Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2015 | Feb. 08, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PANHANDLE OIL & GAS INC | |
Entity Central Index Key | 315,131 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 16,578,411 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,503,691 | $ 603,915 |
Oil, NGL and natural gas sales receivables (net of allowance for uncollectable accounts) | 5,540,926 | 7,895,591 |
Refundable income taxes | 345,897 | |
Refundable production taxes | 474,839 | 476,001 |
Derivative contracts, net | 636,114 | 4,210,764 |
Other | 911,340 | 252,016 |
Total current assets | 9,066,910 | 13,784,184 |
Properties and equipment at cost, based on successful efforts accounting: | ||
Producing oil and natural gas properties | 441,316,100 | 441,141,337 |
Non-producing oil and natural gas properties | 7,694,635 | 8,293,997 |
Other | 1,055,935 | 1,393,559 |
Gross properties and equipment, at cost, based on successful efforts accounting | 450,066,670 | 450,828,893 |
Less accumulated depreciation, depletion and amortization | (234,432,151) | (228,036,803) |
Net properties and equipment | 215,634,519 | 222,792,090 |
Investments | 173,423 | 2,248,999 |
Total assets | 224,874,852 | 238,825,273 |
Current liabilities: | ||
Accounts payable | 2,397,076 | 2,028,746 |
Deferred income taxes | 863,100 | 1,517,100 |
Income taxes payable | 1,073,551 | |
Accrued liabilities and other | 1,491,077 | 1,330,901 |
Total current liabilities | 5,824,804 | 4,876,747 |
Long-term debt | 57,000,000 | 65,000,000 |
Deferred income taxes | 36,025,907 | 39,118,907 |
Asset retirement obligations | 2,861,160 | 2,824,944 |
Stockholders' equity: | ||
Class A voting common stock, $.0166 par value; 24,000,000 shares authorized, 16,863,004 issued at December 31, 2015, and September 30, 2015 | 280,938 | 280,938 |
Capital in excess of par value | 2,915,219 | 2,993,119 |
Deferred directors' compensation | 3,170,219 | 3,084,289 |
Retained earnings | 121,309,373 | 125,446,473 |
Stockholders' Equity | 127,675,749 | 131,804,819 |
Less treasury stock, at cost; 284,593 shares at December 31, 2015, and 302,623 shares at September 30, 2015 | (4,512,768) | (4,800,144) |
Total stockholders' equity | 123,162,981 | 127,004,675 |
Total liabilities and stockholders' equity | $ 224,874,852 | $ 238,825,273 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Sep. 30, 2015 |
Condensed Balance Sheets [Abstract] | ||
Common stock, par value | $ 0.0166 | $ 0.0166 |
Common stock, shares authorized | 24,000,000 | 24,000,000 |
Common stock, shares issued | 16,863,004 | 16,863,004 |
Treasury stock, shares | 284,593 | 302,623 |
Condensed Statements Of Operati
Condensed Statements Of Operations - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | ||
Oil, NGL and natural gas sales | $ 9,055,288 | $ 19,519,700 |
Lease bonuses and rentals | 2,425,504 | 29,291 |
Gains (losses) on derivative contracts | (34,936) | 11,250,265 |
Income from partnerships | 16,269 | 199,914 |
Total revenues | 11,462,125 | 30,999,170 |
Costs and expenses: | ||
Lease operating expenses | 3,566,536 | 4,785,350 |
Production taxes | 321,841 | 622,512 |
Exploration costs | 27,790 | 25,352 |
Depreciation, depletion and amortization | 6,957,652 | 6,139,019 |
Provision for impairment | 3,733,273 | 2,191,997 |
Loss (gain) on asset sales and other | (269,706) | (1,982) |
Interest expense | 360,562 | 402,733 |
General and administrative | 1,912,079 | 1,958,428 |
Bad debt expense (recovery) | 19,216 | |
Total costs and expenses | 16,629,243 | 16,123,409 |
Income (loss) before provision (benefit) for income taxes | (5,167,118) | 14,875,761 |
Provision (benefit) for income taxes | (2,368,000) | 4,642,000 |
Net income (loss) | $ (2,799,118) | $ 10,233,761 |
Basic and diluted earnings (loss) per common share (Note 3) | $ (0.17) | $ 0.61 |
Basic and diluted weighted average shares outstanding: | ||
Common shares | 16,563,942 | 16,494,805 |
Unissued, directors' deferred compensation shares | 255,060 | 262,121 |
Basic and diluted weighted average shares outstanding | 16,819,002 | 16,756,926 |
Dividends declared per share of common stock and paid in period | $ 0.04 | $ 0.04 |
Dividends declared per share of common stock and to be paid in quarter ended March 31 | $ 0.04 | $ 0.04 |
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, shares at Sep. 30, 2014 | 16,863,004 | |||||
Balances, Treasury shares at Dec. 31, 2014 | (355,558) | |||||
Balances at Sep. 30, 2014 | $ 280,938 | $ 2,861,343 | $ 3,110,351 | $ 118,794,188 | $ (5,858,167) | $ 119,188,653 |
Purchase of treasury stock | $ (120,611) | (120,611) | ||||
Purchase of treasury stock, shares | (7,177) | |||||
Restricted stock awards | 165,111 | 165,111 | ||||
Net income (loss) | 10,233,761 | 10,233,761 | ||||
Dividends ($.08 per share) | (1,333,023) | (1,333,023) | ||||
Distribution of restricted stock to officers and directors | (436,303) | $ 377,502 | (58,801) | |||
Distribution of restricted stock to officers and directors, shares | 23,983 | |||||
Increase in deferred directors' compensation charged to expense | 101,589 | 101,589 | ||||
Balances, shares at Dec. 31, 2014 | 16,863,004 | |||||
Balances, Treasury shares at Sep. 30, 2014 | (372,364) | |||||
Balances at Dec. 31, 2014 | $ 280,938 | 2,590,151 | 3,211,940 | 127,694,926 | $ (5,601,276) | $ 128,176,679 |
Balances, shares at Sep. 30, 2015 | 16,863,004 | |||||
Balances, Treasury shares at Dec. 31, 2015 | (284,593) | (284,593) | ||||
Balances at Sep. 30, 2015 | $ 280,938 | 2,993,119 | 3,084,289 | 125,446,473 | $ (4,800,144) | $ 127,004,675 |
Purchase of treasury stock | $ (117,165) | (117,165) | ||||
Purchase of treasury stock, shares | (7,477) | |||||
Restricted stock awards | 371,407 | 371,407 | ||||
Net income (loss) | (2,799,118) | (2,799,118) | ||||
Dividends ($.08 per share) | (1,337,982) | (1,337,982) | ||||
Distribution of restricted stock to officers and directors | (449,307) | $ 404,541 | (44,766) | |||
Distribution of restricted stock to officers and directors, shares | 25,507 | |||||
Increase in deferred directors' compensation charged to expense | 85,930 | $ 85,930 | ||||
Balances, shares at Dec. 31, 2015 | 16,863,004 | |||||
Balances, Treasury shares at Sep. 30, 2015 | (302,623) | (302,623) | ||||
Balances at Dec. 31, 2015 | $ 280,938 | $ 2,915,219 | $ 3,170,219 | $ 121,309,373 | $ (4,512,768) | $ 123,162,981 |
Statements Of Stockholders' Eq6
Statements Of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statements Of Stockholders' Equity [Abstract] | ||
Dividends per share | $ 0.08 | $ 0.08 |
Condensed Statements Of Cash Fl
Condensed Statements Of Cash Flows - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities | ||
Net income (loss) | $ (2,799,118) | $ 10,233,761 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 6,957,652 | 6,139,019 |
Impairment | 3,733,273 | 2,191,997 |
Provision for deferred income taxes | (3,747,000) | 1,184,000 |
Exploration costs | 27,790 | 25,352 |
Gain from leasing fee mineral acreage | (2,425,131) | (29,162) |
Net (gain) loss on sales of assets | (271,080) | |
Income from partnerships | (16,269) | (199,914) |
Distributions received from partnerships | 36,253 | 256,017 |
Directors' deferred compensation expense | 85,930 | 101,589 |
Restricted stock awards | 371,407 | 165,111 |
Bad debt expense (recovery) | 19,216 | |
Cash provided (used) by changes in assets and liabilities: | ||
Oil, NGL and natural gas sales receivables | 2,335,449 | 2,672,119 |
Fair value of derivative contracts | 3,574,650 | (10,431,194) |
Refundable production taxes | 1,162 | 13,205 |
Other current assets | (659,324) | 99,085 |
Accounts payable | (484,882) | 565,409 |
Income taxes receivable | 345,897 | |
Income taxes payable | 1,073,551 | 2,891,600 |
Accrued liabilities | (509,208) | (692,505) |
Total adjustments | 10,449,336 | 4,951,728 |
Net cash provided by operating activities | 7,650,218 | 15,185,489 |
Investing Activities | ||
Capital expenditures, including dry hole costs | (1,286,114) | (14,901,631) |
Proceeds from leasing fee mineral acreage | 2,693,812 | 29,798 |
Investments in partnerships | 44,842 | (173,103) |
Proceeds from sales of assets | 627,547 | |
Net cash provided by (used in) investing activities | 2,080,087 | (15,044,936) |
Financing Activities | ||
Borrowings under debt agreement | 2,958,515 | 12,335,774 |
Payments of loan principal | (10,958,515) | (11,620,667) |
Purchases of treasury stock | (117,165) | (120,611) |
Payments of dividends | (668,364) | (666,199) |
Excess tax benefit on stock-based compensation | (45,000) | (59,000) |
Net cash provided by (used in) financing activities | (8,830,529) | (130,703) |
Increase (decrease) in cash and cash equivalents | 899,776 | 9,850 |
Cash and cash equivalents at beginning of period | 603,915 | 509,755 |
Cash and cash equivalents at end of period | 1,503,691 | 519,605 |
Supplemental Schedule of Noncash Investing and Financing Activities: | ||
Dividends declared and unpaid | 669,618 | 666,824 |
Additions to asset retirement obligations | 4,524 | 26,452 |
Gross additions to properties and equipment | 3,455,245 | 13,469,206 |
Net (increase) decrease in accounts payable for properties and equipment additions | (2,169,131) | 1,432,425 |
Capital expenditures and acquisitions, including dry hole costs | $ 1,286,114 | $ 14,901,631 |
Accounting Principles And Basis
Accounting Principles And Basis Of Presentation | 3 Months Ended |
Dec. 31, 2015 | |
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 2015 Annual Report on Form 10-K. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2015 | |
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. Excess percentage depletion, both federal and Oklahoma, can only be taken in the amount that it exceeds cost depletion which is calculated on a unit-of-production basis. 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. Due to the lower expected 2016 oil and natural gas prices, fiscal 2016 percentage depletion is not expected to exceed cost depletion as much as in past years. Therefore, the permanent tax benefit in 2016 is not expected to be as significant as in 2015. 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, when a provision for income taxes is recorded, decreases 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, 2015 , was 46% as compared to 31% for the quarter ended December 31, 2014 . |
Basic And Diluted Earnings (Los
Basic And Diluted Earnings (Loss) Per Share | 3 Months Ended |
Dec. 31, 2015 | |
Basic And Diluted Earnings (Loss) Per Share [Abstract] | |
Basic And Diluted Earnings (Loss) Per Share | NOTE 3: Basic and Diluted Earnings (Loss) per Share Basic and diluted earnings (loss) per share is calculated using net income (loss) divided by the weighted average number of voting common shares outstanding, including unissued, vested directors’ deferred compensation shares during the period. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | NOTE 4: Long-term Debt The Company has a $200,000,000 credit facility with a group of banks headed by Bank of Oklahoma (BOK) with a current borrowing base of $100,000,000 and a maturity date of November 30, 2018 . The credit facility is subject to a semi-annual borrowing base determination, wherein BOK applies their own current commodity pricing forecast and an 8% discount rate to the Company’s proved reserves as calculated by the Company’s Independent Consulting Petroleum Engineering Firm. The facility is secured by certain of the Company’s properties with a net book value of $185,342,249 at December 31, 2015 . 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 BOK prime or LIBOR will be charged based on the ratio of the loan balance to the borrowing base. The interest rate spread from LIBOR or the prime rate increases as a larger percent of the borrowing base is advanced. At December 31, 2015 , the effective interest rate was 2.43% . 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. On December 1 0 , 2015, the borrowing base was adjusted by the banks from $120,000,000 to $100,000,000 . Determinations of the borrowing base are made semi-annually or whenever the banks, in their discretion, believe that there has been a material change in the value of the oil and natural gas properties. The loan agreement contains customary covenants which, among other things, require periodic financial and reserve reporting and place certain limit s on the Company’s incurrence of indebtedness, liens, payment of dividends and acquisitions of treasury stock, and require the Company to maintain certain financial ratios. At December 31, 2015 , the Company was in compliance with the covenants of the loan agreement and has $43,000,000 of availability under its outstanding credit facility . |
Deferred Compensation Plan For
Deferred Compensation Plan For Non-Employee Directors | 3 Months Ended |
Dec. 31, 2015 | |
Deferred Compensation Plan For Non-Employee Directors [Abstract] | |
Deferred Compensation Plan For Non-Employee Directors | NOTE 5: Deferred Compensation Plan for Non-Employee Directors Annually, non-employee directors may elect to be included in the Deferred Compensation Plan for Non-Employee Directors. The Deferred Compensation Plan for Non-Employee Directors provides that each outside director may individually elect to be credited with future unissued shares of Company common stock rather than cash for all or a portion of the annual retainers, Board meeting fees and committee meeting fees, and may elect to receive shares, when issued, over annual time periods up to ten years. These unissued shares are recorded to each director’s deferred compensation account at the closing market price of the shares (i) on the dates of the Board and committee meetings, and (ii) on the payment dates of the annual retainers. Only upon a director’s retirement, termination, death, or a change-in-control of the Company will the shares recorded for such director under the Deferred Compensation Plan for Non-Employee Directors be issued to the director. The promise to issue such shares in the future is an unsecured obligation of the Company . |
Restricted Stock Plan
Restricted Stock Plan | 3 Months Ended |
Dec. 31, 2015 | |
Restricted Stock Plan [Abstract] | |
Restricted Stock Plan | NOTE 6: Restricted Stock Plan In March 2010, shareholders approved the Panhandle Oil and Gas Inc. 2010 Restricted Stock Plan (2010 Stock Plan), which made available 200,000 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. In March 2014, shareholders approved an amendment to increase the number of shares of common stock reserved for issuance under the 2010 Stock Plan from 200,000 shares to 500,000 shares and to allow the grant of shares of restricted stock to our directors. The 2010 Stock Plan, as amended, 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 directors and officers of the Company and to align their interests with those of the Company’s shareholders. Effective in May 2014, the board of directors adopted resolutions to allow management, at their discretion, to purchase the Company’s common stock up to an amount equal to the aggregate number of shares of common stock awarded pursuant to the Company’s Amended 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 9 , 2015, the Company awarded 13,482 non-performance based shares and 40,446 performance based shares of the Company’s common stock as restricted stock to certain officers. The restricted stock vests at the end of a three year period 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 $223,397 and $376,915 , respectively. The Company recognized $211,363 of compensation expense on the award date for performance based shares for officers that were eligible for retirement. The remaining fair value for the performance based awards as well as the entire fair value of the non-performance based awards 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 prices as compared to the Dow Jones Select Oil Exploration and Production Index (DJSOEP) prices utilizing a Monte Carlo model covering the performance period (December 9 , 201 5 , through December 9 , 201 8 ). On December 31 , 2015, the Company awarded 12,996 non-performance based shares of the Company’s common stock as restricted stock to its non-employee directors. The restricted stock vests quarterly over one year starting on March 31, 201 6 . The restricted stock contains nonforfeitable rights to receive dividends and voting rights during the vesting period. These non-performance based shares had a fair value on their award date of $210,018 . The following table summarizes the Company’s pre-tax compensation expense for the three months ended December 31, 2015 and 2014 , related to the Company’s performance based and non-performance based restricted stock. Three Months Ended December 31, 2015 2014 Performance based, restricted stock $ 269,510 $ 64,174 Non-performance based, restricted stock 101,897 100,937 Total compensation expense $ 371,407 $ 165,111 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, 2015 Unrecognized Compensation Cost Weighted Average Period (in years) Performance based, restricted stock $ 329,001 2.28 Non-performance based, restricted stock 593,336 1.91 Total $ 922,337 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, 2015 | |
Oil, NGL 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 retirement of assets 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, 2015 | |
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 drilling and completion costs; 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 to reflect any material changes since the prior report was issued and then utiliz es updated projected future price decks current with the period. For the three months ended December 31, 2015 and 2014 , the assessment resulted in impairment provisions of $3,733,273 and $2,191,997 , respectively. The impairment provision for the three months ended December 31, 2015 , is principally the result of lower projected future prices for oil, NGL and natural gas. A further reduction in oil, NGL and natural gas prices or a decline in reserve volumes may lead to additional impairment in future periods that may be material to the Company. |
Capitalized Costs
Capitalized Costs | 3 Months Ended |
Dec. 31, 2015 | |
Capitalized Costs [Abstract] | |
Capitalized Costs | NOTE 9: Capitalized Costs As of December 31, 2015 and 2014 , non-producing oil and natural gas properties include costs of $14,520 and $908,872 , respectively, on exploratory wells which were drilling and/or testing. |
Derivatives
Derivatives | 3 Months Ended |
Dec. 31, 2015 | |
Derivatives [Abstract] | |
Derivatives | NOTE 10: Derivatives The Company has entered into commodity price derivative agreements including 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 under its credit facility with Bank of Oklahoma. The derivative instruments have settled or will settle based on the prices below. Derivative contracts in place as of December 31, 2015 Production volume Contract period covered per month Index Contract price Natural gas costless collars December 2015 - May 2016 80,000 Mmbtu NYMEX Henry Hub $2.50 floor / $3.10 ceiling January - September 2016 80,000 Mmbtu NYMEX Henry Hub $2.15 floor / $2.50 ceiling April - October 2016 200,000 Mmbtu NYMEX Henry Hub $1.95 floor / $2.40 ceiling January - March 2016 100,000 Mmbtu NYMEX Henry Hub $1.75 floor / $1.90 ceiling February - March 2016 100,000 Mmbtu NYMEX Henry Hub $2.00 floor / $2.60 ceiling June - September 2016 80,000 Mmbtu NYMEX Henry Hub $2.15 floor / $2.90 ceiling Natural gas fixed price swaps January - September 2016 80,000 Mmbtu NYMEX Henry Hub $2.43 Derivative contracts in place as of September 30, 2015 Production volume Contract period covered per month Index Contract price Natural gas costless collars January - December 2015 100,000 Mmbtu NYMEX Henry Hub $3.50 floor / $4.10 ceiling January - December 2015 70,000 Mmbtu NYMEX Henry Hub $3.25 floor / $4.00 ceiling April - October 2015 50,000 Mmbtu NYMEX Henry Hub $3.50 floor / $4.00 ceiling May - October 2015 70,000 Mmbtu NYMEX Henry Hub $3.50 floor / $3.95 ceiling Oil costless collars July - December 2015 10,000 Bbls NYMEX WTI $80.00 floor / $86.50 ceiling Oil fixed price swaps April - December 2015 5,000 Bbls NYMEX WTI $94.56 July - December 2015 7,000 Bbls NYMEX WTI $93.91 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 asset of $636,114 as of December 31, 2015 , and a net asset of $4,210,764 as of September 30, 2015 . 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 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, 2015 , and September 30, 2015 . The Company has offset all amounts subject to master netting agreements in the Company's Condensed Balance Sheets at December 31, 2015 , and September 30, 2015 . December 31, 2015 September 30, 2015 Fair Value (a) Fair Value (a) Commodity Contracts Commodity Contracts Current Assets Current Liabilities Current Assets Gross amounts recognized $ 1,196,007 $ 559,893 $ 4,210,764 Offsetting adjustments (559,893) (559,893) - Net presentation on Condensed Balance Sheets $ 636,114 $ - $ 4,210,764 (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, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | NOTE 11: 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, 2015 . Fair Value Measurement at December 31, 2015 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 $ - $ 679,841 $ - $ 679,841 Derivative Contracts - Collars $ - $ - $ (43,727) $ (43,727) Level 2 – Market Approach - T he fair values of the Company’s 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 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 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 31, 2015 Oil Collars Oil price volatility curve 0.00% 0.00% $ 426,727 Natural Gas Collars Natural gas price volatility curve 0% - 28.26% 17.97% $ (470,454) 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, 2015 $ 1,891,249 Total gains or (losses) Included in earnings (3,700,316) Included in other comprehensive income (loss) - Purchases, issuances and settlements 1,765,340 Transfers in and out of Level 3 - Balance of Level 3 as of December 31, 2015 $ (43,727) 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, 2015 2014 Fair Value Impairment Fair Value Impairment Producing Properties (a) $ 3,152,454 $ 3,733,273 $ 2,322,760 $ 2,191,997 (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, 2015 , and September 30, 2015 , 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 Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2015 | |
Recently Issued Accounting Pronouncements [Abstract] | |
Recently Issued Accounting Pronouncements | NOTE 1 2 : Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09-Revenue from Contracts with Customers, which will supersede nearly all existing revenue recognition guidance under GAAP. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. We are evaluating our existing revenue recognition policies to determine whether any contracts in the scope of the guidance will be affected by the new requirements. The standard is effective for us on October 1, 2018. Early adoption is not permitted. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presente d in the financial statements. We are currently evaluating the transition method that will be elected. In April 2015, the FASB issued an accounting standards update on the presentation of debt issuance costs. The update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected by the update. For public entities, the guidance is effective for reporting periods beginning after December 15, 2015, and it is not expected to have a material impact on our financial statements. In August 2015, the FASB issued an accounting standards update which allows for line-of-credit arrangements to be handled consistently with the presentation of debt issuance costs update issued in April 2015. For public entities, the guidance is effective for reporting periods beginning after December 15, 2015, and it is not expected to have a material impact on our financial statements. In November 2015, the FASB issued an accounting standards update on the presentation of deferred income tax assets and liabilities. The update requires that deferred income tax assets and liabilities be classified as noncurrent in the balance sheet. For public entities, the guidance is effective for reporting periods beginning after December 15, 2016, including interim periods within those fiscal years. This update is not expected to have a material impact on our financial statements. In January 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The new guidance is intended to improve the recognition and measurement of financial instruments. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. 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, 2015 | |
Restricted Stock Plan [Abstract] | |
Summary Of Pre-Tax Compensation Expense | Three Months Ended December 31, 2015 2014 Performance based, restricted stock $ 269,510 $ 64,174 Non-performance based, restricted stock 101,897 100,937 Total compensation expense $ 371,407 $ 165,111 |
Summary Of Unrecognized Compensation Cost | As of December 31, 2015 Unrecognized Compensation Cost Weighted Average Period (in years) Performance based, restricted stock $ 329,001 2.28 Non-performance based, restricted stock 593,336 1.91 Total $ 922,337 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Dec. 31, 2015 | |
Derivatives [Abstract] | |
Summary Of Derivative Instruments Contracts | Derivative contracts in place as of December 31, 2015 Production volume Contract period covered per month Index Contract price Natural gas costless collars December 2015 - May 2016 80,000 Mmbtu NYMEX Henry Hub $2.50 floor / $3.10 ceiling January - September 2016 80,000 Mmbtu NYMEX Henry Hub $2.15 floor / $2.50 ceiling April - October 2016 200,000 Mmbtu NYMEX Henry Hub $1.95 floor / $2.40 ceiling January - March 2016 100,000 Mmbtu NYMEX Henry Hub $1.75 floor / $1.90 ceiling February - March 2016 100,000 Mmbtu NYMEX Henry Hub $2.00 floor / $2.60 ceiling June - September 2016 80,000 Mmbtu NYMEX Henry Hub $2.15 floor / $2.90 ceiling Natural gas fixed price swaps January - September 2016 80,000 Mmbtu NYMEX Henry Hub $2.43 Derivative contracts in place as of September 30, 2015 Production volume Contract period covered per month Index Contract price Natural gas costless collars January - December 2015 100,000 Mmbtu NYMEX Henry Hub $3.50 floor / $4.10 ceiling January - December 2015 70,000 Mmbtu NYMEX Henry Hub $3.25 floor / $4.00 ceiling April - October 2015 50,000 Mmbtu NYMEX Henry Hub $3.50 floor / $4.00 ceiling May - October 2015 70,000 Mmbtu NYMEX Henry Hub $3.50 floor / $3.95 ceiling Oil costless collars July - December 2015 10,000 Bbls NYMEX WTI $80.00 floor / $86.50 ceiling Oil fixed price swaps April - December 2015 5,000 Bbls NYMEX WTI $94.56 July - December 2015 7,000 Bbls NYMEX WTI $93.91 |
Summary Of Derivative Contracts | December 31, 2015 September 30, 2015 Fair Value (a) Fair Value (a) Commodity Contracts Commodity Contracts Current Assets Current Liabilities Current Assets Gross amounts recognized $ 1,196,007 $ 559,893 $ 4,210,764 Offsetting adjustments (559,893) (559,893) - Net presentation on Condensed Balance Sheets $ 636,114 $ - $ 4,210,764 (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, 2015 | |
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, 2015 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 $ - $ 679,841 $ - $ 679,841 Derivative Contracts - Collars $ - $ - $ (43,727) $ (43,727) |
Summary Of Unobservable Inputs For Level 3 Fair Value Measurements | Instrument Type Unobservable Input Range Weighted Average Fair Value December 31, 2015 Oil Collars Oil price volatility curve 0.00% 0.00% $ 426,727 Natural Gas Collars Natural gas price volatility curve 0% - 28.26% 17.97% $ (470,454) |
Summary Of Reconciliation Of Derivative Contracts Classified As Level 3 Measurements | Derivatives Balance of Level 3 as of October 1, 2015 $ 1,891,249 Total gains or (losses) Included in earnings (3,700,316) Included in other comprehensive income (loss) - Purchases, issuances and settlements 1,765,340 Transfers in and out of Level 3 - Balance of Level 3 as of December 31, 2015 $ (43,727) |
Summary Of Impairments Associated With Certain Assets Measured At Fair Value On A Nonrecurring Basis Within Level 3 | Quarter Ended December 31, 2015 2014 Fair Value Impairment Fair Value Impairment Producing Properties (a) $ 3,152,454 $ 3,733,273 $ 2,322,760 $ 2,191,997 (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. |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | ||
Effective tax rate | 46.00% | 31.00% |
Long-Term Debt (Details)
Long-Term Debt (Details) - Revolving Credit Facility [Member] - USD ($) | 3 Months Ended | ||
Dec. 31, 2015 | Dec. 10, 2015 | Dec. 09, 2015 | |
Line Of Credit Facility [Line Items] | |||
Revolving loan credit facility | $ 200,000,000 | ||
Discount rate | 8.00% | ||
Borrowing base of credit facility | $ 100,000,000 | $ 100,000,000 | $ 120,000,000 |
Properties net book value | $ 185,342,249 | ||
Credit facility maturity | Nov. 30, 2018 | ||
Effective Interest rate | 2.43% | ||
Availability under outstanding credit facility | $ 43,000,000 | ||
Minimum [Member] | Prime Rate [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate basis | 0.375% | ||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate basis | 1.875% | ||
Maximum [Member] | Prime Rate [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate basis | 1.125% | ||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate basis | 2.625% |
Deferred Compensation Plan Fo25
Deferred Compensation Plan For Non-Employee Directors (Details) | 3 Months Ended |
Dec. 31, 2015 | |
Maximum [Member] | |
Deferred Compensation Plan For Directors [Line Items] | |
Period outside directors may elect to receive shares | 10 years |
Restricted Stock Plan (Narrativ
Restricted Stock Plan (Narrative) (Details) - USD ($) | Dec. 09, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 05, 2014 | Mar. 11, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 371,407 | $ 165,111 | |||
Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock vesting period | 3 years | ||||
Non Employee Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted Stock vesting period | 1 year | ||||
2010 Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock authorized | 500,000 | 200,000 | |||
Non Performance Based Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 101,897 | 100,937 | |||
Non Performance Based Restricted Stock [Member] | Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares awarded | 13,482 | ||||
Fair value of shares awarded | $ 223,397 | ||||
Non Performance Based Restricted Stock [Member] | Non Employee Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares awarded | 12,996 | ||||
Fair value of shares awarded | $ 210,018 | ||||
Performance Based Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 269,510 | $ 64,174 | |||
Performance Based Restricted Stock [Member] | Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares awarded | 40,446 | ||||
Fair value of shares awarded | $ 376,915 | ||||
Compensation expense | $ 211,363 |
Restricted Stock Plan (Summary
Restricted Stock Plan (Summary Of Pre-Tax Compensation Expense) (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 371,407 | $ 165,111 |
Performance Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 269,510 | 64,174 |
Non Performance Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 101,897 | $ 100,937 |
Restricted Stock Plan (Summar28
Restricted Stock Plan (Summary Of Unrecognized Compensation Cost) (Details) | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 922,337 |
Performance Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 329,001 |
Weighted Average Period | 2 years 3 months 11 days |
Non Performance Based Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 593,336 |
Weighted Average Period | 1 year 10 months 28 days |
Oil, NGL And Natural Gas Rese29
Oil, NGL And Natural Gas Reserves (Details) | 3 Months Ended |
Dec. 31, 2015 | |
Oil, NGL 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, 2015 | Dec. 31, 2014 | |
Impairment [Abstract] | ||
Impairment | $ 3,733,273 | $ 2,191,997 |
Capitalized Costs (Details)
Capitalized Costs (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Capitalized Costs [Abstract] | ||
Cost of Non-Producing Oil and Natural Gas Properties | $ 14,520 | $ 908,872 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 |
Derivatives [Abstract] | ||
Fair value of derivative contracts, Asset | $ 636,114 | $ 4,210,764 |
Derivatives (Summary Of Derivat
Derivatives (Summary Of Derivative Instruments Contracts) (Details) | Dec. 31, 2015MMBTU$ / MMBTU | Sep. 30, 2015MMBTU$ / MMBTU$ / bblbbl |
Natural Gas Costless Collars [Member] | Fixed Price One [Member] | ||
Derivative [Line Items] | ||
Production volume covered per month - Natural Gas | MMBTU | 80,000 | |
Natural Gas Costless Collars [Member] | Fixed Price Two [Member] | ||
Derivative [Line Items] | ||
Production volume covered per month - Natural Gas | MMBTU | 80,000 | |
Natural Gas Costless Collars [Member] | Fixed Price Three [Member] | ||
Derivative [Line Items] | ||
Production volume covered per month - Natural Gas | MMBTU | 200,000 | |
Natural Gas Costless Collars [Member] | Fixed Price Four [Member] | ||
Derivative [Line Items] | ||
Production volume covered per month - Natural Gas | MMBTU | 100,000 | |
Natural Gas Costless Collars [Member] | Fixed Price Five [Member] | ||
Derivative [Line Items] | ||
Production volume covered per month - Natural Gas | MMBTU | 100,000 | |
Natural Gas Costless Collars [Member] | Fixed Price Six [Member] | ||
Derivative [Line Items] | ||
Production volume covered per month - Natural Gas | MMBTU | 80,000 | |
Natural Gas Costless Collars [Member] | Fixed Price Eight [Member] | ||
Derivative [Line Items] | ||
Production volume covered per month - Natural Gas | MMBTU | 100,000 | |
Natural Gas Costless Collars [Member] | Fixed Price Nine [Member] | ||
Derivative [Line Items] | ||
Production volume covered per month - Natural Gas | MMBTU | 70,000 | |
Natural Gas Costless Collars [Member] | Fixed Price Ten [Member] | ||
Derivative [Line Items] | ||
Production volume covered per month - Natural Gas | MMBTU | 50,000 | |
Natural Gas Costless Collars [Member] | Fixed Price Eleven [Member] | ||
Derivative [Line Items] | ||
Production volume covered per month - Natural Gas | MMBTU | 70,000 | |
Natural Gas Fixed Price Swaps [Member] | Fixed Price Seven [Member] | ||
Derivative [Line Items] | ||
Production volume covered per month - Natural Gas | MMBTU | 80,000 | |
Contract price | 2.43 | |
Oil Costless Collars [Member] | Fixed Price Twelve [Member] | ||
Derivative [Line Items] | ||
Production volume covered per month - Oil | bbl | 10,000 | |
Oil Fixed Price Swaps [Member] | Fixed Price Thirteen [Member] | ||
Derivative [Line Items] | ||
Production volume covered per month - Oil | bbl | 5,000 | |
Contract price | $ / bbl | 94.56 | |
Oil Fixed Price Swaps [Member] | Fixed Price Fourteen [Member] | ||
Derivative [Line Items] | ||
Production volume covered per month - Oil | bbl | 7,000 | |
Contract price | $ / bbl | 93.91 | |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price One [Member] | ||
Derivative [Line Items] | ||
Contract price | 2.50 | |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Two [Member] | ||
Derivative [Line Items] | ||
Contract price | 2.15 | |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Three [Member] | ||
Derivative [Line Items] | ||
Contract price | 1.95 | |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Four [Member] | ||
Derivative [Line Items] | ||
Contract price | 1.75 | |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Five [Member] | ||
Derivative [Line Items] | ||
Contract price | 2 | |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Six [Member] | ||
Derivative [Line Items] | ||
Contract price | 2.15 | |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Eight [Member] | ||
Derivative [Line Items] | ||
Contract price | 3.50 | |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Nine [Member] | ||
Derivative [Line Items] | ||
Contract price | 3.25 | |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Ten [Member] | ||
Derivative [Line Items] | ||
Contract price | 3.50 | |
Minimum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Eleven [Member] | ||
Derivative [Line Items] | ||
Contract price | 3.50 | |
Minimum [Member] | Oil Costless Collars [Member] | Fixed Price Twelve [Member] | ||
Derivative [Line Items] | ||
Contract price | $ / bbl | 80 | |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price One [Member] | ||
Derivative [Line Items] | ||
Contract price | 3.10 | |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Two [Member] | ||
Derivative [Line Items] | ||
Contract price | 2.50 | |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Three [Member] | ||
Derivative [Line Items] | ||
Contract price | 2.40 | |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Four [Member] | ||
Derivative [Line Items] | ||
Contract price | 1.90 | |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Five [Member] | ||
Derivative [Line Items] | ||
Contract price | 2.60 | |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Six [Member] | ||
Derivative [Line Items] | ||
Contract price | 2.90 | |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Eight [Member] | ||
Derivative [Line Items] | ||
Contract price | 4.10 | |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Nine [Member] | ||
Derivative [Line Items] | ||
Contract price | 4 | |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Ten [Member] | ||
Derivative [Line Items] | ||
Contract price | 4 | |
Maximum [Member] | Natural Gas Costless Collars [Member] | Fixed Price Eleven [Member] | ||
Derivative [Line Items] | ||
Contract price | 3.95 | |
Maximum [Member] | Oil Costless Collars [Member] | Fixed Price Twelve [Member] | ||
Derivative [Line Items] | ||
Contract price | $ / bbl | 86.50 |
Derivatives (Summary Of Deriv34
Derivatives (Summary Of Derivative Contracts) (Details) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 |
Derivatives [Abstract] | ||
Gross amounts recognized - Current Assets | $ 1,196,007 | $ 4,210,764 |
Offsetting adjustments - Current Assets | (559,893) | |
Net presentation on Condensed Balance - Current Assets | 636,114 | $ 4,210,764 |
Gross amounts recognized - Current Liabilities | 559,893 | |
Offsetting adjustments - Current Liabilities | $ (559,893) | |
Net presentation on Condensed Balance - Current Liabilities |
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, 2015 | Sep. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets (Liabilities) | $ 636,114 | $ 4,210,764 |
Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets (Liabilities) | 679,841 | |
Collars [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets (Liabilities) | $ (43,727) | |
Quoted Prices In Active Markets (Level 1) [Member] | Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets (Liabilities) | ||
Quoted Prices In Active Markets (Level 1) [Member] | Collars [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets (Liabilities) | ||
Significant Other Observable Inputs (Level 2) [Member] | Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets (Liabilities) | $ 679,841 | |
Significant Unobservable Inputs (Level 3) [Member] | Collars [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial Assets (Liabilities) | $ (43,727) |
Fair Value Measurements (Summ36
Fair Value Measurements (Summary Of Unobservable Inputs For Level 3 Fair Value Measurements) (Details) | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Oil Costless Collars [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Unobservable Input | Oil price volatility curve |
Weighted Average | 0.00% |
Fair Value | $ 426,727 |
Oil Costless Collars [Member] | Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Range | 0.00% |
Natural Gas Costless Collars [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Unobservable Input | Natural gas price volatility curve |
Weighted Average | 17.97% |
Fair Value | $ (470,454) |
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 | 28.26% |
Fair Value Measurements (Summ37
Fair Value Measurements (Summary Of Reconciliation Of Derivative Contracts Classified As Level 3 Measurements) (Details) | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Fair Value Measurements [Abstract] | |
Balance of Level 3 as of October 1, 2015 | $ 1,891,249 |
Total gains or (losses) included in earnings | $ (3,700,316) |
Total gains or (losses) included in other comprehensive income (loss) | |
Purchases, issuances and settlements | $ 1,765,340 |
Transfers in and out of Level 3 | |
Balance of Level 3 as of December 31, 2015 | $ (43,727) |
Fair Value Measurements (Summ38
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, 2015 | Dec. 31, 2014 | |
Fair Value Measurements [Abstract] | ||
Producing Properties, Fair Value | $ 3,152,454 | $ 2,322,760 |
Producing Properties, Impairment | $ 3,733,273 | $ 2,191,997 |