Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 20, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Entity Registrant Name | RESERVE PETROLEUM CO | ||
Entity Central Index Key | 0000083350 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Interactive Data Current | Yes | ||
Entity Common Stock, Shares Outstanding (in shares) | 156,615 | ||
Entity Public Float | $ 20,836,014 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Title of 12(g) Security | COMMON STOCK ($0.50 PAR VALUE) |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and Cash Equivalents (Note 2) | $ 2,738,338 | $ 6,428,499 |
Available-for-Sale Debt Securities (Notes 2, 5 & 9) | 18,517,910 | 16,249,414 |
Equity Securities (Notes 2, 5 & 9) | 545,075 | 454,058 |
Refundable Income Taxes | 109,999 | 16,387 |
Accounts Receivable (Note 2) | 968,382 | 846,419 |
Notes Receivable (Note 7) | 218,158 | |
Total Current Assets | 22,879,704 | 24,212,935 |
Investments: | ||
Equity Method Investments (Notes 2 & 7) | 744,798 | 881,860 |
Other Investments (Notes 2 & 7) | 1,898,347 | 1,689,249 |
Total Investments | 2,643,145 | 2,571,109 |
Property, Plant and Equipment (Notes 2, 8 & 10): | ||
Unproved Properties | 2,727,857 | 2,249,113 |
Proved Properties | 54,451,862 | 54,789,836 |
Oil and Gas Properties, Gross | 57,179,719 | 57,038,949 |
Less – Accumulated Depreciation, Depletion, Amortization and Valuation Allowance | 47,852,157 | 46,008,467 |
Oil and Gas Properties, Net | 9,327,562 | 11,030,482 |
Other Property and Equipment, at Cost | 466,728 | 403,718 |
Less – Accumulated Depreciation | 279,892 | 249,333 |
Other Property and Equipment, Net | 186,836 | 154,385 |
Total Property, Plant and Equipment | 9,514,398 | 11,184,867 |
Other Assets | 687,048 | |
Total Assets | 35,724,295 | 37,968,911 |
Current Liabilities: | ||
Accounts Payable | 156,768 | 318,387 |
Other Current Liabilities | 25,243 | 25,243 |
Total Current Liabilities | 182,011 | 343,630 |
Long-Term Liabilities: | ||
Asset Retirement Obligation (Note 2) | 1,821,527 | 1,774,114 |
Dividends Payable (Note 3) | 676,148 | 1,057,483 |
Deferred Tax Liability, Net (Note 6) | 917,365 | 1,210,271 |
Total Long-Term Liabilities | 3,415,040 | 4,041,868 |
Total Liabilities | 3,597,051 | 4,385,498 |
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 | 33,660,169 | 35,023,662 |
Stockholders’ Equity Before Treasury Stock | 33,817,537 | 35,181,030 |
Less – Treasury Stock, at Cost | 1,690,293 | 1,597,617 |
Total Stockholders’ Equity | 32,127,244 | 33,583,413 |
Total Liabilities and Stockholders’ Equity | $ 35,724,295 | $ 37,968,911 |
Statements of Operation
Statements of Operation - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Revenues: | ||
Oil and Gas Sales (Note 2) | $ 6,491,062 | $ 7,765,314 |
Lease Bonuses and Other | 137,227 | 562,184 |
Total Operating Revenues | 6,628,289 | 8,327,498 |
Operating Costs and Expenses: | ||
Production | 2,334,253 | 2,391,656 |
Exploration | 709,753 | 195,111 |
Depreciation, Depletion, Amortization and Valuation Provisions (Note 10) | 2,868,171 | 2,103,882 |
General, Administrative and Other | 1,721,568 | 1,679,507 |
Total Operating Costs and Expenses | 7,633,745 | 6,370,156 |
Income/(Loss) from Operations | (1,005,456) | 1,957,342 |
Equity Loss in Investees (Note 7) | (87,562) | (84,484) |
Other Income, Net (Note 11) | 603,180 | 828,714 |
Income/(Loss) Before Income Taxes | (489,838) | 2,701,572 |
Income Tax Provision/(Benefit) (Notes 2 & 6) | (223,075) | 387,880 |
Net Income/(Loss) | $ (266,763) | $ 2,313,692 |
Per Share Data (Note 2): | ||
Net Income/(Loss), Basic and Diluted (in dollars per share) | $ (1.70) | $ 14.69 |
Cash Dividends (in dollars per share) | $ 7 | $ 5 |
Weighted Average Shares Outstanding, Basic and Diluted (in shares) | 156,769 | 157,458 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2017 | $ 92,368 | $ 65,000 | $ 33,497,463 | $ (1,532,813) | $ 32,122,018 |
Net Income/(Loss) | 2,313,692 | 2,313,692 | |||
Dividends Declared | (787,493) | (787,493) | |||
Purchase of Treasury Stock | (64,804) | (64,804) | |||
Balance at Dec. 31, 2018 | 92,368 | 65,000 | 35,023,662 | (1,597,617) | 33,583,413 |
Balance at Sep. 30, 2018 | 92,368 | 65,000 | 35,264,503 | (1,591,618) | 33,830,253 |
Net Income/(Loss) | (240,841) | (240,841) | |||
Dividends Declared | 0 | ||||
Purchase of Treasury Stock | (5,999) | (5,999) | |||
Balance at Dec. 31, 2018 | 92,368 | 65,000 | 35,023,662 | (1,597,617) | 33,583,413 |
Net Income/(Loss) | (266,763) | (266,763) | |||
Dividends Declared | (1,096,730) | (1,096,730) | |||
Purchase of Treasury Stock | (92,676) | (92,676) | |||
Balance at Dec. 31, 2019 | 92,368 | 65,000 | 33,660,169 | (1,690,293) | 32,127,244 |
Balance at Sep. 30, 2019 | 92,368 | 65,000 | 34,802,351 | (1,690,293) | 33,269,426 |
Net Income/(Loss) | (1,142,182) | (1,142,182) | |||
Dividends Declared | 0 | ||||
Purchase of Treasury Stock | 0 | ||||
Balance at Dec. 31, 2019 | $ 92,368 | $ 65,000 | $ 33,660,169 | $ (1,690,293) | $ 32,127,244 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash from Operating Activities: | ||
Oil and Gas Sales | $ 6,392,842 | $ 7,790,371 |
Lease Bonuses and Other | 137,227 | 562,184 |
Sale of Equity Securities | 1,120,176 | 1,514,362 |
Interest Received | 473,835 | 315,146 |
Agricultural Rentals and Other | 11,476 | 6,008 |
Dividends Received on Equity Securities | 463 | 2,902 |
Cash Distributions from Equity Method Investments | 49,500 | 24,750 |
Income Tax Refunds, Net of Income Taxes Paid | 214,784 | |
Cash Paid – | ||
Production Costs | (2,323,196) | (2,391,711) |
General Suppliers, Employees and Taxes, Other than Income Taxes | (1,722,165) | (1,674,759) |
Purchase of Equity Securities | (1,120,724) | (1,517,352) |
Income Taxes Paid, Net of Income Tax Refunds | (163,443) | |
Farm Expense and Other | (567) | (585) |
Net Cash Provided by Operating Activities | 2,855,424 | 4,846,100 |
Cash Provided by/(Applied to) Investing Activities: | ||
Maturity of Available-for-Sale Debt Securities | 35,427,891 | 32,786,554 |
Purchase of Available-for-Sale Debt Securities | (37,696,386) | (32,664,425) |
Proceeds from Disposal of Property, Plant and Equipment | 21,515 | 587,408 |
Purchase of Property, Plant and Equipment | (2,083,991) | (2,788,038) |
Cash Distributions from Other Investments | 8,500 | 16,500 |
Purchase of Other Investments | (7,467) | (55,949) |
Notes Receivable | 43,158 | (43,158) |
Net Cash Applied to Investing Activities | (4,286,780) | (2,161,108) |
Cash Applied to Financing Activities: | ||
Dividends Paid/Escheated | (1,479,081) | (959,499) |
Dividends Payable to Stockholders | (687,048) | |
Purchase of Treasury Stock | (92,676) | (64,804) |
Total Cash Applied to Financing Activities | (2,258,805) | (1,024,303) |
Net Change in Cash and Cash Equivalents | (3,690,161) | 1,660,689 |
Cash and Cash Equivalents at Beginning of Year | 6,428,499 | 4,767,810 |
Cash and Cash Equivalents at End of Year | 2,738,338 | 6,428,499 |
Reconciliation of Net Income/(Loss) to Net Cash Provided by Operating Activities: | ||
Net Income/(Loss) | (266,763) | 2,313,692 |
Net Income/(Loss) Increased (Decreased) by Net Change in – | ||
Net Unrealized Holding (Gains)/Losses on Equity Securities | (101,247) | 181,818 |
Accounts Receivable | (98,220) | 25,057 |
Interest and Dividends Receivable | (19,854) | (33,469) |
Refundable Income Taxes | (93,612) | 310,443 |
Accounts Payable | 10,460 | 4,692 |
Equity Securities | 10,230 | (75,940) |
Deferred Taxes | (292,906) | 292,221 |
Other Liabilities | 111,123 | (12,030) |
Changes in Equity Method and Other Investments | 52,432 | 67,984 |
Cash Distributions from Equity Method Investments | 49,500 | 24,750 |
Exploration Costs | 744,446 | 205,671 |
Disposition of Property, Plant and Equipment | (29,520) | (562,671) |
Depreciation, Depletion, Amortization and Valuation Provisions | 2,779,355 | 2,103,882 |
Net Cash Provided by Operating Activities | $ 2,855,424 | $ 4,846,100 |
Note 1 - Nature of Operations
Note 1 - Nature of Operations | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 | |
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 no December 31, 2019 2018. Equity Method and Other Investments: The Company accounts for its non-marketable investment in partnerships on the equity method if ownership allows the Company to exercise significant influence. The Financial Accounting Standards Board (FASB) issued ASU 2016 01, Financial Instruments - Overall 825 10 Recognition and Measurement of Financial Assets and Financial Liabilities 2016 01” 2016 01 July 1, 2018. 2016 01 2016 01 not not Other investments, without readily determinable fair values, that are not 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 not The FASB issued Revenue from Contracts with Customers 606 first 2018 not not The Company’s revenues are primarily derived from its interests in the sale of oil and natural gas production. Each barrel of oil or thousand cubic feet of natural gas delivered is considered a separate performance obligation. The Company recognizes revenue from its interests in the sales of oil and natural gas in the period that its performance obligations to provide oil and natural gas to customers are satisfied. Performance obligations are satisfied when the Company has no third one three not not December 31, 2019 2018, $366,148 $346,711, The Company’s contracts with customers originate at or near the time of delivery and transfer of control of oil and natural gas to the purchasers. As such, the Company does not The Company’s oil is typically sold at delivery points under contract terms that are common in our industry. The Company's natural gas produced is delivered by the well operators to various purchasers at agreed upon delivery points under a limited number of contract types that are also common in our industry. However, under these contracts, the natural gas may may The Company’s disaggregated revenue has two Year Ended December 30, 2019 2018 Oil Sales $ 4,504,738 $ 5,109,773 Natural Gas Sales 1,806,272 2,387,612 Miscellaneous Oil and Gas Product Sales 180,052 267,929 $ 6,491,062 $ 7,765,314 The Company recognizes revenue from lease bonuses when it has received an executed lease agreement with a third may no 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 property and equipment: In years Office furniture and fixtures 5 to 10 Automotive equipment 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 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 benefits in income tax expense. There were no December 31, 2019 2018. 2016, 2017 2018 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 2019 2018, 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 2019 2018 27% 30%, The Company maintains its cash in bank deposit accounts, which at times may not not The Company’s investment in marketable equity securities consists of equity interests in both U.S. and international entities involved in a broad range of industries. These marketable equity securities are subject to overall market risks, which could result in a temporary or permanent decline in the fair value of these securities. 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 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 method 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 2019 2018: 2019 2018 Beginning balance at January 1 $ 1,774,114 $ 1,774,634 Liabilities incurred 44,994 11,386 Liabilities settled (wells sold or plugged) (24,148 ) (64,129 ) Accretion expense 45,590 47,139 Revision to estimate (19,023 ) 5,084 Ending balance at December 31 $ 1,821,527 $ 1,774,114 New Accounting Pronouncements On January 16, 2020, 2020 01, Investments—Equity Securities (Topic 321 323 815 321, 323, 815. 323, 321 not December 15, 2020. 1. not 2. not No. 2020 01 not On December 18, 2019, 2019 19, Income Taxes (Topic 740 740 Exception to the incremental approach for intraperiod tax allocation; exceptions to accounting for basis differences when there are ownership changes in foreign investments; and exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: Franchise taxes that are partially based on income; transactions with a government that result in a step up in the tax basis of goodwill; separate financial statements of legal entities that are not The ASU is effective for public business entities, for fiscal years beginning after December 15, 2020, not not Pronouncements Adopted in 201 9 On January 1, 2019, No. 2016 02, Leases no not 12 not There were no December 31, 2018, 2, |
Note 3 - Dividends Payable
Note 3 - Dividends Payable | 12 Months Ended |
Dec. 31, 2019 | |
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. Funds required to satisfy dividends payable are held in custody of the Company’s transfer agent and are included in Other Assets on the Company’s balance sheet. |
Note 4 - Common Stock
Note 4 - Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018, $.50 par value stock, 200,000 shares authorized 184,735 27,070 157,665 Purchase of stock --- 432 (432 ) December 31, 2018, $.50 par value stock, 200,000 shares authorized 184,735 27,502 157,233 Purchase of stock --- 618 (618 ) December 31, 2019, $.50 par value stock, 200,000 shares authorized 184,735 28,120 156,615 |
Note 5 - Marketable Securities
Note 5 - Marketable Securities | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019, one For equity securities, in 2019 10,778 $101,247. 2018 $72,950 181,818 |
Note 6 - Income Taxes
Note 6 - Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 6 INCOME TAXES Components of deferred taxes are as follows: December 31, 2019 2018 Assets: Net Leasehold Impairment Reserves $ 257,389 $ 127,906 Gas Balance Receivable 32,352 32,352 Long-Lived Asset Impairment 806,364 936,272 Deferred Geological and Geophysical Expense 17,087 38,367 Other 318,734 224,670 Total Assets 1,431,926 1,359,567 Liabilities: Receivables 76,891 72,807 Intangible Drilling Costs 1,546,222 1,741,413 Depletion, Depreciation and Other 726,178 755,618 Total Liabilities 2,349,291 2,569,838 Net Deferred Tax Liability $ (917,365 ) $ (1,210,271 ) The decrease in the deferred tax liability for 2019 The following table summarizes the current and deferred portions of income tax expense: Year Ended December 31, 2019 2018 Current Tax Provision/(Benefit): Federal $ 68,198 $ 96,443 State 1,633 (784 ) Total Current Provision 69,831 95,659 Deferred Tax Provision/(Benefit) (292,906 ) 292,221 Total Provision/(Benefit) $ (223,075 ) $ 387,880 The total income tax provision/(benefit) expressed as a percentage of income before income tax was 46% 2019 14% 2018. 21% 2019 2018 Year Ended December 31, 2019 2018 Computed Federal Tax Provision/(Benefit) $ (102,866 ) $ 567,330 Increase (Decrease) in Tax From: Allowable Depletion in Excess of Basis (60,224 ) (192,979 ) Dividend Received Deduction (4,443 ) (305 ) State Income Tax Provision/(Benefit) (1,633 ) 784 Other (53,909 ) 13,050 Income Tax Provision/(Benefit) $ (223,075 ) $ 387,880 Effective Tax Rate 46 % 14 % 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 Method and Othe
Note 7 - Equity Method and Other Investments and Related Commitments and Contingent Liabilities, Including Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Note 7 EQUITY METHOD AND OTHER INVESTMENTS AND RELATED COMMITMENTS AND CONTINGENT LIABILITIES INCLUDING GUARANTEES The Company’s Equity Method Investments include: Broadway Sixty-Eight, LLC (“Broadway”), an Oklahoma limited liability company, with a 33% $35,000 $32,000 2019 2018, $157,911 $172,722 December 31, 2019 2018, Grand Woods Development, LLC (the “LLC”), an Oklahoma limited liability company, with a 47% 2015. 26.56 $1,200,000 $1,755,000 October 31, 2020. $316,384 $438,303 December 31, 2019 2018, QSN Office Park (“QSN”), an Oklahoma limited liability company, with a 20% 2016. $1,300,000 March 26, 2021. $270,503 $270,835 December 31, 2019 2018, The Company’s Other Investments primarily include: OKC Industrial Properties (“OKC”), with a 10% 1992. 260 46 $56,164 December 31, 2019 2018. Bailey Hilltop Pipeline (“Bailey”), with a 10% 2008. $80,377 December 31, 2019 2018. Cloudburst Solutions (“Solutions”), with an 11.9375% $500,000 2014, $750,000 $44,375 2016 2018, $175,000 October 4, 2019, $26,632 1.3125% November 5, 2019, 95,500 11.9375% $1,496,007 $1,294,375 December 31, 2019 December 31, 2018, Ocean’s NG (“Ocean”), with a 12.44% 2015. $225,485 $218,018 December 31, 2019 2018, |
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, 2019 | |
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, 2019 2018 Acquisition of Properties: Unproved $ 513,309 $ 485,348 Proved 231,000 --- Exploration Costs 970,994 1,770,215 Development Costs 111,810 622,024 Asset Retirement Obligation 1,823 16,470 |
Note 9 - Fair Value Measurement
Note 9 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 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 debt securities using quoted market prices for securities with similar maturity dates and interest rates. At December 31, 2019 2018, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial Assets: Available-for-Sale Debt Securities – U.S. Treasury Bills Maturing in 2020 $ --- $ 18,517,910 $ --- Equity Securities – Domestic Equities 364,171 --- --- International Equities 110,629 --- --- Others 70,275 --- --- $ 545,075 $ 18,517,910 $ --- 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial Assets: Available-for-Sale Debt Securities – U.S. Treasury Bills Maturing in 2019 $ --- $ 16,249,414 $ --- Equity Securities – Domestic Equities 259,843 --- --- International Equities 179,083 --- --- Others 15,132 --- --- $ 454,058 $ 16,249,414 $ --- 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 $44,994 2019 $11,386 2018 3 2 The fair value of oil and gas properties used in estimating impairment losses of $912,045 2019 $832,651 2018 3 10 Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, trade and notes receivables, marketable securities, trade payables, and dividends payable. As of December 31, 2019 2018, |
Note 10 - Long-lived Assets Imp
Note 10 - Long-lived Assets Impairment Loss | 12 Months Ended |
Dec. 31, 2019 | |
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 $912,045 2019 $832,651 2018 2019 2018 |
Note 11 - Other Income, Net
Note 11 - Other Income, Net | 12 Months Ended |
Dec. 31, 2019 | |
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: 2019 2018 Net Realized and Unrealized Gain (Loss) on Equity Securities $ 90,469 $ (108,868 ) Gains on Asset Sales 18,110 611,281 Interest Income 520,319 348,615 Settlements of Class Action Lawsuits --- 408 Agricultural Rental Income 11,476 5,600 Dividend Income 463 2,902 Income from Other Investments 8,500 16,500 Interest and Other Expenses (46,157 ) (47,724 ) Other Income, Net $ 603,180 $ 828,714 |
Note 12 - Certain Relationships
Note 12 - Certain Relationships and Related Transactions | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 $199,116 2018 $192,629 2019 $135,778 2018, $135,693 |
Note 13 - Subsequent Events, Ri
Note 13 - Subsequent Events, Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 13 SUBSEQUENT EVENTS, RISKS AND UNCERTAINTIES The Company’s impairment assessment of proved and unproved properties is based on several factors including oil and gas spot market prices and estimated futures prices that existed at December 31, 2019. March 8, 2020, 2019 not not not |
Supplemental Schedules of Oil a
Supplemental Schedules of Oil and Gas Information | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 Oil and Condensate (Bbls) Proved Developed and Undeveloped Reserves: Beginning of Year 363,198 376,396 Revisions of Previous Estimates (4,587 ) 26,063 Extensions and Discoveries 9,383 13,699 Purchase of Reserves 19,219 --- Production (56,051 ) (52,960 ) End of Year 331,162 363,198 Proved Developed Reserves: Beginning of Year 326,752 341,152 End of Year 314,932 326,752 Gas (MCF) Proved Developed and Undeveloped Reserves: Beginning of Year 2,831,861 3,191,511 Revisions of Previous Estimates (281,944 ) 75,610 Extensions and Discoveries 377,521 8,094 Purchase of Reserves 7,860 --- Production (474,865 ) (443,354 ) End of Year 2,460,433 2,831,861 Proved Developed Reserves: Beginning of Year 2,576,738 2,944,804 End of Year 2,298,135 2,576,738 See notes on next page. Notes: 1. Estimates of royalty interests’ reserves, on properties in which the Company does not not not 28,006 340,386 2019 30,191 393,584 2018. 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 2019 2018. 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 2019 2019 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, 2019 2018 Future Cash Inflows $ 21,416,636 $ 28,398,588 Future Production and Development Costs (11,272,849 ) (14,212,906 ) Future Asset Retirement Obligation (1,788,739 ) (1,873,939 ) Future Income Tax Expense (294,018 ) (701,106 ) Future Net Cash Flows 8,061,030 11,610,637 10% Annual Discount for Estimated Timing of Cash Flows (2,581,559 ) (3,749,911 ) Standardized Measure of Discounted Future Net Cash Flows $ 5,479,471 $ 7,860,726 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 2018 2019, 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, 2019 2018 Standardized Measure, Beginning of Year $ 7,860,726 $ 7,061,938 Sales and Transfers, Net of Production Costs (1,836,618 ) (2,430,324 ) Net Change in Sales and Transfer Prices, Net of Production Costs (1,962,275 ) 2,156,124 Extensions, Discoveries and Improved Recoveries, Net of Future Production and Development Costs 816,539 332,441 Revisions of Quantity Estimates (259,068 ) 442,030 Accretion of Discount 1,020,105 923,952 Purchases of Reserves in Place 318,332 --- Net Change in Income Taxes 276,171 (225,892 ) Net Change in Asset Retirement Obligation 1,823 (47,659 ) Changes in Production Rates (Timing) and Other (756,264 ) (351,884 ) Standardized Measure, End of Year $ 5,479,471 $ 7,860,726 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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 no December 31, 2019 2018. Equity Method and Other Investments: The Company accounts for its non-marketable investment in partnerships on the equity method if ownership allows the Company to exercise significant influence. The Financial Accounting Standards Board (FASB) issued ASU 2016 01, Financial Instruments - Overall 825 10 Recognition and Measurement of Financial Assets and Financial Liabilities 2016 01” 2016 01 July 1, 2018. 2016 01 2016 01 not not Other investments, without readily determinable fair values, that are not not See Note 7 |
Revenue from Contract with Customer [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 not The FASB issued Revenue from Contracts with Customers 606 first 2018 not not The Company’s revenues are primarily derived from its interests in the sale of oil and natural gas production. Each barrel of oil or thousand cubic feet of natural gas delivered is considered a separate performance obligation. The Company recognizes revenue from its interests in the sales of oil and natural gas in the period that its performance obligations to provide oil and natural gas to customers are satisfied. Performance obligations are satisfied when the Company has no third one three not not December 31, 2019 2018, $366,148 $346,711, The Company’s contracts with customers originate at or near the time of delivery and transfer of control of oil and natural gas to the purchasers. As such, the Company does not The Company’s oil is typically sold at delivery points under contract terms that are common in our industry. The Company's natural gas produced is delivered by the well operators to various purchasers at agreed upon delivery points under a limited number of contract types that are also common in our industry. However, under these contracts, the natural gas may may The Company’s disaggregated revenue has two Year Ended December 30, 2019 2018 Oil Sales $ 4,504,738 $ 5,109,773 Natural Gas Sales 1,806,272 2,387,612 Miscellaneous Oil and Gas Product Sales 180,052 267,929 $ 6,491,062 $ 7,765,314 The Company recognizes revenue from lease bonuses when it has received an executed lease agreement with a third may no |
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 property and equipment: In years Office furniture and fixtures 5 to 10 Automotive equipment 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 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 benefits in income tax expense. There were no December 31, 2019 2018. 2016, 2017 2018 |
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 2019 2018, 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 2019 2018 27% 30%, The Company maintains its cash in bank deposit accounts, which at times may not not The Company’s investment in marketable equity securities consists of equity interests in both U.S. and international entities involved in a broad range of industries. These marketable equity securities are subject to overall market risks, which could result in a temporary or permanent decline in the fair value of these securities. |
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 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 method 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 2019 2018: 2019 2018 Beginning balance at January 1 $ 1,774,114 $ 1,774,634 Liabilities incurred 44,994 11,386 Liabilities settled (wells sold or plugged) (24,148 ) (64,129 ) Accretion expense 45,590 47,139 Revision to estimate (19,023 ) 5,084 Ending balance at December 31 $ 1,821,527 $ 1,774,114 |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements On January 16, 2020, 2020 01, Investments—Equity Securities (Topic 321 323 815 321, 323, 815. 323, 321 not December 15, 2020. 1. not 2. not No. 2020 01 not On December 18, 2019, 2019 19, Income Taxes (Topic 740 740 Exception to the incremental approach for intraperiod tax allocation; exceptions to accounting for basis differences when there are ownership changes in foreign investments; and exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: Franchise taxes that are partially based on income; transactions with a government that result in a step up in the tax basis of goodwill; separate financial statements of legal entities that are not The ASU is effective for public business entities, for fiscal years beginning after December 15, 2020, not not Pronouncements Adopted in 201 9 On January 1, 2019, No. 2016 02, Leases no not 12 not There were no December 31, 2018, 2, |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Year Ended December 30, 2019 2018 Oil Sales $ 4,504,738 $ 5,109,773 Natural Gas Sales 1,806,272 2,387,612 Miscellaneous Oil and Gas Product Sales 180,052 267,929 $ 6,491,062 $ 7,765,314 |
Schedule Of Useful Lives Of Property And Equipment [Table Text Block] | In years Office furniture and fixtures 5 to 10 Automotive equipment 5 to 8 |
Schedule of Asset Retirement Obligations [Table Text Block] | 2019 2018 Beginning balance at January 1 $ 1,774,114 $ 1,774,634 Liabilities incurred 44,994 11,386 Liabilities settled (wells sold or plugged) (24,148 ) (64,129 ) Accretion expense 45,590 47,139 Revision to estimate (19,023 ) 5,084 Ending balance at December 31 $ 1,821,527 $ 1,774,114 |
Note 4 - Common Stock (Tables)
Note 4 - Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | Shares of Shares Treasury Shares Issued Stock Outstanding January 1, 2018, $.50 par value stock, 200,000 shares authorized 184,735 27,070 157,665 Purchase of stock --- 432 (432 ) December 31, 2018, $.50 par value stock, 200,000 shares authorized 184,735 27,502 157,233 Purchase of stock --- 618 (618 ) December 31, 2019, $.50 par value stock, 200,000 shares authorized 184,735 28,120 156,615 |
Note 6 - Income Taxes (Tables)
Note 6 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2019 2018 Assets: Net Leasehold Impairment Reserves $ 257,389 $ 127,906 Gas Balance Receivable 32,352 32,352 Long-Lived Asset Impairment 806,364 936,272 Deferred Geological and Geophysical Expense 17,087 38,367 Other 318,734 224,670 Total Assets 1,431,926 1,359,567 Liabilities: Receivables 76,891 72,807 Intangible Drilling Costs 1,546,222 1,741,413 Depletion, Depreciation and Other 726,178 755,618 Total Liabilities 2,349,291 2,569,838 Net Deferred Tax Liability $ (917,365 ) $ (1,210,271 ) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2019 2018 Current Tax Provision/(Benefit): Federal $ 68,198 $ 96,443 State 1,633 (784 ) Total Current Provision 69,831 95,659 Deferred Tax Provision/(Benefit) (292,906 ) 292,221 Total Provision/(Benefit) $ (223,075 ) $ 387,880 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2019 2018 Computed Federal Tax Provision/(Benefit) $ (102,866 ) $ 567,330 Increase (Decrease) in Tax From: Allowable Depletion in Excess of Basis (60,224 ) (192,979 ) Dividend Received Deduction (4,443 ) (305 ) State Income Tax Provision/(Benefit) (1,633 ) 784 Other (53,909 ) 13,050 Income Tax Provision/(Benefit) $ (223,075 ) $ 387,880 Effective Tax Rate 46 % 14 % |
Note 8 - Costs Incurred in Oi_2
Note 8 - Costs Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Oil and Gas, Present Activity [Table Text Block] | Year Ended December 31, 2019 2018 Acquisition of Properties: Unproved $ 513,309 $ 485,348 Proved 231,000 --- Exploration Costs 970,994 1,770,215 Development Costs 111,810 622,024 Asset Retirement Obligation 1,823 16,470 |
Note 9 - Fair Value Measureme_2
Note 9 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial Assets: Available-for-Sale Debt Securities – U.S. Treasury Bills Maturing in 2020 $ --- $ 18,517,910 $ --- Equity Securities – Domestic Equities 364,171 --- --- International Equities 110,629 --- --- Others 70,275 --- --- $ 545,075 $ 18,517,910 $ --- 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial Assets: Available-for-Sale Debt Securities – U.S. Treasury Bills Maturing in 2019 $ --- $ 16,249,414 $ --- Equity Securities – Domestic Equities 259,843 --- --- International Equities 179,083 --- --- Others 15,132 --- --- $ 454,058 $ 16,249,414 $ --- |
Note 11 - Other Income, Net (Ta
Note 11 - Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Interest and Other Income [Table Text Block] | 2019 2018 Net Realized and Unrealized Gain (Loss) on Equity Securities $ 90,469 $ (108,868 ) Gains on Asset Sales 18,110 611,281 Interest Income 520,319 348,615 Settlements of Class Action Lawsuits --- 408 Agricultural Rental Income 11,476 5,600 Dividend Income 463 2,902 Income from Other Investments 8,500 16,500 Interest and Other Expenses (46,157 ) (47,724 ) Other Income, Net $ 603,180 $ 828,714 |
Supplemental Schedules of Oil_2
Supplemental Schedules of Oil and Gas Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Table Text Block] | Year Ended December 31, 2019 2018 Oil and Condensate (Bbls) Proved Developed and Undeveloped Reserves: Beginning of Year 363,198 376,396 Revisions of Previous Estimates (4,587 ) 26,063 Extensions and Discoveries 9,383 13,699 Purchase of Reserves 19,219 --- Production (56,051 ) (52,960 ) End of Year 331,162 363,198 Proved Developed Reserves: Beginning of Year 326,752 341,152 End of Year 314,932 326,752 Gas (MCF) Proved Developed and Undeveloped Reserves: Beginning of Year 2,831,861 3,191,511 Revisions of Previous Estimates (281,944 ) 75,610 Extensions and Discoveries 377,521 8,094 Purchase of Reserves 7,860 --- Production (474,865 ) (443,354 ) End of Year 2,460,433 2,831,861 Proved Developed Reserves: Beginning of Year 2,576,738 2,944,804 End of Year 2,298,135 2,576,738 |
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure [Table Text Block] | At December 31, 2019 2018 Future Cash Inflows $ 21,416,636 $ 28,398,588 Future Production and Development Costs (11,272,849 ) (14,212,906 ) Future Asset Retirement Obligation (1,788,739 ) (1,873,939 ) Future Income Tax Expense (294,018 ) (701,106 ) Future Net Cash Flows 8,061,030 11,610,637 10% Annual Discount for Estimated Timing of Cash Flows (2,581,559 ) (3,749,911 ) Standardized Measure of Discounted Future Net Cash Flows $ 5,479,471 $ 7,860,726 |
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows [Table Text Block] | Year Ended December 31, 2019 2018 Standardized Measure, Beginning of Year $ 7,860,726 $ 7,061,938 Sales and Transfers, Net of Production Costs (1,836,618 ) (2,430,324 ) Net Change in Sales and Transfer Prices, Net of Production Costs (1,962,275 ) 2,156,124 Extensions, Discoveries and Improved Recoveries, Net of Future Production and Development Costs 816,539 332,441 Revisions of Quantity Estimates (259,068 ) 442,030 Accretion of Discount 1,020,105 923,952 Purchases of Reserves in Place 318,332 --- Net Change in Income Taxes 276,171 (225,892 ) Net Change in Asset Retirement Obligation 1,823 (47,659 ) Changes in Production Rates (Timing) and Other (756,264 ) (351,884 ) Standardized Measure, End of Year $ 5,479,471 $ 7,860,726 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies (Details Textual) shares in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax, Total | $ 0 | $ 0 |
Unrecognized Tax Benefits, Ending Balance | $ 0 | $ 0 |
Weighted Average Number of Shares Outstanding, Diluted, Total | shares | 0 | 0 |
Current Year Inflation Rate | 4.08% | |
Change In Present Value, Percent | 3.25% | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Number of Major Customers | 2 | 2 |
Concentration Risk, Percentage | 27.00% | 30.00% |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Open Tax Year | 2016 2017 2018 | |
Oil and Gas [Member] | ||
Contract with Customer, Asset, after Allowance for Credit Loss, Total | $ 366,148 | $ 346,711 |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Disaggregated Revenue (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | $ 6,491,062 | $ 7,765,314 |
Oil and Condensate [Member] | ||
Revenue | 4,504,738 | 5,109,773 |
Natural Gas, Production [Member] | ||
Revenue | 1,806,272 | 2,387,612 |
Miscellaneous Oil and Gas Sales [Member] | ||
Revenue | $ 180,052 | $ 267,929 |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies - Property, Plant, and Equipment, Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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 Significa_6
Note 2 - Summary of Significant Accounting Policies - Asset Retirement Obligation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Balance , asset retirement obligation | $ 1,774,114 | $ 1,774,634 |
Liabilities incurred | 44,994 | 11,386 |
Liabilities settled (wells sold or plugged) | (24,148) | (64,129) |
Accretion expense | 45,590 | 47,139 |
Revision to estimate | (19,023) | 5,084 |
Balance , asset retirement obligation | $ 1,821,527 | $ 1,774,114 |
Note 4 - Common Stock - Changes
Note 4 - Common Stock - Changes in Common Stock Issued and Outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Balance, shares issued (in shares) | 184,735 | 184,735 |
Balance, treasury stock (in shares) | 27,502 | 27,070 |
Balance, shares outstanding (in shares) | 157,233 | 157,665 |
Purchase of stock (in shares) | 618 | 432 |
Purchase of stock (in shares) | (618) | (432) |
Balance, shares issued (in shares) | 184,735 | 184,735 |
Balance, treasury stock (in shares) | 28,120 | 27,502 |
Balance, shares outstanding (in shares) | 156,615 | 157,233 |
Note 4 - Common Stock - Chang_2
Note 4 - Common Stock - Changes in Common Stock Issued and Outstanding (Details) (Parentheticals) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
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, 2019 | Dec. 31, 2018 | |
Trading Securities, Realized Gain (Loss), Total | $ (10,778) | $ 72,950 |
Trading Securities, Change in Unrealized Holding Gain (Loss), Total | $ 101,247 | $ (181,818) |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 46.00% | 14.00% |
Note 6 - Income Taxes - Deferre
Note 6 - Income Taxes - Deferred Taxes Components (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Net Leasehold Impairment Reserves | $ 257,389 | $ 127,906 |
Gas Balance Receivable | 32,352 | 32,352 |
Long-Lived Asset Impairment | 806,364 | 936,272 |
Deferred Geological and Geophysical Expense | 17,087 | 38,367 |
Other | 318,734 | 224,670 |
Total Assets | 1,431,926 | 1,359,567 |
Liabilities: | ||
Receivables | 76,891 | 72,807 |
Intangible Drilling Costs | 1,546,222 | 1,741,413 |
Depletion, Depreciation and Other | 726,178 | 755,618 |
Total Liabilities | 2,349,291 | 2,569,838 |
Net Deferred Tax Liability | $ (917,365) | $ (1,210,271) |
Note 6 - Income Taxes - Income
Note 6 - Income Taxes - Income Tax Expense, Current and Deferred Portions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current Tax Provision/(Benefit): | ||
Federal | $ 68,198 | $ 96,443 |
State | 1,633 | (784) |
Total Current Provision | 69,831 | 95,659 |
Deferred Tax Provision/(Benefit) | (292,906) | 292,221 |
Total Provision/(Benefit) | $ (223,075) | $ 387,880 |
Note 6 - Income Taxes - Reconci
Note 6 - Income Taxes - Reconciliation of Computed Income Tax (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Computed Federal Tax Provision/(Benefit) | $ (102,866) | $ 567,330 |
Increase (Decrease) in Tax From: | ||
Allowable Depletion in Excess of Basis | (60,224) | (192,979) |
Dividend Received Deduction | (4,443) | (305) |
State Income Tax Provision/(Benefit) | (1,633) | 784 |
Other | (53,909) | 13,050 |
Total Provision/(Benefit) | $ (223,075) | $ 387,880 |
Effective Tax Rate | 46.00% | 14.00% |
Note 7 - Equity Method and Ot_2
Note 7 - Equity Method and Other Investments and Related Commitments and Contingent Liabilities, Including Guarantees (Details Textual) | 12 Months Ended | |||||
Dec. 31, 2019USD ($)a | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) | Oct. 04, 2019USD ($)shares | Dec. 31, 1992a | |
Operating Leases, Rent Expense, Total | $ 35,000 | $ 32,000 | ||||
Equity Method Investments | 744,798 | 881,860 | ||||
Other Long-term Investments | 1,898,347 | 1,689,249 | ||||
Financing Receivable, after Allowance for Credit Loss, Current, Total | 218,158 | |||||
OKC Industrial Properties [Member] | ||||||
Area of Land | a | 46 | 260 | ||||
Broadway Sixty-Eight Partnership [Member] | ||||||
Equity Method Investment, Ownership Percentage | 33.00% | |||||
Equity Method Investments | $ 157,911 | 172,722 | ||||
Grand Woods Development, LLC [Member] | ||||||
Equity Method Investment, Ownership Percentage | 47.00% | |||||
Equity Method Investments | $ 316,384 | 438,303 | ||||
Area of Real Estate Property | a | 26.56 | |||||
Loan Guaranteed | $ 1,200,000 | |||||
Loans Payable, Total | $ 1,755,000 | |||||
QSN Office Park [Member] | ||||||
Equity Method Investment, Ownership Percentage | 20.00% | |||||
Equity Method Investments | $ 270,503 | 270,835 | ||||
Loan Guaranteed | $ 1,300,000 | |||||
OKC Industrial Properties [Member] | ||||||
Other Investment, Ownership Percentage | 10.00% | |||||
Other Long-term Investments | $ 56,164 | 56,164 | ||||
Bailey [Member] | ||||||
Other Investment, Ownership Percentage | 10.00% | |||||
Other Long-term Investments | $ 80,377 | 80,377 | ||||
Cloudburst Solutions [Member] | ||||||
Other Investment, Ownership Percentage | 11.9375% | |||||
Other Long-term Investments | $ 1,496,007 | 1,294,375 | ||||
Payments to Acquire Interest in Subsidiaries and Affiliates, Total | 44,375 | $ 750,000 | $ 500,000 | |||
Financing Receivable, after Allowance for Credit Loss, Current, Total | $ 175,000 | |||||
Interest Receivable | $ 26,632 | |||||
Financing Receivable, Conversion to Equity, Percent | 1.3125% | |||||
Cloudburst International, Inc. [Member] | ||||||
Other Investment, Ownership Percentage | 11.9375% | |||||
Investment Conversion Into New Entity, Shares Issued | shares | 95,500 | |||||
Ocean [Member] | ||||||
Other Investment, Ownership Percentage | 12.44% | |||||
Other Long-term Investments | $ 225,485 | $ 218,018 |
Note 8 - Costs Incurred in Oi_3
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, 2019 | Dec. 31, 2018 | |
Acquisition of Properties: | ||
Unproved | $ 513,309 | $ 485,348 |
Proved | 231,000 | |
Exploration Costs | 970,994 | 1,770,215 |
Development Costs | 111,810 | 622,024 |
Asset Retirement Obligation | $ 1,823 | $ 16,470 |
Note 9 - Fair Value Measureme_3
Note 9 - Fair Value Measurements (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation, Liabilities Incurred | $ 44,994 | $ 11,386 |
Impairment Of Oil And Gas Cost Properties | 912,045 | 832,651 |
Fair Value, Inputs, Level 3 [Member] | ||
Asset Retirement Obligation, Liabilities Incurred | 44,994 | 11,386 |
Impairment Of Oil And Gas Cost Properties | $ 912,045 | $ 832,651 |
Note 9 - Fair Value Measureme_4
Note 9 - Fair Value Measurements - Schedule of Fair Value Reported on a Recurring Basis (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Equity Securities | $ 545,075 | $ 454,058 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Equity Securities | 545,075 | 454,058 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member] | ||
Available-for-Sale Securities | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Domestic Equities [Member] | ||
Equity Securities | 364,171 | 259,843 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | International Equities [Member] | ||
Equity Securities | 110,629 | 179,083 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other [Member] | ||
Equity Securities | 70,275 | 15,132 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Equity Securities | 18,517,910 | 16,249,414 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member] | ||
Available-for-Sale Securities | 18,517,910 | 16,249,414 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Domestic Equities [Member] | ||
Equity Securities | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | International Equities [Member] | ||
Equity Securities | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other [Member] | ||
Equity Securities | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Equity Securities | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US Treasury Securities [Member] | ||
Available-for-Sale Securities | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Domestic Equities [Member] | ||
Equity Securities | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | International Equities [Member] | ||
Equity Securities | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other [Member] | ||
Equity Securities |
Note 10 - Long-lived Assets I_2
Note 10 - Long-lived Assets Impairment Loss (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Impairment Of Oil And Gas Cost Properties | $ 912,045 | $ 832,651 |
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, 2019 | Dec. 31, 2018 | |
Equity Securities | $ 90,469 | $ (108,868) |
Gains on Asset Sales | 18,110 | 611,281 |
Interest Income | 520,319 | 348,615 |
Settlements of Class Action Lawsuits | 408 | |
Agricultural Rental Income | 11,476 | 5,600 |
Dividend Income | 463 | 2,902 |
Income from Other Investments | 8,500 | 16,500 |
Interest and Other Expenses | (46,157) | (47,724) |
Other Income, Net | $ 603,180 | $ 828,714 |
Note 12 - Certain Relationshi_2
Note 12 - Certain Relationships and Related Transactions (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Mesquite [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 199,116 | $ 192,629 |
Lochbuie Limited Liability Company, LLTD [Member] | Payments For Salaries [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 135,778 | $ 135,693 |
Supplemental Schedules of Oil_3
Supplemental Schedules of Oil and Gas Information (Details Textual) - bbl | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Oil and Condensate (Bbls) [Member] | ||
Proved Developed and Undeveloped Reserves Production Royalty | 28,006 | 30,191 |
Gas (MCF) [Member] | ||
Proved Developed and Undeveloped Reserves Production Royalty | 340,386 | 393,584 |
Supplemental Schedules of Oil_4
Supplemental Schedules of Oil and Gas Information - Working Interest Reserve Quantity Information (Details) - bbl | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Oil and Condensate (Bbls) [Member] | ||
Beginning of Year (Barrel of Oil) | 363,198 | 376,396 |
Revisions of Previous Estimates (Barrel of Oil) | (4,587) | 26,063 |
Extensions and Discoveries (Barrel of Oil) | 9,383 | 13,699 |
Purchase of Reserves (Barrel of Oil) | 19,219 | |
Production (Barrel of Oil) | (56,051) | (52,960) |
End of Year (Barrel of Oil) | 331,162 | 363,198 |
Beginning of Year (Barrel of Oil) | 326,752 | 341,152 |
End of Year (Barrel of Oil) | 314,932 | 326,752 |
Gas (MCF) [Member] | ||
Beginning of Year (Barrel of Oil) | 2,831,861 | 3,191,511 |
Revisions of Previous Estimates (Barrel of Oil) | (281,944) | 75,610 |
Extensions and Discoveries (Barrel of Oil) | 377,521 | 8,094 |
Purchase of Reserves (Barrel of Oil) | 7,860 | |
Production (Barrel of Oil) | (474,865) | (443,354) |
End of Year (Barrel of Oil) | 2,460,433 | 2,831,861 |
Beginning of Year (Barrel of Oil) | 2,576,738 | 2,944,804 |
End of Year (Barrel of Oil) | 2,298,135 | 2,576,738 |
Supplemental Schedules of Oil_5
Supplemental Schedules of Oil and Gas Information - Standardized Measure of Discounted Future Net Cash Flows (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Future Cash Inflows | $ 21,416,636 | $ 28,398,588 | |
Future Production and Development Costs | (11,272,849) | (14,212,906) | |
Future Asset Retirement Obligation | (1,788,739) | (1,873,939) | |
Future Income Tax Expense | (294,018) | (701,106) | |
Future Net Cash Flows | 8,061,030 | 11,610,637 | |
10% Annual Discount for Estimated Timing of Cash Flows | (2,581,559) | (3,749,911) | |
Standardized Measure of Discounted Future Net Cash Flows | $ 5,479,471 | $ 7,860,726 | $ 7,061,938 |
Supplemental Schedules of Oil_6
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, 2019 | Dec. 31, 2018 | |
Standardized Measure, Beginning of Year | $ 7,860,726 | $ 7,061,938 |
Sales and Transfers, Net of Production Costs | (1,836,618) | (2,430,324) |
Net Change in Sales and Transfer Prices, Net of Production Costs | (1,962,275) | 2,156,124 |
Extensions, Discoveries and Improved Recoveries, Net of Future Production and Development Costs | 816,539 | 332,441 |
Revisions of Quantity Estimates | (259,068) | 442,030 |
Accretion of Discount | 1,020,105 | 923,952 |
Purchases of Reserves in Place | 318,332 | |
Net Change in Income Taxes | 276,171 | (225,892) |
Net Change in Asset Retirement Obligation | 1,823 | (47,659) |
Changes in Production Rates (Timing) and Other | (756,264) | (351,884) |
Standardized Measure, End of Year | $ 5,479,471 | $ 7,860,726 |