PetroShare (PRHRQ) 10-Q 14 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 14, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	PetroShare Corp.
Entity Central Index Key	1,568,079
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		22,654,537
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash	$ 4,659,276	$ 2,449,412
Accounts receivable - joint interest billing	819,208	240,450
Accounts receivable-joint interest billing-related party	447,237	286,226
Accounts receivable - crude oil, natural gas and NGL sales	4,231,817	179,236
Accounts receivable - other		27,876
Deferred equity issuance costs	186,312
Prepaid expenses and other assets	143,824	1,178,081
Total current assets	10,487,674	4,361,281
Crude oil and natural gas properties-using successful efforts method:
Proved crude oil and natural gas properties	15,236,792	8,132,881
Unproved crude oil and natural gas properties	7,634,777	4,092,550
Wells in progress	4,852,118	2,168,092
Less: accumulated depletion and depreciation	(2,765,660)	(783,320)
Crude oil and natural gas properties, net	24,958,027	13,610,203
Property, plant and equipment, net	183,460	39,542
Other assets	53,707	15,758
TOTAL ASSETS	35,682,868	18,026,784
Current liabilities:
Accounts payable and accrued liabilities	10,688,342	3,009,106
Working interest and royalty owners distributions payable	278,889	144,526
Drilling advances - related party	5,236,212	234,452
Line of credit	5,000,000
Supplemental line of credit, net	3,552,500	7,088,698
Total current liabilities	24,755,943	10,476,782
Long term liabilities
Line of credit		5,000,000
Convertible notes payable, net	2,257,060	5,308
Other long term liabilities	111,903	23,128
Asset retirement obligation	1,025,015	945,419
Total liabilities	28,149,921	16,450,637
Shareholders' equity:
Common stock, $0.001 par value, 100,000,000 shares authorized, 22,654,537 and 21,964,282 shares issued and outstanding, respectively	22,655	21,964
Additional paid in capital	20,233,942	11,405,225
Accumulated deficit	(12,723,650)	(9,851,042)
Total Shareholders' Equity	7,532,947	1,576,147
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$ 35,682,868	$ 18,026,784

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
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
Preferred stock shares outstanding	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	22,654,537	21,964,282
Common stock shares outstanding	22,654,537	21,964,282

Condensed Statements of Operati

Condensed Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
REVENUE:
Crude oil sales	$ 3,811,009		$ 5,030,400
Natural gas sales	373,225		575,652
NGL sales	273,268		312,835
Total revenue	4,457,502		5,918,887
COSTS AND EXPENSES:
Lease operating expense	196,474	$ 1,382	428,680	$ 120
Production taxes, gathering and marketing	294,678	4,031	484,640	5,473
Exploration costs	2,483		66,673	2,700
Depreciation, depletion, amortization and accretion	1,553,676	2,314	2,002,769	4,360
Accretion expense	22,667		46,912
Plugging expense	2,075		23,123
Loss on impairment of crude oil and natural gas properties		318		17,039
General and administrative expense	1,676,587	875,344	2,866,669	1,554,920
Total costs and expenses	3,748,640	883,389	5,919,466	1,584,612
Operating (loss) income	708,862	(883,389)	(579)	(1,584,612)
OTHER INCOME (EXPENSE):
Interest income	144	138	246	501
Interest expense	(1,442,475)	(34,950)	(2,872,275)	(56,896)
Total other income (expense)	(1,442,331)	(34,812)	(2,872,029)	(56,395)
Net (loss)	$ (733,469)	$ (918,201)	$ (2,872,608)	$ (1,641,007)
Net (loss) per share:
Basic and diluted (in dollars per share)	$ (0.03)	$ (0.04)	$ (0.13)	$ (0.08)
Weighted average number of shares outstanding:
Basic and diluted (in shares)	22,563,830	21,805,114	22,265,712	21,718,661

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net (loss)	$ (2,872,608)	$ (1,641,007)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depletion and depreciation	2,002,769	2,554
Accretion of asset retirement obligation	46,912	1,807
Accretion of debt discounts	2,251,752
Share based compensation	730,745	714,984
Plugging and abandonment	23,123
Impairment of crude oil and natural gas properties		17,039
Changes in operating assets and liabilities:
Accounts receivable - joint interest billing	(578,758)	298,134
Accounts receivable - joint interest billing - related party	(161,011)	(276,094)
Accounts receivable - crude oil, natural gas and NGL sales	(4,052,581)
Deferred equity issuance costs	(186,312)	(99,829)
Prepaid expenses and other assets	1,024,184	(88,675)
Accounts payable and accrued liabilities	1,300,359	275,156
Accounts payable - working interest partners and royalty owners	134,364	143,232
Drilling advances, net - related party	5,001,760
Net cash provided by (used in) operating activities	4,664,698	(652,699)
Cash flows from investing activities:
Additions of furniture, fixtures and equipment	(164,346)	(14,158)
Development of crude oil and natural gas properties	(3,294,424)	(585,184)
Acquisitions of crude oil and natural gas properties - business combinations		(2,305,917)
Acquisitions of crude oil and natural gas properties	(2,695,226)	(1,173,906)
Net cash (used in) investing activities	(6,153,996)	(4,079,165)
Cash flows from financing activities:
Repayment under supplemental line of credit	(3,552,500)
Borrowings under supplemental line of credit		3,600,000
Convertible notes issued for cash	7,251,662
Common stock issued for cash (net of offering costs)		95,000
Net cash provided by financing activities	3,699,162	3,695,000
Cash:
Net increase (decrease) in cash	2,209,864	(1,036,864)
Cash, beginning of period	2,449,412	3,011,291
Cash, end of period	4,659,276	1,974,427
Supplemental cash flow disclosure:
Cash paid for interest	432,047
Non-cash investing and financing activities:
Acquisition of crude oil and natural gas properties – business combinations		$ 635,837
Development of crude oil and natural gas properties	6,493,513
Issuance of common stock warrants in connection with private placement	809,779
Issuance of common stock for lease acquisition	$ 847,001

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	6 Months Ended
	Jun. 30, 2017
ORGANIZATION AND NATURE OF BUSINESS
ORGANIZATION AND NATURE OF BUSINESS	PetroShare Corp. NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2017 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 in the Denver-Julesburg Basin, or DJ Basin, in northeast Colorado and other parts of the State. The Company’s current operating focus is within the Wattenberg Field of the DJ Basin, which is located primarily in Adams and Weld Counties, Colorado.

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2017
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 interim condensed financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures included are adequate to make the information presented not misleading. In management’s opinion, the Balance Sheets as of June 30, 2017 (unaudited) and December 31, 2016 (see Note 3), the unaudited Statements of Operations for the three and six months ended June 30, 2017 and 2016, and the unaudited Statements of Cash Flows for the six months ended June 30, 2017 and 2016, contained herein, reflect all adjustments, consisting solely of normal recurring items, which are necessary for the fair presentation of the Company’s financial position, results of operations and cash flows on a basis consistent with that of the Company’s prior audited financial statements. However, the results of operations for the interim periods may not be indicative of results to be expected for the full fiscal year. Therefore, these financial statements should be read in conjunction with the audited financial statements and notes thereto and summary of significant accounting policies included in the Company’s annual report on Form 10-K for the year ended December 31, 2016. Except as noted below, there have been no changes to the footnotes from those accompanying the audited consolidated financial statements contained in the Company’s Form 10‑K for the year ended December 31, 2016. Loss Per Share Basic and diluted loss per share 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 June 30, 2017 are as follows: June 30, 2017 Exercisable stock options 3,840,000 Warrants issued to underwriter 255,600 Warrants issued to convertible note holders 3,333,333 Warrants issued to placement agent - convertible note offering 666,600 Shares underlying convertible notes 6,666,666 Total 14,762,199 Capitalized Interest Costs The Company has capitalized certain interest costs related to unproved properties that are currently undergoing activities necessary to prepare them for their intended use. These costs have been capitalized to oil and gas properties. Deferred Equity Issuance 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 an offering, the costs are offset against the proceeds received. Should an offering be terminated, deferred equity issuance costs are charged to operations during the period in which an offering is terminated. As of June 30, 2017, the Company’s deferred equity issuance costs totaled $186,312 ( Note 10) . Debt Discount Costs On January 30, 2017, the Company completed the third and final closing of a private placement of units consisting of common stock purchase warrants and convertible promissory notes with a total aggregate face value of $10,000,000 (Note 7). The convertible promissory notes contain an embedded beneficial conversion feature. The proceeds from the sale of the securities were allocated between the convertible notes and the warrants based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at the time of issuance. The fair value of the beneficial conversion feature, limited to the gross proceeds, has been recorded as a reduction of the carrying value of the convertible promissory notes and is being amortized to interest expense using the effective interest method over the term of the notes. The fair value of warrants issued has been recorded as a reduction to the carrying value of the convertible promissory notes, limited to the gross proceeds, and is being amortized over the term of the notes using the effective interest method. Origination fees paid in cash have been recorded as a reduction in the carrying value of the convertible notes and are being amortized over the term of the notes using the effective interest method. The fair value of warrants issued to the placement agent in connection with the offering have been recorded as a charge to additional paid-in capital. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which establishes a comprehensive new lease standard designed to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous U.S. GAAP. ASU 2016-02 is effective for public businesses for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its financial statements. In March 2016, the FASB issued Accounting Standards Update ("ASU") 2016-09, “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), which intends to improve the accounting for share-based payment transactions. ASU 2016-09 changes several aspects of the accounting for share-based payment award transactions, including: (1) Accounting and Cash Flow Classification for Excess Tax Benefits and Deficiencies, (2) Forfeitures, and (3) Tax Withholding Requirements and Cash Flow Classification. ASU 2016-09 is effective for public businesses for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. We adopted this pronouncement effective January 1, 2017. Upon adoption of this standard, we no longer estimate the total number of awards for which the requisite service period will not be rendered, and effective January 1, 2017, we will began accounting for forfeitures when they occur. The adoption of these provisions did not materially impact the condensed consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which establishes a comprehensive new revenue recognition standard designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under current revenue recognition guidance. In March 2016, the FASB released certain implementation guidance through ASU 2016‑08 (collectively with ASU 2014-09, the "Revenue ASUs") to clarify principal versus agent considerations. The Revenue ASUs allow for the use of either the full or modified retrospective transition method, and the standard will be effective for annual reporting periods beginning after December 15, 2017 including interim periods within that period, with early adoption permitted for annual reporting periods beginning after December 15, 2016. Currently, the Company has not identified any contracts that would require a change from the entitlements method, historically used for certain domestic crude oil and natural gas sales, to the sales method of accounting. The Company is continuing to evaluate the provisions of these ASUs as pertinent to certain sales contracts and in particular as they relates to disclosure requirements. There were various updates recently issued by the FASB, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s reported financial position, results of operations, or cash flows.

REVISION OF PRIOR PERIOD FINANC

REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS	6 Months Ended
	Jun. 30, 2017
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS	NOTE 3—REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS In connection with the preparation of its condensed financial statements for the quarter ended March 31, 2017, the Company identified an error related to the manner in which it accounted for the fair value of convertible promissory notes and warrants issued in the Company’s private placement during December 2016 (Note 7). Specifically, the Company was required to apply the guidance of FASB ASC 470, and more specifically, ASC 470-20-25-2 and ASC 470-20-25-3. On the balance sheet at December 31, 2016, the Company recorded the face value of convertible notes payable issued in connection with the private placement under liabilities, discounted by (i) the value of the original issue discount and (ii) the value of the warrants issued to the placement agent. The Company did not, however, discount the value of the convertible notes payable by the fair value of the warrants issued to individual investors. In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company evaluated the error and determined that the related impact was not material to the Company’s results of operations or financial position for any prior annual or interim period. Accordingly, the Company has corrected these errors as of and for the year ended December 31, 2016 by revising the condensed financial statements. Periods not presented herein will be revised, as applicable, in future filings. The following tables present the revisions to the balance sheet as of, and the statement of operations for the year ended, December 31, 2016: Balance Sheet As of December 31, 2016 As Reported Adjustments As Revised Convertible notes payable, net $ 814,989 $ (809,681) $ 5,308 Total Liabilities $ 17,260,318 $ (809,681) $ 16,450,637 Shareholders’ Equity Additional paid in capital $ 10,593,324 $ 811,901 $ 11,405,225 Accumulated deficit (9,848,822) (2,220) (9,851,042) Total Shareholders’ Equity $ 766,466 $ 809,681 $ 1,576,147 Total Liabilities and Shareholders’ Equity $ 18,026,784 $ — $ 18,026,784 Statement of Operations Year Ended December 31, 2016 Net (loss), as reported $ (4,479,052) Adjustments : Previously reported accretion of debt discount (conversion feature and warrants) (interest expense) 2,529 Corrected accretion of debt discount (interest expense) 4,749 Total adjustment (2,220) Net (loss), as revised $ (4,481,272) Net (loss) per share, as reported $ Net (loss) per share, as revised $

GOING CONCERN

GOING CONCERN	6 Months Ended
	Jun. 30, 2017
GOING CONCERN
GOING CONCERN	NOTE 4—GOING CONCERN Pursuant to the FASB 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 $2.9 million during the six months ended June 30, 2017, and as of that date, the Company’s current liabilities exceeded its current assets by $14.3 million. At June 30, 2017, the Company had a cash balance of approximately $4.7 million and other current assets of approximately $5.8 million. Subsequent to June 30, 2017, the Company’s cash balance has decreased as it has paid development costs, including costs previously accrued, and general and administrative expenses. As of June 30, 2017, the Company has insufficient working capital and revenues from operations to meet its debt obligations and other liabilities incurred in connection with the Company’s development activities. The Company will need to generate sufficient cash flow from operations and sell equity or debt to fund further drilling activities and acquisition activity. If sufficient cash flow and additional financing is not available, the Company may be compelled to reduce the scope of its business activities and/or sell a portion of the Company’s interests in its oil and gas properties. This, in turn, may have an adverse effect on the Company’s ability to realize the value of its assets. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s financial statements do not include any adjustments related to the realization of the carrying value of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. Management believes that it can be successful in obtaining equity and/or debt financing which will enable the Company to continue as a going concern.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2017
ACQUISITIONS
ACQUISITIONS	NOTE 5—ACQUISITIONS On April 3, 2017, the Company completed the acquisition of oil and gas leases covering approximately 5,874 gross (1,462 net) acres in Adams and Weld Counties, Colorado. The seller reserved to itself all rights in the leases that exist below 50 feet above the top of the uppermost J Sand formation for those lands located in Township 7 North, Range 63 West in Weld County, Colorado. The acquisition was effective January 1, 2017. The net purchase price to the Company’s retained interest in the assets following the Company’s working interest partner’s 50% participation in the transaction and a reduction in purchase price due to title defects was $1,284,589. The Company paid a deposit of $258,250 at the time it entered into the purchase agreement, which was credited against the net purchase price at closing. The Company paid the remainder of the net purchase price using cash in the amount of $216,339 and the issuance to the seller of 450,000 shares of the Company’s common stock, valued at $1.80 per share. On April 21, 2017, the Company acquired a 9.37% royalty interest covering approximately 145 net acres located in Adams County, Colorado for a net purchase price of $569,400 following the Company’s working interest partner’s 50% participation in the transaction. The acquisition was effective April 1, 2017. In connection with the acquisition, the Company paid a finders’ fee of 20,555 shares of common stock valued at $1.80 per share to a lease broker. On May 9, 2017, the Company acquired 200 gross (70 net) acres in Adams County, Colorado for a net purchase price of $350,000 following the Company’s working interest partner’s 50% participation in the transaction. The transaction was effective April 1, 2017.

CRUDE OIL AND NATURAL GAS PROPE

CRUDE OIL AND NATURAL GAS PROPERTIES	6 Months Ended
	Jun. 30, 2017
CRUDE OIL AND NATURAL GAS PROPERTIES
CRUDE OIL AND NATURAL GAS PROPERTIES	NOTE 6—CRUDE OIL AND NATURAL GAS PROPERTIES The Company’s oil and gas properties are located entirely within the United States. The net capitalized costs related to the Company’s oil and gas producing activities were as follows: June 30, December 31, 2017 2016 Proved oil and gas properties $ 15,236,792 $ 8,132,881 Unproved oil and gas properties (1) 7,634,777 4,092,550 Wells in progress (2) 4,852,118 2,168,092 Total capitalized costs 27,723,687 14,393,523 Accumulated depletion, depreciation and amortization (2,765,660) (783,320) Net capitalized costs $ 24,958,027 $ 13,610,203 (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. Furthermore, wells in progress include approximately $260,000 of capitalized interest costs associated with the drilling and completion activities during the second quarter of 2017. 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: June 30, 2017 2016 Exploration costs $ 66,673 $ 2,700 Development costs 9,787,937 585,184 Acquisition of properties Proved — 3,137,510 Unproved 3,542,227 342,313 Total $ 13,396,837 $ 4,067,707 During the three months ended June 30, 2017 and 2016, depletion expense was $1,536,174 and $nil, respectively, and $1,982,341 and $nil for the six months ended June 30, 2017 and 2016, respectively.

DEBT

DEBT	6 Months Ended
	Jun. 30, 2017
DEBT
DEBT	NOTE 7—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 Energy Operators, LLC (“PEO”), which provides to the Company a revolving line of credit of up to $5,000,000 at 8% per annum, maturing June 30, 2018. As of June 30, 2017 and December 31, 2016, the outstanding balance on the initial line of credit was $5,000,000 plus accrued interest of $500,833 and $302,477, respectively. During the three and six months ended June 30, 2017, the Company recorded interest expense of $89,285 and $187,915, respectively, which excluded $10,441 of interest that was capitalized to wells in progress during the quarter. During the three and six months ended June 30, 2016, the Company recorded interest expense of $34,950 and $56,896, respectively, related to the initial line of credit. 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 PEO 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. Interest on the supplemental line initially accrued at the rate of 8% per year. The supplemental line of credit was amended on March 30, 2017, pursuant to which the Company agreed not to borrow additional amounts against the supplemental line of credit and to repay $3,552,500 in outstanding principal not later than April 13, 2017, in exchange for PEP III extending the maturity date of the supplemental line of credit until June 13, 2017. On April 12, 2017, the Company paid $3,552,500 in accordance with the amendment. On June 8, 2017, the Company entered into a letter agreement (“PEP III Agreement”) with PEP III and PEO, pursuant to which PEP III agreed to modify the Company’s supplemental line of credit. The PEP III Agreement extended the maturity date of the supplemental line of credit, including approximately $3.8 million in outstanding principal and accrued interest, from June 13, 2017 until December 27, 2017, and increased the interest rate on the supplemental line from 8% to 10%, effective June 8, 2017.The Company and PEO also agreed to amend the participation agreement between the Company and PEO, dated May 13, 2015 (“Participation Agreement”), in order to expand the area of mutual interest (“AMI”) established and to grant PEP III an option to participate under the Participation Agreement. As amended, the Participation Agreement grants PEO the option to acquire up to a 45%, and, so long as the supplemental line of credit remains outstanding, PEP III the option to acquire up to a 10% interest in and participate in any oil and gas development on acreage acquired by the Company within the expanded AMI. The expanded AMI covers a total of four and one-half townships in Adams and Weld Counties, Colorado. As of June 30, 2017 and December 31, 2016, the outstanding balance on the supplemental line of credit was $3,552,500 and $7,088,698, plus accrued interest of $275,057 and $50,422, respectively. During the three and six months ended June 30, 2017, the Company recorded interest expense of $84,481 and $224,635, respectively, related to the supplemental line of credit. No interest expense was recorded in the corresponding prior year periods. Convertible notes On December 30, 2016, January 20, 2017 and January 30, 2017, the Company completed the private placement of units consisting of convertible promissory notes with an aggregate face value of $10.0 million and common stock purchase warrants. The Company received net proceeds of approximately $9.0 million from the private placement, after placement agent fees and other associated expenses. Debt issuance costs related to origination fees paid in cash have been recorded as a discount to the convertible notes and are being amortized to interest expense utilizing the effective interest method over the term of the notes. As of June 30, 2017 and December 31, 2016, the unamortized portion of debt issuance costs amounted to $793,644 and $204,703, respectively. The Company recorded interest expense of $116,822 and $233,101 related to the accretion of the discount for the three and six months ended June 30, 2017, respectively. In accordance with ASC 470, the proceeds from the sale of the convertible notes was allocated between the conversion feature and the warrants based on the fair values of the debt instrument without the warrants and of the warrants themselves at the time of issuance. The fair value of the beneficial conversion feature of $5,306,456, has been recorded as a reduction of the carrying value of the convertible promissory notes and is being amortized to interest expense using the effective interest method over the term of the notes. The fair value of the warrants of $3,682,544, has been recorded as a reduction to the carrying value of the convertible promissory notes and is being amortized to interest expense using the effective interest method over the term of the notes. The fair value of the warrants issued to the placement agent in connection with the offering of $1,001,471 has been recorded as a charge to additional paid-in capital. As of June 30, 2017, the Company recorded accrued interest of $nil and recognized interest expense of $nil and $191,669 for the three and six months ended June 30, 2017, respectively, related to the convertible notes. Interest on the convertible notes during the second quarter 2017 of $249,315 was capitalized to oil and gas properties. The following table reflects the net amounts recorded as debt at June 30, 2017 and December 31, 2016: June 30, December 31, 2017 2016 (see Note 3) Current portion: Line of credit $ 5,000,000 $ — Supplemental line of credit 3,552,500 7,105,000 Unamortized original issue discount — (16,302) Total current portion $ 8,552,500 $ 7,088,698 Long term portion: Line of credit $ — $ 5,000,000 Face amount of convertible notes 10,000,000 1,942,600 Unamortized original issuance costs (793,644) (204,703) Unamortized discount related to beneficial conversion feature (4,102,120) (1,030,755) Unamortized discount related to warrants issued (2,847,176) (701,834) Net convertible notes payable $ 2,257,060 $ 5,308 Total long term portion $ 2,257,060 $ 5,005,308 Total debt, net $ 10,809,560 $ 12,094,006

ASSET RETIREMENT OBLIGATION

ASSET RETIREMENT OBLIGATION	6 Months Ended
	Jun. 30, 2017
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION	NOTE 8—ASSET RETIREMENT OBLIGATION For the purpose of determining the fair value of the asset retirement obligation incurred during the six months ended June 30, 2017, the Company assumed an inflation rate of 2.0%, an estimated average asset life of between 30.0 and 33.0 years, and a credit-adjusted risk free interest rate between 11.26% and 11.84%. The following reconciles the activity of the asset retirement obligation for the periods presented: Six months ended June 30, For the year ended December 31, 2017 2016 Asset retirement obligation, beginning of period $ 945,419 $ 34,776 Liabilities settled (9,475) 1,990 Liabilities incurred 42,159 878,170 Revisions in estimated liabilities — — Accretion 46,912 30,483 Asset retirement obligation, end of period $ 1,025,015 $ 945,419 Accretion expense recorded for the three months ended June 30, 2017 and 2016 was $24,245 and $966, respectively, and for the six months ended June 30, 2017 and 2016 was $46,912 and $1,807, respectively.

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	6 Months Ended
	Jun. 30, 2017
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	NOTE 9—ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liability balances were comprised of the following: June 30, December 31, 2017 2016 Trade payables and accrued liabilities $ 9,912,453 $ 2,366,429 Accrued interest payable 775,889 352,599 Liabilities incurred in connection with acquisition of crude oil and natural gas properties — 290,078 Total $ $ 3,009,106

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2017
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY	NOTE 10—SHAREHOLDERS’ EQUITY Public Offering On May 19, 2017, the Company filed a registration statement on Form S-1 (File No. 333-218096), pursuant to which the Company seeks to raise up to $50 million in a public offering of its common stock. Closing of the offering is subject to a number of conditions, including an effective date for its registration statement from the SEC and execution of a definitive underwriting agreement with the underwriters. Activity for the six months ended June 30, 2017 included the following. In connection with the completion of a private placement (Note 7), the Company received $7,251,662 in net proceeds from the sale of 161.15 units consisting of convertible promissory notes and warrants during the first quarter of 2017. The convertible notes payable are convertible into shares of common stock at $1.50 per share. Immediately following the closing, and including units sold during 2016, the outstanding convertible notes are convertible into 6,666,666 shares of common stock. On various dates, in connection with the execution of four employment agreements (Note 13) and the employment of additional employees, the Company issued 219,700 shares of restricted stock. The shares are subject to certain vesting restrictions, but all 219,700 shares have full voting rights and are eligible to receive dividends during the vesting period. For the three and six months ended June 30, 2017, the Company recorded share-based compensation of $52,399 related to the grant and vesting of the restricted shares. As of June 30, 2017, unvested share-based compensation amounted to $356,347 related to the restricted shares. On April 3, 2017, the Company issued 470,555 shares valued at $1.80 per share in connection with the acquisitions of oil and gas assets (Note 5). Activity for the six months ended June 30, 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. 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 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. Warrants The table below summarizes warrants outstanding as of June 30, 2017: Shares Underlying Outstanding Warrants Exercise Price Expiration Date Underwriter warrants $ 1.25 11/12/2020 Investor warrants $ 3.00 12/31/2019 Placement agent warrants $ 1.50 12/31/2021 Total warrants outstanding Activity for the six months ended June 30, 2017 included the following. On January 20, 2017 and January 30, 2017, in connection with the closings of a private placement, the Company issued 2,216,978 and 3,154,601 warrants to the purchasers of convertible promissory notes, respectively. The warrants are exercisable at $3.00 per share and expire on December 31, 2019 (Note 7). On January 20, 2017 and January 30, 2017, in connection with the closings of a private placement, the Company issued 221,744 and 315,526 warrants to the placement agent, respectively. The warrants are exercisable at $1.50 per share and expire on December 31, 2021 (Note 7).

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2017
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 11—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. The Company’s shareholders approved the Plan at the Company’s annual meeting of shareholders on September 8, 2016. Activity for the six months ended June 30, 2017 included the following. On April 1, 2017, the Company accelerated and changed the vesting terms related to an option to purchase 700,000 shares of the Company’s stock that was initially issued on August 19, 2016. As amended, the option as to 100,000 shares was immediately exercisable and the vesting terms of the option as to the remaining 600,000 shares were accelerated. As amended, the entire option is exercisable at $1.83 per share. The option is subject to the terms and conditions of the Plan and a stock option agreement. On April 3, 2017, the Company issued an option to purchase 200,000 shares of the Company’s common stock, which option is exercisable at $1.83 per share. The option was issued in connection with the execution of an employment agreement (Note 13). The option is subject to the terms and conditions of the Plan and a stock option agreement. On May 22, 2017, the Company issued an option to purchase 22,000 shares of the Company’s common stock, which option is exercisable at $1.92 per share. The option was issued in connection with the hiring of a new employee. The option is subject to the terms and conditions of the Plan and a stock option agreement. On June 1, 2017 the Company issued an option to purchase 200,000 shares of the Company's common stock, which option is exercisable at $1.89 per share. The option was issued in connection with the execution of an employment agreement (Note 13). The option is subject to the terms and conditions of the Plan and a stock option agreement. Activity for the six months ended June 30, 2016 included the following. On January 1, 2016, the Company issued an option to purchase 250,000 shares of its common stock in connection with the appointment of its Chief Financial Officer. The option is exercisable at a price of $1.00 per share and expires on November 23, 2018. The option vested one-half on January 1, 2016 and the remainder on January 1, 2017. The option is subject to the terms and conditions of the Plan and a stock option agreement. On January 28, 2016, the Company issued an option to purchase 875,000 shares of its common stock in connection with the appointment of its Chief Operating Officer. The option is exercisable at a price of $1.00 per share and expires on December 31, 2022. The option vested as follows: (i) 125,000 on January 28, 2016, the date of grant, and (ii) 750,000 on January 1, 2017. The option is subject to the terms and conditions of the Plan and a stock option agreement. On April 12, 2016, the Company issued an option to purchase 250,000 shares of its common stock in connection with the hiring of the Company's Vice President of Land. The option vests as follows: (i) 50,000 on the date of grant; (ii) 100,000 on April 15, 2017; and (iii) 100,000 on April 15, 2018, provided that the optionee has been continuously employed by the Company up to each vesting date. The option is exercisable at a price of $0.80 per share and expires on April 15, 2021. The option is subject to the terms and conditions of the Plan and a stock option agreement. On May 4, 2016, the Company issued an option to purchase 50,000 shares of its common stock in connection with the addition and appointment of two members of the Company's Board of Directors. The options vested on the date of grant. The options are exercisable at a price of $1.10 per share and expire on December 31, 2022. The options are subject to the terms and conditions of the Plan and a stock option agreement. A summary of activity under the Plan for the six months ended June 30, 2017 is as follows: Weighted Remaining Average Contractual Number of Exercise Term Shares Price (Years) Outstanding, December 31, 2016 $ Exercisable, December 31, 2016 3,010,000 $ 0.54 5.97 Granted 422,000 $ 1.86 5.69 Exercised — — — Forfeited — — — Outstanding, June 30, 2017 5,097,000 $ 0.85 4.88 Exercisable, June 30, 2017 3,840,000 $ 0.66 4.87 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 June 30, 2017, was $nil. The table below summarizes assumptions utilized in the Black-Scholes pricing model for the six months ended June 30, 2017: June 30, 2017 Expected option term—years 2.5 - 3.25 Risk-free interest rate 1.75% - 1.93% Expected dividend yield 0% Volatility 162% - 169% Forfeited 0% During the three and six months ended June 30, 2017, the Company recorded share-based compensation of $611,000 and $678,346, respectively, related to options issued through the plan. During the three and six months ended June 30, 2016, the Company recorded share-based compensation of $336,728 and $681,188, respectively, related to options issued through the Plan. Unvested share-based compensation related to the options at June 30, 2017 and December 31, 2016 amounted to $1,196,732 and $1,025,391, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2017
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 12—RELATED PARTY TRANSACTIONS At June 30, 2017, the Company had drawn $5,000,000 on the initial line of credit with PEO and recorded related accrued interest of $500,833. PEO currently beneficially owns 13.2% of the Company’s common stock. Interest expense related to the initial line of credit for the three and six months ended June 30, 2017 amounted to $89,285 and $187,915, respectively, and for the three and six months ended June 30, 2016 was $34,950 and $56,896, respectively. At June 30, 2017, the Company has recorded $447,237 in Accounts receivable – joint interest billing – related party. This amount relates to amounts billed to PEO related to its participation in the Company’s operated Shook drilling program and PEO’s ownership interest in the vertical wells that the Company operates. At June 30, 2017, the Company has recorded $5,236,212 in Drilling advances – related party. This amount relates to unapplied cash advances received from PEO in connection with the Company’s operated Shook drilling program.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2017
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 13—COMMITMENTS AND CONTINGENCIES Operating leases and agreements The Company leases its office facility under a four year non-cancelable operating lease expiring in March 2021. The following is a schedule by year of future minimum rental payments required under the lease agreement: Year ending December 31, Amount 2017 $ 63,384 2018 129,738 2019 133,698 2020 137,658 2021 34,662 Total $ 499,140 Lease expense totaled $31,596 and $52,660 for the three and six months ended June 30, 2017, respectively, and $15,622 and $22,034 for the three and six months ended June 30, 2016, respectively. Employment agreements On April 1, 2017, the Company entered an employment agreement with its Manager of Production and Completion Operations. The agreement provides for a base salary of $130,000 per year, an initial term expiring on March 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. In connection with the execution of the agreement, the employee was granted 50,000 shares of restricted stock and an option to purchase up to 200,000 shares of common stock at an exercise price of $1.83 per share. On April 1, 2017, the Company entered into an employment agreement with its Executive Vice President for Capital Markets and Investor Relations. The agreement provides for a base salary of $156,000 per year, 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. In connection with the execution of the agreement, the employee was granted 66,700 shares of restricted stock and the vesting of 200,000 previously issued stock options were accelerated. On June 1, 2017, the Company entered into an employment agreement with its Senior Landman. The agreement provides for a base salary of $130,000 per year, an initial term expiring on May 31, 2018 with an automatic renewal for successive one-month periods unless terminated in accordance with its terms, and provisions for termination. In connection with the execution of the agreement, the employee was granted 50,000 shares of restricted stock and an option to purchase 200,000 shares of common stock at $1.89 per share. On June 1, 2017 the Company entered into an employment agreement with its Chief Financial Officer. The agreement provides for a base salary of $150,000 per year, 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. In connection with the execution of the agreement, the employee was granted 50,000 shares of restricted stock.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2017
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 14—SUBSEQUENT EVENTS The Company has evaluated subsequent events through August 14, 2017. Except as disclosed herein, there have been no events that would require disclosure.

BASIS OF PRESENTATION AND SUM20

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2017
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The interim condensed financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures included are adequate to make the information presented not misleading. In management’s opinion, the Balance Sheets as of June 30, 2017 (unaudited) and December 31, 2016 (see Note 3), the unaudited Statements of Operations for the three and six months ended June 30, 2017 and 2016, and the unaudited Statements of Cash Flows for the six months ended June 30, 2017 and 2016, contained herein, reflect all adjustments, consisting solely of normal recurring items, which are necessary for the fair presentation of the Company’s financial position, results of operations and cash flows on a basis consistent with that of the Company’s prior audited financial statements. However, the results of operations for the interim periods may not be indicative of results to be expected for the full fiscal year. Therefore, these financial statements should be read in conjunction with the audited financial statements and notes thereto and summary of significant accounting policies included in the Company’s annual report on Form 10-K for the year ended December 31, 2016. Except as noted below, there have been no changes to the footnotes from those accompanying the audited consolidated financial statements contained in the Company’s Form 10‑K for the year ended December 31, 2016.
Loss Per Share	Loss Per Share Basic and diluted loss per share 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 June 30, 2017 are as follows: June 30, 2017 Exercisable stock options 3,840,000 Warrants issued to underwriter 255,600 Warrants issued to convertible note holders 3,333,333 Warrants issued to placement agent - convertible note offering 666,600 Shares underlying convertible notes 6,666,666 Total 14,762,199
Debt Discount Costs	Debt Discount Costs On January 30, 2017, the Company completed the third and final closing of a private placement of units consisting of common stock purchase warrants and convertible promissory notes with a total aggregate face value of $10,000,000 (Note 7). The convertible promissory notes contain an embedded beneficial conversion feature. The proceeds from the sale of the securities were allocated between the convertible notes and the warrants based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at the time of issuance. The fair value of the beneficial conversion feature, limited to the gross proceeds, has been recorded as a reduction of the carrying value of the convertible promissory notes and is being amortized to interest expense using the effective interest method over the term of the notes. The fair value of warrants issued has been recorded as a reduction to the carrying value of the convertible promissory notes, limited to the gross proceeds, and is being amortized over the term of the notes using the effective interest method. Origination fees paid in cash have been recorded as a reduction in the carrying value of the convertible notes and are being amortized over the term of the notes using the effective interest method. The fair value of warrants issued to the placement agent in connection with the offering have been recorded as a charge to additional paid-in capital.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which establishes a comprehensive new lease standard designed to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous U.S. GAAP. ASU 2016-02 is effective for public businesses for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its financial statements. In March 2016, the FASB issued Accounting Standards Update ("ASU") 2016-09, “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), which intends to improve the accounting for share-based payment transactions. ASU 2016-09 changes several aspects of the accounting for share-based payment award transactions, including: (1) Accounting and Cash Flow Classification for Excess Tax Benefits and Deficiencies, (2) Forfeitures, and (3) Tax Withholding Requirements and Cash Flow Classification. ASU 2016-09 is effective for public businesses for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. We adopted this pronouncement effective January 1, 2017. Upon adoption of this standard, we no longer estimate the total number of awards for which the requisite service period will not be rendered, and effective January 1, 2017, we will began accounting for forfeitures when they occur. The adoption of these provisions did not materially impact the condensed consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which establishes a comprehensive new revenue recognition standard designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under current revenue recognition guidance. In March 2016, the FASB released certain implementation guidance through ASU 2016‑08 (collectively with ASU 2014-09, the "Revenue ASUs") to clarify principal versus agent considerations. The Revenue ASUs allow for the use of either the full or modified retrospective transition method, and the standard will be effective for annual reporting periods beginning after December 15, 2017 including interim periods within that period, with early adoption permitted for annual reporting periods beginning after December 15, 2016. Currently, the Company has not identified any contracts that would require a change from the entitlements method, historically used for certain domestic crude oil and natural gas sales, to the sales method of accounting. The Company is continuing to evaluate the provisions of these ASUs as pertinent to certain sales contracts and in particular as they relates to disclosure requirements. There were various updates recently issued by the FASB, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s reported financial position, results of operations, or cash flows

BASIS OF PRESENTATION AND SUM21

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2017
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of Potentially Antidilutive Securities Excluded From Computation of Earnings Per Share	June 30, 2017 Exercisable stock options 3,840,000 Warrants issued to underwriter 255,600 Warrants issued to convertible note holders 3,333,333 Warrants issued to placement agent - convertible note offering 666,600 Shares underlying convertible notes 6,666,666 Total 14,762,199

REVISION OF PRIOR PERIOD FINA22

REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS (Tables)	6 Months Ended
	Jun. 30, 2017
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS
Schedule of revisions to the balance sheet and the statement of operations	Balance Sheet As of December 31, 2016 As Reported Adjustments As Revised Convertible notes payable, net $ 814,989 $ (809,681) $ 5,308 Total Liabilities $ 17,260,318 $ (809,681) $ 16,450,637 Shareholders’ Equity Additional paid in capital $ 10,593,324 $ 811,901 $ 11,405,225 Accumulated deficit (9,848,822) (2,220) (9,851,042) Total Shareholders’ Equity $ 766,466 $ 809,681 $ 1,576,147 Total Liabilities and Shareholders’ Equity $ 18,026,784 $ — $ 18,026,784 Statement of Operations Year Ended December 31, 2016 Net (loss), as reported $ (4,479,052) Adjustments : Previously reported accretion of debt discount (conversion feature and warrants) (interest expense) 2,529 Corrected accretion of debt discount (interest expense) 4,749 Total adjustment (2,220) Net (loss), as revised $ (4,481,272) Net (loss) per share, as reported $ Net (loss) per share, as revised $

CRUDE OIL AND NATURAL GAS PRO23

CRUDE OIL AND NATURAL GAS PROPERTIES (Tables)	6 Months Ended
	Jun. 30, 2017
CRUDE OIL AND NATURAL GAS PROPERTIES
Components of Aggregate Capitalized Costs	June 30, December 31, 2017 2016 Proved oil and gas properties $ 15,236,792 $ 8,132,881 Unproved oil and gas properties (1) 7,634,777 4,092,550 Wells in progress (2) 4,852,118 2,168,092 Total capitalized costs 27,723,687 14,393,523 Accumulated depletion, depreciation and amortization (2,765,660) (783,320) Net capitalized costs $ 24,958,027 $ 13,610,203 (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. Furthermore, wells in progress include approximately $260,000 of capitalized interest costs associated with the drilling and completion activities during the second quarter of 2017.
Components of Costs Incurred in Crude Oil and Natural Gas Activities	June 30, 2017 2016 Exploration costs $ 66,673 $ 2,700 Development costs 9,787,937 585,184 Acquisition of properties Proved — 3,137,510 Unproved 3,542,227 342,313 Total $ 13,396,837 $ 4,067,707

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2017
DEBT
Schedule of Convertible Notes	June 30, December 31, 2017 2016 (see Note 3) Current portion: Line of credit $ 5,000,000 $ — Supplemental line of credit 3,552,500 7,105,000 Unamortized original issue discount — (16,302) Total current portion $ 8,552,500 $ 7,088,698 Long term portion: Line of credit $ — $ 5,000,000 Face amount of convertible notes 10,000,000 1,942,600 Unamortized original issuance costs (793,644) (204,703) Unamortized discount related to beneficial conversion feature (4,102,120) (1,030,755) Unamortized discount related to warrants issued (2,847,176) (701,834) Net convertible notes payable $ 2,257,060 $ 5,308 Total long term portion $ 2,257,060 $ 5,005,308 Total debt, net $ 10,809,560 $ 12,094,006

ASSET RETIREMENT OBLIGATION (Ta

ASSET RETIREMENT OBLIGATION (Tables)	6 Months Ended
	Jun. 30, 2017
ASSET RETIREMENT OBLIGATION
Reconciliation of the Asset Retirement Obligation	Six months ended June 30, For the year ended December 31, 2017 2016 Asset retirement obligation, beginning of period $ 945,419 $ 34,776 Liabilities settled (9,475) 1,990 Liabilities incurred 42,159 878,170 Revisions in estimated liabilities — — Accretion 46,912 30,483 Asset retirement obligation, end of period $ 1,025,015 $ 945,419

ACCOUNTS PAYABLE AND ACCRUED 26

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2017
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Components of Accounts Payable and Accrued Liabilities	June 30, December 31, 2017 2016 Trade payables and accrued liabilities $ 9,912,453 $ 2,366,429 Accrued interest payable 775,889 352,599 Liabilities incurred in connection with acquisition of crude oil and natural gas properties — 290,078 Total $ $ 3,009,106

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2017
SHAREHOLDERS' EQUITY
Summary of Warrants Outstanding	Shares Underlying Outstanding Warrants Exercise Price Expiration Date Underwriter warrants $ 1.25 11/12/2020 Investor warrants $ 3.00 12/31/2019 Placement agent warrants $ 1.50 12/31/2021 Total warrants outstanding

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2017
STOCK-BASED COMPENSATION
Summary of Stock Option Activity	Weighted Remaining Average Contractual Number of Exercise Term Shares Price (Years) Outstanding, December 31, 2016 $ Exercisable, December 31, 2016 3,010,000 $ 0.54 5.97 Granted 422,000 $ 1.86 5.69 Exercised — — — Forfeited — — — Outstanding, June 30, 2017 5,097,000 $ 0.85 4.88 Exercisable, June 30, 2017 3,840,000 $ 0.66 4.87
Summary of Fair Value Assumptions	June 30, 2017 Expected option term—years 2.5 - 3.25 Risk-free interest rate 1.75% - 1.93% Expected dividend yield 0% Volatility 162% - 169% Forfeited 0%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2017
COMMITMENTS AND CONTINGENCIES
Operating Lease Agreement Schedule	Year ending December 31, Amount 2017 $ 63,384 2018 129,738 2019 133,698 2020 137,658 2021 34,662 Total $ 499,140

BASIS OF PRESENTATION AND SUM30

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Jan. 30, 2017	Jun. 30, 2017
Loss Per Share
Potentially dilutive securities excluded from the earnings per share calculation		14,762,199
Deferred Equity Issuance Costs
Deferred equity issuance costs		$ 186,312
Debt Discount Costs
Total aggregate face value of common stock, purchase warrants and convertible promissory notes issued	$ 10,000,000
Exercisable Stock Options
Loss Per Share
Potentially dilutive securities excluded from the earnings per share calculation		3,840,000
Warrants issued to underwriter
Loss Per Share
Potentially dilutive securities excluded from the earnings per share calculation		255,600
Warrants issued to convertible note holders
Loss Per Share
Potentially dilutive securities excluded from the earnings per share calculation		3,333,333
Warrants issued to placement agent - convertible note offering
Loss Per Share
Potentially dilutive securities excluded from the earnings per share calculation		666,600
Shares underlying convertible notes
Loss Per Share
Potentially dilutive securities excluded from the earnings per share calculation		6,666,666

REVISION OF PRIOR PERIOD FINA31

REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Revisions to the Balance Sheet
Convertible notes payable, net	$ 2,257,060		$ 2,257,060		$ 5,308
Liabilities	28,149,921		28,149,921		16,450,637
Shareholders' Equity
Additional paid in capital	20,233,942		20,233,942		11,405,225
Accumulated deficit	(12,723,650)		(12,723,650)		(9,851,042)
Total Shareholders' Equity	7,532,947		7,532,947		1,576,147
Total Liabilities and Shareholder's Equity	35,682,868		35,682,868		18,026,784
Net (loss), as reported	$ (733,469)	$ (918,201)	(2,872,608)	$ (1,641,007)
Accretion of debt discounts (interest expense)			$ 2,251,752
Net (loss) per share	$ (0.03)	$ (0.04)	$ (0.13)	$ (0.08)
Accounting for the fair value of the convertible promissory notes and warrants issued in the Company's private placement
Revisions to the Balance Sheet
Convertible notes payable, net					5,308
Liabilities					16,450,637
Shareholders' Equity
Additional paid in capital					11,405,225
Accumulated deficit					(9,851,042)
Total Shareholders' Equity					1,576,147
Total Liabilities and Shareholder's Equity					18,026,784
Net (loss), as reported					(4,481,272)
Accretion of debt discounts (interest expense)					$ 4,749
Net (loss) per share					$ (0.21)
Accounting for the fair value of the convertible promissory notes and warrants issued in the Company's private placement | As Reported
Revisions to the Balance Sheet
Convertible notes payable, net					$ 814,989
Liabilities					17,260,318
Shareholders' Equity
Additional paid in capital					10,593,324
Accumulated deficit					(9,848,822)
Total Shareholders' Equity					766,466
Total Liabilities and Shareholder's Equity					18,026,784
Net (loss), as reported					(4,479,052)
Accretion of debt discounts (interest expense)					$ 2,529
Net (loss) per share					$ (0.21)
Accounting for the fair value of the convertible promissory notes and warrants issued in the Company's private placement | Adjustments
Revisions to the Balance Sheet
Convertible notes payable, net					$ (809,681)
Liabilities					(809,681)
Shareholders' Equity
Additional paid in capital					811,901
Accumulated deficit					(2,220)
Total Shareholders' Equity					809,681
Accretion of debt discounts (interest expense)					$ (2,220)

GOING CONCERN (Details)

GOING CONCERN (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Net loss	$ 733,469	$ 918,201	$ 2,872,608	$ 1,641,007
Cash	4,659,276	1,974,427	4,659,276	1,974,427	$ 2,449,412	$ 3,011,291
Other current assets	$ 5,800,000		$ 5,800,000
ASU 2014-15
Amount by which current liabilities exceed current assets		$ 14,300,000		$ 14,300,000

ACQUISITIONS (Details)

ACQUISITIONS (Details)	May 09, 2017USD ($)a	Apr. 21, 2017USD ($)a$ / sharesshares	Apr. 03, 2017USD ($)aft$ / sharesshares	Jun. 30, 2016USD ($)
Acquisitions
Net purchase price				$ 2,305,917
Adams and Weld Counties, Colorado | Oil and Gas Leases
Acquisitions
Acres, gross | a			5,874
Acres, net | a			1,462
Deposit amount			$ 258,250
Cash payment to acquire oil and gas leases			$ 216,339
Shares issued in acquisition | shares			450,000
Price of shares issued (in dollars per share) | $ / shares			$ 1.80
Adams and Weld Counties, Colorado | Oil and Gas Leases | Maximum
Acquisitions
Depth of the oil and gas rights above the uppermost J Sand formation that were reserved by the seller (in feet) | ft			50
Adams and Weld Counties, Colorado | Oil and Gas Leases | Providence Energy Operators, LLC
Acquisitions
Net purchase price			$ 1,284,589
Ownership interest acquired by the option holder (as a percent)			50.00%
Adams and Weld Counties, Colorado | Aquisition of proprerty in Adams and Weld Counties, Colorado [Member] | Oil and Gas Leases
Acquisitions
Shares issued in acquisition | shares			470,555
Adams County, Colorado | Oil and Gas Leases
Acquisitions
Acres, gross | a	200
Acres, net | a	70
Adams County, Colorado | Oil and Gas Leases | Providence Energy Operators, LLC
Acquisitions
Net purchase price	$ 350,000
Ownership interest acquired by the option holder (as a percent)	50.00%
Adams County, Colorado | Oil and Gas Royalty Interest
Acquisitions
Acres, net | a		145
Shares issued in acquisition | shares		20,555
Price of shares issued (in dollars per share) | $ / shares		$ 1.80
Royalty interest acquired (as a percent)		9.37%
Adams County, Colorado | Oil and Gas Royalty Interest | Providence Energy Operators, LLC
Acquisitions
Net purchase price		$ 569,400
Ownership interest acquired by the option holder (as a percent)		50.00%

CRUDE OIL AND NATURAL GAS PRO34

CRUDE OIL AND NATURAL GAS PROPERTIES - Aggregate Capitalized Costs (Details) - USD ($)	3 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
CRUDE OIL AND NATURAL GAS PROPERTIES
Proved oil and gas properties	$ 15,236,792	$ 8,132,881
Unproved oil and gas properties	7,634,777	4,092,550
Wells in progress	4,852,118	2,168,092
Total capitalized costs	27,723,687	14,393,523
Accumulated depletion, depreciation and amortization	(2,765,660)	(783,320)
Net capitalized costs	24,958,027	$ 13,610,203
Capitalized interest costs	$ 260,000

CRUDE OIL AND NATURAL GAS PRO35

CRUDE OIL AND NATURAL GAS PROPERTIES - Costs Incurred in Crude Oil and Natural Gas Activities (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CRUDE OIL AND NATURAL GAS PROPERTIES
Exploration costs			$ 66,673	$ 2,700
Development costs			9,787,937	585,184
Acquisition of properties:
Proved				3,137,510
Unproved			3,542,227	342,313
Total			13,396,837	4,067,707
Depletion of oil and gas properties	$ 1,536,174	$ 0	$ 1,982,341	$ 0

DEBT - Lines of Credit (Details

DEBT - Lines of Credit (Details) - USD ($)	Jun. 08, 2017	Apr. 12, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Dec. 31, 2016	Oct. 13, 2016
Line of Credit Facilities
Accrued interest			$ 775,889		$ 775,889			$ 352,599
Interest expense			1,442,475	$ 34,950	2,872,275	$ 56,896
Initial Line Of Credit | Revolving Credit Facility
Line of Credit Facilities
Line of credit outstanding balance			5,000,000		5,000,000			5,000,000
Accrued interest			500,833		500,833			302,477
Interest expense			89,285	34,950	187,915	56,896
Initial Line Of Credit | Revolving Credit Facility | Providence Energy Operators, LLC
Line of Credit Facilities
Line of credit outstanding balance			5,000,000		5,000,000
Accrued interest			500,833		500,833
Interest expense			89,285	34,950	187,915	56,896
Supplemental Line Of Credit | Providence Energy Operators, LLC
Line of Credit Facilities
Participation Agreement acquisition interest in any oil and gas development acres in area of mutual interest (as a percent)	45.00%
Supplemental Line Of Credit | Providence Energy Partners III, LP
Line of Credit Facilities
Participation Agreement acquisition interest in any oil and gas development acres in area of mutual interest (as a percent)	10.00%
Supplemental Line Of Credit | Revolving Credit Facility
Line of Credit Facilities
Wells in progress interest capitalized			10,441
Supplemental Line Of Credit | Revolving Credit Facility | 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			3,552,500		3,552,500			7,088,698
Accrued interest			0		0			$ 50,422
Interest expense			$ 84,481	$ 0	$ 224,635	$ 0
Line of credit interest rate (as a percent)									8.00%
Agreed to repay outstanding principal							$ 3,552,500
Payment of agreed outstanding principal		$ 3,552,500

DEBT - Convertible Debt (Detail

DEBT - Convertible Debt (Details) - USD ($)	Jan. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Convertible notes
Net proceeds from issuance of convertible notes				$ 7,251,662
Accretion of debt discounts				2,251,752
Accrued interest		$ 775,889		775,889		$ 352,599
Interest Expense		1,442,475	$ 34,950	2,872,275	$ 56,896
Convertible Notes
Convertible notes
Unamortized debt issuance costs		793,644		793,644		$ 204,703
Accretion of debt discounts		116,822		233,101
Fair value of beneficial conversion feature				5,306,456
Fair value of warrants issued				3,682,544
Accrued interest		0		0
Interest Expense				0
Oil and gas properties capitalized interest costs		$ 249,315
Convertible Notes | Common Stock Purchase Warrants Issued With Convertible Notes
Convertible notes
Face amount of individual promissory notes in each unit	$ 10,000,000
Convertible Notes | Placement agent warrants
Convertible notes
Value of common stock warrants				$ 1,001,471
First Closing Of Private Placement | Convertible Notes
Convertible notes
Net proceeds from issuance of convertible notes	$ 9,000,000

DEBT - Convertible Debt Compone

DEBT - Convertible Debt Components (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Convertible notes
Total current portion	$ 5,000,000
Line of credit		$ 5,000,000
Face amount of convertible notes	10,000,000	1,942,600
Unamortized original issue discount	(793,644)	(204,703)
Unamortized discount related to beneficial conversion feature	(4,102,120)	(1,030,755)
Unamortized discount related to warrants issued	(2,847,176)	(701,834)
Net convertible notes payable	2,257,060	5,308
Total long term portion	2,257,060	5,005,308
Total debt, net	10,809,560	12,094,006
Supplemental Line Of Credit
Convertible notes
Line of credit	5,000,000
Supplemental line of credit	3,552,500	7,105,000
Total current portion	$ 8,552,500	7,088,698
Unamortized original issue discount		$ (16,302)

ASSET RETIREMENT OBLIGATION (De

ASSET RETIREMENT OBLIGATION (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Assumptions used to determine the fair value of the asset retirement obligation
Assumed inflation rate (as a percent)			2.00%
Activity related to asset retirement obligation
Asset retirement obligation, beginning of year	$ 945,419	$ 34,776	$ 945,419	$ 34,776	$ 34,776
Liabilities settled			(9,475)		1,990
Liabilities incurred			42,159		878,170
Accretion	$ 24,245	$ 966	46,912	$ 1,807	30,483
Asset retirement obligation, end of period			$ 1,025,015		$ 945,419
Minimum
Assumptions used to determine the fair value of the asset retirement obligation
Average estimated asset life			30 years
Credit adjusted risk free interest rate (as a percent)			11.26%
Maximum
Assumptions used to determine the fair value of the asset retirement obligation
Average estimated asset life			33 years
Credit adjusted risk free interest rate (as a percent)			11.84%

ACCOUNTS PAYABLE AND ACCRUED 40

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Trade payables and accrued liabilities	$ 9,912,453	$ 2,366,429
Accrued interest payable	775,889	352,599
Liabilities incurred in connection with acquisition of crude oil and natural gas properties		290,078
Total	$ 10,688,342	$ 3,009,106

SHAREHOLDERS' EQUITY - Common S

SHAREHOLDERS' EQUITY - Common Stock (Details)	May 19, 2017USD ($)	Apr. 03, 2017$ / sharesshares	Apr. 01, 2017agreementshares	May 04, 2016director$ / sharesshares	Apr. 08, 2016$ / sharesshares	Jan. 31, 2016item$ / sharesshares	Jun. 30, 2017USD ($)$ / shares	Mar. 31, 2017USD ($)shares	Jan. 31, 2017shares	Dec. 31, 2016USD ($)
Common Stock
Proceeds from issuance of public offering | $	$ 50,000,000
Unvested share based compensation | $								$ 1,196,732		$ 1,025,391
Oil and Gas Leases | Adams and Weld Counties, Colorado
Common Stock
Shares issued in acquisition		450,000
Price of shares issued (in dollars per share) | $ / shares		$ 1.80
Directors
Common Stock
Number of directors appointed | director				2
Restricted Stock
Common Stock
Number of employment agreements | agreement			4
Number of shares granted			219,700
Share-based compensation expense | $							$ 52,399
Unvested share based compensation | $							$ 356,347
Private Placement | Convertible Notes
Common Stock
Units sold in private placement offering								161.15
Warrants to purchase common stock									6,666,666
Gross proceeds from issuance of convertible notes | $								$ 7,251,662
Notes conversion price (in dollars per share) | $ / shares							$ 1.50
Common Stock
Common Stock
Common stock number of shares sold or issued				50,000
Common stock price (in dollars per share) | $ / shares				$ 1.01
Number of directors appointed | director				2
Common Stock | Private Placement
Common Stock
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
Common Stock | Investor Relations Agreement
Common Stock
Common stock number of shares sold or issued					50,000
Common stock price (in dollars per share) | $ / shares					$ 0.73

SHAREHOLDERS' EQUITY - Preferre

SHAREHOLDERS' EQUITY - Preferred Stock and Warrants (Details) - Warrants - $ / shares	6 Months Ended
	Jun. 30, 2017	Jan. 30, 2017	Jan. 20, 2017
Warrants
Warrants outstanding (in shares)	7,588,800
Underwriter warrants
Warrants
Warrants issued (in shares)	255,600
Warrants exercise price (in dollars per share)	$ 1.25
Warrants exercisable expire date	Nov. 12, 2020
Investor warrants
Warrants
Warrants issued (in shares)		3,154,601	2,216,978
Warrants outstanding (in shares)	6,666,600
Warrants exercise price (in dollars per share)	$ 3	$ 3	$ 3
Warrants exercisable expire date	Dec. 31, 2019
Placement agent warrants
Warrants
Warrants issued (in shares)		315,526	221,744
Warrants outstanding (in shares)	666,600
Warrants exercise price (in dollars per share)	$ 1.50	$ 1.50	$ 1.50
Warrants exercisable expire date	Dec. 31, 2021

STOCK-BASED COMPENSATION - Acti

STOCK-BASED COMPENSATION - Activity Summary (Details) - $ / shares	May 22, 2017	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2017	Aug. 18, 2016	Aug. 17, 2016
STOCK-BASED COMPENSATION
Options granted to employees, directors and consultants	22,000		422,000
Exercise price (in dollars per share)	$ 1.92		$ 1.86
Number of Shares
Outstanding Number of Options, Beginning balance (in shares)		4,675,000
Exercisable, Beginning of period (in shares)		3,010,000
Options Granted (in shares)	22,000		422,000
Outstanding Number of Options, Ending balance (in shares)		5,097,000	4,675,000
Exercisable, End of period (in shares)		3,010,000	3,010,000	3,840,000
Weighted Average Exercise Price
Outstanding, Beginning, Weighted-Average Exercise Price (in dollars per share)		$ 0.76
Exercisable, Weighted Average Exercise Price (in dollars per share)		$ 0.54
Exercisable, Beginning of period (in shares)		3,010,000
Options Granted (in dollars per share)	$ 1.92		$ 1.86
Outstanding, Ending, Weighted-Average Exercise Price (in dollars per share)		$ 0.85	0.76
Exercisable Weighted Average Exercise Price (in dollars per share)		$ 0.66	$ 0.54
Remaining Contractual Term (Years)
Contractual Life of Outstanding Options		4 years 10 months 17 days	5 years 4 months 21 days
Contractual Life of Outstanding Options, Granted			5 years 8 months 9 days
Contractual Life of Exercisable Options		4 years 10 months 13 days	5 years 11 months 19 days
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

STOCK-BASED COMPENSATION - Ac44

STOCK-BASED COMPENSATION - Activity Narrative (Details)	Jun. 01, 2017$ / sharesshares	May 22, 2017$ / sharesshares	Apr. 03, 2017$ / sharesshares	Apr. 01, 2017$ / shares	Jan. 01, 2017shares	May 04, 2016director$ / sharesshares	Apr. 15, 2016$ / sharesshares	Apr. 12, 2016shares	Jan. 28, 2016$ / sharesshares	Jan. 01, 2016$ / sharesshares	Dec. 31, 2016$ / sharesshares
STOCK-BASED COMPENSATION
Options granted (in shares)		22,000									422,000
Exercise price (in dollars per share) | $ / shares		$ 1.92									$ 1.86
Common Stock
STOCK-BASED COMPENSATION
Number of directors appointed | director						2
Chief Operating Officer
STOCK-BASED COMPENSATION
Options granted (in shares)									875,000
Exercise price (in dollars per share) | $ / shares									$ 1
Chief Operating Officer | Tranche One
STOCK-BASED COMPENSATION
Vesting									125,000
Chief Operating Officer | Tranche Two
STOCK-BASED COMPENSATION
Vesting					750,000
Vice President
STOCK-BASED COMPENSATION
Options granted (in shares)								250,000
Exercise price (in dollars per share) | $ / shares							$ 0.80
Vice President | Tranche One
STOCK-BASED COMPENSATION
Vesting							50,000
Vice President | Tranche Two
STOCK-BASED COMPENSATION
Vesting								100,000
Chief Financial Officer
STOCK-BASED COMPENSATION
Options granted (in shares)										250,000
Exercise price (in dollars per share) | $ / shares										$ 1
Vesting percentage										50.00%
Directors
STOCK-BASED COMPENSATION
Options granted (in shares)						50,000
Exercise price (in dollars per share) | $ / shares						$ 1.10
Number of directors appointed | director						2
Senior lease analyst | Common Stock
STOCK-BASED COMPENSATION
Options granted (in shares)	200,000
Exercise price (in dollars per share) | $ / shares	$ 1.89
Manager of Production and Completion Operations | Common Stock
STOCK-BASED COMPENSATION
Options granted (in shares)			200,000
Exercise price (in dollars per share) | $ / shares			$ 1.83	$ 1.83

STOCK-BASED COMPENSATION - Assu

STOCK-BASED COMPENSATION - Assumptions (Details) - USD ($)	6 Months Ended	18 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Pricing model assumptions
Expected dividend yield	0.00%
Forfeiture rate (as a percent)	0.00%
Exercisable Stock Options
Pricing model assumptions
Expected dividend yield	$ 0
Share-based compensation expense		$ 0
Weighted-average risk-free interest rate, minimum	1.75%
Weighted-average risk-free interest rate, maximum	1.93%
Weighted-average volatility, minimum (as a percent)	162.00%
Weighted-average volatility, maximum (as a percent)	169.00%
Exercisable Stock Options | Minimum
Pricing model assumptions
Expected option term - years	2 years 6 months
Exercisable Stock Options | Maximum
Pricing model assumptions
Expected option term - years	3 years 3 months

STOCK-BASED COMPENSATION - Expe

STOCK-BASED COMPENSATION - Expense and Unvested (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Dec. 31, 2016
STOCK-BASED COMPENSATION
Share-based compensation related to options	$ 611,000	$ 336,728	$ 678,346	$ 681,188
Unvested share based compensation					$ 1,196,732	$ 1,025,391

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Related Party Transactions
Accrued interest	$ 775,889		$ 775,889		$ 352,599
Interest expense	1,442,475	$ 34,950	2,872,275	$ 56,896
Revolving Credit Facility | Initial Line Of Credit
Related Party Transactions
Line of credit outstanding balance	5,000,000		5,000,000		5,000,000
Accrued interest	500,833		500,833		$ 302,477
Interest expense	89,285	34,950	187,915	56,896
Providence Energy Operators, LLC | Revolving Credit Facility | Initial Line Of Credit
Related Party Transactions
Line of credit outstanding balance	5,000,000		5,000,000
Accrued interest	500,833		500,833
Interest expense	$ 89,285	$ 34,950	$ 187,915	$ 56,896

COMMITMENTS AND CONTINGENCIES48

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Jun. 01, 2017	May 22, 2017	Apr. 03, 2017	Apr. 01, 2017	Jan. 01, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Operating leases and agreements
Lease term								4 years
Future minimum rental payments required under operating lease agreement
2,017						$ 63,384		$ 63,384
2,018						129,738		129,738
2,019						133,698		133,698
2,020						137,658		137,658
2,021						34,662		34,662
Total						499,140		499,140
Lease expense						$ 31,596	$ 15,622	$ 52,660	$ 22,034
Exercise price (in dollars per share)		$ 1.92								$ 1.86
Restricted Stock
Future minimum rental payments required under operating lease agreement
Number of shares granted				219,700
Manager of Production and Completion Operations
Future minimum rental payments required under operating lease agreement
Annual salary				$ 130,000
Renewal period of the employment agreement				1 year
Manager of Production and Completion Operations | Restricted Stock
Future minimum rental payments required under operating lease agreement
Number of shares granted				50,000
Manager of Production and Completion Operations | Common Stock
Future minimum rental payments required under operating lease agreement
Number of options granted				200,000
Exercise price (in dollars per share)			$ 1.83	$ 1.83
Executive Vice President
Future minimum rental payments required under operating lease agreement
Annual salary				$ 156,000
Renewal period of the employment agreement				1 year
Vesting shares				200,000
Executive Vice President | Restricted Stock
Future minimum rental payments required under operating lease agreement
Number of shares granted				66,700
Senior lease analyst
Future minimum rental payments required under operating lease agreement
Annual salary	$ 130,000
Renewal period of the employment agreement	1 month
Senior lease analyst | Restricted Stock
Future minimum rental payments required under operating lease agreement
Number of shares granted	50,000
Senior lease analyst | Common Stock
Future minimum rental payments required under operating lease agreement
Number of options granted	200,000
Exercise price (in dollars per share)	$ 1.89
Chief Financial Officer
Future minimum rental payments required under operating lease agreement
Annual salary	$ 150,000
Renewal period of the employment agreement	1 year
Number of shares granted	50,000
Exercise price (in dollars per share)					$ 1