PetroShare (PRHRQ) 10-K 29 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Mar. 28, 2018	Jun. 30, 2017
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, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	Yes
Is Entity's Reporting Status Current?	No
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 22,999,615
Entity Common Stock, Shares Outstanding		27,788,802
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,017

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash	$ 713,924	$ 2,449,412
Accounts receivable - joint interest billing	828,583	240,450
Accounts receivable - joint interest billing - related party	204,730	286,226
Accounts receivable - crude oil, natural gas and NGL sales	1,412,612	179,236
Accounts receivable - other		27,876
Prepaid expenses and other assets	26,795	1,178,081
Deferred financing fee, net	251,389
Total current assets	3,438,033	4,361,281
Crude oil and natural gas properties - using successful efforts method:
Proved crude oil and natural gas properties	22,144,366	8,132,881
Unproved crude oil and natural gas properties	1,919,335	4,092,550
Wells in progress	9,858,262	2,168,092
Less: accumulated depletion, depreciation and amortization	(2,849,374)	(783,320)
Crude oil and natural gas properties, net	31,072,589	13,610,203
Property, plant and equipment, net	168,411	39,542
Other assets	233,871	15,758
TOTAL ASSETS	34,912,904	18,026,784
Current liabilities:
Accounts payable and accrued liabilities	4,140,352	3,009,106
Accounts payable and accrued liabilities - related party	589,496
Oil and gas revenue distributions payable	148,103	144,526
Drilling advances - related party	680,248	234,452
Asset retirement obligation	288,784
Line of credit - related party	5,000,000
Supplemental line of credit	3,552,500	7,088,698
Convertibles notes payable, net	6,831,897
Total current liabilities	21,231,380	10,476,782
Long-term liabilities
Line of credit - related party		5,000,000
Credit facility, net	4,896,565
Convertible notes payable, net		5,308
Other long-term liabilities	67,265	23,128
Asset retirement obligation	834,660	945,419
Total liabilities	27,029,870	16,450,637
Shareholders' equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding
Common stock, $0.001 par value, 100,000,000 shares authorized, 27,718,802 and 21,964,282 shares issued and outstanding, respectively	27,719	21,964
Additional paid-in capital	28,553,736	11,405,225
Accumulated deficit	(20,698,421)	(9,851,042)
Total Shareholders’ Equity	7,883,034	1,576,147
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$ 34,912,904	$ 18,026,784

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Consolidated 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	27,718,802	21,964,282
Common stock shares outstanding	27,718,802	21,964,282

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
REVENUE:
Crude oil sales	$ 8,719,793	$ 239,810
Natural gas sales	1,525,833	68,304
NGL sales	861,948	25,002
Total revenue	11,107,574	333,116
COSTS AND EXPENSES:
Lease operating expense	722,799	167,988
Production taxes, gathering and marketing	992,817	38,634
Exploration costs	61,693	19,259
Depletion, depreciation and amortization	2,836,891	65,033
Accretion expense	99,682	30,483
Plugging expense	9,608	31,122
Loss on impairment of proved crude oil and natural gas properties		116,303
General and administrative expense	6,205,412	4,022,969
Total costs and expenses	10,928,902	4,491,791
Operating income (loss)	178,672	(4,158,675)
OTHER INCOME (EXPENSE):
Other income	39,381	573
Interest expense	(9,293,782)	(323,170)
Loss on conversion of notes payable	(1,771,650)
Total other (expense)	(11,026,051)	(322,597)
Net (loss)	$ (10,847,379)	$ (4,481,272)
Net (loss) per share:
Basic and diluted (in dollars per share)	$ (0.46)	$ (0.21)
Weighted average number of shares outstanding:
Basic and diluted (in shares)	23,530,583	21,828,853

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Earnings/(Deficit)	Total
Beginning Balance, Shares at Dec. 31, 2015	21,633,191
Beginning 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 (in 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
Shares issued for services (in 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
Beneficial conversion feature on convertible notes payable		703,753		703,753
Warrants issued		1,033,586		1,033,586
Stock-based compensation		1,140,967		1,140,967
Net (loss)			(4,481,272)	(4,481,272)
Ending Balance Shares at Dec. 31, 2016	21,964,282
Ending Balance Amount at Dec. 31, 2016	$ 21,964	11,405,225	(9,851,042)	1,576,147
Net (loss)				(2,023,885)
Ending Balance Amount at Mar. 31, 2017				6,871,271
Beginning Balance, Shares at Dec. 31, 2016	21,964,282
Beginning Balance, Amount at Dec. 31, 2016	$ 21,964	11,405,225	(9,851,042)	1,576,147
Net (loss)				(2,323,512)
Ending Balance Amount at Jun. 30, 2017				8,082,043
Beginning Balance, Shares at Dec. 31, 2016	21,964,282
Beginning Balance, Amount at Dec. 31, 2016	$ 21,964	11,405,225	(9,851,042)	1,576,147
Net (loss)				(4,037,984)
Ending Balance Amount at Sep. 30, 2017				7,208,777
Beginning Balance, Shares at Dec. 31, 2016	21,964,282
Beginning Balance, Amount at Dec. 31, 2016	$ 21,964	11,405,225	(9,851,042)	1,576,147
Issuance of common stock in connection with conversion of convertible notes payable, Shares	4,814,265
Issuance of common stock in connection with conversion of convertible notes payable, Amount	$ 4,814	7,062,528		7,067,342
Issuance of common stock for lease acquisition, Shares	470,555
Issuance of common stock for lease acquisition, Amount	$ 471	846,529		847,000
Issuance of common stock for loan extension, Shares	250,000
Issuance of common stock for loan extension, Amount	$ 250	387,250		387,500
Issuance of restricted shares, Shares	219,700
Issuance of restricted shares, Amount	$ 220	155,111		155,331
Beneficial conversion feature on convertible notes payable		4,329,365		4,329,365
Warrants issued		2,978,796		2,978,796
Share-based compensation		1,388,932		1,388,932
Net (loss)			(10,847,379)	(10,847,379)
Ending Balance Shares at Dec. 31, 2017	27,718,802
Ending Balance Amount at Dec. 31, 2017	$ 27,719	$ 28,553,736	$ (20,698,421)	7,883,034
Beginning Balance, Amount at Mar. 31, 2017				6,871,271
Net (loss)				(299,627)
Ending Balance Amount at Jun. 30, 2017				8,082,043
Net (loss)				(1,714,472)
Ending Balance Amount at Sep. 30, 2017				$ 7,208,777

Consolidated Statements of Cha6

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

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net (loss)	$ (10,847,379)	$ (4,481,272)
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities:
Depletion, depreciation and amortization	2,836,891	65,033
Deferred rental liability	6,526
Accretion of asset retirement obligation	99,682	30,483
Accretion of debt discounts and deferred financing fee	7,666,313	17,253
Loss on conversion of notes payable	1,771,650
Stock-based compensation	1,544,261	1,365,388
Impairment of proved crude oil and natural gas properties		116,303
Changes in operating assets and liabilities:
Accounts receivable - joint interest billing	(588,132)	144,168
Accounts receivable - joint interest billing - related party	81,495	(286,226)
Accounts receivable - crude oil, natural gas and NGL sales	(1,233,376)	(179,236)
Accounts receivable - other		(27,876)
Prepaid expenses and other assets	961,048	(1,160,314)
Accounts payable and accrued liabilities	7,053,693	1,338,274
Accounts payable and accrued liabilities- related party	589,496
Accounts payable - oil and gas revenue distributions payable	3,578	143,577
Drilling advances - related party	445,796	234,452
Net cash provided by (used in) operating activities	10,391,542	(2,679,993)
Cash flows from investing activities:
Additions of property, plant and equipment	(91,186)	(43,485)
Development of crude oil and natural gas properties	(17,052,313)	(3,038,339)
Acquisitions of crude oil and natural gas properties - business combinations		(4,820,742)
Acquisitions of unproved crude oil and natural gas properties	(3,202,380)	(2,854,475)
Net cash (used in) investing activities	(20,345,879)	(10,757,041)
Cash flows from financing activities:
Long-term debt - advances on initial line of credit		3,937,815
Repayment of supplemental line of credit	(3,552,500)
Borrowings under supplemental line of credit		7,105,000
Convertible notes issued for cash	11,771,349	1,737,340
Common stock issued for cash (net of offering costs)		95,000
Net cash provided by financing activities	8,218,849	12,875,155
Cash:
Net (decrease) in cash	(1,735,488)	(561,879)
Cash, beginning of period	2,449,412	3,011,291
Cash, end of period	713,924	2,449,412
Supplemental cash flow disclosure:
Cash paid for interest	640,410
Non-cash investing and financing activities:
Acquisition of crude oil and natural gas properties – business combinations		973,604
Accrued development costs of crude oil and natural gas properties	1,719,481
Addition of property, plant and equipment through tenant improvement allowance	84,460
Beneficial conversion feature in connection with convertible notes payable	4,329,365
Issuance of common stock warrants in connection with convertible notes payable	2,978,796	191,692
Issuance of common stock in connection with conversion of notes payable and accrued interest	7,067,342
Conversion of notes payable and accrued interest to common stock	5,295,692
Issuance of common stock in connection with lease acquisitions	847,000	26,686
Issuance of common stock for property acquisition		$ 56,700
Issuance of common stock in connection with deferred financing fee	387,500
Accounts payable paid with credit facility borrowings	4,895,128
Financing fee paid through credit facility borrowings	104,871
Revisions and other non-cash changes to asset retirement obligation	127,826
Forgiveness of accounts payable in connection with the sale of proven oil and gas properties	$ 4,683

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	12 Months Ended
	Dec. 31, 2017
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 , and is currently focused in the Denver-Julesburg Basin, or DJ Basin, in northeast Colorado.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION	12 Months Ended
	Dec. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Principles of Consolidation The consolidated financial statements include the accounts and balances of the Company and its wholly-owned subsidiary, CFW Resources, LLC, a Colorado limited liability company, and have been prepared in accordance with accounting principles generally accepted in the United States (“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”) Accounting Standards Codification (“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 consolidated 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 consolidated 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 consolidated 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 stock-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 Note 17, Unaudited Crude Oil and Natural Gas Reserves Information. 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 considered anti-dilutive. Potentially dilutive securities at December 31, 2017 and 2016 are as follows: December 31, December 31, 2017 2016 Exercisable stock options 4,347,500 3,010,000 Warrants issued to underwriter 255,600 255,600 Warrants issued to convertible note holders 6,666,600 1,294,987 Warrants issued to placement agent - convertible note offering 666,600 129,526 Shares underlying convertible notes 6,372,066 1,295,067 Total 18,308,366 5,985,180 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 consolidated 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. Allowance for doubtful accounts The Company recognizes an allowance for losses on accounts receivable in an amount equal to the estimated probable losses net of recoveries. The allowance is based on an analysis of historical bad debt experience, current receivables aging, and expected future write-offs, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. The expense associated with the allowance for doubtful accounts is recognized as other expense. We have not recorded an allowance for doubtful accounts as of December 31, 2017 and 2016, respectively. 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 offering completion, 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. Capitalized Interest Costs The Company has capitalized certain interest costs related to unproved properties that the Company is currently preparing for their intended use. The interest costs that have been capitalized to oil and gas properties total $0.3 million and $nil for the years ended December 31, 2017 and 2016, respectively. Concentration of Credit Risk and Major Customers The Company is exposed to credit risk in the event of nonpayment by counterparties, a significant portion of which are concentrated in energy related industries. The creditworthiness of customers and other counterparties is subject to regular review. The Company does not believe the loss of any single purchaser of its production would materially impact its operating results, as crude oil, natural gas, and NGLs are products with well-established markets and numerous purchasers in the Company’s operating regions. The Company had the following major customers, which accounted for 10 percent or more of its total crude oil, natural gas, and NGL production revenue for at least one of the periods presented: For the Years Ended December 31, 2017 2016 Great Western Operating Company % % Kerr-McGee Oil and Gas Onshore % % Ward Petroleum % % DCP Midstream % % PDC Energy, Inc. % % The Company maintains its primary bank accounts with a large, multinational bank that has branch locations in the Company’s areas of operations. The Company’s policy is to diversify its concentration of cash and cash equivalent investments among multiple institutions and investment products to limit the amount of credit exposure to any single institution or investment. 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 depletion, depreciation 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 operations. 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 units-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 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 as 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. Depletion, Depreciation and Amortization Depletion, depreciation 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 units-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 units-of-production method using total estimated proved reserves. In arriving at rates under the units-of-production method, the quantities of recoverable crude oil and natural gas reserves are established based on estimates made by the Company and independent reserve engineers. Upon sale or retirement of properties, the cost and related accumulated depletion, depreciation and amortization are eliminated from the accounts and the resulting gain or loss, if any, is recognized. Units-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. 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 partners’ share of expenses incurred. 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. 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. The Company complies with authoritative accounting guidance regarding uncertain tax provisions. The entire amount of unrecognized tax benefit reported by the Company would affect its effective tax rate if recognized. Interest expense in the accompanying statements of operations includes a negligible amount associated with income taxes. The Company does not expect a significant change to the recorded unrecognized tax benefits in 2018. Asset Retirement Obligation Asset retirement obligations associated with tangible long-lived assets are accounted for in accordance with Accounting Standards Codification (“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 credit-adjusted risk-free interest 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. Stock-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 expected term of outstanding stock-based awards 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 for these awards , 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, “Financial Instruments,” 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 Level 2 Level 3 Going Concern Assessment Pursuant to Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements – Going Concern 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 consolidated 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 consolidated financial statement issuance date. As shown in the accompanying consolidated financial statements, the Company incurred a net loss of $10.8 million during the year ended December 31, 2017, and as of that date, the Company's current liabilities exceeded its current assets by $17.8 million, the Company had a cash balance of $0.7 million and other current assets of $2.7 million. As of December 31, 2017, the Company had insufficient working capital and revenues from operations to meet its maturing debt obligations and other liabilities incurred and to be incurred in connection with the Company’s development activities. The Company will also need to generate sufficient cash flow from operations and sell equity or debt to fund further drilling 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. Management has evaluated these conditions and determined that a reduction in the working capital deficit subsequent to December 31, 2017 as a result of a new term Credit Facility (Note 6) coupled with anticipated increased revenues from the Company’s non-operated and operated properties, may allow the Company to meet its maturing debt and interest obligations. However, to continue to execute its business plan, additional capital will be required. 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. The Company’s consolidated 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. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to recognize a right-of-use asset and a lease liability for virtually all leases currently classified as operating leases. The Company is currently analyzing the impact this standard will have on the Company’s leases, including non-cancelable leases, drilling rigs, pipeline gathering, transportation, gas processing, and other existing arrangements. Further, the Company is evaluating current accounting policies, applicable systems, controls, and processes to support the potential recognition and disclosure changes resulting from ASU 2016-02. Based upon the Company’s initial assessment, ASU 2016-02 is expected to result in an increase in assets and liabilities recorded. The Company will adopt ASU 2016-02 using a modified retrospective method on the effective date of January 1, 2019. In January 2018, the FASB issued ASU No. 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 (“ASU 2018-01”). ASU 2018-01 provides an optional transitional practical expedient which allows entities to exclude from evaluation land easements that exist or expired before adoption of ASU 2016-02. The Company is currently evaluating this practical expedient and will adopt ASU 2018-01 at the same time as ASU 2016-02. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”). ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company has determined that the adoption of ASU 2017-01 on the effective date of January 1, 2018, using a prospective method, does not impact the Company’s current consolidated financial statements or disclosures. However, the clarified definition of a business will be applied by the Company to future transactions. In February 2018, the FASB issued ASU No. 2018-02, Income Statement–Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). ASU 2018-02 permits entities to reclassify tax effects stranded in accumulated other comprehensive income (loss) to retained earnings as a result of the 2017 Tax Act. ASU 2018-02, is to be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the United States federal corporate income tax rate in the 2017 Tax Act is recognized. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted as outlined in ASU 2018-02. The Company is currently evaluating the provisions of this guidance and assessing the potential impact on the Company’s consolidated financial statements and disclosures. 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 plans to adopt the guidance using the modified retrospective method on the effective date of January 1, 2018. The Company has determined that the adoption of, ASU 2014-09, does not impact the Company’s current consolidated financial statements or disclosures. There are no other ASUs applicable to the Company that would have a material effect on the Company’s consolidated financial statements and related disclosures that have been issued but not yet adopted by the Company as of December 31, 2017, and through the filing of this report.

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Dec. 31, 2017
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 exercised its option under a participation agreement (the "Participation Agreement") 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 $2.3 million. 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, 2016 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 In accordance with FASB Topic ASC 805, 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 PDC assets acquisition had occurred on January 1, 2015. The unaudited pro forma results reflect significant pro forma adjustments related to depletion, depreciation and amortization 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 $ 466,138 $ 423,653 Net income (loss) $ (4,498,325) $ (1,439,823) Net income (loss) per common share basic and diluted $ (0.21) $ (0.08) 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 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 $2.5 million. An 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, 2016 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 In accordance with FASB Topic ASC 805, 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 $ 595,074 $ 237,035 Net income (loss) $ (4,437,877) $ (1,551,850) Net income (loss) per common share basic and diluted $ (0.20) $ (0.09)

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2017
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT	NOTE 4 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment balances were comprised of furniture, fixtures, and equipment and are shown below: December 31, 2017 2016 Property, plant and equipment $ 223,517 $ 47,870 Accumulated depreciation (55,106) (8,328) Total $ 168,411 $ 39,542 Depreciation expense recorded for the years ended December 31, 2017 and 2016 amounted to $46,778 and $5,772, respectively.

CRUDE OIL AND NATURAL GAS PROPE

CRUDE OIL AND NATURAL GAS PROPERTIES	12 Months Ended
	Dec. 31, 2017
CRUDE OIL AND NATURAL GAS PROPERTIES
CRUDE OIL AND NATURAL GAS PROPERTIES	NOTE 5 – CRUDE OIL AND NATURAL GAS PROPERTIES The Company’s crude oil and natural gas properties are located entirely within the United States. The net capitalized costs related to the Company’s crude oil and natural gas producing activities were as follows: As of December 31, 2017 2016 Proved oil and gas properties $ 22,144,366 $ 8,132,881 Unproved oil and gas properties (1) 1,919,335 4,092,550 Wells in progress (2) 9,858,262 2,168,092 Total capitalized costs 33,921,963 14,393,523 Accumulated depletion, depreciation and amortization (2,849,374) (783,320) Net capitalized costs $ 31,072,589 $ 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. 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, 2017 2016 Exploration costs $ 61,693 $ 2,700 Development costs 18,771,794 3,038,339 Acquisition of properties Proved — 3,630,195 Unproved 4,049,380 4,045,022 Total $ 22,882,867 $ 10,716,256 During the years ended December 31, 2017 and 2016, depletion, depreciation and amortization expense was $2.8 million and $0.1 million, respectively. 2017 Activity Significant acquisitions during 2017 included the following: On April 3, 2017, the Company completed an 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 $1.3 million. The Company paid $0.5 million of the Company’s net purchase price in cash, and $0.8 million was paid through the issuance 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 $0.6 million 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 $0.4 million following the Company’s working interest partner’s 50% participation in the transaction. The transaction was effective April 1, 2017. On September 15, 2017, the Company completed a purchase of additional oil and gas leases covering approximately 400 gross (200 net) acres. The gross purchase price was $0.4 million, or $0.2 million to the Company’s retained interest following the Company’s working interest partner’s 50% participation in the transaction. The location of the acreage is contiguous with that of the acreage acquired in the April 3, 2017 transaction described above. 2016 Activity Significant acquisitions during 2016 included the following: On March 10, 2016, the Company acquired certain surface rights and easements on lands located in Township 1 South, Range 67 West in its Todd Creek Farms prospect in exchange for $0.2 million in cash. The surface rights and easements allow the Company to access its Shook pad wells. 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 $0.6 million. 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 $0.3 million . 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 wells located on its Todd Creek Farms prospect. The Company’s net cost for the royalty interests was $1.6 million.

DEBT

DEBT	12 Months Ended
	Dec. 31, 2017
DEBT
DEBT	NOTE 6 – DEBT The following table presents account balances and activity for our various debt instruments as of December 31: Initial Supplemental Convertible Convertible Line of Line of Notes Notes Credit Credit Credit Series A Series B Facility December 31, 2015 Principal Balance $ (1,062,185) $ - $ - $ - $ - Principal Borrowings (3,937,815) (7,105,000) (1,942,600) - - Repayments - - - - - Conversions - - - - - Beginning Balance - Unamortized Debt Issuance Costs - Original Issuer Discount - - - - - Additions - - 205,260 - - Accretion - - (557) - - Ending - Unamortized Debt Issuance Costs - Original Issuer Discount - - 204,703 - - Beginning Balance - Unamortized Debt Issuance Costs - Beneficial Conversion Feature - - - - - Additions - - 1,033,585 - - Accretion - - (2,823) - - Ending - Unamortized Debt Issuance Costs - Beneficial Conversion Feature - - 1,030,762 - - Beginning Balance - Unamortized Debt Issuance Costs - Warrant Discount - - - - - Additions - - 703,753 - - Accretion - - (1,926) - - Ending - Unamortized Debt Issuance Costs - Warrant Discount - - 701,827 - - December 31, 2016 Principal Balance $ (5,000,000) $ (7,105,000) $ (1,942,600) $ - $ - December 31, 2016, Total, net $ (5,000,000) $ (7,105,000) $ (5,308) $ - $ - Principal Borrowings - - (8,057,400) (4,724,900) (5,000,000) Repayments - (3,552,500) - - - Conversions - - 5,166,800 - - Beginning Balance - Unamortized Debt Issuance Costs - Original Issuer Discount - - 204,703 - - Additions - - 804,750 205,211 104,871 Accretion - - (742,944) (36,887) (1,436) Ending - Unamortized Debt Issuance Costs - Original Issuer Discount - - 266,509 168,324 103,435 Beginning Balance - Unamortized Debt Issuance Costs - Beneficial Conversion Feature - - 1,030,762 - - Additions - - 4,272,867 56,500 - Accretion - - (3,978,881) (11,959) - Ending - Unamortized Debt Issuance Costs - Beneficial Conversion Feature - - 1,324,748 44,541 - Beginning Balance - Unamortized Debt Issuance Costs - Warrant Discount - - 701,827 - - Additions - - 2,978,791 - - Accretion - - (2,758,537) - - Ending - Unamortized Debt Issuance Costs - Warrant Discount - - 922,081 - - December 31, 2017, Principal Balance $ (5,000,000) $ (3,552,500) $ (4,833,200) $ (4,724,900) $ (5,000,000) December 31, 2017, Total, net $ (5,000,000) $ (3,552,500) $ (2,319,862) $ (4,512,035) $ (4,896,565) Initial Line of Credit On May 13, 2015, the Company entered into a revolving line of credit facility agreement (“Initial Line of Credit”) with PEO which provided the Company with a revolving line of credit of up to $5.0 million, maturing June 30, 2018. PEO is the beneficial owner of approximately 11.7% of the Company’s outstanding common stock. The initial interest rate of 8% per year on the initial line of credit was increased twice in connection with other transactions involving the parties, the first time in September 2017 to 10% per year and the second time in December 2017 to 15% per year. The initial line of credit was repaid in full in February 2018, together with accrued interest of $0.6 million, as part of another financing. 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”) under which the Company was originally entitled to borrow up to $10.0 million . PEP III is an affiliate of PEO by virtue of having some common management personnel. Interest on the Supplemental Line of Credit initially accrued at the rate of 8% per year and the line matured on April 13, 2017. The Supplemental Line of Credit was amended on March 30, 2017, pursuant to which the Company agreed not to borrow additional amounts against the line and to repay $3.6 million 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 $3.6 million 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 again agreed to modify the Supplemental Line of Credit. The PEP III Agreement further extended the maturity date of the Supplemental Line of Credit 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, in order to expand the area of mutual interest (“AMI”) and to grant PEP III an option to participate under the Participation Agreement. As amended, the Participation Agreement provides PEO the option to acquire up to a 45% interest and, so long as the Supplemental Line of Credit remained 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. As described more fully below , on December 21, 2017, the interest rate on the Supplemental Line of Credit was increased from 10% to 15%, and on February 1, 2018, concurrent with the closing of another credit facility, a principal payment in the amount of $1.5 million plus accrued interest of $0.5 million was made on the Supplemental Line of Credit. 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 (“Convertible Notes”) with an aggregate face value of $10.0 million and common stock purchase warrants . The Convertible Notes are unsecured, bear interest at 10% per year and are due and payable on December 31, 2018. At the option of the holders of the Convertible Notes, the principal amount of the Convertible Notes, and any accrued but unpaid interest, are convertible into shares of the Company's common stock at a conversion price of $1.50 per share. The Company received net proceeds of approximately $9.0 million from the private placement, after placement agent fees and other associated expenses. On October 16, 2017, in connection with the sales of Series B Unsecured Convertible Promissory Notes (“Series B Notes”) as described more fully below, $5.2 million in principal of the Convertible Notes and $0.1 million in accrued interest was converted into 4,814,265 shares of common stock at a conversion rate of $1.10 per share. The Company has recorded a loss on conversion of $1.8 million in connection with the reduction of the initial contractual conversion rate. In accordance with ASC 470, Debt, the proceeds from the sale of the Convertible Notes was allocated between the conversion feature embedded in the Convertible Notes and the warrants attached to the notes 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 has been recorded as a reduction of the carrying value of the Convertible Notes and is being amortized to interest expense using the effective interest method over the term of the Convertible Notes. The fair value of the warrants has been recorded as a reduction to the carrying value of the Convertible Notes and is being amortized to interest expense using the effective interest method over the term of the Convertible Notes. The fair value of the warrants issued to the placement agent in connection with the offering of $1.0 million has been recorded as a charge to additional paid-in capital. Series B Convertible Notes In September and October 2017, the Company sold Series B Notes in the principal amount of $4.7 million . The Series B Notes are unsecured, bear interest at 15% per year, and are due and payable on December 31, 2018. At the option of the holders , the principal amount of the Series B Notes and any accrued but unpaid interest are convertible into shares of the Company's common stock at a conversion price of $1.50 per share. The Company netted $4.5 million from the sale of the Series B Notes after expenses . In accordance with ASC 470, the fair value of the beneficial conversion feature of $ 56,500 has been recorded as a reduction of the carrying value of the Series B Notes and is being amortized to interest expense using the effective interest method over the term of the Series B Notes. Secured Credit Facility On December 21, 2017, the Company entered into a letter agreement (“Letter Agreement”) with Providence Energy Ltd. (“PEC”), and Fifth Partners, LLC (“Fifth,” and together with PEC, the “Lenders”) pursuant to which the Company borrowed $5.0 million from PEC (“Initial Funding”). PEC is an affiliate of PEO by virtue of common management. In connection with the Initial Funding, the Company and the Lenders agreed to negotiate a second credit facility of $20.0 million (“Second Funding”), which was completed on February 1, 2018. Interest on the outstanding principal balance of the Initial Funding accrued at the three-month LIBOR plus 14%, or 15.7%. As of December 31, 2017, accrued interest payable related to the Initial Funding amounted $21,801. In connection with the Initial Funding, the Company recorded debt issuance costs in the amount of $0.1 million and incurred interest expense in the amount of $1,437 related to the accretion of these costs.

ASSET RETIREMENT OBLIGATION

ASSET RETIREMENT OBLIGATION	12 Months Ended
	Dec. 31, 2017
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, 2017, the Company assumed an inflation rate of 2.0%, an estimated average asset life of 29.9 years, and a credit-adjusted risk-free interest rate of 11.26% to 14.0%. For the year ended December 31, 2016, the Company assumed an inflation rate of 2.0%, an estimated average life of 13.2 years, and a credit-adjusted risk-free rate of 9.48% to 10.73%. The following reconciles the value of the asset retirement obligation for the periods presented: December 31, 2017 2016 Asset retirement obligation, beginning of period $ 945,419 $ 34,776 Liabilities settled (1) (50,163) 1,990 Liabilities incurred 91,999 878,170 Revisions in estimated liabilities 36,507 — Accretion 99,682 30,483 Asset retirement obligation, end of period $ 1,123,444 $ 945,419 _________________________ (1) Reflects liabilities settled through plugging and abandonment activities and divestitures of properties. Accretion expense recorded for the year ended December 31, 2017 and 2016 was $0.1 million and $30,483, respectively.

ACCOUNTS PAYABLE AND ACCRUED LI

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	12 Months Ended
	Dec. 31, 2017
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	NOTE 8 - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities were comprised of the following amounts: December 31, 2017 2016 Trade payables and accrued liabilities $ 1,544,112 $ 2,416,551 Accrued interest payable 876,455 302,477 Liabilities incurred in connection with acquisition of crude oil and natural gas properties 1,719,785 290,078 Total $ 4,140,352 $ 3,009,106

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2017
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY	NOTE 9 - SHAREHOLDERS’ EQUITY Common Stock As of December 31, 2017 and 2016, the Company had 100,000,000 shares of common stock authorized with a par value of $0.001 per share. As of December 31, 2017 and 2016, the Company had 27,718,802 and 21,964,282 shares issued and outstanding, respectively. Activity for the year ended December 31, 2017 included the following: · On October 16, 2017, the Company issued 4,814,265 shares of common stock valued at $1.38 in conversion of $5.2 million of Convertible Notes and $0.1 million in accrued interest (Note 6) ; · On September 23, 2017, the Company issued 250,000 shares of common stock valued at $1.55 to PEO in connection with the execution of a Letter Agreement; · 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; and · 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. 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 10); · 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 10); · 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; and · 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. Preferred Stock As of December 31, 2017 and 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, 2017 and 2016, there were no shares of preferred stock issued or outstanding. Warrants The table below summarizes warrants outstanding as of December 31, 2017: Shares Underlying Exercise Price Outstanding Warrants Per Share 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 Activity for the year ended December 31, 2017: · On January 20, 2017 and January 30, 2017, the Company issued 537,260 warrants exercisable at $1.50 per share and expiring on December 31, 2021 in connection with a private placement (Note 6) ; and · On January 20, 2017 and January 30, 2017, the Company issued 5,371,579 warrants exercisable at $3.00 per share and expiring on December 31, 2019, also in connection with the private placement (Note 6) . Activity for the year ended December 31, 2016: · On December 30, 2016, the Company issued 129,516 warrants exercisable at $1.50 per share and expiring on December 31, 2021 in connection with the closing of the first round of the Company’s private placement (Note 6) ; and · On December 30, 2016, the Company issued 1,294,987 warrants exercisable at $3.00 per share and expiring on December 31, 2019 in connection with the closing of the first round of the Company’s private placement (Note 6) .

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2017
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, 2017, the Board of Directors granted non-qualified options to employees, directors and consultants of the Company under the Plan to acquire 422,000 shares of common stock. A summary of activity under the Plan for the years ended December 31, 2017 and 2016 is as follows: Weighted Remaining Average Contractual Number of Exercise Term Shares Price (Years) Outstanding, December 31, 2015 2,275,000 $ 0.33 6.50 Exercisable, December 31, 2015 2,200,000 $ 0.30 6.72 Granted 2,400,000 $ 1.16 5.34 Exercised — — — Forfeited — — — Outstanding, December 31, 2016 4,675,000 $ 0.76 5.39 Exercisable, December 31, 2016 3,010,000 $ 0.54 5.97 Granted 422,000 $ 1.86 5.69 Exercised — — — Forfeited (100,000) — — Outstanding, December 31, 2017 4,997,000 $ 0.85 4.44 Exercisable, December 31, 2017 4,347,500 $ 0.74 4.48 The fair value of each stock-based award was estimated on the date of the grant using the Black-Scholes pricing model that incorporates key assumptions including volatility of the Company’s stock , 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, 2017, the Company expects no additional forfeitures. The table below summarizes assumptions utilized in the Black-Scholes pricing model for the years ended 2017 and 2016: December 31, December 31, 2017 2016 Expected option term—years 2.5 - 3.25 1.5 - 2.5 Risk-free interest rate 1.75% - 1.93% 0.94% - 1.31% Expected dividend yield — — Volatility 162% - 169% 142% - 214% Forfeited — — During the years ended December 31, 2017 and 2016, the Company recorded stock-based compensation related to options of $1.4 million, and $1.1 million, respectively. Unvested stock-based option compensation at December 31, 2017 amounted to $0.6 million.

PROVISION FOR INCOME TAXES

PROVISION FOR INCOME TAXES	12 Months Ended
	Dec. 31, 2017
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, 2017. 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, 2017 and 2016 are subject to a full valuation allowance. Net deferred tax assets and liabilities consist of the following components as of December 31, 2017 and 2016: Year Ended December 31, 2017 2016 Deferred tax assets - current: Exploration costs $ — $ — Deferred tax assets - noncurrent: NOL carryover 2,109,423 4,287,567 Stock based compensation 727,631 576,808 Asset retirement obligation 277,015 350,333 Charitable contribution 814 — Total deferred tax assets 3,114,883 5,214,708 Deferred tax liabilities - current: Property and equipment (15,251) (1,990) Impairment, intangible drilling costs and other exploration costs capitalized (935,482) (1,796,102) Debt discount - Beneficial conversion feature (337,518) — Total deferred tax liabilities (1,288,251) (1,798,092) Net deferred tax assets 1,826,632 3,416,616 Valuation allowance (1,826,632) (3,416,616) 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, 2017 and 2016 due to the following: Year Ended December 31, 2017 2016 Tax at statutory federal rate $ (3,688,109) $ (1,520,524) Permanent difference 2,258,353 2,378 State taxes, net of federal (331,474) (136,847) Depletion, depreciation, amortization and impairment — — Change in valuation allowance 396,256 938,026 Effect of the Tax Cuts and Jobs Act 918,446 Other 446,528 716,967 Provision (benefit) for income taxes $ — $ — At December 31, 2017, the Company had net operating loss carry-forwards of approximately $8.6 million that may be offset against future taxable income from the years 2018 through 2037. 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. ASC 740 requires the recognition of the tax effects of the of the Act for annual periods that include December 22, 2017. At December 31, 2017, the Company has made reasonable estimates of the effects on its existing deferred tax balances. The Company has remeasured certain federal deferred tax assets and liabilities based upon the rates at which they are expected to reverse in the future, which is generally 21 percent. The provisional amount recognized related to the remeasurement of its federal deferred tax balance was approximately $0.9 million, which was subject to a valuation allowance at December 31, 2017. The Company will continue to analyze the Tax Act and future IRS regulations, refine its calculations and gain a more thorough understanding of how individual states are implementing this new law. This further analysis could potentially affect the measurement of deferred tax balances or potentially give rise to new deferred tax amounts.

RELATED PARTIES

RELATED PARTIES	12 Months Ended
	Dec. 31, 2017
RELATED PARTIES
RELATED PARTIES	NOTE 12 – RELATED PARTIES Providence Initial Line of Credit · At December 31, 2017 and 2016, the Company had drawn $5.0 million and $5.0 million on the initial line of credit and had accrued interest in the amount of $0.5 million and $ 0.3 million, respectively. · On September 23, 2017, the Company issued 250,000 shares of common stock valued at $1.55 to PEO in connection with the execution of a letter agreement and extension of a loan (Notes 6 and 9). The Company recorded interest expense in the amount of $0.1 million as related to the accretion of this debt discount. As of December 31, 2017, the unaccreted portion of the discount amounted to $0.3 million. Credit Facility · Related to the execution of a Letter Agreement pursuant to the Initial Funding of a Credit Facility on December 21, 2017 (Note 6) , the Company drew $5.0 million on the facility resulting in a liability to a PEO - affiliated entity in the amount of $5.0 million in principal and $21,801 in accrued interest as of December 31, 2017. PEO beneficially owns approximately 11.7% of the Company’s common stock . Operations · At December 31, 2017, the Company has recorded a net $0.2 million 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 December 31, 2017, the Company has recorded $0.7 million 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. Convertible Notes In January 2017, the Company sold Series A Notes to a total of four employees and directors who collectively purchased Series A Notes in the aggregate principal amount of $0.2 million (Note 6), on the same terms and conditions as the other purchasers. On October 16, 2017, ten of the Company’s officers and directors converted Series A Notes in the aggregate principal amount of $0.7 million and accrued interest of $20,670 into 691,516 shares of common stock at $1.10 per share. (Notes 6 and 9) Ten employees, officers and directors of the Company received cash interest payments for interest of $0.1 million related to Series A and Series B notes during the year ended December 31, 2017. Series B Convertible Notes In September and October 2017, the Company sold Series B Notes to ten of the Company’s officers and directors who collectively purchased $0.6 million in aggregate principal amount (Note 6), on the same terms and conditions as the other purchasers, with the exception that the Company did not pay commissions on these sales.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2017
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 March 2021. The following is a schedule by year of future minimum rental payments required under the operating lease agreement: Year ending December 31, Amount 2018 $ 129,738 2019 133,698 2020 137,658 2021 34,662 2022 — Total $ 435,756 Lease expense totaled $0.1 million and $34,651 for the years ended December 31, 2017 and December 31, 2016, respectively. Employment Agreements 2017 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. 2016 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, Messrs. Foley and 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.

REVISION OF PRIOR PERIOD FINANC

REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS	12 Months Ended
	Dec. 31, 2017
Accounting for the fair value of the convertible promissory notes and warrants issued in the Company's private placement
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS	NOTE 14 – REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS In connection with the preparation of its 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 a private placement during December 2016 (Note 6). 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 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 corrected these errors for the year ended December 31, 2016 by revising the financial statements beginning in the period ended March 31, 2017. 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 $

RESTATEMENT OF PRIOR PERIOD CON

RESTATEMENT OF PRIOR PERIOD CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	12 Months Ended
	Dec. 31, 2017
Error relating to calculation of depletion of oil and gas properties
RESTATEMENT OF PRIOR PERIOD CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
RESTATEMENT OF PRIOR PERIOD CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	NOTE 15 – RESTATEMENT OF PRIOR PERIOD CONDENSED CONSOLIDATED FINANCIAL STATEMENTS In connection with the preparation of its consolidated financial statements for the year ended December 31, 2017, the Company identified a mathematical error related to the calculation of the depletion, depreciation and amortization of oil and gas properties as recorded during the periods ended March 31, 2017, June 30, 2017 and September 30, 2017. The issue resulted from the application of an incorrect conversion factor when evaluating NGL volumes. The impact of the correction of this issue has been recorded during the quarter ended December 31, 2017. In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality , 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 interim period. Accordingly, the Company has corrected these errors in total for the year ended December 31, 2017 by revising the consolidated financial statements. Periods presented herein will be revised, as applicable, in future filings. The following tables present the restatements to the consolidated balance sheets as of, and the consolidated statements of operations for the periods presented: Consolidated Balance Sheets As of March 31, 2017 As Reported Adjustments As Restated Crude oil and natural gas properties, net: Accumulated depletion, depreciation and amortization $ (1,229,486) $ 115,254 $ (1,114,232) Crude oil and natural gas properties, net $ 20,510,001 $ 115,254 $ 20,625,255 Total assets $ 28,739,336 $ 115,254 $ 28,854,590 Shareholders’ equity: Accumulated deficit $ (11,990,181) $ 115,254 $ (11,874,927) Total shareholders’ equity $ 6,756,017 $ 115,254 $ 6,871,271 Total liabilities and shareholders’ equity $ 28,739,336 $ 115,254 $ 28,854,590 As of June 30, 2017 As Reported Adjustments As Restated Crude oil and natural gas properties, net: Accumulated depletion, depreciation and amortization $ (2,765,660) $ 549,096 $ (2,216,564) Crude oil and natural gas properties, net $ 24,958,027 $ 549,096 $ 25,507,123 Total assets $ 35,682,868 $ 549,096 $ 36,231,964 Shareholders’ equity: Accumulated deficit $ (12,723,650) $ 549,096 $ (12,174,554) Total shareholders’ equity $ 7,532,947 $ 549,096 $ 8,082,043 Total liabilities and shareholders’ equity $ 35,682,868 $ 549,096 $ 36,231,964 As of September 30, 2017 As Reported Adjustments As Restated Crude oil and natural gas properties, net: Accumulated depletion, depreciation and amortization $ (3,918,935) $ 865,697 $ (3,053,238) Crude oil and natural gas properties, net $ 28,698,193 $ 865,697 $ 29,563,890 Total assets $ 32,918,686 $ 865,697 $ 33,784,383 Shareholders’ equity: Accumulated deficit $ (14,754,722) $ 865,697 $ (13,889,025) Total shareholders’ equity $ 6,343,080 $ 865,697 $ 7,208,777 Total liabilities and shareholders’ equity $ 32,918,686 $ 865,697 $ 33,784,383 Consolidated Statements of Operations Three months ended Three months ended Six months ended Three months ended Nine months ended March 31, 2017 June 30, 2017 June 30, 2017 September 30, 2017 September 30, 2017 Net (loss), as reported $ (2,139,139) $ (733,469) $ (2,872,608) $ (2,031,072) $ (4,903,680) Adjustments: Previously reported depletion, depreciation and amortization $ (446,166) $ (1,536,174) $ (1,982,341) $ (1,153,273) $ (3,135,614) Total adjustment 115,254 433,842 549,096 316,600 865,696 Corrected depletion, depreciation and amortization (330,912) (1,102,332) (1,433,245) (836,673) (2,269,918) Net (loss), as restated $ (2,023,885) $ (299,627) $ (2,323,512) $ (1,714,472) $ (4,037,984) Net (loss) per share, as reported $ (0.10) $ (0.03) $ (0.13) $ (0.09) $ (0.22) Net (loss) per share, as restated $ (0.09) $ (0.01) $ (0.10) $ (0.08) $ (0.18)

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2017
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 16 – SUBSEQUENT EVENTS On February 1, 2018, the Company entered into a Secured Term Credit Agreement (“Credit Agreement”) with Providence Wattenberg, LP and 5NR Wattenberg, LLC (the “Secured Lenders”). Each of Providence and 5NR are affiliates of the Lenders under the Letter Agreement. Under the Credit Agreement, the Secured Lenders agreed to loan the Company a total of $25.0 million (the “Loan”), including the $5.0 million previously advanced pursuant to the Letter Agreement. Interest on the outstanding principal balance of the Loan accrues at the rate of 14% per year plus the greater of three-month LIBOR or 1%, but in no event to exceed 17%. Interest payments are due monthly beginning March 1, 2018. Repayment of the Loan is secured by a lien on all of the Company’s assets, which is equal in priority to the lien securing the remaining indebtedness owed to PEP III. All principal and accrued interest under the Credit Agreement is due February 1, 2020 (“Maturity Date”). At any time, the Lenders may convert 20% of the outstanding principal of the Loan into common stock of the Company at a price of $1.15 per share and the remaining principal at a price of $1.55 per share. The Company also granted to the Lenders:  · an option to purchase up to 50% of any securities offered by the Company in any private or public offering until December 31, 2018, and 25% of any securities offered thereafter; and   The Company also agreed to certain affirmative and negative covenants in connection with the Loan, including the obligation to appoint up to three persons to the Company’s Board of Directors, two of whom would be designated by Providence and one by 5NR, and at least one of whom shall qualify as independent under the rules of the NYSE American.

UNAUDITED CRUDE OIL AND NATURAL

UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION	12 Months Ended
	Dec. 31, 2017
UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION
UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION	NOTE 17 – UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION The reserves at December 31, 2017, 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. 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: Natural Oil Gas NGL’s Total (Bbls) (Mcf) (Bbls) (BOE) Proved Reserves: Balance as of December 31, 2014 159 — — 159 Revisions of previous estimates (122) — — (122) Extensions and discoveries — — — — Sales of reserves in place — — — — Improved recovery — — — — Purchase of reserves — — — — Production (37) — — (37) Balance as of December 31, 2015 — — — — Revisions of previous estimates — — — — Extensions and discoveries 2,710,437 10,498,397 1,570,454 6,030,624 Sales of reserves in place — — — — Improved recovery — — — — Purchase of reserves 55,669 1,020,516 62,244 287,999 Production (4,902) (26,058) (1,510) (10,755) Balance as of December 31, 2016 2,761,204 11,492,855 1,631,188 6,307,868 Revisions of previous estimates (388,211) 292,477 38,668 (300,797) Extensions and discoveries 839,738 4,183,757 631,149 2,168,180 Sales of reserves in place — — — — Improved recovery — — — — Purchase of reserves — — — — Production (188,529) (549,846) (50,111) (330,281) Balance as of December 31, 2017 3,024,202 15,419,243 2,250,894 7,844,970 Proved Developed Reserves, included above Balance as of December 31, 2015 — — — — Balance as of December 31, 2016 260,284 1,788,895 181,655 740,088 Balance as of December 31, 2017 521,354 3,752,330 387,430 1,534,172 Proved Undeveloped Reserves, included above Balance as of December 31, 2015 — — — — Balance as of December 31, 2016 2,500,920 9,703,960 1,449,533 5,567,780 Balance as of December 31, 2017 2,502,847 11,666,911 1,863,465 6,310,797 The values for the 2017 oil, natural gas and NGL reserves are based on the twelve-month arithmetic average of the first day of the month prices for the period from January through December 31, 2017. The unweighted arithmetic average first-day-of-the-month prices for the prior twelve months was $51.34 per barrel (West Texas Intermediate price) for crude oil and NGLs and $2.98 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, 2017 was $45.03 per barrel for oil, $1.71 per Mcf for natural gas and $20.42 per barrel for NGLs. The values for the 2016 oil, natural gas and NGL reserves are based on the twelve-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 was $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 assign a value to its proved reserves as of December 31, 2015 due to immaterial quantity estimates and a volatile price environment. For the year ended December 31, 2017, the Company reported extensions and discoveries of 2,168,180 BOE primarily as result of the conversion of 18 PUD locations in the Todd Creek Farms prospect area during 2017 coupled with the addition of new PUD locations due to economic field extensions adjacent to Company leases. The Company reported downward revisions of previous estimates of 300,797 BOE primarily related to the removal of uneconomic PUD locations. 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. 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-day-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; (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 December 31, 2017 2016 2015 Future cash inflows $ 208,459 $ 148,596 $ 5 Future cash outflows: Production cost (48,929) (35,038) (3) Development cost (58,784) (37,667) — Future income tax (16,006) (5,802) — Future net cash flows 84,740 70,089 2 Adjustment to discount future annual net cash flows at 10% (35,054) (29,925) (2) Standardized measure of discounted future net cash flows $ 49,686 $ 40,164 $ — 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 December 31, 2017 2016 2015 Standardized measure, beginning of year $ 40,164 $ — $ 5 Sales of oil and gas, net of production cost (9,392) (126) (3) Net change in sales prices, net of production cost 10,263 489 — Discoveries, extensions and improved recoveries 11,979 76,445 — Change in future development costs (4,050) (37,667) — Development costs incurred during the period that reduced future development cost 1,144 — — Sales of reserves in place — — — Revisions of quantity estimates (559) — (2) Accretion of discount 4,275 130 — Net change in income tax (6,810) (2,587) — Purchase of reserves — 6,021 — Changes in timing of rates of production 2,672 (2,541) — Standardized measure, end of year $ 49,686 $ 40,164 $ —

SUMMARY OF SIGNIFICANT ACCOUN25

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (Policies)	12 Months Ended
	Dec. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts and balances of the Company and its wholly-owned subsidiary, CFW Resources, LLC, a Colorado limited liability company, and have been prepared in accordance with accounting principles generally accepted in the United States (“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”) Accounting Standards Codification (“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 consolidated 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 consolidated 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 consolidated 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 stock-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 Note 17, Unaudited Crude Oil and Natural Gas Reserves Information.
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 considered anti-dilutive. Potentially dilutive securities at December 31, 2017 and 2016 are as follows: December 31, December 31, 2017 2016 Exercisable stock options 4,347,500 3,010,000 Warrants issued to underwriter 255,600 255,600 Warrants issued to convertible note holders 6,666,600 1,294,987 Warrants issued to placement agent - convertible note offering 666,600 129,526 Shares underlying convertible notes 6,372,066 1,295,067 Total 18,308,366 5,985,180
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 consolidated financial statements are generated. Differences are reflected in the accounting period that payments are received from the purchaser.
Accounts Receivable	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.
Allowance for doubtful accounts	Allowance for doubtful accounts The Company recognizes an allowance for losses on accounts receivable in an amount equal to the estimated probable losses net of recoveries. The allowance is based on an analysis of historical bad debt experience, current receivables aging, and expected future write-offs, as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible. The expense associated with the allowance for doubtful accounts is recognized as other expense. We have not recorded an allowance for doubtful accounts as of December 31, 2017 and 2016, respectively.
Deferred Equity Issuance Costs	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 offering completion, 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.
Capitalized Interest Costs	Capitalized Interest Costs The Company has capitalized certain interest costs related to unproved properties that the Company is currently preparing for their intended use. The interest costs that have been capitalized to oil and gas properties total $0.3 million and $nil for the years ended December 31, 2017 and 2016, respectively.
Concentration of Credit Risk and Major Customers	Concentration of Credit Risk and Major Customers The Company is exposed to credit risk in the event of nonpayment by counterparties, a significant portion of which are concentrated in energy related industries. The creditworthiness of customers and other counterparties is subject to regular review. The Company does not believe the loss of any single purchaser of its production would materially impact its operating results, as crude oil, natural gas, and NGLs are products with well-established markets and numerous purchasers in the Company’s operating regions. The Company had the following major customers, which accounted for 10 percent or more of its total crude oil, natural gas, and NGL production revenue for at least one of the periods presented: For the Years Ended December 31, 2017 2016 Great Western Operating Company % % Kerr-McGee Oil and Gas Onshore % % Ward Petroleum % % DCP Midstream % % PDC Energy, Inc. % % The Company maintains its primary bank accounts with a large, multinational bank that has branch locations in the Company’s areas of operations. The Company’s policy is to diversify its concentration of cash and cash equivalent investments among multiple institutions and investment products to limit the amount of credit exposure to any single institution or investment.
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 depletion, depreciation 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 operations. 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 units-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, plant 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 as 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.
Depletion, Depreciation and Amortization	Depletion, Depreciation and Amortization Depletion, depreciation 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 units-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 units-of-production method using total estimated proved reserves. In arriving at rates under the units-of-production method, the quantities of recoverable crude oil and natural gas reserves are established based on estimates made by the Company and independent reserve engineers. Upon sale or retirement of properties, the cost and related accumulated depletion, depreciation and amortization are eliminated from the accounts and the resulting gain or loss, if any, is recognized. Units-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.
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 partners’ share of expenses incurred.
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.
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. The Company complies with authoritative accounting guidance regarding uncertain tax provisions. The entire amount of unrecognized tax benefit reported by the Company would affect its effective tax rate if recognized. Interest expense in the accompanying statements of operations includes a negligible amount associated with income taxes. The Company does not expect a significant change to the recorded unrecognized tax benefits in 2018.
Asset Retirement Obligation	Asset Retirement Obligation Asset retirement obligations associated with tangible long-lived assets are accounted for in accordance with Accounting Standards Codification (“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 credit-adjusted risk-free interest 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.
Stock-Based Compensation	Stock-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 expected term of outstanding stock-based awards 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 for these awards , 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, “Financial Instruments,” 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 Level 2 Level 3
Going Concern Assessment	Going Concern Assessment Pursuant to Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements – Going Concern 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 consolidated 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 consolidated financial statement issuance date. As shown in the accompanying consolidated financial statements, the Company incurred a net loss of $10.8 million during the year ended December 31, 2017, and as of that date, the Company's current liabilities exceeded its current assets by $17.8 million, the Company had a cash balance of $0.7 million and other current assets of $2.7 million. As of December 31, 2017, the Company had insufficient working capital and revenues from operations to meet its maturing debt obligations and other liabilities incurred and to be incurred in connection with the Company’s development activities. The Company will also need to generate sufficient cash flow from operations and sell equity or debt to fund further drilling 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. Management has evaluated these conditions and determined that a reduction in the working capital deficit subsequent to December 31, 2017 as a result of a new term Credit Facility (Note 6) coupled with anticipated increased revenues from the Company’s non-operated and operated properties, may allow the Company to meet its maturing debt and interest obligations. However, to continue to execute its business plan, additional capital will be required. 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. The Company’s consolidated 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.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to recognize a right-of-use asset and a lease liability for virtually all leases currently classified as operating leases. The Company is currently analyzing the impact this standard will have on the Company’s leases, including non-cancelable leases, drilling rigs, pipeline gathering, transportation, gas processing, and other existing arrangements. Further, the Company is evaluating current accounting policies, applicable systems, controls, and processes to support the potential recognition and disclosure changes resulting from ASU 2016-02. Based upon the Company’s initial assessment, ASU 2016-02 is expected to result in an increase in assets and liabilities recorded. The Company will adopt ASU 2016-02 using a modified retrospective method on the effective date of January 1, 2019. In January 2018, the FASB issued ASU No. 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 (“ASU 2018-01”). ASU 2018-01 provides an optional transitional practical expedient which allows entities to exclude from evaluation land easements that exist or expired before adoption of ASU 2016-02. The Company is currently evaluating this practical expedient and will adopt ASU 2018-01 at the same time as ASU 2016-02. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”). ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company has determined that the adoption of ASU 2017-01 on the effective date of January 1, 2018, using a prospective method, does not impact the Company’s current consolidated financial statements or disclosures. However, the clarified definition of a business will be applied by the Company to future transactions. In February 2018, the FASB issued ASU No. 2018-02, Income Statement–Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). ASU 2018-02 permits entities to reclassify tax effects stranded in accumulated other comprehensive income (loss) to retained earnings as a result of the 2017 Tax Act. ASU 2018-02, is to be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the United States federal corporate income tax rate in the 2017 Tax Act is recognized. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted as outlined in ASU 2018-02. The Company is currently evaluating the provisions of this guidance and assessing the potential impact on the Company’s consolidated financial statements and disclosures. 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 plans to adopt the guidance using the modified retrospective method on the effective date of January 1, 2018. The Company has determined that the adoption of, ASU 2014-09, does not impact the Company’s current consolidated financial statements or disclosures. There are no other ASUs applicable to the Company that would have a material effect on the Company’s consolidated financial statements and related disclosures that have been issued but not yet adopted by the Company as of December 31, 2017, and through the filing of this report.

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION(Tables)	12 Months Ended
	Dec. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION
Schedule of potentially antidilutive securities excluded from computation of earnings per share	December 31, December 31, 2017 2016 Exercisable stock options 4,347,500 3,010,000 Warrants issued to underwriter 255,600 255,600 Warrants issued to convertible note holders 6,666,600 1,294,987 Warrants issued to placement agent - convertible note offering 666,600 129,526 Shares underlying convertible notes 6,372,066 1,295,067 Total 18,308,366 5,985,180
Schedule of concentration of credit risk and major customers	For the Years Ended December 31, 2017 2016 Great Western Operating Company % % Kerr-McGee Oil and Gas Onshore % % Ward Petroleum % % DCP Midstream % % PDC Energy, Inc. % %

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
	Dec. 31, 2017
PDC Assets
Summary of Consideration Transferred, Fair Value of Assets Acquired and Liabilities Assumed	December 31, 2016 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
Pro forma Financial Information	Year Ended December 31, 2016 2015 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 $ (0.21) $ (0.08)
Crimson Assets
Summary of Consideration Transferred, Fair Value of Assets Acquired and Liabilities Assumed	December 31, 2016 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
Pro forma Financial Information	Year Ended December 31, 2016 2015 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 $ (0.20) $ (0.09)

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2017
PROPERTY, PLANT AND EQUIPMENT
Schedule of property and equipment	December 31, 2017 2016 Property, plant and equipment $ 223,517 $ 47,870 Accumulated depreciation (55,106) (8,328) Total $ 168,411 $ 39,542

CRUDE OIL AND NATURAL GAS PRO29

CRUDE OIL AND NATURAL GAS PROPERTIES (Tables)	12 Months Ended
	Dec. 31, 2017
CRUDE OIL AND NATURAL GAS PROPERTIES
Schedule of net capitalized costs	As of December 31, 2017 2016 Proved oil and gas properties $ 22,144,366 $ 8,132,881 Unproved oil and gas properties (1) 1,919,335 4,092,550 Wells in progress (2) 9,858,262 2,168,092 Total capitalized costs 33,921,963 14,393,523 Accumulated depletion, depreciation and amortization (2,849,374) (783,320) Net capitalized costs $ 31,072,589 $ 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.
Schedule of costs incurred in crude oil and natural gas activities	December 31, 2017 2016 Exploration costs $ 61,693 $ 2,700 Development costs 18,771,794 3,038,339 Acquisition of properties Proved — 3,630,195 Unproved 4,049,380 4,045,022 Total $ 22,882,867 $ 10,716,256

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2017
DEBT
Summary of account balances and activity for various debt instruments	Initial Supplemental Convertible Convertible Line of Line of Notes Notes Credit Credit Credit Series A Series B Facility December 31, 2015 Principal Balance $ (1,062,185) $ - $ - $ - $ - Principal Borrowings (3,937,815) (7,105,000) (1,942,600) - - Repayments - - - - - Conversions - - - - - Beginning Balance - Unamortized Debt Issuance Costs - Original Issuer Discount - - - - - Additions - - 205,260 - - Accretion - - (557) - - Ending - Unamortized Debt Issuance Costs - Original Issuer Discount - - 204,703 - - Beginning Balance - Unamortized Debt Issuance Costs - Beneficial Conversion Feature - - - - - Additions - - 1,033,585 - - Accretion - - (2,823) - - Ending - Unamortized Debt Issuance Costs - Beneficial Conversion Feature - - 1,030,762 - - Beginning Balance - Unamortized Debt Issuance Costs - Warrant Discount - - - - - Additions - - 703,753 - - Accretion - - (1,926) - - Ending - Unamortized Debt Issuance Costs - Warrant Discount - - 701,827 - - December 31, 2016 Principal Balance $ (5,000,000) $ (7,105,000) $ (1,942,600) $ - $ - December 31, 2016, Total, net $ (5,000,000) $ (7,105,000) $ (5,308) $ - $ - Principal Borrowings - - (8,057,400) (4,724,900) (5,000,000) Repayments - (3,552,500) - - - Conversions - - 5,166,800 - - Beginning Balance - Unamortized Debt Issuance Costs - Original Issuer Discount - - 204,703 - - Additions - - 804,750 205,211 104,871 Accretion - - (742,944) (36,887) (1,436) Ending - Unamortized Debt Issuance Costs - Original Issuer Discount - - 266,509 168,324 103,435 Beginning Balance - Unamortized Debt Issuance Costs - Beneficial Conversion Feature - - 1,030,762 - - Additions - - 4,272,867 56,500 - Accretion - - (3,978,881) (11,959) - Ending - Unamortized Debt Issuance Costs - Beneficial Conversion Feature - - 1,324,748 44,541 - Beginning Balance - Unamortized Debt Issuance Costs - Warrant Discount - - 701,827 - - Additions - - 2,978,791 - - Accretion - - (2,758,537) - - Ending - Unamortized Debt Issuance Costs - Warrant Discount - - 922,081 - - December 31, 2017, Principal Balance $ (5,000,000) $ (3,552,500) $ (4,833,200) $ (4,724,900) $ (5,000,000) December 31, 2017, Total, net $ (5,000,000) $ (3,552,500) $ (2,319,862) $ (4,512,035) $ (4,896,565)

ASSET RETIREMENT OBLIGATION (Ta

ASSET RETIREMENT OBLIGATION (Tables)	12 Months Ended
	Dec. 31, 2017
ASSET RETIREMENT OBLIGATION
Reconciliation of the Asset Retirement Obligation	December 31, 2017 2016 Asset retirement obligation, beginning of period $ 945,419 $ 34,776 Liabilities settled (1) (50,163) 1,990 Liabilities incurred 91,999 878,170 Revisions in estimated liabilities 36,507 — Accretion 99,682 30,483 Asset retirement obligation, end of period $ 1,123,444 $ 945,419 _________________________ (1) Reflects liabilities settled through plugging and abandonment activities and divestitures of properties.

ACCOUNTS PAYABLE AND ACCRUED 32

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2017
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Components of Accounts Payable and Accrued Liabilities	December 31, 2017 2016 Trade payables and accrued liabilities $ 1,544,112 $ 2,416,551 Accrued interest payable 876,455 302,477 Liabilities incurred in connection with acquisition of crude oil and natural gas properties 1,719,785 290,078 Total $ 4,140,352 $ 3,009,106

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2017
SHAREHOLDERS' EQUITY
Summary of Warrants Outstanding	The table below summarizes warrants outstanding as of December 31, 2017: Shares Underlying Exercise Price Outstanding Warrants Per Share 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

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2017
STOCK BASED COMPENSATION
Summary of Stock Option Activity	Weighted Remaining Average Contractual Number of Exercise Term Shares Price (Years) Outstanding, December 31, 2015 2,275,000 $ 0.33 6.50 Exercisable, December 31, 2015 2,200,000 $ 0.30 6.72 Granted 2,400,000 $ 1.16 5.34 Exercised — — — Forfeited — — — Outstanding, December 31, 2016 4,675,000 $ 0.76 5.39 Exercisable, December 31, 2016 3,010,000 $ 0.54 5.97 Granted 422,000 $ 1.86 5.69 Exercised — — — Forfeited (100,000) — — Outstanding, December 31, 2017 4,997,000 $ 0.85 4.44 Exercisable, December 31, 2017 4,347,500 $ 0.74 4.48
Summary of Fair Value Assumptions	December 31, December 31, 2017 2016 Expected option term—years 2.5 - 3.25 1.5 - 2.5 Risk-free interest rate 1.75% - 1.93% 0.94% - 1.31% Expected dividend yield — — Volatility 162% - 169% 142% - 214% Forfeited — —

PROVISION FOR INCOME TAXES (Tab

PROVISION FOR INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2017
PROVISION FOR INCOME TAXES
Components of Deferred Tax Assets and Liabilities	Year Ended December 31, 2017 2016 Deferred tax assets - current: Exploration costs $ — $ — Deferred tax assets - noncurrent: NOL carryover 2,109,423 4,287,567 Stock based compensation 727,631 576,808 Asset retirement obligation 277,015 350,333 Charitable contribution 814 — Total deferred tax assets 3,114,883 5,214,708 Deferred tax liabilities - current: Property and equipment (15,251) (1,990) Impairment, intangible drilling costs and other exploration costs capitalized (935,482) (1,796,102) Debt discount - Beneficial conversion feature (337,518) — Total deferred tax liabilities (1,288,251) (1,798,092) Net deferred tax assets 1,826,632 3,416,616 Valuation allowance (1,826,632) (3,416,616) Net deferred tax assets $ — $ —
Schedule of Effective Income Tax Rate Reconciliation	Year Ended December 31, 2017 2016 Tax at statutory federal rate $ (3,688,109) $ (1,520,524) Permanent difference 2,258,353 2,378 State taxes, net of federal (331,474) (136,847) Depletion, depreciation, amortization and impairment — — Change in valuation allowance 396,256 938,026 Effect of the Tax Cuts and Jobs Act 918,446 Other 446,528 716,967 Provision (benefit) for income taxes $ — $ —

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2017
COMMITMENTS AND CONTINGENCIES
Operating Lease Agreement Schedule	Year ending December 31, Amount 2018 $ 129,738 2019 133,698 2020 137,658 2021 34,662 2022 — Total $ 435,756

REVISION OF PRIOR PERIOD FINA37

REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Dec. 31, 2017
Accounting for the fair value of the convertible promissory notes and warrants issued in the Company's private placement
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Schedule of revisions to the balance sheets and the statements of operations	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 $

RESTATEMENT OF PRIOR PERIOD FIN

RESTATEMENT OF PRIOR PERIOD FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Dec. 31, 2017
Error relating to calculation of depletion of oil and gas properties
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Schedule of restatements to the consolidated balance sheets and the consolidated statements of operations	Consolidated Balance Sheets As of March 31, 2017 As Reported Adjustments As Restated Crude oil and natural gas properties, net: Accumulated depletion, depreciation and amortization $ (1,229,486) $ 115,254 $ (1,114,232) Crude oil and natural gas properties, net $ 20,510,001 $ 115,254 $ 20,625,255 Total assets $ 28,739,336 $ 115,254 $ 28,854,590 Shareholders’ equity: Accumulated deficit $ (11,990,181) $ 115,254 $ (11,874,927) Total shareholders’ equity $ 6,756,017 $ 115,254 $ 6,871,271 Total liabilities and shareholders’ equity $ 28,739,336 $ 115,254 $ 28,854,590 As of June 30, 2017 As Reported Adjustments As Restated Crude oil and natural gas properties, net: Accumulated depletion, depreciation and amortization $ (2,765,660) $ 549,096 $ (2,216,564) Crude oil and natural gas properties, net $ 24,958,027 $ 549,096 $ 25,507,123 Total assets $ 35,682,868 $ 549,096 $ 36,231,964 Shareholders’ equity: Accumulated deficit $ (12,723,650) $ 549,096 $ (12,174,554) Total shareholders’ equity $ 7,532,947 $ 549,096 $ 8,082,043 Total liabilities and shareholders’ equity $ 35,682,868 $ 549,096 $ 36,231,964 As of September 30, 2017 As Reported Adjustments As Restated Crude oil and natural gas properties, net: Accumulated depletion, depreciation and amortization $ (3,918,935) $ 865,697 $ (3,053,238) Crude oil and natural gas properties, net $ 28,698,193 $ 865,697 $ 29,563,890 Total assets $ 32,918,686 $ 865,697 $ 33,784,383 Shareholders’ equity: Accumulated deficit $ (14,754,722) $ 865,697 $ (13,889,025) Total shareholders’ equity $ 6,343,080 $ 865,697 $ 7,208,777 Total liabilities and shareholders’ equity $ 32,918,686 $ 865,697 $ 33,784,383 Consolidated Statements of Operations Three months ended Three months ended Six months ended Three months ended Nine months ended March 31, 2017 June 30, 2017 June 30, 2017 September 30, 2017 September 30, 2017 Net (loss), as reported $ (2,139,139) $ (733,469) $ (2,872,608) $ (2,031,072) $ (4,903,680) Adjustments: Previously reported depletion, depreciation and amortization $ (446,166) $ (1,536,174) $ (1,982,341) $ (1,153,273) $ (3,135,614) Total adjustment 115,254 433,842 549,096 316,600 865,696 Corrected depletion, depreciation and amortization (330,912) (1,102,332) (1,433,245) (836,673) (2,269,918) Net (loss), as restated $ (2,023,885) $ (299,627) $ (2,323,512) $ (1,714,472) $ (4,037,984) Net (loss) per share, as reported $ (0.10) $ (0.03) $ (0.13) $ (0.09) $ (0.22) Net (loss) per share, as restated $ (0.09) $ (0.01) $ (0.10) $ (0.08) $ (0.18)

UNAUDITED CRUDE OIL AND NATUR39

UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2017
UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION
Schedule of changes in proved developed reserves	Natural Oil Gas NGL’s Total (Bbls) (Mcf) (Bbls) (BOE) Proved Reserves: Balance as of December 31, 2014 159 — — 159 Revisions of previous estimates (122) — — (122) Extensions and discoveries — — — — Sales of reserves in place — — — — Improved recovery — — — — Purchase of reserves — — — — Production (37) — — (37) Balance as of December 31, 2015 — — — — Revisions of previous estimates — — — — Extensions and discoveries 2,710,437 10,498,397 1,570,454 6,030,624 Sales of reserves in place — — — — Improved recovery — — — — Purchase of reserves 55,669 1,020,516 62,244 287,999 Production (4,902) (26,058) (1,510) (10,755) Balance as of December 31, 2016 2,761,204 11,492,855 1,631,188 6,307,868 Revisions of previous estimates (388,211) 292,477 38,668 (300,797) Extensions and discoveries 839,738 4,183,757 631,149 2,168,180 Sales of reserves in place — — — — Improved recovery — — — — Purchase of reserves — — — — Production (188,529) (549,846) (50,111) (330,281) Balance as of December 31, 2017 3,024,202 15,419,243 2,250,894 7,844,970 Proved Developed Reserves, included above Balance as of December 31, 2015 — — — — Balance as of December 31, 2016 260,284 1,788,895 181,655 740,088 Balance as of December 31, 2017 521,354 3,752,330 387,430 1,534,172 Proved Undeveloped Reserves, included above Balance as of December 31, 2015 — — — — Balance as of December 31, 2016 2,500,920 9,703,960 1,449,533 5,567,780 Balance as of December 31, 2017 2,502,847 11,666,911 1,863,465 6,310,797
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 December 31, 2017 2016 2015 Future cash inflows $ 208,459 $ 148,596 $ 5 Future cash outflows: Production cost (48,929) (35,038) (3) Development cost (58,784) (37,667) — Future income tax (16,006) (5,802) — Future net cash flows 84,740 70,089 2 Adjustment to discount future annual net cash flows at 10% (35,054) (29,925) (2) Standardized measure of discounted future net cash flows $ 49,686 $ 40,164 $ —
Schedule of changes in standardized measure of estimated 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 December 31, 2017 2016 2015 Standardized measure, beginning of year $ 40,164 $ — $ 5 Sales of oil and gas, net of production cost (9,392) (126) (3) Net change in sales prices, net of production cost 10,263 489 — Discoveries, extensions and improved recoveries 11,979 76,445 — Change in future development costs (4,050) (37,667) — Development costs incurred during the period that reduced future development cost 1,144 — — Sales of reserves in place — — — Revisions of quantity estimates (559) — (2) Accretion of discount 4,275 130 — Net change in income tax (6,810) (2,587) — Purchase of reserves — 6,021 — Changes in timing of rates of production 2,672 (2,541) — Standardized measure, end of year $ 49,686 $ 40,164 $ —

SUMMARY OF SIGNIFICANT ACCOUN40

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION -Loss Per Common Share (Details) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Loss Per Share
Potentially dilutive securities	18,308,366	5,985,180
Stock Options
Loss Per Share
Potentially dilutive securities	4,347,500	3,010,000
Warrants issued to underwriter
Loss Per Share
Potentially dilutive securities	255,600	255,600
Warrants issued to convertible note holders
Loss Per Share
Potentially dilutive securities	6,666,600	1,294,987
Warrants issued to placement agent - convertible note offering
Loss Per Share
Potentially dilutive securities	666,600	129,526
Shares underlying convertible notes
Loss Per Share
Potentially dilutive securities	6,372,066	1,295,067

SUMMARY OF SIGNIFICANT ACCOUN41

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION - Allowance for doubtful accounts, Capitalized Interes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Allowance for doubtful accounts
Allowance for doubtful accounts	$ 0	$ 0
Capitalized Interest Costs
Interest cost capitalized	$ 0.3	$ 0

SUMMARY OF SIGNIFICANT ACCOUN42

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION - Concentration of Credit Risk (Details) - Revenue - Customer	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Great Western Operating Company
Concentration of credit risk
Concentration risk (as a percent)	22.00%	43.00%
Kerr-McGee Oil and Gas Onshore
Concentration of credit risk
Concentration risk (as a percent)	4.00%	23.00%
Ward Petroleum
Concentration of credit risk
Concentration risk (as a percent)	2.00%	20.00%
DCP Midstream
Concentration of credit risk
Concentration risk (as a percent)	1.00%	11.00%
PDC Energy, Inc.
Concentration of credit risk
Concentration risk (as a percent)	71.00%	0.00%

SUMMARY OF SIGNIFICANT ACCOUN43

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION - Going Concern Assesment (Details) - USD ($)	3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2017	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Going Concern Assessment
Net (loss)	$ (1,714,472)	$ (299,627)	$ (2,023,885)	$ (2,323,512)	$ (4,037,984)	$ (10,847,379)	$ (4,481,272)
Amount by which current liabilities exceed current assets						17,800,000
Cash balance						713,924	$ 2,449,412	$ 3,011,291
Other current assets						$ 2,700,000
Substantial doubt about the Company’s ability to continue as a going concern						true

ACQUISITIONS - PDC Acquisition

ACQUISITIONS - PDC Acquisition (Detail) - PDC Assets - Oil and Gas Assets	1 Months Ended	12 Months Ended
	Jun. 30, 2016aitem	Dec. 31, 2016USD ($)$ / shares	Dec. 31, 2015USD ($)$ / shares
Acquisitions
Acres, gross | a	3,652
Acres, net | a	1,410
Number of wells drilled and completed | item	35
Ownership interest acquired by the option holder (as a percent)	50.00%
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
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 (in dollars per share) | $ / shares		$ (0.21)	$ (0.08)
Net income (loss) per common share diluted (in dollars per share) | $ / shares		$ (0.21)	$ (0.08)

ACQUISITIONS - Crimson Acquisit

ACQUISITIONS - Crimson Acquisition (Details) - Oil and Gas Assets - Crimson Assets	Dec. 22, 2016aitem	Dec. 31, 2016USD ($)$ / shares	Dec. 31, 2015USD ($)$ / shares
Acquisitions
Acres, gross | a	15,514
Acres, net | a	5,609
Number of wells drilled and completed | item	32
Ownership interest acquired by the option holder (as a percent)	50.00%
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
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 (in dollars per share) | $ / shares		$ (0.20)	$ (0.09)

PROPERTY, PLANT AND EQUIPMENT -

PROPERTY, PLANT AND EQUIPMENT - Net (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment	$ 223,517	$ 47,870
Accumulated depreciation	(55,106)	(8,328)
Total	$ 168,411	$ 39,542

PROPERTY, PLANT AND EQUIPMENT47

PROPERTY, PLANT AND EQUIPMENT - Depreciation expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
PROPERTY, PLANT AND EQUIPMENT
Depreciation expense	$ 46,778	$ 5,772

CRUDE OIL AND NATURAL GAS PRO48

CRUDE OIL AND NATURAL GAS PROPERTIES - Capitalized Costs (Details) - USD ($)	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
CRUDE OIL AND NATURAL GAS PROPERTIES
Proved oil and gas properties	$ 22,144,366				$ 8,132,881
Unproved oil and gas properties	1,919,335				4,092,550
Wells in progress	9,858,262				2,168,092
Total capitalized costs	33,921,963				14,393,523
Accumulated depletion, depreciation and amortization	(2,849,374)				(783,320)
Net capitalized costs	$ 31,072,589	$ 29,563,890	$ 25,507,123	$ 20,625,255	$ 13,610,203

CRUDE OIL AND NATURAL GAS PRO49

CRUDE OIL AND NATURAL GAS PROPERTIES - Costs Incurred in Crude Oil and Natural Gas Activities (Details) - USD ($)	3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2017	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
CRUDE OIL AND NATURAL GAS PROPERTIES
Exploration costs						$ 61,693	$ 2,700
Development costs						18,771,794	3,038,339
Acquisition of properties:
Proved							3,630,195
Unproved						4,049,380	4,045,022
Total						22,882,867	10,716,256
Depletion, depreciation and amortization	$ 836,673	$ 1,102,332	$ 330,912	$ 1,433,245	$ 2,269,918	$ 2,836,891	$ 65,033

CRUDE OIL AND NATURAL GAS PRO50

CRUDE OIL AND NATURAL GAS PROPERTIES - Other Acquisitions (Details)	Sep. 15, 2017USD ($)a	May 09, 2017USD ($)a	Apr. 21, 2017USD ($)a$ / sharesshares	Apr. 03, 2017USD ($)aft$ / sharesshares	Oct. 14, 2016USD ($)item	Apr. 14, 2016USD ($)a	Mar. 31, 2016USD ($)aitem	Mar. 10, 2016USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Oct. 13, 2016a
Acquisitions
Payment to acquire									$ 3,202,380	$ 2,854,475
Amount borrowed on line of credit to fund acquisition										$ 7,105,000
Adams County, Colorado
Acquisitions
Acres, gross | a		200
Acres, net | a		70
Percentage of working interest partner’s participation		50.00%
Payment to acquire		$ 400,000
Surface Rights and Easements on Lands | Todd Creek Farms
Acquisitions
Payment to acquire								$ 200,000
Oil and Gas Leases | Adams and Weld Counties, Colorado
Acquisitions
Acres, gross | a	400			5,874
Acres, net | a	200			1,462
Number of feet seller retained all rights | ft				50
Net cost for oil and gas property				$ 1,300,000
Working interest partner’s participation	$ 200,000
Percentage of working interest partner’s participation	50.00%			50.00%
Payment to acquire	$ 400,000			$ 500,000
Equity interest issuable under acquisition				$ 800,000
Issuance of common stock for property acquisition, Shares | shares				450,000
Share price (in dollars per share) | $ / shares				$ 1.80
Oil and Gas Leases | Todd Creek Farms
Acquisitions
Acres, net | a						189
Purchase price						$ 300,000
Oil and Gas Assets | Land Adjacent to Todd Creek Farms
Acquisitions
Acres, net | a							160
Working interest in well (as a percent)							50.00%
Payment to acquire							$ 600,000
Number of producing wells | item							1
Royalty Interests | Adams County, Colorado
Acquisitions
Percentage of royalty			9.37%
Acres, net | a			145
Percentage of working interest partner’s participation			50.00%
Payment to acquire			$ 600,000
Issuance of common stock for property acquisition, Shares | shares			20,555
Share price (in dollars per share) | $ / shares			$ 1.80
Royalty Interests | Todd Creek Farms
Acquisitions
Payment to acquire					$ 1,600,000
Number of producing wells | item					10
Supplemental line of credit | Oil and Gas Leases | Wattenberg Field | Providence Energy Partners III, LP (PEP III)
Acquisitions
Acres, gross | a											278
Acres, net | a											170
Working interest in well (as a percent)											10.00%

DEBT - Various Debt Instruments

DEBT - Various Debt Instruments (Details) - USD ($)	2 Months Ended	12 Months Ended
	Oct. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Debt
Accretion		$ 7,666,313	$ 17,253
Initial Line of Credit
Debt
Balance at beginning of period		(5,000,000)	(1,062,185)
Borrowings			(3,937,815)
Balance at end of period		(5,000,000)	(5,000,000)
Total, net		5,000,000	5,000,000
Supplemental line of credit
Debt
Balance at beginning of period		(7,105,000)
Borrowings			(7,105,000)
Repayments		(3,552,500)
Balance at end of period		(3,552,500)	(7,105,000)
Total, net		3,552,500	7,105,000
Series A Convertible Notes
Debt
Balance at beginning of period		(1,942,600)
Borrowings		(8,057,400)	(1,942,600)
Conversions		5,166,800
Balance at end of period		(4,833,200)	(1,942,600)
Total, net		2,319,862	5,308
Series A Convertible Notes | Warrants
Debt
Beginning Balance - Unamortized Debt Issuance Costs		701,827
Additions		2,978,791	703,753
Accretion		2,758,537	(1,926)
Ending - Unamortized Debt Issuance Costs		922,081	701,827
Series A Convertible Notes | Original Issuer Discount
Debt
Beginning Balance - Unamortized Debt Issuance Costs		204,703
Additions		804,750	205,260
Accretion		742,944	557
Ending - Unamortized Debt Issuance Costs		266,509	204,703
Series A Convertible Notes | Beneficial Conversion Feature
Debt
Beginning Balance - Unamortized Debt Issuance Costs		1,030,762
Additions		4,272,867	1,033,585
Accretion		(3,978,881)	(2,823)
Ending - Unamortized Debt Issuance Costs		1,324,748	$ 1,030,762
Series B Notes
Debt
Borrowings	$ (4,700,000)	(4,724,900)
Balance at end of period		(4,724,900)
Total, net		4,512,035
Series B Notes | Original Issuer Discount
Debt
Additions		205,211
Accretion		36,887
Ending - Unamortized Debt Issuance Costs		168,324
Series B Notes | Beneficial Conversion Feature
Debt
Additions		56,500
Accretion		(11,959)
Ending - Unamortized Debt Issuance Costs		44,541
Secured Credit Facility
Debt
Borrowings		(5,000,000)
Balance at end of period		(5,000,000)
Total, net		4,896,565
Secured Credit Facility | Original Issuer Discount
Debt
Additions		104,871
Accretion		1,436
Ending - Unamortized Debt Issuance Costs		$ 103,435

DEBT - Initial Line of Credit (

DEBT - Initial Line of Credit (Details) - USD ($) $ in Millions	May 13, 2015	Feb. 28, 2018	Dec. 31, 2017	Sep. 30, 2017
Providence Energy Operators, LLC | PetroShare Corp
Initial Line of credit
Related party, ownership percentage			11.70%
Providence Energy Operators, LLC | Initial Line of Credit
Initial Line of credit
Borrowing capacity	$ 5
Interest rate (as a percent)	8.00%		15.00%	10.00%
Accrued interest repaid		$ 0.6

DEBT - Supplemental lines of cr

DEBT - Supplemental lines of credit (Details) - USD ($)	Feb. 01, 2018	Jun. 08, 2017	Apr. 12, 2017	Dec. 31, 2017	Dec. 21, 2017	Dec. 31, 2016	Oct. 13, 2016
Supplemental line of credit
Supplemental line of credit				$ 3,552,500		$ 7,088,698
Repayment of line of credit				$ 3,552,500
Supplemental line of credit | Providence Energy Partners III, LP (PEP III)
Supplemental line of credit
Borrowing capacity							$ 10
Interest rate (as a percent)		10.00%					8.00%
Supplemental line of credit			$ 3,600,000
Repayment of line of credit			$ 3,600,000
Providence Energy Operators, LLC (PEO) | Supplemental line of credit | Providence Energy Partners III, LP (PEP III)
Supplemental line of credit
Interest rate (as a percent)		10.00%			15.00%
Principal payments	$ 1,500,000
Accrued interest repaid	$ 500,000
Participation Agreement | Providence Energy Partners III, LP (PEP III)
Supplemental line of credit
Participation Agreement acquisition interest in any oil and gas development acres in area of mutual interest (as a percent)		10.00%
Participation Agreement | Providence Energy Operators, LLC (PEO)
Supplemental line of credit
Participation Agreement acquisition interest in any oil and gas development acres in area of mutual interest (as a percent)		45.00%

DEBT - Convertible notes (Detai

DEBT - Convertible notes (Details) - USD ($)	Oct. 16, 2017	Dec. 31, 2017	Dec. 31, 2016	Jan. 30, 2017
Convertible notes
Loss on conversion of notes payable		$ 1,771,650
Charge to additional paid-in capital for warrants issued		2,978,796	$ 1,033,586
Original Convertible Notes
Convertible notes
Face amount				$ 10,000,000
Interest rate (as a percent)				10.00%
Conversion price (in dollars per share)	$ 1.10			$ 1.50
Net proceeds from private placement		9,000,000
Principal converted	$ 5,200,000
Convertible accrued interest	$ 100,000
Number of shares issued	4,814,265
Loss on conversion of notes payable	$ 1,800,000
Charge to additional paid-in capital for warrants issued		$ 1,000,000

DEBT - Series B convertible not

DEBT - Series B convertible notes (Details) - USD ($)	2 Months Ended	12 Months Ended
	Oct. 31, 2017	Dec. 31, 2017	Oct. 16, 2017
Series B Convertible Notes
Fair value of the beneficial conversion feature		$ 4,329,365
Convertible Notes
Series B Convertible Notes
Conversion price (in dollars per share)			$ 1.38
Series B Notes
Series B Convertible Notes
Proceeds from issuance of debt	$ 4,700,000	$ 4,724,900
Interest rate (as a percent)	15.00%
Conversion price (in dollars per share)	$ 1.50
Net value	$ 4,500,000
Fair value of the beneficial conversion feature	$ 56,500

DEBT - Secured Credit Facility

DEBT - Secured Credit Facility (Details) - Secured Credit Facility - USD ($)	Feb. 01, 2018	Dec. 21, 2017	Dec. 31, 2017
Debt
Proceeds from issuance of debt	$ 20,000,000	$ 5,000,000
Interest rate (as a percent)			15.70%
Three-month LIBOR
Debt
Spread on variable rate			14.00%
Accrued interest payable			$ 21,801
Debt issuance costs			100,000
Interest expense			$ 1,437

ASSET RETIREMENT OBLIGATION (De

ASSET RETIREMENT OBLIGATION (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Assumptions used to determine the fair value of the asset retirement obligation
Assumed inflation rate (as a percent)	2.00%	2.00%
Average estimated asset life	29 years 10 months 24 days	13 years 2 months 12 days
Activity of asset retirement obligation
Asset retirement obligation, beginning of period	$ 945,419	$ 34,776
Liabilities settled	(50,163)
Liabilities settled, Net increase in obligation		1,990
Liabilities incurred	91,999	878,170
Revisions in estimated liabilities	36,507
Accretion	99,682	30,483
Asset retirement obligation, end of period	$ 1,123,444	$ 945,419
Minimum
Assumptions used to determine the fair value of the asset retirement obligation
Credit adjusted risk free interest rate (as a percent)	11.26%	9.48%
Maximum
Assumptions used to determine the fair value of the asset retirement obligation
Credit adjusted risk free interest rate (as a percent)	14.00%	10.73%

ACCOUNTS PAYABLE AND ACCRUED 58

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Trade payables and accrued liabilities	$ 1,544,112	$ 2,416,551
Accrued interest payable	876,455	302,477
Liabilities incurred in connection with acquisition of crude oil and natural gas properties	1,719,785	290,078
Total	$ 4,140,352	$ 3,009,106

SHAREHOLDERS' EQUITY - Common S

SHAREHOLDERS' EQUITY - Common Stock - Shares (Details) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Common Stock
Common stock shares authorized	100,000,000	100,000,000
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares issued	27,718,802	21,964,282
Common stock shares outstanding	27,718,802	21,964,282
Common Stock
Common Stock
Common stock shares authorized	100,000,000	100,000,000
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares issued	27,718,802	21,964,282
Common stock shares outstanding	27,718,802	21,964,282

SHAREHOLDERS' EQUITY - Common60

SHAREHOLDERS' EQUITY - Common Stock - Activity (Details) $ / shares in Units, $ in Millions

Oct. 16, 2017USD ($)$ / sharesshares

Sep. 23, 2017$ / sharesshares

Apr. 03, 2017$ / sharesshares

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

Oct. 31, 2017USD ($)$ / shares

Jun. 01, 2017agreementshares

Dec. 31, 2017USD ($)shares

Dec. 31, 2016USD ($)shares

Jan. 30, 2017$ / shares

Common Stock

Warrants to purchase common stock (in shares)

7,588,800

Stock-based compensation expense | $

$ 1.4

$ 1.1

Restricted Stock

Common Stock

Number of employment agreements | agreement

4

Issuance of restricted shares, Shares

219,700

Common Stock

Common Stock

Issuance of common stock in connection with conversion of convertible notes payable, Shares

4,814,265

Issuance of common stock for loan extension, Shares

250,000

Issuance of restricted shares, Shares

219,700

Issuance of common stock for lease acquisition, Shares

470,555

14,425

470,555

14,425

Issuance of common stock for cash at $1.00 per share (in shares)

95,000

Issuance of common stock in connection with consulting agreements, Shares

141,666

Shares issued for services (in shares)

50,000

Share price (in dollars per share) | $ / shares

$ 1.80

$ 1.85

Common Stock | Consultants

Common Stock

Issuance of common stock in connection with consulting agreements, Shares

50,000

8,333

8,333

50,000

Share price (in dollars per share) | $ / shares

$ 1.44

$ 1.40

$ 1.65

$ 0.73

Common Stock | Directors

Common Stock

Issuance of common stock in connection with consulting agreements, Shares

25,000

Shares issued for services (in shares)

50,000

Share price (in dollars per share) | $ / shares

$ 1.60

$ 1.01

Number of directors issued stock | director

2

Common Stock | Private placement

Common Stock

Issuance of common stock for cash at $1.00 per share (in shares)

95,000

Share price (in dollars per share) | $ / shares

$ 1

Number of accredited investors in the transaction | item

1

Common Stock | Exchange of interests in oil and gas assets in Buck Peak prospect

Common Stock

Issuance of common stock for property acquisition (in shares)

30,000

Share price (in dollars per share) | $ / shares

$ 1.89

Initial Line of Credit | Providence Energy Operators, LLC

Common Stock

Issuance of common stock for loan extension, Shares

250,000

Share price (in dollars per share) | $ / shares

$ 1.55

Original Convertible Notes

Common Stock

Notes conversion price (in dollars per share) | $ / shares

$ 1.10

$ 1.50

Debt conversion, shares issued

4,814,265

Principal converted | $

$ 5.2

Series B Notes

Common Stock

Notes conversion price (in dollars per share) | $ / shares

$ 1.50

Convertible notes issued for cash | $

$ 4.5

Convertible Notes

Common Stock

Issuance of common stock in connection with conversion of convertible notes payable, Shares

4,814,265

Notes conversion price (in dollars per share) | $ / shares

$ 1.38

Principal converted | $

$ 5.2

Debt conversion, accrued interest amount | $

$ 0.1

SHAREHOLDERS' EQUITY - Preferre

SHAREHOLDERS' EQUITY - Preferred Stock (Details) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
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 shares outstanding	0	0
Preferred Stock
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 shares outstanding	0	0

SHAREHOLDERS' EQUITY - Warrants

SHAREHOLDERS' EQUITY - Warrants (Details) - $ / shares	Jan. 30, 2017	Jan. 20, 2017	Dec. 30, 2016	Dec. 31, 2017
Warrants
Shares underlying outstanding warrants				7,588,800
Underwriter warrants
Warrants
Shares underlying outstanding warrants				255,600
Warrants exercise price (in dollars per share)				$ 1.25
Investor warrants
Warrants
Shares underlying outstanding warrants				6,666,600
Warrants exercise price (in dollars per share)	$ 3	$ 3	$ 3	$ 3
Warrants issued during the period (in shares)	5,371,579	5,371,579	1,294,987
Placement agent warrants
Warrants
Shares underlying outstanding warrants				666,600
Warrants exercise price (in dollars per share)	$ 1.50	$ 1.50	$ 1.50	$ 1.50
Warrants issued during the period (in shares)	537,260	537,260	129,516

STOCK-BASED COMPENSATION - Plan

STOCK-BASED COMPENSATION - Plan (Details) - $ / shares	Jun. 01, 2017	Apr. 01, 2017	Dec. 31, 2017	Dec. 31, 2016	Aug. 18, 2016	Aug. 17, 2016
STOCK-BASED COMPENSATION
Shares reserved for issuance					10,000,000	5,000,000
Options granted to employees, directors and consultants			422,000	2,400,000
Exercise price (in dollars per share)			$ 1.86	$ 1.16
Manager of Production and Completion Operations
STOCK-BASED COMPENSATION
Exercise price (in dollars per share)		$ 1.83
Senior Landman
STOCK-BASED COMPENSATION
Exercise price (in dollars per share)	$ 1.89

STOCK-BASED COMPENSATION - Acti

STOCK-BASED COMPENSATION - Activity Summary (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Number of Shares
Outstanding Options, Beginning of period (in shares)	4,675,000	2,275,000
Exercisable Options (in shares)	4,347,500	3,010,000	2,200,000
Options Granted (in shares)	422,000	2,400,000
Options Forfeited (in shares)	(100,000)
Outstanding Options, End of period (in shares)	4,997,000	4,675,000	2,275,000
Weighted Average Exercise Price
Outstanding (in dollars per share)	$ 0.85	$ 0.76	$ 0.33
Exercisable (in dollars per share)	0.74	0.54	$ 0.30
Granted (in dollars per share)	$ 1.86	$ 1.16
Remaining Contractual Term (Years)
Outstanding	4 years 5 months 9 days	5 years 4 months 21 days	6 years 6 months
Exercisable	4 years 5 months 23 days	5 years 11 months 19 days	6 years 8 months 19 days
Granted	5 years 8 months 9 days	5 years 4 months 2 days
Stock Compensation Plan
Number of Shares
Options Granted (in shares)	422,000

STOCK-BASED COMPENSATION - Assu

STOCK-BASED COMPENSATION - Assumptions (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Pricing model assumptions
Weighted-average risk-free interest rate, minimum	1.75%	0.94%
Weighted-average risk-free interest rate, maximum	1.93%	1.31%
Weighted-average volatility, minimum (as a percent)	162.00%	142.00%
Weighted-average volatility, maximum (as a percent)	169.00%	214.00%
Minimum
Pricing model assumptions
Expected option term	2 years 6 months	1 year 6 months
Maximum
Pricing model assumptions
Expected option term	3 years 3 months	2 years 6 months

STOCK-BASED COMPENSATION - Expe

STOCK-BASED COMPENSATION - Expense and Unvested (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
STOCK BASED COMPENSATION
Stock-based compensation expense	$ 1.4	$ 1.1
Unvested share based compensation	$ 0.6

PROVISION FOR INCOME TAXES - De

PROVISION FOR INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
PROVISION FOR INCOME TAXES
Liability for uncertain tax positions	$ 0
Deferred tax assets - noncurrent:
NOL carryover	2,109,423	$ 4,287,567
Stock based compensation	727,631	576,808
Asset retirement obligation	277,015	350,333
Charitable contribution	814
Total deferred tax assets	3,114,883	5,214,708
Deferred tax liabilities - current:
Property and equipment	(15,251)	(1,990)
Impairment, intangible drilling costs and other exploration costs capitalized	(935,482)	(1,796,102)
Debt discount - Beneficial conversion feature	(337,518)
Total deferred tax liabilities	(1,288,251)	(1,798,092)
Net deferred tax assets	1,826,632	3,416,616
Valuation allowance	$ (1,826,632)	$ (3,416,616)

PROVISION FOR INCOME TAXES - In

PROVISION FOR INCOME TAXES - Income Tax Reconciliation and NOL (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Tax at statutory federal rate		$ (3,688,109)	$ (1,520,524)
Permanent difference		2,258,353	2,378
State taxes, net of federal		(331,474)	(136,847)
Change in valuation allowance		396,256	938,026
Effect of the Tax Cuts and Jobs Act		918,446
Other		446,528	$ 716,967
Operating loss carryforwards		8,600,000
Amount of federal deferred tax balance		$ 900,000
Forecast
Federal and deferred tax assets and liabilities tax rate (in percent)	21.00%

RELATED PARTIES (Details)

RELATED PARTIES (Details)	Dec. 21, 2017USD ($)	Oct. 16, 2017USD ($)item$ / sharesshares	Sep. 23, 2017$ / sharesshares	Jan. 31, 2017USD ($)item	Oct. 31, 2017USD ($)item$ / shares	Dec. 31, 2017USD ($)item	Dec. 31, 2016USD ($)
Related Party Transactions
Line of credit - related party						$ 5,000,000
Line of credit - related party							$ 5,000,000
Accrued interest						876,455	302,477
Accounts receivable - joint interest billing - related party						204,730	286,226
Drilling advances						$ 680,248	234,452
Providence Energy Operators, LLC | PetroShare Corp
Related Party Transactions
Related party, ownership percentage						11.70%
Initial Line of Credit
Related Party Transactions
Proceeds from issuance of debt							3,937,815
Secured Credit Facility
Related Party Transactions
Proceeds from issuance of debt						$ 5,000,000
Convertible Notes
Related Party Transactions
Principal converted		$ 5,200,000
Debt conversion, accrued interest amount		$ 100,000
Notes conversion price (in dollars per share) | $ / shares		$ 1.38
Series A Convertible Notes
Related Party Transactions
Principal converted						5,166,800
Proceeds from issuance of debt						8,057,400	1,942,600
Series B Notes
Related Party Transactions
Notes conversion price (in dollars per share) | $ / shares					$ 1.50
Proceeds from issuance of debt					$ 4,700,000	4,724,900
Providence Energy Operators, LLC
Related Party Transactions
Accounts receivable - joint interest billing - related party						200,000
Drilling advances						700,000
Providence Energy Operators, LLC | Initial Line of Credit
Related Party Transactions
Line of credit - related party						5,000,000
Line of credit - related party							5,000,000
Shares issued | shares			250,000
Share price (in dollars per share) | $ / shares			$ 1.55
Accrued interest						500,000	$ 300,000
Unamortized portion of debt issuance costs						300,000
Interest expense, related party						100,000
Providence Energy Operators, LLC | Secured Credit Facility
Related Party Transactions
Line of credit outstanding balance						5,000,000
Accrued interest						$ 21,801
Proceeds from issuance of debt	$ 5,000,000
Employees and directors | Series A Convertible Notes
Related Party Transactions
Number of accredited investors | item				4
Face amount of debt				$ 200,000
Officers and directors | Convertible Notes
Related Party Transactions
Number of accredited investors | item						10
Interest expense, related party						$ 100,000
Officers and directors | Series A Convertible Notes
Related Party Transactions
Number of accredited investors | item		10
Principal converted		$ 700,000
Debt conversion, accrued interest amount		$ 20,670
Debt conversion, shares issued | shares		691,516
Notes conversion price (in dollars per share) | $ / shares		$ 1.10
Officers and directors | Series B Notes
Related Party Transactions
Number of accredited investors | item					10
Face amount of debt					$ 600,000

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Operating leases (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Operating leases and agreements
Lease term	4 years
Future minimum rental payments required under operating lease agreement
2,018	$ 129,738
2,019	133,698
2,020	137,658
2,021	34,662
Total	435,756
Lease expense	$ 100,000	$ 34,651

COMMITMENTS AND CONTINGENCIES71

COMMITMENTS AND CONTINGENCIES - Employment Agreements (Details) - USD ($)	Jun. 01, 2017	Apr. 01, 2017	Apr. 15, 2016	Feb. 25, 2016	Dec. 31, 2017	Dec. 31, 2016
Employment agreements
Exercise price (in dollars per share)					$ 1.86	$ 1.16
Manager of Production and Completion Operations
Employment agreements
Annual salary		$ 130,000
Renewal period of the employment agreement		1 year
Options granted (in shares)		200,000
Exercise price (in dollars per share)		$ 1.83
Manager of Production and Completion Operations | Restricted Stock
Employment agreements
Restricted stock granted (in shares)		50,000
Executive Vice President
Employment agreements
Annual salary		$ 156,000
Renewal period of the employment agreement		1 year
Options vested (in shares)		200,000
Executive Vice President | Restricted Stock
Employment agreements
Restricted stock granted (in shares)		66,700
Senior Landman
Employment agreements
Annual salary	$ 130,000
Renewal period of the employment agreement	1 month
Options granted (in shares)	200,000
Exercise price (in dollars per share)	$ 1.89
Senior Landman | Restricted Stock
Employment agreements
Restricted stock granted (in shares)	50,000
Chief Financial Officer
Employment agreements
Annual salary	$ 150,000
Renewal period of the employment agreement	1 year
Chief Financial Officer | Restricted Stock
Employment agreements
Restricted stock granted (in shares)	50,000
Executive Officer, Stephen J. Foley
Employment agreements
Monthly compensation				$ 13,000
Annual salary				$ 156,000
Renewal period of the employment agreement				1 year
Executive Officer, Fredrick J. Witsell
Employment agreements
Monthly compensation				$ 13,000
Annual salary				$ 156,000
Renewal period of the employment agreement				1 year
Chief Operating Officer, William B. Lloyd
Employment agreements
Monthly compensation				$ 13,000
Annual salary				$ 156,000
Renewal period of the employment agreement				1 year
Vice President, William R. Givan
Employment agreements
Monthly compensation			$ 10,833.33
Annual salary			$ 130,000
Renewal period of the employment agreement			1 year

REVISION OF PRIOR PERIOD FINA72

REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS (Details) - USD ($)	3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2017	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Balance Sheets
Convertible notes payable, net							$ 5,308
Total Liabilities						$ 27,029,870	16,450,637
Shareholders' Equity
Additional paid-in capital						28,553,736	11,405,225
Accumulated deficit	$ (13,889,025)	$ (12,174,554)	$ (11,874,927)	$ (12,174,554)	$ (13,889,025)	(20,698,421)	(9,851,042)
Total Shareholders’ Equity	7,208,777	8,082,043	6,871,271	8,082,043	7,208,777	7,883,034	1,576,147	$ 2,776,306
Total Liabilities and Shareholder's Equity	33,784,383	36,231,964	28,854,590	36,231,964	33,784,383	34,912,904	18,026,784
Statement of Operations
Net (loss)	$ (1,714,472)	$ (299,627)	$ (2,023,885)	$ (2,323,512)	$ (4,037,984)	$ (10,847,379)	(4,481,272)
Adjustments
Accretion of debt discounts (interest expense)							$ 4,749
Net (loss) per share	$ (0.08)	$ (0.01)	$ (0.09)	$ (0.10)	$ (0.18)	$ (0.46)	$ (0.21)
Accounting for the fair value of the convertible promissory notes and warrants issued in the Company's private placement | As Reported
Balance Sheets
Convertible notes payable, net							$ 814,989
Total 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
Statement of Operations
Net (loss)							(4,479,052)
Adjustments
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
Balance Sheets
Convertible notes payable, net							$ (809,681)
Total Liabilities							(809,681)
Shareholders' Equity
Additional paid-in capital							811,901
Accumulated deficit							(2,220)
Total Shareholders’ Equity							809,681
Adjustments
Accretion of debt discounts (interest expense)							$ (2,220)

RESTATEMENT OF PRIOR PERIOD C73

RESTATEMENT OF PRIOR PERIOD CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Details) - USD ($)	3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2017	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Crude oil and natural gas properties - using successful efforts method:
Accumulated depletion, depreciation and amortization	$ (3,053,238)	$ (2,216,564)	$ (1,114,232)	$ (2,216,564)	$ (3,053,238)	$ (2,849,374)	$ (783,320)
Crude oil and natural gas properties, net	29,563,890	25,507,123	20,625,255	25,507,123	29,563,890	31,072,589	13,610,203
Total assets	33,784,383	36,231,964	28,854,590	36,231,964	33,784,383	34,912,904	18,026,784
Shareholders' Equity
Accumulated deficit	(13,889,025)	(12,174,554)	(11,874,927)	(12,174,554)	(13,889,025)	(20,698,421)	(9,851,042)
Total Shareholders’ Equity	7,208,777	8,082,043	6,871,271	8,082,043	7,208,777	7,883,034	1,576,147	$ 2,776,306
Total Liabilities and Shareholder's Equity	33,784,383	36,231,964	28,854,590	36,231,964	33,784,383	34,912,904	18,026,784
Statement of Operations
Net (loss)	(1,714,472)	(299,627)	(2,023,885)	(2,323,512)	(4,037,984)	(10,847,379)	(4,481,272)
Adjustments
Depletion, depreciation and amortization	$ (836,673)	$ (1,102,332)	$ (330,912)	$ (1,433,245)	$ (2,269,918)	$ (2,836,891)	$ (65,033)
Net (loss) per share	$ (0.08)	$ (0.01)	$ (0.09)	$ (0.10)	$ (0.18)	$ (0.46)	$ (0.21)
Error relating to calculation of depletion of oil and gas properties | As Reported
Crude oil and natural gas properties - using successful efforts method:
Accumulated depletion, depreciation and amortization	$ (3,918,935)	$ (2,765,660)	$ (1,229,486)	$ (2,765,660)	$ (3,918,935)
Crude oil and natural gas properties, net	28,698,193	24,958,027	20,510,001	24,958,027	28,698,193
Total assets	32,918,686	35,682,868	28,739,336	35,682,868	32,918,686
Shareholders' Equity
Accumulated deficit	(14,754,722)	(12,723,650)	(11,990,181)	(12,723,650)	(14,754,722)
Total Shareholders’ Equity	6,343,080	7,532,947	6,756,017	7,532,947	6,343,080
Total Liabilities and Shareholder's Equity	32,918,686	35,682,868	28,739,336	35,682,868	32,918,686
Statement of Operations
Net (loss)	(2,031,072)	(733,469)	(2,139,139)	(2,872,608)	(4,903,680)
Adjustments
Depletion, depreciation and amortization	$ (1,153,273)	$ (1,536,174)	$ (446,166)	$ (1,982,341)	$ (3,135,614)
Net (loss) per share	$ (0.09)	$ (0.03)	$ (0.10)	$ (0.13)	$ (0.22)
Error relating to calculation of depletion of oil and gas properties | Adjustments
Crude oil and natural gas properties - using successful efforts method:
Accumulated depletion, depreciation and amortization	$ 865,697	$ 549,096	$ 115,254	$ 549,096	$ 865,697
Crude oil and natural gas properties, net	865,697	549,096	115,254	549,096	865,697
Total assets	865,697	549,096	115,254	549,096	865,697
Shareholders' Equity
Accumulated deficit	865,697	549,096	115,254	549,096	865,697
Total Shareholders’ Equity	865,697	549,096	115,254	549,096	865,697
Total Liabilities and Shareholder's Equity	865,697	549,096	115,254	549,096	865,697
Adjustments
Depletion, depreciation and amortization	$ 316,600	$ 433,842	$ 115,254	$ 549,096	$ 865,696

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Millions	Feb. 01, 2018USD ($)director$ / sharesshares	Dec. 21, 2017USD ($)	Dec. 31, 2017shares
SUBSEQUENT EVENTS
Warrants to purchase common stock (in shares) | shares			7,588,800
Secured Debt
SUBSEQUENT EVENTS
Proceeds from issuance of debt | $		$ 5
Subsequent Event | Secured Debt
SUBSEQUENT EVENTS
Face amount | $	$ 25
Percentage of conversion of outstanding principal of Lender loaned into common stock	20.00%
Conversion price (in dollars per share) | $ / shares	$ 1.15
Conversion price of remaining outstanding loan | $ / shares	$ 1.55
Warrants to purchase common stock (in shares) | shares	1,500,000
Warrants exercise price (in dollars per share) | $ / shares	$ 0.01
Option to purchase percentage of securities offered by the Company in any offering after December 31, 2018	25.00%
Discount on issuance of common stock	10.00%
Number of volume-weighted average trading price	30 days
Number of board of directors, lenders may appoint | director	3
Minimum number of independent director | director	1
Subsequent Event | Secured Debt | Providence Energy Operators, LLC
SUBSEQUENT EVENTS
Number of board of directors designated by related party | director	2
Subsequent Event | Secured Debt | 5NR
SUBSEQUENT EVENTS
Number of board of directors designated by related party | director	1
Subsequent Event | Secured Debt | Three-month LIBOR
SUBSEQUENT EVENTS
Spread on variable rate	1.00%
Subsequent Event | Secured Debt | Minimum
SUBSEQUENT EVENTS
Interest rate (as a percent)	14.00%
Exercise price minimum | $ / shares	$ 1.85
Subsequent Event | Secured Debt | Maximum
SUBSEQUENT EVENTS
Interest rate (as a percent)	17.00%
Option to purchase percentage of securities offered by the Company in any offering until December 31, 2018	50.00%
Option to purchase common stock maximum | $	$ 25

UNAUDITED CRUDE OIL AND NATUR75

UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION - Proved Reserves (Details)	12 Months Ended
	Dec. 31, 2017Boelocation$ / MMBbls$ / Mcf$ / bblMcfbbl	Dec. 31, 2016Boe$ / MMBbls$ / Mcf$ / bblMcfbbl	Dec. 31, 2015Boebbl
Proved Reserves, Total:
Balance, beginning of year | Boe	6,307,868		159
Revisions of previous estimates | Boe	(300,797)		(122)
Extensions and discoveries | Boe	2,168,180	6,030,624
Purchase of reserves | Boe		287,999
Production | Boe	(330,281)	(10,755)	(37)
Balance, end of year | Boe	7,844,970	6,307,868
Proved Developed Reserves (in energy) | Boe	1,534,172	740,088
Proved Undeveloped Reserves (in energy) | Boe	6,310,797	5,567,780
Oil (Bbls)
Proved Reserves:
Balance, beginning of year	2,761,204		159
Revisions of previous estimates	(388,211)		(122)
Extensions and discoveries	839,738	2,710,437
Purchase of reserves		55,669
Production	(188,529)	(4,902)	(37)
Balance, end of year	3,024,202	2,761,204
Proved Reserves, Total:
Proved Developed Reserves (in volume)	521,354	260,284
Proved Undeveloped Reserve (in volume)	2,502,847	2,500,920
Average resulting price (in dollars per barrel and Mcf) | $ / bbl	45.03	34.09
Natural Gas (Mcf)
Proved Reserves:
Balance, beginning of year | Mcf	11,492,855
Revisions of previous estimates | Mcf	292,477
Extensions and discoveries | Mcf	4,183,757	10,498,397
Purchase of reserves | Mcf		1,020,516
Production | Mcf	(549,846)	(26,058)
Balance, end of year | Mcf	15,419,243	11,492,855
Proved Reserves, Total:
Proved Developed Reserves (in volume) | Mcf	3,752,330	1,788,895
Proved Undeveloped Reserve (in volume) | Mcf	11,666,911	9,703,960
Unweighted average resulting price (in dollars per barrel and MMBtu) | $ / MMBbls	2.98	2.48
Average resulting price (in dollars per barrel and Mcf) | $ / Mcf	1.71	2.69
NGL's (Bbls)
Proved Reserves:
Balance, beginning of year	1,631,188
Revisions of previous estimates	38,668
Extensions and discoveries	631,149	1,570,454
Purchase of reserves		62,244
Production	(50,111)	(1,510)
Balance, end of year	2,250,894	1,631,188
Proved Reserves, Total:
Proved Developed Reserves (in volume)	387,430	181,655
Proved Undeveloped Reserve (in volume)	1,863,465	1,449,533
Average resulting price (in dollars per barrel and Mcf) | $ / bbl	20.42	14.44
Crude oil and NGLs
Proved Reserves, Total:
Unweighted average resulting price (in dollars per barrel and MMBtu) | $ / bbl	51.34	42.75
Todd Creek Farms
Proved Reserves, Total:
Number of PUD locations converted | location	18

UNAUDITED CRUDE OIL AND NATUR76

UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION - Standardized Measure of Discounted Future Net Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION
Future cash inflows	$ 208,459	$ 148,596	$ 5
Future cash outflows:
Production cost	(48,929)	(35,038)	(3)
Development cost	(58,784)	(37,667)
Future income tax	(16,006)	(5,802)
Future net cash flows	84,740	70,089	2
Adjustment to discount future annual net cash flows at 10%	(35,054)	(29,925)	$ (2)
Standardized measure of discounted future net cash flows	$ 49,686	$ 40,164		$ 5
Percentage of discount on future annual net cash flows (as a percent)	10.00%	10.00%	10.00%

UNAUDITED CRUDE OIL AND NATUR77

UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION - Changes in Standardized Measure of Estimated Discounted Future Net Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
UNAUDITED CRUDE OIL AND NATURAL GAS RESERVES INFORMATION
Standardized measure, beginning of year	$ 40,164		$ 5
Sales of oil and gas, net of production cost	(9,392)	$ (126)	(3)
Net change in sales prices, net of production cost	10,263	489
Discoveries, extensions and improved recoveries	11,979	76,445
Change in future development costs	(4,050)	(37,667)
Development costs incurred during the period that reduced future development cost	1,144
Revisions of quantity estimates	(559)		$ (2)
Accretion of discount	(4,275)	(130)
Net change in income tax	(6,810)	(2,587)
Purchase of reserves		6,021
Changes in timing of rates of production	2,672	(2,541)
Standardized measure, end of year	$ 49,686	$ 40,164