 | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 289,316 | ' | 93,884 | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Acquisitions | ' | ' | 609,243 | 153,280 | 50,000 | 4,853 | ' | 195,544 | 257,250 | 30,000 | 96,800 | ' | 164,000 | 25,000 | 160,711 | 179,887 | ' | 162,146 | ' | ' | 60,700 | 5,958 | 134,844 | 154,753 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' |
Stock Issued During Period, Value, Acquisitions | ' | ' | 1,523,108 | 383,200 | 125,000 | 12,133 | ' | 367,500 | 643,125 | 75,000 | 242,000 | ' | 410,000 | 62,500 | 262,500 | 449,718 | ' | 405,365 | ' | ' | 151,750 | 14,895 | 215,750 | 247,605 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000 | ' |
Stocks Issued During Period, Par Value, Acquisition | ' | ' | $2.50 | $2.50 | $2.50 | $2.50 | ' | ' | $2.50 | $2.50 | $2.50 | ' | $2.50 | $2.50 | ' | $2.50 | ' | $2.50 | ' | ' | $2.50 | $2.50 | $1.60 | $1.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.80 | ' |
Notes Payable | 1,338,524 | 3,162,110 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 190,000 | ' | ' | ' | ' | ' | 589,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Oil and Gas Joint Interest Billing Accounts Receivable Cancelled | ' | ' | 433,392 | ' | 16,857 | 10,174 | ' | ' | ' | 61,965 | ' | ' | ' | ' | ' | 18,282 | ' | 32,135 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased Leases One Time Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140,000 | ' | ' | 66,387 | ' |
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OIL_AND_NATURAL_GAS_PROPERTIES2
OIL AND NATURAL GAS PROPERTIES Divestitures (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Oct. 31, 2012 | 15-May-12 | 31-May-12 | Oct. 31, 2012 | Jul. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | 15-May-12 | Jan. 30, 2012 | Mar. 14, 2012 | Feb. 21, 2012 | Feb. 10, 2012 | Feb. 29, 2012 | Mar. 15, 2012 | Mar. 12, 2012 | Feb. 22, 2012 | Dec. 31, 2012 | Feb. 22, 2012 | 16-May-12 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | |
Independence Prospect [Member] | New Independence Prospect [Member] | New Independence Prospect One [Member] | Perth Field [Member] | Perth Field One [Member] | Hpi Liberty No 1 Well [Member] | Hpi Liberty No 1 Well [Member] | South Heaven Field [Member] | Huop Freedom Trend Prospect Deep Zones [Member] | Salt Water Disposal [Member] | Huop Freedom Trend Prospect Shallow Zones [Member] | Mackov Investments Limited [Member] | Huop Freedom Trend Prospect [Member] | Huop Freedom Trend Prospect [Member] | Six Unaffiliated Investors [Member] | Unaffiliated Investors [Member] | Unaffiliated Investors [Member] | Two Unaffilliated Investors [Member] | Two Unaffilliated Investors [Member] | Moroni 1 AXZH Well [Member] | Moroni 1 AXZH Well [Member] | Moroni 1 AXZH Well [Member] | Moroni 1 AXZH Well [Member] | Moroni 1 AXZH Well [Member] | Moroni 1 AXZH Well [Member] | Moroni 1 AXZH Well [Member] | Moroni 1 AXZH Well [Member] | Koelsch 25-1 Well [Member] | Koelsch 25-1 Well [Member] | Koelsch 25-1 Well [Member] | Koelsch 25-1 Well [Member] | Koelsch 25-1 Well [Member] | Prescott 25-6 Well [Member] | Liberty Prospect [Member] | Liberty Prospect [Member] | Liberty Prospect [Member] | |||
acre | acre | acre | Before Pay Out [Member] | After Pay Out [Member] | Hpi Liberty No 1 Well [Member] | Central Utah Overthrust [Member] | Huop Freedom Trend Prospect Deep Zones [Member] | Wasatch National Forest Well in Uinta [Member] | Wasatch National Forest Well in Uinta [Member] | acre | acre | acre | acre | Zions Energy Corporation [Member] | Zions Energy Corporation [Member] | Zions Energy Corporation [Member] | Mackov Investments Limited [Member] | Zions Energy Corporation [Member] | Zions Energy Corporation [Member] | Zions Energy Corporation [Member] | Mackov Investments Limited [Member] | Hpi Liberty No 1 Well [Member] | Hpi Liberty No 1 Well [Member] | Six Investors [Member] | ||||||||||||||
acre | acre | acre | acre | acre | Before Pay Out [Member] | After Pay Out [Member] | Hpi Liberty No 1 Well [Member] | |||||||||||||||||||||||||||||||
Oil and Natural Gas Properties [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working Interest Percentage Sold | ' | ' | 15.00% | 5.00% | 5.00% | 5.00% | 25.00% | 12.95% | 8.75% | ' | 1.00% | 50.00% | 1.00% | ' | 3.00% | ' | ' | 2.00% | ' | 51.25% | 20.00% | 2.00% | 44.50% | 2.00% | 1.00% | 0.25% | 0.25% | 0.50% | 0.50% | 1.00% | 1.00% | 2.00% | ' | 1.50% | 21.00% | 3.06% | 2.19% | ' |
Oil And Natural Gas Properties Area Leasehold | ' | ' | 4,680 | 15,000 | 19,680 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 640 | ' | 20,000 | 320 | 320 | 320 | 320 | 320 | 320 | 320 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale Of Working Interest for Cash | ' | ' | ' | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000 | ' | $630,000 | $70,000 | ' | $512,500 | $145,626 | $240,000 | $1,600,000 | ' | $77,561 | $19,390 | $19,390 | $38,781 | $38,781 | $3,030 | $3,030 | $6,060 | ' | $4,545 | ' | ' | ' | $192,500 |
Warrants Issued To Purchase of Common Stock Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 247,605 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 619,500 | ' | ' | ' |
Number Of Warrants to Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 229,800 | ' | ' | ' |
Warrants Issued Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.50 | ' | ' | ' |
Cancellation Of Lease In Full Satisfaction Of Accounts Payable | 0 | 180,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 180,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Shares Returned | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,000 | ' | 25,626 | 27,778 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Value Returned | ' | ' | ' | ' | 422,865 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,500 | ' | 25,626 | 20,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.50 | $1 | $2.50 | ' | $1 | $0.72 | $2.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Work Plan in Project Value | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Work on Salt Water Disposal Value | ' | ' | ' | ' | ' | 230,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Notes Payable | ' | ' | ' | ' | ' | 80,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued | 39,906,770 | 32,518,192 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,958 | ' | ' | 162,146 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Value, Issued | 39,907 | 32,518 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,895 | ' | ' | 405,365 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect on Future Earnings, Offset Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,135 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Overriding Royalty Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,662 | ' | ' | ' | ' | ' |
Prepaid Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 425,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds From Sale of Working Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 162,500 | 112,500 | 120,000 | 220,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Received For Repurchase Of Common Stock From Unaffiliated Investor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $90,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NOTES_PAYABLE_Details
NOTES PAYABLE (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | $1,338,524 | $3,162,110 |
Less: Current Portion (includes demand notes) | -1,338,524 | -1,487,419 |
Long-Term Portion | 0 | 1,674,691 |
Note Payable, interest at 12.0% per annum, monthly payments of $7,500, due October 2013, secured by a 5.00% working interest in certain HUOP Freedom Trend Prospect leases [Member] | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | 0 | 750,000 |
Note Payable, interest at 10.0% per annum, monthly payments of $3,200, secured by a 1.00% working interest in certain HUOP Freedom Trend Prospect leases [Member] | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | 0 | 366,709 |
Note Payable, interest at 7.5% per annum, monthly payments of $1,949, due January 2014, secured by vehicle [Member] | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | 8,496 | 24,759 |
Note Payable, interest at 10.0% per annum, monthly payments of $15,000, due June 2014, secured by a 10.00% working interest in certain HUOP Freedom Trend Prospect leases [Member] | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | 581,327 | 716,327 |
Note Payable, interest at 10.0% per annum, monthly payments of $5,000, secured by a 1.00% working interest in certain HUOP Freedom Trend Prospect leases [Member] | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | 0 | 87,056 |
Note Payable, interest at 0.0% per annum, monthly payments of $1,500, due on demand, unsecured [Member] | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | 0 | 7,380 |
Note Payable, interest at 8.0% per annum, monthly payments of $10,000, due on demand, unsecured [Member] | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | 94,701 | 115,879 |
Note Payable, interest at 10.0% per annum, secured by certain new leases, rights, and interests in the Central Utah Overthrust Project [Member] | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | 0 | 250,000 |
Note Payable, interest at 6.0% per annum, quarterly payments of $50,000, due January 2014, secured by a 10% working interest in the Liberty Prospect [Member] | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | 389,000 | 589,000 |
Note Payable, interest at 0.0% per annum, unsecured [Member] | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | 0 | 190,000 |
Note Payable, interest at 0.0% per annum, due on demand, unsecured [Member] | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | 15,000 | 0 |
Note Payable, interest at 10.0% per annum, secured by a 1.00% working interest in certain HUOP Freedom Trend Prospect leases [Member] | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | 0 | 65,000 |
Note Payable, interest at 12.0% per annum, due on demand, secured by a 10.00% working interest in the Liberty Prospect. | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | 50,000 | 0 |
Note Payable, interest at 8.0% per annum, due on demand, secured by a working interest in certain Kansas leases [Member] | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | 100,000 | 0 |
Note Payable, interest at 8.0% per annum, due on demand, secured by a working interest in certain Kansas leases [Member] | ' | ' |
NOTES PAYABLE [Line Items] | ' | ' |
Total Notes Payable | $100,000 | $0 |
NOTES_PAYABLE_Details_1
NOTES PAYABLE (Details 1) (USD $) | Dec. 31, 2013 |
NOTES PAYABLE [Line Items] | ' |
2014 | $1,338,524 |
Thereafter | 0 |
Total | $1,338,524 |
NOTES_PAYABLE_Details_Textual
NOTES PAYABLE (Details Textual) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Note Payable, interest at 12.0% per annum, monthly payments of $7,500, due October 2013, secured by a 5.00% working interest in certain HUOP Freedom Trend Prospect leases [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 12.00% |
Debt Instrument, Periodic Payment | $7,500 |
Debt Instrument, Payment Terms | 'October 2013 |
Working Interest, Percentage | 5.00% |
Note Payable, interest at 10.0% per annum, monthly payments of $3,200, secured by a 1.00% working interest in certain HUOP Freedom Trend Prospect leases [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 10.00% |
Debt Instrument, Periodic Payment | 3,200 |
Working Interest, Percentage | 1.00% |
Note Payable, interest at 7.5% per annum, monthly payments of $1,949, due January 2014, secured by vehicle [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 7.50% |
Debt Instrument, Periodic Payment | 1,949 |
Debt Instrument, Payment Terms | 'January 2014 |
Note Payable, interest at 10.0% per annum, monthly payments of $15,000, due June 2014, secured by a 10.00% working interest in certain HUOP Freedom Trend Prospect leases [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 10.00% |
Debt Instrument, Periodic Payment | 15,000 |
Debt Instrument, Payment Terms | 'June 2014 |
Working Interest, Percentage | 10.00% |
Note Payable, interest at 10.0% per annum, monthly payments of $5,000, secured by a 1.00% working interest in certain HUOP Freedom Trend Prospect leases [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 10.00% |
Debt Instrument, Periodic Payment | 5,000 |
Working Interest, Percentage | 1.00% |
Note Payable, interest at 0.0% per annum, monthly payments of $1,500, due on demand, unsecured [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 0.00% |
Debt Instrument, Periodic Payment | 1,500 |
Debt Instrument, Payment Terms | 'due on demand |
Note Payable, interest at 8.0% per annum, monthly payments of $10,000, due on demand, unsecured [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 8.00% |
Debt Instrument, Periodic Payment | 10,000 |
Debt Instrument, Payment Terms | 'due on demand |
Note Payable, interest at 10.0% per annum, secured by certain new leases, rights, and interests in the Central Utah Overthrust Project [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 10.00% |
Note Payable, interest at 6.0% per annum, quarterly payments of $50,000, due January 2014, secured by a 10% working interest in the Liberty Prospect [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 6.00% |
Debt Instrument, Periodic Payment | $50,000 |
Debt Instrument, Payment Terms | 'January 2014 |
Working Interest, Percentage | 10.00% |
Note Payable, interest at 0.0% per annum, unsecured [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 0.00% |
Note Payable, interest at 0.0% per annum, due on demand, unsecured [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 0.00% |
Debt Instrument, Payment Terms | 'due on demand |
Note Payable, interest at 10.0% per annum, secured by a 1.00% working interest in certain HUOP Freedom Trend Prospect leases [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 10.00% |
Working Interest, Percentage | 1.00% |
Note Payable, interest at 12.0% per annum, due on demand, secured by a 10.00% working interest in the Liberty Prospect [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 12.00% |
Debt Instrument, Payment Terms | 'due on demand |
Working Interest, Percentage | 10.00% |
Note Payable, interest at 8.0% per annum, due on demand, secured by a working interest in certain Kansas leases [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 8.00% |
Debt Instrument, Payment Terms | 'due on demand |
Note Payable, interest at 8.0% per annum, due on demand, secured by a working interest in certain Kansas leases [Member] | ' |
NOTES PAYABLE [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 8.00% |
Debt Instrument, Payment Terms | 'due on demand |
CONVERTIBLE_NOTES_PAYABLE_Deta
CONVERTIBLE NOTES PAYABLE (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Convertible Notes Payable [Line Items] | ' | ' |
Total Convertible Notes Payable | $1,981,650 | $1,352,560 |
Less: Unamortized Debt Discount | -120,264 | 0 |
Less: Current Portion (includes demand notes) | -1,861,386 | -1,352,560 |
Long-Term Portion | 0 | 0 |
Note Payable, interest at 12.0% per annum, due on demand, convertible into common shares of the Company at a conversion rate of $2.50 per common share, unsecured [Member] | ' | ' |
Convertible Notes Payable [Line Items] | ' | ' |
Total Convertible Notes Payable | 52,560 | 52,560 |
Note Payable, interest at 10.0% per annum, due on demand, convertible into common shares of the Company at a conversion rate of $2.50 per common share, secured by certain Kansas Leases and 10.00% working interest in certain Fountain Green Project Leases (see NOTE 19 LEGAL PROCEEDINGS) [Member] | ' | ' |
Convertible Notes Payable [Line Items] | ' | ' |
Total Convertible Notes Payable | 369,090 | 1,300,000 |
Note Payable, interest at 10.0% per annum, due March 2014, convertible into common shares of the Company at a conversion rate of $0.60 per common share subject to a ratchet adjustment provision (see NOTE 12 COMMON STOCK), secured by a working interest in certain Kansas and Wyoming leases [Member] | ' | ' |
Convertible Notes Payable [Line Items] | ' | ' |
Total Convertible Notes Payable | 1,310,000 | 0 |
Note Payable, interest at 10.0% per annum, due March 2014, convertible into common shares of the Company at a conversion rate of $0.60 per common share subject to a ratchet adjustment provision (see NOTE 12 COMMON STOCK), unsecured [Member] | ' | ' |
Convertible Notes Payable [Line Items] | ' | ' |
Total Convertible Notes Payable | 150,000 | 0 |
Note Payable, interest at 12.0% per annum, due on demand, convertible into common shares of the Company at a conversion rate determined by 50% of the weighted average price of the stock during the five trading days immediately preceding the conversion date, secured by a 10.0% working interest in the Liberty Prospect [Member] | ' | ' |
Convertible Notes Payable [Line Items] | ' | ' |
Total Convertible Notes Payable | 50,000 | 0 |
Note Payable, interest at 12.0% per annum, due on demand, convertible into common shares of the Company at a conversion rate determined by 50% of the weighted average price of the stock during the five trading days immediately preceding the conversion date, secured by a 10.0% working interest in the Liberty Prospect [Member] | ' | ' |
Convertible Notes Payable [Line Items] | ' | ' |
Total Convertible Notes Payable | $50,000 | $0 |
CONVERTIBLE_NOTES_PAYABLE_Deta1
CONVERTIBLE NOTES PAYABLE (Details 1) (USD $) | Dec. 31, 2013 |
Convertible Notes Payable [Line Items] | ' |
2014 | $1,981,650 |
Thereafter | 0 |
Total | $1,981,650 |
CONVERTIBLE_NOTES_PAYABLE_Deta2
CONVERTIBLE NOTES PAYABLE (Details Textual) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Note Payable, interest at 12.0% per annum, due on demand, convertible into common shares of the Company at a conversion rate of $2.50 per common share, unsecured [Member] | ' |
Convertible Notes Payable [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 12.00% |
Debt Instrument, Convertible, Conversion Price | $2.50 |
Note Payable, interest at 10.0% per annum, due on demand, convertible into common shares of the Company at a conversion rate of $2.50 per common share, secured by certain Kansas Leases and 10.00% working interest in certain Fountain Green Project Leases (see NOTE 19 LEGAL PROCEEDINGS) [Member] | ' |
Convertible Notes Payable [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 10.00% |
Debt Instrument, Convertible, Conversion Price | $2.50 |
Working Interest, Percentage | 10.00% |
Note Payable, interest at 10.0% per annum, due March 2014, convertible into common shares of the Company at a conversion rate of $0.60 per common share subject to a ratchet adjustment provision (see NOTE 12 COMMON STOCK), secured by a working interest in certain Kansas and Wyoming leases [Member] | ' |
Convertible Notes Payable [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 10.00% |
Debt Instrument, Convertible, Conversion Price | $0.60 |
Debt Instrument, Payment Terms | 'due March 2014 |
Note Payable, interest at 10.0% per annum, due March 2014, convertible into common shares of the Company at a conversion rate of $0.60 per common share subject to a ratchet adjustment provision (see NOTE 12 COMMON STOCK), unsecured [Member] | ' |
Convertible Notes Payable [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 10.00% |
Debt Instrument, Convertible, Conversion Price | $0.60 |
Debt Instrument, Payment Terms | 'due March 2014 |
Note Payable, interest at 12.0% per annum, due on demand, convertible into common shares of the Company at a conversion rate determined by 50% of the weighted average price of the stock during the five trading days immediately preceding the conversion date, secured by a 10.0% working interest in the Liberty Prospect [Member] | ' |
Convertible Notes Payable [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 12.00% |
Debt Instrument Convertible Conversion Weighted Average Price | 50.00% |
Working Interest, Percentage | 10.00% |
Note Payable, interest at 12.0% per annum, due on demand, convertible into common shares of the Company at a conversion rate determined by 50% of the weighted average price of the stock during the five trading days immediately preceding the conversion date, secured by a 10.0% working interest in the Liberty Prospect [Member] | ' |
Convertible Notes Payable [Line Items] | ' |
Notes Payable Interest Bearing Interest Rate | 12.00% |
Debt Instrument Convertible Conversion Weighted Average Price | 50.00% |
Working Interest, Percentage | 10.00% |
CAPITAL_LEASE_OBLIGATION_Detai
CAPITAL LEASE OBLIGATION (Details) (USD $) | Dec. 31, 2013 |
Operating Leased Assets [Line Items] | ' |
2014 | $135,311 |
Thereafter | 0 |
Total | $135,311 |
CAPITAL_LEASE_OBLIGATION_Detai1
CAPITAL LEASE OBLIGATION (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Lease One [Member] | Lease Two [Member] | |||
Operating Leased Assets [Line Items] | ' | ' | ' | ' |
Capital Lease Expiration Period | ' | ' | '5 years | '10 months |
Capital Leases Monthly Payments | ' | ' | $3,200 | $21,000 |
Capital Lease Expiration Date | ' | ' | 30-Apr-13 | 30-Jun-14 |
Capital Lease Obligations | 135,311 | 15,748 | ' | ' |
Capital Leased Assets, Gross | 333,951 | 154,155 | ' | ' |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $139,165 | $106,440 | ' | ' |
OPERATING_LEASES_Details_Textu
OPERATING LEASES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Leased Assets [Line Items] | ' | ' |
Operating Leases, Rent Expense, Net | $8,250 | $3,060 |
Salt Lake City [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Area Of Office Space | 5,482 | ' |
Prepaid Security Deposit | 11,122 | ' |
Operating Lease, Expiration Period | 'September 1, 2013 to August 31, 2014 | ' |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 67,155 | ' |
Operating Leases, Future Minimum Payments, Due in Two Years | 115,122 | ' |
Operating Leases, Future Minimum Payments, Due in Three Years | 115,122 | ' |
Operating Leases, Future Minimum Payments, Due in Four Years | 115,122 | ' |
Operating Leases, Future Minimum Payments, Due in Five Years | 115,122 | ' |
Operating Leases, Rent Expense, Net | 116,708 | 121,401 |
Lease One [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Operating Lease, Expiration Period | '37 months | ' |
Operating Leases, Future Minimum Payments, Monthly Due | 255 | ' |
Lease Two [Member] | ' | ' |
Operating Leased Assets [Line Items] | ' | ' |
Operating Lease, Expiration Period | '36 month | ' |
Operating Leases, Future Minimum Payments, Monthly Due | $654 | ' |
OIL_AND_GAS_PROPERTY_LEASES_De
OIL AND GAS PROPERTY LEASES (Details) | Dec. 31, 2013 | |
acre | ||
Property, Plant and Equipment [Line Items] | ' | |
Property Lease Gross Acreage | 8,803 | [1] |
Property Lease Net Acreage | 7,618 | [2] |
Lease Acreage Expiring December 31 2014 [Member] | ' | |
Property, Plant and Equipment [Line Items] | ' | |
Property Lease Gross Acreage | 5,820 | [1] |
Property Lease Net Acreage | 5,192 | [2] |
Lease Acreage Expiring December 31 2015 [Member] | ' | |
Property, Plant and Equipment [Line Items] | ' | |
Property Lease Gross Acreage | 2,903 | [1] |
Property Lease Net Acreage | 2,354 | [2] |
Lease Acreage Expiring December 31 2016 [Member] | ' | |
Property, Plant and Equipment [Line Items] | ' | |
Property Lease Gross Acreage | 80 | [1] |
Property Lease Net Acreage | 72 | [2] |
[1] | "Gross" means the total number of acres in which we have a working interest. | |
[2] | "Net" means the aggregate of the percentage working interests of the Company. |
OIL_AND_GAS_PROPERTY_LEASES_De1
OIL AND GAS PROPERTY LEASES (Details Textual) | 12 Months Ended |
Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' |
Lease Expiration Date | 31-Dec-16 |
ASSET_RETIREMENT_OBLIGATIONS_D
ASSET RETIREMENT OBLIGATIONS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Asset Retirement Obligations [Line Items] | ' | ' |
Beginning asset retirement obligation | $482,157 | $350,243 |
Liabilities incurred for new wells placed into production | 17,294 | 140,876 |
Liabilities decreased for wells sold or plugged | -106,115 | -14,409 |
Accretion of discount on asset retirement obligations | 9,012 | 5,447 |
Revisions of previous estimates | 39,727 | 0 |
Ending asset retirement obligations | $442,075 | $482,157 |
PREFERRED_STOCK_Details_Textua
PREFERRED STOCK (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |||
Dec. 19, 2012 | Sep. 30, 2012 | Aug. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Preferred Stock, Shares Authorized | ' | ' | ' | 50,000,000 | 50,000,000 |
Preferred Stock, Par or Stated Value Per Share | ' | ' | ' | $0.00 | $0.00 |
Stock Issued During Period, Value, Conversion of Convertible Securities | ' | ' | ' | $389,515 | ' |
Common Stock Exercisable Per Share | ' | ' | ' | $2.12 | ' |
Series A Preferred Stock [Member] | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Preferred Stock, Shares Authorized | ' | ' | 5,000,000 | ' | 5,000,000 |
Preferred Stock, Par or Stated Value Per Share | $1 | ' | ' | ' | $0.00 |
Conversion of Stock, Description | ' | ' | 'common stock were sold over the 30-day period prior to the conversion, minus a 25.0% discount to such 30-day average price. | ' | ' |
Common Stock, Conversion Features | ' | ' | 'Conversion Price be less than $1.00 or greater than $3.70 per share. | ' | ' |
Temporary Equity, Description | ' | ' | 'The Company may redeem all or any portion of the Series A Preferred Stock at any time after August 31, 2014, or at any time if the Companys common stock has traded at a rate of more than 10,000 shares per day for at least 30 consecutive days and the average trading price of the common stock (based on a 30-day moving average) is greater than $5.00 per share. | ' | ' |
Preferred Stock, Dividend Rate, Percentage | ' | ' | 10.00% | ' | ' |
Preferred Stock Units Sold | ' | 285,000 | ' | ' | ' |
Price Per Unit Of Preferred Stock And Common Stock Warrant | ' | $1 | ' | ' | ' |
Stock Issued During Period, Value, Conversion of Convertible Securities | ' | ' | ' | 184,072 | ' |
Common Stock Exercisable Per Share | ' | $3.70 | ' | ' | ' |
Preferred Stock Units Sold Value | ' | 285,000 | ' | ' | ' |
Preferred Stock, Shares Issued | 285,000 | ' | ' | ' | ' |
Dividends, Preferred Stock, Stock | 9,515 | ' | ' | ' | ' |
Preferred Stock Conversion Price | ' | ' | $1.60 | ' | ' |
Conversion of Stock, Shares Issued | ' | ' | 184,072 | ' | ' |
Common Stock Exercisable Period | ' | '3 years | ' | ' | ' |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral, Total | ' | 380,000 | ' | ' | ' |
Common Stock [Member] | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Conversion of Convertible Securities | ' | ' | ' | 184,072 | ' |
Stock Issued During Period, Value, Conversion of Convertible Securities | ' | ' | ' | $184 | ' |
COMMON_STOCK_Details_Textual
COMMON STOCK (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |
Jan. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Common Stock [Line Items] | ' | ' | ' |
Stock Issued During Period, Value, Issued for Cash | ' | $1,069,000 | $3,127,252 |
Equity Issuance, Per Share Amount | ' | $1 | ' |
Common Stock, Shares, Outstanding | ' | 39,906,770 | 32,518,192 |
Preferred Stock, Par or Stated Value Per Share | ' | $0.00 | $0.00 |
Treasury Stock, Shares, Acquired | ' | 25,626 | 254,000 |
Treasury Stock, Shares, Retired | ' | 25,626 | 254,000 |
Treasury Stock, Value, Acquired, Par Value Method | ' | 25,626 | 635,000 |
Treasury Stock Acquired Par Value | ' | ' | $2.50 |
Common Stock, Shares, Issued | ' | 39,906,770 | 32,518,192 |
Common Stock, Value, Issued | ' | 39,907 | 32,518 |
Stock Repurchased and Retired During Period Value From Unaffiliated Investor | ' | 25,624 | 572,500 |
Unaffiliated Investors [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Cash | ' | 1,166,750 | 1,806,203 |
Stock Issued During Period, Value, Issued for Cash | ' | 1,069,000 | 4,394,148 |
Warrants Issued During Period Acquisition | ' | ' | 935,196 |
Warrants Granted To Purchase Of Common Stock Shares | ' | 765,375 | ' |
Exercise Price Of Warrants | ' | $0.20 | ' |
Warrants Expiration Date | ' | '2014 | 'July 2015 |
Stock Issued During Period, Shares, Issued for Noncash Consideration | ' | ' | 1,335,277 |
Common Stock Warrants Exercised Shares | ' | ' | 143,213 |
Development Stage Entities, Stock Issued, Value, Issued for Noncash Consideration | ' | ' | 3,127,252 |
Payments to Acquire Businesses, Gross | ' | 28,642 | ' |
Unaffiliated Debt Holders [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Cash | ' | 4,512,874 | ' |
Warrants Issued During Period Acquisition | ' | 3,044,853 | ' |
Exercise Price Of Warrants | ' | $1 | ' |
Warrants Expiration Date | ' | 'December 2014 | ' |
Fair value of these shares ,at the time of purchase | ' | 2,633,407 | ' |
Creditors, Consultants, Directors, Officers and Other Employees [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Cash | ' | 1,102,064 | 1,443,378 |
Stock Issued During Period, Value, Issued for Cash | ' | ' | 3,609,444 |
Warrants Granted To Purchase Of Common Stock Shares | ' | 21,250 | 650,000 |
Exercise Price Of Warrants | ' | $1 | ' |
Warrants Expiration Date | ' | 'June 2014 | 'June 2015 |
Fair value of these shares ,at the time of purchase | ' | 889,832 | ' |
Consultants and Directors [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Services | ' | 561,307 | ' |
Deferred Compensation Arrangement with Individual, Fair Value of Shares Issued | ' | 345,592 | ' |
Two Unaffiliated Investors [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Stock Repurchased During Period, Value | ' | 25,626 | ' |
Stock Repurchased During Period, Shares | ' | 25,626 | ' |
Stock Repurchased During Period, Price, Per Share | ' | $1 | ' |
Sale of Working Interest Cash Paid | ' | 120,000 | ' |
Working Interest, Percentage | ' | 20.00% | ' |
Sale of Working Interest to Unaffiliated Investors | ' | 145,626 | ' |
Unaffiliated Investor and Creditor [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Cash | ' | ' | 77,950 |
Stock Issued During Period, Value, Issued for Cash | ' | ' | 194,875 |
Equity Issuance, Per Share Amount | ' | ' | $2.50 |
Noteholders [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Cash | ' | ' | 403,650 |
Stock Issued During Period, Value, Issued for Cash | ' | ' | 949,932 |
Officer and Director [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Cash | ' | ' | 7,193 |
Stock Issued During Period, Value, Issued for Cash | ' | ' | 11,509 |
Equity Issuance, Per Share Amount | ' | ' | $2.50 |
Exercise Price Of Warrants | ' | ' | $1.60 |
Common Stock, Shares, Issued | ' | ' | 25,000 |
Common Stock, Value, Issued | ' | ' | 62,500 |
Five Unaffiliated Investors [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Cash | ' | ' | 184,072 |
Stock Issued During Period, Value, Issued for Cash | ' | ' | 389,515 |
Equity Issuance, Per Share Amount | ' | ' | $2.12 |
Preferred Stock, Shares Outstanding | ' | ' | 285,000 |
Preferred Stock, Par or Stated Value Per Share | ' | ' | $1.60 |
Preferred Stock,Dividends Paid | ' | ' | 9,515 |
Huop Freedom Trend Project [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Equity Issuance, Per Share Amount | ' | $0.80 | ' |
Stock Issued During Period, Shares, Issued for Noncash Consideration | ' | 10,000 | ' |
Fair value of these shares ,at the time of purchase | ' | 8,500 | ' |
Related Party [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Cash | ' | ' | 282,511 |
Stock Issued During Period, Value, Issued for Cash | ' | ' | 567,000 |
Ratchet Provision On Stock [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Cash | ' | 816,200 | ' |
Common Stock, Shares, Outstanding | ' | 5,039,758 | ' |
Ratchet Provision On Stock [Member] | Unaffiliated Investors [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Cash | ' | 61,209 | ' |
Equity Issuance, Per Share Amount | ' | $5 | ' |
Exercise Price Of Warrants | ' | $2.50 | ' |
Minimum [Member] | Unaffiliated Investors [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Equity Issuance, Per Share Amount | ' | $0.80 | $2.50 |
Exercise Price Of Warrants | ' | $0.50 | $2.50 |
Minimum [Member] | Unaffiliated Debt Holders [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Equity Issuance, Per Share Amount | ' | $0.12 | ' |
Minimum [Member] | Creditors, Consultants, Directors, Officers and Other Employees [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Equity Issuance, Per Share Amount | ' | $0.80 | $1.50 |
Exercise Price Of Warrants | ' | ' | $2.50 |
Minimum [Member] | Consultants and Directors [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Equity Issuance, Per Share Amount | ' | $0.25 | ' |
Minimum [Member] | Noteholders [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Equity Issuance, Per Share Amount | ' | ' | $1.60 |
Minimum [Member] | Related Party [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Equity Issuance, Per Share Amount | ' | ' | $1.60 |
Common Stock Price Per Share | ' | ' | $1.60 |
Maximum [Member] | Unaffiliated Investors [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Equity Issuance, Per Share Amount | $2.50 | $2.50 | $5 |
Exercise Price Of Warrants | ' | $2.50 | $5 |
Maximum [Member] | Unaffiliated Debt Holders [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Equity Issuance, Per Share Amount | ' | $2.50 | ' |
Maximum [Member] | Creditors, Consultants, Directors, Officers and Other Employees [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Equity Issuance, Per Share Amount | ' | $2.50 | $2.50 |
Exercise Price Of Warrants | ' | ' | $12.50 |
Maximum [Member] | Consultants and Directors [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Equity Issuance, Per Share Amount | ' | $2.50 | ' |
Maximum [Member] | Noteholders [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Equity Issuance, Per Share Amount | ' | ' | $2.50 |
Maximum [Member] | Related Party [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Equity Issuance, Per Share Amount | ' | ' | $2.50 |
Common Stock Price Per Share | ' | ' | $2.50 |
Common Stock [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Cash | ' | 1,166,750 | 1,335,277 |
Stock Issued During Period, Value, Issued for Cash | ' | 1,167 | 1,335 |
Exercise Price Of Warrants | ' | ' | $1.60 |
Stock Repurchased and Retired During Period Value From Unaffiliated Investor | ' | 25 | 229 |
Stock Repurchased and Retired During Period Shares From Unaffiliated Investor | ' | 25,626 | 229,000 |
price per share less than 0.80 [Member] | Ratchet Provision On Stock [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Common Stock Price Per Share | ' | $0.80 | ' |
price per share less than 0.60 [Member] | Ratchet Provision On Stock [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Common Stock Price Per Share | ' | $0.60 | ' |
New Warrant Holder [Member] | Unaffiliated Investors [Member] | ' | ' | ' |
Common Stock [Line Items] | ' | ' | ' |
Exercise Price Of Warrants | ' | ' | $1.60 |
Common Stock Warrants Exercised Value | ' | ' | $229,141 |
Common Stock Warrants Exercised Shares | ' | ' | 143,213 |
WARRANTS_TO_PURCHASE_COMMON_ST2
WARRANTS TO PURCHASE COMMON STOCK (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Fair value per warrant | $0.17 | $0.74 |
Total warrants granted | 3,686,103 | 1,017,301 |
Total fair value of warrants granted | $632,651 | $752,503 |
Warrant [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Fair market value | $0.63 | $2.46 |
Exercise price | $1 | $5.83 |
Risk free rates | 0.12% | 0.36% |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 112.51% | 72.96% |
Contractual term | '1 year | '2 years 10 months 20 days |
Total warrants granted | 3,686,103 | 1,017,301 |
Total fair value of warrants granted | $632,651 | $752,503 |
WARRANTS_TO_PURCHASE_COMMON_ST3
WARRANTS TO PURCHASE COMMON STOCK (Details 1) (Warrant [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Warrant [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Warrants outstanding, Beginning balance | 2,166,874 | 1,269,693 |
Warrants, Granted | 4,451,478 | 2,037,497 |
Warrants, Exercised | 0 | -440,003 |
Warrans, Expired/Forfeited | -1,256,765 | -700,313 |
Warrants outstanding, Ending balance | 5,361,587 | 2,166,874 |
Weighted-Average Exercise Price, Warrants outstanding, Beginning balance | $3.22 | $2.22 |
Weighted-Average Exercise Price, Granted | $1 | $4.84 |
Weighted- Average Exercise Price, Exercised | $0 | ($1.60) |
Weighted- Average Exercise Price, Expired/Forfeited | ($2.13) | ($7.14) |
Weighted- Average Exercise Price, Warrants outstanding, Ending balance | $1.27 | $3.22 |
Weighted-Average Remainder Contractual Term in Years, Warrants outstanding Beginning Balance | '1 year 3 months 25 days | '1 year 4 months 17 days |
Weighted-Average Remainder Contractual Term in Years, Warrants Granted | '1 year | '1 year 10 months 24 days |
Weighted-Average Remainder Contractual Term in Years, Exercised | '0 years | '0 years |
Weighted-Average Remainder Contractual Term in Years, Expired/Forfeited | '0 years | '0 years |
Weighted-Average Remainder Contractual Term in Years, Warrants outstanding Ending Balance | '7 months 17 days | '1 year 3 months 25 days |
WARRANTS_TO_PURCHASE_COMMON_ST4
WARRANTS TO PURCHASE COMMON STOCK (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $184,477 | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Non-Option Equity Instruments, Granted | 3,686,103 | 1,017,301 |
Share Based Compensation Arrangement By Share Based Payment Award, Warrant Fair Value Granted | 632,651 | 752,503 |
Adjustments To Additional Paid In Capital Warrant Issued Not Expensed | ' | 448,096 |
Warrant [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Warrants Fully Vested | 5,361,587 | 2,166,874 |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | 4,451,478 | 2,037,497 |
Share-Based Compensation Arrangement By Share-Based Payment Award, Non-Option Equity Instruments, Granted | 3,686,103 | 1,017,301 |
Share Based Compensation Arrangement By Share Based Payment Award, Warrant Fair Value Granted | 632,651 | 752,503 |
Adjustments To Additional Paid In Capital Warrant Issued Not Expensed | 617,276 | 448,096 |
Share Based Compensation Remaining To Be Expensed | $15,375 | $304,407 |
Private Placement [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period | 765,375 | 935,196 |
Share-based Payment Award, Expiration Date | 30-Jun-14 | ' |
Debt Settlement [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Warrants Exercise Price Per Share | ' | $2.50 |
Share-Based Compensation Arrangement By Share-Based Payment Award, Non-Option Equity Instruments, Granted | ' | 85,000 |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Warrants Exercise Price Per Share | $2.50 | ' |
Maximum [Member] | Warrant [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Warrants Exercise Price Per Share | $1 | ' |
Maximum [Member] | Private Placement [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Warrants Exercise Price Per Share | ' | $5 |
Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Term | ' | '3 years |
Maximum [Member] | New Funds From Existing Investor [Member] | Warrant [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Warrants Exercise Price Per Share | $5 | ' |
Share-based Payment Award, Expiration Date | 31-Jan-14 | ' |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Warrants Exercise Price Per Share | $0.50 | ' |
Minimum [Member] | Warrant [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Warrants Exercise Price Per Share | $0.50 | ' |
Minimum [Member] | Private Placement [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Warrants Exercise Price Per Share | ' | $2.50 |
Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Term | ' | '1 year |
Minimum [Member] | New Funds From Existing Investor [Member] | Warrant [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Warrants Exercise Price Per Share | $1 | ' |
Share-based Payment Award, Expiration Date | 30-Apr-13 | ' |
EMPLOYEE_STOCK_OPTIONS_Details
EMPLOYEE STOCK OPTIONS (Details) (Employee Stock Option [Member], USD $) | 1 Months Ended |
6-May-13 | |
Employee Stock Option [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Fair market value | $0.90 |
Exercise price | $1 |
Risk free rate | 0.11% |
Dividend yield | 0.00% |
Expected volatility | 71.29% |
Expected life | '4 years 29 days |
EMPLOYEE_STOCK_OPTIONS_Details1
EMPLOYEE STOCK OPTIONS (Details 1) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Stock Option Activity [Line Items] | ' |
Options outstanding, as of December 31, 2012 | 0 |
Options, Granted | 3,500,000 |
Options, Exercised | 0 |
Options, Forfeited/Expired | 0 |
Options outstanding as of December 31, 2013 | 3,500,000 |
Exercise Price, Options outstanding as of December 31, 2012 | $0 |
Exercise Price, Granted | $1 |
Exercise Price, Exercised | $0 |
Exercise Price,Forfeited/Expired | $0 |
Exercise Price, Options outstanding as of December 31, 2013 | $1 |
Remaining Term in Years, Granted | '7 years |
Remaining Term in Years, Exercised | '0 years |
Remaining Term in Years, Forfeited/Expired | '0 years |
Remaining Term in Years, Options outstanding as of December 31, 2013 | '6 years 4 months 6 days |
EMPLOYEE_STOCK_OPTIONS_Details2
EMPLOYEE STOCK OPTIONS (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Options Outstanding, Number of Options Outstanding | 3,500,000 | 0 |
Options Outstanding, Remaining Life (Years) | '6 years 4 months 6 days | ' |
Options Outstanding, Exercise Price | $1 | $0 |
Options Exercisable, Number of Options Exercisable | 1,750,000 | ' |
Options Exercisable, Exercise Price | $1 | ' |
EMPLOYEE_STOCK_OPTIONS_Details3
EMPLOYEE STOCK OPTIONS (Details 3) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Equity Based Compensation Expenses [Line Items] | ' |
Stock based compensation expense | $795,009 |
Income tax benefit recognized related to stock-based compensation | 0 |
Income tax benefit realized from the exercising and vesting of options | $0 |
EMPLOYEE_STOCK_OPTIONS_Details4
EMPLOYEE STOCK OPTIONS (Details 4) (USD $) | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Intrinsic value - options outstanding | $0 |
Intrinsic value - options exercisable | 0 |
Intrinsic value - options exercised | $0 |
EMPLOYEE_STOCK_OPTIONS_Details5
EMPLOYEE STOCK OPTIONS (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended |
Dec. 31, 2013 | 31-May-13 | |
Alan D. Gaines [Member] | ||
Employee Stock Option Expenses [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,500,000 | 3,500,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | $1 |
Stock Option Expiration Period | ' | 31-May-20 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | ' | 'The options vest 50% upon the earlier of six months or the Company obtaining funding in excess of $3 million, 25% after one year and 25% after two years. |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $795,009 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 4 months 6 days | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Expenses [Line Items] | ' | ' |
Current income taxes | $1,567 | $400 |
Deferred income taxes | 0 | 0 |
Provision for income taxes | $1,567 | $400 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Income Tax Reconciliation Of Tax Expenses [Line Items] | ' | ' |
Income (Loss) before taxes and net operating loss | ($6,798,017) | ($7,992,796) |
Federal statutory rate | 34.00% | 34.00% |
Taxes (benefit) computed at federal statutory rates | -2,311,326 | -2,717,550 |
State taxes (benefit), net of federal taxes | -224,334 | -263,362 |
Effects of: | ' | ' |
Share-based compensation | 314,993 | 4,683,347 |
Other permanent differences | 585,496 | 126,844 |
Freedom acquisition | 0 | 567,707 |
Increase (decrease) in valuation allowance | 1,636,738 | -2,396,586 |
Reported Expense | $1,567 | $400 |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets | ' | ' |
Accrued payroll | $138,825 | $256,057 |
Current | 138,825 | 256,057 |
Non-current: | ' | ' |
Net operating loss carry forwards (NOLs) | 10,714,551 | 8,409,680 |
Fixed assets | -257,081 | -125,479 |
Oil & gas properties | -3,229,857 | -2,939,716 |
Other | 7,624 | 136,781 |
Non-current | 7,235,237 | 5,481,266 |
Total deferred tax assets | 7,374,062 | 5,737,323 |
Less: valuation allowance | -7,374,062 | -5,737,323 |
Net deferred tax asset | $0 | $0 |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Domestic Tax Authority [Member] | Domestic Tax Authority [Member] | Domestic Tax Authority [Member] | |||
Freedom Oil Gas Inc Acquisition [Member] | |||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | $28,725,339 | $22,546,058 | $7,439,758 |
Operating Loss Carry forwards Expiration Dates | ' | ' | '2017 | '2033 | ' |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 1,636,738 | -2,396,586 | ' | ' | ' |
Income Tax Examination, Likelihood of Unfavorable Settlement | 'greater than 50 percent | ' | ' | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | ' | ' | $0 | $0 | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 24 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | 31-May-13 | Oct. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | 31-May-13 | Oct. 31, 2012 | Jun. 30, 2012 | Feb. 29, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2012 | Oct. 31, 2012 | Dec. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Nov. 30, 2012 | Nov. 30, 2012 | Dec. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2012 | Feb. 29, 2012 | 31-May-12 | Jun. 30, 2012 | 16-May-12 | |
HPI Liberty 1 Well After Payout [Member] | Zions Energy Corporation [Member] | D Mack Trust [Member] | D Mack Trust [Member] | D Mack Trust [Member] | D Mack Trust [Member] | D Mack Trust [Member] | Joseph P Tate [Member] | Joseph P Tate [Member] | Joseph P Tate [Member] | Joseph P Tate [Member] | Joseph P Tate [Member] | Alan D. Gaines [Member] | Mackov Investments Limited [Member] | Mackov Investments Limited [Member] | Mackov Investments Limited [Member] | Mackov Investments Limited [Member] | Mackov Investments Limited [Member] | Mackov Investments Limited [Member] | Mackov Investments Limited [Member] | Mackov Investments Limited [Member] | Mackov Investments Limited [Member] | Mackov Investments Limited [Member] | Mackov Investments Limited [Member] | Mackov Investments Limited [Member] | Mountain Home Petroleum Business Trust [Member] | Tate and Other Unaffiliated Investors [Member] | Liberty Prospects [Member] | Koelsch 25-1 Well [Member] | Koelsch 25-1 Well [Member] | Moroni 1 AXZH Well [Member] | Moroni 1 AXZH Well [Member] | Moroni 1 AXZH Well [Member] | Moroni 1 AXZH Well [Member] | Prescott 25-6 Well [Member] | |||
Subsequent Event [Member] | Minimum [Member] | Maximum [Member] | acre | acre | acre | HPI Liberty 1 Well Before Payout [Member] | Huop Freedom Trend Prospect Shallow Zone [Member] | Huop Freedom Trend Prospect Shallow Zone [Member] | Huop Freedom Trend Prospect Deep Zone [Member] | Minimum [Member] | Maximum [Member] | Zions Energy Corporation [Member] | acre | acre | Zions Energy Corporation [Member] | Mackov Investments Limited [Member] | |||||||||||||||||||||
acre | Subsequent Event [Member] | Subsequent Event [Member] | acre | acre | |||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Overriding Royalty Interest | ' | ' | ' | ' | ' | ' | ' | 0.50% | 3.63% | ' | ' | ' | 12.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | 2.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working Interest Percentage | ' | ' | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | 1.50% | ' | ' | 1.00% | 2.25% | ' | 0.25% | 0.50% | ' | ' | ' | ' | 1.00% | 3.00% | ' | 1.00% | 0.50% | 1.00% | 0.50% | ' |
Percentage of Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' |
Percentage of Beneficiary of Trust | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gas and Oil Area, Developed, Gross | ' | ' | ' | ' | ' | ' | 1,636 | ' | ' | ' | ' | 400 | 1,816 | ' | ' | ' | ' | ' | ' | ' | 1,127 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 320 | 320 | 320 | 320 | ' |
Property, Plant and Equipment, Disposals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $262,500 | ' | $4,545 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9,090 | ' | $77,561 | $38,781 | $50,000 | ' | ' |
Royalty Revenue | ' | ' | ' | ' | 23,284 | 12,489 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,662 | ' | ' | ' | ' | ' |
Issuance of Note Payable | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Paid For Note Payable | ' | ' | ' | 247 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Loans | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | ' | ' | ' | $3.68 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Expiration Date | ' | ' | ' | 'September 29, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants, Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000 | ' | ' | ' | ' | 3,500,000 | 154,753 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant Issued To Purchase Of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88,057 | ' | ' | ' | ' | 154,753 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88,057 | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Issued To Purchase of Common Stock Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,611 | ' | ' | ' | ' | 247,605 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140,889 | ' | ' | ' | ' | ' | ' | ' | 619,500 |
Warrants Issued to Purchase of Common Stock Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.20 | ' | ' | ' | ' | $1.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.60 | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued | 39,906,770 | 32,518,192 | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | 262,821 | 4,908,532 | 5,958 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Value, Issued | 39,907 | 32,518 | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | 1,472,560 | 14,895 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, No Par Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.80 | ' | ' | ' | ' | $0.30 | $2.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Exercise Price, Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Expiration Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-May-14 | ' | ' | ' | ' | 31-May-20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The options vest 50% upon the earlier of six months or the Company obtaining funding in excess of $3 million, 25% after one year and 25% after two years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | 59,644 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,200 | ' | ' | ' | 96,800 | 7,193 | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, New Issues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 118,000 | ' | ' | ' | 242,000 | 11,509 | ' | ' | ' | ' | ' | ' | 62,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period Per Share New Issues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.50 | $1.60 | ' | ' | ' | ' | ' | ' | $2.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Annual Principal Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,000 | ' | ' | ' | ' | 217,050 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Expense, Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82,172 | ' | 0 | 12,642 | ' | ' | 727 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Related Party Debt | 0 | 337,713 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | 299,222 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Payment in Cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 287,713 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Demand Loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Demand Loan Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Oil and Natural Gas Leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Renewal of Existing Lease | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 283,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures, Total | $345,592 | $3,609,444 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $383,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 153,280 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | ' | ' | ' | $5 | ' | ' | ' | ' | ' | ' | ' | $2.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_Details
FAIR VALUE (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Beginning Balance | $0 |
New Derivative Liability | 1,066,932 |
Transfers to (from) Level 3 | 0 |
Total (gains)/losses included in earnings | -756,776 |
Issuances | 0 |
Ending Balance | $310,156 |
FINANCIAL_INSTRUMENTS_AND_CONC1
FINANCIAL INSTRUMENTS AND CONCENTRATION RISKS (Details Textual) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Concentration Risk [Line Items] | ' | ' |
Percentage Of Accounts Receivable Balance Related Parties | 70.00% | 71.00% |
Percentage Of Revenue Resulted From Producing Wells | 99.00% | 100.00% |
LEGAL_PROCEEDINGS_Details_Text
LEGAL PROCEEDINGS (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 1 Months Ended | |
Dec. 31, 2013 | Sep. 30, 2013 | Mar. 17, 2014 | Nov. 30, 2013 | |
Nostra Terra Oil and Gas Company V Richfield Oil Gas Company [Member] | Roger Buller Vs. Richfield Oil Gas Company [Member] | United States Fidelity and Guaranty Company Vs. Douglas C. Hewitt [Member] | Kansas Corporation Commission Vs. Hewitt Energy Group, Inc. [Member] | |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Loss Contingency, Lawsuit Filing Date | 'February 1, 2012 | ' | ' | ' |
Loss Contingency, Name of Defendant | 'Nostra Terra Oil & Gas Company | ' | ' | ' |
Loss Contingency, Name of Plaintiff | 'HPI, HEGINC, and HEGLLC | ' | ' | ' |
Long-term Debt, Gross | $1,300,000 | ' | ' | ' |
Debt Instrument, Interest Rate at Period End | 10.00% | ' | ' | ' |
Loss Contingency, Damages Paid, Value | 220,849 | 50,386 | ' | ' |
Purchase Obligation, Due in Next Twelve Months | ' | ' | 1,500 | ' |
Purchase Obligation, Total | ' | ' | 30,754 | ' |
Loss Contingency, Damages Sought, Value | ' | ' | ' | $10,000 |
SUBSEQUENT_EVENTS_Details_Text
SUBSEQUENT EVENTS (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 2 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||
Dec. 31, 2013 | Mar. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Unaffiliated Investors [Member] | Unaffiliated Investors [Member] | Unaffiliated Investors [Member] | Board of Directors Chairman [Member] | Director [Member] | Unaffiliated debt holder member [Member] | Consultants [Member] | Consultants [Member] | Existing Debt Holder [Member] | Huop Freedom Trend Prospect [Member] | Ratchet Provisions [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Unaffiliated Investors [Member] | Unaffiliated debt holder member [Member] | Consultants [Member] | Unaffiliated debt holder member [Member] | Consultants [Member] | ||
acre | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | 59,644 | 1,300,000 | 3,153,208 | 816,200 | 4,908,532 | 200,000 | 888,598 | ' | ' | ' | ' | 3,969,408 | ' | ' | ' | ' |
Stock Issued During Period, Value, New Issues | ' | $276,380 | ' | ' | $1,472,560 | $50,000 | $196,614 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Issued For Services | ' | ' | ' | ' | ' | ' | ' | 280,000 | 669,167 | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Issued for Services | ' | ' | ' | ' | ' | ' | ' | 64,400 | 166,799 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.12 | ' | $0.13 | ' |
Shares Issued, Price Per Share | ' | $0.21 | $0.39 | $0.60 | $0.30 | $0.25 | ' | $0.23 | $0.23 | ' | ' | ' | $0.21 | $0.22 | $0.25 | $0.26 |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | 9.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant Issued To Purchase Of Common Stock | ' | 1,300,000 | ' | ' | ' | 200,000 | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' |
Warrants Issued to Purchase of Common Stock Exercise Price | ' | $0.25 | ' | ' | ' | $0.25 | ' | ' | ' | $0.25 | ' | ' | ' | ' | ' | ' |
Short-term Bank Loans and Notes Payable | ' | ' | 2,665,747 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate During Period | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Lines of Credit | ' | ' | 314,744 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gas and Oil Area, Undeveloped, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,823 | ' | ' | ' | ' | ' |
Initial Bonus for New Lease | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $182,308 | ' | ' | ' | ' | ' |
SUPPLEMENTAL_OIL_AND_NATURAL_G2
SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ' | ' |
Unproved Oil and Gas Properties | $14,095,020 | $14,164,053 |
Proved Oil and Gas Properties | 7,139,663 | 6,581,725 |
Well and Related Equipment | 1,997,913 | 1,024,972 |
Accumulated Depreciation, Depletion, and Amortization, and Valuation Allowances | -1,224,523 | -923,083 |
Net Capitalized Costs | $22,008,073 | $20,847,667 |
SUPPLEMENTAL_OIL_AND_NATURAL_G3
SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED) (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Acquisition of Properties | ' | ' |
Proved | $0 | $2,033,125 |
Unproved | 297,773 | 4,368,860 |
Exploration Costs | 200,244 | 764,417 |
Development Costs | $2,149,872 | $1,849,445 |
SUPPLEMENTAL_OIL_AND_NATURAL_G4
SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED) (Details 2) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
bbl | Mcf | bbl | Mcf | |
Mcf | bbl | Mcf | bbl | |
Reserve Quantities [Line Items] | ' | ' | ' | ' |
Net Proved Developed and Undeveloped Reserves, Beginning Balance | 527,310 | 527,310 | 267,400 | 267,400 |
Revisions of Previous Estimates | -50,222 | -2,310 | 572,988 | 207,369 |
Improved Recovery | 0 | 0 | 0 | 0 |
Purchase of Reserves in Place | 0 | 0 | 254,691 | 15,760 |
Extensions, Discoveries and Other Additions | 57,508 | 0 | 96,440 | 46,771 |
Net Production | -11,331 | 0 | -10,931 | 0 |
Sale of Reserves in Place | -223,145 | 0 | -20,628 | -9,990 |
Net Proved Developed and Undeveloped Reserves, Ending Balance | 1,341,000 | 1,341,000 | 527,310 | 527,310 |
SUPPLEMENTAL_OIL_AND_NATURAL_G5
SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED) (Details 3) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 |
bbl | Mcf | Mcf | bbl | bbl | Mcf | |
Reserve Quantities [Line Items] | ' | ' | ' | ' | ' | ' |
Proved Developed Reserves (Volume) | 472,000 | 103,000 | 118,620 | 546,560 | 106,060 | 0 |
Proved Undeveloped Reserve (Volume) | 869,000 | 421,000 | 408,690 | 1,021,630 | 569,570 | 267,400 |
SUPPLEMENTAL_OIL_AND_NATURAL_G6
SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED) (Details 4) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ' | ' |
Future Cash Inflows | $124,095,840 | $140,043,710 |
Future Development Costs | -22,309,810 | -26,062,540 |
Future Production Costs | -56,390,950 | -59,329,510 |
Future Income Tax Expenses | -16,932,365 | -20,385,069 |
Future Net Cash Flows | 28,462,715 | 34,266,591 |
10% Annual Discount for Estimated Timing of Cash Flows | -10,356,209 | -12,994,274 |
Standardized Measure of Discounted Future Net Cash Flows | $18,106,506 | $21,272,317 |
SUPPLEMENTAL_OIL_AND_NATURAL_G7
SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED) (Details 5) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ' | ' |
Net Change in Sales and Transfer Prices and in Production (Lifting) Costs Related to Future Production | ($4,699,746) | $15,115,402 |
Changes in Estimated Future Development Costs | 3,752,730 | -13,914,960 |
Sales and Transfers of Oil and Gas Produced During the Period | -774,426 | -952,566 |
Net Change Due to Extensions, Discoveries, and Improved Recovery | 1,565,304 | 3,104,457 |
Net Change Due to Purchases and Sales of Reserves in Place | -5,935,737 | 5,341,555 |
Net Change Due to Revisions in Quantity Estimates | -2,164,844 | 11,736,779 |
Previously Estimated Development Costs Incurred During the Period | 2,042,378 | 1,730,765 |
Accretion of Discount | -404,174 | -186,278 |
Other - Unspecified | 0 | 0 |
Net Change in Income Taxes | 3,452,704 | -10,506,966 |
Aggregate Change in the Standardized Measure of Discounted Future Net Cash Flows for the Year | ($3,165,811) | $11,468,188 |
SUPPLEMENTAL_OIL_AND_NATURAL_G8
SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED) (Details 6) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
South Haven Perth And Oklahoma Properties [Member] | ' | ' |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' |
Reserve Estimate Price | 2.75 | 2.068 |
Average Sales Prices One | 93.28 | 91.05 |
All Other Kansas Properties [Member] | ' | ' |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' |
Reserve Estimate Price | 2.75 | 2.068 |
Average Sales Prices One | 90.68 | 88.45 |
Wyoming Properties [Member] | ' | ' |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' |
Reserve Estimate Price | 2.75 | 2.068 |
Average Sales Prices One | 87.13 | 84.9 |
SUPPLEMENTAL_OIL_AND_NATURAL_G9
SUPPLEMENTAL OIL AND NATURAL GAS INFORMATION (UNAUDITED) (Details Textual) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' |
Proved Developed And Undeveloped Reserves Working Interests Sold | 60.00% | ' |
Future Net Cash Flows Discounted Rate | 10.00% | ' |
Perth and South Haven Fields [Member] | ' | ' |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' |
Change In Reserve Estimate Price | 93.28 | 91.05 |
Kansas Properties [Member] | ' | ' |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' |
Change In Reserve Estimate Price | 90.68 | 88.45 |
Wyoming Properties [Member] | ' | ' |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' |
Change In Reserve Estimate Price | 87.13 | 84.9 |
All Other Kansas Properties [Member] | ' | ' |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' |
Change In Reserve Estimate Price | 2.75 | ' |
Natural Gas, Per Thousand Cubic Feet [Member] | ' | ' |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' |
Change In Reserve Estimate Price | 2.068 | ' |