Energy Resources 12 10-Q 13 Nov 19 2019 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 31, 2019
Document Information Line Items
Entity Registrant Name	Energy Resources 12, L.P
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		11,031,579
Amendment Flag	false
Entity Central Index Key	0001696088
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	true
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-55916
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-4805237
Entity Address, Address Line One	120 W 3rd Street, Suite 220
Entity Address, City or Town	Fort Worth
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76102
City Area Code	817
Local Phone Number	882-9192
Entity Interactive Data Current	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 10,489,079	$ 9,682,402
Oil, natural gas and natural gas liquids revenue receivable	7,635,752	3,431,064
Derivative asset	271,299	644,786
Total Current Assets	18,396,130	13,758,252
Oil and natural gas properties, successful efforts method, net of accumulated depreciation, depletion and amortization of $ 16,062,776 and $4,889,806, respectively	199,405,312	182,078,667
Derivative asset - noncurrent	0	234,831
Other assets, net	1,087,426	1,512,941
Total Assets	218,888,868	197,584,691
Liabilities
Accounts payable and accrued expenses	11,578,038	11,488,175
Due to related parties	417,786	212,117
Total Current Liabilities	11,995,824	11,700,292
Revolving credit facility	0	39,500,000
Asset retirement obligations	511,339	383,255
Total Liabilities	12,507,163	51,583,547
Partners’ Equity
Limited partners' interest (10,745,057 and 7,857,359 common units issued and outstanding, respectively)	206,381,920	146,001,359
General partner's interest	(215)	(215)
Total Partners’ Equity	206,381,705	146,001,144
Total Liabilities and Partners’ Equity	$ 218,888,868	$ 197,584,691

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Oil and natural gas properties, successful efforts method, accumulated depreciation, depletion and amortization (in Dollars)	$ 16,062,776	$ 4,889,806
Limited partners' interest, common units issued	10,745,057	7,857,359
Limited partners' interest, common units outstanding	10,745,057	7,857,359

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues
Oil	$ 15,408,425	$ 5,062,458	$ 44,195,615	$ 15,270,432
Natural gas	385,909	252,829	1,223,455	628,436
Natural gas liquids	89,550	188,419	658,758	633,013
Total revenue	15,883,884	5,503,706	46,077,828	16,531,881
Operating costs and expenses
Production expenses	4,421,808	945,233	11,100,065	3,213,860
Production taxes	1,433,440	548,574	4,161,112	1,487,100
General and administrative expenses	471,647	360,382	1,752,857	1,104,416
Depreciation, depletion, amortization and accretion	4,186,249	1,024,676	11,255,146	3,040,755
Total operating costs and expenses	10,513,144	2,878,865	28,269,180	8,846,131
Operating income	5,370,740	2,624,841	17,808,648	7,685,750
Interest expense, net	(286,865)	(479,810)	(1,521,252)	(851,859)
Gain (loss) on derivatives, net	596,782	(57,306)	(687,707)	(57,306)
Total other expense, net	309,917	(537,116)	(2,208,959)	(909,165)
Net income	$ 5,680,657	$ 2,087,725	$ 15,599,689	$ 6,776,585
Basic and diluted net income per common unit (in Dollars per share)	$ 0.56	$ 0.37	$ 1.72	$ 1.53
Weighted average common units outstanding - basic and diluted (in Shares)	10,074,857	5,640,746	9,083,003	4,417,011

Consolidated Statements of Part

Consolidated Statements of Partners' Equity - USD ($)	Total	Limited Partner [Member]	General Partner [Member]
Balance at Dec. 31, 2017	$ 55,045,527	$ 55,045,742	$ (215)
Balance (in Shares) at Dec. 31, 2017		3,191,231
Net proceeds from issuance of common units	10,184,032	$ 10,184,032
Net proceeds from issuance of common units (in Shares)		543,884
Distributions declared and paid to common units	(1,191,216)	$ (1,191,216)
Net income (loss)	1,288,325	1,288,325
Balance at Mar. 31, 2018	65,326,668	$ 65,326,883	(215)
Balance (in Shares) at Mar. 31, 2018		3,735,115
Balance at Dec. 31, 2017	55,045,527	$ 55,045,742	(215)
Balance (in Shares) at Dec. 31, 2017		3,191,231
Distributions declared and paid to common units	(4,587,244)
Net income (loss)	6,776,585
Balance at Sep. 30, 2018	119,090,442	$ 119,090,657	(215)
Balance (in Shares) at Sep. 30, 2018		6,485,774
Balance at Mar. 31, 2018	65,326,668	$ 65,326,883	(215)
Balance (in Shares) at Mar. 31, 2018		3,735,115
Net proceeds from issuance of common units	26,728,575	$ 26,728,575
Net proceeds from issuance of common units (in Shares)		1,422,283
Distributions declared and paid to common units	(1,440,608)	$ (1,440,608)
Net income (loss)	3,400,535	3,400,535
Balance at Jun. 30, 2018	94,015,170	$ 94,015,385	(215)
Balance (in Shares) at Jun. 30, 2018		5,157,398
Net proceeds from issuance of common units	24,942,967	$ 24,942,967
Net proceeds from issuance of common units (in Shares)		1,328,376
Distributions declared and paid to common units	(1,955,420)	$ (1,955,420)
Net income (loss)	2,087,725	2,087,725
Balance at Sep. 30, 2018	119,090,442	$ 119,090,657	(215)
Balance (in Shares) at Sep. 30, 2018		6,485,774
Balance at Dec. 31, 2018	$ 146,001,144	$ 146,001,359	(215)
Balance (in Shares) at Dec. 31, 2018	7,857,359	7,857,359
Net proceeds from issuance of common units	$ 15,398,132	$ 15,398,132
Net proceeds from issuance of common units (in Shares)		820,004
Distributions declared and paid to common units	(2,833,574)	$ (2,833,574)
Net income (loss)	1,641,943	1,641,943
Balance at Mar. 31, 2019	160,207,645	$ 160,207,860	(215)
Balance (in Shares) at Mar. 31, 2019		8,677,363
Balance at Dec. 31, 2018	$ 146,001,144	$ 146,001,359	(215)
Balance (in Shares) at Dec. 31, 2018	7,857,359	7,857,359
Distributions declared and paid to common units	$ (9,466,717)
Net income (loss)	15,599,689
Balance at Sep. 30, 2019	$ 206,381,705	$ 206,381,920	(215)
Balance (in Shares) at Sep. 30, 2019	10,745,057	10,745,057
Balance at Mar. 31, 2019	$ 160,207,645	$ 160,207,860	(215)
Balance (in Shares) at Mar. 31, 2019		8,677,363
Net proceeds from issuance of common units	18,952,872	$ 18,952,872
Net proceeds from issuance of common units (in Shares)		1,008,858
Distributions declared and paid to common units	(3,131,359)	$ (3,131,359)
Net income (loss)	8,277,089	8,277,089
Balance at Jun. 30, 2019	184,306,247	$ 184,306,462	(215)
Balance (in Shares) at Jun. 30, 2019		9,686,221
Net proceeds from issuance of common units	19,896,585	$ 19,896,585
Net proceeds from issuance of common units (in Shares)		1,058,836
Distributions declared and paid to common units	(3,501,784)	$ (3,501,784)
Net income (loss)	5,680,657	5,680,657
Balance at Sep. 30, 2019	$ 206,381,705	$ 206,381,920	$ (215)
Balance (in Shares) at Sep. 30, 2019	10,745,057	10,745,057

Consolidated Statements of Pa_2

Consolidated Statements of Partners' Equity (Parentheticals) - $ / shares	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018
General Partner [Member]
Distributions declared and paid per unit	$ 0.349041	$ 0.349041	$ 0.349041	$ 0.349041	$ 0.349041	$ 0.349041

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flow from operating activities:
Net income	$ 15,599,689	$ 6,776,585
Adjustments to reconcile net income to cash from operating activities:
Depreciation, depletion, amortization and accretion	11,255,146	3,040,755
Loss on mark-to-market of derivatives	608,319	57,306
Other non-cash expenses, net	425,515	47,157
Changes in operating assets and liabilities:
Oil, natural gas and natural gas liquids revenue receivable	(2,956,486)	(3,957,023)
Due to related parties	205,669	(66,252)
Accounts payable and accrued expenses	1,162,344	935,821
Net cash flow provided by operating activities	26,300,196	6,834,349
Cash flow from investing activities:
Cash paid for acquisition of oil and natural gas properties	(1,367,256)	(161,390,163)
Additions to oil and natural gas properties	(29,402,673)	(1,798,654)
Net cash flow used in investing activities	(30,769,929)	(163,188,817)
Cash paid for loan costs	0	(1,697,642)
Proceeds from term loan	0	25,000,000
Payments on term loan	0	(10,000,000)
Proceeds from advance from member of general partner	0	7,000,000
Payments on advance from member of general partner	0	(7,000,000)
Net proceeds from (payments on) revolving credit facility	(39,500,000)	44,500,000
Net proceeds related to issuance of common units	54,243,127	61,878,639
Distributions paid to limited partners	(9,466,717)	(4,587,244)
Net cash flow provided by financing activities	5,276,410	115,093,753
Increase (decrease) in cash and cash equivalents	806,677	(41,260,715)
Cash and cash equivalents, beginning of period	9,682,402	46,859,728
Cash and cash equivalents, end of period	10,489,079	5,599,013
Supplemental non-cash information:
Accrued capital expenditures related to additions to oil and natural gas properties	9,071,334	3,776,695
Interest paid	$ 1,081,803	$ 606,395

Partnership Organization

Partnership Organization	9 Months Ended
	Sep. 30, 2019
Disclosure Text Block [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Note 1. Partnership Organization Energy Resources 12, L.P. (together with its wholly-owned subsidiary, the “Partnership”) was formed as a Delaware limited partnership. The initial capitalization of the Partnership of $1,000 occurred on December 30, 2016. The Partnership began offering common units of limited partner interest (the “common units”) on a best-efforts basis on May 17, 2017, the date the Securities and Exchange Commission (“SEC”) declared the offering effective. As of July 25, 2017, the Partnership completed the sale of the minimum offering of 1,315,790 common units. The subscribers to the common units were admitted as Limited Partners of the Partnership at the initial closing of the offering, and the Partnership admitted additional Limited Partners monthly through the completion of its offering on October 24, 2019. The Partnership sold approximately 11.0 million common units for gross proceeds of $218.0 million under the offering. The proceeds from the sale of the common units have been used to acquire producing and non-producing oil and natural gas properties onshore in the United States and to develop those properties. As of September 30, 2019, the Partnership owned an approximate 5.9% non-operated working interest in 321 currently producing wells, predominantly in McKenzie, Dunn, McLean and Mountrail counties of North Dakota (collectively, the “Bakken Assets”). The Partnership also owned non-operated working interests in 27 wells in various stages of the drilling and completion process and additional future development locations in the Bakken Assets. The Bakken Assets, which are a part of the Bakken shale formation in the Greater Williston Basin, are operated by 14 third-party operators on behalf of the Partnership and other working interest owners. The general partner of the Partnership is Energy Resources 12 GP, LLC (the “General Partner”). The General Partner manages and controls the business affairs of the Partnership. David Lerner Associates, Inc. (the “Managing Dealer”), acted as the dealer manager for the offering of the common units. The Partnership’s fiscal year ends on December 31.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the instructions for Article 10 of SEC Regulation S-X. Accordingly, they do not include all of the information required by generally accepted accounting principles (“GAAP”) in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Partnership’s audited December 31, 2018 financial statements included in its 2018 Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the twelve-month period ending December 31, 2019. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. The fair market value of cash and cash equivalents approximates their carrying value. Cash balances may at times exceed federal depository insurance limits. Offering Costs On October 24, 2019, the Partnership completed its best-efforts offering of common units by the Managing Dealer, which received a selling commission and a marketing expense allowance based on proceeds of the units sold. Additionally, the Partnership incurred other offering costs including legal, accounting and reporting services. These offering costs have been recorded by the Partnership as a reduction of partners’ equity. As of September 30, 2019, the Partnership had completed the sale of 10.7 million common units for gross proceeds of approximately $212.3 million and proceeds net of offering costs of approximately $198.9 million. Use of Estimates The preparation of financial statements in conformity with United States GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Net Income Per Common Unit Basic net income per common unit is computed as net income divided by the weighted average number of common units outstanding during the period. Diluted net income per common unit is calculated after giving effect to all potential common units that were dilutive and outstanding for the period. There were no common units with a dilutive effect for the three and nine months ended September 30, 2019 and 2018. As a result, basic and diluted outstanding common units were the same. The Incentive Distribution Rights, as defined below, are not included in net income per common unit until such time that it is probable Payout (as discussed in Note 8) will occur. Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-02, Leases (Topic 842), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets as right-of-use assets and lease liabilities. The Partnership concluded there is no material impact to the Partnership’s consolidated financial statements and related disclosures. The Partnership adopted this standard as of January 1, 2019.

Oil and Gas Investments

Oil and Gas Investments	9 Months Ended
	Sep. 30, 2019
Oil and Gas Property [Abstract]
Oil and Gas Properties [Text Block]	Note 3. Oil and Gas Investments On February 1, 2018, the Partnership completed its purchase (“Acquisition No. 1”) in the Bakken Assets for approximately $87.5 million, and customary adjustments and capitalized transaction costs of approximately $2.9 million. Acquisition No. 1 was funded using proceeds from the Partnership’s best-efforts offering, proceeds from an unsecured term loan of $25.0 million and an advance from a member of the General Partner of $7.0 million. The term loan (discussed below in Note 5. Debt) was repaid in full and extinguished in December 2018. The advance from a member of the General Partner was repaid in full in May 2018. The advance did not bear interest and the member of the General Partner did not receive any compensation for the advance. The Partnership also recorded an asset retirement obligation liability of approximately $0.1 million in conjunction with this acquisition. On August 31, 2018, the Partnership completed its purchase (“Acquisition No. 2”) of an additional non-operated working interest in the Bakken Assets for approximately $82.5 million, subject to customary adjustments, and was funded using proceeds from the Partnership’s best-efforts offering and proceeds from a line of credit of $60.0 million (discussed below in Note 5. Debt). The Partnership accounted for Acquisition No. 2 as a purchase of a group of similar assets, and therefore capitalized transaction costs associated with this acquisition. The capitalized acquisition-related costs, which included but were not limited to fees for advisory and consulting (discussed below), due diligence, legal, accounting, engineering and environmental review services, for Acquisition No. 2 totaled approximately $2.9 million. The Partnership also recorded an asset retirement obligation liability of approximately $0.2 million in conjunction with this acquisition. The Partnership adjusted the purchase price of Acquisition No. 2 to reflect the customary settlement of operating revenues and expenses received or paid by the seller on the Partnership’s behalf between the effective date of March 1, 2018 and the closing date of August 31, 2018, in accordance with the closing conditions set forth in the purchase agreement. The net impact of the purchase price adjustments was a decrease to the purchase price of the asset of approximately $4.3 million. In November 2017, the Partnership engaged Regional Energy Investors, LP (“REI”) to perform advisory and consulting services, including supporting the Partnership through closing and post-closing of Acquisition No. 1. In the first quarter of 2018, the Partnership paid REI a total of approximately $5.3 million for its advisory and consulting services related to Acquisition No. 1. Of the $5.3 million paid to REI, approximately $4.7 million of these services related to Acquisition No. 1 were capitalized as part of the acquisition costs described above. In June 2018, the Partnership re-engaged REI to perform advisory and consulting services and support the Partnership through closing and post-closing of Acquisition No. 2, including assistance with due diligence and obtaining financing for Acquisition No. 2. In the third quarter of 2018, the Partnership paid REI a total of $4.1 million for its advisory and consulting services related to Acquisition No. 2. Of the $4.1 million, approximately $2.7 million of these services related to Acquisition No. 2 were capitalized as part of the acquisition costs described above. The remaining $1.4 million was capitalized as deferred loan costs and are being amortized over the life of the revolving credit facility described in Note 5. Debt. The deferred loan costs are recorded as Other assets, net on the Partnership’s consolidated balance sheet. Under the advisory and administration agreements (the “Agreements”) with REI, REI was also entitled to a fee of 5% of the gross sales price in the event the Partnership disposed of any or all of the Bakken Assets, if surplus funds are available after Payout to the holders of the Partnership’s common units, as defined in Note 8. Capital Contribution and Partners’ Equity below. On December 28, 2018, the Partnership terminated the Agreements with REI, which extinguished any potential fee upon sale of certain of the Partnership’s assets as was required under the Agreements. At the time of the extinguishment, the payment of a fee was not probable and there was no value to the rights owned by REI. In connection with the termination, the General Partner issued 500 of its Class B Units to each of Pope Energy Investors, LP and CFK Energy, LLC. The General Partner received $250 from each of Pope Energy Investors, LP and CFK Energy, LLC for this transaction. The General Partner Class B Units are non-voting and participate in 50% of any distributions by the General Partner from proceeds of its Incentive Distribution Rights, after Payout and the Dealer Manager Incentive Fees, as described in Note 8. Capital Contribution and Partners’ Equity below. REI is owned by entities that are controlled by Anthony F. Keating, III, Co-Chief Operating Officer of Energy 11 GP, LLC, and Michael J. Mallick, Co-Chief Operating Officer of Energy 11 GP, LLC. Glade M. Knight and David S. McKenney are the Chief Executive Officer and Chief Financial Officer, respectively, of Energy 11 GP, LLC as well as the Chief Executive Officer and Chief Financial Officer, respectively, of the General Partner. In addition, CFK Energy, LLC and Pope Energy Investors, LP are owned by entities controlled by Messrs. Keating and Mallick, respectively. See Note 9. Related Parties below for additional information. The following unaudited pro forma financial information for the three and nine months ended September 30, 2018 have been prepared as if Acquisitions No. 1 and No. 2 of the Bakken Assets had occurred on January 1, 2018. The unaudited pro forma financial information was derived from the historical statements of operations of the Partnership and the historical financial statements of the sellers of the Bakken Assets. The unaudited pro forma financial information does not purport to be indicative of the results of operations that would have occurred had the acquisition of the Bakken Assets and related financings occurred on the basis assumed above, nor is such information indicative of the Partnership’s expected future results of operations. Three Months Ended Nine Months Ended (Unaudited) (Unaudited) Revenues $ 8,546,037 $ 33,877,933 Net income $ 4,620,739 $ 16,686,968 As of September 30, 2019, the Partnership’s ownership of the Bakken Assets consisted of an approximate 5.9% non-operated working interest in 321 currently producing wells, and non-operated working interests in 27 wells in various stages of the drilling and completion process. From September 1, 2017, the effective date of Acquisition No. 1, to September 30, 2019, the Partnership has participated in the drilling of 145 wells, of which 118 have been completed and the other 27 wells are in various stages of completion. The Partnership incurred approximately $28.2 million and $5.6 million, respectively, in capital drilling and completion costs for the nine months ended September 30, 2019 and for the period from February 1, 2018 to September 30, 2018. The Partnership anticipates approximately $5 to $7 million of capital expenditures will be incurred during the fourth quarter of 2019 and the first quarter of 2020 to complete the 27 wells in various stages of completion at September 30, 2019; however, actual capital expenditures incurred may exceed this range.

Asset Retirement Obligations

Asset Retirement Obligations	9 Months Ended
	Sep. 30, 2019
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligation Disclosure [Text Block]	Note 4. Asset Retirement Obligations The Partnership records an asset retirement obligation (“ARO”) and capitalizes the asset retirement costs in oil and natural gas properties in the period in which the asset retirement obligation is incurred based upon the fair value of an obligation to perform site reclamation, dismantle facilities or plug and abandon wells. After recording these amounts, the ARO is accreted to its future estimated value using an assumed cost of funds and the additional capitalized costs are depreciated on a unit-of-production basis. Inherent in the present value calculation are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement and changes in the legal, regulatory, environmental and political environments. To the extent future revisions of these assumptions impact the present value of the existing asset retirement obligation, a corresponding adjustment is made to the oil and natural gas property balance. The changes in the aggregate ARO are as follows: 2019 Balance as of January 1, 2019 $ 383,255 Well additions 45,908 Accretion 15,170 Revisions 67,006 Balance as of September 30, 2019 $ 511,339

Debt

Debt	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	Note 5. Debt On January 16, 2018, the Partnership entered into a loan agreement with Bank of America, N.A. (“BOA”), which provides for an unsecured term loan (the “Term Loan”) of $25 million. The Term Loan was paid in full and extinguished in December 2018. Interest was payable monthly, and the Term Loan bore interest at a variable rate based on the London Inter-Bank Offered Rate (LIBOR) plus a margin of 2.00%. The Term Loan proceeds were used in closing on Acquisition No. 1, as described above. Glade M. Knight and David S. McKenney, the General Partner’s Chief Executive Officer and Chief Financial Officer, respectively, had guaranteed repayment of the Term Loan and did not receive any consideration in exchange for providing this guarantee. On August 31, 2018, the Partnership entered into a loan agreement (“Loan Agreement”) with Simmons Bank as administrative agent and the lenders party thereto (collectively, the “Lender”), which provides for a revolving credit facility (the “Credit Facility”) with an initial commitment amount of $60 million (the “Initial Revolver Commitment Amount”), subject to borrowing base restrictions. The commitment amount may be increased up to $100 million with Lender approval. At closing, the Partnership paid an origination fee of 0.50% of the Initial Revolver Commitment Amount, or $300,000. The commitment amount (“Revolver Commitment Amount”) was $40 million at September 30, 2019. The Partnership is subject to additional origination fees of 0.50% for any increase to the commitment made in excess of the Revolver Commitment Amount. The Partnership is also required to pay an unused facility fee at an annual rate of 0.50% on the unused portion of the Revolver Commitment Amount, based on the amount of borrowings outstanding during a quarter. The maturity date is August 31, 2021 (“Maturity Date”). The interest rate, subject to certain exceptions, is equal to the London Inter-Bank Offered Rate (LIBOR) plus a margin ranging from 2.75% to 3.75%, depending upon the Partnership’s borrowing base utilization, as calculated under the terms of the Loan Agreement. Any outstanding borrowings under the Credit Facility cannot exceed the lesser of the borrowing base or the Revolver Commitment Amount at any time; the effective borrowing base and the Revolver Commitment Amount were both $40 million at September 30, 2019. At September 30, 2019, the outstanding balance on the Credit Facility was $0. At closing, the Partnership borrowed $60.0 million. The proceeds were used to fund the purchase of Acquisition No. 2 described above and to pay closing costs. Subject to availability, the Credit Facility may also provide additional liquidity for future capital investments, including the drilling and completion of proposed wells by the operators of the Partnership’s properties, and other corporate working capital requirements. Under the terms of the Loan Agreement, the Partnership may make voluntary prepayments, in whole or in part, at any time with no penalty. The Credit Facility is secured by a mortgage and first lien position on at least 90% of the Partnership’s producing wells. In September 2019, the Loan Agreement was amended to modify the required risk management program of the Partnership. Under the amendment the Partnership is required to maintain a risk management program to manage the commodity price risk on the Partnership’s future oil and natural gas production if the Partnership’s borrowing base becomes equal to or greater than 50% of the Partnership’s producing reserves as calculated by its independent petroleum engineer. If this condition is met, the risk management program must cover at least 50% of the Partnership’s projected total production of oil and natural gas for a rolling 18-month period. At September 30, 2019, the Partnership’s borrowing base of $40 million does not exceed 50% of its estimated producing reserves; therefore, the Partnership is not required to maintain a risk management program. The Loan Agreement, as amended, does permit the Partnership to enter into derivative contracts with a counterparty at its own discretion so long as the term does not exceed 36 months and does not cover more than 80% of the Partnership’s projected oil and gas volumes. The Credit Facility contains mandatory prepayment requirements (including those described above), customary affirmative and negative covenants and events of default. The financial covenants as defined in the Loan Agreement include: ● a maximum leverage ratio ● a minimum current ratio ● maximum distributions The Partnership was in compliance with the applicable covenants at September 30, 2019. The outstanding balance of the Credit Facility of approximately $39.5 million at December 31, 2018 approximated the fair market value of the Credit Facility. The Partnership estimated the fair values of the Credit Facility by discounting the future cash flows of the instrument at estimated market rates consistent with the maturity of a debt obligation with similar credit terms and credit characteristics, which are Level 3 inputs under the fair value hierarchy. Market rates take into consideration general market conditions and maturity.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	Note 6. Fair Value of Financial Instruments The Partnership follows authoritative guidance related to fair value measurement and disclosure, which establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement using market participant assumptions at the measurement date. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: ● Level 1: Quoted prices in active markets for identical assets ● Level 2: Significant other observable inputs – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, either directly or indirectly, for substantially the full term of the financial instrument ● Level 3: Significant unobservable inputs The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and the consideration of factors specific to the asset or liability. The Partnership’s policy is to recognize transfers in or out of a fair value hierarchy as of the end of the reporting period for which the event or change in circumstances caused the transfer. The Partnership has consistently applied the valuation techniques discussed above for all periods presented. During the three and nine months ended September 30, 2019 and 2018, there were no transfers in or out of Level 1, Level 2, or Level 3 assets and liabilities measured on a recurring basis. As required, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth by level within the fair value hierarchy the Partnership’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2019 and December 31, 2018. Fair Value Measurements at September 30, 2019 Quoted Prices in Significant Other Observable Inputs Significant Unobservable Inputs Commodity derivatives - current assets $ - $ 271,299 $ - Total $ - $ 271,299 $ - Fair Value Measurements at December 31, 2018 Quoted Prices in Significant Other Observable Inputs Significant Unobservable Inputs Commodity derivatives - current assets $ - $ 644,786 $ - Commodity derivatives - noncurrent assets - 234,831 - Total $ - $ 879,617 $ - The Level 2 instruments presented in the table above consist of the Partnership’s costless collar commodity derivative instruments. The fair value of the Partnership’s derivative financial instruments is determined based upon future prices, volatility and time to maturity, among other things. Counterparty statements are utilized to determine the value of the commodity derivative instruments and are reviewed and corroborated using various methodologies and significant observable inputs. The fair value of the commodity derivatives noted above are included in the Partnership’s consolidated balance sheets as Derivative asset at September 30, 2019 and December 31, 2018. See additional detail in Note 7. Risk Management. Fair Value of Other Financial Instruments The carrying value of the Partnership’s cash and cash equivalents, oil, natural gas and natural gas liquids revenue receivable, accounts payable and accrued expenses reflect these items’ cost, which approximates fair value based on the timing of the anticipated cash flows, current market conditions and short-term maturity of these instruments. In addition, see Note 5. Debt for the fair value discussion on the Partnership’s debt.

Risk Management

Risk Management	9 Months Ended
	Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure [Text Block]	Note 7. Risk Management Participation in the oil and gas industry exposes the Partnership to risks associated with potentially volatile changes in energy commodity prices, and therefore, the Partnership’s future earnings are subject to these risks. Therefore, in December 2018 and March 2019, the Partnership entered into derivative contracts, with two different counterparties, through September 2020 to manage the commodity price risk on a portion of the Partnership’s anticipated future oil and gas production it will produce and sell and to reduce the effect of volatility in commodity price changes to provide a base level of cash flow from operations. All derivative instruments are recorded on the Partnership’s balance sheet as assets or liabilities measured at fair value. As of September 30, 2019, the Partnership’s derivative instruments with its counterparties were in a gain position; therefore, an asset of approximately $0.3 million, which approximates its fair value, has been recognized as a Derivative asset (current) on the Partnership’s consolidated balance sheet as of September 30, 2019. As of December 31, 2018, the Partnership’s derivative instruments were in a net gain position; therefore, an asset of approximately $0.9 million, which approximates its fair value, was recognized as a Derivative asset (current and noncurrent) on the Partnership’s consolidated balance sheet as of December 31, 2018. The Partnership determines the estimated fair value of derivative instruments using a market approach based on several factors, including quoted market prices in active markets and quotes from third parties, among other things. The Partnership also performs an internal valuation to ensure the reasonableness of third-party quotes. In consideration of counterparty credit risk, the Partnership assessed the possibility of whether the counterparty to the derivative would default by failing to make any contractually-required payments. Additionally, the Partnership considers that it is of substantial credit quality and has the financial resources and willingness to meet its potential repayment obligations associated with the derivative transactions. See additional discussion above in Note 6. Fair Value of Financial Instruments. The Partnership has not designated its derivative instruments as hedges for accounting purposes and has not entered into such instruments for speculative trading purposes. As a result, when derivatives do not qualify or are not designated as a hedge, the changes in the fair value, in addition to gains or losses on settlements, are recognized on the Partnership’s consolidated statements of operations as a gain or loss on derivative instruments. The Partnership recognized a total net gain on its derivative instruments of approximately $0.6 million for the three months ended September 30, 2019, which was recorded in the consolidated statements of operations as Gain on derivatives. The gain was comprised of (i) a $0.6 million of a mark-to-market unrealized gain on derivative instruments outstanding at period end and (ii) $9,600 of gains recognized on settled derivatives during the period. The Partnership recognized a total net loss on its derivative instruments of approximately $0.7 million for the nine months ended September 30, 2019, which was recorded in the consolidated statements of operations as Loss on derivatives. The loss was comprised of (i) $0.6 million of a mark-to-market unrealized loss incurred on derivative instruments outstanding at period end and (ii) $0.1 million of losses the Partnership recognized on settled derivatives during the period. The following table presents settlements on matured derivative instruments and non-cash losses on open derivative instruments for the periods presented. Non-cash losses below represent the change in fair value of derivative instruments which were held at period-end. Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Gain (loss) on settlement of matured derivatives $ 9,600 $ - $ (79,388 ) $ - Gain (loss) on mark-to-market of derivatives 587,182 (57,306 ) (608,319 ) (57,306 ) Gain (loss) on derivatives $ 596,782 $ (57,306 ) $ (687,707 ) $ (57,306 ) The Partnership’s derivative contracts are costless collars, which are used to establish floor and ceiling prices on future anticipated oil and gas production and are settled monthly. While the use of these derivative instruments limits the downside risk of adverse price movement, they may also limit future revenues from favorable price movement. The Partnership did not pay or receive a premium related to the costless collar agreements. The following table reflects the open costless collar instruments as of September 30, 2019. Settlement Period Basis Product Volume Floor / Ceiling Prices ($) Fair Value of Asset / (Liability) at 10/01/19 - 06/30/20 NYMEX Oil (bbls) 166,000 45.00 / 61.20 $ 40,173 10/01/19 - 02/29/20 NYMEX Oil (bbls) 10,000 50.00 / 64.50 13,400 07/01/20 - 09/30/20 NYMEX Oil (bbls) 48,000 50.00 / 64.50 194,880 10/01/19 - 09/30/20 Henry Hub Gas (MMBtu) 120,000 2.50 / 3.05 22,846 $ 271,299 The use of derivative instruments involves the risk that the Partnership’s counterparties will be unable to meet the financial terms of such instruments. The Partnership has netting arrangements with its counterparties that provide for offsetting payables against receivables from separate derivative instruments, which allow these assets and liabilities to be netted on the Partnership’s consolidated balance sheet. The Partnership’s outstanding derivative instruments are covered by International Swap Dealers Association Master Agreements (“ISDA”) entered into with the counterparties. The ISDA may provide that as a result of certain circumstances, such as cross-defaults, a counterparty may require all outstanding derivative instruments under an ISDA to be settled immediately.

Capital Contribution and Partne

Capital Contribution and Partners' Equity	9 Months Ended
	Sep. 30, 2019
Partners' Capital Notes [Abstract]
Partners' Capital Notes Disclosure [Text Block]	Note 8. Capital Contribution and Partners’ Equity At inception, the General Partner and organizational limited partner made initial capital contributions totaling $1,000 to the Partnership. Upon closing of the minimum offering, the organizational limited partner withdrew its initial capital contribution of $990, the General Partner received Incentive Distribution Rights (defined below), and has been and will be reimbursed for its documented third party out-of-pocket expenses incurred in organizing the Partnership and offering the common units. The Partnership completed its best-efforts offering of common units as of the close of business on October 24, 2019. The Partnership completed its minimum offering of 1,315,790 common units at $19.00 per common unit on July 25, 2017. In October 2017, the Partnership completed the sale of all common units at $19.00 (2,631,579 common units). In accordance with the prospectus, all subsequent common units were sold at $20.00 per common unit. As of September 30, 2019, the Partnership had completed the sale of 10.7 million common units for gross proceeds of approximately $212.3 million and proceeds net of offering costs of approximately $198.9 million. As of the conclusion of the offering on October 24, 2019, the Partnership had completed the sale of approximately 11.0 million common units for total gross proceeds of $218.0 million and proceeds net of selling commissions and marketing expenses of $204.9 million. Under the agreement with the Managing Dealer, the Managing Dealer received a total of 6% in selling commissions and a marketing expense allowance based on gross proceeds of the common units sold. The Managing Dealer also has Dealer Manager Incentive Fees (defined below) where the Managing Dealer could receive distributions up to an additional 4% of gross proceeds of the common units sold in the Partnership’s best-efforts offering as outlined in the prospectus based on the performance of the Partnership. Based on the common units sold through the conclusion of the offering on October 24, 2019, the Dealer Manager Incentive Fees are approximately $8.7 million, subject to Payout (defined below). Prior to “Payout,” which is defined below, all of the distributions made by the Partnership, if any, will be paid to the holders of common units. Accordingly, the Partnership will not make any distributions with respect to the Incentive Distribution Rights and will not pay the Dealer Manager Incentive Fees to the Managing Dealer, until Payout occurs. The Agreement of Limited Partnership of the Partnership (the “Partnership Agreement”) provides that “Payout”, which is defined below, occurs on the day when the aggregate amount distributed with respect to each of the common units equals $20.00 plus the Payout Accrual. The Partnership Agreement defines “Payout Accrual” as 7% per annum simple interest accrued monthly until paid on the Net Investment Amount outstanding from time to time. The Partnership Agreement defines Net Investment Amount initially as $20.00 per common unit, regardless of the amount paid for the common unit. If at any time the Partnership distributes to holders of common units more than the Payout Accrual, the amount the Partnership distributes in excess of the Payout Accrual will reduce the Net Investment Amount. All distributions made by the Partnership after Payout, which may include all or a portion of the proceeds of the sale of all or substantially all of the Partnership’s assets, will be made as follows: ● First, (i) to the Record Holders of the Incentive Distribution Rights, 30%; (ii) to the Managing Dealer, the “Dealer Manager Incentive Fees”, 30%, until such time as the Managing Dealer receives 4% of the gross proceeds of the common units sold; and (iii) to the Record Holders of outstanding common units, 40%, pro rata based on their percentage interest. ● Thereafter, (i) to the Record Holders of the Incentive Distribution Rights, 60%; and (ii) to the Record Holders of outstanding common units, 40%, pro rata based on their percentage interest. All items of income, gain, loss and deduction will be allocated to each Partner’s capital account in a manner generally consistent with the distribution procedures outlined above. For the three and nine months ended September 30, 2019, the Partnership paid distributions of $0.349041 and $1.047123 per common unit, or $3.5 million and $9.5 million, respectively. For the three and nine months ended September 30, 2018, the Partnership paid distributions of $0.349041 and $1.047123 per common unit, or $2.0 million and $4.6 million, respectively.

Related Parties

Related Parties	9 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	Note 9. Related Parties The Partnership has, and is expected to continue to engage in, significant transactions with related parties. These transactions cannot be construed to be at arm’s length and the results of the Partnership’s operations may be different than if conducted with non-related parties. The General Partner’s Board of Directors oversees and reviews the Partnership’s related party relationships and is required to approve any significant modifications to any existing related party transactions, as well as any new significant related party transactions. The Partnership will reimburse the General Partner for any costs incurred by the General Partner for certain expenses, which include costs for organizing the Partnership and costs incurred in the offering of the common units. The Partnership also agreed to pay the General Partner an advisory fee to manage the day-to-day affairs of the Partnership, including serving as an investment advisor and consultant in connection with the acquisition, development, operation and disposition of oil and gas properties and other assets of the Partnership. In accordance with the limited partnership agreement, subsequent to the Partnership’s first asset purchase, which occurred on February 1, 2018, the Partnership is required to pay quarterly an annual fee of 0.5% of the total gross equity proceeds raised by the Partnership in its best-efforts offering. Based upon the total gross equity proceeds as of September 30, 2019, the management fee that has been or will be paid to the General Partner for the three and nine months ended September 30, 2019 was approximately $265,000 and $718,000, respectively. The management fee of $265,000 for the three months ended September 30, 2019 has been accrued on the consolidated balance sheets in Due to related parties at September 30, 2019 and included in General and administrative expenses on the consolidated statements of operations. The management fee paid to the General Partner for the three and nine months ended September 30, 2018 was $159,000 and $344,000, respectively. The Partnership also will reimburse the General Partner for certain general and administrative costs. For the three and nine months ended September 30, 2019, approximately $87,000 and $281,000 of general and administrative costs were incurred by a member of the General Partner and have been or will be reimbursed by the Partnership. At September 30, 2019, approximately $87,000 was due to a member of the General Partner and is included in Due to related parties in the consolidated balance sheets. For the three and nine months ended September 30, 2018, approximately $84,000 and $267,000 of general and administrative costs were incurred by a member of the General Partner, which have been reimbursed by the Partnership. The Chief Executive Officer and Chief Financial Officer of the Partnership’s General Partner are also partners and the Chief Executive Officer and Chief Financial Officer of Energy 11 GP, LLC, the general partner of Energy 11, L.P. (“Energy 11”), a limited partnership that also invests in producing and non-producing oil and gas properties on-shore in the United States. Two additional partners of the general partner of Energy 11 are holders of the Class B Units of the Partnership’s General Partner. On January 31, 2018, the Partnership entered into a cost sharing agreement with Energy 11 that gives the Partnership access to Energy 11’s personnel and administrative resources, including accounting, asset management and other day-to-day management support. The shared day-to-day costs are split evenly between the two partnerships and any direct third-party costs are paid by the party receiving the services. The shared costs are based on actual costs incurred with no mark-up or profit to the Partnership. The agreement may be terminated at any time by either party upon 60 days written notice. The cost sharing agreement reduces the costs to the Partnership for accounting and asset management services provided through a member of the General Partner. In addition to certain accounting and asset management resources, the Partnership and Energy 11 share the rent expense for leased office space (leased from an affiliate of a member of the general partner of Energy 11) in Oklahoma City, Oklahoma along with the compensation due to the President of Energy 11’s general partner. For the three and nine months ended September 30, 2019, approximately $65,000 and $200,000, respectively, of expenses subject to the cost sharing agreement were incurred by the Partnership and have been or will be reimbursed to Energy 11. At September 30, 2019, approximately $65,000 was due from the Partnership to Energy 11 and is included in Due to related parties in the consolidated balance sheets. For the three and nine months ended September 30, 2018, approximately $64,000 and $175,000 of expenses subject to the cost sharing agreement were incurred by the Partnership and have been reimbursed to Energy 11.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Note 10. Subsequent Events In October 2019, the Partnership declared and paid $1.2 million, or $0.107397 per outstanding common unit, in distributions to its holders of common units. On October 24, 2019, the Partnership closed on the issuance of approximately 0.3 million common units through its best-efforts offering, representing gross proceeds to the Partnership of approximately $5.7 million and proceeds net of selling and marketing costs of approximately $5.4 million. On October 25, 2019, the General Partner terminated the Partnership’s best-efforts offering and deregistered the remaining 6.6 million common units that were not sold under the best-efforts offering. As of the close of business on October 24, 2019, the Partnership had completed the sale of approximately 11.0 million common units for total gross proceeds of $218.0 million and proceeds net of selling commissions and marketing expenses of $204.9 million.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the instructions for Article 10 of SEC Regulation S-X. Accordingly, they do not include all of the information required by generally accepted accounting principles (“GAAP”) in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Partnership’s audited December 31, 2018 financial statements included in its 2018 Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the twelve-month period ending December 31, 2019.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. The fair market value of cash and cash equivalents approximates their carrying value. Cash balances may at times exceed federal depository insurance limits.
Offering Costs, Policy [Policy Text Block]	Offering Costs On October 24, 2019, the Partnership completed its best-efforts offering of common units by the Managing Dealer, which received a selling commission and a marketing expense allowance based on proceeds of the units sold. Additionally, the Partnership incurred other offering costs including legal, accounting and reporting services. These offering costs have been recorded by the Partnership as a reduction of partners’ equity. As of September 30, 2019, the Partnership had completed the sale of 10.7 million common units for gross proceeds of approximately $212.3 million and proceeds net of offering costs of approximately $198.9 million.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with United States GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Earnings Per Share, Policy [Policy Text Block]	Net Income Per Common Unit Basic net income per common unit is computed as net income divided by the weighted average number of common units outstanding during the period. Diluted net income per common unit is calculated after giving effect to all potential common units that were dilutive and outstanding for the period. There were no common units with a dilutive effect for the three and nine months ended September 30, 2019 and 2018. As a result, basic and diluted outstanding common units were the same. The Incentive Distribution Rights, as defined below, are not included in net income per common unit until such time that it is probable Payout (as discussed in Note 8) will occur.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-02, Leases (Topic 842), which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets as right-of-use assets and lease liabilities. The Partnership concluded there is no material impact to the Partnership’s consolidated financial statements and related disclosures. The Partnership adopted this standard as of January 1, 2019.

Oil and Gas Investments (Tables

Oil and Gas Investments (Tables)	9 Months Ended
	Sep. 30, 2019
Oil and Gas Property [Abstract]
Business Acquisition, Pro Forma Information [Table Text Block]	The following unaudited pro forma financial information for the three and nine months ended September 30, 2018 have been prepared as if Acquisitions No. 1 and No. 2 of the Bakken Assets had occurred on January 1, 2018. The unaudited pro forma financial information was derived from the historical statements of operations of the Partnership and the historical financial statements of the sellers of the Bakken Assets. The unaudited pro forma financial information does not purport to be indicative of the results of operations that would have occurred had the acquisition of the Bakken Assets and related financings occurred on the basis assumed above, nor is such information indicative of the Partnership’s expected future results of operations. Three Months Ended Nine Months Ended (Unaudited) (Unaudited) Revenues $ 8,546,037 $ 33,877,933 Net income $ 4,620,739 $ 16,686,968

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	9 Months Ended
	Sep. 30, 2019
Asset Retirement Obligation Disclosure [Abstract]
Schedule of Asset Retirement Obligations [Table Text Block]	The changes in the aggregate ARO are as follows: 2019 Balance as of January 1, 2019 $ 383,255 Well additions 45,908 Accretion 15,170 Revisions 67,006 Balance as of September 30, 2019 $ 511,339

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	As required, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth by level within the fair value hierarchy the Partnership’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2019 and December 31, 2018. Fair Value Measurements at September 30, 2019 Quoted Prices in Significant Other Observable Inputs Significant Unobservable Inputs Commodity derivatives - current assets $ - $ 271,299 $ - Total $ - $ 271,299 $ - Fair Value Measurements at December 31, 2018 Quoted Prices in Significant Other Observable Inputs Significant Unobservable Inputs Commodity derivatives - current assets $ - $ 644,786 $ - Commodity derivatives - noncurrent assets - 234,831 - Total $ - $ 879,617 $ -

Risk Management (Tables)

Risk Management (Tables)	9 Months Ended
	Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments, Gain (Loss) [Table Text Block]	The following table presents settlements on matured derivative instruments and non-cash losses on open derivative instruments for the periods presented. Non-cash losses below represent the change in fair value of derivative instruments which were held at period-end. Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Gain (loss) on settlement of matured derivatives $ 9,600 $ - $ (79,388 ) $ - Gain (loss) on mark-to-market of derivatives 587,182 (57,306 ) (608,319 ) (57,306 ) Gain (loss) on derivatives $ 596,782 $ (57,306 ) $ (687,707 ) $ (57,306 )
Schedule of Derivative Instruments [Table Text Block]	The Partnership’s derivative contracts are costless collars, which are used to establish floor and ceiling prices on future anticipated oil and gas production and are settled monthly. While the use of these derivative instruments limits the downside risk of adverse price movement, they may also limit future revenues from favorable price movement. The Partnership did not pay or receive a premium related to the costless collar agreements. The following table reflects the open costless collar instruments as of September 30, 2019. Settlement Period Basis Product Volume Floor / Ceiling Prices ($) Fair Value of Asset / (Liability) at 10/01/19 - 06/30/20 NYMEX Oil (bbls) 166,000 45.00 / 61.20 $ 40,173 10/01/19 - 02/29/20 NYMEX Oil (bbls) 10,000 50.00 / 64.50 13,400 07/01/20 - 09/30/20 NYMEX Oil (bbls) 48,000 50.00 / 64.50 194,880 10/01/19 - 09/30/20 Henry Hub Gas (MMBtu) 120,000 2.50 / 3.05 22,846 $ 271,299

Partnership Organization (Detai

Partnership Organization (Details)	Dec. 30, 2016USD ($)	Oct. 31, 2017shares	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Jul. 25, 2017shares	Sep. 30, 2019	Sep. 30, 2019USD ($)shares	Oct. 24, 2019USD ($)shares
Partnership Organization (Details) [Line Items]
Limited Liability Company or Limited Partnership, Business, Formation State	Delaware
Partners' Capital Account, Contributions (in Dollars) | $	$ 1,000
Minimum Unit Offering, Shares (in Shares) | shares									1,315,790
Partners' Capital Account, Units, Sale of Units (in Shares) | shares		2,631,579									10,700,000
Proceeds from Issuance of Common Limited Partners Units (in Dollars) | $			$ 19,896,585	$ 18,952,872	$ 15,398,132	$ 24,942,967	$ 26,728,575	$ 10,184,032			$ 212,300,000
Best-Efforts Offering [Member]
Partnership Organization (Details) [Line Items]
Partners' Capital Account, Units, Sale of Units (in Shares) | shares												11,000,000
Proceeds from Issuance of Common Limited Partners Units (in Dollars) | $												$ 218,000,000
Bakken Assets [Member]
Partnership Organization (Details) [Line Items]
Gas and Oil Area Developed, Net										5.90%
Oil, Productive Well, Number of Wells, Net			321							321	321
Oil and Gas, Present Activity, Well in Process of Drilling			27							27	27
Number of Operators										14

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Details) - USD ($)	1 Months Ended	3 Months Ended						33 Months Ended
	Oct. 31, 2017	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019
Accounting Policies [Abstract]
Partners' Capital Account, Units, Sale of Units (in Shares)	2,631,579							10,700,000
Proceeds from Issuance of Common Limited Partners Units		$ 19,896,585	$ 18,952,872	$ 15,398,132	$ 24,942,967	$ 26,728,575	$ 10,184,032	$ 212,300,000
Proceeds, Net of Offering Costs, from Issuance of Common Limited Partners Units								$ 198,900,000

Oil and Gas Investments (Detail

Oil and Gas Investments (Details)	Dec. 28, 2018USD ($)shares	Aug. 31, 2018USD ($)	Feb. 01, 2018USD ($)	Sep. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2019USD ($)
Oil and Gas Investments (Details) [Line Items]
Proceeds from Issuance of Unsecured Debt						$ 0	$ 25,000,000
Proceeds from Related Party Debt						0	7,000,000
Asset Retirement Obligation, Liabilities Incurred						45,908
Maximum [Member] | Acquisition No. 1 [Member]
Oil and Gas Investments (Details) [Line Items]
Capital Expenditures Drilling and Completion of Wells						5,000,000
Minimum [Member] | Acquisition No. 1 [Member]
Oil and Gas Investments (Details) [Line Items]
Capital Expenditures Drilling and Completion of Wells						7,000,000
Bakken Assets [Member]
Oil and Gas Investments (Details) [Line Items]
Costs Incurred, Development Costs				$ 2,700,000
Deferred Costs						$ 1,400,000			$ 1,400,000
Gas and Oil Area Developed, Net						5.90%
Oil, Productive Well, Number of Wells, Net						321			321
Oil and Gas, Present Activity, Well in Process of Drilling						27			27
Bakken Assets [Member] | Affiliated Entity [Member]
Oil and Gas Investments (Details) [Line Items]
Advisory and Consulting Services Related Party					$ 5,300,000
Asset Disposal Fee, Related Party, Percentage						5.00%
Bakken Assets [Member] | Acquisition No. 1 [Member]
Oil and Gas Investments (Details) [Line Items]
Business Combination, Consideration Transferred			$ 87,500,000
Customary Business Combination Accounting Adjustments and Capitalized Acquisition Costs			2,900,000
Proceeds from Issuance of Unsecured Debt			25,000,000
Proceeds from Related Party Debt			7,000,000
Asset Retirement Obligation, Liabilities Incurred			$ 100,000
Costs Incurred, Development Costs						$ 28,200,000	$ 5,600,000
Oil and Gas, Present Activity, Well in Process of Drilling						27			27
Wells Drilled									145
Oil and Gas, Development Well Drilled, Net Productive, Number									118
Bakken Assets [Member] | Acquisition No. 1 [Member] | Affiliated Entity [Member]
Oil and Gas Investments (Details) [Line Items]
Acquisition Costs, Period Cost					$ 4,700,000
Bakken Assets [Member] | Acquisition No. 2 [Member]
Oil and Gas Investments (Details) [Line Items]
Business Combination, Consideration Transferred		$ 82,500,000
Asset Retirement Obligation, Liabilities Incurred		200,000
Proceeds from Lines of Credit		60,000,000
Acquisition Costs, Period Cost		$ 2,900,000
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets								$ 4,300,000
Bakken Assets [Member] | Acquisition No. 2 [Member] | Affiliated Entity [Member]
Oil and Gas Investments (Details) [Line Items]
Acquisition Costs, Period Cost				$ 4,100,000
Capital Unit, Class B [Member]
Oil and Gas Investments (Details) [Line Items]
In connection with termination of agreements with REI, the General Partner issued 500 of its non-voting Class B Units to entities controlled by related parties (in Shares) | shares	500
Payment made by entities controlled by related parties to General Partner for non-voting Class B Units	$ 250
In connection with termination of agreements with REI, entities controlled by related parties have acquired a non-voting interest in the General Partner	50.00%

Oil and Gas Investments (Deta_2

Oil and Gas Investments (Details) - Business Acquisition, Pro Forma Information - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Business Acquisition, Pro Forma Information [Abstract]
Revenues	$ 8,546,037	$ 33,877,933
Net income	$ 4,620,739	$ 16,686,968

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) - Schedule of Asset Retirement Obligations	9 Months Ended
	Sep. 30, 2019USD ($)
Schedule of Asset Retirement Obligations [Abstract]
Balance as of January 1, 2019	$ 383,255
Well additions	45,908
Accretion	15,170
Revisions	67,006
Balance as of September 30, 2019	$ 511,339

Debt (Details)

Debt (Details) - USD ($)	Aug. 31, 2018	Jan. 16, 2018	Sep. 30, 2019	Aug. 31, 2021
Debt (Details) [Line Items]
Line of Credit Facility, Current Borrowing Capacity			$ 40,000,000
Debt, Risk Management, Description	Under the amendment the Partnership is required to maintain a risk management program to manage the commodity price risk on the Partnership’s future oil and natural gas production if the Partnership’s borrowing base becomes equal to or greater than 50% of the Partnership’s producing reserves as calculated by its independent petroleum engineer. If this condition is met, the risk management program must cover at least 50% of the Partnership’s projected total production of oil and natural gas for a rolling 18-month period. At September 30, 2019, the Partnership’s borrowing base of $40 million does not exceed 50% of its estimated producing reserves; therefore, the Partnership is not required to maintain a risk management program. The Loan Agreement, as amended, does permit the Partnership to enter into derivative contracts with a counterparty at its own discretion so long as the term does not exceed 36 months and does not cover more than 80% of the Partnership’s projected oil and gas volumes.
Revolving Credit Facility [Member]
Debt (Details) [Line Items]
Debt Instrument, Face Amount	$ 60,000,000
Line of Credit Facility, Borrowing Capacity, Description	The commitment amount may be increased up to $100 million with Lender approval.
Line of Credit Facility, Commitment Fee Percentage	0.50%
Line of Credit Facility, Commitment Fee Amount	$ 300,000
Line of Credit Facility, Commitment Fee in Excess of Revolver Amount, Percentage	0.50%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.50%
Debt Instrument, Maturity Date	Aug. 31, 2021
Line of Credit Facility, Maximum Borrowing Capacity			$ 40,000,000
Line of Credit Facility, Collateral	The Credit Facility is secured by a mortgage and first lien position on at least 90% of the Partnership’s producing wells.
Line of Credit Facility, Covenant Terms	The Credit Facility contains mandatory prepayment requirements (including those described above), customary affirmative and negative covenants and events of default. The financial covenants as defined in the Loan Agreement include:
Line of Credit Facility, Covenant Compliance			The Partnership was in compliance with the applicable covenants at September 30, 2019.
Notes Payable to Banks [Member]
Debt (Details) [Line Items]
Debt Instrument, Face Amount		$ 25,000,000
Guarantor Obligations, Origin and Purpose		Glade M. Knight and David S. McKenney, the General Partner’s Chief Executive Officer and Chief Financial Officer, respectively, had guaranteed repayment of the Term Loan and did not receive any consideration in exchange for providing this guarantee.
Notes Payable to Banks [Member]
Debt (Details) [Line Items]
Debt Instrument, Payment Terms				Under the terms of the Loan Agreement, the Partnership may make voluntary prepayments, in whole or in part, at any time with no penalty.
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Minimum [Member]
Debt (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.75%
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Maximum [Member]
Debt (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.75%
London Interbank Offered Rate (LIBOR) [Member] | Notes Payable to Banks [Member]
Debt (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.00%

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Inputs, Level 1 [Member]
Fair Value of Financial Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Commodity derivatives - current assets	$ 0	$ 0
Commodity derivatives - noncurrent assets		0
Total	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value of Financial Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Commodity derivatives - current assets	271,299	644,786
Commodity derivatives - noncurrent assets		234,831
Total	271,299	879,617
Fair Value, Inputs, Level 3 [Member]
Fair Value of Financial Instruments (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Commodity derivatives - current assets	0	0
Commodity derivatives - noncurrent assets		0
Total	$ 0	$ 0

Risk Management (Details)

Risk Management (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Discussion of Price Risk Derivative Risk Management Policy			the Partnership entered into derivative contracts, with two different counterparties, through September 2020 to manage the commodity price risk on a portion of the Partnership’s anticipated future oil and gas production it will produce and sell and to reduce the effect of volatility in commodity price changes to provide a base level of cash flow from operations.
Number of Different Counterparties			2
Derivative Asset					$ 900,000
Derivative, Gain (Loss) on Derivative, Net	$ 596,782	$ (57,306)	$ (687,707)	$ (57,306)
Unrealized Gain (Loss) on Derivatives	587,182	$ (57,306)	(608,319)	$ (57,306)
Derivative, Gain on Derivative	$ 9,600
Loss on settlement of matured derivatives			$ 100,000

Risk Management (Details) - Der

Risk Management (Details) - Derivative Instruments, Gain (Loss) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative Instruments, Gain (Loss) [Abstract]
Gain (loss) on settlement of matured derivatives	$ 9,600	$ 0	$ (79,388)	$ 0
Gain (loss) on mark-to-market of derivatives	587,182	(57,306)	(608,319)	(57,306)
Gain (loss) on derivatives	$ 596,782	$ (57,306)	$ (687,707)	$ (57,306)

Risk Management (Details) - Sch

Risk Management (Details) - Schedule of Derivative Instruments	9 Months Ended
	Sep. 30, 2019USD ($)$ / itembbl
Derivative [Line Items]
Fair Value of Asset / (Liability) | $	$ 271,299
Price Risk Derivative [Member] | Costless Collar Agreements #1 [Member]
Derivative [Line Items]
Basis	NYMEX
Product	Oil (bbls)
Volume | bbl	166,000
Floor Prices	45
Ceiling Prices	61.20
Fair Value of Asset / (Liability) | $	$ 40,173
Price Risk Derivative [Member] | Costless Collar Agreements #2 [Member[
Derivative [Line Items]
Basis	NYMEX
Product	Oil (bbls)
Volume | bbl	10,000
Floor Prices	50
Ceiling Prices	64.50
Fair Value of Asset / (Liability) | $	$ 13,400
Price Risk Derivative [Member] | Costless Collar Agreements #3 [Member]
Derivative [Line Items]
Basis	NYMEX
Product	Oil (bbls)
Volume | bbl	48,000
Floor Prices	50
Ceiling Prices	64.50
Fair Value of Asset / (Liability) | $	$ 194,880
Price Risk Derivative [Member] | Costless Collar Agreements #4 [Member]
Derivative [Line Items]
Basis	Henry Hub
Product	Gas (MMBtu)
Volume | bbl	120,000
Floor Prices	2.50
Ceiling Prices	3.05
Fair Value of Asset / (Liability) | $	$ 22,846

Capital Contribution and Part_2

Capital Contribution and Partners' Equity (Details) - USD ($)	Dec. 30, 2016	Oct. 31, 2017	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Jul. 25, 2017	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2019	Oct. 24, 2019
Capital Contribution and Partners' Equity (Details) [Line Items]
Partners' Capital Account, Contributions	$ 1,000
Partners' Capital Account, Return of Contribution Upon Minimum Offering												$ 990
Minimum Unit Offering, Shares (in Shares)									1,315,790
Partners Capital Account, Units Sold, Price Per Unit (in Dollars per share)		$ 19							$ 19
Partners' Capital Account, Units, Sale of Units (in Shares)		2,631,579											10,700,000
Proceeds from Issuance of Common Limited Partners Units			$ 19,896,585	$ 18,952,872	$ 15,398,132	$ 24,942,967	$ 26,728,575	$ 10,184,032					$ 212,300,000
Proceeds, Net of Offering Costs, from Issuance of Common Limited Partners Units													$ 198,900,000
Partners' Capital Account, Description of Units Sold										Under the agreement with the Managing Dealer, the Managing Dealer received a total of 6% in selling commissions and a marketing expense allowance based on gross proceeds of the common units sold. The Managing Dealer also has Dealer Manager Incentive Fees (defined below) where the Managing Dealer could receive distributions up to an additional 4% of gross proceeds of the common units sold in the Partnership’s best-efforts offering as outlined in the prospectus based on the performance of the Partnership.
Managing Dealer, Selling Commissions, Percentage										6.00%
Managing Dealer, Maximum Contingent Incentive Fee on Gross Proceeds, Percentage										4.00%
Managing Dealer, Maximum Contingent Incentive Fee on Gross Proceeds										$ 8,700,000
Key Provisions of Operating or Partnership Agreement, Description										The Agreement of Limited Partnership of the Partnership (the “Partnership Agreement”) provides that “Payout”, which is defined below, occurs on the day when the aggregate amount distributed with respect to each of the common units equals $20.00 plus the Payout Accrual. The Partnership Agreement defines “Payout Accrual” as 7% per annum simple interest accrued monthly until paid on the Net Investment Amount outstanding from time to time. The Partnership Agreement defines Net Investment Amount initially as $20.00 per common unit, regardless of the amount paid for the common unit. If at any time the Partnership distributes to holders of common units more than the Payout Accrual, the amount the Partnership distributes in excess of the Payout Accrual will reduce the Net Investment Amount. All distributions made by the Partnership after Payout, which may include all or a portion of the proceeds of the sale of all or substantially all of the Partnership’s assets, will be made as follows:  ● First, (i) to the Record Holders of the Incentive Distribution Rights, 30%; (ii) to the Managing Dealer, the “Dealer Manager Incentive Fees”, 30%, until such time as the Managing Dealer receives 4% of the gross proceeds of the common units sold; and (iii) to the Record Holders of outstanding common units, 40%, pro rata based on their percentage interest.   ● Thereafter, (i) to the Record Holders of the Incentive Distribution Rights, 60%; and (ii) to the Record Holders of outstanding common units, 40%, pro rata based on their percentage interest.  All items of income, gain, loss and deduction will be allocated to each Partner’s capital account in a manner generally consistent with the distribution procedures outlined above.
Distribution Made to Limited Partner, Distributions Paid, Per Unit (in Dollars per share)			$ 0.349041			$ 0.349041				$ 1.047123	$ 1.047123
Distribution Made to Limited Partner, Cash Distributions Paid			$ 3,501,784	$ 3,131,359	$ 2,833,574	$ 1,955,420	$ 1,440,608	$ 1,191,216		$ 9,466,717	$ 4,587,244
Best-Efforts Offering [Member]
Capital Contribution and Partners' Equity (Details) [Line Items]
Partners' Capital Account, Units, Sale of Units (in Shares)														11,000,000
Proceeds from Issuance of Common Limited Partners Units														$ 218,000,000
Proceeds, Net of Offering Costs, from Issuance of Common Limited Partners Units														$ 204,900,000

Related Parties (Details)

Related Parties (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Related Parties (Details) [Line Items]
Related Party Transaction, Description of Transaction			subsequent to the Partnership’s first asset purchase, which occurred on February 1, 2018, the Partnership is required to pay quarterly an annual fee of 0.5% of the total gross equity proceeds raised by the Partnership in its best-efforts offering.
Due to Related Parties, Current	$ 417,786		$ 417,786		$ 212,117
General Partner [Member]
Related Parties (Details) [Line Items]
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party	87,000	$ 84,000	281,000	$ 267,000
Due to Related Parties, Current	87,000		87,000
Energy 11 [Member]
Related Parties (Details) [Line Items]
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party	65,000	64,000	200,000	175,000
Due to Related Parties, Current	65,000		65,000
Management Fee [Member] | General Partner [Member]
Related Parties (Details) [Line Items]
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party	265,000	$ 159,000	718,000	$ 344,000
Due to Related Parties, Current	$ 265,000		$ 265,000

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended		34 Months Ended
	Oct. 31, 2019	Oct. 24, 2019	Oct. 24, 2019
Subsequent Events (Details) [Line Items]
Distribution Made to Limited Partner, Cash Distributions Paid	$ 1.2
Distribution Made to Limited Partner, Distributions Paid, Per Unit (in Dollars per share)	$ 0.107397
Best-Efforts Offering [Member]
Subsequent Events (Details) [Line Items]
Partners' Capital Account, Units, Sale of Units (in Shares)		0.3	11
Proceeds from Issuance of Common Limited Partners Units		$ 5.7	$ 218
Proceeds, Net of Selling Commissions and Marketing Expenses, from Issuance of Common Limited Partners Units		$ 5.4
Partners Capital Units Deregistered (in Shares)		6.6
Proceeds, Net of Offering Costs, from Issuance of Common Limited Partners Units			$ 204.9