Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Apr. 15, 2014 | Jun. 30, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'Spindletop Oil & Gas Co. | ' | ' |
Entity Central Index Key | '0000867038 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'true | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' | ' |
Is Entity a Voluntary Filer? | 'No | ' | ' |
Is Entity's Reporting Status Current? | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $3,573,255 |
Entity Common Stock, Shares Outstanding | ' | 6,936,269 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Amendment | 'To file Exhibit 101 interactive data. | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets | ' | ' |
Cash and cash equivalents | $9,129,000 | $7,151,000 |
Accounts receivable, trade | 3,633,000 | 2,155,000 |
Other short-term investments | 400,000 | 400,000 |
Total Current Assets | 13,162,000 | 9,706,000 |
Oil and gas properties (full cost method) | 24,823,000 | 22,822,000 |
Rental equipment | 399,000 | 399,000 |
Natural gas gathering system | 145,000 | 145,000 |
Other property and equipment | 251,000 | 251,000 |
Total Property and Equipment | 25,618,000 | 23,617,000 |
Accumulated depreciation and amortization | -13,352,000 | -11,491,000 |
Total Property and Equipment, Net | 12,266,000 | 12,126,000 |
Real Estate Property - at cost | ' | ' |
Land | 688,000 | 688,000 |
Commercial office building | 1,580,000 | 1,580,000 |
Accumulated depreciation | -705,000 | -653,000 |
Total Real Estate Property | 1,563,000 | 1,615,000 |
Other Assets | ' | ' |
Other long-term investments | 1,200,000 | 1,200,000 |
Other assets | 4,000 | 6,000 |
Total Other Assets | 1,204,000 | 1,206,000 |
Total Assets | 28,195,000 | 24,653,000 |
Current Liabilities | ' | ' |
Notes payable, current portion | ' | 120,000 |
Accounts payable and accrued liabilities | 3,935,000 | 3,451,000 |
Income tax payable | 252,000 | 99,000 |
Tax savings benefit | 97,000 | 97,000 |
Total Current Liabilities | 4,284,000 | 3,767,000 |
Notes payable, long-term portion | ' | 600,000 |
Asset Retirement obligation | 1,107,000 | 949,000 |
Total Noncurrent Liabilities | 1,107,000 | 1,549,000 |
Deferred Income Tax Payable | 1,763,000 | 1,838,000 |
Total Liabilities | 7,154,000 | 7,154,000 |
Common Stock, $.01 par value, 100,000,000 shares authorized; 7,677,471 shares issued and 6,936,269 shares outstanding at December 31, 2013 and at December 31, 2012. | 77,000 | 77,000 |
Additional paid-in capital | 943,000 | 943,000 |
Treasury Stock, at cost | -1,536,000 | -1,536,000 |
Retained earnings | 21,557,000 | 18,015,000 |
Total Shareholders' Equity | 21,041,000 | 17,499,000 |
Total Liabilities and Shareholders' Equity | $28,195,000 | $24,653,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common Stock, Par Value $0.01 | ' | ' |
Common Stock, Par Value | $0.01 | $0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 7,677,471 | 7,677,471 |
Common Stock, Shares Outstanding | 6,936,269 | 6,936,269 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenues | ' | ' | ' |
Oil and gas revenues | $12,457,000 | $9,998,000 | $8,000,000 |
Revenue from lease operations | 409,000 | 359,000 | 289,000 |
Natural gas gathering, compression, equipment rental | 142,000 | 145,000 | 172,000 |
Real estate rental income | 249,000 | 242,000 | 436,000 |
Interest Income | 81,000 | 78,000 | 83,000 |
Other | 209,000 | 1,284,000 | 360,000 |
Total Revenues | 13,547,000 | 12,106,000 | 9,340,000 |
Expenses | ' | ' | ' |
Lease operations | 2,524,000 | 2,631,000 | 2,444,000 |
Production taxes, gathering and marketing | 1,001,000 | 891,000 | 809,000 |
Pipeline and rental operations | 42,000 | 26,000 | 25,000 |
Real estate operations | 215,000 | 185,000 | 225,000 |
Depreciation and amortization | 1,913,000 | 1,647,000 | 1,152,000 |
ARO accretion expense | 118,000 | 40,000 | 34,000 |
General and administrative | 3,648,000 | 3,719,000 | 3,275,000 |
Interest expense | 17,000 | 29,000 | 55,000 |
Total Expenses | 9,478,000 | 9,168,000 | 8,019,000 |
Income Before Income Tax | 4,069,000 | 2,938,000 | 1,321,000 |
Current income tax provision (benefit) | 602,000 | 247,000 | -229,000 |
Deferred income tax provision (benefit) | -75,000 | -968,000 | -203,000 |
Total income tax provision (benefit) | 527,000 | -721,000 | -432,000 |
Net Income | $3,542,000 | $3,659,000 | $1,753,000 |
Earnings per Share of Common Stock Basic and Diluted | $0.51 | $0.49 | $0.23 |
Weighted Average Shares Outstanding Basic and Diluted | 6,936,269 | 7,541,352 | 7,645,858 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders Equity (USD $) | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Total |
Beginning Balance, Amount at Dec. 31, 2010 | $77,000 | $919,000 | ($18,000) | $12,603,000 | ' |
Beginning Balance, Shares at Dec. 31, 2010 | 7,677,471 | ' | 36,668 | ' | ' |
Issuance shares of Common Stock out of Treasury Stock as part of an employee compensation package, Amount | ' | 24,000 | 10,000 | ' | ' |
Issuance shares of Common Stock out of Treasury Stock as part of an employee compensation package, Shares | ' | ' | -20,000 | ' | ' |
Net loss | ' | ' | ' | 1,753,000 | ' |
Ending Balance, Amount at Dec. 31, 2011 | 77,000 | 943,000 | 16,668 | 14,356,000 | ' |
Enidng Balance, shares at Dec. 31, 2011 | 7,677,471 | ' | -8,000 | ' | ' |
Purchase shares of Common Stock as Treasury Stock, Amount | ' | ' | 724,534 | ' | ' |
Purchase shares of Common Stock as Treasury Stock, Shares | ' | ' | -1,528,000 | ' | ' |
Net loss | ' | ' | ' | 3,659,000 | ' |
Ending Balance, Amount at Dec. 31, 2012 | 77,000 | 943,000 | 741,202 | 18,015,000 | 17,499,000 |
Enidng Balance, shares at Dec. 31, 2012 | 7,677,471 | ' | -1,536,000 | ' | ' |
Net loss | ' | ' | ' | 3,542,000 | ' |
Ending Balance, Amount at Dec. 31, 2013 | $77,000 | $943,000 | $741,202 | $21,557,000 | $21,041,000 |
Enidng Balance, shares at Dec. 31, 2013 | 7,677,471 | ' | -1,536,000 | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash Flows from Operating Activities | ' | ' | ' |
Net Income | $3,542,000 | $3,659,000 | $1,753,000 |
Reconciliation of net income to net cash provided by operating activities | ' | ' | ' |
Depreciation and amortization | 1,913,000 | 1,647,000 | 1,152,000 |
Accretion of asset retirement obligation | 118,000 | 40,000 | 34,000 |
Non-cash employee compensation paid with treasury stock | ' | ' | 34,000 |
Changes in accounts receivable | -1,478,000 | -546,000 | -521,000 |
Changes in prepaid income tax | ' | 405,000 | 41,000 |
Changes in accounts payable | 484,000 | 229,000 | 946,000 |
Changes in current tax payable | 153,000 | 99,000 | ' |
Changes in deferred tax payable | -75,000 | -968,000 | -203,000 |
Other | 2,000 | 9,000 | -12,000 |
Net cash provided by operating activities | 4,659,000 | 4,574,000 | 3,224,000 |
Cash Flows from Investing Activities | ' | ' | ' |
Capitalized acquisition, exploration and development costs | -1,961,000 | -2,464,000 | -2,453,000 |
Purchase of other property and equipment | ' | -6,000 | ' |
Purchase of other long-term investments | ' | ' | -200,000 |
Net cash (used for) investing activities | -1,961,000 | -2,470,000 | -2,653,000 |
Cash Flows from Financing Activities | ' | ' | ' |
Repayment of note payable to bank | -720,000 | -120,000 | -120,000 |
Purchase of 724,534 shares of treasury stock | ' | -1,528,000 | ' |
Net cash (used for) financing activities | -720,000 | -1,648,000 | -120,000 |
Increase in cash | 1,978,000 | 456,000 | 451,000 |
Cash at beginning of period | 7,151,000 | 6,695,000 | 6,244,000 |
Cash at end of period | $9,129,000 | $7,151,000 | $6,695,000 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) | 12 Months Ended |
Dec. 31, 2012 | |
Statement of Cash Flows [Abstract] | ' |
Treasury stock, shares | 724,534 |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
1. BASIS OF PRESENTATION AND ORGANIZATION | |
Merger and Basis of Presentation | |
On July 13, 1990, Prairie States Energy Co., a Texas corporation, (the Company) merged with Spindletop Oil & Gas Co., a Utah corporation (the Acquired Company). The name of Prairie States Energy Co. was changed to Spindletop Oil & Gas Co., a Texas corporation at the time of the merger. | |
Organization and Nature of Operations | |
The Company was organized as a Texas corporation in September 1985, in connection with the Plan of Reorganization ("the Plan"), effective September 9, 1985, of Prairie States Exploration, Inc., ("Exploration"), a Colorado corporation, which had previously filed for Chapter 11 bankruptcy. In connection with the Plan, Exploration was merged into the Company, with the Company being the surviving corporation. After giving effect to a stock split, up to a total of 166,667 of the Company's common shares may be issued to Exploration's former shareholders. As of December 31, 2013, 122,436 shares have been issued to former shareholders in connection with the Plan. | |
Spindletop Oil & Gas Co. is engaged in the exploration, development and production of oil and natural gas; and through one of its subsidiaries, the gathering and marketing of natural gas. | |
The Company owns land along with a commercial office building which contains approximately 46,286 of rentable square feet, of which the Company occupies approximately 12,759 rentable square feet as its corporate office headquarters. The Company leases the remaining space in the building to non-related third party commercial tenants at prevailing market rates. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
A summary of the significant accounting policies consistently applied in the preparation of the accompanying financial statements follows: | |||||||||
FASB Accounting Standards Codification | |||||||||
The Company presents its financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). In June, 2009, the Financial Accounting Standards Board ("FASB") completed its accounting guidance codification project. The FASB Accounting Standards Codification ("ASC") became effective for the Company's financial statements issued subsequent to June 30, 2009 and is the single source of authoritative accounting principles recognized by the FASB to be applied to nongovernmental entities in the preparation of financial statements in conformity with GAAP. Accordingly, the Company refers to the ASC as the sole source of authoritative literature. | |||||||||
Consolidation | |||||||||
The consolidated financial statements include the accounts of Spindletop Oil & Gas Co. and its wholly owned subsidiaries, Prairie Pipeline Co. and Spindletop Drilling Company. All significant inter-company transactions and accounts have been eliminated. | |||||||||
Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid instruments with a maturity of three months or less at time of original issuance to be cash equivalents. | |||||||||
Other Investments | |||||||||
Other short-term and long-term investments consist of certificates of deposit with maturities of more than three months. Carrying amounts approximate fair value. | |||||||||
Allowance for Doubtful Accounts | |||||||||
The Company provides an allowance for doubtful accounts equal to the estimated uncollectible portion of accounts receivable. This estimate is based on historical collection experience and a review of the current status of accounts receivable. | |||||||||
Oil and Gas Properties | |||||||||
The Company follows the full cost method of accounting for its oil and gas properties. Accordingly, all costs associated with acquisition, exploration and development of oil and natural gas reserves are capitalized and accounted for in cost centers, on a country-by-country basis. For each cost center, capitalized costs, less accumulated amortization and related deferred income taxes, shall not exceed an amount (the cost center ceiling) equal to the sum of: | |||||||||
a) | The present value of estimated future net revenues computed by applying current prices of oil and natural gas reserves (with consideration of price changes only to the extent provided by contractual arrangements) to estimated future production of proved oil and gas reserves as of the date of the latest balance sheet presented, less estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves computed using a discount factor of ten percent and assuming continuation of existing economic conditions; plus | ||||||||
b) | The cost of properties not being amortized; plus | ||||||||
c) | The lower of cost or estimated fair market value of unproven properties included in the costs being amortized; less | ||||||||
d) | Income tax effects related to differences between the book and tax basis of the properties. | ||||||||
If unamortized costs capitalized within a cost center, less related deferred income taxes, exceed the cost center ceiling (as defined), the excess is charged to expense and separately disclosed during the period in which the excess occurs. Amounts required to be written off will not be reinstated for any subsequent increase in the cost center ceiling. No impairment of oil and gas properties charge was recorded for 2013, 2012 or 2011. | |||||||||
Depreciation and amortization for each cost center are computed on a composite unit-of-production method, based on estimated proven reserves attributable to the respective cost center. All costs associated with oil and gas properties are currently included in the base for computation and amortization. Such costs include all acquisition, exploration, development costs and estimated future expenditures for proved undeveloped properties as well as estimated dismantlement and abandonment costs as calculated under the asset retirement obligation category, net of salvage value. All of the Company's oil and gas properties are located within the continental United States. | |||||||||
Gains and losses on sales of oil and gas properties are treated as adjustments of capitalized costs. Gains or losses on sales of property and equipment, other than oil and gas properties, are recognized as part of operations. Expenditures for renewals and improvements are capitalized, while expenditures for maintenance and repairs are charged to operations as incurred. | |||||||||
Property and Equipment | |||||||||
The Company, as operator, leases equipment to owners of oil and gas wells, on a month-to-month basis. | |||||||||
The Company, as operator, transports natural gas through its natural gas gathering systems, in exchange for a fee. | |||||||||
Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives (5 to 10 years for rental equipment and natural gas gathering systems, 4 to 5 years for other | |||||||||
property and equipment). The straight-line method of depreciation is used for financial reporting purposes, while accelerated methods are used for tax purposes. | |||||||||
Real Estate Property | |||||||||
The Company owns land along with a two-story commercial office building which is situated thereon. The Company occupies a portion of the building as its primary corporate headquarters, and leases the remaining space in the building to non-related third party commercial tenants at prevailing market rates. The Company depreciates the commercial office using the straight-line method of depreciation for financial statement and income tax purposes. | |||||||||
Investments in Real Estate | |||||||||
All investments in real estate holdings are stated at cost or adjusted carrying value. ASC Topic 360, “Accounting for the Impairment or Disposal of Long-Lived Assets”, requires that a property be considered impaired if the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the property. If impairment exists, an impairment loss is recognized by a charge against earnings equal to the amount by which the carrying amount of the property exceeds fair market value less cost to sell the property. If impairment of a property is recognized, the carrying amount of the property is reduced by the amount of the impairment, and a new cost for the property is established. Depreciation is provided over the properties estimated remaining useful life. There was no charge to earnings during 2013 due to impairment of real estate holdings. | |||||||||
Accounting for Asset Retirement Obligations | |||||||||
The Company adopted ASC Topic 410-20, "Accounting for Asset Retirement Obligations" on December 31, 2005. This statement requires the recording of a liability in the period in which an asset retirement obligation ("ARO") is incurred, in an amount equal to the discounted estimated fair value of the obligation that is capitalized. Thereafter, each quarter, this liability is accreted up to the final retirement cost. The determination of the ARO is based on an estimate of the future cost to plug and abandon our oil and gas wells. The actual costs could be higher or lower than current estimates. | |||||||||
The following table reflects the changes of the asset retirement obligations during the period ending December 31; | |||||||||
2013 | 2012 | ||||||||
Carrying amount of asset retirement obligation | $ | 949,000 | $ | 946,000 | |||||
Liabilities added | 95,000 | 55,000 | |||||||
Liabilities divested or settled | (55,000 | ) | (92,000 | ) | |||||
Current period accretion expenses | 118,000 | 40,000 | |||||||
Carrying amount as of December 31, | $ | 1,107,000 | $ | 949,000 | |||||
Revenue Recognition | |||||||||
The Company follows the “sales” (takes or cash) method of accounting for oil and natural gas revenues. Under this method, the Company recognizes revenues on oil and natural gas production as it is taken and delivered to the purchasers. The volumes sold may be more or less than the volumes the Company is entitled to take based on our ownership in the property. These differences result in a condition known as a production imbalance. Our crude oil and natural gas imbalances are insignificant. | |||||||||
Income Taxes | |||||||||
In June, 2006, an interpretation of ASC Topic 740-10, “Accounting for Uncertainty in Income Taxes” was issued. The interpretation creates a single model to address accounting for uncertainty in tax positions. Specifically, the pronouncement prescribes a recognition threshold and a measurement attribute for the financial statement | |||||||||
recognition and measurement of a tax position taken or expected to be taken in a tax return. The interpretation also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition of certain tax positions. Federal and state tax authorities generally have the right to examine and audit the previous three years of tax returns filed. | |||||||||
The Company adopted the provisions of the interpretation of ASC Topic 740-10 effective January 1, 2007. The adoption of this accounting principle did not have an effect on the Company’s consolidated financial statements at, and for the three years ended December 31, 2013. | |||||||||
The Company accounts for income taxes pursuant to ASC Topic 740-10 "Accounting for Income Taxes" , which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities, using enacted tax rates in effect in the years in which the differences are expected to reverse. The temporary differences primarily relate to depreciation, depletion and intangible drilling costs. | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with U. S. Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||
Share-Based Payments | |||||||||
Effective January 1, 2006, the Company adopted ASC Topic 718-10, “Share-Based Payment". ASC Topic 718-10 requires compensation costs related to share-based payments to be recognized in the income statement over the requisite service period. The amount of the compensation cost is to be measured based on the grant-date fair value of the instrument issued. ASC Topic 718-10 is effective for awards granted or modified after the date of adoption and for awards granted prior to that date that have not vested. ASC Topic 718-10 does not materially change the Company's existing accounting practices or the amount of share-based compensation recognized in earnings. | |||||||||
Recently Issued Accounting Pronouncements | |||||||||
The FASB issued Accounting Standards Update No 2013-02 “Comprehensive Income (Topic 220); Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The objective of this Update is to improve the reporting of reclassification out of accumulated other comprehensive income. The amendments in this Update apply to all entities that issue financial statements that are presented in conformity with U.S. GAAP and that report items of other comprehensive income. The amendments are effective for reporting periods beginning after December 15, 2013. The Company has adopted this amendment as of the effective date; however the adoption of this amendment will not have a material impact on the consolidated financial statements of the Company. | |||||||||
Currently, there are no other new accounting pronouncements that were issued to be effective in 2013 or subsequent thereto that would have a material impact on the Company’s financial reporting. | |||||||||
Subsequent Events | |||||||||
The Company has evaluated subsequent events through the issuance date of April 15, 2014. |
Account_Receivable
Account Receivable | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Notes to Financial Statements | ' | ||||||||
Account Receivable | ' | ||||||||
3. ACCOUNTS RECEIVABLE | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Trade | $ | 123,000 | $ | 21,000 | |||||
Accrued receivable | 3,525,000 | 2,149,000 | |||||||
3,648,000 | 2,170,000 | ||||||||
Less: Allowance for losses | (15,000 | ) | (15,000 | ) | |||||
$ | 3,633,000 | $ | 2,155,000 | ||||||
Accrued receivables are receivables from purchasers of oil and gas. These revenues are booked from check stub detail after receipt of the check for sales of oil and natural gas products. These payments are for sales of oil and natural gas produced in the reporting period, but for which payment has not yet been received until after the closing date of the reporting period. Therefore these sales are accrued as receivables as of the balance sheet date. Revenues for oil and natural gas production that has been sold but for which payment has not yet been received is accrued in the period sold. | |||||||||
Accounts_Payable
Accounts Payable | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable | ' | ||||||||
4. ACCOUNTS PAYABLE | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Trade payables | $ | 844,000 | $ | 1,101,000 | |||||
Production proceeds payable | 2,661,000 | 2,189,000 | |||||||
Prepaid drilling costs | 430,000 | 161,000 | |||||||
$ | 3,935,000 | $ | 3,451,000 |
Notes_Payable
Notes Payable | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Notes Payable | ' | ||||||||
5. NOTES PAYABLE | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Note payable to a bank with monthly principal payments of $10,000 plus accrued interest at a variable annual interest rate based upon an index which is the Treasury securities rate for a term of seven years, plus 2.2%. The interest rate is subject to change on the first day of each seven year anniversary after the date of the rate based on the Index than in effect. As of the date of the loan, the annual interest rate was 6.11%. Effective December 27, 2011, the annual interest rate was adjusted to 3.61%. The note is collateralized by land and a commercial office building, plus a guarantee by certain related parties. The note matures in November, 2018. Effective December 27, 2013, the Company prepaid the remaining principal balance plus accrued interest and the note was paid in full | — | 720,000 | |||||||
Less current maturities | — | (120,000 | ) | ||||||
Total notes payable, long-term portion | — | 600,000 | |||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
6. RELATED PARTY TRANSACTIONS | |
On October 1, 2008, Giant entered into an Administrative Services Agreement with the Company whereby Giant agreed to pay the Company $250 per month for the Company providing administrative services to Giant. The Company also entered into a management services agreement with M-R Oilfield Services, LP (“MRO”), whereby MRO makes monthly payments in the amount of $1,000 to the Company in exchange for the Company providing administrative services to MRO. On October 1, 2008, the Company entered into a similar agreement with Giant NRG, LP (“NRG”), a limited partnership with Chris Mazzini and Michelle Mazzini as limited partners. Under this agreement NRG pays a monthly fee of $2,500 to the Company in exchange for the Company providing certain administrative services to NRG. The Company has entered into a similar arrangement with Peveler Pipeline, LP ("Peveler"), whereby Peveler pays the Company a monthly charge of $250 in exchange for the Company providing administrative services to Peveler. Chris and Michelle Mazzini are the owners of Peveler Pipeline, LP, a limited partnership which owns a pipeline gathering system servicing wells owned by Giant, another related entity, described elsewhere in this report. The Company entered into a similar agreement with M-R Ventures, LLC (“MRV”), a limited liability company that operates some wells in Michigan, and that is owned by Chris and Michelle Mazzini. Pursuant to this agreement, MRV pays the Company a monthly fee in the amount of $500 for certain administrative services that the Company provides to MRV. The Company entered into a similar agreement with Reserve Royalty Company (“Reserve”) a sole proprietorship that holds some royalty interests owned by Chris and Michelle Mazzini. Pursuant to this agreement, Reserve pays the Company a monthly fee in the amount of $350 for certain administrative services that the Company provides to Reserve. | |
The long-term debt, which is secured by the commercial office building, is also guaranteed individually by Chris G. Mazzini and Michelle H. Mazzini, related parties. Effective December 27, 2013, the Company prepaid the remaining principal balance plus accrued interest and the note was paid in full. |
Common_Stock
Common Stock | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Common Stock | ' |
7. COMMON STOCK | |
Effective January 1, 2006, the Company adopted ASC Topic 718-10, "Share-Based Payment". ASC Topic 718-10 requires compensation costs related to share-based payments to be recognized in the income statement over the requisite service period. The amount of the compensation cost is to be measured based on the grant date fair value of the instrument issued. ASC Topic 718-10 is effective for awards granted or modified after the date of adoption and for awards granted prior to that date that have not vested. ASC Topic 718-10 does not materially change the Company's existing accounting practices or the amount of share-based compensation recognized in earnings. | |
Effective August 1, 2011, the Company issued 10,000 shares of restricted common stock (5,000 shares to each of two individuals) pursuant to an employment package. The shares were valued at $1.70 per share, the believed market value for free trading shares at the time of issue. The amount was expensed as general and administrative expense. The shares of common stock were issued out of Treasury Stock and reduced the amount of the Company's common stock held in Treasury from 36,668 to 26,668 shares. | |
Effective December 30, 2011, the Company issued 10,000 shares of restricted common stock to a key employee pursuant to an employment package. The shares were valued at $1.70 per share, the believed market value for free trading shares at the time of issue. The amount was expensed as general and administrative expense. The shares of common stock were issued out of Treasury Stock and reduced the amount of the Company's common stock held in Treasury from 26,668 to 16,668 shares. | |
The Company has not approved nor authorized any standing repurchase program for its common stock. | |
During the fourth quarter of the fiscal year ended December 31, 2012, the Company made the following repurchases of its common stock: | |
Effective October 30, 2012, the Company repurchased 700,000 shares of its common stock for a purchase price of $1,491,000 or $2.13 per share. | |
On December 18, 2012, the Company repurchased 24,534 shares of its common stock for a purchase price of $36,801 or $1.50 per share. | |
The Company made no repurchases of its common stock during 2013. | |
The repurchased shares are held as Treasury Stock. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
8. INCOME TAXES | |||||||||||||
The Company accounts for income taxes pursuant to ASC Topic 740-10, "Accounting for Income Taxes". ASC Topic 740-10 utilizes the liability method of computing deferred income taxes. | |||||||||||||
In connection with the Plan discussed in Note 1, the Company agreed to pay, in cash, to Exploration's unsecured creditors, as defined, one-half of the future reductions of Federal income taxes which were directly related to any allowed carryovers of Exploration's net operating losses and investment tax credits. Such payments are to be made on a pro-rata basis. Amounts incurred under this agreement, which are considered contingent consideration, totaled $ -0-, $ -0-, and $ -0- in 2013, 2012 and 2011, respectively. As of December 31, 2013 the Company has not received a ruling from the Internal Revenue Service concerning the net operating loss and investment credit carryovers. Until the tax savings which result from the utilization of these carry-forwards is assured, the Company will not pay to Exploration's unsecured creditors any of the tax savings benefit. As of December 31, 2013, the Company owes $97,000 to Exploration's unsecured creditors. | |||||||||||||
In calculating tax savings benefits described above, consideration was given to the alternative minimum tax, where applicable, and the tax effects of temporary differences, as shown below: | |||||||||||||
Income tax differed from the amounts computed by applying an effective United States federal income tax rate of 34% to pretax income in 2013, 2012 and 2011 as a result of the following: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Computed expected tax expense (benefit) | $ | 1,405,000 | $ | 999,000 | $ | 449,000 | |||||||
Miscellaneous timing differences | |||||||||||||
related to book and tax depletion | |||||||||||||
differences and the expensing of | |||||||||||||
intangible drilling costs | (803,000 | ) | (752,000 | ) | (678,000 | ) | |||||||
Expected Federal income tax expense (benefit) | $ | 602,000 | $ | 247,000 | $ | (229,000 | ) | ||||||
Income tax expense (benefit) for the years ended December 31, 2013, 2012 and 2011 consisted of the following: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal income taxes (benefit) | $ | 602,000 | $ | 247,000 | $ | (229,000 | ) | ||||||
State income taxes | — | — | — | ||||||||||
Current income tax provision (benefit) | $ | 602,000 | $ | 247,000 | $ | (229,000 | ) | ||||||
Deferred income taxes reflect the effects of temporary differences between the tax bases of assets and liabilities and the reported amounts of those assets and liabilities for financial reporting purposes. Deferred income taxes also reflect the value of investment tax credits and an offsetting valuation allowance. The Company's total deferred tax assets and corresponding valuation allowance at December 31, 2013 and 2012 consisted of the following: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets | |||||||||||||
Depreciation, depletion and amortization | 348,000 | 770,000 | |||||||||||
Other, net | 7,000 | 7,000 | |||||||||||
Total | 355,000 | 777,000 | |||||||||||
Deferred tax liabilities | |||||||||||||
Expired leasehold | 12,000 | (67,000 | ) | ||||||||||
Intangible drilling costs | (1,972,000 | ) | (2,200,000 | ) | |||||||||
Depreciation | (158,000 | ) | (348,000 | ) | |||||||||
Net deferred tax liability | $ | (1,763,000 | ) | $ | (1,838,000 | ) | |||||||
Cash_Flow_Information
Cash Flow Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||||||
Cash Flow Information | ' | ||||||||||||
9. CASH FLOW INFORMATION | |||||||||||||
The Company does not consider any of its assets, other than cash and certificates of deposit shown as cash on the balance sheet, to meet the definition of a cash equivalent. | |||||||||||||
Net cash provided by operating activities includes cash payments for the following: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Interest expense | $ | 17,000 | $ | 29,000 | $ | 55,000 | |||||||
Income taxes | 450,000 | 50,000 | 170,000 | ||||||||||
Excluded from the Consolidated Statements of Cash Flows were the effects of certain non-cash investing and financing activities, as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Addition of Oil & Gas | |||||||||||||
properties by recognitions of | |||||||||||||
asset retirement obligation | $ | 40,000 | $ | (36,000 | ) | $ | 57,000 | ||||||
$ | 40,000 | $ | (36,000 | ) | $ | 57,000 | |||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ' |
Earnings Per Share | ' |
10. EARNINGS PER SHARE | |
Earnings per share ("EPS") are calculated in accordance with ASC Topic 260-10, "Earnings per Share", which was adopted in 1997 for all years presented. Basic EPS is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. The adoption of ASC Topic 260-10 had no effect on previously reported EPS. Diluted EPS is computed based on the weighted number of shares outstanding, plus the additional common shares that would have been issued had the options outstanding been exercised. |
Concentration_of_Credit_Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2013 | |
Risks and Uncertainties [Abstract] | ' |
Concentration of Credit Risk | ' |
11. CONCENTRATIONS OF CREDIT RISK | |
Subsequent to December 31, 2012, FDIC Deposit insurance coverage changed. As scheduled, the unlimited insurance coverage for noninterest-bearing transaction accounts provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act expired on December 31, 2012. Deposits held in non-interest-bearing transaction accounts are now aggregated with any interest-bearing deposits the owner may hold in the same ownership category, and the combined total insured up to at least $250,000. | |
Beginning January 1, 2013, noninterest-bearing transaction accounts will no longer be insured separately from depositors’ other accounts at the same institution. Instead, noninterest-bearing transaction accounts will be added to any of a depositor’s other accounts in the applicable ownership category, and the aggregate balance insured up to at least the Standard Minimum Deposit Insurance Amount (SMDIA) of $250,000, per depositor, at each separately chartered institution. | |
As of December 31, 2013 the Company had approximately $5,253,000 in checking and money market accounts at one bank, and approximately $3,090,000 in a second bank. The Company also had approximately $3,180,000, including $400,000 of short-term certificates of deposit and $1,200,000 of long-term certificates of deposit invested at seven other banking institutions. Cash amounts on deposit at these institutions exceeded current per account FDIC protection limits by approximately $6,844,000. | |
Most of the Company's business activity is located in Texas. Accounts receivable as of December 31, 2013 and 2012 are due from both individual and institutional owners of joint interests in oil and gas wells as well as purchasers of oil and natural gas. A portion of the Company's ability to collect these receivables is dependent upon revenues generated from sales of oil and natural gas produced by the related wells. |
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||||||||||
Financial Instruments | ' | ||||||||||||||||
12. FINANCIAL INSTRUMENTS | |||||||||||||||||
The estimated fair value of the Company's financial instruments at December 31, 2013 and 2012 follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Cash | $ | 9,129,000 | $ | 9,129,000 | $ | 7,151,000 | $ | 7,151,000 | |||||||||
Short-term certificates | 400,000 | 400,000 | 400,000 | 400,000 | |||||||||||||
Long-term certificates | 1,200,000 | 1,200,000 | 1,200,000 | 1,200,000 | |||||||||||||
Accounts receivable | 3,633,000 | 3,633,000 | 2,155,000 | 2,155,000 | |||||||||||||
The fair value amounts for each of the financial instruments listed above approximate carrying amounts due to the short maturities of these instruments. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
13. COMMITMENTS AND CONTINGENCIES | |
In connection with the Plan of Reorganization discussed in Note 1, the Company agreed to pay, in cash, to Exploration's unsecured creditors, as defined, one-half of the future reduction of Federal income taxes which were directly related to any allowed carryovers of Exploration's net operating losses and investment tax credits existing at the time of the reorganization. | |
The Company's oil and gas exploration and production activities are subject to Federal, State and environmental quality and pollution control laws and regulations. Such regulations restrict emission and discharge of wastes from wells, may require permits for the drilling of wells, prescribe the spacing of wells and rate of production, and require prevention and clean-up of pollution. | |
Although the Company has not in the past incurred substantial costs in complying with such laws and regulations, future environmental restrictions or requirements may materially increase the Company's capital expenditures, reduce earnings, and delay or prohibit certain activities. | |
At December 31, 2013 the Company has acquired bonds and letters of credit issued in favor of various state regulatory agencies as mandated by state law in order to comply with financial assurance regulations required to perform oil and gas operations within the various state jurisdictions. | |
The Company has seven, $5,000 single-well bonds totaling $35,000 and one $10,000 single well bond with an insurance company, for wells the Company operates in Alabama. The $5,000 bonds are written for a three year period and the $10,000 bond is written for a one year period. | |
The Company has 10 letters of credit from a bank issued for the benefit of various state regulatory agencies in Texas, New Mexico, Oklahoma, and Louisiana, ranging in amounts from $10,000 to $50,000 and totaling $298,000. These letters of credit have expiration dates that range from January 1, 2014 through January 16, 2015 and are fully secured by funds on deposit with the bank in business money market accounts. |
Additional_Operations_and_Bala
Additional Operations and Balance Sheet Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Additional Operations and Balance Sheet Information | ' | ||||||||||||
14. ADDITIONAL OPERATIONS AND BALANCE SHEET INFORMATION | |||||||||||||
Certain information about the Company's operations for the years ended December 31, 2013, 2012 and 2011 follows. | |||||||||||||
Sale of Oil & Gas Properties | |||||||||||||
In December, 2012, the Company sold its working interest effective October 1, 2012, in 29 non-operated properties located in Palo Pinto, Wise, Jack, and Parker Counties, Texas to the operator of the wells for a gross sales price of $165,000. | |||||||||||||
Dependence on Customers | |||||||||||||
The following is a summary of significant purchasers / operators (listed by percent of total oil and natural gas sales) from oil and natural gas produced by the Company for the three-year period ended December 31, 2013: | |||||||||||||
Purchaser | 2013 | 2012 | 2011 | ||||||||||
Halcon Resources Operating, Inc. | 28 | % | 7 | % | 0 | % | |||||||
Pruet Production Co. | 13 | % | 9 | % | 0 | % | |||||||
Shell Trading (US) Company | 8 | % | 15 | % | 20 | % | |||||||
Eastex Crude Company | 7 | % | 6 | % | 7 | % | |||||||
Enbridge Energy Partners | 6 | % | 9 | % | 22 | % | |||||||
Crosstex Gulf Coast Mktg | 5 | % | 5 | % | 11 | % | |||||||
Targa Midstream Service, LIM | 5 | % | 8 | % | 4 | % | |||||||
Sunoco Partners Marketing | 4 | % | 3 | % | 1 | % | |||||||
Gulfmark Energy, Inc. | 3 | % | 4 | % | 3 | % | |||||||
Enterprise Crude Oil, LLC | 2 | % | 2 | % | 5 | % | |||||||
Holly Corp (Formerly Navajo Refining Co.) | 2 | % | 3 | % | 2 | % | |||||||
Enervest Operating, LLC | 2 | % | 2 | % | 0 | % | |||||||
Phillips 66 | 1 | % | 1 | % | 0 | % | |||||||
DCP Midstream, LP | 1 | % | 1 | % | 2 | % | |||||||
Midstates Petroleum | 1 | % | 0 | % | 0 | % | |||||||
Panther Energy Company, LLC | 1 | % | 4 | % | 0 | % | |||||||
Empire Pipeline Corp. | 1 | % | 1 | % | 1 | % | |||||||
Oil and natural gas is sold to approximately 120 different purchasers under market sensitive, short-term contracts computed on a month to month basis. | |||||||||||||
Except as set forth above, there are no other customers of the Company that individually accounted for more than two percent of the Company's oil and gas revenues during the three years ended | |||||||||||||
December 31, 2013. | |||||||||||||
The Company currently has no hedged contracts. | |||||||||||||
Certain revenues, costs and expenses related to the Company's oil and gas operations are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Capitalized costs relating to oil and gas | |||||||||||||
producing activities: | |||||||||||||
Unproved properties | $ | 2,398,000 | $ | 2,267,000 | $ | 2,242,000 | |||||||
Proved properties | 22,425,000 | 20,555,000 | 18,153,000 | ||||||||||
Total capitalized costs | 24,823,000 | 22,822,000 | 20,395,000 | ||||||||||
Accumulated amortization | (12,586,000 | ) | (10,744,000 | ) | (9,161,000 | ) | |||||||
Total capitalized costs, net | $ | 12,237,000 | 12,078,000 | $ | 11,234,000 | ||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Costs incurred in oil and gas property | |||||||||||||
acquisitions, exploration and development: | |||||||||||||
Acquisition of properties | $ | 914,000 | $ | 685,000 | $ | 303,000 | |||||||
Development costs | 1,087,000 | 1,742,000 | 2,208,000 | ||||||||||
Total costs incurred | $ | 2,001,000 | $ | 2,427,000 | $ | 2,511,000 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Results of operations from producing activities: | |||||||||||||
Sales of oil and gas | $ | 12,457,000 | $ | 9,999,000 | $ | 8,000,000 | |||||||
Production costs | 3,526,000 | 3,521,000 | 3,253,000 | ||||||||||
Amortization of oil and gas properties | 1,842,000 | 1,583,000 | 1,032,000 | ||||||||||
Total production costs | 5,368,000 | 5,104,000 | 4,285,000 | ||||||||||
Total net revenue | $ | 7,089,000 | $ | 4,895,000 | $ | 3,715,000 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Sales price per equivalent Mcf | $ | 9.76 | $ | 7.88 | $ | 7.8 | |||||||
Production costs per equivalent Mcf | $ | 2.76 | $ | 2.78 | $ | 3.17 | |||||||
Amortization per equivalent Mcf | $ | 1.44 | $ | 1.25 | $ | 1.01 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Results of operations from gas gathering | |||||||||||||
and equipment rental activities: | |||||||||||||
Revenue | $ | 142,000 | $ | 145,000 | $ | 175,000 | |||||||
Operating expenses | 42,000 | 26,000 | 25,000 | ||||||||||
Depreciation | — | — | 1,000 | ||||||||||
Total costs | 42,000 | 26,000 | 26,000 | ||||||||||
Total net revenue | $ | 100,000 | $ | 119,000 | $ | 149,000 | |||||||
Business_Segments
Business Segments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Business Segments | ' | ||||||||||||
15. BUSINESS SEGMENTS | |||||||||||||
The Company's three business segments are (1) oil and gas exploration, acquisition, production and operations, (2) transportation and compression of natural gas, and (3) commercial real estate investment. Management has chosen to organize the Company into the three segments based on the products or services provided. The following is a summary of selected information for these segments for the | |||||||||||||
three-year period ended December 31, 2013: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues: (1) | |||||||||||||
Oil and gas exploration, production | $ | 12,866,000 | $ | 10,357,000 | $ | 8,289,000 | |||||||
and operations | |||||||||||||
Natural gas gathering, compression and | 142,000 | 145,000 | 172,000 | ||||||||||
equipment rental | |||||||||||||
Real estate rental | 249,000 | 242,000 | 436,000 | ||||||||||
$ | 13,257,000 | $ | 10,744,000 | $ | 8,897,000 | ||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Depreciation, depletion, and | |||||||||||||
amortization expense: | |||||||||||||
Oil and gas exploration, production | $ | 1,860,000 | $ | 1,594,000 | $ | 1,050,000 | |||||||
and operations | |||||||||||||
Natural gas gathering, compression and | — | — | 1,000 | ||||||||||
equipment rental | |||||||||||||
Real estate rental | 53,000 | 53,000 | 101,000 | ||||||||||
$ | 1,913,000 | $ | 1,647,000 | $ | 1,152,000 | ||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income from operations: | |||||||||||||
Oil and gas exploration, production | $ | 7,363,000 | $ | 5,201,000 | $ | 3,952,000 | |||||||
and operations | |||||||||||||
Natural gas gathering, compression and | 100,000 | 119,000 | 146,000 | ||||||||||
equipment rental | |||||||||||||
Real estate rental | (19,000 | ) | 4,000 | 110,000 | |||||||||
7,444,000 | 5,324,000 | 4,208,000 | |||||||||||
Corporate and other (2) | (3,902,000 | ) | (1,665,000 | ) | (2,455,000 | ) | |||||||
Consolidated net income | $ | 3,542,000 | $ | 3,659,000 | $ | 1,753,000 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Identifiable assets net of DDA: | |||||||||||||
Oil and gas exploration, production | |||||||||||||
and operations | $ | 12,267,000 | $ | 12,126,000 | $ | 11,289,000 | |||||||
Natural gas gathering, compression and | |||||||||||||
equipment rental | (1,000 | ) | — | (1,000 | ) | ||||||||
Real estate rental | 1,563,000 | 1,615,000 | 1,667,000 | ||||||||||
13,829,000 | 13,741,000 | 12,955,000 | |||||||||||
Corporate and other (3) | 14,366,000 | 10,912,000 | 10,324,000 | ||||||||||
Consolidated total assets | $ | 28,195,000 | $ | 24,653,000 | $ | 23,279,000 | |||||||
Note (1): All reported revenues are from external customers. | |||||||||||||
Note (2): Corporate and other includes general and administrative expenses, | |||||||||||||
other non-operating income and expense and income taxes. | |||||||||||||
Note (3): Corporate and other includes cash, accounts and notes receivable, | |||||||||||||
inventory, other property and equipment and intangible assets. |
Supplementory_Income_Statement
Supplementory Income Statement | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Notes to Financial Statements | ' | ||||||||||||
Supplementory Income Statement | ' | ||||||||||||
16. SUPPLEMENTARY INCOME STATEMENT INFORMATION | |||||||||||||
The following items were charged directly to expense: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Maintenance and repairs | $ | 17,000 | $ | 11,000 | $ | 15,000 | |||||||
Production taxes | 569,000 | 487,000 | 371,000 | ||||||||||
Taxes, other than payroll and income taxes | 29,000 | 9,000 | 11,000 |
Quarterly_Data
Quarterly Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Data | ' | ||||||||||||||||
17. QUARTERLY DATA (UNAUDITED) | |||||||||||||||||
The table below reflects selected quarterly information for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenue | $ | 2,368,000 | $ | 3,763,000 | $ | 2,647,000 | $ | 4,769,000 | |||||||||
Expense | (1,839,000 | ) | (2,240,000 | ) | (2,120,000 | ) | (3,279,000 | ) | |||||||||
Operating income (loss) | 529,000 | 1,523,000 | 527,000 | 1,490,000 | |||||||||||||
Current tax (provision) benefit | (82,000 | ) | (246,000 | ) | 10,000 | (284,000 | ) | ||||||||||
Deferred tax (provision) benefit | 54,000 | (209,000 | ) | 35,000 | 195,000 | ||||||||||||
Net income (loss) | $ | 501,000 | $ | 1,068,000 | $ | 572,000 | $ | 1,401,000 | |||||||||
Earnings (loss) per share of | |||||||||||||||||
common stock | |||||||||||||||||
Basic and diluted | $ | 0.07 | $ | 0.15 | $ | 0.08 | $ | 0.21 | |||||||||
Year Ended December 31, 2012 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenue | $ | 2,356,000 | $ | 2,940,000 | $ | 2,561,000 | $ | 4,249,000 | |||||||||
Expense | (1,717,000 | ) | (2,055,000 | ) | (1,928,000 | ) | (3,468,000 | ) | |||||||||
Operating income (loss) | 639,000 | 885,000 | 633,000 | 781,000 | |||||||||||||
Current tax (provision) benefit | (78,000 | ) | (66,000 | ) | (3,000 | ) | (100,000 | ) | |||||||||
Deferred tax (provision) benefit | 181,000 | 199,000 | 90,000 | 498,000 | |||||||||||||
Net income (loss) | $ | 742,000 | $ | 1,018,000 | $ | 720,000 | $ | 1,179,000 | |||||||||
Earnings (loss) per share of | |||||||||||||||||
common stock | |||||||||||||||||
Basic and diluted | $ | 0.1 | $ | 0.13 | $ | 0.09 | $ | 0.17 | |||||||||
Year Ended December 31, 2011 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenue | $ | 2,620,000 | $ | 2,077,000 | $ | 2,040,000 | $ | 2,603,000 | |||||||||
Expense | (1,770,000 | ) | (1,805,000 | ) | (1,774,000 | ) | (2,670,000 | ) | |||||||||
Operating income (loss) | 850,000 | 272,000 | 266,000 | (67,000 | ) | ||||||||||||
Current tax (provision) benefit | (79,000 | ) | 113,000 | (12,000 | ) | 207,000 | |||||||||||
Deferred tax (provision) benefit | 37,000 | (104,000 | ) | 10,000 | 260,000 | ||||||||||||
Net income (loss) | $ | 808,000 | $ | 281,000 | $ | 264,000 | $ | 400,000 | |||||||||
Earnings (loss) per share of | |||||||||||||||||
common stock | |||||||||||||||||
Basic and diluted | $ | 0.1 | $ | 0.04 | $ | 0.03 | $ | 0.06 | |||||||||
Supplemental_Reserve_Informati
Supplemental Reserve Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Notes to Financial Statements | ' | ||||||||||||
Supplemental Reserve Information | ' | ||||||||||||
18. SUPPLEMENTAL RESERVE INFORMATION (UNAUDITED) | |||||||||||||
The Company’s net proved oil and natural gas reserves as of December 31, 2013, 2012, and 2011 have been estimated by Company personnel. | |||||||||||||
All estimates are in accordance generally accepted petroleum engineering and evaluation principles and definitions and with guidelines established by the Securities and Exchange Commission. All of the Company’s reserves are located in the United States of America and accounted for under one cost center. | |||||||||||||
Our policies and practices regarding internal control over the estimating of reserves are structured to objectively and accurately estimate our oil and natural gas reserve quantities and present values in compliance with the U.S. Securities and Exchange Commission (“SEC”) regulations and accounting principles generally accepted in the United States of America. We maintain an internal staff of petroleum engineers and geosciences professionals who work closely with the accounting and financial departments to insure the integrity, accuracy and timeliness of data used in the estimation process. The data used in our reserve estimation process is based on historical results for production, oil and natural gas prices received, lease operating expenses and development costs incurred, ownership interest and other required data. Historical oil and natural gas prices, lease operating expenses, and ownership interests are provided by and verified by the Company’s accounting department. | |||||||||||||
The Petroleum Engineer responsible for the supervision and preparation of the Company’s internally generated reserve report has a Bachelor of Science degree in Petroleum Engineering from a major university and has experience in preparing economic evaluations and reserve estimates. He meets the requirements regarding qualifications, objectivity and confidentiality set forth in the Standards Pertaining to the Engineering and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers. | |||||||||||||
The Company has established a written internal control procedure to verify that the data entered into our engineering evaluation software is complete and correct. These internal control procedures establish the source of the data both internally and externally, the personnel that will collect the data and testing of the data collected to ensure its accuracy. | |||||||||||||
The following reserve estimates were based on existing economic and operating conditions. Oil and natural gas prices for 2013, 2012, and 2011 were calculated using a 12-month average price, calculated as the un-weighted arithmetic average of the first-day-of-the month price for each month of each year. Operating costs, production and ad valorem taxes and future development costs were based on current costs with no escalation. | |||||||||||||
There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting the future rates of production and timing of development expenditures. The following reserve data represents estimates only and should not be construed as being exact. Moreover, the present values should not be construed as the current market value of the Company's oil and natural gas reserves or the costs that would be incurred to obtain equivalent reserves. | |||||||||||||
Changes in Estimated Quantities of Proved Oil and Gas Reserves (Unaudited): | |||||||||||||
Quantities of Proved Reserves: | Crude Oil | Natural Gas | |||||||||||
Bbls | Mcf | ||||||||||||
Balance December 31, 2010 | 362,350 | 10,622,430 | |||||||||||
Sales of reserves in place | — | — | |||||||||||
Acquired properties | 11,390 | 122,310 | |||||||||||
Extensions and discoveries | 36,610 | 226,300 | |||||||||||
Revisions of previous estimates * | 70,338 | (2,085,974 | ) | ||||||||||
Production | (48,708 | ) | (733,816 | ) | |||||||||
Balance December 31, 2011 | 431,980 | 8,151,250 | |||||||||||
Sales of reserves in place | (980 | ) | (205,900 | ) | |||||||||
Acquired properties | 13,930 | 1,003,190 | |||||||||||
Extensions and discoveries | 75,918 | 47,920 | |||||||||||
Revisions of previous estimates * | 57,386 | (1,671,752 | ) | ||||||||||
Production | (79,514 | ) | (791,708 | ) | |||||||||
Balance December 31, 2012 | 498,720 | 6,533,000 | |||||||||||
Sales of reserves in place | — | — | |||||||||||
Acquired properties | 11,490 | 630,830 | |||||||||||
Extensions and discoveries | 44,082 | 13,930 | |||||||||||
Revisions of previous estimates * | (14,540 | ) | 321,215 | ||||||||||
Production | (89,872 | ) | (736,645 | ) | |||||||||
Balance December 31, 2013 | 449,880 | 6,762,330 | |||||||||||
* May also include divestitures, not only changes in engineering. | |||||||||||||
Proved Developed Reserves: | |||||||||||||
Balance December 31, 2011 | 401,240 | 8,124,340 | |||||||||||
Balance December 31, 2012 | 498,720 | 6,533,000 | |||||||||||
Balance December 31, 2013 | 449,880 | 6,762,330 | |||||||||||
Standardized Measure of Discounted Future Net Cash Flows and Changes Therein Relating to Proved Oil and Natural Gas Reserves (Unaudited) | |||||||||||||
The Standardized Measure of Discounted Future Net Cash Flows and Changes Therein Relating to Proved Oil and Natural Gas Reserves ("Standardized Measures") does not purport to present the fair market value of a company's oil and gas properties. An estimate of such value should consider, among other factors, anticipated future prices of oil and natural gas, the probability of recoveries in excess of existing proved reserves, the value of probable reserves and acreage prospects, and perhaps different discount rates. It should be noted that estimates of reserve quantities, especially from new discoveries, are inherently imprecise and subject to substantial revision. | |||||||||||||
Reserve estimates were prepared in accordance with standard Security and Exchange Commission guidelines. The future net cash flow for 2013, 2012, and 2011, was computed using a 12-month average price, calculated as the un-weighted arithmetic average of the first-day-of-the month price for each month of the year. Lease operating costs, compression, dehydration, transportation, ad valorem taxes, severance taxes, and federal income taxes were deducted. Costs and prices were held constant and were not escalated over the life of the properties. No deduction has been made for interest, or general corporate overhead. The annual discount of estimated future cash flows is defined, for use herein, as future cash flows discounted at 10% per year, over the expected period of realization. | |||||||||||||
Proved Developed Reserves were calculated based on Decline Curve Analysis on 78 operated wells and 80 non-operated wells. Materially insignificant operated and non-operated wells were excluded from the reserve estimate. | |||||||||||||
The Company emphasizes that reserve estimates are inherently imprecise. Accordingly, the estimates are expected to change as more current information becomes available. It is reasonably possible that, because of changes in market conditions or the inherent imprecision of these reserve estimates, that the estimates of future cash inflows, future gross revenues, the amount of oil and natural gas reserves, the remaining estimated lives of the oil and natural gas properties, or any combination of the above may be increased or reduced in the near term. If reduced, the carrying amount of capitalized oil and gas properties may be reduced materially in the near term. | |||||||||||||
Standardized measure of discounted future net cash flows related to proved reserves: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Future production revenue | $ | 69,583,000 | $ | 68,813,000 | $ | 78,938,000 | |||||||
Future development costs | (108,000 | ) | (108,000 | ) | (108,000 | ) | |||||||
Future production costs | (30,072,000 | ) | (29,746,000 | ) | (32,843,000 | ) | |||||||
Future net cash flow before Federal income taxes | 39,403,000 | 38,959,000 | 45,987,000 | ||||||||||
Future income taxes | (11,033,000 | ) | (10,909,000 | ) | (12,876,000 | ) | |||||||
Future net cash flows | 28,370,000 | 28,050,000 | 33,111,000 | ||||||||||
Effect of 10% annual discounting | (4,209,000 | ) | (5,787,000 | ) | (9,649,000 | ) | |||||||
Standardized measure of discounted cash flows | $ | 24,161,000 | $ | 22,263,000 | $ | 23,462,000 | |||||||
Changes in the standardized measure of discounted future net cash flows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning of the year | $ | 22,263,000 | $ | 23,462,000 | $ | 18,705,000 | |||||||
Sales of oil and gas, net of production costs | (8,498,000 | ) | (6,161,000 | ) | (4,516,000 | ) | |||||||
Net changes in prices and production costs | 2,945,000 | (2,990,000 | ) | 5,970,000 | |||||||||
Extensions, discoveries, additions | |||||||||||||
less related costs | 2,916,000 | 3,498,000 | 2,179,000 | ||||||||||
Development costs incurred | 1,035,000 | 1,657,000 | 2,101,000 | ||||||||||
Net changes in future development cost | 7,000 | 7,000 | (1,492,000 | ) | |||||||||
Revisions of previous quantity estimates | (946,000 | ) | (1,742,000 | ) | (1,243,000 | ) | |||||||
Net change in purchase and sales of | |||||||||||||
minerals in place | 1,200,000 | 1,051,000 | 581,000 | ||||||||||
Accretion of discount | 2,226,000 | 2,346,000 | 1,871,000 | ||||||||||
Net change in income taxes | 614,000 | 1,502,000 | (417,000 | ) | |||||||||
Other | 399,000 | (367,000 | ) | (277,000 | ) | ||||||||
End of year | $ | 24,161,000 | $ | 22,263,000 | $ | 23,462,000 | |||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Organization and Nature of Operations | ' |
Organization and Nature of Operations | |
The Company was organized as a Texas corporation in September 1985, in connection with the Plan of Reorganization ("the Plan"), effective September 9, 1985, of Prairie States Exploration, Inc., ("Exploration"), a Colorado corporation, which had previously filed for Chapter 11 bankruptcy. In connection with the Plan, Exploration was merged into the Company, with the Company being the surviving corporation. After giving effect to a stock split, up to a total of 166,667 of the Company's common shares may be issued to Exploration's former shareholders. As of December 31, 2013, 122,436 shares have been issued to former shareholders in connection with the Plan. | |
Spindletop Oil & Gas Co. is engaged in the exploration, development and production of oil and natural gas; and through one of its subsidiaries, the gathering and marketing of natural gas. | |
The Company owns land along with a commercial office building which contains approximately 46,286 of rentable square feet, of which the Company occupies approximately 12,759 rentable square feet as its corporate office headquarters. The Company leases the remaining space in the building to non-related third party commercial tenants at prevailing market rates. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
FASB Accounting Standards Codification | ' | ||||||||
FASB Accounting Standards Codification | |||||||||
The Company presents its financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). In June, 2009, the Financial Accounting Standards Board ("FASB") completed its accounting guidance codification project. The FASB Accounting Standards Codification ("ASC") became effective for the Company's financial statements issued subsequent to June 30, 2009 and is the single source of authoritative accounting principles recognized by the FASB to be applied to nongovernmental entities in the preparation of financial statements in conformity with GAAP. Accordingly, the Company refers to the ASC as the sole source of authoritative literature. | |||||||||
Consolidation | ' | ||||||||
Consolidation | |||||||||
The consolidated financial statements include the accounts of Spindletop Oil & Gas Co. and its wholly owned subsidiaries, Prairie Pipeline Co. and Spindletop Drilling Company. All significant inter-company transactions and accounts have been eliminated. | |||||||||
Cash and Cash Equivalents | ' | ||||||||
Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid instruments with a maturity of three months or less at time of original issuance to be cash equivalents. | |||||||||
Other Investments | ' | ||||||||
Other Investments | |||||||||
Other short-term and long-term investments consist of certificates of deposit with maturities of more than three months. Carrying amounts approximate fair value. | |||||||||
Allowance for Doubtful Accounts | ' | ||||||||
Allowance for Doubtful Accounts | |||||||||
The Company provides an allowance for doubtful accounts equal to the estimated uncollectible portion of accounts receivable. This estimate is based on historical collection experience and a review of the current status of accounts receivable. | |||||||||
Oil and Gas Properties | ' | ||||||||
Oil and Gas Properties | |||||||||
The Company follows the full cost method of accounting for its oil and gas properties. Accordingly, all costs associated with acquisition, exploration and development of oil and natural gas reserves are capitalized and accounted for in cost centers, on a country-by-country basis. For each cost center, capitalized costs, less accumulated amortization and related deferred income taxes, shall not exceed an amount (the cost center ceiling) equal to the sum of: | |||||||||
a) | The present value of estimated future net revenues computed by applying current prices of oil and natural gas reserves (with consideration of price changes only to the extent provided by contractual arrangements) to estimated future production of proved oil and gas reserves as of the date of the latest balance sheet presented, less estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves computed using a discount factor of ten percent and assuming continuation of existing economic conditions; plus | ||||||||
b) | The cost of properties not being amortized; plus | ||||||||
c) | The lower of cost or estimated fair market value of unproven properties included in the costs being amortized; less | ||||||||
d) | Income tax effects related to differences between the book and tax basis of the properties. | ||||||||
If unamortized costs capitalized within a cost center, less related deferred income taxes, exceed the cost center ceiling (as defined), the excess is charged to expense and separately disclosed during the period in which the excess occurs. Amounts required to be written off will not be reinstated for any subsequent increase in the cost center ceiling. No impairment of oil and gas properties charge was recorded for 2013, 2012 or 2011. | |||||||||
Depreciation and amortization for each cost center are computed on a composite unit-of-production method, based on estimated proven reserves attributable to the respective cost center. All costs associated with oil and gas properties are currently included in the base for computation and amortization. Such costs include all acquisition, exploration, development costs and estimated future expenditures for proved undeveloped properties as well as estimated dismantlement and abandonment costs as calculated under the asset retirement obligation category, net of salvage value. All of the Company's oil and gas properties are located within the continental United States. | |||||||||
Gains and losses on sales of oil and gas properties are treated as adjustments of capitalized costs. Gains or losses on sales of property and equipment, other than oil and gas properties, are recognized as part of operations. Expenditures for renewals and improvements are capitalized, while expenditures for maintenance and repairs are charged to operations as incurred. | |||||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
The Company, as operator, leases equipment to owners of oil and gas wells, on a month-to-month basis. | |||||||||
The Company, as operator, transports natural gas through its natural gas gathering systems, in exchange for a fee. | |||||||||
Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives (5 to 10 years for rental equipment and natural gas gathering systems, 4 to 5 years for other | |||||||||
property and equipment). The straight-line method of depreciation is used for financial reporting purposes, while accelerated methods are used for tax purposes. | |||||||||
Real Estate Property | ' | ||||||||
Real Estate Property | |||||||||
The Company owns land along with a two-story commercial office building which is situated thereon. The Company occupies a portion of the building as its primary corporate headquarters, and leases the remaining space in the building to non-related third party commercial tenants at prevailing market rates. The Company depreciates the commercial office using the straight-line method of depreciation for financial statement and income tax purposes. | |||||||||
Investments in Real Estate | ' | ||||||||
Investments in Real Estate | |||||||||
All investments in real estate holdings are stated at cost or adjusted carrying value. ASC Topic 360, “Accounting for the Impairment or Disposal of Long-Lived Assets”, requires that a property be considered impaired if the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the property. If impairment exists, an impairment loss is recognized by a charge against earnings equal to the amount by which the carrying amount of the property exceeds fair market value less cost to sell the property. If impairment of a property is recognized, the carrying amount of the property is reduced by the amount of the impairment, and a new cost for the property is established. Depreciation is provided over the properties estimated remaining useful life. There was no charge to earnings during 2013 due to impairment of real estate holdings. | |||||||||
Accounting for Asset Retirement Obligations | ' | ||||||||
Accounting for Asset Retirement Obligations | |||||||||
The Company adopted ASC Topic 410-20, "Accounting for Asset Retirement Obligations" on December 31, 2005. This statement requires the recording of a liability in the period in which an asset retirement obligation ("ARO") is incurred, in an amount equal to the discounted estimated fair value of the obligation that is capitalized. Thereafter, each quarter, this liability is accreted up to the final retirement cost. The determination of the ARO is based on an estimate of the future cost to plug and abandon our oil and gas wells. The actual costs could be higher or lower than current estimates. | |||||||||
The following table reflects the changes of the asset retirement obligations during the period ending December 31; | |||||||||
2013 | 2012 | ||||||||
Carrying amount of asset retirement obligation | $ | 949,000 | $ | 946,000 | |||||
Liabilities added | 95,000 | 55,000 | |||||||
Liabilities divested or settled | (55,000 | ) | (92,000 | ) | |||||
Current period accretion expenses | 118,000 | 40,000 | |||||||
Carrying amount as of December 31, | $ | 1,107,000 | $ | 949,000 | |||||
Revenue Recognition | ' | ||||||||
Revenue Recognition | |||||||||
The Company follows the “sales” (takes or cash) method of accounting for oil and natural gas revenues. Under this method, the Company recognizes revenues on oil and natural gas production as it is taken and delivered to the purchasers. The volumes sold may be more or less than the volumes the Company is entitled to take based on our ownership in the property. These differences result in a condition known as a production imbalance. Our crude oil and natural gas imbalances are insignificant. | |||||||||
Income Taxes | ' | ||||||||
Income Taxes | |||||||||
In June, 2006, an interpretation of ASC Topic 740-10, “Accounting for Uncertainty in Income Taxes” was issued. The interpretation creates a single model to address accounting for uncertainty in tax positions. Specifically, the pronouncement prescribes a recognition threshold and a measurement attribute for the financial statement | |||||||||
recognition and measurement of a tax position taken or expected to be taken in a tax return. The interpretation also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition of certain tax positions. Federal and state tax authorities generally have the right to examine and audit the previous three years of tax returns filed. | |||||||||
The Company adopted the provisions of the interpretation of ASC Topic 740-10 effective January 1, 2007. The adoption of this accounting principle did not have an effect on the Company’s consolidated financial statements at, and for the three years ended December 31, 2013. | |||||||||
The Company accounts for income taxes pursuant to ASC Topic 740-10 "Accounting for Income Taxes" , which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities, using enacted tax rates in effect in the years in which the differences are expected to reverse. The temporary differences primarily relate to depreciation, depletion and intangible drilling costs. | |||||||||
Use of Estimates | ' | ||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with U. S. Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||
Share-Based Payments | ' | ||||||||
Share-Based Payments | |||||||||
Effective January 1, 2006, the Company adopted ASC Topic 718-10, “Share-Based Payment". ASC Topic 718-10 requires compensation costs related to share-based payments to be recognized in the income statement over the requisite service period. The amount of the compensation cost is to be measured based on the grant-date fair value of the instrument issued. ASC Topic 718-10 is effective for awards granted or modified after the date of adoption and for awards granted prior to that date that have not vested. ASC Topic 718-10 does not materially change the Company's existing accounting practices or the amount of share-based compensation recognized in earnings. | |||||||||
Recently Issued Accounting Pronouncements | ' | ||||||||
Recently Issued Accounting Pronouncements | |||||||||
The FASB issued Accounting Standards Update No 2013-02 “Comprehensive Income (Topic 220); Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The objective of this Update is to improve the reporting of reclassification out of accumulated other comprehensive income. The amendments in this Update apply to all entities that issue financial statements that are presented in conformity with U.S. GAAP and that report items of other comprehensive income. The amendments are effective for reporting periods beginning after December 15, 2013. The Company has adopted this amendment as of the effective date; however the adoption of this amendment will not have a material impact on the consolidated financial statements of the Company. | |||||||||
Currently, there are no other new accounting pronouncements that were issued to be effective in 2013 or subsequent thereto that would have a material impact on the Company’s financial reporting. | |||||||||
Subsequent Events | ' | ||||||||
Subsequent Events | |||||||||
The Company has evaluated subsequent events through the issuance date of April 15, 2014. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Asset Retirement Obligation | ' | ||||||||
2013 | 2012 | ||||||||
Carrying amount of asset retirement obligation | $ | 949,000 | $ | 946,000 | |||||
Liabilities added | 95,000 | 55,000 | |||||||
Liabilities divested or settled | (55,000 | ) | (92,000 | ) | |||||
Current period accretion expenses | 118,000 | 40,000 | |||||||
Carrying amount as of December 31, | $ | 1,107,000 | $ | 949,000 |
Account_Receivable_Tables
Account Receivable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Notes to Financial Statements | ' | ||||||||
Accounts Receivable | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Trade | $ | 123,000 | $ | 21,000 | |||||
Accrued receivable | 3,525,000 | 2,149,000 | |||||||
3,648,000 | 2,170,000 | ||||||||
Less: Allowance for losses | (15,000 | ) | (15,000 | ) | |||||
$ | 3,633,000 | $ | 2,155,000 |
Accounts_Payable_Tables
Accounts Payable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Trade payables | $ | 844,000 | $ | 1,101,000 | |||||
Production proceeds payable | 2,661,000 | 2,189,000 | |||||||
Prepaid drilling costs | 430,000 | 161,000 | |||||||
$ | 3,935,000 | $ | 3,451,000 |
Notes_Payable_Tables
Notes Payable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Note Payable | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Note payable to a bank with monthly principal payments of $10,000 plus accrued interest at a variable annual interest rate based upon an index which is the Treasury securities rate for a term of seven years, plus 2.2%. The interest rate is subject to change on the first day of each seven year anniversary after the date of the rate based on the Index than in effect. As of the date of the loan, the annual interest rate was 6.11%. Effective December 27, 2011, the annual interest rate was adjusted to 3.61%. The note is collateralized by land and a commercial office building, plus a guarantee by certain related parties. The note matures in November, 2018. Effective December 27, 2013, the Company prepaid the remaining principal balance plus accrued interest and the note was paid in full | — | 720,000 | |||||||
Less current maturities | — | (120,000 | ) | ||||||
Total notes payable, long-term portion | — | 600,000 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Tax Expense (Benefit) | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Computed expected tax expense (benefit) | $ | 1,405,000 | $ | 999,000 | $ | 449,000 | |||||||
Miscellaneous timing differences | |||||||||||||
related to book and tax depletion | |||||||||||||
differences and the expensing of | |||||||||||||
intangible drilling costs | (803,000 | ) | (752,000 | ) | (678,000 | ) | |||||||
Expected Federal income tax expense (benefit) | $ | 602,000 | $ | 247,000 | $ | (229,000 | ) | ||||||
Income tax expense (benefit) for the years ended December 31, 2013, 2012 and 2011 consisted of the following: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal income taxes (benefit) | $ | 602,000 | $ | 247,000 | $ | (229,000 | ) | ||||||
State income taxes | — | — | — | ||||||||||
Current income tax provision (benefit) | $ | 602,000 | $ | 247,000 | $ | (229,000 | ) | ||||||
Deferred Tax | ' | ||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets | |||||||||||||
Depreciation, depletion and amortization | 348,000 | 770,000 | |||||||||||
Other, net | 7,000 | 7,000 | |||||||||||
Total | 355,000 | 777,000 | |||||||||||
Deferred tax liabilities | |||||||||||||
Expired leasehold | 12,000 | (67,000 | ) | ||||||||||
Intangible drilling costs | (1,972,000 | ) | (2,200,000 | ) | |||||||||
Depreciation | (158,000 | ) | (348,000 | ) | |||||||||
Net deferred tax liability | $ | (1,763,000 | ) | $ | (1,838,000 | ) |
Cash_Flow_Information_Tables
Cash Flow Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||||||
Cash Flow | ' | ||||||||||||
Net cash provided by operating activities includes cash payments for the following: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Interest expense | $ | 17,000 | $ | 29,000 | $ | 55,000 | |||||||
Income taxes | 450,000 | 50,000 | 170,000 | ||||||||||
Excluded from the Consolidated Statements of Cash Flows were the effects of certain non-cash investing and financing activities, as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Addition of Oil & Gas | |||||||||||||
properties by recognitions of | |||||||||||||
asset retirement obligation | $ | 40,000 | $ | (36,000 | ) | $ | 57,000 | ||||||
$ | 40,000 | $ | (36,000 | ) | $ | 57,000 |
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||||||||||
Financial Instruments | ' | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Cash | $ | 9,129,000 | $ | 9,129,000 | $ | 7,151,000 | $ | 7,151,000 | |||||||||
Short-term certificates | 400,000 | 400,000 | 400,000 | 400,000 | |||||||||||||
Long-term certificates | 1,200,000 | 1,200,000 | 1,200,000 | 1,200,000 | |||||||||||||
Accounts receivable | 3,633,000 | 3,633,000 | 2,155,000 | 2,155,000 |
Additional_Operations_and_Bala1
Additional Operations and Balance Sheet Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Significant purchasers / operators | ' | ||||||||||||
Purchaser | 2013 | 2012 | 2011 | ||||||||||
Halcon Resources Operating, Inc. | 28 | % | 7 | % | 0 | % | |||||||
Pruet Production Co. | 13 | % | 9 | % | 0 | % | |||||||
Shell Trading (US) Company | 8 | % | 15 | % | 20 | % | |||||||
Eastex Crude Company | 7 | % | 6 | % | 7 | % | |||||||
Enbridge Energy Partners | 6 | % | 9 | % | 22 | % | |||||||
Crosstex Gulf Coast Mktg | 5 | % | 5 | % | 11 | % | |||||||
Targa Midstream Service, LIM | 5 | % | 8 | % | 4 | % | |||||||
Sunoco Partners Marketing | 4 | % | 3 | % | 1 | % | |||||||
Gulfmark Energy, Inc. | 3 | % | 4 | % | 3 | % | |||||||
Enterprise Crude Oil, LLC | 2 | % | 2 | % | 5 | % | |||||||
Holly Corp (Formerly Navajo Refining Co.) | 2 | % | 3 | % | 2 | % | |||||||
Enervest Operating, LLC | 2 | % | 2 | % | 0 | % | |||||||
Phillips 66 | 1 | % | 1 | % | 0 | % | |||||||
DCP Midstream, LP | 1 | % | 1 | % | 2 | % | |||||||
Midstates Petroleum | 1 | % | 0 | % | 0 | % | |||||||
Panther Energy Company, LLC | 1 | % | 4 | % | 0 | % | |||||||
Empire Pipeline Corp. | 1 | % | 1 | % | 1 | % | |||||||
Revenues, costs and expenses related to the Company's oil and gas operations | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Capitalized costs relating to oil and gas | |||||||||||||
producing activities: | |||||||||||||
Unproved properties | $ | 2,398,000 | $ | 2,267,000 | $ | 2,242,000 | |||||||
Proved properties | 22,425,000 | 20,555,000 | 18,153,000 | ||||||||||
Total capitalized costs | 24,823,000 | 22,822,000 | 20,395,000 | ||||||||||
Accumulated amortization | (12,586,000 | ) | (10,744,000 | ) | (9,161,000 | ) | |||||||
Total capitalized costs, net | $ | 12,237,000 | 12,078,000 | $ | 11,234,000 | ||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Costs incurred in oil and gas property | |||||||||||||
acquisitions, exploration and development: | |||||||||||||
Acquisition of properties | $ | 914,000 | $ | 685,000 | $ | 303,000 | |||||||
Development costs | 1,087,000 | 1,742,000 | 2,208,000 | ||||||||||
Total costs incurred | $ | 2,001,000 | $ | 2,427,000 | $ | 2,511,000 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Results of operations from producing activities: | |||||||||||||
Sales of oil and gas | $ | 12,457,000 | $ | 9,999,000 | $ | 8,000,000 | |||||||
Production costs | 3,526,000 | 3,521,000 | 3,253,000 | ||||||||||
Amortization of oil and gas properties | 1,842,000 | 1,583,000 | 1,032,000 | ||||||||||
Total production costs | 5,368,000 | 5,104,000 | 4,285,000 | ||||||||||
Total net revenue | $ | 7,089,000 | $ | 4,895,000 | $ | 3,715,000 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Sales price per equivalent Mcf | $ | 9.76 | $ | 7.88 | $ | 7.8 | |||||||
Production costs per equivalent Mcf | $ | 2.76 | $ | 2.78 | $ | 3.17 | |||||||
Amortization per equivalent Mcf | $ | 1.44 | $ | 1.25 | $ | 1.01 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Results of operations from gas gathering | |||||||||||||
and equipment rental activities: | |||||||||||||
Revenue | $ | 142,000 | $ | 145,000 | $ | 175,000 | |||||||
Operating expenses | 42,000 | 26,000 | 25,000 | ||||||||||
Depreciation | — | — | 1,000 | ||||||||||
Total costs | 42,000 | 26,000 | 26,000 | ||||||||||
Total net revenue | $ | 100,000 | $ | 119,000 | $ | 149,000 |
Business_Segments_Tables
Business Segments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Business Segments | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenues: (1) | |||||||||||||
Oil and gas exploration, production | $ | 12,866,000 | $ | 10,357,000 | $ | 8,289,000 | |||||||
and operations | |||||||||||||
Natural gas gathering, compression and | 142,000 | 145,000 | 172,000 | ||||||||||
equipment rental | |||||||||||||
Real estate rental | 249,000 | 242,000 | 436,000 | ||||||||||
$ | 13,257,000 | $ | 10,744,000 | $ | 8,897,000 | ||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Depreciation, depletion, and | |||||||||||||
amortization expense: | |||||||||||||
Oil and gas exploration, production | $ | 1,860,000 | $ | 1,594,000 | $ | 1,050,000 | |||||||
and operations | |||||||||||||
Natural gas gathering, compression and | — | — | 1,000 | ||||||||||
equipment rental | |||||||||||||
Real estate rental | 53,000 | 53,000 | 101,000 | ||||||||||
$ | 1,913,000 | $ | 1,647,000 | $ | 1,152,000 | ||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income from operations: | |||||||||||||
Oil and gas exploration, production | $ | 7,363,000 | $ | 5,201,000 | $ | 3,952,000 | |||||||
and operations | |||||||||||||
Natural gas gathering, compression and | 100,000 | 119,000 | 146,000 | ||||||||||
equipment rental | |||||||||||||
Real estate rental | (19,000 | ) | 4,000 | 110,000 | |||||||||
7,444,000 | 5,324,000 | 4,208,000 | |||||||||||
Corporate and other (2) | (3,902,000 | ) | (1,665,000 | ) | (2,455,000 | ) | |||||||
Consolidated net income | $ | 3,542,000 | $ | 3,659,000 | $ | 1,753,000 | |||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Identifiable assets net of DDA: | |||||||||||||
Oil and gas exploration, production | |||||||||||||
and operations | $ | 12,267,000 | $ | 12,126,000 | $ | 11,289,000 | |||||||
Natural gas gathering, compression and | |||||||||||||
equipment rental | (1,000 | ) | — | (1,000 | ) | ||||||||
Real estate rental | 1,563,000 | 1,615,000 | 1,667,000 | ||||||||||
13,829,000 | 13,741,000 | 12,955,000 | |||||||||||
Corporate and other (3) | 14,366,000 | 10,912,000 | 10,324,000 | ||||||||||
Consolidated total assets | $ | 28,195,000 | $ | 24,653,000 | $ | 23,279,000 |
Supplementory_Income_Statement1
Supplementory Income Statement (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Notes to Financial Statements | ' | ||||||||||||
Supplementary Income statement | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Maintenance and repairs | $ | 17,000 | $ | 11,000 | $ | 15,000 | |||||||
Production taxes | 569,000 | 487,000 | 371,000 | ||||||||||
Taxes, other than payroll and income taxes | 29,000 | 9,000 | 11,000 |
Quarterly_Data_Tables
Quarterly Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Data | ' | ||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenue | $ | 2,368,000 | $ | 3,763,000 | $ | 2,647,000 | $ | 4,769,000 | |||||||||
Expense | (1,839,000 | ) | (2,240,000 | ) | (2,120,000 | ) | (3,279,000 | ) | |||||||||
Operating income (loss) | 529,000 | 1,523,000 | 527,000 | 1,490,000 | |||||||||||||
Current tax (provision) benefit | (82,000 | ) | (246,000 | ) | 10,000 | (284,000 | ) | ||||||||||
Deferred tax (provision) benefit | 54,000 | (209,000 | ) | 35,000 | 195,000 | ||||||||||||
Net income (loss) | $ | 501,000 | $ | 1,068,000 | $ | 572,000 | $ | 1,401,000 | |||||||||
Earnings (loss) per share of | |||||||||||||||||
common stock | |||||||||||||||||
Basic and diluted | $ | 0.07 | $ | 0.15 | $ | 0.08 | $ | 0.21 | |||||||||
Year Ended December 31, 2012 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenue | $ | 2,356,000 | $ | 2,940,000 | $ | 2,561,000 | $ | 4,249,000 | |||||||||
Expense | (1,717,000 | ) | (2,055,000 | ) | (1,928,000 | ) | (3,468,000 | ) | |||||||||
Operating income (loss) | 639,000 | 885,000 | 633,000 | 781,000 | |||||||||||||
Current tax (provision) benefit | (78,000 | ) | (66,000 | ) | (3,000 | ) | (100,000 | ) | |||||||||
Deferred tax (provision) benefit | 181,000 | 199,000 | 90,000 | 498,000 | |||||||||||||
Net income (loss) | $ | 742,000 | $ | 1,018,000 | $ | 720,000 | $ | 1,179,000 | |||||||||
Earnings (loss) per share of | |||||||||||||||||
common stock | |||||||||||||||||
Basic and diluted | $ | 0.1 | $ | 0.13 | $ | 0.09 | $ | 0.17 | |||||||||
Year Ended December 31, 2011 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenue | $ | 2,620,000 | $ | 2,077,000 | $ | 2,040,000 | $ | 2,603,000 | |||||||||
Expense | (1,770,000 | ) | (1,805,000 | ) | (1,774,000 | ) | (2,670,000 | ) | |||||||||
Operating income (loss) | 850,000 | 272,000 | 266,000 | (67,000 | ) | ||||||||||||
Current tax (provision) benefit | (79,000 | ) | 113,000 | (12,000 | ) | 207,000 | |||||||||||
Deferred tax (provision) benefit | 37,000 | (104,000 | ) | 10,000 | 260,000 | ||||||||||||
Net income (loss) | $ | 808,000 | $ | 281,000 | $ | 264,000 | $ | 400,000 | |||||||||
Earnings (loss) per share of | |||||||||||||||||
common stock | |||||||||||||||||
Basic and diluted | $ | 0.1 | $ | 0.04 | $ | 0.03 | $ | 0.06 |
Supplemental_Reserve_Informati1
Supplemental Reserve Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||
Quantities of Proved Reserves | ' | ||||||||||||||||
Quantities of Proved Reserves: | Crude Oil | Natural Gas | |||||||||||||||
Bbls | Mcf | ||||||||||||||||
Balance December 31, 2010 | 362,350 | 10,622,430 | |||||||||||||||
Sales of reserves in place | — | — | |||||||||||||||
Acquired properties | 11,390 | 122,310 | |||||||||||||||
Extensions and discoveries | 36,610 | 226,300 | |||||||||||||||
Revisions of previous estimates * | 70,338 | (2,085,974 | ) | ||||||||||||||
Production | (48,708 | ) | (733,816 | ) | |||||||||||||
Balance December 31, 2011 | 431,980 | 8,151,250 | |||||||||||||||
Sales of reserves in place | (980 | ) | (205,900 | ) | |||||||||||||
Acquired properties | 13,930 | 1,003,190 | |||||||||||||||
Extensions and discoveries | 75,918 | 47,920 | |||||||||||||||
Revisions of previous estimates * | 57,386 | (1,671,752 | ) | ||||||||||||||
Production | (79,514 | ) | (791,708 | ) | |||||||||||||
Balance December 31, 2012 | 498,720 | 6,533,000 | |||||||||||||||
Sales of reserves in place | — | — | |||||||||||||||
Acquired properties | 11,490 | 630,830 | |||||||||||||||
Extensions and discoveries | 44,082 | 13,930 | |||||||||||||||
Revisions of previous estimates * | (14,540 | ) | 321,215 | ||||||||||||||
Production | (89,872 | ) | (736,645 | ) | |||||||||||||
Balance December 31, 2013 | 449,880 | 6,762,330 | |||||||||||||||
* May also include divestitures, not only changes in engineering. | |||||||||||||||||
Proved Developed Reserves: | |||||||||||||||||
Balance December 31, 2011 | 401,240 | 8,124,340 | |||||||||||||||
Balance December 31, 2012 | 498,720 | 6,533,000 | |||||||||||||||
Balance December 31, 2013 | 449,880 | 6,762,330 | |||||||||||||||
Standardized measure of discounted future net cash flows related to proved reserves: | ' | ||||||||||||||||
Standardized measure of discounted future net cash flows related to proved reserves: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Future production revenue | $ | 69,583,000 | $ | 68,813,000 | $ | 78,938,000 | |||||||||||
Future development costs | (108,000 | ) | (108,000 | ) | (108,000 | ) | |||||||||||
Future production costs | (30,072,000 | ) | (29,746,000 | ) | (32,843,000 | ) | |||||||||||
Future net cash flow before Federal income taxes | 39,403,000 | 38,959,000 | 45,987,000 | ||||||||||||||
Future income taxes | (11,033,000 | ) | (10,909,000 | ) | (12,876,000 | ) | |||||||||||
Future net cash flows | 28,370,000 | 28,050,000 | 33,111,000 | ||||||||||||||
Effect of 10% annual discounting | (4,209,000 | ) | (5,787,000 | ) | (9,649,000 | ) | |||||||||||
Standardized measure of discounted cash flows | $ | 24,161,000 | $ | 22,263,000 | $ | 23,462,000 | |||||||||||
Changes in the standardized measure of discounted future net cash flows: | ' | ||||||||||||||||
Changes in the standardized measure of discounted future net cash flows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Beginning of the year | $ | 22,263,000 | $ | 23,462,000 | $ | 18,705,000 | |||||||||||
Sales of oil and gas, net of production costs | (8,498,000 | ) | (6,161,000 | ) | (4,516,000 | ) | |||||||||||
Net changes in prices and production costs | 2,945,000 | (2,990,000 | ) | 5,970,000 | |||||||||||||
Extensions, discoveries, additions | |||||||||||||||||
less related costs | 2,916,000 | 3,498,000 | 2,179,000 | ||||||||||||||
Development costs incurred | 1,035,000 | 1,657,000 | 2,101,000 | ||||||||||||||
Net changes in future development cost | 7,000 | 7,000 | (1,492,000 | ) | |||||||||||||
Revisions of previous quantity estimates | (946,000 | ) | (1,742,000 | ) | (1,243,000 | ) | |||||||||||
Net change in purchase and sales of | |||||||||||||||||
minerals in place | 1,200,000 | 1,051,000 | 581,000 | ||||||||||||||
Accretion of discount | 2,226,000 | 2,346,000 | 1,871,000 | ||||||||||||||
Net change in income taxes | 614,000 | 1,502,000 | (417,000 | ) | |||||||||||||
Other | 399,000 | (367,000 | ) | (277,000 | ) | ||||||||||||
End of year | $ | 24,161,000 | $ | 22,263,000 | $ | 23,462,000 | |||||||||||
Allowance for doubtful accounts | ' | ||||||||||||||||
SCHEDULE I I | |||||||||||||||||
Balance | Costs & | Deductions | Ending | ||||||||||||||
Expenses | Balance | ||||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||
31-Dec-11 | $ | 15,000 | $ | — | $ | — | $ | 15,000 | |||||||||
31-Dec-12 | $ | 15,000 | $ | — | $ | — | $ | 15,000 | |||||||||
31-Dec-13 | $ | 15,000 | $ | — | $ | — | $ | 15,000 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Asset Retirement Obligation (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounting Policies [Abstract] | ' | ' | ' |
Carrying amount of asset retirement obligation | $949,000 | $946,000 | ' |
Liabilities added | 95,000 | 55,000 | ' |
Liabilities divested or settled | -55,000 | -92,000 | ' |
Current period accretion expenses | 118,000 | 40,000 | 34,000 |
Carrying amount as of December 31, | $1,107,000 | $949,000 | $946,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended |
Dec. 31, 2013 | |
Rental Properties | Minimum | ' |
Estimated life | '5 years |
Rental Properties | Maximum | ' |
Estimated life | '10 years |
Natural gas gathering system | Minimum | ' |
Estimated life | '4 years |
Natural gas gathering system | Maximum | ' |
Estimated life | '5 years |
Account_Receivable_Details
Account Receivable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Account receivable, gross | $3,648,000 | $2,170,000 |
Less: Allowance for losses | -15,000 | -15,000 |
Accounts receivable, trade | 3,633,000 | 2,155,000 |
Trade Receivables | ' | ' |
Account receivable, gross | 123,000 | 21,000 |
Accrued Receivables | ' | ' |
Account receivable, gross | $3,525,000 | $2,149,000 |
Accounts_Payable_Accounts_Paya
Accounts Payable - Accounts Payable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Payables and Accruals [Abstract] | ' | ' |
Trade payables | $844,000 | $1,101,000 |
Production proceeds payable | 2,661,000 | 2,189,000 |
Prepaid drilling costs | 430,000 | 161,000 |
Accounts payable and accrued liabilities | $3,935,000 | $3,451,000 |
Notes_Payable_Note_Payable_Det
Notes Payable - Note Payable (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' | ' |
Note Payable | $720,000 | ' |
Monthly Principal | 10,000 | ' |
Interest rate | 3.61% | ' |
Less current maturities | -120,000 | ' |
Total notes payable, long-term portion | $600,000 | ' |
Notes_Payable_Note_Payable_Det1
Notes Payable - Note Payable (Details) (Parenthetical) | 12 Months Ended |
Dec. 31, 2012 | |
Debt Disclosure [Abstract] | ' |
Terms | 'Accrued interest at a variable annual interest rate based upon an index which is the Treasury securities rate for a term of seven years, plus 2.2%. The interest rate is subject to change on the first day of each seven year anniversary after the date of the rate based on the Index than in effect. As of the date of the loan, the annual interest rate was 6.11%. Effective December 27, 2011, the annual interest rate was adjusted to 3.61%. |
Related_Party_Transactions_Det
Related Party Transactions (Details Narrative) (USD $) | 12 Months Ended |
Dec. 31, 2008 | |
Giant | ' |
Monthly Fees | $250 |
MRO | ' |
Monthly Fees | 1,000 |
NRG | ' |
Monthly Fees | 2,500 |
Peveler | ' |
Monthly Fees | 250 |
MRV | ' |
Monthly Fees | 500 |
Reserve | ' |
Monthly Fees | $350 |
Common_Stock_Details_Narrative
Common Stock (Details Narrative) (USD $) | 0 Months Ended | |||||
Dec. 18, 2012 | Oct. 30, 2012 | Dec. 30, 2011 | Aug. 01, 2011 | Dec. 31, 2010 | ||
Equity [Abstract] | ' | ' | ' | ' | ' | |
Restricted common stock, issued | ' | ' | 10,000 | 10,000 | [1] | ' |
Price per share | $1.50 | $2.13 | $1.70 | $1.70 | ' | |
Treasury stock, outstanding | ' | ' | 16,668 | 26,668 | 36,668 | |
Purchase shares of Common Stock as Treasury Stock, Amount | $36,801 | $1,491,000 | ' | ' | ' | |
Purchase shares of Common Stock as Treasury Stock, Shares | 24,534 | 700,000 | ' | ' | ' | |
[1] | 5,000 shares to each of two individuals |
Income_Taxes_Income_Tax_Expens
Income Taxes - Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Computed expected tax expense (benefit) | $1,405,000 | $999,000 | $449,000 |
Miscellaneous timing differences related to book and tax depletion differences and the expensing of intangible drilling costs | -803,000 | -752,000 | -678,000 |
Expected Federal income tax expense (benefit) | 602,000 | 247,000 | -229,000 |
Current income tax provision (benefit) | $602,000 | $247,000 | ($229,000) |
Income_Taxes_Deferred_Tax_Deta
Income Taxes - Deferred Tax (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets | ' | ' |
Depreciation, depletion and amortization | $348,000 | $770,000 |
Other, net | 7,000 | 7,000 |
Net deferred tax asset | 355,000 | 777,000 |
Deferred tax liabilities | ' | ' |
Expired leasehold | 12,000 | -67,000 |
Intangible drilling costs | -1,972,000 | -2,200,000 |
Depreciation | -158,000 | -348,000 |
Net deferred tax liability | ($1,763,000) | ($1,838,000) |
Income_Taxes_Details_Narrative
Income Taxes (Details Narrative) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Payments to unsecured creditors | $0 | $0 | $0 |
Owed to unsecured creditors | $97,000 | ' | ' |
Effective tax rate | 34.00% | ' | ' |
Cash_Flow_Information_Cash_Flo
Cash Flow Information - Cash Flow (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net cash provided by operating activities includes cash payments for the following: | ' | ' | ' |
Interest expense | $17,000 | $29,000 | $55,000 |
Income taxes | 450,000 | 50,000 | 170,000 |
Excluded from the Consolidated Statements of Cash Flows were the effects of certain non-cash investing and financing activities, as follows: | ' | ' | ' |
Addition of Oil & Gas properties by recognitions of asset retirement obligation | $40,000 | ($36,000) | $57,000 |
Concentration_of_Credit_Risk_D
Concentration of Credit Risk (Details Narrative) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
FDIC Insured | $250,000 | $250,000 |
Certificate of Deposit | ' | ' |
FIDC Insured | 'Exceeds 6,844,000 | ' |
Checking and money market accounts | 1,580,000 | ' |
Certificates of Deposits | 1,600,000 | ' |
Bank One | ' | ' |
Checking and money market accounts | 5,253,000 | ' |
Bank Two | ' | ' |
Checking and money market accounts | $3,090,000 | ' |
Financial_Instruments_Financia
Financial Instruments - Financial Instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Cash, Carrying amount | $9,129,000 | $7,151,000 |
Cash, Fair Value | 9,129,000 | 7,151,000 |
Accounts receivable, carrying amount | 3,633,000 | 2,155,000 |
Accounts receivable, Fair Value | 3,633,000 | 2,155,000 |
Short-term | ' | ' |
Certificates, Carrying Amount | 400,000 | 400,000 |
Certificates, Fair Value | 400,000 | 400,000 |
Long-term | ' | ' |
Certificates, Carrying Amount | 1,200,000 | 1,200,000 |
Certificates, Fair Value | $1,200,000 | $1,200,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Narrative) (USD $) | Dec. 31, 2013 | |
Single-well bonds | ' | |
Single-well bonds | $35,000 | [1] |
Single-well bonds Additional | ' | |
Single-well bonds | 10,000 | |
Letters of Credit | ' | |
Single-well bonds | $298,000 | [2] |
[1] | Seven, $5,000 single-well | |
[2] | 10 Letters of credit, ranging in amounts from $10,000 to $50,000 and totaling $298,000 |
Additional_Operations_and_Bala2
Additional Operations and Balance Sheet Information - Significant purchasers / operators (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Halcon Resources Operating, Inc. | ' | ' | ' |
Significant Purchaser | 28.00% | 7.00% | 0.00% |
Pruet Production Co. | ' | ' | ' |
Significant Purchaser | 13.00% | 9.00% | 0.00% |
Shell Trading (US) Company | ' | ' | ' |
Significant Purchaser | 8.00% | 15.00% | 20.00% |
Eastex Crude Company | ' | ' | ' |
Significant Purchaser | 7.00% | 6.00% | 7.00% |
Enbridge Energy Partners | ' | ' | ' |
Significant Purchaser | 6.00% | 9.00% | 22.00% |
Crosstex Gulf Coast Mktg | ' | ' | ' |
Significant Purchaser | 5.00% | 5.00% | 11.00% |
Targa Midstream Service, LIM | ' | ' | ' |
Significant Purchaser | 5.00% | 8.00% | 4.00% |
Sunoco Partners Marketing | ' | ' | ' |
Significant Purchaser | 4.00% | 3.00% | 1.00% |
Gulfmark Energy, Inc | ' | ' | ' |
Significant Purchaser | 3.00% | 4.00% | 3.00% |
Enterprise Crude Oil, LLC | ' | ' | ' |
Significant Purchaser | 2.00% | 2.00% | 5.00% |
Holly Corp | ' | ' | ' |
Significant Purchaser | 2.00% | 3.00% | 2.00% |
Enervest Operating, LLC | ' | ' | ' |
Significant Purchaser | 2.00% | 2.00% | 0.00% |
Phillips 66 | ' | ' | ' |
Significant Purchaser | 1.00% | 1.00% | 0.00% |
DCP Midstream, LP | ' | ' | ' |
Significant Purchaser | 1.00% | 1.00% | 2.00% |
Midstates Petroleum | ' | ' | ' |
Significant Purchaser | 1.00% | 0.00% | 0.00% |
Panther Energy Company, LLC | ' | ' | ' |
Significant Purchaser | 1.00% | 4.00% | 0.00% |
Empire Pipeline Corp. | ' | ' | ' |
Significant Purchaser | 1.00% | 1.00% | 1.00% |
Additional_Operations_and_Bala3
Additional Operations and Balance Sheet Information - Revenues, costs and expenses related to the Company's oil and gas operations (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Capitalized costs relating to oil and gas producing activities: | ' | ' | ' |
Unproved properties | $2,398,000 | $2,267,000 | $2,242,000 |
Proved properties | 22,425,000 | 20,555,000 | 18,153,000 |
Total capitalized costs | 24,823,000 | 22,822,000 | 20,395,000 |
Accumulated amortization | -12,586,000 | -10,744,000 | -9,161,000 |
Total capitalized costs, net | $12,237,000 | $12,078,000 | $11,234,000 |
Additional_Operations_and_Bala4
Additional Operations and Balance Sheet Information (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Costs incurred in oil and gas property acquisitions, exploration and development: | ' | ' | ' |
Acquisition of properties | $914,000 | $685,000 | $303,000 |
Development costs | 1,087,000 | 1,742,000 | 2,208,000 |
Total costs incurred | $2,001,000 | $2,427,000 | $2,511,000 |
Additional_Operations_and_Bala5
Additional Operations and Balance Sheet Information (Details 3) (Oil and gas exploration, acquisition, production and operations, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Oil and gas exploration, acquisition, production and operations | ' | ' | ' |
Result of operations from producing activities: | ' | ' | ' |
Oil and gas revenues | $12,457,000 | $9,999,000 | $8,000,000 |
Operataing costs | 3,526,000 | 3,521,000 | 3,253,000 |
Amortization/Depreciation | 1,842,000 | 1,583,000 | 1,032,000 |
Total production costs | 5,368,000 | 5,104,000 | 4,285,000 |
Total net revenue | $7,089,000 | $4,895,000 | $3,715,000 |
Additional_Operations_and_Bala6
Additional Operations and Balance Sheet Information (Details 4) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' |
Sales price per equivalent Mcf | 9.76 | 7.88 | 7.8 |
Production costs per equivalent Mcf | 2.76 | 2.78 | 3.17 |
Amortization per equivalent Mcf | 1.44 | 1.25 | 1.01 |
Additional_Operations_and_Bala7
Additional Operations and Balance Sheet Information (Details 5) (Gas Gathering, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Gas Gathering | ' | ' | ' |
Results of opeations from gas gathering and equipment rental activities: | ' | ' | ' |
Natural gas gathering, compression, equipment rental | $142,000 | $145,000 | $175,000 |
Operataing costs | 42,000 | 26,000 | 25,000 |
Amortization/Depreciation | ' | ' | 1,000 |
Total production costs | 42,000 | 26,000 | 26,000 |
Total net revenue | $100,000 | $119,000 | $149,000 |
Business_Segments_Business_Seg
Business Segments - Business Segments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenue | $13,257,000 | $10,744,000 | $8,897,000 |
Depreciation, depletion, and amortization | 1,913,000 | 1,647,000 | 1,152,000 |
Income from operations | 3,542,000 | 3,659,000 | 1,753,000 |
Identifiable assets net of DDA | 28,195,000 | 24,653,000 | 23,279,000 |
Tansportation and compression of natural gas | ' | ' | ' |
Revenue | 142,000 | 145,000 | 172,000 |
Depreciation, depletion, and amortization | ' | ' | 1,000 |
Income from operations | 100,000 | 119,000 | 146,000 |
Identifiable assets net of DDA | -1,000 | ' | -1,000 |
Commercial real estate investment | ' | ' | ' |
Revenue | 249,000 | 242,000 | 436,000 |
Depreciation, depletion, and amortization | 53,000 | 53,000 | 101,000 |
Income from operations | -19,000 | 4,000 | 110,000 |
Subtotal | ' | ' | ' |
Income from operations | 7,444,000 | 5,324,000 | 4,208,000 |
Identifiable assets net of DDA | 13,829,000 | 13,741,000 | 12,955,000 |
Corporate and other | ' | ' | ' |
Income from operations | -3,902,000 | -1,665,000 | -2,455,000 |
Identifiable assets net of DDA | 14,366,000 | 10,912,000 | 10,324,000 |
Commercial real estate investment | ' | ' | ' |
Identifiable assets net of DDA | 1,563,000 | 1,615,000 | 1,667,000 |
Oil and gas exploration, acquisition, production and operations | ' | ' | ' |
Revenue | 12,866,000 | 10,357,000 | 8,289,000 |
Depreciation, depletion, and amortization | 1,860,000 | 1,594,000 | 1,050,000 |
Income from operations | 7,363,000 | 5,201,000 | 3,952,000 |
Identifiable assets net of DDA | $12,267,000 | $12,126,000 | $11,289,000 |
Supplementory_Income_Statement2
Supplementory Income Statement - Supplementary Income statement (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Notes to Financial Statements | ' | ' | ' |
Maintenance and repairs | $17,000 | $11,000 | $15,000 |
Production taxes | 569,000 | 487,000 | 371,000 |
Taxes, other than payroll and income taxes | $29,000 | $9,000 | $11,000 |
Quarterly_Data_Quarterly_Data_
Quarterly Data - Quarterly Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Revenues | $4,769,000 | $2,647,000 | $3,763,000 | $2,368,000 | $4,249,000 | $2,561,000 | $2,940,000 | $2,356,000 | $2,603,000 | $2,040,000 | $2,077,000 | $2,620,000 | $13,547,000 | $12,106,000 | $9,340,000 |
Expense | -3,279,000 | -2,120,000 | -2,240,000 | -1,839,000 | -3,468,000 | -1,928,000 | -2,055,000 | -1,717,000 | -2,670,000 | -1,774,000 | -1,805,000 | -1,770,000 | 9,478,000 | 9,168,000 | 8,019,000 |
Operating income (loss) | 1,490,000 | 527,000 | 1,523,000 | 529,000 | 781,000 | 633,000 | 885,000 | 639,000 | -67,000 | 266,000 | 272,000 | 850,000 | 4,069,000 | 2,938,000 | 1,321,000 |
Current tax (provision) benefit | -284,000 | 10,000 | -246,000 | -82,000 | -100,000 | -3,000 | -66,000 | -78,000 | 207,000 | -12,000 | 113,000 | -79,000 | 602,000 | 247,000 | -229,000 |
Deferred tax (provision) benefit | 195,000 | 35,000 | -209,000 | 54,000 | 498,000 | 90,000 | 199,000 | 181,000 | 260,000 | 10,000 | -104,000 | 37,000 | -75,000 | -968,000 | -203,000 |
Net income (loss) | $1,401,000 | $572,000 | $1,068,000 | $501,000 | $1,179,000 | $720,000 | $1,018,000 | $742,000 | $400,000 | $264,000 | $281,000 | $808,000 | $3,542,000 | $3,659,000 | $1,753,000 |
Earnings (loss) per share of common stock Basic and diluted | $0.21 | $0.08 | $0.15 | $0.07 | $0.17 | $0.09 | $0.13 | $0.10 | $0.06 | $0.03 | $0.04 | $0.10 | $0.51 | $0.49 | $0.23 |
Supplemental_Reserve_Informati2
Supplemental Reserve Information (Details 1) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Quantities of Proved Reserves: | ' | ' | ' |
Supplemental Reserve Information | 'B | 'B | 'B |
Crude Oil Bbls | ' | ' | ' |
Quantities of Proved Reserves: | ' | ' | ' |
Beginning Balance | 498,720 | 431,980 | 362,350 |
Sales of reserves in place | ' | -980 | ' |
Acquired properties | 11,490 | 13,930 | 11,390 |
Extensions and discoveries | 44,082 | 75,918 | 36,610 |
Revisions of previous estimates * | -14,540 | 57,386 | 70,338 |
Production | -89,872 | -79,514 | -48,708 |
Ending Balance | 449,880 | 498,720 | 431,980 |
Proved Developed Reserves: | ' | ' | ' |
Proved Developed Reserves | 449,880 | 498,720 | 401,240 |
Natural Gas MCF | ' | ' | ' |
Quantities of Proved Reserves: | ' | ' | ' |
Beginning Balance | 6,533,000 | 8,151,250 | 10,622,430 |
Sales of reserves in place | ' | -205,990 | ' |
Acquired properties | 630,830 | 1,003,190 | 122,310 |
Extensions and discoveries | 13,930 | 47,920 | 226,300 |
Revisions of previous estimates * | 321,215 | -1,672,752 | -2,085,974 |
Production | 736,645 | -791,708 | -733,816 |
Ending Balance | 6,762,330 | 6,533,000 | 8,151,250 |
Proved Developed Reserves: | ' | ' | ' |
Proved Developed Reserves | 6,762,330 | 6,533,000 | 8,124,340 |
Supplemental_Reserve_Informati3
Supplemental Reserve Information (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Standardized measure of discounted future net cash flows related to proved reserves: | ' | ' | ' |
Future production revenue | $69,583,000 | $68,813,000 | $78,938,000 |
Future development costs | -108,000 | -108,000 | -108,000 |
Future production costs | -30,072,000 | -29,746,000 | -32,843,000 |
Future net cash flow before Federal income taxes | 39,403,000 | 38,959,000 | 45,987,000 |
Future income taxes | -11,033,000 | -10,909,000 | -12,876,000 |
Future net cash flows | 28,370,000 | 28,050,000 | 33,111,000 |
Effect of 10% annual discounting | -4,209,000 | -5,787,000 | -9,649,000 |
Standardized measure of discounted cash flows | 24,161,000 | 22,263,000 | 23,462,000 |
Changes in the standardized measure of discounted future net cash flows: | ' | ' | ' |
Beginning of the year | 22,263,000 | 23,462,000 | 18,705,000 |
Sales of oil and gas, net of production costs | -8,498,000 | -6,161,000 | -4,516,000 |
Net changes in prices and production costs | 2,945,000 | -2,990,000 | 5,970,000 |
Extensions, discoveries, additions less related costs | 2,916,000 | 3,498,000 | 2,179,000 |
Development costs incurred | 1,035,000 | 1,657,000 | 2,101,000 |
Net changes in future development cost | 7,000 | 7,000 | -1,492,000 |
Revisions of previous quantity estimates | -946,000 | -1,742,000 | -1,243,000 |
Net change in purchase and sales of minerals in place | 1,200,000 | 1,051,000 | 581,000 |
Accretion of discount | 2,226,000 | 2,346,000 | 1,871,000 |
Net change in income taxes | 614,000 | 1,502,000 | -417,000 |
Other | 399,000 | -367,000 | -277,000 |
End of the year | $24,161,000 | $22,263,000 | $23,462,000 |
Supplemental_Reserve_Informati4
Supplemental Reserve Information (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental Reserve Information Details 3 | ' | ' | ' |
Allowance for doubtful accounts | $15,000 | $15,000 | $15,000 |