Brushy Resources 10-K 16 Apr 15 2014 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Apr. 14, 2015	Jun. 30, 2014
Document And Entity Information
Entity Registrant Name	Starboard Resources Inc.
Entity Central Index Key	1554970
Document Type	10-K
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$0
Entity Common Stock, Shares Outstanding		12,711,986
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2014

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2014	Dec. 31, 2013
Current assets
Cash	$3,574,427	$5,794,417
Trade receivable	1,860,293	1,778,213
Joint interest receivable	508,001	60,374
Current Derivative Asset	1,699,156
Prepaid expenses	283,580	153,410
Total current assets	7,925,457	7,786,414
Oil and natural gas properties and other equipment
Oil and natural gas properties, successful efforts method, net of accumulated depletion	91,766,118	74,165,670
Other property and equipment, net of depreciation	103,757	168,631
Total oil and natural gas properties and other equipment, net	91,869,875	74,334,301
Other assets
Derivative Asset	66,930
Goodwill	959,681	959,681
Other	981,283	1,112,025
Total other assets	2,007,984	2,071,706
Total assets	101,803,266	84,192,421
Current liabilities
Accounts payable and accrued liabilities	5,835,145	9,484,861
Joint interest revenues payable	828,924	967,780
Current derivative liability		62,834
Current maturities of notes payable	2,353,322	25,209
Current asset retirement obligations	428,258	366,360
Total current liabilities	9,445,649	10,907,044
Long-term liabilities
Derivative liabilities		51,187
Notes payable	23,161,567	12,531,879
Related party note payable	10,180,000
Deferred income tax	14,039,742	15,545,910
Asset retirement obligations	3,177,295	2,070,308
Total long-term liabilities	50,558,604	30,199,284
Commitments and contingencies
Stockholders' equity
Preferred stock, $.001 par value, authorized 10,000,000 shares; none issued and outstanding	0	0
Common stock, $.001 par value, authorized 150,000,000 shares; 12,362,336 shares issued at December 31, 2013 and 2012	12,362	12,362
Paid-in capital in excess of par	55,919,905	54,446,105
Retained deficit	-14,133,294	-11,372,374
Total stockholders' equity	41,798,973	43,086,093
Total liabilities and stockholders' equity	$101,803,226	$84,192,421

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Preferred Stock, par value	$0.00	$0.00
Preferred Stock, Authorized	10,000,000	10,000,000
Preferred Stock, Shares issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, par value	$0.00	$0.00
Common Stock, Authorized	150,000,000	12,362,336
Common Stock, Issued	12,362,336	12,362,336

CONSOLIDATED_STATEMENT_OF_OPER

CONSOLIDATED STATEMENT OF OPERATIONS (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Oil, natural gas, and related product sales	$20,172,792	$14,965,153
Expenses
Depreciation and depletion	10,140,152	6,436,366
Lease operating	5,457,471	4,237,207
General and administrative	3,876,698	3,087,034
Professional fees	986,774	777,655
Production taxes	695,693	434,623
Accretion of discount on asset retirement obligation	319,703	159,683
Exploration	80,533	43,794
Impairment of oil and gas properties	4,428,378
Gain on sale of assets	-2,115,967
Total expenses	23,869,435	15,176,362
Operating loss	-3,696,643	-211,209
Other income (expense)
Interest income and expense	-2,617,481	-586,542
Going public delay expense		-425,005
Gain (loss) from derivative contracts	2,065,998	-23,153
Total other expense	-551,483	-1,034,700
Income (loss) before income taxes	-4,248,126	-1,245,909
Income tax expense:
Current income tax (expense) benefit	-15,465	-26,502
Deferred income tax (expense) benefit	1,502,671	-273,402
Total income tax (expense) benefit	1,487,206	-299,904
Net loss	($2,760,920)	($1,545,813)
Net loss per basic and diluted common share	($0.22)	($0.13)
Weighted average basic and diluted common shares outstanding	12,362,336	12,362,336

CONSOLIDATED_STATEMENT_OF_CHAN

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $)	Common Stock	Paid-In Capital in Excess of Par	(Deficit)	Total
Beginning Balance, Amount at Dec. 31, 2012	$12,362	$53,247,305	($9,826,561)	$43,433,106
Beginning Balance, Shares at Dec. 31, 2012	12,362,336
Stock based compensation		1,198,800		1,198,800
Net Loss			-1,545,813	-1,545,813
Ending Balance, Amount at Dec. 31, 2013	12,362	54,446,105	-11,372,374	43,086,093
Ending Balance, Shares at Dec. 31, 2013	12,362,336
Stock based compensation		1,473,800		1,473,800
Net Loss			-2,760,920	-2,760,920
Ending Balance, Amount at Dec. 31, 2014	$12,362	$55,919,905	($14,133,294)	$41,798,973
Ending Balance, Shares at Dec. 31, 2014	12,362,336

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash Flows from Operating Activities
Net loss	($2,760,920)	($1,545,813)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and depletion	10,140,152	6,436,366
Impairment of oil and gas properties	4,428,378
Deferred income taxes	-1,506,168	-273,402
Stock-based compensation	1,473,800	1,198,800
Accretion of asset retirement obligation	319,703	159,683
Going public delay expense		425,005
Unrealized (gain) loss on derivative contracts	-1,880,107	-45,348
Accretion of debt issuance costs	192,739	210,832
Gain on asset sale	-2,115,916
Increase (decrease) in cash attributable to changes in operating assets and liabilities:
Trade receivable	-82,079	-577,897
Joint interest receivable	-447,627	-4,653
Prepaid expenses and other assets	71,808	-102,339
Accounts payable and accrued liabilities	-1,134,686	4,323,757
Joint interest revenues payable	-138,856	409,948
Net cash provided by operating activities	6,560,221	11,161,743
Cash flows from investing activities
Development of oil and natural gas properties	-16,492,626	-16,103,521
Acquisition of oil and natural gas properties	-16,803,448
Proceeds from sale of oil and natural gas properties	1,891,743	1,780,629
Acquisition of other property and equipment	-9,495
Oil and natural gas abandonment costs	-27,345	-47,806
Other assets		-6,071
Net cash used in investing activities	-31,441,171	-14,376,769
Cash flows from financing activities
Proceeds from notes payable, net of debt issuance costs	23,849,558	18,141,803
Deferred offering costs	-86,231	-150,738
Repayments of notes payable	-1,102,367	-10,018,481
Net cash provided by financing activities	22,660,960	7,972,584
Net increase (decrease) in cash	-2,219,990	4,757,558
Cash, beginning of year	5,794,417	1,036,859
Cash, end of year	3,574,427	5,794,417
Supplemental disclosure of cash flow information
Cash paid during the period for taxes	3,835
Cash paid during the period for interest	2,231,137	377,144
Supplemental disclosure of non-cash investing transactions
Payables related to oil and natural gas capitalized expenditures	1,537,638	1,622,160
Capitalized asset retirement cost	849,181	52,792
Payable settled through asset sales	3,872,674
Supplemental disclosure of non-cash financing transactions
Notes payable issued for purchase of equipment		$34,428

1_NATURE_OF_OPERATIONS

1. NATURE OF OPERATIONS	12 Months Ended
	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
1. NATURE OF OPERATIONS	Starboard Resources, LLC was formed in Delaware on June 2, 2011 as a limited liability company named Starboard Resources LLC to acquire, own, operate, produce, and develop oil and natural gas properties primarily in Texas and Oklahoma. On June 28, 2012, Starboard Resources, LLC converted from a Delaware limited liability company to a Delaware C-Corporation called Starboard Resources, Inc. (“Starboard”).  The membership units of Starboard Resources LLC were exchanged on a 1:1 basis for common shares of Starboard Resources, Inc.

2_SUMMARY_OF_SIGNIFICANT_ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Basis of Presentation
	The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).
	These consolidated financial statements were approved and available for issuance on March 31, 2015. Subsequent events have been evaluated through this date.
	Revision of prior period financial statements and out-of-period adjustments
	During the year ended December 31, 2014, we identified and corrected an immaterial tax provision error that originated in prior periods. We assessed the materiality of the errors in accordance with the SEC guidance on considering the effects of prior period misstatements based on an analysis of quantitative and qualitative factors. Based on this analysis, we determined that the errors were immaterial to each of the prior reporting periods affected and, therefore, amendments of reports previously filed with the SEC were not required. However, we have concluded that correcting the errors in our 2014 financial statements would materially overstated results for the year ending December 31, 2014. Accordingly, we have reflected the correction of these prior period errors in the periods in which they originated and revised our consolidated balance sheet and consolidated statement of equity for the year ended December 31, 2013, and consolidated statement of cash flows for the year ended December 31. 2013
	The effect of the immaterial correction on the condensed consolidated balance sheet as of December 31, 2013 are as follows (in thousands):
		As Reported			Correction			As Revised
	Deferred tax assets	$	39		$	(39	)	$	0
	Total current assets		7,825			(39	)		7,786
	Total assets	$	84,231		$	(39	)	$	84,192
	Deferred tax liabilities	$	15,914		$	(368	)	$	15,546
	Total liabilities		41,474			(368	)		41,106
	Accumulated deficit		(11,701	)		329			(11,372	)
	Total stockholders' equity		42,757			329			43,086
	Total liabilities and stockholders' equity	$	84,231		$	(39	)	$	84,192
	The effect of the corrections on the Company’sconsolidated statements of operations for the year ended December 31, 2013 are as follows:
		As Reported			Correction			As Revised
	For the year ended December, 2013
	Loss before income taxes		(1,246	)		-			(1246	)
	Deferred income tax benefit (expense)		629			(329	)		300
	Net loss	$	(1,875	)	$	(329	)	$	(1,546	)
	The effect of the corrections on the Company’s consolidated statements of cash flows for the year ended December 31, 2013 are as follows:
		As Reported			Correction			As Revised
	For the year ended December 31, 2013
	Cash flows from operating activities:
	Net income (loss)	$	(1,875	)	$	329		$	(1,546	)
	Deferred income taxes		603			(329	)		274
	Other		12,434			-			12,434
	Net cash provided by operating activities		11,162			-			11,162
	Net cash used in investing activities		(14,377	)		-			(14,377	)
	Net provided by financing activities		7,973			-			7,973
	Net increase in cash		4,758			-			4,758
	Cash, beginning of period		1,037			-			1,037
	Cash, end of period	$	5,794			-		$	5,794
	Principles of Consolidation
	The accompanying condensed consolidated financial statements include the accounts of Starboard and its wholly owned subsidiaries, ImPetro Resources, LLC (“ImPetro”) and ImPetro Operating (“Operating”) (Collectively the “Company”). All intercompany transactions and balances have been eliminated in consolidation.
	Oil and Gas Natural Gas Properties
	The Company uses the successful efforts method of accounting for oil and natural gas producing activities, as further defined under ASC 932, Extractive Activities - Oil and Natural Gas.  Under these provisions, costs to acquire mineral interests in oil and natural gas properties, to drill exploratory wells that find proved reserves, and to drill and equip development wells are capitalized.
	Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves.  A determination of whether a well has found proved reserves is made shortly after drilling is completed.  The determination is based on a process that relies on interpretations of available geologic, geophysic and engineering data.  If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well.  Capitalized costs of producing oil and natural gas interests are depleted on a unit-of-production basis at the field level.
	If an exploratory well is determined to be unsuccessful, the capitalized drilling costs will be charged to expense in the period the determination is made.  If a determination cannot be made as to whether the reserves that have been found can be classified as proved, the cost of drilling the exploratory well is not carried as an asset for more than one year following completion of drilling.  If, after that year has passed, a determination that proved reserves exist cannot be made, the well is assumed to be impaired and its costs are charged to expense.  Its cost can, however, continue to be capitalized if a sufficient quantity of reserves is discovered in the well to justify its completion as a producing well and the entity is making sufficient progress assessing the reserves and the economic and operating viability of the project.
	The carrying value of oil and gas properties is assessed for possible impairment on a field by field basis and on at least an annual basis, or as circumstances warrant, based on geological analysis or changes in proved reserve estimates. When impairment occurs, an adjustment is recorded as a reduction of the asset carrying value. For year December 31, 2014, the Company's impairment charge approximated $4,428,378. During the year-ended December 31, 2013 the Company did not incur an impairment charge.
	Other Property and Equipment
	Other property and equipment, which includes field equipment, vehicles, and office equipment, is stated at cost less accumulated depreciation and amortization.  Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets.  Vehicles and office equipment are generally depreciated over a useful life of five years and field equipment is generally depreciated over a useful life of twenty years.
	Goodwill
	Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in the acquisition of a business. Goodwill is not amortized; rather, it is tested for impairment annually and when events or changes in circumstances indicate that fair value of a reporting unit with goodwill has been reduced below carrying value. The impairment test requires allocating goodwill and other assets and liabilities to reporting units. However, the Company only has one reporting unit. To assess impairment, the Company has the option to qualitatively assess if it is more likely than not that the fair value of the reporting unit is less than the book value. Absent a qualitative assessment, or, through the qualitative assessment, if the Company determines it is more likely than not that the fair value of the reporting unit is less than the book value, a quantitative assessment is prepared to calculate the fair market value of the reporting unit. If it is determined that the fair value of the reporting unit is less than the book value, the recorded goodwill is impaired to its implied fair value with a charge to operating expenses. As of December 31, 2014 and 2013 and the years then ended there was no impairment of goodwill.
	Deferred Offering Costs
	The Company complies with the requirements of the Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin (SAB) Topic 5A ‘‘Expenses of Offering’’. Deferred offering costs consist principally of accounting, legal and other fees incurred through the consolidated balance sheet dates that are related to a proposed initial public offering and that will be charged to stockholders’ equity upon the receipt of the offering proceeds or charged to expense if the offering is not completed. For the years ended December 31, 2014 and 2013, the Company incurred deferred offering costs of approximately $86,231 and $151,000, respectively, relating to expenses connected with the proposed offering. The deferred offering costs are included in other assets in the consolidated balance sheets.  Additionally, these costs are reviewed periodically by management for indications of impairment. For the years ended December 31, 2014 and 2013, the Company did not have an impairment charge.
	Asset Retirement Obligations
	The Company follows the provisions of ASC 410-20, Asset Retirement Obligations. ASC 410-20 requires entities to record the fair value of obligations associated with the retirement of tangible long-lived assets in the period in which it is incurred.  When the liability is initially recorded, the entity capitalizes a cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depleted as part of the oil and natural gas property.  Upon settlement of the liability, an entity either settles the obligation for its recorded amount or incurs a gain or loss upon settlement.  The Company’s asset retirement obligations relate to the plugging, dismantlement, removal, site reclamation and similar activities of its oil and natural gas properties.
	Asset retirement obligations are estimated at the present value of expected future net cash flows and are discounted using the Company’s credit adjusted risk free rate. The Company uses unobservable inputs in the estimation of asset retirement obligations that include, but are not limited to, costs of labor, costs of materials, profits on costs of labor and materials, the effect of inflation on estimated costs, and the discount rate. Accordingly, asset retirement obligations are considered a Level 3 measurement under ASC 820.  Additionally, because of the subjectivity of assumptions and the relatively long lives of the Company’s wells, the costs to ultimately retire the Company’s wells may vary significantly from prior estimates.
	Revenue Recognition and Natural Gas Imbalances
	The Company utilizes the accrual method of accounting for natural gas and crude oil revenues, whereby revenues are recognized based on the Company’s net revenue interest in the wells upon delivery to third parties.  The Company will also enter into physical contract sale agreements through its normal operations.
	Gas imbalances are accounted for using the sales method.  Under this method, revenues are recognized based on actual volumes of oil and gas sold to purchasers.  However, the Company has no history of significant gas imbalances.
	Cash
	The Company considers all highly-liquid debt instruments with original maturities of three months or less to be cash equivalents. As of December 31, 2014 and 2013, the Company did not hold any cash equivalents.
	The Company maintains its cash balances in financial institutions which are insured by the Federal Deposit Insurance Corporation (“FDIC”).   From time to time, the Company will maintain cash balances in a financial institution that may exceed the FDIC coverage of $250,000. The Company has not experienced any losses in such accounts and believes it is not subject to any significant credit risk on cash.
	Trade Receivable and Joint Interest Receivable
	Trade receivable is comprised of accrued natural gas and crude oil sales and joint interest receivable is comprised of amounts owed to the Company from joint interest owners for their proportionate share of expenses.  Generally, operators of natural gas and crude oil properties have the right to offset joint interest receivables with revenue payables.  Accordingly, any joint interest owner that has a joint interest receivable and joint interest revenue payable as of December 31, 2014 and 2013 are shown at net in the accompanying consolidated balance sheets.
	The Company performs ongoing credit evaluations of its customers’ and extends credit to virtually all of its customers. Credit losses to date have not been significant and have been within management’s expectations.  In the event of complete non-performance by the Company’s customers and joint interest owners, the maximum exposure to the Company is the outstanding trade and joint interest receivable balance at the date of non-performance. For the years ended December 31, 2014 and 2013, the Company had no bad debt expense.
	Derivative Activities
	The Company utilized oil and natural gas derivative contracts to mitigate its exposure to commodity price risk associated with its future oil and natural gas production. These derivative contracts have historically consisted of options, in the form of price floors or collars. The Company’s derivative financial instruments are recorded on the consolidated balance sheets as either an asset or a liability measured at fair value. The Company does not apply hedge accounting to its oil and natural gas derivative contracts and accordingly the changes in the fair value of these instruments are recognized in the statement of operations in the period of change.
	The Company’s derivative instruments are issued to manage the price risk attributable to our expected natural gas and oil production. While there is risk that the financial benefit of rising natural gas and oil prices may not be captured, Company management believes the benefits of stable and predictable cash flow are more important. Every unsettled derivative instrument is recorded on the accompanying consolidated balance sheets as either an asset or a liability measured at its fair value. Changes in a derivative’s fair value are recognized in earnings unless specific hedge accounting criteria are met. Cash flows from natural gas and oil derivative contract settlements are reflected in operating activities in the accompanying consolidated statements of cash flows.
	Realized and unrealized gains and losses on derivatives are accounted for using the mark-to-market accounting method. The Company recognizes all unrealized and realized gains and losses related to these contracts in each period in gain (loss) from derivative contracts in the accompanying consolidated statements of operations.
	Lease Operating Expenses
Lease operating expenses represent, pumpers’ salaries, saltwater disposal, ad valorem taxes, repairs and maintenance, expensed workovers and other operating expenses.  Lease operating expenses are expensed as incurred.
Sales-Based Taxes
The Company incurs severance tax on the sale of its production which is generated in Texas and Oklahoma.  These taxes are reported on a gross basis and are included in production taxes within the accompanying consolidated statements of operations.
Stock-Based Compensation and Equity Incentive Plans
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation. The standard requires the measurement and recognition of compensation expense in the Company’s consolidated statements of operations for all share-based payment awards made to the Company’s employees, directors and consultants including employee stock options, non-vested equity stock and equity stock units, and employee stock purchase grants. Stock-based compensation expense is measured at the grant date, based on the estimated fair value of the award, reduced by an estimate of the annualized rate of expected forfeitures, and is recognized as an expense over the employees’ expected requisite service period, generally using the straight-line method. In addition, ASC 718 requires the benefits of tax deductions in excess of recognized compensation expense to be reported as a financing cash flow, rather than as an operating cash flow as prescribed under previous accounting rules.
The Company’s forfeiture rate represents the historical rate at which the Company’s stock-based awards were surrendered prior to vesting. ASC 718 requires forfeitures to be estimated at the time of grant and revised on a cumulative basis, if necessary, in subsequent periods if actual forfeitures differ from those estimates.
During the years ended December 31, 2014 and 2013, the Company incurred a stock based compensation expense of approximately $1,474,000 and $1,199,000, respectively, and is included in the accompanying consolidated statements of operations in general and administrative expenses.
Income Taxes
Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amount expected to be realized.
The Company is required to determine whether its tax positions are more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. De-recognition of a tax benefit previously recognized results in the Company recording a tax liability that increases expense in that period. Based on its analysis, the Company has determined that it has not incurred any liability for unrecognized tax benefits as of December 31, 2014. The Company’s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulations and interpretations thereof.
The Company recognizes interest and penalties related to unrecognized tax benefits in interest expense and other expenses, respectively. No interest expense or penalties have been recognized as of December 31, 2014.
Net Income (Loss) Per Common Share
Basic net income (loss) per common share is computed by dividing the net income (loss) attributable to stockholders by the weighted average number of common shares outstanding during the period.  Diluted net income (loss) per common share is calculated in the same manner, but also considers the impact to common shares for the potential dilution from stock options, non-vested share appreciation rights and non-vested restricted shares. For the year ended December 31, 2014, there were 1,249,650 potentially dilutive non-vested restricted shares and stock options. For the year ended December 31, 2013, there were 349,650 potentially dilutive non-vested restricted shares. The potentially dilutive shares, for the December 31, 2014 and 2013, are considered antidilutive since the Company is in a net loss position and thus result in the basic net income (loss) per common share equaling the diluted net income (loss) per common share.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
The Company’s estimates of oil and natural gas reserves are, by necessity, projections based on geologic and engineering data, and there are uncertainties inherent in the interpretation of such data as well as the projection of future rates of production and the timing of development expenditures. Reserve engineering is a subjective process of estimating underground accumulations of natural gas and oil that are difficult to measure. The accuracy of any reserve estimate is a function of the quality of available data, engineering and geological interpretation and judgment. Estimates of economically recoverable natural gas and oil reserves and future net cash flows necessarily depend upon a number of variable factors and assumptions, such as historical production from the area compared with production from other producing areas, the assumed effect of regulations by governmental agencies, and assumptions governing future natural gas and oil prices, future operating costs, severance taxes, development costs and workover costs, all of which may in fact vary considerably from actual results. The future drilling costs associated with reserves assigned to proved undeveloped locations may ultimately increase to the extent that these reserves are later determined to be uneconomic. For these reasons, estimates of the economically recoverable quantities of expected natural gas and oil attributable to any particular group of properties, classifications of such reserves based on risk of recovery, and estimates of the future net cash flows may vary substantially. Any significant variance in the assumptions could materially affect the estimated quantity of the reserves, which could affect the carrying value of the Company’s oil and natural gas properties and/or the rate of depletion related to the oil and natural gas properties.

3_FAIR_VALUE_MEASUREMENTS

3. FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2014
Fair Value Disclosures [Abstract]
3. FAIR VALUE MEASUREMENTS	As defined by ASC 820, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale, which was further clarified as the price that would be received to sell an asset or paid to transfer a liability (“an exit price”) in an orderly transaction between market participants at the measurement date.  The carrying amounts of the Company’s financial assets and liabilities, such as cash, trade receivable, joint interest receivable, joint interest revenues payable, accounts payable and accrued liabilities and related party payable, approximate their fair values because of the short maturity of these instruments.  The carrying amount of the notes payable in long-term debt also approximates fair value due to its variable-rate characteristics.
	The following tables present information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2014 and December 31, 2013:
								Balance as of
								December 31,
	($ in thousands)	Level 1		Level 2		Level 3		2014
	Assets (at fair value):
	Derivative assets (oil put options)	$	0	$	1,766	$	0	$	1,766
								Balance as of
								December 31,
	($ in thousands)	Level 1		Level 2		Level 3		2013
	Liabilities (at fair value):
	Derivative liabilities (oil collar and put options)	$	0	$	114	$	0	$	114

4_PROPERTY_ACQUISITION

4. PROPERTY ACQUISITION	12 Months Ended
	Dec. 31, 2014
Property Acquisition
4. PROPERTY ACQUISITION	On March 26, 2014 (the “Acquisition Date”), the Company completed the purchase of oil and natural gas leases and leasehold interests (the “Oil and Natural Gas Properties”) from White Oak Resources VI, LLC and Permian Atlantis LLC (collectively the “Seller”) for the purpose of increasing the Company’s oil and natural gas operations in the Permian Basin. The assets acquired are: (a) oil and natural gas leases and leasehold interests in Winkler and Loving Counties in Texas and Lea County, New Mexico; (b) twenty-nine wellbores; and (c) any contracts or agreements related to the foregoing lands, leases and wells. The Oil and Natural Gas Properties include total acreage held by production of 5,160 gross developed acres (1,983.61 net developed acres). Additionally, producing wells and surrounding acreage have been unitized under Texas Railroad Commission regulations. Under the terms of the agreement, the Company purchased the Oil and Natural Gas Properties for $16,803,000 in cash, including before purchase price adjustments.
	Unaudited Pro Forma Condensed Combined Financial Statements
	The following unaudited pro forma financial statements give effect to the acquisition of the Oil and Natural Gas Properties. The unaudited pro forma condensed statement of operations for the year ended December 31, 2014 and 2013 reflects the acquisition of the Oil and Natural Gas Properties as if it had occurred on January 1, 2013.
	It is not intended to be indicative of the Company's results of operations or financial position that might have been achieved had the acquisition been completed as of the dates presented, or the Company's future results of operations or financial position.
	in thousands, except share data	Year Ended December 31,			Year Ended December 31,
		2014			2013
	Oil, natural gas, and related product sales	$	20,855		$	17,512
	Net loss	$	2,442		$	92
	Net loss per basic and diluted common share	$	0.2		$	0
	Weighted average basic and diluted common shares outstanding		12,362,336			12,362,336
	Financial Statement Presentation and Purchase Price Allocation
	The following table summarizes the purchase price and values of assets acquired and liabilities assumed:
	Fair value of assets acquired and liabilities assumed (in thousands)
	Proved oil and natural gas properties (1)	$	17,662
	Revenue payable		(27	)
	Asset retirement obligations		(832	)
	Total fair value of assets acquired and liabilities assumed, net	$	16,803
	Cash consideration transferred	$	16,803
	(1) Amount includes asset retirement costs of approximately $832.

5_OIL_AND_NATURAL_GAS_PROPERTI

5. OIL AND NATURAL GAS PROPERTIES	12 Months Ended
	Dec. 31, 2014
Extractive Industries [Abstract]
5. OIL AND NATURAL GAS PROPERTIES	The following table presents a summary of the Company’s oil and natural gas properties at December 31, 2014 and December 31, 2013:
	($ in thousands)	December 31,			December 31,
		2014			2013
	Oil and natural gas properties
	Proved-developed producing properties	$	96,691		$	72,208
	Proved-developed non-producing properties		2,880			1,384
	Proved-undeveloped properties		13,330			9,410
	Unproved properties		1,996			4,208
	Less: Accumulated depletion		(23,131	)		(13,044	)
	Total oil and natural gas properties, net of  accumulated depletion	$	91,766		$	74,166

6_ASSET_RETIREMENT_OBLIGATIONS

6. ASSET RETIREMENT OBLIGATIONS	12 Months Ended
	Dec. 31, 2014
Asset Retirement Obligation Disclosure [Abstract]
6. ASSET RETIREMENT OBLIGATIONS	The Company has recognized the fair value of its asset retirement obligations related to the future costs of plugging, abandonment, and remediation of oil and natural gas producing properties.  The present value of the estimated asset retirement obligations has been capitalized as part of the carrying amount of the related oil and natural gas properties.  The liability has been accreted to its present value as of the end of each period.  At December 31, 2014 and December 31, 2013, the Company evaluated 169 and 125 wells, respectively, and has determined a range of abandonment dates between January 2014 and September 20632061.  The following table represents a reconciliation of the asset retirement obligations for the year ended December 31, 2014 and December 31, 2013:
		Year Ended			Year Ended
		December 31,			December 31,
		2014			2013
	($ in thousands)
	Asset retirement obligations, beginning of period	$	2,437		$	2,272
	Additions to asset retirement obligation		859			43
	Liabilities settled during the period		0			(48	)
	Accretion of discount		320			160
	Revision of estimate		(10	)		10
	Asset retirement obligations, end of period	$	3,606		$	2,437
	The assert retirement liability is measured using primarily Level 3 inputs. The significant unobservable inputs to this fair value measurement include estimates of plugging costs, remediation costs, inflation rate and well life. The inputs are calculated based on historical data as well as current estimated costs.

7_GOING_PUBLIC_DELAY_FEE

7. GOING PUBLIC DELAY FEE	12 Months Ended
	Dec. 31, 2014
Going Public Delay Fee
7. GOING PUBLIC DELAY FEE	We entered a “Securities Purchase and Exchange Agreement” dated June 10, 2011, with Longview Marquis Master Fund, L.P., Summerview Marquis Fund, L.P., Longview Marquis Fund, L.P., LMIF Investments, LLC, SMF Investments, LLC, and Summerline Capital Partners, LLC (collectively “Summerline”).  The Agreement says if the Company, for any reason, does not go public on or before that date that is one hundred fifty days after the June 13, 2011 (the “Going Public Delay Date”), the Company shall pay to each applicable stockholder an aggregate amount equal to the product of (i) such stockholder’s allocation percentage multiplied by (ii) $60,715 (the “Going Public Delay Fee”) on the last business day of each calendar month, for each such calendar month following the Going Public Delay Date through and including the date of going public (the “Going Public Delay Period”). For any partial calendar months during the Going Public Delay Period, the Going Public Delay Fee shall be pro-rated appropriately. For the year ended December 31, 2013, the Company has incurred a delay fee of approximately $425,000 which is currently included in accrued liabilities on the accompanying condensed consolidated balance sheets.
	Effective August 6, 2013, the Company ceased to incur Going Public Delay Fees due to an effective Form 10 filing.

8_DERIVATIVES

8. DERIVATIVES	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
8. DERIVATIVES	We use derivatives to hedge our oil production.  Our current hedge position consists put options, of some which have deferred premiums paid at settlement. These contracts and any future hedging arrangements may expose us to risk of financial loss in certain circumstances, including instances where production is less than expected or oil prices increase.  In addition, these arrangements may limit the benefit to us of increases in the price of oil.  Accordingly, our earnings may fluctuate significantly as a result of changes in the fair value of our derivative instrument, which we utilize entirely to hedge our production and do not enter into for speculative purposes. We have not designated the derivative contracts as hedges for accounting purposes, and accordingly, we record the derivative contracts at fair value and recognize changes in fair value in earnings as they occur.
	At December 31, 2014, we had the following open crude oil derivative contracts:
					31-Dec-14
		Instrument	Commodity		Volume			Floor	Ceilings	Purchased Put Option	Fair Value
					(bbl / month)			Price	Price	Price	(in thousands)
	Jan.2015 – Oct. 2015	Put	Crude Oil			5,000				77.00 – 80.00	999
	Nov. 2015 – Dec. 2015	Put	Crude Oil			2,800				80	110
	Jan. 2015 – Dec. 2015	Put	Crude Oil			4,000				70	590
	Jan.2016 – March 2016	Put	Crude Oil			1,500				75	67
	The following tables identify the fair value amounts of derivative instruments included in the accompanying consolidated balance sheets as derivative contracts, categorized by primary underlying risk. Balances are presented on a gross basis, prior to the application of the impact of counterparty and collateral netting. The following tables also identify the net gain (loss) amounts included in the accompanying consolidated statements of operations as gain (loss) from derivative contracts.
	Fair Value of Derivative Financial Instruments
	(amounts in thousands)		December 31,				December 31,
			2014				2013
	Derivative financial instruments - Current asset		$	1,699			$	0
	Derivative financial instruments - Long-term assets			67				0
	Derivative financial instruments - Current liabilities			0				(63	)
	Derivative financial instruments - Long-term liabilities			0				(51	)
	Net derivative financial instruments		$	1,699			$	(114	)
	Effect of Derivative Financial Instruments
			December 31,
	(amounts in thousands)		2014				2013
	(Gain)/loss from derivative contracts		$	2,066			$	-

9_NOTES_PAYABLE

9. NOTES PAYABLE	12 Months Ended
	Dec. 31, 2014
Debt Disclosure [Abstract]
9. NOTES PAYABLE	On June 27, 2013, the Company entered into a credit agreement (“Credit Agreement”) with Independent Bank to borrow up to $100,000,000 at a current rate of 4.00% annum. The Credit Agreement was obtained to fund the development of the Company’s oil and natural gas properties and refinance the prior bank facility.  At December 31, 2014 and December 31, 2013, the Company had approximately $22,495,780 and $12,436,000, respectively, in borrowings outstanding under the Credit Agreement.
	The Credit Agreement provides for a borrowing base of $23,500,000 as of December 31, 2014, which is re-determined semi-annually and upon requested special redeterminations.  Additionally, the borrowing base may be adjusted at the financial institution’s discretion which is based in part upon external factors over which the Company has no control. If the re-determined borrowing base were to be less than outstanding borrowings under the Credit Agreement, the Company would be required to repay the deficit. The Company incurs a commitment fee of 0.5% on the unused portion of the credit facility or if less, the borrowing base. The Credit Agreement matures at June 1, 2016.
	Loans under the Credit Agreement bear interest at the greater of: (1) the prime rate, the annual rate of interest announced by the Wall Street Journal as its “prime rate”, or (2) the floor rate of 4.00%.
	The Credit Agreement is collateralized by the oil and natural gas properties and contains several restrictive covenants including, among others:  (1) a requirement to maintain a current ratio, of not less than 1.0 to 1.0; (2) a maximum permitted ratio of debt to adjusted EBITDAX of not more than 3.5 to 1.0; (3) a maximum permitted ratio of adjusted EBITDAX to interest expense of not more than 3.0 to 1.0; and (4) a prohibition against incurring debt, subject to permitted exceptions.
	On March 26, 2014, the Company entered into a term loan agreement with Independent Bank totaling $4,000,000 at a current rate of 6.75% annum.  The agreement was obtained to fund the development of the Company’s acquisition of oil and natural gas properties (see note 4).  The term loan had an outstanding balance of approximately $2,941,000 outstanding at December 31, 2014. The loan requires 18 equal monthly payments of approximately $194,000 starting on October 1, 2014 and maturing on March 1, 2016 and is subject to the same covenants as the Credit Agreement.
	The loan under the term agreement bears interest at the greater of: (1) the prime rate, the annual rate of interest announced by the Wall Street Journal as its “prime rate”, plus the applicable margin of 3.00% or (2) the floor rate of 6.75%.
	On April 15, 2015 the Company entered into the Fourth Amendment to the Credit Agreement with Independent Bank (“Amendment”). The agreement provides that the borrowing base is $21,750,000 as of the date of the Amendment that will be reduced by $250,000 per month before September 1, 2015 and $350,000 per month thereafter, unless re-determined after 150 days from the date of the Amendment. The Company is obligated to provide Independent Bank an engineering report acceptable to the Bank before September 1, 2015 showing proven and producing and proven undeveloped oil and gas reserves, discounted present value of future net income for the Company’s oil and gas properties as of September 1, 2015, projections of annual rate of production, gross income and net income relating to these reserves and take-or-pay, prepayment and gas balancing obligations.
	The Amendment also allows the assignment of an overriding royalty interest as stated in the related amendment to the Intercreditors’ Agreement between Independent Bank, the Company and SOSventures, LLC.
	The Company is obligated to commence drilling a well in the Crittendon Field within 45 days of the date of the Amendment and a second well in the Crittendon Field within 90 days of the date of the Amendment.
	The Amendment includes a suspension of Independent Bank’s rights to exercise its remedies prior to 150 days after the Amendment caused solely by the occurrence of a borrowing base deficiency. It also includes a suspension of Independent Bank’s obligation to extend loans, letters of credit or renewals or extensions of letters of credit agreement under the Credit Agreement for 150 days after the date of the Amendment.
	The Amendment further provides that the Company will be required execute and maintain crude oil hedges on a minimum of 80.0% of Projected Production on a rolling 20 months basis. The table below details the Borrower’s existing and required crude hedges through 2016.
	The Company is also obligated to repay its term loan at closing with both principal and interest, repay the note principal to reduce the note to no more than the borrowing base, including the repayment of interest, pay certain fees, deposit $5,000,000 into a special account and deliver a commitment letter from SOSventures to provide an additional $2,000,000 of availability under the Subordinated credit facility with SOSventures, LLC for drilling capital.

10_STOCK_BASED_COMPENSATION_AN

10. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS	12 Months Ended
	Dec. 31, 2014
Equity [Abstract]
10. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS
	On April 1, 2012, the Company entered into employment agreements (the “Employment Agreement”) which provided a restricted stock grant and a conditional performance award to key members of management.
	The restricted stock grant of 349,650 shares had a grant date fair value of $10.00 per share and vests in full upon the earlier of an initial public offering (“IPO”) which includes the sale of shares to the public, a business combination whereas 50% or more of the voting power is transferred to the new owners, or March 1, 2015.  During the twelve months ended December 31, 2014 and 2013, the Company incurred a stock-based compensation expense of approximately $1,474,000 and $1,199,000, respectively, related to the restricted stock grant, which is included in the accompanying condensed consolidated statements of operations in general and administrative expenses.  As of December 31, 2014 and December 31, 2013, there was approximately $299,700 and $1,498,500, respectively, of unrecognized stock-based compensation expense related to the non-vested restricted stock grant. At December 31, 2014 and December 31, 2013, this unrecognized stock-based compensation is expected to be expensed on a straight-line basis over 3 and 15 months. As of December 31, 2014 and as of December 31, 2013, there have been no forfeitures associated with the restricted stock grant.
	Additionally, the Employment Agreement provides for a conditional performance award where if an IPO occurs, the employee will receive: (1) a cash payment of 1% of the difference between the Company market capital and the book value at the time of the IPO, (2) common stock options to purchase 1.0% of the fully-diluted capital stock as of the IPO date and IPO price which will vest over a four year period and contain a cashless exercise, (3) common stock options to purchase 1.0% of the fully-diluted capital stock as of the 2nd anniversary of the IPO date at the closing price of the common stock on the 2nd anniversary date of the IPO and will vest six years after the grant and contain a cashless exercise.  As of the twelve months months ended December 31, 2014 and 2013, the conditional performance feature is not probable and as such, no compensation expense related to the conditional performance feature has been recognized.
	On August 30, 2014, the Company amended and restated the Employment Agreement which provided for additional stock options.
	The equity award of options to purchase 900,000 shares at the exercise price of $4.75 per share and vesting over three years from September 4, 2014 with a one-year cliff (in respect of 300,000 shares) and monthly vesting thereafter of 25,000 shares over the remaining two years. For the year ended, the Company incurred a stock-based compensation expense of approximately $275,000 related to stock option, which is included in the accompanying condensed consolidated statements of operations in general and administrative expenses.  As of December 31 2014, there was approximately $2,200,000 of unrecognized stock-based compensation related to the non-vested stock options.
	The assumptions used in the Black-Scholes Option Pricing Model for the stock options granted were as follows:
		2014
	Risk-free interest rate		1.87	%
	Expected volatility of common stock		92	%
	Dividend yield	$	0
	Expected life of options	5.72 years
	The following table summarizes information about stock option activity and related information for the year ended December 31, 2014:
		Number of Shares Underlying Options			Weighted Average Exercise Price per Share		Weighted Average Grant Date Fair Value per Share		Weighted Average Remaining Contractual Life (in Years)
	Outstanding at December 31, 2013		-		$	-	$	-		-
	Granted		900,000			4.75		2.75		10
	Exercised		-			-		-		-
	Forfeited		-			-		-		-
	Outstanding at December 31, 2014		900,000			4.75		2.75		10
	Exercisable at December 31, 2014		-			-		-		-

11_RELATED_PARTY_TRANSACTIONS

11. RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2014
Related Party Transactions [Abstract]
11. RELATED PARTY TRANSACTIONS	Related Party Credit Agreement
	On March 29, 2013, the Company entered a credit agreement with SOSventures, LLC providing for a term loan through February 16, 2016 in an amount up to $10,000,000 at a 17.00% interest rate through March 29, 2014 and 22.00% interest rate thereafter.  The loan under this agreement is secured by a second lien on the Company’s assets.  The Company may not incur further indebtedness beyond this loan and the Credit Agreement without the consent of SOS Ventures, until such time as the SOS Ventures loan is fully repaid.
	On May 30, 2014, the Company amended its credit agreement with SOSventures, LLC providing for a term loan through February 1, 2016 in an amount up to $20,000,000 at an 18.00% interest rate.  As of December 31, 2014, the Company has borrowed $10,000,000 under this agreement.
	The term loan is collateralized under a second lien by the oil and natural gas properties and contains several restrictive covenants including, among others:  (1) a requirement to maintain a current ratio, of not less than 1.0 to 1.0; (2) a maximum permitted ratio of debt to adjusted EBITDAX of not more than 4.0 to 1.0; (3) a maximum permitted ratio of adjusted EBITDAX to interest expense of not more than 3.0 to 1.0; and (4) a prohibition against incurring debt, subject to permitted exceptions.
	On April 15, 2015 the Company entered the Second Amendment to the First Amendment and Restated Credit Agreement and several other agreements which provided that SOSventures, LLC will provide an additional $3 million on its credit facility to be used to pay the outstanding balance of the Independent Bank term loan, pay on the Independent Bank credit facility and for operations. Additionally, SOSventures deposit $5 million into a controlled account at Independent Bank to be used to drill two wells in the Crittendon Field referenced in the Independent Bank Amendment. Further, SOSventures, LLC will receive interest on its credit facility and a 1% overriding royalty interest on the Company’s Crittendon Field properties effective upon the drilling of these two oil and gas wells until such time as the credit facility is repaid. Finally, SOSventures, LLC shall receive warrants to purchase 2,542,397 of the Company's common shares for $1.00 per share with a two-year term. If fully purchased 2,542,397 would equal 20% of our currently outstanding common stock.

12_LEGAL_PROCEEDINGS

12. LEGAL PROCEEDINGS	12 Months Ended
	Dec. 31, 2014
Legal Proceedings
12. LEGAL PROCEEDINGS	From time-to-time, the Company may become subject to proceedings, lawsuits and other claims in the ordinary course of business including proceedings related to environmental and other matters. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance.
	The Company is subject to various possible contingencies that arise primarily from interpretation of federal and state laws and regulations affecting the oil and natural gas industry. Such contingencies include differing interpretations as to the prices at which oil and natural gas sales may be made, the prices at which royalty owners may be paid for production from their leases, environmental issues and other matters. Although management believes that it has complied with the various laws and regulations, administrative rulings and interpretations thereof, adjustments could be required as new interpretations and regulations are issued. In addition, environmental matters are subject to regulation by various federal and state agencies.

13_STOCKHOLDERS_EQUITY

13. STOCKHOLDER'S EQUITY	12 Months Ended
	Dec. 31, 2014
Equity [Abstract]
13. STOCKHOLDER'S EQUITY	Conversion to C-Corporation
	On June 28, 2012, the Company converted from a Delaware limited liability company to a Delaware C-Corporation. The membership units outstanding as of June 28, 2012 were converted to common shares at a 1:1 ratio. The conversion to a C-Corporation has been retroactively applied throughout the consolidated financial statements.
	Prior to June 28, 2012, at the end of each fiscal year of the Company, the net profits or losses were allocated to the capital accounts of the members based on the members’ ownership percentage of the Company, which is determined by taking the number of common shares held by the stockholder and dividing by the total issued and outstanding common shares (“Sharing Percentage”).
	Preferred Shares
	The Company is authorized to issue up to 10,000,000 preferred shares, par value $0.001 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors.  No preferred shares were issued and outstanding as of December 31, 2014 and 2013.
	Common Shares
	The Company has a single class of common shares that have the same rights, preferences, limitations, and qualifications. The Company is authorized to issue up to 150,000,000 shares, par value $0.001 per share, in the aggregate and from time to time may increase the number of shares authorized.

14_INCOME_TAXES

14. INCOME TAXES	12 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
14. INCOME TAXES	For the years ended December 31, 2014 and 2013, the Company estimated that its current and deferred tax provision was as follows:
				2014	2013
	Current taxes
		Federal
		State		(15,465)	(26,502)
				(15,465)	(26,502)
	Deferred taxes
		Federal		1,449,296	(402,379)
		State		53,375	128,977
				1,502,671	(273,402)
			Total current and  deferred tax benefit/(expense)	1,487,206	(299,904)
	A reconciliation of income tax expense (benefit) computed by applying the U.S. federal statutory income tax rate and the reported effective tax rate on income for the years ended December 31, 2014 and 2013 are as follows:
	Income tax benefit calculated using the federal statutory income tax rate			1,444,432	423,609
	State income taxes, net of federal income taxes			37,910	102,475
	Permanent differences, rate changes and other			4,864	(825,988)
			Total income tax benefit (expense)	1,487,206	(299,904)
	Deferred income taxes arise from temporary differences in the recognition of certain items for income tax and financial reporting purposes. The approximate tax effects of significant temporary differences which comprise the deferred tax assets and liabilities at December 31, 2014 and 2013 are as follows:
	Deferred tax assets:
	Federal and state net operating loss carryforward			6,864,241	4,195,157
	Stock-based compensation			1,214,378	713,286
	Asset retirement obligations			1,225,887	828,467
	Derivatives				38,767
	Other			5,784	-
	Total deferred tax assets			9,310,290	5,775,677
	Deferred tax liabilities:
	Oil and gas properties and fixed assets			(22,749,563)	(21,321,587)
	Derivatives			(600,469)
	Total deferred tax liabilities			(23,350,032)	(21,321,587)
	Net deferred tax liability			(14,039,742)	(15,545,910)
	At December 31, 2014, the Company has net operating losses as follows:
			Amount			Expiration
	Net operating losses:
	Federal		$	19,819,471		Dec. 2032 to 2034
	State			3,175,043		Dec. 2032 to 2034

2_SUMMARY_OF_SIGNIFICANT_ACCOU1

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2014
Summary Of Significant Accounting Policies Policies
Basis of Presentation	The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).
	These consolidated financial statements were approved and available for issuance on March 31, 2015. Subsequent events have been evaluated through this date.
	Revision of prior period financial statements and out-of-period adjustments
	In our periodic report covering the three months ended September 30, 2014, we identified and corrected an immaterial tax provision error that originated in prior periods. We assessed the materiality of the errors in accordance with the SEC guidance on considering the effects of prior period misstatements based on an analysis of quantitative and qualitative factors. Based on this analysis, we determined that the errors were immaterial to each of the prior reporting periods affected and, therefore, amendments of reports previously filed with the SEC were not required. However, we have concluded that correcting the errors in our 2014 financial statements would materially overstated results for the year ending December 31, 2014. Accordingly, we have reflected the correction of these prior period errors in the periods in which they originated and revised our consolidated balance sheet and consolidated statement of equity for the year ended December 31, 2013, and consolidated statement of cash flows for the year ended December 31. 2013
	The effect of the immaterial correction on the condensed consolidated balance sheet as of December 31, 2013 are as follows (in thousands):
		As Reported			Correction			As Revised
	Deferred tax assets	$	39		$	(39	)	$	0
	Total current assets		7,825			(39	)		7,786
	Total assets	$	84,231		$	(39	)	$	84,192
	Deferred tax liabilities	$	15,914		$	(368	)	$	15,546
	Total liabilities		41,474			(368	)		41,106
	Accumulated deficit		(11,701	)		329			(11,372	)
	Total stockholders' equity		42,757			329			43,086
	Total liabilities and stockholders' equity	$	84,231		$	(39	)	$	84,192
	The effect of the corrections on the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2013 are as follows:
		As Reported			Correction			As Revised
	For the year ended December, 2013
	Loss before income taxes		(1,246	)		-			(1246	)
	Deferred income tax benefit (expense)		629			(329	)		300
	Net loss	$	(415	)	$	(329	)	$	(1,546	)
	The effect of the corrections on the Company’s condensed consolidated statements of cash flows for the year ended December 31, 2013 are as follows:
		As Reported			Correction			As Revised
	For the year ended December 31, 2013
	Cash flows from operating activities:
	Net income (loss)	$	(1,875	)	$	329		$	(1,546	)
	Deferred income taxes		603			(329	)		274
	Other		12,434			-			12,434
	Net cash provided by operating activities		11,162			-			11,162
	Net cash used in investing activities		(14,377	)		-			(14,377	)
	Net provided by financing activities		7,973			-			7,973
	Net increase in cash		4,758			-			4,758
	Cash, beginning of period		1,037			-			1,037
	Cash, end of period	$	5,794			-		$	5,794
Principles of Consolidation	The accompanying condensed consolidated financial statements include the accounts of Starboard and its wholly owned subsidiaries, ImPetro Resources, LLC (“ImPetro”) and ImPetro Operating (“Operating”) (Collectively the “Company”). All intercompany transactions and balances have been eliminated in consolidation.
Oil and Gas Natural Gas Properties	The Company uses the successful efforts method of accounting for oil and natural gas producing activities, as further defined under ASC 932, Extractive Activities - Oil and Natural Gas.  Under these provisions, costs to acquire mineral interests in oil and natural gas properties, to drill exploratory wells that find proved reserves, and to drill and equip development wells are capitalized.
	Exploratory drilling costs are capitalized when incurred pending the determination of whether a well has found proved reserves.  A determination of whether a well has found proved reserves is made shortly after drilling is completed.  The determination is based on a process that relies on interpretations of available geologic, geophysic and engineering data.  If a well is determined to be successful, the capitalized drilling costs will be reclassified as part of the cost of the well.  Capitalized costs of producing oil and natural gas interests are depleted on a unit-of-production basis at the field level.
	If an exploratory well is determined to be unsuccessful, the capitalized drilling costs will be charged to expense in the period the determination is made.  If a determination cannot be made as to whether the reserves that have been found can be classified as proved, the cost of drilling the exploratory well is not carried as an asset for more than one year following completion of drilling.  If, after that year has passed, a determination that proved reserves exist cannot be made, the well is assumed to be impaired and its costs are charged to expense.  Its cost can, however, continue to be capitalized if a sufficient quantity of reserves is discovered in the well to justify its completion as a producing well and the entity is making sufficient progress assessing the reserves and the economic and operating viability of the project.
	The carrying value of oil and gas properties is assessed for possible impairment on a field by field basis and on at least an annual basis, or as circumstances warrant, based on geological analysis or changes in proved reserve estimates. When impairment occurs, an adjustment is recorded as a reduction of the asset carrying value. For year December 31, 2014, the Company's impairment charge approximated $4,428,378. During the year-ended December 31, 2013 the Company did not incur an impairment charge.
Other Property and Equipment	Other property and equipment, which includes field equipment, vehicles, and office equipment, is stated at cost less accumulated depreciation and amortization.  Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets.  Vehicles and office equipment are generally depreciated over a useful life of five years and field equipment is generally depreciated over a useful life of twenty years.
Goodwill	Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in the acquisition of a business. Goodwill is not amortized; rather, it is tested for impairment annually and when events or changes in circumstances indicate that fair value of a reporting unit with goodwill has been reduced below carrying value. The impairment test requires allocating goodwill and other assets and liabilities to reporting units. However, the Company only has one reporting unit. To assess impairment, the Company has the option to qualitatively assess if it is more likely than not that the fair value of the reporting unit is less than the book value. Absent a qualitative assessment, or, through the qualitative assessment, if the Company determines it is more likely than not that the fair value of the reporting unit is less than the book value, a quantitative assessment is prepared to calculate the fair market value of the reporting unit. If it is determined that the fair value of the reporting unit is less than the book value, the recorded goodwill is impaired to its implied fair value with a charge to operating expenses. As of December 31, 2014 and 2013 and the years then ended there was no impairment of goodwill.
Deferred Offering Costs	The Company complies with the requirements of the Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin (SAB) Topic 5A ‘‘Expenses of Offering’’. Deferred offering costs consist principally of accounting, legal and other fees incurred through the consolidated balance sheet dates that are related to a proposed initial public offering and that will be charged to stockholders’ equity upon the receipt of the offering proceeds or charged to expense if the offering is not completed. For the years ended December 31, 2014 and 2013, the Company incurred deferred offering costs of approximately $86,231 and $151,000, respectively, relating to expenses connected with the proposed offering. The deferred offering costs are included in other assets in the consolidated balance sheets.  Additionally, these costs are reviewed periodically by management for indications of impairment. For the years ended December 31, 2014 and 2013, the Company did not have an impairment charge.
Asset Retirement Obligations	The Company follows the provisions of ASC 410-20, Asset Retirement Obligations. ASC 410-20 requires entities to record the fair value of obligations associated with the retirement of tangible long-lived assets in the period in which it is incurred.  When the liability is initially recorded, the entity capitalizes a cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depleted as part of the oil and natural gas property.  Upon settlement of the liability, an entity either settles the obligation for its recorded amount or incurs a gain or loss upon settlement.  The Company’s asset retirement obligations relate to the plugging, dismantlement, removal, site reclamation and similar activities of its oil and natural gas properties.
	Asset retirement obligations are estimated at the present value of expected future net cash flows and are discounted using the Company’s credit adjusted risk free rate. The Company uses unobservable inputs in the estimation of asset retirement obligations that include, but are not limited to, costs of labor, costs of materials, profits on costs of labor and materials, the effect of inflation on estimated costs, and the discount rate. Accordingly, asset retirement obligations are considered a Level 3 measurement under ASC 820.  Additionally, because of the subjectivity of assumptions and the relatively long lives of the Company’s wells, the costs to ultimately retire the Company’s wells may vary significantly from prior estimates.
Revenue Recognition and Natural Gas Imbalances	The Company utilizes the accrual method of accounting for natural gas and crude oil revenues, whereby revenues are recognized based on the Company’s net revenue interest in the wells upon delivery to third parties.  The Company will also enter into physical contract sale agreements through its normal operations.
	Gas imbalances are accounted for using the sales method.  Under this method, revenues are recognized based on actual volumes of oil and gas sold to purchasers.  However, the Company has no history of significant gas imbalances.
Cash	The Company considers all highly-liquid debt instruments with original maturities of three months or less to be cash equivalents. As of December 31, 2014 and 2013, the Company did not hold any cash equivalents.
	The Company maintains its cash balances in financial institutions which are insured by the Federal Deposit Insurance Corporation (“FDIC”).   From time to time, the Company will maintain cash balances in a financial institution that may exceed the FDIC coverage of $250,000. The Company has not experienced any losses in such accounts and believes it is not subject to any significant credit risk on cash.
Trade Receivable and Joint Interest Receivable	Trade receivable is comprised of accrued natural gas and crude oil sales and joint interest receivable is comprised of amounts owed to the Company from joint interest owners for their proportionate share of expenses.  Generally, operators of natural gas and crude oil properties have the right to offset joint interest receivables with revenue payables.  Accordingly, any joint interest owner that has a joint interest receivable and joint interest revenue payable as of December 31, 2014 and 2013 are shown at net in the accompanying consolidated balance sheets.
	The Company performs ongoing credit evaluations of its customers’ and extends credit to virtually all of its customers. Credit losses to date have not been significant and have been within management’s expectations.  In the event of complete non-performance by the Company’s customers and joint interest owners, the maximum exposure to the Company is the outstanding trade and joint interest receivable balance at the date of non-performance. For the years ended December 31, 2014 and 2013, the Company had no bad debt expense.
Derivative Activities	The Company utilized oil and natural gas derivative contracts to mitigate its exposure to commodity price risk associated with its future oil and natural gas production. These derivative contracts have historically consisted of options, in the form of price floors or collars. The Company’s derivative financial instruments are recorded on the consolidated balance sheets as either an asset or a liability measured at fair value. The Company does not apply hedge accounting to its oil and natural gas derivative contracts and accordingly the changes in the fair value of these instruments are recognized in the statement of operations in the period of change.
	The Company’s derivative instruments are issued to manage the price risk attributable to our expected natural gas and oil production. While there is risk that the financial benefit of rising natural gas and oil prices may not be captured, Company management believes the benefits of stable and predictable cash flow are more important. Every unsettled derivative instrument is recorded on the accompanying consolidated balance sheets as either an asset or a liability measured at its fair value. Changes in a derivative’s fair value are recognized in earnings unless specific hedge accounting criteria are met. Cash flows from natural gas and oil derivative contract settlements are reflected in operating activities in the accompanying consolidated statements of cash flows.
	Realized and unrealized gains and losses on derivatives are accounted for using the mark-to-market accounting method. The Company recognizes all unrealized and realized gains and losses related to these contracts in each period in gain (loss) from derivative contracts in the accompanying consolidated statements of operations.
Lease Operating Expenses	Lease operating expenses represent, pumpers’ salaries, saltwater disposal, ad valorem taxes, repairs and maintenance, expensed workovers and other operating expenses.  Lease operating expenses are expensed as incurred.
Sales-Based Taxes	The Company incurs severance tax on the sale of its production which is generated in Texas and Oklahoma.  These taxes are reported on a gross basis and are included in production taxes within the accompanying consolidated statements of operations.
Stock-Based Compensation and Equity Incentive Plans	The Company accounts for stock-based compensation in accordance with ASC 718, Compensation – Stock Compensation. The standard requires the measurement and recognition of compensation expense in the Company’s consolidated statements of operations for all share-based payment awards made to the Company’s employees, directors and consultants including employee stock options, non-vested equity stock and equity stock units, and employee stock purchase grants. Stock-based compensation expense is measured at the grant date, based on the estimated fair value of the award, reduced by an estimate of the annualized rate of expected forfeitures, and is recognized as an expense over the employees’ expected requisite service period, generally using the straight-line method. In addition, ASC 718 requires the benefits of tax deductions in excess of recognized compensation expense to be reported as a financing cash flow, rather than as an operating cash flow as prescribed under previous accounting rules.
	The Company’s forfeiture rate represents the historical rate at which the Company’s stock-based awards were surrendered prior to vesting. ASC 718 requires forfeitures to be estimated at the time of grant and revised on a cumulative basis, if necessary, in subsequent periods if actual forfeitures differ from those estimates.
	During the years ended December 31, 2014 and 2013, the Company incurred a stock based compensation expense of approximately $1,474,000 and $1,199,000, respectively, and is included in the accompanying consolidated statements of operations in general and administrative expenses.
Income Taxes	Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amount expected to be realized.
	The Company is required to determine whether its tax positions are more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. De-recognition of a tax benefit previously recognized results in the Company recording a tax liability that increases expense in that period. Based on its analysis, the Company has determined that it has not incurred any liability for unrecognized tax benefits as of December 31, 2014. The Company’s conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulations and interpretations thereof.
	The Company recognizes interest and penalties related to unrecognized tax benefits in interest expense and other expenses, respectively. No interest expense or penalties have been recognized as of December 31, 2014.
Net Income (Loss) Per Common Share	Basic net income (loss) per common share is computed by dividing the net income (loss) attributable to stockholders by the weighted average number of common shares outstanding during the period.  Diluted net income (loss) per common share is calculated in the same manner, but also considers the impact to common shares for the potential dilution from stock options, non-vested share appreciation rights and non-vested restricted shares. For the year ended December 31, 2014, there were 1,249,650 potentially dilutive non-vested restricted shares and stock options. For the year ended December 31, 2013, there were 349,650 potentially dilutive non-vested restricted shares. The potentially dilutive shares, for the December 31, 2014 and 2013, are considered antidilutive since the Company is in a net loss position and thus result in the basic net income (loss) per common share equaling the diluted net income (loss) per common share.
Use of Estimates	The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
	The Company’s estimates of oil and natural gas reserves are, by necessity, projections based on geologic and engineering data, and there are uncertainties inherent in the interpretation of such data as well as the projection of future rates of production and the timing of development expenditures. Reserve engineering is a subjective process of estimating underground accumulations of natural gas and oil that are difficult to measure. The accuracy of any reserve estimate is a function of the quality of available data, engineering and geological interpretation and judgment. Estimates of economically recoverable natural gas and oil reserves and future net cash flows necessarily depend upon a number of variable factors and assumptions, such as historical production from the area compared with production from other producing areas, the assumed effect of regulations by governmental agencies, and assumptions governing future natural gas and oil prices, future operating costs, severance taxes, development costs and workover costs, all of which may in fact vary considerably from actual results. The future drilling costs associated with reserves assigned to proved undeveloped locations may ultimately increase to the extent that these reserves are later determined to be uneconomic. For these reasons, estimates of the economically recoverable quantities of expected natural gas and oil attributable to any particular group of properties, classifications of such reserves based on risk of recovery, and estimates of the future net cash flows may vary substantially. Any significant variance in the assumptions could materially affect the estimated quantity of the reserves, which could affect the carrying value of the Company’s oil and natural gas properties and/or the rate of depletion related to the oil and natural gas properties.

2_SUMMARY_OF_SIGNIFICANT_ACCOU2

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2014
Summary Of Significant Accounting Policies Tables
Schedule of effect of immaterial correction on condensed consolidated balance sheet		As Reported			Correction			As Revised
	Deferred tax assets	$	39		$	(39	)	$	0
	Total current assets		7,825			(39	)		7,786
	Total assets	$	84,231		$	(39	)	$	84,192
	Deferred tax liabilities	$	15,914		$	(368	)	$	15,546
	Total liabilities		41,474			(368	)		41,106
	Accumulated deficit		(11,701	)		329			(11,372	)
	Total stockholders' equity		42,757			329			43,086
	Total liabilities and stockholders' equity	$	84,231		$	(39	)	$	84,192
Schedule of effect of corrections on Company's condensed consolidated statements of operations		As Reported			Correction			As Revised
	For the year ended December, 2013
	Loss before income taxes		(1,246	)		-			(1246	)
	Deferred income tax benefit  (expense)		629			(329	)		300
	Net loss	$	(1,875	)	$	(329	)	$	(1,546	)
Schedule of effect of corrections on Company's condensed consolidated statements of cash flows		As Reported			Correction			As Revised
	For the year ended December 31, 2013
	Cash flows from operating activities:
	Net income (loss)	$	(1,875	)	$	329		$	(1,546	)
	Deferred income taxes		603			(329	)		274
	Other		12,434			-			12,434
	Net cash provided by operating activities		11,162			-			11,162
	Net cash used in investing activities		(14,377	)		-			(14,377	)
	Net provided by financing activities		7,973			-			7,973
	Net increase in cash		4,758			-			4,758
	Cash, beginning of period		1,037			-			1,037
	Cash, end of period	$	5,794			-		$	5,794

3_FAIR_VALUE_MEASUREMENTS_Tabl

3. FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2014
Fair Value Measurements Tables
Schedule of fair value measurements	The following tables present information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2014 and December 31, 2013:
								Balance as of
								December 31,
	($ in thousands)	Level 1		Level 2		Level 3		2014
	Assets (at fair value):
	Derivative assets (oil put options)	$	0	$	1,766	$	0	$	1,766
								Balance as of
								December 31,
	($ in thousands)	Level 1		Level 2		Level 3		2013
	Liabilities (at fair value):
	Derivative liabilities (oil collar and put options)	$	0	$	114	$	0	$	114

4_PROPERTY_ACQUISITION_Tables

4. PROPERTY ACQUISITION (Tables)	12 Months Ended
	Dec. 31, 2014
Property Acquisition Tables
Pro Forma Condensed Combined Statement of Operations	in thousands, except share data	Year Ended December 31,			Year Ended December 31,
		2014			2013
	Oil, natural gas, and related product sales	$	20,855		$	17,512
	Net loss	$	2,442		$	92
	Net loss per basic and diluted common share	$	0.2		$	0
	Weighted average basic and diluted common shares outstanding		12,362,336			12,362,336
Purchase price and preliminary estimated values of assets acquired and liabilities assumed	Fair value of assets acquired and liabilities assumed (in thousands)
	Proved oil and natural gas properties (1)	$	17,662
	Revenue payable		(27	)
	Asset retirement obligations		(832	)
	Total fair value of assets acquired and liabilities assumed, net	$	16,803
	Cash consideration transferred	$	16,803
	(1) Amount includes asset retirement costs of approximately $832.

5_OIL_AND_NATURAL_GAS_PROPERTI1

5. OIL AND NATURAL GAS PROPERTIES (Tables)	12 Months Ended
	Dec. 31, 2014
Oil And Natural Gas Properties Tables
Schedule of oil and gas properties	($ in thousands)	December 31,			December 31,
		2014			2013
	Oil and natural gas properties
	Proved-developed producing properties	$	96,691		$	72,208
	Proved-developed non-producing properties		2,880			1,384
	Proved-undeveloped properties		13,330			9,410
	Unproved properties		1,996			4,208
	Less: Accumulated depletion		(23,131	)		(13,044	)
	Total oil and natural gas properties, net of  accumulated depletion	$	91,766		$	74,166

6_ASSET_RETIREMENT_OBLIGATIONS1

6. ASSET RETIREMENT OBLIGATIONS (Tables)	12 Months Ended
	Dec. 31, 2014
Asset Retirement Obligations Tables
Schedule of Asset Retirement Obligations
		Year Ended			Year Ended
		December 31,			December 31,
		2014			2013
	($ in thousands)
	Asset retirement obligations, beginning of period	$	2,437		$	2,272
	Additions to asset retirement obligation		859			43
	Liabilities settled during the period		0			(48	)
	Accretion of discount		320			160
	Revision of estimate		(10	)		10
	Asset retirement obligations, end of period	$	3,606		$	2,437

8_DERIVATIVES_Tables

8. DERIVATIVES (Tables)	12 Months Ended
	Dec. 31, 2014
Derivatives Tables
Oil derivative contracts	At December 31, 2014, we had the following open crude oil derivative contracts:
					31-Dec-14
		Instrument	Commodity		Volume			Floor	Ceilings	Purchased Put Option	Fair Value
					(bbl / month)			Price	Price	Price	(in thousands)
	Jan.2015 – Oct. 2015	Put	Crude Oil			5,000				77.00 – 80.00	999
	Nov. 2015 – Dec. 2015	Put	Crude Oil			2,800				80	110
	Jan. 2015 – Dec. 2015	Put	Crude Oil			4,000				70	590
	Jan.2016 – March 2016	Put	Crude Oil			1,500				75	67
	Fair Value of Derivative Financial Instruments
	(amounts in thousands)		December 31,				December 31,
			2014				2013
	Derivative financial instruments - Current asset		$	1,699			$	0
	Derivative financial instruments - Long-term assets			67				0
	Derivative financial instruments - Current liabilities			0				(63	)
	Derivative financial instruments - Long-term liabilities			0				(51	)
	Net derivative financial instruments		$	1,699			$	(114	)
Effect of Derivative Financial Instruments			December 31,
	(amounts in thousands)		2014				2013
	(Gain)/loss from derivative contracts		$	2,066			$	-

10_STOCK_BASED_COMPENSATION_AN1

10. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Tables)	12 Months Ended
	Dec. 31, 2014
Stock Based Compensation And Conditional Performance Awards Tables
Black-Scholes Option Pricing Model for the stock options		2014
	Risk-free interest rate		1.87	%
	Expected volatility of common stock		92	%
	Dividend yield	$	0
	Expected life of options	5.72 years
Stock option activity and related information		Number of Shares Underlying Options			Weighted Average Exercise Price per Share		Weighted Average Grant Date Fair Value per Share		Weighted Average Remaining Contractual Life (in Years)
	Outstanding at December 31, 2013		-		$	-	$	-		-
	Granted		900,000			4.75		2.75		10
	Exercised		-			-		-		-
	Forfeited		-			-		-		-
	Outstanding at December 31, 2014		900,000			4.75		2.75		10
	Exercisable at December 31, 2014		-			-		-		-

14_INCOME_TAXES_Tables

14. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)				2014	2013
	Current taxes
		Federal
		State		(15,465)	(26,502)
				(15,465)	(26,502)
	Deferred taxes
		Federal		1,449,296	(402,379)
		State		53,375	128,977
				1,502,671	(273,402)
			Total current and  deferred tax benefit/(expense)	1,487,206	(299,904)
Schedule of Effective Income Tax Rate Reconciliation	Income tax benefit calculated using the federal statutory income tax rate			1,444,432	423,609
	State income taxes, net of federal income taxes			37,910	102,475
	Permanent differences, rate changes and other			4,864	(825,988)
			Total income tax benefit (expense)	1,487,206	(299,904)
Schedule of Deferred Tax Assets and Liabilities	Deferred tax assets:
	Federal and state net operating loss carryforward			6,864,241	4,195,157
	Stock-based compensation			1,214,378	713,286
	Asset retirement obligations			1,225,887	828,467
	Derivatives				38,767
	Other			5,784	-
	Total deferred tax assets			9,310,290	5,775,677
	Deferred tax liabilities:
	Oil and gas properties and fixed assets			(22,749,563)	(21,321,587)
	Derivatives			(600,469)
	Total deferred tax liabilities			(23,350,032)	(21,321,587)
	Net deferred tax liability			(14,039,742)	(15,545,910)
Summary of Operating Loss Carryforwards			Amount			Expiration
	Net operating losses:
	Federal		$	19,819,471		Dec. 2032 to 2034
	State			3,175,043		Dec. 2032 to 2034

2_SUMMARY_OF_SIGNIFICANT_ACCOU3

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Total current assets	$7,925,457	$7,786,414
Total assets	101,803,266	84,192,421
Deferred tax liabilities	-23,350,032	-21,321,587
Total liabilities	50,558,604	30,199,284
Accumulated deficit	-14,133,294	-11,372,374
Total stockholders' equity	41,798,973	43,086,093	43,433,106
Total liabilities and stockholders' equity	101,803,226	84,192,421
As Reported [Member]
Deferred tax assets		39,000
Total current assets		7,825,000
Total assets		84,231,000
Deferred tax liabilities		15,914,000
Total liabilities		41,474,000
Accumulated deficit		-11,701,000
Total stockholders' equity		42,757,000
Total liabilities and stockholders' equity		84,231,000
Correction [Member]
Deferred tax assets		-39,000
Total current assets		-39,000
Total assets		-39,000
Deferred tax liabilities		-368,000
Total liabilities		-368,000
Accumulated deficit		329,000
Total stockholders' equity		329,000
Total liabilities and stockholders' equity		-39,000
As Revised [Member]
Deferred tax assets		0
Total current assets		7,786,000
Total assets		84,192,000
Deferred tax liabilities		15,546,000
Total liabilities		41,106,000
Accumulated deficit		-11,372,000
Total stockholders' equity		43,086,000
Total liabilities and stockholders' equity		$84,192,000

2_SUMMARY_OF_SIGNIFICANT_ACCOU4

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Loss before income taxes	($4,248,126)	($1,245,909)
Deferred income tax benefit (expense)	1,502,671	-273,402
Net loss	-2,760,920	-1,545,813
As Reported [Member]
Loss before income taxes		-1,246,000
Deferred income tax benefit (expense)		629,000
Net loss		-1,875,000
Correction [Member]
Loss before income taxes
Deferred income tax benefit (expense)		-329,000
Net loss		-329,000
As Revised [Member]
Loss before income taxes		-1,246,000
Deferred income tax benefit (expense)		300,000
Net loss		($1,546,000)

2_SUMMARY_OF_SIGNIFICANT_ACCOU5

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income (loss)	($2,760,920)	($1,545,813)
Deferred income taxes	-1,506,168	-273,402
Net cash provided by operating activities	6,560,221	11,161,743
As Reported [Member]
Cash flows from operating activities:
Net income (loss)		-1,875,000
Deferred income taxes		603,000
Other		12,434,000
Net cash provided by operating activities		11,162,000
Net cash used in investing activities		-14,377,000
Net provided by financing activities		7,973,000
Net increase in cash		4,758,000
Cash, beginning of period		1,037,000
Cash, end of period		5,794,000
Correction [Member]
Cash flows from operating activities:
Net income (loss)		329,000
Deferred income taxes		-329,000
Other
Net cash provided by operating activities
Net cash used in investing activities
Net provided by financing activities
Net increase in cash
Cash, beginning of period
Cash, end of period
As Revised [Member]
Cash flows from operating activities:
Net income (loss)		-1,546,000
Deferred income taxes		274,000
Other		12,434,000
Net cash provided by operating activities		11,162,000
Net cash used in investing activities		-14,377,000
Net provided by financing activities		7,973,000
Net increase in cash		4,758,000
Cash, beginning of period		1,037,000
Cash, end of period		$5,794,000

2_SUMMARY_OF_SIGNIFICANT_ACCOU6

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Deferred offering costs	$86,231	$150,738
Stock based compensation expense	$1,474,000	$1,199,000
Potentially dilutive non-vested restricted shares	1,249,650	349,650

3_FAIR_VALUE_MEASUREMENTS_Deta

3. FAIR VALUE MEASUREMENTS (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Assets (at fair value):
Derivative assets (oil put options)	$1,766,000
Liabilities (at fair value):
Derivative liabilities (oil collar and put options)		114,000
Level 1
Assets (at fair value):
Derivative assets (oil put options)	0
Liabilities (at fair value):
Derivative liabilities (oil collar and put options)		0
Level 2
Assets (at fair value):
Derivative assets (oil put options)	1,766,000
Liabilities (at fair value):
Derivative liabilities (oil collar and put options)		114,000
Level 3
Assets (at fair value):
Derivative assets (oil put options)	0
Liabilities (at fair value):
Derivative liabilities (oil collar and put options)		$0

4_PROPERTY_ACQUISITION_Details

4. PROPERTY ACQUISITION (Details) (Pro Forma [Member], USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Pro Forma [Member]
Oil, natural gas, and related product sales	$20,855,000	$17,512,000
Net loss	$2,442,000	$92,000
Net loss per basic and diluted common share	$0.20	$0
Weighted average basic common shares outstanding	12,362,336	12,362,336

4_PROPERTY_ACQUISITION_Details1

4. PROPERTY ACQUISITION (Details 1) (USD $)	Dec. 31, 2014
Fair value of assets acquired and liabilities assumed
Proved oil and natural gas properties (1)	$17,662,000	[1]
Revenue payable	-27,000
Asset retirement obligations	-832,000
Total fair value of assets acquired and liabilities assumed, net	16,803,000
Cash consideration transferred	$16,803,000
[1]	Amount includes asset retirement costs of approximately $832.

5_OIL_AND_NATURAL_GAS_PROPERTI2

5. OIL AND NATURAL GAS PROPERTIES (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Oil and natural gas properties
Proved-developed producing properties	$96,691,000	$72,208,000
Proved-developed non producing properties	2,880,000	1,384,000
Proved-undeveloped properties	13,330,000	9,410,000
Unproved properties	1,996,000	4,208,000
Less: Accumulated depletion	-23,131,000	-13,044,000
Total oil and natural gas properties, net of accumulated depletion	$91,766,000	$74,166,000

6_ASSET_RETIREMENT_OBLIGATIONS2

6. ASSET RETIREMENT OBLIGATIONS (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Asset Retirement Obligations Details
Asset retirement obligations, beginning of period	$2,437,000	$2,272,000
Additions to asset retirement obligation	859,000	43,000
Liabilities settled during the period	0	-48,000
Accretion of discount	320,000	160,000
Revision of estimate	-10,000	10,000
Asset retirement obligations, end of period	$3,606,000	$2,437,000

8_DERIVATIVES_Details

8. DERIVATIVES (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Instrument 1
Derivative	Instrument: Put; Commodity: Crude Oil; Volume (bbl/month): 5,000; Put Option Price: 77.00-80.00
Fair value	$999,000
Instrument 2
Derivative	Instrument: Put; Commodity: Crude Oil; Volume (bbl/month): 2,800; Put Option Price: 80.00
Fair value	110,000
Instrument 3
Derivative	Instrument: Put; Commodity: Crude Oil; Volume (bbl/month): 4,000; Put Option Price: 70.00
Fair value	590,000
Instrument 4
Derivative	Instrument: Put; Commodity: Crude Oil; Volume (bbl/month): 1,500; Put Option Price: 75.00
Fair value	$67,000

8_DERIVATIVES_Details_1

8. DERIVATIVES (Details 1) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Deriviatives - Fair Value Details
Derivative financial instruments - Current asset	$1,699,156
Derivative financial instruments - Long-term assets	66,930
Derivative financial instruments - Current liabilities		62,834
Derivative financial instruments - Long-term liabilities		51,187
Net derivative financial instruments	$1,699,000	($114,000)

8_DERIVATIVES_Details_2

8. DERIVATIVES (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Derivatives - Effect Details
(Gain)/loss from derivative contracts	$2,066,000

9_NOTES_PAYABLE_Details_Narrat

9. NOTES PAYABLE (Details Narrative) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Independent Bank 2
Borrowings outstanding	$2,941,000
Interest rate	6.75%
Independent Bank
Borrowings outstanding	22,496,000	12,436,000
Borrowing base	$23,500,000
Interest rate	4.00%

10_STOCK_BASED_COMPENSATION_AN2

10. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details)	12 Months Ended
	Dec. 31, 2014
Stock Based Compensation And Conditional Performance Awards Details 1
Risk-free interest rate	1.87%
Expected volatility of common stock	92.00%
Dividend yield	0.00%
Expected life of options	5 years 8 months 19 days

10_STOCK_BASED_COMPENSATION_AN3

10. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2014
Stock Based Compensation And Conditional Performance Awards Details
Number of options, Outstanding Beginning	0
Number of options, Granted	900,000
Number of options, Exercised	0
Number of options, Canceled	0
Number of options, Outstanding Ending	900,000
Number of options, Exercisable Ending	0
Weighted Average Exercise Price per Share, Beginning	$0
Weighted Average Exercise Price per Share, Granted	$4.75
Weighted Average Exercise Price per Share, Exercised	$0
Weighted Average Exercise Price per Share, Canceled	$0
Weighted Average Exercise Price per Share, Ending	$4.75
Weighted Average Exercise Price Exercisable Ending	$0
Weighted Average Grant Date Fair Value, Beginning	$0
Weighted Average Grant Date Fair Value, Granted	$2.75
Weighted Average Grant Date Fair Value, Exercised	$0
Weighted Average Grant Date Fair Value, Canceled	$0
Weighted Average Grant Date Fair Value, Ending	$2.75
Weighted Average Remaining Contractual Life (in Years), Granted	10 years
Weighted Average Remaining Contractual Life (in Years), Outstanding	10 years

10_STOCK_BASED_COMPENSATION_AN4

10. STOCK BASED COMPENSATION AND CONDITIONAL PERFORMANCE AWARDS (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Stock Based Compensation And Conditional Performance Awards Details Narrative
Stock-based compensation expense	$1,473,800	$1,198,800
Unrecognized stock-based compensation expense related to the non-vested restricted stock grant	299,700	1,498,500
Unrecognized stock-based compensation expense related to the non-vested restricted stock grant, period	3 months	15 months
Stock-based compensation expense related to stock option	275,000
Unrecognized stock-based compensation related to the non-vested stock options	$2,200,000

11_RELATED_PARTY_TRANSACTIONS_

11. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	Dec. 31, 2014
Related Party Transactions Details Narrative
Borrowing under term plan with SOSventures, LLC	$10,000,000

14_INCOME_TAXES_Details

14. INCOME TAXES (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Current taxes:
Federal
State	-15,465	-26,502
Current Income Tax Expense (Benefit)	-15,465	-26,502
Deferred taxes:
Federal	1,449,296	-402,379
State	53,375	128,977
Deferred Income Tax Expense (Benefit)	-1,506,168	-273,402
Total current and deferred taxes	$1,487,206	($299,904)

14_INCOME_TAXES_Details_1

14. INCOME TAXES (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Income tax provision calculated using the federal statutory income tax rate (1)	$1,444,432	$423,609
State income taxes, net of federal income taxes (1)	37,910	102,475
Permanent differences, rate changes and other	4,864	-825,988
Total income tax expense	$1,487,206	($299,904)

14_INCOME_TAXES_Details_2

14. INCOME TAXES (Details 2) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Deferred tax assets
Federal and state net operating loss carryforwards	$6,864,241	$4,195,157
Stock-based compensation	1,214,378	713,286
Asset retirement obligations	1,225,887	828,467
Derivatives		38,767
Other	5,784
Total deferred tax assets	9,310,290	5,775,677
Deferred tax liabilities:
Oil and natural gas properties and other equipment	-22,749,563	-21,321,587
Derivatives	-600,469
Total deferred tax liabilities	-23,350,032	-21,321,587
Total net deferred tax liability	($14,039,742)	($15,545,910)

14_INCOME_TAXES_Details_3

14. INCOME TAXES (Details 3) (USD $)	12 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Federal net operating losses	$19,819,471
State net operating losses	$3,175,043
Net operating losses, Expiration	Dec. 2032 to 2034