Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'PYRAMID OIL CO | ' | ' |
Entity Central Index Key | '0000081318 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Trading Symbol | 'PDO | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 4,688,085 | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $12,991,000 |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $4,404,246 | $3,834,097 |
Restricted cash | 967,329 | 0 |
Short-term investments | 2,140,822 | 2,135,709 |
Trade accounts receivable (net of reserve for doubtful accounts of $4,000 in 2013 and 2012) | 484,468 | 375,090 |
Income taxes receivable | 12,400 | 73,069 |
Crude oil inventory | 102,334 | 82,180 |
Prepaid expenses and other assets | 249,030 | 257,370 |
Deferred Income taxes | 711,800 | 264,400 |
TOTAL CURRENT ASSETS | 9,072,429 | 7,021,915 |
PROPERTY AND EQUIPMENT, at cost: | ' | ' |
Oil and gas properties and equipment (successful efforts method) | 19,883,190 | 20,007,453 |
Capitalized asset retirement costs | 412,612 | 425,978 |
Drilling and operating equipment | 2,058,744 | 1,966,750 |
Land, buildings and improvements | 1,098,918 | 1,098,918 |
Automotive, office and other property and equipment | 1,136,566 | 1,202,544 |
Property, Plant and Equipment, Gross, Total | 24,590,030 | 24,701,643 |
Less - accumulated depletion, depreciation, amortization and valuation allowances | -21,335,914 | -20,953,324 |
TOTAL PROPERTY AND EQUIPMENT | 3,254,116 | 3,748,319 |
OTHER ASSETS | ' | ' |
Long-term investments | 1,131,707 | 1,101,526 |
Deferred income taxes | 459,900 | 621,800 |
Deposits | 250,000 | 250,000 |
Other assets | 11,380 | 17,380 |
TOTAL OTHER ASSETS | 1,852,987 | 1,990,706 |
TOTAL ASSETS | 14,179,532 | 12,760,940 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 290,930 | 226,759 |
Accrued professional fees | 140,711 | 120,000 |
Accrued taxes, other than income taxes | 54,444 | 70,407 |
Accrued payroll and related costs | 40,932 | 58,954 |
Accrued royalties payable | 226,502 | 204,509 |
Accrued insurance | 113,480 | 94,116 |
Liability for deferred compensation | 1,026,655 | 0 |
TOTAL CURRENT LIABILITIES | 1,893,654 | 774,745 |
LIABILITY FOR ASSET RETIREMENT OBLIGATIONS | 1,305,862 | 1,327,861 |
TOTAL LIABILITIES | 3,199,516 | 2,102,606 |
COMMITMENTS AND CONTINGENCIES (Note 7) | ' | ' |
SHAREHOLDERS’ EQUITY: | ' | ' |
Preferred stock, no par value Authorized - 10,000,000 shares Issued and outstanding - none | 0 | 0 |
Common stock, no par value (Note 11, 12 and 13) Authorized - 50,000,000 shares Issued and outstanding - 4,688,085 shares at December 31, 2013 and December 31, 2012 | 1,847,384 | 1,682,971 |
Retained earnings | 9,132,632 | 8,975,363 |
TOTAL SHAREHOLDERS' EQUITY | 10,980,016 | 10,658,334 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $14,179,532 | $12,760,940 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS [Parenthetical] (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Reserve for doubtful accounts | $4,000 | $4,000 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares Issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, shares, Issued | 4,688,085 | 4,688,085 |
Common stock, shares outstanding | 4,688,085 | 4,688,085 |
STATEMENTS_OF_OPERATIONS
STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
REVENUES: | ' | ' | ' |
Oil and gas sales | $4,391,824 | $4,995,327 | $5,688,437 |
Gain on sales of property and equipment | 809,476 | 0 | 1,512 |
Oil and Gas Revenue Including Gain On Fixed Assets | 5,201,300 | 4,995,327 | 5,689,949 |
COSTS AND EXPENSES: | ' | ' | ' |
Operating expenses | 1,978,468 | 1,942,754 | 1,789,569 |
General and administrative | 1,080,162 | 842,037 | 879,779 |
Deferred compensation | 1,063,445 | 0 | 0 |
Stock based compensation | 164,413 | 0 | 43,743 |
Taxes, other than income and payroll taxes | 130,297 | 160,144 | 137,163 |
Provision for depletion, depreciation, and amortization | 507,157 | 649,559 | 735,231 |
Valuation allowances | 151,243 | 237,711 | 751,263 |
Accretion expense | 37,477 | 38,341 | 45,314 |
Other costs and expenses | 165,533 | 149,717 | 147,330 |
Operating Expenses | 5,278,195 | 4,020,263 | 4,529,392 |
OPERATING INCOME (LOSS) | -76,895 | 975,064 | 1,160,557 |
OTHER INCOME (EXPENSE): | ' | ' | ' |
Interest income | 40,519 | 42,943 | 49,863 |
Other income | 0 | 450 | 500 |
Interest expense | 0 | -1,091 | -3,020 |
Nonoperating Income (Expense) | 40,519 | 42,302 | 47,343 |
INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT) | -36,376 | 1,017,366 | 1,207,900 |
Income tax expense (benefit) | ' | ' | ' |
Current | 91,855 | 81,921 | 203,203 |
Deferred | -285,500 | 157,900 | -90,500 |
Income Tax Expense (Benefit) | -193,645 | 239,821 | 112,703 |
NET INCOME | $157,269 | $777,545 | $1,095,197 |
BASIC AND DILUTED INCOME PER COMMON SHARE (in dollars per share) | $0.03 | $0.17 | $0.23 |
Basic and diluted average number of common shares outstanding (in shares) | 4,688,085 | 4,685,859 | 4,687,580 |
STATEMENTS_OF_SHAREHOLDERS_EQU
STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Retained Earnings [Member] |
Balances at Dec. 31, 2010 | $8,741,849 | $1,639,228 | $7,102,621 |
Balances (in shares) at Dec. 31, 2010 | ' | 4,677,728 | ' |
Stock based compensation | 43,743 | 43,743 | ' |
Shares issued on exercise of options (in shares) | ' | 6,125 | ' |
Net income | 1,095,197 | ' | 1,095,197 |
Balances at Dec. 31, 2011 | 9,880,789 | 1,682,971 | 8,197,818 |
Balances (in shares) at Dec. 31, 2011 | ' | 4,683,853 | ' |
Shares issued on exercise of options (in shares) | ' | 4,232 | ' |
Net income | 777,545 | ' | 777,545 |
Balances at Dec. 31, 2012 | 10,658,334 | 1,682,971 | 8,975,363 |
Balances (in shares) at Dec. 31, 2012 | ' | 4,688,085 | ' |
Stock based compensation | 164,413 | 164,413 | ' |
Net income | 157,269 | ' | 157,269 |
Balances at Dec. 31, 2013 | $10,980,016 | $1,847,384 | $9,132,632 |
Balances (in shares) at Dec. 31, 2013 | ' | 4,688,085 | ' |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $157,269 | $777,545 | $1,095,197 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Provision for depletion, depreciation, and amortization | 507,157 | 649,559 | 735,231 |
Valuation allowances | 151,243 | 237,711 | 751,263 |
Accretion expense | 37,477 | 38,341 | 45,314 |
Gain on sale of property and equipment | -809,476 | 0 | -1,512 |
Stock based compensation | 164,413 | 0 | 43,743 |
Deferred income taxes | -285,500 | 157,900 | -90,500 |
Asset retirement obligations | 0 | 10,631 | -1,618 |
Loss on disposal of fixed assets | 30,790 | 0 | 0 |
Deferred compensation | 1,026,655 | 0 | 0 |
Changes in operating assets and liabilities: | ' | ' | ' |
(Increase) decrease in trade accounts and interest receivable | -48,709 | 128,505 | -68,207 |
(Increase) decrease in crude oil inventory | -20,154 | 35,976 | -31,795 |
Decrease (increase) in prepaid expenses | 8,340 | -1,523 | -24,970 |
Decrease (increase) in other assets | 6,000 | 0 | -10,000 |
Increase in accounts payable and accrued liabilities | 92,254 | 107,300 | 55,099 |
Net cash provided by operating activities | 1,017,759 | 2,141,945 | 2,497,245 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Capital expenditures | -194,987 | -979,038 | -1,163,961 |
Payments to acquire short-term investments | 0 | 0 | -100,000 |
(Increase) in short-term investments | -5,113 | -7,329 | -11,655 |
(Increase) in long-term investments | -30,181 | -29,542 | -30,181 |
Restricted cash | -967,329 | 0 | 0 |
Proceeds from sale of property and equipment | 750,000 | 0 | 21,500 |
Net cash used in investing activities | -447,610 | -1,015,909 | -1,284,297 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from issuance of long-term debt | 0 | 0 | 55,979 |
Principal payments on long-term debt | 0 | -54,615 | -41,783 |
Net cash (used in) provided by financing activities | 0 | -54,615 | 14,196 |
Net increase in cash and cash equivalents | 570,149 | 1,071,421 | 1,227,144 |
Cash and cash equivalents at beginning of year | 3,834,097 | 2,762,676 | 1,535,532 |
Cash and cash equivalents at end of year | 4,404,246 | 3,834,097 | 2,762,676 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' | ' |
Cash paid during the year for interest | 0 | 1,091 | 3,020 |
Cash paid during the year for income taxes | $48,800 | $133,821 | $216,874 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Significant Accounting Policies [Text Block] | ' | |||
1. Significant Accounting Policies | ||||
Nature of Operations | ||||
Pyramid Oil Company (the “Company”), a California Corporation, has been in the oil and gas business continuously for 103 years since it was incorporated on October 9, 1909. The Company is in the business of exploration, development and production of crude oil and natural gas. The Company operated and has interests in 28 oil and gas leases in Kern and Santa Barbara Counties in the State of California. The Company also owns oil and gas interests in Wyoming, Texas and New York that it does not operate. The Company grants short-term credit to its customers and generally receives payment within 30 days. | ||||
Use of Estimates | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents principally consist of demand deposits and certificates of deposits having original maturities of three months or less. At December 31, 2013, the Company had approximately $3,813,898 of cash and cash equivalents that were not fully insured by the FDIC. | ||||
Investments | ||||
Investments consist of certificates of deposit having original maturities of three months or more and are valued at cost. | ||||
Inventory | ||||
Inventories of crude oil and condensate are valued at the lower of cost, predominately on a first-in, first-out (FIFO) basis, or market, and include certain costs directly related to the production process. | ||||
Deposits | ||||
In April 2004, the Company replaced its state of California oil and gas blanket performance surety bond, with a cash bond in the form of an irrevocable certificate of deposit in the amount of $250,000. | ||||
Costs Incurred in Oil and Gas Producing Activities | ||||
The Company has adopted the “successful efforts” method of accounting for its oil and gas exploration and development activities, as set forth in FASB ASC Topic No. 932. | ||||
The Company initially capitalizes expenditures for oil and gas property acquisitions until they are either determined to be successful (capable of commercial production) or unsuccessful. The carrying value of all undeveloped oil and gas properties is evaluated periodically and reduced if such carrying value appears to have been impaired. Leasehold costs relating to successful oil and gas properties remain capitalized while leasehold costs which have been proven unsuccessful are charged to operations in the period the leasehold costs are proven unsuccessful. Costs of carrying and retaining unproved properties are expensed as incurred. | ||||
The costs of drilling and equipping development wells are capitalized, whether the wells are successful or unsuccessful. The costs of drilling and equipping exploratory wells are capitalized until they are determined to be either successful or unsuccessful. If the wells are successful, the costs of the wells remain capitalized. If, however, the wells are unsuccessful, the capitalized costs of drilling the wells, net of any salvage value, are charged to operations in the period the wells are determined to be unsuccessful. | ||||
The Company adopted FASB ASC Topic No. 360-10-15, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of” (the Statement). The Statement specifies when an impairment loss should be recognized and how impairment losses should be measured for long-lived assets to be held and used and for long-lived assets to be disposed of. In accordance with the Statement, the costs of proved oil and gas properties and equipment are periodically assessed on a lease by lease basis to determine if such costs exceed undiscounted future cash flows, and if conditions warrant an impairment reserve will be provided based on the estimated future discounted cash flows. The Company recorded an impairment reserve of $151,243, $237,711 and $751,263 at December 31, 2013, 2012 and 2011, respectively (see Note 6). The accumulated impairment reserve was $4,988,758 and $4,980,931 at December 31, 2013 and 2012, respectively. | ||||
Joint Venture Investments | ||||
The Company participates in two joint ventures as a non-operator. The properties are located in New York and Texas, both are primarily gas properties. The Company has a minority interest in both joint ventures. The Company’s interest in the New York gas wells range from 19 to 38 percent. The Company’s interest in the Texas joint venture wells range from 3.75 to 6.25 percent. The Company records its share of revenues, expenses and capital costs as provided to the Company by the joint-venture operators. The accounting policies for the joint venture properties are consistent with the accounting policies that the Company uses for its wholly-owned properties. | ||||
Depletion, Depreciation, and Amortization | ||||
Depletion of leasehold costs of producing oil and gas properties is provided on the unit-of-production method, by individual property unit, based on estimated recoverable proved reserves. Depreciation and amortization of the costs of producing wells and related equipment are provided on the unit-of-production method, by individual property unit, based on estimated recoverable proved developed reserves. Amortization of the costs of undeveloped oil and gas properties is based on the Company’s experience, giving consideration to the holding periods of leaseholds. The average depletion per equivalent barrel of crude oil produced for 2013, 2012 and 2011 were $11.88, $16.66 and $24.27, respectively. | ||||
Drilling and operating equipment, buildings, automotive, office and other property and equipment and leasehold improvements are stated at cost. Depreciation and amortization are computed using the straight-line method over the shorter of the estimated useful lives or the applicable lease terms (range of 3 to 19 years). Any permanent impairment of the carrying value of property and equipment is provided for at the time such impairments become known. | ||||
Stock-based Compensation | ||||
The Company accounts for its share based compensation in accordance with ASC718. Stock-based compensation cost represents stock options issued to non-employee members of the Board of Directors, and is measured at the grant date based on the estimated fair value of the award, and is recognized as expense over the requisite vesting period. | ||||
The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model. Assumptions relative to volatility and anticipated forfeitures are determined at the time of grant. The following are the assumptions used for stock option grants during 2013. There were no stock option grants during 2012. | ||||
December 31, | ||||
2013 | ||||
Expected life in years | 2.5 years | |||
Stock price volatility | 51.4 | % | ||
Discount rate | 0.34 | % | ||
Expected dividends | None | |||
Forfeiture rate | 0 | % | ||
The assumptions used in the Black Scholes model referred to above are based upon the following data: (1) the expected life of the option is estimated by considering the contractual term of the option and the vesting period of the option, the employees’ expected exercise behavior and the post-vesting employee turnover rate; (2) the expected stock price volatility of the underlying shares over the expected term of the option is based upon historical share price data of the Company’s shares; (3) the risk free interest rate is based on published U.S. Treasury Department interest rates for the expected terms of the underlying options; (4) expected dividends are based on historical dividend data and expected future dividend activity; and (5) the expected forfeiture rate is based on historical forfeiture activity and assumptions regarding future forfeitures based on the composition of current grantees. | ||||
Maintenance and Repairs | ||||
Maintenance, repairs and replacement expenditures are charged to operations as incurred, while major renewals and betterments are capitalized and depreciated over their useful lives. | ||||
Retirement or Disposal of Properties and Equipment | ||||
Costs and accumulated depletion, depreciation, amortization and valuation allowances of property and equipment retired, abandoned, or otherwise disposed of are removed from the accounts upon disposal, and any resulting gain or loss is included in operations in the year of disposition. However, upon disposal of a portion of an oil and gas property, any proceeds received are treated as a recovery of cost and no gain or loss is recognized in the year of disposition. | ||||
Income Taxes | ||||
The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. | ||||
The Company adopted the provisions of FASB ASC Topic No. 740-10-25,” Accounting for Uncertainty in Income Taxes”, on January 1, 2007 (ASC 740-10-25). As a result of the implementation of ASC 740-10-25, the Company made a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by ASC 740-10-25. As a result of the implementation of ASC 740-10-25, the Company recognized no material adjustments to liabilities or stockholders equity. | ||||
The Company files income tax returns in the U.S. Federal jurisdiction, and California, Texas and New York states. With few exceptions, the Company is no longer subject to U.S. Federal tax examination for the years prior to 2010. State jurisdictions that remain subject to examination range from 2009 to 2012. The Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 months. | ||||
The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of the date of adoption of ASC 740-10-25, the Company did not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the year ended December 31, 2013. | ||||
Concentration of Credit Risk | ||||
The Company sells its crude oil to Phillips 66 and Kern Oil & Refining, accounting for approximately 51% and 47%, respectively, of the Company’s crude oil and gas sales in 2013. Crude oil sales were approximately 51% and 47% attributable to Phillips 66 and Kern Oil and Refining, respectively at December 31, 2012. While revenue from these customers is significant, and the loss of any one could have an adverse effect on the Company, it is management’s opinion that the oil and gas it produces could be sold to other crude oil purchasers, refineries or pipeline companies. Trade receivables were approximately 44% and 55% attributable to Phillips 66 and Kern Oil and Refining, respectively at December 31, 2013. Trade receivables were approximately 62% and 37.5% attributable to Phillips 66 and Kern Oil and Refining, respectively at December 31, 2012. | ||||
Recent Accounting Pronouncements | ||||
In January 2013, the FASB issued ASU 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The amendments in this ASU clarify the scope for derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements and securities borrowing and securities lending transactions that are either offset or subject to netting arrangements. An entity is required to apply the amendments for fiscal years beginning on or after January 1, 2013. The Company does not expect the adoption of ASU 2013-01 to have a material impact on its financial statements. | ||||
In April 2013, the FASB issued ASU 2013-07, “Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting.” The amendments in this update are being issued to clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. The Company does not expect the adoption of ASU 2013-07 to have a material impact on its financial statements. | ||||
In July 2013, the FASB issued ASU No. 2013-011, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or A Tax Credit Carryforward Exists.” These amendments provide guidance on the financial statement presentation of unrecognized tax benefits to better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 will not have a material impact on the Company’s consolidated financial statements. | ||||
Reclassifications | ||||
Certain reclassifications have been made to the prior financial statements to conform to the 2013 presentation. | ||||
Revenue Recognition | ||||
The Company recognizes sales when: (1) persuasive evidence of an arrangement exists; (2) product delivery has occurred; (3) pricing is fixed or determinable; and (4) collection is reasonably assured. To satisfy these criteria, the Company: (1) has crude oil sales contracts with its crude oil purchasers; (2) records revenue based upon receipt of evidence of shipment of crude oil and when risk of loss and title transfer has occurred; (3) the Company’s crude oil contracts specify the pricing terms which are fixed and determinable; (4) validates creditworthiness through past payment history and other financial date. Sales rebates, discounts and customer returns are not applicable to the oil and gas industry. | ||||
Trade Accounts Receivable and Allowance for Doubtful Accounts | ||||
Our accounts receivable are unsecured and are at risk to the extent such amounts become uncollectible. The Company has had the same two major customers for approximately 20 years with no history of non-payment or default. Pursuant to the terms of the crude oil sales contracts, the Company receives payment around the 20th of the month following crude oil shipments. The Company has established a nominal allowance for doubtful accounts due to the Company’s evaluation of its customers past payment history, creditworthiness and other financial data. | ||||
Property and Equipment | ||||
Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is recorded on the straight-line basis over the estimated useful lives of the assets, which range from 3 to 19 years. Maintenance and repairs are charged to operations as incurred, while significant improvements are capitalized. Upon retirement or disposition of property, the asset and related accumulated depreciation or amortization is removed from the accounts and any resulting gain or loss is charged to operations. The carrying value of property and equipment is assessed periodically and/or when factors indicating impairment are present. We recognize impairment losses when the expected cash flows are less than the asset’s carrying value, in which case the asset is written down to its estimated fair value. The Company recorded an impairment reserve of $151,243, $237,711 and $751,263 at December 31, 2013, 2012 and 2011, respectively (see Note 6). | ||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||
2. Fair Value Measurements | |||||||||||||||||
Effective January 1, 2008, the Company adopted the authoritative guidance on fair value measurements. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the guidance establishes a three tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: | |||||||||||||||||
Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||||
Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. | |||||||||||||||||
Level 3 - Unobservable inputs which are supported by little or no market activity. Included in this category is the Company’s valuation of its asset retirement obligation liability. The obligation increased $37,477 during the year ended December 31, 2013, as a result of normal accretion. This was offset by a decrease in the obligation of $59,476 due to the sale of the Chico-Martinez lease. | |||||||||||||||||
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | |||||||||||||||||
In accordance with this guidance, we measure our cash equivalents and short-term investments at fair value. Our cash equivalents and short term investments are classified within Level 1. Cash equivalents and short term investments are valued primarily using quoted market prices utilizing market observable inputs. At December 31, 2013, cash equivalents and short term investments consisted of certificates of deposit measured at fair value on a recurring basis. Fair values of our certificates of deposit were $3,678,639, of which $406,110 was included in cash equivalents, $2,140,822 was included in short-term investments and $1,131,707 was included in long-term investments at December 31, 2013. Fair values of our certificates of deposit were $3,642,944, of which $405,709 was included in cash equivalents, $2,135,709 was included in short-term investments and $1,101,526 was included in long-term investments at December 31, 2012. | |||||||||||||||||
Fair Value on a Nonrecurring Basis | |||||||||||||||||
Certain assets and liabilities are measured at fair value on a nonrecurring basis in accordance with GAAP (for example, when there is evidence of impairment). The amounts below represent only balances measured at fair value during the period presented and still held as of the reporting date. These balances appear as a component of the “Oil and Gas Properties and Equipment” and “Accumulated Depletion, Depreciation, Amortization and Valuation Allowances” captions on the balance sheet. | |||||||||||||||||
At and for the period ended December 31, 2013: | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Valuation | |||||||||||||||||
Oil and gas properties and equipment | $ | 674,600 | $ | — | $ | — | $ | 523,400 | $ | -151,200 | |||||||
In the year ended December 31, 2013 certain oil and gas properties and equipment held and used with a carrying amount of $674,600 were written down to their fair value of $523,400, resulting in a valuation charge of $151,200, which was included in earnings for this period. The fair value of these long-lived assets held and used was calculated based upon discounted cash flow projections. These projections incorporate management’s assumptions about future cash flows based upon past experience and future expectations. The expected cash flows are then discounted using a discount rate that the Company believes is commensurate with the risks involved. | |||||||||||||||||
At and for the period ended December 31, 2012: | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Valuation | |||||||||||||||||
Oil and gas properties and equipment | $ | 1,019,100 | $ | — | $ | — | $ | 781,400 | $ | -237,700 | |||||||
In the year ended December 31, 2012 certain oil and gas properties and equipment held and used with a carrying amount of $1,019,100 were written down to their fair value of $781,400, resulting in a valuation charge of $237,700, which was included in earnings for this period. The fair value of these long-lived assets held and used was calculated based upon discounted cash flow projections. These projections incorporate management’s assumptions about future cash flows based upon past experience and future expectations. The expected cash flows are then discounted using a discount rate that the Company believes is commensurate with the risks involved. | |||||||||||||||||
LongTerm_Debt_and_Line_of_Cred
Long-Term Debt and Line of Credit | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
3. Long-Term Debt and Line of Credit | |
At December 31, 2013, the Company had an unsecured line of credit with a bank, under which the Company may borrow up to $500,000 through May 31, 2014. Interest on any borrowing is accrued at the bank's index rate plus 0.50 percentage points. The bank's index rate was 4.75% at December 31, 2013. As of December 31, 2013, the Company did not have any outstanding balance on its unsecured line of credit. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||
4. Income Taxes | |||||||||||
Income tax expense (benefit) consists of the following: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal income taxes: | |||||||||||
Current | $ | 78,226 | $ | 69,700 | $ | 174,403 | |||||
Deferred | -228,800 | 122,850 | -70,350 | ||||||||
-150,574 | 192,550 | 104,053 | |||||||||
State income taxes: | |||||||||||
Current | 13,629 | 12,221 | 28,800 | ||||||||
Deferred | -56,700 | 35,050 | -20,150 | ||||||||
-43,071 | 47,271 | 8,650 | |||||||||
Income tax expense (benefit) | $ | -193,645 | $ | 239,821 | $ | 112,703 | |||||
Differences exist between certain accounting policies and related provisions included in federal income tax rules. The amounts by which these differences and other factors cause the total income tax provision to differ from an amount computed by applying the federal statutory income tax rate to financial income is set forth in the following reconciliation: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal income tax expense (benefit) at statutory rate | $ | -13,942 | $ | 351,395 | $ | 410,686 | |||||
Statutory depletion | -147,845 | -143,291 | -320,627 | ||||||||
Prior period tax changes | -2,443 | -8,000 | 0 | ||||||||
State income taxes | 13,629 | 12,221 | 28,800 | ||||||||
Other | -43,044 | 27,496 | -6,156 | ||||||||
Income tax expense (benefit) | $ | -193,645 | $ | 239,821 | $ | 112,703 | |||||
The components of net deferred tax asset (liability) are as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current deferred taxes: | |||||||||||
Gross assets | $ | 711,800 | $ | 264,400 | $ | 262,500 | |||||
Gross liabilities | 0 | 0 | 0 | ||||||||
711,800 | 264,400 | 262,500 | |||||||||
Noncurrent deferred taxes: | |||||||||||
Gross assets | 2,178,600 | 2,340,500 | 2,500,300 | ||||||||
Gross liabilities | 0 | 0 | 0 | ||||||||
Valuation allowance | -1,718,700 | -1,718,700 | -1,718,700 | ||||||||
459,900 | 621,800 | 781,600 | |||||||||
$ | 1,171,700 | $ | 886,200 | $ | 1,044,100 | ||||||
The tax effect of significant temporary differences representing deferred tax assets and (liabilities) are as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Accounts receivable | $ | 1,600 | $ | 1,600 | $ | 1,600 | |||||
Asset retirement obligations | 520,200 | 519,800 | 500,100 | ||||||||
Statutory depletion carryover | 1,718,700 | 1,718,700 | 1,718,700 | ||||||||
Accrued liabilities | 710,200 | 262,800 | 260,900 | ||||||||
Total deferred tax assets | 2,950,700 | 2,502,900 | 2,481,300 | ||||||||
Property and equipment | -60,300 | 102,000 | 281,500 | ||||||||
Valuation allowance | -1,718,700 | -1,718,700 | -1,718,700 | ||||||||
$ | 1,171,700 | $ | 886,200 | $ | 1,044,100 | ||||||
At December 31, 2013, a valuation allowance has been provided against the statutory depletion carryover due to the uncertainty of its future utilization. | |||||||||||
The Company believes that its estimate of deferred tax assets and determination to record a valuation allowance against the statutory depletion carryover are critical accounting estimates because they are subject to, among other things, an estimate of future taxable income, which is susceptible to change and dependent upon events that may or may not occur, and because the impact of recording a valuation allowance may be material to the assets reported on the balance sheet and results of operations. | |||||||||||
At December 31, 2013, the Company has, for federal income tax purposes, a statutory depletion carryover of approximately $4,095,000, which currently has no expiration date. | |||||||||||
RelatedParty_Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
5. Related-Party Transactions | |
Effective January 1, 1990, John H. Alexander, a former officer and director of the Company participated with a group of investors that acquired the mineral and fee interest on one of the Company’s oil and gas leases (the “Santa Fe Energy lease”) in the Carneros Creek field after the Company declined to participate. The thirty-three percent interest owned by Mr. Alexander represents a minority interest in the investor group. Royalties on oil and gas production from this property paid to the investor group approximated $131,000, $222,500 and $226,200 in 2013, 2012 and 2011, respectively. | |
As a director, Mr. Alexander had abstained from voting on any of the above matters that have been brought before the Board of Directors, involving the Santa Fe lease. See Note 12 for discussion of severance awards entered into with Mr. Alexander. | |
Fourth_Quarter_Results
Fourth Quarter Results | 12 Months Ended |
Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | ' |
Quarterly Financial Information [Text Block] | ' |
6. Fourth Quarter Results (Unaudited) | |
During the fourth quarter of 2013, the Company made adjustments to the carrying value of some of its oil and gas properties. The Company recorded a valuation allowance in the amount of $151,243 at December 31, 2013 to reflect the change in the projected future discounted net cash flows for this property, as the result of the analysis of the Company’s oil and gas reserves by independent consultants. The Company also reduced depletion of its oil and gas properties by $34,834 as a result of the analysis of the Company’s oil and gas reserves by independent consultants at December 31, 2013. | |
During the fourth quarter of 2012, the Company made adjustments to the carrying value of some of its oil and gas properties. The Company recorded a valuation allowance in the amount of $237,711 at December 31, 2012 to reflect the change in the projected future discounted net cash flows for this property, as the result of the analysis of the Company’s oil and gas reserves by independent consultants. The Company also reduced depletion of its oil and gas properties by $39,414 as a result of the analysis of the Company’s oil and gas reserves by independent consultants at December 31, 2012. | |
During the fourth quarter of 2011, the Company made adjustments to the carrying value of one of its oil and gas properties. The Company recorded a valuation allowance in the amount of $23,879 at December 31, 2010 to reflect the change in the projected future discounted net cash flows for this property, as the result of the analysis of the Company’s oil and gas reserves by independent consultants. | |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
7. Commitments and Contingencies | |
The Company is liable for future dismantlement and abandonment costs associated with its oil and gas properties. These costs include down-hole plugging and abandonment of wells, future site restoration, post closure and other environmental exit costs. The costs of future dismantlement and abandonment have been accrued and recorded in the financial statements. See Note 10, Assets Retirement Obligations. | |
The Company is subject to potential litigation within the normal course of business. In management’s opinion, the resolution of such litigation would not have a material adverse effect upon the Company’s financial position or the results of its operations. The Company did not have any pending litigation at December 31, 2013. | |
The Company has been notified by the United States Environmental Protection Agency (“EPA”) of a final settlement offer to settle its potential liability as a generator of waste containing hazardous substances that were disposed of at a waste disposal site in Santa Barbara County. The Company has responded to the EPA by indicating that the waste contained petroleum products that fall within the exception to the definition of hazardous substances for petroleum-related substances of the pertinent EPA regulations. Management has concluded that under both Federal and State regulations no reasonable basis exists for any valid claim against the Company. As such, the likelihood of any liability is deemed remote. | |
During the fourth quarter of 2012, pursuant to requirements of the California Department of Oil and Gas (”CA DOG”) the Company conducted a testing program on all of its crude oil storage tanks. The testing required the Company to empty each tank and measure for the thickness of the metal. The testing is almost complete and the results were favorable. The testing process disrupted crude oil production during the fourth quarter leading to lower revenues during the fourth quarter of 2012 and the first quarter of 2013. | |
Defined_Contribution_Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Compensation and Employee Benefit Plans [Text Block] | ' |
8. Defined Contribution Plan | |
The Company has a defined contribution plan (Simple IRA) available to all employees meeting certain service requirements. Employees may contribute up to a maximum of $6,000 of their compensation to the plan. The Company will make a contribution to the plan in an amount equal to the employee’s contributions up to 3% of their salaries. Contributions of $12,641, $12,646 and $11,549 were made during the years ended December 31, 2013, 2012 and 2011, respectively. | |
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | ||||||||||
Asset Retirement Obligation Disclosure [Text Block] | ' | ||||||||||
9. Asset Retirement Obligations | |||||||||||
The Company recognizes a liability at discounted fair value for the future retirement of tangible long-lived assets and associated assets retirement cost associated with the petroleum and natural gas properties. The fair value of the liability is capitalized as part of the cost of the related asset and amortized to expense over its useful life. The liability accretes until the date of expected settlement of the retirement obligations. The related accretion expense is recognized in the statement of operations. The provision will be revised for the effect of any changes to timing related to cash flow or undiscounted abandonment costs. Actual expenditures incurred for the purpose of site reclamation are charged to the asset retirement obligations to the extent that the liability exists on the balance sheet. Differences between the actual costs incurred and the fair value of the liability recorded are recognized in income in the period the actual costs are incurred. | |||||||||||
There are no legally restricted assets for the settlement of asset retirement obligations. The Company has recognized deferred tax benefits of approximately $520,200 for the asset retirement obligations as of December 31, 2013. | |||||||||||
A reconciliation of the Company’s asset retirement obligations from the periods presented, are as follows: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Beginning balance | $ | 1,327,861 | $ | 1,278,889 | $ | 1,235,193 | |||||
Incurred during the period | 0 | -14,105 | -13,397 | ||||||||
Additions for new wells | 0 | 25,092 | 11,779 | ||||||||
Deletions for wells sold | -59,476 | 0 | 0 | ||||||||
Accretion expense | 37,477 | 37,985 | 45,314 | ||||||||
Ending balance | $ | 1,305,862 | $ | 1,327,861 | $ | 1,278,889 | |||||
Share_Based_Compensation
Share Based Compensation | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||||
10. Share Based Compensation | |||||||||||||||||||
Stock-Option Plan | |||||||||||||||||||
The Company has issued stock options as compensation for members of the Board of Directors under the Pyramid Oil Company 2006 Equity Incentive Plan (the “2006 Plan”). These options vested immediately and are exercisable for a five-year period from the date of the grant. | |||||||||||||||||||
The following is a summary of the Company’s stock option activity. | |||||||||||||||||||
Weighted- | |||||||||||||||||||
Weighted- | Average | ||||||||||||||||||
Number | Average | Remaining | Aggregate | ||||||||||||||||
Of | Exercise | Contractual | Intrinsic | ||||||||||||||||
Options | Price | Life (Years) | Value | ||||||||||||||||
Outstanding at December 31, 2011 | 10,000 | $ | 5.4 | 0 | $ | 0 | |||||||||||||
Granted | 0 | 0 | 0 | ||||||||||||||||
Exercised | 0 | 0 | 0 | ||||||||||||||||
Forfeited | 0 | 0 | 0 | ||||||||||||||||
Outstanding at December 31, 2012 | 10,000 | $ | 5.4 | 3.42 | $ | 0 | |||||||||||||
Granted | 100,000 | 5.16 | 0 | ||||||||||||||||
Exercised | 0 | 0 | 0 | ||||||||||||||||
Forfeited | -5,000 | 5.4 | 0 | ||||||||||||||||
Outstanding at December 31, 2013 | 105,000 | $ | 5.17 | 4.66 | $ | 0 | |||||||||||||
Exercisable at December 31, 2013 | 105,000 | $ | 5.17 | 4.66 | $ | 0 | |||||||||||||
As of December 31, 2013, there were no unvested stock options or unrecognized stock option expense. The weighted average grant date fair value of options issued and vested during 2013 was $1.64 per option. | |||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at December 31, 2013. | |||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||
Weighted | Weighted | Weighted | |||||||||||||||||
Average | Average | Average | |||||||||||||||||
Exercise | Number | Remaining | Exercise | Number | Exercise | ||||||||||||||
Price | of Shares | Life (Years) | Price | of Shares | Price | ||||||||||||||
$ | 5.4 | 5,000 | 2.42 | $ | 5.4 | 5,000 | $ | 5.4 | |||||||||||
$ | 5.16 | 100,000 | 4.77 | $ | 5.16 | 100,000 | $ | 5.16 | |||||||||||
105,000 | 105,000 | ||||||||||||||||||
Warrants | |||||||||||||||||||
During the year ended December 31, 2012, warrant holders exercised 15,000 outstanding warrants under a cash-less exercise provision in the warrant agreements. This resulted in 4,232 shares of common stock being issued to the warrant holders. There were no remaining warrants outstanding as of December 31, 2013 or 2012. | |||||||||||||||||||
Incentive_and_Retention_Plan
Incentive and Retention Plan | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' |
Incentive and Retention Plan, Disclosure [Text Block] | ' |
11. Incentive and Retention Plan | |
On January 9, 2007, the Company’s Board of Directors adopted an Incentive and Retention Plan (the “Incentive Plan”) pursuant to which the Company’s officers and other employees selected by the Company’s Compensation Committee are entitled to receive payments if they are employed by the Company as of the date of a Corporate Transaction (as such term is defined in the Incentive Plan). A Corporate Transaction includes certain mergers involving the Company, sales of Company assets, and other changes in the control of the Company, as specified in the Incentive and Retention Plan. In general, the amount that is payable to each plan participant will equal the number of plan units that have been granted to him or her, multiplied by the increase in the value of the Company between January 9, 2007 and the date of a Corporate Transaction. There has been no Corporate Transaction since the adoption of the Incentive and Retention Plan. No employees have been selected by the Compensation Committee to receive payments under the Incentive Plan. | |
Registration_Statement_on_Form
Registration Statement on Form S-3 | 12 Months Ended |
Dec. 31, 2013 | |
Registration Statement On Form S3 [Abstract] | ' |
Registration Statement On Form S-3 [Text Block] | ' |
12. Registration Statement on Form S-3 | |
The Company filed a shelf registration statement on Form S-3 with the Securities and Exchange Commission (“SEC”) on November 5, 2013, that became effective on November 21, 2013. The registration statement is designed to provide the Company the flexibility to offer and sell from time to time up to $30 million of the Company’s common stock. The Company may offer and sell such securities through one or more methods of distribution, subject to market conditions and the Company’s capital needs. The terms of any offering under the shelf registration statement will be established at the time of such offering and will be described in a prospectus supplement filed with the SEC prior to the completion of the offering. The Company has not filed any supplemental prospectus with the SEC or sold any common stock under this registration statement. | |
Change_in_Directors_of_the_Com
Change in Directors of the Company | 12 Months Ended |
Dec. 31, 2013 | |
Change In Directors Of Registrant Disclosure [Abstract] | ' |
Change In Directors Of Registrant Disclosure [Text Block] | ' |
13. Change in Directors of the Company | |
On September 30, 2013, John H. Alexander resigned as the President and Chief Executive Officer, and as a director, of the Company, and John E. Turco resigned as a director of the Company. Michael D. Herman, currently the Chairman of the Board of Directors of the Company, was appointed as the Interim President and Chief Executive Officer of the Company. | |
Mr. Herman served as Pyramid's Chairman of the Board of Directors since 2005. Following his purchases of Pyramid common stock from Messrs. Alexander and Turco, Mr. Herman owns approximately 39.5% of the outstanding common stock of Pyramid (not including the 100,000 shares that Mr. Herman will acquire in April 2014). | |
As part of this Board of Directors and management transition, Mr. Herman purchased 243,579 shares of Pyramid common stock from Mr. Turco at a purchase price of $6.00 per share. In addition, Mr. Herman purchased 95,592 shares of Pyramid common stock from Mr. Alexander at a purchase price $6.00 per share, and will purchase an additional 100,000 of Mr. Alexander's shares by April 5, 2014, at the same price. | |
On October 8, 2013, the Board of Directors appointed Rick D. Kasch to the Company’s Board of Directors to fill the vacancy created by the resignation of Mr. Turco. Mr. Kasch serves as President of ENSERVCO Corporation, which is a publicly traded energy services company based in Denver, Colorado. Pyramid’s Chairman of the Board of Directors and Interim President and Chief Executive Officer, Michael D. Herman, serves as the Chairman of the Board of Directors and Chief Executive Officer of ENSERVCO Corporation. | |
Settlement_Agreement
Settlement Agreement | 12 Months Ended | ||
Dec. 31, 2013 | |||
Compensation Related Costs [Abstract] | ' | ||
Compensation Related Costs, General [Text Block] | ' | ||
14. Settlement Agreement | |||
In February 2002, the Company entered into an employment agreement with John H. Alexander pursuant to which Mr. Alexander agreed to serve as the Company’s Vice President. On June 3, 2004, Mr. Alexander was appointed as the Company’s President and Chief Executive Officer. The employment agreement was for an initial term of six years, which term automatically renews annually if written notice is not tendered. The agreement was automatically renewed on June 3, 2013. On September 30, 2013, Mr. Alexander resigned as the President and Chief Executive Officer of the Company. | |||
In connection with Mr. Alexander’s resignation, Mr. Alexander and the Company entered into a Settlement Agreement and General Release of Claims, dated as of September 30, 2013 (the “Settlement Agreement”). Pursuant to the Settlement Agreement, among other things: | |||
· | Mr. Alexander’s existing employment agreement terminated effective as of September 30, 2013; | ||
· | The Company agreed to pay an aggregate amount of $967,329 to Mr. Alexander in satisfaction of amounts that are owed to Mr. Alexander under his employment agreement, with such amount to be paid in three equal installments of $322,443 each, on April 5, 2014, January 5, 2015, and January 5, 2016. These amounts are included in restricted cash and deferred compensation liability; | ||
· | The Company agreed to secure these payments owed to Mr. Alexander in a “rabbi trust” pursuant to a Trust Agreement, dated as of October 1, 2013 between the Company and Gilbert Ansolabehere, as trustee (the “Trust Agreement”); | ||
· | Mr. Alexander agreed to resign as a director and officer of the Company; | ||
· | The Company and Mr. Alexander entered into a Consulting Agreement, dated as of October 1, 2013 (the “Consulting Agreement”), pursuant to which Mr. Alexander will serve as a consultant to the Company on a part-time basis through September 30, 2014 for a fee of $10,000 per month; | ||
· | The Company and Mr. Alexander waived known and unknown claims against each other; | ||
· | Mr. Herman agreed to purchase shares of the Company’s common stock held by Messrs. Alexander and Turco, see Footnote 14; and | ||
· | The Company and Mr. Alexander entered into an Indemnity Agreement, dated as of September 30, 2013 (the “Indemnity Agreement”), pursuant to which the Company agreed to indemnify Mr. Alexander against certain claims, losses, costs and expenses that may result in the future from lawsuits and other proceedings in connection with his service as a director and an officer of the Company. | ||
On March 18, 2014, the trust agreement, “Rabbi Trust dated October 1, 2013, ” noted above was terminated by agreement of the Company, Mr. Alexander and the trustee and the funds were disbursed. | |||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
15. Subsequent Events | |
The Company evaluated subsequent events after the balance sheet date of December 31, 2013 through March 31, 2014. | |
On February 6, 2014, the Company and privately held Yuma Energy, Inc. (“Yuma”) announced they had entered into a definitive merger agreement for an all-stock transaction. Upon completion of the transaction, which is subject to the approval of shareholders of both companies, the Company will change its name to “Yuma Energy, Inc.,” and relocate its headquarters to Houston, Texas, while maintaining offices in Bakersfield, California, to oversee its California operations. | |
Under the terms of the merger agreement, the Company will reincorporate in Delaware and the Delaware successor corporation will issue an aggregate of approximately 66 million shares of its common stock to Yuma shareholders, resulting in former Yuma shareholders owning approximately 93% of the post-merger company. Upon closing, there will be an aggregate of approximately 71 million shares of common stock outstanding. The transaction is expected to qualify as a tax-deferred reorganization under Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”). | |
The merger agreement is subject to the approval of the shareholders of both companies, as well as other customary approvals, including authorization to list the newly issued shares on the NYSE MKT. The companies anticipate completing the transaction in mid-2014. | |
Oil_and_Gas_Exploration_and_Pr
Oil and Gas Exploration and Production Industries Disclosures | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ' | |||||||||||||
Oil and Gas Exploration and Production Industries Disclosures [Text Block] | ' | |||||||||||||
FASB ASC Topic 932, Extraction Activities - Oil and Gas, requires disclosure of certain financial data for oil and gas operations and reserve estimates of oil and gas. This information, presented here, is intended to enable the reader to better evaluate the operations of the Company. All of the Company’s oil and gas reserves are located in the United States. | ||||||||||||||
The aggregate amounts of capitalized costs relating to oil and gas producing activities and the related accumulated depletion, depreciation, and amortization and valuation allowances as of December 31, 2013, 2012 and 2011 were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Proved properties | $ | 19,704,600 | $ | 19,828,900 | $ | 18,946,000 | ||||||||
Unproved properties being amortized | 178,600 | 178,600 | 178,600 | |||||||||||
Unproved properties not being amortized | 0 | 0 | 0 | |||||||||||
Capitalized asset retirement costs | 412,612 | 425,978 | 401,200 | |||||||||||
Accumulated depletion, depreciation, amortization and valuation allowances | -18,214,400 | -17,912,400 | -17,132,100 | |||||||||||
$ | 2,081,412 | $ | 2,521,078 | $ | 2,393,700 | |||||||||
The estimated quantities and the change in proved reserves, both developed and undeveloped, for the Company are as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Oil | Gas | Oil | Gas | Oil | Gas | |||||||||
(Mbbls) | (MMCF) | (Mbbls) | (MMCF) | (Mbbls) | (MMCF) | |||||||||
Proved developed and undeveloped reserves: | ||||||||||||||
Beginning of year | 482 | 0 | 546 | 42 | 538 | 44 | ||||||||
Revisions of previous estimates | 10 | 20 | -19 | -36 | 63 | 7 | ||||||||
Extensions, discoveries and other additions | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Production | -43 | -6 | -45 | -6 | -55 | -9 | ||||||||
End of year | 449 | 14 | 482 | 0 | 546 | 42 | ||||||||
Proved developed reserves: | ||||||||||||||
Beginning of year | 482 | 0 | 474 | 42 | 433 | 35 | ||||||||
End of year | 449 | 14 | 482 | 0 | 474 | 42 | ||||||||
Proved undeveloped reserves: | ||||||||||||||
Beginning of year | 0 | 0 | 71 | 0 | 105 | 8 | ||||||||
End of year | 0 | 0 | 0 | 0 | 71 | 0 | ||||||||
The foregoing estimates have been prepared by the Company from data prepared by an independent petroleum engineer in respect to certain producing properties. Revisions in previous estimates as set forth above can result from analysis of new information, as well as from additional production experience or from a change in economic factors. The primary factor that has impacted the revisions of previous estimates of crude oil and natural gas reserves noted above is from a change in crude oil and natural gas prices used to determine the valuation of year-end reserves. Higher crude oil and natural gas prices cause certain oil and gas leases to become more profitable, thus generating additional reserves. Net average crude oil sales prices (average crude oil sales prices net of operating costs, production taxes and development costs) used to value the year-end reserves decreased by approximately $0.63 per barrel at December 31, 2013, decreased by approximately $6.50 per barrel at December 31, 2012 and increased by approximately $18.00 per barrel at December 31, 2011. | ||||||||||||||
The reserve estimates are believed to be reasonable and consistent with presently known physical data concerning size and character of the reservoirs and are subject to change as additional knowledge concerning the reservoirs becomes available. | ||||||||||||||
The present value of estimated future net revenues of proved developed and undeveloped reserves, discounted at 10%, were as follows: | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Proved developed and | ||||||||||||||
undeveloped reserves | ||||||||||||||
(Present value before income taxes) | $ | 13,135,000 | $ | 13,712,000 | $ | 18,439,000 | ||||||||
FASB ASC Topic 932, Extraction Activities - Oil and Gas, requires certain disclosures of the costs and results of exploration and production activities and established a standardized measure of oil and gas reserves and the year-to-year changes therein. | ||||||||||||||
In addition to the foregoing disclosures, FASB ASC Topic 932, Extraction Activities - Oil and Gas established a “Standardized Measure of Discounted Future Net Cash Flows and Changes Therein Relating to Proved Oil and Gas Reserves”. | ||||||||||||||
Costs incurred, both capitalized and expensed, of oil and gas property acquisition, exploration and development for the years ended December 31, 2013, 2012 and 2011 were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Property acquisition costs | $ | 0 | $ | 50,000 | $ | 700 | ||||||||
Exploration costs – expensed | 0 | 0 | 0 | |||||||||||
Development costs | 103,000 | 857,900 | 1,022,300 | |||||||||||
Asset retirement costs | 0 | 24,700 | 11,800 | |||||||||||
The results of operations for oil and gas producing activities for the years ended December 31, 2013, 2012 and 2011 were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Sales | $ | 4,392,000 | $ | 4,995,000 | $ | 5,688,000 | ||||||||
Production costs | 2,109,000 | 2,103,000 | 1,920,000 | |||||||||||
Exploration costs | 0 | 0 | 0 | |||||||||||
Accretion expense | 115,000 | 38,000 | 45,000 | |||||||||||
Depletion, depreciation, amortization and valuation allowance | 658,000 | 887,000 | 1,486,000 | |||||||||||
1,510,000 | 1,967,000 | 2,237,000 | ||||||||||||
Income tax (benefit) provision | -246,000 | 240,000 | 113,000 | |||||||||||
Results of operations from production activities | $ | 1,756,000 | $ | 1,727,000 | $ | 2,124,000 | ||||||||
The standardized measure of discounted estimated future net cash flows relating to proved oil and gas reserves for the years ended December 31, 2013, 2012 and 2011 were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Future cash inflows | $ | 46,428,000 | $ | 51,004,000 | $ | 58,216,000 | ||||||||
Future development and production costs | 23,136,000 | 25,941,000 | 24,445,000 | |||||||||||
Future abandonment costs | 1,442,000 | 1,328,000 | 1,279,000 | |||||||||||
Future income tax expense | 5,100,000 | 5,238,000 | 7,987,000 | |||||||||||
Future net cash flow | 16,750,000 | 18,497,000 | 24,505,000 | |||||||||||
10% annual discount | 6,701,000 | 7,771,000 | 9,392,000 | |||||||||||
Standardized measure of discounted future net cash flow | $ | 10,049,000 | $ | 10,726,000 | $ | 15,113,000 | ||||||||
The principal changes in the standardized measure of discounted future net cash flows during the years ended December 31, 2013, 2012 and 2011 were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Extensions | $ | 0 | $ | 0 | $ | 0 | ||||||||
Revisions of previous estimates | ||||||||||||||
Price changes | -357,000 | -2,155,000 | 7,026,000 | |||||||||||
Quantity estimates | 411,000 | -894,000 | 1,901,000 | |||||||||||
Change in production rates, timing and other | 143,000 | -1,642,000 | -1,157,000 | |||||||||||
Development costs incurred | 103,000 | 858,000 | 1,023,000 | |||||||||||
Changes in estimated future development costs | 0 | -1,281,000 | 315,000 | |||||||||||
Estimated future abandonment costs | -90,000 | -6,000 | 8,000 | |||||||||||
Sales of oil and gas, net of production costs | -2,283,000 | -2,892,000 | -3,768,000 | |||||||||||
Accretion of discount | 1,450,000 | 1,922,000 | 1,386,000 | |||||||||||
-623,000 | -6,090,000 | 6,734,000 | ||||||||||||
Net change in income taxes | 54,000 | -1,703,000 | 1,778,000 | |||||||||||
Net (decrease) increase | $ | -677,000 | $ | -4,387,000 | $ | 4,956,000 | ||||||||
Estimated future cash inflows are computed by applying year-end prices of oil and gas to year-end quantities of proved reserves. Estimated future development and production costs are determined by estimating the expenditures to be incurred in developing and producing the proved oil and gas reserves at the end of the year, based on year-end costs and assuming continuation of existing economic conditions. Estimated future income tax expense is calculated by applying the year-end effective tax rate to estimated future pretax net cash flows related to proved oil and gas reserves, less the tax basis of the properties involved. | ||||||||||||||
These estimates are furnished and calculated in accordance with requirements of the Financial Accounting Standards Board and the SEC. Because of the unpredictable variances in expenses and capital forecasts, crude oil and natural gas price changes being largely influenced and controlled by United States and foreign governmental actions, and the fact that the basis for such estimates vary significantly, management believes the usefulness of these projections is limited. Estimates of future net cash flows do not represent management's assessment of future profitability or future actual cash flows of the Company. It should be recognized that applying current costs and prices and a ten percent standard discount rate allows for comparability but does not convey absolute value. The discounted amounts arrived at are only one measure of financial quantification of proved reserves. | ||||||||||||||
The standardized measure of discounted future cash flows before income taxes decreased by $623,000 at December 31, 2013. The increase in income taxes decreased discounted future cash flows by $54,000 for a total decrease in future cash flows of $677,000 after income taxes as of December 31, 2013. Future cash flows decreased due primarily to sales of oil and gas, net of production costs. This was offset by accretion of discount and revisions of quantity estimates. | ||||||||||||||
The standardized measure of discounted future cash flows before income taxes decreased by $6,090,000 at December 31, 2012. The decrease in income taxes offset discounted future cash flows by $1,703,000 for a net decrease in future cash flows of $4,387,000 after income taxes as of December 31, 2012. The factors contributing to the decrease in cash flows are lower net average crude oil prices (average crude oil sales prices net of operating costs, production taxes and development costs). During 2012, net average crude oil prices decreased by approximately $6.50 per barrel. At December 31, 2012 the Company did not have any proved undeveloped reserves which also contributed to the decrease in future cash flows for 2012. The proved undeveloped reserves at December 31, 2011 included two wells that were projected to be drilled during 2012. One of these wells was the Santa Fe #20 development well that was drilled in 2012. This well is not currently producing and a valuation allowance of $204,000 was recorded at December 31, 2012 for the Santa Fe energy lease. The other well project to be drilled in 2012, the CLI 4-H, was not drilled during 2012 and is not expected to be drilled in the future. | ||||||||||||||
The standardized measure of discounted future cash flows before income taxes increased by $6,734,000 at December 31, 2011. The increase in income taxes offset discounted future cash flows by $1,778,000 for a net increase in future cash flows of $4,956,000 after income taxes as of December 31, 2011. The major factor contributing to the increase in cash flows is higher net average crude oil prices (average crude oil sales prices net of operating costs, production taxes and development costs). During 2011, net average crude oil prices increased by approximately $18.00 per barrel. This price increase contributed to an increase in discounted cash flows due to price changes of $7,026,000. | ||||||||||||||
QUARTERLY_RESULTS
QUARTERLY RESULTS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||
Supplemental Quarterly Financial Information [Text Block] | ' | |||||||
QUARTERLY RESULTS | ||||||||
2013 | 2012 | |||||||
REVENUES: | ||||||||
Quarter Ended: | ||||||||
31-Mar | $ | 1,007,803 | $ | 1,369,058 | ||||
30-Jun | 1,154,409 | 1,340,314 | ||||||
30-Sep | 1,138,438 | 1,198,420 | ||||||
December 31 (a) | 1,900,650 | 1,087,535 | ||||||
$ | 5,201,300 | $ | 4,995,327 | |||||
NET INCOME (LOSS): | ||||||||
Quarter Ended: | ||||||||
31-Mar | $ | 112,687 | $ | 372,096 | ||||
30-Jun | 130,071 | 288,571 | ||||||
September 30 (b) | -533,781 | 207,896 | ||||||
December 31 (a) (c) (d) | 448,292 | -91,018 | ||||||
$ | 157,269 | $ | 777,545 | |||||
INCOME (LOSS) PER COMMON SHARE: | ||||||||
Quarter Ended: | ||||||||
31-Mar | $ | 0.02 | $ | 0.08 | ||||
30-Jun | 0.03 | 0.06 | ||||||
September 30 (b) | -0.11 | 0.04 | ||||||
December 31 (a) (c) (d) | 0.09 | -0.01 | ||||||
$ | 0.03 | $ | 0.17 | |||||
(a) Reflects gain on sale of fixed assets of $809,476 for the sale of one of the Company’s oil and gas properties recorded in the fourth quarter of 2013. | ||||||||
(b) Reflects deferred compensation of $1,040,764, see Item 8. Financial Statements and Supplementary Data - Note 14, “Settlement Agreement”. | ||||||||
(c) Reflects a valuation allowance of $151,243 recorded in the fourth quarter of 2013 for the write-down of certain oil and gas properties. | ||||||||
(d) Reflects a valuation allowance of $237,711 recorded in the fourth quarter of 2012 for the write-down of certain oil and gas properties. | ||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Nature of Operations [Text Block] | ' | |||
Nature of Operations | ||||
Pyramid Oil Company (the “Company”), a California Corporation, has been in the oil and gas business continuously for 103 years since it was incorporated on October 9, 1909. The Company is in the business of exploration, development and production of crude oil and natural gas. The Company operated and has interests in 28 oil and gas leases in Kern and Santa Barbara Counties in the State of California. The Company also owns oil and gas interests in Wyoming, Texas and New York that it does not operate. The Company grants short-term credit to its customers and generally receives payment within 30 days. | ||||
Use of Estimates, Policy [Policy Text Block] | ' | |||
Use of Estimates | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |||
Cash and Cash Equivalents | ||||
Cash and cash equivalents principally consist of demand deposits and certificates of deposits having original maturities of three months or less. At December 31, 2013, the Company had approximately $3,813,898 of cash and cash equivalents that were not fully insured by the FDIC. | ||||
Investment, Policy [Policy Text Block] | ' | |||
Investments | ||||
Investments consist of certificates of deposit having original maturities of three months or more and are valued at cost. | ||||
Inventory, Policy [Policy Text Block] | ' | |||
Inventory | ||||
Inventories of crude oil and condensate are valued at the lower of cost, predominately on a first-in, first-out (FIFO) basis, or market, and include certain costs directly related to the production process. | ||||
Deposits [Policy Text Block] | ' | |||
Deposits | ||||
In April 2004, the Company replaced its state of California oil and gas blanket performance surety bond, with a cash bond in the form of an irrevocable certificate of deposit in the amount of $250,000. | ||||
Costs Incurred, Policy [Policy Text Block] | ' | |||
Costs Incurred in Oil and Gas Producing Activities | ||||
The Company has adopted the “successful efforts” method of accounting for its oil and gas exploration and development activities, as set forth in FASB ASC Topic No. 932. | ||||
The Company initially capitalizes expenditures for oil and gas property acquisitions until they are either determined to be successful (capable of commercial production) or unsuccessful. The carrying value of all undeveloped oil and gas properties is evaluated periodically and reduced if such carrying value appears to have been impaired. Leasehold costs relating to successful oil and gas properties remain capitalized while leasehold costs which have been proven unsuccessful are charged to operations in the period the leasehold costs are proven unsuccessful. Costs of carrying and retaining unproved properties are expensed as incurred. | ||||
The costs of drilling and equipping development wells are capitalized, whether the wells are successful or unsuccessful. The costs of drilling and equipping exploratory wells are capitalized until they are determined to be either successful or unsuccessful. If the wells are successful, the costs of the wells remain capitalized. If, however, the wells are unsuccessful, the capitalized costs of drilling the wells, net of any salvage value, are charged to operations in the period the wells are determined to be unsuccessful. | ||||
The Company adopted FASB ASC Topic No. 360-10-15, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of” (the Statement). The Statement specifies when an impairment loss should be recognized and how impairment losses should be measured for long-lived assets to be held and used and for long-lived assets to be disposed of. In accordance with the Statement, the costs of proved oil and gas properties and equipment are periodically assessed on a lease by lease basis to determine if such costs exceed undiscounted future cash flows, and if conditions warrant an impairment reserve will be provided based on the estimated future discounted cash flows. The Company recorded an impairment reserve of $151,243, $237,711 and $751,263 at December 31, 2013, 2012 and 2011, respectively (see Note 6). The accumulated impairment reserve was $4,988,758 and $4,980,931 at December 31, 2013 and 2012, respectively. | ||||
Interest in Unincorporated Joint Ventures or Partnerships, Policy [Policy Text Block] | ' | |||
Joint Venture Investments | ||||
The Company participates in two joint ventures as a non-operator. The properties are located in New York and Texas, both are primarily gas properties. The Company has a minority interest in both joint ventures. The Company’s interest in the New York gas wells range from 19 to 38 percent. The Company’s interest in the Texas joint venture wells range from 3.75 to 6.25 percent. The Company records its share of revenues, expenses and capital costs as provided to the Company by the joint-venture operators. The accounting policies for the joint venture properties are consistent with the accounting policies that the Company uses for its wholly-owned properties. | ||||
Depreciation, Depletion, and Amortization [Policy Text Block] | ' | |||
Depletion, Depreciation, and Amortization | ||||
Depletion of leasehold costs of producing oil and gas properties is provided on the unit-of-production method, by individual property unit, based on estimated recoverable proved reserves. Depreciation and amortization of the costs of producing wells and related equipment are provided on the unit-of-production method, by individual property unit, based on estimated recoverable proved developed reserves. Amortization of the costs of undeveloped oil and gas properties is based on the Company’s experience, giving consideration to the holding periods of leaseholds. The average depletion per equivalent barrel of crude oil produced for 2013, 2012 and 2011 were $11.88, $16.66 and $24.27, respectively. | ||||
Drilling and operating equipment, buildings, automotive, office and other property and equipment and leasehold improvements are stated at cost. Depreciation and amortization are computed using the straight-line method over the shorter of the estimated useful lives or the applicable lease terms (range of 3 to 19 years). Any permanent impairment of the carrying value of property and equipment is provided for at the time such impairments become known. | ||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |||
Stock-based Compensation | ||||
The Company accounts for its share based compensation in accordance with ASC718. Stock-based compensation cost represents stock options issued to non-employee members of the Board of Directors, and is measured at the grant date based on the estimated fair value of the award, and is recognized as expense over the requisite vesting period. | ||||
The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model. Assumptions relative to volatility and anticipated forfeitures are determined at the time of grant. The following are the assumptions used for stock option grants during 2013. There were no stock option grants during 2012. | ||||
December 31, | ||||
2013 | ||||
Expected life in years | 2.5 years | |||
Stock price volatility | 51.4 | % | ||
Discount rate | 0.34 | % | ||
Expected dividends | None | |||
Forfeiture rate | 0 | % | ||
The assumptions used in the Black Scholes model referred to above are based upon the following data: (1) the expected life of the option is estimated by considering the contractual term of the option and the vesting period of the option, the employees’ expected exercise behavior and the post-vesting employee turnover rate; (2) the expected stock price volatility of the underlying shares over the expected term of the option is based upon historical share price data of the Company’s shares; (3) the risk free interest rate is based on published U.S. Treasury Department interest rates for the expected terms of the underlying options; (4) expected dividends are based on historical dividend data and expected future dividend activity; and (5) the expected forfeiture rate is based on historical forfeiture activity and assumptions regarding future forfeitures based on the composition of current grantees. | ||||
Maintenance Cost, Policy [Policy Text Block] | ' | |||
Maintenance and Repairs | ||||
Maintenance, repairs and replacement expenditures are charged to operations as incurred, while major renewals and betterments are capitalized and depreciated over their useful lives. | ||||
Asset Retirement Obligations, Policy [Policy Text Block] | ' | |||
Retirement or Disposal of Properties and Equipment | ||||
Costs and accumulated depletion, depreciation, amortization and valuation allowances of property and equipment retired, abandoned, or otherwise disposed of are removed from the accounts upon disposal, and any resulting gain or loss is included in operations in the year of disposition. However, upon disposal of a portion of an oil and gas property, any proceeds received are treated as a recovery of cost and no gain or loss is recognized in the year of disposition. | ||||
Income Tax, Policy [Policy Text Block] | ' | |||
Income Taxes | ||||
The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. | ||||
The Company adopted the provisions of FASB ASC Topic No. 740-10-25,” Accounting for Uncertainty in Income Taxes”, on January 1, 2007 (ASC 740-10-25). As a result of the implementation of ASC 740-10-25, the Company made a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by ASC 740-10-25. As a result of the implementation of ASC 740-10-25, the Company recognized no material adjustments to liabilities or stockholders equity. | ||||
The Company files income tax returns in the U.S. Federal jurisdiction, and California, Texas and New York states. With few exceptions, the Company is no longer subject to U.S. Federal tax examination for the years prior to 2010. State jurisdictions that remain subject to examination range from 2009 to 2012. The Company does not believe there will be any material changes in its unrecognized tax positions over the next 12 months. | ||||
The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of the date of adoption of ASC 740-10-25, the Company did not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the year ended December 31, 2013. | ||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | |||
Concentration of Credit Risk | ||||
The Company sells its crude oil to Phillips 66 and Kern Oil & Refining, accounting for approximately 51% and 47%, respectively, of the Company’s crude oil and gas sales in 2013. Crude oil sales were approximately 51% and 47% attributable to Phillips 66 and Kern Oil and Refining, respectively at December 31, 2012. While revenue from these customers is significant, and the loss of any one could have an adverse effect on the Company, it is management’s opinion that the oil and gas it produces could be sold to other crude oil purchasers, refineries or pipeline companies. Trade receivables were approximately 44% and 55% attributable to Phillips 66 and Kern Oil and Refining, respectively at December 31, 2013. Trade receivables were approximately 62% and 37.5% attributable to Phillips 66 and Kern Oil and Refining, respectively at December 31, 2012. | ||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||
Recent Accounting Pronouncements | ||||
In January 2013, the FASB issued ASU 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The amendments in this ASU clarify the scope for derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements and securities borrowing and securities lending transactions that are either offset or subject to netting arrangements. An entity is required to apply the amendments for fiscal years beginning on or after January 1, 2013. The Company does not expect the adoption of ASU 2013-01 to have a material impact on its financial statements. | ||||
In April 2013, the FASB issued ASU 2013-07, “Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting.” The amendments in this update are being issued to clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. The Company does not expect the adoption of ASU 2013-07 to have a material impact on its financial statements. | ||||
In July 2013, the FASB issued ASU No. 2013-011, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or A Tax Credit Carryforward Exists.” These amendments provide guidance on the financial statement presentation of unrecognized tax benefits to better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 will not have a material impact on the Company’s consolidated financial statements. | ||||
Reclassification, Policy [Policy Text Block] | ' | |||
Reclassifications | ||||
Certain reclassifications have been made to the prior financial statements to conform to the 2013 presentation. | ||||
Revenue Recognition, Policy [Policy Text Block] | ' | |||
Revenue Recognition | ||||
The Company recognizes sales when: (1) persuasive evidence of an arrangement exists; (2) product delivery has occurred; (3) pricing is fixed or determinable; and (4) collection is reasonably assured. To satisfy these criteria, the Company: (1) has crude oil sales contracts with its crude oil purchasers; (2) records revenue based upon receipt of evidence of shipment of crude oil and when risk of loss and title transfer has occurred; (3) the Company’s crude oil contracts specify the pricing terms which are fixed and determinable; (4) validates creditworthiness through past payment history and other financial date. Sales rebates, discounts and customer returns are not applicable to the oil and gas industry. | ||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' | |||
Trade Accounts Receivable and Allowance for Doubtful Accounts | ||||
Our accounts receivable are unsecured and are at risk to the extent such amounts become uncollectible. The Company has had the same two major customers for approximately 20 years with no history of non-payment or default. Pursuant to the terms of the crude oil sales contracts, the Company receives payment around the 20th of the month following crude oil shipments. The Company has established a nominal allowance for doubtful accounts due to the Company’s evaluation of its customers past payment history, creditworthiness and other financial data. | ||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |||
Property and Equipment | ||||
Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is recorded on the straight-line basis over the estimated useful lives of the assets, which range from 3 to 19 years. Maintenance and repairs are charged to operations as incurred, while significant improvements are capitalized. Upon retirement or disposition of property, the asset and related accumulated depreciation or amortization is removed from the accounts and any resulting gain or loss is charged to operations. The carrying value of property and equipment is assessed periodically and/or when factors indicating impairment are present. We recognize impairment losses when the expected cash flows are less than the asset’s carrying value, in which case the asset is written down to its estimated fair value. The Company recorded an impairment reserve of $151,243, $237,711 and $751,263 at December 31, 2013, 2012 and 2011, respectively (see Note 6). | ||||
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||
The following are the assumptions used for stock option grants during 2013. There were no stock option grants during 2012. | ||||
December 31, | ||||
2013 | ||||
Expected life in years | 2.5 years | |||
Stock price volatility | 51.4 | % | ||
Discount rate | 0.34 | % | ||
Expected dividends | None | |||
Forfeiture rate | 0 | % | ||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value [Abstract] | ' | ||||||||||||||||
Schedule Of Oil and Gas Properties and Equipment [Table Text Block] | ' | ||||||||||||||||
The amounts below represent only balances measured at fair value during the period presented and still held as of the reporting date. These balances appear as a component of the “Oil and Gas Properties and Equipment” and “Accumulated Depletion, Depreciation, Amortization and Valuation Allowances” captions on the balance sheet. | |||||||||||||||||
At and for the period ended December 31, 2013: | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Valuation | |||||||||||||||||
Oil and gas properties and equipment | $ | 674,600 | $ | — | $ | — | $ | 523,400 | $ | -151,200 | |||||||
At and for the period ended December 31, 2012: | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Valuation | |||||||||||||||||
Oil and gas properties and equipment | $ | 1,019,100 | $ | — | $ | — | $ | 781,400 | $ | -237,700 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||
Income tax expense (benefit) consists of the following: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal income taxes: | |||||||||||
Current | $ | 78,226 | $ | 69,700 | $ | 174,403 | |||||
Deferred | -228,800 | 122,850 | -70,350 | ||||||||
-150,574 | 192,550 | 104,053 | |||||||||
State income taxes: | |||||||||||
Current | 13,629 | 12,221 | 28,800 | ||||||||
Deferred | -56,700 | 35,050 | -20,150 | ||||||||
-43,071 | 47,271 | 8,650 | |||||||||
Income tax expense (benefit) | $ | -193,645 | $ | 239,821 | $ | 112,703 | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||
The amounts by which these differences and other factors cause the total income tax provision to differ from an amount computed by applying the federal statutory income tax rate to financial income is set forth in the following reconciliation: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal income tax expense (benefit) at statutory rate | $ | -13,942 | $ | 351,395 | $ | 410,686 | |||||
Statutory depletion | -147,845 | -143,291 | -320,627 | ||||||||
Prior period tax changes | -2,443 | -8,000 | 0 | ||||||||
State income taxes | 13,629 | 12,221 | 28,800 | ||||||||
Other | -43,044 | 27,496 | -6,156 | ||||||||
Income tax expense (benefit) | $ | -193,645 | $ | 239,821 | $ | 112,703 | |||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||
The components of net deferred tax asset (liability) are as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current deferred taxes: | |||||||||||
Gross assets | $ | 711,800 | $ | 264,400 | $ | 262,500 | |||||
Gross liabilities | 0 | 0 | 0 | ||||||||
711,800 | 264,400 | 262,500 | |||||||||
Noncurrent deferred taxes: | |||||||||||
Gross assets | 2,178,600 | 2,340,500 | 2,500,300 | ||||||||
Gross liabilities | 0 | 0 | 0 | ||||||||
Valuation allowance | -1,718,700 | -1,718,700 | -1,718,700 | ||||||||
459,900 | 621,800 | 781,600 | |||||||||
$ | 1,171,700 | $ | 886,200 | $ | 1,044,100 | ||||||
Schedule Of Deferred Tax Assets and Liabilities Reconciliation [Table Text Block] | ' | ||||||||||
The tax effect of significant temporary differences representing deferred tax assets and (liabilities) are as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Accounts receivable | $ | 1,600 | $ | 1,600 | $ | 1,600 | |||||
Asset retirement obligations | 520,200 | 519,800 | 500,100 | ||||||||
Statutory depletion carryover | 1,718,700 | 1,718,700 | 1,718,700 | ||||||||
Accrued liabilities | 710,200 | 262,800 | 260,900 | ||||||||
Total deferred tax assets | 2,950,700 | 2,502,900 | 2,481,300 | ||||||||
Property and equipment | -60,300 | 102,000 | 281,500 | ||||||||
Valuation allowance | -1,718,700 | -1,718,700 | -1,718,700 | ||||||||
$ | 1,171,700 | $ | 886,200 | $ | 1,044,100 | ||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | ||||||||||
Schedule of Asset Retirement Obligations [Table Text Block] | ' | ||||||||||
A reconciliation of the Company’s asset retirement obligations from the periods presented, are as follows: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Beginning balance | $ | 1,327,861 | $ | 1,278,889 | $ | 1,235,193 | |||||
Incurred during the period | 0 | -14,105 | -13,397 | ||||||||
Additions for new wells | 0 | 25,092 | 11,779 | ||||||||
Deletions for wells sold | -59,476 | 0 | 0 | ||||||||
Accretion expense | 37,477 | 37,985 | 45,314 | ||||||||
Ending balance | $ | 1,305,862 | $ | 1,327,861 | $ | 1,278,889 | |||||
Share_Based_Compensation_Table
Share Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||||
The following is a summary of the Company’s stock option activity. | |||||||||||||||||||
Weighted- | |||||||||||||||||||
Weighted- | Average | ||||||||||||||||||
Number | Average | Remaining | Aggregate | ||||||||||||||||
Of | Exercise | Contractual | Intrinsic | ||||||||||||||||
Options | Price | Life (Years) | Value | ||||||||||||||||
Outstanding at December 31, 2011 | 10,000 | $ | 5.4 | 0 | $ | 0 | |||||||||||||
Granted | 0 | 0 | 0 | ||||||||||||||||
Exercised | 0 | 0 | 0 | ||||||||||||||||
Forfeited | 0 | 0 | 0 | ||||||||||||||||
Outstanding at December 31, 2012 | 10,000 | $ | 5.4 | 3.42 | $ | 0 | |||||||||||||
Granted | 100,000 | 5.16 | 0 | ||||||||||||||||
Exercised | 0 | 0 | 0 | ||||||||||||||||
Forfeited | -5,000 | 5.4 | 0 | ||||||||||||||||
Outstanding at December 31, 2013 | 105,000 | $ | 5.17 | 4.66 | $ | 0 | |||||||||||||
Exercisable at December 31, 2013 | 105,000 | $ | 5.17 | 4.66 | $ | 0 | |||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at December 31, 2013. | |||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||
Weighted | Weighted | Weighted | |||||||||||||||||
Average | Average | Average | |||||||||||||||||
Exercise | Number | Remaining | Exercise | Number | Exercise | ||||||||||||||
Price | of Shares | Life (Years) | Price | of Shares | Price | ||||||||||||||
$ | 5.4 | 5,000 | 2.42 | $ | 5.4 | 5,000 | $ | 5.4 | |||||||||||
$ | 5.16 | 100,000 | 4.77 | $ | 5.16 | 100,000 | $ | 5.16 | |||||||||||
105,000 | 105,000 | ||||||||||||||||||
Oil_and_Gas_Exploration_and_Pr1
Oil and Gas Exploration and Production Industries Disclosures (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ' | |||||||||||||
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure [Table Text Block] | ' | |||||||||||||
The aggregate amounts of capitalized costs relating to oil and gas producing activities and the related accumulated depletion, depreciation, and amortization and valuation allowances as of December 31, 2013, 2012 and 2011 were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Proved properties | $ | 19,704,600 | $ | 19,828,900 | $ | 18,946,000 | ||||||||
Unproved properties being amortized | 178,600 | 178,600 | 178,600 | |||||||||||
Unproved properties not being amortized | 0 | 0 | 0 | |||||||||||
Capitalized asset retirement costs | 412,612 | 425,978 | 401,200 | |||||||||||
Accumulated depletion, depreciation, amortization and valuation allowances | -18,214,400 | -17,912,400 | -17,132,100 | |||||||||||
$ | 2,081,412 | $ | 2,521,078 | $ | 2,393,700 | |||||||||
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block] | ' | |||||||||||||
The estimated quantities and the change in proved reserves, both developed and undeveloped, for the Company are as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Oil | Gas | Oil | Gas | Oil | Gas | |||||||||
(Mbbls) | (MMCF) | (Mbbls) | (MMCF) | (Mbbls) | (MMCF) | |||||||||
Proved developed and undeveloped reserves: | ||||||||||||||
Beginning of year | 482 | 0 | 546 | 42 | 538 | 44 | ||||||||
Revisions of previous estimates | 10 | 20 | -19 | -36 | 63 | 7 | ||||||||
Extensions, discoveries and other additions | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Production | -43 | -6 | -45 | -6 | -55 | -9 | ||||||||
End of year | 449 | 14 | 482 | 0 | 546 | 42 | ||||||||
Proved developed reserves: | ||||||||||||||
Beginning of year | 482 | 0 | 474 | 42 | 433 | 35 | ||||||||
End of year | 449 | 14 | 482 | 0 | 474 | 42 | ||||||||
Proved undeveloped reserves: | ||||||||||||||
Beginning of year | 0 | 0 | 71 | 0 | 105 | 8 | ||||||||
End of year | 0 | 0 | 0 | 0 | 71 | 0 | ||||||||
Schedule Of Discounted Future Net Revenues Of Proved Developed and Undeveloped Reserves [Table Text Block] | ' | |||||||||||||
The present value of estimated future net revenues of proved developed and undeveloped reserves, discounted at 10%, were as follows: | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Proved developed and | ||||||||||||||
undeveloped reserves | ||||||||||||||
(Present value before income taxes) | $ | 13,135,000 | $ | 13,712,000 | $ | 18,439,000 | ||||||||
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure [Table Text Block] | ' | |||||||||||||
Costs incurred, both capitalized and expensed, of oil and gas property acquisition, exploration and development for the years ended December 31, 2013, 2012 and 2011 were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Property acquisition costs | $ | 0 | $ | 50,000 | $ | 700 | ||||||||
Exploration costs – expensed | 0 | 0 | 0 | |||||||||||
Development costs | 103,000 | 857,900 | 1,022,300 | |||||||||||
Asset retirement costs | 0 | 24,700 | 11,800 | |||||||||||
Results of Operations for Oil and Gas Producing Activities Disclosure [Table Text Block] | ' | |||||||||||||
The results of operations for oil and gas producing activities for the years ended December 31, 2013, 2012 and 2011 were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Sales | $ | 4,392,000 | $ | 4,995,000 | $ | 5,688,000 | ||||||||
Production costs | 2,109,000 | 2,103,000 | 1,920,000 | |||||||||||
Exploration costs | 0 | 0 | 0 | |||||||||||
Accretion expense | 115,000 | 38,000 | 45,000 | |||||||||||
Depletion, depreciation, amortization and valuation allowance | 658,000 | 887,000 | 1,486,000 | |||||||||||
1,510,000 | 1,967,000 | 2,237,000 | ||||||||||||
Income tax (benefit) provision | -246,000 | 240,000 | 113,000 | |||||||||||
Results of operations from production activities | $ | 1,756,000 | $ | 1,727,000 | $ | 2,124,000 | ||||||||
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure [Table Text Block] | ' | |||||||||||||
The standardized measure of discounted estimated future net cash flows relating to proved oil and gas reserves for the years ended December 31, 2013, 2012 and 2011 were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Future cash inflows | $ | 46,428,000 | $ | 51,004,000 | $ | 58,216,000 | ||||||||
Future development and production costs | 23,136,000 | 25,941,000 | 24,445,000 | |||||||||||
Future abandonment costs | 1,442,000 | 1,328,000 | 1,279,000 | |||||||||||
Future income tax expense | 5,100,000 | 5,238,000 | 7,987,000 | |||||||||||
Future net cash flow | 16,750,000 | 18,497,000 | 24,505,000 | |||||||||||
10% annual discount | 6,701,000 | 7,771,000 | 9,392,000 | |||||||||||
Standardized measure of discounted | $ | 10,049,000 | $ | 10,726,000 | $ | 15,113,000 | ||||||||
future net cash flow | ||||||||||||||
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows [Table Text Block] | ' | |||||||||||||
The principal changes in the standardized measure of discounted future net cash flows during the years ended December 31, 2013, 2012 and 2011 were as follows: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Extensions | $ | 0 | $ | 0 | $ | 0 | ||||||||
Revisions of previous estimates | ||||||||||||||
Price changes | -357,000 | -2,155,000 | 7,026,000 | |||||||||||
Quantity estimates | 411,000 | -894,000 | 1,901,000 | |||||||||||
Change in production rates, timing and other | 143,000 | -1,642,000 | -1,157,000 | |||||||||||
Development costs incurred | 103,000 | 858,000 | 1,023,000 | |||||||||||
Changes in estimated future development costs | 0 | -1,281,000 | 315,000 | |||||||||||
Estimated future abandonment costs | -90,000 | -6,000 | 8,000 | |||||||||||
Sales of oil and gas, net of production costs | -2,283,000 | -2,892,000 | -3,768,000 | |||||||||||
Accretion of discount | 1,450,000 | 1,922,000 | 1,386,000 | |||||||||||
-623,000 | -6,090,000 | 6,734,000 | ||||||||||||
Net change in income taxes | 54,000 | -1,703,000 | 1,778,000 | |||||||||||
Net (decrease) increase | $ | -677,000 | $ | -4,387,000 | $ | 4,956,000 | ||||||||
QUARTERLY_RESULTS_Tables
QUARTERLY RESULTS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | |||||||
QUARTERLY RESULTS | ||||||||
2013 | 2012 | |||||||
REVENUES: | ||||||||
Quarter Ended: | ||||||||
31-Mar | $ | 1,007,803 | $ | 1,369,058 | ||||
30-Jun | 1,154,409 | 1,340,314 | ||||||
30-Sep | 1,138,438 | 1,198,420 | ||||||
December 31 (a) | 1,900,650 | 1,087,535 | ||||||
$ | 5,201,300 | $ | 4,995,327 | |||||
NET INCOME (LOSS): | ||||||||
Quarter Ended: | ||||||||
31-Mar | $ | 112,687 | $ | 372,096 | ||||
30-Jun | 130,071 | 288,571 | ||||||
September 30 (b) | -533,781 | 207,896 | ||||||
December 31 (a) (c) (d) | 448,292 | -91,018 | ||||||
$ | 157,269 | $ | 777,545 | |||||
INCOME (LOSS) PER COMMON SHARE: | ||||||||
Quarter Ended: | ||||||||
31-Mar | $ | 0.02 | $ | 0.08 | ||||
30-Jun | 0.03 | 0.06 | ||||||
September 30 (b) | -0.11 | 0.04 | ||||||
December 31 (a) (c) (d) | 0.09 | -0.01 | ||||||
$ | 0.03 | $ | 0.17 | |||||
(a) Reflects gain on sale of fixed assets of $809,476 for the sale of one of the Company’s oil and gas properties recorded in the fourth quarter of 2013. | ||||||||
(b) Reflects deferred compensation of $1,040,764, see Item 8. Financial Statements and Supplementary Data - Note 14, “Settlement Agreement”. | ||||||||
(c) Reflects a valuation allowance of $151,243 recorded in the fourth quarter of 2013 for the write-down of certain oil and gas properties. | ||||||||
(d) Reflects a valuation allowance of $237,711 recorded in the fourth quarter of 2012 for the write-down of certain oil and gas properties. | ||||||||
Significant_Accounting_Policie3
Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies [Line Items] | ' |
Expected life in years | '2 years 6 months |
Stock price volatility | 51.40% |
Discount rate | 0.34% |
Expected dividends | 'None |
Forfeiture rate | 0.00% |
Significant_Accounting_Policie4
Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2004 | |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Cash, Uninsured Amount | $3,813,898 | ' | ' | ' |
Deposits Assets, Noncurrent | 250,000 | 250,000 | ' | 250,000 |
Asset Impairment Charges | 151,243 | 237,711 | 751,263 | ' |
Accumulated Impairment Reserve | $4,988,758 | $4,980,931 | ' | ' |
Average Depletion Per Barrel Of Oil Equivalents | 11.88 | 16.66 | 24.27 | ' |
Property, Plant and Equipment, Basis Of Valuation | 'stated at cost | ' | ' | ' |
Property, Plant and Equipment, Depreciation Methods | 'straight-line method | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | 'range of 3 to 19 years | ' | ' | ' |
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Phillips 66 [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Concentration Risk, Percentage | 51.00% | 51.00% | ' | ' |
Customer Concentration Risk [Member] | Sales Revenue, Goods, Net [Member] | Kern Oil and Refining [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Concentration Risk, Percentage | 47.00% | 47.00% | ' | ' |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Phillips 66 [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Concentration Risk, Percentage | 44.00% | 62.00% | ' | ' |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Kern Oil and Refining [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Concentration Risk, Percentage | 55.00% | 37.50% | ' | ' |
New York Gas Wells [Member] | Minimum [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage By Parent | 19.00% | ' | ' | ' |
New York Gas Wells [Member] | Maximum [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage By Parent | 38.00% | ' | ' | ' |
Texas Joint Venture Wells [Member] | Minimum [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage By Parent | 3.75% | ' | ' | ' |
Texas Joint Venture Wells [Member] | Maximum [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage By Parent | 6.25% | ' | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Oil and gas properties and equipment | $674,600 | $1,019,100 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Oil and gas properties and equipment | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Oil and gas properties and equipment | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Oil and gas properties and equipment | 523,400 | 781,400 |
Total Valuations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Oil and gas properties and equipment | ($151,200) | ($237,700) |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Certificates Of Deposit, At Fair Value | $3,678,639 | $3,642,944 | ' |
Asset Retirement Obligation, Liabilities Settled | 59,476 | 0 | 0 |
Asset Retirement Obligation, Accretion Expense | 37,477 | 38,341 | 45,314 |
Cash and Cash Equivalents [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Certificates Of Deposit, At Fair Value | 406,110 | 405,709 | ' |
Short-term Investments [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Certificates Of Deposit, At Fair Value | 2,140,822 | 2,135,709 | ' |
Long Term Investments [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Certificates Of Deposit, At Fair Value | $1,131,707 | $1,101,526 | ' |
LongTerm_Debt_and_Line_of_Cred1
Long-Term Debt and Line of Credit (Details Textual) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Debt Instrument [Line Items] | ' |
Line Of Credit Facility, Maximum Borrowing Capacity | $500,000 |
Line Of Credit Facility, Expiration Date | 31-May-14 |
Line Of Credit Facility, Interest Rate Description | 'bank's index rate plus 0.50 percentage points |
Bank Index Rate | 4.75% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Federal income taxes: | ' | ' | ' |
Current | $78,226 | $69,700 | $174,403 |
Deferred | -228,800 | 122,850 | -70,350 |
Federal Income Tax Expense (Benefit), Continuing Operations | -150,574 | 192,550 | 104,053 |
State income taxes: | ' | ' | ' |
Current | 13,629 | 12,221 | 28,800 |
Deferred | -56,700 | 35,050 | -20,150 |
State and Local Income Tax Expense (Benefit), Continuing Operations | -43,071 | 47,271 | 8,650 |
Income tax expense (benefit) | ($193,645) | $239,821 | $112,703 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Federal income tax expense (benefit) at statutory rate | ($13,942) | $351,395 | $410,686 |
Statutory depletion | -147,845 | -143,291 | -320,627 |
Prior period tax changes | -2,443 | -8,000 | 0 |
State income taxes | 13,629 | 12,221 | 28,800 |
Other | -43,044 | 27,496 | -6,156 |
Income tax expense (benefit) | ($193,645) | $239,821 | $112,703 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current deferred taxes: | ' | ' | ' |
Gross assets | $711,800 | $264,400 | $262,500 |
Gross liabilities | 0 | 0 | 0 |
Deferred Tax Assets, Net Of Valuation Allowance, Current | 711,800 | 264,400 | 262,500 |
Noncurrent deferred taxes: | ' | ' | ' |
Gross assets | 2,178,600 | 2,340,500 | 2,500,300 |
Gross liabilities | 0 | 0 | 0 |
Valuation allowance | -1,718,700 | -1,718,700 | -1,718,700 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 459,900 | 621,800 | 781,600 |
Deferred Tax Assets, Net | $1,171,700 | $886,200 | $1,044,100 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Accounts receivable | $1,600 | $1,600 | $1,600 |
Asset retirement obligations | 520,200 | 519,800 | 500,100 |
Statutory depletion carryover | 1,718,700 | 1,718,700 | 1,718,700 |
Accrued liabilities | 710,200 | 262,800 | 260,900 |
Total deferred tax assets | 2,950,700 | 2,502,900 | 2,481,300 |
Property and equipment | -60,300 | 102,000 | 281,500 |
Valuation allowance | -1,718,700 | -1,718,700 | -1,718,700 |
Deferred Tax Assets, Net | $1,171,700 | $886,200 | $1,044,100 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | Dec. 31, 2013 |
Income Tax Disclosure [Line Items] | ' |
Statutory Depletion Carry Forward Amount | $4,095,000 |
RelatedParty_Transactions_Deta
Related-Party Transactions (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Mr Alexander [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage By Parent | 33.00% | ' | ' |
Oil and Gas Properties [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Royalty Expense | $131,000 | $222,500 | $226,200 |
Fourth_Quarter_Results_Details
Fourth Quarter Results (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule Of Fourth Quarter Results [Line Items] | ' | ' | ' | ' | ' | ' |
Valuation Allowance | $151,243 | $237,711 | $23,879 | $151,243 | $237,711 | $751,263 |
Depletion Of Oil and Gas Properties | $34,834 | $39,414 | ' | ' | ' | ' |
Defined_Contribution_Plan_Deta
Defined Contribution Plan (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $6,000 | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent | 3.00% | ' | ' |
Defined Contribution Plan, Cost Recognized | $12,641 | $12,646 | $11,549 |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Asset Retirement Obligation [Line Items] | ' | ' | ' |
Beginning balance | $1,327,861 | $1,278,889 | $1,235,193 |
Incurred during the period | 0 | -14,105 | -13,397 |
Additions for new wells | 0 | 25,092 | 11,779 |
Deletions for wells sold | -59,476 | 0 | 0 |
Accretion expense | 37,477 | 38,341 | 45,314 |
Ending balance | $1,305,862 | $1,327,861 | $1,278,889 |
Asset_Retirement_Obligations_D1
Asset Retirement Obligations (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Asset Retirement Obligation [Line Items] | ' | ' | ' |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Asset Retirement Obligations | $520,200 | $519,800 | $500,100 |
Share_Based_Compensation_Detai
Share Based Compensation (Details) (Employee Stock Option [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Stock Option [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Options, Outstanding at Beginning of Period | 10,000 | 10,000 | ' |
Number of Options, Granted | 100,000 | 0 | ' |
Number of Options, Exercised | 0 | 0 | ' |
Number of Options, Forfeited | -5,000 | 0 | ' |
Number of Options, Outstanding at End of Period | 105,000 | 10,000 | 10,000 |
Number of Options, Exercisable | 105,000 | ' | ' |
Weighted Average Exercise Price, Outstanding at Beginning of Period | $5.40 | $5.40 | ' |
Weighted-Average Exercise Price, Granted | $5.16 | $0 | ' |
Weighted-Average Exercise Price, Exercised | $0 | $0 | ' |
Weighted-Average Exercise Price, Forfeited | $5.40 | $0 | ' |
Weighted Average Exercise Price, Outstanding at End of Period | $5.17 | $5.40 | $5.40 |
Weighted Average Exercise Price, Exercisable | $5.17 | ' | ' |
Weighted Average Remaining Contractual Life (Years), Outstanding | '4 years 7 months 28 days | '3 years 5 months 1 day | '0 years |
Weighted Average Remaining Contractual Life (Years), Exercisable | '4 years 7 months 28 days | ' | ' |
Aggregate Intrinsic Value, Outstanding at Beginning of Period | $0 | $0 | ' |
Aggregate Intrinsic Value, Granted | $0 | $0 | ' |
Aggregate Intrinsic Value, Exercised | 0 | 0 | ' |
Aggregate Intrinsic Value, Forfeited | 0 | 0 | ' |
Aggregate Intrinsic Value, Outstanding at End of Period | 0 | 0 | 0 |
Aggregate Intrinsic Value, Exercisable | $0 | ' | ' |
Share_Based_Compensation_Detai1
Share Based Compensation (Details 1) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options Outstanding, Number of Shares | 105,000 |
Options Exercisable, Number of Shares | 105,000 |
Exercise Price Range $5.40 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options Outstanding, Number of Shares | 5,000 |
Options Outstanding, Weighted Average Remaining Life (Years) | '2 years 5 months 1 day |
Options Outstanding, Weighted Average Exercise Price | $5.40 |
Options Exercisable, Number of Shares | 5,000 |
Options Exercisable, Weighted Average Exercise Price | $5.40 |
Exercise Price Range $5.16 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options Outstanding, Number of Shares | 100,000 |
Options Outstanding, Weighted Average Remaining Life (Years) | '4 years 9 months 7 days |
Options Outstanding, Weighted Average Exercise Price | $5.16 |
Options Exercisable, Number of Shares | 100,000 |
Options Exercisable, Weighted Average Exercise Price | $5.16 |
Share_Based_Compensation_Detai2
Share Based Compensation (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-Based Compensation | $164,413 | $0 | $43,743 |
Employee Stock Option [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period | 0 | 0 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '5 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $1.64 | ' | ' |
Share-Based Compensation | $0 | ' | ' |
Warrant [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period | ' | 15,000 | ' |
Common Stock Share Delivered To Warrant Holder | ' | 4,232 | ' |
Class of Warrant or Right, Outstanding | 0 | ' | ' |
Registration_Statement_on_Form1
Registration Statement on Form S-3 (Details Textual) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Registration Statement on Form S-3 [Line Items] | ' |
Registration Payment, Arrangement for Common Stock | $30 |
Change_in_Directors_of_the_Com1
Change in Directors of the Company (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Mr. Herman [Member] | Mr. Herman [Member] | Mr. Herman [Member] | Mr. Herman [Member] | |||
Mr Alexander [Member] | Mr. Turco [Member] | Subsequent Event [Member] | ||||
Mr Alexander [Member] | ||||||
Change In Directors Of Registrant [Line Items] | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | 39.50% | ' | ' | ' |
Common Stock, Shares, Outstanding | 4,688,085 | 4,688,085 | 100,000 | ' | ' | ' |
Purchase Of Common Stock | ' | ' | ' | 95,592 | 243,579 | 100,000 |
Accelerated Share Repurchases, Final Price Paid Per Share | ' | ' | ' | $6 | $6 | ' |
Settlement_Agreement_Details_T
Settlement Agreement (Details Textual) (Mr Alexander [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Settlement Agreement [Line Items] | ' |
Officers Compensation | $967,329 |
Professional Fees | 10,000 |
First Installment Payable On April 5, 2014 [Member] | ' |
Settlement Agreement [Line Items] | ' |
Officers Compensation | 322,443 |
Second installment Payable on January 5, 2015 [Member] | ' |
Settlement Agreement [Line Items] | ' |
Officers Compensation | 322,443 |
Third installment Payable on January 5, 2016 [Member] | ' |
Settlement Agreement [Line Items] | ' |
Officers Compensation | $322,443 |
Subsequent_Events_Details_Text
Subsequent Events (Details Textual) | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 06, 2014 |
Yuma Energy, Inc [Member] | |||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | ' | ' | ' |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | ' | ' | 66,000,000 |
Stock holders Ownership Percentage In Parent Company | ' | ' | 93.00% |
Common Stock, Shares, Outstanding | 4,688,085 | 4,688,085 | 71,000,000 |
Oil_and_Gas_Exploration_and_Pr2
Oil and Gas Exploration and Production Industries Disclosures (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ' | ' | ' |
Proved properties | $19,704,600 | $19,828,900 | $18,946,000 |
Unproved properties being amortized | 178,600 | 178,600 | 178,600 |
Unproved properties not being amortized | 0 | 0 | 0 |
Capitalized asset retirement costs | 412,612 | 425,978 | 401,200 |
Accumulated depletion, depreciation, amortization and valuation allowances | -18,214,400 | -17,912,400 | -17,132,100 |
Capitalized Costs, Oil and Gas Producing Activities, Net | $2,081,412 | $2,521,078 | $2,393,700 |
Oil_and_Gas_Exploration_and_Pr3
Oil and Gas Exploration and Production Industries Disclosures (Details 1) (Oil) (Oil [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
MBbls | MBbls | MBbls | |
Oil [Member] | ' | ' | ' |
Reserve Quantities [Line Items] | ' | ' | ' |
Proved developed and undeveloped reserves, Beginning of year | 482 | 546 | 538 |
Revisions of Previous Estimates | 10 | -19 | 63 |
Extensions, discoveries and other additions | 0 | 0 | 0 |
Production | -43 | -45 | -55 |
Proved developed and undeveloped reserves, End of year | 449 | 482 | 546 |
Proved developed reserves, Beginning of the year | 482 | 474 | 433 |
Proved developed reserves, End of year | 449 | 482 | 474 |
Proved undeveloped reserves, Beginning of year | 0 | 71 | 105 |
Proved undeveloped reserves, End of year | 0 | 0 | 71 |
Oil_and_Gas_Exploration_and_Pr4
Oil and Gas Exploration and Production Industries Disclosures (Details 1) (Gas) (Natural Gas [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
MMcf | MMcf | MMcf | |
Natural Gas [Member] | ' | ' | ' |
Reserve Quantities [Line Items] | ' | ' | ' |
Proved developed and undeveloped reserves, Beginning of year | 0 | 42 | 44 |
Revisions of Previous Estimates | 20 | -36 | 7 |
Extensions, discoveries and other additions | 0 | 0 | 0 |
Production | -6 | -6 | -9 |
Proved developed and undeveloped reserves, End of year | 14 | 0 | 42 |
Proved developed reserves, Beginning of the year | 0 | 42 | 35 |
Proved developed reserves, End of year | 14 | 0 | 42 |
Proved undeveloped reserves, Beginning of year | 0 | 0 | 8 |
Proved undeveloped reserves, End of year | 0 | 0 | 0 |
Oil_and_Gas_Exploration_and_Pr5
Oil and Gas Exploration and Production Industries Disclosures (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Discounted Future Net Revenues of Proved Developed and Undeveloped Reserves [Line Items] | ' | ' | ' |
Proved developed and undeveloped reserves (Present value before income taxes) | $13,135,000 | $13,712,000 | $18,439,000 |
Oil_and_Gas_Exploration_and_Pr6
Oil and Gas Exploration and Production Industries Disclosures (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ' | ' | ' |
Property acquisition costs | $0 | $50,000 | $700 |
Exploration costs - expensed | 0 | 0 | 0 |
Development costs | 103,000 | 857,900 | 1,022,300 |
Asset retirement costs | $0 | $24,700 | $11,800 |
Oil_and_Gas_Exploration_and_Pr7
Oil and Gas Exploration and Production Industries Disclosures (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | ' | ' | ' |
Sales | $4,392,000 | $4,995,000 | $5,688,000 |
Production costs | 2,109,000 | 2,103,000 | 1,920,000 |
Exploration costs | 0 | 0 | 0 |
Accretion expense | 115,000 | 38,000 | 45,000 |
Depletion, depreciation, amortization and valuation allowance | 658,000 | 887,000 | 1,486,000 |
Results of Operations, Income before Income Taxes | 1,510,000 | 1,967,000 | 2,237,000 |
Income tax (benefit) provision | -246,000 | 240,000 | 113,000 |
Results of operations from production activities | $1,756,000 | $1,727,000 | $2,124,000 |
Oil_and_Gas_Exploration_and_Pr8
Oil and Gas Exploration and Production Industries Disclosures (Details 5) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ' | ' | ' |
Future cash inflows | $46,428,000 | $51,004,000 | $58,216,000 |
Future development and production costs | 23,136,000 | 25,941,000 | 24,445,000 |
Future abandonment costs | 1,442,000 | 1,328,000 | 1,279,000 |
Future income tax expense | 5,100,000 | 5,238,000 | 7,987,000 |
Future net cash flow | 16,750,000 | 18,497,000 | 24,505,000 |
10% annual discount | 6,701,000 | 7,771,000 | 9,392,000 |
Standardized measure of discounted future net cash flow | $10,049,000 | $10,726,000 | $15,113,000 |
Oil_and_Gas_Exploration_and_Pr9
Oil and Gas Exploration and Production Industries Disclosures (Details 6) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows [Line Items] | ' | ' | ' |
Extensions | $0 | $0 | $0 |
Revisions of previous estimates | ' | ' | ' |
Price changes | -357,000 | -2,155,000 | 7,026,000 |
Quantity estimates | 411,000 | -894,000 | 1,901,000 |
Change in production rates, timing and other | 143,000 | -1,642,000 | -1,157,000 |
Development costs incurred | 103,000 | 858,000 | 1,023,000 |
Changes in estimated future development costs | 0 | -1,281,000 | 315,000 |
Estimated future abandonment costs | -90,000 | -6,000 | 8,000 |
Sales of oil and gas, net of production costs | -2,283,000 | -2,892,000 | -3,768,000 |
Accretion of discount | 1,450,000 | 1,922,000 | 1,386,000 |
Standardized Measure Of Discounted Future Net Cash Flow Of Proved Oil and Gas Reserves | -623,000 | -6,090,000 | 6,734,000 |
Net change in income taxes | 54,000 | -1,703,000 | 1,778,000 |
Net (decrease) increase | ($677,000) | ($4,387,000) | $4,956,000 |
Recovered_Sheet1
Oil and Gas Exploration and Production Industries Disclosures (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Oil and Gas Exploration and Production Industries Disclosures [Line Items] | ' | ' | ' | ' | ' | ' |
Increase In Average Oil Prices | ' | ' | ' | ' | ' | 18 |
Decrease In Average Oil Prices | ' | ' | ' | 0.63 | 6.5 | ' |
Valuation Allowance | $151,243 | $237,711 | $23,879 | $151,243 | $237,711 | $751,263 |
Santa Fe energy lease [Member] | ' | ' | ' | ' | ' | ' |
Oil and Gas Exploration and Production Industries Disclosures [Line Items] | ' | ' | ' | ' | ' | ' |
Valuation Allowance | ' | ' | ' | ' | $204,000 | ' |
QUARTERLY_RESULTS_Details
QUARTERLY RESULTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Quarterly Financial Information Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
REVENUES: | $1,900,650 | [1] | $1,138,438 | $1,154,409 | $1,007,803 | $1,087,535 | [1] | $1,198,420 | $1,340,314 | $1,369,058 | $5,201,300 | $4,995,327 | $5,689,949 | ||
NET INCOME (LOSS): | $448,292 | [1],[2],[3] | ($533,781) | [4] | $130,071 | $112,687 | ($91,018) | [1],[2],[3] | $207,896 | [4] | $288,571 | $372,096 | $157,269 | $777,545 | $1,095,197 |
INCOME (LOSS) PER COMMON SHARE (in dollars per share) | $0.09 | [1],[2],[3] | ($0.11) | [4] | $0.03 | $0.02 | ($0.01) | [1],[2],[3] | $0.04 | [4] | $0.06 | $0.08 | $0.03 | $0.17 | $0.23 |
[1] | Reflects gain on sale of fixed assets of $809,476 for the sale of one of the Companybs oil and gas properties recorded in the fourth quarter of 2013. | ||||||||||||||
[2] | Reflects a valuation allowance of $237,711 recorded in the fourth quarter of 2012 for the write-down of certain oil and gas properties. | ||||||||||||||
[3] | Reflects a valuation allowance of $151,243 recorded in the fourth quarter of 2013 for the write-down of certain oil and gas properties. | ||||||||||||||
[4] | Reflects deferred compensation of $1,040,764, see Item 8. Financial Statements and Supplementary Data - Note 14, bSettlement Agreementb. |
QUARTERLY_RESULTS_Details_Text
QUARTERLY RESULTS (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Quarterly Financial Information Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Valuation Allowance | $151,243 | $237,711 | $23,879 | $151,243 | $237,711 | $751,263 |
Deferred Compensation Arrangement with Individual, Compensation Expense | ' | ' | ' | 1,063,445 | 0 | 0 |
Gain (Loss) On Sale Of Oil and Gas Property | ' | ' | ' | $809,476 | $0 | $1,512 |