Carbon Energy (CRBO) 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. 10, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Carbon Natural Gas Co
Entity Central Index Key	86,264
Trading Symbol	CRBO
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		6,059,640

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 1,119	$ 858
Accounts receivable:
Revenue	2,349	2,369
Trade receivables	1,023	330
Receivable - related party	346
Other	39	1,921
Commodity derivative asset	190
Prepaid expense, deposits and other current assets	585	305
Total current assets	5,651	5,783
Oil and gas properties, full cost method of accounting;
Proved, net	32,059	33,212
Unproved	1,926	1,999
Other property and equipment, net	773	325
Total property and equipment, net	34,758	35,536
Investments in affiliates (note 5)	14,245	668
Other long-term assets	847	725
Total assets	55,501	42,712
Current liabilities:
Accounts payable and accrued liabilities (note 9)	8,093	9,121
Firm transportation contract obligations (note 12)	234	561
Commodity derivative liability		1,341
Total current liabilities	8,327	11,023
Non-current liabilities:
Firm transportation contract obligations (note 12)	166	261
Commodity derivative liability		591
Ad valorem taxes payable	561	628
Warrant derivative liability	4,600
Asset retirement obligations (note 2)	5,120	5,120
Notes payable (note 6)	22,140	16,230
Total non-current liabilities	32,587	22,716
Commitments (note 12)
Stockholders' equity:
Common stock, $0.01 par value; authorized 200,000,000 shares, 5,627,589 and 5,482,673 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	56	55
Additional paid-in capital	58,339	57,588
Accumulated deficit	(45,701)	(50,535)
Total Carbon stockholders' equity	12,694	7,108
Non-controlling interests	1,893	1,865
Total stockholders' equity	14,587	8,973
Total liabilities and stockholders' equity	$ 55,501	$ 42,712

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Balance Sheets [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	5,627,589	5,482,673
Common stock, shares outstanding	5,627,589	5,482,673

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Natural gas sales	$ 3,689	$ 1,431	$ 11,706	$ 3,484
Oil sales	997	765	3,189	2,201
Commodity derivative (loss) gain	(499)	160	2,642	(474)
Other income	8	9	28	10
Total revenue	4,195	2,365	17,565	5,221
Expenses:
Lease operating expenses	1,605	622	4,311	1,864
Transportation costs	556	364	1,571	1,121
Production and property taxes	331	184	1,186	443
General and administrative	2,129	2,327	5,623	5,402
General and administrative - related party reimbursement	(423)		(723)
Depreciation, depletion and amortization	613	393	1,847	1,332
Accretion of asset retirement obligations	77	35	232	105
Impairment of oil and gas properties				4,299
Total expenses	4,888	3,925	14,047	14,566
Operating (loss) income	(693)	(1,560)	3,518	(9,345)
Other income and (expense):
Interest expense	(299)	(38)	(821)	(141)
Warrant derivative gain	811		2,494
Equity investment loss	(285)	(4)	(285)	(10)
Other	20		20	17
Total other income (expense)	247	(42)	1,408	(134)
Income (loss) before income taxes	(446)	(1,602)	4,926	(9,479)
Provision for income taxes
Net income (loss) before non-controlling interests	(446)	(1,602)	4,926	(9,479)
Net income (loss) attributable to non-controlling interests	16	(3)	92	(435)
Net income (loss) attributable to non-controlling interests	$ (462)	$ (1,599)	$ 4,834	$ (9,044)
Net income (loss) per common share:
Basic	$ (0.08)	$ (0.29)	$ 0.87	$ (1.66)
Diluted	$ (0.08)	$ (0.29)	$ 0.36	$ (1.66)
Weighted average common shares outstanding:
Basic	5,628	5,507	5,579	5,455
Diluted	5,628	5,507	6,486	5,455

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Non-Controlling Interests	Accumulated Deficit
Beginning balances at Dec. 31, 2016	$ 8,973	$ 55	$ 57,588	$ 1,865	$ (50,535)
Beginning balances, in shares at Dec. 31, 2016		5,483
Stock-based compensation	752		732
Restricted stock vested
Restricted stock vested, shares		65
Performance units vested		$ 1	(1)
Performance units vested, shares		80
Non-controlling interest distributions, net	(64)			(64)
Net income	4,926			92	4,834
Ending balances at Sep. 30, 2017	$ 14,587	$ 56	$ 58,339	$ 1,893	$ (45,701)
Ending balances, in shares at Sep. 30, 2017		5,628

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income (loss)	$ 4,926	$ (9,479)
Items not involving cash:
Depreciation, depletion and amortization	1,847	1,332
Accretion of asset retirement obligations	232	105
Impairment of oil and gas properties		4,299
Unrealized commodity derivative (gain) loss	(2,179)	823
Warrant derivative unrealized gain	(2,494)
Stock-based compensation expense	752	2,037
Investment in affiliates (gain) loss	315	10
Amortization of debt issuance costs	131
Other	(108)	(8)
Net change in:
Accounts receivable	863	43
Prepaid expenses, deposits and other current assets	(280)	27
Accounts payable, accrued liabilities and firm transportation contract obligations	(1,425)	118
Net cash provided by (used in) operating activities	2,580	(693)
Cash flows from investing activities:
Development and acquisition of properties and equipment	(1,268)	(328)
Proceeds from sale of oil and gas properties and other assets	16	8
Other long-term assets	(56)	57
Investment in affiliates	(6,798)	275
Net cash (used in) provided by investing activities	(8,106)	12
Cash flows from financing activities:
Proceeds from notes payable	7,210	707
Payments on notes payable	(1,300)	(200)
Debt issuance costs	(59)
Distributions to non-controlling interests	(64)	(3)
Net cash provided by financing activities	5,787	504
Net increase (decrease) in cash and cash equivalents	261	(177)
Cash and cash equivalents, beginning of period	858	305
Cash and cash equivalents, end of period	$ 1,119	$ 128

Organization

Organization	9 Months Ended
	Sep. 30, 2017
Organization [Abstract]
Organization	Note 1 – Organization The Company’s business is comprised of the assets and properties of Carbon Natural Gas Company and its subsidiaries as well as its equity investments in Carbon Appalachian Company, LLC (“Carbon Appalachia”) and Carbon California Company, LLC (“Carbon California”). Appalachian and Illinois Basin Operations In the Appalachian and Illinois Basins, Nytis Exploration Company, LLC (“Nytis LLC”) conducts operations for the Company and Carbon Appalachia. California Operations In California, Carbon California Operating Company, LLC (“CCOC”), conducts Carbon California’s operations. Collectively, Carbon Natural Gas Company, CCOC, Nytis Exploration (USA) Inc. (“Nytis USA”) and Nytis LLC are referred to as the Company.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited Consolidated Financial Statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of September 30, 2017 and the Company’s results of operations and cash flows for the three and nine months ended September 30, 2017 and 2016. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the full year because of the impact of fluctuations in prices received for oil and natural gas, natural production declines, the uncertainty of exploration and development drilling results and other factors. For a more complete understanding of the Company’s operations, financial position and accounting policies, the unaudited Consolidated Financial Statements and the notes thereto should be read in conjunction with the Company’s audited Consolidated Financial Statements for the year ended December 31, 2016 filed on Form 10-K with the Securities and Exchange Commission (“SEC”). In the course of preparing the unaudited Consolidated Financial Statements, management makes various assumptions, judgments and estimates to determine the reported amount of assets, liabilities, revenue and expenses and in the disclosures of commitments and contingencies. Changes in these assumptions, judgments and estimates will occur as a result of the passage of time and the occurrence of future events and accordingly, actual results could differ from amounts initially established. Principles of Consolidation The Consolidated Financial Statements include the accounts of Carbon, CCOC, Nytis USA and its consolidated subsidiary, Nytis LLC. Carbon owns 100% of Nytis USA and CCOC. Nytis USA owns approximately 99% of Nytis LLC. Nytis LLC also holds an interest in 64 oil and gas partnerships. For partnerships where the Company has a controlling interest, the partnerships are consolidated. The Company is currently consolidating on a pro-rata basis 46 partnerships. In these instances, the Company reflects the non-controlling ownership interest in partnerships and subsidiaries as non-controlling interests on its Consolidated Statements of Operations and reflects the non-controlling ownership interests in the net assets of the partnerships as non-controlling interests within stockholders’ equity on its Consolidated Balance Sheets. All significant intercompany accounts and transactions have been eliminated. In accordance with established practice in the oil and gas industry, the Company’s unaudited Consolidated Financial Statements also include its pro-rata share of assets, liabilities, income, lease operating costs and general and administrative expenses of the oil and gas partnerships in which the Company has a non-controlling interest. Non-majority owned investments that do not meet the criteria for pro-rata consolidation are accounted for using the equity method when the Company has the ability to significantly influence the operating decisions of the investee. When the Company does not have the ability to significantly influence the operating decisions of an investee, the cost method is used. All transactions, if any, with investees have been eliminated in the accompanying unaudited Consolidated Financial Statements. Accounting for Oil and Gas Operations The Company uses the full cost method of accounting for oil and gas properties. Accordingly, all costs incidental to the acquisition, exploration and development of oil and gas properties, including costs of undeveloped leasehold, dry holes and leasehold equipment, are capitalized. Overhead costs incurred that are directly identified with acquisition, exploration and development activities undertaken by the Company for its own account, and which are not related to production, general corporate overhead or similar activities, are also capitalized. Unproved properties are excluded from amortized capitalized costs until it is determined if proved reserves can be assigned to such properties. The Company assesses its unproved properties for impairment at least annually. Significant unproved properties are assessed individually. Capitalized costs are depleted by an equivalent unit-of-production method, converting oil to gas at the ratio of one barrel of oil to six thousand cubic feet of natural gas. Depletion is calculated using capitalized costs, including estimated asset retirement costs, plus the estimated future expenditures (based on current costs) to be incurred in developing proved reserves, net of estimated salvage values. No gain or loss is recognized upon disposal of oil and gas properties unless such disposal significantly alters the relationship between capitalized costs and proved reserves. All costs related to production activities, including work-over costs incurred solely to maintain or increase levels of production from an existing completion interval, are charged to expense as incurred. The Company performs a ceiling test quarterly. The full cost ceiling test is a limitation on capitalized costs prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is not a fair value based measurement, rather it is a standardized mathematical calculation. The ceiling test provides that capitalized costs less related accumulated depletion and deferred income taxes may not exceed the sum of (1) the present value of future net revenue from estimated production of proved oil and gas reserves using the un-weighted arithmetic average of the first-day-of-the month price for the previous twelve month period, excluding the future cash outflows associated with settling asset retirement obligations that have been accrued on the balance sheet, at a discount factor of 10%; plus (2) the cost of properties not being amortized, if any; plus (3) the lower of cost or estimated fair value of unproved properties included in the costs being amortized, if any; less (4) income tax effects related to differences in the book and tax basis of oil and gas properties. Should the net capitalized costs exceed the sum of the components noted above, a ceiling test write-down would be recognized to the extent of the excess capitalized costs. Such impairments are permanent and cannot be recovered in future periods even if the sum of the components noted above exceeds the capitalized costs in future periods. For the three and nine months ended September 30, 2017, the Company did not recognize a ceiling test impairment as the Company’s full cost pool did not exceed the ceiling limitations. For the three months ended September 30, 2016, the Company did not recognize a ceiling test impairment as the Company’s full cost pool did not exceed the ceiling limitations. For the nine months ended September 30, 2016, the Company recognized a ceiling test impairment of approximately $4.3 million as the Company’s full cost pool exceeded its ceiling limitations. Future declines in oil and natural gas prices, and increases in future operating expenses and future development costs could result in additional impairments of our oil and gas properties in future periods. Impairment charges are a non-cash charge and accordingly, do not affect cash flow, but adversely affect our net income and stockholders’ equity. Investments in Affiliates Investments in non-consolidated affiliates are accounted for under either the cost or equity method of accounting, as appropriate. The cost method of accounting is generally used for investments in affiliates in which the Company has less than 20% of the voting interests of a corporate affiliate or less than a 3% to 5% interest of a partnership or limited liability company and does not have significant influence. Investments in non-consolidated affiliates, accounted for using the cost method of accounting, are recorded at cost and impairment assessments for each investment are made annually to determine if a decline in the fair value of the investment, other than temporary, has occurred. A permanent impairment is recognized if a decline in the fair value occurs. If the Company holds between 20% and 50% of the voting interest in non-consolidated corporate affiliates or generally greater than a 3% to 5% interest of a partnership or limited liability company and exerts significant influence or control (e.g., through its influence with a seat on the board of directors or management of operations), the equity method of accounting is generally used to account for the investment. Equity method investments will increase or decrease by the Company’s share of the affiliate’s profits or losses and such profits or losses are recognized in the Company’s Consolidated Statements of Operations. For its equity method investments in Carbon Appalachia and Carbon California, the Company uses the hypothetical liquidation at book value method to recognize its share of the affiliate’s profits or losses. The Company reviews equity method investments for impairment whenever events or changes in circumstances indicate that an other than temporary decline in value has occurred. Related Party Transactions On February 15, 2017, the Company entered into a limited liability company agreement of Carbon California to make investments in California oil and gas projects. Pursuant to the limited liability agreement, Carbon California reimbursed the Company for (i) due diligence costs incurred on behalf of Carbon California, (ii) transaction-related costs and (iii) management-related costs in connection with its role as manager of Carbon California. Management-related reimbursements were $150,000 and $375,000 for the three months ended September 30, 2017 and period February 15, 2017 (inception) through September 30, 2017, respectively. On April 3, 2017, the Company entered into the limited liability company agreement of Carbon Appalachia to make investments in Appalachia oil and gas projects. Pursuant to the limited liability agreement, Carbon Appalachia reimbursed the Company for (i) due diligence costs incurred on behalf of Carbon Appalachia, (ii) transaction-related costs and (iii) management-related costs in connection with its role as manager of Carbon Appalachia. Management-related reimbursements were approximately $273,000 and $348,000 for the three months ended September 30, 2017 and period April 3, 2017 (inception) through September 30, 2017, respectively. As of September 30, 2017, Carbon Appalachia owes the Company approximately $273,000 in connection with its role as manager. Warrant Derivative Liability The Company issued warrants related to investments in Carbon California and Carbon Appalachia. The Company accounts for these warrants in accordance with guidance contained in Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging Asset Retirement Obligations The Company’s asset retirement obligations (“ARO”) relate to future costs associated with the plugging and abandonment of oil and gas wells, removal of equipment and facilities from leased acreage and returning such land to its original condition. The fair value of a liability for an ARO is recorded in the period in which it is incurred and the cost of such liability is recorded as an increase in the carrying amount of the related long-lived asset by the same amount. The liability is accreted each period and the capitalized cost is depleted on a units-of-production basis as part of the full cost pool. Revisions to estimated AROs result in adjustments to the related capitalized asset and corresponding liability. The estimated ARO liability is based on estimated economic lives, estimates as to the cost to abandon the wells in the future, and federal and state regulatory requirements. The liability is discounted using a credit-adjusted risk-free rate estimated at the time the liability is incurred or increased as a result of a reassessment of expected cash flows and assumptions inherent in the estimation of the liability. Upward revisions to the liability could occur due to changes in estimated abandonment costs or well economic lives, or if federal or state regulators enact new requirements regarding the abandonment of wells. AROs are valued utilizing Level 3 fair value measurement inputs. The following table is a reconciliation of the ARO for the nine months ended September 30, 2017 and 2016: (in thousands) Nine Months Ended 2017 2016 Balance at beginning of period $ 5,120 $ 3,095 Accretion expense 232 105 Additions during period 5 5 Obligations on sale of oil & gas properties (93 ) - 5,264 3,205 Less: ARO recognized as a current liability (144 ) - Balance at end of period $ 5,120 $ 3,205 Earnings (Loss) Per Common Share Basic earnings or loss per common share is computed by dividing the net income or loss attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period. The shares of restricted common stock granted to certain officers, directors and employees of the Company are included in the computation of basic net income or loss per share only after the shares become fully vested. Diluted earnings per common share includes both the vested and unvested shares of restricted stock and the potential dilution that could occur upon exercise of warrants to acquire common stock, computed using the treasury stock method, which assumes that the increase in the number of shares is reduced by the number of shares which could have been repurchased by the Company with the proceeds from the exercise of warrants (which were assumed to have been made at the average market price of the common shares during the reporting period). The following table sets forth the calculation of basic and diluted income (loss) per share: in thousands except per share amounts Three Months Ended Nine Months Ended 2017 2016 2017 2016 Basic Earnings (Loss) per Share Net income (loss) available to common shareholders, basic $ (462 ) $ (1,599 ) $ 4,834 $ (9,044 ) Weighted average shares outstanding, basic 5,628 5,507 5,579 5,455 Net income (loss) per common share, basic $ (0.08 ) $ (0.29 ) $ 0.87 (1.66 ) Diluted Earnings (Loss) per Share Net income (loss) available to common shareholders, basic $ (462 ) $ (1,599 ) $ 4,834 $ (9,044 ) Less: decrease in fair value of warrant - - (2,494 ) - Adjusted net income (loss) available to common shareholders, diluted $ (462 ) $ (1,599 ) $ 2,340 $ (9,044 ) Weighted average shares outstanding, basic 5,628 5,507 5,579 5,455 Add: dilutive effects of warrant and nonvested shares of restricted stock - - 907 - Weighted-average shares outstanding, diluted 5,628 5,507 6,486 5,455 Net income (loss) per common share, diluted $ (0.08 ) $ (0.29 ) $ 0.36 $ (1.66 ) For the three months ended September 30, 2017, the Company had a net loss, and therefore, the diluted net loss per share calculation excluded the anti-dilutive effect of approximately 284,000 non-vested shares of restricted stock and approximately 617,000 in-the-money warrants. In addition, approximately 276,000 restricted performance units, subject to future contingencies, are excluded from the basic and diluted loss per share calculations. For the nine months ended September 30, 2017, the Company had net income and the diluted net income per share calculation for that period includes the dilutive effect of approximately 284,000 non-vested shares of restricted stock and approximately 623,000 in-the-money warrants. In addition, approximately 276,000 restricted performance units, subject to future contingencies, are excluded from the basic and diluted loss per share calculations. For the three and nine months ended September 30, 2016, the Company had a net loss and therefore, the diluted net loss per share calculation excluded the anti-dilutive effect of approximately 13,000 warrants and approximately 291,000 non-vested shares of restricted stock in each period. In addition, approximately 298,000 restricted performance units, in each period, subject to future contingencies were excluded from the basic and diluted loss per share calculations. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and expenses and disclosure of contingent assets and liabilities. Significant items subject to such estimates and assumptions include the carrying value of oil and gas properties, the estimate of proved oil and gas reserve volumes and the related depletion and present value of estimated future net cash flows and the ceiling test applied to capitalized oil and gas properties, determining the amounts recorded for deferred income taxes, stock-based compensation, fair value of commodity derivative instruments, fair value of warrants, equity method investments, fair value of assets acquired qualifying as business contributions and asset retirement obligations. Actual results could differ from those estimates and assumptions used, and the use of such estimates may result in volatility within the Company’s financial statements. Adopted and Recently Issued Accounting Pronouncements In February 2016, the FASB issued Accounting Standard Update (“ASU”) No. 2016-02, Leases In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business,

Acquisitions and Divestitures

Acquisitions and Divestitures	9 Months Ended
	Sep. 30, 2017
Acquisitions and Divestitures [Abstract]
Acquisitions and Divestitures	Note 3 – Acquisitions and Divestitures In October 2016, Nytis LLC completed an acquisition (the “EXCO Acquisition”) consisting of producing natural gas wells and natural gas gathering facilities located in the Company’s Appalachian Basin operating area. The natural gas gathering facilities are primarily used to gather the Company’s natural gas production. The acquisition was pursuant to a purchase and sale agreement, effective October 1, 2016 (the “EXCO Purchase Agreement”) by and among EXCO Production Company (WV), LLC, BG Production Company (WV), LLC and EXCO Resources (PA) LLC (collectively, the “Sellers”) and Nytis LLC, as the buyer. The purchase price of the acquired assets was $9.0 million subject to customary closing adjustments plus certain assumed obligations. The EXCO Acquisition included proved developed reserves, production and operating cash flow in a location where the Company has similar assets. EXCO Acquisition Unaudited Pro Forma Results of Operations Below are consolidated results of operations for the nine months ended September 30, 2017 and 2016 as though the EXCO Acquisition had been completed as of January 1, 2016. The EXCO Acquisition closed October 3, 2016, and accordingly, the Company’s unaudited consolidated statement of operations for the nine months ended September 30, 2017 includes the results of operations for the nine months ended September 30, 2017 of the EXCO properties acquired. Unaudited Pro Forma For Nine Months Ended (in thousands, except per share amounts) 2017 2016 Revenue $ 17,565 $ 10,990 Net income (loss) before non-controlling interests 4,926 (4,447 ) Net income (loss) attributable to non-controlling interests 92 (435 ) Net income (loss) attributable to controlling interests 4,834 (4,012 ) Net income (loss) income per share (basic) 0.87 (0.74 ) Net income (loss) income per share (diluted) 0.36 (0.74 )

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2017
Property and Equipment [Abstract]
Property and Equipment	Note 4 – Property and Equipment Net property and equipment as of September 30, 2017 and December 31, 2016 consists of the following: (in thousands) September 30, December 31, Oil and gas properties: Proved oil and gas properties $ 112,211 $ 111,771 Unproved properties not subject to depletion 1,926 1,999 Accumulated depreciation, depletion, amortization and impairment (80,152 ) (78,559 ) Net oil and gas properties 33,985 35,211 Furniture and fixtures, computer hardware and software, and other equipment 1,661 990 Accumulated depreciation and amortization (888 ) (665 ) Net other property and equipment 773 325 Total net property and equipment $ 34,758 $ 35,536 As of September 30, 2017, and December 31, 2016, the Company had approximately $1.9 million and $2.0 million, respectively, of unproved oil and gas properties not subject to depletion. The costs not subject to depletion relate to unproved properties that are excluded from amortized capital costs until it is determined if proved reserves can be assigned to such properties. The excluded properties are assessed for impairment at least annually. Subject to industry conditions, evaluation of most of these properties and the inclusion of their costs in amortized capital costs is expected to be completed within five years. During the nine months ended September 30, 2017 and 2016, the Company capitalized general and administrative expenses applicable to development and exploration activities of approximately $178,000 and $431,000, respectively. Depletion expense related to oil and gas properties for the three and nine months ended September 30, 2017 was approximately $521,000, or $0.38 per Mcfe, and $1.6 million, or $0.40 per Mcfe, respectively. For the three and nine months ended September 30, 2016, depletion expense was approximately $368,000, or $0.60 per Mcfe, and $1.2 million, or $0.68 per Mcfe, respectively. Depreciation and amortization expense related to furniture and fixtures, computer hardware and software and other equipment for the three months ended September 30, 2017 and 2016 was approximately $91,000 and $25,000, respectively and for the nine months ended September 30, 2017 and 2016 was approximately $254,000 and $85,000, respectively.

Investments in Affiliates

Investments in Affiliates	9 Months Ended
	Sep. 30, 2017
Investments in Affiliates [Abstract]
Investments in Affiliates	Note 5– Investments in Affiliates Carbon California On February 15, 2017, the Company entered into a limited liability company agreement (the “Carbon California LLC Agreement”) of Carbon California, a Delaware limited liability company established by the Company. Pursuant to the Carbon California LLC Agreement, Carbon acquired a 17.8% interest in Carbon California represented by Class B Units. The Class B Units were acquired for no cash consideration. No further equity commitments have been made or are required by the Company under the Carbon California LLC Agreement. On February 15, 2017, Carbon California (i) issued and sold Class A Units to two institutional investors for an aggregate cash consideration of $22.0 million, (ii) entered into a Note Purchase Agreement (the “Note Purchase Agreement” “Senior Revolving Notes” Securities Purchase Agreement” “Subordinated Notes” Net proceeds from the offering transaction were used by Carbon California to complete the acquisitions of oil and gas assets in the Ventura Basin of California, which acquisitions also closed on February 15, 2017. The remainder of the net proceeds may be used to fund field development projects and to fund future complementary acquisitions and for general working capital purposes of Carbon California. In connection with the Company entering into the Carbon California LLC Agreement described above and Carbon California engaging in the transactions also described above, the Company issued to an affiliate of one of the institutional investors which purchased Class A Units of Carbon California (which is also an affiliate of the Company’s largest stockholders), a warrant to purchase approximately 1.5 million shares of the Company’s common stock at an exercise price of $7.20 per share (the “California Warrant”). The exercise price for the California Warrant is payable exclusively with Class A Units of Carbon California held by this investor and the number of shares of the Company’s common stock for which the California Warrant is exercisable is determined, as of the time of exercise, by dividing (a) the aggregate unreturned capital of the warrantholder’s Class A Units of Carbon California by (b) the exercise price. The California Warrant has a term of seven years and includes certain standard registration rights with respect to the shares of the Company’s common stock issuable upon exercise of the California Warrant. If exercised, the California Warrant provides Carbon an opportunity to increase its ownership stake in Carbon California without requiring the payment of cash. Based on its 17.8% interest in Carbon California, its ability to appoint a member to the board of directors and its role of manager of Carbon California, the Company is accounting for its investment in Carbon California under the equity method of accounting as it believes it can exert significant influence. The Company uses the hypothetical liquidation at book value method (“HLBV”) to determine its share of profits or losses in Carbon California and adjusts the carrying value of its investment accordingly. The HLBV is a balance-sheet approach that calculates the amount each member of Carbon California would receive if Carbon California were liquidated at book value at the end of each measurement period. The change in the allocated amount to each member during the period represents the income or loss allocated to that member. In the event of liquidation of Carbon California, to the extent that Carbon California has net income, available proceeds are first distributed to members holding Class A and Class B units and any remaining proceeds are then distributed to members holding Class A units, of which the Company holds none. For the three months ended September 30, 2017, and for the period of February 15, 2017 through September 30, 2017, Carbon California incurred a net loss. Should Carbon California report income, the Company will not record income (or losses) until the Company’s share of such income equals the amount of its share of losses not previously reported. While income may be recorded in future periods, the ability of Carbon California to make distributions to its owners, including us, is dependent upon the terms of its credit facilities, which currently prohibit distributions unless agreed to by the lender. The Company accounted for the California Warrant, at issuance, as the initial investment in Carbon California and a liability based on the fair value of the California Warrant as of the date of grant (February 15, 2017). Future changes to the fair value of the California Warrant are recognized in earnings. As of grant date of the California Warrant, the Company estimated that the fair market value of the California Warrant was approximately $5.8 million and recorded that amount to its investment in Carbon California and a long-term liability. As of September 30, 2017, the Company estimated that the fair value of the California Warrant was approximately $3.0 million. The difference in the fair value of the California Warrant from the grant date though September 30, 2017 was approximately $2.8 million and approximately $1.3 million and $2.8 million was recognized in warrant derivative gain in the Company’s unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2017, respectively. See Note 10 for additional information. The following table sets forth, for the periods presented, selected historical financial data for Carbon California. (in thousands, except per share amounts) Three Months Ended September 30, February 15, 2017 (Inception) through September 30, Revenues $ 1,994 $ 6,511 Operating expenses 2,625 6,578 Loss from continuing operations (1,135 ) (1,313 ) Net loss (1,135 ) (1,313 ) Carbon Appalachia Outlined below is a summary of i) the Company’s contributions, ii) its resulting percent of Class A unit ownership and iii) the Company’s overall resulting sharing percentage of Carbon Appalachia after giving effect of all classes of ownership. Each contribution and its use is described in detail following the table. Timing Capital Contribution Resulting Class A Resulting Sharing % April 2017 $0.24 million 2.00% 2.98% August 2017 $3.71 million 15.20% 16.04% September 2017 $2.92 million 18.55% 19.37% November 2017* Warrant exercise* 26.50% 27.24% * See Note 14 for further details regarding the November 1, 2017 exercise of the Appalachia Warrant On April 3, 2017, the Company finalized a limited liability company agreement (the “Carbon Appalachia LLC Agreement”) and the initial funding of Carbon Appalachia. Carbon Appalachia was formed by Carbon and two institutional investors to acquire producing assets in the Southern Appalachian Basin and has an initial equity commitment of $100.0 million, of which $37.0 million has been contributed as of September 30, 2017. Pursuant to the Carbon Appalachia LLC Agreement, Carbon acquired a 2.0% interest in Carbon Appalachia for $240,000 of Class A Units associated with its initial equity commitment of $2.0 million. Carbon also has the ability to earn up to an additional 19.6% of Carbon Appalachia distributions (represented by Class B Units) after certain return thresholds to the holders of Class A Units are met. The Class B Units were acquired for no cash consideration. In addition, Carbon acquired a 1.0% interest represented by Class C Units which were obtained in connection with the contribution to Carbon Appalachia of a portion of its working interest in undeveloped properties in Tennessee. If Carbon Appalachia agrees to drill horizontal Chattanooga Shale wells on these properties, it will pay 100% of the cost of drilling and completion of the first 20 wells to earn a 75% working interest in such properties. Carbon, through its subsidiary, Nytis LLC, will retain a 25% working interest in the properties. In connection with and concurrently with the closing of the acquisition described below, Carbon Appalachia Enterprises, LLC, formerly known as Carbon Tennessee Company, LLC (“Carbon Appalachia Enterprises”), an indirect subsidiary of Carbon Appalachia, entered into a 4-year $100.0 million senior secured asset-based revolving credit facility with LegacyTexas Bank with an initial borrowing base of $10.0 million. The Company is not a guarantor of this credit facility. Borrowings under the credit facility, along with the initial equity contributions made to Carbon Appalachia, were used to complete the acquisition of natural gas producing properties and related facilities located predominantly in Tennessee (the “April 2017 Acquisition”). The purchase price was $20.0 million, subject to normal and customary pre and post-closing adjustments, and Carbon Appalachia Enterprises used $8.5 million drawn from the credit facility toward the purchase price. During the quarter ended September 30, 2017, CAC completed two acquisitions, one on August 15, 2015 and the other on September 29, 2017. Each acquisition is described in more detail below. On August 15, 2017, Carbon Appalachia completed the acquisition of natural gas producing properties and related facilities located predominantly in the state of West Virginia (the “August 2017 Acquisition”). The purchase price was $21.5 million, subject to normal and customary pre- and post-closing adjustments. On August 15, 2017, the Carbon Appalachia LLC Agreement was amended and restated. Pursuant to the amended and restated Carbon Appalachia LLC Agreement, Carbon increased its capital commitment in Carbon Appalachia from $2.0 million to $23.6 million and its portion of any subsequent capital call from 2.0% to 26.5%. Aggregate capital commitments of all Members remained at $100.0 million. As each subsequent capital call is made, Carbon will contribute 26.5%. The Company is the sole manager of Carbon Appalachia and maintains the ability to earn additional ownership interests of Carbon Appalachia (represented by Class B Units) after certain thresholds to the holders of Class A Units are met. The Company also maintains its 1.0% carried interest represented by Class C Units. In connection with and concurrently with the closing of the August 2017 Acquisition, the borrowing base of its existing credit facility with LegacyTexas Bank increased to $22.0 million and Carbon Appalachia Enterprises borrowed $8.0 million from its existing credit facility with LegacyTexas Bank. Carbon Appalachia received equity funding in the amount of $14.0 million from its members, including $3.7 million from Carbon. The contributed funds and funds drawn from the credit facility were used to pay the purchase price. On September 29, Carbon Appalachia Enterprises amended its 4-year $100.0 million senior secured asset-based revolving credit facility with LegacyTexas Bank, resulting in a borrowing base of $50.0 million with redeterminations as of April 1 and October 1 each year and the addition of East West Bank as a participating lender. As of September 30, 2017, there was approximately $38.0 million outstanding under the credit facility. On September 29, 2017, Carbon Appalachia completed the acquisition of natural gas producing properties, natural gas gathering pipelines and related facilities located predominantly in the state of West Virginia (the “September 2017 Acquisition”). The purchase price was $41.3 million, subject to normal and customary pre- and post-closing adjustments. In connection with and concurrently with the closing of the September 2017 Acquisition described above, Carbon Appalachia Enterprises borrowed $20.4 million from its credit facility. Carbon Appalachia received equity funding in the amount of $11.0 million from its members, including $2.9 million from Carbon. The contributed funds and funds drawn from the credit facility were used to pay the purchase price. In connection with the Company entering into the Carbon Appalachia LLC Agreement described above and Carbon Appalachia Enterprises engaging in the April 2017 Acquisition, the Company issued to an affiliate of one of the institutional investors which purchased Class A Units of Carbon Appalachia (which is also an affiliate of the Company’s largest stockholders), a warrant to purchase approximately 408,000 shares of the Company’s common stock at an exercise price of $7.20 per share (the “Appalachia Warrant”). The exercise price for the Appalachia Warrant is payable exclusively with Class A Units of Carbon Appalachia held by this investor and the number of shares of the Company common stock for which the Appalachia Warrant is exercisable is determined, as of the time of exercise, by dividing (a) the aggregate unreturned capital of the warrantholder’s Class A Units of Carbon Appalachia plus a 10% internal rate of return by (b) the exercise price. The Appalachia Warrant has a term of seven years and includes certain standard registration rights with respect to the shares of Carbon’s common stock issuable upon exercise of the Appalachia Warrant. If exercised, the Appalachia Warrant provides Carbon an opportunity to increase its ownership stake in Carbon Appalachia without requiring the payment of cash. Based on its 19.4% combined Class A and Class C interest (and its ability as of September 30, 2017 to earn up to an additional 16.3%) in Carbon Appalachia, its ability to appoint a member to the board of directors and its role of manager of Carbon Appalachia, the Company is accounting for its investment in Carbon Appalachia under the equity method of accounting as it believes it can exert significant influence. The Company uses the HLBV to determine its share of profits or losses in Carbon Appalachia and adjusts the carrying value of its investment accordingly. The Company’s investment in Carbon Appalachia is represented by its Class A and C interests, which it acquired by contributing approximately $6.9 million in cash and unevaluated property. In the event of liquidation of Carbon Appalachia, available proceeds are first distributed to members holding Class A and Class C Units until their contributed capital is recovered with an internal rate of return of 10%. Any additional distributions would then be shared between holders of Class A, Class B and Class C Units. For the period of April 3, 2017 through September 30, 2017, Carbon Appalachia incurred a net loss, of which the Company’s share is approximately $348,000. While income may be recorded in future periods, the ability of Carbon Appalachia to make distributions to its owners, including us, is dependent upon the terms of its credit facilities, which currently prohibit distributions unless agreed to by the lender. The Company accounted for the Appalachia Warrant, at issuance, as an investment in Carbon Appalachia and a liability based on the fair value of the Appalachia Warrant as of the date of grant (April 3, 2017). Future changes to the fair value of the Appalachia Warrant are recognized in earnings. As of the grant date of the Appalachia Warrant, the Company estimated that the fair value of the Appalachia Warrant was approximately $1.3 million and recorded that amount to its investment in Carbon Appalachia and a long-term liability. As of September 30, 2017, the Company estimated that the fair value of the Appalachia Warrant was approximately $1.6 million. The difference in the fair value of the Appalachia Warrant from the grant date through September 30, 2017 was approximately $323,000 and approximately $497,000 and $323,000 was recognized in derivative warrant gain in the Company’s unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2017. See Note 10 for additional information. On November 1, 2017, the holder of the Appalachia Warrant exercised the warrant. See Note 14 for additional information. The following table sets forth, for the periods presented, selected historical financial data for Carbon Appalachia. (in thousands, except per share amounts) Three Months Ended September 30, April 3, Revenues $ 1,348 $ 2,905 Operating expenses 2,691 4,449 Loss from continuing operations (1,545 ) (1,874 ) Net loss (1,545 ) (1,874 ) Crawford County Gas Gathering Company The Company has a 50% interest in Crawford County Gas Gathering Company, LLC (“CCGGC”) which owns and operates pipelines and related gathering and treatment facilities which services the Company’s natural gas production in the Illinois Basin. The Company accounts for its investment in CCGGC under the equity method of accounting, and its share of income or loss is recognized in the Company’s statement of operations. During the nine months ended September 30, 2017 and 2016, the Company recorded equity method income of approximately $32,000 and equity method loss of approximately $10,000, respectively, related to this investment. In addition, during the third quarter of 2017 and first quarter of 2016, the Company received cash distributions from CCGGC of approximately $68,000 and $275,000, respectively.

Bank Credit Facility

Bank Credit Facility	9 Months Ended
	Sep. 30, 2017
Bank Credit Facility [Abstract]
Bank Credit Facility	Note 6 – Bank Credit Facility In 2016, Carbon entered into a 4-year $100.0 million senior secured asset-based revolving credit facility with LegacyTexas Bank. LegacyTexas Bank is the initial lender and acts as administrative agent. The credit facility has a maximum availability of $100.0 million (with a $500,000 sublimit for letters of credit), which availability is subject to the amount of the borrowing base. The initial borrowing base established under the credit facility was $17.0 million. The borrowing base is subject to semi-annual redeterminations in March and September. On March 30, 2017, the borrowing base was increased to $23.0 million. As of September 30, 2017, the borrowing base remained at $23.0 million. The credit facility is guaranteed by each existing and future direct or indirect subsidiary of Carbon (subject to certain exceptions). The obligations of Carbon and the subsidiary guarantors under the credit facility are secured by essentially all tangible and intangible personal and real property of the Company (subject to certain exclusions). Interest is payable quarterly and accrues on borrowings under the credit facility at a rate per annum equal to either (i) the base rate plus an applicable margin between 0.50% and 1.50% or (ii) the Adjusted LIBOR rate plus an applicable margin between 3.50% and 4.50% at Carbon’s option. The actual margin percentage is dependent on the credit facility utilization percentage. Carbon is obligated to pay certain fees and expenses in connection with the credit facility, including a commitment fee for any unused amounts of 0.50%. The credit facility contains certain affirmative and negative covenants that, among other things, limit the Company’s ability to (1) incur additional debt; (ii) incur additional liens; (iii) sell, transfer or dispose of assets; (iv) merge or consolidate, wind-up, dissolve or liquidate; (v) make dividends and distributions on, or repurchases of, equity; (vi) make certain investments; (vii) enter into certain transactions with its affiliates; (viii) enter into sales-leaseback transaction; (ix) make optional or voluntary payment of debt; (x) change the nature of its business; (xi) change its fiscal year to make changes to the accounting treatment or reporting practices; (xii) amend constituent documents; and (xiii) enter into certain hedging transactions. The affirmative and negative covenants are subject to various exceptions, including certain basket amounts and acceptable transaction levels. In addition, the credit facility requires Carbon’s compliance, on a consolidated basis, with (i) maximum funded Debt/EBITDA ratio of 3.5 to 1.0 and (ii) a minimum current ratio of 1.0 to 1.0, commencing with the quarter ended March 31, 2017. In the third quarter of 2017, the Company contributed approximately $6.6 to Carbon Appalachia to fund its share of producing oil and gas properties acquired during the third quarter. This funding was provided primarily with borrowings under the credit facility. The funded Debt/EBITDA and current ratio covenants negotiated at the time the credit facility was established did not contemplate the Company’s contributions for its investment in Carbon Appalachia and, as a result, the Company was not in compliance with the financial covenants associated with the credit facility as of September 30, 2017. However, the Company has obtained a waiver of the funded debt/EBITDA ratio and the current ratio covenants as of September 30, 2017. The Company has requested that LegacyTexas Bank amend such financial covenants to take into account the Company’s investment in Carbon Appalachia. While the Company believes its relationship with LegacyTexas Bank is such that the requested amendment is likely, there can be no assurance that the bank will agree to an amendment. Carbon may at any time repay the loans under the credit facility, in whole or in part, without penalty. Carbon must pay down borrowings under the credit facility or provide mortgages of additional oil and natural gas properties to the extent that outstanding loan and letters of credit exceed the borrowing base. As required under the terms of the credit facility, the Company entered into derivative contracts at fixed pricing for a certain percentage of its production. The Company is party to an ISDA Master Agreement with BP Energy Company that establishes standard terms for the derivative contracts and an inter-creditor agreement with LegacyTexas Bank and BP Energy Company whereby any credit exposure related to the derivative contracts entered into by the Company and BP Energy Company is secured by the collateral and backed by the guarantees supporting the credit facility. As of September 30, 2017, there were approximately $22.1 million in outstanding borrowings and approximately $860,000 of additional borrowing capacity available under the credit facility. The Company’s effective borrowing rate at September 30, 2017 was approximately 5.82%.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Taxes [Abstract]
Income Taxes	Note 7 – Income Taxes The Company recognizes deferred income tax assets and liabilities for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company has net operating loss carryforwards available in certain jurisdictions to reduce future taxable income. Future tax benefits for net operating loss carryforwards are recognized to the extent that realization of these benefits is considered more likely than not. To the extent that available evidence raises doubt about the realization of a deferred income tax asset, a valuation allowance is established. At September 30, 2017, the Company has established a full valuation allowance against the balance of net deferred tax assets.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2017
Stockholders' Equity [Abstract]
Stockholders' Equity	Note 8 – Stockholders’ Equity Authorized and Issued Capital Stock Effective March 15, 2017 and pursuant to a reverse stock split approved by the shareholders and Board of Directors, each 20 shares of issued and outstanding common stock became one share of common stock and no fractional shares were issued. References to the number of shares and price per share give retroactive effect to the reverse stock split for all periods presented. As of September 30, 2017, the Company had 200,000,000 shares of common stock authorized with a par value of $0.01 per share, of which approximately 5.6 million were issued and outstanding and 1,000,000 shares of preferred stock authorized with a par value of $0.01 per share, none of which were issued and outstanding. During the first nine months of 2017, the increase in the Company’s issued and outstanding common stock was a result of restricted stock and performance units that vested during the period. Equity Plans Prior to Merger Pursuant to the merger of Nytis USA with and into the Company in 2011, all options, warrants and restricted stock were adjusted to reflect the conversion ratio used in the merger. Nytis USA Restricted Stock Plan As of September 30, 2017, all restricted stock issued under the Nytis USA Restricted Stock Plan (“Nytis USA Plan”) have vested. The Company accounted for these grants at their intrinsic value. From the date of grant through March 31, 2013, the Company estimated that none of these shares would vest and accordingly, no compensation cost had been recorded through March 31, 2013. In June 2013, the vesting terms of these restricted stock grants were modified so that 25% of the shares would vest on the first of January from 2014 through 2017. As such, the Company recognized compensation expense for those restricted stock grants based on the fair value of the shares on the date the vesting terms were modified. Compensation expense recognized for those restricted stock grants was approximately $84,000 and approximately $252,000 for the three and nine months ended September 30, 2016, respectively. No compensation expense was recognized for those restricted stock grants for the three and nine months ended September 30, 2017. As of December 31, 2016, compensation costs relative to those restricted stock grants were fully recognized. Carbon Stock Incentive Plans The Company has two stock plans, the Carbon 2011 and 2015 Stock Incentive Plans (collectively the “Carbon Plans”). The Carbon Plans were approved by the shareholders of the Company and in the aggregate provide for the issuance of approximately 1.1 million shares of common stock to Carbon officers, directors, employees or consultants eligible to receive these awards under the Carbon Plans. The Carbon Plans provide for granting Director Stock Awards to non-employee directors and for granting Incentive Stock Options, Non-qualified Stock Options, Restricted Stock Awards, Performance Awards and Phantom Stock Awards, or a combination of the foregoing, as is best suited to the circumstances of the particular employee, officer, director or consultant. Restricted Stock During the nine months ended September 30, 2017, approximately 81,000 shares of restricted stock were granted under the terms of the Carbon Plan in addition to 462,000 shares granted during previous years. For employees, these restricted stock awards either vest ratably over a three-year service period or cliff vest after a three-year service period. For non-employee directors, the awards vest upon the earlier of a change in control of the Company or the date their membership on the Board of Directors is terminated other than for cause. The Company recognizes compensation expense for these restricted stock grants based on the estimated grant date fair value of the shares, amortized ratably over three years for employee awards (based on the required service period for vesting) and seven years for non-employee director awards (based on a market survey of the average tenure of directors among U.S. public companies). As of September 30, 2017, approximately 258,000 of these restricted stock grants have vested. Compensation costs recognized for these restricted stock grants were approximately $160,000 and $186,000 for the three months ended September 30, 2017 and 2016, respectively, and $513,000 and $554,000 for the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, there was approximately $1.3 million of unrecognized compensation costs related to these restricted stock grants. This cost is expected to be recognized over the next 6.5 years. Performance Units During the nine months ended September 30, 2017, approximately 60,000 shares of performance units were granted under the terms of the Carbon plans in addition to approximately 401,000 shares granted during previous years. The performance units represent a contractual right to receive one share of the Company’s common stock subject to the terms and conditions of the agreements including the achievement of certain performance measures relative to a defined peer group or the achievement of certain performance measures over a defined period of time for the Company as well as the lapse of forfeiture restrictions pursuant to the terms and conditions of the agreements, including for certain of the grants, the requirement of continuous employment by the grantee prior to a change in control of the Company. Based on the relative achievement of performance, approximately 272,000 restricted performance units are outstanding as of September 30, 2017. The Company accounts for the performance units granted during 2012 and 2014 through 2017 at their fair value determined at the date of grant. The final measurement of compensation cost will be based on the number of performance units that ultimately vest. At September 30, 2017, the Company estimated that none of the performance units granted in 2012 and 2016 through 2017 would vest due to change in control or other performance provisions and accordingly, no compensation cost has been recorded for these performance units. At September 30, 2016, the Company estimated that it was probable that certain of the performance units granted in 2014 and 2015 would vest. Compensation costs of approximately $53,000 and $239,000 related to these performance units were recognized for the three and nine months ended September 30, 2017, respectively. Compensation expense of approximately $1.1 million was recognized for these performance units for the three and nine months ended September 30, 2016. As of September 30, 2017, if change in control and other performance provisions pursuant to the terms and conditions of these agreements are met in full, the estimated unrecognized compensation cost related to the performance units granted in 2012 and 2014 through 2017 would be approximately $2.4 million. The performance units granted in 2013 contain specific vesting provisions, no change in control provisions nor any performance conditions other than stock price performance. Due to different earning requirements compared to the performance units granted in 2012 and 2014 through 2017, the Company recognized compensation expense for the performance units granted in 2013 based on the grant date fair value of the performance units, amortized ratably over three years (the performance period). The fair value of the performance units granted in 2013 was estimated using a Monte Carlo simulation (“MCS”) valuation model using the following key assumptions: no expected dividends, volatility of our stock and those of defined peer companies used to determine our performance relative to the defined peer group, a risk-free interest rate and an expected life of three years. Compensation costs recognized for these performance unit grants were nil and approximately $127,000 for the three and nine months ended September 30, 2016, respectively. As of September 30, 2016, compensation costs relative to these performance units had been fully recognized.

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	9 Months Ended
	Sep. 30, 2017
Accounts Payable and Accrued Liabilities [Abstract]
Accounts Payable and Accrued Liabilities	Note 9 – Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities at September 30, 2017 and December 31, 2016 consist of the following: (in thousands) September 30, December 31, Accounts payable $ 1,801 $ 2,315 Oil and gas revenue payable to oil and gas property owners 1,583 1,415 Gathering and transportation payables 498 468 Production taxes payable 212 113 Drilling advances received from joint venture partner 422 955 Accrued drilling costs - 4 Accrued lease operating costs 535 282 Accrued ad valorem taxes 1,461 1,552 Accrued general and administrative expenses 1,085 1,572 Accrued interest 232 184 Other liabilities 264 261 Total accounts payable and accrued liabilities $ 8,093 $ 9,121

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Fair Value Measurements [Abstract]
Fair Value Measurements	Note 10 – Fair Value Measurements Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions of what market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: Level 1: Quoted prices are available in active markets for identical assets or liabilities; Level 2: Quoted prices in active markets for similar assets or liabilities that are observable for the asset or liability; or Level 3: Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s policy is to recognize transfers in and/or out of the fair value hierarchy as of the end of the reporting period for which the event or change in circumstances caused the transfer. The Company has consistently applied the valuation techniques discussed below for all periods presented. Assets Measured and Recorded at Fair Value on a Recurring Basis The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 by level within the fair value hierarchy: (in thousands) Fair Value Measurements Using Level 1 Level 2 Level 3 Total September 30, 2017 Assets: Commodity derivatives $ - $ 247 $ - $ 247 Liabilities: Warrant derivatives $ - $ - $ 4,600 $ 4,600 December 31, 2016 Liabilities: Commodity derivatives $ - $ 1,932 $ - $ 1,932 Level 2 Fair Value Measurements As of September 30, 2017, the Company’s commodity derivative financial instruments are comprised of twelve natural gas swap agreements, ten oil swap agreements and one natural gas costless collar agreement. The fair values of these agreements are determined under an income valuation technique. The valuation requires a variety of inputs, including contractual terms, published forward prices, volatilities for options, and discount rates, as appropriate. The Company’s estimates of fair value of derivatives include consideration of the counterparty’s credit worthiness, the Company’s credit worthiness and the time value of money. The consideration of these factors resulted in an estimated exit-price for each derivative asset or liability under a market place participant’s view. All the significant inputs are observable, either directly or indirectly; therefore, the Company’s derivative instruments are included within the Level 2 fair value hierarchy. The counterparty for all the Company’s commodity financial instruments as of September 30, 2017 is BP Energy Company. Level 3 Fair Value Measurements A third-party valuation specialist is utilized to determine the fair value of the Company’s California Warrant and Appalachia Warrant. These warrants are designated as Level 3. The Company reviews these valuations, including the related model inputs and assumptions, and analyzes changes in fair value measurements between periods. The Company corroborates such inputs, calculations and fair value changes using various methodologies, and reviews unobservable inputs for reasonableness utilizing relevant information from other published sources. Due to the limited trading volume of the Company’s shares, adjustments are made to the per share value. The Company estimated the fair value of the California Warrant on February 15, 2017, the grant date of the warrant, to be approximately $5.8 million, using a call option pricing model with the following assumptions: a seven-year term, exercise price of $7.20, volatility rate of 41.8% and a risk-free rate of 2.3%. As the Company will receive Class A units in Carbon California in the event the holder exercises the California Warrant, the Company also considered the fair value of the Class A units in its valuation. The Company remeasured the California Warrant as of September 30, 2017, using a Monte Carlo valuation model which utilized unobservable inputs including the percentage return on the Company’s shares at various timelines, the percentage return on the privately-held Carbon California Class A units at various timelines, an exercise price of $7.20, volatility rate of 45%, a risk-free rate of 2.1% and an estimated remaining term of 6.4 years. For the quarter ended September 30, 2017, it was determined that a change from the Black Scholes model to the Monte Carlo valuation model with the ability to incorporate the multitude of probabilities associated with various market participant exercise scenarios was appropriate given the passage of time between the formation and funding of Carbon California in February 2017. As of September 30, 2017, the fair value of the California Warrant was approximately $3.0 million. The Company estimated the fair value of the Appalachia Warrant on April 3, 2017, the grant date of the warrant, to be approximately $1.3 million, using a call option pricing model with the following assumptions: a seven-year term, exercise price of $7.20, volatility rate of 39.3% and a risk-free rate of 2.1%. As the Company will receive Class A units in Carbon Appalachia in the event the holder exercises the Appalachia Warrant, the Company also considered the fair value of the Class A units in its valuation. The Company remeasured the Appalachia Warrant as of September 30, 2017, using a Monte Carlo valuation model which utilized unobservable inputs including the percentage return on the Company’s shares at various timelines, the percentage return on the privately-held Carbon Appalachia Class A units at various timelines, an exercise price of $7.20, volatility rate of 45%, a risk-free rate of 2.1% and an estimated remaining term of 6.5 years. For the quarter ended September 30, 2017, it was determined that a change from the Black Scholes model to the Monte Carlo valuation model with the ability to incorporate the multitude of probabilities associated with various market participant exercise scenarios was appropriate given the passage of time between the formation and funding of Carbon Appalachia in April 2017. As of September 30, 2017, the fair value of the Appalachia Warrant was approximately $1.6 million. The following table summarizes the changes in fair value of our financial instruments classified as Level 3 in the fair value hierarchy: (in thousands) California Warrant Appalachia Warrant Total Balance, December 31, 2016 $ - $ - $ - Warrant derivative liability 5,769 1,325 7,094 Unrealized (gain) loss included in warrant derivative gain (2,817 ) 323 2,494 Balance, September 30, 2017 $ 2,952 $ 1,648 $ 4,600 Assets Measured and Recorded at Fair Value on a Non-Recurring Basis The fair value of the Company’s asset retirement obligations are measured and recorded at fair value on a non-recurring basis, are based on unobservable pricing inputs and therefore, are included within the Level 3 fair value hierarchy. The Company uses the income valuation technique to estimate the fair value of asset retirement obligations using the amounts and timing of expected future dismantlement costs, credit-adjusted risk-free rates and time value of money. During the nine months ended September 30, 2017 and 2016, the Company recorded additions to asset retirement obligations of approximately $5,000 in each period. See Note 2 for additional information.

Physical Delivery Contracts and

Physical Delivery Contracts and Gas Derivatives	9 Months Ended
	Sep. 30, 2017
Physical Delivery Contracts and Gas Derivatives [Abstract]
Physical Delivery Contracts and Gas Derivatives	Note 11 – Physical Delivery Contracts and Gas Derivatives The Company has historically used commodity-based derivative contracts to manage exposures to commodity price on a portion of its oil and natural gas production. The Company does not hold or issue derivative financial instruments for speculative or trading purposes. The Company also enters into, on occasion, oil and natural gas physical delivery contracts to effectively provide commodity price hedges. Because these contracts are not expected to be net cash settled, they are considered to be normal sales contracts and not derivatives. Therefore, these contracts are not recorded at fair value in the unaudited Consolidated Financial Statements. Pursuant to the terms of the Company’s credit facility with LegacyTexas Bank, the Company has entered into swap and costless collar derivative agreements to hedge a portion of its oil and natural gas production for 2017 through 2019. As of September 30, 2017, these derivative agreements consisted of the following: Natural Gas Swaps Natural Gas Collars Oil Swaps Weighted Weighted Weighted Average Average Price Average Year MMBtu Price (a) MMBtu Range (a) Bbl Price (b) 2017 900,000 $ 3.27 30,000 $3.00 - $3.48 23,000 $ 52.64 2018 3,390,000 $ 3.01 90,000 $3.00 - $3.48 60,000 $ 53.36 2019 1,920,000 $ 2.85 - - 48,000 $ 53.76 (a) NYMEX Henry Hub Natural Gas futures contract for the respective delivery month. (b) NYMEX Light Sweet Crude West Texas Intermediate futures contract for the respective delivery month For its swap instruments, the Company receives a fixed price for the hedged commodity and pays a floating price to the counterparty. The fixed-price payment and the floating-price payment are netted, resulting in a net amount due to or from the counterparty. Costless collars are designed to establish floor and ceiling prices on anticipated future oil and gas production. The ceiling establishes a maximum price that the Company will receive for the volumes under contract, while the floor establishes a minimum price. The following table summarizes the fair value of the derivatives recorded in the unaudited Consolidated Balance Sheets. These derivative instruments are not designated as cash flow hedging instruments for accounting purposes: (in thousands) September 30, December 31, Commodity derivative contracts: Current assets $ 190 $ - Non-current assets $ 57 $ - Current liabilities $ - $ 1,341 Non-current liabilities $ - $ 591 The table below summarizes the commodity settlements and unrealized gains and losses related to the Company’s derivative instruments for the three and nine months ended September 30, 2017 and 2016. These commodity derivative settlements and unrealized gains and losses are recorded and included in commodity derivative income or loss in the accompanying unaudited Consolidated Statements of Operations. (in thousands) Three Months Ended Nine Months Ended 2017 2016 2017 2016 Commodity derivative contracts: Settlement gains $ 345 $ 17 $ 463 $ 349 Unrealized (losses) gains (844 ) 143 2,179 (823 ) Total settlement and unrealized (losses) gains, net $ (499 ) $ 160 $ 2,642 $ (474 ) Commodity derivative settlement gains and losses are included in cash flows from operating activities in the Company’s unaudited Consolidated Statements of Cash Flows. The counterparty in all the Company’s derivative instruments is BP Energy Company. The Company has entered into an ISDA Master Agreement with BP Energy Company that establishes standard terms for the derivative contracts and an inter-creditor agreement with LegacyTexas Bank and BP Energy Company whereby any credit exposure related to the derivative contracts entered into by the Company and BP Energy Company is secured by the collateral and backed by the guarantees supporting the credit facility. The Company nets its derivative instrument fair value amounts executed with its counterparty pursuant to an ISDA master agreement, which provides for the net settlement over the term of the contracts and in the event of default or termination of the contracts. The following table summarizes the location and fair value amounts of all derivative instruments in the unaudited Consolidated Balance Sheet, as well as the gross recognized derivative assets, liabilities and amounts offset in the unaudited Consolidated Balance Sheet as of September 30, 2017. Net Gross Recognized Recognized Gross Fair Value Assets/ Amounts Assets/ Balance Sheet Classification Liabilities Offset Liabilities Commodity derivative assets: Current assets $ 448 $ (258 ) $ 190 Other long-term assets 305 (248 ) 57 Total derivative assets $ 753 $ (506 ) $ 247 Commodity derivative liabilities: Current liability $ 258 $ (258 ) $ - Non-current liabilities 248 (248 ) - Total derivative liabilities $ 506 $ (506 ) $ - Due to the volatility of oil and natural gas prices, the estimated fair values of the Company’s derivatives are subject to fluctuations from period to period.

Commitments

Commitments	9 Months Ended
	Sep. 30, 2017
Commitments [Abstract]
Commitments	Note 12 – Commitments Employment Agreements The Company has entered into employment agreements with certain executives and officers of the Company. The term of the agreements generally range from one to two years and provide for renewal provisions in one year increments thereafter. The agreements provide for, among other items, severance and continuation of benefit payments upon termination of employment or certain change of control events. Firm Transportation Contracts The Company has entered into long-term firm transportation contracts to ensure the transport for a portion of its gas production to purchasers. Firm transportation volumes and the related demand charges for the remaining term of these contracts at September 30, 2017 are summarized in the table below. Period Dekatherms per day Demand Charges Oct 2017 - Apr 2018 5,530 $ 0.20 - $0.65 May 2018 - May 2020 3,230 $ 0.20 - $0.62 Apr 2020 – May 2020 2,150 $ 0.20 Jun 2020 – May 2036 1,000 $ 0.20 A liability of approximately $400,000 related to firm transportation contracts assumed in asset acquisitions, which represents the remaining commitment, is reflected on the Company’s unaudited Consolidated Balance Sheet as of September 30, 2017. The fair value of these firm transportation obligations was determined based upon the contractual obligations assumed by the Company and discounted based upon the Company’s effective borrowing rate. These contractual obligations are being amortized on a monthly basis as the Company pays these firm transportation obligations. Capital Commitments In its participation as a Class A member of Carbon Appalachia, the Company has made a capital commitment of $23.6 million, of which it has contributed $6.9 million as of September 30, 2017. Litigation From time to time, the Company is a party to various commercial and regulatory claims, pending or threatened legal action, and other proceedings that arise in the ordinary course of business. It is the opinion of management that none of the current matters of contention are reasonably likely to have a material adverse impact on our business, financial position, results of operations, or cash flows.

Supplemental Cash Flow Disclosu

Supplemental Cash Flow Disclosure	9 Months Ended
	Sep. 30, 2017
Supplemental Cash Flow Disclosure [Abstract]
Supplemental Cash Flow Disclosure	Note 13 – Supplemental Cash Flow Disclosure Supplemental cash flow disclosures for the nine months ended September 30, 2017 and 2016 are presented below: Nine Months Ended (in thousands) 2017 2016 Cash paid during the period for: Interest $ 645 $ 117 Non-cash transactions: Increase in net asset retirement obligations $ 5 $ 5 Decrease in accounts payable and accrued liabilities included in oil and gas properties $ (12 ) $ (23 ) Issuance of warrants for investment in affiliates $ 7,094 $ -

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 14 – Subsequent Events On November 1, 2017, the holder of the Appalachia Warrant (see Note 5) exercised the warrant resulting in the issuance of 432,051 shares of the Company’s common stock in exchange for Class A Units representing approximately 7.95% of then outstanding Class A Units of Carbon Appalachia. After giving effect to the exercise, Carbon owns 26.5% of Carbon Appalachia outstanding Class A Units along with its 1% Class C ownership. The Company is evaluating any accounting effects of the exercise. On November 13, 2017, LegacyTexas Bank reaffirmed the Company’s borrowing base associated with the credit facility at $23.0 million.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited Consolidated Financial Statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of September 30, 2017 and the Company’s results of operations and cash flows for the three and nine months ended September 30, 2017 and 2016. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the full year because of the impact of fluctuations in prices received for oil and natural gas, natural production declines, the uncertainty of exploration and development drilling results and other factors. For a more complete understanding of the Company’s operations, financial position and accounting policies, the unaudited Consolidated Financial Statements and the notes thereto should be read in conjunction with the Company’s audited Consolidated Financial Statements for the year ended December 31, 2016 filed on Form 10-K with the Securities and Exchange Commission (“SEC”). In the course of preparing the unaudited Consolidated Financial Statements, management makes various assumptions, judgments and estimates to determine the reported amount of assets, liabilities, revenue and expenses and in the disclosures of commitments and contingencies. Changes in these assumptions, judgments and estimates will occur as a result of the passage of time and the occurrence of future events and accordingly, actual results could differ from amounts initially established.
Principles of Consolidation	Principles of Consolidation The Consolidated Financial Statements include the accounts of Carbon, CCOC, Nytis USA and its consolidated subsidiary, Nytis LLC. Carbon owns 100% of Nytis USA and CCOC. Nytis USA owns approximately 99% of Nytis LLC. Nytis LLC also holds an interest in 64 oil and gas partnerships. For partnerships where the Company has a controlling interest, the partnerships are consolidated. The Company is currently consolidating on a pro-rata basis 46 partnerships. In these instances, the Company reflects the non-controlling ownership interest in partnerships and subsidiaries as non-controlling interests on its Consolidated Statements of Operations and reflects the non-controlling ownership interests in the net assets of the partnerships as non-controlling interests within stockholders’ equity on its Consolidated Balance Sheets. All significant intercompany accounts and transactions have been eliminated. In accordance with established practice in the oil and gas industry, the Company’s unaudited Consolidated Financial Statements also include its pro-rata share of assets, liabilities, income, lease operating costs and general and administrative expenses of the oil and gas partnerships in which the Company has a non-controlling interest. Non-majority owned investments that do not meet the criteria for pro-rata consolidation are accounted for using the equity method when the Company has the ability to significantly influence the operating decisions of the investee. When the Company does not have the ability to significantly influence the operating decisions of an investee, the cost method is used. All transactions, if any, with investees have been eliminated in the accompanying unaudited Consolidated Financial Statements.
Accounting for Oil and Gas Operations	Accounting for Oil and Gas Operations The Company uses the full cost method of accounting for oil and gas properties. Accordingly, all costs incidental to the acquisition, exploration and development of oil and gas properties, including costs of undeveloped leasehold, dry holes and leasehold equipment, are capitalized. Overhead costs incurred that are directly identified with acquisition, exploration and development activities undertaken by the Company for its own account, and which are not related to production, general corporate overhead or similar activities, are also capitalized. Unproved properties are excluded from amortized capitalized costs until it is determined if proved reserves can be assigned to such properties. The Company assesses its unproved properties for impairment at least annually. Significant unproved properties are assessed individually. Capitalized costs are depleted by an equivalent unit-of-production method, converting oil to gas at the ratio of one barrel of oil to six thousand cubic feet of natural gas. Depletion is calculated using capitalized costs, including estimated asset retirement costs, plus the estimated future expenditures (based on current costs) to be incurred in developing proved reserves, net of estimated salvage values. No gain or loss is recognized upon disposal of oil and gas properties unless such disposal significantly alters the relationship between capitalized costs and proved reserves. All costs related to production activities, including work-over costs incurred solely to maintain or increase levels of production from an existing completion interval, are charged to expense as incurred. The Company performs a ceiling test quarterly. The full cost ceiling test is a limitation on capitalized costs prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is not a fair value based measurement, rather it is a standardized mathematical calculation. The ceiling test provides that capitalized costs less related accumulated depletion and deferred income taxes may not exceed the sum of (1) the present value of future net revenue from estimated production of proved oil and gas reserves using the un-weighted arithmetic average of the first-day-of-the month price for the previous twelve month period, excluding the future cash outflows associated with settling asset retirement obligations that have been accrued on the balance sheet, at a discount factor of 10%; plus (2) the cost of properties not being amortized, if any; plus (3) the lower of cost or estimated fair value of unproved properties included in the costs being amortized, if any; less (4) income tax effects related to differences in the book and tax basis of oil and gas properties. Should the net capitalized costs exceed the sum of the components noted above, a ceiling test write-down would be recognized to the extent of the excess capitalized costs. Such impairments are permanent and cannot be recovered in future periods even if the sum of the components noted above exceeds the capitalized costs in future periods. For the three and nine months ended September 30, 2017, the Company did not recognize a ceiling test impairment as the Company’s full cost pool did not exceed the ceiling limitations. For the three months ended September 30, 2016, the Company did not recognize a ceiling test impairment as the Company’s full cost pool did not exceed the ceiling limitations. For the nine months ended September 30, 2016, the Company recognized a ceiling test impairment of approximately $4.3 million as the Company’s full cost pool exceeded its ceiling limitations. Future declines in oil and natural gas prices, and increases in future operating expenses and future development costs could result in additional impairments of our oil and gas properties in future periods. Impairment charges are a non-cash charge and accordingly, do not affect cash flow, but adversely affect our net income and stockholders’ equity.
Investments in Affiliates	Investments in Affiliates Investments in non-consolidated affiliates are accounted for under either the cost or equity method of accounting, as appropriate. The cost method of accounting is generally used for investments in affiliates in which the Company has less than 20% of the voting interests of a corporate affiliate or less than a 3% to 5% interest of a partnership or limited liability company and does not have significant influence. Investments in non-consolidated affiliates, accounted for using the cost method of accounting, are recorded at cost and impairment assessments for each investment are made annually to determine if a decline in the fair value of the investment, other than temporary, has occurred. A permanent impairment is recognized if a decline in the fair value occurs. If the Company holds between 20% and 50% of the voting interest in non-consolidated corporate affiliates or generally greater than a 3% to 5% interest of a partnership or limited liability company and exerts significant influence or control (e.g., through its influence with a seat on the board of directors or management of operations), the equity method of accounting is generally used to account for the investment. Equity method investments will increase or decrease by the Company’s share of the affiliate’s profits or losses and such profits or losses are recognized in the Company’s Consolidated Statements of Operations. For its equity method investments in Carbon Appalachia and Carbon California, the Company uses the hypothetical liquidation at book value method to recognize its share of the affiliate’s profits or losses. The Company reviews equity method investments for impairment whenever events or changes in circumstances indicate that an other than temporary decline in value has occurred.
Related Party Transactions	Related Party Transactions On February 15, 2017, the Company entered into a limited liability company agreement of Carbon California to make investments in California oil and gas projects. Pursuant to the limited liability agreement, Carbon California reimbursed the Company for (i) due diligence costs incurred on behalf of Carbon California, (ii) transaction-related costs and (iii) management-related costs in connection with its role as manager of Carbon California. Management-related reimbursements were $150,000 and $375,000 for the three months ended September 30, 2017 and period February 15, 2017 (inception) through September 30, 2017, respectively. On April 3, 2017, the Company entered into the limited liability company agreement of Carbon Appalachia to make investments in Appalachia oil and gas projects. Pursuant to the limited liability agreement, Carbon Appalachia reimbursed the Company for (i) due diligence costs incurred on behalf of Carbon Appalachia, (ii) transaction-related costs and (iii) management-related costs in connection with its role as manager of Carbon Appalachia. Management-related reimbursements were approximately $273,000 and $348,000 for the three months ended September 30, 2017 and period April 3, 2017 (inception) through September 30, 2017, respectively. As of September 30, 2017, Carbon Appalachia owes the Company approximately $273,000 in connection with its role as manager.
Warrant Derivative Liability	Warrant Derivative Liability The Company issued warrants related to investments in Carbon California and Carbon Appalachia. The Company accounts for these warrants in accordance with guidance contained in Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging
Asset Retirement Obligations	Asset Retirement Obligations The Company’s asset retirement obligations (“ARO”) relate to future costs associated with the plugging and abandonment of oil and gas wells, removal of equipment and facilities from leased acreage and returning such land to its original condition. The fair value of a liability for an ARO is recorded in the period in which it is incurred and the cost of such liability is recorded as an increase in the carrying amount of the related long-lived asset by the same amount. The liability is accreted each period and the capitalized cost is depleted on a units-of-production basis as part of the full cost pool. Revisions to estimated AROs result in adjustments to the related capitalized asset and corresponding liability. The estimated ARO liability is based on estimated economic lives, estimates as to the cost to abandon the wells in the future, and federal and state regulatory requirements. The liability is discounted using a credit-adjusted risk-free rate estimated at the time the liability is incurred or increased as a result of a reassessment of expected cash flows and assumptions inherent in the estimation of the liability. Upward revisions to the liability could occur due to changes in estimated abandonment costs or well economic lives, or if federal or state regulators enact new requirements regarding the abandonment of wells. AROs are valued utilizing Level 3 fair value measurement inputs. The following table is a reconciliation of the ARO for the nine months ended September 30, 2017 and 2016: (in thousands) Nine Months Ended 2017 2016 Balance at beginning of period $ 5,120 $ 3,095 Accretion expense 232 105 Additions during period 5 5 Obligations on sale of oil & gas properties (93 ) - 5,264 3,205 Less: ARO recognized as a current liability (144 ) - Balance at end of period $ 5,120 $ 3,205
Earnings (Loss) Per Common Share	Earnings (Loss) Per Common Share Basic earnings or loss per common share is computed by dividing the net income or loss attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period. The shares of restricted common stock granted to certain officers, directors and employees of the Company are included in the computation of basic net income or loss per share only after the shares become fully vested. Diluted earnings per common share includes both the vested and unvested shares of restricted stock and the potential dilution that could occur upon exercise of warrants to acquire common stock, computed using the treasury stock method, which assumes that the increase in the number of shares is reduced by the number of shares which could have been repurchased by the Company with the proceeds from the exercise of warrants (which were assumed to have been made at the average market price of the common shares during the reporting period). The following table sets forth the calculation of basic and diluted income (loss) per share: in thousands except per share amounts Three Months Ended Nine Months Ended 2017 2016 2017 2016 Basic Earnings (Loss) per Share Net income (loss) available to common shareholders, basic $ (462 ) $ (1,599 ) $ 4,834 $ (9,044 ) Weighted average shares outstanding, basic 5,628 5,507 5,579 5,455 Net income (loss) per common share, basic $ (0.08 ) $ (0.29 ) $ 0.87 (1.66 ) Diluted Earnings (Loss) per Share Net income (loss) available to common shareholders, basic $ (462 ) $ (1,599 ) $ 4,834 $ (9,044 ) Less: decrease in fair value of warrant - - (2,494 ) - Adjusted net income (loss) available to common shareholders, diluted $ (462 ) $ (1,599 ) $ 2,340 $ (9,044 ) Weighted average shares outstanding, basic 5,628 5,507 5,579 5,455 Add: dilutive effects of warrant and nonvested shares of restricted stock - - 907 - Weighted-average shares outstanding, diluted 5,628 5,507 6,486 5,455 Net income (loss) per common share, diluted $ (0.08 ) $ (0.29 ) $ 0.36 $ (1.66 ) For the three months ended September 30, 2017, the Company had a net loss, and therefore, the diluted net loss per share calculation excluded the anti-dilutive effect of approximately 284,000 non-vested shares of restricted stock and approximately 617,000 in-the-money warrants. In addition, approximately 276,000 restricted performance units, subject to future contingencies, are excluded from the basic and diluted loss per share calculations. For the nine months ended September 30, 2017, the Company had net income and the diluted net income per share calculation for that period includes the dilutive effect of approximately 284,000 non-vested shares of restricted stock and approximately 623,000 in-the-money warrants. In addition, approximately 276,000 restricted performance units, subject to future contingencies, are excluded from the basic and diluted loss per share calculations. For the three and nine months ended September 30, 2016, the Company had a net loss and therefore, the diluted net loss per share calculation excluded the anti-dilutive effect of approximately 13,000 warrants and approximately 291,000 non-vested shares of restricted stock in each period. In addition, approximately 298,000 restricted performance units, in each period, subject to future contingencies were excluded from the basic and diluted loss per share calculations.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and expenses and disclosure of contingent assets and liabilities. Significant items subject to such estimates and assumptions include the carrying value of oil and gas properties, the estimate of proved oil and gas reserve volumes and the related depletion and present value of estimated future net cash flows and the ceiling test applied to capitalized oil and gas properties, determining the amounts recorded for deferred income taxes, stock-based compensation, fair value of commodity derivative instruments, fair value of warrants, equity method investments, fair value of assets acquired qualifying as business contributions and asset retirement obligations. Actual results could differ from those estimates and assumptions used, and the use of such estimates may result in volatility within the Company’s financial statements.
Adopted and Recently Issued Accounting Pronouncements	Adopted and Recently Issued Accounting Pronouncements In February 2016, the FASB issued Accounting Standard Update (“ASU”) No. 2016-02, Leases In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business,

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Summary of reconciliation of the ARO	(in thousands) Nine Months Ended 2017 2016 Balance at beginning of period $ 5,120 $ 3,095 Accretion expense 232 105 Additions during period 5 5 Obligations on sale of oil & gas properties (93 ) - 5,264 3,205 Less: ARO recognized as a current liability (144 ) - Balance at end of period $ 5,120 $ 3,205
Schedule of basic and diluted income (loss) per share	Earnings (Loss) Per Common Share Basic earnings or loss per common share is computed by dividing the net income or loss attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period. The shares of restricted common stock granted to certain officers, directors and employees of the Company are included in the computation of basic net income or loss per share only after the shares become fully vested. Diluted earnings per common share includes both the vested and unvested shares of restricted stock and the potential dilution that could occur upon exercise of warrants to acquire common stock, computed using the treasury stock method, which assumes that the increase in the number of shares is reduced by the number of shares which could have been repurchased by the Company with the proceeds from the exercise of warrants (which were assumed to have been made at the average market price of the common shares during the reporting period). The following table sets forth the calculation of basic and diluted income (loss) per share: in thousands except per share amounts Three Months Ended Nine Months Ended 2017 2016 2017 2016 Basic Earnings (Loss) per Share Net income (loss) available to common shareholders, basic $ (462 ) $ (1,599 ) $ 4,834 $ (9,044 ) Weighted average shares outstanding, basic 5,628 5,507 5,579 5,455 Net income (loss) per common share, basic $ (0.08 ) $ (0.29 ) $ 0.87 (1.66 ) Diluted Earnings (Loss) per Share Net income (loss) available to common shareholders, basic $ (462 ) $ (1,599 ) $ 4,834 $ (9,044 ) Less: decrease in fair value of warrant - - (2,494 ) - Adjusted net income (loss) available to common shareholders, diluted $ (462 ) $ (1,599 ) $ 2,340 $ (9,044 ) Weighted average shares outstanding, basic 5,628 5,507 5,579 5,455 Add: dilutive effects of warrant and nonvested shares of restricted stock - - 907 - Weighted-average shares outstanding, diluted 5,628 5,507 6,486 5,455 Net income (loss) per common share, diluted $ (0.08 ) $ (0.29 ) $ 0.36 $ (1.66 )

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	9 Months Ended
	Sep. 30, 2017
Acquisitions and Divestitures [Abstract]
Schedule on EXCO acquisition unaudited Pro Forma results of operations	Unaudited Pro Forma For Nine Months Ended (in thousands, except per share amounts) 2017 2016 Revenue $ 17,565 $ 10,990 Net income (loss) before non-controlling interests 4,926 (4,447 ) Net income (loss) attributable to non-controlling interests 92 (435 ) Net income (loss) attributable to controlling interests 4,834 (4,012 ) Net income (loss) income per share (basic) 0.87 (0.74 ) Net income (loss) income per share (diluted) 0.36 (0.74 )

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Property and Equipment [Abstract]
Summary of net property and equipment	(in thousands) September 30, December 31, Oil and gas properties: Proved oil and gas properties $ 112,211 $ 111,771 Unproved properties not subject to depletion 1,926 1,999 Accumulated depreciation, depletion, amortization and impairment (80,152 ) (78,559 ) Net oil and gas properties 33,985 35,211 Furniture and fixtures, computer hardware and software, and other equipment 1,661 990 Accumulated depreciation and amortization (888 ) (665 ) Net other property and equipment 773 325 Total net property and equipment $ 34,758 $ 35,536

Investments in Affiliates (Tabl

Investments in Affiliates (Tables)	9 Months Ended
	Sep. 30, 2017
Related Party Transaction [Line Items]
Summary of company's contributions	Timing Capital Contribution Resulting Class A Resulting Sharing % April 2017 $0.24 million 2.00% 2.98% August 2017 $3.71 million 15.20% 16.04% September 2017 $2.92 million 18.55% 19.37% November 2017* Warrant exercise* 26.50% 27.24% * See Note 14 for further details regarding the November 1, 2017 exercise of the Appalachia Warrant
Carbon California [Member]
Related Party Transaction [Line Items]
Schedule of selected historical financial data	(in thousands, except per share amounts) Three Months Ended September 30, February 15, 2017 (Inception) through September 30, Revenues $ 1,994 $ 6,511 Operating expenses 2,625 6,578 Loss from continuing operations (1,135 ) (1,313 ) Net loss (1,135 ) (1,313 )
Carbon Appalachia [Member]
Related Party Transaction [Line Items]
Schedule of selected historical financial data	(in thousands, except per share amounts) Three Months Ended September 30, April 3, Revenues $ 1,348 $ 2,905 Operating expenses 2,691 4,449 Loss from continuing operations (1,545 ) (1,874 ) Net loss (1,545 ) (1,874 )

Accounts Payable and Accrued 26

Accounts Payable and Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2017
Accounts Payable and Accrued Liabilities [Abstract]
Summary of accounts payable and accrued liabilities	(in thousands) September 30, December 31, Accounts payable $ 1,801 $ 2,315 Oil and gas revenue payable to oil and gas property owners 1,583 1,415 Gathering and transportation payables 498 468 Production taxes payable 212 113 Drilling advances received from joint venture partner 422 955 Accrued drilling costs - 4 Accrued lease operating costs 535 282 Accrued ad valorem taxes 1,461 1,552 Accrued general and administrative expenses 1,085 1,572 Accrued interest 232 184 Other liabilities 264 261 Total accounts payable and accrued liabilities $ 8,093 $ 9,121

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Measurements [Abstract]
Summary of financial assets and liabilities at fair value	(in thousands) Fair Value Measurements Using Level 1 Level 2 Level 3 Total September 30, 2017 Assets: Commodity derivatives $ - $ 247 $ - $ 247 Liabilities: Warrant derivatives $ - $ - $ 4,600 $ 4,600 December 31, 2016 Liabilities: Commodity derivatives $ - $ 1,932 $ - $ 1,932
Schedule of changes in fair value of our financial instruments	(in thousands) California Warrant Appalachia Warrant Total Balance, December 31, 2016 $ - $ - $ - Warrant derivative liability 5,769 1,325 7,094 Unrealized (gain) loss included in warrant derivative gain (2,817 ) 323 2,494 Balance, September 30, 2017 $ 2,952 $ 1,648 $ 4,600

Physical Delivery Contracts a28

Physical Delivery Contracts and Gas Derivatives (Tables)	9 Months Ended
	Sep. 30, 2017
Physical Delivery Contracts and Gas Derivatives [Abstract]
Schedule of swap derivative agreements	Natural Gas Swaps Natural Gas Collars Oil Swaps Weighted Weighted Weighted Average Average Price Average Year MMBtu Price (a) MMBtu Range (a) Bbl Price (b) 2017 900,000 $ 3.27 30,000 $3.00 - $3.48 23,000 $ 52.64 2018 3,390,000 $ 3.01 90,000 $3.00 - $3.48 60,000 $ 53.36 2019 1,920,000 $ 2.85 - - 48,000 $ 53.76 (a) NYMEX Henry Hub Natural Gas futures contract for the respective delivery month. (b) NYMEX Light Sweet Crude West Texas Intermediate futures contract for the respective delivery month
Schedule of fair value of the derivatives recorded	(in thousands) September 30, December 31, Commodity derivative contracts: Current assets $ 190 $ - Non-current assets $ 57 $ - Current liabilities $ - $ 1,341 Non-current liabilities $ - $ 591
Schedule of realized and unrealized gains and losses	(in thousands) Three Months Ended Nine Months Ended 2017 2016 2017 2016 Commodity derivative contracts: Settlement gains $ 345 $ 17 $ 463 $ 349 Unrealized (losses) gains (844 ) 143 2,179 (823 ) Total settlement and unrealized (losses) gains, net $ (499 ) $ 160 $ 2,642 $ (474 )
Schedule of fair value amounts of all derivative instruments assets and liabilities	Net Gross Recognized Recognized Gross Fair Value Assets/ Amounts Assets/ Balance Sheet Classification Liabilities Offset Liabilities Commodity derivative assets: Current assets $ 448 $ (258 ) $ 190 Other long-term assets 305 (248 ) 57 Total derivative assets $ 753 $ (506 ) $ 247 Commodity derivative liabilities: Current liability $ 258 $ (258 ) $ - Non-current liabilities 248 (248 ) - Total derivative liabilities $ 506 $ (506 ) $ -

Commitments (Tables)

Commitments (Tables)	9 Months Ended
	Sep. 30, 2017
Commitments [Abstract]
Summary of firm transportation volumes and related demand charges	Period Dekatherms per day Demand Charges Oct 2017 - Apr 2018 5,530 $ 0.20 - $0.65 May 2018 - May 2020 3,230 $ 0.20 - $0.62 Apr 2020 – May 2020 2,150 $ 0.20 Jun 2020 – May 2036 1,000 $ 0.20

Supplemental Cash Flow Disclo30

Supplemental Cash Flow Disclosure (Tables)	9 Months Ended
	Sep. 30, 2017
Supplemental Cash Flow Disclosure [Abstract]
Summary of supplemental cash flow disclosures	Nine Months Ended (in thousands) 2017 2016 Cash paid during the period for: Interest $ 645 $ 117 Non-cash transactions: Increase in net asset retirement obligations $ 5 $ 5 Decrease in accounts payable and accrued liabilities included in oil and gas properties $ (12 ) $ (23 ) Issuance of warrants for investment in affiliates $ 7,094 $ -

Summary of Significant Accoun31

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Summary of reconciliation of the ARO
Balance at beginning of period	$ 5,120	$ 3,095
Accretion expense	232	105
Additions during period	5	5
Obligations on sale of oil & gas properties	(93)
Reconciliation of the ARO, gross	5,264	3,205
Less: ARO recognized as a current liability	(144)
Balance at end of period	$ 5,120	$ 3,205

Summary of Significant Accoun32

Summary of Significant Accounting Policies (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Basic Earnings (Loss) per Share
Net income (loss) available to common shareholders, basic	$ (462)	$ (1,599)	$ 4,834	$ (9,044)
Weighted average shares outstanding, basic	5,628	5,507	5,579	5,455
Net income (loss) per common share, basic	$ (0.08)	$ (0.29)	$ 0.87	$ (1.66)
Diluted Earnings (Loss) per Share
Net income (loss) available to common shareholders, basic	$ (462)	$ (1,599)	$ 4,834	$ (9,044)
Less: decrease in fair value of warrant			(2,494)
Adjusted net income (loss) available to common shareholders, diluted	$ (462)	$ (1,599)	$ 2,340	$ (9,044)
Weighted average shares outstanding, basic	5,628	5,507	5,579	5,455
Add: dilutive effects of warrant and nonvested shares of restricted stock			907
Weighted-average shares outstanding, diluted	5,628	5,507	6,486	5,455
Net income (loss) per common share, diluted	$ (0.08)	$ (0.29)	$ 0.36	$ (1.66)

Summary of Significant Accoun33

Summary of Significant Accounting Policies (Details Textual) $ in Thousands	Apr. 03, 2017	Feb. 15, 2017	Sep. 30, 2017USD ($)shares	Sep. 30, 2016shares	Sep. 30, 2017USD ($)Partnershipshares	Sep. 30, 2016USD ($)shares
Summary of Significant Accounting Policies (Textual)
Ceiling test impairment cost | $						$ 4,300
Number of consolidated partnerships | Partnership					46
Cost method investments, additional information, description					The Company has less than 20% of the voting interests of a corporate affiliate or less than a 3% to 5% interest of a partnership or limited liability company and does not have significant influence.
Equity method investment, additional information, description					If the Company holds between 20% and 50% of the voting interest in non-consolidated corporate affiliates or generally greater than a 3% to 5% interest of a partnership or limited liability company and exerts significant influence or control (e.g., through its influence with a seat on the board of directors or management of operations), the equity method of accounting is generally used to account for the investment.
Liability agreement reimbursed, description	The Company for (i) due diligence costs incurred on behalf of Carbon Appalachia, (ii) transaction-related costs and (iii) management-related costs in connection with its role as manager of Carbon Appalachia. Management-related reimbursements were approximately $273,000 and $348,000 for the three months ended September 30, 2017 and period April 3, 2017 (inception) through September 30, 2017, respectively.	The Company for (i) due diligence costs incurred on behalf of Carbon California, (ii) transaction-related costs and (iii) management-related costs in connection with its role as manager of Carbon California. Management-related reimbursements were $150,000 and $375,000 for the three months ended September 30, 2017 and period February 15, 2017 (inception) through September 30, 2017, respectively.			As of September 30, 2017, Carbon Appalachia owes the Company approximately $273,000 in connection with its role as manager. See Note 5 for additional information.
Changes in fair value of warrants | $			$ 811		$ 2,500
Warrant [Member]
Summary of Significant Accounting Policies (Textual)
Non-vested shares of restricted stock			6,170,000		623,000
Restricted Stock [Member]
Summary of Significant Accounting Policies (Textual)
Anti-dilutive earnings per shares			284,000	250,000	284,000	13,000
Non-vested shares of restricted stock				5,800,000		291,000
Restricted Performance Units [Member]
Summary of Significant Accounting Policies (Textual)
Anti-dilutive earnings per shares				6,000,000		298,000
Common stock equivalent restricted to future contingencies			276,000		276,000
Nytis LLC [Member]
Summary of Significant Accounting Policies (Textual)
Percentage of ownership interest in the subsidiary					99.00%
Nytis USA [Member]
Summary of Significant Accounting Policies (Textual)
Percentage of ownership interest in the subsidiary					100.00%

Acquisitions and Divestitures34

Acquisitions and Divestitures (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Acquisitions and Divestitures [Abstract]
Revenue			$ 17,565	$ 10,990
Net income (loss) before non-controlling interests			6,647	(4,497)
Net income (loss) attributable to non-controlling interests	$ 16	$ (3)	92	(435)
Net income (loss) attributable to controlling interests			$ 4,834	$ (4,012)
Net income (loss) income per share (basic)			$ 0.87	$ (0.74)
Net income (loss) income per share (diluted)			$ 0.36	$ (0.74)

Acquisitions and Divestitures35

Acquisitions and Divestitures (Details Textual) $ in Millions	Oct. 01, 2016USD ($)
Purchase Agreement [Member]
Acquisitions and Divestitures (Textual)
Purchase price of acquired assets	$ 9

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Oil and gas properties:
Accumulated depreciation, depletion, amortization and impairment	$ (80,152)	$ (78,559)
Net oil and gas properties	33,985	35,211
Furniture and fixtures, computer hardware and software, and other equipment	1,661	990
Accumulated depreciation and amortization	(888)	(665)
Net other property and equipment	773	325
Total net property and equipment	34,758	35,536
Proved oil and gas properties [Member]
Oil and gas properties:
Oil and gas properties	112,211	111,771
Unproved properties not subject to depletion [Member]
Oil and gas properties:
Oil and gas properties	$ 1,926	$ 1,999

Property and Equipment (Detai37

Property and Equipment (Details Textual)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017USD ($)Per_Mcfe	Sep. 30, 2016USD ($)Per_Mcfe	Sep. 30, 2017USD ($)Per_Mcfe	Sep. 30, 2016USD ($)Per_Mcfe	Dec. 31, 2016USD ($)
Property and Equipment (Textual)
Capitalized general and administrative expenses			$ 178,000	$ 431,000
Depletion expense related to oil and gas properties	$ 521,000	$ 368,000	$ 1,600,000	$ 1,200,000
Depletion expense related to oil and gas properties (in dollars per Mcfe) | Per_Mcfe	0.38	0.60	0.40	0.68
Depreciation and amortization expense	$ 91,000	$ 25,000	$ 254,000	$ 85,000
Amortized capital cost, description			Within five years.
Unproved properties not subject to depletion [Member]
Property and Equipment (Textual)
Depletion expense related to unproved oil and gas properties			$ 1,900,000		$ 2,000,000

Investments in Affiliates (Deta

Investments in Affiliates (Details) - USD ($) $ in Thousands	3 Months Ended		8 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Related Party Transaction [Line Items]
Revenues	$ 4,195	$ 2,365		$ 17,565	$ 5,221
Operating expenses	(693)	(1,560)		3,518	(9,345)
Net loss	(462)	$ (1,599)		$ 4,834	$ (9,044)
Carbon California [Member]
Related Party Transaction [Line Items]
Revenues	1,994		$ 6,511
Operating expenses	2,625		6,578
Loss from continuing operations	(1,135)		(1,313)
Net loss	$ (1,135)		$ (1,313)

Investments in Affiliates (De39

Investments in Affiliates (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Related Party Transaction [Line Items]
Revenues	$ 4,195	$ 2,365		$ 17,565	$ 5,221
Operating expenses	(693)	(1,560)		3,518	(9,345)
Net loss	(462)	$ (1,599)		$ 4,834	$ (9,044)
Carbon Appalachia [Member]
Related Party Transaction [Line Items]
Revenues	1,348		$ 2,905
Operating expenses	2,691		4,449
Loss from continuing operations	(1,545)		(1,874)
Net loss	$ (1,545)		$ (1,874)

Investments in Affiliates (De40

Investments in Affiliates (Details 2) $ in Thousands	Sep. 30, 2017USD ($)
April 2017 [Member]
Related Party Transaction [Line Items]
Capital Contribution	$ 240
Resulting Class A Units (%)	2.00%
Resulting Sharing %	2.98%
August 2017 [Member]
Related Party Transaction [Line Items]
Capital Contribution	$ 3,710
Resulting Class A Units (%)	15.20%
Resulting Sharing %	16.04%
September 2017 [Member]
Related Party Transaction [Line Items]
Capital Contribution	$ 2,920
Resulting Class A Units (%)	18.55%
Resulting Sharing %	19.37%
November 2017 [Member]
Related Party Transaction [Line Items]
Capital Contribution		[1]
Resulting Class A Units (%)	26.50%	[1]
Resulting Sharing %	27.24%	[1]
[1]	See Note 14 for further details regarding the November 1, 2017 exercise of the Appalachia Warrant

Investments in Affiliates (De41

Investments in Affiliates (Details Textual)	Apr. 03, 2017USD ($)Well	Sep. 29, 2017USD ($)	Aug. 31, 2017	Aug. 15, 2017USD ($)	Feb. 15, 2017	Sep. 30, 2017USD ($)$ / shares	Sep. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Sep. 30, 2017USD ($)$ / sharesshares	Sep. 30, 2016USD ($)
Investments in Affiliates (Textual)
Ownership interest percentage						50.00%			50.00%
Equity investment income (loss)						$ (285,000)	$ (4,000)		$ (285,000)	$ (10,000)
Cash received from related party								$ 275,000
Fair value of warrant									$ (2,494,000)
Equity commitment				$ 100,000,000
Percentage of interest	75.00%					16.30%			16.30%
Other income						$ 8,000	9,000		$ 28,000	10,000
Equity method loss						$ (285,000)	(4,000)		(285,000)	(10,000)
Drilling [Member]
Investments in Affiliates (Textual)
Percentage of interest	100.00%
Senior Revolving Notes [Member]
Investments in Affiliates (Textual)
Senior subordinated notes		$ 100,000,000
Current borrowing base		$ 50,000,000
Revolving credit facility, description		Redeterminations as of April 1 and October 1 each year and the addition of East West Bank as a participating lender.
Outstanding under the credit facility									$ 38,000,000
California Warrant [Member]
Investments in Affiliates (Textual)
Acquired interest					17.80%
Business acquisitions description					Carbon California (i) issued and sold Class A Units to two institutional investors for an aggregate cash consideration of $22.0 million, (ii) entered into a Note Purchase Agreement (the “Note Purchase Agreement” “Senior Revolving Notes” Securities Purchase Agreement” “Subordinated Notes” , of which $10.0 million is outstanding as of September 30, 2017.
Warrant to purchase common stock | shares									1,500,000
Warrant exercise price | $ / shares						$ 7.20			$ 7.20
Estimated fair market value of warrant						$ 3,000,000			$ 3,000,000
Fair value of warrant									1,500,000
Percentage of interest					17.80%
Other income									2,800,000
Carbon Appalachia Class A [Member]
Investments in Affiliates (Textual)
Equity investment income (loss)									$ 348,000
Acquired interest	2.00%
Senior secured asset	$ 2,000,000
Business acquisitions description			The borrowing base of its existing credit facility with LegacyTexas Bank increased to $22.0 million and Carbon Appalachia Enterprises borrowed $8.0 million from its existing credit facility with LegacyTexas Bank. Carbon Appalachia received equity funding in the amount of $14.0 million from its members, including $3.7 million from Carbon.						Carbon Appalachia Enterprises borrowed $20.4 million from its existing credit facility with LegacyTexas Bank and East West Bank and received additional funding in the amount of $11.0 million from its members, including $2.9 million from Carbon.
Senior subordinated notes	100,000,000
Warrant to purchase common stock | shares									408,000
Warrant exercise price | $ / shares						$ 7.20			$ 7.20
Estimated fair market value of warrant						$ 1,300,000			$ 1,300,000
Fair value of warrant						1,200,000			1,300,000
Equity commitment	$ 100,000,000					$ 37,000,000			$ 37,000,000
Number of wells | Well	20
Percentage of interest						10.00%			10.00%
Purchase price of acquired assets	$ 20,000,000	$ 41,300,000		21,500,000
Credit facility purchase price	8,500,000
Initial borrowing	$ 10,000,000
Equity method loss									$ 348,000
Carbon Appalachia Class A [Member] | Maximum [Member]
Investments in Affiliates (Textual)
Equity commitment				$ 23,600,000
Percentage of interest				26.50%
Carbon Appalachia Class A [Member] | Minimum [Member]
Investments in Affiliates (Textual)
Equity commitment				$ 2,000,000
Percentage of interest				2.00%
Carbon Appalachia Class A [Member] | Class B Units [Member]
Investments in Affiliates (Textual)
Ownership interest percentage	19.60%
Carbon Appalachia Class A [Member] | Class C Units [Member]
Investments in Affiliates (Textual)
Ownership interest percentage	1.00%			26.50%		19.40%			19.40%
Acquired interest				1.00%
Investment in cash and unevaluated property						$ 6,900,000			$ 6,900,000
Carbon Appalachia Class A [Member] | Class A Units [Member]
Investments in Affiliates (Textual)
Ownership interest percentage						19.40%			19.40%
Equity commitment	$ 240,000
Investment in cash and unevaluated property						$ 6,900,000			$ 6,900,000
Nytis LLC [Member]
Investments in Affiliates (Textual)
Percentage of interest	25.00%
Crawford County Gas Gathering [Member]
Investments in Affiliates (Textual)
Equity investment income (loss)									32,000	10,000
Cash received from related party							$ 275,000		68,000
Equity method loss									32,000	$ 10,000
Warrant [Member]
Investments in Affiliates (Textual)
Estimated fair market value of warrant						5,800,000			5,800,000
Warrant [Member] | Carbon Appalachia Class A [Member]
Investments in Affiliates (Textual)
Estimated fair market value of warrant						0			0
Fair value of warrant									1,600,000
Appalachia Warrant [Member]
Investments in Affiliates (Textual)
Fair value of warrant	$ 323,000
Derivative warrant gain						$ 497,000			$ 323,000,000

Bank Credit Facility (Details)

Bank Credit Facility (Details)	3 Months Ended	9 Months Ended
	Mar. 31, 2017	Sep. 30, 2017USD ($)	Mar. 30, 2017USD ($)
Bank Credit Facility (Textual)
Line of credit facility maximum borrowing capacity		$ 23,000,000
Outstanding borrowings		22,100,000
Additional borrowing capacity available		$ 860,000
Effective borrowing rate (as a percent)		5.82%
Proceeds from Contributed Capital		$ 6,600,000
Line of Credit [Member]
Bank Credit Facility (Textual)
Revolving credit facility, description		In 2016, Carbon entered into a 4-year $100.0 million senior secured asset-based revolving credit facility with LegacyTexas Bank. LegacyTexas Bank is the initial lender and acts as administrative agent.
Line of credit facility maximum borrowing capacity		$ 100,000,000	$ 23,000,000
Submit letters of credit		500,000
Initial borrowing		$ 17,000,000
Variable interest rate basis, description		(i) the base rate plus an applicable margin between 0.50% and 1.50% or (ii) the Adjusted LIBOR rate plus an applicable margin between 3.50% and 4.50% at Carbon's option. The actual margin percentage is dependent on the credit facility utilization percentage. Carbon is obligated to pay certain fees and expenses in connection with the credit facility, including a commitment fee for any unused amounts of 0.50%.
Percentage of commitment fee		0.50%
Line of Credit [Member] | Minimum [Member]
Bank Credit Facility (Textual)
LIBOR rate percentage		0.50%
Funded debt ratio required to be maintained	1
Current ratio required to be maintained	1
Line of Credit [Member] | Maximum [Member]
Bank Credit Facility (Textual)
LIBOR rate percentage		1.50%
Funded debt ratio required to be maintained	3.5
Current ratio required to be maintained	1
Line of Credit [Member] | LIBOR [Member] | Minimum [Member]
Bank Credit Facility (Textual)
LIBOR rate percentage		3.50%
Line of Credit [Member] | LIBOR [Member] | Maximum [Member]
Bank Credit Facility (Textual)
LIBOR rate percentage		4.50%

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	Mar. 15, 2017	Jun. 30, 2013	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2012
Stockholders' Equity (Textual)
Reverse stock split, description	Reverse stock split approved by the shareholders and Board of Directors, each 20 shares of issued and outstanding common stock became one share of common stock and no fractional shares were issued.
Common stock, shares authorized			200,000,000		200,000,000		200,000,000
Common stock, par value (in dollars per share)			$ 0.01		$ 0.01		$ 0.01
Common stock, shares issued			5,627,589		5,627,589		5,482,673
Common stock, shares outstanding			5,627,589		5,627,589		5,482,673
Preferred stock, shares authorized			1,000,000		1,000,000		1,000,000
Preferred stock, par value (in dollars per share)			$ 0.01		$ 0.01		$ 0.01
Preferred stock, shares issued			0		0		0
Preferred stock, shares outstanding			0		0		0
Restricted Stock [Member]
Stockholders' Equity (Textual)
Expected period of recognition of unrecognized compensation costs					6 years 6 months
Restricted stock grants					81,000		462,000
Unrecognized compensation cost			$ 1,300,000		$ 1,300,000
Compensation costs			$ 160,000	$ 186,000	$ 513,000	$ 554,000
Restricted stock awards vest period					3 years
Restricted stock grants vested					258,000
Restricted Stock [Member] | Officers, Directors, Employees or Consultants [Member]
Stockholders' Equity (Textual)
Stock incentive plan, common stock shares authorized			1,100,000		1,100,000
Restricted Performance Units [Member]
Stockholders' Equity (Textual)
Restricted stock grants					60,000		401,000
Unrecognized compensation cost			$ 2,400,000		$ 2,400,000		$ 2,500,000	$ 2,500,000	$ 2,500,000	$ 2,500,000
Number of shares outstanding			272,000		272,000
Expected term					3 years
Restricted Performance Units [Member] | Granted during 2012 and 2014 through 2017 [Member]
Stockholders' Equity (Textual)
Compensation costs			$ 53,000	1,100,000	$ 239,000	1,100,000
Restricted Performance Units [Member] | Granted 2013 [Member]
Stockholders' Equity (Textual)
Compensation costs						127,000
Nytis USA Restricted Stock Plan [Member]
Stockholders' Equity (Textual)
Vesting terms of restricted stock		The vesting terms of these restricted stock grants were modified so that 25% of the shares would vest on the first of January from 2014 through 2017.
Vesting, percentage		25.00%
Compensation costs			$ 0	$ 84,000	$ 0	$ 252,000

Accounts Payable and Accrued 44

Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accounts Payable and Accrued Liabilities [Abstract]
Accounts payable	$ 1,801	$ 2,315
Oil and gas revenue payable to oil and gas property owners	1,583	1,415
Gathering and transportation payables	498	468
Production taxes payable	212	113
Drilling advances received from joint venture partner	422	955
Accrued drilling costs		4
Accrued lease operating costs	535	282
Accrued ad valorem taxes	1,461	1,552
Accrued general and administrative expenses	1,085	1,572
Accrued interest	232	184
Other liabilities	264	261
Total accounts payable and accrued liabilities	$ 8,093	$ 9,121

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Assets:
Commodity derivatives	$ 247
Liabilities:
Commodity derivatives		$ 1,932
Warrant derivatives	2,951
Level 3 [Member]
Liabilities:
Commodity derivatives			$ 4,600
Recurring basis [Member] | Level 1 [Member]
Assets:
Commodity derivatives
Liabilities:
Commodity derivatives
Warrant derivatives
Recurring basis [Member] | Level 2 [Member]
Assets:
Commodity derivatives	247
Liabilities:
Commodity derivatives		1,932
Warrant derivatives
Recurring basis [Member] | Level 3 [Member]
Assets:
Commodity derivatives
Liabilities:
Commodity derivatives
Warrant derivatives	$ 2,951

Fair Value Measurements (Deta46

Fair Value Measurements (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance, December 31, 2016	$ 1,932
Unrealized (gain) loss included in warrant derivative gain	$ 2,179	$ (823)
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance, December 31, 2016
Warrant Derivative Liability		7,094
Unrealized (gain) loss included in warrant derivative gain		2,494
Balance, September 30, 2017		4,600
California Warrant [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance, December 31, 2016
Warrant Derivative Liability		5,769
Unrealized (gain) loss included in warrant derivative gain		(2,817)
Balance, September 30, 2017		2,952
Appalachia Warrant [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance, December 31, 2016
Warrant Derivative Liability		1,325
Unrealized (gain) loss included in warrant derivative gain		323
Balance, September 30, 2017		$ 1,648

Fair Value Measurements (Deta47

Fair Value Measurements (Details Textual) - USD ($)	Apr. 03, 2017	Feb. 15, 2017	Sep. 30, 2017	Sep. 30, 2016
Fair Value Measurements (Textual)
Asset retirement obligation			$ 5,000	$ 5,000
Carbon Appalachia Class A [Member] | Level 3 [Member]
Fair Value Measurements (Textual)
Fair value of warrant	$ 1,300,000		1,600,000
Exercise price	$ 7.20
Volatility rate	39.30%
Risk free rate	2.10%
California Warrant [Member] | Level 3 [Member]
Fair Value Measurements (Textual)
Fair value of warrant		$ 5,800,000	$ 3,000,000
Exercise price		$ 7.20
Volatility rate		41.80%
Risk free rate		2.30%
Term		7 years
Carbon California Class A units [Member] | Level 3 [Member]
Fair Value Measurements (Textual)
Exercise price			$ 7.20
Volatility rate			45.00%
Risk free rate			2.10%
Term			6 years 4 months 24 days
Carbon Appalachia Class A units [Member] | Level 3 [Member]
Fair Value Measurements (Textual)
Exercise price			$ 7.20
Volatility rate			45.00%
Risk free rate			2.10%
Term			6 years 6 months

Physical Delivery Contracts a48

Physical Delivery Contracts and Gas Derivatives (Details)	Sep. 30, 2017USD_MMBtuUSD_Bbl$ / shares
2017 [Member] | Natural Gas Swaps [Member]
Derivative Instrument [Abstract]
Quantity | USD_MMBtu	900,000
Weighted Average Price	$ 3.27
2017 [Member] | Natural Gas Collars [Member]
Derivative Instrument [Abstract]
Quantity | USD_MMBtu	30,000
2017 [Member] | Natural Gas Collars [Member] | Maximum [Member]
Derivative Instrument [Abstract]
Weighted Average Price	$ 3.48	[1]
2017 [Member] | Natural Gas Collars [Member] | Minimum [Member]
Derivative Instrument [Abstract]
Weighted Average Price	$ 3	[1]
2017 [Member] | Oil Swaps [Member]
Derivative Instrument [Abstract]
Quantity | USD_Bbl	23,000
Weighted Average Price	$ 52.64	[2]
2018 [Member] | Natural Gas Swaps [Member]
Derivative Instrument [Abstract]
Quantity | USD_MMBtu	3,390,000
Weighted Average Price	$ 3.01	[1]
2018 [Member] | Natural Gas Collars [Member]
Derivative Instrument [Abstract]
Quantity | USD_MMBtu	90,000
2018 [Member] | Natural Gas Collars [Member] | Maximum [Member]
Derivative Instrument [Abstract]
Weighted Average Price	$ 3.48	[1]
2018 [Member] | Natural Gas Collars [Member] | Minimum [Member]
Derivative Instrument [Abstract]
Weighted Average Price	$ 3	[1]
2018 [Member] | Oil Swaps [Member]
Derivative Instrument [Abstract]
Quantity | USD_Bbl	60,000
Weighted Average Price	$ 53.36	[2]
2019 [Member] | Natural Gas Swaps [Member]
Derivative Instrument [Abstract]
Quantity | USD_MMBtu	1,920,000
Weighted Average Price	$ 2.85	[1]
2019 [Member] | Oil Swaps [Member]
Derivative Instrument [Abstract]
Quantity | USD_Bbl	48,000
Weighted Average Price	$ 53.76	[2]
[1]	NYMEX Henry Hub Natural Gas futures contract for the respective delivery month.
[2]	NYMEX Light Sweet Crude West Texas Intermediate futures contract for the respective delivery month

Physical Delivery Contracts a49

Physical Delivery Contracts and Gas Derivatives (Details 1) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Commodity derivative contracts:
Current assets	$ 190
Non-current assets	57
Current liabilities		$ 1,341
Non-current liabilities		$ 591

Physical Delivery Contracts a50

Physical Delivery Contracts and Gas Derivatives (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Commodity derivative contracts:
Unrealized (losses) gains			$ 2,179	$ (823)
Commodity derivative contracts [Member]
Commodity derivative contracts:
Settlement gains	$ 345	$ 17	463	349
Unrealized (losses) gains	(844)	143	2,179	(823)
Total settlement and unrealized (losses) gains, net	$ (499)	$ 160	$ 2,642	$ (474)

Physical Delivery Contracts a51

Physical Delivery Contracts and Gas Derivatives (Details 3) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Commodity derivative assets:
Current assets	$ 190
Other long-term assets	57
Total derivative assets	247
Commodity derivative liabilities:
Current liability		$ 1,341
Non-current liabilities		591
Total derivative liabilities		$ 1,932
Gross Recognized Assets/Liabilities [Member]
Commodity derivative assets:
Current assets	448
Other long-term assets	305
Total derivative assets	753
Commodity derivative liabilities:
Current liability	258
Non-current liabilities	248
Total derivative liabilities	506
Gross Amounts Offset [Member]
Commodity derivative assets:
Current assets	(258)
Other long-term assets	(248)
Total derivative assets	(506)
Commodity derivative liabilities:
Current liability	(258)
Non-current liabilities	(248)
Total derivative liabilities	(506)
Net Recognized Fair Value Assets/Liabilities [Member]
Commodity derivative assets:
Current assets	190
Other long-term assets	57
Total derivative assets	247
Commodity derivative liabilities:
Current liability
Non-current liabilities
Total derivative liabilities

Commitments (Details)

Commitments (Details)	9 Months Ended
	Sep. 30, 2017Per_McfePartnership
Oct 2017 - Apr 2018 [Member]
Other Commitments [Line Items]
Capacity levels (Dekatherms per day) | Partnership	5,530
Oct 2017 - Apr 2018 [Member] | Minimum [Member]
Other Commitments [Line Items]
Demand charges (in dollars per dekatherm)	0.20
Oct 2017 - Apr 2018 [Member] | Maximum [Member]
Other Commitments [Line Items]
Demand charges (in dollars per dekatherm)	0.65
May 2018 - May 2020 [Member]
Other Commitments [Line Items]
Capacity levels (Dekatherms per day) | Partnership	3,230
May 2018 - May 2020 [Member] | Minimum [Member]
Other Commitments [Line Items]
Demand charges (in dollars per dekatherm)	0.20
May 2018 - May 2020 [Member] | Maximum [Member]
Other Commitments [Line Items]
Demand charges (in dollars per dekatherm)	0.62
Apr 2020 - May 2020 [Member]
Other Commitments [Line Items]
Capacity levels (Dekatherms per day) | Partnership	2,150
Demand charges (in dollars per dekatherm)	0.20
Jun 2020 - May 2036 [Member]
Other Commitments [Line Items]
Capacity levels (Dekatherms per day) | Partnership	1,000
Demand charges (in dollars per dekatherm)	0.20

Commitments (Details Textual)

Commitments (Details Textual)	Sep. 30, 2017USD ($)
Commitments (Textual)
Liability related to firm transportation contracts assumed	$ 400,000
Capital commitment	6,900,000
Carbon Appalachia Class A [Member]
Commitments (Textual)
Capital commitment	$ 23,600,000

Supplemental Cash Flow Disclo54

Supplemental Cash Flow Disclosure (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash paid during the period for:
Interest	$ 645	$ 117
Non-cash transactions:
Increase in net asset retirement obligations	5	5
Decrease in accounts payable and accrued liabilities included in oil and gas properties	(12)	(23)
Issuance of warrants for investment in affiliates	$ 7,094

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Millions	1 Months Ended
	Nov. 01, 2017	Nov. 13, 2017	Sep. 30, 2017
Subsequent Events [Textual]
Borrowing base associated with the credit facility			$ 23
Subsequent Event [Member] | Carbon Appalachia Class A units [Member]
Subsequent Events [Textual]
Subsequent event, description	Carbon owns 26.5% of Carbon Appalachia outstanding Class A Units along with its 1% Class C ownership.
Common stock in exchange of issuance	432,051
Percentage of outstanding warrants	7.95%
Subsequent Event [Member] | LegacyTexas Bank [Member]
Subsequent Events [Textual]
Borrowing base associated with the credit facility		$ 23