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) |