Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2015 | Jun. 30, 2014 |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ENRJ | ||
Entity Common Stock, Shares Outstanding | 8,406,661 | ||
Entity Registrant Name | EnerJex Resources, Inc. | ||
Entity Central Index Key | 8504 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $22 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current Assets: | ||
Cash | $805,524 | $1,079,356 |
Restricted Cash | 0 | 228,840 |
Accounts receivable | 1,278,509 | 2,461,746 |
Derivative receivable | 3,736,005 | 0 |
Inventory | 248,218 | 238,794 |
Marketable securities | 1,018,573 | 1,018,573 |
Deposits and prepaid expenses | 324,339 | 373,994 |
Total current assets | 7,411,168 | 5,401,303 |
Non-current assets: | ||
Fixed assets, net of accumulated depreciation of $1,945,607 and $1,785,401 | 2,404,703 | 2,406,591 |
Oil & gas properties using full cost accounting, net of accumulated DD&A of $13,827,347 and $10,567,906 | 64,263,272 | 61,349,403 |
Derivative receivable | 985,746 | 0 |
Other non-current assets | 993,207 | 834,180 |
Total non-current assets | 68,646,928 | 64,590,174 |
Total assets | 76,058,096 | 69,991,477 |
Current liabilities: | ||
Accounts payable | 3,042,835 | 2,424,009 |
Accrued liabilities | 1,096,521 | 3,070,461 |
Derivative liability | 0 | 1,011,708 |
Total current liabilities | 4,139,356 | 6,506,178 |
Non-Current Liabilities: | ||
Asset retirement obligation | 2,906,093 | 2,687,801 |
Derivative liability | 339,642 | |
Long-term debt | 23,011,660 | 31,547,255 |
Total non-current liabilities | 25,917,753 | 34,574,698 |
Total liabilities | 30,057,109 | 41,080,876 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Preferred Stock Value | 0 | 4,780 |
Common stock, $0.001 par value, 250,000,000 shares authorized; shares issued and outstanding - 7,643,114 at December 31, 2014 and 7,307,158 at December 31, 2013 | 7,643 | 7,307 |
Accumulated other comprehensive income | -552,589 | -552,589 |
Paid in capital | 63,825,998 | 49,913,509 |
Retained (deficit) | -17,280,817 | -20,462,406 |
Total stockholders' equity | 46,000,987 | 28,910,601 |
Total liabilities and stockholders' equity | 76,058,096 | 69,991,477 |
10% Series A Cumulative Redeemable Preferred Stock [Member] | ||
Stockholders' Equity: | ||
Preferred Stock Value | $752 | $0 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Preferred stock, par value | $0.00 | |
Preferred stock, shares authorized | 25,000,000 | |
Preferred stock, shares issued | 4,779,460 | |
Preferred Stock Shares Outstanding | 4,779,460 | |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 7,643,114 | 7,307,158 |
Common stock, shares outstanding | 7,643,114 | 7,307,158 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $1,945,607 | $1,785,401 |
Properties using full-cost accounting | $13,827,347 | $10,567,906 |
10% Series A Cumulative Redeemable Preferred Stock [Member] | ||
Preferred stock, par value | $0.00 | |
Preferred stock, shares authorized | 25,000,000 | |
Preferred stock, shares issued | 751,815 | |
Preferred Stock Shares Outstanding | 751,815 | |
Preferred Stock, Dividend Rate, Percentage | 10.00% |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Crude oil revenues | $13,257,608 | $10,824,575 |
Natural gas revenues | 1,035,759 | 117,695 |
Total revenues | 14,293,367 | 10,942,270 |
Expenses: | ||
Direct operating costs | 6,762,248 | 4,095,850 |
Depreciation, depletion and amortization | 3,549,245 | 1,856,660 |
Professional fees | 987,229 | 1,071,740 |
Salaries | 1,479,688 | 1,432,081 |
Administrative expense | 790,572 | 798,457 |
Total expenses | 13,568,982 | 9,254,788 |
Income from operations | 724,385 | 1,687,482 |
Other income (expense): | ||
Interest expense | -1,305,194 | -772,471 |
Gain (loss) on derivatives | 4,993,262 | -740,456 |
Other income | 161,171 | 1,115,898 |
Total other income (expense) | 3,849,239 | -397,029 |
Income before provision for income taxes | 4,573,624 | 1,290,453 |
Provision for income taxes | 0 | 0 |
Net income | 4,573,624 | 1,290,453 |
Net income | 4,573,624 | 1,290,453 |
Preferred dividends | -1,392,035 | -1,039,516 |
Net income (loss) attributable to common stockholders | $3,181,589 | $250,937 |
Net income (loss) per common share basic and diluted | $0.42 | $0.04 |
Weighted Average Shares | 7,492,007 | 5,596,062 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | 10% Series A Preferred Stock [Member] | Preferred Stock [Member] | Common Stock [Member] | Accumulated Other Comprehensive Income [Member] | Paid-in Capital [Member] | Retained Deficit [Member] |
Balance at Dec. 31, 2012 | $21,613,531 | $4,780 | $4,546 | ($552,589) | $42,870,137 | ($20,713,343) | |
Balance (in shares) at Dec. 31, 2012 | 4,779,460 | 4,545,990 | |||||
Stock Issued for Services (in shares) | 6,000 | ||||||
Stock Issued for Services | 45,000 | 6 | 44,994 | ||||
Issuance of Stock Options | 72,434 | 72,434 | |||||
Warrants issued for services | 40,790 | 40,790 | |||||
Stock issued for shares of Black Raven Energy, Inc.(in shares) | 2,755,168 | ||||||
Stock issued for shares of Black Raven Energy, Inc. | 6,887,909 | 2,755 | 6,885,154 | ||||
Dividends Paid on Preferred Stock | -1,039,516 | -1,039,516 | |||||
Net Income for the Year | 1,290,453 | 1,290,453 | |||||
Balance at Dec. 31, 2013 | 28,910,601 | 4,780 | 7,307 | -552,589 | 49,913,509 | -20,462,406 | |
Balance (in shares) at Dec. 31, 2013 | 4,779,460 | 7,307,158 | |||||
Stock Issued for Services (in shares) | 17,332 | ||||||
Stock Issued for Services | 234,654 | 17 | 234,637 | ||||
Issuance of Stock Options | 326,579 | 326,579 | |||||
Issuance of 10% series A Cumulative Redeemable Perpetual Preferred Stock and retirement of legacy preferred stock (in shares) | 751,815 | -4,779,460 | 318,624 | ||||
Issuance of 10% series A Cumulative Redeemable Perpetual Preferred Stock and retirement of legacy preferred stock | 13,347,564 | 752 | -4,780 | 319 | 13,351,273 | ||
Dividends Paid on Preferred Stock | -1,392,035 | -1,392,035 | |||||
Net Income for the Year | 4,573,624 | 4,573,624 | |||||
Balance at Dec. 31, 2014 | $46,000,987 | $752 | $0 | $7,643 | ($552,589) | $63,825,998 | ($17,280,817) |
Balance (in shares) at Dec. 31, 2014 | 751,815 | 0 | 7,643,114 |
Consolidated_Statement_of_Stoc1
Consolidated Statement of Stockholders' Equity (Parenthetical) (10% Series A Preferred Stock [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
10% Series A Preferred Stock [Member] | |
Preferred Stock, Dividend Rate, Percentage | 10.00% |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | ||
Net Income | $4,573,624 | $1,290,453 |
Depreciation, depletion and amortization | 3,549,245 | 1,856,660 |
Stock, options and warrants issued for services | 638,171 | 255,977 |
Accretion of asset retirement obligation | 255,836 | 139,779 |
Settlement of asset retirement obligations | -102,930 | -36,758 |
(Gain) on derivatives | -6,073,101 | -448,945 |
Loss on sale of fixed assets | 9,738 | 5,833 |
Adjustments to reconcile net income to cash from operating activities: | ||
Accounts receivable | 1,183,237 | -361,314 |
Inventory | -9,424 | 34,336 |
Deposits and prepaid expenses | -27,282 | 235,471 |
Accounts payable | 618,826 | -545,112 |
Accrued liabilities | -1,973,941 | 686,441 |
Cash flows from operating activities | 2,641,999 | 3,112,821 |
Cash flows from investing activities | ||
Purchase of fixed assets | -298,903 | -184,794 |
Additions to oil and gas properties | -7,095,865 | -7,672,492 |
Sale of oil and gas properties | 987,939 | 454,975 |
Settlements of asset retirement obligations | 0 | -18,910 |
Proceeds from sale of fixed assets | 1,250 | 12,755 |
Net cash acquired from Black Raven | 0 | 656,693 |
Cash flows from investing activities | -6,405,579 | -6,751,773 |
Cash flows from financing activities | ||
Proceeds from sale of preferred stock | 13,347,564 | 0 |
Repayments of long-term debt | -14,035,595 | -9,096 |
Borrowings on long-term debt | 5,500,000 | 6,000,000 |
Dividends paid on preferred stock | -1,392,035 | -757,992 |
Repayments of notes payable | 0 | -825,000 |
Deferred financing costs | -159,026 | -228,258 |
Cash flows from financing activities | 3,260,908 | 4,179,654 |
Increase (decrease) in cash and cash equivalents | -502,672 | 540,702 |
Cash and cash equivalents, beginning | 1,308,196 | 767,494 |
Cash and cash equivalents, end | 805,524 | 1,308,196 |
Supplemental disclosures: | ||
Interest paid | 741,757 | 375,932 |
Income taxes paid | 0 | 0 |
Non-cash transactions: | ||
Share-based payments issued for services | 638,171 | 216,810 |
Preferred dividends payable | $0 | $456,289 |
Summary_of_Accounting_Policies
Summary of Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of 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. | |
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. | |
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 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, 2014 and 2013. 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, 2014. 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, 2014 are the years ended December 31, 2011, 2012, 2013 and 2014. Tax years ending prior to 2011 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. | |
Fixed Assets | |
Property and equipment are recorded at cost. At December 31, 2014, Fixed Assets consisted of vehicles $967,483, furniture and equipment of $608,061, building and leasehold improvements of $23,069 and gathering and compression systems of $2,751,697, as well as accumulated depreciation of vehicles of $697,042, accumulated depreciation of furniture and fixtures of $494,333, accumulated depreciation of building and leasehold improvements of $9,386 and accumulated depreciation of gathering and compression systems of $744,846. At December 31, 2013, Fixed Assets consisted of vehicles of $900,952, furniture and equipment of $672,105, building and leasehold improvements of $19,095 and gathering and compression systems of $2,599,841 as well as accumulated depreciation of vehicles $693,093, accumulated depreciation of furniture and fixtures of $118,642, accumulated depreciation of building and leasehold improvements of $4,985 and accumulated depreciation of gathering and compression systems of $968,682. | |
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, 2014 and 2013 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, 2014, and 2013 we sold our produced crude oil to Coffeyville Resources, Plains Marketing, L.P., and Sunoco, Inc. on a month-to-month basis and 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, 2014 and 2013. | |
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, 2014, diluted net income per share did not include the effect of 231,332 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, 2013, diluted net income per share did not include the effect of 172,833 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. | |
Equity_Transactions
Equity Transactions | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Equity [Abstract] | ||||||||||||||
Equity Transactions | Note 2 - Equity Transactions | |||||||||||||
Stock transactions in fiscal year ended December 31, 2014 | ||||||||||||||
In 2014, 7,707 shares were issued to employees of the Company as compensation. The value of those shares was $59,298. Also in 2014, 9,625 shares were issued and 17,500 shares are owed (but not issued) for professional services rendered on behalf of the Company. The value of those share was $175,356. | ||||||||||||||
Effective after the close of trading in EnerJex common stock on May 30, 2014, the Company affected a 1-for-15 reverse stock split, by which each share of EnerJex common stock was reclassified, and changed into 1/15th of a fully paid and non-assessable share of common stock. In lieu of fractions of a share, the Company paid to holders of fractions of a share cash equal to $11.25 per share, which was the minimum value designated in the amended and restated certificate of designations affecting the reverse stock split. | ||||||||||||||
On June 16, 2014, we adopted the Amended and Restated Certificate of Designation modifying the terms of our then-existing Series A preferred stock. Concurrently with filing of that Amended and Restated Certificate of Designation, the holders of our existing Series A preferred stock exchanged each outstanding share of such existing Series A preferred stock for (i) a number of shares of our common stock into which such Series A preferred stock was then convertible immediately prior to the exchange (318,630 shares in the aggregate), and (ii) 112,658 shares of Series A preferred stock which was equal to the quotient determined by dividing (x) that portion of the holder's original Series A preferred stock purchase price that had not yet been paid in dividends, by (y) $23.75. | ||||||||||||||
On June 20, 2014, we closed an underwritten initial public offering of 639,157 shares of our Series A preferred stock at a purchase price of $23.75 per share for gross proceeds of $15,179,938. Costs associated with the offering were $1,832,374 for net proceeds of $13,347,564. | ||||||||||||||
Effective September 30, 2014 the Board of Directors approved the retirement of 383,333 shares in held in the Treasury. Accordingly $2,551,000 was reclassified to Paid-in capital. | ||||||||||||||
Stock transactions in fiscal year ended December 31, 2013 | ||||||||||||||
We issued 6,000 shares at $7.50 per share to employees as compensation. | ||||||||||||||
On September 30, 2013 the Company issued 2,755,168 shares to Black Raven Energy, Inc. shareholders in exchange for their shares of Black Raven Energy, Inc. common shares. (See Note 5). | ||||||||||||||
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. | ||||||||||||||
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 26,666 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 66,666. 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 to 83,333, and (iii) add restricted stock as an eligible award that can be granted under the Stock Incentive Plan. | ||||||||||||||
On December 31, 2010 we granted 60,000 options that vest ratably over a 48 month period and are exercisable at $6.00 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 each of the years ended December 31, 2014 and 2013 was $76,938. | ||||||||||||||
2013 Stock Incentive Plan | ||||||||||||||
The Board and stockholders approved the adoption of the 2013 Stock Incentive Plan (“Plan”). The Plan reserves 333,300 shares of our common stock for the granting of options and issuance of restricted shares to our employees, officers, directors, and consultants. The Plan increases reserved shares annually based on plan provisions. | ||||||||||||||
In 2013, we granted 119,133 options to employees. 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 calculated using the Black-Scholes model was $675,344 using the following weighted average assumptions: exercise price of $10.50 per share; common stock price of ranging from $7.95 to $8.40 per share; volatility ranging from 67% to 72%; term of three years; dividend yield of 0%; interest rate of .47%. | ||||||||||||||
In 2014, we granted 2,367 options to employees. 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 calculated using the Black-Scholes model was $12,178 using the following weighted average assumptions: exercise price of $10.50 per share; common stock price of $7.95 per share; volatility of 72 %; term of three years; dividend yield of 0 %; interest rate of .47%. | ||||||||||||||
We expensed $326,579 and $72,434 for the years ended December 31, 2014 and December 31, 2013 respectively for options granted. We also expensed $76,938 in each of the years ended December 31, 2014 and December 31, 2013 for options recorded as prepaid assets. | ||||||||||||||
Warrant Transactions | ||||||||||||||
On May 31, 2012, we granted 16,667 Warrants to a consultant for services to be performed over the next two years. Each warrant was 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. On January 3, 2013, we granted 20,000 Warrants to a consultant for 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. In the fourth quarter of 2013 all 36,667 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, 2013 | 112,333 | $ | 8.1 | 16,667 | $ | 10.5 | ||||||||
Granted | 119,133 | 10.5 | 20,000 | 10.5 | ||||||||||
Cancelled | -333 | -10.5 | -36,667 | -10.5 | ||||||||||
Exercised | - | - | - | - | ||||||||||
Outstanding December 31, 2013 | 231,133 | $ | 9.36 | - | $ | - | ||||||||
Granted | 2,367 | 10.5 | - | - | ||||||||||
Cancelled | -2,168 | -10.5 | - | - | ||||||||||
Exercised | - | - | - | - | ||||||||||
Outstanding December 31, 2014 | 231,332 | $ | 9.33 | - | $ | - | ||||||||
The number of options that were vested at December 31, 2014 was 150,843. The number of options that were not vested at December 31, 2014 was 80,489. | ||||||||||||||
Asset_Retirement_Obligation
Asset Retirement Obligation | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Asset Retirement Obligation [Abstract] | |||||
Asset Retirement Obligation | Note 3 - Asset Retirement Obligation | ||||
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, January 1, 2013 | $ | 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 | |||
Liabilities incurred during the period | 65,385 | ||||
Liabilities settled during the year | -102,929 | ||||
Accretion | 255,836 | ||||
Asset retirement obligations, December 31, 2014 | $ | 2,906,093 | |||
LongTerm_Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2014 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Note 4 - Long-Term Debt |
Senior Secured Credit Facility | |
On October 3, 2011, the Company, 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). | |
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 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 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 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 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) the addition of Iberia Bank as a participant in our credit facility, and (ii) a technical correction to our covenant calculations. | |
On May 22, 2014, we entered into a Seventh Amendment to the Amended and Restated Credit Agreement. The Seventh Amendment reflects the Bank’s consent to our issuance of up to 850,000 shares of our 10% Series A Cumulative Redeemable Perpetual Preferred Stock. | |
On August 15, 2014 we entered into an Eighth Amendment to the Amended and Restated Credit Agreement. The Eighth Amendment reflects the following changes: (i) the borrowing base was increased from $38 million to $40 million, and (ii) the maturity of the facility was extended by three years to October 3, 2018. | |
Our Current borrowing base is $ 40 million, of which we had borrowed $ 23.0 million as of December 31, 2014. We intend to conduct an additional borrowing base review in the third quarter of 2015. For the year ended December 31, 2014 the interest rate was 3.3 %. This facility expires on October 3, 2018. | |
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, 2014 was $11,660. | |
Merger
Merger | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
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 period ended December 31, 2013 with the financial information of Black Raven for the twelve months ended December 31, 2013. | |||||
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, 2013. 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 | |||||
Revenues | $ | 14,362,000 | |||
Income from operations | $ | 2,106,000 | |||
Net income (loss) | $ | -141,700 | |||
Net income (loss) per common share | $ | - | |||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
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 | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7 - Commitments and Contingencies |
Rent expense for the years ended December 31, 2014 and 2013 was approximately $159,000 and $185,000 respectively. Future non-cancellable minimum lease payments are approximately $150,000 for 2015, $147,000 for 2016, $145,000 for 2017, $91,000 for 2018 and $77,000 for 2019. We received rental income from sub rentals of $37,000 in 2013. | |
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, 2014, we have no reserve for environmental remediation and are not aware of any environmental claims. | |
As of December 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. 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. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Tax | Note 8 - Income Taxes | ||||||||
There was no current or deferred income tax expense (benefit) for the years ended December 31, 2014 and December 31, 2013. | |||||||||
The following table sets forth a reconciliation of the provision for income taxes to the statutory federal rate: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Statutory tax rate | 35 | % | 34 | % | |||||
State tax rate, net of federal tax | 1.37 | % | 1.37 | % | |||||
Other permanent items | 0.05 | % | 0.59 | % | |||||
Change in valuation allowance | -36.42 | % | -35.96 | % | |||||
Effective tax rate | 0 | % | 0 | % | |||||
Significant components of the deferred tax assets and liabilities are as follows: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Non-current deferred tax asset: | |||||||||
Oil and gas costs and long-lived assets | $ | -1,038,092 | $ | -739,919 | |||||
Derivative instruments | -1,717,301 | 921,771 | |||||||
Net operating loss carry-forward | 25,915,146 | 9,138,048 | |||||||
Valuation allowance | -23,159,753 | -9,319,900 | |||||||
Net deferred tax asset (liability) | $ | - | $ | - | |||||
At December 31, 2014, we have a net operating loss carry forward of approximately $76 million expiring in 2021-2035 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 $40.9 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 | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Fair Value Measurements [Abstract] | |||||||||||
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: | |||||||||||
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, 2014. | |||||||||||
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 the marketable securities to be a Level 3. Our derivative instruments consist of fixed price commodity swaps. | |||||||||||
Fair Value Measurement | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
Crude oil contracts | $ | - | $ | 4,721,751 | $ | - | |||||
Marketable securities | $ | - | $ | - | $ | 1,018,573 | |||||
Derivative_Instruments
Derivative Instruments | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Derivative Instruments [Abstract] | |||||||||||||
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 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 December 31, 2014: | |||||||||||||
Term | Monthly Volumes (1) | Price/Bbl | Fair Value | ||||||||||
Deferred premium put | 1/16-6/16 | 9,000 | Bbls | $ | 85 | $ | 985,747 | ||||||
Crude oil swap | 1/15-12/15 | 5,800 | Bbls | $ | 88.55 | 2,212,584 | |||||||
Crude oil swap | 9/13-12/14 | 3,000 | Bbls | $ | 95.15 | 107,580 | |||||||
Crude oil swap | 7/11-12/15 | 2,942 | Bbls | $ | 83.7 | 1,024,763 | |||||||
Crude oil swap | 1/14-12/14 | 1,900 | Bbls | $ | 96 | 69,749 | |||||||
Crude oil swap | 7/12-12/15 | 1,092 | Bbls | $ | 76.74 | 278,139 | |||||||
Crude oil swap | 1/14-12/14 | 1,395 | Bbls | $ | 90.25 | 43,189 | |||||||
$ | 4,721,751 | ||||||||||||
(1) Monthly volumes are the weighted average throughout the period. | |||||||||||||
The total fair value of derivative contracts is shown in both current and non-current assets and liabilities on the balance sheet. We recorded gains on the derivative contracts for the year ended December 31, 2014 of $4,993,262 and losses for the year ended December 31, 2013 of $740,456. | |||||||||||||
Net_Income_Per_Common_Share
Net Income Per Common Share | 12 Months Ended |
Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |
Earnings Per 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. | |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12 - Subsequent Events |
On March 13, 2015 the Company issued in a registered offering 763,547 registered shares of its common stock together with 1,242.17099 shares of its newly designated Series B Convertible Preferred Stock (the "Preferred Stock") convertible into 709,812 shares of common stock. We also issued in an unregistered offering, 521.62076 shares of Preferred Stock convertible into 298,069 shares of common stock, and warrants to purchase 1,771,428 shares of its common stock. The shareholder’s ability to convert a portion of the Preferred Stock and to exercise the warrant are restricted: (i) prior to the Company obtaining approval of the offering by its shareholders, which we expect to obtain before May 31, 2015, and (ii) pursuant to customary “blocker” provisions restricting the investor’s ownership to 9.99% of our outstanding common stock. | |
The Preferred Stock has a liquidation preference of $1,000 per share, and will be convertible at the option of the shareholder at a conversion ratio equal to approximately 571 shares of common stock for each one (1) share of Preferred Stock, subject to customary adjustments and anti-dilution price protection. Dividends are payable on the shares of Preferred Stock only if and to the extent that dividends are payable on the common stock into which the Preferred Stock is convertible. The Preferred Stock has no maturity date and can be redeemed by the Company beginning twelve months after the closing of the offering or upon a change of control. Each warrant will be exercisable for one share of common stock, for a period of five years beginning six months after March 13, 2015, at a cash exercise price of $2.75 per share, and may be exercised on a cashless basis after that six-month period if no effective registration statement covers the warrant shares by that time. | |
On January 15, 2015, 52,000 options were issued to employees. | |
Supplemental_Oil_and_gas_Reser
Supplemental Oil and gas Reserve Information (Unaudited) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Supplemental Oil Reserve Information [Abstract] | ||||||||
Supplemental Oil and gas Reserve Information (Unaudited) | Note 13 - 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, | |||||||
2014 | 2013 | |||||||
Production revenues | $ | 14,293,368 | $ | 10,942,270 | ||||
Production costs | -6,762,248 | -4,095,850 | ||||||
Depletion and depreciation | -3,259,442 | -1,691,008 | ||||||
Income tax | -1,495,087 | -1,752,840 | ||||||
Results of operations for producing activities | $ | 2,776,591 | $ | 3,402,572 | ||||
Capitalized costs | ||||||||
The following table summarizes the Company’s capitalized costs of oil and gas properties. | ||||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Properties subject to amortization | $ | 78,090,619 | $ | 71,917,308 | ||||
Accumulated depletion | -13,827,347 | -10,567,905 | ||||||
Net capitalized costs | $ | 64,263,272 | $ | 61,349,403 | ||||
Cost incurred in property acquisition, exploration and development activities | ||||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Acquisition of properties | $ | 1,017,698 | $ | 124,028 | ||||
Exploration costs | - | - | ||||||
Development costs | 6,078,167 | 7,484,419 | ||||||
Net capitalized costs | $ | 7,095,865 | $ | 7,608,447 | ||||
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, | |||||||
2014 | 2013 | |||||||
Proved reserves (BOE): | ||||||||
Beginning | 5,804,600 | 2,927,000 | ||||||
Revisions of previous estimates | -1,198,754 | 141,600 | ||||||
Purchase of minerals in place | 2,234 | 2,685,517 | ||||||
Extension and discoveries | 2,226 | 175,917 | ||||||
Sale of minerals in place | - | -4,800 | ||||||
Production | -210,126 | -120,634 | ||||||
Ending | 4,400,180 | 5,804,600 | ||||||
Proved developed reserves at December 31, 2014 consisted of 77% oil and 23% natural gas and totaled 3,048.3 MBOEs. Proved developed reserves for December 31, 2013 consisted of 83 % oil and 17 % natural gas and totaled 3,824.9 MBOEs. Proved undeveloped reserves for December 31, 2014 were 1,351.9 MBOEs. Proved undeveloped reserves at December 31, 2013 were 1,979.9 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, | |||||||
2014 | 2013 | |||||||
Future production revenue | $ | 282,557,900 | $ | 413,965,250 | ||||
Future production costs | -101,119,500 | -122,957,721 | ||||||
Future development costs | -13,736,500 | -20,017,885 | ||||||
Future cash flows before income tax | 167,701,900 | 270,989,644 | ||||||
Future income taxes | -4,211,005 | -56,111,563 | ||||||
Future net cash flows | 163,490,895 | 214,878,081 | ||||||
10% annual discount for estimating of future cash flows | -100,787,044 | -133,430,425 | ||||||
Standardized measure of discounted net cash flows | $ | 62,703,851 | $ | 81,447,656 | ||||
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, | |||||||
2014 | 2013 | |||||||
Balance beginning of year | $ | 81,447,656 | $ | 48,872,561 | ||||
Sales, net of production costs | -7,531,119 | -6,846,420 | ||||||
Net change in pricing and production costs | -19,087,068 | -11,143,669 | ||||||
Net change in future estimated development costs | 6,281,385 | -2,281,285 | ||||||
Purchase of minerals in place | 190,502 | 32,687,100 | ||||||
Extensions and discoveries | 35,203 | 3,342,922 | ||||||
Sale of minerals in place | - | -37,375 | ||||||
Revisions | -25,498,141 | 1,357,734 | ||||||
Accretion of discount | 27,098,964 | 16,563,800 | ||||||
Change in income tax | -233,531 | -1,067,712 | ||||||
Balance end of year | $ | 62,703,851 | $ | 81,447,656 | ||||
Summary_of_Accounting_Policies1
Summary of Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
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. | |
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. | |
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 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, 2014 and 2013. 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, 2014. 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, 2014 are the years ended December 31, 2011, 2012, 2013 and 2014. Tax years ending prior to 2011 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. | |
Fixed AssetsFixed Assets | Fixed Assets |
Property and equipment are recorded at cost. At December 31, 2014, Fixed Assets consisted of vehicles $967,483, furniture and equipment of $608,061, building and leasehold improvements of $23,069 and gathering and compression systems of $2,751,697, as well as accumulated depreciation of vehicles of $697,042, accumulated depreciation of furniture and fixtures of $494,333, accumulated depreciation of building and leasehold improvements of $9,386 and accumulated depreciation of gathering and compression systems of $744,846. At December 31, 2013, Fixed Assets consisted of vehicles of $900,952, furniture and equipment of $672,105, building and leasehold improvements of $19,095 and gathering and compression systems of $2,599,841 as well as accumulated depreciation of vehicles $693,093, accumulated depreciation of furniture and fixtures of $118,642, accumulated depreciation of building and leasehold improvements of $4,985 and accumulated depreciation of gathering and compression systems of $968,682. | |
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 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 | 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, 2014 and 2013 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, 2014, and 2013 we sold our produced crude oil to Coffeyville Resources, Plains Marketing, L.P., and Sunoco, Inc. on a month-to-month basis and 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, 2014 and 2013. | |
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, 2014, diluted net income per share did not include the effect of 231,332 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, 2013, diluted net income per share did not include the effect of 172,833 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. | |
Equity_Transactions_Tables
Equity Transactions (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ||||||||||||||
Summary of Stock Options | A summary of stock options and warrants is as follows: | |||||||||||||
Weighted Ave. | Weighted Ave. | |||||||||||||
Options | Exercise Price | Warrants | Exercise Price | |||||||||||
Outstanding January 1, 2013 | 112,333 | $ | 8.1 | 16,667 | $ | 10.5 | ||||||||
Granted | 119,133 | 10.5 | 20,000 | 10.5 | ||||||||||
Cancelled | -333 | -10.5 | -36,667 | -10.5 | ||||||||||
Exercised | - | - | - | - | ||||||||||
Outstanding December 31, 2013 | 231,133 | $ | 9.36 | - | $ | - | ||||||||
Granted | 2,367 | 10.5 | - | - | ||||||||||
Cancelled | -2,168 | -10.5 | - | - | ||||||||||
Exercised | - | - | - | - | ||||||||||
Outstanding December 31, 2014 | 231,332 | $ | 9.33 | - | $ | - | ||||||||
Asset_Retirement_Obligation_Ta
Asset Retirement Obligation (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Asset Retirement Obligation [Abstract] | |||||
Changes in Asset Retirement Obligations | The following shows the changes in asset retirement obligations: | ||||
Asset retirement obligations, January 1, 2013 | $ | 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 | |||
Liabilities incurred during the period | 65,385 | ||||
Liabilities settled during the year | -102,929 | ||||
Accretion | 255,836 | ||||
Asset retirement obligations, December 31, 2014 | $ | 2,906,093 | |||
Merger_Tables
Merger (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Merger [Abstract] | |||||
Pro Forma Consolidated Combined Statements of Operations (Unaudited) | 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 | |||||
Revenues | $ | 14,362,000 | |||
Income from operations | $ | 2,106,000 | |||
Net income (loss) | $ | -141,700 | |||
Net income (loss) per common share | $ | - | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Reconciliation of the Provision For Income Taxes to the Statutory Federal Rate | The following table sets forth a reconciliation of the provision for income taxes to the statutory federal rate: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Statutory tax rate | 35 | % | 34 | % | |||||
State tax rate, net of federal tax | 1.37 | % | 1.37 | % | |||||
Other permanent items | 0.05 | % | 0.59 | % | |||||
Change in valuation allowance | -36.42 | % | -35.96 | % | |||||
Effective tax rate | 0 | % | 0 | % | |||||
Significant Components of the Deferred Tax Assets and Liabilities | Significant components of the deferred tax assets and liabilities are as follows: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Non-current deferred tax asset: | |||||||||
Oil and gas costs and long-lived assets | $ | -1,038,092 | $ | -739,919 | |||||
Derivative instruments | -1,717,301 | 921,771 | |||||||
Net operating loss carry-forward | 25,915,146 | 9,138,048 | |||||||
Valuation allowance | -23,159,753 | -9,319,900 | |||||||
Net deferred tax asset (liability) | $ | - | $ | - | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
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 | $ | - | $ | 4,721,751 | $ | - | |||||
Marketable securities | $ | - | $ | - | $ | 1,018,573 | |||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Derivative Instruments [Abstract] | |||||||||||||
Derivative Contracts | The following derivative contracts were in place at December 31, 2014: | ||||||||||||
Term | Monthly Volumes (1) | Price/Bbl | Fair Value | ||||||||||
Deferred premium put | 1/16-6/16 | 9,000 | Bbls | $ | 85 | $ | 985,747 | ||||||
Crude oil swap | 1/15-12/15 | 5,800 | Bbls | $ | 88.55 | 2,212,584 | |||||||
Crude oil swap | 9/13-12/14 | 3,000 | Bbls | $ | 95.15 | 107,580 | |||||||
Crude oil swap | 7/11-12/15 | 2,942 | Bbls | $ | 83.7 | 1,024,763 | |||||||
Crude oil swap | 1/14-12/14 | 1,900 | Bbls | $ | 96 | 69,749 | |||||||
Crude oil swap | 7/12-12/15 | 1,092 | Bbls | $ | 76.74 | 278,139 | |||||||
Crude oil swap | 1/14-12/14 | 1,395 | Bbls | $ | 90.25 | 43,189 | |||||||
$ | 4,721,751 | ||||||||||||
(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, 2014 | ||||||||
Supplemental Oil Reserve Information [Abstract] | ||||||||
Results of operations from 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, | |||||||
2014 | 2013 | |||||||
Production revenues | $ | 14,293,368 | $ | 10,942,270 | ||||
Production costs | -6,762,248 | -4,095,850 | ||||||
Depletion and depreciation | -3,259,442 | -1,691,008 | ||||||
Income tax | -1,495,087 | -1,752,840 | ||||||
Results of operations for producing activities | $ | 2,776,591 | $ | 3,402,572 | ||||
Summarizes the Companybs Capitalized Costs | The following table summarizes the Company’s capitalized costs of oil and gas properties. | |||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Properties subject to amortization | $ | 78,090,619 | $ | 71,917,308 | ||||
Accumulated depletion | -13,827,347 | -10,567,905 | ||||||
Net capitalized costs | $ | 64,263,272 | $ | 61,349,403 | ||||
Cost incurred in property acquisition, exploration and development activities | Cost incurred in property acquisition, exploration and development activities | |||||||
Year Ended | Year Ended | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Acquisition of properties | $ | 1,017,698 | $ | 124,028 | ||||
Exploration costs | - | - | ||||||
Development costs | 6,078,167 | 7,484,419 | ||||||
Net capitalized costs | $ | 7,095,865 | $ | 7,608,447 | ||||
Estimated quantities of proved reserves | 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, | |||||||
2014 | 2013 | |||||||
Proved reserves (BOE): | ||||||||
Beginning | 5,804,600 | 2,927,000 | ||||||
Revisions of previous estimates | -1,198,754 | 141,600 | ||||||
Purchase of minerals in place | 2,234 | 2,685,517 | ||||||
Extension and discoveries | 2,226 | 175,917 | ||||||
Sale of minerals in place | - | -4,800 | ||||||
Production | -210,126 | -120,634 | ||||||
Ending | 4,400,180 | 5,804,600 | ||||||
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, | |||||||
2014 | 2013 | |||||||
Future production revenue | $ | 282,557,900 | $ | 413,965,250 | ||||
Future production costs | -101,119,500 | -122,957,721 | ||||||
Future development costs | -13,736,500 | -20,017,885 | ||||||
Future cash flows before income tax | 167,701,900 | 270,989,644 | ||||||
Future income taxes | -4,211,005 | -56,111,563 | ||||||
Future net cash flows | 163,490,895 | 214,878,081 | ||||||
10% annual discount for estimating of future cash flows | -100,787,044 | -133,430,425 | ||||||
Standardized measure of discounted net cash flows | $ | 62,703,851 | $ | 81,447,656 | ||||
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, | |||||||
2014 | 2013 | |||||||
Balance beginning of year | $ | 81,447,656 | $ | 48,872,561 | ||||
Sales, net of production costs | -7,531,119 | -6,846,420 | ||||||
Net change in pricing and production costs | -19,087,068 | -11,143,669 | ||||||
Net change in future estimated development costs | 6,281,385 | -2,281,285 | ||||||
Purchase of minerals in place | 190,502 | 32,687,100 | ||||||
Extensions and discoveries | 35,203 | 3,342,922 | ||||||
Sale of minerals in place | - | -37,375 | ||||||
Revisions | -25,498,141 | 1,357,734 | ||||||
Accretion of discount | 27,098,964 | 16,563,800 | ||||||
Change in income tax | -233,531 | -1,067,712 | ||||||
Balance end of year | $ | 62,703,851 | $ | 81,447,656 | ||||
Summary_of_Accounting_Policies2
Summary of Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Summary Of Accounting Policies [Line Items] | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $552,589 | $552,589 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 231,332 | 172,833 |
Percentage Of Discount Factor | 10.00% | |
Property, Plant and Equipment, Gross, Total | 2,404,703 | 2,406,591 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 1,945,607 | 1,785,401 |
Vehicles [Member] | ||
Summary Of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 967,483 | 900,952 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 697,042 | 693,093 |
Gas Gathering and Processing Equipment [Member] | ||
Summary Of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 2,751,697 | 2,599,841 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 744,846 | 968,682 |
Furniture And Equipment [Member] | ||
Summary Of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 608,061 | 672,105 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 494,333 | 118,642 |
Building And leasehold Imrovement [Member] | ||
Summary Of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Gross, Total | 23,069 | 19,095 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $9,386 | $4,985 |
Maximum [Member] | ||
Summary Of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Minimum [Member] | ||
Summary Of Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years |
Equity_Transactions_Summary_of
Equity Transactions (Summary of stock options) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Options | ||
Options Outstanding, Beginning Balance | 231,133 | 112,333 |
Options Granted | 2,367 | 119,133 |
Options Cancelled | -2,168 | -333 |
Options Exercised | 0 | 0 |
Options Outstanding, Ending Balance | 231,332 | 231,133 |
Weighted Average Price | ||
Weighted Ave. Price Outstanding, Beginning Balance | $9.36 | $8.10 |
Weighted Ave. Price Granted | $10.50 | $10.50 |
Weighted Ave. Price Cancelled | ($10.50) | ($10.50) |
Weighted Ave. Price Exercised | $0 | $0 |
Weighted Ave. Price Outstanding, Ending balance | $9.33 | $9.36 |
Warrants | ||
Warrants Outstanding | 0 | 16,667 |
Warrants Granted | 0 | 20,000 |
Warrants Cancelled | 0 | -36,667 |
Warrants Exercised | 0 | 0 |
Warrants Outstanding | 0 | 0 |
Weighted Ave. Exercise Price Outstanding | ||
Weighted Ave. Exercise Price Outstanding | $10.50 | |
Weighted Ave. Exercise Price Granted | $0 | $10.50 |
Weighted Ave. Exercise Price Cancelled | $0 | ($10.50) |
Weighted Ave. Exercise Price Exercised | $0 | $0 |
Weighted Ave. Exercise Price Outstanding | $0 | $0 |
Equity_Transactions_Additional
Equity Transactions - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | ||||||
Jun. 16, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 20, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Sep. 30, 2013 | Jan. 03, 2013 | 31-May-12 | Dec. 31, 2013 | Sep. 30, 2007 | Aug. 01, 2002 | Oct. 14, 2008 | |
Stock Issued During Period, Shares, Issued for Services | 9,625 | ||||||||||||||
Stockholders' Equity, Reverse Stock Split | May 30, 2014, the Company affected a 1-for-15 reverse stock split, by which each share of EnerJex common stock was reclassified, and changed into 1/15th of a fully paid and non-assessable share of common stock. In lieu of fractions of a share, the Company paid to holders of fractions of a share cash equal to $11.25 per share | ||||||||||||||
Stock Issued During Period, Value, New Issues | $234,654 | $45,000 | |||||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding, Number | 231,332 | 231,133 | 112,333 | 231,133 | |||||||||||
Share Based Compensation Arrangements By Share Based Payment Award Options Amount Recognized As Expenses | 76,938 | 76,938 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 80,489 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 150,843 | ||||||||||||||
Treasury Stock, Number of Shares Held | 38,333 | ||||||||||||||
Adjustments to Additional Paid in Capital, Other | 2,551,000 | ||||||||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | 13,347,564 | 0 | |||||||||||||
Preferred Stock, Conversion Basis | the holders of our existing Series A preferred stock exchanged each outstanding share of such existing Series A preferred stock for (i) a number of shares of our common stock into which such Series A preferred stock was then convertible immediately prior to the exchange (318,630 shares in the aggregate), and (ii) 112,658 shares of Series A preferred stock which was equal to the quotient determined by dividing (x) that portion of the holder's original Series A preferred stock purchase price that had not yet been paid in dividends, by (y) $23.75. | ||||||||||||||
Stock Issued During Period Shares Owed For Services | 17,500 | ||||||||||||||
Employee Stock Option [Member] | |||||||||||||||
Share Price | $7.95 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $10.50 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 72.00% | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.47% | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 2,367 | ||||||||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | 12,178 | ||||||||||||||
Payments of Stock Issuance Costs | 326,579 | 72,434 | |||||||||||||
2002-2003 Stock Option Plan | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 26,666 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 66,666 | ||||||||||||||
Stock Incentive Plan [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 83,333 | ||||||||||||||
2013 Stock Incentive Plan | |||||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 333,300 | ||||||||||||||
IPO [Member] | |||||||||||||||
Stock Issued During Period, Shares, New Issues | 639,157 | ||||||||||||||
Sale of Stock, Price Per Share | $23.75 | ||||||||||||||
Stock Issued During Period, Value, New Issues | 15,179,938 | ||||||||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | 13,347,564 | ||||||||||||||
Underwriters [Member] | |||||||||||||||
Payments of Stock Issuance Costs | 1,832,374 | ||||||||||||||
Series A Convertible Preferred Stock [Member] | |||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 318,630 | ||||||||||||||
Sale of Stock, Price Per Share | 23.75 | ||||||||||||||
Employees [Member] | |||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 7,707 | 6,000 | |||||||||||||
Share Price | $59,298 | $7.50 | 7.5 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $10.50 | 10.5 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.47% | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 119,133 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $675,344 | ||||||||||||||
Employees [Member] | Maximum [Member] | |||||||||||||||
Share Price | $8.40 | 8.4 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 72.00% | ||||||||||||||
Employees [Member] | Minimum [Member] | |||||||||||||||
Share Price | $7.95 | 7.95 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 67.00% | ||||||||||||||
Officer [Member] | |||||||||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding, Number | 60,000 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $6 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 307,751 | ||||||||||||||
Share Based Compensation Arrangements By Share Based Payment Award Options Amount Recognized As Expenses | $76,938 | $76,938 | |||||||||||||
Thirteen Employees [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years | ||||||||||||||
Black Raven Energy, Inc. [Member] | |||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 2,755,168 | ||||||||||||||
Investor Relations Firm [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years | 3 years | |||||||||||||
Warrants Issued During Period Shares Issued | 20,000 | 16,667 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $41,000 | $86,000 | |||||||||||||
Share based Compensation Arrangement By Share based Payment Award Warrants Forfeited Number Of Shares | 36,667 |
Asset_Retirement_Obligation_Ch
Asset Retirement Obligation (Changes in Asset Retirement Obligations) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation Of Changes In Asset Retirement Obligations [Line Items] | ||
Asset retirement obligations, beginning balance | $2,687,801 | $1,336,151 |
Liabilities acquired | 1,251,511 | |
Liabilities incurred during the period | 65,385 | 56,825 |
Liabilities settled during the period | -102,929 | -96,465 |
Accretion | 255,836 | 139,779 |
Asset retirement obligations, end balance | $2,906,093 | $2,687,801 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
22-May-14 | Dec. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Apr. 16, 2013 | Dec. 15, 2011 | Aug. 31, 2012 | Nov. 02, 2012 | Aug. 15, 2014 | |
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $19,500,000 | ||||||||
Line of credit facility, current borrowing capacity | 40,000,000 | ||||||||
Credit Facility, Current | 23,000,000 | ||||||||
Preferred Stock Shares Issued | 4,779,460 | ||||||||
First Amendment | Rantoul Partners | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 50,000,000 | ||||||||
Second Amendment | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 7,000,000 | ||||||||
Second Amendment | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | ||||||||
Third Amendment | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 12,150,000 | ||||||||
Fifth Amendment | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 38,000,000 | ||||||||
Line of credit facility, current borrowing capacity | 100,000,000 | ||||||||
Seventh Amendment | Series A Cumulative Redeemable Perpetual Preferred Stock | |||||||||
Debt Instrument [Line Items] | |||||||||
Preferred Stock, Dividend Rate, Percentage | 10.00% | ||||||||
Preferred Stock Shares Issued | 850,000 | ||||||||
Eight Amendment | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 40,000,000 | ||||||||
Line of credit facility, current borrowing capacity | 38,000,000 | ||||||||
Line of Credit | Federal Funds Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument interest rate, margin | 0.50% | ||||||||
Line of Credit | Base Rate | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument interest rate, margin | 0.00% | ||||||||
Line of Credit | Base Rate | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument interest rate, margin | 0.75% | ||||||||
Line of Credit | Floating Rate | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument interest rate, margin | 2.25% | ||||||||
Line of Credit | Floating Rate | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument interest rate, margin | 3.00% | ||||||||
Line of Credit | Fifth Amendment | Federal Funds Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument interest rate, margin | 3.30% | ||||||||
Long-Term Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit Facility | 11,660 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.30% |
Merger_Pro_Forma_Consolidated_
Merger ( Pro Forma Consolidated Statements of Operations ) (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Revenues | $14,362,000 |
Income from operations | 2,106,000 |
Net income (loss) | ($141,700) |
Net income (loss) per common share | $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 $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Line Items] | ||
Operating Leases, Rent Expense | $159,000 | $185,000 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 150,000 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 147,000 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 145,000 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 91,000 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 77,000 | |
Operating Leases, Rent Expense, Sublease Rentals | 37,000 | |
Texas Railroad Commission [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Letters of Credit Outstanding, Amount | $50,000 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of The Provision For Income Taxes) (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Statutory tax rate | 35.00% | 34.00% |
State tax rate, net of federal tax | 1.37% | 1.37% |
Other permanent items | 0.05% | 0.59% |
Change in valuation allowance | -36.42% | -35.96% |
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, 2014 | Dec. 31, 2013 |
Non-current deferred tax asset: | ||
Oil and gas costs and long-lived assets | ($1,038,092) | ($739,919) |
Derivative instruments | -1,717,301 | 921,771 |
Net operating loss carry-forward | 25,915,146 | 9,138,048 |
Valuation allowance | -23,159,753 | -9,319,900 |
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, 2014 | Dec. 31, 2013 |
Operating Loss Carryforwards | $76 | |
Operating Loss Carryforward, Expiration Date | 2021-2035 | |
Limitations On Use Operating Loss Carryforwards | $40.90 |
Fair_Value_Measurements_Variab
Fair Value Measurements (Variable to Fixed Price Commodity Swaps Derivative Instruments) (Detail) (USD $) | Dec. 31, 2014 |
Fair Value, Inputs, Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Crude oil contracts | $0 |
Marketable Securities | 0 |
Fair Value, Inputs, Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Crude oil contracts | 4,721,751 |
Marketable Securities | 0 |
Fair Value, Inputs, Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Crude oil contracts | 0 |
Marketable Securities | $1,018,573 |
Derivative_Instruments_Derivat
Derivative Instruments (Derivative Contracts) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | ||
Derivative [Line Items] | ||
Fair Value | 4,721,751 | |
Deferred premium put [Member] | Derivative Instrument 1 | ||
Derivative [Line Items] | ||
Monthly Volumes Bbls | 9,000 | [1] |
Price/bbl | 85 | |
Fair Value | 985,747 | |
Deferred premium put [Member] | Minimum | Derivative Instrument 1 | ||
Derivative [Line Items] | ||
Term | 2016-01 | |
Deferred premium put [Member] | Maximum | Derivative Instrument 1 | ||
Derivative [Line Items] | ||
Term | 2016-06 | |
Crude Oil Swap | Derivative Instrument 2 | ||
Derivative [Line Items] | ||
Monthly Volumes Bbls | 5,800 | [1] |
Price/bbl | 88.55 | |
Fair Value | 2,212,584 | |
Crude Oil Swap | Derivative Instrument 3 | ||
Derivative [Line Items] | ||
Monthly Volumes Bbls | 3,000 | [1] |
Price/bbl | 95.15 | |
Fair Value | 107,580 | |
Crude Oil Swap | Derivative Instrument 4 | ||
Derivative [Line Items] | ||
Monthly Volumes Bbls | 2,942 | [1] |
Price/bbl | 83.7 | |
Fair Value | 1,024,763 | |
Crude Oil Swap | Derivative Instrument 5 | ||
Derivative [Line Items] | ||
Monthly Volumes Bbls | 1,900 | [1] |
Price/bbl | 96 | |
Fair Value | 69,749 | |
Crude Oil Swap | Derivative Instrument 6 | ||
Derivative [Line Items] | ||
Monthly Volumes Bbls | 1,092 | [1] |
Price/bbl | 76.74 | |
Fair Value | 278,139 | |
Crude Oil Swap | Derivative Instrument 7 | ||
Derivative [Line Items] | ||
Monthly Volumes Bbls | 1,395 | [1] |
Price/bbl | 90.25 | |
Fair Value | 43,189 | |
Crude Oil Swap | Minimum | Derivative Instrument 2 | ||
Derivative [Line Items] | ||
Term | 2015-01 | |
Crude Oil Swap | Minimum | Derivative Instrument 3 | ||
Derivative [Line Items] | ||
Term | 2013-09 | |
Crude Oil Swap | Minimum | Derivative Instrument 4 | ||
Derivative [Line Items] | ||
Term | 2011-07 | |
Crude Oil Swap | Minimum | Derivative Instrument 5 | ||
Derivative [Line Items] | ||
Term | 2014-01 | |
Crude Oil Swap | Minimum | Derivative Instrument 6 | ||
Derivative [Line Items] | ||
Term | 2012-07 | |
Crude Oil Swap | Minimum | Derivative Instrument 7 | ||
Derivative [Line Items] | ||
Term | 2014-01 | |
Crude Oil Swap | Maximum | Derivative Instrument 2 | ||
Derivative [Line Items] | ||
Term | 2015-12 | |
Crude Oil Swap | Maximum | Derivative Instrument 3 | ||
Derivative [Line Items] | ||
Term | 2014-12 | |
Crude Oil Swap | Maximum | Derivative Instrument 4 | ||
Derivative [Line Items] | ||
Term | 2015-12 | |
Crude Oil Swap | Maximum | Derivative Instrument 5 | ||
Derivative [Line Items] | ||
Term | 2014-12 | |
Crude Oil Swap | Maximum | Derivative Instrument 6 | ||
Derivative [Line Items] | ||
Term | 2015-12 | |
Crude Oil Swap | Maximum | Derivative Instrument 7 | ||
Derivative [Line Items] | ||
Term | 2014-12 | |
[1] | Monthly volumes are the weighted average throughout the period. |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Gain (Loss) On Derivatives | $4,993,262 | ($740,456) |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | |
Mar. 13, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 15, 2015 | Mar. 13, 2015 | |
Subsequent Event [Line Items] | |||||
Conversion of Stock, Shares Issued | 709,812 | ||||
Equity Method Investment, Ownership Percentage | 9.99% | 9.99% | |||
Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 17,332 | 6,000 | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Warrants Expiration Term | 5 years | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 2.75 | $2.75 | |||
Conversion of Stock, Shares Issued | 52,000 | ||||
Subsequent Event [Member] | Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 298,069 | 763,547 | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,771,428 | 1,771,428 | |||
Convertible Preferred Stock, Shares Issued upon Conversion | 571 | 571 | |||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 1 | 1 | |||
Subsequent Event [Member] | Preferred Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 521.62076 | ||||
Subsequent Event [Member] | Series B Preferred Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 1,242.17 | ||||
Preferred Stock, Liquidation Preference Per Share | 1,000 | $1,000 |
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, 2014 | Dec. 31, 2013 | |
Production revenues | $14,293,368 | $10,942,270 |
Production costs | -6,762,248 | -4,095,850 |
Depletion and depreciation | -3,259,442 | -1,691,008 |
Income tax | -1,495,087 | -1,752,840 |
Results of operations for producing activities | $2,776,591 | $3,402,572 |
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, 2014 | Dec. 31, 2013 |
Properties subject to amortization | $78,090,619 | $71,917,308 |
Accumulated depletion | -13,827,347 | -10,567,905 |
Net capitalized costs | $64,263,272 | $61,349,403 |
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, 2014 | Dec. 31, 2013 | |
Acquisition of properties | $1,017,698 | $124,028 |
Exploration costs | 0 | 0 |
Development costs | 6,078,167 | 7,484,419 |
Net capitalized costs | $7,095,865 | $7,608,447 |
Supplemental_Oil_and_gas_Reser5
Supplemental Oil and gas Reserve Information (Unaudited) (Estimated Quantities of Proved Reserves) (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
bbl | bbl | |
Beginning | 5,804,600 | 2,927,000 |
Revisions of previous estimates | -1,198,754 | 141,600 |
Purchase of minerals in place | 2,234 | 2,685,517 |
Extension and discoveries | 2,226 | 175,917 |
Sale of minerals in place | 0 | -4,800 |
Production | -210,126 | -120,634 |
Ending | 4,400,180 | 5,804,600 |
Supplemental_Oil_and_gas_Reser6
Supplemental Oil and gas Reserve Information (Unaudited)(Standardized Measure of Discounted Future Net Cash Flows) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Future production revenue | $282,557,900 | $413,965,250 |
Future production costs | -101,119,500 | -122,957,721 |
Future development costs | -13,736,500 | -20,017,885 |
Future cash flows before income tax | 167,701,900 | 270,989,644 |
Future income taxes | -4,211,005 | -56,111,563 |
Future net cash flows | 163,490,895 | 214,878,081 |
10% annual discount for estimating of future cash flows | -100,787,044 | -133,430,425 |
Standardized measure of discounted net cash flows | $62,703,851 | $81,447,656 |
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, 2014 | Dec. 31, 2013 | |
Balance beginning of year | $81,447,656 | $48,872,561 |
Sales, net of production costs | -7,531,119 | -6,846,420 |
Net change in pricing and production costs | -19,087,068 | -11,143,669 |
Net change in future estimated development costs | 6,281,385 | -2,281,285 |
Purchase of minerals in place | 190,502 | 32,687,100 |
Extensions and discoveries | 35,203 | 3,342,922 |
Sale of minerals in place | 0 | -37,375 |
Revisions | -25,498,141 | 1,357,734 |
Accretion of discount | 27,098,964 | 16,563,800 |
Change in income tax | -233,531 | -1,067,712 |
Balance end of year | $62,703,851 | $81,447,656 |
Supplemental_Oil_and_gas_Reser8
Supplemental Oil and gas Reserve Information (Unaudited) - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
bbl | bbl | bbl | |
Percentage Of Oil For Proved Developed Reserves | 77.00% | 83.00% | |
Percentage Of Natural Gas For Proved Developed Reserves | 23.00% | 17.00% | |
Proved Developed and Undeveloped Reserves, Net | 4,400,180 | 5,804,600 | 2,927,000 |
Proved Developed Reserves [Member] | |||
Proved Developed and Undeveloped Reserves, Net | 3,048.30 | 3,824.90 | |
Proved Undeveloped Reserve [Member] | |||
Proved Developed and Undeveloped Reserves, Net | 1,351.90 | 1,979.90 |