Energy Resources 12 10-Q 12 Nov 20 2020 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 12, 2020
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, 2020
Document Fiscal Year Focus	2020
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
Title of 12(b) Security	None
Entity Interactive Data Current	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 7,013,659	$ 14,834,452
Oil, natural gas and natural gas liquids revenue receivable	3,190,722	8,186,604
Total Current Assets	10,204,381	23,021,056
Oil and natural gas properties, successful efforts method, net of accumulated depreciation, depletion and amortization of $32,158,500 and $21,955,397, respectively	193,797,796	197,498,771
Total Assets	204,002,177	220,519,827
Liabilities
Accounts payable and accrued expenses	4,496,584	8,835,537
Due to related parties	437,351	217,209
Derivative liability	0	207,327
Total Current Liabilities	4,933,935	9,260,073
Asset retirement obligations	617,903	570,795
Total Liabilities	5,551,838	9,830,868
Partners’ Equity
Limited partners' interest (11,031,579 common units issued and outstanding, respectively)	198,450,554	210,689,174
General partner's interest	(215)	(215)
Total Partners’ Equity	198,450,339	210,688,959
Total Liabilities and Partners’ Equity	$ 204,002,177	$ 220,519,827

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Oil and natural gas properties, successful efforts method, accumulated depreciation, depletion and amortization (in Dollars)	$ 32,158,500	$ 21,955,397
Limited partners' interest, common units issued	11,031,579	11,031,579
Limited partners' interest, common units outstanding	11,031,579	11,031,579

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues
Oil	$ 7,231,935	$ 15,408,425	$ 21,329,768	$ 44,195,615
Natural gas	337,379	385,909	1,012,463	1,223,455
Natural gas liquids	334,125	89,550	683,535	658,758
Total revenue	7,903,439	15,883,884	23,025,766	46,077,828
Operating costs and expenses
Production expenses	3,353,888	4,421,808	11,093,766	11,100,065
Production taxes	666,258	1,433,440	1,956,851	4,161,112
General and administrative expenses	521,267	471,647	1,844,168	1,752,857
Depreciation, depletion, amortization and accretion	3,438,939	4,186,249	10,220,331	11,255,146
Total operating costs and expenses	7,980,352	10,513,144	25,115,116	28,269,180
Operating income (loss)	(76,913)	5,370,740	(2,089,350)	17,808,648
Interest income (expense), net	254	(286,865)	29,729	(1,521,252)
Gain (loss) on derivatives	0	596,782	1,372,421	(687,707)
Total other income (expense), net	254	309,917	1,402,150	(2,208,959)
Net income (loss)	$ (76,659)	$ 5,680,657	$ (687,200)	$ 15,599,689
Basic and diluted net income (loss) per common unit (in Dollars per share)	$ (0.01)	$ 0.56	$ (0.06)	$ 1.72
Weighted average common units outstanding - basic and diluted (in Shares)	11,031,579	10,074,857	11,031,579	9,083,003

Consolidated Statements of Part

Consolidated Statements of Partners' Equity - USD ($)	Total	Limited Partner [Member]	General Partner [Member]
Balance at Dec. 31, 2018	$ 146,001,144	$ 146,001,359	$ (215)
Balance (in Shares) at Dec. 31, 2018		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
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
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
Balance at Dec. 31, 2019	$ 210,688,959	$ 210,689,174	(215)
Balance (in Shares) at Dec. 31, 2019	11,031,579	11,031,579
Distributions declared and paid to common units	$ (3,850,473)	$ (3,850,473)
Net income (loss)	2,214,315	2,214,315
Balance at Mar. 31, 2020	209,052,801	$ 209,053,016	(215)
Balance (in Shares) at Mar. 31, 2020		11,031,579
Balance at Dec. 31, 2019	$ 210,688,959	$ 210,689,174	(215)
Balance (in Shares) at Dec. 31, 2019	11,031,579	11,031,579
Distributions declared and paid to common units	$ (11,551,420)
Net income (loss)	(687,200)
Balance at Sep. 30, 2020	$ 198,450,339	$ 198,450,554	(215)
Balance (in Shares) at Sep. 30, 2020	11,031,579	11,031,579
Balance at Mar. 31, 2020	$ 209,052,801	$ 209,053,016	(215)
Balance (in Shares) at Mar. 31, 2020		11,031,579
Distributions declared and paid to common units	(3,850,473)	$ (3,850,473)
Net income (loss)	(2,824,856)	(2,824,856)
Balance at Jun. 30, 2020	202,377,472	$ 202,377,687	(215)
Balance (in Shares) at Jun. 30, 2020		11,031,579
Distributions declared and paid to common units	(3,850,474)	$ (3,850,474)
Net income (loss)	(76,659)	(76,659)
Balance at Sep. 30, 2020	$ 198,450,339	$ 198,450,554	$ (215)
Balance (in Shares) at Sep. 30, 2020	11,031,579	11,031,579

Consolidated Statements of Pa_2

Consolidated Statements of Partners' Equity (Parentheticals) - $ / shares	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019
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, 2020	Sep. 30, 2019
Cash flow from operating activities:
Net income (loss)	$ (687,200)	$ 15,599,689
Adjustments to reconcile net income to cash from operating activities:
Depreciation, depletion, amortization and accretion	10,220,331	11,255,146
(Gain) loss on mark-to-market of derivatives	(207,327)	608,319
Other non-cash expenses, net	0	425,515
Changes in operating assets and liabilities:
Oil, natural gas and natural gas liquids revenue receivable	4,995,882	(2,956,486)
Due to related parties	220,142	205,669
Accounts payable and accrued expenses	(1,250,982)	1,162,344
Net cash flow provided by operating activities	13,290,846	26,300,196
Cash flow from investing activities:
Cash paid for acquisition of oil and natural gas properties	(110,073)	(1,367,256)
Additions to oil and natural gas properties	(9,450,146)	(29,402,673)
Net cash flow used in investing activities	(9,560,219)	(30,769,929)
Cash flow from financing activities:
Payments on revolving credit facility	0	(39,500,000)
Net proceeds related to issuance of common units	0	54,243,127
Distributions paid to limited partners	(11,551,420)	(9,466,717)
Net cash flow (used in) provided by financing activities	(11,551,420)	5,276,410
Increase (decrease) in cash and cash equivalents	(7,820,793)	806,677
Cash and cash equivalents, beginning of period	14,834,452	9,682,402
Cash and cash equivalents, end of period	7,013,659	10,489,079
Interest paid	0	1,081,803
Supplemental non-cash information:
Accrued capital expenditures related to additions to oil and natural gas properties	$ 2,861,525	$ 9,071,334

Partnership Organization

Partnership Organization	9 Months Ended
	Sep. 30, 2020
Accounting Policies [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”) is a Delaware limited partnership formed to acquire producing and non-producing oil and natural gas properties onshore in the United States and to develop those properties. The initial capitalization of the Partnership of $1,000 occurred on December 30, 2016. The Partnership completed its best-efforts offering in October 2019 with a total of approximately 11.0 million common units sold for gross proceeds of $218.0 million and proceeds net of offering costs of $204.3 million. As of September 30, 2020, the Partnership owned an approximate 5.7% non-operated working interest in 354 producing wells, predominantly in McKenzie, Dunn, McLean and Mountrail counties of North Dakota (collectively, the “Bakken Assets”). The Partnership also owns an estimated approximate 4.0% non-operated working interest in 26 wells in various stages of the drilling and completion process, and possible 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. The Partnership’s fiscal year ends on December 31. COVID-19, Current Oil Demand, Pricing and Production The outbreak of a novel coronavirus (“COVID-19”) in China in December 2019 spread worldwide, forcing governments around the world to take drastic measures to halt the outbreak. These measures included significant restrictions on travel, forced quarantines, stay-at-home requirements and the closure of businesses in many industries, creating extreme volatility in capital markets and the global economy. Because of COVID-19’s impact to the global economy, demand for oil, natural gas and other hydrocarbons substantially declined in March and April 2020 and has remained depressed through the third quarter of 2020. Demand for oil and natural gas is not anticipated to return to pre-COVID-19 levels during 2020, and the outlook for demand for oil and natural gas in 2021 is uncertain. In addition to the outbreak of COVID-19, Saudi Arabia and Russia, two of the largest worldwide producers of crude oil, engaged in a price war during March and April 2020, which ultimately led to excess crude oil and natural gas inventory and congested supply chain channels. These factors led to oil prices falling to 20-year lows in April 2020. Although NYMEX oil prices have stabilized around $40 per barrel since June 2020, significant uncertainty remains as to when commodity prices will return to pre-COVID-19 levels. In response to lower commodity prices and reduced demand, operators within the United States altered drilling programs and the related forecasted capital expenditures for those programs during the second quarter of 2020. Certain operators of the Bakken Assets temporarily curtailed daily production, shut-in producing wells and/or pursued other cost-cutting measures in April and May 2020 due to the inability to produce, process and sell oil and natural gas at economical prices. While operators of the Bakken Assets have since returned significant inventory of existing wells to production, reduced sold production volumes and low commodity prices have had and may continue to have a negative effect on the Partnership’s revenue and operating results. In addition, new investment in the Partnership’s undrilled acreage is expected to be limited until commodity prices and market supply and demand imbalances become more favorable.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
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, 2019 financial statements included in its 2019 Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the twelve-month period ending December 31, 2020. 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. 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. Revenue Recognition The Partnership is bound by a joint operating agreement with the operator of each of its producing wells. Under the joint operating agreement, the Partnership’s proportionate share of production is marketed at the discretion of the operators. The Partnership typically satisfies its performance obligations upon transfer of control of its products and records the related revenue in the month production is delivered to the purchaser. As the Partnership does not operate its properties, it receives actual oil, natural gas, and NGL sales volumes and prices, net of costs incurred by the operators, two to three months after the date production is delivered by the operator. At the end of each month when the performance obligation is satisfied, the variable consideration can be reasonably estimated and amounts due from the Partnership’s operators are accrued in Oil, natural gas and natural gas liquids revenue receivable in the consolidated balance sheets. Variances between the Partnership’s estimated revenue and actual payments are recorded in the month the payment is received; differences have been and are insignificant. As a result, the variable consideration is not constrained. The Partnership has elected to utilize the practical expedient in ASC 606 that states the Partnership is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Each delivery of product represents a separate performance obligation; therefore, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. Virtually all of the Partnership’s contracts’ pricing provisions are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality of oil, natural gas and natural gas liquids and prevailing supply and demand conditions, so that prices fluctuate to remain competitive with other available suppliers. Net Income (Loss) Per Common Unit Basic net income (loss) per common unit is computed as net income (loss) divided by the weighted average number of common units outstanding during the period. Diluted net income (loss) 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, 2020 and 2019. 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 6) will occur. Fair Value of 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.

Oil and Gas Investments

Oil and Gas Investments	9 Months Ended
	Sep. 30, 2020
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 first purchase (“Acquisition No. 1”) in the Bakken Assets for approximately $90.5 million, including all closing costs and assumed liabilities. On August 31, 2018, the Partnership completed its second purchase of an additional non-operated working interest in the Bakken Assets for approximately $81.3 million, including all closing costs and assumed liabilities. As of September 30, 2020, the Partnership’s ownership of the Bakken Assets consisted of an approximate 5.7% non-operated working interest in 354 producing wells, and an estimated approximate 4.0% non-operated working interest in 26 wells in various stages of the drilling and completion process. From September 1, 2017, the effective date of Acquisition No. 1, to September 30, 2020, the Partnership has elected to participate in the drilling of 180 wells, of which 152 have been completed, 26 wells are in various stages of completion and two wells have not yet commenced drilling at September 30, 2020. The Partnership incurred approximately $6.5 million and $28.2 million, respectively, in capital drilling and completion costs for the nine months ended September 30, 2020 and 2019. The Partnership anticipates approximately $2 to $4 million of capital expenditures will be incurred during the fourth quarter of 2020, and the Partnership’s estimated share of capital expenditures to complete the two wells that have not yet commenced drilling is approximately $0.1 million. However, estimated capital expenditures to complete these 28 wells could be significantly different from amounts actually invested, and the timing of these expenditures are difficult to estimate due to the supply, demand and market price volatility discussed in Note 1. Partnership Organization. Evaluation for Potential Impairment of Oil and Natural Gas Investments The Partnership assesses its proved oil and natural gas properties for possible impairment whenever events or circumstances indicate that the recorded carrying value of its oil and gas properties may not be recoverable. The Partnership considered the declines in the current and forecasted operating cash flows resulting from COVID-19 and sustained lower commodity prices to be potential indicators of impairment and, as a result, performed a test of recoverability for the Bakken Assets. Estimated future net cash flows calculated in the recoverability test were based on existing reserves, forecasted production and cost information and management’s outlook of future commodity prices. The underlying commodity prices used in the determination of the Partnership’s estimated future net cash flows were based on forward strip prices as of October 1, 2020, adjusted by field or area for estimated location and quality differentials, as well as other trends and factors that management believed will impact realizable prices. Future operating costs estimates were based on actual historical costs of the Bakken Assets. A different set of assumptions could produce different results. The Partnership’s recoverability analyses did not identify any impairment losses as of September 30, 2020. If current macro-economic conditions continue or worsen, the carrying value of the Partnership’s oil and natural gas properties may not be recoverable and impairment losses could be recorded in future periods.

Asset Retirement Obligations

Asset Retirement Obligations	9 Months Ended
	Sep. 30, 2020
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: 2020 2019 Balance at January 1 $ 570,795 $ 383,255 Well additions 29,880 45,908 Accretion 17,228 15,170 Revisions - 67,006 Balance at September 30 $ 617,903 $ 511,339

Risk Management

Risk Management	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure [Text Block]	Note 5. Risk Management Participation in the oil and gas industry exposes the Partnership to risks associated with potentially volatile changes in energy commodity prices, and the Partnership’s future earnings are subject to these risks. Therefore, the Partnership periodically enters into derivative contracts 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. The Partnership’s derivative instruments that have been settled during 2020 were costless collar contracts, which establish floor and ceiling prices on future anticipated oil production. While the use of costless collars 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 contracts were settled monthly. The Partnership did not designate its derivative instruments as hedges for accounting purposes and did not enter into such instruments for speculative trading purposes. As a result, when derivatives did not qualify or were not designated as a hedge, the changes in the fair value were recognized on the Partnership’s consolidated statements of operations as a gain or loss on derivative instruments. The following table presents settlements on matured derivative instruments and non-cash gains or losses on derivative instruments for the three and nine months ended September 30, 2020 and 2019. The settlement gains or losses on matured derivatives reflect realized gains or losses on derivative contracts which matured during the period, calculated as the difference between the contract price and the market settlement price. Non-cash mark-to-market gains or losses below represent the change in fair value of derivative instruments during the period. The Partnership did not enter into any new contracts during the third quarter of 2020 and had no outstanding contracts at September 30, 2020. Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Settlement gain (loss) on matured derivatives $ - $ 9,600 $ 1,165,094 $ (79,388 ) Gain (loss) on mark-to-market of derivatives - 587,182 207,327 (608,319 ) Gain (loss) on derivatives $ - $ 596,782 $ 1,372,421 $ (687,707 )

Capital Contribution and Partne

Capital Contribution and Partners' Equity	9 Months Ended
	Sep. 30, 2020
Partners' Capital Notes [Abstract]
Partners' Capital Notes Disclosure [Text Block]	Note 6. 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 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. As of the conclusion of the offering, 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 offering costs of $204.3 million. Under the agreement with David Lerner Associates, Inc. (the “Managing Dealer”), the Managing Dealer receives 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 in the best-efforts offering, 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 or 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, 2020, the Partnership paid distributions of $0.349041 and $1.047123 per common unit, or $3.9 million and $11.6 million, respectively. 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.

Related Parties

Related Parties	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	Note 7. 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, costs incurred in the offering of the common units and general and administrative costs. 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 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. The management fee that has been or will be paid to the General Partner for the three and nine months ended September 30, 2020 was approximately $273,000 and $818,000, respectively. The management fee of $273,000 for the three months ended September 30, 2020 has been accrued on the consolidated balance sheets in Due to related parties at September 30, 2020 and included in General and administrative expenses on the consolidated statements of operations. The management fee paid the General Partner for the three and nine months ended September 30, 2019 was approximately $265,000 and $718,000, respectively, and is included in General and administrative expenses on the consolidated statements of operations. The Partnership also will reimburse the General Partner for certain general and administrative costs. For the three and nine months ended September 30, 2020, approximately $101,000 and $290,000 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, 2020, approximately $101,000 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, 2019, approximately $87,000 and $281,000 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. 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, 2020, approximately $64,000 and $204,000, 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, 2020, approximately $64,000 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, 2019, approximately $65,000 and $200,000, respectively, of expenses subject to the cost sharing agreement were incurred by the Partnership and reimbursed to Energy 11.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Note 8. Subsequent Events In October 2020, the Partnership declared and paid $1.5 million, or $0.134247 per outstanding common unit, in distributions to its holders of common units. In October 2020, the Partnership provided 60-day written notice to Energy 11 of the Partnership’s intention to terminate the cost sharing agreement between the Partnership and ER12. The cost sharing agreement will terminate on December 31, 2020. The Partnership is working with the General Partner to ensure the Partnership has the appropriate resources effective January 1, 2021.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	9 Months Ended
	Sep. 30, 2020
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, 2019 financial statements included in its 2019 Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the twelve-month period ending December 31, 2020.
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.
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.
Revenue [Policy Text Block]	Revenue Recognition The Partnership is bound by a joint operating agreement with the operator of each of its producing wells. Under the joint operating agreement, the Partnership’s proportionate share of production is marketed at the discretion of the operators. The Partnership typically satisfies its performance obligations upon transfer of control of its products and records the related revenue in the month production is delivered to the purchaser. As the Partnership does not operate its properties, it receives actual oil, natural gas, and NGL sales volumes and prices, net of costs incurred by the operators, two to three months after the date production is delivered by the operator. At the end of each month when the performance obligation is satisfied, the variable consideration can be reasonably estimated and amounts due from the Partnership’s operators are accrued in Oil, natural gas and natural gas liquids revenue receivable in the consolidated balance sheets. Variances between the Partnership’s estimated revenue and actual payments are recorded in the month the payment is received; differences have been and are insignificant. As a result, the variable consideration is not constrained. The Partnership has elected to utilize the practical expedient in ASC 606 that states the Partnership is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Each delivery of product represents a separate performance obligation; therefore, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. Virtually all of the Partnership’s contracts’ pricing provisions are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality of oil, natural gas and natural gas liquids and prevailing supply and demand conditions, so that prices fluctuate to remain competitive with other available suppliers.
Earnings Per Share, Policy [Policy Text Block]	Net Income (Loss) Per Common Unit Basic net income (loss) per common unit is computed as net income (loss) divided by the weighted average number of common units outstanding during the period. Diluted net income (loss) 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, 2020 and 2019. 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 6) will occur.
Fair Value Measurement, Policy [Policy Text Block]	Fair Value of 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.

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	9 Months Ended
	Sep. 30, 2020
Asset Retirement Obligation Disclosure [Abstract]
Schedule of Asset Retirement Obligations [Table Text Block]	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: 2020 2019 Balance at January 1 $ 570,795 $ 383,255 Well additions 29,880 45,908 Accretion 17,228 15,170 Revisions - 67,006 Balance at September 30 $ 617,903 $ 511,339

Risk Management (Tables)

Risk Management (Tables)	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments, Gain (Loss) [Table Text Block]	The Partnership’s derivative instruments that have been settled during 2020 were costless collar contracts, which establish floor and ceiling prices on future anticipated oil production. While the use of costless collars 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 contracts were settled monthly. The Partnership did not designate its derivative instruments as hedges for accounting purposes and did not enter into such instruments for speculative trading purposes. As a result, when derivatives did not qualify or were not designated as a hedge, the changes in the fair value were recognized on the Partnership’s consolidated statements of operations as a gain or loss on derivative instruments. The following table presents settlements on matured derivative instruments and non-cash gains or losses on derivative instruments for the three and nine months ended September 30, 2020 and 2019. The settlement gains or losses on matured derivatives reflect realized gains or losses on derivative contracts which matured during the period, calculated as the difference between the contract price and the market settlement price. Non-cash mark-to-market gains or losses below represent the change in fair value of derivative instruments during the period. The Partnership did not enter into any new contracts during the third quarter of 2020 and had no outstanding contracts at September 30, 2020. Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Settlement gain (loss) on matured derivatives $ - $ 9,600 $ 1,165,094 $ (79,388 ) Gain (loss) on mark-to-market of derivatives - 587,182 207,327 (608,319 ) Gain (loss) on derivatives $ - $ 596,782 $ 1,372,421 $ (687,707 )

Partnership Organization (Detai

Partnership Organization (Details) shares in Millions	Dec. 30, 2016USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Sep. 30, 2020	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
Proceeds from Issuance of Common Limited Partners Units (in Dollars)		$ 19,896,585	$ 18,952,872	$ 15,398,132
Bakken Assets [Member]
Partnership Organization (Details) [Line Items]
Number of Operators					14
Bakken Assets [Member] | Non-operated Completed Wells [Member]
Partnership Organization (Details) [Line Items]
Gas and Oil Area Developed, Net					5.70%
Oil, Productive Well, Number of Wells, Net					354
Bakken Assets [Member] | Non-operated Wells in the Process of Drilling [Member]
Partnership Organization (Details) [Line Items]
Gas and Oil Area Developed, Net					4.00%
Oil and Gas, Present Activity, Well in Process of Drilling					26
Best-Efforts Offering [Member]
Partnership Organization (Details) [Line Items]
Partners' Capital Account, Units, Sale of Units (in Shares) | shares						11
Proceeds from Issuance of Common Limited Partners Units (in Dollars)						$ 218,000,000
Proceeds, Net of Offering Costs, from Issuance of Common Limited Partners Units (in Dollars)						$ 204,300,000

Oil and Gas Investments (Detail

Oil and Gas Investments (Details) - Bakken Assets [Member] $ in Millions	Aug. 31, 2018USD ($)	Feb. 01, 2018USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020
Non-operated Completed Wells [Member]
Oil and Gas Investments (Details) [Line Items]
Gas and Oil Area Developed, Net			5.70%
Oil, Productive Well, Number of Wells, Net			354		354
Non-operated Wells in the Process of Drilling [Member]
Oil and Gas Investments (Details) [Line Items]
Gas and Oil Area Developed, Net			4.00%
Oil, Productive Well, Number of Wells, Net			26		26
Acquisition No. 1 [Member]
Oil and Gas Investments (Details) [Line Items]
Business Combination, Consideration Transferred (in Dollars)		$ 90.5
Wells Drilled					180
Oil and Gas, Development Well Drilled, Net Productive, Number					152
Oil and Gas, Present Activity, Well in Process of Drilling			26		26
Costs Incurred, Development Costs (in Dollars)			$ 6.5	$ 28.2
Number of Wells not yet Completed			28
Acquisition No. 1 [Member] | Minimum [Member]
Oil and Gas Investments (Details) [Line Items]
Capital Expenditures Drilling and Completion of Wells (in Dollars)			$ 2
Acquisition No. 1 [Member] | Maximum [Member]
Oil and Gas Investments (Details) [Line Items]
Capital Expenditures Drilling and Completion of Wells (in Dollars)			$ 4
Acquisition No. 1 [Member] | Wells, Drilling not yet Commenced [Member]
Oil and Gas Investments (Details) [Line Items]
Number of Wells, Drilling not yet Commenced					2
Acquisition No. 2 [Member]
Oil and Gas Investments (Details) [Line Items]
Business Combination, Consideration Transferred (in Dollars)	$ 81.3

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) - Schedule of Asset Retirement Obligations - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Schedule of Asset Retirement Obligations [Abstract]
Balance	$ 570,795	$ 383,255
Well additions	29,880	45,908
Accretion	17,228	15,170
Revisions	0	67,006
Balance	$ 617,903	$ 511,339

Risk Management (Details) - Der

Risk Management (Details) - Derivative Instruments, Gain (Loss) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Derivative Instruments, Gain (Loss) [Abstract]
Settlement gain (loss) on matured derivatives	$ 0	$ 9,600	$ 1,165,094	$ (79,388)
Gain (loss) on mark-to-market of derivatives	0	587,182	207,327	(608,319)
Gain (loss) on derivatives	$ 0	$ 596,782	$ 1,372,421	$ (687,707)

Capital Contribution and Part_2

Capital Contribution and Partners' Equity (Details) - USD ($) $ / shares in Units, shares in Millions	Dec. 30, 2016	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2017	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
Proceeds from Issuance of Common Limited Partners Units					$ 19,896,585	$ 18,952,872	$ 15,398,132
Partners' Capital Account, Description of Units Sold								Under the agreement with David Lerner Associates, Inc. (the “Managing Dealer”), the Managing Dealer receives 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			$ 1,047,123	$ 1.047123
Distribution Made to Limited Partner, Cash Distributions Paid		$ 3,850,474	$ 3,850,473	$ 3,850,473	$ 3,501,784	$ 3,131,359	$ 2,833,574	$ 11,551,420	$ 9,466,717
Best-Efforts Offering [Member]
Capital Contribution and Partners' Equity (Details) [Line Items]
Partners' Capital Account, Units, Sale of Units (in Shares)											11
Proceeds from Issuance of Common Limited Partners Units											$ 218,000,000
Proceeds, Net of Offering Costs, from Issuance of Common Limited Partners Units											$ 204,300,000

Related Parties (Details)

Related Parties (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
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	$ 437,351		$ 437,351		$ 217,209
General Partner [Member]
Related Parties (Details) [Line Items]
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party	101,000	$ 87,000	290,000	$ 281,000
Due to Related Parties, Current	101,000		101,000
Energy 11 [Member]
Related Parties (Details) [Line Items]
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party	64,000	65,000	204,000	200,000
Due to Related Parties, Current	64,000		64,000
Management Fee [Member] | General Partner [Member]
Related Parties (Details) [Line Items]
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party	273,000	$ 265,000	818,000	$ 718,000
Due to Related Parties, Current	$ 273,000		$ 273,000

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] $ / shares in Units, $ in Millions	1 Months Ended
	Oct. 31, 2020USD ($)$ / shares
Subsequent Events (Details) [Line Items]
Distribution Made to Limited Partner, Cash Distributions Paid | $	$ 1.5
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ / shares	$ 0.134247