Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 23, 2018 | Jun. 30, 2017 | |
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) | 157,599 | ||
Entity Public Float | $ 25,095,004 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and Cash Equivalents (Note 2) | $ 4,767,810 | $ 8,071,854 |
Available-for-Sale Securities (Notes 2, 5 & 9) | 16,371,544 | 13,443,636 |
Trading Securities (Notes 2, 5 & 9) | 559,936 | 473,707 |
Refundable Income Taxes | 326,830 | 536,798 |
Accounts Receivable (Note 2) | 829,824 | 764,641 |
Note Receivable (Note 7) | 175,000 | |
Total Current Assets | 23,030,944 | 23,290,636 |
Investments: | ||
Equity Investments (Notes 2 & 7) | 991,094 | 822,570 |
Other, at Cost (Notes 2 & 7) | 1,633,300 | 1,906,856 |
Total Investments | 2,624,394 | 2,729,426 |
Unproved Properties | 2,296,686 | 2,180,018 |
Proved Properties | 53,536,453 | 53,030,034 |
Oil and Gas Properties, Gross | 55,833,139 | 55,210,052 |
Less – Accumulated Depreciation, Depletion, Amortization and Valuation Allowance | 45,335,894 | 44,456,113 |
Oil and Gas Properties, Net | 10,497,245 | 10,753,939 |
Other Property and Equipment, at Cost | 404,256 | 406,430 |
Less – Accumulated Depreciation | 253,239 | 231,887 |
Other Property and Equipment, Net | 151,017 | 174,543 |
Total Property, Plant and Equipment | 10,648,262 | 10,928,482 |
Total Assets | 36,303,600 | 36,948,544 |
Current Liabilities: | ||
Accounts Payable | 235,007 | 161,749 |
Other Current Liabilities | 25,243 | 25,590 |
Total Current Liabilities | 260,250 | 187,339 |
Long-Term Liabilities: | ||
Asset Retirement Obligation (Note 2) | 1,774,634 | 1,710,677 |
Dividends Payable (Note 3) | 1,228,648 | 1,278,266 |
Deferred Tax Liability, Net (Note 6) | 918,050 | 1,511,160 |
Total Long-Term Liabilities | 3,921,332 | 4,500,103 |
Total Liabilities | 4,181,582 | 4,687,442 |
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 | 33,497,463 | 33,600,718 |
Stockholders’ Equity Before Treasury Stock | 33,654,831 | 33,758,086 |
Less – Treasury Stock, at Cost | 1,532,813 | 1,496,984 |
Total Stockholders’ Equity | 32,122,018 | 32,261,102 |
Total Liabilities and Stockholders’ Equity | $ 36,303,600 | $ 36,948,544 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Revenues: | ||
Oil and Gas Sales | $ 6,125,308 | $ 5,418,164 |
Lease Bonuses and Other | 184,282 | 872,974 |
Total Operating Revenues | 6,309,590 | 6,291,138 |
Operating Costs and Expenses: | ||
Production | 2,190,020 | 2,140,756 |
Exploration | 883,593 | 429,210 |
Depreciation, Depletion, Amortization and Valuation Provisions (Note 10) | 2,133,338 | 2,719,899 |
General, Administrative and Other | 1,620,955 | 1,580,776 |
Total Operating Costs and Expenses | 6,827,906 | 6,870,641 |
Loss from Operations | (518,316) | (579,503) |
Equity Income/(Loss) in Investees (Note 7) | (61,976) | 22,800 |
Other Income, Net (Note 11) | 683,397 | 299,592 |
Income/(Loss) Before Income Taxes | 103,105 | (257,111) |
Income Tax Benefit (Notes 2 & 6) | (582,582) | (172,886) |
Net Income/(Loss) | $ 685,687 | $ (84,225) |
Per Share Data (Note 2): | ||
Net Income/(Loss), Basic and Diluted (in dollars per share) | $ 4.35 | $ (0.53) |
Cash Dividends (in dollars per share) | $ 5 | $ 5 |
Weighted Average Shares Outstanding, Basic and Diluted (in shares) | 157,788 | 158,107 |
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, 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 |
Net Loss | 685,687 | 685,687 | |||
Dividends Declared | (788,942) | (788,942) | |||
Purchase of Treasury Stock | (35,829) | (35,829) | |||
Balance at Dec. 31, 2017 | $ 92,368 | $ 65,000 | $ 33,497,463 | $ (1,532,813) | $ 32,122,018 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash from Operating Activities: | ||
Oil and Gas Sales | $ 6,029,703 | $ 5,346,837 |
Lease Bonuses and Other | 184,282 | 872,974 |
Sale of Trading Securities | 3,483,394 | 858,921 |
Interest Received | 119,265 | 42,228 |
Agricultural Rentals and Other | 9,140 | 60,648 |
Dividends Received on Trading Securities | 2,597 | 1,254 |
Cash Distributions from Equity Investments | 49,500 | 165,000 |
Income Tax Refunds, Net of Income Taxes Paid | 199,439 | 8,930 |
Cash Paid – | ||
Production Costs | (2,195,844) | (2,132,055) |
General Suppliers, Employees and Taxes, Other than Income Taxes | (1,623,453) | (1,587,921) |
Purchase of Trading Securities | (3,486,002) | (860,175) |
Farm Expense and Other | (569) | (513) |
Net Cash Provided by Operating Activities | 2,771,452 | 2,776,128 |
Cash Provided by/(Applied to) Investing Activities: | ||
Maturity of Available-for-Sale Securities | 29,841,639 | 17,283,067 |
Purchase of Available-for-Sale Securities | (32,769,546) | (22,084,650) |
Proceeds from Disposal of Property, Plant and Equipment | 150,948 | 23,774 |
Purchase of Property, Plant and Equipment | (2,688,759) | (1,978,179) |
Cash Distributions from Other Investments | 445,000 | 155,000 |
Purchase of Equity and Other Investments | (6,444) | (1,030,000) |
Note Receivable | (175,000) | |
Net Cash Applied to Investing Activities | (5,202,162) | (7,630,988) |
Cash Applied to Financing Activities: | ||
Dividends Paid to Stockholders | (837,505) | (921,667) |
Purchase of Treasury Stock | (35,829) | (88,834) |
Total Cash Applied to Financing Activities | (873,334) | (1,010,501) |
Net Change in Cash and Cash Equivalents | (3,304,044) | (5,865,361) |
Cash and Cash Equivalents at Beginning of Year | 8,071,854 | 13,937,215 |
Cash and Cash Equivalents at End of Year | 4,767,810 | 8,071,854 |
Reconciliation of Net Income/(Loss) to Net Cash Provided by Operating Activities: | ||
Net Income/(Loss) | 685,687 | (84,225) |
Net Income/(Loss) Increased (Decreased) by Net Change in – | ||
Net Unrealized Holding (Gains)/Losses on Trading Securities | (48,738) | (82,159) |
Accounts Receivable | (95,259) | (70,046) |
Interest and Dividends Receivable | (11,233) | (4,142) |
Refundable Income Taxes | 209,968 | (48,746) |
Accounts Payable | (13,034) | 5,911 |
Trading Securities | (37,491) | 19,176 |
Deferred Taxes | (593,111) | (115,210) |
Other Liabilities | 46,228 | 46,602 |
Income from Equity and Other Investments | (383,024) | (177,800) |
Cash Distributions from Equity Investments | 49,500 | 165,000 |
Exploration Costs | 838,145 | 377,112 |
Disposition of Property, Plant and Equipment | (9,524) | 24,756 |
Depreciation, Depletion, Amortization and Valuation Provisions | 2,133,338 | 2,719,899 |
Net Cash Provided by Operating Activities | $ 2,771,452 | $ 2,776,128 |
Note 1 - Nature of Operations
Note 1 - Nature of Operations | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 | |
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 a vailable-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, 2017 2016. Equity and Cost Method 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. 7 Management reviews our cost method investments and the underlying projects and activity periodically and assesses the need for any impairment. Management does not 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 Historically, the Company has had little, if any, uncollectible receivables; therefore, an allowance for uncollectible accounts has not Property, Plant 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 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 a n 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 not The Company recognizes a tax benefit from an uncertain tax position when it is more likely than not 50% The Company recognizes interest and penalties related to unrecognized tax benef its in income tax expense. no December 31, 2017 2016. The federal income tax returns for 2014, 2015 2016 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 2017 2016, 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 2017 2016 35% The Company maintains its cash in bank deposit accounts, which at times may not not 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 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 record s 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 2017 2016: 201 7 201 6 Beginning balance at January 1 $ 1,710,677 $ 1,677,328 Liabilities incurred 31,627 18,321 Liabilities settled (wells sold or plugged) (22,573 ) (20,542 ) Accretion expense 46,574 47,018 Revision to estimate 8,329 (11,448 ) Ending balance at December 31 $ 1,774,634 $ 1,710,677 New Accounting Pronouncements In May 2014, No. 2014 09, Revenue from Contracts with Customers. 2014 09 605, 932 605, five two March, April, May December 2016, 606, December 15, 2017, no January 1, 2018, not In January 2016, No. 2016 01 , Recognition and Measurement of Financial Assets and Liabilities 2016 01 December 15, 2017 not In February 2016, No. 2016 02, Leases not 12 2016 02 December 15, 2018, no not In August 2016, No. 2016 15, Classification of Certain Cash Receipts and Cash Payments may one December 15, 2017, 2016 15 not In January 2017, No. 2017 01, Business Combinations (Topic 805 2017 01 not not 2017 01 December 15, 2017, No January 1, 2018 Reclassifications Certain amounts in the 2016 2017 not no |
Note 3 - Dividends Payable
Note 3 - Dividends Payable | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Dividends Payable [Text Block] | Note 3 – DIVIDENDS PAYABLE Dividends payable include s 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, 2017 | |
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, 2016, $.50 par value stock, ,000 shares authorized 184,735 26,277 158,458 Purchase of stock --- 554 (554 ) December 31, 2016, $.50 par value stock, ,000 shares authorized 184,735 26,831 157,904 Purchase of stock --- 239 ( 239 ) December 31, 2017, $.50 par value stock, 00,000 shares authorized 184,735 27,070 157,665 |
Note 5 - Marketable Securities
Note 5 - Marketable Securities | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, one For trading securities , in 2017 $34,884 $48,738. 2016 $20,430 $82,159. |
Note 6 - Income Taxes
Note 6 - Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 6 – INCOME TAXES On December 22, 2017, 21%, January 1, 2018. not 2018, 2017 21%, $577,797 2017. The Act is a comprehensive tax reform bill containing a number of other provisions that either currently or in the future could impact the Company. The Company has completed the analysis of the Act and does not 2018 Components of deferred taxes are as follows: December 31, 2017 2016 Assets: Net Leasehold Impairment Reserves $ 189,867 $ 290,167 Gas Balance Receivable 32,352 52,379 Long-Lived Asset Impairment 945,399 1,745,936 Deferred Geological and Geophysical Expense 47,539 62,720 Other 266,141 406,579 Total Assets 1,481,298 2,557,781 Liabilities: Receivables 59,561 91,622 Intangible Drilling Costs 1,614,470 2,856,294 Depletion, Depreciation and Other 725,317 1,121,025 Total Liabilities 2,399,348 4,068,941 Net Deferred Tax Liability $ (918,050 ) $ (1,511,160 ) The decrease in the deferred tax liability for 2017 21% The following table summarizes the current and deferred portions of income tax expense: Year Ended December 31, 201 7 201 6 Current Tax Provision /(Benefit): Federal $ 10,362 $ (57,494 ) State 167 (182 ) Total Current Provision /(Benefit) 10,529 (57,676 ) Deferred Tax Benefit (593,111 ) (115,210 ) Total Benefit $ (582,582 ) $ (172,886 ) The total income tax benefit expressed as a percentage of income/(loss) before income tax, excluding effect of change in federal income tax rate discussed below, was 5% 2017 67% 2016. 2017 2016 Year Ended December 31, 201 7 201 6 Computed Federal Tax Provision/(Benefit) $ 35,035 $ (87,418 ) Increase (Decrease) in Tax From: Allowable Depletion in Excess of Basis (51,533 ) (83,460 ) Dividend Received Deduction (618 ) (878 ) State Income Tax Benefit (167 ) (182 ) Federal Income Tax Rate Change (577,797 ) --- Other 12,498 (948 ) Income Tax Benefit $ (582,582 ) $ (172,886 ) Effective Tax Rate 5% 67% 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 may |
Note 7 - Equity and Cost Method
Note 7 - Equity and Cost Method Investments and Related Commitments and Contingent Liabilities Including Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Note 7 – EQUITY AND COST METHOD INVESTMENTS AND RELATED COMMITMENTS AND CONTINGENT LIABILITIES INCLUDING GUARANTEES The Company ’s Equity Investments include: Broadway Sixty-Eight, Ltd. (the “Partnership”), an Oklahoma limited partnership, with a 33% no no February 28, 1994, $30,000 2017 2016. $171,243 $187,380 December 31, 2017 2016, Grand Woods Development, LLC (the “LLC”), an Oklahoma limited liability company, with a 47% 26.3 ’s investment in the LLC totaled $544,603 $635,190 December 31, 2017 2016, QSN Office Park (“QSN”), an Oklahoma limited liability company acquired in March 2016, 20% ’s investment in QSN totaled $275,248 $280,000 December 31, 2017 2016, The Company ’s Cost Method Investments include: OKC Industrial Properties (“OKC”), with a 10% 1992. 260 46 $56,164 December 31, 2017 2016. Bailey Hilltop Pipeline (“Bailey”), with a 10% 2008. $80,377 December 31, 2017 2016. Cloudburst Solutions (“Solutions”), with an 8.125% $500,000 2014 $750,000 2016. $1,250,000 December 31, 2017 2016. $175,000 Ocean’s NG (“Ocean”), with a 12.44% 2015. $206,444 $200,000 December 31, 2017 2016, |
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, 2017 | |
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, 201 7 201 6 Acquisition of Properties: Unproved $ 568,893 $ 715,520 Proved --- --- Exploration Costs 1,274,931 856,075 Development Costs 976,731 254,351 Asset Retirement Obligation 39,956 18,321 |
Note 9 - Fair Value Measurement
Note 9 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 9 – FAIR VALUE MEASUREMENTS Inp uts used to measure fair value are organized into a fair value hierarchy based on how observable the inputs are. Level 1 2 3 2017 2016 no 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, 2017 2016, 2017 Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial Assets: Available-for-Sale Securities – U.S. Treasury Bills Maturing in 2018 $ --- $ 16,371,544 $ --- Trading Securities – Domestic Equities 249,210 --- --- International Equities 271,921 --- --- Others 38,805 --- --- 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 --- --- 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 $31,627 2017 $18,321 2016 3 2 The fair value of oil and gas properties used in estimating impairment losses of $426,822 2017 $727,845 2016 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, 2017 2016, |
Note 10 - Long-lived Assets Imp
Note 10 - Long-lived Assets Impairment Loss | 12 Months Ended |
Dec. 31, 2017 | |
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 $426,822 2017 $727,845 2016 2017 2016 |
Note 11 - Other Income, Net
Note 11 - Other Income, Net | 12 Months Ended |
Dec. 31, 2017 | |
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: 201 7 201 6 Net Realized and Unrealized Gain (Loss) on Trading Securities $ 83,622 $ 61,729 Gains on Asset Sales 59,683 22,123 Interest Income 130,498 46,370 Settlements of Class Action Lawsuits 3,540 55,048 Agricultural Rental Income 5,600 5,600 Dividend Income 2,597 1,254 Income from Other Investments 445,000 155,000 Interest and Other Expenses (47,143 ) (47,532 ) Other Income, Net $ 683,397 $ 299,592 |
Note 12 - Certain Relationships
Note 12 - Certain Relationships and Related Transactions | 12 Months Ended |
Dec. 31, 2017 | |
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 in common with Mesquite, Mid-American and LLTD. 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 2017 $190,665 2016 $182,926 2017 $137,113 2016, $132,215 |
Supplemental Schedules of Oil a
Supplemental Schedules of Oil and Gas Information | 12 Months Ended |
Dec. 31, 2017 | |
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, 201 7 201 6 Oil and Condensate (Bbls) Proved Developed and Undeveloped Reserves : Beginning of Year 401,584 462,241 Revisions of Previous Estimates 18,951 (1,977 ) Extensions and Discoveries 16,405 9,148 Purchase of Reserves ------ --- Production (60,544 ) (67,828 ) End of Year 376,396 401,584 Proved Developed Reserves: Beginning of Year 358,822 415,402 End of Year 341,152 358,822 Gas (MCF) Proved Developed and Undeveloped Reserves: Beginning of Year 3,023,754 3,637,626 Revisions of Previous Estimates 494,665 (49,227 ) Extensions and Discoveries 190,923 71,715 Purchase of Reserves --- --- Production (517,831 ) (636,360 ) End of Year 3,191,511 3,023,754 Proved Developed Reserves: Beginning of Year 2,809,944 3,309,750 End of Year 2,944,804 2,809,944 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 not not 16,421 288,743 2017 17,423 335,081 2016. 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 2017 2016. 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 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 2017 2017 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, 201 7 201 6 Future Cash Inflows $ 25,418,030 $ 20,452,614 Future Production and Development Costs (12,989,835 ) (11,392,251 ) Future Asset Retirement Obligation (1,881,972 ) (1,802,124 ) Future Income Tax Benefit (Expense) (362,534 ) 369,553 Future Net Cash Flows 10,183,689 7,627,792 10% Annual Discount for Estimated Timing of Cash Flows (3,121,751 ) (2,373,717 ) Standardized Measure of Discounted Future Net Cash Flows $ 7,061,938 $ 5,254,075 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 2016 2017, no 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, 201 7 201 6 Standardized Measure, Beginning of Year $ 5,254,075 $ 7,405,506 Sales and Transfers, Net of Production Costs (2,343,561 ) (1,935,438 ) Net Change in Sales and Transfer Prices, Net of Production Costs 2,394,155 (1,992,946 ) Extensions, Discoveries and Improved Recoveries, Net of Future Production and Development Costs 710,294 347,007 Revisions of Quantity Estimates 929,958 (62,357 ) Accretion of Discount 689,080 1,006,978 Purchases of Reserves in Place --- --- Net Change in Income Taxes (517,818 ) 1,009,435 Net Change in Asset Retirement Obligation 17,383 (13,669 ) Changes in Production Rates (Timing) and Other (71,628 ) (510,441 ) Standardized Measure, End of Year $ 7,061,938 $ 5,254,075 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 a vailable-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, 2017 2016. Equity and Cost Method 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. 7 Management reviews our cost method investments and the underlying projects and activity periodically and assesses the need for any impairment. Management does not |
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 Historically, the Company has had little, if any, uncollectible receivables; therefore, an allowance for uncollectible accounts has not |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant 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 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 a n 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 not The Company recognizes a tax benefit from an uncertain tax position when it is more likely than not 50% The Company recognizes interest and penalties related to unrecognized tax benef its in income tax expense. no December 31, 2017 2016. The federal income tax returns for 2014, 2015 2016 |
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 2017 2016, no |
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 2017 2016 35% The Company maintains its cash in bank deposit accounts, which at times may not not |
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 |
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 record s 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 [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 2017 2016: 201 7 201 6 Beginning balance at January 1 $ 1,710,677 $ 1,677,328 Liabilities incurred 31,627 18,321 Liabilities settled (wells sold or plugged) (22,573 ) (20,542 ) Accretion expense 46,574 47,018 Revision to estimate 8,329 (11,448 ) Ending balance at December 31 $ 1,774,634 $ 1,710,677 |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In May 2014, No. 2014 09, Revenue from Contracts with Customers. 2014 09 605, 932 605, five two March, April, May December 2016, 606, December 15, 2017, no January 1, 2018, not In January 2016, No. 2016 01 , Recognition and Measurement of Financial Assets and Liabilities 2016 01 December 15, 2017 not In February 2016, No. 2016 02, Leases not 12 2016 02 December 15, 2018, no not In August 2016, No. 2016 15, Classification of Certain Cash Receipts and Cash Payments may one December 15, 2017, 2016 15 not In January 2017, No. 2017 01, Business Combinations (Topic 805 2017 01 not not 2017 01 December 15, 2017, No January 1, 2018 |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain amounts in the 2016 2017 not no |
Note 2 - Summary of Significa20
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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] | 201 7 201 6 Beginning balance at January 1 $ 1,710,677 $ 1,677,328 Liabilities incurred 31,627 18,321 Liabilities settled (wells sold or plugged) (22,573 ) (20,542 ) Accretion expense 46,574 47,018 Revision to estimate 8,329 (11,448 ) Ending balance at December 31 $ 1,774,634 $ 1,710,677 |
Note 4 - Common Stock (Tables)
Note 4 - Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | Shares of Shares Treasury Shares Issued Stock Outstanding January 1, 2016, $.50 par value stock, ,000 shares authorized 184,735 26,277 158,458 Purchase of stock --- 554 (554 ) December 31, 2016, $.50 par value stock, ,000 shares authorized 184,735 26,831 157,904 Purchase of stock --- 239 ( 239 ) December 31, 2017, $.50 par value stock, 00,000 shares authorized 184,735 27,070 157,665 |
Note 6 - Income Taxes (Tables)
Note 6 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2017 2016 Assets: Net Leasehold Impairment Reserves $ 189,867 $ 290,167 Gas Balance Receivable 32,352 52,379 Long-Lived Asset Impairment 945,399 1,745,936 Deferred Geological and Geophysical Expense 47,539 62,720 Other 266,141 406,579 Total Assets 1,481,298 2,557,781 Liabilities: Receivables 59,561 91,622 Intangible Drilling Costs 1,614,470 2,856,294 Depletion, Depreciation and Other 725,317 1,121,025 Total Liabilities 2,399,348 4,068,941 Net Deferred Tax Liability $ (918,050 ) $ (1,511,160 ) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 201 7 201 6 Current Tax Provision /(Benefit): Federal $ 10,362 $ (57,494 ) State 167 (182 ) Total Current Provision /(Benefit) 10,529 (57,676 ) Deferred Tax Benefit (593,111 ) (115,210 ) Total Benefit $ (582,582 ) $ (172,886 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 201 7 201 6 Computed Federal Tax Provision/(Benefit) $ 35,035 $ (87,418 ) Increase (Decrease) in Tax From: Allowable Depletion in Excess of Basis (51,533 ) (83,460 ) Dividend Received Deduction (618 ) (878 ) State Income Tax Benefit (167 ) (182 ) Federal Income Tax Rate Change (577,797 ) --- Other 12,498 (948 ) Income Tax Benefit $ (582,582 ) $ (172,886 ) Effective Tax Rate 5% 67% |
Note 8 - Costs Incurred in Oi23
Note 8 - Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Oil and Gas In Process Activities [Table Text Block] | Year Ended December 31, 201 7 201 6 Acquisition of Properties: Unproved $ 568,893 $ 715,520 Proved --- --- Exploration Costs 1,274,931 856,075 Development Costs 976,731 254,351 Asset Retirement Obligation 39,956 18,321 |
Note 9 - Fair Value Measureme24
Note 9 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | 2017 Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial Assets: Available-for-Sale Securities – U.S. Treasury Bills Maturing in 2018 $ --- $ 16,371,544 $ --- Trading Securities – Domestic Equities 249,210 --- --- International Equities 271,921 --- --- Others 38,805 --- --- 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 --- --- |
Note 11 - Other Income, Net (Ta
Note 11 - Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Interest and Other Income [Table Text Block] | 201 7 201 6 Net Realized and Unrealized Gain (Loss) on Trading Securities $ 83,622 $ 61,729 Gains on Asset Sales 59,683 22,123 Interest Income 130,498 46,370 Settlements of Class Action Lawsuits 3,540 55,048 Agricultural Rental Income 5,600 5,600 Dividend Income 2,597 1,254 Income from Other Investments 445,000 155,000 Interest and Other Expenses (47,143 ) (47,532 ) Other Income, Net $ 683,397 $ 299,592 |
Supplemental Schedules of Oil26
Supplemental Schedules of Oil and Gas Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block] | Year Ended December 31, 201 7 201 6 Oil and Condensate (Bbls) Proved Developed and Undeveloped Reserves : Beginning of Year 401,584 462,241 Revisions of Previous Estimates 18,951 (1,977 ) Extensions and Discoveries 16,405 9,148 Purchase of Reserves ------ --- Production (60,544 ) (67,828 ) End of Year 376,396 401,584 Proved Developed Reserves: Beginning of Year 358,822 415,402 End of Year 341,152 358,822 Gas (MCF) Proved Developed and Undeveloped Reserves: Beginning of Year 3,023,754 3,637,626 Revisions of Previous Estimates 494,665 (49,227 ) Extensions and Discoveries 190,923 71,715 Purchase of Reserves --- --- Production (517,831 ) (636,360 ) End of Year 3,191,511 3,023,754 Proved Developed Reserves: Beginning of Year 2,809,944 3,309,750 End of Year 2,944,804 2,809,944 |
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure [Table Text Block] | At December 31, 201 7 201 6 Future Cash Inflows $ 25,418,030 $ 20,452,614 Future Production and Development Costs (12,989,835 ) (11,392,251 ) Future Asset Retirement Obligation (1,881,972 ) (1,802,124 ) Future Income Tax Benefit (Expense) (362,534 ) 369,553 Future Net Cash Flows 10,183,689 7,627,792 10% Annual Discount for Estimated Timing of Cash Flows (3,121,751 ) (2,373,717 ) Standardized Measure of Discounted Future Net Cash Flows $ 7,061,938 $ 5,254,075 |
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows [Table Text Block] | Year Ended December 31, 201 7 201 6 Standardized Measure, Beginning of Year $ 5,254,075 $ 7,405,506 Sales and Transfers, Net of Production Costs (2,343,561 ) (1,935,438 ) Net Change in Sales and Transfer Prices, Net of Production Costs 2,394,155 (1,992,946 ) Extensions, Discoveries and Improved Recoveries, Net of Future Production and Development Costs 710,294 347,007 Revisions of Quantity Estimates 929,958 (62,357 ) Accretion of Discount 689,080 1,006,978 Purchases of Reserves in Place --- --- Net Change in Income Taxes (517,818 ) 1,009,435 Net Change in Asset Retirement Obligation 17,383 (13,669 ) Changes in Production Rates (Timing) and Other (71,628 ) (510,441 ) Standardized Measure, End of Year $ 7,061,938 $ 5,254,075 |
Note 2 - Summary of Significa27
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | $ 0 | $ 0 |
Unrecognized Tax Benefits | $ 0 | $ 0 |
Weighted Average Number of Shares Outstanding, Diluted | 0 | 0 |
Current Year Inflation Rate | 4.08% | |
Change In Present Value Percent | 3.25% | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||
Number of Major Customers | 2 | |
Concentration Risk, Percentage | 35.00% | |
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 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Tax Year 2016 [Member] | ||
Open Tax Year | 2,016 |
Note 2 - Summary of Significa28
Note 2 - Summary of Significant Accounting Policies - Property, Plant, and Equipment, Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 Significa29
Note 2 - Summary of Significant Accounting Policies - Asset Retirement Obligation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Balance , asset retirement obligation | $ 1,710,677 | $ 1,677,328 |
Liabilities incurred | 31,627 | 18,321 |
Liabilities settled (wells sold or plugged) | (22,573) | (20,542) |
Accretion expense | 46,574 | 47,018 |
Revision to estimate | 8,329 | (11,448) |
Balance , asset retirement obligation | $ 1,774,634 | $ 1,710,677 |
Note 4 - Common Stock - Changes
Note 4 - Common Stock - Changes in Common Stock Issued and Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
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 |
Purchase of stock (in shares) | 239 | 554 |
Purchase of stock (in shares) | (239) | (554) |
Balance, shares issued (in shares) | 184,735 | 184,735 |
Balance, treasury stock (in shares) | 27,070 | 26,831 |
Balance, shares outstanding (in shares) | 157,665 | 157,904 |
Note 4 - Common Stock - Chang31
Note 4 - Common Stock - Changes in Common Stock Issued and Outstanding (Details) (Parentheticals) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | 200,000,000 |
Note 5 - Marketable Securities
Note 5 - Marketable Securities (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Trading Securities, Realized Gain (Loss) | $ 34,884 | $ (20,430) |
Trading Securities, Change in Unrealized Holding Gain (Loss) | $ 48,738 | $ 82,159 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ (577,797) | ||
Effective Income Tax Rate Reconciliation, Percent | 5.00% | 67.00% | |
Scenario, Forecast [Member] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Note 6 - Income Taxes - Deferre
Note 6 - Income Taxes - Deferred Taxes Components (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Net Leasehold Impairment Reserves | $ 189,867 | $ 290,167 |
Gas Balance Receivable | 32,352 | 52,379 |
Long-Lived Asset Impairment | 945,399 | 1,745,936 |
Deferred Geological and Geophysical Expense | 47,539 | 62,720 |
Other | 266,141 | 406,579 |
Total Assets | 1,481,298 | 2,557,781 |
Liabilities: | ||
Receivables | 59,561 | 91,622 |
Intangible Drilling Costs | 1,614,470 | 2,856,294 |
Depletion, Depreciation and Other | 725,317 | 1,121,025 |
Total Liabilities | 2,399,348 | 4,068,941 |
Net Deferred Tax Liability | $ (918,050) | $ (1,511,160) |
Note 6 - Income Taxes - Income
Note 6 - Income Taxes - Income Tax Expense, Current and Deferred Portions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Current Tax Provision/(Benefit): | ||
Federal | $ 10,362 | $ (57,494) |
State | 167 | (182) |
Total Current Provision/(Benefit) | 10,529 | (57,676) |
Deferred Tax Benefit | (593,111) | (115,210) |
Total Benefit | $ (582,582) | $ (172,886) |
Note 6 - Income Taxes - Reconci
Note 6 - Income Taxes - Reconciliation of Computed Income Tax (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Computed Federal Tax Provision/(Benefit) | $ 35,035 | $ (87,418) |
Increase (Decrease) in Tax From: | ||
Allowable Depletion in Excess of Basis | (51,533) | (83,460) |
Dividend Received Deduction | (618) | (878) |
State Income Tax Benefit | (167) | (182) |
Federal Income Tax Rate Change | (577,797) | |
Other | 12,498 | (948) |
Total Benefit | $ (582,582) | $ (172,886) |
Effective Tax Rate | 5.00% | 67.00% |
Note 7 - Equity and Cost Meth37
Note 7 - Equity and Cost Method Investments and Related Commitments and Contingent Liabilities Including Guarantees (Details Textual) | 12 Months Ended | |||
Dec. 31, 2017USD ($)a | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 1992a | |
Equity Method Investments | $ 991,094 | $ 822,570 | ||
Cost Method Investments | 1,633,300 | 1,906,856 | ||
Notes, Loans and Financing Receivable, Net, Current | $ 175,000 | |||
OKC Industrial Properties [Member] | ||||
Area of Land | a | 46 | 260 | ||
Broadway Sixty-Eight Partnership [Member] | ||||
Equity Method Investment, Ownership Percentage | 33.00% | |||
Operating Leases, Rent Expense | $ 30,000 | 30,000 | ||
Equity Method Investments | $ 171,243 | 187,380 | ||
Grand Woods Development, LLC [Member] | ||||
Equity Method Investment, Ownership Percentage | 47.00% | |||
Equity Method Investments | $ 544,603 | 635,190 | ||
Area of Real Estate Property | a | 26.3 | |||
QSN Office Park [Member] | ||||
Equity Method Investment, Ownership Percentage | 20.00% | |||
Equity Method Investments | $ 275,248 | 280,000 | ||
OKC Industrial Properties [Member] | ||||
Cost Method Investment, Ownership Percentage | 10.00% | |||
Cost Method Investments | $ 56,164 | 56,164 | ||
Bailey [Member] | ||||
Cost Method Investment, Ownership Percentage | 10.00% | |||
Cost Method Investments | $ 80,377 | 80,377 | ||
Cloudburst Solutions [Member] | ||||
Cost Method Investment, Ownership Percentage | 8.125% | |||
Cost Method Investments | $ 1,250,000 | 1,250,000 | ||
Payments to Acquire Interest in Subsidiaries and Affiliates | 750,000 | $ 500,000 | ||
Notes, Loans and Financing Receivable, Net, Current | $ 175,000 | |||
Ocean [Member] | ||||
Cost Method Investment, Ownership Percentage | 12.44% | |||
Cost Method Investments | $ 206,444 | $ 200,000 |
Note 8 - Costs Incurred in Oi38
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, 2017 | Dec. 31, 2016 | |
Acquisition of Properties: | ||
Unproved | $ 568,893 | $ 715,520 |
Proved | ||
Exploration Costs | 1,274,931 | 856,075 |
Development Costs | 976,731 | 254,351 |
Liabilities incurred | $ 31,627 | $ 18,321 |
Note 9 - Fair Value Measureme39
Note 9 - Fair Value Measurements (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation, Liabilities Incurred | $ 31,627 | $ 18,321 |
Impairment Of Oil And Gas Cost Properties | 426,822 | 727,845 |
Fair Value, Inputs, Level 3 [Member] | ||
Asset Retirement Obligation, Liabilities Incurred | 31,627 | 18,321 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Impairment Of Oil And Gas Cost Properties | $ 426,822 | $ 727,845 |
Note 9 - Fair Value Measureme40
Note 9 - Fair Value Measurements - Schedule of Fair Value Reported on a Recurring Basis (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-Sale Securities (Notes 2, 5 & 9) | $ 16,371,544 | $ 13,443,636 |
Trading Securities | 559,936 | 473,707 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member] | ||
Available-for-Sale Securities (Notes 2, 5 & 9) | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Domestic Equities [Member] | ||
Trading Securities | 249,210 | 333,516 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | International Equities [Member] | ||
Trading Securities | 271,921 | 83,948 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other [Member] | ||
Trading Securities | 38,805 | 56,243 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member] | ||
Available-for-Sale Securities (Notes 2, 5 & 9) | 16,371,544 | 13,443,636 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Domestic Equities [Member] | ||
Trading Securities | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | International Equities [Member] | ||
Trading Securities | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other [Member] | ||
Trading Securities | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US Treasury Securities [Member] | ||
Available-for-Sale Securities (Notes 2, 5 & 9) | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Domestic Equities [Member] | ||
Trading Securities | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | International Equities [Member] | ||
Trading Securities | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other [Member] | ||
Trading Securities |
Note 10 - Long-lived Assets I41
Note 10 - Long-lived Assets Impairment Loss (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Impairment Of Oil And Gas Cost Properties | $ 426,822 | $ 727,845 |
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, 2017 | Dec. 31, 2016 | |
Net Realized and Unrealized Gain (Loss) on Trading Securities | $ 83,622 | $ 61,729 |
Gains on Asset Sales | 59,683 | 22,123 |
Interest Income | 130,498 | 46,370 |
Settlements of Class Action Lawsuits | 3,540 | 55,048 |
Agricultural Rental Income | 5,600 | 5,600 |
Dividend Income | 2,597 | 1,254 |
Income from Other Investments | 445,000 | 155,000 |
Interest and Other Expenses | (47,143) | (47,532) |
Other Income, Net | $ 683,397 | $ 299,592 |
Note 12 - Certain Relationshi43
Note 12 - Certain Relationships and Related Transactions (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Lochbuie Limited Liability Company, LLTD [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 190,665 | $ 182,926 |
Lochbuie Limited Liability Company, LLTD [Member] | Payments For Salaries [Member] | ||
Related Party Transaction, Amounts of Transaction | 137,113 | 132,215 |
Mesquite [Member] | ||
Related Party Transaction, Amounts of Transaction | 190,665 | 182,926 |
Mesquite [Member] | Payments For Salaries [Member] | ||
Related Party Transaction, Amounts of Transaction | 137,113 | 132,215 |
Mid American [Member] | ||
Related Party Transaction, Amounts of Transaction | 190,665 | 182,926 |
Mid American [Member] | Payments For Salaries [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 137,113 | $ 132,215 |
Supplemental Schedules of Oil44
Supplemental Schedules of Oil and Gas Information (Details Textual) - bbl | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Oil and Condensate (Bbls) [Member] | ||
Proved Developed and Undeveloped Reserves Production Royalty | 16,421 | 17,423 |
Gas (MCF) [Member] | ||
Proved Developed and Undeveloped Reserves Production Royalty | 288,743 | 335,081 |
Supplemental Schedules of Oil45
Supplemental Schedules of Oil and Gas Information - Working Interest Reserve Quantity Information (Details) - bbl | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Oil and Condensate (Bbls) [Member] | ||
Beginning of Year (Barrel of Oil) | 401,584 | 462,241 |
Revisions of Previous Estimates (Barrel of Oil) | 18,951 | (1,977) |
Extensions and Discoveries (Barrel of Oil) | 16,405 | 9,148 |
Purchase of Reserves (Barrel of Oil) | ||
Production (Barrel of Oil) | (60,544) | (67,828) |
End of Year (Barrel of Oil) | 376,396 | 401,584 |
Beginning of Year (Barrel of Oil) | 358,822 | 415,402 |
End of Year (Barrel of Oil) | 341,152 | 358,822 |
Gas (MCF) [Member] | ||
Beginning of Year (Barrel of Oil) | 3,023,754 | 3,637,626 |
Revisions of Previous Estimates (Barrel of Oil) | 494,665 | (49,227) |
Extensions and Discoveries (Barrel of Oil) | 190,923 | 71,715 |
Purchase of Reserves (Barrel of Oil) | ||
Production (Barrel of Oil) | (517,831) | (636,360) |
End of Year (Barrel of Oil) | 3,191,511 | 3,023,754 |
Beginning of Year (Barrel of Oil) | 2,809,944 | 3,309,750 |
End of Year (Barrel of Oil) | 2,944,804 | 2,809,944 |
Supplemental Schedules of Oil46
Supplemental Schedules of Oil and Gas Information - Standardized Measure of Discounted Future Net Cash Flows (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Future Cash Inflows | $ 25,418,030 | $ 20,452,614 | |
Future Production and Development Costs | (12,989,835) | (11,392,251) | |
Future Asset Retirement Obligation | (1,881,972) | (1,802,124) | |
Future Income Tax Benefit (Expense) | (362,534) | 369,553 | |
Future Net Cash Flows | 10,183,689 | 7,627,792 | |
10% Annual Discount for Estimated Timing of Cash Flows | (3,121,751) | (2,373,717) | |
Standardized Measure of Discounted Future Net Cash Flows | $ 7,061,938 | $ 5,254,075 | $ 7,405,506 |
Supplemental Schedules of Oil47
Supplemental Schedules of Oil and Gas Information - Changes in Standardized Measure of Discounted Future Net Cash Flows From Proved Working Interest Reserve Quantities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Standardized Measure, Beginning of Year | $ 5,254,075 | $ 7,405,506 |
Sales and Transfers, Net of Production Costs | (2,343,561) | (1,935,438) |
Net Change in Sales and Transfer Prices, Net of Production Costs | 2,394,155 | (1,992,946) |
Extensions, Discoveries and Improved Recoveries, Net of Future Production and Development Costs | 710,294 | 347,007 |
Revisions of Quantity Estimates | 929,958 | (62,357) |
Accretion of Discount | 689,080 | 1,006,978 |
Purchases of Reserves in Place | ||
Net Change in Income Taxes | (517,818) | 1,009,435 |
Net Change in Asset Retirement Obligation | 17,383 | (13,669) |
Changes in Production Rates (Timing) and Other | (71,628) | (510,441) |
Standardized Measure, End of Year | $ 7,061,938 | $ 5,254,075 |