Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 5-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Glori Energy Inc. | |
Trading Symbol | GLRI | |
Entity Central Index Key | 1597131 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 31,803,626 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $23,475 | $29,751 |
Accounts receivable | 1,243 | 1,371 |
Prepaid expenses and other current assets | 377 | 244 |
Commodity derivatives | 2,886 | 2,905 |
Total current assets | 27,981 | 34,271 |
Property and equipment: | ||
Proved oil and gas properties - successful efforts | 45,920 | 45,694 |
Other property and equipment | 6,240 | 5,941 |
Total property and equipment and proved oil and gas properties, gross | 52,160 | 51,635 |
Less: accumulated depreciation, depletion and amortization | -23,855 | -22,822 |
Total property and equipment and proved oil and gas properties, net | 28,305 | 28,813 |
Commodity derivatives | 3,133 | 2,891 |
Deferred loan costs | 351 | 490 |
Deferred tax asset | 970 | 970 |
Total assets | 60,740 | 67,435 |
Current liabilities: | ||
Accounts payable | 694 | 2,251 |
Deferred revenues | 345 | 653 |
Accrued expenses | 1,375 | 1,792 |
Current portion of long-term debt | 473 | 2,380 |
Current deferred tax liability, net | 970 | 970 |
Total current liabilities | 3,857 | 8,046 |
Long-term liabilities: | ||
Long-term debt, less current portion | 16,726 | 16,845 |
Asset retirement obligation | 1,364 | 1,329 |
Total long-term liabilities | 18,090 | 18,174 |
Total liabilities | 21,947 | 26,220 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding as of December 31, 2014 and March 31, 2015 | 0 | 0 |
Common stock, $.0001 par value, 100,000,000 shares authorized, 31,499,303 and 31,702,818 shares issued and outstanding as of December 31, 2014 and March 31, 2015, respectively | 3 | 3 |
Additional paid-in capital | 105,945 | 105,383 |
Accumulated deficit | -67,155 | -64,171 |
Total stockholders' equity | 38,793 | 41,215 |
Total liabilities and stockholders' equity | $60,740 | $67,435 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 31,702,818 | 31,499,303 |
Common stock, shares outstanding | 31,702,818 | 31,499,303 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Oil and gas revenues | $2,000 | $742 |
Service revenues | 567 | 260 |
Total revenues | 2,567 | 1,002 |
Operating expenses: | ||
Oil and gas operations | 2,392 | 1,227 |
Service operations | 521 | 541 |
Science and technology | 474 | 320 |
Selling, general and administrative | 1,718 | 1,262 |
Depreciation, depletion and amortization of property and equipment | 1,068 | 448 |
Total operating expenses | 6,173 | 3,798 |
(Loss) income from operations | -3,606 | -2,796 |
Other (expense) income: | ||
Interest expense | -715 | -347 |
Gain on change in fair value of warrants | 0 | 2,454 |
Gain on commodity derivatives | 1,369 | 0 |
Other income (expense) | -15 | 5 |
Total other income, net | 639 | 2,112 |
Net loss before taxes on income | -2,967 | -684 |
Income tax expense | 17 | 0 |
Net income (loss) | ($2,984) | ($684) |
Net loss per common share, basic and diluted (in dollars per share) | ($0.09) | ($0.60) |
Weighted average common shares outstanding, basic and diluted (in shares) | 31,563 | 1,137 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data, unless otherwise specified | ||||
Beginning balance at Dec. 31, 2014 | $41,215 | $3 | $105,383 | ($64,171) |
Beginning balance (in shares) at Dec. 31, 2014 | 31,499,303 | 31,499,303 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock based compensation | 432 | 432 | ||
Stock option exercises | 130 | 130 | ||
Stock option exercises (in shares) | 203,515 | 203,515 | ||
Net loss | -2,984 | -2,984 | ||
Ending balance at Mar. 31, 2015 | $38,793 | $3 | $105,945 | ($67,155) |
Ending balance (in shares) at Mar. 31, 2015 | 31,702,818 | 31,702,818 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net loss | ($2,984) | ($684) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation, depletion and amortization of property and equipment | 1,068 | 448 |
Stock-based compensation | 432 | 77 |
Bad debt expense | 36 | 0 |
Amortization of deferred loan costs | 139 | 38 |
Accretion of end-of-term charge | 40 | 24 |
Unrealized gain on change in fair value of commodity derivatives | -223 | 0 |
Gain on change in fair value of warrant liabilities | 0 | -2,454 |
Accretion of discount on long-term debt | 28 | 17 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 92 | -1,019 |
Prepaid expenses and other current assets | -133 | -624 |
Accounts payable | -1,658 | 203 |
Deferred revenues | -308 | 692 |
Accrued expenses | -457 | 502 |
Net cash used in operating activities | -3,928 | -2,780 |
Cash flows from investing activities: | ||
Purchase of proved oil and gas property | -204 | -38,988 |
Purchase of other property and equipment | -220 | -82 |
Net cash used in investing activities | -424 | -39,070 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, preferred stock and preferred warrants | 0 | 5,019 |
Proceeds from issuance of long-term debt | 0 | 24,035 |
Proceeds from Stock Options Exercised | 130 | 0 |
Payments for deferred offering costs | 0 | -157 |
Payments for deferred loan costs | 0 | -767 |
Payments on long-term debt | -2,054 | -893 |
Net cash provided by (used in) financing activities | -1,924 | 27,237 |
Net increase in cash and cash equivalents | -6,276 | -14,613 |
Cash and cash equivalents, beginning of period | 29,751 | 20,867 |
Cash and cash equivalents, end of period | 23,475 | 6,254 |
Non-cash financing and investing activities: | ||
Asset retirement obligation assumed | 0 | 745 |
Supplemental cash flow information: | ||
Interest paid | $823 | $226 |
Organization_Nature_of_Busines
Organization, Nature of Business and Liquidity | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Nature of Business and Liquidity | ORGANIZATION, NATURE OF BUSINESS AND LIQUIDITY |
Glori Energy Technology Inc., a Delaware corporation (formerly Glori Energy Inc.) ("GETI"), was incorporated in November 2005 (as successor in interest to Glori Oil LLC) to increase production and recovery from mature oil wells using state of the art biotechnology solutions. | |
In January 2014, GETI entered into a merger and share exchange agreement with Infinity Cross Border Acquisition Corporation ("INXB") and certain of its affiliates, Glori Acquisition Corp., Glori Merger Subsidiary, Inc., and Infinity-C.S.V.C. Management Ltd., an INXB Representative. On April 14, 2014, the merger and share exchange agreement was closed and the merger was consummated. As a result of this transaction, Infinity Cross Border Acquisition Corporation merged with and into Glori Acquisition Corp., with Glori Acquisition Corp. surviving the merger. Following that merger, Glori Merger Subsidiary, Inc. merged with and into GETI, with GETI surviving the merger. Following both of these mergers (collectively referred to herein as the "Merger"), GETI became the wholly-owned subsidiary of Glori Acquisition Corp., and Glori Acquisition Corp. adopted the name "Glori Energy Inc." | |
In March 2014, GETI incorporated Glori Energy Production Inc., a wholly-owned subsidiary of Glori Holdings Inc., to purchase the Coke Field Assets (see NOTE 3) and incur the associated acquisition debt. | |
Glori Energy Inc., GETI, Glori Oil (Argentina) Limited, Glori Oil S.R.L., Glori Canada Ltd., Glori Holdings Inc., Glori California Inc., OOO Glori Energy and Glori Energy Production Inc. are collectively referred to as the “Company” in the condensed consolidated financial statements. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation | |
We have prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to these rules and regulations. In the opinion of management, these condensed consolidated financial statements contain all adjustments necessary to present fairly the Company’s condensed consolidated balance sheets as of December 31, 2014 and March 31, 2015 (unaudited), condensed consolidated statements of operations for the three months ending March 31, 2014 and 2015 (unaudited), condensed consolidated statement of stockholders’ equity for the three months ended March 31, 2015 (unaudited) and condensed consolidated statements of cash flows for the three months ended March 31, 2014 and 2015 (unaudited). All such adjustments represent normal recurring items. The financial information contained in this report for the three months ended March 31, 2014 and 2015, and as of March 31, 2015, is unaudited. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2014 and the notes thereto. | |
Principles of Consolidation | |
The accompanying condensed consolidated financial statements include the accounts of Glori Energy Inc. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. | |
Use of Estimates | |
The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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. Actual results could differ from these estimates. |
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | PROPERTY AND EQUIPMENT | |||||||
Property and equipment consists of the following (in thousands): | ||||||||
December 31, 2014 | March 31, 2015 | |||||||
(Unaudited) | ||||||||
Proved oil and gas properties - successful efforts | $ | 45,694 | $ | 45,920 | ||||
Unproved oil and gas properties | 196 | 410 | ||||||
Construction in progress | 589 | 590 | ||||||
Laboratory and warehouse facility | 640 | 648 | ||||||
Laboratory and field service equipment | 3,158 | 3,204 | ||||||
Office equipment, computer equipment, vehicles and other | 1,358 | 1,388 | ||||||
51,635 | 52,160 | |||||||
Less: accumulated depreciation, depletion and amortization (1) | (22,822 | ) | (23,855 | ) | ||||
Total property and equipment, net | $ | 28,813 | $ | 28,305 | ||||
(1) Excludes accretion of asset retirement obligation. | ||||||||
Depreciation, depletion and amortization consists of the following (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Depreciation and amortization expense | $ | 124 | $ | 155 | ||||
Depletion expense | 227 | 877 | ||||||
Accretion of asset retirement obligation | 97 | 36 | ||||||
Total depreciation, depletion, and amortization of property and equipment | $ | 448 | $ | 1,068 | ||||
On March 14, 2014, a subsidiary of the Company, Glori Energy Production Inc., acquired certain oil, gas and mineral leases in Wood County Texas (the “Coke Field Assets”) from Petro-Hunt L.L.C. (“Petro-Hunt”) for (i) $38.0 million in cash and a $2.0 million convertible note payable (see NOTE 6) to Petro-Hunt, subject to certain purchase price adjustments primarily for net revenues in excess of direct operating expenses of the property from January 1, 2014 through the closing date, March 14, 2014, and (ii) the assumption of the asset retirement obligation related to plugging and abandoning the Coke Field Assets. | ||||||||
The Company has included revenues and expenses related to the Coke Field Assets for the period from March 15 through March 31, 2014 in the condensed consolidated statement of operations for the three months ended March 31, 2014. For this period, the revenues and net loss attributable to the Coke Field Assets were $670,000 and $124,000, respectively. | ||||||||
The following summary presents unaudited pro forma information for the three months ended March 31, 2014 as if the Coke Field had been acquired on January 1, 2014. | ||||||||
For the Three Months Ended March 31, | ||||||||
2014 | ||||||||
Total revenues | $ | 3,837 | ||||||
Net loss | (616 | ) | ||||||
Net loss per common share, basic and diluted | $ | (0.54 | ) | |||||
Weighted average shares outstanding: | ||||||||
Basic | 1,137 | |||||||
Diluted | 1,137 | |||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS | |||||||||||
FASB standards define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | ||||||||||||
Level 1 – Quoted prices in active markets for identical assets or liabilities. | ||||||||||||
Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||
Level 3 – Unobservable inputs that are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation. | ||||||||||||
If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. | ||||||||||||
The following table summarizes the financial liabilities measured at fair value, on a recurring basis as of March 31, 2015 (in thousands): | ||||||||||||
Fair value measurements using | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
(Unaudited) | ||||||||||||
March 31, 2015 | ||||||||||||
Short-term commodity derivatives, asset | — | 2,886 | — | 2,886 | ||||||||
Long-term commodity derivatives, asset | — | 3,133 | — | 3,133 | ||||||||
— | 6,019 | — | 6,019 | |||||||||
The Level 2 instruments presented in the table above consists of derivative instruments made up of commodity price swaps. The fair values of the Company's commodity derivative instruments are based upon the NYMEX futures value of oil compared to the contracted per barrel rate to be received. The Company records a liability associated with the futures contracts when the futures price of oil is greater than the contracted per barrel rate to be received and an asset when the futures price of oil is less than the contracted per barrel rate to be received. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
Derivative Instruments | DERIVATIVE INSTRUMENTS | ||||||||||
The Company utilizes derivative financial instruments to manage risks related to changes in oil prices. The Company is currently engaged in oil commodity price swaps where a fixed price is received from the counterparty for a portion of the Company's oil production. In return the Company pays a floating price based upon NYMEX oil prices. Although these arrangements are designed to reduce the downside risk of a decline in oil prices on the covered production, they conversely limit potential income from increases in oil prices and expose the Company to the credit risk of counterparties. The Company manages the default risk of counterparties by engaging in these agreements with only high credit quality multinational energy companies and through the continuous monitoring of their performance. | |||||||||||
As of March 31, 2015, the Company had the following open positions on outstanding commodity derivative contracts: | |||||||||||
Period | Volume/Month (Bbls) | Price/Unit | Fair Value - Asset | ||||||||
(Unaudited) | |||||||||||
April 2015 - March 2016 | 7,300 | $ | 86.5 | 2,886,000 | |||||||
April 2016 - March 2017 | 6,550 | $ | 82.46 | 1,830,000 | |||||||
April 2017 - March 2018 | 5,800 | $ | 80.53 | 1,303,000 | |||||||
The Company has not elected to designate any of these as derivative contracts for hedge accounting. Accordingly, the derivative contracts are carried at fair value on the condensed consolidated balance sheet as assets or liabilities. For each reporting period the contracts are marked-to-market and the resulting unrealized changes in the fair value of the assets and liabilities are recognized on the condensed consolidated statements of operations. The payables and receivables resulting from the closed derivative contracts result in realized gains and losses recorded on the Company's condensed consolidated statements of operations. The unrealized and realized gains and losses on derivative instruments are recognized in the gain (loss) on commodity derivatives line item located in other (expense) income. | |||||||||||
The following tables summarize the unrealized and realized gain (loss) on commodity derivatives: | |||||||||||
Three Months Ended March 31, | |||||||||||
2015 | |||||||||||
(Unaudited) | |||||||||||
Unrealized gain on commodity derivatives | $ | 223 | |||||||||
Realized gain on commodity derivatives | 1,146 | ||||||||||
$ | 1,369 | ||||||||||
Long_Term_Debt
Long Term Debt | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Debt Disclosure [Abstract] | |||||
Long Term Debt | LONG TERM DEBT | ||||
On June 11, 2012, the Company entered into a secured term promissory note in the amount of $8.0 million. The note contains a 10.0% annual interest rate subject to increase based upon an increase in the prime rate. The loan is secured by substantially all assets of the Company with the exception of the Coke Field Assets. The lender also received a warrant to purchase shares of the Company’s stock which was exchanged for 18,208 common shares upon consummation of the Merger. Equal monthly principal payments are due over 27 months beginning in April 2013 through June 2015 plus an end of term charge of $280,000. As of December 31, 2014 the ratable liability for the end of term charge was $240,000, and it is included in accrued expenses in current liabilities on the accompanying 2014 condensed consolidated balance sheet. The loan agreement contains covenants which place restrictions on the incurrence of debt, liens and capital expenditures. On March 2, 2015 the Company elected to prepay the entire remaining indebtedness. The payment included remaining principal of $888,000 and the end of term charge of $280,000. | |||||
On March 14, 2014 in connection with the closing of the pre-acquisition of the Coke Field Assets, the Company entered into two financing agreements of $18.0 million and $4.0 million in order to fund a portion of the $38.0 million in cash required for the acquisition. | |||||
The $18.0 million note is a senior secured term loan facility of Glori Energy Production Inc. and is secured by the Coke Field Assets and shares of common stock of Glori Energy Production Inc. The loan has a three year term bearing interest at 11.0% per annum, subject to increase upon a LIBOR rate increase above 1%. The credit agreement requires quarterly principal payments equal to 50% of the excess cash flows, as defined, from the Coke Field Assets during the first year and 75% thereafter subject to a minimum quarterly principal payment of $112,500 plus interest. The loan was funded net of closing costs of 2%, or $360,000, which was initially included in deferred loan costs on the condensed consolidated balance sheets and amortized over the loan term. The loan agreement contains covenants which place restrictions on Glori Energy Production’s ability to incur additional debt, incur other liens, make other investments, capital expenditures and the sale of assets. | |||||
Glori Energy Production is also required to maintain certain financial ratios related to leverage, working capital and proved reserves, all as defined in the loan agreement. In May and November of each year, in accordance with a procedure outlined in the loan agreement, the value of the collateral securing the note is redetermined based on engineering reserve reports submitted by Glori Energy Production. As of December 31, 2014 and March 31, 2015 the outstanding loan balance was $17,428,000 and $17,158,000. Glori Energy Production is in compliance with all covenants as of March 31, 2015. | |||||
The $4.0 million note has a two year term bearing interest at 12.0% per annum and is secured by the assets of the Company but is subordinated to existing Company debt. The loan was funded net of closing costs of 2%, or $80,000, which was included in deferred loan costs on the consolidated balance sheet and amortized over the loan term. The $4.0 million note principal and a $400,000 prepayment penalty plus accrued interest was paid in full on May 13, 2014 and the remaining related deferred loan costs were expensed. | |||||
On March 14, 2014, in connection with the purchase of the Coke Field Assets, a subsidiary of the Company, Glori Energy Production, issued to Petro-Hunt an unsecured, subordinated convertible promissory note for $2.0 million bearing interest at 6.0% per annum. On April 14, 2014 the note was converted into 250,000 shares of post-Merger common stock. | |||||
Maturities on long-term debt during the next two years are as follows (in thousands): | |||||
Year ending March 31, | Amount | ||||
(Unaudited) | |||||
2016 | $ | 473 | |||
2017 | 16,726 | ||||
$ | 17,199 | ||||
Loss_Per_Share
Loss Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Loss Per Share | LOSS PER SHARE | |||||||
The Company follows current guidance for share-based payments which are considered as participating securities. Share-based payment awards that contain non-forfeitable rights to dividends, whether paid or unpaid, are designated as participating securities and are included in the computation of basic earnings per share. However, in periods of net loss, participating securities other than common stock are not included in the calculation of basic loss per share because there is not a contractual obligation for owners of these securities to share in the Company’s losses, and the effect of their inclusion would be anti-dilutive. | ||||||||
The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
(Unaudited) | ||||||||
Numerator: | ||||||||
Net loss | $ | (684 | ) | $ | (2,984 | ) | ||
Denominator: | ||||||||
Weighted-average common shares outstanding - basic | 1,137 | 31,563 | ||||||
Effect of dilutive securities | — | — | ||||||
Weighted-average common shares - diluted | 1,137 | 31,563 | ||||||
Net loss per common share - basic and diluted | $ | (0.60 | ) | $ | (0.09 | ) | ||
The following weighted-average securities outstanding during the three months ended March 31, 2014 and 2015 were not included in the calculation of diluted shares outstanding as they would have been anti-dilutive (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
(Unaudited) | ||||||||
Common stock warrants ($10 strike price) | 9 | 5,321 | ||||||
Common stock options | 2,364 | 2,240 | ||||||
Restricted shares | — | 469 | ||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES |
At December 31, 2014 and March 31, 2015, the Company has net operating loss carryforwards for federal income tax reporting purposes of approximately $51.9 million and $55.7 million, respectively, which will begin to expire in the year 2025, and tax credits of approximately $450,000 which will begin to expire in 2027. The NOL carry forward has not been reduced by approximately $5.4 million of loss carryforwards that management estimates such amount of the loss carry forwards will expire due to limitations from changes in control. | |
The Company has recorded valuation allowances against the Company's deferred tax assets. The effective tax rate for the three months ended March 31, 2015 varies from the statutory rate primarily due to the effect of the valuation allowance. For the three months ended March 31, 2015 the Company had income tax expense of $17,000 due to current taxes on foreign income. | |
The Company has amended its 2010 and 2011 federal income tax returns to correct the omission of Form 926 Return by a U.S. Transferor of Property to a Foreign Corporation regarding transfers to support the operations of its subsidiary Glori Oil S.R.L. Management estimates the liability for this omission is approximately $31,000, but believes any liability will be abated and, accordingly, has not recognized any liability in the accompanying consolidated financial statements. | |
ASC 740, Income Taxes ("ASC 740") prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of income tax positions taken or expected to be taken in an income tax return. For those benefits to be recognized, an income tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. As of March 31, 2015, the Company has no uncertain tax positions. | |
The Company's policy is to recognize interest and penalties related to uncertain tax positions as income tax benefit (expense) in the Company's Statements of Operations. The Company had no interest or penalties related to unrecognized tax benefits for the quarter ended March 31, 2015. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | ||||
Litigation | |||||
From time to time, the Company may be subject to legal proceedings and claims that arise in the ordinary course of business. The Company is not currently a party to any material litigation or proceedings and is not aware of any material litigation or proceedings, pending or threatened against it. | |||||
Commitments | |||||
The Company leases two buildings in Houston, Texas and a warehouse facility in Gull Lake, Saskatchewan under operating leases. The Company entered into a two-year lease agreement in October 2014, for 7,805 square feet of office space in Houston's Westchase District for $18,000 per month, with a one-year extension option at a 4% increase in rent and two one-year extension options at a to be mutually agreed upon market rate with the lessor. The Company's original Houston building lease, which contains office space, warehouse space and a laboratory, expires in May 2017 and is leased for $11,000 per month. The Saskatchewan warehouse is a month-to-month lease which rents for C$1,000 per month and is cancelable with 30 days notice. | |||||
In addition to the facility lease commitments, the Company also has various other commitments such as technology hardware and support and software commitments. | |||||
Approximate minimum future rental payments under these noncancelable operating leases as of March 31, 2015 are as follows (in thousands): | |||||
Year Ending March 31, | |||||
(Unaudited) | |||||
2016 | $ | 351 | |||
2017 | 238 | ||||
2018 | 21 | ||||
$ | 610 | ||||
Total rent expense was approximately $60,000 and $71,000 for the three months ended March 31, 2014 and March 31, 2015, respectively. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock-Based Compensation | STOCK-BASED COMPENSATION | ||||||||||||
Stock Incentive Plan | |||||||||||||
In December 2014, the Company shareholders approved the adoption of the 2014 Long Term Incentive Plan ("the 2014 Plan") which authorized 2,000,000 shares to be available for issuance to officers, directors, employees, and affiliates of the Company. Options are issued at an exercise price equal to the fair market value of the Company’s common stock at the grant date. Generally, the options vest 25 percent after 1 year, and thereafter ratably each month over the following 36 months, and may be exercised for a period of 10 years subject to vesting. | |||||||||||||
The Company has computed the fair value of all options granted during the year ended December 31, 2014 and three months ended March 31, 2015, using the Black-Scholes option pricing model using the following assumptions: | |||||||||||||
Year ended | Three months ended March 31, | ||||||||||||
December 31, | |||||||||||||
2014 | 2015 | ||||||||||||
(Unaudited) | |||||||||||||
Risk-free interest rate | 2.23 | % | 1.72 | % | |||||||||
Expected volatility | 55 | % | 73 | % | |||||||||
Expected dividend yield | — | — | |||||||||||
Expected life (in years) | 7.09 | 10 | |||||||||||
Expected forfeiture rate | — | — | |||||||||||
The following table summarizes the activity of the Company’s plan related to stock options: | |||||||||||||
Number | Weighted | Weighted | Aggregate intrinsic value | ||||||||||
of options | average | average | |||||||||||
exercise | remaining | ||||||||||||
price per share | contractual | ||||||||||||
term (years) | |||||||||||||
Outstanding as of December 31, 2014 | 2,300,050 | $ | 0.82 | 6.72 | $ | 7,725,000 | |||||||
Awarded (unaudited) | 318,234 | 3.1 | |||||||||||
Exercised (unaudited) | (203,515 | ) | 0.64 | ||||||||||
Forfeited or Expired (unaudited) (1) | (806 | ) | 1.16 | ||||||||||
Outstanding as of March 31, 2015 (unaudited) | 2,413,963 | $ | 1.14 | 6.92 | $ | 2,706,000 | |||||||
Exercisable as of December 31, 2014 (2) | 2,099,345 | $ | 0.79 | 6.6 | $ | 7,119,000 | |||||||
Exercisable as of March 31, 2015 (unaudited) (2) | 1,936,424 | $ | 0.81 | 6.38 | $ | 2,552,000 | |||||||
-1 | Management considers the circumstances generating these forfeitures to be unusual and nonrecurring in nature; accordingly, no allowance for forfeitures of options to purchase shares has been considered in determining future vesting or expense. | ||||||||||||
-2 | The employee options shown as exercisable are subject to a one year lock up agreement pursuant to the terms of the Merger whereby these options, although fully vested, cannot be exercised until April 15, 2015, the day after the first anniversary of the Merger. | ||||||||||||
The weighted-average grant date fair value for equity options granted during the three months ended March 31, 2014 and 2015 was $0.66 and $2.40, respectively. The total fair value of options vested during the three months ended March 31, 2014 and March 31, 2015 was $79,000 and $60,000. | |||||||||||||
In addition to stock options issued on January 28, 2015, the Company issued 100,806 restricted stock awards to directors and 579,548 restricted stock awards to executives. The directors' awards vest entirely on April 14, 2015. The executives' awards vest over a four year period with 25% of the vesting occurring annually over a four year period beginning on the issuance date. | |||||||||||||
Stock-based compensation expense is included primarily in selling, general and administrative expense and was $77,000 and $432,000 for the three months ended March 31, 2014 and March 31, 2015, respectively. The Company has future unrecognized compensation expense for nonvested shares at March 31, 2015 of $3,036,000 with a weighted average vesting period of 3.5 years. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | SEGMENT INFORMATION | |||||||||||||||
The Company generates revenues through the production and sale of oil and natural gas (the “Oil and Gas Segment”) and through the Company’s AERO services provided to third party oil companies (the “AERO Services Segment”). | ||||||||||||||||
The Oil and Gas Segment produces and develops the Company’s acquired oil and natural gas interests. The revenues derived from the segment are from sales to the first purchaser. The Company uses two such arrangements for oil sales, one for the Etzold Field located in Seward County, Kansas and another for the Coke and Quitman Fields located in Wood County, Texas. | ||||||||||||||||
The AERO Services Segment derives revenues from external customers by providing the Company’s biotechnology solution of enhanced oil recovery through a two-step process consisting of (1) the Analysis Phase and (2) the Field Deployment Phase. | ||||||||||||||||
The Analysis Phase work is a reservoir screening process whereby the Company obtains field samples and evaluates the Company’s potential for AERO Services Segment success. This process is performed at the Company’s Houston laboratory facility. The science and technology expenses shown on the Company’s condensed consolidated statements of operations are the expenses that are directly attributable to the Analysis Phase and expenses associated with the Company’s on-going research and development of its technology. | ||||||||||||||||
In the Field Deployment Phase the Company deploys skid mounted injection equipment used to inject nutrient solution in the oil reservoir. The work in this phase is performed in oil fields of customers located in the United States and internationally and in the Company’s own oil fields. The service operations expense shown on the Company’s condensed consolidated statements of operations are the expenses that are directly attributable to the Field Deployment Phase. | ||||||||||||||||
Earnings of industry segments exclude income taxes, interest income, interest expense and unallocated corporate expenses. | ||||||||||||||||
Although the AERO Services Segment provides enhanced oil recovery services to the Oil and Gas Segment, the Company does not utilize intercompany charges. The direct costs of the services such as the injection solution, transportation of the solution and expenses associated with the injection are charged directly to the Oil and Gas Segment. All of the AERO Services Segment capital expenditures and depreciation associated with injection equipment is viewed as part of the AERO Services Segment. | ||||||||||||||||
The following table sets forth the operating segments of the Company and the associated revenues and expenses (in thousands): | ||||||||||||||||
Oil and Gas | AERO Services | Corporate | Total | |||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||
Revenues | $ | 742 | $ | 260 | $ | — | $ | 1,002 | ||||||||
Total operating expenses | 1,227 | 541 | 1,582 | 3,350 | ||||||||||||
Depreciation, depletion and amortization | 329 | 112 | 7 | 448 | ||||||||||||
Loss from operations | (814 | ) | (393 | ) | (1,589 | ) | (2,796 | ) | ||||||||
Other income, net | — | — | 2,112 | 2,112 | ||||||||||||
Net loss | $ | (814 | ) | $ | (393 | ) | $ | 523 | $ | (684 | ) | |||||
Oil and Gas | AERO Services | Corporate | Total | |||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||
Revenues | $ | 2,000 | $ | 567 | $ | — | $ | 2,567 | ||||||||
Total operating expenses | 2,392 | 521 | 2,192 | 5,105 | ||||||||||||
Depreciation, depletion and amortization | 953 | 100 | 15 | 1,068 | ||||||||||||
(Loss) income from operations | (1,345 | ) | (54 | ) | (2,207 | ) | (3,606 | ) | ||||||||
Other income (expense), net | 1,369 | — | (730 | ) | 639 | |||||||||||
Income tax expense | — | — | 17 | 17 | ||||||||||||
Net income (loss) | $ | 24 | $ | (54 | ) | $ | (2,954 | ) | $ | (2,984 | ) | |||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
We have prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to these rules and regulations. In the opinion of management, these condensed consolidated financial statements contain all adjustments necessary to present fairly the Company’s condensed consolidated balance sheets as of December 31, 2014 and March 31, 2015 (unaudited), condensed consolidated statements of operations for the three months ending March 31, 2014 and 2015 (unaudited), condensed consolidated statement of stockholders’ equity for the three months ended March 31, 2015 (unaudited) and condensed consolidated statements of cash flows for the three months ended March 31, 2014 and 2015 (unaudited). All such adjustments represent normal recurring items. The financial information contained in this report for the three months ended March 31, 2014 and 2015, and as of March 31, 2015, is unaudited. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2014 and the notes thereto. | |
Principles of Consolidation | Principles of Consolidation |
The accompanying condensed consolidated financial statements include the accounts of Glori Energy Inc. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. | |
Use of Estimates | Use of Estimates |
The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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. Actual results could differ from these estimates. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment | Property and equipment consists of the following (in thousands): | |||||||
December 31, 2014 | March 31, 2015 | |||||||
(Unaudited) | ||||||||
Proved oil and gas properties - successful efforts | $ | 45,694 | $ | 45,920 | ||||
Unproved oil and gas properties | 196 | 410 | ||||||
Construction in progress | 589 | 590 | ||||||
Laboratory and warehouse facility | 640 | 648 | ||||||
Laboratory and field service equipment | 3,158 | 3,204 | ||||||
Office equipment, computer equipment, vehicles and other | 1,358 | 1,388 | ||||||
51,635 | 52,160 | |||||||
Less: accumulated depreciation, depletion and amortization (1) | (22,822 | ) | (23,855 | ) | ||||
Total property and equipment, net | $ | 28,813 | $ | 28,305 | ||||
(1) Excludes accretion of asset retirement obligation. | ||||||||
Depreciation, depletion and amortization consists of the following (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Depreciation and amortization expense | $ | 124 | $ | 155 | ||||
Depletion expense | 227 | 877 | ||||||
Accretion of asset retirement obligation | 97 | 36 | ||||||
Total depreciation, depletion, and amortization of property and equipment | $ | 448 | $ | 1,068 | ||||
Business Acquisition, Pro Forma Information | The following summary presents unaudited pro forma information for the three months ended March 31, 2014 as if the Coke Field had been acquired on January 1, 2014. | |||||||
For the Three Months Ended March 31, | ||||||||
2014 | ||||||||
Total revenues | $ | 3,837 | ||||||
Net loss | (616 | ) | ||||||
Net loss per common share, basic and diluted | $ | (0.54 | ) | |||||
Weighted average shares outstanding: | ||||||||
Basic | 1,137 | |||||||
Diluted | 1,137 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Summary of financial liabilities measured at fair value | The following table summarizes the financial liabilities measured at fair value, on a recurring basis as of March 31, 2015 (in thousands): | |||||||||||
Fair value measurements using | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
(Unaudited) | ||||||||||||
March 31, 2015 | ||||||||||||
Short-term commodity derivatives, asset | — | 2,886 | — | 2,886 | ||||||||
Long-term commodity derivatives, asset | — | 3,133 | — | 3,133 | ||||||||
— | 6,019 | — | 6,019 | |||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
Schedule of Derivative Instruments | As of March 31, 2015, the Company had the following open positions on outstanding commodity derivative contracts: | ||||||||||
Period | Volume/Month (Bbls) | Price/Unit | Fair Value - Asset | ||||||||
(Unaudited) | |||||||||||
April 2015 - March 2016 | 7,300 | $ | 86.5 | 2,886,000 | |||||||
April 2016 - March 2017 | 6,550 | $ | 82.46 | 1,830,000 | |||||||
April 2017 - March 2018 | 5,800 | $ | 80.53 | 1,303,000 | |||||||
Gain (Loss) on Derivatives | The following tables summarize the unrealized and realized gain (loss) on commodity derivatives: | ||||||||||
Three Months Ended March 31, | |||||||||||
2015 | |||||||||||
(Unaudited) | |||||||||||
Unrealized gain on commodity derivatives | $ | 223 | |||||||||
Realized gain on commodity derivatives | 1,146 | ||||||||||
$ | 1,369 | ||||||||||
Long_Term_Debt_Tables
Long Term Debt (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Debt Disclosure [Abstract] | |||||
Schedule of Maturities of Long-term Debt | Maturities on long-term debt during the next two years are as follows (in thousands): | ||||
Year ending March 31, | Amount | ||||
(Unaudited) | |||||
2016 | $ | 473 | |||
2017 | 16,726 | ||||
$ | 17,199 | ||||
Loss_Per_Share_Tables
Loss Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
(Unaudited) | ||||||||
Numerator: | ||||||||
Net loss | $ | (684 | ) | $ | (2,984 | ) | ||
Denominator: | ||||||||
Weighted-average common shares outstanding - basic | 1,137 | 31,563 | ||||||
Effect of dilutive securities | — | — | ||||||
Weighted-average common shares - diluted | 1,137 | 31,563 | ||||||
Net loss per common share - basic and diluted | $ | (0.60 | ) | $ | (0.09 | ) | ||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following weighted-average securities outstanding during the three months ended March 31, 2014 and 2015 were not included in the calculation of diluted shares outstanding as they would have been anti-dilutive (in thousands): | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
(Unaudited) | ||||||||
Common stock warrants ($10 strike price) | 9 | 5,321 | ||||||
Common stock options | 2,364 | 2,240 | ||||||
Restricted shares | — | 469 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Minimum Future Capital Lease Payments | Approximate minimum future rental payments under these noncancelable operating leases as of March 31, 2015 are as follows (in thousands): | ||||
Year Ending March 31, | |||||
(Unaudited) | |||||
2016 | $ | 351 | |||
2017 | 238 | ||||
2018 | 21 | ||||
$ | 610 | ||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of Fair Value Assumptions | The Company has computed the fair value of all options granted during the year ended December 31, 2014 and three months ended March 31, 2015, using the Black-Scholes option pricing model using the following assumptions: | ||||||||||||
Year ended | Three months ended March 31, | ||||||||||||
December 31, | |||||||||||||
2014 | 2015 | ||||||||||||
(Unaudited) | |||||||||||||
Risk-free interest rate | 2.23 | % | 1.72 | % | |||||||||
Expected volatility | 55 | % | 73 | % | |||||||||
Expected dividend yield | — | — | |||||||||||
Expected life (in years) | 7.09 | 10 | |||||||||||
Expected forfeiture rate | — | — | |||||||||||
Schedule of Stock Option Activity | The following table summarizes the activity of the Company’s plan related to stock options: | ||||||||||||
Number | Weighted | Weighted | Aggregate intrinsic value | ||||||||||
of options | average | average | |||||||||||
exercise | remaining | ||||||||||||
price per share | contractual | ||||||||||||
term (years) | |||||||||||||
Outstanding as of December 31, 2014 | 2,300,050 | $ | 0.82 | 6.72 | $ | 7,725,000 | |||||||
Awarded (unaudited) | 318,234 | 3.1 | |||||||||||
Exercised (unaudited) | (203,515 | ) | 0.64 | ||||||||||
Forfeited or Expired (unaudited) (1) | (806 | ) | 1.16 | ||||||||||
Outstanding as of March 31, 2015 (unaudited) | 2,413,963 | $ | 1.14 | 6.92 | $ | 2,706,000 | |||||||
Exercisable as of December 31, 2014 (2) | 2,099,345 | $ | 0.79 | 6.6 | $ | 7,119,000 | |||||||
Exercisable as of March 31, 2015 (unaudited) (2) | 1,936,424 | $ | 0.81 | 6.38 | $ | 2,552,000 | |||||||
-1 | Management considers the circumstances generating these forfeitures to be unusual and nonrecurring in nature; accordingly, no allowance for forfeitures of options to purchase shares has been considered in determining future vesting or expense. | ||||||||||||
-2 | The employee options shown as exercisable are subject to a one year lock up agreement pursuant to the terms of the Merger whereby these options, although fully vested, cannot be exercised until April 15, 2015, the day after the first anniversary of the Merger. |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following table sets forth the operating segments of the Company and the associated revenues and expenses (in thousands): | |||||||||||||||
Oil and Gas | AERO Services | Corporate | Total | |||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||
Revenues | $ | 742 | $ | 260 | $ | — | $ | 1,002 | ||||||||
Total operating expenses | 1,227 | 541 | 1,582 | 3,350 | ||||||||||||
Depreciation, depletion and amortization | 329 | 112 | 7 | 448 | ||||||||||||
Loss from operations | (814 | ) | (393 | ) | (1,589 | ) | (2,796 | ) | ||||||||
Other income, net | — | — | 2,112 | 2,112 | ||||||||||||
Net loss | $ | (814 | ) | $ | (393 | ) | $ | 523 | $ | (684 | ) | |||||
Oil and Gas | AERO Services | Corporate | Total | |||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||
Revenues | $ | 2,000 | $ | 567 | $ | — | $ | 2,567 | ||||||||
Total operating expenses | 2,392 | 521 | 2,192 | 5,105 | ||||||||||||
Depreciation, depletion and amortization | 953 | 100 | 15 | 1,068 | ||||||||||||
(Loss) income from operations | (1,345 | ) | (54 | ) | (2,207 | ) | (3,606 | ) | ||||||||
Other income (expense), net | 1,369 | — | (730 | ) | 639 | |||||||||||
Income tax expense | — | — | 17 | 17 | ||||||||||||
Net income (loss) | $ | 24 | $ | (54 | ) | $ | (2,954 | ) | $ | (2,984 | ) | |||||
Property_and_Equipment_Summary
Property and Equipment Summary of Plant and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Proved oil and gas properties - successful efforts | $45,920 | $45,694 |
Unproved oil and gas properties | 410 | 196 |
Property and equipment, gross | 6,240 | 5,941 |
Total property and equipment and proved oil and gas properties, gross | 52,160 | 51,635 |
Less: accumulated depreciation, depletion and amortization (1) | -23,855 | -22,822 |
Total property and equipment and proved oil and gas properties, net | 28,305 | 28,813 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 590 | 589 |
Laboratory and warehouse facility [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 648 | 640 |
Laboratory and field service equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,204 | 3,158 |
Office equipment, computer equipment, vehicles and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $1,388 | $1,358 |
Property_and_Equipment_Depreci
Property and Equipment Depreciation, Depletion, and Amortization (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $155 | $124 |
Depletion expense | 877 | 227 |
Accretion of asset retirement obligation | 36 | 97 |
Total depreciation, depletion, and amortization of property and equipment | $1,068 | $448 |
Property_and_Equipment_Pro_For
Property and Equipment Pro Forma Information (Details) (Coke Field Assets [Member], Glori Energy Production, Inc. [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
Coke Field Assets [Member] | Glori Energy Production, Inc. [Member] | |
Business Acquisition [Line Items] | |
Total revenues | $3,837 |
Net loss | ($616) |
Net loss per common shares, basic (in dollars per share) | ($0.54) |
Net loss per common shares, diluted (in dollars per share) | ($0.54) |
Weighted average shares outstanding: | |
Weighted-average common shares outstanding - basic (in shares) | 1,137 |
Weighted-average common shares - diluted (in shares) | 1,137 |
Property_and_Equipment_Narrati
Property and Equipment Narrative (Details) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 14, 2014 | Mar. 31, 2014 | |
Business Acquisition [Line Items] | ||||
Total revenues | $2,567,000 | $1,002,000 | ||
Net loss | 2,984,000 | 684,000 | ||
Glori Energy Production, Inc. [Member] | Coke Field Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | 38,000,000 | |||
Convertible note payable assumed | 2,000,000 | |||
Total revenues | 670,000 | |||
Net loss | $124,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Commodity Contract [Member], Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term commodity derivatives, asset | $2,886 |
Long-term commodity derivatives, asset | 3,133 |
Derivative asset | 6,019 |
Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term commodity derivatives, asset | 0 |
Long-term commodity derivatives, asset | 0 |
Derivative asset | 0 |
Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term commodity derivatives, asset | 2,886 |
Long-term commodity derivatives, asset | 3,133 |
Derivative asset | 6,019 |
Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term commodity derivatives, asset | 0 |
Long-term commodity derivatives, asset | 0 |
Derivative asset | $0 |
Derivative_Instruments_Outstan
Derivative Instruments Outstanding Commodity Derivative Contracts (Details) (Not Designated as Hedging Instrument [Member], Commodity Contract [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
bbl | |
April 2015 - March 2016 [Member] | |
Derivative [Line Items] | |
Volume per month (Bbls) | 7,300 |
Price (usd per barrel) | 86.5 |
Fair value - Asset (Liability) | $2,886 |
April 2016 - March 2017 [Member] | |
Derivative [Line Items] | |
Volume per month (Bbls) | 6,550 |
Price (usd per barrel) | 82.46 |
Fair value - Asset (Liability) | 1,830 |
April 2017 - March 2018 [Member] | |
Derivative [Line Items] | |
Volume per month (Bbls) | 5,800 |
Price (usd per barrel) | 80.53 |
Fair value - Asset (Liability) | $1,303 |
Derivative_Instruments_Realize
Derivative Instruments Realized and Unrealized Gain (Loss) on Derivatives (Details) (Commodity Contract [Member], Not Designated as Hedging Instrument [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Unrealized gain on commodity derivatives | $223 |
Realized gain on commodity derivatives | 1,146 |
Gain on oil and natural gas derivatives | $1,369 |
Long_Term_Debt_Maturities_on_L
Long Term Debt Maturities on Long-Term Debt (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2016 | $473 |
2017 | 16,726 |
Total | $17,199 |
Long_Term_Debt_Narrative_Detai
Long Term Debt Narrative (Details) (USD $) | 0 Months Ended | ||||||
Mar. 14, 2014 | Mar. 02, 2015 | Apr. 14, 2014 | Jun. 11, 2012 | 13-May-14 | Mar. 31, 2015 | Dec. 31, 2014 | |
agreement | |||||||
Debt Instrument [Line Items] | |||||||
Number of financing agreements | 2 | ||||||
Outstanding loan balance | $17,199,000 | ||||||
10% Secured Term Promissory Note [Member] | |||||||
Debt Instrument [Line Items] | |||||||
End of term charge recognized | 280,000 | 280,000 | |||||
Repayment of debt principal | 888,000 | ||||||
Secured Debt [Member] | 10% Secured Term Promissory Note [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | 8,000,000 | ||||||
Interest rate (percent) | 10.00% | ||||||
Warrants exchanged for common shares (in shares) | 18,208 | ||||||
Repayment period | 27 months | ||||||
Secured Debt [Member] | 10% Secured Term Promissory Note [Member] | Other Noncurrent Liabilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
End of term charge recognized | 240,000 | ||||||
Subordinated Debt [Member] | 12% Subordinated Note [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | 4,000,000 | ||||||
Interest rate (percent) | 12.00% | ||||||
Loan term | 2 years | ||||||
Issuance cost (percent) | 2.00% | ||||||
Issuance cost | 80,000 | ||||||
Repurchase amount | 4,000,000 | ||||||
Prepayment penalty | 400,000 | ||||||
Convertible Subordinated Debt [Member] | 6% Subordinated Convertible Promissory Note [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Ordinary shares issued for PIPE Investment (Petro-Hunt portion of PIPE Investment) | 250,000 | ||||||
Glori Energy Production, Inc. [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding loan balance | 17,158,000 | 17,428,000 | |||||
Glori Energy Production, Inc. [Member] | Coke Field Assets [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Cash consideration | 38,000,000 | ||||||
Glori Energy Production, Inc. [Member] | Senior Notes [Member] | 11% Senior Secured Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | 18,000,000 | ||||||
Loan term | 3 years | ||||||
Minimum stated interest rate (percent) | 11.00% | ||||||
Percentage of excess cash flows for principal payment, year one | 50.00% | ||||||
Percentage of excess cash flows for principal payment, year two and thereafter | 75.00% | ||||||
Issuance cost (percent) | 2.00% | ||||||
Issuance cost | 360,000 | ||||||
Glori Energy Production, Inc. [Member] | Senior Notes [Member] | 11% Senior Secured Term Loan [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal payment | 112,500 | ||||||
Glori Energy Production, Inc. [Member] | Senior Notes [Member] | 11% Senior Secured Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate (percent) | 1.00% | ||||||
Glori Energy Production, Inc. [Member] | Convertible Subordinated Debt [Member] | 6% Subordinated Convertible Promissory Note [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | 2,000,000 | ||||||
Interest rate (percent) | 6.00% |
Loss_Per_Share_Summary_of_Earn
Loss Per Share Summary of Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator: | ||
Net loss | ($2,984) | ($684) |
Denominator: | ||
Weighted-average common shares outstanding - basic (in shares) | 31,563 | 1,137 |
Effect of dilutive securities (in shares) | 0 | 0 |
Weighted-average common shares - diluted (in shares) | 31,563 | 1,137 |
Net loss per common share, basic and diluted (in dollars per share) | ($0.09) | ($0.60) |
Loss_Per_Share_Summary_of_Anti
Loss Per Share Summary of Antidilutive Securities (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common stock warrant strike price | 10 | 10 |
Common Stock Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded in the calculation of diluted shares outstanding | 5,321 | 9 |
Common Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded in the calculation of diluted shares outstanding | 2,240 | 2,364 |
Restricted Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded in the calculation of diluted shares outstanding | 469 | 0 |
Income_Taxes_Narrative_Details
Income Taxes Narrative (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||
NOL carryforward | $55,700,000 | $51,900,000 | |
Tax credit carryforward | 450,000 | ||
Reduction to NOL carryforward | 5,400,000 | ||
Income tax expense | 17,000 | 0 | |
Domestic Tax Authority [Member] | Tax Years 2010 And 2011 [Member] | |||
Income Tax Contingency [Line Items] | |||
Uncertain tax position | $31,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies Summary of Minimum Future Capital Lease Payments (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2016 | $351 |
2017 | 238 |
2018 | 21 |
Total | $610 |
Commitments_and_Contingencies_2
Commitments and Contingencies Narrative (Details) | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||||||
Oct. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | |
building | USD ($) | USD ($) | Office, Laboratory, and Manufacturing [Member] | Office Building [Member] | Warehouse [Member] | One Year Extension Option at 4% Increase in Rent [Member] | Two One-Year Extension Options at a Mutually Agreed Market Rate [Member] | Two One-Year Extension Options at a Mutually Agreed Market Rate [Member] | |
USD ($) | USD ($) | CAD | Office Building [Member] | Office Building [Member] | |||||
sqft | extension | ||||||||
Operating Leased Assets [Line Items] | |||||||||
Number of buildings | 2 | ||||||||
Lease term | 2 years | ||||||||
Square footage | 7,805 | ||||||||
Lease renewal term | 1 year | 1 year | |||||||
Increase to monthly rental amount (percent) | 4.00% | ||||||||
Number of lease extensions | 2 | ||||||||
Monthly rental amount | $11,000 | $18,000 | 1,000 | ||||||
Notice required for lease termination | 30 days | ||||||||
Rent expense | $71,000 | $60,000 |
StockBased_Compensation_Fair_V
Stock-Based Compensation Fair Value Assumptions (Details) (Stock Option [Member]) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.72% | 2.23% |
Expected volatility | 73.00% | 55.00% |
Expected dividend yield | 0.00% | 0.00% |
Expected life (in years) | 10 years 0 months 0 days | 7 years 1 month 2 days |
Expected forfeiture rate | 0.00% | 0.00% |
StockBased_Compensation_Summar
Stock-Based Compensation Summary of Stock Option Activity (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Number of Stock Options | ||
Outstanding as of December 31, 2014 (in shares) | 2,300,050 | |
Awarded (in shares) | 318,234 | |
Exercised (in shares) | -203,515 | |
Forfeited or Expired (in shares) | -806 | |
Outstanding as of March 31, 2015 (in shares) | 2,413,963 | 2,300,050 |
Exercisable (in shares) | 1,936,424 | 2,099,345 |
Weighted Average Exercise Price | ||
Outstanding as of December 31, 2014 (in dollars per share) | $0.82 | |
Awarded (in dollars per share) | $3.10 | |
Exercised (in dollars per share) | $0.64 | |
Forfeited or Expired (in dollars per share) | $1.16 | |
Outstanding as of March 31, 2015 (in dollars per share) | $1.14 | $0.82 |
Exercisable (in dollars per share) | $0.81 | $0.79 |
Weighted Average Remaining Contractual Term | ||
Outstanding (in years) | 6 years 10 months 30 days | 6 years 8 months 19 days |
Exercisable (in years) | 6 years 4 months 18 days | 6 years 7 months 7 days |
Aggregate Intrinsic Value | ||
Outstanding as of December 31, 2014 | $7,119 | |
Outstanding as of March 31, 2015 | 2,552 | 7,119 |
Exercisable | $2,706 | $7,725 |
StockBased_Compensation_Narrat
Stock-Based Compensation Narrative (Details) (USD $) | 3 Months Ended | 0 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Apr. 14, 2014 | Jan. 28, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value | $2.40 | $0.66 | |||
Total fair value of options vested | $60 | $79 | |||
Future unrecognized compensation expense for nonvested shares | 3,036 | ||||
Selling, General and Administrative Expenses [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $432 | $77 | |||
2014 Long Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized | 2,000,000 | ||||
Expiration period | 10 years | ||||
2014 Long Term Incentive Plan [Member] | Year One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Vesting period | 1 year | ||||
2014 Long Term Incentive Plan [Member] | Years Two Through Four [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 36 months | ||||
Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Lock up agreement period | 1 year | ||||
Weighted average vesting period | 3 years 5 months 28 days | ||||
Restricted Stock [Member] | Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock awards issued | 100,806 | ||||
Restricted Stock [Member] | Executives [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Restricted stock awards issued | 579,548 | ||||
Restricted Stock [Member] | Year One [Member] | Executives [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Restricted Stock [Member] | Year Two [Member] | Executives [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Restricted Stock [Member] | Year Three [Member] | Executives [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Restricted Stock [Member] | Year Four [Member] | Executives [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 25.00% |
Segment_Information_Summary_of
Segment Information Summary of Segment Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
arrangement | ||
Segment Reporting Information [Line Items] | ||
Number of first purchaser arrangements | 2 | |
Revenues | $2,567 | $1,002 |
Total operating expenses | 5,105 | 3,350 |
Depreciation, depletion and amortization | 1,068 | 448 |
(Loss) income from operations | -3,606 | -2,796 |
Other (expense) income, net | 639 | 2,112 |
Income tax expense | 17 | 0 |
Net income (loss) | -2,984 | -684 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Total operating expenses | 2,192 | 1,582 |
Depreciation, depletion and amortization | 15 | 7 |
(Loss) income from operations | -2,207 | -1,589 |
Other (expense) income, net | -730 | 2,112 |
Income tax expense | 17 | |
Net income (loss) | -2,954 | 523 |
Oil And Gas [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,000 | 742 |
Total operating expenses | 2,392 | 1,227 |
Depreciation, depletion and amortization | 953 | 329 |
(Loss) income from operations | -1,345 | -814 |
Other (expense) income, net | 1,369 | 0 |
Income tax expense | 0 | |
Net income (loss) | 24 | -814 |
AERO Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 567 | 260 |
Total operating expenses | 521 | 541 |
Depreciation, depletion and amortization | 100 | 112 |
(Loss) income from operations | -54 | -393 |
Other (expense) income, net | 0 | 0 |
Income tax expense | 0 | |
Net income (loss) | ($54) | ($393) |