Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 24, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Entity Registrant Name | RESERVE PETROLEUM CO | ||
Entity Central Index Key | 83,350 | ||
Trading Symbol | rsrv | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 157,846 | ||
Entity Public Float | $ 19,967,661 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and Cash Equivalents (Note 2) | $ 8,071,854 | $ 13,937,215 |
Available-for-Sale Securities (Notes 2 & 5) | 13,443,636 | 8,642,053 |
Trading Securities (Notes 2 & 5) | 473,707 | 410,724 |
Refundable Income Taxes | 536,798 | 488,052 |
Receivables (Note 2) | 764,641 | 644,868 |
Total Current Assets | 23,290,636 | 24,122,912 |
Investments: | ||
Equity Investments (Notes 2 & 7) | 822,570 | 964,770 |
Other, at Cost | 1,906,856 | 876,856 |
Total Investments | 2,729,426 | 1,841,626 |
Unproved Properties | 2,180,018 | 1,874,283 |
Proved Properties | 53,030,034 | 52,735,721 |
Oil and Gas Properties, Gross | 55,210,052 | 54,610,004 |
Less – Accumulated Depreciation, Depletion, Amortization and Valuation Allowance | 44,456,113 | 42,535,199 |
Oil and Gas Properties, Net | 10,753,939 | 12,074,805 |
Other Property and Equipment, at Cost | 406,430 | 392,918 |
Less – Accumulated Depreciation | 231,887 | 244,362 |
Other Property and Equipment, Net | 174,543 | 148,556 |
Total Property, Plant and Equipment | 10,928,482 | 12,223,361 |
Total Assets | 36,948,544 | 38,187,899 |
Current Liabilities: | ||
Accounts Payable | 161,749 | 225,648 |
Other Current Liabilities | 25,590 | 26,006 |
Total Current Liabilities | 187,339 | 251,654 |
Long-Term Liabilities: | ||
Asset Retirement Obligation (Note 2) | 1,710,677 | 1,677,328 |
Dividends Payable (Note 3) | 1,278,266 | 1,407,959 |
Deferred Tax Liability, Net (Note 6) | 1,511,160 | 1,626,370 |
Total Long-Term Liabilities | 4,500,103 | 4,711,657 |
Total Liabilities | 4,687,442 | 4,963,311 |
Commitments and Contingencies (Notes 2 & 7) | ||
Stockholders’ Equity (Notes 3 & 4): | ||
Common Stock | 92,368 | 92,368 |
Additional Paid-in Capital | 65,000 | 65,000 |
Retained Earnings | 33,600,718 | 34,475,369 |
Stockholders’ Equity Before Treasury Stock | 33,758,086 | 34,632,737 |
Less – Treasury Stock, at Cost | 1,496,984 | 1,408,149 |
Total Stockholders’ Equity | 32,261,102 | 33,224,588 |
Total Liabilities and Stockholders’ Equity | $ 36,948,544 | $ 38,187,899 |
Statements of Operation
Statements of Operation - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Revenues: | ||
Oil and Gas Sales | $ 5,418,164 | $ 7,641,006 |
Lease Bonuses and Other | 872,974 | 809,980 |
Total Operating Revenues | 6,291,138 | 8,450,986 |
Operating Costs and Expenses: | ||
Production | 2,140,756 | 2,601,044 |
Exploration | 429,210 | 584,705 |
Depreciation, Depletion, Amortization and Valuation Provisions (Note 10) | 2,719,899 | 7,091,552 |
General, Administrative and Other | 1,580,776 | 1,640,115 |
Total Operating Costs and Expenses | 6,870,641 | 11,917,416 |
Loss from Operations | (579,503) | (3,466,430) |
Equity Income in Investees (Note 7) | 22,800 | 38,275 |
Other Income, Net (Note 11) | 299,592 | 70,278 |
Loss Before Income Taxes | (257,111) | (3,357,877) |
Income Tax Benefit (Notes 2 & 6) | (172,886) | (1,472,545) |
Net Loss | $ (84,225) | $ (1,885,332) |
Per Share Data (Note 2): | ||
Net Loss, Basic and Diluted (in dollars per share) | $ (0.53) | $ (11.89) |
Cash Dividends (in dollars per share) | $ 5 | $ 10 |
Weighted Average Shares Outstanding, Basic and Diluted (in shares) | 158,107 | 158,557 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2014 | $ 92,368 | $ 65,000 | $ 37,946,212 | $ (1,361,353) | $ 36,742,227 |
Net Loss | (1,885,332) | (1,885,332) | |||
Dividends Declared | (1,585,511) | (1,585,511) | |||
Purchase of Treasury Stock | (46,796) | (46,796) | |||
Balance at Dec. 31, 2015 | 92,368 | 65,000 | 34,475,369 | (1,408,149) | 33,224,588 |
Net Loss | (84,225) | (84,225) | |||
Dividends Declared | (790,426) | (790,426) | |||
Purchase of Treasury Stock | (88,835) | (88,835) | |||
Balance at Dec. 31, 2016 | $ 92,368 | $ 65,000 | $ 33,600,718 | $ (1,496,984) | $ 32,261,102 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Oil and Gas Sales | $ 5,346,837 | $ 9,139,958 |
Lease Bonuses and Other | 872,974 | 809,980 |
Sale of Trading Securities | 858,921 | 561,844 |
Interest Received | 42,228 | 14,995 |
Agricultural Rentals and Other | 60,648 | 11,193 |
Dividends Received on Trading Securities | 1,254 | 1,032 |
Cash Distributions from Equity Investments | 165,000 | 82,500 |
Cash from Life Insurance Policy Benefits | 391,290 | |
Tax Refunds | 9,438 | |
Cash Paid – | ||
Production Costs | (2,132,055) | (2,664,013) |
General Suppliers, Employees and Taxes, Other than Income Taxes | (1,587,921) | (1,638,948) |
Purchase of Trading Securities | (860,175) | (562,832) |
Income Taxes Paid, Net | (508) | (720,544) |
Farm Expense and Other | (513) | (516) |
Net Cash Provided by Operating Activities | 2,776,128 | 5,425,939 |
Cash Provided by/(Applied to) Investing Activities: | ||
Maturity of Available-for-Sale Securities | 17,283,067 | 13,308,097 |
Purchase of Available-for-Sale Securities | (22,084,650) | (15,295,847) |
Proceeds from Disposal of Property, Plant and Equipment | 23,774 | 70,981 |
Purchase of Property, Plant and Equipment | (1,978,179) | (2,300,347) |
Cash Distributions from Other Investments | 155,000 | 60,000 |
Purchase of Equity and Other Investments | (1,030,000) | (860,440) |
Net Cash Applied to Investing Activities | (7,630,988) | (5,017,556) |
Cash Applied to Financing Activities: | ||
Dividends Paid to Stockholders | (921,667) | (1,627,930) |
Purchase of Treasury Stock | (88,834) | (46,796) |
Total Cash Applied to Financing Activities | (1,010,501) | (1,674,726) |
Net Change in Cash and Cash Equivalents | (5,865,361) | (1,266,343) |
Cash and Cash Equivalents at Beginning of Year | 13,937,215 | 15,203,558 |
Cash and Cash Equivalents at End of Year | 8,071,854 | 13,937,215 |
Reconciliation of Net Loss to Net Cash Provided by Operating Activities: | ||
Net Loss | (84,225) | (1,885,332) |
Net Loss Increased (Decreased) by Net Change in – | ||
Net Unrealized Holding (Gains)/Losses on Trading Securities | (82,159) | 67,643 |
Accounts Receivable | (70,046) | 1,499,203 |
Interest and Dividends Receivable | (4,142) | (1,715) |
Refundable Income Taxes | (48,746) | (333,659) |
Accounts Payable | 5,911 | (54,408) |
Trading Securities | 19,176 | (32,891) |
Deferred Taxes | (115,210) | (1,859,431) |
Other Liabilities | 46,602 | 46,814 |
Income from Equity and Other Investments | (177,800) | (98,275) |
Cash Distributions from Equity Investments | 165,000 | 82,500 |
Cash from Life Insurance Policy Benefits | 391,290 | |
Exploratory Costs | 377,112 | 355,780 |
Disposition of Property, Plant and Equipment | 24,756 | 156,868 |
Depreciation, Depletion, Amortization and Valuation Provisions | 2,719,899 | 7,091,552 |
Net Cash Provided by Operating Activities | $ 2,776,128 | $ 5,425,939 |
Note 1 - Nature of Operations
Note 1 - Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | Note 1 NATURE OF OPERATIONS The Company is engaged in oil and natural gas exploration and development and minerals management with areas of concentration in Texas, Oklahoma, Kansas, Arkansas and South Dakota, a single business segment. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with a maturity of three Investments Marketable Securities: The Company classifies its debt and marketable equity securities in one two Trading and available-for-sale securities are recorded at fair value. Unrealized gains and losses on trading securities, which consist primarily of equity securities, are reported in current earnings. Unrealized gains and losses on available-for-sale securities, which consist entirely of U.S. Government securities, are reported as a component of other comprehensive income when significant to the financial statements. There are no December 31, 2016 2015. Equity and Cost Investments: The Company accounts for its non-marketable investment in partnerships on the equity method if ownership allows the Company to exercise significant influence, or the cost method, if not. See Note 7 Receivables and Revenue Recognition Oil and gas sales and resulting receivables are recognized when the product is delivered to the purchaser and title has transferred. Sales are to credit-worthy major energy purchasers with payments generally received within 60 Property and Equipment Oil and gas properties are accounted for on the successful efforts method. The acquisition, exploration and development costs of producing properties are capitalized. The Company has not historically had any capitalized exploratory drilling costs that are pending determination of reserves for more than one Depreciation, depletion and amortization of producing properties is computed on the units-of-production method on a property-by-property basis. The units-of-production method is based primarily on estimates of proved reserve quantities. Due to uncertainties inherent in this estimation process, it is at least reasonably possible that reserve quantities will be revised in the near term. Changes in estimated reserve quantities are applied to depreciation, depletion and amortization computations prospectively. Other property and equipment are depreciated on the straight-line, declining-balance, or other accelerated methods as appropriate. The following estimated useful lives are used for the different types of property: Office furniture and fixtures (years) 5 to 10 Automotive equipment (years) 5 to 8 Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present. The Company uses its oil and gas reserve reports to test each producing property for impairment quarterly. See Note 10 Income Taxes The Company utilizes an asset/liability approach to calculating deferred income taxes. Deferred income taxes are provided to reflect temporary differences in the basis of net assets and liabilities for income tax and financial reporting purposes. Deferred tax assets are reduced by a valuation allowance if a determination is made that it is more likely than not that some or all of the deferred assets will not be realized based on the weight of all available evidence. The Company recognizes a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, based upon the technical merits of the position. The Company will record the largest amount of tax benefit that is greater than 50% The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The federal income tax returns for 2013, 2014 2015 Earnings Per Share Accounting guidance for Earnings Per Share (EPS) establishes the methodology of calculating basic earnings per share and diluted earnings per share. The calculations of basic earnings per share and diluted earnings per share differ in that instruments convertible to common stock (such as stock options, warrants, and convertible preferred stock) are added to weighted average shares outstanding when computing diluted earnings per share. For 2016 2015, no Concentrations of Credit Risk and Major Customers The Company’s receivables relate primarily to sales of oil and natural gas to purchasers with operations in Texas, Oklahoma, Kansas, and South Dakota. The Company had two 2016 35% one 2015 27% The Company maintains its cash in bank deposit accounts, which at times may Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates include oil and natural gas reserve quantities that form the basis for the calculation of amortization of oil and natural gas properties. Management emphasizes that reserve estimates are inherently imprecise and that estimates of more recent reserve discoveries are more imprecise than those for properties with long production histories. Actual results could differ from the estimates and assumptions used in the preparation of the Company’s financial statements. Gas Balancing Gas imbalances are accounted for under the sales method whereby revenues are recognized based on production sold. A liability is recorded when the Company’s excess takes of natural gas volumes exceed our estimated remaining recoverable reserves (over-produced). No receivables are recorded for those wells where the Company has taken less than our ownership share of gas production (under-produced). Guarantees At the inception of a guarantee or subsequent modification, the Company records a liability for the fair value of the obligation undertaken in issuing the guarantee. The Company records a liability for its obligations when it becomes probable that the Company will have to perform under the guarantee. The Company has issued guarantees associated with the Company’s equity investments. Asset Retirement Obligation The Company records the fair value of its estimated liability to retire its oil and natural gas producing properties in the period in which it is incurred (typically the date of first 4.08%. first 3.25%. The following table summarizes the asset retirement obligation for 2016 2015: 2016 2015 Beginning balance at January 1 $ 1,677,328 $ 1,645,597 Liabilities incurred 18,321 49,275 Liabilities settled (wells sold or plugged) (20,542 ) (17,214 ) Accretion expense 47,018 47,531 Revision to estimate (11,448 ) (47,861 ) Ending balance at December 31 $ 1,710,677 $ 1,677,328 New Accounting Pronouncements In May 2014, 2014 09, Revenue from Contracts with Customers 2014 09 Generally Accepted Accounting Principles (“GAAP”) under which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014 09 January 1, 2018. 2014 09 In November 2015, 2015 17, Balance Sheet Classification of Deferred Taxes December 15, 2016, 2015 17 December 31, 2016, $61,710 $12,487 December 31, 2016, December 31, 2015, 2015 17 10 2015 17. In January, 2016, 2016 01, Recognition and Measurement of Financial Assets and Liabilities 2016 01 December 15, 2017 In February 2016, 2016 02, Leases 12 2016 02 December 15, 2018, In August 2016, 2016 15, Classification of Certain Cash Receipts and Cash Payments may one December 15, 2017, 2016 15 |
Note 3 - Dividends Payable
Note 3 - Dividends Payable | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Dividends Payable [Text Block] | Note 3 DIVIDENDS PAYABLE Dividends payable includes amounts that are due to stockholders whom the Company has been unable to locate, stockholders’ heirs pending ownership transfer documents, or uncashed dividend checks of other stockholders. |
Note 4 - Common Stock
Note 4 - Common Stock | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 4 COMMON STOCK The following table summarizes the changes in common stock issued and outstanding: Shares of Shares Treasury Shares Issued Stock Outstanding January 1, 2015, $.50 par value stock, 184,735 26,063 158,672 Purchase of stock --- 214 (214 ) December 31, 2015, $.50 par value stock, 184,735 26,277 158,458 Purchase of stock --- 554 (554 ) December 31, 2016, $.50 par value stock, 184,735 26,831 157,904 |
Note 5 - Marketable Securities
Note 5 - Marketable Securities | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 5 MARKETABLE SECURITIES At December 31, 2016, one For trading securities, in 2016 $20,430 $82,159. 2015 $31,902 $67,643. |
Note 6 - Income Taxes
Note 6 - Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 6 INCOME TAXES Components of deferred taxes are as follows: December 31, 2016 2015 Assets: Net Leasehold Impairment Reserves $ 290,167 $ 298,061 Gas Balance Receivable 52,379 52,379 Long-Lived Asset Impairment 1,745,936 2,163,449 Deferred Geological and Geophysical Expense 62,720 110,107 Other 406,579 385,307 Total Assets 2,557,781 3,009,303 Liabilities: Receivables 91,622 70,335 Intangible Drilling Costs 2,856,294 3,434,057 Depletion, Depreciation and Other 1,121,025 1,131,281 Total Liabilities 4,068,941 4,635,673 Net Deferred Tax Liability $ (1,511,160 ) $ (1,626,370 ) The decrease in the deferred tax liability for 2016 The following table summarizes the current and deferred portions of income tax expense: Year Ended December 31, 2016 2015 Current Tax Provision/(Benefit): Federal $ (57,494 ) $ 402,676 State (182 ) (15,790 ) Total Current Provision/(Benefit) (57,676 ) 386,886 Deferred Tax Benefit (115,210 ) (1,859,431 ) Total Benefit $ (172,886 ) $ (1,472,545 ) The total income tax benefit expressed as a percentage of loss before income tax was 67% 2016 44% 2015. 34% 2016 2015 Year Ended December 31, 2016 2015 Computed Federal Tax Benefit $ (87,418 ) $ (1,141,678 ) Increase (Decrease) in Tax From: Allowable Depletion in Excess of Basis (83,460 ) (359,552 ) Dividend Received Deduction (878 ) (723 ) State Income Tax Benefit (182 ) (15,790 ) Other (948 ) 45,198 Income Tax Benefit $ (172,886 ) $ (1,472,545 ) Effective Tax Rate 67% 44% Excess federal percentage depletion, which is limited to certain production volumes and by certain income levels, reduces estimated taxable income projected for any year. When a provision for income taxes is recorded, federal excess percentage depletion benefits decrease the effective tax rate. When a benefit for income taxes is recorded, federal excess percentage depletion benefits increase the effective tax rate. The benefit of federal excess percentage depletion is not directly related to the amount of pre-tax income recorded in a period. Accordingly, in periods where a recorded pre-tax income is relatively small or a pre-tax loss, the proportional effect of these items on the effective tax rate may |
Note 7 - Equity Investments and
Note 7 - Equity Investments and Related Commitments and Contingent Liabilities Including Guarantees | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Note 7 EQUITY I NVESTMENTS AND RELATED COMMITMENTS AND CONTINGENT LIABILITIES INCLUDING GUARANTEES The Company’s Equity Investments include a 33% The Company leases its corporate office from the Partnership. The operating lease, under which the space was rented, expired February 28, 1994, $30,000 2016 2015. The Company’s Equity Investments also include a 47% November 2015. 26.3 |
Note 8 - Costs Incurred in Oil
Note 8 - Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure [Text Block] | Note 8 COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION, AND DEVELOPMENT ACTIVITIES All of the Company’s oil and gas operations are within the continental United States. In connection with its oil and gas operations, the following costs were incurred: Year Ended December 31, 2016 2015 Acquisition of Properties: Unproved $ 715,520 $ 360,685 Proved --- 108,384 Exploration Costs 856,075 846,879 Development Costs 254,351 620,893 Asset Retirement Obligation 18,321 49,275 |
Note 9 - Fair Value Measurement
Note 9 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 9 FAIR VALUE MEASUREMENTS Inputs used to measure fair value are organized into a fair value hierarchy based on how observable the inputs are. Level 1 2 3 2016 2015 2 3. Recurring Fair Value Measurements Certain of the Company’s assets are reported at fair value in the accompanying balance sheets on a recurring basis. The Company determined the fair value of the available-for-sale securities using quoted market prices for securities with similar maturity dates and interest rates. At December 31, 2016 2015, 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial Assets: Available-for-Sale Securities – U.S. Treasury Bills Maturing in 2017 $ --- $ 13,443,636 $ --- Trading Securities – Domestic Equities 333,516 --- --- International Equities 83,948 --- --- Others 56,243 --- --- 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial Assets: Available-for-Sale Securities – U.S. Treasury Bills Maturing in 2016 $ --- $ 8,642,053 $ --- Trading Securities – Domestic Equities 292,820 --- --- International Equities 100,920 --- --- Others 16,984 --- --- Non-recurring Fair Value Measurements The Company’s asset retirement obligation incurred annually represents non-recurring fair value liabilities. The fair value of the non-financial liabilities incurred was $18,321 2016 $49,275 2015 3 2 The fair value of oil and gas properties used in estimating impairment losses of $727,845 2016 $3,726,267 2015 3 10 Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, marketable securities, trade payables, and dividends payable. As of December 31, 2016 2015, |
Note 10 - Long-lived Assets Imp
Note 10 - Long-lived Assets Impairment Loss | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Long Lived Assets Impairment Loss [Text Block] | Note 10 LONG-LIVED ASSETS IMPAIRMENT LOSS Certain oil and gas producing properties have been deemed to be impaired because the assets, evaluated on a property-by-property basis, are not expected to recover their entire carrying value through future cash flows. Impairment losses totaling $727,845 2016 $3,726,267 2015 2016 2015 |
Note 11 - Other Income, Net
Note 11 - Other Income, Net | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Other Income and Other Expense Disclosure [Text Block] | Note 11 OTHER INCOME, NET The following is an analysis of the components of Other Income, Net: 2016 2015 Net Realized and Unrealized Gain (Loss) on Trading Securities $ 61,729 $ (35,741 ) Gains on Asset Sales 22,123 68,487 Interest Income 46,370 13,353 Settlements of Class Action Lawsuits 55,048 5,593 Agricultural Rental Income 5,600 5,600 Dividend Income 1,254 1,033 Income from Other Investments 155,000 60,000 Interest and Other Expenses (47,532 ) (48,047 ) Other Income, Net $ 299,592 $ 70,278 |
Note 12 - Certain Relationships
Note 12 - Certain Relationships and Related Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 12 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS The Company is affiliated by common management and ownership with Mesquite Minerals, Inc. (Mesquite), Mid-American Oil Company (Mid-American) and Lochbuie Limited Liability Company (LLTD). The Company also owns interests in certain producing and non-producing oil and gas properties as tenants Mesquite, Mid-American and LLTD share facilities and employees including executive officers with the Company. The Company has been reimbursed for services, facilities, and miscellaneous business expenses incurred in 2016 $182,926 2015 $194,686 2016 $132,215 2015, $132,611 |
Note 13 - Subsequent Events
Note 13 - Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 13 SUBSEQUENT EVENTS In January 2017, $440,000 10% $56,164 $440,000 March 31, 2017. |
Supplemental Schedules of Oil a
Supplemental Schedules of Oil and Gas Information | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Oil and Gas Exploration and Production Industries Disclosures [Text Block] | SUPPLEMENTAL SCHEDULE 1 THE RESERVE PETROLEUM COMPANY WORKING INTEREST RESERVE QUANTITY INFORMATION (Unaudited) Year Ended December 31, 2016 2015 Oil and Condensate (Bbls) Proved Developed and Undeveloped Reserves: Beginning of Year 462,241 523,871 Revisions of Previous Estimates (1,977 ) (580 ) Extensions and Discoveries 9,148 23,159 Purchase of Reserves --- --- Production (67,828 ) (84,209 ) End of Year 401,584 462,241 Proved Developed Reserves: Beginning of Year 415,402 482,717 End of Year 358,822 415,402 Gas (MCF) Proved Developed and Undeveloped Reserves: Beginning of Year 3,637,626 4,477,027 Revisions of Previous Estimates (49,227 ) (154,733 ) Extensions and Discoveries 71,715 73,220 Purchase of Reserves --- --- Production (636,360 ) (757,888 ) End of Year 3,023,754 3,637,626 Proved Developed Reserves: Beginning of Year 3,309,750 4,188,946 End of Year 2,809,944 3,309,750 See notes on next page. SUPPLEMENTAL SCHEDULE 1 THE RESERVE PETROLEUM COMPANY WORKING INTEREST RESERVE QUANTITY INFORMATION (Unaudited) Notes: 1. Estimates of royalty interests’ reserves, on properties in which the Company does not own a working interest, have not been included because the information required for the estimation of such reserves is not available. The Company’s share of production from its net royalty interests was 17,423 335,081 2016 21,507 361,304 2015. 2. The preceding table sets forth estimates of the Company’s proved oil and gas reserves, together with the changes in those reserves, as prepared by the Company’s engineer for 2016 2015. 10 10 3. The Company emphasizes that the reserve volumes shown are estimates, which by their nature are subject to revision in the near term. The estimates have been made by utilizing geological and reservoir data, as well as actual production performance data available to the Company. These estimates are reviewed annually and are revised upward or downward as warranted by additional performance data. The Company’s engineer is not independent, but strives to use an objective approach in calculating the Company’s working interest reserve estimates. 4. The Company’s internal controls relating to the calculation of its working interests’ reserve estimates include review and testing of the accounting data flowing into the calculation of the reserve estimates. In addition, the average oil and natural gas product prices calculated in the engineer’s 2016 2016 SUPPLEMENTAL SCHEDULE 2 THE RESERVE PETROLEUM COMPANY STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS RELATING TO PROVED WORKING INTEREST OIL AND GAS RESERVES (Unaudited) At December 31, 2016 2015 Future Cash Inflows $ 20,452,614 $ 26,969,731 Future Production and Development Costs (11,392,251 ) (13,382,527 ) Future Asset Retirement Obligation (1,802,124 ) (1,873,242 ) Future Income Tax Benefit (Expense) 369,553 (1,057,870 ) Future Net Cash Flows 7,627,792 10,656,092 10% Annual Discount for Estimated Timing of Cash Flows (2,373,717 ) (3,250,586 ) Standardized Measure of Discounted Future Net Cash Flows $ 5,254,075 $ 7,405,506 Estimates of future net cash flows from the Company’s proved working interests in oil and gas reserves are shown in the table above. These estimates, which by their nature are subject to revision in the near term, were based on an average monthly product price received by the Company for 2015 2016, SUPPLEMENTAL SCHEDULE 3 THE RESERVE PETROLEUM COMPANY CHANGES IN STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS FROM PROVED WORKING INTEREST RESERVE QUANTITIES (Unaudited) Year Ended December 31, 2016 2015 Standardized Measure, Beginning of Year $ 7,405,506 $ 21,693,023 Sales and Transfers, Net of Production Costs (1,935,438 ) (3,145,463 ) Net Change in Sales and Transfer Prices, Net of Production Costs (1,992,946 ) (17,350,045 ) Extensions, Discoveries and Improved Recoveries, Net of Future Production and Development Costs 347,007 745,025 Revisions of Quantity Estimates (62,357 ) (226,084 ) Accretion of Discount 1,006,978 2,921,430 Purchases of Reserves in Place --- --- Net Change in Income Taxes 1,009,435 4,836,078 Net Change in Asset Retirement Obligation (13,669 ) 15,800 Changes in Production Rates (Timing) and Other (510,441 ) (2,084,258 ) Standardized Measure, End of Year $ 5,254,075 $ 7,405,506 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with a maturity of three |
Investment, Policy [Policy Text Block] | Investments Marketable Securities: The Company classifies its debt and marketable equity securities in one two Trading and available-for-sale securities are recorded at fair value. Unrealized gains and losses on trading securities, which consist primarily of equity securities, are reported in current earnings. Unrealized gains and losses on available-for-sale securities, which consist entirely of U.S. Government securities, are reported as a component of other comprehensive income when significant to the financial statements. There are no significant cumulative unrealized gains or losses on available-for-sale securities as of December 31, 2016 2015. Equity and Cost Investments: The Company accounts for its non-marketable investment in partnerships on the equity method if ownership allows the Company to exercise significant influence, or the cost method, if not. See Note 7 |
Revenue Recognition, Policy [Policy Text Block] | Receivables and Revenue Recognition Oil and gas sales and resulting receivables are recognized when the product is delivered to the purchaser and title has transferred. Sales are to credit-worthy major energy purchasers with payments generally received within 60 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Oil and gas properties are accounted for on the successful efforts method. The acquisition, exploration and development costs of producing properties are capitalized. The Company has not historically had any capitalized exploratory drilling costs that are pending determination of reserves for more than one Depreciation, depletion and amortization of producing properties is computed on the units-of-production method on a property-by-property basis. The units-of-production method is based primarily on estimates of proved reserve quantities. Due to uncertainties inherent in this estimation process, it is at least reasonably possible that reserve quantities will be revised in the near term. Changes in estimated reserve quantities are applied to depreciation, depletion and amortization computations prospectively. Other property and equipment are depreciated on the straight-line, declining-balance, or other accelerated methods as appropriate. The following estimated useful lives are used for the different types of property: Office furniture and fixtures (years) 5 to 10 Automotive equipment (years) 5 to 8 Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present. The Company uses its oil and gas reserve reports to test each producing property for impairment quarterly. See Note 10 |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company utilizes an asset/liability approach to calculating deferred income taxes. Deferred income taxes are provided to reflect temporary differences in the basis of net assets and liabilities for income tax and financial reporting purposes. Deferred tax assets are reduced by a valuation allowance if a determination is made that it is more likely than not that some or all of the deferred assets will not be realized based on the weight of all available evidence. The Company recognizes a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, based upon the technical merits of the position. The Company will record the largest amount of tax benefit that is greater than 50% The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The federal income tax returns for 2013, 2014 2015 |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share Accounting guidance for Earnings Per Share (EPS) establishes the methodology of calculating basic earnings per share and diluted earnings per share. The calculations of basic earnings per share and diluted earnings per share differ in that instruments convertible to common stock (such as stock options, warrants, and convertible preferred stock) are added to weighted average shares outstanding when computing diluted earnings per share. For 2016 2015, |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk and Major Customers The Company’s receivables relate primarily to sales of oil and natural gas to purchasers with operations in Texas, Oklahoma, Kansas, and South Dakota. The Company had two 2016 35% one 2015 27% The Company maintains its cash in bank deposit accounts, which at times may |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates include oil and natural gas reserve quantities that form the basis for the calculation of amortization of oil and natural gas properties. Management emphasizes that reserve estimates are inherently imprecise and that estimates of more recent reserve discoveries are more imprecise than those for properties with long production histories. Actual results could differ from the estimates and assumptions used in the preparation of the Company’s financial statements. |
Gas Balancing Arrangements, Policy [Policy Text Block] | Gas Balancing Gas imbalances are accounted for under the sales method whereby revenues are recognized based on production sold. A liability is recorded when the Company’s excess takes of natural gas volumes exceed our estimated remaining recoverable reserves (over-produced). No receivables are recorded for those wells where the Company has taken less than our ownership share of gas production (under-produced). |
Minimum Guarantees, Policy [Policy Text Block] | Guarantees At the inception of a guarantee or subsequent modification, the Company records a liability for the fair value of the obligation undertaken in issuing the guarantee. The Company records a liability for its obligations when it becomes probable that the Company will have to perform under the guarantee. The Company has issued guarantees associated with the Company’s equity investments. |
Asset Retirement Obligations, Policy [Policy Text Block] | Asset Retirement Obligation The Company records the fair value of its estimated liability to retire its oil and natural gas producing properties in the period in which it is incurred (typically the date of first 4.08%. first 3.25%. The following table summarizes the asset retirement obligation for 2016 2015: 2016 2015 Beginning balance at January 1 $ 1,677,328 $ 1,645,597 Liabilities incurred 18,321 49,275 Liabilities settled (wells sold or plugged) (20,542 ) (17,214 ) Accretion expense 47,018 47,531 Revision to estimate (11,448 ) (47,861 ) Ending balance at December 31 $ 1,710,677 $ 1,677,328 |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In May 2014, 2014 09, Revenue from Contracts with Customers 2014 09 Generally Accepted Accounting Principles (“GAAP”) under which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014 09 January 1, 2018. 2014 09 In November 2015, 2015 17, Balance Sheet Classification of Deferred Taxes December 15, 2016, 2015 17 December 31, 2016, $61,710 $12,487 December 31, 2016, December 31, 2015, 2015 17 10 2015 17. In January, 2016, 2016 01, Recognition and Measurement of Financial Assets and Liabilities 2016 01 December 15, 2017 In February 2016, 2016 02, Leases 12 2016 02 December 15, 2018, In August 2016, 2016 15, Classification of Certain Cash Receipts and Cash Payments may one December 15, 2017, 2016 15 |
Note 2 - Summary of Significa21
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule Of Useful Lives Of Property And Equipment [Table Text Block] | Office furniture and fixtures (years) 5 to 10 Automotive equipment (years) 5 to 8 |
Schedule of Asset Retirement Obligations [Table Text Block] | 2016 2015 Beginning balance at January 1 $ 1,677,328 $ 1,645,597 Liabilities incurred 18,321 49,275 Liabilities settled (wells sold or plugged) (20,542 ) (17,214 ) Accretion expense 47,018 47,531 Revision to estimate (11,448 ) (47,861 ) Ending balance at December 31 $ 1,710,677 $ 1,677,328 |
Note 4 - Common Stock (Tables)
Note 4 - Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | Shares of Shares Treasury Shares Issued Stock Outstanding January 1, 2015, $.50 par value stock, 184,735 26,063 158,672 Purchase of stock --- 214 (214 ) December 31, 2015, $.50 par value stock, 184,735 26,277 158,458 Purchase of stock --- 554 (554 ) December 31, 2016, $.50 par value stock, 184,735 26,831 157,904 |
Note 6 - Income Taxes (Tables)
Note 6 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2016 2015 Assets: Net Leasehold Impairment Reserves $ 290,167 $ 298,061 Gas Balance Receivable 52,379 52,379 Long-Lived Asset Impairment 1,745,936 2,163,449 Deferred Geological and Geophysical Expense 62,720 110,107 Other 406,579 385,307 Total Assets 2,557,781 3,009,303 Liabilities: Receivables 91,622 70,335 Intangible Drilling Costs 2,856,294 3,434,057 Depletion, Depreciation and Other 1,121,025 1,131,281 Total Liabilities 4,068,941 4,635,673 Net Deferred Tax Liability $ (1,511,160 ) $ (1,626,370 ) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2016 2015 Current Tax Provision/(Benefit): Federal $ (57,494 ) $ 402,676 State (182 ) (15,790 ) Total Current Provision/(Benefit) (57,676 ) 386,886 Deferred Tax Benefit (115,210 ) (1,859,431 ) Total Benefit $ (172,886 ) $ (1,472,545 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2016 2015 Computed Federal Tax Benefit $ (87,418 ) $ (1,141,678 ) Increase (Decrease) in Tax From: Allowable Depletion in Excess of Basis (83,460 ) (359,552 ) Dividend Received Deduction (878 ) (723 ) State Income Tax Benefit (182 ) (15,790 ) Other (948 ) 45,198 Income Tax Benefit $ (172,886 ) $ (1,472,545 ) Effective Tax Rate 67% 44% |
Note 8 - Costs Incurred in Oi24
Note 8 - Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Oil and Gas In Process Activities [Table Text Block] | Year Ended December 31, 2016 2015 Acquisition of Properties: Unproved $ 715,520 $ 360,685 Proved --- 108,384 Exploration Costs 856,075 846,879 Development Costs 254,351 620,893 Asset Retirement Obligation 18,321 49,275 |
Note 9 - Fair Value Measureme25
Note 9 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | 2016 Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial Assets: Available-for-Sale Securities – U.S. Treasury Bills Maturing in 2017 $ --- $ 13,443,636 $ --- Trading Securities – Domestic Equities 333,516 --- --- International Equities 83,948 --- --- Others 56,243 --- --- 2015 Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial Assets: Available-for-Sale Securities – U.S. Treasury Bills Maturing in 2016 $ --- $ 8,642,053 $ --- Trading Securities – Domestic Equities 292,820 --- --- International Equities 100,920 --- --- Others 16,984 --- --- |
Note 11 - Other Income, Net (Ta
Note 11 - Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Interest and Other Income [Table Text Block] | 2016 2015 Net Realized and Unrealized Gain (Loss) on Trading Securities $ 61,729 $ (35,741 ) Gains on Asset Sales 22,123 68,487 Interest Income 46,370 13,353 Settlements of Class Action Lawsuits 55,048 5,593 Agricultural Rental Income 5,600 5,600 Dividend Income 1,254 1,033 Income from Other Investments 155,000 60,000 Interest and Other Expenses (47,532 ) (48,047 ) Other Income, Net $ 299,592 $ 70,278 |
Supplemental Schedules of Oil27
Supplemental Schedules of Oil and Gas Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block] | Year Ended December 31, 2016 2015 Oil and Condensate (Bbls) Proved Developed and Undeveloped Reserves: Beginning of Year 462,241 523,871 Revisions of Previous Estimates (1,977 ) (580 ) Extensions and Discoveries 9,148 23,159 Purchase of Reserves --- --- Production (67,828 ) (84,209 ) End of Year 401,584 462,241 Proved Developed Reserves: Beginning of Year 415,402 482,717 End of Year 358,822 415,402 Gas (MCF) Proved Developed and Undeveloped Reserves: Beginning of Year 3,637,626 4,477,027 Revisions of Previous Estimates (49,227 ) (154,733 ) Extensions and Discoveries 71,715 73,220 Purchase of Reserves --- --- Production (636,360 ) (757,888 ) End of Year 3,023,754 3,637,626 Proved Developed Reserves: Beginning of Year 3,309,750 4,188,946 End of Year 2,809,944 3,309,750 |
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure [Table Text Block] | At December 31, 2016 2015 Future Cash Inflows $ 20,452,614 $ 26,969,731 Future Production and Development Costs (11,392,251 ) (13,382,527 ) Future Asset Retirement Obligation (1,802,124 ) (1,873,242 ) Future Income Tax Benefit (Expense) 369,553 (1,057,870 ) Future Net Cash Flows 7,627,792 10,656,092 10% Annual Discount for Estimated Timing of Cash Flows (2,373,717 ) (3,250,586 ) Standardized Measure of Discounted Future Net Cash Flows $ 5,254,075 $ 7,405,506 |
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows [Table Text Block] | Year Ended December 31, 2016 2015 Standardized Measure, Beginning of Year $ 7,405,506 $ 21,693,023 Sales and Transfers, Net of Production Costs (1,935,438 ) (3,145,463 ) Net Change in Sales and Transfer Prices, Net of Production Costs (1,992,946 ) (17,350,045 ) Extensions, Discoveries and Improved Recoveries, Net of Future Production and Development Costs 347,007 745,025 Revisions of Quantity Estimates (62,357 ) (226,084 ) Accretion of Discount 1,006,978 2,921,430 Purchases of Reserves in Place --- --- Net Change in Income Taxes 1,009,435 4,836,078 Net Change in Asset Retirement Obligation (13,669 ) 15,800 Changes in Production Rates (Timing) and Other (510,441 ) (2,084,258 ) Standardized Measure, End of Year $ 5,254,075 $ 7,405,506 |
Note 2 - Summary of Significa28
Note 2 - Summary of Significant Accounting Policies (Details Textual) shares in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | |
Current Year Inflation Rate | 4.08% | |
Change In Present Value Percent | 3.25% | |
Weighted Average Number of Shares Outstanding, Diluted | shares | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | $ 0 | $ 0 |
Reclassification of Deferred Tax Liabilities From Other Current Liabilities to Deferred Tax Liabilities, Net [Member] | Accounting Standards Update 2015-17 [Member] | ||
Current Period Reclassification Adjustment | 61,710 | |
Reclassification of Deferred Tax Liabilities From Other Current Liabilities to Deferred Tax Liabilities, Net [Member] | Accounting Standards Update 2015-17 [Member] | December 31, 2015 [Member] | ||
Prior Period Reclassification Adjustment | $ 12,487 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||
Number of Major Customers | 2 | 1 |
Concentration Risk, Percentage | 35.00% | 27.00% |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Tax Year 2013 [Member] | ||
Open Tax Year | 2,013 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Tax Year 2014 [Member] | ||
Open Tax Year | 2,014 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Tax Year 2015 [Member] | ||
Open Tax Year | 2,015 |
Note 2 - Summary of Significa29
Note 2 - Summary of Significant Accounting Policies - Property, Plant, and Equipment, Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property useful lives (Year) | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property useful lives (Year) | 10 years |
Automobiles [Member] | Minimum [Member] | |
Property useful lives (Year) | 5 years |
Automobiles [Member] | Maximum [Member] | |
Property useful lives (Year) | 8 years |
Note 2 - Summary of Significa30
Note 2 - Summary of Significant Accounting Policies - Asset Retirement Obligation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance , asset retirement obligation | $ 1,677,328 | $ 1,645,597 |
Liabilities incurred | 18,321 | 49,275 |
Liabilities settled (wells sold or plugged) | (20,542) | (17,214) |
Accretion expense | 47,018 | 47,531 |
Revision to estimate | (11,448) | (47,861) |
Balance , asset retirement obligation | $ 1,710,677 | $ 1,677,328 |
Note 4 - Common Stock - Changes
Note 4 - Common Stock - Changes in Common Stock Issued and Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance, shares issued (in shares) | 184,735 | 184,735 |
Balance, treasury stock (in shares) | 26,277 | 26,063 |
Balance, shares outstanding (in shares) | 158,458 | 158,672 |
Purchase of stock (in shares) | 554 | 214 |
Purchase of stock (in shares) | (554) | (214) |
Balance, shares issued (in shares) | 184,735 | 184,735 |
Balance, treasury stock (in shares) | 26,831 | 26,277 |
Balance, shares outstanding (in shares) | 157,904 | 158,458 |
Balance, treasury stock (in shares) | 26,277 | 26,063 |
Balance, shares outstanding (in shares) | 158,458 | 158,672 |
Note 4 - Common Stock - Chang32
Note 4 - Common Stock - Changes in Common Stock Issued and Outstanding (Details) (Parentheticals) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 200,000 | 200,000 | 200,000 |
Note 5 - Marketable Securities
Note 5 - Marketable Securities (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Trading Securities, Realized Gain (Loss) | $ (20,430) | $ 31,902 |
Trading Securities, Change in Unrealized Holding Gain (Loss) | $ 82,159 | $ (67,643) |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent | 67.00% | 44.00% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% |
Note 6 - Income Taxes - Deferre
Note 6 - Income Taxes - Deferred Taxes Components (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Net Leasehold Impairment Reserves | $ 290,167 | $ 298,061 |
Gas Balance Receivable | 52,379 | 52,379 |
Long-Lived Asset Impairment | 1,745,936 | 2,163,449 |
Deferred Geological and Geophysical Expense | 62,720 | 110,107 |
Other | 406,579 | 385,307 |
Total Assets | 2,557,781 | 3,009,303 |
Liabilities: | ||
Receivables | 91,622 | 70,335 |
Intangible Drilling Costs | 2,856,294 | 3,434,057 |
Depletion, Depreciation and Other | 1,121,025 | 1,131,281 |
Total Liabilities | 4,068,941 | 4,635,673 |
Net Deferred Tax Liability | $ (1,511,160) | $ (1,626,370) |
Note 6 - Income Taxes - Income
Note 6 - Income Taxes - Income Tax Expense, Current and Deferred Portions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Current Tax Provision/(Benefit): | ||
Federal | $ (57,494) | $ 402,676 |
State | (182) | (15,790) |
Total Current Provision/(Benefit) | (57,676) | 386,886 |
Deferred Tax Benefit | (115,210) | (1,859,431) |
Total Benefit | $ (172,886) | $ (1,472,545) |
Note 6 - Income Taxes - Reconci
Note 6 - Income Taxes - Reconciliation of Computed Income Tax (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Computed Federal Tax Benefit | $ (87,418) | $ (1,141,678) |
Increase (Decrease) in Tax From: | ||
Allowable Depletion in Excess of Basis | (83,460) | (359,552) |
Dividend Received Deduction | (878) | (723) |
State Income Tax Benefit | (182) | (15,790) |
Other | (948) | 45,198 |
Total Benefit | $ (172,886) | $ (1,472,545) |
Effective Tax Rate | 67.00% | 44.00% |
Note 7 - Equity Investments a38
Note 7 - Equity Investments and Related Commitments and Contingent Liabilities Including Guarantees (Details Textual) | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 30, 2015a | |
Broadway Sixty-Eight Partnership [Member] | |||
Equity Method Investment, Ownership Percentage | 33.00% | ||
Operating Leases, Rent Expense | $ 30,000 | ||
Grand Woods Development, LLC [Member] | |||
Equity Method Investment, Ownership Percentage | 47.00% | ||
Operating Leases, Rent Expense | $ 30,000 | ||
Area of Real Estate Property | a | 26.3 |
Note 8 - Costs Incurred in Oi39
Note 8 - Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities - Costs Related to Oil and Gas Operations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Acquisition of Properties: | ||
Unproved | $ 715,520 | $ 360,685 |
Proved | 108,384 | |
Exploration Costs | 856,075 | 846,879 |
Development Costs | 254,351 | 620,893 |
Liabilities incurred | $ 18,321 | $ 49,275 |
Note 9 - Fair Value Measureme40
Note 9 - Fair Value Measurements (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Asset Retirement Obligation, Liabilities Incurred | $ 18,321 | $ 49,275 |
Impairment Of Oil And Gas Cost Properties | 727,845 | 3,726,267 |
Fair Value, Inputs, Level 3 [Member] | ||
Asset Retirement Obligation, Liabilities Incurred | 18,321 | 49,275 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Impairment Of Oil And Gas Cost Properties | $ 727,845 | $ 3,726,267 |
Note 9 - Fair Value Measureme41
Note 9 - Fair Value Measurement - Schedule of Fair Value Reported on a Recurring Basis (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-Sale Securities (Notes 2 & 5) | $ 13,443,636 | $ 8,642,053 |
Trading Securities | 473,707 | 410,724 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-Sale Securities (Notes 2 & 5) | 8,642,053 | |
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-Sale Securities (Notes 2 & 5) | ||
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-Sale Securities (Notes 2 & 5) | 13,443,636 | |
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-Sale Securities (Notes 2 & 5) | ||
Domestic Equities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Trading Securities | 333,516 | 292,820 |
Domestic Equities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Trading Securities | ||
Domestic Equities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Trading Securities | ||
International Equities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Trading Securities | 83,948 | 100,920 |
International Equities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Trading Securities | ||
International Equities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Trading Securities | ||
Other [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Trading Securities | 56,243 | 16,984 |
Other [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Trading Securities | ||
Other [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Trading Securities |
Note 10 - Long-lived Assets I42
Note 10 - Long-lived Assets Impairment Loss (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Impairment Of Oil And Gas Cost Properties | $ 727,845 | $ 3,726,267 |
Note 11 - Other Income, Net - S
Note 11 - Other Income, Net - Schedule of Components of Other Income, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net Realized and Unrealized Gain (Loss) on Trading Securities | $ 61,729 | $ (35,741) |
Gains on Asset Sales | 22,123 | 68,487 |
Interest Income | 46,370 | 13,353 |
Settlements of Class Action Lawsuits | 55,048 | 5,593 |
Agricultural Rental Income | 5,600 | 5,600 |
Dividend Income | 1,254 | 1,033 |
Income from Other Investments | 155,000 | 60,000 |
Interest and Other Expenses | (47,532) | (48,047) |
Other Income, Net | $ 299,592 | $ 70,278 |
Note 12 - Certain Relationshi44
Note 12 - Certain Relationships and Related Transactions (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Lochbuie Limited Liability Company, LLTD [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 182,926 | $ 194,686 |
Lochbuie Limited Liability Company, LLTD [Member] | Payments For Salaries [Member] | ||
Related Party Transaction, Amounts of Transaction | 132,215 | 132,611 |
Mesquite [Member] | ||
Related Party Transaction, Amounts of Transaction | 194,686 | |
Mesquite [Member] | Payments For Salaries [Member] | ||
Related Party Transaction, Amounts of Transaction | 132,215 | 132,611 |
Mid American [Member] | ||
Related Party Transaction, Amounts of Transaction | 182,926 | 194,686 |
Mid American [Member] | Payments For Salaries [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 132,215 | $ 132,611 |
Note 13 - Subsequent Events (De
Note 13 - Subsequent Events (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cost Method Investments | $ 1,906,856 | $ 876,856 | ||
OKC Industrial Properties [Member] | ||||
Cost Method Investment, Ownership Percentage | 10.00% | |||
OKC Industrial Properties [Member] | Scenario, Forecast [Member] | ||||
Income (Loss) from Cost Method Investment | $ 440,000 | |||
OKC Industrial Properties [Member] | Investments: Other at Cost [Member] | ||||
Cost Method Investments | $ 56,164 | |||
OKC Industrial Properties [Member] | Subsequent Event [Member] | ||||
Proceeds from Cost Method Investment | $ 440,000 |
Supplemental Schedules of Oil46
Supplemental Schedules of Oil and Gas Information (Details Textual) | 12 Months Ended | |
Dec. 31, 2016bblMMcf | Dec. 31, 2015bblMMcf | |
Oil and Condensate (Bbls) [Member] | ||
Proved Developed and Undeveloped Reserves Production Royalty | bbl | 17,423 | 21,507 |
Gas (MCF) [Member] | ||
Proved Developed and Undeveloped Reserves Production Royalty | MMcf | 335,081 | 361,304 |
Supplemental Schedules of Oil47
Supplemental Schedules of Oil and Gas Information - Working Interest Reserve Quantity Information (Details) - bbl | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Oil and Condensate (Bbls) [Member] | ||
Beginning of Year (Barrel of Oil) | 462,241 | 523,871 |
Revisions of Previous Estimates (Barrel of Oil) | (1,977) | (580) |
Extensions and Discoveries (Barrel of Oil) | 9,148 | 23,159 |
Purchase of Reserves (Barrel of Oil) | ||
Production (Barrel of Oil) | (67,828) | (84,209) |
End of Year (Barrel of Oil) | 401,584 | 462,241 |
Beginning of Year (Barrel of Oil) | 415,402 | 482,717 |
End of Year (Barrel of Oil) | 358,822 | 415,402 |
Gas (MCF) [Member] | ||
Beginning of Year (Barrel of Oil) | 3,637,626 | 4,477,027 |
Revisions of Previous Estimates (Barrel of Oil) | (49,227) | (154,733) |
Extensions and Discoveries (Barrel of Oil) | 71,715 | 73,220 |
Purchase of Reserves (Barrel of Oil) | ||
Production (Barrel of Oil) | (636,360) | (757,888) |
End of Year (Barrel of Oil) | 3,023,754 | 3,637,626 |
Beginning of Year (Barrel of Oil) | 3,309,750 | 4,188,946 |
End of Year (Barrel of Oil) | 2,809,944 | 3,309,750 |
Supplemental Schedules of Oil48
Supplemental Schedules of Oil and Gas Information - Standardized Measure of Discounted Future Net Cash Flows (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Future Cash Inflows | $ 20,452,614 | $ 26,969,731 | |
Future Production and Development Costs | (11,392,251) | (13,382,527) | |
Future Asset Retirement Obligation | (1,802,124) | (1,873,242) | |
Future Income Tax Benefit (Expense) | 369,553 | (1,057,870) | |
Future Net Cash Flows | 7,627,792 | 10,656,092 | |
10% Annual Discount for Estimated Timing of Cash Flows | (2,373,717) | (3,250,586) | |
Standardized Measure of Discounted Future Net Cash Flows | $ 5,254,075 | $ 7,405,506 | $ 21,693,023 |
Supplemental Schedules of Oil49
Supplemental Schedules of Oil and Gas Information - Changes in Standardized Measure of Discounted Future Net Cash Flows (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Standardized Measure, Beginning of Year | $ 7,405,506 | $ 21,693,023 |
Sales and Transfers, Net of Production Costs | (1,935,438) | (3,145,463) |
Net Change in Sales and Transfer Prices, Net of Production Costs | (1,992,946) | (17,350,045) |
Extensions, Discoveries and Improved Recoveries, Net of Future Production and Development Costs | 347,007 | 745,025 |
Revisions of Quantity Estimates | (62,357) | (226,084) |
Accretion of Discount | 1,006,978 | 2,921,430 |
Purchases of Reserves in Place | ||
Net Change in Income Taxes | 1,009,435 | 4,836,078 |
Net Change in Asset Retirement Obligation | (13,669) | 15,800 |
Changes in Production Rates (Timing) and Other | (510,441) | (2,084,258) |
Standardized Measure, End of Year | $ 5,254,075 | $ 7,405,506 |