Royale Energy Funds 10-Q 21 Oct 13 2013 Q3 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
	Sep. 30, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	ROYALE ENERGY INC
Document Type	10-Q
Current Fiscal Year End Date	-19
Entity Common Stock, Shares Outstanding	14,635,362
Amendment Flag	FALSE
Entity Central Index Key	864839
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	30-Sep-13
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current Assets
Cash and Cash Equivalents	$2,462,511	$1,489,930
Accounts Receivable, net	3,700,285	3,969,160
Prepaid Expenses	852,963	469,038
Available for Sale Securities	16,448	0
Inventory	322,456	612,464
Total Current Assets	7,354,663	6,540,592
Other Assets	946	6,946
Oil and Gas Properties, at cost, (successful efforts basis), Equipment and Fixtures	9,954,859	10,955,797
Total Assets	17,310,468	17,503,335
Current Liabilities:
Accounts Payable and Accrued Expenses	4,286,513	4,932,468
Current Portion of Long-Term Debt, Net of Discount	0	2,258,668
Current Portion of Deferred Tax Liability	1,775	1,775
Deferred Revenue from Turnkey Drilling	7,247,071	8,693,743
Total Current Liabilities	11,535,359	15,886,654
Noncurrent Liabilities:
Asset Retirement Obligation	937,990	954,088
Total Noncurrent Liabilities	937,990	954,088
Total Liabilities	12,473,349	16,840,742
Stockholders' Equity:
Common Stock, no par value, 20,000,000 shares authorized, 14,635,362 and 12,545,465 shares issued and outstanding , respectively	37,412,870	33,247,571
Convertible preferred stock, Series AA, no par value, 147,500 shares authorized; 52,784 and 52,784 shares issued and outstanding, respectively	154,014	154,014
Accumulated Deficit	-33,043,565	-34,186,930
Accumulated Other Comprehensive Income	9,945	0
Paid in Capital	303,855	1,447,938
Total Stockholders' Equity	4,837,119	662,593
Total Liabilities and Stockholders' Equity	$17,310,468	$17,503,335

BALANCE_SHEETS_Parentheticals

BALANCE SHEETS (Parentheticals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Common stock, shares authorized (in Shares)	20,000,000	20,000,000
Common stock, shares issued (in Shares)	14,635,362	12,545,465
Common stock, shares outstanding (in Shares)	14,635,362	12,545,465
Common Stock, no par value (in Dollars per share)
Convertible Preferred Stock, shares authorized (in Shares)	147,500	147,500
Convertible Preferred Stock, shares issued (in Shares)	52,784	52,784
Convertible Preferred Stock, shares outstanding (in Shares)	52,784	52,784
Convertible preferred stock, Series AA, no par value (in Dollars per share)

STATEMENTS_OF_OPERATIONS_Unaud

STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues:
Sale of Oil and Gas	$498,838	$387,477	$1,286,834	$1,255,321
Turnkey drilling	2,470,322	0	3,363,989	0
Supervisory Fees and Other	160,496	166,170	485,534	535,717
Total Revenues	3,129,656	553,647	5,136,357	1,791,038
Costs and Expenses:
General and Administrative	753,227	821,603	2,309,441	2,833,050
Turnkey Drilling and Development	1,220,536	-343,707	1,762,379	-153,549
Lease Operating	326,515	272,635	860,465	878,966
Lease Impairment	46,311	20,500	46,311	202,127
Geological and Geophysical Expense	24,997	773	24,997	423,459
Inventory Write Down	39,185	0	39,185	62,744
Legal and Accounting	26,509	80,772	278,973	500,647
Marketing	101,844	182,161	204,565	508,302
Depreciation, Depletion and Amortization	346,093	656,909	807,357	1,394,028
Total Costs and Expenses	2,885,217	1,691,646	6,333,673	6,649,774
Gain on Sale of Assets, Net	350,233	1,547	2,645,153	3,284
Income (Loss) From Operations	594,672	-1,136,452	1,447,837	-4,855,452
Other Income (Expense):
Interest Expense	-1,105	-19,039	-304,472	-87,401
Income (Loss) Before Income Tax Expense (Benefit)	593,567	-1,155,491	1,143,365	-4,942,853
Income tax provision (benefit)	0	-330,306	0	-1,434,089
Net Income (Loss)	593,567	-825,185	1,143,365	-3,508,764
Basic Earnings (Loss) Per Share (in Dollars per share)	$0.04	($0.07)	$0.08	($0.32)
Diluted Earnings (Loss) Per Share (in Dollars per share)	$0.04	($0.07)	$0.08	($0.32)
Other Comprehensive Income
Unrealized Gain on Equity Securities	9,945	1,501	9,945	1,843
Other Comprehensive Income, before tax	9,945	1,501	9,945	1,843
Income Tax Expense Related to Items of Other Comprehensive Income	0	436	0	535
Other Comprehensive Income, net of tax	9,945	1,065	9,945	1,308
Comprehensive Income (Loss)	$603,512	($824,120)	$1,153,310	($3,507,456)

STATEMENTS_OF_CASH_FLOWS_Unaud

STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$1,143,365	($3,508,764)
Adjustments to Reconcile Net Income (Loss) to Net Cash Used by Operating Activities:
Depreciation, Depletion and Amortization	807,357	1,394,028
Lease Impairment	46,311	202,127
(Gain) Loss on Sale of Assets	-2,645,153	-3,284
Inventory Write Down	39,185	62,744
Stock-Based Compensation, net of adjustments	0	29,445
Debt Discount Amortization, net of adjustments	280,583	0
Decrease (Increase) in:
Accounts Receivable	268,875	218,830
Prepaid Expenses and Other Assets	-215,286	143,013
Increase (Decrease) in:
Accounts Payable and Accrued expenses	-662,053	11,040
Deferred Revenues - DWI	-1,446,672	2,747,939
Deferred Income Tax expense (benefit)	0	-1,434,089
Net Cash Used by Operating Activities	-2,383,488	-136,971
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for Oil and Gas Properties and Other Capital Expenditures	-1,146,651	-774,968
Proceeds from Sale of Assets	4,020,755	1,737
Net Cash Provided (Used) by Investing Activities	2,874,104	-773,231
CASH FLOWS FROM FINANCING ACTIVITIES
Principal Payments on Long-Term Debt	-1,183,333	-1,800,000
Proceeds from Stock Option and Warrant Exercises	643,630	299,500
Proceeds from Sale of Common Stock	1,021,668	1,033,640
Net Cash Provided (Used) by Financing Activities	481,965	-466,860
Net Increase/Decrease in Cash and Cash Equivalents	972,581	-1,377,062
Cash at Beginning of Year	1,489,930	2,946,131
Cash at End of Period	2,462,511	1,569,069
Cash Paid for Interest	23,890	83,196
Cash Paid for Taxes	800	800
Non-Cash Investing and Financing Transactions
Unrealized Gain on Equity Securities	9,945	1,843
Conversion of Debt and accrued interest to Common Stock	$1,355,918	$0

NOTE_1

NOTE 1	9 Months Ended
	Sep. 30, 2013
Disclosure Text Block [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	NOTE 1 – In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normally recurring adjustments, necessary to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented.  The results of operations for the nine month period are not, in management’s opinion, indicative of the results to be expected for a full year of operations.  It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in the Company’s latest annual report.

NOTE_2_EARNINGS_LOSS_PER_SHARE

NOTE 2 - EARNINGS (LOSS) PER SHARE	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	NOTE 2 – EARNINGS (LOSS) PER SHARE
	Basic and diluted earnings (loss) per share are calculated as follows:
		For the Nine Months ended
		September 30, 2013
		Earnings			Shares		Per-Share
		(Numerator)			(Denominator)		Amount
	Basic Earnings Per Share:
	Net Income available to common stock	$	1,143,365			13,567,216	$	0.08
	Diluted Earnings Per Share:
	Effect of dilutive securities and stock options		0			685,621		0
	Net Earnings available to common stock	$	1,143,365			14,252,837	$	0.08
		For the Nine Months ended
		September 30, 2012 - Restated
		Earnings (Loss)			Shares		Per-Share
		(Numerator)			(Denominator)		Amount
	Basic Earnings (Loss) Per Share:
	Net income available to common stock	$	(3,508,764	)		11,027,124	$	(0.32	)
	Diluted Earning (Loss) Per Share:
	Effect of dilutive securities and stock options		0			0		0
	Net Earnings (loss) available to common stock	$	(3,508,764	)		11,027,124	$	(0.32	)
	For the nine months ended September 30, 2012, Royale Energy had dilutive securities of 887,681.  These securities were not included in the dilutive earnings (loss) per share due to their antidilutive nature.

NOTE_3_OIL_AND_GAS_PROPERTIES_

NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES	9 Months Ended
	Sep. 30, 2013
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Oil and Gas Exploration and Production Industries Disclosures [Text Block]	NOTE 3 – OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES
	Oil and gas properties, equipment and fixtures consist of the following:
		September 30, 2013			December 31,
		(Unaudited)			2012
					(Audited)
	Oil and Gas
	Producing properties, including drilling costs	$	25,170,304		$	24,327,806
	Undeveloped properties		2,877,378			4,034,292
	Lease and well equipment		9,838,582			9,724,602
			37,886,264			38,086,700
	Accumulated depletion, depreciation & amortization		(28,525,710	)		(27,756,493	)
			9,360,554			10,330,207
	Commercial and Other
	Real estate, including furniture and fixtures	$	502,344		$	502,344
	Vehicles		120,314			151,669
	Furniture and equipment		1,300,803			1,299,300
			1,923,461			1,953,313
	Accumulated depreciation		(1,329,156	)		(1,327,723	)
			594,305			625,590
		$	9,954,859		$	10,955,797
	The guidance set forth in the Continued Capitalization of Exploratory Well Costs paragraph of the Extractive Activities Topic of the FASB Accounting Standards Codification requires that we evaluate all existing capitalized exploratory well costs and disclose the extent to which any such capitalized costs have become impaired and are expensed or reclassified during a fiscal period. We did not make any additions to capitalized exploratory well costs pending a determination of proved reserves during the periods in 2013 or 2012.

NOTE_4_STOCK_BASED_COMPENSATIO

NOTE 4 - STOCK BASED COMPENSATION	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE 4 – STOCK BASED COMPENSATION
	During the Board of Directors meeting held in December 2010, directors and officers of Royale Energy were each granted 50,000 stock options, a total of 400,000 options, to purchase common stock at an exercise price of $3.25 per share.  These options are to vest in two parts; the first 200,000 options vested on January 1, 2011; the remaining 200,000 options vested on January 1, 2012.  The options were granted with a legal life of five years, and a service period of two years beginning on January 1, 2011.  During the first nine months of 2012 Royale recognized costs of $19,630 relating to this grant as well as $5,696 in a tax benefit relating to this grant.  No stock-based compensation was recognized during the first nine months of 2013.

NOTE_5_FINANCIAL_INFORMATION_R

NOTE 5 - FINANCIAL INFORMATION RELATING TO INDUSTRY SEGMENTS	9 Months Ended
	Sep. 30, 2013
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	NOTE 5 – FINANCIAL INFORMATION RELATING TO INDUSTRY SEGMENTS
	Royale Energy identifies reportable segments by product. Royale Energy includes revenues from both external customers and revenues from transactions with other operating segments in its measure of segment profit or loss. Royale Energy also includes interest revenue and expense, DD&A, and other operating expenses in its measure of segment profit or loss.
	Royale Energy's operations are classified into two principal industry segments. Following is a summary of segmented information for the nine months ended September 30, 2013, and 2012 -Restated:
		Oil and Gas
		Producing			Turnkey
		and			Drilling
		Exploration			Services			Total
	Nine Months Ended September 30, 2013:
	Revenues from External Customers	$	1,286,834			3,363,989			4,650,823
	Supervisory Fees		467,096			0			467,096
	Interest Revenue		0			18,438			18,438
	Interest Expense		152,236			152,236			304,472
	Operating Expenses for Segment Assets		2,451,811			3,028,194			5,480,005
	Depreciation, Depletion and Amortization		766,989			40,368			807,357
	Lease Impairment		23,156			23,155			46,311
	Gain on Sale of Assets		2,645,153			0			2,645,153
	Income Tax Benefit		0			0			0
	Total Assets	$	16,444,945			865,523			17,310,468
	Net Income (Loss)	$	1,004,891			138,474			1,143,365
		Oil and Gas
		Producing			Turnkey
		and			Drilling
		Exploration			Services			Total
	Nine Months Ended September 30, 2012 - Restated:
	Revenues from External Customers	$	1,255,321		$	0		$	1,255,321
	Supervisory Fees		530,025			0			530,025
	Interest Revenue		0			5,692			5,692
	Interest Expense		43,701			43,700			87,401
	Expenditures for Segment Assets		3,332,051			1,721,568			5,053,619
	Depreciation, Depletion and Amortization		1,324,327			69,701			1,394,028
	Lease Impairment		101,064			101,063			202,127
	Gain on Sale of Assets		3,284			0			3,284
	Income Tax Benefit		(874,032	)		(560,057	)		(1,434,089	)
	Total Assets	$	18,582,220		$	978,012		$	19,560,232
	Net Loss	$	(2,138,481	)	$	(1,370,283	)	$	(3,508,764	)

NOTE_6_RESTATEMENT_TO_REFLECT_

NOTE 6 - RESTATEMENT TO REFLECT CHANGE IN REVENUE RECOGNITION POLICY	9 Months Ended
	Sep. 30, 2013
Accounting Changes and Error Corrections [Abstract]
Accounting Changes and Error Corrections [Text Block]	NOTE 6 – RESTATEMENT TO REFLECT CHANGE IN REVENUE RECOGNITION POLICY
	The Company has restated its previously issued 2012 financial statements for the correction of an error in the method of revenue recognition.   Subsequent to the issuance of the financial statements of the Company as of December 31, 2012 and 2011, and for the years then ended, we reevaluated our policy regarding the recognition of pre-drilling and drilling service revenue.  Beginning with the fiscal year ending December 31, 2010 we have changed our revenue recognition policy to recognize all pre-drilling and drilling service revenue, provided under turnkey drilling agreements, at the time drilling of the well is completed.  Accordingly, the financial statements as of September 30, 2012, and for the periods then ended have been restated to correct an error in our method of revenue recognition to reflect changes in Deferred Revenue, Accumulated Deficit, Deferred Income Tax Asset, and Turnkey Drilling Revenue  relating to the Company’s revenue recognition method.  The effect on the Company’s issued September 30, 2012 financial statements is summarized below:
		As Previously
		Reported			As Restated
	Statement of Comprehensive Loss for the Three Month Period Ended September 30, 2012
	Turnkey Drilling	$	83,591		$	0
	Total  Revenue		637,238			553,647
	Loss from Operations		(1,052,861	)		(1,136,452	)
	Loss Before Income Tax Benefit		(1,071,900	)		(1,155,491	)
	Income Tax Benefit		(306,826	)		(330,306	)
	Net Loss		(765,074	)		(825,185	)
	Comprehensive Loss		(764,009	)		(824,120	)
	Statement of Comprehensive Loss for the Nine Month Period Ended September 30, 2012:
	Turnkey Drilling		676,149			0
	Total Revenues		2,467,187			1,791,038
	Loss From Operations		(4,179,303	)		(4,855,452	)
	Loss Before Income Tax Benefit		(4,266,704	)		(4,942,853	)
	Income Tax Benefit		(1,237,915	)		(1,434,089	)
	Net Loss		(3,028,789	)		(3,508,764	)
	Comprehensive Loss		(3,027,481	)		(3,507,456	)

NOTE_2_EARNINGS_LOSS_PER_SHARE1

NOTE 2 - EARNINGS (LOSS) PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Basic and diluted earnings (loss) per share are calculated as follows:
		For the Nine Months ended
		September 30, 2013
		Earnings			Shares		Per-Share
		(Numerator)			(Denominator)		Amount
	Basic Earnings Per Share:
	Net Income available to common stock	$	1,143,365			13,567,216	$	0.08
	Diluted Earnings Per Share:
	Effect of dilutive securities and stock options		0			685,621		0
	Net Earnings available to common stock	$	1,143,365			14,252,837	$	0.08
		For the Nine Months ended
		September 30, 2012 - Restated
		Earnings (Loss)			Shares		Per-Share
		(Numerator)			(Denominator)		Amount
	Basic Earnings (Loss) Per Share:
	Net income available to common stock	$	(3,508,764	)		11,027,124	$	(0.32	)
	Diluted Earning (Loss) Per Share:
	Effect of dilutive securities and stock options		0			0		0
	Net Earnings (loss) available to common stock	$	(3,508,764	)		11,027,124	$	(0.32	)

NOTE_3_OIL_AND_GAS_PROPERTIES_1

NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES (Tables)	9 Months Ended
	Sep. 30, 2013
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Schedule of Oil and Gas Properties, Equipment and Fixtures [Table Text Block]	Oil and gas properties, equipment and fixtures consist of the following:
		September 30, 2013			December 31,
		(Unaudited)			2012
					(Audited)
	Oil and Gas
	Producing properties, including drilling costs	$	25,170,304		$	24,327,806
	Undeveloped properties		2,877,378			4,034,292
	Lease and well equipment		9,838,582			9,724,602
			37,886,264			38,086,700
	Accumulated depletion, depreciation & amortization		(28,525,710	)		(27,756,493	)
			9,360,554			10,330,207
	Commercial and Other
	Real estate, including furniture and fixtures	$	502,344		$	502,344
	Vehicles		120,314			151,669
	Furniture and equipment		1,300,803			1,299,300
			1,923,461			1,953,313
	Accumulated depreciation		(1,329,156	)		(1,327,723	)
			594,305			625,590
		$	9,954,859		$	10,955,797

NOTE_5_FINANCIAL_INFORMATION_R1

NOTE 5 - FINANCIAL INFORMATION RELATING TO INDUSTRY SEGMENTS (Tables)	9 Months Ended
	Sep. 30, 2013
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Royale Energy's operations are classified into two principal industry segments. Following is a summary of segmented information for the nine months ended September 30, 2013, and 2012 -Restated:
		Oil and Gas
		Producing			Turnkey
		and			Drilling
		Exploration			Services			Total
	Nine Months Ended September 30, 2013:
	Revenues from External Customers	$	1,286,834			3,363,989			4,650,823
	Supervisory Fees		467,096			0			467,096
	Interest Revenue		0			18,438			18,438
	Interest Expense		152,236			152,236			304,472
	Operating Expenses for Segment Assets		2,451,811			3,028,194			5,480,005
	Depreciation, Depletion and Amortization		766,989			40,368			807,357
	Lease Impairment		23,156			23,155			46,311
	Gain on Sale of Assets		2,645,153			0			2,645,153
	Income Tax Benefit		0			0			0
	Total Assets	$	16,444,945			865,523			17,310,468
	Net Income (Loss)	$	1,004,891			138,474			1,143,365
		Oil and Gas
		Producing			Turnkey
		and			Drilling
		Exploration			Services			Total
	Nine Months Ended September 30, 2012 - Restated:
	Revenues from External Customers	$	1,255,321		$	0		$	1,255,321
	Supervisory Fees		530,025			0			530,025
	Interest Revenue		0			5,692			5,692
	Interest Expense		43,701			43,700			87,401
	Expenditures for Segment Assets		3,332,051			1,721,568			5,053,619
	Depreciation, Depletion and Amortization		1,324,327			69,701			1,394,028
	Lease Impairment		101,064			101,063			202,127
	Gain on Sale of Assets		3,284			0			3,284
	Income Tax Benefit		(874,032	)		(560,057	)		(1,434,089	)
	Total Assets	$	18,582,220		$	978,012		$	19,560,232
	Net Loss	$	(2,138,481	)	$	(1,370,283	)	$	(3,508,764	)

NOTE_6_RESTATEMENT_TO_REFLECT_1

NOTE 6 - RESTATEMENT TO REFLECT CHANGE IN REVENUE RECOGNITION POLICY (Tables)	9 Months Ended
	Sep. 30, 2013
Accounting Changes and Error Corrections [Abstract]
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]	The effect on the Company’s issued September 30, 2012 financial statements is summarized below:
		As Previously
		Reported			As Restated
	Statement of Comprehensive Loss for the Three Month Period Ended September 30, 2012
	Turnkey Drilling	$	83,591		$	0
	Total  Revenue		637,238			553,647
	Loss from Operations		(1,052,861	)		(1,136,452	)
	Loss Before Income Tax Benefit		(1,071,900	)		(1,155,491	)
	Income Tax Benefit		(306,826	)		(330,306	)
	Net Loss		(765,074	)		(825,185	)
	Comprehensive Loss		(764,009	)		(824,120	)
	Statement of Comprehensive Loss for the Nine Month Period Ended September 30, 2012:
	Turnkey Drilling		676,149			0
	Total Revenues		2,467,187			1,791,038
	Loss From Operations		(4,179,303	)		(4,855,452	)
	Loss Before Income Tax Benefit		(4,266,704	)		(4,942,853	)
	Income Tax Benefit		(1,237,915	)		(1,434,089	)
	Net Loss		(3,028,789	)		(3,508,764	)
	Comprehensive Loss		(3,027,481	)		(3,507,456	)

NOTE_2_EARNINGS_LOSS_PER_SHARE2

NOTE 2 - EARNINGS (LOSS) PER SHARE (Details)	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	887,681

NOTE_2_EARNINGS_LOSS_PER_SHARE3

NOTE 2 - EARNINGS (LOSS) PER SHARE (Details) - Schedule of Earnings Per Share, Basic and Diluted (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Basic Earnings Per Share:
Net Income available to common stock (in Dollars per share)	$0.04	($0.07)	$0.08	($0.32)
Diluted Earnings Per Share:
Net Earnings available to common stock (in Dollars per share)	$0.04	($0.07)	$0.08	($0.32)
Income (Numerator) [Member]
Basic Earnings Per Share:
Net Income available to common stock			$1,143,365	($3,508,764)
Diluted Earnings Per Share:
Effect of dilutive securities and stock options			0	0
Net Earnings available to common stock			1,143,365	-3,508,764
Shares (Denominator) [Member]
Basic Earnings Per Share:
Net Income available to common stock (in Shares)			13,567,216	11,027,124
Diluted Earnings Per Share:
Effect of dilutive securities and stock options (in Shares)			685,621	0
Net Earnings available to common stock (in Shares)			14,252,837	11,027,124
Per-share Amount [Member]
Basic Earnings Per Share:
Net Income available to common stock (in Dollars per share)			$0.08	($0.32)
Diluted Earnings Per Share:
Effect of dilutive securities and stock options			$0	$0
Net Earnings available to common stock (in Dollars per share)			$0.08	($0.32)

NOTE_3_OIL_AND_GAS_PROPERTIES_2

NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES (Details) - Schedule of Oil and Gas Properties, Equipment and Fixtures (USD $)	Sep. 30, 2013	Dec. 31, 2012
Oil and Gas
Producing properties, including drilling costs	$25,170,304	$24,327,806
Undeveloped properties	2,877,378	4,034,292
Lease and well equipment	9,838,582	9,724,602
	37,886,264	38,086,700
Accumulated depletion, depreciation & amortization	-28,525,710	-27,756,493
	9,360,554	10,330,207
Commercial and Other
Real estate, including furniture and fixtures	502,344	502,344
Vehicles	120,314	151,669
Furniture and equipment	1,300,803	1,299,300
	1,923,461	1,953,313
Accumulated depreciation	-1,329,156	-1,327,723
	594,305	625,590
	$9,954,859	$10,955,797

NOTE_4_STOCK_BASED_COMPENSATIO1

NOTE 4 - STOCK BASED COMPENSATION (Details) (Employee Stock Option [Member], USD $)	9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2010
NOTE 4 - STOCK BASED COMPENSATION (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)			400,000
Share-based Compensation by Share-based Payment Award, Options, Exercise Price of Options (in Dollars per share)			$3.25
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights			vest in two parts; the first 200,000 options vested on January 1, 2011; the remaining 200,000 options vested on January 1, 2012
Share-based Compensation by Share-based Payment Award, Options, Term of Options			5 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period			2 years
Allocated Share-based Compensation Expense	$0	$19,630
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense		$5,696
Options Granted to Each Director and Executive Officer [Member]
NOTE 4 - STOCK BASED COMPENSATION (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)			50,000

NOTE_5_FINANCIAL_INFORMATION_R2

NOTE 5 - FINANCIAL INFORMATION RELATING TO INDUSTRY SEGMENTS (Details)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Segment Reporting [Abstract]
Number of Operating Segments	2	2

NOTE_5_FINANCIAL_INFORMATION_R3

NOTE 5 - FINANCIAL INFORMATION RELATING TO INDUSTRY SEGMENTS (Details) - Schedule of Segment Reporting Information, by Segment (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Segment Reporting Information [Line Items]
Revenues from External Customers			$4,650,823	$1,255,321
Supervisory Fees			467,096	530,025
Interest Revenue			18,438	5,692
Interest Expense	1,105	19,039	304,472	87,401
Operating Expenses for Segment Assets			5,480,005	5,053,619
Depreciation, Depletion, and Amortization			807,357	1,394,028
Lease Impairment	46,311	20,500	46,311	202,127
Gain on Sale of Assets	350,233	1,547	2,645,153	3,284
Income Tax (Benefit)	0	-330,306	0	-1,434,089
Total Assets	17,310,468	19,560,232	17,310,468	19,560,232	17,503,335
Net Income (Loss)	593,567	-825,185	1,143,365	-3,508,764
Oil and Gas Producing and Exploration [Member]
Segment Reporting Information [Line Items]
Revenues from External Customers			1,286,834	1,255,321
Supervisory Fees			467,096	530,025
Interest Revenue			0	0
Interest Expense			152,236	43,701
Operating Expenses for Segment Assets			2,451,811	3,332,051
Depreciation, Depletion, and Amortization			766,989	1,324,327
Lease Impairment			23,156	101,064
Gain on Sale of Assets			2,645,153	3,284
Income Tax (Benefit)			0	-874,032
Total Assets	16,444,945	18,582,220	16,444,945	18,582,220
Net Income (Loss)			1,004,891	-2,138,481
Turnkey Drilling Services [Member]
Segment Reporting Information [Line Items]
Revenues from External Customers			3,363,989	0
Supervisory Fees			0	0
Interest Revenue			18,438	5,692
Interest Expense			152,236	43,700
Operating Expenses for Segment Assets			3,028,194	1,721,568
Depreciation, Depletion, and Amortization			40,368	69,701
Lease Impairment			23,155	101,063
Gain on Sale of Assets			0	0
Income Tax (Benefit)			0	-560,057
Total Assets	865,523	978,012	865,523	978,012
Net Income (Loss)			$138,474	($1,370,283)

NOTE_6_RESTATEMENT_TO_REFLECT_2

NOTE 6 - RESTATEMENT TO REFLECT CHANGE IN REVENUE RECOGNITION POLICY (Details) - Schedule of Error Corrections and Prior Period Adjustments (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Turnkey Drilling	$2,470,322	$0	$3,363,989	$0
Total Revenues	3,129,656	553,647	5,136,357	1,791,038
Loss From Operations	594,672	-1,136,452	1,447,837	-4,855,452
Loss Before Income Tax Benefit	593,567	-1,155,491	1,143,365	-4,942,853
Income Tax Benefit	0	-330,306	0	-1,434,089
Net Loss	593,567	-825,185	1,143,365	-3,508,764
Comprehensive Loss	603,512	-824,120	1,153,310	-3,507,456
Scenario, Previously Reported [Member]
Turnkey Drilling		83,591		676,149
Total Revenues		637,238		2,467,187
Loss From Operations		-1,052,861		-4,179,303
Loss Before Income Tax Benefit		-1,071,900		-4,266,704
Income Tax Benefit		-306,826		-1,237,915
Net Loss		-765,074		-3,028,789
Comprehensive Loss		($764,009)		($3,027,481)