AgEagle Aerial Systems (UAVS) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 09, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	EnerJex Resources, Inc.
Entity Central Index Key	8,504
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	ENRJ
Entity Common Stock, Shares Outstanding		10,321,397

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 15,099	$ 128,035
Restricted cash		50,000
Accounts receivable	257,152	600,255
Derivative receivable		10,570
Inventory		185,733
Marketable securities		210,990
Deposits and prepaid expenses	179,424	493,384
Total current assets	451,675	1,678,967
Non-current assets:
Fixed assets, net of accumulated depreciation of $600,085 and $1,817,711	196,691	2,077,055
Oil and gas properties using full-cost accounting, net of accumulated DD&A of $8,594,167 and $15,189,716	1,414,598	3,437,030
Other non-current assets		798,809
Total non-current assets	1,611,289	6,312,894
Total assets	2,062,964	7,991,861
Current liabilities:
Accounts payable	153,170	294,241
Accrued liabilities	709,300	1,535,165
Note Payable	105,806
Current portion of long term debt	4,500,000	17,925,000
Total current liabilities	5,468,276	19,754,406
Asset retirement obligation	1,593,281	3,314,191
Other long-term liabilities	6,039,972	3,401,149
Total non-current liabilities	7,633,253	6,715,340
Total liabilities	13,101,529	26,469,746
Stockholders' Deficit:
Common stock, $0.001 par value, 250,000,000 shares authorized; shares issued and outstanding 10,321,397 at September 30, 2017 and 8,423,936 at December 31, 2016, respectively.	10,322	8,424
Paid-in capital	69,610,909	69,090,613
Accumulated deficit	(80,810,736)	(87,577,862)
Total stockholders' deficit	(11,038,565)	(18,477,885)
Total liabilities and stockholders' deficit	2,062,964	7,991,861
Series A Preferred Stock [Member]
Stockholders' Deficit:
Preferred Stock Value	938	938
Series B Convertible Preferred Stock [Member]
Stockholders' Deficit:
Preferred Stock Value	1	2
Series C Convertible Preferred Stock [Member]
Stockholders' Deficit:
Preferred Stock Value	1
Series C convertible preferred stock issuable	$ 150,000

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Accumulated Depreciation, Property, Plant, and Equipment	$ 600,085	$ 1,817,711
Properties using full-cost accounting	$ 8,594,167	$ 15,189,716
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	10,321,397	8,423,936
Common stock, shares outstanding	10,321,397	8,423,936
Series A Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	938,248	938,248
Preferred Stock, shares outstanding	938,248	938,248
Series B Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,764	1,764
Preferred stock, shares issued	1,374	1,764
Preferred Stock, shares outstanding	1,374	1,764
Series C Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	500	500
Preferred stock, shares issued	300	0
Preferred Stock, shares outstanding	300	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Oil revenues	$ 187,297	$ 454,825	$ 1,082,492	$ 1,581,972
Natural gas revenues		18,929	19,509	43,461
Total revenues	187,297	473,754	1,102,001	1,625,433
Expenses:
Direct operating costs	205,253	569,109	1,013,389	1,916,774
Depreciation, depletion and amortization	80,449	63,644	305,684	312,322
Impairment of oil and gas asset		800,000		7,444,597
Professional fees		43,968	422,538	181,086
Salaries	130,741	297,244	407,888	1,044,639
Administrative expense	190,341	124,090	461,378	435,616
Total expenses	606,784	1,898,055	2,610,877	11,335,034
Loss from operations	(419,487)	(1,424,301)	(1,508,876)	(9,709,601)
Other income (expense):
Interest expense	(184,148)	(339,719)	(908,642)	(1,001,937)
Gain on loan sale agreement			11,500,124
Loss on derivatives		(68,459)		(2,449,855)
Other income	285,000	138,075	531,846	2,312,261
Total other income (expense)	100,852	(270,103)	11,123,328	(1,139,531)
Net (loss) income	(318,635)	(1,694,404)	9,614,452	(10,849,132)
Preferred dividends	(879,608)	(860,061)	(2,847,324)	(2,130,604)
Net (loss) income attributable to common stockholders	$ (1,198,243)	$ (2,554,465)	$ 6,767,128	$ (12,979,736)
Net (loss) income per share basic	$ (0.12)	$ (0.30)	$ 0.72	$ (1.54)
Weighted average shares basic	10,321,397	8,423,936	9,416,837	8,423,936
Net (loss) income per share diluted	$ (0.12)	$ (.30)	$ 0.45	$ (1.54)
Weighted average shares diluted	10,321,397	8,423,936	15,151,107	8,423,936

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net income (loss)	$ 9,614,452	$ (10,849,132)
Depreciation, depletion and amortization	212,186	312,322
Write-off of inventory	71,982
Amortization of deferred financing costs	223,790	90,323
Impairment of oil and gas assets		7,444,597
Stock, options and warrants issued for services	13,690	217,283
Accretion of asset retirement obligation	93,498	169,110
Settlement of asset retirement obligation		(2,767)
Amortization of prepaid expenses	241,101
Loss on derivatives		2,449,855
Gain on loan sale agreement, net of cash	(11,500,124)
Adjustments to reconcile net income (loss) to cash used in operating activities:
Accounts receivable	(15,656)	156,835
Inventory	(15,944)	(81,805)
Prepaid expenses	55,601	(76,261)
Accounts payable	(67,008)	(762,193)
Accrued liabilities	556,677	(360,153)
Cash used in operating activities	(515,752)	(1,291,986)
Cash flows from investing activities
Purchase of fixed assets		(243,274)
Additions to oil and gas properties	(4,635)	(16,794)
Cash used in investing activities	(4,635)	(260,068)
Cash flows from financing activities
Bank account transfer on loan sale agreement	(92,547)
Repayments of long-term debt		(686,660)
Proceeds from sale of preferred stock	450,000
Cash provided by (used in) financing activities	357,453	(686,660)
Net (decrease) in cash	(162,936)	(2,238,714)
Cash - beginning	178,035	3,101,682
Cash - ending	15,099	862,968
Supplemental disclosures:
Interest paid		$ 919,089
Non-cash transactions:
Benefical conversion feature on Series C Preferred Stock accounted as preferred dividend	208,500
Accrued preference dividend included in long term debt	2,638,824
Conversion of Series B preferred into common stock	$ 1,897

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 1 – Basis of Presentation The unaudited condensed consolidated financial statements of EnerJex Resources, Inc. (“ we us our EnerJex Company Our consolidated financial statements include the accounts of our wholly-owned subsidiaries, EnerJex Kansas, Inc., Black Sable Energy, LLC, Working Interest, LLC and Black Raven Energy, Inc., for the three and nine month periods ended September 30, 2017, and for the year ended December 31, 2016. All intercompany transactions and accounts have been eliminated in consolidation.

Going Concern

Going Concern	9 Months Ended
	Sep. 30, 2017
Going Concern Disclosure [Abstract]
Going Concern	Note 2 – Going Concern The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Merger Agreement On October 19, 2017, EnerJex entered into an Agreement and Plan of Merger (the “ Merger Agreement AgEagle Merger Sub Merger At the effective time of the Merger (the “ Effective Time In connection with the Merger, the Company will also file a proxy statement seeking stockholder approval to: (a) amend the terms of its Series A Preferred Stock (as discussed below); (b) approve the issuance of the Company’s shares in connection with the Merger to the AgEagle shareholders and new investors, in excess of 19.9% of the Company’s total issued and outstanding shares of common stock; (c) approve the issuance of shares to current Company management and directors in lieu of deferred salary and fees, a majority of which will be held in escrow to secure the Company’s indemnity obligations under the Merger Agreement; and (d) change the name of the Company to “ AgEagle Aerial Resources, Inc. The Merger Agreement provides that, immediately following the Effective Time, the existing board of directors and officers of the Company will resign and new directors and officers will be appointed by AgEagle. The Company intends to dispose of its principal assets, consisting primarily of its Kansas oil and gas properties, concurrently with the closing of the Merger. In the event the Merger is not consummated, the Company does not have a present intention to dispose of the above described assets. The completion of the Merger is subject to various customary conditions, including, among other things: (a) the approval of the stockholders of the Company and AgEagle; (b) the accuracy of the representations and warranties made by each of the Company and AgEagle and the compliance by each of the Company and AgEagle with their respective obligations under the Merger Agreement; (c) approval of the stockholders of the Company for the issuance of its common stock and any other securities (x) to the AgEagle stockholders in connection with the Merger and (y) in connection with the financing transactions contemplated by the Merger Agreement; (d) approval for the listing of shares of the Company’s common stock to be issued in the Merger and other related transactions on the NYSE American; and (e) that all of the Company’s assets as disclosed shall have been sold, transferred or otherwise disposed of and the corresponding debt and liabilities shall have been extinguished. The Company’s existing cash resources are insufficient to satisfy all of its outstanding liabilities. Accordingly, in order to satisfy the condition and consummate the Merger, the Company will be required to raise additional funding prior to the closing of the Merger, the failure of which could result in the Company’s failure to consummate the Merger Agreement. The Merger Agreement contains customary representations, warranties and covenants, including covenants obligating each of the Company and AgEagle to continue to conduct its respective business in the ordinary course, to provide reasonable access to each other’s information and to use reasonable best efforts to cooperate and coordinate to make any filings or submissions that are required to be made under any applicable laws or requested to be made by any government authority in connection with the Merger. The Merger Agreement also contains a customary “ no solicitation In addition, the Merger Agreement contains provisions for indemnification in the event of any damages suffered by either party as a result of breaches of representations and warranties contained therein. The aggregate maximum indemnification obligation of any indemnifying party for damages with respect to breaches of representations and warranties set forth in the Merger Agreement shall not exceed, in the aggregate, $350,000, other than fraud, intentional misrepresentation or willful breach. An indemnifying party shall satisfy its indemnification obligations with shares of Company common stock equal to the aggregate amount of losses of the indemnified party, calculated based upon the greater of (i) the value of the Company common stock as of the closing of the Merger; and (ii) the average closing price of the Company common stock on the NYSE American for the five trading days immediately prior to the date such a claim is made. The Company has agreed to deposit an aggregate of 1,215,278 shares of common stock to be issued to current officers and directors of the Company in lieu of deferred salary and fees into escrow to secure its indemnification obligations, the issuance of such shares requiring the approval of the Company’s common stockholders. In connection with, and as a condition to the closing of the Merger, the Company is seeking the consent of the holder of its Series A Preferred Stock (“ Series A Preferred Stock As of September 30, 2017, the Series A Preferred Stock had accrued a total of $6,039,972 in accrued but unpaid dividends, which would result in an additional 241,599 shares of Series A Preferred Stock being issued by the Company to satisfy these accrued dividends. The Merger Agreement provides either party the right to terminate the Merger if it has not been consummated by January 31, 2018, provided that if all of the conditions to closing shall have been satisfied or shall be capable of being satisfied at such time, the required closing date may be extended until March 31, 2018. Financing Transactions On October 3, 2011, the Company 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 (“ TCB Bank On April 1, 2016, the Company informed the Bank that it would cease making the mandatory monthly borrowing base reduction payments and did not make the required April 1, 2016 payment. The Company made its mandatory quarterly interest payment on April 6, 2016 and on April 7, 2016, entered into a Forbearance Agreement whereby the Bank agreed to not exercise remedies and rights afforded it under the Amended and Restated Credit Agreement for thirty days. On May 31, 2016, the Company and the Bank amended the Forbearance Agreement to extend the forbearance period to August 31, 2016. On July 29, 2016, the Company and the Bank amended the Forbearance Agreement to extend the forbearance period to October 1, 2016. Upon the expiration of the Third Forbearance agreement, the Company did not enter into a Fourth Forbearance Agreement. Also, at that time the Company discontinued payment of interest on its outstanding loan obligations with the Bank. Throughout 2016, the Company evaluated plans to restructure, amend or refinance existing debt through private options. On February 14, 2017, the Company announced that a group of investors unrelated to the Company had purchased from EnerJex’s secured bank lender all rights to the Company’s secured indebtedness, and that EnerJex had executed a definitive written agreement for the discharge of the Company’s secured indebtedness with the purchasing investor group. Final closing on this agreement occurred on May 10, 2017. On February 10, 2017, the Company, TCB and IberiaBank (collectively, “ Sellers Buyers LSA Cash Purchase Price Also on February 10, 2017, the Company and its subsidiaries, and successor lender entered into a binding letter agreement dated February 10, 2017, which was subsequently amended on March 30, 2017 (as amended, the “ letter agreement 1. the successor lender agreed to forgive our existing secured loan in the approximate principal amount of $17,295,000, and in exchange entered into a secured promissory note (which we refer to as the “ restated secured note 2. we: a. conveyed our oil and gas properties and associated performance and surety bonds in Colorado, Texas, and Nebraska; b. conveyed all of our shares of Oakridge Energy, Inc. (together, the “ conveyed oil and gas assets c. retained our assets in Kansas and continued as a going concern. The Kansas assets currently provide most of our current operating revenue. The restated secured note: a. is secured by a first-priority lien in the Company’s oil and gas producing assets situated in the State of Kansas, b. evidences accrued interest on the $4,500,000 principal balance at a rate of 16% per annum, c. bears interest from and after May 1, 2017, at a rate of 16.0% per annum, d. is pre-payable in full at a discount at any time during the term of the restated secured note upon EnerJex paying $3,300,000 to successor lender, and e. matures and is due and payable in full on November 1, 2017. We have two options to extend the maturity date of the restated secured note by 90 days each (first to January 30, 2018 and then to April 30, 2018), upon payment of extension fees of $100,000 for each extension. So long as we repay the $3,300,000 in indebtedness on or prior to the maturity date, as extended, all other amounts payable under the restated secured note are to be forgiven. The closing occurred on May 10, 2017. As part of the closing procedures and net settlement, we issued a promissory note to Pass Creek Resources LLC in the amount of $105,806. The promissory bears interest at 16% per annum and matured on June 9, 2017. The amount due was not paid on June 9, 2017, but the holder has not provided the Company a notice of default. In connection with the May 10, 2017 closing and in consideration of the satisfaction of $13,425,000 of the amount due under the Credit Agreement, as amended, the Company and certain of its subsidiaries transferred to PCR Holdings LLC, an affiliate of the successor lenders under the Credit Agreement, all of the Company’s oil and gas properties and assets located in Colorado, Texas, and Nebraska, as well as the Company’s shares of Oakridge Energy, Inc. To evidence the Company’s remaining $4,500,000 of indebtedness to PWCM Investment Company IC LLC (“ PWCM RES Round Rock Cibolo Holdings, Successor Lenders New Credit Agreement New Note Our subsidiaries’ obligations under the credit agreement and note are non-recourse and are secured by a first-priority lien in the Company’s and its subsidiaries’ oil properties and assets located in Kansas. The Company was removed as a borrower under the Credit Agreement, but entered into a Guaranty of Recourse Carveouts, pursuant to which the Company guarantees its subsidiaries’ payment of certain fees and expenses due under the Credit Agreement, and may be liable for certain conduct, such as fraud, bad faith, gross negligence, and waste of the Kansas oil properties or assets. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for the next twelve months following the issuance of these financial statements. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Accordingly, the financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Stock Options and Warrants

Stock Options and Warrants	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options and Warrants	Note 3 – Stock Options and Warrants A summary of stock options and warrants is as follows: Options Weighted Warrants Weighted Outstanding December 31, 2016 207,664 $ 9.69 1,904,286 $ 2.75 Granted — — — — Cancelled (50,000 ) — — — Exercised — — — — Outstanding September 30, 2017 157,664 $ 9.69 1,904,286 $ 2.75

Asset Retirement Obligation

Asset Retirement Obligation	9 Months Ended
	Sep. 30, 2017
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligation	Note 4 – Asset Retirement Obligation Our asset retirement obligations relate to the liabilities associated with the abandonment of oil and natural gas wells. The amounts recognized are based on numerous estimates and assumptions, including future retirement costs, inflation rates and credit adjusted risk-free interest rates. The following shows the changes in asset retirement obligations: Asset retirement obligations, December 31, 2016 $ 3,314,191 Release of liabilities ( 1,814,408 ) Accretion 93,498 Asset retirement obligations, September 30, 2017 $ 1,593,281

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Note 5 – Long-Term Debt Senior Secured Credit Facility On October 3, 2011, the Company and DD Energy, Inc., EnerJex Kansas, Inc., Black Sable Energy, LLC and Working Interest, LLC, its subsidiaries (“ Borrowers Bank 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 nine months, as selected by the Borrowers. The margins for all loans are based on a pricing grid ranging from 0.00% to 0.75% for the Base Rate Margin and 2.25% to 3.00% for the Floating Rate Margin based on the Company’s Borrowing Base Utilization Percentage (as defined in the Amended and Restated Credit Agreement). On December 15, 2011, we entered into a First Amendment to Amended and Restated Credit Agreement and Second Amended and Restated Promissory Note in the amount of $50,000,000 with the Bank. The Amendment reflected the addition of Rantoul Partners as an additional Borrower and added as additional security for the loans the assets held by Rantoul Partners. On August 31, 2012, we entered into a Second Amendment to Amended and Restated Credit Agreement with the Bank. The Second Amendment: (i) increased our borrowing base to $7,000,000, (ii) reduced the minimum interest rate to 3.75%, and (ii) added additional new leases as collateral for the loan. On November 2, 2012, we entered into a Third Amendment to Amended and Restated Credit Agreement with the Bank. The Third Amendment (i) increased our borrowing base to $12,150,000, and (ii) clarified certain continuing covenants and provided a limited waiver of compliance with one of the covenants so clarified for the quarter ended December 31, 2011. On January 24, 2013, we entered into a Fourth Amendment to Amended and Restated Credit Agreement, which was made effective as of December 31, 2012, with the Bank. The Fourth Amendment reflected 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, we entered into a Fifth Amendment to the Amended and Restated Credit Agreement. The Fifth Amendment reflected the following changes: (i) an expanded principal commitment amount of the Bank to $100,000,000, (ii) an increase in our Borrowing Base to $38,000,000, (iii) the addition of Black Raven Energy, Inc., our wholly-owned subsidiary, to the Credit Agreement as a borrower party, (iv) the addition of certain collateral and security interests in favor of the Bank, and (v) the reduction of our current interest rate to 3.30%. On November 19, 2013, we entered into a Sixth Amendment to the Amended and Restated Credit Agreement. The Sixth Amendment reflected the following changes: (i) the addition of Iberia Bank as a participant in our credit facility (together with the Bank, the “ Banks On May 22, 2014, we entered into a Seventh Amendment to the Amended and Restated Credit Agreement. The Seventh Amendment reflected 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 reflected 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. On April 29, 2015, we entered into a Ninth Amendment to the Amended and Restated Credit Agreement. In the Ninth Amendment, the Banks (i) re-determined the Borrowing Base based upon our recent Reserve Report dated January 1, 2015, (ii) imposed affirmative obligations on the Company to use a portion of proceeds received with regard to future sales of securities or certain assets to repay the loan, (iii) consented to non-compliance by the Company with certain terms of the Credit Agreement, (iv) waived certain provisions of the Credit Agreement, and (v) agreed to certain other amendments to the Credit Agreement. On May 1, 2015, the Borrowers and the Banks entered into a Letter Agreement to clarify that up to $1,000,000 in proceeds from any potential future securities offering will be unencumbered by the Banks’ liens as described in the Credit Agreement through November 1, 2015, and that, until November 1, 2015, such proceeds would not be subject to certain provisions in the Credit Agreement prohibiting the Company from declaring and paying dividends that may be due and payable to holders of securities issued in such potential offerings or issued prior to the Letter Agreement. On August 12, 2015, we entered into a Tenth Amendment to the Amended and Restated Credit Agreement. The Tenth Amendment reflected the following changes, it: (i) allowed the Company to sell certain oil assets in Kansas, (ii) allowed for approximately $1,300,000 of the proceeds from the sale to be reinvested in Company owned oil and gas projects, and (iii) provided that not less than $1,500,000 from the proceeds of the sale would be applied to outstanding loan balances. On November 13, 2015, the Company entered into an Eleventh Amendment to the Amended and Restated Credit Agreement. The Eleventh Amendment reflected the following changes: (i) waived certain provisions of the Credit Agreement, (ii) suspended certain hedging requirements, and (iii) amended other provisions of the Credit Agreement. On April 1, 2016, the Company informed the Banks that it would cease making the mandatory monthly borrowing base reduction payments and did not make the required April 1, 2016 payment. The Company made its mandatory quarterly interest payment on April 6, 2016 and on April 7, 2016 entered into a Forbearance Agreement whereby the Banks agreed to not exercise remedies and rights afforded it under the Amended and Restated Credit Agreement for thirty days. On May 31, 2016, the Company and the Banks amended the Forbearance Agreement to extend the forbearance period to August 31, 2016. On July 29, 2016, the Company and the Banks entered into a Third Forbearance Agreement which extended the forbearance period to October 1, 2016. Upon the expiration of the Third Forbearance agreement, the Company did not enter into a fourth Forbearance Agreement. Also, at that time the Company discontinued payment of interest on its outstanding loan obligations with the Banks. On February 10, 2017, the Company and the other Sellers entered into and completed the transactions contemplated by the LSA, described in greater detail in “Part I” – “Item 1 Financial Statements” of this report above under “ Note 2 – Going Concern Financing Transactions Below is a table showing the reconciliation of the gain on LSA as set forth on the statement of operations for the nine months ended September 30, 2017: Forgiveness of existing secured loan $ 17,925,000 Forgiveness of accrued interest 1,306,801 Issuance of secured promissory note (4,500,000 ) Transfer of oil and gas properties (1,902,726 ) Transfer of gas gathering system (1,772,588 ) Transfer of shares of Oakridge Energy, Inc. (210,990 ) Transfer of ARO liability 1,814,407 Transfer of other assets (1,159,7 80 ) Gain on LSA $ 11,500,124 To evidence the Company’s remaining $4,500,000 of indebtedness to PWCM Investment Company IC LLC (“ PWCM RES Round Rock Cibolo Holdings, Successor Lenders New Credit Agreement New Note Our subsidiaries’ obligations under the credit agreement and note are non-recourse and are secured by a first-priority lien in the Company’s and the subsidiaries’ oil properties and assets located in Kansas. The Company was removed as a borrower under the Credit Agreement, but entered into a Guaranty of Recourse Carveouts, pursuant to which the Company guarantees the Subsidiaries’ payment of certain fees and expenses due under the Credit Agreement, and may be liable for certain conduct, such as fraud, bad faith, gross negligence, and waste of the Kansas oil properties or assets. As of September 30, 2017, the principal balance of $105,806 along with accrued interest remained due under the promissory note with Pass Creek Resources LLC.

Commitments & Contingencies

Commitments & Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 6 – Commitments & Contingencies As of September 30, 2017, the Company had an outstanding irrevocable letter of credit in the amount of $50,000 issued in favor of the Texas Railroad Commission. The letter of credit is required by the Texas Railroad Commission for all companies operating in the state of Texas with production greater than limits they prescribe. Rent expense for the nine months ended September 30, 2017 and 2016 was approximately $75,000 and $104,000, respectively. Future non-cancellable minimum lease payments are approximately $35,000 for the remainder of 2017, $91,000 for 2018, and $77,000 for 2019. We, as a lessee and operator of oil and gas properties, are subject to various federal, state and local laws and regulations relating to discharge of materials into, and protection of, the environment. These laws and regulations may, among other things, impose liability on the lessee under an oil and gas lease for the cost of pollution clean-up resulting from operations and subject to the lessee to liability for pollution damages. In some instances, the Company may be directed to suspend or cease operations in the affected area. As of September 30, 2017, we have no reserve for environmental remediation and are not aware of any environmental claims. On September 23, 2016, the Company, American Standard Energy Corporation, Baylor Operating LLC, Bernard Given and Loeb & Loeb LLP were sued by Geronimo Holdings Corporation and Randal Capps in the 143rd Judicial District Court located in Pecos, Texas. The suit among other things, seeks damages for an alleged unlawful sale of properties in Crockett County, Texas and for alleged unpaid royalties. The Company believes the suit is without merit and will vigorously defend itself in connection with this proceeding. The Company has faith that it will prevail and at September 30, 2017, no reserve for potential losses arising from this matter has been recorded. Additionally, under its agreement with Baylor Operating LLC, Baylor has agreed to indemnify and defend the Company against all lawsuits and claims including this one. On April 26, 2016, C&F Ranch, LLC sued the Company in Allen County, Kansas for alleged breach of contract related to the rental of certain lands located on the C&F Ranch. The Company believes that it has paid all rents owed to C&F Ranch LLC and will vigorously defend itself in connection with this proceeding. The Company has faith that it will prevail and at September 30, 2017, no reserve for potential losses arising from this matter has been recorded.

Impairment of Oil and Gas Prope

Impairment of Oil and Gas Properties	9 Months Ended
	Sep. 30, 2017
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Impairment of Oil and Gas Properties	Note 7 – Impairment of Oil and Gas Properties Pursuant to full cost accounting rules, the Company must perform a ceiling test each quarter on its proved oil and natural gas assets within each separate cost center. All of the Company’s costs are included in one cost center as all of the Company’s operations are located in the United States. The Company’s ceiling test was calculated using trailing twelve-month, unweighted-average first-day-of-the-month prices for oil and natural gas as of September 30, 2017, which were based on a West Texas Intermediate oil price of $42.46 per Bbl and a Henry Hub natural gas price of $2.63 per Mcf (adjusted for basis and quality differentials), respectively. For the nine-month period ended September 30, 2017, the Company’s present value of future estimate cash flows discounted at 10%, exceeded the net book value of those assets. Accordingly, the Company did not record an impairment charge. This test resulted in a pre-tax write-down of $7,444,597 for the nine-month period ended September 30, 2016.

Equity Transactions

Equity Transactions	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Equity Transactions	Note 8 – Equity Transactions We accrued dividends of $879,608 and $2,638,823 for our Series A Preferred Stock for the three and nine months ended September 30, 2017, respectively. At September 30, 2017, accumulated dividends payable to the Series A Preferred Stock holders totaled $6,039,972. On April 27, 2017, the Company entered into an Additional Issuance Agreement with Alpha Capital Anstalt, for the purchase of 300 restricted shares of its newly designated Series C Convertible Preferred Stock in consideration for $300,000, with an option to purchase an additional 200 shares of Series C Convertible Preferred Stock for an aggregate purchase price of $200,000. As of September 30, 2017, the Company had issued 300 shares of Series C Convertible Preferred Stock for an aggregate purchase price of $300,000. In addition, during the nine months ending September 30, 2017, the Company had received $150,000 from Alpha Capital Anstalt to purchase an additional 150 shares of Series C Convertible Preferred Stock. As of September 30, 2017, the additional 150 shares of Series C Convertible Preferred Stock have not been issued and are reflected as Series C Convertible Preferred Stock Issuable on the balance sheet in the aggregate amount of $150,000. The Company recorded a beneficial conversion feature of $208,500 based on the fair value of the common stock and the conversion rate as of the date of issuance. This amount was recorded as a deemed distribution for the nine months ended September 30, 2017. The Series C Convertible Preferred Stock (“ Series C Preferred Stock The Series C Preferred Stock includes a beneficial ownership limitation preventing conversion of shares of Series C Preferred Stock into more than 9.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock upon conversion of the Series C Preferred Stock. In addition, the Company may not convert the Series C Preferred Stock into a number of shares of common stock which, when aggregated with any shares of common stock issued on or after the original issue date and prior to such conversion date in connection with any conversion of Series C Preferred Stock would exceed 1,683,944 shares of common stock (19.99% of the outstanding shares as of the original issue date), subject to adjustment for forward and reverse stock splits, recapitalizations and the like. In the event conversion of the Series C Preferred Stock is limited pursuant to these provisions, each holder shall be entitled to a pro rata portion of the issuable maximum. Pursuant to the anti-dilutive provisions of the Securities Purchase Agreement dated as of March 11, 2015, which requires the Company to issue additional shares of common stock to adjust the purchase price paid by purchasers in the Company’s March 2015 offering, in the event any shares are sold (or convertible securities are sold), with a price per share less than the purchase price paid by the March 2015 purchasers subject to the terms of the Securities Purchase Agreement, Alpha Capital Anstalt received 597,461 shares of common stock. In addition, the Series B Convertible Preferred Stock conversion ratio equal to approximately 571 shares of common stock for each one (1) share of Preferred Stock reset to approximately 3,333 shares of common stock for each one (1) share of Series B Convertible Preferred Stock, to be consistent with the terms of the Series C Convertible Preferred Stock, pursuant to the anti-dilution requirements of the Series B Convertible Preferred Stock. During the nine months ending September 30, 2017, Alpha Capital Anstalt converted 390 shares of Series B Convertible Preferred Stock into 1,300,000 shares of common stock. See also the description of the Alpha Capital Anstalt warrant exercises which occurred subsequent to September 30, 2017, as described in “ Note 10 – Subsequent Events

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Note 9 – Related Party Transaction Effective May 1, 2017, the Company entered into an agreement with Camber Energy, Inc., pursuant to which EnerJex will be responsible for performing certain general and administrative services for Camber for a fee of $150,000 per month. This fee includes payments to vendors who provide accounting services to Camber. Richard E. Menchaca, a member of the Board of Directors of the Company, is a co-guarantor of bank debt held by Camber Energy, Inc. and Robert Schleizer, our newly appointed Interim Chief Financial Officer is also the Chief Financial Officer and a Director of Camber Energy, Inc.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 10 – Subsequent Events See the subsequent events in “ Note 2 – Going Concern On October 23, 2017, Alpha Capital Anstalt exercised warrants to purchase 1,000,000 shares of our common stock for an aggregate exercise price of $300,000 (or $0.30 per share), pursuant to the terms of such warrants, and was issued 1,000,000 shares of common stock. On November 6, 2017, Alpha Capital Anstalt exercised warrants to purchase 771,428 shares of our common stock for an aggregate exercise price of $231,429 (or $0.30 per share), pursuant to the terms of such warrants, and was issued 771,428 shares of common stock. We have reviewed all material events through the date of this report in accordance with ASC 855-10.

Stock Options and Warrants (Tab

Stock Options and Warrants (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock options	A summary of stock options and warrants is as follows: Options Weighted Warrants Weighted Outstanding December 31, 2016 207,664 $ 9.69 1,904,286 $ 2.75 Granted — — — — Cancelled (50,000 ) — — — Exercised — — — — Outstanding September 30, 2017 157,664 $ 9.69 1,904,286 $ 2.75

Asset Retirement Obligation (Ta

Asset Retirement Obligation (Tables)	9 Months Ended
	Sep. 30, 2017
Asset Retirement Obligation Disclosure [Abstract]
Schedule of changes in asset retirement obligations	The following shows the changes in asset retirement obligations: Asset retirement obligations, December 31, 2016 $ 3,314,191 Release of liabilities ( 1,814,408 ) Accretion 93,498 Asset retirement obligations, September 30, 2017 $ 1,593,281

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of the reconciliation of the gain on LSA to statement of operations	Below is a table showing the reconciliation of the gain on LSA as set forth on the statement of operations for the nine months ended September 30, 2017: Forgiveness of existing secured loan $ 17,925,000 Forgiveness of accrued interest 1,306,801 Issuance of secured promissory note (4,500,000 ) Transfer of oil and gas properties (1,902,726 ) Transfer of gas gathering system (1,772,588 ) Transfer of shares of Oakridge Energy, Inc. (210,990 ) Transfer of ARO liability 1,814,407 Transfer of other assets (1,159,7 80 ) Gain on LSA $ 11,500,124

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 10, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	May 10, 2017	May 01, 2017
Net Income (Loss) Attributable to Parent, Total		$ (318,635)	$ (1,694,404)	$ 9,614,452	$ (10,849,132)
Percentage of converted right				85.00%
Amount of fraud intentional misrepresentation				$ 350,000
Approved of investors issued and outstanding				19.90%
Face amount	$ 17,295,000
Number of days from closing	5 days
Return on cash purchase price (percent)	150.00%
Series A Preferred Stock [Member]
Accrued unpaid dividends		6,039,972		$ 6,039,972
Accrued of dividends		$ 241,599		241,599
Merger Agreement [Member]
Amount of working capital				400,000
Payment of non-refundable fee				50,000
Common stock of deposit				$ 1,215,278
Merger Agreement [Member] | Series A Preferred Stock [Member]
Percentage of converted right				15.00%
Percent of voting right		66.70%		66.70%
Cortland Capital Market Services LLC [Member] | Second Amended and Restated Credit Agreement [Member]
Amount of indebtedness						$ 4,500,000
Restated Secured Note [Member]
Face amount	$ 4,500,000
Debt Instrument, Interest Rate, Stated Percentage	16.00%						16.00%
Unamortized discount	$ 3,300,000
Debt Instrument fees	$ 100,000
16% Promissory Note Due on June 9 2017[Member] | Pass Creek Resources LLC [Member]
Face amount		$ 105,806		$ 105,806		105,806
New Note [Member] | New Credit Agreement [Member]
Face amount						$ 3,300,000
IberiaBank [Member]
Percent of payment allocation (percent)	34.21053%
TCB [Member]
Percent of payment allocation (percent)	65.78947%

Stock Options and Warrants (Det

Stock Options and Warrants (Details)	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Options
Options Outstanding, Beginning Balance	207,664
Options Cancelled	(50,000)
Options Outstanding, Ending Balance	157,664
Weighted Avg. Exercise Price
Weighted Avg. Exercise Price Outstanding, Beginning Balance | $ / shares	$ 9.69
Weighted Avg. Exercise Price Outstanding, Ending balance | $ / shares	$ 9.69
Warrants
Warrants Outstanding, Beginning Balance	1,904,286
Warrants Outstanding, Ending Balance	1,904,286
Weighted Avg. Exercise Price
Weighted Avg. Exercise Price Outstanding, Beginning Balance | $ / shares	$ 2.75
Weighted Avg. Exercise Price Outstanding, Ending balance | $ / shares	$ 2.75

Asset Retirement Obligation (De

Asset Retirement Obligation (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations, Beginning	$ 3,314,191
Release of liabilities	(1,814,408)
Accretion	93,498	$ 169,110
Asset retirement obligations, Ending	$ 1,593,281

Long-Term Debt (Details)

Long-Term Debt (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Debt Disclosure [Abstract]
Forgiveness of existing secured loan	$ 17,925,000
Forgiveness of accrued interest	1,306,801
Issuance of secured promissory note	(4,500,000)
Transfer of oil and gas properties	(1,902,726)
Transfer of gas gathering system	(1,772,588)
Transfer of shares of Oakridge Energy, Inc.	(210,990)
Transfer of ARO liability	1,814,407
Transfer of other assets	(1,159,780)
Gain on loan sale agreement	$ 11,500,124

Long-Term Debt (Details Narrati

Long-Term Debt (Details Narrative) - USD ($)

Aug. 12, 2015

May 22, 2014

Sep. 30, 2013

Sep. 30, 2017

May 10, 2017

May 01, 2017

Feb. 10, 2017

May 01, 2015

Aug. 15, 2014

Apr. 16, 2013

Nov. 02, 2012

Aug. 31, 2012

Dec. 15, 2011

Debt Instrument [Line Items]

Line of credit facility, maximum borrowing capacity

$ 19,500,000

Proceeds from potential future securities offering unencumbered by Banks' Liens

$ 1,000,000

Face amount

$ 17,295,000

Cortland Capital Market Services LLC [Member] | Second Amended and Restated Credit Agreement [Member]

Debt Instrument [Line Items]

Amount of indebtedness

$ 4,500,000

Federal Funds Rate [Member] | Line Of Credit [Member]

Debt Instrument [Line Items]

Debt instrument interest rate, margin

0.50%

Base Rate [Member] | Line Of Credit [Member] | Maximum [Member]

Debt Instrument [Line Items]

Debt instrument interest rate, margin

0.75%

Base Rate [Member] | Line Of Credit [Member] | Minimum [Member]

Debt Instrument [Line Items]

Debt instrument interest rate, margin

0.00%

Floating Rate [Member] | Line Of Credit [Member] | Maximum [Member]

Debt Instrument [Line Items]

Debt instrument interest rate, margin

3.00%

Floating Rate [Member] | Line Of Credit [Member] | Minimum [Member]

Debt Instrument [Line Items]

Debt instrument interest rate, margin

2.25%

Restated Secured Note [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

16.00%

16.00%

Face amount

$ 4,500,000

Unamortized discount

3,300,000

Debt Instrument fees

$ 100,000

New Note [Member] | New Credit Agreement [Member]

Debt Instrument [Line Items]

Face amount

3,300,000

16% Promissory Note Due on June 9 2017[Member] | Pass Creek Resources LLC [Member]

Debt Instrument [Line Items]

Face amount

$ 105,806

$ 105,806

Tenth Amendment [Member]

Debt Instrument [Line Items]

Proceed from sale to outstanding loan balances

$ 1,300,000

Proceeds from sale of oil and gas property and equipment

$ 1,500,000

Seven Amendment [Member] | Series A Cumulative Redeemable Perpetual Preferred Stock [Member]

Debt Instrument [Line Items]

Percentage of dividend rate

10.00%

Preferred stock shares issued

850,000

Fifth Amendment [Member]

Debt Instrument [Line Items]

Line of credit facility, maximum borrowing capacity

$ 100,000,000

Line of credit facility, current borrowing capacity

$ 38,000,000

Fifth Amendment [Member] | Federal Funds Rate [Member] | Line Of Credit [Member]

Debt Instrument [Line Items]

Debt instrument interest rate, margin

3.30%

Eight amendment [Member] | Maximum [Member]

Debt Instrument [Line Items]

Line of credit facility, maximum borrowing capacity

$ 40,000,000

Eight amendment [Member] | Minimum [Member]

Debt Instrument [Line Items]

Line of credit facility, maximum borrowing capacity

$ 38,000,000

Third Amendment [Member]

Debt Instrument [Line Items]

Line of credit facility, maximum borrowing capacity

$ 12,150,000

Second Amendment [Member]

Debt Instrument [Line Items]

Line of credit facility, maximum borrowing capacity

$ 7,000,000

Second Amendment [Member] | Minimum [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Stated Percentage

3.75%

First Amendment [Member] | Rantoul Partners [Member]

Debt Instrument [Line Items]

Line of credit facility, maximum borrowing capacity

$ 50,000,000

Commitments & Contingencies (De

Commitments & Contingencies (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Commitments and Contingencies Disclosure [Line Items]
Operating Leases, Rent Expense	$ 75,000	$ 104,000
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year	35,000
Operating Leases, Future Minimum Payments, Due in Two Years	91,000
Operating Leases, Future Minimum Payments, Due in Three Years	77,000
Texas Railroad Commission [Member]
Commitments and Contingencies Disclosure [Line Items]
Letters of Credit Outstanding, Amount	$ 50,000

Impairment of Oil and Gas Pro25

Impairment of Oil and Gas Properties (Details Narrative)	3 Months Ended	9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2017bbl	Sep. 30, 2016USD ($)
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Oil Price Per Barrel		42.46
Natural Gas Price Per MMBtu		2.63
Write-down of oil and gas properties | $	$ 800,000		$ 7,444,597
Future Estimate Cash Flows Discount Percentage		10.00%

Equity Transactions (Details Na

Equity Transactions (Details Narrative) - USD ($)	Apr. 27, 2017	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016	Mar. 11, 2015
Deemed distribution for beneficial conversion of preferred stock			$ 208,500
Series A Preferred Stock [Member]
Preferred Stock, shares outstanding		938,248	938,248	938,248
Accumulated dividends		$ 241,599	$ 241,599
Dividends declared		879,608	2,638,823
Accrued dividend payable		$ 6,039,972	$ 6,039,972
Series B Convertible Preferred Stock [Member]
Preferred Stock, shares outstanding		1,374	1,374	1,764
Common Stock [Member] | Alpha Capital Anstalt [Member]
Stock issued upon conversion of preferred stock		1,300,000
Series C Convertible Preferred Stock [Member]
Series C convertible preferred stock issuable		$ 150,000	$ 150,000
Preferred stock, shares issuable		150	150
Preferred Stock, shares outstanding		300	300	0
Liquidation preference value		$ 1,000	$ 1,000
Conversion price		0.30	0.30
Redemption price		$ 1,000	$ 1,000
Beneficial ownership limitation (percent)			9.99%
Convertible shares		3,333	3,333
Series C Convertible Preferred Stock [Member] | Maximum [Member]
Preferred Stock, shares outstanding		1,683,944	1,683,944
Series C Convertible Preferred Stock [Member] | Alpha Capital Anstalt [Member]
Issuance of stock (shares)		150	300
Issuance of stock		$ 150,000	$ 300,000
Beneficial conversion feature of preferred stock			$ 208,500
Securities Purchase Agreement [Member] | Series B Convertible Preferred Stock [Member]
Convertible shares		3,333	3,333		571
Preferred stock converted		390
Securities Purchase Agreement [Member] | Common Stock [Member] | Alpha Capital Anstalt [Member]
Issuance of stock (shares)		597,461
Additional Issuance Agreement - Option [Member] | Series C Convertible Preferred Stock [Member] | Alpha Capital Anstalt [Member]
Issuance of stock (shares)	200
Issuance of stock	$ 200,000
Additional Issuance Agreement [Member] | Series C Convertible Preferred Stock [Member] | Alpha Capital Anstalt [Member]
Issuance of stock (shares)	300
Issuance of stock	$ 300,000

Related Party Transaction (Deta

Related Party Transaction (Details Narrative)	May 01, 2017USD ($)
Camber Energy Inc [Member]
Related Party Transaction [Line Items]
Fees	$ 150,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($)	Nov. 06, 2017	Oct. 23, 2017
Exercise of warrants	$ 231,429	$ 300,000
Exercise of warrants, shares	771,428	1,000,000
Exercised Price	$ 0.30	$ 0.30