Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
Document Information [Line Items] | ' |
Document Type | 'S-1 |
Amendment Flag | 'false |
Document Period End Date | 31-Mar-14 |
Trading Symbol | 'ENRJ |
Entity Registrant Name | 'EnerJex Resources, Inc. |
Entity Central Index Key | '0000008504 |
Entity Filer Category | 'Smaller Reporting Company |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets: | ' | ' | ' |
Cash | $1,436,642 | $1,079,356 | $767,494 |
Restricted Cash | ' | 228,840 | 0 |
Accounts receivable | 2,561,045 | 2,461,746 | 1,221,962 |
Inventory | 235,243 | 238,794 | 0 |
Marketable securities | 1,018,573 | 1,018,573 | 1,018,573 |
Deposits and prepaid expenses | 711,035 | 373,994 | 528,468 |
Total current assets | 5,962,538 | 5,401,303 | 3,536,497 |
Non-current assets: | ' | ' | ' |
Fixed assets, net of accumulated depreciation of $1,857,114 and $1,785,401 | 2,415,022 | 2,406,591 | 309,877 |
Oil & gas properties using full-cost accounting, net of accumulated DD&A | 60,905,245 | 61,349,403 | 33,202,898 |
Other non-current assets | 803,277 | 834,180 | 0 |
Total non-current assets | 64,123,544 | 64,590,174 | 33,512,775 |
Total assets | 70,086,082 | 69,991,477 | 37,049,272 |
Current liabilities: | ' | ' | ' |
Accounts payable | 2,505,317 | 2,424,009 | 2,384,090 |
Accrued liabilities | 2,520,897 | 3,070,461 | 590,205 |
Derivative liability | 1,116,171 | 1,011,708 | 757,181 |
Note Payable | ' | 0 | 825,000 |
Total current liabilities | 6,142,385 | 6,506,178 | 4,556,476 |
Non-Current Liabilities | ' | ' | ' |
Asset retirement obligation | 2,747,016 | 2,687,801 | 1,336,151 |
Long-term debt | 32,038,159 | 31,547,255 | 8,500,000 |
Derivative liability | 304,469 | 339,642 | 1,043,114 |
Total non-current liabilities | 35,089,644 | 34,574,698 | 10,879,265 |
Total liabilities | 41,232,029 | 41,080,876 | 15,435,741 |
Commitments and Contingencies | ' | ' | ' |
Stockholders' Equity: | ' | ' | ' |
Preferred stock, $0.001 par value, 25,000,000 shares authorized, 4,779,460 shares issued and outstanding | 4,780 | 4,780 | 4,780 |
Common stock, $0.001 par value, 250,000,000 shares authorized; shares issued and outstanding 115,257,967 at March 31, 2014 and 115,004,045 at December 31, 2013 | 115,258 | 115,005 | 73,587 |
Treasury Stock, 5,750,000 shares | -2,551,000 | -2,551,000 | -2,551,000 |
Paid in capital | 52,595,821 | 52,356,811 | 45,352,096 |
Accumulated other comprehensive income | -552,589 | -552,589 | -552,589 |
Retained (deficit) | -20,758,217 | -20,462,406 | -20,713,343 |
Total stockholders' equity | 28,854,053 | 28,910,601 | 21,613,531 |
Total liabilities and stockholders' equity | $70,086,082 | $69,991,477 | $37,049,272 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Preferred stock, par value | $0.00 | $0.00 | $0.00 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 4,779,460 | 4,779,460 | 4,779,460 |
Preferred stock, shares outstanding | 4,779,460 | 4,779,460 | 4,779,460 |
Common stock, par value | $0.00 | $0.00 | $0.00 |
Common stock, shares authorized | 250,000,000 | 250,000,000 | 250,000,000 |
Common stock, shares issued | 115,257,967 | 115,004,045 | 73,586,529 |
Common stock, shares outstanding | 115,257,967 | 115,004,045 | 73,586,529 |
Treasury Stock, shares | 5,750,000 | 5,570,000 | 5,570,000 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $1,857,114 | $1,785,401 | $1,785,401 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues: | ' | ' | ' | ' |
Oil revenues | $3,612,579 | $2,337,301 | ' | ' |
Natural gas revenues | 242,398 | 0 | ' | ' |
Total revenues | 3,854,977 | 2,337,301 | 10,942,270 | 8,496,519 |
Expenses: | ' | ' | ' | ' |
Direct operating costs | 1,531,907 | 782,072 | 4,095,850 | 3,102,321 |
Depreciation, depletion and amortization | 763,758 | 444,537 | 1,856,660 | 1,633,467 |
Professional fees | 224,902 | 356,222 | 1,071,740 | 1,483,720 |
Salaries | 310,348 | 246,011 | 1,432,081 | 601,533 |
Administrative expense | 141,029 | 139,404 | 798,457 | 808,836 |
Total expenses | 2,971,944 | 1,968,246 | 9,254,788 | 7,629,877 |
Income from operations | 883,033 | 369,055 | 1,687,482 | 866,642 |
Other income (expense): | ' | ' | ' | ' |
Interest expense | -378,928 | -118,245 | -772,471 | -302,357 |
Derivative losses | -404,353 | -239,941 | -740,456 | 55,708 |
Other income | 3,882 | 9,167 | 1,115,898 | 121,127 |
Total other income (expense) | -779,399 | -349,019 | -397,029 | -125,522 |
Income before provision for income taxes | ' | ' | 1,290,453 | 741,120 |
Provision for income taxes | ' | ' | 0 | 0 |
Net income | 103,634 | 20,036 | 1,290,453 | 741,120 |
Net income attributed to EnerJex Resources Inc. | ' | ' | 1,290,453 | 345,992 |
Net income attributed to non-controlling interest in subsidiary | ' | ' | 0 | 395,128 |
Net income | 103,634 | 20,036 | 1,290,453 | 741,120 |
Net income attributed to EnerJex Resources Inc. | ' | ' | 1,290,453 | 345,992 |
Preferred dividends | -399,447 | -192,887 | -1,039,516 | -608,459 |
Net (loss) attributable to common stockholders | ($295,813) | ($172,851) | $250,937 | ($262,467) |
Net (loss) per share basic and diluted | $0 | $0 | $0 | $0 |
Weighted average shares outstanding | 109,408,161 | 67,836,529 | 78,229,050 | 69,714,758 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] | Paid in Capital [Member] | Retained Deficit [Member] | Total Stockholders' Equity Enerjex Resources, Inc. [Member] | Non Controlling Interest In Subsidiary [Member] |
Balance at Dec. 31, 2011 | $21,696,941 | $4,780 | $73,412 | ($1,500,000) | ($552,589) | $43,556,486 | ($20,450,876) | $21,131,213 | $565,728 |
Balance (in shares) at Dec. 31, 2011 | ' | 4,779,460 | 73,411,529 | ' | ' | ' | ' | ' | ' |
Stock Issued for Services (in shares) | ' | 0 | 175,000 | ' | ' | ' | ' | ' | ' |
Stock Issued for Services | 122,401 | 0 | 175 | 0 | 0 | 122,226 | 0 | 122,401 | 0 |
Acquistion of Treasury Stock | -1,051,000 | 0 | 0 | -1,051,000 | 0 | 0 | 0 | -1,051,000 | 0 |
Issuance of Stock Options | 167,033 | ' | ' | ' | ' | 167,033 | 0 | 167,033 | 0 |
Warrants Issued for Services | 85,892 | ' | ' | ' | ' | 85,892 | 0 | 85,892 | 0 |
Sale of Non-Controlling Interest by Subsidiary | 2,650,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2,650,000 |
Accretion to EnerJex Due to Sale of Non-Controlling Interest by Subsidiary | 0 | 0 | 0 | 0 | 0 | 1,420,459 | 0 | 1,420,459 | -1,420,459 |
Liquidation of Non-Controlling Interests | -592,936 | ' | ' | ' | ' | ' | ' | ' | -592,936 |
Liquidation of Non-Controlling Interests | -1,597,461 | ' | ' | ' | ' | ' | ' | ' | -1,597,461 |
Dividends Paid on Preferred Stock | -608,459 | 0 | 0 | 0 | 0 | 0 | -608,459 | -608,459 | 0 |
Net Income for the Year | 741,120 | 0 | 0 | 0 | 0 | 0 | 345,992 | 345,992 | 395,128 |
Balance at Dec. 31, 2012 | 21,613,531 | 4,780 | 73,587 | -2,551,000 | -552,589 | 45,352,096 | -20,713,343 | 21,613,531 | 0 |
Balance(in Shares) at Dec. 31, 2012 | ' | 4,779,460 | 73,586,529 | ' | ' | ' | ' | ' | ' |
Stock Issued for Services (in shares) | ' | 0 | 90,000 | ' | ' | ' | ' | ' | ' |
Stock Issued for Services | 45,000 | 0 | 90 | 0 | 0 | 44,910 | 0 | 45,000 | 0 |
Issuance of Stock Options | 72,434 | 0 | 0 | 0 | 0 | 72,434 | 0 | 72,434 | 0 |
Warrants Issued for Services | 40,790 | 0 | 0 | 0 | 0 | 40,790 | 0 | 40,790 | 0 |
Stock Issued for shares of Black Raven Energy, Inc. (in shares) | ' | ' | 41,327,516 | ' | ' | ' | ' | ' | ' |
Stock Issued for shares of Black Raven Energy, Inc. | 6,887,909 | ' | 41,328 | ' | ' | 6,846,581 | 0 | 6,887,909 | 0 |
Dividends Paid on Preferred Stock | -1,039,516 | 0 | 0 | 0 | 0 | 0 | -1,039,516 | -1,039,516 | 0 |
Net Income for the Year | 1,290,453 | 0 | 0 | 0 | 0 | 0 | 1,290,453 | 1,290,453 | 0 |
Balance at Dec. 31, 2013 | $28,910,601 | $4,780 | $115,005 | ($2,551,000) | ($552,589) | $52,356,811 | ($20,462,406) | $28,910,601 | $0 |
Balance(in Shares) at Dec. 31, 2013 | ' | 4,779,460 | 115,004,045 | ' | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities | ' | ' | ' | ' |
Net Income | $103,634 | $20,036 | $1,290,453 | $741,120 |
Depreciation, depletion and amortization | 763,758 | 444,537 | 1,856,660 | 1,633,467 |
Shares based payments issued for services | 258,498 | 49,334 | 255,977 | 285,230 |
Accretion of asset retirement obligation | 63,695 | 28,193 | 139,779 | 93,973 |
Loss on derivatives | 69,289 | 28,775 | -448,945 | -927,039 |
Settlement of asset retirement obligation | -4,996 | 0 | -36,758 | 0 |
Loss on sale of fixed assets | 0 | 7,785 | 5,833 | -1,378 |
Adjustments to reconcile net income to cash from operating activities: | ' | ' | ' | ' |
Accounts receivable | -99,299 | 14,877 | -361,314 | 232,443 |
Inventory | 3,551 | ' | 34,336 | 0 |
Deposits and prepaid expenses | -356,275 | 26,171 | 235,471 | -93,123 |
Accounts payable | 81,308 | -455,950 | -545,112 | 28,398 |
Accrued liabilities | -949,011 | -264,889 | 686,441 | 291,652 |
Cash flows from operating activities | -65,848 | -101,131 | 3,112,821 | 2,284,743 |
Cash flows from investing activities | ' | ' | ' | ' |
Purchase of Treasury Stock | ' | ' | 0 | -226,000 |
Purchase of fixed assets | -80,143 | -19,597 | -184,794 | -115,274 |
Additions to oil and gas properties | -1,234,890 | -1,498,962 | -7,672,492 | -10,247,539 |
Sale of oil and gas properties | 987,521 | 15,000 | 454,975 | 0 |
Settlements of asset retirement obligations | ' | ' | -18,910 | 0 |
Proceeds from sale of fixed assets | 0 | 1,600 | 12,755 | 11,240 |
Net cash acquired from Black Raven | ' | ' | 656,693 | ' |
Cash flows from investing activities | -327,512 | -1,501,959 | -6,751,773 | -10,577,573 |
Cash flows from financing activities | ' | ' | ' | ' |
Payments on notes payable | 0 | -200,000 | -825,000 | 0 |
Proceeds from borrowings | 500,000 | 1,500,000 | 6,000,000 | 4,700,000 |
Repayment of long-term debt | -9,096 | 0 | -9,096 | -33,484 |
Deferred financing costs | 30,902 | ' | -228,258 | 0 |
Sale of non-controlling interest in subsidiary | ' | ' | 0 | 2,650,000 |
Dividend paid | ' | ' | -757,992 | -433,696 |
Distribution to non-controlling interest in subsidiary | ' | ' | ' | -592,936 |
Cash flows from financing activities | 521,806 | 1,300,000 | 4,179,654 | 6,289,884 |
Net increase (decrease) in cash | 128,446 | -303,090 | 540,702 | -2,002,946 |
Cash - beginning | 1,308,196 | 767,494 | 767,494 | 2,770,440 |
Cash - ending | 1,436,642 | 464,404 | 1,308,196 | 767,494 |
Supplemental disclosures: | ' | ' | ' | ' |
Interest paid | 74,499 | 71,006 | 375,932 | 195,125 |
Income taxes paid | 0 | 0 | 0 | 0 |
Non-cash transactions: | ' | ' | ' | ' |
Share based payments issued for services | 258,498 | 49,334 | 216,810 | 452,263 |
Treasury stock purchased with a note payable | ' | ' | ' | 825,000 |
Preferred dividends payable | ' | ' | $456,289 | $174,763 |
Summary_of_Accounting_Policies
Summary of Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Note 1 - Summary of Accounting Policies | |
Basis of Presentation | |
Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. Our operations are considered to fall within a single industry segment, which are the acquisition, development, exploitation and production of crude oil and natural gas properties in the United States. Our consolidated financial statements include our wholly owned subsidiaries and our majority owned subsidiary Rantoul Partners (through December 31, 2012). | |
Rantoul Partners was formed in 2011 by our contribution of certain oil assets totaling $2,282,918 to the partnership for 100% ownership in the entity. The assets were valued at their historic cost which approximated market. In 2011 Rantoul Partners sold 11.75% of the partnership to 2 investors for $2,350,000. 11.75% of the book value of Rantoul Partners after the investment by non-controlling entities was $544,368. The difference between the investment amount ($2,350,000) and the book value bought ($544,368) is accretive to EnerJex in the amount of $1,805,632. This amount was recorded as EnerJex paid in capital. In 2012 an additional $2,650,000 was invested by the two non-controlling owners for an additional 13.25% ownership (bringing their total to 25%). 13.25% of the book value of Rantoul Partners after the additional investments by the non-controlling entities was $1,229,541. The difference between the investment amount ($2,650,000) and the book value bought ($1,229,541) is accretive to EnerJex in the amount of $1,420,459. This amount was recorded as paid in capital. | |
On December 31, 2012 Rantoul Partners was liquidated. At the time of liquidation we owned 75% of Rantoul Partners and 75% of the working interest of Rantoul Partners. We received 75% of the net assets less liabilities of Rantoul Partners that totaled approximately $4,792,380 and a 75% working interest in the oil properties of Rantoul Partners. The non-controlling owners of Rantoul Partners received 25% of the assets less liabilities ($1,597,461) and 25% of the working interest in the properties of Rantoul Partners. | |
All significant intercompany balances and transactions have been eliminated upon consolidation. Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. | |
As discussed further in Note 5, on September 27, 2013, we merged with Black Raven Energy, Inc. (“Black Raven”). The balance sheet accounts of Black Raven, our wholly owned subsidiary, have been consolidated as of September 30, 2013. We did not use the purchase method of accounting due to a common shareholder. Historical costs were used to combine the two entities, accordingly assets and liabilities of Black Raven were not recorded at fair value. The results of operations of Black Raven for the fourth quarter of 2013 are included in the consolidated statement of operations for the year ended December 31, 2013. The results of operations of Black Raven are not included in the consolidated statements of operations at December 31, 2012 or for the year then ended. | |
Nature of Business | |
We are an independent energy company engaged in the business of producing and selling crude oil and natural gas. The crude oil and natural gas is obtained primarily by the acquisition and subsequent exploration and development of mineral leases. Development and exploration may include drilling new exploratory or development wells on these leases. These operations are conducted primarily in Kansas, Colorado, Nebraska and Texas. | |
Use of Estimates in the Preparation of Financial Statements | |
The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates included in the consolidated financial statements are: (1) oil and gas revenues and reserves; (2) depreciation, depletion and amortization; (3) valuation allowances associated with income taxes (4) accrued assets and liabilities; (5) stock-based compensation; (6) asset retirement obligations and (7) valuation of derivative instruments. Although management believes these estimates are reasonable, changes in facts and circumstances or discovery of new information may result in revised estimates. Actual results could differ from those estimates. | |
Trade Accounts Receivable | |
Trade accounts receivable are recorded at the invoiced amount and do not bear any interest. We regularly review receivables to insure that the amounts will be collected and establish or adjust an allowance for uncollectible amounts as necessary using the specific identification method. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |
Share-Based Payments | |
The value we assign to the options and warrants that we issue is based on the fair market value as calculated by the Black-Scholes pricing model. To perform a calculation of the value of our options and warrants, we determine an estimate of the volatility of our stock. We need to estimate volatility because there has not been enough trading of our stock to determine an appropriate measure of volatility. We believe our estimate of volatility is reasonable, and we review the assumptions used to determine this whenever we issue a new equity instruments. | |
Income Taxes | |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized when items of income and expense are recognized in the financial statements in different periods than when recognized in the applicable tax return. Deferred tax assets arise when expenses are recognized in the financial statements before the tax returns or when income items are recognized in the tax return prior to the financial statements. Deferred tax assets also arise when operating losses or tax credits are available to offset tax payments due in future years. Deferred tax liabilities arise when income items are recognized in the financial statements before the tax returns or when expenses are recognized in the tax return prior to the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date when the change in the tax rate was enacted. | |
We routinely assess the reliability of our deferred tax assets. If we conclude that it is more likely than not that some portion or all of the deferred tax assets will not be realized under accounting standards, the tax asset is reduced by a valuation allowance. In addition we routinely assess uncertain tax positions, and accrue for tax positions that are not more-likely-than-not to be sustained upon examination by taxing authorities. | |
Uncertain Tax Positions | |
We follow guidance in Topic 740 of the Codification for its accounting for uncertain tax positions. Topic 740 prescribes guidance for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. To recognize a tax position, we determine whether it is more-likely-than-not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation, based solely on the technical merits of the position. A tax position that meets the more-likely-than-not threshold is measured to determine the amount of benefit to be recognized in the financial statements. The amount of tax benefit recognized with respect to any tax position is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. | |
We have no liability for unrecognized tax benefits recorded as of December 31, 2013 and 2012. Accordingly, there is no amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate and there is no amount of interest or penalties currently recognized in the statement of operations or statement of financial position as of December 31, 2013. In addition, we do not believe that there are any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months. We recognize related interest and penalties as a component of income tax expense. | |
Tax years open for audit by federal tax authorities as of December 31, 2013 are the years ended December 31, 2010, 2011, 2012 and 2013. Tax years ending prior to 2010 are open for audit to the extent that net operating losses generated in those years are being carried forward or utilized in an open year. | |
Fair Value Measurements | |
Accounting guidance establishes a single authoritative definition of fair value based upon the assumptions market participants would use when pricing an asset or liability and creates a fair value hierarchy that prioritizes the information used to develop those assumptions. Additional disclosures are required, including disclosures of fair value measurements by level within the fair value hierarchy. We incorporate a credit risk assumption into the measurement of certain assets and liabilities | |
Cash and Cash Equivalents | |
We consider all highly liquid investment instruments purchased with original maturities of three months or less to be cash equivalents for purposes of the consolidated statements of cash flows and other statements. We maintain cash on deposit, which, at times, exceeds federally insured limits. We have not experienced any losses on such accounts and believe we are not exposed to any significant credit risk on cash and equivalents. | |
Revenue Recognition | |
Oil and gas revenues are recognized net of royalties when production is sold to a purchaser at a fixed or determinable price, when delivery has occurred and title has transferred, and if collection of the revenue is probable. Cash received relating to future revenues is deferred and recognized when all revenue recognition criteria are met. | |
Property and Equipment | |
Property and equipment are recorded at cost. Depreciation is on a straight-line method using the estimated lives of the assets. (3-15 years). Expenditures for maintenance and repairs are charged to expense. | |
Debt issue costs | |
Debt issuance costs incurred are capitalized and subsequently amortized over the term of the related debt on the straight-line method of amortization over the estimated life of the debt. | |
Oil & Gas Properties | |
We follow the full cost method of accounting under which all costs associated with property acquisition, exploration and development activities are capitalized. We also capitalize internal costs that can be directly identified with our acquisition, exploration and development activities and do not include costs related to production, general corporate overhead or similar activities. | |
Proved properties are amortized using the units of production method (UOP). Currently we only have operations in the United States of America. The UOP calculation multiplies the percentage of estimated proved reserves produced each quarter by the cost of these reserves. The amortization base in the UOP calculation includes the sum of proved property, net of accumulated depreciation, depletion and amortization (DD&A), estimated future development costs (future costs to access and develop proved reserves) and asset retirement costs, less related salvage value. | |
The cost of unproved properties are excluded from the amortization calculation until it is determined whether or not proved reserves can be assigned to such properties or until development projects are placed into service. Geological and geophysical costs not associated with specific properties are recorded as proved property immediately. Unproved properties are reviewed for impairment quarterly. | |
Under the full-cost-method of accounting, the net book value of oil and gas properties, less deferred income taxes, may not exceed a calculated “ceiling.” The ceiling limitation is (a) the present value of future net revenues computed by applying current prices of oil & gas reserves (with consideration of price changes only to the extent provided by contractual arrangements) to estimated future production of proved oil & gas reserves as of the date of the latest balance sheet presented, less estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves computed using a discount factor of 10 percent and assuming continuation of existing economic conditions plus (b) the cost of properties not being amortized plus (c) the lower of cost or estimated fair value of unproven properties included in the costs being amortized less (d) income tax effects related to differences between book and tax basis of properties. Future cash outflows associated with settling accrued retirement obligations are excluded from the calculation. Estimated future cash flows are calculated using end-of-period costs and an un-weighted arithmetic average of commodity prices in effect on the first day of each of the previous 12 months held flat for the life of the production, except where prices are defined by contractual arrangements. | |
Any excess of the net book value of proved oil and gas properties, less related deferred income taxes, over the ceiling is charged to expense and reflected as additional DD&A in the statement of operations. The ceiling calculation is performed quarterly. During the years ended December 31, 2013 and 2012 there were no impairments resulting from the quarterly ceiling tests. | |
Proceeds from the sale or disposition of oil and gas properties are accounted for as a reduction to capitalized costs unless a significant portion (greater than 25%) of our reserve quantities are sold, in which case a gain or loss is recognized in income. | |
Long-Lived Assets | |
Impairment of long-lived assets is recorded when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying value. The carrying value of the assets is then reduced to their estimated fair value that is usually measured based on an estimate of future discounted cash flows. | |
Asset Retirement Obligations | |
The asset retirement obligation relates to the plug and abandonment costs when our wells are no longer useful. We determine the value of the liability by obtaining quotes for this service and estimate the increase we will face in the future. We then discount the future value based on an intrinsic interest rate that is appropriate for us. If costs rise more than what we have expected there could be additional charges in the future, however, we monitor the costs of the abandoned wells and we will adjust this liability if necessary. | |
Major Purchasers | |
For the years ended December 31, 2013, and 2012 we sold our produced crude oil to Coffeyville Resources, Plains Marketing, L.P., and Sunoco, Inc. on a month-to-month basis. For the year ended December 31, 2013, we sold our produced natural gas to United Energy Trading and Western Operating Company. | |
Marketable Securities Available for Sale | |
The Company classifies its marketable equity securities as available-for-sale and they are carried at fair market value, with the unrealized gains and losses included in accumulated other comprehensive income and reported in stockholders’ equity. The difference between cost and market totals $552,589 for the years ended December 31, 2013 and 2012. | |
Net Income Per Common Share | |
Basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the impact of common shares issuable upon exercise of stock options and warrants and conversion of convertible debt that are not deemed to be anti-dilutive. The dilutive effect of the outstanding stock options and warrants is computed using the treasury stock method. | |
For the year ended December 31, 2013, diluted net income per share did not include the effect of 2,592,500 shares of common stock issuable upon the exercise of outstanding stock options as their effect would be anti-dilutive. | |
For the year ended December 31, 2012, diluted net income per share did not include the effect of 192,970 shares of common stock issuable upon the exercise of outstanding stock options as their effect would be anti-dilutive. | |
Reclassifications | |
Certain reclassifications have been made to prior periods to conform to current presentations. | |
Recent Accounting Pronouncements Applicable to the Company | |
The Company does not believe there are any recently issued, but not yet effective; accounting standards that would have a significant impact on the Company’s financial position or results of operations. | |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Note 1 – Basis of Presentation | |
The unaudited condensed consolidated financial statements of EnerJex Resources, Inc. (“we”, “us”, “our” and “Company”) have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and reflect all adjustments which, in the opinion of management, are necessary for a fair presentation. All such adjustments are of a normal recurring nature. The results of operations for the interim period are not necessarily indicative of the results to be expected for a full year. Certain amounts in the prior year statements have been reclassified to conform to the current year presentations. The statements should be read in conjunction with the financial statements and footnotes thereto included in our Annual Report Form 10-K for the fiscal year ended December 31, 2013. | |
Our consolidated financial statements include the accounts of our wholly-owned subsidiaries, EnerJex Kansas, Inc., DD Energy, Inc., Black Sable Energy, LLC, Working Interest, LLC, and Black Raven Energy, Inc. (“Black Raven”) for the quarter ended March 31, 2014. On September 27, 2013 we acquired Black Raven. Accordingly, only the financial position, results of operation and cash flows of Black Raven for the quarter ended December 31, 2013 were included in the Company’s consolidated financial statements for the year ended December 31, 2013. All intercompany transactions and accounts have been eliminated in consolidation. | |
Stock_Transactions_and_Options
Stock Transactions and Options | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ' | ||||||||||||||||||||||||
Stock Transactions and Options | ' | ' | ||||||||||||||||||||||||
Note 2 - Stock Options | Note 2 - Stock Transactions | |||||||||||||||||||||||||
A summary of stock options is as follows: | The Series A preferred stock is convertible into 4,779,460 shares of our common stock, and the Series A preferred stock, by its terms, shall convert into common stock on a one-to-one basis (subject to adjustment) once the cumulative dividends paid with regard to such stock equal to original principal value of $1.00 per share. In the event of liquidation, the holders of our Series A preferred stock would receive priority liquidation payments before payments to common shareholders equal to the amount of the stated value of the preferred stock before any distributions would be made to our common shareholders. The preferred stockholders have the right, by majority vote of the shares of preferred stock, to generally approve any issuances by us of equity that is senior to or equal in rights to the preferred stock. | |||||||||||||||||||||||||
Options | Weighted | Warrants | Weighted | We are required by the terms of our Series A preferred stock to declare dividends each calendar quarter in an aggregate amount equal to one-third of our adjusted net cash from operating activities reduced by any principal amount of debt repayment in such calendar quarter to institutional lenders and other secured creditors. Dividends of $583,227 and $433,696 were paid for the years ended December 31, 2013 and 2012 respectively. A dividend of $456,289 will be paid in the second quarter of 2014 to preferred shareholders of record as of December 31, 2013. | ||||||||||||||||||||||
Avg. | Avg. | |||||||||||||||||||||||||
Exercise | Exercise | Stock transactions in fiscal year ended December 31, 2013 | ||||||||||||||||||||||||
Price | Price | |||||||||||||||||||||||||
Outstanding December 31, 2013 | 3,467,000 | $ | 0.62 | - | $ | - | We issued 90,000 shares at $0.50 per share to two employees as compensation. The market value of the stock at the date of issuance was $0.55 per share. | |||||||||||||||||||
Granted | 35,500 | 0.7 | - | - | ||||||||||||||||||||||
Cancelled | -22,500 | 0.7 | - | - | On September 30, 2013 the Company issued 41,327,516 shares to Black Raven Energy, Inc. shareholders in exchange for their shares of Black Raven Energy, Inc. common shares. (See Note 5). | |||||||||||||||||||||
Exercised | - | - | - | - | ||||||||||||||||||||||
Outstanding March 31, 2014 | 3,480,000 | $ | 0.62 | - | $ | - | Stock transactions in fiscal year ended December 31, 2012 | |||||||||||||||||||
We issued 60,000 shares at $0.77 per share to an Investor Relations firm in exchange for services. The market value of the stock at the date of issuance was $0.77 per share. We also issued 75,000 shares to a Director of the Company for services and 40,000 shares to an employee of the Company. The market price at the date of issuance for these shares was $0.60 and $0.78 respectively. | ||||||||||||||||||||||||||
On November 30, 2012 the Company purchased two million shares of stock from a shareholder of the Company for $323,035 in cash (including an option payment that we previously made to the selling stockholder) and a note payable of $825,000 bearing interest at a rate per annum of twenty-four hundredths percent (0.24%) (See Note 13). | ||||||||||||||||||||||||||
Option transactions | ||||||||||||||||||||||||||
Officers (including officers who are members of the Board of Directors), directors, employees and consultants are eligible to receive options under our stock option plans. We administer the stock option plans and we determine those persons to whom options will be granted, the number of options to be granted, the provisions applicable to each grant and the time periods during which the options may be exercised. No options may be granted more than ten years after the date of the adoption of the stock option plans. | ||||||||||||||||||||||||||
Each option granted under the stock option plans will be exercisable for a term of not more than ten years after the date of grant. Certain other restrictions will apply in connection with the plans when some awards may be exercised. In the event of a change of control (as defined in the stock option plans), the vesting date on which all options outstanding under the stock option plans may first be exercised will be accelerated. Generally, all options terminate 90 days after a change of control. | ||||||||||||||||||||||||||
2000-2001 Stock Option Plan | ||||||||||||||||||||||||||
The Board of Directors approved a stock option plan and our stockholders ratified the plan on September 25, 2000. The total number of options that can be granted under the plan is 200,000 shares. | ||||||||||||||||||||||||||
Stock Incentive Plan | ||||||||||||||||||||||||||
The Board of Directors approved the EnerJex Resources, Inc. Stock Option Plan on August 1, 2002 (the "2002-2003 Stock Option Plan"). Originally, the total number of options that could be granted under the 2002-2003 Stock Option Plan was not to exceed 400,000 shares. In September 2007 our stockholders approved a proposal to amend and restate the 2002-2003 Stock Option Plan to increase the number of shares issuable to 1,000,000. On October 14, 2008 our stockholders approved a proposal to amend and restate the 2002-2003 Stock Option Plan to (i) rename it the EnerJex Resources, Inc. Stock Incentive Plan (the "Stock Incentive Plan"), (ii) increase the maximum number of shares of our common stock that may be issued under the Stock Incentive Plan from 1,000,000 to 1,250,000, and (iii) add restricted stock as an eligible award that can be granted under the Stock Incentive Plan. | ||||||||||||||||||||||||||
On December 31, 2010 we granted 900,000 options that vest ratably over a 48 month period and are exercisable at $0.40 per share to an Officer of the company. The term of the options is 5 years. The fair value of the options as calculated using the Black-Scholes model was $307,751. The amount recognized as expense in the years ended December 31, 2012 and 2011 was $76,938 respectively and the amount of expense to be recognized in future periods is $153,876. There are 675,000 and 450,000 options vested at December 31, 2013 and December 31, 2012 respectively. | ||||||||||||||||||||||||||
On December 1, 2012 we granted 785,000 options to four employees of the Company, 33% of which vest after one year. The remaining options vest monthly over a two year period. The fair value of the options on the date of the grant was calculated using the Black-Scholes model was $167,032 using the following weighted average assumptions: exercise price of $0.70 per share; common stock price of $0.56 per share; volatility of 67%; term of three years; dividend yield of 0%; interest rate of .47%. The amount recognized as expense in the year ended December 31, 2012 was $18,825 and the amount of expense to be recognized in future periods is $148,208. At December 31, 2013 approximately 350,000 options were vested. None of the options were vested at December 31, 2012. | ||||||||||||||||||||||||||
On June 6, 2013, stockholders approved the adoption of the 2013 Stock Incentive Plan, reserving 5,000,000 shares of common stock under the plan. Neither the 2000/2001 Stock Option Plan nor the Stock Incentive Plan had sufficient shares to cover options that we intend to grant and those plans are dated and would not allow us to grant tax-qualified incentive stock options. The 2013 Stock Incentive Plan reserves 5,000,000 shares of our common stock for the granting of options and issuance of restricted shares to our employees, officers, directors, and consultants. | ||||||||||||||||||||||||||
In 2013, we granted 1,787,000 options to thirteen employees. These options were issued throughout the year. Thirty-three percent of these options vest one year after the date of the grant. The remaining options vest ratably each month over a two year period. The fair value of the option on the date of the grant was calculated using the Black-Scholes model was $376,103 using the following weighted average assumptions: exercise price of $0.70 per share; common stock price of ranging from $0.53 to $0.56 per share; volatility ranging from 67% to 72%; term of three years; dividend yield of 0%; interest rate of .47%. The amount recognized as expense in the year ended December 31, 2013 was $33,267 and the amount of expense to be recognized in future periods is $342,836. None of these options were vested at December 31, 2013. | ||||||||||||||||||||||||||
Warrant Transactions | ||||||||||||||||||||||||||
On March 31, 2011, we granted 2,838,330 Warrants to each investor that entered into the Securities Purchase Agreement for additional consideration, each investor received a stock purchase warrant to purchase 1 share of common stock at a price of $0.90 per share, for each 2 shares of common stock purchased. | ||||||||||||||||||||||||||
Each Warrant was exercisable until December 31, 2011. The fair value at the date of the grant was calculated using the Black-Scholes model and totaled $74,164, using the following weighted average assumptions: exercise price of $0.90 per share; common stock price of $0.85 per share; volatility of 42%; term of nine months; dividend yield of 0%; interest rate of 0.30%. On December 31, 2011 the warrants were extended for an additional nine months to expire September 30, 2012. The fair value at the date of the extension was calculated using the Black-Scholes model and totaled $154,676, using the following weighted average assumptions: exercise price of $0.90 per share; common stock price of $0.90 per share; volatility of 71%; term of nine months; dividend yield of 0%; interest rate of 0.25%. The amount recognized as expense in the year ended December 31, 2011 was based on an estimate of the number of warrants that would be exercised and totaled $228,840. On September 30, 2012 the warrants were cancelled unexercised. | ||||||||||||||||||||||||||
On May 31, 2012, we granted 250,000 Warrants to an investor relations firm for investor relations services to be performed over the next two years. Each warrant is exercisable until May 31, 2014. The fair value at the date of grant was calculated using the Black-Scholes model and totaled approximately $86,000 using the following assumptions. The exercise price is $0.70 per share. The market price of our stock at the grant date was $0.75 per share. We assumed volatility of 82%, a dividend yield of 0.0%, an interest rate of 0.30% and a two year term. On January 3, 2013, we granted 300,000 Warrants to an investor relations firm for investor relations services to be performed over the next year. The fair value at the date of grant was calculated using the Black-Scholes model and totaled approximately $41,000 using the following assumptions. The exercise price is $0.70 per share. The market price of our stock at the grant date was $0.50 per share. We assumed volatility of 77%, a dividend yield of 0.0%, an interest rate of 0.27% and a two year term. In the fourth quarter of 2013 all 550,000 warrants were cancelled unexercised. | ||||||||||||||||||||||||||
A summary of stock options and warrants is as follows: | ||||||||||||||||||||||||||
Weighted Ave. | Weighted Ave. | |||||||||||||||||||||||||
Options | Exercise Price | Warrants | Exercise Price | |||||||||||||||||||||||
Outstanding January 1, 2012 | 900,000 | $ | 0.4 | 2,838,330 | $ | 0.9 | ||||||||||||||||||||
Granted | 785,000 | 0.7 | 250,000 | 0.7 | ||||||||||||||||||||||
Cancelled | - | - | -2,838,330 | -0.9 | ||||||||||||||||||||||
Exercised | - | - | - | - | ||||||||||||||||||||||
Outstanding December 31, 2012 | 1,685,000 | $ | 0.54 | 250,000 | $ | 0.7 | ||||||||||||||||||||
Granted | 1,787,000 | 0.7 | 300,000 | 0.7 | ||||||||||||||||||||||
Cancelled | -5,000 | -0.7 | -550,000 | -0.7 | ||||||||||||||||||||||
Exercised | - | - | - | - | ||||||||||||||||||||||
Outstanding December 31, 2013 | 3,467,000 | $ | 0.62 | - | $ | - | ||||||||||||||||||||
Asset_Retirement_Obligation
Asset Retirement Obligation | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||
Asset Retirement Obligation [Abstract] | ' | ' | ||||||||
Asset Retirement Obligation | ' | ' | ||||||||
Note 4 - Asset Retirement Obligation | Note 3 - Asset Retirement Obligation | |||||||||
Our asset retirement obligations relate to the liabilities associated with the abandonment of oil wells. The amounts recognized are based on numerous estimates and assumptions, including future retirement costs, inflation rates and credit adjusted risk-free interest rates. The following shows the changes in asset retirement obligations: | Our asset retirement obligations relate to the abandonment of oil and gas wells. The amounts recognized are based on numerous estimates and assumptions, including future retirement costs, inflation rates and credit adjusted risk-free interest rates. The following shows the changes in asset retirement obligations: | |||||||||
Asset retirement obligations, December 31, 2013 | $ | 2,687,801 | Asset retirement obligations, January 1, 2012 | $ | 908,790 | |||||
Liabilities incurred during the period | 516 | Liabilities incurred during the period | 347,018 | |||||||
Accretion | 63,695 | Liabilities settled during the period | -1,427 | |||||||
Liabilities settled during the quarter | -4,996 | Accretion | 81,770 | |||||||
Asset retirement obligations, March 31, 2014 | $ | 2,747,016 | Asset retirement obligations, December 31, 2012 | 1,336,151 | ||||||
Liabilities acquired | 1,251,511 | |||||||||
Liabilities incurred during the period | 56,825 | |||||||||
Liabilities settled during the year | -96,465 | |||||||||
Accretion | 139,779 | |||||||||
Asset retirement obligations, December 31, 2013 | $ | 2,687,801 | ||||||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Long-Term Debt [Abstract] | ' | ' |
Long-Term Debt | ' | ' |
Note 6 - Long-Term Debt | Note 4 - Long-Term Debt | |
Senior Secured Credit Facility | Senior Secured Credit Facility | |
On October 3, 2011, the Company and DD Energy, Inc., EnerJex Kansas, Inc., Black Sable Energy, LLC and Working Interest, LLC ("Borrowers") entered into an Amended and Restated Credit Agreement with Texas Capital Bank, N.A. (the “Bank”) and other financial institutions and banks that may become a party to the Credit Agreement from time to time. The facilities provided under the Amended and Restated Credit Agreement were used to refinance Borrowers prior outstanding revolving loan facility with Bank, dated July 3, 2008, and for working capital and general corporate purposes. | On October 3, 2011, the Company and DD Energy, Inc., EnerJex Kansas, Inc., Black Sable Energy, LLC and Working Interest, LLC ("Borrowers") entered into an Amended and Restated Credit Agreement with Texas Capital Bank, and other financial institutions and banks that may become a party to the Credit Agreement from time to time. The facilities provided under the Amended and Restated Credit Agreement are to be used to refinance Borrowers prior outstanding revolving loan facility with Bank, dated July 3, 2008, and for working capital and general corporate purposes. | |
At our option, loans under the facility will bear stated interest based on the Base Rate plus Base Rate Margin, or Floating Rate plus Floating Rate Margin (as those terms are defined in the Credit Agreement). The Base Rate will be, for any day, a fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate plus 0.50% and (b) the Bank's prime rate. The Floating Rate shall mean, at Borrower's option, a per annum interest rate equal to (i) the Eurodollar Rate plus Eurodollar Margin, or (ii) the Base Rate plus Base Rate Margin (as those terms are defined in the Amended and Restated Credit Agreement). Eurodollar borrowings may be for one, two, three, or six months, as selected by the Borrowers. The margins for all loans are based on a pricing grid ranging from 0.00% to 0.75% for the Base Rate Margin and 2.25% to 3.00% for the Floating Rate Margin based on the Company's Borrowing Base Utilization Percentage (as defined in the Amended and Restated Credit Agreement). | At our option, loans under the facility will bear stated interest based on the Base Rate plus Base Rate Margin, or Floating Rate plus Floating Rate Margin (as those terms are defined in the Credit Agreement). The Base Rate will be, for any day, a fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate plus 0.50% and (b) the Bank's prime rate. The Floating Rate shall mean, at Borrower's option, a per annum interest rate equal to (i) the Eurodollar Rate plus Eurodollar Margin, or (ii) the Base Rate plus Base Rate Margin (as those terms are defined in the Amended and Restated Credit Agreement). Eurodollar borrowings may be for one, two, three, or six months, as selected by the Borrowers. The margins for all loans are based on a pricing grid ranging from 0.00% to 0.75% for the Base Rate Margin and 2.25% to 3.00% for the Floating Rate Margin based on the Company's Borrowing Base Utilization Percentage (as defined in the Amended and Restated Credit Agreement). | |
On December 15, 2011, we entered into a First Amendment to Amended and Restated Credit Agreement and Second Amended and Restated Promissory Note in the amount of $50,000,000 with the Bank. The Amendment reflected the addition of Rantoul Partners as an additional Borrower and added as additional security for the loans the assets held by Rantoul Partners. | We entered into a First Amendment to Amended and Restated Credit Agreement and Second Amended and Restated Promissory Note in the amount of $50,000,000 with Texas Capital Bank, which closed on December 15, 2011. The Amendment reflects the addition of Rantoul Partners, as an additional Borrower and adds as additional security for the loans the assets held by Rantoul Partners. | |
On August 31, 2012, we entered into a Second Amendment to Amended and Restated Credit Agreement with the Bank. The Second Amendment: (i) increased our borrowing base to $7,000,000, (ii) reduced the minimum interest rate to 3.75%, and (iii) added additional new leases as collateral for the loan. | On August 31, 2012, we entered into a Second Amendment to Amended and Restated Credit Agreement with Texas Capital Bank. The Second Amendment: (i) increased the borrowing base to $7,000,000 (ii) reduced the minimum interest rate to 3.75% and (iii) added additional new leases as collateral for the loan. | |
On November 2, 2012, we entered into a Third Amendment to Amended and Restated Credit Agreement with the Bank. The Third Amendment (i) increased our borrowing base to $12,150,000, and (ii) clarified certain continuing covenants and provided a limited waiver of compliance with one of the covenants so clarified for the quarter ended December 31, 2011. | On November 2, 2012, we entered into a Third Amendment to Amended and Restated Credit Agreement with the Texas Capital Bank. The Third Amendment (i) increased the borrowing base to $12,150,000 and (ii) clarified certain continuing covenants and provided a limited waiver of compliance with one of the covenants so clarified for the fiscal quarter ended December 31, 2011. | |
On January 24, 2013, we entered into a Fourth Amendment to Amended and Restated Credit Agreement, which was made effective as of December 31, 2012 with the Bank. The Fourth Amendment reflects the following changes: (i) the Bank consented to the restructuring transactions related to the dissolution of Rantoul Partners, and (ii) the Bank terminated a Limited Guaranty, as defined in the Credit Agreement, executed by Rantoul Partners in favor of the Bank. | On January 24, 2013, we entered into a Fourth Amendment to Amended and Restated Credit Agreement, which was made effective as of December 31, 2012 with Texas Capital Bank. The Fourth Amendment reflects the following changes: (i) the Bank consented to the restructuring transactions related to the dissolution of Rantoul Partners, and (ii) the Bank terminated a Limited Guaranty, as defined in the Credit Agreement, executed by Rantoul Partners in favor of the Bank | |
On April 16, 2013, the Bank increased our borrowing base to $19.5 million. | On April 16, 2013, the Bank increased our borrowing base to $19.5 million. | |
On September 30, 2013, we entered into a Fifth Amendment to the Amended and Restated Credit Agreement. The Fifth Amendment reflects the following changes: (i) an expanded principal commitment amount of the Bank to $100,000,000, (ii) an increase in our Borrowing Base to $38,000,000, (iii) the addition of Black Raven Energy, Inc. to the Credit Agreement as a borrower party, (iv) the addition of certain collateral and security interests in favor of the Bank, and (v) the reduction of our current interest rate to 3.30%. | On September 30, 2013, the Company entered into a Fifth Amendment to the Amended and Restated Credit Agreement. The Fifth Amendment reflects the following changes: (i) an expanded principal commitment amount of the Bank to $100,000,000; (ii) increased the Borrowing Base to $38,000,000; (iii) added Black Raven Energy, Inc. to the Credit Agreement as borrower parties; (iv) added certain collateral and security interests in favor of the Bank; and (v) reduced the Company’s current interest rate to 3.30%. | |
On November 19, 2013, we entered into a Sixth Amendment to the Amended and Restated Credit Agreement. The Sixth Amendment reflects the following changes: (i) added Iberia Bank as a participant into our credit facility, and (ii) made a technical correction to our covenant calculations. | Our Current borrowing base is $38 million, of which we had borrowed $31.5 million as of December 31, 2013. We intend to conduct an additional borrowing base review in the second quarter of 2014 and we expect increases in production and the maturity of existing production to result in an additional borrowing base increase as part of the additional borrowing base review. For the year ended December 31, 2013 the interest rate was 3.3%. This facility expires on October 3, 2015. | |
Our current borrowing base is $38 million, of which we had borrowed $32.0 million as of March 31, 2014. We intend to conduct an additional borrowing base review in the second quarter of 2014 and we expect increases in production and the maturity of existing production to result in an additional borrowing base increase as part of the additional borrowing base review. For the three month period ended March 31, 2014 and for the year ended December 31, 2013 the interest rate was 3.3%. This facility expires on October 3, 2015. | We financed the purchase of vehicles through a bank. The notes are for four years and the vehicles collateralize these notes. The long term balance on the notes at December 31, 2013 was $47,255. | |
Other Long Term Debt | ||
We financed the purchase of vehicles through a bank. The notes are for four years and the vehicles collateralize these notes. The long term balance on the notes at March 31, 2014 was $38,159. | ||
Merger
Merger | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Merger [Abstract] | ' | |||||||
Merger | ' | |||||||
Note 5 - Merger | ||||||||
On July 23, 2013, EnerJex, BRE Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of EnerJex (Merger Sub), and Black Raven Energy, Inc., a Nevada corporation, entered into an agreement and plan of merger (Merger Agreement) pursuant to which Black Raven would be merged with and into Merger Sub and after which Black Raven would be a wholly owned subsidiary of EnerJex. | ||||||||
On September 27, 2013, the transactions contemplated by the Merger Agreement were successfully completed. | ||||||||
The following transactions were executed on September 27, 2013 per the terms of the Merger Agreement (i) shares of capital stock of Black Raven were converted into (a) cash totaling $207,067 and (b) 41,327,516 shares of EnerJex common stock, (ii) all options under the Black Raven option plan were cancelled, and (iii) all warrants or other rights to purchase shares of capital stock of Black Raven were converted into warrants to purchase EnerJex common stock. No fractional shares of EnerJex common stock were issued in connection with the Merger, and holders of Black Raven common stock were entitled to receive cash in lieu thereof. The board of directors and executive officers of EnerJex remained unchanged as a result of the closing of the Merger. | ||||||||
At closing of the transactions contemplated by the Merger Agreement, the previous stockholders of Black Raven owned approximately 38% of the outstanding voting stock of EnerJex and the previous stockholders of EnerJex owned approximately 62% of the outstanding voting stock of EnerJex. | ||||||||
The following selected pro forma condensed financial information of EnerJex and Black Raven combines the consolidated financial information of EnerJex for the twelve month periods ended December 31, 2013 and 2012 with the financial information of Black Raven for the twelve months ended December 31, 2013 2012. | ||||||||
EnerJex and Black Raven present the unaudited pro forma condensed consolidated financial information for informational purposes only. The pro forma information is not necessarily indicative of what the combined company’s financial position or results of operations actually would have been had EnerJex and Black Raven completed the merger on January 1, 2012. In addition the unaudited pro forma condensed consolidated financial information does not purport to project the future financial position or operating results of the combined company. The unaudited pro forma condensed consolidated financial information does not give effect to any potential cost savings or other operating efficiencies that could result from the merger. The unaudited pro forma condensed consolidated financial information is not adjusted for any merger related transaction costs or other non-recurring expenses. | ||||||||
The unaudited pro forma condensed consolidated financial information includes estimates of Black Raven had it accounted for its investments in oil and gas assets using the full cost method of accounting and not the successful efforts method of accounting. The unaudited pro forma consolidated financial information was prepared using the full cost method of accounting for oil and gas activities. | ||||||||
Pro Forma Consolidated Combined Statements of Operations (Unaudited) | ||||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Revenues | $ | 14,362,000 | $ | 15,483,000 | ||||
Income from operations | $ | 2,106,000 | $ | 2,967,200 | ||||
Net income (loss) | $ | -141,700 | $ | 286,200 | ||||
Net income (loss) per common share | $ | - | $ | - | ||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Note 6 - Related party transactions | |
In the normal course of business we utilize the services of stockholders who perform work for us at normal business rates. | |
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Commitments and Contingencies | ' | ' |
Note 7 – Commitments & Contingencies | Note 7 - Commitments and Contingencies | |
As of March 31, 2014 the Company has an outstanding irrevocable letter of credit in the amount of $50,000 issued in favor of the Texas Railroad Commission. The letter of credit is required by the Texas Railroad Commission for all companies operating in the state of Texas with production greater than limits they prescribe. | Rent expense for the years ended December 31, 2013 and 2012 was approximately $185,000 and $113,000 respectively. Future non-cancellable minimum lease payments are approximately $132,000 for 2014, $72,000 for 2015, $62,000 for 2016 and $58,000 for 2017. We received rental income from sub rentals of $37,000 in 2013 and $50,000 in 2012. | |
Rent expense for the three months ended March 31, 2014 and 2013 was approximately $51,000 and $29,000 respectively. Future non-cancellable minimum lease payments are approximately $120,000 for the remainder of 2014, $154,000 for 2015, $147,000 for 2016, $145,000 for 2017, $90,000 for 2018 and $77,000 for 2019. | We, as a lessee and operator of oil and gas properties, are subject to various federal, state and local laws and regulations relating to discharge of materials into, and protection of, the environment. These laws and regulations may, among other things, impose liability on the lessee under an oil and gas lease for the cost of pollution clean-up resulting from operations and subject to the lessee to liability for pollution damages. In some instances, the Company may be directed to suspend or cease operations in the affected area. As of December 31, 2013, we have no reserve for environmental remediation and are not aware of any environmental claims. | |
As of December 31, 2013, the Company has an outstanding irrevocable letter of credit in the amount of $50,000 issued in favor of the Texas Railroad Commission. This letter of credit is required by the Commission by all companies operating in the state in accordance with limits prescribed by the Texas Railroad Commission. | ||
Equity_Transactions
Equity Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Statement Of Stockholders' Equity [Abstract] | ' |
Equity Transactions | ' |
Note 8 - Equity Transactions | |
On January 15, 2014, 110,000 shares were issued to two employees of the Company as compensation. From February 5, 2014 through March 17, 2014, 143,922 shares were issued to a consultant for professional services rendered on behalf of the Company. | |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Taxes | ' | |||||||
Note 8 - Income Taxes | ||||||||
There was no current or deferred income tax expense (benefit) for the years ended December 31, 2013 and December 31, 2012. | ||||||||
The following table sets forth a reconciliation of the provision for income taxes to the statutory federal rate: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Statutory tax rate | 34 | % | 34 | % | ||||
Derivative instruments | 11.8 | % | -94.8 | % | ||||
Oil and gas costs and long-lived assets | -6.3 | % | 30.7 | % | ||||
Non-deductible expenses | -5.8 | % | 14.9 | % | ||||
Change in valuation allowance | -33.7 | % | 15.2 | % | ||||
Effective tax rate | 0 | % | 0 | % | ||||
Significant components of the deferred tax assets and liabilities are as follows: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Non-current deferred tax asset: | ||||||||
Oil and gas costs and long-lived assets | $ | - | $ | 698,339 | ||||
Derivative instruments | 921,771 | 612,139 | ||||||
Net operating loss carry-forward | 9,138,048 | 8,010,770 | ||||||
Valuation allowance | -9,319,900 | -9,321,248 | ||||||
Net deferred tax asset | 739,919 | - | ||||||
Non-current deferred tax liability: | ||||||||
Oil and gas costs and other Black Raven assets | -739,919 | - | ||||||
Net deferred tax asset (liability) | $ | - | $ | - | ||||
At December 31, 2013, we have a net operating loss carry forward of approximately $74 million expiring in 2021-2033 that is subject to certain limitations on an annual basis. A valuation allowance has been established against net operating losses where it is more likely than not that such losses will expire before they are utilized. | ||||||||
The Company incurred a change of control as defined by the Internal Revenue Code. Accordingly, the rules will limit the utilization of the Company’s net operating losses. The limitation is determined by multiplying the value of the stock immediately before the ownership change by the applicable long-term exempt rate. It is estimated that approximately $57.9 million of net operating losses may be subject to an annual limitation. Any unused annual limitation may be carried over to later years. The amount of the limitation may under certain circumstances be increased by the built-in gains in assets held by the Company at the time of the change that are recognized in the five-year period after the change. | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Measurements [Abstract] | ' | ' | ||||||||||||||||||||
Fair Value Measurements | ' | ' | ||||||||||||||||||||
Note 3 – Fair Value Measurements | Note 9 - Fair Value Measurements | |||||||||||||||||||||
We hold certain financial assets which are required to be measured at fair value on a recurring basis in accordance with the Statement of Financial Accounting Standard No. 157, "Fair Value Measurements" ("ASC Topic 820-10"). ASC Topic 820-10 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). ASC Topic 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability. The three levels of the fair value hierarchy under ASC Topic 820-10 are described below: | We hold certain financial assets which are required to be measured at fair value on a recurring basis in accordance with the Statement of Financial Accounting Standard No. 157, “Fair Value Measurements” (“ASC Topic 820-10”). ASC Topic 820-10 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). ASC Topic 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability. The three levels of the fair value hierarchy under ASC Topic 820-10 are described below: | |||||||||||||||||||||
Level 1. Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. We believe our debt approximates fair value at March 31, 2014. | Level 1. Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. We believe receivables, payables and our debt approximate fair value at December 31, 2013. | |||||||||||||||||||||
Level 2. Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. We consider the derivative liability to be Level 2. We determine the fair value of the derivative liability utilizing various inputs, including NYMEX price quotations and contract terms. | Level 2. Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. We consider the derivative liability to be Level 2. We determine the fair value of the derivative liability utilizing various inputs, including NYMEX price quotations and contract terms. | |||||||||||||||||||||
Level 3. Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We consider our marketable securities to be Level 3. | Level 3. Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We consider the marketable securities to be a Level 3. Our derivative instruments consist of fixed price commodity swaps. | |||||||||||||||||||||
Our derivative instruments consist of fixed price commodity swaps. | Fair Value Measurement | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Fair Value Measurement | Crude oil contracts | $ | - | $ | 1,351,350 | $ | - | |||||||||||||||
Level 1 | Level 2 | Level 3 | Marketable securities | $ | - | $ | - | $ | 1,018,573 | |||||||||||||
Crude oil contracts | $ | - | $ | -1,420,640 | $ | - | ||||||||||||||||
Marketable Securities | $ | - | $ | - | $ | 1,018,573 | ||||||||||||||||
Derivative_Instruments
Derivative Instruments | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||
Derivative Instruments [Abstract] | ' | ' | ||||||||||||||||||||||||
Derivative Instruments | ' | ' | ||||||||||||||||||||||||
Note 5 - Derivative Instruments | Note 10 - Derivative Instruments | |||||||||||||||||||||||||
We have entered into certain derivative or physical arrangements with respect to portions of our crude oil production to reduce our sensitivity to volatile commodity prices and/or to meet hedging requirements under our Credit Facility. We believe that these derivative arrangements, although not free of risk, allow us to achieve a more predictable cash flow and to reduce exposure to commodity price fluctuations. However, derivative arrangements limit the benefit of increases in the prices of crude oil. Moreover, our derivative arrangements apply only to a portion of our production. | We have entered into certain derivative or physical arrangements with respect to portions of our crude oil production to reduce our sensitivity to volatile commodity prices and/or to meet hedging requirements under our Credit Facility. We believe that these derivative arrangements, although not free of risk, allow us to achieve a more predictable cash flow and to reduce exposure to commodity price fluctuations. However, derivative arrangements limit the benefit of increases in the prices of crude oil. Moreover, our derivative arrangements apply only to a portion of our production. | |||||||||||||||||||||||||
We have an Intercreditor Agreement in place between the Company; our counterparties, BP Corporation North America, Inc. ("BP") and Cargill Incorporated (“Cargill”) and our agent Texas Capital Bank, N.A., which allows Texas Capital Bank to also act as agent for the counterparties for the purpose of holding and enforcing any liens or security interests resulting from our derivative arrangements. Therefore, we are not required to post additional collateral, including cash. | We have an Intercreditor Agreement in place between the Company; our counterparties, BP Corporation North America, Inc. and Cargill Incorporated and our agent, Texas Capital Bank, N.A., which allows Texas Capital Bank to also act as agent for the counterparties for the purpose of holding and enforcing any liens or security interests resulting from our derivative arrangements. Therefore, we generally are not required to post additional collateral, including cash. | |||||||||||||||||||||||||
The following derivative contracts were in place at March 31, 2014: | The following derivative contracts were in place at December 31, 2013: | |||||||||||||||||||||||||
Term | Monthly Volumes | Price/Bbl | Fair Value | Term | Monthly Volumes(1) | Price/Bbl | Fair Value | |||||||||||||||||||
Crude oil swap | 7/12-12/15 | 1,514 | Bbls | $ | 76.74 | -581,654 | Crude oil swap | 1/13-12/15 | 1,600 Bbls | $ | 76.74 | $ | -662,068 | |||||||||||||
Crude oil swap | 7/11-12/15 | 2,679 | Bbls | $ | 83.7 | -521,438 | Crude oil swap | 7/11-12/15 | 2,625 Bbls | $ | 83.7 | -523,560 | ||||||||||||||
Crude oil swap | 1/14-12/14 | 1,375 | Bbls | $ | 90.25 | -95,729 | Crude oil swap | 1/14-12/14 | 1,369 Bbls | $ | 90.25 | -100,150 | ||||||||||||||
Crude oil swap | 1/14-12/14 | 1,900 | Bbls | $ | 96 | -34,067 | Crude oil swap | 1/14-12/14 | 1,900 Bbls | $ | 96 | -8,208 | ||||||||||||||
Crude oil swap | 1/15-12/15 | 5,800 | Bbls | $ | 88.55 | -111,012 | Crude oil swap | 1/15-12/15 | 5,800 Bbls | $ | 88.55 | -13,804 | ||||||||||||||
Crude oil swap | 9/13-12/14 | 3,000 | Bbls | $ | 95.15 | -76,740 | Crude oil swap | 1/13-12/14 | 3,000 Bbls | $ | 95.15 | -43,560 | ||||||||||||||
$ | -1,420,640 | $ | -1,351,350 | |||||||||||||||||||||||
Monthly volume is the weighted average throughout the period. | (1) Monthly volumes are the weighted average throughout the period. | |||||||||||||||||||||||||
The total fair value is shown as a derivative instrument in both the current and non-current liabilities on the balance sheet. | The total fair value is shown as a derivative instrument in both the current and non-current liabilities on the balance sheet. We recorded losses on the derivative contracts for the years ended December 31, 2013 and 2012 of $740,456 and $871,331 respectively. | |||||||||||||||||||||||||
Net_Income_Per_Common_Share
Net Income Per Common Share | 12 Months Ended |
Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ' |
Net Income Per Common Share | ' |
Note 11 – Net Income Per Common Share | |
The Company reports earnings per share in accordance with ASC Topic 260-10, "Earnings per Share." Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. | |
Potential common shares as of December 31, 2013 include 3,467,000 stock options and 4,779,460 shares from the conversion of preferred shares. Potential common shares as of December 31, 2012 include 250,000 warrants, 1,685,000 stock options and 4,779,460 from the conversion of preferred shares. | |
Accounts_Payable
Accounts Payable | 12 Months Ended |
Dec. 31, 2013 | |
Accounts Payable [Abstract] | ' |
Accounts Payable | ' |
Note 12 - Accounts Payable | |
The Company's current liabilities at December 31, 2013 and 2012 include accounts payable in the amount of $2,424,009 and $2,384,090 respectively. The accounts payable balances for 2012 included $492,134 payable to Husch Blackwell LLP that was in dispute. On December 19, 2013, the Company reached an agreement to settle the dispute regarding this amount, and it was removed from our balance sheet and is not reflected as a liability as of December 31, 2013. | |
Note_Payable
Note Payable | 12 Months Ended |
Dec. 31, 2013 | |
Notes Payable [Abstract] | ' |
Note Payable | ' |
Note 13 - Note Payable | |
On November 30, 2012 the Company purchased two million shares of stock from a shareholder of the Company for $323,035 in cash (including an option payment that we previously made to the selling stakeholder) and a note payable of $825,000 bearing interest at a rate per annum of twenty-four hundredths percent (0.24%). Principal and accrued interest were payable quarterly. This note was retired in 2013. | |
Subsequent_Events
Subsequent Events | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' | ' |
Subsequent Events | ' | ' |
Note 9 - Subsequent Events | Note 14 - Subsequent Events | |
We have reviewed all material events through the date of this report in accordance with ASC 855-10. | On March 14, 2014, Black Raven Energy, Inc. (“Black Raven”), a wholly-owned subsidiary of EnerJex Resources, Inc., a Nevada corporation, entered into a Settlement and Release Agreement (the “Settlement Agreement”) with Atlas Resources, LLC (“Atlas” and, together with Black Raven, individually a “Party” and together the “Parties”) pursuant to which the Parties settled certain disputes regarding the rights and obligations of the Parties under that certain Farmount Agreement dated effective as of July 23, 2010 (the “Farmount Agreement”). | |
Effective as of May 1, 2014, our wholly-owned subsidiary, Working Interest, LLC (“WILLC”), entered into a transaction pursuant to which (i) WILLC agreed to assign to Coal Creek Energy, LLC (“Coal Creek”) all of its working interests in certain oil leases comprising approximately 373 net acres in our Cherokee Project, and (ii) Coal Creek agreed to assign to WILLC all of its working interests in certain oil leases comprising approximately 791 net acres in our Cherokee Project. As a result of this transaction, we significantly consolidated our working interests and increased our net acreage in this project by approximately 5%. The net production associated with the producing leases that we assigned and received was comparable and less than 5 barrels of oil per day in each instance. | Pursuant to the Settlement Agreement, among other matters, the Parties released each other from certain claims and obligations, the Farmount Agreement was terminated, and the Parties entered into a new Gathering Agreement and Contract Operating Agreement under which Atlas shall pay to Black Raven an Overhead Charge of $12,000 per month from December 1, 2013 through November 30, 2015. Unless the Contract Operating Agreement is terminated at the option of either Party after November 30, 2015, from and after December 1, 2015, the Overhead Charge per month shall be the lesser of (a) $12,000, and (b) an amount equal to $0.25 per thousand cubic feet of natural gas produced in each such month from wells that Black Raven operates for Atlas pursuant to the Contract Operating Agreement. | |
Pursuant to the Settlement Agreement, Atlas also agreed to pay Black Raven the sum of $687,938.50 and assign to Black Raven its rights to depth in any zone below the Niobrara formation on approximately 8,360 acres that are held by production in Phillips and Sedgwick Counties in the State of Colorado. In addition, Black Raven agreed to purchase seven non-producing wells from Atlas for the sum $150,000. | ||
Supplemental_Oil_and_gas_Reser
Supplemental Oil and gas Reserve Information (Unaudited) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Supplemental Oil Reserve Information [Abstract] | ' | |||||||
Supplemental Financial Information For Oil and Gas Producing Activities | ' | |||||||
Note 15 - Supplemental Oil and gas Reserve Information (Unaudited) | ||||||||
Results of operations from oil and gas producing activities | ||||||||
The following table shows the results of operations from the Company’s oil and gas producing activities. Results of operations from these activities are determined using historical revenues, production costs and depreciation and depletion. The results of operations from the Company’s oil and gas producing activities below exclude non-oil and gas revenues, general and administrative expenses, interest income and interest expense. Income tax expense was determined by applying the statutory rates to pretax operating results. | ||||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Production revenues | $ | 10,942,270 | $ | 8,496,519 | ||||
Production costs | -4,095,850 | -3,102,321 | ||||||
Depletion and depreciation | -1,691,008 | -1,541,069 | ||||||
Income tax | -1,752,840 | -1,305,513 | ||||||
Results of operations for producing activities | $ | 3,402,572 | $ | 2,547,616 | ||||
Capitalized costs | ||||||||
The following table summarizes the Company’s capitalized costs of oil and gas properties. | ||||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Unevaluated properties not subject to amortization | $ | - | $ | 7,830,828 | ||||
Properties subject to amortization | 71,917,308 | 30,466,951 | ||||||
Capitalized costs | 71,917,308 | 38,297,779 | ||||||
Accumulated depletion | -10,567,905 | -5,094,881 | ||||||
Net capitalized costs | $ | 61,349,403 | $ | 33,202,898 | ||||
Cost incurred in property acquisition, exploration and development activities | ||||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Acquisition of properties | $ | 124,028 | $ | - | ||||
Exploration costs | - | - | ||||||
Development costs | 7,484,419 | 10,247,539 | ||||||
Net capitalized costs | $ | 7,608,447 | $ | 10,247,539 | ||||
Estimated quantities of proved reserves | ||||||||
Our ownership interests in estimated quantities of proved oil and gas reserves and changes in net proved reserves all of which are located in the United States are summarized below. Proved reserves are estimated quantities of oil and gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are those that are expected to be recovered through existing wells with existing equipment and operating methods. Reserves are stated in barrels of oil equivalent. Geological and engineering estimates by MHA Petroleum Consultants, LLC of proved oil and gas reserves at one point in time are highly interpretive, inherently imprecise and subject to ongoing revisions that may be substantial in amount. Although every reasonable effort is made to ensure that the reserve estimates are accurate, by their nature reserve estimates are generally less precise than other estimates presented in connection with financial statement disclosures. | ||||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Proved reserves (BOE): | ||||||||
Beginning | 2,927,000 | 2,714,150 | ||||||
Revisions of previous estimates | 141,600 | -193,059 | ||||||
Purchase of minerals in place | 2,685,517 | - | ||||||
Extension and discoveries | 175,917 | 502,751 | ||||||
Sale of minerals in place | -4,800 | - | ||||||
Sale of Rantoul Partners interest | - | - | ||||||
Production | -120,634 | -96,842 | ||||||
Ending | 5,804,600 | 2,927,000 | ||||||
Proved developed reserves for December 31, 2013 consisted of 83% oil and 17% natural gas and totaled 3,824.9 MBOEs. Proved developed reserves for December 31, 2012 consisted of 100% oil and totaled 1,546.3 MBOEs. Proved undeveloped reserves for December 31, 2013 were 1,979.9 MBOEs. Proved undeveloped reserves at December 31, 2012 were 1,380.8 MBOEs. | ||||||||
Standardized measure of discounted future net cash flows | ||||||||
The standardized measure of discounted future net cash flows from our proved reserves for the periods presented in the financial statements is summarized below. | ||||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Future production revenue | $ | 413,965,250 | $ | 246,535,000 | ||||
Future production costs | -122,957,721 | -69,131,000 | ||||||
Future development costs | -20,017,885 | -11,766,000 | ||||||
Future cash flows before income tax | 270,989,644 | 165,638,000 | ||||||
Future income taxes | -56,111,563 | -33,550,000 | ||||||
Future net cash flows | 214,878,081 | 132,088,000 | ||||||
10% annual discount for estimating of future cash flows | -133,430,425 | -83,215,000 | ||||||
Standardized measure of discounted net cash flows | $ | 81,447,656 | $ | 48,873,000 | ||||
Changes in standardized measure of discounted future net cash flows | ||||||||
The following is a summary of a standardized measure of discounted net future cash flows related to the Company’s proved oil and gas reserves. The information presented is based on a calculation of estimated proved reserves using discounted cash flows based on the 12-month average price for oil and gas calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month prior period. The additions to estimated proved reserves from new discoveries and extensions could vary significantly from year to year. Additionally, the impact of changes to reflect current prices and costs of reserves proved in prior years could also be significant. | ||||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Balance beginning of year | $ | 48,872,561 | $ | 43,646,905 | ||||
Sales, net of production costs | -6,846,420 | -5,394,198 | ||||||
Net change in pricing and production costs | -11,143,669 | 2,870,156 | ||||||
Net change in future estimated development costs | -2,281,285 | -1,001,445 | ||||||
Purchase of minerals in place | 32,687,100 | - | ||||||
Extensions and discoveries | 3,342,922 | 11,274,543 | ||||||
Sale of minerals in place | -37,375 | - | ||||||
Sale of Rantoul Partners interest | - | - | ||||||
Revisions | 1,357,734 | -4,329,483 | ||||||
Accretion of discount | 16,563,800 | 5,324,900 | ||||||
Change in income tax | -1,067,712 | -3,518,817 | ||||||
Balance end of year | $ | 81,447,656 | $ | 48,872,561 | ||||
Summary_of_Accounting_Policies1
Summary of Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Basis Of Presentation | ' |
Basis of Presentation | |
Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. Our operations are considered to fall within a single industry segment, which are the acquisition, development, exploitation and production of crude oil and natural gas properties in the United States. Our consolidated financial statements include our wholly owned subsidiaries and our majority owned subsidiary Rantoul Partners (through December 31, 2012). | |
Rantoul Partners was formed in 2011 by our contribution of certain oil assets totaling $2,282,918 to the partnership for 100% ownership in the entity. The assets were valued at their historic cost which approximated market. In 2011 Rantoul Partners sold 11.75% of the partnership to 2 investors for $2,350,000. 11.75% of the book value of Rantoul Partners after the investment by non-controlling entities was $544,368. The difference between the investment amount ($2,350,000) and the book value bought ($544,368) is accretive to EnerJex in the amount of $1,805,632. This amount was recorded as EnerJex paid in capital. In 2012 an additional $2,650,000 was invested by the two non-controlling owners for an additional 13.25% ownership (bringing their total to 25%). 13.25% of the book value of Rantoul Partners after the additional investments by the non-controlling entities was $1,229,541. The difference between the investment amount ($2,650,000) and the book value bought ($1,229,541) is accretive to EnerJex in the amount of $1,420,459. This amount was recorded as paid in capital. | |
On December 31, 2012 Rantoul Partners was liquidated. At the time of liquidation we owned 75% of Rantoul Partners and 75% of the working interest of Rantoul Partners. We received 75% of the net assets less liabilities of Rantoul Partners that totaled approximately $4,792,380 and a 75% working interest in the oil properties of Rantoul Partners. The non-controlling owners of Rantoul Partners received 25% of the assets less liabilities ($1,597,461) and 25% of the working interest in the properties of Rantoul Partners. | |
All significant intercompany balances and transactions have been eliminated upon consolidation. Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. | |
As discussed further in Note 5, on September 27, 2013, we merged with Black Raven Energy, Inc. (“Black Raven”). The balance sheet accounts of Black Raven, our wholly owned subsidiary, have been consolidated as of September 30, 2013. We did not use the purchase method of accounting due to a common shareholder. Historical costs were used to combine the two entities, accordingly assets and liabilities of Black Raven were not recorded at fair value. The results of operations of Black Raven for the fourth quarter of 2013 are included in the consolidated statement of operations for the year ended December 31, 2013. The results of operations of Black Raven are not included in the consolidated statements of operations at December 31, 2012 or for the year then ended. | |
Nature Of Business | ' |
Nature of Business | |
We are an independent energy company engaged in the business of producing and selling crude oil and natural gas. The crude oil and natural gas is obtained primarily by the acquisition and subsequent exploration and development of mineral leases. Development and exploration may include drilling new exploratory or development wells on these leases. These operations are conducted primarily in Kansas, Colorado, Nebraska and Texas. | |
Use of Estimates in the Preparation of Financial Statements | ' |
Use of Estimates in the Preparation of Financial Statements | |
The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates included in the consolidated financial statements are: (1) oil and gas revenues and reserves; (2) depreciation, depletion and amortization; (3) valuation allowances associated with income taxes (4) accrued assets and liabilities; (5) stock-based compensation; (6) asset retirement obligations and (7) valuation of derivative instruments. Although management believes these estimates are reasonable, changes in facts and circumstances or discovery of new information may result in revised estimates. Actual results could differ from those estimates. | |
Trade Accounts Receivable | ' |
Trade Accounts Receivable | |
Trade accounts receivable are recorded at the invoiced amount and do not bear any interest. We regularly review receivables to insure that the amounts will be collected and establish or adjust an allowance for uncollectible amounts as necessary using the specific identification method. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |
Share-Based Payments | ' |
Share-Based Payments | |
The value we assign to the options and warrants that we issue is based on the fair market value as calculated by the Black-Scholes pricing model. To perform a calculation of the value of our options and warrants, we determine an estimate of the volatility of our stock. We need to estimate volatility because there has not been enough trading of our stock to determine an appropriate measure of volatility. We believe our estimate of volatility is reasonable, and we review the assumptions used to determine this whenever we issue a new equity instruments. | |
Income Taxes | ' |
Income Taxes | |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized when items of income and expense are recognized in the financial statements in different periods than when recognized in the applicable tax return. Deferred tax assets arise when expenses are recognized in the financial statements before the tax returns or when income items are recognized in the tax return prior to the financial statements. Deferred tax assets also arise when operating losses or tax credits are available to offset tax payments due in future years. Deferred tax liabilities arise when income items are recognized in the financial statements before the tax returns or when expenses are recognized in the tax return prior to the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date when the change in the tax rate was enacted. | |
We routinely assess the reliability of our deferred tax assets. If we conclude that it is more likely than not that some portion or all of the deferred tax assets will not be realized under accounting standards, the tax asset is reduced by a valuation allowance. In addition we routinely assess uncertain tax positions, and accrue for tax positions that are not more-likely-than-not to be sustained upon examination by taxing authorities. | |
Uncertain Tax Positions | ' |
Uncertain Tax Positions | |
We follow guidance in Topic 740 of the Codification for its accounting for uncertain tax positions. Topic 740 prescribes guidance for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. To recognize a tax position, we determine whether it is more-likely-than-not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation, based solely on the technical merits of the position. A tax position that meets the more-likely-than-not threshold is measured to determine the amount of benefit to be recognized in the financial statements. The amount of tax benefit recognized with respect to any tax position is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. | |
We have no liability for unrecognized tax benefits recorded as of December 31, 2013 and 2012. Accordingly, there is no amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate and there is no amount of interest or penalties currently recognized in the statement of operations or statement of financial position as of December 31, 2013. In addition, we do not believe that there are any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months. We recognize related interest and penalties as a component of income tax expense. | |
Tax years open for audit by federal tax authorities as of December 31, 2013 are the years ended December 31, 2010, 2011, 2012 and 2013. Tax years ending prior to 2010 are open for audit to the extent that net operating losses generated in those years are being carried forward or utilized in an open year. | |
Fair Value Measurements | ' |
Fair Value Measurements | |
Accounting guidance establishes a single authoritative definition of fair value based upon the assumptions market participants would use when pricing an asset or liability and creates a fair value hierarchy that prioritizes the information used to develop those assumptions. Additional disclosures are required, including disclosures of fair value measurements by level within the fair value hierarchy. We incorporate a credit risk assumption into the measurement of certain assets and liabilities | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
We consider all highly liquid investment instruments purchased with original maturities of three months or less to be cash equivalents for purposes of the consolidated statements of cash flows and other statements. We maintain cash on deposit, which, at times, exceeds federally insured limits. We have not experienced any losses on such accounts and believe we are not exposed to any significant credit risk on cash and equivalents. | |
Revenue Recognition | ' |
Revenue Recognition | |
Oil and gas revenues are recognized net of royalties when production is sold to a purchaser at a fixed or determinable price, when delivery has occurred and title has transferred, and if collection of the revenue is probable. Cash received relating to future revenues is deferred and recognized when all revenue recognition criteria are met. | |
Property and Equipment | ' |
Property and Equipment | |
Property and equipment are recorded at cost. Depreciation is on a straight-line method using the estimated lives of the assets. (3-15 years). Expenditures for maintenance and repairs are charged to expense. | |
Debt | ' |
Debt issue costs | |
Debt issuance costs incurred are capitalized and subsequently amortized over the term of the related debt on the straight-line method of amortization over the estimated life of the debt. | |
Oil and Gas Properties | ' |
Oil & Gas Properties | |
We follow the full cost method of accounting under which all costs associated with property acquisition, exploration and development activities are capitalized. We also capitalize internal costs that can be directly identified with our acquisition, exploration and development activities and do not include costs related to production, general corporate overhead or similar activities. | |
Proved properties are amortized using the units of production method (UOP). Currently we only have operations in the United States of America. The UOP calculation multiplies the percentage of estimated proved reserves produced each quarter by the cost of these reserves. The amortization base in the UOP calculation includes the sum of proved property, net of accumulated depreciation, depletion and amortization (DD&A), estimated future development costs (future costs to access and develop proved reserves) and asset retirement costs, less related salvage value. | |
The cost of unproved properties are excluded from the amortization calculation until it is determined whether or not proved reserves can be assigned to such properties or until development projects are placed into service. Geological and geophysical costs not associated with specific properties are recorded as proved property immediately. Unproved properties are reviewed for impairment quarterly. | |
Under the full-cost-method of accounting, the net book value of oil and gas properties, less deferred income taxes, may not exceed a calculated “ceiling.” The ceiling limitation is (a) the present value of future net revenues computed by applying current prices of oil & gas reserves (with consideration of price changes only to the extent provided by contractual arrangements) to estimated future production of proved oil & gas reserves as of the date of the latest balance sheet presented, less estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves computed using a discount factor of 10 percent and assuming continuation of existing economic conditions plus (b) the cost of properties not being amortized plus (c) the lower of cost or estimated fair value of unproven properties included in the costs being amortized less (d) income tax effects related to differences between book and tax basis of properties. Future cash outflows associated with settling accrued retirement obligations are excluded from the calculation. Estimated future cash flows are calculated using end-of-period costs and an un-weighted arithmetic average of commodity prices in effect on the first day of each of the previous 12 months held flat for the life of the production, except where prices are defined by contractual arrangements. | |
Any excess of the net book value of proved oil and gas properties, less related deferred income taxes, over the ceiling is charged to expense and reflected as additional DD&A in the statement of operations. The ceiling calculation is performed quarterly. During the years ended December 31, 2013 and 2012 there were no impairments resulting from the quarterly ceiling tests. | |
Proceeds from the sale or disposition of oil and gas properties are accounted for as a reduction to capitalized costs unless a significant portion (greater than 25%) of our reserve quantities are sold, in which case a gain or loss is recognized in income. | |
Long-Lived Assets | ' |
Long-Lived Assets | |
Impairment of long-lived assets is recorded when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying value. The carrying value of the assets is then reduced to their estimated fair value that is usually measured based on an estimate of future discounted cash flows. | |
Asset Retirement Obligations | ' |
Asset Retirement Obligations | |
The asset retirement obligation relates to the plug and abandonment costs when our wells are no longer useful. We determine the value of the liability by obtaining quotes for this service and estimate the increase we will face in the future. We then discount the future value based on an intrinsic interest rate that is appropriate for us. If costs rise more than what we have expected there could be additional charges in the future, however, we monitor the costs of the abandoned wells and we will adjust this liability if necessary. | |
Major Purchasers | ' |
Major Purchasers | |
For the years ended December 31, 2013, and 2012 we sold our produced crude oil to Coffeyville Resources, Plains Marketing, L.P., and Sunoco, Inc. on a month-to-month basis. For the year ended December 31, 2013, we sold our produced natural gas to United Energy Trading and Western Operating Company. | |
Marketable Securities Available for sale | ' |
Marketable Securities Available for Sale | |
The Company classifies its marketable equity securities as available-for-sale and they are carried at fair market value, with the unrealized gains and losses included in accumulated other comprehensive income and reported in stockholders’ equity. The difference between cost and market totals $552,589 for the years ended December 31, 2013 and 2012. | |
Net Income Per Common Share | ' |
Net Income Per Common Share | |
Basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the impact of common shares issuable upon exercise of stock options and warrants and conversion of convertible debt that are not deemed to be anti-dilutive. The dilutive effect of the outstanding stock options and warrants is computed using the treasury stock method. | |
For the year ended December 31, 2013, diluted net income per share did not include the effect of 2,592,500 shares of common stock issuable upon the exercise of outstanding stock options as their effect would be anti-dilutive. | |
For the year ended December 31, 2012, diluted net income per share did not include the effect of 192,970 shares of common stock issuable upon the exercise of outstanding stock options as their effect would be anti-dilutive. | |
Reclassifications | ' |
Reclassifications | |
Certain reclassifications have been made to prior periods to conform to current presentations. | |
Recent Accounting Pronouncements Applicable to the Company | ' |
Recent Accounting Pronouncements Applicable to the Company | |
The Company does not believe there are any recently issued, but not yet effective; accounting standards that would have a significant impact on the Company’s financial position or results of operations. | |
Stock_Transactions_and_Options1
Stock Transactions and Options (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ' | ||||||||||||||||||||||||
Summary of Stock Options | ' | ' | ||||||||||||||||||||||||
A summary of stock options is as follows: | A summary of stock options and warrants is as follows: | |||||||||||||||||||||||||
Options | Weighted | Warrants | Weighted | Weighted Ave. | Weighted Ave. | |||||||||||||||||||||
Avg. | Avg. | Options | Exercise Price | Warrants | Exercise Price | |||||||||||||||||||||
Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Outstanding January 1, 2012 | 900,000 | $ | 0.4 | 2,838,330 | $ | 0.9 | ||||||||||||||||||
Outstanding December 31, 2013 | 3,467,000 | $ | 0.62 | - | $ | - | Granted | 785,000 | 0.7 | 250,000 | 0.7 | |||||||||||||||
Granted | 35,500 | 0.7 | - | - | Cancelled | - | - | -2,838,330 | -0.9 | |||||||||||||||||
Cancelled | -22,500 | 0.7 | - | - | Exercised | - | - | - | - | |||||||||||||||||
Exercised | - | - | - | - | Outstanding December 31, 2012 | 1,685,000 | $ | 0.54 | 250,000 | $ | 0.7 | |||||||||||||||
Outstanding March 31, 2014 | 3,480,000 | $ | 0.62 | - | $ | - | Granted | 1,787,000 | 0.7 | 300,000 | 0.7 | |||||||||||||||
Cancelled | -5,000 | -0.7 | -550,000 | -0.7 | ||||||||||||||||||||||
Exercised | - | - | - | - | ||||||||||||||||||||||
Outstanding December 31, 2013 | 3,467,000 | $ | 0.62 | - | $ | - | ||||||||||||||||||||
Asset_Retirement_Obligation_Ta
Asset Retirement Obligation (Tables) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||
Asset Retirement Obligation [Abstract] | ' | ' | ||||||||
Changes in Asset Retirement Obligations | ' | ' | ||||||||
The following shows the changes in asset retirement obligations: | The following shows the changes in asset retirement obligations: | |||||||||
Asset retirement obligations, December 31, 2013 | $ | 2,687,801 | Asset retirement obligations, January 1, 2012 | $ | 908,790 | |||||
Liabilities incurred during the period | 516 | Liabilities incurred during the period | 347,018 | |||||||
Accretion | 63,695 | Liabilities settled during the period | -1,427 | |||||||
Liabilities settled during the quarter | -4,996 | Accretion | 81,770 | |||||||
Asset retirement obligations, March 31, 2014 | $ | 2,747,016 | Asset retirement obligations, December 31, 2012 | 1,336,151 | ||||||
Liabilities acquired | 1,251,511 | |||||||||
Liabilities incurred during the period | 56,825 | |||||||||
Liabilities settled during the year | -96,465 | |||||||||
Accretion | 139,779 | |||||||||
Asset retirement obligations, December 31, 2013 | $ | 2,687,801 | ||||||||
Merger_Tables
Merger (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Merger [Abstract] | ' | |||||||
Business Acquisition, Pro Forma Information | ' | |||||||
The unaudited pro forma consolidated financial information was prepared using the full cost method of accounting for oil and gas activities. | ||||||||
Pro Forma Consolidated Combined Statements of Operations (Unaudited) | ||||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Revenues | $ | 14,362,000 | $ | 15,483,000 | ||||
Income from operations | $ | 2,106,000 | $ | 2,967,200 | ||||
Net income (loss) | $ | -141,700 | $ | 286,200 | ||||
Net income (loss) per common share | $ | - | $ | - | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||
The following table sets forth a reconciliation of the provision for income taxes to the statutory federal rate: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Statutory tax rate | 34 | % | 34 | % | ||||
Derivative instruments | 11.8 | % | -94.8 | % | ||||
Oil and gas costs and long-lived assets | -6.3 | % | 30.7 | % | ||||
Non-deductible expenses | -5.8 | % | 14.9 | % | ||||
Change in valuation allowance | -33.7 | % | 15.2 | % | ||||
Effective tax rate | 0 | % | 0 | % | ||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||
Significant components of the deferred tax assets and liabilities are as follows: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Non-current deferred tax asset: | ||||||||
Oil and gas costs and long-lived assets | $ | - | $ | 698,339 | ||||
Derivative instruments | 921,771 | 612,139 | ||||||
Net operating loss carry-forward | 9,138,048 | 8,010,770 | ||||||
Valuation allowance | -9,319,900 | -9,321,248 | ||||||
Net deferred tax asset | 739,919 | - | ||||||
Non-current deferred tax liability: | ||||||||
Oil and gas costs and other Black Raven assets | -739,919 | - | ||||||
Net deferred tax asset (liability) | $ | - | $ | - | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||
Variable to Fixed Price Commodity Swaps Derivative Instruments | ' | ||||||||||
Our derivative instruments consist of fixed price commodity swaps. | |||||||||||
Fair Value Measurement | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
Crude oil contracts | $ | - | $ | 1,351,350 | $ | - | |||||
Marketable securities | $ | - | $ | - | $ | 1,018,573 | |||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||
Derivative Instruments [Abstract] | ' | ' | ||||||||||||||||||||||||
Derivative Contracts | ' | ' | ||||||||||||||||||||||||
The following derivative contracts were in place at March 31, 2014: | The following derivative contracts were in place at December 31, 2013: | |||||||||||||||||||||||||
Term | Monthly Volumes | Price/Bbl | Fair Value | Term | Monthly Volumes(1) | Price/Bbl | Fair Value | |||||||||||||||||||
Crude oil swap | 7/12-12/15 | 1,514 | Bbls | $ | 76.74 | -581,654 | Crude oil swap | 1/13-12/15 | 1,600 Bbls | $ | 76.74 | $ | -662,068 | |||||||||||||
Crude oil swap | 7/11-12/15 | 2,679 | Bbls | $ | 83.7 | -521,438 | Crude oil swap | 7/11-12/15 | 2,625 Bbls | $ | 83.7 | -523,560 | ||||||||||||||
Crude oil swap | 1/14-12/14 | 1,375 | Bbls | $ | 90.25 | -95,729 | Crude oil swap | 1/14-12/14 | 1,369 Bbls | $ | 90.25 | -100,150 | ||||||||||||||
Crude oil swap | 1/14-12/14 | 1,900 | Bbls | $ | 96 | -34,067 | Crude oil swap | 1/14-12/14 | 1,900 Bbls | $ | 96 | -8,208 | ||||||||||||||
Crude oil swap | 1/15-12/15 | 5,800 | Bbls | $ | 88.55 | -111,012 | Crude oil swap | 1/15-12/15 | 5,800 Bbls | $ | 88.55 | -13,804 | ||||||||||||||
Crude oil swap | 9/13-12/14 | 3,000 | Bbls | $ | 95.15 | -76,740 | Crude oil swap | 1/13-12/14 | 3,000 Bbls | $ | 95.15 | -43,560 | ||||||||||||||
$ | -1,420,640 | $ | -1,351,350 | |||||||||||||||||||||||
(1) Monthly volumes are the weighted average throughout the period. | ||||||||||||||||||||||||||
Supplemental_Oil_and_gas_Reser1
Supplemental Oil and gas Reserve Information (Unaudited) (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Supplemental Oil Reserve Information [Abstract] | ' | |||||||
Results of Operations for Oil and Gas Producing Activities | ' | |||||||
Income tax expense was determined by applying the statutory rates to pretax operating results. | ||||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Production revenues | $ | 10,942,270 | $ | 8,496,519 | ||||
Production costs | -4,095,850 | -3,102,321 | ||||||
Depletion and depreciation | -1,691,008 | -1,541,069 | ||||||
Income tax | -1,752,840 | -1,305,513 | ||||||
Results of operations for producing activities | $ | 3,402,572 | $ | 2,547,616 | ||||
Capitalized Costs Relating to Oil and Gas Producing Activities | ' | |||||||
The following table summarizes the Company’s capitalized costs of oil and gas properties. | ||||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Unevaluated properties not subject to amortization | $ | - | $ | 7,830,828 | ||||
Properties subject to amortization | 71,917,308 | 30,466,951 | ||||||
Capitalized costs | 71,917,308 | 38,297,779 | ||||||
Accumulated depletion | -10,567,905 | -5,094,881 | ||||||
Net capitalized costs | $ | 61,349,403 | $ | 33,202,898 | ||||
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities | ' | |||||||
Cost incurred in property acquisition, exploration and development activities | ||||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Acquisition of properties | $ | 124,028 | $ | - | ||||
Exploration costs | - | - | ||||||
Development costs | 7,484,419 | 10,247,539 | ||||||
Net capitalized costs | $ | 7,608,447 | $ | 10,247,539 | ||||
Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities | ' | |||||||
Although every reasonable effort is made to ensure that the reserve estimates are accurate, by their nature reserve estimates are generally less precise than other estimates presented in connection with financial statement disclosures. | ||||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Proved reserves (BOE): | ||||||||
Beginning | 2,927,000 | 2,714,150 | ||||||
Revisions of previous estimates | 141,600 | -193,059 | ||||||
Purchase of minerals in place | 2,685,517 | - | ||||||
Extension and discoveries | 175,917 | 502,751 | ||||||
Sale of minerals in place | -4,800 | - | ||||||
Sale of Rantoul Partners interest | - | - | ||||||
Production | -120,634 | -96,842 | ||||||
Ending | 5,804,600 | 2,927,000 | ||||||
Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves | ' | |||||||
The standardized measure of discounted future net cash flows from our proved reserves for the periods presented in the financial statements is summarized below. | ||||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Future production revenue | $ | 413,965,250 | $ | 246,535,000 | ||||
Future production costs | -122,957,721 | -69,131,000 | ||||||
Future development costs | -20,017,885 | -11,766,000 | ||||||
Future cash flows before income tax | 270,989,644 | 165,638,000 | ||||||
Future income taxes | -56,111,563 | -33,550,000 | ||||||
Future net cash flows | 214,878,081 | 132,088,000 | ||||||
10% annual discount for estimating of future cash flows | -133,430,425 | -83,215,000 | ||||||
Standardized measure of discounted net cash flows | $ | 81,447,656 | $ | 48,873,000 | ||||
Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows | ' | |||||||
Additionally, the impact of changes to reflect current prices and costs of reserves proved in prior years could also be significant. | ||||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Balance beginning of year | $ | 48,872,561 | $ | 43,646,905 | ||||
Sales, net of production costs | -6,846,420 | -5,394,198 | ||||||
Net change in pricing and production costs | -11,143,669 | 2,870,156 | ||||||
Net change in future estimated development costs | -2,281,285 | -1,001,445 | ||||||
Purchase of minerals in place | 32,687,100 | - | ||||||
Extensions and discoveries | 3,342,922 | 11,274,543 | ||||||
Sale of minerals in place | -37,375 | - | ||||||
Sale of Rantoul Partners interest | - | - | ||||||
Revisions | 1,357,734 | -4,329,483 | ||||||
Accretion of discount | 16,563,800 | 5,324,900 | ||||||
Change in income tax | -1,067,712 | -3,518,817 | ||||||
Balance end of year | $ | 81,447,656 | $ | 48,872,561 | ||||
Summary_of_Accounting_Policies2
Summary of Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |
Oil Properties [Member] | Paid in Capital [Member] | Paid in Capital [Member] | Non controlling Entities [Member] | Rantoul Partners [Member] | Rantoul Partners [Member] | Rantoul Partners [Member] | Rantoul Partners [Member] | Rantoul Partners [Member] | Rantoul Partners [Member] | Rantoul Partners [Member] | Rantoul Partners [Member] | Maximum [Member] | Minimum [Member] | ||||
Working Interest [Member] | Non controlling Entities [Member] | Non controlling Entities [Member] | Non controlling Entities [Member] | Non controlling Entities [Member] | Non controlling Entities [Member] | ||||||||||||
Oil Properties [Member] | Oil Properties [Member] | Working Interest [Member] | |||||||||||||||
Oil Properties [Member] | |||||||||||||||||
Summary Of Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | '3 years |
Contribution of Property | ' | ' | ' | $2,282,918 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | 75.00% | 100.00% | 75.00% | 25.00% | 11.75% | ' | ' | ' | ' | ' |
Equity Method Investment Sold Percentage | ' | ' | ' | ' | ' | ' | 13.25% | ' | 11.75% | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' |
Proceeds from Sale of Interest in Partnership Unit | ' | ' | ' | ' | ' | ' | ' | 2,650,000 | 2,350,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | 69,991,477 | 37,049,272 | 70,086,082 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,229,541 | 544,368 | ' | ' | ' |
Gain On Sale Of Non Controlling Interest In Subsidiary | ' | 0 | ' | ' | 1,420,459 | 1,805,632 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds From Liquidation Of Partnership Unit | ' | ' | ' | ' | ' | ' | ' | 4,792,380 | ' | ' | 1,597,461 | ' | ' | ' | ' | ' | ' |
Proceeds From Liquidation Of Partnership Unit Percentage | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | 75.00% | 25.00% | ' | ' | ' | 25.00% | ' | ' |
Available-for-sale Securities, Total | $552,589 | $552,589 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,592,500 | 192,970 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Transactions_and_Options2
Stock Transactions and Options (Summary of stock options and warrants) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Options | ' | ' | ' |
Options Outstanding | 3,467,000 | 1,685,000 | 900,000 |
Options Granted | 35,500 | 1,787,000 | 785,000 |
Options Cancelled | -22,500 | -5,000 | 0 |
Options Exercised | 0 | 0 | 0 |
Options Outstanding | 3,480,000 | 3,467,000 | 1,685,000 |
Weighted Avg. Exercise Price | ' | ' | ' |
Weighted Avg. Exercise Price Outstanding | $0.62 | $0.54 | $0.40 |
Weighted Avg. Exercise Price Granted | $0.70 | $0.70 | $0.70 |
Weighted Avg. Exercise Price Cancelled | $0.70 | ($0.70) | $0 |
Weighted Avg. Exercise Price Exercised | $0 | $0 | $0 |
Weighted Avg. Exercise Price Outstanding | $0.62 | $0.62 | $0.54 |
Warrants | ' | ' | ' |
Warrants Outstanding | 0 | 250,000 | 2,838,330 |
Warrants Granted | 0 | 300,000 | 250,000 |
Warrants Cancelled | 0 | -550,000 | -2,838,330 |
Warrants Exercised | 0 | 0 | 0 |
Warrants Outstanding | 0 | 0 | 250,000 |
Weighted Avg. Exercise Price | ' | ' | ' |
Weighted Avg. Exercise Price Outstanding | $0 | $0.70 | $0.90 |
Weighted Avg. Exercise Price Granted | $0 | $0.70 | $0.70 |
Weighted Avg. Exercise Price Cancelled | $0 | ($0.70) | ($0.90) |
Weighted Avg. Exercise Price Exercised | $0 | $0 | $0 |
Weighted Avg. Exercise Price Outstanding | $0 | $0 | $0.70 |
Stock_Transactions_and_Options3
Stock Transactions and Options - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Mar. 31, 2011 | Jan. 15, 2014 | Sep. 30, 2013 | Nov. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2011 | Nov. 30, 2012 | Sep. 30, 2007 | Aug. 01, 2002 | Oct. 14, 2008 | Sep. 25, 2000 | 31-May-12 | Dec. 31, 2012 | Mar. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Jan. 03, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 01, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Notes Payable [Member] | 2002-2003 Stock Option Plan | 2002-2003 Stock Option Plan | Stock Incentive Plan [Member] | 2000-2001 Stock Option Plan | Investor Relations Firm [Member] | Investor Relations Firm [Member] | Option and Warrant Transactions [Member] | Option and Warrant Transactions [Member] | Option and Warrant Transactions [Member] | Warrant Transactions [Member] | Warrant Transactions [Member] | Stock Option Plan [Member] | 2013 Stock Incentive Plan [Member] | Officer [Member] | Officer [Member] | Officer [Member] | Officer [Member] | Four Employees [Member] | Director [Member] | Employee [Member] | Employee [Member] | Two Employees [Member] | Thirteen Employees [Member] | Thirteen Employees [Member] | Thirteen Employees [Member] | Series Preferred Stock [Member] | Series Preferred Stock [Member] | |||||||||
Common Stock [Member] | Common Stock [Member] | |||||||||||||||||||||||||||||||||||
Maximum [Member] | Minimum [Member] | |||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Preferred Stock, Shares Issued upon Conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,779,460 | ' |
Preferred stock, par value | ' | ' | ' | ' | $0.00 | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' |
Dividends paid on preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $583,227 | $433,696 |
Warrants Issued During Period Shares Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | 2,838,330 | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Warrants Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 154,676 | 74,164 | 41,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | ' | ' | ' | ' | $0.70 | ' | ' | ' | ' | ' | ' | ' | ' | $0.70 | ' | ' | $0.90 | $0.90 | $0.70 | ' | ' | ' | ' | ' | ' | $0.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82.00% | ' | ' | 71.00% | 42.00% | 77.00% | ' | ' | ' | ' | ' | ' | ' | 67.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.30% | ' | ' | 0.25% | 0.30% | 0.27% | ' | ' | ' | ' | ' | ' | ' | 0.47% | ' | ' | ' | ' | 0.47% | ' | ' | ' | ' |
Warrants Expenses Recognized Based On Number Of Warrants Exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 228,840 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,787,000 | ' | ' | ' | ' |
Outstanding December 31, 2011 | ' | ' | ' | ' | 3,467,000 | 1,685,000 | 3,480,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation Arrangements By Share Based Payment Award Options Amount Recognized As Expenses | ' | ' | ' | ' | 33,267 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76,938 | 76,938 | ' | 18,825 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Based Compensation Arrangements By Share Based Payment Award Options Amount Of Expenses Recognized For Future Amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 153,876 | ' | ' | ' | 148,208 | ' | ' | ' | ' | 342,836 | ' | ' | ' | ' |
Share Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.77 | ' | $0.90 | $0.85 | ' | ' | ' | ' | ' | ' | ' | ' | $0.56 | ' | ' | ' | $0.50 | ' | $0.56 | $0.53 | ' | ' |
Stock Issued During Period, Shares, Issued for Services | ' | 110,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | 40,000 | 90,000 | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Issued for Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 785,000 | ' | ' | ' | ' | ' | ' | ' |
Description Of Securities Purchase Agreement | 'each investor received a stock purchase warrant to purchase 1 share of common stock at a price of $0.90 per share, for each 2 shares of common stock purchased.Each Warrant was exercisable until December 31, 2011. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased and Retired During Period, Shares | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of Treasury Stock | ' | ' | ' | 323,035 | 0 | 226,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable | ' | ' | ' | 825,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 0.24% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $86,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred dividends payable | ' | ' | ' | ' | 456,289 | 174,763 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | ' | ' | ' | ' | 675,000 | 450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Capital Shares Reserved for Future Issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $307,751 | $167,032 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.75 | $0.77 | ' | ' | ' | $0.50 | ' | ' | ' | ' | ' | ' | ' | ' | $0.60 | ' | $0.78 | $0.55 | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest After One Year Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $376,103 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67.00% | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72.00% | ' | ' | ' | ' |
Share based Compensation Arrangement By Share based Payment Award Warrants Forfeited Number Of Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 550,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | 1,250,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Acquisitions | ' | ' | 41,327,516 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset_Retirement_Obligation_Ch
Asset Retirement Obligation (Changes in Asset Retirement Obligations) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation Of Changes In Asset Retirement Obligations [Line Items] | ' | ' | ' | ' |
Asset retirement obligations, beginning balance | $2,687,801 | $1,336,151 | $1,336,151 | $908,790 |
Liabilities incurred during the period | 516 | ' | 56,825 | 347,018 |
Liabilities settled during the period | -4,996 | ' | -96,465 | -1,427 |
Accretion | 63,695 | 28,193 | 139,779 | 93,973 |
Liabilities acquired | ' | ' | 1,251,511 | ' |
Asset retirement obligations, ending balance | $2,747,016 | ' | $2,687,801 | $1,336,151 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 15, 2011 | Aug. 31, 2012 | Aug. 31, 2012 | Nov. 02, 2012 | Apr. 16, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 |
First Amendment | Second Amendment | Second Amendment | Third Amendment | Fourth Amendement | Fifth Amendment | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Long-Term Debt | |||
Rantoul Partners | Minimum | Federal Funds Rate | Federal Funds Rate | Base Rate | Base Rate | Base Rate | Base Rate | Floating Rate | Floating Rate | Floating Rate | Floating Rate | Fifth Amendment | ||||||||
Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | Federal Funds Rate | ||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument interest rate, margin | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 0.50% | 0.00% | 0.00% | 0.75% | 0.75% | 2.25% | 2.25% | 3.00% | 3.00% | 3.30% | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | $50,000,000 | ' | ' | ' | ' | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, current borrowing capacity | 38,000,000 | 38,000,000 | ' | 7,000,000 | ' | 12,150,000 | 19,500,000 | 38,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Increase | ' | ' | ' | ' | 3.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit Facility | 32,000,000 | 31,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.30% |
Other Long-term Debt | $38,159 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $47,255 |
Merger_Pro_Forma_Consolidated_
Merger (Pro Forma Consolidated Statements of Operations) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues | $14,362,000 | $15,483,000 |
Income from operations | 2,106,000 | 2,967,200 |
Net income (loss) | ($141,700) | $286,200 |
Net income (loss) per common share | $0 | $0 |
Merger_Additional_Information_
Merger - Additional Information (Detail) (USD $) | 1 Months Ended |
Sep. 27, 2013 | |
Business Acquisition [Line Items] | ' |
Ownership Percentage Held By Acquired Company After Merger | 38.00% |
Ownership Percentage Held By Acquirer Company After Merger | 62.00% |
Black Raven Energy, Inc. [Member] | ' |
Business Acquisition [Line Items] | ' |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 41,327,516 |
Payments to Acquire Businesses, Gross | $207,067 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Operating Leases, Rent Expense | $51,000 | $29,000 | $185,000 | $113,000 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 120,000 | ' | 132,000 | ' |
Operating Leases, Future Minimum Payments, Due in Two Years | 154,000 | ' | 72,000 | ' |
Operating Leases, Future Minimum Payments, Due in Three Years | 147,000 | ' | 62,000 | ' |
Operating Leases, Future Minimum Payments, Due in Four Years | 145,000 | ' | 58,000 | ' |
Operating Leases, Future Minimum Payments, Due in Five Years | 90,000 | ' | ' | ' |
Operating Leases, Rent Expense, Sublease Rentals | ' | ' | 37,000 | 50,000 |
Operating Leases, Future Minimum Payments, Due Thereafter | 77,000 | ' | ' | ' |
Texas Railroad Commission [Member] | ' | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' |
Letters of Credit Outstanding, Amount | $50,000 | ' | $50,000 | ' |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of The Provision For Income Taxes) (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Provision For Income Taxes Reconciliation [Line Items] | ' | ' |
Statutory tax rate | 34.00% | 34.00% |
Derivative instruments | 11.80% | -94.80% |
Oil and gas costs and long-lived assets | -6.30% | 30.70% |
Non-deductible expenses | -5.80% | 14.90% |
Change in valuation allowance | -33.70% | 15.20% |
Effective tax rate | 0.00% | 0.00% |
Income_Taxes_Components_of_The
Income Taxes (Components of The Deferred Tax Assets and Liabilities) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Non-current deferred tax asset: | ' | ' |
Oil and gas costs and long-lived assets | $0 | $698,339 |
Derivative instruments | 921,771 | 612,139 |
Net operating loss carry-forward | 9,138,048 | 8,010,770 |
Valuation allowance | -9,319,900 | -9,321,248 |
Net deferred tax asset | 739,919 | 0 |
Non-current deferred tax liability: | ' | ' |
Oil and gas costs and other Black Raven assets | -739,919 | 0 |
Net deferred tax asset (liability) | $0 | $0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Income Taxes Additional Information [Line Items] | ' |
Operating Loss Carryforwards | $74 |
Operating Loss Carryforwards, Expiration Date | '2021-2033 |
Limitations On Use Operating Loss Carryforwards | $57.90 |
Fair_Value_Measurements_Variab
Fair Value Measurements (Variable to Fixed Price Commodity Swaps Derivative Instruments) (Detail) (Fair Value, Measurements, Recurring, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Crude oil contracts | $0 | $0 |
Marketable Securities | 0 | 0 |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Crude oil contracts | -1,420,640 | 1,351,350 |
Marketable Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Crude oil contracts | 0 | 0 |
Marketable Securities | $1,018,573 | $1,018,573 |
Derivative_Instruments_Derivat
Derivative Instruments (Derivative Contracts) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | ||||||
bbl | bbl | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | Crude Oil Swap | ||||||||
Derivative Instrument 1 | Derivative Instrument 1 | Derivative Instrument 2 | Derivative Instrument 2 | Derivative Instrument 3 | Derivative Instrument 3 | Derivative Instrument 4 | Derivative Instrument 4 | Derivative Instrument 5 | Derivative Instrument 5 | Derivative Instrument 6 | Derivative Instrument 6 | Minimum | Minimum | Minimum | Minimum | Minimum | Minimum | Minimum | Minimum | Minimum | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | ||||||||||
bbl | bbl | bbl | bbl | bbl | bbl | bbl | bbl | bbl | bbl | bbl | bbl | Derivative Instrument 1 | Derivative Instrument 1 | Derivative Instrument 2 | Derivative Instrument 2 | Derivative Instrument 3 | Derivative Instrument 3 | Derivative Instrument 4 | Derivative Instrument 4 | Derivative Instrument 5 | Derivative Instrument 5 | Derivative Instrument 6 | Derivative Instrument 6 | Derivative Instrument 1 | Derivative Instrument 1 | Derivative Instrument 2 | Derivative Instrument 2 | Derivative Instrument 3 | Derivative Instrument 3 | Derivative Instrument 4 | Derivative Instrument 4 | Derivative Instrument 5 | Derivative Instrument 5 | Derivative Instrument 6 | Derivative Instrument 6 | ||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2012-07 | '2013-01 | '2011-07 | '2011-07 | '2014-01 | '2014-01 | '2014-01 | '2014-01 | '2015-01 | '2015-01 | '2013-09 | '2013-01 | '2015-12 | '2015-12 | '2015-12 | '2015-12 | '2014-12 | '2014-12 | '2014-12 | '2014-12 | '2015-12 | '2015-12 | '2014-12 | '2014-12 | ||||||
Monthly Volumes Bbls | ' | 3,824.90 | 1,546.30 | 1,514 | 1,600 | [1] | 2,679 | 2,625 | [1] | 1,375 | 1,369 | [1] | 1,900 | 1,900 | [1] | 5,800 | 5,800 | [1] | 3,000 | 3,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price/Bbl | ' | ' | ' | 76.74 | 76.74 | 83.7 | 83.7 | 90.25 | 90.25 | 96 | 96 | 88.55 | 88.55 | 95.15 | 95.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Fair Value | ($1,420,640) | ($1,351,350) | ' | ($581,654) | ($662,068) | ($521,438) | ($523,560) | ($95,729) | ($100,150) | ($34,067) | ($8,208) | ($111,012) | ($13,804) | ($76,740) | ($43,560) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
[1] | Monthly volumes are the weighted average throughout the period. |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative Instruments Additional Information [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives | ($404,353) | ($239,941) | ($740,456) | $55,708 |
Net_Income_Per_Common_Share_Ad
Net Income Per Common Share - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Line Items] | ' | ' |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 3,467,000 | 1,685,000 |
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | 4,779,460 | 4,779,460 |
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | ' | 250,000 |
Accounts_Payable_Additional_In
Accounts Payable - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts Payable Additional Information [Line Items] | ' | ' | ' |
Accounts payable | $2,505,317 | $2,424,009 | $2,384,090 |
Accounts Payable To Former Attorney | ' | ' | $492,134 |
Note_Payable_Additional_Inform
Note Payable - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
Share data in Millions, unless otherwise specified | Nov. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Repurchased and Retired During Period, Shares | 2 | ' | ' |
Purchase of Treasury Stock | $323,035 | $0 | $226,000 |
Notes Payable | $825,000 | ' | ' |
Notes Payable [Member] | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 0.24% | ' | ' |
Equity_Transactions_Additional
Equity Transactions - Additional Information (Detail) | 1 Months Ended | |
Jan. 15, 2014 | Mar. 17, 2014 | |
Consultant [Member] | ||
Stock Issued During Period, Shares, Issued for Services | 110,000 | 143,922 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2014 | Mar. 14, 2014 | Mar. 14, 2014 | |
Subsequent Event [Member] | Black Raven | ||
Natural Gas, Per Thousand Cubic Feet [Member] | Subsequent Event [Member] | ||
acre | |||
Subsequent Event [Line Items] | ' | ' | ' |
Litigation Settlement, Amount | ' | ' | $687,938.50 |
Development Wells Drilled Depth Net Nonproductive | ' | ' | 8,360 |
Development Wells, Net Nonproductive | ' | ' | 7 |
Payments to Acquire Productive Assets | ' | ' | 150,000 |
Cost of Goods and Services Sold, Overhead | ' | ' | 12,000 |
Gas Gathering, Transportation, Marketing and Processing Costs | ' | $0.25 | ' |
Percentage Of Increase Of Net Acreage Gas And Oil Area | 5.00% | ' | ' |
Supplemental_Oil_and_gas_Reser2
Supplemental Oil and gas Reserve Information (Unaudited) (Results of Operations From Oil and gas Producing Activities) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Results Of Operations Income Before Income Taxes [Line Items] | ' | ' |
Production revenues | $10,942,270 | $8,496,519 |
Production costs | -4,095,850 | -3,102,321 |
Depletion and depreciation | -1,691,008 | -1,541,069 |
Income tax | -1,752,840 | -1,305,513 |
Results of operations for producing activities | $3,402,572 | $2,547,616 |
Supplemental_Oil_and_gas_Reser3
Supplemental Oil and gas Reserve Information (Unaudited) (Summary of Capitalized Costs of Oil and gas Properties) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ' | ' |
Unevaluated properties not subject to amortization | $0 | $7,830,828 |
Properties subject to amortization | 71,917,308 | 30,466,951 |
Capitalized costs | 71,917,308 | 38,297,779 |
Accumulated depletion | -10,567,905 | -5,094,881 |
Net capitalized costs | $61,349,403 | $33,202,898 |
Supplemental_Oil_and_gas_Reser4
Supplemental Oil and gas Reserve Information (Unaudited) (Cost Incurred in Property Acquisition, Exploration and Development Activities) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ' | ' |
Acquisition of properties | $124,028 | $0 |
Exploration costs | 0 | 0 |
Development costs | 7,484,419 | 10,247,539 |
Net capitalized costs | $7,608,447 | $10,247,539 |
Supplemental_Oil_and_gas_Reser5
Supplemental Oil and gas Reserve Information (Unaudited) (Estimated Quantities of Proved Reserves) (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
bbl | bbl | |
Proved reserves (BOE): | ' | ' |
Beginning | 2,927,000 | 2,714,150 |
Revisions of previous estimates | 141,600 | -193,059 |
Purchase of minerals in place | 2,685,517 | 0 |
Extension and discoveries | 175,917 | 502,751 |
Sale of minerals in place | -4,800 | 0 |
Sale of Rantoul Partners interest | 0 | 0 |
Production | -120,634 | -96,842 |
Ending | 5,804,600 | 2,927,000 |
Supplemental_Oil_and_gas_Reser6
Supplemental Oil and gas Reserve Information (Unaudited)(Standardized Measure of Discounted Future Net Cash Flows) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ' | ' |
Future production revenue | $413,965,250 | $246,535,000 |
Future production costs | -122,957,721 | -69,131,000 |
Future development costs | -20,017,885 | -11,766,000 |
Future cash flows before income tax | 270,989,644 | 165,638,000 |
Future income taxes | -56,111,563 | -33,550,000 |
Future net cash flows | 214,878,081 | 132,088,000 |
10% annual discount for estimating of future cash flows | -133,430,425 | -83,215,000 |
Standardized measure of discounted net cash flows | $81,447,656 | $48,873,000 |
Supplemental_Oil_and_gas_Reser7
Supplemental Oil and gas Reserve Information (Unaudited) (Changes in Standardized Measure of Discounted Future Net Cash Flows) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | ' | ' |
Balance beginning of year | $48,872,561 | $43,646,905 |
Sales, net of production costs | -6,846,420 | -5,394,198 |
Net change in pricing and production costs | -11,143,669 | 2,870,156 |
Net change in future estimated development costs | -2,281,285 | -1,001,445 |
Purchase of minerals in place | 32,687,100 | 0 |
Extensions and discoveries | 3,342,922 | 11,274,543 |
Sale of minerals in place | -37,375 | 0 |
Sale of Rantoul Partners interest | 0 | 0 |
Revisions | 1,357,734 | -4,329,483 |
Accretion of discount | 16,563,800 | 5,324,900 |
Change in income tax | -1,067,712 | -3,518,817 |
Balance end of year | $81,447,656 | $48,872,561 |
Supplemental_Oil_and_gas_Reser8
Supplemental Oil and gas Reserve Information (Unaudited) - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
bbl | bbl | |
Reserve Quantities [Line Items] | ' | ' |
Proved undeveloped reserves | 1,979.90 | 1,380.80 |
Proved Developed Reserves | 3,824.90 | 1,546.30 |
Percentage of oil for proved developed reserves | 83.00% | 100.00% |
Percentage Of Natural Gas For Proved Developed Reserves | 17.00% | ' |