Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2013 | Feb. 06, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'PANHANDLE OIL & GAS INC | ' |
Entity Central Index Key | '0000315131 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 8,236,672 |
Condensed_Balance_Sheets
Condensed Balance Sheets (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | ||
Current Assets: | ' | ' | ||
Cash and cash equivalents | $294,961 | $2,867,171 | ||
Oil, NGL and natural gas sales receivables | 14,677,736 | 13,720,761 | ||
Refundable production taxes | 708,506 | 662,051 | ||
Derivative contracts | ' | 425,198 | [1] | |
Other | 165,811 | 129,998 | ||
Total current assets | 15,847,014 | 17,805,179 | ||
Properties and equipment at cost, based on successful efforts accounting: | ' | ' | ||
Producing oil and natural gas properties | 314,483,789 | 304,889,145 | ||
Non-producing oil and natural gas properties | 8,873,666 | 8,932,905 | ||
Furniture and fixtures | 737,929 | 737,368 | ||
Total properties and equipment, at cost, based on successful efforts accounting | 324,095,384 | 314,559,418 | ||
Less accumulated depreciation, depletion and amortization | -191,820,197 | -186,641,291 | ||
Net properties and equipment | 132,275,187 | 127,918,127 | ||
Investments | 1,663,320 | 1,574,642 | ||
Refundable production taxes | 440,203 | 540,482 | ||
Total assets | 150,225,724 | 147,838,430 | ||
Current Liabilities: | ' | ' | ||
Accounts payable | 7,168,398 | 8,409,634 | ||
Derivative contracts | 466,772 | [1] | ' | |
Deferred income taxes | 84,100 | 127,100 | ||
Income taxes payable | 1,840,342 | 751,992 | ||
Accrued liabilities and other | 1,203,080 | 1,011,865 | ||
Total current liabilities | 10,762,692 | 10,300,591 | ||
Long-term debt | 6,000,000 | 8,262,256 | ||
Deferred income taxes | 31,595,907 | 31,226,907 | ||
Asset retirement obligations | 2,477,441 | 2,393,190 | ||
Stockholders' equity: | ' | ' | ||
Class A voting common stock, $.0166 par value; 24,000,000 shares authorized, 8,431,502 issued at December 31, 2013, and September 30, 2013 | 140,524 | 140,524 | ||
Capital in excess of par value | 2,456,303 | 2,587,838 | ||
Deferred directors' compensation | 2,870,595 | 2,756,526 | ||
Retained earnings | 100,052,495 | 96,454,449 | ||
stockholders' equity | 105,519,917 | 101,939,337 | ||
Less treasury stock, at cost; 194,830 shares at December 31, 2013, and 200,248 shares at September 30, 2013 | -6,130,233 | -6,283,851 | ||
Total stockholders' equity | 99,389,684 | 95,655,486 | ||
Total liabilities and stockholders' equity | $150,225,724 | $147,838,430 | ||
[1] | See Fair Value Measurements section for further disclosures regarding fair value of financial instruments. |
Condensed_Balance_Sheets_Paren
Condensed Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
Condensed Balance Sheets [Abstract] | ' | ' |
Common stock, par value | $0.02 | $0.02 |
Common stock, shares authorized | 24,000,000 | 24,000,000 |
Common stock, shares issued | 8,431,502 | 8,431,502 |
Treasury stock, shares | 194,830 | 200,248 |
Condensed_Statements_Of_Operat
Condensed Statements Of Operations (USD $) | 3 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues: | ' | ' |
Oil, NGL and natural gas sales | $18,473,082 | $12,758,954 |
Lease bonuses and rentals | 196,229 | 374,392 |
Gains (losses) on derivative contracts | -496,901 | 892,693 |
Income from partnerships | 224,346 | 154,396 |
Total revenues | 18,396,756 | 14,180,435 |
Costs and expenses: | ' | ' |
Lease operating expenses | 3,315,397 | 3,296,562 |
Production taxes | 571,564 | 303,553 |
Exploration costs | 38,755 | 19,767 |
Depreciation, depletion and amortization | 5,308,019 | 5,639,020 |
Provision for impairment | 202,991 | 154,965 |
Loss (gain) on asset sales, interest and other | -77,455 | 43,186 |
General and administrative | 1,873,167 | 1,898,084 |
Total costs and expenses | 11,232,438 | 11,355,137 |
Income before provision for income taxes | 7,164,318 | 2,825,298 |
Provision for income taxes | 2,238,000 | 677,000 |
Net income | $4,926,318 | $2,148,298 |
Basic and diluted earnings per common share (Note 3) | $0.59 | $0.26 |
Basic and diluted weighted average shares outstanding: | ' | ' |
Common shares | 8,231,902 | 8,250,109 |
Unissued, directors' deferred compensation shares | 123,061 | 122,285 |
Basic and diluted weighted average shares outstanding | 8,354,963 | 8,372,394 |
Dividends declared per share of common stock and paid in period | $0.08 | $0.07 |
Dividends declared per share of common stock and to be paid in quarter ended March 31 | $0.08 | $0.07 |
Statements_Of_Stockholders_Equ
Statements Of Stockholders' Equity (USD $) | Class A voting Common Stock [Member] | Capital in Excess of Par Value [Member] | Deferred Directors' Compensation [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balances at Sep. 30, 2012 | $140,524 | $2,020,229 | $2,676,160 | $84,821,395 | ($5,806,162) | $83,852,146 |
Balances, Treasury shares at Sep. 30, 2012 | ' | ' | ' | ' | -181,310 | ' |
Balances, shares at Sep. 30, 2012 | 8,431,502 | ' | ' | ' | ' | ' |
Purchase of treasury stock | ' | ' | ' | ' | -116,632 | -116,632 |
Purchase of treasury stock, shares | ' | ' | ' | ' | -4,198 | ' |
Restricted stock awards | ' | 257,877 | ' | ' | ' | 257,877 |
Distribution of deferred directors' compensation | ' | -82,547 | -297,140 | ' | 394,687 | 15,000 |
Distribution of deferred directors' compensation, shares | ' | ' | ' | ' | 12,361 | ' |
Increase in deferred directors' compensation charged to expense | ' | ' | 114,164 | ' | ' | 114,164 |
Dividends | ' | ' | ' | -1,164,429 | ' | -1,164,429 |
Net income | ' | ' | ' | 2,148,298 | ' | 2,148,298 |
Balances at Dec. 31, 2012 | 140,524 | 2,195,559 | 2,493,184 | 85,805,264 | -5,528,107 | 85,106,424 |
Balances, Treasury shares at Dec. 31, 2012 | ' | ' | ' | ' | -173,147 | ' |
Balances, shares at Dec. 31, 2012 | 8,431,502 | ' | ' | ' | ' | ' |
Balances at Sep. 30, 2013 | 140,524 | 2,587,838 | 2,756,526 | 96,454,449 | -6,283,851 | 95,655,486 |
Balances, Treasury shares at Sep. 30, 2013 | ' | ' | ' | ' | -200,248 | -200,248 |
Balances, shares at Sep. 30, 2013 | 8,431,502 | ' | ' | ' | ' | ' |
Purchase of treasury stock | ' | ' | ' | ' | -122,044 | -122,044 |
Purchase of treasury stock, shares | ' | ' | ' | ' | -3,722 | ' |
Restricted stock awards | ' | 127,976 | ' | ' | ' | 127,976 |
Distribution of deferred directors' compensation | ' | -259,511 | ' | ' | 275,662 | 16,151 |
Distribution of deferred directors' compensation, shares | ' | ' | ' | ' | 9,140 | ' |
Increase in deferred directors' compensation charged to expense | ' | ' | 114,069 | ' | ' | 114,069 |
Dividends | ' | ' | ' | -1,328,272 | ' | -1,328,272 |
Net income | ' | ' | ' | 4,926,318 | ' | 4,926,318 |
Balances at Dec. 31, 2013 | $140,524 | $2,456,303 | $2,870,595 | $100,052,495 | ($6,130,233) | $99,389,684 |
Balances, Treasury shares at Dec. 31, 2013 | ' | ' | ' | ' | -194,830 | -194,830 |
Balances, shares at Dec. 31, 2013 | 8,431,502 | ' | ' | ' | ' | ' |
Statements_Of_Stockholders_Equ1
Statements Of Stockholders' Equity (Parenthetical) (Retained Earnings [Member], USD $) | 3 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Retained Earnings [Member] | ' | ' |
Dividends per share | $0.16 | $0.14 |
Condensed_Statements_Of_Cash_F
Condensed Statements Of Cash Flows (USD $) | 3 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
Operating Activities | ' | ' | |
Net income (loss) | $4,926,318 | $2,148,298 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | |
Depreciation, depletion and amortization | 5,308,019 | 5,639,020 | |
Impairment | 202,991 | 154,965 | [1] |
Provision for deferred income taxes | 326,000 | 338,000 | |
Exploration costs | 38,755 | 19,767 | |
Gain from leasing fee mineral acreage | -196,133 | -373,440 | |
Income from partnerships | -224,346 | -154,396 | |
Distributions received from partnerships | 279,363 | 194,147 | |
Increase in deferred directors' compensation charged to expense | 114,069 | 114,164 | |
Restricted stock awards | 127,976 | 257,877 | |
Cash provided (used) by changes in assets and liabilities: | ' | ' | |
Oil, NGL and natural gas sales receivables | -956,975 | 115,645 | |
Fair value of derivative contracts | 891,970 | -936,914 | |
Refundable production taxes | 53,824 | 212,834 | |
Other current assets | -35,813 | 47,528 | |
Accounts payable | 414,267 | -361,777 | |
Income taxes receivable | ' | 319,735 | |
Income taxes payable | 1,088,350 | ' | |
Accrued liabilities | -472,288 | -577,210 | |
Total adjustments | 6,960,029 | 5,009,945 | |
Net cash provided by operating activities | 11,886,347 | 7,158,243 | |
Investing Activities | ' | ' | |
Capital expenditures, including dry hole costs | -9,892,262 | -6,864,399 | |
Acquisition of working interest properties | -1,550,205 | ' | |
Acquisition of minerals and overrides | -56,250 | -330,000 | |
Proceeds from leasing fee mineral acreage | 216,773 | 384,790 | |
Investments in partnerships | -143,695 | -243,519 | |
Net cash used in investing activities | -11,425,639 | -7,053,128 | |
Financing Activities | ' | ' | |
Borrowings under debt agreement | 2,280,280 | 4,171,662 | |
Payments of loan principal | -4,542,536 | -4,591,890 | |
Purchases of treasury stock | -122,044 | -116,632 | |
Payments of dividends | -664,618 | -580,991 | |
Excess tax benefit on stock-based compensation | 16,000 | 15,000 | |
Net cash provided by (used in) financing activities | -3,032,918 | -1,102,851 | |
Increase (decrease) in cash and cash equivalents | -2,572,210 | -997,736 | |
Cash and cash equivalents at beginning of year | 2,867,171 | 1,984,099 | |
Cash and cash equivalents at end of year | 294,961 | 986,363 | |
Supplemental Disclosures of Cash Flow Information | ' | ' | |
Dividends declared and unpaid | 663,654 | 583,438 | |
Additions to asset retirement obligations | 53,653 | 42,156 | |
Supplemental schedule of noncash investing and financing activities: | ' | ' | |
Gross additions to properties and equipment | 9,843,214 | 5,218,194 | |
Net (increase) decrease in accounts payable for properties and equipment additions | 1,655,503 | 1,976,205 | |
Capital expenditures and acquisitions, including dry hole costs | $11,498,717 | $7,194,399 | |
[1] | At the end of each quarter, the Company assesses the carrying value of its producing properties for impairment. This assessment utilizes estimates of future cash flows. Significant judgments and assumptions in these assessments include estimates of future oil and natural gas prices using a forward NYMEX curve adjusted for locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values. |
Accounting_Principles_And_Basi
Accounting Principles And Basis Of Presentation | 3 Months Ended |
Dec. 31, 2013 | |
Accounting Principles And Basis Of Presentation [Abstract] | ' |
Accounting Principles And Basis Of Presentation | ' |
NOTE 1: Accounting Principles and Basis of Presentation | |
The accompanying unaudited condensed financial statements of Panhandle Oil and Gas Inc. have been prepared in accordance with the instructions to Form 10-Q as prescribed by the SEC. Management of the Company believes that all adjustments necessary for a fair presentation of the financial position and results of operations and cash flows for the periods have been included. All such adjustments are of a normal recurring nature. The results are not necessarily indicative of those to be expected for the full year. The Company’s fiscal year runs from October 1 through September 30. | |
Certain amounts and disclosures have been condensed or omitted from these financial statements pursuant to the rules and regulations of the SEC. Therefore, these condensed financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s 2013 Annual Report on Form 10-K. | |
Income_Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2013 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
NOTE 2: Income Taxes | |
The Company’s provision for income taxes differs from the statutory rate primarily due to estimated federal and state benefits generated from estimated excess federal and Oklahoma percentage depletion, which are permanent tax benefits. | |
Both excess federal percentage depletion, which is limited to certain production volumes and by certain income levels, and excess Oklahoma percentage depletion, which has no limitation on production volume, reduce estimated taxable income or add to estimated taxable loss projected for any year. The federal and Oklahoma excess percentage depletion estimates will be updated throughout the year until finalized with detailed well-by-well calculations at fiscal year-end. Federal and Oklahoma excess percentage depletion benefits, when a provision for income taxes is recorded, decrease the effective tax rate, while the effect is to increase the effective tax rate when a benefit for income taxes is recorded. The benefits of federal and Oklahoma excess percentage depletion are not directly related to the amount of pre-tax income recorded in a period. Accordingly, in periods where a recorded pre-tax income or loss is relatively small, the proportional effect of these items on the effective tax rate may be significant. The effective tax rate for the quarter ended December 31, 2013, was 31% as compared to 24% for the quarter ended December 31, 2012. | |
Basic_And_Diluted_Earnings_Per
Basic And Diluted Earnings Per Share | 3 Months Ended |
Dec. 31, 2013 | |
Basic And Diluted Earnings Per Share [Abstract] | ' |
Basic And Diluted Earnings Per Share | ' |
NOTE 3: Basic and Diluted Earnings per Share | |
Basic and diluted earnings per share is calculated using net income divided by the weighted average number of voting common shares outstanding, including unissued, vested directors’ deferred compensation shares during the period. | |
LongTerm_Debt
Long-Term Debt | 3 Months Ended |
Dec. 31, 2013 | |
Long-Term Debt [Abstract] | ' |
Long-Term Debt | ' |
NOTE 4: Long-term Debt | |
The Company has a credit facility with Bank of Oklahoma (BOK) which consists of a revolving loan in the amount of $80,000,000 which is subject to a semi-annual borrowing base determination, wherein BOK applies their own current pricing forecast and an 8% discount rate to the Company’s proved reserves as calculated by the Company’s Independent Consulting Petroleum Engineering Firm. When applying the discount rate, BOK also applies an advance rate percentage to all proved non-producing and proved undeveloped reserves. The facility currently has a borrowing base of $35,000,000 and is secured by certain of the Company’s properties with a carrying value of $38,864,588 at December 31, 2013. The facility matures on November 30, 2017. The interest rate is based on BOK prime plus from 0.375% to 1.125%, or 30 day LIBOR plus from 1.875% to 2.625%. The election of BOK prime or LIBOR is at the Company’s discretion. The interest rate spread from LIBOR or the prime rate increases as a larger percent of the loan value of the Company’s oil and natural gas properties is advanced. The interest rate spread from BOK prime or LIBOR will be charged based on the percent of the value advanced of the calculated loan value of the Company’s oil and natural gas properties. At December 31, 2013, the effective interest rate was 2.04%. | |
The Company’s debt is recorded at the carrying amount on its balance sheet. The carrying amount of the Company’s revolving credit facility approximates fair value because the interest rates are reflective of market rates. | |
Since the bank charges a customary non-use fee of 0.25% annually of the unused portion of the borrowing base, the Company has not requested the bank to increase its borrowing base beyond $35,000,000. Determinations of the borrowing base are made semi-annually or whenever the bank, in its sole discretion, believes that there has been a material change in the value of the oil and natural gas properties. While the Company believes the availability could be increased (if needed) by placing more of the Company’s properties as security under the revolving credit facility, increases are at the discretion of the bank. The loan agreement contains customary covenants which, among other things, require periodic financial and reserve reporting and limit the Company’s incurrence of indebtedness, liens, dividends and acquisitions of treasury stock, and require the Company to maintain certain financial ratios. At December 31, 2013, the Company was in compliance with the covenants of the BOK agreement. | |
Deferred_Compensation_Plan_For
Deferred Compensation Plan For Directors | 3 Months Ended |
Dec. 31, 2013 | |
Deferred Compensation Plan For Directors [Abstract] | ' |
Deferred Compensation Plan For Directors | ' |
NOTE 5: Deferred Compensation Plan for Directors | |
The Company has a deferred compensation plan for non-employee directors (the Plan). The Plan provides that each eligible director can individually elect to be credited with future unissued shares of Company stock rather than cash for Board and committee chair retainers, Board meeting fees and Board committee meeting fees. These unissued shares are credited to each director’s deferred fee account at the closing market price of the stock on the date earned. Upon retirement, termination or death of the director, or upon a change in control of the Company, the unissued shares credited under the Plan will be issued to the director. | |
Restricted_Stock_Plan
Restricted Stock Plan | 3 Months Ended | |||||
Dec. 31, 2013 | ||||||
Restricted Stock Plan [Abstract] | ' | |||||
Restricted Stock Plan | ' | |||||
NOTE 6: Restricted Stock Plan | ||||||
On March 11, 2010, shareholders approved the Panhandle Oil and Gas Inc. 2010 Restricted Stock Plan (2010 Stock Plan), which made available 100,000 shares of common stock to provide a long-term component to the Company’s total compensation package for its officers and to further align the interest of its officers with those of its shareholders. The 2010 Stock Plan is designed to provide as much flexibility as possible for future grants of restricted stock so that the Company can respond as necessary to provide competitive compensation in order to retain, attract and motivate officers of the Company and to align their interests with those of the Company’s shareholders. | ||||||
Effective March 2010, the board of directors approved the purchase of the Company’s common stock, from time to time, equal to the aggregate number of shares of common stock awarded pursuant to the Company’s 2010 Restricted Stock Plan, contributed by the Company to its ESOP and credited to the accounts of directors pursuant to the Deferred Compensation Plan for Non-Employee Directors. | ||||||
On December 21, 2013, the Company awarded 6,093 non-performance based shares and 18,279 performance based shares of the Company’s common stock as restricted stock to certain officers. The restricted stock vests at the end of three years and contains nonforfeitable rights to receive dividends and voting rights during the vesting period. The non-performance and performance based shares had a fair value on their award date of $199,788 and $294,889, respectively, and will be recognized as compensation expense ratably over the vesting period. The fair value of the performance based shares on their award date is calculated by simulating the Company’s stock price and stock price return utilizing a Monte Carlo model covering the period from the grant date through the end of the performance period (December 21, 2013, through December 21, 2016). | ||||||
The following table summarizes the Company’s pre-tax compensation expense for the three months ended December 31, 2013 and 2012, related to the Company’s performance based and non-performance based restricted stock. | ||||||
Three Months Ended | ||||||
December 31, | ||||||
2013 | 2012 | |||||
Performance based, restricted stock | $ | 72,695 | $ | 99,939 | ||
Non-performance based, restricted stock | 55,281 | 157,938 | ||||
Total compensation expense | $ | 127,976 | $ | 257,877 | ||
A summary of the Company’s unrecognized compensation cost for its unvested performance based and non-performance based restricted stock and the weighted-average periods over which the compensation cost is expected to be recognized are shown in the following table. | ||||||
As of December 31, 2013 | ||||||
Unrecognized Compensation Cost | Weighted Average Period (in years) | |||||
Performance based, restricted stock | $ | 504,920 | 1.98 | |||
Non-performance based, restricted stock | 372,135 | 1.95 | ||||
Total | $ | 877,055 | ||||
Upon vesting, shares are expected to be issued out of shares held in treasury. | ||||||
Oil_NGL_And_Natural_Gas_Reserv
Oil, NGL And Natural Gas Reserves | 3 Months Ended |
Dec. 31, 2013 | |
Oil And Natural Gas Reserves [Abstract] | ' |
Oil, NGL And Natural Gas Reserves | ' |
NOTE 7: Oil, NGL and Natural Gas Reserves | |
Management considers the estimation of the Company’s crude oil, NGL and natural gas reserves to be the most significant of its judgments and estimates. Changes in crude oil, NGL and natural gas reserve estimates affect the Company’s calculation of DD&A, provision for abandonment and assessment of the need for asset impairments. On an annual basis, with a semi-annual update, the Company’s Independent Consulting Petroleum Engineer, with assistance from Company staff, prepares estimates of crude oil, NGL and natural gas reserves based on available geological and seismic data, reservoir pressure data, core analysis reports, well logs, analogous reservoir performance history, production data and other available sources of engineering, geological and geophysical information. Between periods in which reserves would normally be calculated, the Company updates the reserve calculations utilizing appropriate prices for the current period. The estimated oil, NGL and natural gas reserves were computed using the 12-month average price calculated as the unweighted arithmetic average of the first-day-of-the-month oil, NGL and natural gas price for each month within the 12-month period prior to the balance sheet date, held flat over the life of the properties. However, projected future crude oil, NGL and natural gas pricing assumptions are used by management to prepare estimates of crude oil, NGL and natural gas reserves and future net cash flows used in asset impairment assessments and in formulating management’s overall operating decisions. Crude oil, NGL and natural gas prices are volatile and affected by worldwide production and consumption and are outside the control of management. | |
Impairment
Impairment | 3 Months Ended |
Dec. 31, 2013 | |
Impairment [Abstract] | ' |
Impairment | ' |
NOTE 8: Impairment | |
All long-lived assets, principally oil and natural gas properties, are monitored for potential impairment when circumstances indicate that the carrying value of the asset may be greater than its estimated future net cash flows. The evaluations involve significant judgment since the results are based on estimated future events, such as inflation rates, future sales prices for oil, NGL and natural gas, future production costs, estimates of future oil, NGL and natural gas reserves to be recovered and the timing thereof, the economic and regulatory climates and other factors. The need to test a property for impairment may result from significant declines in sales prices or unfavorable adjustments to oil, NGL and natural gas reserves. Between periods in which reserves would normally be calculated, the Company updates the reserve calculations utilizing updated projected future price decks current with the period. For the three months ended December 31, 2013 and 2012, the assessment resulted in impairment provisions of $202,991 and $154,965, respectively. A reduction in oil, NGL or natural gas prices, or a decline in reserve volumes, could lead to additional impairment that may be material to the Company. | |
Capitalized_Costs
Capitalized Costs | 3 Months Ended |
Dec. 31, 2013 | |
Capitalized Costs [Abstract] | ' |
Capitalized Costs | ' |
NOTE 9: Capitalized Costs | |
As of December 31, 2013 and 2012, non-producing oil and natural gas properties include costs of $83,174 and $0, respectively, on exploratory wells which were drilling and/or testing. | |
Exploration_Costs
Exploration Costs | 3 Months Ended |
Dec. 31, 2013 | |
Exploration Costs [Abstract] | ' |
Exploration Costs | ' |
NOTE 10: Exploration Costs | |
In the quarter ended December 31, 2013, lease expirations and leasehold impairments of $24,148 were charged to exploration costs. Leasehold impairments are recorded for individually insignificant non-producing leases which the Company believes will not be transferred to proved properties over the remaining lives of the leases. In the quarter ended December 31, 2013, the Company also had an additional $14,607 related to geological and geophysical costs. In the quarter ended December 31, 2012, lease expirations and impairments of $13,222 were charged to exploration costs as well as additional costs of $6,545 related to exploratory dry holes. | |
Derivatives
Derivatives | 3 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivatives [Abstract] | ' | ||||||||||||
Derivatives | ' | ||||||||||||
NOTE 11: Derivatives | |||||||||||||
The Company has entered into fixed swap contracts and costless collar contracts. These instruments are intended to reduce the Company’s exposure to short-term fluctuations in the price of oil and natural gas. Fixed swap contracts set a fixed price and provide payments to the Company if the index price is below the fixed price, or require payments by the Company if the index price is above the fixed price. Collar contracts set a fixed floor price and a fixed ceiling price and provide payments to the Company if the index price falls below the floor or require payments by the Company if the index price rises above the ceiling. These contracts cover only a portion of the Company’s natural gas and oil production and provide only partial price protection against declines in natural gas and oil prices. These derivative instruments may expose the Company to risk of financial loss and limit the benefit of future increases in prices. All of the Company’s derivative contracts are with Bank of Oklahoma and are secured. The derivative instruments have settled or will settle based on the prices below. | |||||||||||||
Derivative contracts in place as of December 31, 2013 | |||||||||||||
Production volume | |||||||||||||
Contract period | covered per month | Index | Contract price | ||||||||||
Natural gas costless collars | |||||||||||||
November 2013 - April 2014 | 160,000 Mmbtu | NYMEX Henry Hub | $4.00 floor/$4.55 ceiling | ||||||||||
January - June 2014 | 40,000 Mmbtu | NYMEX Henry Hub | $3.25 floor/$3.90 ceiling | ||||||||||
January - June 2014 | 50,000 Mmbtu | NYMEX Henry Hub | $3.50 floor/$4.30 ceiling | ||||||||||
January - June 2014 | 80,000 Mmbtu | NYMEX Henry Hub | $3.75 floor/$4.35 ceiling | ||||||||||
July - December 2014 | 140,000 Mmbtu | NYMEX Henry Hub | $3.75 floor/$4.50 ceiling | ||||||||||
Natural gas fixed price swaps | |||||||||||||
January - June 2014 | 80,000 Mmbtu | NYMEX Henry Hub | $4.08 | ||||||||||
July - December 2014 | 140,000 Mmbtu | NYMEX Henry Hub | $4.11 | ||||||||||
April - September 2014 | 50,000 Mmbtu | NYMEX Henry Hub | $4.20 | ||||||||||
April - September 2014 | 50,000 Mmbtu | NYMEX Henry Hub | $4.18 | ||||||||||
April - September 2014 | 50,000 Mmbtu | NYMEX Henry Hub | $4.21 | ||||||||||
Oil costless collars | |||||||||||||
January - June 2014 | 4,000 Bbls | NYMEX WTI | $90.00 floor/$101.50 ceiling | ||||||||||
January - December 2014 | 4,000 Bbls | NYMEX WTI | $85.00 floor/$100.00 ceiling | ||||||||||
January - June 2014 | 3,667 Bbls | NYMEX WTI | $85.00 floor/$99.00 ceiling | ||||||||||
Oil fixed price swaps | |||||||||||||
January - December 2014 | 3,000 Bbls | NYMEX WTI | $94.50 | ||||||||||
Derivative contracts in place as of September 30, 2013 | |||||||||||||
Production volume | |||||||||||||
Contract period | covered per month | Index | Contract price | ||||||||||
Natural gas costless collars | |||||||||||||
February - December 2013 | 80,000 Mmbtu | NYMEX Henry Hub | $3.75 floor/$4.25 ceiling | ||||||||||
February - December 2013 | 50,000 Mmbtu | NYMEX Henry Hub | $3.75 floor/$4.30 ceiling | ||||||||||
February - December 2013 | 100,000 Mmbtu | NYMEX Henry Hub | $3.75 floor/$4.05 ceiling | ||||||||||
November 2013 - April 2014 | 160,000 Mmbtu | NYMEX Henry Hub | $4.00 floor/$4.55 ceiling | ||||||||||
Natural gas fixed price swaps | |||||||||||||
March - October 2013 | 100,000 Mmbtu | NYMEX Henry Hub | $3.50 | ||||||||||
March - October 2013 | 70,000 Mmbtu | NYMEX Henry Hub | $3.40 | ||||||||||
April - December 2013 | 40,000 Mmbtu | NYMEX Henry Hub | $3.65 | ||||||||||
May - November 2013 | 100,000 Mmbtu | NYMEX Henry Hub | $4.32 | ||||||||||
Oil costless collars | |||||||||||||
March - December 2013 | 3,000 Bbls | NYMEX WTI | $90.00 floor/$102.00 ceiling | ||||||||||
March - December 2013 | 4,000 Bbls | NYMEX WTI | $90.00 floor/$101.50 ceiling | ||||||||||
May - December 2013 | 2,000 Bbls | NYMEX WTI | $90.00 floor/$97.50 ceiling | ||||||||||
January - June 2014 | 4,000 Bbls | NYMEX WTI | $90.00 floor/$101.50 ceiling | ||||||||||
Oil fixed price swaps | |||||||||||||
September - December 2013 | 4,000 Bbls | NYMEX WTI | $105.25 | ||||||||||
The Company has elected not to complete all of the documentation requirements necessary to permit these derivative contracts to be accounted for as cash flow hedges. The Company’s fair value of derivative contracts was a net liability of $466,772 as of December 31, 2013, and a net asset of $425,198 as of September 30, 2013. | |||||||||||||
The fair value amounts recognized for the Company’s derivative contracts executed with the same counterparty under a master netting arrangement may be offset. The Company has the choice to offset or not, but that choice must be applied consistently. A master netting arrangement exists if the reporting entity has multiple contracts with a single counterparty that are subject to a contractual agreement that provides for the net settlement of all contracts through a single payment in a single currency in the event of default on or termination of any one contract. Offsetting the fair values recognized for the derivative contracts outstanding with a single counterparty results in the net fair value of the transactions being reported as an asset or a liability in the Condensed Balance Sheets. The Company has chosen to present the fair values of its derivative contracts under master netting agreements using a net fair value presentation. | |||||||||||||
The following table summarizes and reconciles the Company's derivative contracts’ fair values at a gross level back to net fair value presentation on the Company's Condensed Balance Sheets at December 31, 2013, and September 30, 2013. The Company adopted the accounting guidance requiring additional disclosures for balance sheet offsetting of assets and liabilities effective January 1, 2013. The Company has offset all amounts subject to master netting agreements in the Company's Condensed Balance Sheets at December 31, 2013, and September 30, 2013. | |||||||||||||
12/31/13 | 9/30/13 | ||||||||||||
Fair Value (a) | Fair Value (a) | ||||||||||||
Commodity Contracts | Commodity Contracts | ||||||||||||
Current Assets | Current Liabilities | Current Assets | Current Liabilities | ||||||||||
Gross amounts recognized | $ | 116,629 | $ | -583,401 | $ | 665,099 | $ | 239,901 | |||||
Offsetting adjustments | -116,629 | 116,629 | -239,901 | -239,901 | |||||||||
Net presentation on Condensed Balance Sheets | $ | - | $ | -466,772 | $ | 425,198 | $ | - | |||||
(a) See Fair Value Measurements section for further disclosures regarding fair value of financial instruments. | |||||||||||||
The fair value of derivative assets and derivative liabilities is adjusted for credit risk. The impact of credit risk was immaterial for all periods presented. | |||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value Measurements [Abstract] | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
NOTE 12: Fair Value Measurements | ||||||||||||||
Fair value is defined as the amount that would be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants, i.e., an exit price. To estimate an exit price, a three-level hierarchy is used. The fair value hierarchy prioritizes the inputs, which refer broadly to assumptions market participants would use in pricing an asset or a liability, into three levels. Level 1 inputs are unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following: (i) quoted prices for similar assets or liabilities in active markets; (ii) quoted prices for identical or similar assets or liabilities in markets that are not active; (iii) inputs other than quoted prices that are observable for the asset or liability; or (iv) inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 inputs are unobservable inputs for the financial asset or liability. | ||||||||||||||
The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013. | ||||||||||||||
Fair Value Measurement at December 31, 2013 | ||||||||||||||
Quoted Prices in Active Markets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total Fair | |||||||||||
(Level 1) | (Level 2) | (Level 3) | Value | |||||||||||
Financial Assets (Liabilities): | ||||||||||||||
Derivative Contracts - Swaps | $ | - | $ | -88,536 | $ | - | $ | -88,536 | ||||||
Derivative Contracts - Collars | $ | - | $ | - | $ | -378,236 | $ | -378,236 | ||||||
Level 2 – Market Approach - The fair values of the Company’s natural gas swaps are based on a third-party pricing model which utilizes inputs that are either readily available in the public market, such as natural gas curves, or can be corroborated from active markets. These values are based upon future prices, time to maturity and other factors. These values are then compared to the values given by our counterparties for reasonableness. | ||||||||||||||
Level 3 – The fair values of the Company’s costless collar contracts are based on a pricing model which utilizes inputs that are unobservable or not readily available in the public market. These values are based upon future prices, volatility, time to maturity and other factors. These values are then compared to the values given by our counterparties for reasonableness. | ||||||||||||||
The significant unobservable inputs for Level 3 derivative contracts include unpublished forward prices of oil and natural gas, market volatility and credit risk of counterparties. Changes in these inputs will impact the fair value measurement of our derivative contracts. An increase (decrease) in the forward prices and volatility of oil and natural gas prices will decrease (increase) the fair value of oil and natural gas derivatives, and adverse changes to our counterparties’ creditworthiness will decrease the fair value of our derivatives. | ||||||||||||||
The following table represents quantitative disclosures about unobservable inputs for Level 3 Fair Value Measurements. | ||||||||||||||
Instrument Type | Unobservable Input | Range | Weighted Average | Fair Value December 30, 2013 | ||||||||||
Oil Collars | Oil price volatility curve | 0% - 17.35% | 9.26% | $ | -177,849 | |||||||||
Natural Gas Collars | Natural gas price volatility curve | 0% - 24.20% | 14.41% | $ | -200,387 | |||||||||
A reconciliation of the Company’s derivative contracts classified as Level 3 measurements is presented below. All gains and losses are presented on the Gains (losses) on derivative contracts line item on our Statement of Operations. | ||||||||||||||
Derivatives | ||||||||||||||
Balance of Level 3 as of October 1, 2013 | $ | 242,902 | ||||||||||||
Total gains or (losses) | ||||||||||||||
Included in earnings | -621,138 | |||||||||||||
Included in other comprehensive income (loss) | - | |||||||||||||
Purchases, issuances and settlements | - | |||||||||||||
Transfers in and out of Level 3 | - | |||||||||||||
Balance of Level 3 as of December 31, 2013 | $ | -378,236 | ||||||||||||
The following table presents impairments associated with certain assets that have been measured at fair value on a nonrecurring basis within Level 3 of the fair value hierarchy. | ||||||||||||||
Quarter Ended December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Fair Value | Impairment | Fair Value | Impairment | |||||||||||
Producing Properties | $ | 236,199 | $ | 202,991 | $ | 332,220 | $ | 154,965 | (a) | |||||
(a) At the end of each quarter, the Company assesses the carrying value of its producing properties for impairment. This assessment utilizes estimates of future cash flows. Significant judgments and assumptions in these assessments include estimates of future oil and natural gas prices using a forward NYMEX curve adjusted for locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values. | ||||||||||||||
At December 31, 2013, and September 30, 2013, the fair value of financial instruments approximated their carrying amounts. Financial instruments include long-term debt, which the valuation is classified as Level 3 and is based on a valuation technique that requires inputs that are both unobservable and significant to the overall fair value measurement. The fair value measurement of our long-term debt is valued using a discounted cash flow model that calculates the present value of future cash flows pursuant to the terms of the debt agreements and applies estimated current market interest rates. The estimated current market interest rates are based primarily on interest rates currently being offered on borrowings of similar amounts and terms. In addition, no valuation input adjustments were considered necessary relating to nonperformance risk for the debt agreements. | ||||||||||||||
Recently_Adopted_Accounting_Pr
Recently Adopted Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2013 | |
Recently Adopted Accounting Pronouncements [Abstract] | ' |
Recently Adopted Accounting Pronouncements | ' |
NOTE 13: Recently Adopted Accounting Pronouncements | |
Other accounting standards that have been issued or proposed by the FASB, or other standards-setting bodies, that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. | |
Restricted_Stock_Plan_Tables
Restricted Stock Plan (Tables) | 3 Months Ended | |||||
Dec. 31, 2013 | ||||||
Restricted Stock Plan [Abstract] | ' | |||||
Summary Of Pre-Tax Compensation Expense | ' | |||||
Three Months Ended | ||||||
December 31, | ||||||
2013 | 2012 | |||||
Performance based, restricted stock | $ | 72,695 | $ | 99,939 | ||
Non-performance based, restricted stock | 55,281 | 157,938 | ||||
Total compensation expense | $ | 127,976 | $ | 257,877 | ||
Summary Of Unrecognized Compensation Cost | ' | |||||
As of December 31, 2013 | ||||||
Unrecognized Compensation Cost | Weighted Average Period (in years) | |||||
Performance based, restricted stock | $ | 504,920 | 1.98 | |||
Non-performance based, restricted stock | 372,135 | 1.95 | ||||
Total | $ | 877,055 | ||||
Derivatives_Tables
Derivatives (Tables) | 3 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivatives [Abstract] | ' | ||||||||||||
Summary Of Derivative Instruments Contracts | ' | ||||||||||||
Derivative contracts in place as of December 31, 2013 | |||||||||||||
Production volume | |||||||||||||
Contract period | covered per month | Index | Contract price | ||||||||||
Natural gas costless collars | |||||||||||||
November 2013 - April 2014 | 160,000 Mmbtu | NYMEX Henry Hub | $4.00 floor/$4.55 ceiling | ||||||||||
January - June 2014 | 40,000 Mmbtu | NYMEX Henry Hub | $3.25 floor/$3.90 ceiling | ||||||||||
January - June 2014 | 50,000 Mmbtu | NYMEX Henry Hub | $3.50 floor/$4.30 ceiling | ||||||||||
January - June 2014 | 80,000 Mmbtu | NYMEX Henry Hub | $3.75 floor/$4.35 ceiling | ||||||||||
July - December 2014 | 140,000 Mmbtu | NYMEX Henry Hub | $3.75 floor/$4.50 ceiling | ||||||||||
Natural gas fixed price swaps | |||||||||||||
January - June 2014 | 80,000 Mmbtu | NYMEX Henry Hub | $4.08 | ||||||||||
July - December 2014 | 140,000 Mmbtu | NYMEX Henry Hub | $4.11 | ||||||||||
April - September 2014 | 50,000 Mmbtu | NYMEX Henry Hub | $4.20 | ||||||||||
April - September 2014 | 50,000 Mmbtu | NYMEX Henry Hub | $4.18 | ||||||||||
April - September 2014 | 50,000 Mmbtu | NYMEX Henry Hub | $4.21 | ||||||||||
Oil costless collars | |||||||||||||
January - June 2014 | 4,000 Bbls | NYMEX WTI | $90.00 floor/$101.50 ceiling | ||||||||||
January - December 2014 | 4,000 Bbls | NYMEX WTI | $85.00 floor/$100.00 ceiling | ||||||||||
January - June 2014 | 3,667 Bbls | NYMEX WTI | $85.00 floor/$99.00 ceiling | ||||||||||
Oil fixed price swaps | |||||||||||||
January - December 2014 | 3,000 Bbls | NYMEX WTI | $94.50 | ||||||||||
Derivative contracts in place as of September 30, 2013 | |||||||||||||
Production volume | |||||||||||||
Contract period | covered per month | Index | Contract price | ||||||||||
Natural gas costless collars | |||||||||||||
February - December 2013 | 80,000 Mmbtu | NYMEX Henry Hub | $3.75 floor/$4.25 ceiling | ||||||||||
February - December 2013 | 50,000 Mmbtu | NYMEX Henry Hub | $3.75 floor/$4.30 ceiling | ||||||||||
February - December 2013 | 100,000 Mmbtu | NYMEX Henry Hub | $3.75 floor/$4.05 ceiling | ||||||||||
November 2013 - April 2014 | 160,000 Mmbtu | NYMEX Henry Hub | $4.00 floor/$4.55 ceiling | ||||||||||
Natural gas fixed price swaps | |||||||||||||
March - October 2013 | 100,000 Mmbtu | NYMEX Henry Hub | $3.50 | ||||||||||
March - October 2013 | 70,000 Mmbtu | NYMEX Henry Hub | $3.40 | ||||||||||
April - December 2013 | 40,000 Mmbtu | NYMEX Henry Hub | $3.65 | ||||||||||
May - November 2013 | 100,000 Mmbtu | NYMEX Henry Hub | $4.32 | ||||||||||
Oil costless collars | |||||||||||||
March - December 2013 | 3,000 Bbls | NYMEX WTI | $90.00 floor/$102.00 ceiling | ||||||||||
March - December 2013 | 4,000 Bbls | NYMEX WTI | $90.00 floor/$101.50 ceiling | ||||||||||
May - December 2013 | 2,000 Bbls | NYMEX WTI | $90.00 floor/$97.50 ceiling | ||||||||||
January - June 2014 | 4,000 Bbls | NYMEX WTI | $90.00 floor/$101.50 ceiling | ||||||||||
Oil fixed price swaps | |||||||||||||
September - December 2013 | 4,000 Bbls | NYMEX WTI | $105.25 | ||||||||||
Summary Of Realized And Unrealized Gains And (Losses) | ' | ||||||||||||
12/31/13 | 9/30/13 | ||||||||||||
Fair Value (a) | Fair Value (a) | ||||||||||||
Commodity Contracts | Commodity Contracts | ||||||||||||
Current Assets | Current Liabilities | Current Assets | Current Liabilities | ||||||||||
Gross amounts recognized | $ | 116,629 | $ | -583,401 | $ | 665,099 | $ | 239,901 | |||||
Offsetting adjustments | -116,629 | 116,629 | -239,901 | -239,901 | |||||||||
Net presentation on Condensed Balance Sheets | $ | - | $ | -466,772 | $ | 425,198 | $ | - | |||||
(a) See Fair Value Measurements section for further disclosures regarding fair value of financial instruments. | |||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value Measurements [Abstract] | ' | |||||||||||||
Summary Of Fair Value Measurement Information For Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis | ' | |||||||||||||
Fair Value Measurement at December 31, 2013 | ||||||||||||||
Quoted Prices in Active Markets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total Fair | |||||||||||
(Level 1) | (Level 2) | (Level 3) | Value | |||||||||||
Financial Assets (Liabilities): | ||||||||||||||
Derivative Contracts - Swaps | $ | - | $ | -88,536 | $ | - | $ | -88,536 | ||||||
Derivative Contracts - Collars | $ | - | $ | - | $ | -378,236 | $ | -378,236 | ||||||
Summary Of Unobservable Inputs For Level 3 Fair Value Measurements | ' | |||||||||||||
Instrument Type | Unobservable Input | Range | Weighted Average | Fair Value December 30, 2013 | ||||||||||
Oil Collars | Oil price volatility curve | 0% - 17.35% | 9.26% | $ | -177,849 | |||||||||
Natural Gas Collars | Natural gas price volatility curve | 0% - 24.20% | 14.41% | $ | -200,387 | |||||||||
Summary Of Reconciliation Of Assets Classified As Level 3 Measurements | ' | |||||||||||||
Derivatives | ||||||||||||||
Balance of Level 3 as of October 1, 2013 | $ | 242,902 | ||||||||||||
Total gains or (losses) | ||||||||||||||
Included in earnings | -621,138 | |||||||||||||
Included in other comprehensive income (loss) | - | |||||||||||||
Purchases, issuances and settlements | - | |||||||||||||
Transfers in and out of Level 3 | - | |||||||||||||
Balance of Level 3 as of December 31, 2013 | $ | -378,236 | ||||||||||||
Summary Of Impairments Associated With Certain Assets Measured At Fair Value On A Nonrecurring Basis Within Level 3 | ' | |||||||||||||
Quarter Ended December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Fair Value | Impairment | Fair Value | Impairment | |||||||||||
Producing Properties | $ | 236,199 | $ | 202,991 | $ | 332,220 | $ | 154,965 | (a) | |||||
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | ' | ' |
Effective tax rate | 31.00% | 24.00% |
LongTerm_Debt_Details
Long-Term Debt (Details) (Revolving Credit Facility [Member], USD $) | 3 Months Ended |
Dec. 31, 2013 | |
Line Of Credit Facility [Line Items] | ' |
Revolving loan credit facility | $80,000,000 |
Discount rate | 8.00% |
Borrowing base of credit facility | 35,000,000 |
Properties carrying value | $38,864,588 |
Credit facility maturity | 30-Nov-17 |
Effective Interest rate | 2.04% |
Annual Non Use Fee Percentage | 0.25% |
Minimum [Member] | Prime Rate [Member] | ' |
Line Of Credit Facility [Line Items] | ' |
Interest rate basis | 0.38% |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ' |
Line Of Credit Facility [Line Items] | ' |
Interest rate basis | 1.88% |
Maximum [Member] | Prime Rate [Member] | ' |
Line Of Credit Facility [Line Items] | ' |
Interest rate basis | 1.13% |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ' |
Line Of Credit Facility [Line Items] | ' |
Interest rate basis | 2.63% |
Restricted_Stock_Plan_Narrativ
Restricted Stock Plan (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Dec. 31, 2013 | Mar. 11, 2010 | Dec. 21, 2013 | Dec. 21, 2013 | |
2010 Stock Plan [Member] | Non Performance Based Restricted Stock [Member] | Performance Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Common Stock Shares | ' | 100,000 | ' | ' |
Shares awarded | ' | ' | 6,093 | 18,279 |
Restricted Stock vesting period | '3 years | ' | ' | ' |
Fair value of shares awarded | ' | ' | $199,788 | $294,889 |
Restricted_Stock_Plan_Summary_
Restricted Stock Plan (Summary Of Pre-Tax Compensation Expense) (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Compensation expense | $127,976 | $257,877 |
Performance Based Restricted Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Compensation expense | 72,695 | 99,939 |
Non Performance Based Restricted Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Compensation expense | $55,281 | $157,938 |
Restricted_Stock_Plan_Summary_1
Restricted Stock Plan (Summary Of Unrecognized Compensation Cost) (Details) (USD $) | 3 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation cost | $877,055 |
Performance Based Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation cost | 504,920 |
Weighted Average Period | '1 year 11 months 23 days |
Non Performance Based Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation cost | $372,135 |
Weighted Average Period | '1 year 11 months 12 days |
Oil_And_Natural_Gas_Producing_
Oil And Natural Gas Producing Activities (Details) | 3 Months Ended |
Dec. 31, 2013 | |
Oil And Natural Gas Reserves [Abstract] | ' |
Computation of Oil, Natural Gas and NGL Reserves | '12 months |
Impairment_Details
Impairment (Details) (USD $) | 3 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
Impairment [Abstract] | ' | ' | |
Impairment | $202,991 | $154,965 | [1] |
[1] | At the end of each quarter, the Company assesses the carrying value of its producing properties for impairment. This assessment utilizes estimates of future cash flows. Significant judgments and assumptions in these assessments include estimates of future oil and natural gas prices using a forward NYMEX curve adjusted for locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values. |
Capitalized_Costs_Details
Capitalized Costs (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Capitalized Costs [Abstract] | ' | ' |
Cost of Non-Producing Oil and Natural Gas Properties | $83,174 | $0 |
Exploration_Costs_Details
Exploration Costs (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Exploration Costs [Abstract] | ' | ' |
Lease Expirations and Leasehold Impairments | $24,148 | $13,222 |
Geological and geophysical costs | 14,607 | ' |
Exploratory Dry Hole Expense | ' | $6,545 |
Derivatives_Narrative_Details
Derivatives (Narrative) (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | ||
Derivatives [Abstract] | ' | ' | ||
Net liability | $466,772 | [1] | ' | |
Net asset | ' | $425,198 | [1] | |
[1] | See Fair Value Measurements section for further disclosures regarding fair value of financial instruments. |
Derivatives_Summary_Of_Derivat
Derivatives (Summary Of Derivative Instruments Contracts) (Details) | Dec. 31, 2013 | Sep. 30, 2013 |
MMBTU | MMBTU | |
Natural Gas Costless Collars [Member] | Fixed Price One [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Natural Gas | 160,000 | 80,000 |
Natural Gas Costless Collars [Member] | Fixed Price Two [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Natural Gas | 40,000 | 50,000 |
Natural Gas Costless Collars [Member] | Fixed Price Three [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Natural Gas | 50,000 | 100,000 |
Natural Gas Costless Collars [Member] | Fixed Price Four [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Natural Gas | 80,000 | 160,000 |
Natural Gas Costless Collars [Member] | Fixed Price Five [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Natural Gas | 140,000 | ' |
Natural Gas Fixed Price Swaps [Member] | Fixed Price Five [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Natural Gas | ' | 100,000 |
Contract price | ' | 3.505 |
Natural Gas Fixed Price Swaps [Member] | Fixed Price Six [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Natural Gas | 80,000 | 70,000 |
Contract price | 4.085 | 3.4 |
Natural Gas Fixed Price Swaps [Member] | Fixed Price Seven [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Natural Gas | 140,000 | 40,000 |
Contract price | 4.11 | 3.655 |
Natural Gas Fixed Price Swaps [Member] | Fixed Price Eight [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Natural Gas | 50,000 | 100,000 |
Contract price | 4.2 | 4.32 |
Natural Gas Fixed Price Swaps [Member] | Fixed Price Nine [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Natural Gas | 50,000 | ' |
Contract price | 4.18 | ' |
Natural Gas Fixed Price Swaps [Member] | Fixed Price Ten [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Natural Gas | 50,000 | ' |
Contract price | 4.21 | ' |
Oil costless collars [Member] | Fixed Price Nine [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Oil | ' | 3,000 |
Oil costless collars [Member] | Fixed Price Ten [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Oil | ' | 4,000 |
Oil costless collars [Member] | Fixed Price Eleven [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Oil | 4,000 | 2,000 |
Oil costless collars [Member] | Fixed Price Twelve [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Oil | 4,000 | 4,000 |
Oil costless collars [Member] | Fixed Price Thirteen [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Oil | 3,667 | ' |
Oil Fixed Price Swaps [Member] | Fixed Price Thirteen [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Oil | ' | 4,000 |
Contract price | ' | 105.25 |
Oil Fixed Price Swaps [Member] | Fixed Price Fourteen [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Production volume covered per month - Oil | 3,000 | ' |
Contract price | 94.5 | ' |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price One [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 4 | 3.75 |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Two [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 3.25 | 3.75 |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Three [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 3.5 | 3.75 |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Four [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 3.75 | 4 |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Five [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 3.75 | ' |
Minimum [Member] | Oil costless collars [Member] | Fixed Price Nine [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | ' | 90 |
Minimum [Member] | Oil costless collars [Member] | Fixed Price Ten [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | ' | 90 |
Minimum [Member] | Oil costless collars [Member] | Fixed Price Eleven [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 90 | 90 |
Minimum [Member] | Oil costless collars [Member] | Fixed Price Twelve [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 85 | 90 |
Minimum [Member] | Oil costless collars [Member] | Fixed Price Thirteen [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 85 | ' |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price One [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 4.55 | 4.25 |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Two [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 3.9 | 4.3 |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Three [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 4.3 | 4.05 |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Four [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 4.35 | 4.55 |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Five [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 4.5 | ' |
Maximum [Member] | Oil costless collars [Member] | Fixed Price Nine [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | ' | 102 |
Maximum [Member] | Oil costless collars [Member] | Fixed Price Ten [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | ' | 101.5 |
Maximum [Member] | Oil costless collars [Member] | Fixed Price Eleven [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 101.5 | 97.5 |
Maximum [Member] | Oil costless collars [Member] | Fixed Price Twelve [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 100 | 101.5 |
Maximum [Member] | Oil costless collars [Member] | Fixed Price Thirteen [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Contract price | 99 | ' |
Derivatives_Summary_Of_Derivat1
Derivatives (Summary Of Derivative Contracts) (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | ||
Derivatives [Abstract] | ' | ' | ||
Gross amounts recognized - Current Assets | $116,629 | [1] | $665,099 | [1] |
Gross amounts recognized - Current Liabilities | -583,401 | [1] | -239,901 | [1] |
Net presentation on Condensed Balance - Current Assets | ' | 425,198 | [1] | |
Net presentation on Condensed Balance - Current Liabilities | ($466,772) | [1] | ' | |
[1] | See Fair Value Measurements section for further disclosures regarding fair value of financial instruments. |
Fair_Value_Measurements_Summar
Fair Value Measurements (Summary Of Fair Value Measurement Information For Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $) | Dec. 31, 2013 |
Swap [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Financial Assets (Liabilities) | ($88,536) |
Collars [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Financial Assets (Liabilities) | -378,236 |
Fair Value, Inputs, Level 1 [Member] | Swap [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Financial Assets (Liabilities) | ' |
Fair Value, Inputs, Level 1 [Member] | Collars [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Financial Assets (Liabilities) | ' |
Fair Value, Inputs, Level 2 [Member] | Swap [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Financial Assets (Liabilities) | -88,536 |
Fair Value, Inputs, Level 3 [Member] | Collars [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Financial Assets (Liabilities) | ($378,236) |
Fair_Value_Measurements_Summar1
Fair Value Measurements (Summary Of Unobservable Inputs For Level 3 Fair Value Measurements) (Details) (USD $) | 3 Months Ended |
Dec. 31, 2013 | |
Oil costless collars [Member] | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Unobservable Input | 'Oil price volatility curve |
Weighted Average | 9.26% |
Fair Value | ($177,849) |
Oil costless collars [Member] | Minimum [Member] | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Range | 0.00% |
Oil costless collars [Member] | Maximum [Member] | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Range | 17.35% |
Natural Gas Costless Collars [Member] | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Unobservable Input | 'Natural gas price volatility curve |
Weighted Average | 14.41% |
Fair Value | ($200,387) |
Natural Gas Costless Collars [Member] | Minimum [Member] | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Range | 0.00% |
Natural Gas Costless Collars [Member] | Maximum [Member] | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Range | 24.20% |
Fair_Value_Measurements_Summar2
Fair Value Measurements (Summary Of Reconciliation Of Assets Classified As Level 3 Measurements) (Details) (USD $) | 3 Months Ended |
Dec. 31, 2013 | |
Fair Value Measurements [Abstract] | ' |
Balance of Level 3 as of October 1, 2012 | $242,902 |
Included in earnings | -621,138 |
Included in other comprehensive income (loss) | ' |
Purchases, issuances and settlements | ' |
Transfers in and out of Level 3 | ' |
Balance of Level 3 as of September 30, 2013 | ($378,236) |
Fair_Value_Measurements_Summar3
Fair Value Measurements (Summary Of Impairments Associated With Certain Assets Measured At Fair Value On A Nonrecurring Basis Within Level 3) (Details) (USD $) | 3 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
Fair Value Measurements [Abstract] | ' | ' | |
Producing Properties, Fair Value | $236,199 | $332,220 | |
Producing Properties, Impairment | $202,991 | $154,965 | [1] |
[1] | At the end of each quarter, the Company assesses the carrying value of its producing properties for impairment. This assessment utilizes estimates of future cash flows. Significant judgments and assumptions in these assessments include estimates of future oil and natural gas prices using a forward NYMEX curve adjusted for locational basis differentials, drilling plans, expected capital costs and an applicable discount rate commensurate with risk of the underlying cash flow estimates. These assessments identified certain properties with carrying value in excess of their calculated fair values. |