PetroShare (PRHRQ) Inactive 10-K31 Mar 172016 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2016	Mar. 30, 2017	Jun. 30, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	PetroShare Corp.
Entity Central Index Key	1,568,079
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
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			$ 32,742,287
Entity Common Stock, Shares Outstanding		21,964,282
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash	$ 2,449,412	$ 3,011,291
Accounts receivable - joint interest billing	240,450	384,618
Accounts receivable-joint interest billing-related party	286,226
Accounts receivable - crude oil, natural gas and NGL sales	179,236
Accounts receivable - other	27,876
Prepaid expenses and other assets	1,178,081	29,119
Total current assets	4,361,281	3,425,028
Crude oil and natural gas properties-using successful efforts method:
Proved crude oil and natural gas properties	8,132,881	724,058
Unproved crude oil and natural gas properties	4,092,550	715,594
Wells in progress	2,168,092	40,505
Less: accumulated depletion and depreciation	(783,320)	(724,058)
Crude oil and natural gas properties, net	13,610,203	756,099
Property, plant and equipment, net	39,542	1,828
Other assets	15,758	3,851
TOTAL ASSETS	18,026,784	4,186,806
Current liabilities:
Accounts payable and accrued liabilities	3,009,106	312,590
Working interest and royalty owners distributions payable	144,526	949
Drilling advances - related party	234,452
Supplemental line of credit, net	7,088,698
Total current liabilities	10,476,782	313,539
Long term liabilities
Line of credit	5,000,000	1,062,185
Convertible notes payable, net	814,989
Other long term liabilities	23,128
Asset retirement obligation	945,419	34,776
Total liabilities	17,260,318	1,410,500
Shareholders' equity:
Preferred stock-$.01 par value: 10,000,000 shares authorized, none issued or outstanding
Common stock, $.001 par value, 100,000,000 shares authorized, 21,964,282 and 21,633,191 shares issued and outstanding, respectively	21,964	21,633
Additional paid in capital	10,593,324	8,124,443
Accumulated deficit	(9,848,822)	(5,369,770)
Total Shareholders' Equity	766,466	2,776,306
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 18,026,784	$ 4,186,806

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Condensed Balance Sheets
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock shares issued	0	0
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized	100,000,000	100,000,000
Common stock shares issued	21,964,282	21,633,191
Common stock shares outstanding	21,964,282	21,633,191

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
Statements of Operations - USD ($)	Dec. 31, 2016	Dec. 31, 2015
REVENUE:
Crude oil sales	$ 239,810	$ 1,328
Natural gas sales	68,304
NGL sales	25,002
Total revenue	333,116	1,328
Costs and Expenses
Lease operating expense	167,988	31,863
Production taxes, gathering and marketing	38,634	46
Exploration costs	19,259	10,407
Depreciation, depletion, amortization, and accretion	95,516	13,921
Plugging expense	31,122
Loss on impairment of crude oil and natural gas properties	116,303	154,776
General and administrative expense	4,022,969	1,265,134
Total costs and expenses	4,491,791	1,476,147
Operating (loss)	(4,158,675)	(1,474,819)
OTHER INCOME (EXPENSE):
Interest income	573	46
Interest expense	(320,950)	(48,602)
Total other (expense)	(320,377)	(48,556)
Net (loss)	$ (4,479,052)	$ (1,523,375)
Net (loss) per share:
Basic and diluted (in dollars per share)	$ (0.21)	$ (0.09)
Weighted average number of shares outstanding:
Basic and diluted (in shares)	21,828,853	17,738,035

Statements of Changes in Shareh

Statements of Changes in Shareholders' Equity - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Earnings/(Deficit)	Total
Beginning Balance, Shares at Dec. 31, 2014	17,008,191
Beginning Balance, Amount at Dec. 31, 2014	$ 17,008	$ 4,103,862	$ (3,846,395)	$ 274,475
Issuance of common stock for cash at $1.00 per share, Shares	365,000
Issuance of common stock for cash at $1.00 per share, Amount	$ 365	364,635		365,000
Issuance of common stock for cash at $0.90 per share, net of offering costs, Shares	4,260,000
Issuance of common stock for cash at $0.90 per share, net of offering costs, Amount	$ 4,260	3,464,741		3,469,001
Share-based compensation		191,205		191,205
Net (loss)			(1,523,375)	(1,523,375)
Ending Balance Shares at Dec. 31, 2015	21,633,191
Ending Balance Amount at Dec. 31, 2015	$ 21,633	8,124,443	(5,369,770)	2,776,306
Issuance of common stock for cash at $1.00 per share, Shares	95,000
Issuance of common stock for cash at $1.00 per share, Amount	$ 95	94,905		95,000
Issuance of common stock in connection with consulting agreements, Shares	141,666
Issuance of common stock in connection with consulting agreements, Amount	$ 142	173,774		173,916
Issuance of common stock for services, Shares	50,000
Issuance of common stock for services, Amount	$ 50	50,455		50,505
Issuance of common stock for lease acquisition, Shares	14,425
Issuance of common stock for lease acquisition, Amount	$ 14	26,672		26,686
Issuance of common stock for property acquisition, Shares	30,000
Issuance of common stock for property acquisition, Amount	$ 30	56,670		56,700
Share-based compensation		1,140,967		1,140,967
Common stock warrants issued in connection with private placement		174,475		174,475
Beneficial conversion feature on convertible notes		750,963		750,963
Net (loss)			(4,479,052)	(4,479,052)
Ending Balance Shares at Dec. 31, 2016	21,964,282
Ending Balance Amount at Dec. 31, 2016	$ 21,964	$ 10,593,324	$ (9,848,822)	$ 766,466

Statements of Changes in Share6

Statements of Changes in Shareholders' Equity ( Parenthetical ) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Statement of Stockholders' Equity [Abstract]
Issuance of common stock for cash price per share net of offering costs		$ 0.90
Issuance of common stock for cash price per share	$ 1	$ 1

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
Statements of Cash Flows - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net (loss)	$ (4,479,052)	$ (1,523,375)
Adjustments to reconcile net loss to net cash (used in) operating activities:
Depletion and depreciation	65,033	10,861
Accretion of asset retirement obligation	30,483	3,061
Accretion of discount on convertible notes	15,033
Share based compensation	1,365,388	191,205
Impairment of crude oil and gas properties	116,303	154,776
Changes in operating assets and liabilities
Accounts receivable - joint interest billing	144,168	(339,741)
Accounts receivable - joint interest billing - related party	(286,226)
Accounts receivable - crude oil, natural gas and NGL sales	(179,236)
Accounts receivable - other	(27,876)
Deferred offering costs		109,965
Prepaid expenses and other assets	(1,160,314)	(2,705)
Accounts payable and accrued liabilities	1,338,274	225,764
Accounts payable - working interest partners and royalty owners	143,577	(25,509)
Drilling advances, net		(221,834)
Drilling advances, net - related party	234,452
Net cash (used in) operating activities	(2,679,993)	(1,417,532)
Cash flows from investing activities:
Additions of furniture, fixtures and equipment	(43,485)
Development of crude oil and natural gas properties	(3,038,339)	(177,126)
Acquisition of crude oil and natural gas properties - business combinations	(4,820,742)
Acquisitions of crude oil and natural gas properties	(2,854,475)	(715,595)
Net cash (used in) investing activities	(10,757,041)	(892,721)
Cash flows from financing activities:
Borrowings under line of credit	3,937,815	1,890,000
Repayment under line of credit	0	(827,815)
Borrowings under supplemental line of credit	7,105,000
Convertible notes issued for cash	1,737,340
Common stock issued for cash (net of offering costs)	95,000	3,834,001
Net cash provided by financing activities	12,875,155	4,896,186
Cash:
Net (decrease) increase in cash	(561,879)	2,585,933
Cash, beginning of year	3,011,291	425,358
Cash, end of year	2,449,412	3,011,291
Non-cash investing and financing activities:
Acquisition of crude oil and natural gas properties - business combinations	973,604
Issuance of common stock warrants in connection with common stock offering	191,692	260,270
Repayment of long-term debt in connection with the assignment of an interest in crude oil and natural gas properties		$ 287,815
Issuance of common stock for lease acquisition	26,686
Issuance of common stock for property acquisition	$ 56,700

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	12 Months Ended
ORGANIZATION AND NATURE OF BUSINESS	Dec. 31, 2016
ORGANIZATION AND NATURE OF BUSINESS
ORGANIZATION AND NATURE OF BUSINESS	NOTE 1—ORGANIZATION AND NATURE OF BUSINESS PetroShare Corp. ("PetroShare" or the "Company") is a corporation organized under the laws of the State of Colorado on September 4, 2012 to investigate, acquire and develop crude oil and natural gas properties in the Rocky Mountain or mid-continent portion of the United States. Since inception, the Company has focused on financing activities and the acquisition, exploration and development of crude oil and natural gas prospects. The Company's current development focus is on the Denver-Julesburg basin in the State of Colorado. The Company realized its first significant revenue in 2016, following the acquisition of certain oil and gas producing properties.

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2—BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). Business Combinations The Company accounts for the acquisition of oil and gas properties, that are not commonly controlled, based on the requirements of the Financial Accounting Standards Board ("FASB") ASC Topic 805, Business Combinations, which requires an acquiring entity to recognize the assets acquired and liabilities assumed at fair value under the acquisition method of accounting, provided such assets and liabilities qualify for acquisition accounting under the standard. The Company accounts for certain property acquisitions of proved developed oil and gas property as business combinations. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period Estimated quantities of crude oil, natural gas and natural gas liquids reserves are the most significant of the Company's estimates. All reserve data included in these financial statements are based on estimates. Reservoir engineering is a subjective process of estimating underground accumulations of crude oil, natural gas and natural gas liquids. There are numerous uncertainties inherent in estimating quantities of proved crude oil, natural gas and natural gas liquids reserves. The accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. As a result, reserve estimates may be different from the quantities of crude oil, natural gas and natural gas liquids that are ultimately recovered. Other items subject to estimates and assumptions include, but are not limited to, the carrying amounts of property, plant and equipment, asset retirement obligations, valuation allowances for deferred income tax assets and valuation assumptions related to the Company's share-based compensation. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment. The volatility of commodity prices results in increased uncertainty inherent in such estimates and assumptions. See Unaudited Crude Oil and Natural Gas Reserve Information . (Note 15) Loss Per Common Share Basic and diluted loss per share attributable to PetroShare shareholders is computed by dividing net (loss) by the weighted average number of common shares outstanding during the period. The Company excluded potentially dilutive securities as shown below, as the effect of their inclusion would be anti-dilutive. Potentially dilutive securities at December 31, 2016 and 2015 are as follows: 2016 2015 Exercisable stock options Warrants issued to underwriter — Warrants issued to convertible note holders — Warrants issued to placement agent—convertible note offering — Shares underlying convertible notes — Total Cash The Company's bank accounts periodically exceed federally insured limits. The Company maintains its deposits with high quality financial institutions and, accordingly, believes its credit risk exposure associated with cash is minimal. Revenue Recognition The Company recognizes revenue from the sale of crude oil, natural gas and NGLs when production is delivered to, and title has transferred to, the purchaser and to the extent the selling price is reasonably determinable. In general, settlements for hydrocarbon sales may occur after the month in which the oil, natural gas or other hydrocarbon products were produced. The Company may estimate and accrue for the value of these sales using information available to it at the time its financial statements are generated. Differences are reflected in the accounting period that payments are received from the purchaser. Accounts Receivable—Crude oil, natural gas and NGLs Accounts receivable—Crude oil, natural gas and NGLs consists of amounts receivable from sales from the Company's well interests. Management continually monitors accounts receivable for collectability. Accounts Receivable—Joint interest billing Accounts receivable—Joint interest billing consists primarily of joint interest billings, which are recorded at the invoiced and to-be-invoiced amounts. Collateral is not required for such receivables, nor is interest charged on past due balances. Joint interest billing receivables are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself. Deferred Offering Costs The Company defers as other current assets the direct incremental costs of raising capital through equity offerings until such time as the offering is completed. At the time of the completion of the offering, the costs are charged against the capital raised. Should the offering be terminated, deferred offering costs are charged to operations during the period in which the offering is terminated. During the year ended December 31, 2016, the Company charged $544,070 in deferred offering costs to operations, as the offering was terminated. As of December 31, 2016, the Company's deferred offering costs totaled $nil, with $nil recorded as of December 31, 2015. Debt Issuance Costs Debt issuance costs include origination and other fees incurred in connection with the Company's private placement and with the origination of the Company's supplemental line of credit. Debt issuance costs related to the private placement are amortized to interest expense using the effective interest method over the respective borrowing term. Crude Oil and Natural Gas Properties Proved The Company follows the successful efforts method of accounting for its crude oil and natural gas properties. Under this method of accounting, all property acquisition costs and development costs are capitalized when incurred and depleted on a units-of-production basis over the remaining life of proved reserves and proved developed reserves, respectively. Costs of drilling exploratory wells are initially capitalized but are charged to expense if the well is determined to be unsuccessful. The Company assesses its proved crude oil and natural gas properties for impairment whenever events or circumstances indicate that the carrying value of the assets may not be recoverable. The impairment test compares estimated undiscounted future net cash flows to the assets' net book value. If the net capitalized costs exceed estimated future net cash flows, then the cost of the property is written down to fair value. Fair value for crude oil and natural gas properties is generally determined based on estimated discounted future net cash flows. Impairment expense for proved properties is reported in exploration and impairment expense. The net carrying values of retired, sold or abandoned properties that constitute less than a complete unit of depreciable property are charged or credited, net of proceeds, to accumulated depreciation, depletion and amortization unless doing so significantly affects the unit-of-production amortization rate, in which case a gain or loss is recognized in the statement of operations. Gains or losses from the disposal of complete units of depreciable property are recognized in earnings (loss). Unproved Unproved properties consist of costs to acquire undeveloped leases as well as costs to acquire unproved reserves. Undeveloped lease costs and unproved reserve acquisitions are capitalized, and individually insignificant unproved properties are amortized on a composite basis, based on past success, past experience and average lease-term lives. The Company evaluates significant unproved properties for impairment based on remaining lease term, drilling results, reservoir performance, seismic interpretation or future plans to develop acreage. When successful wells are drilled on undeveloped leaseholds, unproved property costs are reclassified as proved properties and depleted on a unit-of- production basis. Impairment expense for unproved properties is reported in exploration and impairment expense. Exploratory Geological and geophysical costs, including exploratory seismic studies, and the costs of carrying and retaining unproved acreage are expensed as incurred. Costs of seismic studies that are utilized in development drilling within an area of proved reserves are capitalized as development costs. Amounts of seismic costs capitalized are based on only those blocks of data used in determining development well locations. To the extent that a seismic project covers areas of both developmental and exploratory drilling, those seismic costs are proportionately allocated between development costs and exploration expense. Costs of drilling exploratory wells are initially capitalized, pending determination of whether the well contains proved reserves. If an exploratory well does not contain proved reserves, the costs of drilling the well and other associated costs are charged to expense. Costs incurred for exploratory wells that contain reserves, which cannot yet be classified as proved, continue to be capitalized if (a) the well has found a sufficient quantity of reserves to justify completion as a producing well, and (b) the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. If either condition is not met, or if the Company obtains information that raises substantial doubt about the economic or operational viability of the project, the exploratory well costs, net of any salvage value, are expensed. Property, Plant and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using straight-line methods over the estimated useful lives of the related assets. Expenditures for renewals and betterments which increase the estimated useful life or capacity of the asset are capitalized; expenditures for repairs and maintenance are expensed when incurred. Asset Impairment Proved crude oil and natural gas properties are reviewed for impairment on a field-by-field basis each quarter, or when events and circumstances indicate a possible decline in the recoverability of the carrying value of such field. The estimated future undiscounted cash flows expected in connection with the field are compared to the carrying amount of the field to determine if the carrying amount is recoverable. If the carrying amount of the field exceeds its estimated undiscounted future cash flows, the carrying amount of the field is reduced to its estimated fair value. Due to the unavailability of relevant comparable market data, a discounted cash flow method is used to determine the fair value of proved properties. The discounted cash flow method utilizes the most recent third party reserve estimation report and estimates future cash flows based on management's estimates of future crude oil and natural gas production, commodity prices based on commodity futures price strips, operating and development costs, and a risk-adjusted discount rate. The Company recognized impairment expense of $116,303 during the year ended December 31, 2016, while expense of $154,776 was recorded in 2015. Depreciation, Depletion and Amortization Depreciation, depletion and amortization of capitalized drilling and development costs of producing crude oil and natural gas properties, including related support equipment and facilities, are computed using the unit-of-production method on a field basis based on total estimated proved developed crude oil and natural gas reserves. Amortization of producing leaseholds is based on the unit-of-production method using total estimated proved reserves. In arriving at rates under the unit-of-production method, the quantities of recoverable crude oil and natural gas reserves are established based on estimates made by the Company and external independent reserve engineers. Upon sale or retirement of properties, the cost and related accumulated depreciation, depletion and amortization are eliminated from the accounts and the resulting gain or loss, if any, is recognized. Unit of production rates are revised whenever there is an indication of a need, but at least in conjunction with annual reserve reports. Revisions are accounted for prospectively as changes in accounting estimates. Depletion expense for the year ended December 31, 2016 was $59,262, and expense of $9,898 was recorded in 2015. Prepaid Drilling Costs Prepaid drilling costs consist of cash payments made by the Company to the operators of oil and gas properties and other third party service providers. Drilling Advances—related party The Company's drilling advances consist of cash provided to the Company from its joint interest partners for planned drilling activities. Advances are applied against the joint interest partner's share of expenses incurred. As of December 31, 2016 and 2015, drilling advances totaled $234,452 and $nil, respectively. Income Taxes The Company recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates that are expected to be in effect when the differences are expected to be recovered. The Company provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not. Asset Retirement Obligation Asset retirement obligations associated with tangible long-lived assets are accounted for in accordance with ASC 410, "Accounting for Asset Retirement Obligations." The estimated fair value of the future costs associated with dismantlement, abandonment and restoration of crude oil and natural gas properties is recorded generally upon the completion of a well. The net estimated costs are discounted to present values using a risk adjusted rate over the estimated economic life of the crude oil and natural gas properties. Such costs are capitalized as part of the related asset. The asset is depleted on the units-of-production method. The liability is periodically adjusted to reflect: (1) new liabilities incurred; (2) liabilities settled during the period; (3) accretion expense; and (4) revisions to estimated future cash flow requirements. The accretion expense is recorded as a component of depreciation, depletion, accretion and amortization expense in the accompanying statements of operations. Share Based Compensation The Company uses the Black-Scholes option-pricing model to determine the fair-value of stock-based awards in accordance with ASC 718, "Compensation." The option-pricing model requires the input of highly subjective assumptions, including the option's expected life, the price volatility of the underlying stock, and the estimated dividend yield of the underlying stock. The Company's expected term represents the period that stock-based awards are expected to be outstanding and is determined based on the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of its stock-based awards. As there was insufficient historical data available to ascertain a forfeiture rate, the plain vanilla method was applied in calculating the expected term of the options. The Company's common stock has limited historical trading data, and as a result the expected stock price volatility is based on the historical volatility of a group of publicly traded companies that share similar operating metrics and histories. The Company has never paid dividends on its common stock and does not intend to do so in the foreseeable future, and as such, the expected dividend yield is zero. Loans and Borrowings Borrowings are recognized initially at fair value, net of financing costs incurred, and subsequently measured at amortized cost. Any difference between the amounts originally received and the redemption value of the debt is recognized in the consolidated statement of operations over the period to maturity using the effective interest method. Fair Value of Financial Instruments Fair value accounting, as prescribed in ASC Section 825, utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Going Concern Assessment Pursuant to ASU 2014-15, the Company has assessed its ability to continue as a going concern for a period of one year from the date of the issuance of these financial statements. Substantial doubt about an entity's ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year from the financial statement issuance date. As shown in the accompanying financial statements, the Company incurred a net loss of $4,479,052 during the year ended December 31, 2016, and as of that date, the Company's current liabilities exceeded its current assets by $6,115,501. Management has evaluated these conditions and determined that a reduction in the working capital deficit subsequent to December 31, 2016 related to a private placement (Note 6) and an extension and amendment to the Company's supplemental line of credit (Note 6), coupled with anticipated increased revenues from the Company's non-operated and operated properties, will allow the Company to meet its maturing debt and interest obligations and continue as a going concern through March 31, 2018. As part of the analysis, the Company considered selective participation in certain non-operated drilling programs based on availability of working capital and the timing of production related cash flows. Recent Accounting Pronouncements Standards Adopted in 2016 Debt Issuance Costs —In April 2015, the FASB issued updated guidance which changes the presentation of debt issuance costs in the financial statements. Under this updated guidance, debt issuance costs are presented on the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. In August 2015, the FASB subsequently issued a clarification as to the handling of debt issuance costs related to line-of-credit arrangements that allows the presentation of these costs as an asset. The standards update was effective for interim and annual periods beginning after December 15, 2015. The Company adopted this standards update, as required, effective January 1, 2016. The adoption of this standards update did not affect the Company's method of amortizing debt issuance costs and did not have a material impact on its financial statements. Measurement-Period Adjustments —In September 2015, the FASB issued updated guidance that eliminates the requirement to restate prior periods to reflect adjustments made to provisional amounts recognized in a business combination. The updated guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The standards update was effective prospectively for interim and annual periods beginning after December 15, 2015, with early adoption permitted. The Company adopted this standard update, as required, effective January 1, 2016, which did not have a material impact on its financial statements. Stock Compensation —In March 2016, the FASB issued updated guidance on share-based payment accounting. The standards update is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The standards update is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. The Company elected to early-adopt this standards update as of April 1, 2016 in connection with its initial grant of awards under the Company's 2015 Equity Incentive Plan. The Company has elected to record the impact of forfeitures on compensation cost as they occur. The Company is also permitted to withhold income taxes upon settlement of equity-classified awards at up to the maximum statutory tax rates. There was no retrospective adjustment as the Company did not have any forfeitures nor settlements outstanding equity awards prior to adoption. Going Concern Analysis —In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40)." The new guidance addresses management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and in certain circumstances to provide related footnote disclosures. The standard is effective for annual periods ending after December 15, 2016 and for annual and interim periods thereafter. The Company adopted this standard as required, which did not have a material impact on its financial statements. Recent Accounting Pronouncements Not Yet Adopted Various accounting standards and interpretations were issued in 2016 with effective dates subsequent to December 31, 2016. The Company has evaluated the recently issued accounting pronouncements that are effective in 2016 and believe that none of them will have a material effect on the Company's financial position, results of operations or cash flows when adopted. In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers." The standard requires an entity to recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 will supersede most of the existing revenue recognition requirements in US GAAP when it becomes effective and is required to be adopted using one of two retrospective application methods. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers—Deferral of the Effective Date," which approved a one year deferral of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted as of the original effective date for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the method of adoption and impact this standard will have on its financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2018. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of the new guidance on its financial statements. Further, the Company is monitoring the joint standard-setting efforts of the FASB and the International Accounting Standards Board. There are a large number of pending accounting standards that are being targeted for completion in 2017 and beyond, including, but not limited to, standards relating to revenue recognition, accounting for leases, fair value measurements, accounting for financial instruments, disclosure of loss contingencies and financial statement presentation. Because these pending standards have not yet been finalized, at this time the Company is not able to determine the potential future impact that these standards will have, if any, on its financial position, results of operations or cash flows.

ACQUISITIONS

ACQUISITIONS	12 Months Ended
ACQUISITIONS	Dec. 31, 2016
ACQUISITIONS
ACQUISITIONS	NOTE 3—ACQUISITIONS PDC Acquisition On June 30, 2016, the Company completed the acquisition of certain oil and gas assets from PDC Energy, Inc. ("PDC"), including leases covering approximately 3,652 gross (1,410 net) acres of lands located in Adams County, Colorado and PDC's interest in 35 producing wells ("PDC assets"). Simultaneous with the closing, the Company's working interest partner and primary lender exercised its option under a participation agreement (the "Participation Agreement") (Note 12) and acquired 50% of the Company's interest in the PDC assets. The acquisition was effective April 1, 2016. Following a final proration of costs and revenues from the operation of the PDC assets and the Company's working interest partner's exercise of its option under the Participation Agreement, the Company's net purchase price for the PDC assets was $2,260,890. A final allocation of the purchase price was prepared using, among other things, an internally prepared reserve analysis. The following table summarizes the consideration transferred, fair value of assets acquired and liabilities assumed: December 31, Consideration: Cash Total consideration $ Fair Value of Liabilities Assumed: Current liabilities Asset retirement obligations Total consideration plus liabilities assumed $ Fair Value of Assets Acquired: Proved crude oil and gas properties Unproved crude oil and gas properties Amount attributable to assets acquired $ The following table presents the unaudited pro forma combined results of operations for the years ended December 31, 2016, and 2015, as if the PDC assets acquisition had occurred on January 1, 2015. The unaudited pro forma results reflect significant pro forma adjustments related to depletion expense, accretion expense and costs directly attributable to the acquisition, and operating costs incurred as a result of the assets acquired. The pro forma results do not include any cost savings or other synergies that may result from the acquisition or any estimated costs that have been or will be incurred by the Company to integrate the properties acquired. The pro forma results are not necessarily indicative of what actually would have occurred if the acquisition had been completed as of the beginning of the period, nor are they necessarily indicative of future results. Year Ended December 31, 2016 2015 Crude oil and natural gas revenues $ $ Net income (loss) $ ) $ ) Net income (loss) per common share basic and diluted $ ) $ ) Crimson Acquisition On December 22, 2016, the Company completed the acquisition of certain oil and gas assets from Crimson Exploration Operating, Inc. ("Crimson"), including leases covering approximately 15,514 gross (5,609 net) acres of lands located mostly in Adams and Weld Counties, Colorado and Crimson's interest in 32 producing wells ("Crimson assets"). Simultaneous with the closing, the Company's working interest partner and primary lender acquired 50% of the Company's interest in the Crimson assets. The acquisition was effective December 1, 2016. Following a reconciliation of certain suspense and inventory accounts, the Company's net purchase price for the Crimson assets was $2,538,945. The purchase price is subject to post-closing adjustments scheduled to occur not more than 90 days following the closing date. An interim allocation of the purchase price was prepared using, among other things, an internally prepared reserve analysis. The following table summarizes the consideration transferred, fair value of assets acquired and liabilities assumed: December 31, Consideration: Cash Total consideration $ Fair Value of Liabilities Assumed: Current liabilities Asset retirement obligations Total consideration plus liabilities assumed $ Fair Value of Assets Acquired: Current assets Proved crude oil and gas properties Unproved crude oil and gas properties Amount attributable to assets acquired $ The following table presents the unaudited pro forma combined results of operations for the years ended December 31, 2016, and 2015 (unaudited), as if the Crimson assets acquisition had occurred on January 1, 2015. The unaudited pro forma results reflect significant pro forma adjustments related to depletion expense, accretion expense and costs directly attributable to the acquisition, and operating costs incurred as a result of the assets acquired. The pro forma results do not include any cost savings or other synergies that may result from the acquisition or any estimated costs that have been or will be incurred by the Company to integrate the properties acquired. The pro forma results are not necessarily indicative of what actually would have occurred if the acquisition had been completed as of the beginning of the period, nor are they necessarily indicative of future results. Year Ended December 31, 2016 2015 Crude oil and natural gas revenues $ $ Net Loss $ ) $ ) Net income (loss) per common share basic and diluted $ ) $ ) 2016 Activity On March 10, 2016, the Company acquired certain surface rights and easements on lands located in Township 1 South, Range 67 West located on its Todd Creek Farms prospect in exchange for $184,360 in cash. The surface rights and easements permit the Company to access its Shook well pad. On March 31, 2016, the Company acquired oil and gas assets on land adjacent to the Company's Todd Creek Farms prospect, including approximately 160 net acres and a 50% working interest in one well following an assignment to the Company's working interest partner pursuant to the Participation Agreement. The Company's net cost for the foregoing assets was $590,274. On April 14, 2016, the Company acquired oil and gas leases in the Todd Creek Farms prospect covering approximately 189 net acres. The Company's net cost for the leases was $288,056. In connection with obtaining its supplemental line of credit (Note 6), the Company assigned Providence Energy Partners III, LP ("PEP III") 10% of the Company's working interest in 278 gross (170 net) net acres in the Wattenberg Field including the Company's interest in the Jacobucci wells. On October 14, 2016, the Company completed the acquisition of additional royalty interests in 10 Jacobucci pad horizontal wells located on its Todd Creek Farms prospect. The Company's net cost for the royalty interests was $1.55 million, which the Company paid using a draw under its supplemental line of credit. 2015 Activity On May 15, 2015, the Company acquired approximately 1,280 gross acres (171 net acres) located in the Todd Creek Farms Prospect. The Company paid $785,630 and Kingdom conveyed to the Company an 80% net revenue interest in the acreage after accounting for landowner and other royalties. Pursuant to the provisions of the Participation Agreement, executed in connection with the Company's initial line of credit (See Note 6), the Company assigned the right to acquire up to 50% of its interest in the Todd Creek Farms prospect to Providence in part consideration for extending the Company the initial line of credit, which Providence exercised with an effective date of June 1, 2015. The Company recorded the exercise of the option by reducing its acquisition costs in the Kingdom Lease by 50%. A reduction of acquisition costs in the amount of $287,815 was recorded, comprised of $392,815 net of $105,000 related to a one-time credit issued to the lender pursuant to the provisions of the Participation Agreement. The Company has recorded the net assignment of interest to Providence as a $287,815 non-cash payment against the initial line of credit. Between May 15, 2015 and December 31, 2015, the Company acquired approximately 77 additional net acres in the Todd Creek Prospect area and, as of December 31, 2015, the Todd Creek Farms prospect area covers approximately 1,460 gross and 244 net acres.

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
PROPERTY, PLANT AND EQUIPMENT	Dec. 31, 2016
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT	NOTE 4—PROPERTY, PLANT AND EQUIPMENT Property and equipment balances were comprised of furniture, fixtures, and equipment and are shown below: December 31, 2016 2015 Property, Plant and Equipment $ $ Accumulated Depreciation ) ) Total $ $ Depreciation expense recorded for the years ended December 31, 2016 and 2015, amounted to $5,772 and $963, respectively.

CRUDE OIL AND NATURAL GAS PROPE

CRUDE OIL AND NATURAL GAS PROPERTIES	12 Months Ended
CRUDE OIL AND NATURAL GAS PROPERTIES	Dec. 31, 2016
CRUDE OIL AND NATURAL GAS PROPERTIES
CRUDE OIL AND NATURAL GAS PROPERTIES	NOTE 5—CRUDE OIL AND NATURAL GAS PROPERTIES The Company's oil and gas properties are entirely within the United States. The net capitalized costs related to the Company's oil and gas producing activities were as follows: As of December 31, 2016 2015 Proved oil and gas properties $ $ Unproved oil and gas properties(1) Wells in progress(2) Total capitalized costs Accumulated depletion depreciation and amortization ) ) Net capitalized costs $ $ (1) Unproved oil and gas properties represent unevaluated costs the Company excludes from the amortization base until proved reserves are established or impairment is determined. (2) Costs from wells in progress are excluded from the amortization base until production commences. Costs Incurred in Crude Oil and Natural Gas Activities. Costs incurred in connection with the Company's crude oil and natural gas acquisition, exploration and development activities for each of the periods are shown below: December 31, 2016 2015 Exploration costs $ $ Development costs Acquisition of properties Proved — Unproved Total $ $ During the year ended December 31, 2016, depletion expense was $59,262, and expense of $9,898 was recorded in 2015.

DEBT

DEBT	12 Months Ended
DEBT	Dec. 31, 2016
DEBT
DEBT	NOTE 6—DEBT Line of credit On May 13, 2015, the Company entered into a Revolving Line of Credit Facility Agreement ("initial line of credit") with Providence, which provides to the Company a revolving line of credit of up to $5,000,000. As of December 31, 2016, the outstanding balance on the initial line of credit was $5,000,000 plus accrued interest of $302,477. During the year ended December 31, 2016, the Company borrowed $3,937,815 on the initial line of credit, primarily to fund the acquisition and development of crude oil and natural gas properties (Note 3 and Note 12). During the year ended December 31, 2016, the Company recorded interest expense of $253,875 related to the initial line of credit. Interest on the outstanding principal balance of the initial line of credit begins accruing on the dates of advancements of principal at an annual rate equal to 8.0% simple interest. The Company is obligated to pay interest monthly after the Company receives its first production payment from a well associated with the Participation Agreement and/or in which the Company has or has had a working interest and in accordance with the terms of the promissory note. Supplemental line of credit On October 13, 2016, the Company entered into a revolving line of credit facility agreement (the "supplemental line of credit") with Providence Energy Partners III, LP ("PEP III"). PEP III is an affiliate of Providence by virtue of having some common management personnel. The supplemental line of credit permitted the Company to borrow up to $10.0 million to pay costs associated with its acquisition and development of oil and gas properties in the Wattenberg Field. The original maturity date for the supplemental line of credit was April 13, 2017. As amended on March 30, 2017, the Company agreed to repay $3,552,500 in outstanding principal not later than April 13, 2017 and not to borrow additional funds in exchange for PEP III extending the maturity date of the supplemental line of credit until June 13, 2017. (Note 14) As of December 31, 2016, the outstanding balance on the supplemental line of credit was $7,088,698 net of deferred financing fees of $16,302, plus accrued interest of $50,422. During the year ended December 31, 2016, the Company borrowed $7,105,000 under the supplemental line of credit, primarily to fund the acquisition and development of crude oil and natural gas properties (Note 3 and Note 12). During the year ended December 31, 2016, the Company recorded interest expense of $50,422 related to the supplemental line of credit. Convertible notes On December 30, 2016, the Company completed the first closing of a private placement of 200 units, each unit consisting of a convertible promissory note in the principal amount of $50,000 ("Notes") and 33,333 common stock purchase warrants ("Warrants"). Each Note sold in the private placement is one of a series of similar Notes designated the "10% Unsecured Convertible Promissory Notes" with the series totaling $10,000,000. The Notes bear interest at the rate of 10% per year and are due and payable on December 31, 2018. Interest is payable semi-annually beginning June 30, 2017 and until the Notes are paid in full. At any time after issuance, the principal amount of the Notes and any accrued but unpaid interest are convertible into shares of the Company's common stock at the option of the holder at the rate of $1.50 per share. Each Warrant allows the holder to purchase one share of the Company’s common stock at a price of $3.00 per share at any time on or before December 31, 2019. (Note 9) Related to the December 31, 2016 closing, the Company sold 38.85 units consisting of $1,942,600 principal amount of Notes and Warrants to purchase 1,294,987 shares of common stock. The Company received gross proceeds of $1,942,600 and net proceeds of $1,747,340 after placement agent fees and expenses. The Company also issued warrants to purchase 129,526 shares of common stock to the placement agent. (Note 9). The value of the warrants of $174,475 has been recorded as a discount and will be amortized to interest expense using the effective interest method through the maturity date of the Notes. The Company recorded a debt discount of $750,963 related to the intrinsic value of the beneficial conversion feature embedded in the Notes. The discount will be amortized to interest expense using the effective interest method through the maturity date of the Notes. In January and February 2017, the Company completed the private placement for a total of 200 units or $10,000,000 in total. (Note 14) The following table reflects the net amounts recorded as Convertible Notes at December 31, 2016 and 2015: December 31, 2016 2015 Face amount of convertible notes $ $ — Unamortized original issuer discount ) — Unamortized discount related to beneficial conversion feature ) — Unamortized discount related to warrants issued ) — Total $ $ —

ASSET RETIREMENT OBLIGATION

ASSET RETIREMENT OBLIGATION	12 Months Ended
ASSET RETIREMENT OBLIGATION	Dec. 31, 2016
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION	NOTE 7—ASSET RETIREMENT OBLIGATION For the purpose of determining the fair value of the asset retirement obligation incurred during the year ended December 31, 2016, the Company assumed an inflation rate of 2.0%, an estimated average asset life of 13.0 years, and a credit adjusted risk free interest rate of 9.48%. The following reconciles the value of the asset retirement obligation for the periods presented: December 31, 2016 2015 Asset retirement obligation, beginning of year $ $ Liabilities settled — Liabilities incurred — Revisions in estimated liabilities — — Accretion Asset retirement obligation, end of year $ $ Accretion expense recorded for the year ended December 31, 2016 was $30,483, accretion expense recorded for the year ended December 31, 2015 was $3,061.

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	12 Months Ended
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	Dec. 31, 2016
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	NOTE 8—ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liability balances were comprised of trade accounts payable and accrued liabilities, drilling advances, crude oil and natural gas distributions payable and are shown below: December 31, 2016 2015 Trade payables and accrued liabilities $ $ Accrued interest payable Liabilities incurred in connection with acquisition of crude oil and natural gas properties — Crude oil and natural gas distributions payable Total $ $

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
SHAREHOLDERS' EQUITY	Dec. 31, 2016
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY	NOTE 9—SHAREHOLDERS' EQUITY Common Stock As of December 31, 2016 and December 31, 2015, the Company had 100,000,000 shares of common stock authorized with a par value of $0.001 per share. As of December 31, 2016 and December 31, 2015, 21,964,282 and 21,633,191 shares were issued and outstanding, respectively. Activity for the year ended December 31, 2016 included the following: • In January 2016, the Company sold 95,000 shares of common stock at $1.00 per share to one accredited investor pursuant to a private placement of its common stock. • On April 8, 2016, the Company issued 50,000 shares of common stock valued at $0.73 per share to an investor relations company in connection with the certain services to be provided pursuant to an investor relations agreement. • On May 4, 2016, the Company issued an aggregate of 50,000 shares of common stock valued at $1.01 per share to two of the Company's directors in connection with their appointment to the Board (Note 9). • On July 5, 2016, the Company issued 25,000 shares of common stock valued at $1.60 per share to a director in connection with his appointment to the Board (Note 9). • On July 22, 2016, the Company issued 8,333 shares of common stock valued at $1.65 per share and on August 22, 2016 the Company issued 8,333 shares of common stock valued at $1.40 per share, each to an investor relations company in connection with certain services to be provided to the Company. • On August 30, 2016, the Company issued 50,000 shares of common stock valued at $1.44 per share to an investor relations company in connection with a termination agreement. • On November 11, 2016, the Company issued 14,425 shares of common stock valued at $1.85 per share to an individual in connection with the consideration and acquisition of the certain oil and gas leases. • On December 5, 2016, the Company issued 30,000 shares of common stock valued at $1.89 per share in connection with the exchange of interests in certain oil and gas assets in Buck Peak prospect. Activity for the year ended December 31, 2015 included the following: • 4,600,000 shares of common stock were issued under the terms of the public offering; 340,000 shares at $1.00 per share sold by the Company prior to engaging an underwriter and 4,260,000 shares at $0.90 per share to an underwriter. The Company received gross proceeds of $4,174,000, and incurred offering costs, commissions and expenses related to the offering of $364,999. • In December 2015, 25,000 shares of common stock were issued at $1.00 per share to one accredited investor pursuant to a private placement of the Company's common stock. Preferred Stock As of December 31, 2016, the Company had 10,000,000 shares of preferred stock authorized with a par value of $0.01 per share. As of December 31, 2016 and 2015, there were no shares of preferred stock issued or outstanding. Warrants The table below summarizes warrants outstanding as of December 31, 2016: Shares Underlying Exercise Price Expiration Date $ 11/12/2020 $ 12/31/2019 $ 12/31/2021 Activity for the year ended December 31, 2016: • On December 30, 2016, the Company issued 129,516 warrants. The warrants are exercisable at $1.50 per share and expire on December 31, 2021. The warrants were issued in connection with the closing of the first round of the Company's private placement. (Note 6) • On December 30, 2016, the Company issued 1,294,987 warrants. The warrants are exercisable at $3.00 per share and expire on December 31, 2019. The warrants were issued in connection with the closing of the first round of the Company's private placement. (Note 6) Activity for the year ended December 31, 2015: • On November 20, 2015, the Company issued 255,600 warrants. The warrants are exercisable at $1.25 per share and expire on November 12, 2020.

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	12 Months Ended
STOCK BASED COMPENSATION	Dec. 31, 2016
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION	NOTE 10—STOCK BASED COMPENSATION On August 18, 2016, the Company's Board of Directors adopted the Amended and Restated PetroShare Corp. Equity Incentive Plan (the "Plan"), which replaced and restated the Company's original equity incentive plan. The Plan terminates by its terms on August 17, 2026. Among other things, the Plan increased the number of shares of common stock reserved for issuance thereunder from 5,000,000 to 10,000,000 shares. The Company's shareholders approved the Plan at the Company's annual meeting of shareholders on September 8, 2016. During the year ended December 31, 2016, the Board of Directors granted non-qualified options to employees, directors and consultants of the Company under the Plan to acquire 2,275,000 shares of common stock. During the year ended December 31, 2015, the Board of Directors granted non-qualified options to employees and consultants of the Company under the Plan to acquire 275,000 of common stock. The options are exercisable at $1.00 and expire three years from the date of grant. A summary of activity under the Plan for the years ended December 31, 2016 and 2015 is as follows: Number of Weighted Remaining Outstanding Options, December 31, 2014 $ Granted Exercised — — — Forfeited — — — Outstanding, December 31, 2015 $ Exercisable, December 31, 2015 $ Granted Exercised — — — Forfeited — — — Outstanding, December 31, 2016 $ Exercisable, December 31, 2016 $ The fair value of each share-based award was estimated on the date of the grant using the Black-Scholes pricing model that incorporates key assumptions including volatility, dividend yield and risk-free interest rates. As the Company's common stock has limited historical trading data, the expected stock price volatility is based primarily on the historical volatility of a group of publicly-traded companies that share similar operating metrics and histories. The expected term of the awards represents the period of time that management anticipates awards will be outstanding. As there was insufficient historical data available to ascertain a forfeiture rate, the plain vanilla method was applied in calculating the expected term of the options. The risk-free rates for the periods within the contractual life of the options are based on the US Treasury bond rate in effect at the time of the grant for bonds with maturity dates at the expected term of the options. The Company has never paid dividends on its common stock and currently does not intend to do so, and as such, the expected dividend yield is zero. Compensation expense related to stock options was recorded net of estimated forfeitures, which for options remaining at December 31, 2016, the Company expects no additional forfeitures. The table below summarizes assumptions utilized in the Black-Scholes pricing model for the years ended 2016 and 2015: December 31, December 31, Expected option term—years 1.5 - 2.5 1.5 Weighted-average risk-free interest rate 0.94 - 1.31% 0.70 - 1.23% Expected dividend yield 0 0 Weighted-average volatility 142 - 214% 158 - 188% Forfeiture rate 0 0 During the years ended December 31, 2016 and 2015, the Company recorded share-based compensation of $1,140,967 and $191,205, respectively. Unvested share-based compensation at December 31, 2016 amounted to $1,434,961.

PROVISION FOR INCOME TAXES

PROVISION FOR INCOME TAXES	12 Months Ended
PROVISION FOR INCOME TAXES	Dec. 31, 2016
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES	NOTE 11—PROVISION FOR INCOME TAXES Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry-forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. No uncertain tax positions have been identified as of December 31, 2016. The Company is in a position of cumulative reporting losses for the current and preceding reporting periods. The volatility of energy prices is not readily determinable by management. At this date, this fact pattern does not allow the Company to project sufficient sources of future taxable income to offset tax loss carry-forwards and net deferred tax assets. Under these circumstances, it is management's opinion that the realization of these tax attributes does not reach the "more likely than not criteria" under ASC 740, "Income Taxes." As a result, the Company's deferred tax assets as of December 31, 2016 and 2015 are subject to a full valuation allowance. Net deferred tax assets and liabilities consist of the following components as of December 31, 2016 and 2015: Year Ended December 31, 2016 2015 Deferred tax assets—current: Exploration costs $ — $ — Deferred tax assets—noncurrent: NOL carryover Stock based compensation Asset retirement obligation Total deferred tax assets Deferred tax liabilities—current: Prepaid expenses — ) Property and equipment ) — Impairment, intangible drilling costs and other exploration costs capitalized ) ) Total deferred tax liabilities ) ) Net deferred tax assets Valuation allowance ) ) Net deferred tax assets $ — $ — The income tax provision differs from the amount of income tax determined by applying the US federal tax rate to the pretax loss from continuing operations for the years ended December 31, 2016 and 2015 due to the following: Year Ended December 31, 2016 2015 Tax at statutory federal rate $ ) $ ) Permanent difference State taxes, net of federal ) ) Depletion and impairment — ) Change in valuation allowance Other ) Provision (benefit) for income taxes $ — $ — At December 31, 2016, the Company had net operating loss carry-forwards of approximately $11,570,570 that may be offset against future taxable income from the years 2016 through 2036. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years. The Company files income tax returns in the US federal jurisdiction and in the State of Colorado. The Company is currently subject to US federal, state and local income tax examinations by tax authorities since inception of the Company.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2016
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 12—RELATED PARTY TRANSACTIONS In May 2015, the Company entered into the Participation Agreement with Providence. As Providence is also the Company's primary lender through which the Company currently maintains the $5,000,000 initial line of credit (Note 6). The Participation Agreement grants Providence the option to acquire up to a 50% interest and participate in any oil and gas development on acreage the Company obtains through its Kingdom services agreement and any other leases acquired by the Company within an area of mutual interest ("AMI"). The AMI covers an area in Adams County, Colorado containing all of Township 1 South, Range 67 West, consisting of approximately 23,100 gross acres, with an additional one-mile border around the township, plus any other mutually agreeable areas. Providence currently holds 13.7% of the Company's outstanding common stock. At December 31, 2016, the Company had drawn $5,000,000 on the initial line of credit, and recorded related accrued interest of $302,477. On December 30, 2016 six officers and directors of the Company participated in Company's private placement by investing $500,000. (Note 6) The officers and directors participated on the same terms and conditions as third-party investors.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 13—COMMITMENTS AND CONTINGENCIES Operating leases and agreements The Company leases its office facilities under a four year non-cancelable operating lease agreement expiring in October 2020. The following is a schedule by year of future minimum rental payments required under the operating lease agreement: Year ending December 31, Amount 2017 $ 2018 2019 2020 2021 $ Lease expense totaled $34,651 and $31,562 for the years ended December 31, 2016 and December 31, 2015 respectively. Employment agreements On February 25, 2016, the Board of Directors approved a form of amended and restated executive employment in order to provide uniform terms of employment for the Company's executive officers. Effective March 1, 2016, the Company entered into an amended and restated employment agreement with each Stephen J. Foley and Fredrick J. Witsell. Pursuant to the amended and restated employment agreements, Mr. Foley and Mr. Witsell are compensated by the Company at the rate of $13,000 per month, or $156,000 per year. The Company also executed an executive agreement with William B. Lloyd, Chief Operating Officer, pursuant to which, as amended, Mr. Lloyd is compensated at the rate of $13,000 per month, or $156,000 per year. For each of the foregoing executives, the employment agreements provide for an initial term expiring on December 31, 2018 with an automatic renewal for successive one-year periods unless terminated in accordance with its terms and provisions for termination and payment of severance under various circumstances. On April 15, 2016, the Company entered into an executive employment agreement with William R. Givan, Vice President, Land, pursuant to which Mr. Givan is compensated at the rate of $10,833.33 per month, or $130,000 per year. Mr. Givan's employment agreement provides for an initial term expiring on April 14, 2017 with an automatic renewal for successive one-year periods unless terminated in accordance with its terms and provisions for termination and payment of severance under various circumstances.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2016
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 14—SUBSEQUENT EVENTS Completion of Private Placement On January 20, 2017, the Company completed a second closing of a private placement in which it sold an additional 66.509 units, including $2,216,978 in Notes and Warrants to purchase 2,216,978 shares of common stock. The Company received gross proceeds of $3,325,450 from this second closing prior to the deduction of placement agent fees and other associated expenses. (Notes 6 and 9) On January 30, 2017, the Company completed the final closing of the private placement in which it sold an additional 94.64 units, including $3,154,601 in Notes and Warrants to purchase 3,154,601 shares of common stock. The Company received gross proceeds of $4,731,950 from the final closing and gross proceeds of $10,000,000 from the entire private placement prior to the deduction of placement agent fees and other associated expenses. (Notes 6 and 9) In connection with the private placement, the Company paid the placement agent and participating broker-dealers a total commission of $1,000,000 pursuant to a Placement Agent Agreement between the Company and the agent dated December 16, 2016 and amended on January 24, 2017. As additional compensation, the Company issued a placement agent warrant to purchase a total of 666,797 shares of the Company's common stock exercisable at a price of $1.50 per share. The placement agent warrants expire on December 31, 2021. Supplemental Line of Credit As amended on March 30, 2017, the Company agreed to repay $3,552,500 in outstanding principal not later than April 13, 2017 and not to borrow additional funds against the supplemental line of credit in exchange for PEP III extending the maturity date of the supplemental line of credit until June 13, 2017. (Note 6) Pending Acquisitions On February 23, 2017 the Company entered into a Purchase and Sale Agreement with an independent third party seller to acquire oil and gas leases totaling approximately 5,879 gross (2,930 net) acres, with an average net revenue interest of 84%, located in Weld and Adams Counties, Colorado. The total purchase price for the leases and associated assets is $2,582,500. Providence has agreed to purchase a 50% interest in the assets, which would reduce the Company's interest to 1,465 net acres. Subject to satisfaction of closing conditions, the Company will pay approximately $460,000 in cash and issue 450,000 shares of its common stock to the seller for its 50% share of the acquisition. On March 16, 2017, the Company entered into a Letter Agreement with an independent third party seller to acquire an 18.75% royalty interest covering approximately 291 net acres, located in Adams County, Colorado. The total purchase price for the interests is $1,138,800. If completed, the transaction will be effective April 1, 2017. If completed, the Company may sell 50% of its acquired interest to Providence.

UNAUDITED CRUDE OIL AND NATURAL

UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION	12 Months Ended
UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION	Dec. 31, 2016
UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION
UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION	NOTE 15—UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION The reserves at December 31, 2016, presented below were prepared by the independent engineering firm Cawley, Gillespie & Associates Inc. All reserves are located within the DJ Basin. Proved oil, natural gas and NGL reserves are the estimated quantities of oil, natural gas and NGLs which geological and engineering data demonstrate, with reasonable certainty, to be recoverable in future years from known reservoirs under economic and operating conditions (i.e., prices and costs) existing at the time the estimate is made. Proved developed oil, natural gas and NGL reserves are proved reserves that can be expected to be recovered through existing wells and equipment in place and under operating methods being utilized at the time the estimates were made. A variety of methodologies are used to determine the proved reserve estimates. The principal methodologies employed are decline curve analysis, advance production type curve matching, petro physics/log analysis and analogy. Some combination of these methods is used to determine reserve estimates in substantially all of the Company's fields. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries and undeveloped locations are more imprecise than estimates of established proved producing oil and gas properties. Accordingly, these estimates are expected to change as future information becomes available. As the result of volatile crude oil prices coupled with nominal estimated reserve volumes, the Company's management deemed that is was not economically prudent to obtain a reserve report for the year December 31, 2015. Based on management's analysis, as of December 31, 2015, the Company has ascribed no value related to proved reserves. At December 31, 2014, the Company had ascribed a nominal value to the standardized measure of estimated discounted future net cash flows related to its reserves. Analysis of Changes in Proved Reserves. Estimated quantities of proved developed reserves (all of which are located within the United States), as well as the changes in proved developed reserves during the periods indicated, are presented in the following tables: Oil Natural Gas NGLs Total Proved Reserves: Balance as of December 31, 2013 — — — — Revisions of previous estimates — — — — Extensions and discoveries — — Sales of reserves in place — — — — Improved recovery — — — — Purchase of reserves — — — — Production ) — — ) Balance as of December 31, 2014 — — Revisions of previous estimates ) — — ) Extensions and discoveries — — — — Sales of reserves in place — — — — Improved recovery — — — — Purchase of reserves — — — — Production ) — — ) Balance as of December 31, 2015 — — — — Revisions of previous estimates — — — — Extensions and discoveries Sales of reserves in place — — — — Improved recovery — — — — Purchase of reserves Production ) ) ) ) Balance as of December 31, 2016 Proved Developed Reserves, included above Balance as of December 31, 2014 — — Balance as of December 31, 2015 — — — — Balance as of December 31, 2016 Proved Undeveloped Reserves, included above Balance as of December 31, 2014 — — — — Balance as of December 31, 2015 — — — — Balance as of December 31, 2016 The values for the 2016 oil, natural gas and NGL reserves are based on the 12-month arithmetic average of the first day of the month prices for the period from January through December 31, 2016. The unweighted arithmetic average first-day-of-the-month prices for the prior twelve months were $42.75 per barrel (West Texas Intermediate price) for crude oil and NGLs and $2.48 per MMBtu (Henry Hub price) for natural gas. All prices are then further adjusted for transportation, quality and basis differentials. The average resulting price used as of December 31, 2016 was $34.09 per barrel for oil, $2.69 per Mcf for natural gas and $14.44 per barrel for NGLs. The Company did not ascribe a value to its proved reserves as of December 31, 2015 due to immaterial quantity estimates and a volatile price environment. The values for the 2014 oil and natural gas reserves are based on the 12- month arithmetic average of the first day of the month prices for the period January through December, 31, 2014. The unweighted arithmetic average first-day-of-the-month prices for the prior twelve months were $94.99 per barrel (West Texas Intermediate price) for crude oil and NGLs and $4.35 per MMBtu (Henry Hub price) for natural gas. All prices are then further adjusted for transportation, quality and basis differentials. For the year ended December 31, 2016, the Company reported extensions and discoveries of 6,030,624 BOE as a result of drilling and completion activities during 2016. Additionally, during 2016 the Company purchased reserves of 287,999 BOE. For the year ended December 31, 2015, the Company had downward revisions of previous estimates of 122 BOE. The Company ascribed no value related to proved reserves at December 31, 2015. For the year ended December 31, 2014, the Company reported extensions discoveries of 250 BOE related to the drilling and completion of two wells. Standardized Measure of Estimated Discounted Future Net Cash Flows to Proved Oil and Natural Gas Reserves (in thousands): The Company follows the guidelines prescribed in ASC 932, Extractive Activities—Oil and Gas for computing a standardized measure of future net cash flows and changes therein relating to estimated proved reserves. The following summarizes the policies used in the preparation of the accompanying oil, natural gas and NGL reserve disclosures, standardized measures of discounted future net cash flows from proved oil, natural gas and NGL reserves and the reconciliations of standardized measures from year to year. The information is based on estimates of proved reserves attributable to the Company's interest in oil and gas properties as of December 31 of the years presented. These estimates were prepared by Cawley Gillespie & Associates, Inc., independent petroleum engineers. The standardized measure of discounted future net cash flows from production of proved reserves was developed as follows: (1) estimates are made of quantities of proved reserves and future periods during which they are expected to be produced based on year-end economic conditions; (2) the estimated future cash flows are compiled by applying the twelve month average of the first of the month prices of crude oil and natural gas relating to the Company's proved reserves to the year-end quantities of those reserves for reserves; (3) the future cash flows are reduced by estimated production costs, costs to develop and produce the proved reserves and abandonment costs, all based on year-end economic conditions, plus Company overhead incurred; and (4) future net cash flows are discounted to present value by applying a discount rate of 10%. The assumptions used to compute the standardized measure are those prescribed by the FASB and the SEC. These assumptions do not necessarily reflect the Company's expectations of actual revenues to be derived from those reserves, nor their present value. The limitations inherent in the reserve quantity estimation process, as discussed previously, are equally applicable to the standardized measure computations, since these reserve quantity estimates are the basis for the valuation process. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries and undeveloped locations are more imprecise than estimates of established proved producing oil and gas properties. The standardized measure of discounted future net cash flows does not purport, nor should it be interpreted, to present the fair value of the Company's oil and natural gas reserves. An estimate of fair value would also take into account, among other things, the recovery of reserves not presently classified as proved, anticipated future changes in prices and costs and a discount factor more representative of the time value of money and the risks inherent in reserve estimates. The following are the principal sources of change in the standardized measure (in thousands): For the years ended 2016 2015 2014 Future cash inflows $ $ $ Future cash outflows: Production cost ) ) ) Development cost ) — — Future income tax ) — — Future net cash flows Adjustment to discount future annual net cash flows at 10% ) ) — Standardized measure of discounted future net cash flows $ $ — $ The following summary sets forth the Company's future net cash flows relating to proved oil, natural gas and NGL reserves based on the standardized measure prescribed in ASC 932, Extractive Activities—Oil and Gas (in thousands): Changes in Standardized Measure of Estimated Discounted Future Net Cash Flows For the years ended 2016 2015 2014 Standardized measure, beginning of year $ — $ $ — Sales of oil and gas, net of production cost ) ) — Net change in sales prices, net of production cost — — Discoveries, extensions and improved recoveries — Change in future development costs ) — — Development costs incurred during the period that reduced future development cost — — — Sales of reserves in place — — — Revisions of quantity estimates — ) — Accretion of discount — — Net change in income tax ) — — Purchase of reserves — — Changes in timing of rates of production — — Standardized measure, end of year $ $ — $

BASIS OF PRESENTATION AND SUM23

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America ("US GAAP").
Business Combinations	Business Combinations The Company accounts for the acquisition of oil and gas properties, that are not commonly controlled, based on the requirements of the Financial Accounting Standards Board ("FASB") ASC Topic 805, Business Combinations, which requires an acquiring entity to recognize the assets acquired and liabilities assumed at fair value under the acquisition method of accounting, provided such assets and liabilities qualify for acquisition accounting under the standard. The Company accounts for certain property acquisitions of proved developed oil and gas property as business combinations.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period Estimated quantities of crude oil, natural gas and natural gas liquids reserves are the most significant of the Company's estimates. All reserve data included in these financial statements are based on estimates. Reservoir engineering is a subjective process of estimating underground accumulations of crude oil, natural gas and natural gas liquids. There are numerous uncertainties inherent in estimating quantities of proved crude oil, natural gas and natural gas liquids reserves. The accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. As a result, reserve estimates may be different from the quantities of crude oil, natural gas and natural gas liquids that are ultimately recovered. Other items subject to estimates and assumptions include, but are not limited to, the carrying amounts of property, plant and equipment, asset retirement obligations, valuation allowances for deferred income tax assets and valuation assumptions related to the Company's share-based compensation. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment. The volatility of commodity prices results in increased uncertainty inherent in such estimates and assumptions. See Unaudited Crude Oil and Natural Gas Reserve Information . (Note 15)
Loss Per Common Share	Loss Per Common Share Basic and diluted loss per share attributable to PetroShare shareholders is computed by dividing net (loss) by the weighted average number of common shares outstanding during the period. The Company excluded potentially dilutive securities as shown below, as the effect of their inclusion would be anti-dilutive. Potentially dilutive securities at December 31, 2016 and 2015 are as follows: 2016 2015 Exercisable stock options Warrants issued to underwriter — Warrants issued to convertible note holders — Warrants issued to placement agent—convertible note offering — Shares underlying convertible notes — Total
Cash	Cash The Company's bank accounts periodically exceed federally insured limits. The Company maintains its deposits with high quality financial institutions and, accordingly, believes its credit risk exposure associated with cash is minimal.
Revenue Recognition	Revenue Recognition The Company recognizes revenue from the sale of crude oil, natural gas and NGLs when production is delivered to, and title has transferred to, the purchaser and to the extent the selling price is reasonably determinable. In general, settlements for hydrocarbon sales may occur after the month in which the oil, natural gas or other hydrocarbon products were produced. The Company may estimate and accrue for the value of these sales using information available to it at the time its financial statements are generated. Differences are reflected in the accounting period that payments are received from the purchaser.
Accounts Receivable - Crude oil, natural gas and NGLs	Accounts Receivable—Crude oil, natural gas and NGLs Accounts receivable—Crude oil, natural gas and NGLs consists of amounts receivable from sales from the Company's well interests. Management continually monitors accounts receivable for collectability.
Accounts Receivable - Joint interest billing	Accounts Receivable—Joint interest billing Accounts receivable—Joint interest billing consists primarily of joint interest billings, which are recorded at the invoiced and to-be-invoiced amounts. Collateral is not required for such receivables, nor is interest charged on past due balances. Joint interest billing receivables are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself.
Deferred Offering Costs	Deferred Offering Costs The Company defers as other current assets the direct incremental costs of raising capital through equity offerings until such time as the offering is completed. At the time of the completion of the offering, the costs are charged against the capital raised. Should the offering be terminated, deferred offering costs are charged to operations during the period in which the offering is terminated. During the year ended December 31, 2016, the Company charged $544,070 in deferred offering costs to operations, as the offering was terminated. As of December 31, 2016, the Company's deferred offering costs totaled $nil, with $nil recorded as of December 31, 2015.
Debt Issuance Costs	Debt Issuance Costs Debt issuance costs include origination and other fees incurred in connection with the Company's private placement and with the origination of the Company's supplemental line of credit. Debt issuance costs related to the private placement are amortized to interest expense using the effective interest method over the respective borrowing term.
Crude Oil and Natural Gas Properties	Crude Oil and Natural Gas Properties Proved The Company follows the successful efforts method of accounting for its crude oil and natural gas properties. Under this method of accounting, all property acquisition costs and development costs are capitalized when incurred and depleted on a units-of-production basis over the remaining life of proved reserves and proved developed reserves, respectively. Costs of drilling exploratory wells are initially capitalized but are charged to expense if the well is determined to be unsuccessful. The Company assesses its proved crude oil and natural gas properties for impairment whenever events or circumstances indicate that the carrying value of the assets may not be recoverable. The impairment test compares estimated undiscounted future net cash flows to the assets' net book value. If the net capitalized costs exceed estimated future net cash flows, then the cost of the property is written down to fair value. Fair value for crude oil and natural gas properties is generally determined based on estimated discounted future net cash flows. Impairment expense for proved properties is reported in exploration and impairment expense. The net carrying values of retired, sold or abandoned properties that constitute less than a complete unit of depreciable property are charged or credited, net of proceeds, to accumulated depreciation, depletion and amortization unless doing so significantly affects the unit-of-production amortization rate, in which case a gain or loss is recognized in the statement of operations. Gains or losses from the disposal of complete units of depreciable property are recognized in earnings (loss). Unproved Unproved properties consist of costs to acquire undeveloped leases as well as costs to acquire unproved reserves. Undeveloped lease costs and unproved reserve acquisitions are capitalized, and individually insignificant unproved properties are amortized on a composite basis, based on past success, past experience and average lease-term lives. The Company evaluates significant unproved properties for impairment based on remaining lease term, drilling results, reservoir performance, seismic interpretation or future plans to develop acreage. When successful wells are drilled on undeveloped leaseholds, unproved property costs are reclassified as proved properties and depleted on a unit-of- production basis. Impairment expense for unproved properties is reported in exploration and impairment expense. Exploratory Geological and geophysical costs, including exploratory seismic studies, and the costs of carrying and retaining unproved acreage are expensed as incurred. Costs of seismic studies that are utilized in development drilling within an area of proved reserves are capitalized as development costs. Amounts of seismic costs capitalized are based on only those blocks of data used in determining development well locations. To the extent that a seismic project covers areas of both developmental and exploratory drilling, those seismic costs are proportionately allocated between development costs and exploration expense. Costs of drilling exploratory wells are initially capitalized, pending determination of whether the well contains proved reserves. If an exploratory well does not contain proved reserves, the costs of drilling the well and other associated costs are charged to expense. Costs incurred for exploratory wells that contain reserves, which cannot yet be classified as proved, continue to be capitalized if (a) the well has found a sufficient quantity of reserves to justify completion as a producing well, and (b) the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. If either condition is not met, or if the Company obtains information that raises substantial doubt about the economic or operational viability of the project, the exploratory well costs, net of any salvage value, are expensed.
Property, Plant and Equipment	Property, Plant and Equipment Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using straight-line methods over the estimated useful lives of the related assets. Expenditures for renewals and betterments which increase the estimated useful life or capacity of the asset are capitalized; expenditures for repairs and maintenance are expensed when incurred.
Asset Impairment	Asset Impairment Proved crude oil and natural gas properties are reviewed for impairment on a field-by-field basis each quarter, or when events and circumstances indicate a possible decline in the recoverability of the carrying value of such field. The estimated future undiscounted cash flows expected in connection with the field are compared to the carrying amount of the field to determine if the carrying amount is recoverable. If the carrying amount of the field exceeds its estimated undiscounted future cash flows, the carrying amount of the field is reduced to its estimated fair value. Due to the unavailability of relevant comparable market data, a discounted cash flow method is used to determine the fair value of proved properties. The discounted cash flow method utilizes the most recent third party reserve estimation report and estimates future cash flows based on management's estimates of future crude oil and natural gas production, commodity prices based on commodity futures price strips, operating and development costs, and a risk-adjusted discount rate. The Company recognized impairment expense of $116,303 during the year ended December 31, 2016, while expense of $154,776 was recorded in 2015.
Depreciation, Depletion and Amortization	Depreciation, Depletion and Amortization Depreciation, depletion and amortization of capitalized drilling and development costs of producing crude oil and natural gas properties, including related support equipment and facilities, are computed using the unit-of-production method on a field basis based on total estimated proved developed crude oil and natural gas reserves. Amortization of producing leaseholds is based on the unit-of-production method using total estimated proved reserves. In arriving at rates under the unit-of-production method, the quantities of recoverable crude oil and natural gas reserves are established based on estimates made by the Company and external independent reserve engineers. Upon sale or retirement of properties, the cost and related accumulated depreciation, depletion and amortization are eliminated from the accounts and the resulting gain or loss, if any, is recognized. Unit of production rates are revised whenever there is an indication of a need, but at least in conjunction with annual reserve reports. Revisions are accounted for prospectively as changes in accounting estimates. Depletion expense for the year ended December 31, 2016 was $59,262, and expense of $9,898 was recorded in 2015.
Prepaid Drilling Costs	Prepaid Drilling Costs Prepaid drilling costs consist of cash payments made by the Company to the operators of oil and gas properties and other third party service providers.
Drilling Advances - related party	Drilling Advances—related party The Company's drilling advances consist of cash provided to the Company from its joint interest partners for planned drilling activities. Advances are applied against the joint interest partner's share of expenses incurred. As of December 31, 2016 and 2015, drilling advances totaled $234,452 and $nil, respectively.
Income Taxes	Income Taxes The Company recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates that are expected to be in effect when the differences are expected to be recovered. The Company provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not.
Asset Retirement Obligation	Asset Retirement Obligation Asset retirement obligations associated with tangible long-lived assets are accounted for in accordance with ASC 410, "Accounting for Asset Retirement Obligations." The estimated fair value of the future costs associated with dismantlement, abandonment and restoration of crude oil and natural gas properties is recorded generally upon the completion of a well. The net estimated costs are discounted to present values using a risk adjusted rate over the estimated economic life of the crude oil and natural gas properties. Such costs are capitalized as part of the related asset. The asset is depleted on the units-of-production method. The liability is periodically adjusted to reflect: (1) new liabilities incurred; (2) liabilities settled during the period; (3) accretion expense; and (4) revisions to estimated future cash flow requirements. The accretion expense is recorded as a component of depreciation, depletion, accretion and amortization expense in the accompanying statements of operations.
Share Based Compensation	Share Based Compensation The Company uses the Black-Scholes option-pricing model to determine the fair-value of stock-based awards in accordance with ASC 718, "Compensation." The option-pricing model requires the input of highly subjective assumptions, including the option's expected life, the price volatility of the underlying stock, and the estimated dividend yield of the underlying stock. The Company's expected term represents the period that stock-based awards are expected to be outstanding and is determined based on the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of its stock-based awards. As there was insufficient historical data available to ascertain a forfeiture rate, the plain vanilla method was applied in calculating the expected term of the options. The Company's common stock has limited historical trading data, and as a result the expected stock price volatility is based on the historical volatility of a group of publicly traded companies that share similar operating metrics and histories. The Company has never paid dividends on its common stock and does not intend to do so in the foreseeable future, and as such, the expected dividend yield is zero.
Loans and Borrowings	Loans and Borrowings Borrowings are recognized initially at fair value, net of financing costs incurred, and subsequently measured at amortized cost. Any difference between the amounts originally received and the redemption value of the debt is recognized in the consolidated statement of operations over the period to maturity using the effective interest method.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value accounting, as prescribed in ASC Section 825, utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
Going Concern Assessment	Going Concern Assessment Pursuant to ASU 2014-15, the Company has assessed its ability to continue as a going concern for a period of one year from the date of the issuance of these financial statements. Substantial doubt about an entity's ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year from the financial statement issuance date. As shown in the accompanying financial statements, the Company incurred a net loss of $4,479,052 during the year ended December 31, 2016, and as of that date, the Company's current liabilities exceeded its current assets by $6,115,501. Management has evaluated these conditions and determined that a reduction in the working capital deficit subsequent to December 31, 2016 related to a private placement (Note 6) and an extension and amendment to the Company's supplemental line of credit (Note 6), coupled with anticipated increased revenues from the Company's non-operated and operated properties, will allow the Company to meet its maturing debt and interest obligations and continue as a going concern through March 31, 2018. As part of the analysis, the Company considered selective participation in certain non-operated drilling programs based on availability of working capital and the timing of production related cash flows.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Standards Adopted in 2016 Debt Issuance Costs —In April 2015, the FASB issued updated guidance which changes the presentation of debt issuance costs in the financial statements. Under this updated guidance, debt issuance costs are presented on the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. In August 2015, the FASB subsequently issued a clarification as to the handling of debt issuance costs related to line-of-credit arrangements that allows the presentation of these costs as an asset. The standards update was effective for interim and annual periods beginning after December 15, 2015. The Company adopted this standards update, as required, effective January 1, 2016. The adoption of this standards update did not affect the Company's method of amortizing debt issuance costs and did not have a material impact on its financial statements. Measurement-Period Adjustments —In September 2015, the FASB issued updated guidance that eliminates the requirement to restate prior periods to reflect adjustments made to provisional amounts recognized in a business combination. The updated guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The standards update was effective prospectively for interim and annual periods beginning after December 15, 2015, with early adoption permitted. The Company adopted this standard update, as required, effective January 1, 2016, which did not have a material impact on its financial statements. Stock Compensation —In March 2016, the FASB issued updated guidance on share-based payment accounting. The standards update is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The standards update is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. The Company elected to early-adopt this standards update as of April 1, 2016 in connection with its initial grant of awards under the Company's 2015 Equity Incentive Plan. The Company has elected to record the impact of forfeitures on compensation cost as they occur. The Company is also permitted to withhold income taxes upon settlement of equity-classified awards at up to the maximum statutory tax rates. There was no retrospective adjustment as the Company did not have any forfeitures nor settlements outstanding equity awards prior to adoption. Going Concern Analysis —In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40)." The new guidance addresses management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and in certain circumstances to provide related footnote disclosures. The standard is effective for annual periods ending after December 15, 2016 and for annual and interim periods thereafter. The Company adopted this standard as required, which did not have a material impact on its financial statements.
Recent Accounting Pronouncements Not Yet Adopted	Recent Accounting Pronouncements Not Yet Adopted Various accounting standards and interpretations were issued in 2016 with effective dates subsequent to December 31, 2016. The Company has evaluated the recently issued accounting pronouncements that are effective in 2016 and believe that none of them will have a material effect on the Company's financial position, results of operations or cash flows when adopted. In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, "Revenue from Contracts with Customers." The standard requires an entity to recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 will supersede most of the existing revenue recognition requirements in US GAAP when it becomes effective and is required to be adopted using one of two retrospective application methods. In August 2015, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers—Deferral of the Effective Date," which approved a one year deferral of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted as of the original effective date for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the method of adoption and impact this standard will have on its financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2018. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of the new guidance on its financial statements. Further, the Company is monitoring the joint standard-setting efforts of the FASB and the International Accounting Standards Board. There are a large number of pending accounting standards that are being targeted for completion in 2017 and beyond, including, but not limited to, standards relating to revenue recognition, accounting for leases, fair value measurements, accounting for financial instruments, disclosure of loss contingencies and financial statement presentation. Because these pending standards have not yet been finalized, at this time the Company is not able to determine the potential future impact that these standards will have, if any, on its financial position, results of operations or cash flows.

BASIS OF PRESENTATION AND SUM24

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of Potentially Antidilutive Securities Excluded From Computation of Earnings Per Share	2016 2015 Exercisable stock options Warrants issued to underwriter — Warrants issued to convertible note holders — Warrants issued to placement agent—convertible note offering — Shares underlying convertible notes — Total

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
ACQUISITIONS (Tables)	Dec. 31, 2016
PDC Assets
Summary of Consideration Transferred, Fair Value of Assets Acquired and Liabilities Assumed	December 31, Consideration: Cash Total consideration $ Fair Value of Liabilities Assumed: Current liabilities Asset retirement obligations Total consideration plus liabilities assumed $ Fair Value of Assets Acquired: Proved crude oil and gas properties Unproved crude oil and gas properties Amount attributable to assets acquired $
Pro forma Financial Information	Year Ended December 31, 2016 2015 Crude oil and natural gas revenues $ $ Net income (loss) $ ) $ ) Net income (loss) per common share basic and diluted $ ) $ )
Crimson Assets
Summary of Consideration Transferred, Fair Value of Assets Acquired and Liabilities Assumed	December 31, Consideration: Cash Total consideration $ Fair Value of Liabilities Assumed: Current liabilities Asset retirement obligations Total consideration plus liabilities assumed $ Fair Value of Assets Acquired: Current assets Proved crude oil and gas properties Unproved crude oil and gas properties Amount attributable to assets acquired $
Pro forma Financial Information	Year Ended December 31, 2016 2015 Crude oil and natural gas revenues $ $ Net Loss $ ) $ ) Net income (loss) per common share basic and diluted $ ) $ )

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
PROPERTY, PLANT AND EQUIPMENT (Tables)	Dec. 31, 2016
PROPERTY, PLANT AND EQUIPMENT
Property and equipment	December 31, 2016 2015 Property, Plant and Equipment $ $ Accumulated Depreciation ) ) Total $ $

CRUDE OIL AND NATURAL GAS PRO27

CRUDE OIL AND NATURAL GAS PROPERTIES (Tables)	12 Months Ended
CRUDE OIL AND NATURAL GAS PROPERTIES (Tables)	Dec. 31, 2016
CRUDE OIL AND NATURAL GAS PROPERTIES
Components of Aggregate Capitalized Costs	As of December 31, 2016 2015 Proved oil and gas properties $ $ Unproved oil and gas properties(1) Wells in progress(2) Total capitalized costs Accumulated depletion depreciation and amortization ) ) Net capitalized costs $ $ (1) Unproved oil and gas properties represent unevaluated costs the Company excludes from the amortization base until proved reserves are established or impairment is determined. (2) Costs from wells in progress are excluded from the amortization base until production commences.
Components of Costs Incurred in Crude Oil and Natural Gas Activities	December 31, 2016 2015 Exploration costs $ $ Development costs Acquisition of properties Proved — Unproved Total $ $

DEBT (Tables)

DEBT (Tables)	12 Months Ended
DEBT (Tables)	Dec. 31, 2016
DEBT
Schedule of Convertible Notes	December 31, 2016 2015 Face amount of convertible notes $ $ — Unamortized original issuer discount ) — Unamortized discount related to beneficial conversion feature ) — Unamortized discount related to warrants issued ) — Total $ $ —

ASSET RETIREMENT OBLIGATION (Ta

ASSET RETIREMENT OBLIGATION (Tables)	12 Months Ended
ASSET RETIREMENT OBLIGATION (Tables)	Dec. 31, 2016
ASSET RETIREMENT OBLIGATION
Reconciliation of the Asset Retirement Obligation	December 31, 2016 2015 Asset retirement obligation, beginning of year $ $ Liabilities settled — Liabilities incurred — Revisions in estimated liabilities — — Accretion Asset retirement obligation, end of year $ $

ACCOUNTS PAYABLE AND ACCRUED 30

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	12 Months Ended
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	Dec. 31, 2016
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Components of Accounts Payable and Accrued Liabilities	December 31, 2016 2015 Trade payables and accrued liabilities $ $ Accrued interest payable Liabilities incurred in connection with acquisition of crude oil and natural gas properties — Crude oil and natural gas distributions payable Total $ $

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
SHAREHOLDERS' EQUITY (Tables)	Dec. 31, 2016
SHAREHOLDERS' EQUITY
Summary of Warrants Outstanding	The table below summarizes warrants outstanding as of December 31, 2016: Shares Underlying Exercise Price Expiration Date $ 11/12/2020 $ 12/31/2019 $ 12/31/2021

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	12 Months Ended
STOCK BASED COMPENSATION (Tables)	Dec. 31, 2016
STOCK BASED COMPENSATION
Summary of Stock Option Activity	Number of Weighted Remaining Outstanding Options, December 31, 2014 $ Granted Exercised — — — Forfeited — — — Outstanding, December 31, 2015 $ Exercisable, December 31, 2015 $ Granted Exercised — — — Forfeited — — — Outstanding, December 31, 2016 $ Exercisable, December 31, 2016 $
Summary of Fair Value Assumptions	December 31, December 31, Expected option term—years 1.5 - 2.5 1.5 Weighted-average risk-free interest rate 0.94 - 1.31% 0.70 - 1.23% Expected dividend yield 0 0 Weighted-average volatility 142 - 214% 158 - 188% Forfeiture rate 0 0

PROVISION FOR INCOME TAXES (Tab

PROVISION FOR INCOME TAXES (Tables)	12 Months Ended
PROVISION FOR INCOME TAXES (Tables)	Dec. 31, 2016
PROVISION FOR INCOME TAXES
Components of Deferred Tax Assets and Liabilities	Year Ended December 31, 2016 2015 Deferred tax assets—current: Exploration costs $ — $ — Deferred tax assets—noncurrent: NOL carryover Stock based compensation Asset retirement obligation Total deferred tax assets Deferred tax liabilities—current: Prepaid expenses — ) Property and equipment ) — Impairment, intangible drilling costs and other exploration costs capitalized ) ) Total deferred tax liabilities ) ) Net deferred tax assets Valuation allowance ) ) Net deferred tax assets $ — $ —
Schedule of Effective Income Tax Rate Reconciliation	Year Ended December 31, 2016 2015 Tax at statutory federal rate $ ) $ ) Permanent difference State taxes, net of federal ) ) Depletion and impairment — ) Change in valuation allowance Other ) Provision (benefit) for income taxes $ — $ —

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES
Operating Lease Agreement Schedule	Year ending December 31, Amount 2017 $ 2018 2019 2020 2021 $

UNAUDITED CRUDE OIL AND NATUR35

UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2016
UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION
Schedule of changes in proved developed reserves	Oil Natural Gas NGLs Total Proved Reserves: Balance as of December 31, 2013 — — — — Revisions of previous estimates — — — — Extensions and discoveries — — Sales of reserves in place — — — — Improved recovery — — — — Purchase of reserves — — — — Production ) — — ) Balance as of December 31, 2014 — — Revisions of previous estimates ) — — ) Extensions and discoveries — — — — Sales of reserves in place — — — — Improved recovery — — — — Purchase of reserves — — — — Production ) — — ) Balance as of December 31, 2015 — — — — Revisions of previous estimates — — — — Extensions and discoveries Sales of reserves in place — — — — Improved recovery — — — — Purchase of reserves Production ) ) ) ) Balance as of December 31, 2016 Proved Developed Reserves, included above Balance as of December 31, 2014 — — Balance as of December 31, 2015 — — — — Balance as of December 31, 2016 Proved Undeveloped Reserves, included above Balance as of December 31, 2014 — — — — Balance as of December 31, 2015 — — — — Balance as of December 31, 2016
Schedule of standardized measure of discounted future net cash flows	The following are the principal sources of change in the standardized measure (in thousands): For the years ended 2016 2015 2014 Future cash inflows $ $ $ Future cash outflows: Production cost ) ) ) Development cost ) — — Future income tax ) — — Future net cash flows Adjustment to discount future annual net cash flows at 10% ) ) — Standardized measure of discounted future net cash flows $ $ — $
Schedule of changes in standardized measure of estimated discounted future net cash flows	For the years ended 2016 2015 2014 Standardized measure, beginning of year $ — $ $ — Sales of oil and gas, net of production cost ) ) — Net change in sales prices, net of production cost — — Discoveries, extensions and improved recoveries — Change in future development costs ) — — Development costs incurred during the period that reduced future development cost — — — Sales of reserves in place — — — Revisions of quantity estimates — ) — Accretion of discount — — Net change in income tax ) — — Purchase of reserves — — Changes in timing of rates of production — — Standardized measure, end of year $ $ — $

BASIS OF PRESENTATION AND SUM36

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Loss Per Common Share
Potentially dilutive securities excluded from the earnings per share calculation	5,985,180	2,200,000
Deferred Offering Costs.
Deferred offering costs charged to operations	$ 544,070
Deferred offering costs	0
Asset Impairment
Loss on impairment of crude oil and natural gas properties	116,303	$ 154,776
Reserve depletion
Depletion expense	59,262	$ 9,898
Drilling Advances - related party
Drilling advances - related party	$ 234,452
Share Based Compensation
Expected dividend yield		0.00%
Common Stock
Share Based Compensation
Expected dividend yield	0.00%
Exercisable Stock Options
Loss Per Common Share
Potentially dilutive securities excluded from the earnings per share calculation	3,010,000	2,200,000
Warrants issued to underwriter
Loss Per Common Share
Potentially dilutive securities excluded from the earnings per share calculation	255,600
Warrants issued to convertible note holders
Loss Per Common Share
Potentially dilutive securities excluded from the earnings per share calculation	1,294,987
Warrants issued to placement agent - convertible note offering
Loss Per Common Share
Potentially dilutive securities excluded from the earnings per share calculation	129,526
Shares underlying convertible notes
Loss Per Common Share
Potentially dilutive securities excluded from the earnings per share calculation	1,295,067

BASIS OF PRESENTATION AND SUM37

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value of Financial Instruments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value of Financial Instruments
Net loss	$ 4,479,052	$ 1,523,375
ASU 2014-15
Fair Value of Financial Instruments
Net loss	4,479,052
Amount of current liabilities exceeds current assets	$ 6,115,501

ACQUISITIONS - PDC Acquisition

ACQUISITIONS - PDC Acquisition (Details)	12 Months Ended
ACQUISITIONS - PDC Acquisition (Details)	Dec. 31, 2016USD ($)$ / shares	Dec. 31, 2015USD ($)$ / shares	Jun. 30, 2016aitem	May 31, 2015a
Acquisitions
Net purchase price	$ 4,820,742
PDC Assets \| Oil and Gas Assets
Consideration:
Cash	2,260,890
Total consideration	2,260,890
Fair Value of Liabilities Assumed:
Current liabilities	93,225
Asset retirement obligations	542,611
Total consideration plus liabilities assumed	2,896,726
Fair Value of Assets Acquired:
Proved crude oil and gas properties	2,473,082
Unproved crude oil and gas properties	423,644
Amount attributable to assets acquired	2,896,726
PDC Assets \| Pro Forma \| Oil and Gas Assets
Pro forma information
Crude oil and natural gas revenues	466,138	$ 423,653
Net income (loss)	$ (4,498,325)	$ (1,439,823)
Net income (loss) per common share: Basic and diluted (dollars per share) \| $ / shares	$ (0.21)	$ (0.08)
Adams County, Colorado \| Providence Energy Operators, LLC \| Participation Agreement
Acquisitions
Acres, gross \| a				23,100
Adams County, Colorado \| PDC Assets
Acquisitions
Acres, net \| a			1,410
Adams County, Colorado \| PDC Assets \| Oil and Gas Assets
Acquisitions
Acres, gross \| a			3,652
Acres, net \| a			1,410
Number of producing wells \| item			35
Adams County, Colorado \| PDC Assets \| Oil and Gas Assets \| Providence Energy Operators, LLC \| Participation Agreement
Acquisitions
Ownership interest acquired by the option holder (as a percent)			50.00%

ACQUISITIONS - Crimson Acquisit

ACQUISITIONS - Crimson Acquisition (Details)	12 Months Ended
ACQUISITIONS - Crimson Acquisition (Details)	Dec. 31, 2016USD ($)$ / shares	Dec. 31, 2015USD ($)$ / shares	Dec. 22, 2016aitem	Dec. 01, 2016	May 31, 2015
Acquisitions
Net purchase price	$ 4,820,742
Providence Energy Operators, LLC
Acquisitions
Related party, ownership percentage					13.70%
Oil and Gas Assets \| Crimson Assets
Consideration:
Cash	2,559,852
Total consideration	2,559,852
Fair Value of Liabilities Assumed:
Current liabilities	13,938
Asset retirement obligations	337,468
Total consideration plus liabilities assumed	2,911,258
Fair Value of Assets Acquired:
Current assets	20,907
Proved crude oil and gas properties	899,591
Unproved crude oil and gas properties	1,990,760
Amount attributable to assets acquired	2,911,258
Oil and Gas Assets \| Crimson Assets \| Providence Energy Operators, LLC \| Participation Agreement
Acquisitions
Ownership interest acquired by the option holder (as a percent)			50.00%	50.00%
Oil and Gas Assets \| Crimson Assets \| Pro Forma
Pro forma information
Crude oil and natural gas revenues	595,074	$ 237,035
Net income (loss)	$ (4,437,877)	$ (1,551,850)
Net income (loss) per common share: Basic and diluted (dollars per share) \| $ / shares	$ (0.20)	$ (0.09)
Oil and Gas Assets \| Crimson Assets \| Weld and Adams Counties, Colorado
Acquisitions
Acres, gross \| a			15,514
Acres, net \| a			5,609
Number of producing wells \| item			32
Oil and Gas Assets \| Crimson Assets \| Weld and Adams Counties, Colorado \| Providence Energy Operators, LLC
Acquisitions
Net purchase price	$ 2,538,945
Oil and Gas Assets \| Crimson Assets \| Weld and Adams Counties, Colorado \| Providence Energy Operators, LLC \| Maximum
Acquisitions
Post-closing adjustment period	90 days

ACQUISITIONS - Other Acquisitio

ACQUISITIONS - Other Acquisitions (Details)

Oct. 14, 2016USD ($)item

Apr. 14, 2016USD ($)a

Mar. 31, 2016USD ($)aitem

Mar. 10, 2016USD ($)

Jun. 01, 2015USD ($)

May 31, 2015a

Dec. 31, 2016USD ($)

Dec. 31, 2015USD ($)a

Dec. 31, 2016a

Oct. 13, 2016a

Jun. 30, 2016aitem

May 15, 2015a

Acquisitions

Amount borrowed on line of credit to fund acquisition

$ 7,105,000

Purchase price

2,854,475

$ 715,595

Net purchase price

4,820,742

Proceeds from Lines of Credit

7,105,000

Assigned interest in oil and gas property recorded as non-cash payment of line of credit

$ 287,815

Adams County, Colorado | Providence Energy Operators, LLC | Participation Agreement

Acquisitions

Acres, gross | a

23,100

Adams County, Colorado | Providence Energy Operators, LLC | Participation Agreement | Maximum

Acquisitions

Participation Agreement acquisition interest in any oil and gas development acres in area of mutual interest (as a percent)

50.00%

Adams County, Colorado | PDC Assets

Acquisitions

Acres, net | a

1,410

Oil and Gas Leases | Todd Creek Farms

Acquisitions

Acres, net | a

189

Net purchase price

$ 288,056

Surface Rights and Easements on Lands | Todd Creek Farms

Acquisitions

Purchase price

$ 184,360

Oil and Gas Assets | Todd Creek Farms

Acquisitions

Acres, gross | a

1,460

Acres, net | a

244

Net acres acquired during the period | a

Oil and Gas Assets | Todd Creek Farms | Kingdom Resources LLC | Kingdom Lease

Acquisitions

Purchase price

$ 785,630

Net revenue interest acquired (as a percent)

80.00%

Acres, gross | a

1,280

Acres, net | a

171

Acquisitions

Net reduction of acquisition costs due to the Participation Agreement

$ 287,815

Gross reduction of acquisition costs due to the Participation Agreement

392,815

Acquisition costs one-time lender credit

$ 105,000

Reduction of acquisition costs due to the Participation Agreement (as a percent)

50.00%

Assigned interest in oil and gas property recorded as non-cash payment of line of credit

$ 287,815

Acquisitions

Participation Agreement acquisition interest in any oil and gas development acres in area of mutual interest (as a percent)

50.00%

Oil and Gas Assets | Land Adjacent to Todd Creek Farms

Acquisitions

Acres, net | a

160

Working interest in well (as a percent)

50.00%

Number of producing wells | item

Oil and Gas Assets | Land Adjacent to Todd Creek Farms | Providence Energy Operators, LLC | Participation Agreement

Acquisitions

Net purchase price

$ 590,274

Oil and Gas Assets | Adams County, Colorado | PDC Assets

Acquisitions

Acres, gross | a

3,652

Acres, net | a

1,410

Number of producing wells | item

Oil and Gas Assets | Adams County, Colorado | PDC Assets | Providence Energy Operators, LLC | Participation Agreement

Acquisitions

Ownership interest acquired by the option holder (as a percent)

50.00%

Royalty Interests | Todd Creek Farms

Acquisitions

Amount borrowed on line of credit to fund acquisition

$ 1,550,000

Number of wells included in the royalty interest acquisition | item

Proceeds from Lines of Credit

$ 1,550,000

Supplemental Line Of Credit | Providence Energy Partners III, LP

Acquisitions

Amount borrowed on line of credit to fund acquisition

7,105,000

Proceeds from Lines of Credit

$ 7,105,000

Revolving Credit Facility | Supplemental Line Of Credit | Wattenberg Field | Providence Energy Partners III, LP

Acquisitions

Acres, net | a

170

Revolving Credit Facility | Supplemental Line Of Credit | Oil and Gas Leases | Wattenberg Field | Providence Energy Partners III, LP

Acquisitions

Acres, gross | a

278

Acres, net | a

170

Working interest in well (as a percent)

10.00%

PROPERTY, PLANT AND EQUIPMENT41

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
PROPERTY, PLANT AND EQUIPMENT
Property, Plant and Equipment	$ 47,870	$ 4,385
Accumulated Depreciation	(8,328)	(2,557)
Total	$ 39,542	$ 1,828

PROPERTY, PLANT AND EQUIPMENT -

PROPERTY, PLANT AND EQUIPMENT - Depreciation expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
PROPERTY, PLANT AND EQUIPMENT
Depreciation expense	$ 5,772	$ 963

CRUDE OIL AND NATURAL GAS PRO43

CRUDE OIL AND NATURAL GAS PROPERTIES - Aggregate Capitalized Costs (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
CRUDE OIL AND NATURAL GAS PROPERTIES
Proved oil and gas properties	$ 8,132,881	$ 724,058
Unproved oil and gas properties	4,092,550	715,594
Wells in progress	2,168,092	40,505
Total capitalized costs	14,393,523	1,480,157
Accumulated depletion, depreciation and amortization	(783,320)	(724,058)
Crude oil and natural gas properties, net	$ 13,610,203	$ 756,099

CRUDE OIL AND NATURAL GAS PRO44

CRUDE OIL AND NATURAL GAS PROPERTIES - Costs Incurred in Crude Oil and Natural Gas Activities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CRUDE OIL AND NATURAL GAS PROPERTIES
Exploration costs	$ 2,700	$ 10,407
Development costs	3,038,339	177,126
Acquisition of properties:
Proved	3,630,195
Unproved	4,045,022	715,595
Total	10,716,256	903,128
Depletion of oil and gas properties	$ 59,262	$ 9,898

DEBT - Lines of Credit (Details

DEBT - Lines of Credit (Details) - USD ($)	12 Months Ended
DEBT - Lines of Credit (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Mar. 30, 2017	Oct. 13, 2016	May 13, 2015
Line of Credit Facilities
Accrued interest	$ 302,477	$ 48,602
Amount borrowed on line of credit to fund acquisition	7,105,000
Interest expense	320,950	$ 48,602
Initial Line Of Credit
Line of Credit Facilities
Line of credit outstanding balance	5,000,000
Accrued interest	302,477
Amount borrowed on line of credit to fund acquisition	3,937,815
Interest expense	253,875
Initial Line Of Credit \| Providence Energy Operators, LLC
Line of Credit Facilities
Borrowing capacity of the revolving line of credit					$ 5,000,000
Line of credit interest rate (as a percent)					8.00%
Supplemental Line Of Credit \| Providence Energy Partners III, LP
Line of Credit Facilities
Borrowing capacity of the revolving line of credit				$ 10,000,000
Line of credit outstanding balance	7,088,698
Deferred financing fees	16,302
Accrued interest	50,422
Amount borrowed on line of credit to fund acquisition	7,105,000
Interest expense	$ 50,422
Supplemental Line Of Credit \| Providence Energy Partners III, LP \| Subsequent Event
Line of Credit Facilities
Agreed to repay outstanding principal			$ 3,552,500

DEBT - Convertible Debt (Detail

DEBT - Convertible Debt (Details) - USD ($)	Jan. 30, 2017	Jan. 20, 2017	Dec. 31, 2016	Dec. 30, 2016	Feb. 28, 2017	Dec. 31, 2016
Convertible notes
Net proceeds from issuance of convertible notes						$ 1,737,340
Value of common stock warrants						174,475
Convertible Notes
Convertible notes
Units sold in private placement offering			38.85
Gross proceeds from issuance of convertible notes			$ 1,942,600
Net proceeds from issuance of convertible notes			1,747,340
Face amount of individual promissory notes in each unit			1,942,600			1,942,600
Total face amount of promissory note series			1,942,600			1,942,600
Value of common stock warrants			174,475
Debt discount related to intrinsic value of the beneficial conversion feature			$ 748,910			$ 748,910
Convertible Notes \| Subsequent Event
Convertible notes
Units sold in private placement offering					200
Gross proceeds from issuance of convertible notes	$ 10,000,000				$ 10,000,000
Convertible Notes \| Common Stock Purchase Warrants Issued With Convertible Notes
Convertible notes
Warrants to purchase common stock			1,294,987			1,294,987
Convertible Notes \| Common Stock Warrants Issued to Placement Agent
Convertible notes
Warrants to purchase common stock			129,526			129,526
Convertible Notes \| Common Stock Warrants Issued to Placement Agent \| Subsequent Event
Convertible notes
Warrants to purchase common stock	666,797
Warrants exercise price (in dollars per share)	$ 1.50
Convertible Notes \| First Closing Of Private Placement
Convertible notes
Units sold in private placement offering				200
Interest rate				10.00%
Face amount of individual promissory notes in each unit				$ 50,000
Total face amount of promissory note series				$ 10,000,000
Notes conversion price (in dollars per share)				$ 1.50
Debt discount related to intrinsic value of the beneficial conversion feature			$ 750,963			$ 750,963
Convertible Notes \| First Closing Of Private Placement \| Common Stock Purchase Warrants Issued With Convertible Notes
Convertible notes
Warrants to purchase common stock				33,333
Number of shares called by each warrant			1			1
Warrants exercise price (in dollars per share)			$ 3			$ 3
Convertible Notes \| Second Closing Of Private Placement \| Subsequent Event
Convertible notes
Units sold in private placement offering		66.509
Gross proceeds from issuance of convertible notes		$ 3,325,450
Face amount of individual promissory notes in each unit		$ 2,216,978
Convertible Notes \| Second Closing Of Private Placement \| Common Stock Purchase Warrants Issued With Convertible Notes \| Subsequent Event
Convertible notes
Warrants to purchase common stock		2,216,978
Convertible Notes \| Final Closing Of Private Placement \| Subsequent Event
Convertible notes
Units sold in private placement offering	94.64
Gross proceeds from issuance of convertible notes	$ 4,731,950
Face amount of individual promissory notes in each unit	$ 3,154,601
Convertible Notes \| Final Closing Of Private Placement \| Common Stock Purchase Warrants Issued With Convertible Notes \| Subsequent Event
Convertible notes
Warrants to purchase common stock	3,154,601

DEBT - Convertible Debt Compone

DEBT - Convertible Debt Components (Details) - Convertible Notes	Dec. 31, 2016USD ($)
Convertible notes
Face amount of convertible notes	$ 1,942,600
Unamortized original issuer discount	(204,703)
Unamortized discount related to beneficial conversion feature	(748,910)
Unamortized discount related to warrants issued	(173,998)
Total	$ 814,989

ASSET RETIREMENT OBLIGATION (De

ASSET RETIREMENT OBLIGATION (Details) - USD ($)	12 Months Ended
ASSET RETIREMENT OBLIGATION (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Assumptions used to determine the fair value of the asset retirement obligation
Assumed inflation rate (as a percent)	2.00%
Average estimated asset life	13 years
Credit adjusted risk free interest rate (as a percent)	9.48%
Activity related to asset retirement obligation
Asset retirement obligation, beginning of year	$ 34,776	$ 31,715
Liabilities settled	1,990
Liabilities incurred	878,170
Accretion	30,483	3,061
Asset retirement obligation, end of year	$ 945,419	$ 34,776

ACCOUNTS PAYABLE AND ACCRUED 49

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Trade payables and accrued liabilities	$ 2,416,551	$ 263,988
Accrued interest payable	302,477	48,602
Liabilities incurred in connection with acquisition of crude oil and natural gas properties	290,078
Crude oil and natural gas distributions payable	144,526	949
Total	$ 3,153,632	$ 313,539

SHAREHOLDERS' EQUITY - Common S

SHAREHOLDERS' EQUITY - Common Stock (Details)	Dec. 05, 2016$ / sharesshares	Nov. 11, 2016$ / sharesshares	Aug. 30, 2016$ / sharesshares	Aug. 22, 2016$ / sharesshares	Jul. 22, 2016$ / sharesshares	Jul. 05, 2016$ / sharesshares	May 04, 2016director$ / sharesshares	Apr. 08, 2016$ / sharesshares	Jan. 31, 2016item$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)item$ / sharesshares
Common Stock
Common stock shares authorized										100,000,000	100,000,000
Common stock par value (in dollars per share) \| $ / shares										$ 0.001	$ 0.001
Common stock shares issued										21,964,282	21,633,191
Common stock shares outstanding										21,964,282	21,633,191
Net proceeds from issuance of common stock \| $										$ 95,000	$ 3,834,001
Common Stock
Common Stock
Common stock shares authorized										100,000,000	100,000,000
Common stock par value (in dollars per share) \| $ / shares										$ 0.001	$ 0.001
Common stock shares issued										21,964,282	21,633,191
Common stock shares outstanding										21,964,282	21,633,191
Common stock number of shares sold or issued		14,425
Common stock price (in dollars per share) \| $ / shares		$ 1.85
Common Stock \| Directors
Common Stock
Common stock number of shares sold or issued						25,000	50,000
Common stock price (in dollars per share) \| $ / shares						$ 1.60	$ 1.01
Number of directors issued stock \| director							2
Common Stock \| IPO
Common Stock
Shares issued											4,600,000
Gross proceeds \| $											$ 4,174,000
Offering costs \| $											$ 364,999
Common Stock \| IPO At $1.00 Per Share
Common Stock
Shares issued											340,000
Share price (in dollars per share) \| $ / shares											$ 1
Common Stock \| IPO At $0.90 Per Share
Common Stock
Shares issued											4,260,000
Share price (in dollars per share) \| $ / shares											$ 0.90
Common Stock \| Private Placement
Common Stock
Shares issued											25,000
Share price (in dollars per share) \| $ / shares											$ 1
Common stock number of shares sold or issued									95,000
Common stock price (in dollars per share) \| $ / shares									$ 1
Number of accredited investors in the transaction \| item									1		1
Common Stock \| Investor Relations Agreement
Common Stock
Common stock number of shares sold or issued			50,000	8,333	8,333			50,000
Common stock price (in dollars per share) \| $ / shares			$ 1.44	$ 1.40	$ 1.65			$ 0.73
Common Stock \| Exchange of interests in oil and gas assets in Buck Peak prospect
Common Stock
Common stock number of shares sold or issued	30,000
Common stock price (in dollars per share) \| $ / shares	$ 1.89

SHAREHOLDERS' EQUITY - Preferre

SHAREHOLDERS' EQUITY - Preferred Stock and Warrants (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 30, 2016	Dec. 31, 2015	Nov. 20, 2015
Preferred Stock
Preferred stock shares authorized	10,000,000		10,000,000
Preferred stock par value (in dollars per share)	$ 0.01		$ 0.01
Preferred stock shares issued	0		0
Preferred Stock
Preferred Stock
Preferred stock shares authorized	10,000,000
Preferred stock par value (in dollars per share)	$ 0.01
Preferred stock shares issued	0		0
Preferred stock shares outstanding	0		0
Warrants
Warrants
Warrants outstanding (in shares)	1,680,113
Warrants \| Exercise Price $1.25
Warrants
Warrants outstanding (in shares)	255,600
Warrants issued (in shares)				255,600
Warrants exercisable expire date	Nov. 12, 2020
Warrants exercise price (in dollars per share)	$ 1.25
Warrants \| Exercise Price $3.00
Warrants
Warrants outstanding (in shares)	1,294,987
Warrants issued (in shares)		1,294,987
Warrants exercisable expire date	Dec. 31, 2019
Warrants exercise price (in dollars per share)	$ 3
Warrants \| Exercise Price $1.50
Warrants
Warrants outstanding (in shares)	129,526
Warrants issued (in shares)		129,516
Warrants exercisable expire date	Dec. 31, 2021
Warrants exercise price (in dollars per share)	$ 1.50

STOCK-BASED COMPENSATION - Acti

STOCK-BASED COMPENSATION - Activity Summary (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Aug. 18, 2016	Aug. 17, 2016
STOCK-BASED COMPENSATION
Exercise price (in dollars per share)	$ 1.16	$ 1
Number of Shares
Outstanding Number of Options, Beginning balance (in shares)	2,275,000	2,000,000
Options Granted (in shares)	2,400,000	275,000
Outstanding Number of Options, Ending balance (in shares)	4,675,000	2,275,000	2,000,000
Exercisable, End of period (in shares)	3,010,000	2,200,000
Weighted Average Exercise Price
Outstanding, Beginning, Weighted-Average Exercise Price (in dollars per share)	$ 0.33	$ 0.25
Options granted (in dollars per share)	1.16	1
Outstanding, Ending, Weighted-Average Exercise Price (in dollars per share)	0.76	0.33	$ 0.25
Exercisable Weighted Average Exercise Price (in dollars per share)	$ 0.54	$ 0.30
Remaining Contractual Term (Years)
Contractual Life of Outstanding Options	5 years 4 months 21 days	6 years 6 months	7 years 11 months 16 days
Contractual Life of Outstanding Options, Granted	5 years 4 months 2 days	2 years 10 months 24 days
Exercisable Average Remaining Contractual Life in Years	5 years 11 months 19 days	6 years 8 months 19 days
Stock Compensation Plan
STOCK-BASED COMPENSATION
Options granted to employees, directors and consultants	2,275,000
Amended and Restated PetroShare Corp. Equity Incentive Plan \| Stock Compensation Plan
STOCK-BASED COMPENSATION
Shares reserved for issuance				10,000,000
PetroShare Corp. Equity Incentive Plan \| Stock Compensation Plan
STOCK-BASED COMPENSATION
Shares reserved for issuance					5,000,000
Options granted to employees, directors and consultants		275,000
Exercise price (in dollars per share)		$ 1
Option expiration period		3 years
Weighted Average Exercise Price
Options granted (in dollars per share)		$ 1

STOCK BASED COMPENSATION - Assu

STOCK BASED COMPENSATION - Assumptions (Details) - USD ($)	12 Months Ended
STOCK BASED COMPENSATION - Assumptions (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Pricing model assumptions
Expected dividend yield	$ 0
Weighted-average risk-free interest rate, minimum	0.94%	0.70%
Weighted-average risk-free interest rate, maximum	1.31%	1.23%
Expected dividend yield		0.00%
Weighted-average volatility, minimum (as a percent)	142.00%	158.00%
Weighted-average volatility, maximum (as a percent)	214.00%	188.00%
Forfeiture rate (as a percent)	0.00%	0.00%
Minimum
Pricing model assumptions
Expected option term - years	1 year 6 months	1 year 6 months
Maximum
Pricing model assumptions
Expected option term - years	2 years 6 months

STOCK BASED COMPENSATION - Expe

STOCK BASED COMPENSATION - Expense and Unvested (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
STOCK BASED COMPENSATION
Share based compensation	$ 1,140,967	$ 191,205
Unvested share based compensation	$ 1,434,961

PROVISION FOR INCOME TAXES - De

PROVISION FOR INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
PROVISION FOR INCOME TAXES
Liability for uncertain tax positions	$ 0
Deferred tax assets - noncurrent:
NOL carryover	4,287,567	$ 2,245,166
Stock based compensation	576,808	242,011
Asset retirement obligation	350,333	12,887
Total deferred tax assets	5,214,708	2,500,064
Deferred tax liabilities - current:
Prepaids expenses		(6,464)
Property and equipment	(1,990)
Impairment, intangible drilling costs and other exploration costs capitalized	(1,796,102)	(15,010)
Total deferred tax liabilities	(1,798,092)	(21,474)
Net deferred tax assets	3,416,616	2,478,590
Valuation allowance	$ (3,416,616)	$ (2,478,590)

PROVISION FOR INCOME TAXES - In

PROVISION FOR INCOME TAXES - Income Tax Reconciliation and NOL (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
PROVISION FOR INCOME TAXES
Tax at statutory federal rate	$ (1,520,524)	$ (517,948)
Permanent difference	2,378	1,203
State taxes, net of federal	(136,847)	(46,551)
Depletion and impairment		(722,959)
Change in valuation allowance	938,026	1,301,164
Other	716,967	$ (14,909)
Operating loss carryforwards	$ 11,570,570

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)	Dec. 30, 2016USD ($)item	May 31, 2015USD ($)ami	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Related Party Transactions
Accrued interest			$ 302,477	$ 48,602
Initial Line Of Credit
Related Party Transactions
Line of credit outstanding balance			5,000,000
Accrued interest			302,477
Providence Energy Operators, LLC
Related Party Transactions
Related party, ownership percentage		13.70%
Providence Energy Operators, LLC \| Revolving Credit Facility \| Initial Line Of Credit
Related Party Transactions
Line of credit borrowing capacity		$ 5,000,000
Line of credit outstanding balance			5,000,000
Accrued interest			$ 302,477
Providence Energy Operators, LLC \| Participation Agreement \| Adams County, Colorado
Related Party Transactions
Gross Acres \| a		23,100
Additional border area around AMI (in miles) \| mi		1
Providence Energy Operators, LLC \| Participation Agreement \| Adams County, Colorado \| Maximum
Related Party Transactions
Participation Agreement acquisition interest in any oil and gas development acres in area of mutual interest (as a percent)		50.00%
Officers And Directors \| Private Placement
Related Party Transactions
Number of officers and directors participated in the private placement \| item	6
Gross proceeds from issuance of convertible notes	$ 500,000

COMMITMENTS AND CONTINGENCIES58

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Apr. 15, 2016	Feb. 25, 2016	Dec. 31, 2016	Dec. 31, 2015
Operating leases and agreements
Lease term			4 years
Future minimum rental payments required under operating lease agreement
2,017			$ 76,014
2,018			103,728
2,019			106,896
2,020			110,064
2,021			27,714
Total			424,416
Lease expense			$ 34,651	$ 31,562
Exercise price (in dollars per share)			$ 1.16	$ 1
Mr. Stephen J. Foley
Future minimum rental payments required under operating lease agreement
Monthly compensation to officer		$ 13,000
Annual compensation to officer		$ 156,000
Renewal period of the employment agreement		1 year
Mr. Fredrick J. Witsell, Officer
Future minimum rental payments required under operating lease agreement
Monthly compensation to officer		$ 13,000
Annual compensation to officer		$ 156,000
Renewal period of the employment agreement		1 year
Mr. Lloyd, Chief Operating Officer
Future minimum rental payments required under operating lease agreement
Monthly compensation to officer		$ 13,000
Annual compensation to officer		$ 156,000
Renewal period of the employment agreement		1 year
Mr.William R. Givan,Vice President
Future minimum rental payments required under operating lease agreement
Monthly compensation to officer	$ 10,833.33
Annual compensation to officer	$ 130,000
Renewal period of the employment agreement	1 year

SUBSEQUENT EVENTS (Details)

Mar. 16, 2017USD ($)a

Feb. 23, 2017USD ($)ashares

Jan. 30, 2017USD ($)$ / sharesshares

Jan. 24, 2017USD ($)

Jan. 20, 2017USD ($)shares

Dec. 31, 2016USD ($)shares

Feb. 28, 2017USD ($)shares

Dec. 31, 2016USD ($)shares

Dec. 31, 2015USD ($)

Mar. 31, 2017USD ($)

Mar. 30, 2017USD ($)

May 31, 2015a

Purchase and Sale Agreement to acquire oil and gas leases

Purchase price

$ 2,854,475

$ 715,595

Supplemental Line Of Credit | Subsequent Event | Providence Energy Partners III, LP

Convertible notes

Agreed to repay outstanding principal

$ 3,552,500

Convertible Notes

Convertible notes

Units sold in private placement offering | shares

38.85

Face amount of individual promissory notes in each unit

$ 1,942,600

Gross proceeds from issuance of convertible notes

$ 1,942,600

Convertible Notes | Subsequent Event

Convertible notes

Units sold in private placement offering | shares

200

Gross proceeds from issuance of convertible notes

$ 10,000,000

Commission on private placement

$ 1,000,000

Convertible Notes | Second Closing Of Private Placement | Subsequent Event

Convertible notes

Units sold in private placement offering | shares

66.509

Face amount of individual promissory notes in each unit

$ 2,216,978

Gross proceeds from issuance of convertible notes

$ 3,325,450

Convertible Notes | Final Closing Of Private Placement | Subsequent Event

Convertible notes

Units sold in private placement offering | shares

94.64

Face amount of individual promissory notes in each unit

$ 3,154,601

Gross proceeds from issuance of convertible notes

$ 4,731,950

Convertible Notes | Common Stock Purchase Warrants Issued With Convertible Notes

Convertible notes

Warrants to purchase common stock | shares

1,294,987

Convertible Notes | Common Stock Purchase Warrants Issued With Convertible Notes | Second Closing Of Private Placement | Subsequent Event

Convertible notes

Warrants to purchase common stock | shares

2,216,978

Convertible Notes | Common Stock Purchase Warrants Issued With Convertible Notes | Final Closing Of Private Placement | Subsequent Event

Convertible notes

Warrants to purchase common stock | shares

3,154,601

Convertible Notes | Common Stock Warrants Issued to Placement Agent

Convertible notes

Warrants to purchase common stock | shares

129,526

Convertible Notes | Common Stock Warrants Issued to Placement Agent | Subsequent Event

Convertible notes

Warrants to purchase common stock | shares

666,797

Warrants exercise price (in dollars per share) | $ / shares

$ 1.50

Oil and Gas Leases | Weld and Adams Counties, Colorado | Subsequent Event

Purchase and Sale Agreement to acquire oil and gas leases

Acres, gross | a

5,879

Acres, net | a

2,930

Net revenue interest acquired (as a percent)

84.00%

Purchase price

$ 2,582,500

Oil and Gas Royalty Interest | Adams County, Colorado | Subsequent Event

Purchase and Sale Agreement to acquire oil and gas leases

Acres, net | a

291

Royalty interest acquired (as a percent)

18.75%

Purchase price

$ 1,138,800

Participation Agreement | Adams County, Colorado | Providence Energy Operators, LLC

Purchase and Sale Agreement to acquire oil and gas leases

Acres, gross | a

23,100

Participation Agreement | Oil and Gas Leases | Weld and Adams Counties, Colorado | Subsequent Event | Providence Energy Operators, LLC

Purchase and Sale Agreement to acquire oil and gas leases

Ownership interest acquired by the option holder (as a percent)

50.00%

Net acres acquired reduced by virtue of participation agreement | a

1,465

Cash payment to acquire oil and gas leases

$ 460,000

Shares issued in acquisition | shares

450,000

Participation Agreement | Oil and Gas Royalty Interest | Adams County, Colorado | Subsequent Event | Providence Energy Operators, LLC

Purchase and Sale Agreement to acquire oil and gas leases

Ownership interest acquired by the option holder (as a percent)

50.00%

UNAUDITED CRUDE OIL AND NATUR60

UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION - Proved Reserves (Details)	12 Months Ended
	Dec. 31, 2016Boe$ / MMBbls$ / Mcf$ / bblMcfbbl	Dec. 31, 2015Boebbl	Dec. 31, 2014Boeitem$ / MMBbls$ / bblbbl
Proved Reserves, Total:
Balance, beginning of year \| Boe		159
Revisions of previous estimates \| Boe		(122)
Extensions and discoveries \| Boe	6,030,624		250
Purchase of reserves \| Boe	287,999
Production \| Boe	(10,755)	(37)	(91)
Balance, end of year \| Boe	6,307,868		159
Proved Developed Reserves (in energy) \| Boe	740,088		159
Proved Undeveloped Reserves (in energy) \| Boe	5,567,780
Crude oil and NGLs
Proved Reserves, Total:
Unweighted average resulting price (in dollars per barrel and MMBtu) \| $ / bbl	42.75		94.99
Natural gas
Proved Reserves, Total:
Unweighted average resulting price (in dollars per barrel and MMBtu) \| $ / MMBbls	2.48		4.35
Oil (Bbls)
Proved Reserves:
Balance, beginning of year		159
Revisions of previous estimates		(122)
Extensions and discoveries	2,710,437		250
Purchase of reserves	55,669
Production	(4,902)	(37)	(91)
Balance, end of year	2,761,204		159
Proved Reserves, Total:
Proved Developed Reserves (in volume)	260,284		159
Proved Undeveloped Reserve (in volume)	2,500,920
Average resulting price (in dollars per barrel and Mcf) \| $ / bbl	34.09
Number of wells drilled and completed \| item			2
Natural Gas (Mcf)
Proved Reserves:
Extensions and discoveries \| Mcf	10,498,397
Purchase of reserves \| Mcf	1,020,516
Production \| Mcf	(26,058)
Balance, end of year \| Mcf	11,492,855
Proved Reserves, Total:
Proved Developed Reserves (in volume) \| Mcf	1,788,895
Proved Undeveloped Reserve (in volume) \| Mcf	9,703,960
Average resulting price (in dollars per barrel and Mcf) \| $ / Mcf	2.69
NGL's (Bbls)
Proved Reserves:
Extensions and discoveries	1,570,454
Purchase of reserves	62,244
Production	(1,510)
Balance, end of year	1,631,188
Proved Reserves, Total:
Proved Developed Reserves (in volume)	181,655
Proved Undeveloped Reserve (in volume)	1,449,533
Average resulting price (in dollars per barrel and Mcf) \| $ / bbl	14.44

UNAUDITED CRUDE OIL AND NATUR61

UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION - Standardized Measure of Discounted Future Net Cash Flows (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION
Future cash inflows	$ 148,596	$ 5	$ 13
Future cash outflows:
Production cost	(35,038)	(3)	(8)
Development cost	(37,667)
Future income tax	(5,802)
Future net cash flows	70,089	2	5
Adjustment to discount future annual net cash flows at 10%	(27,338)	$ (2)
Standardized measure of discounted future net cash flows	$ 42,751		$ 5

UNAUDITED CRUDE OIL AND NATUR62

UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION - Changes in Standardized Measure of Estimated Discounted Future Net Cash Flows (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION
Standardized measure, beginning of year		$ 5
Sales of oil and gas, net of production cost	$ (126)	(3)
Net change in sales prices, net of production cost	489
Discoveries, extensions and improved recoveries	76,445		$ 5
Change in future development costs	(37,667)
Revisions of quantity estimates		$ (2)
Accretion of discount	130
Net change in income tax	(2,587)
Purchase of reserves	6,021
Changes in timing of rates of production	46
Standardized measure, end of year	$ 42,751		$ 5