Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Apr. 16, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 000-18774 | ||
Entity Registrant Name | SPINDLETOP OIL & GAS CO. | ||
Entity Central Index Key | 0000867038 | ||
Entity Tax Identification Number | 75-2063001 | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Address, Address Line One | 12850 Spurling Rd. | ||
Entity Address, Address Line Two | Suite 200 | ||
Entity Address, City or Town | Dallas | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75230 | ||
City Area Code | (972) | ||
Local Phone Number | 644-2581 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | SPND | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,518,200 | ||
Entity Common Stock, Shares Outstanding | 6,739,943 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Name | Farmer, Fuqua & Huff, P.C. | ||
Auditor Location | Richardson, Texas | ||
Auditor Firm ID | 782 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 6,868,000 | $ 13,597,000 |
Restricted cash | 270,000 | 270,000 |
Accounts receivable | 2,090,000 | 2,200,000 |
Income tax receivable | 90,000 | 630,000 |
Total Current Assets | 9,318,000 | 16,697,000 |
Property and Equipment - at cost | ||
Oil and gas properties (full cost method) | 26,087,000 | 25,321,000 |
Rental equipment | 465,000 | 412,000 |
Gas gathering system | 115,000 | 115,000 |
Other property and equipment | 479,000 | 395,000 |
27,146,000 | 26,243,000 | |
Accumulated depreciation and amortization | (26,300,000) | (26,140,000) |
Total Property and Equipment | 846,000 | 103,000 |
Real Estate Property - at cost | ||
Land | 688,000 | 688,000 |
Commercial office building | 1,907,000 | 1,903,000 |
Accumulated depreciation | (1,232,000) | (1,163,000) |
Total Real Estate Property | 1,363,000 | 1,428,000 |
Other Assets | ||
Deferred Income Tax Asset | 40,000 | |
Other long-term investments | 16,575,000 | 9,575,000 |
Other | 4,000 | 4,000 |
Total Other Assets | 16,619,000 | 9,579,000 |
Total Assets | 28,146,000 | 27,807,000 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 6,542,000 | 6,859,000 |
Total Current Liabilities | 6,542,000 | 6,859,000 |
Noncurrent Liabilities | ||
Deferred Income Tax Payable | 81,000 | |
Asset retirement obligation | 4,414,000 | 3,654,000 |
Total Noncurrent Liabilities | 4,414,000 | 3,735,000 |
Total Liabilities | 10,956,000 | 10,594,000 |
Shareholders' Equity | ||
Common stock, $.01 par value, 100,000,000 shares authorized; 7,677,471 shares issued and 6,739,943 outstanding at December 31, 2023 and 6,750,318 outstanding at December 31, 2022. | 77,000 | 77,000 |
Additional paid-in capital | 943,000 | 943,000 |
Treasury stock, at cost | (1,919,000) | (1,889,000) |
Retained earnings | 18,089,000 | 18,082,000 |
Total Shareholders' Equity | 17,190,000 | 17,213,000 |
Total Liabilities and Shareholders' Equity | $ 28,146,000 | $ 27,807,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 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 | 6,739,943 | 6,750,318 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Oil and gas revenues | $ 4,502,000 | $ 7,775,000 | $ 5,466,000 |
Revenue from lease operations | 156,000 | 183,000 | 219,000 |
Gas gathering, compression, equipment rental | 120,000 | 89,000 | 99,000 |
Real estate rental income | 270,000 | 245,000 | 240,000 |
Miscellaneous revenue | 57,000 | 62,000 | 44,000 |
Total Revenues | 5,105,000 | 8,354,000 | 6,068,000 |
Expenses | |||
Lease operations | 1,469,000 | 2,120,000 | 1,207,000 |
Production taxes, gathering and marketing | 701,000 | 867,000 | 896,000 |
Pipeline and rental operations | 54,000 | 21,000 | 17,000 |
Real estate operations | 161,000 | 174,000 | 167,000 |
Depreciation and amortization | 229,000 | 74,000 | 121,000 |
ARO accretion expense | 509,000 | 2,014,000 | 572,000 |
General and administrative | 2,970,000 | 3,126,000 | 2,685,000 |
Total Expenses | 6,093,000 | 8,396,000 | 5,665,000 |
Income (Loss) from operations | (988,000) | (42,000) | 403,000 |
Other Revenue and Expense | |||
Interest income | 761,000 | 142,000 | 149,000 |
Debt forgiveness income | 403,000 | ||
Gain on sale of properties | 104,000 | 1,531,000 | |
Income (loss) before income tax | (123,000) | 1,631,000 | 955,000 |
Current income tax provision (benefit) | (9,000) | 570,000 | 24,000 |
Deferred income tax provision (benefit) | (121,000) | 392,000 | (106,000) |
Total income tax provision (benefit) | (130,000) | 962,000 | (82,000) |
Net Income (Loss) | $ 7,000 | $ 669,000 | $ 1,037,000 |
Earnings (Loss) per Share of Common Stock Basic and Diluted | $ 0.10 | $ 0.15 | |
Weighted Average Shares Outstanding Basic and Diluted | 6,745,059 | 6,753,386 | 6,755,318 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock, Common [Member] | Retained Earnings [Member] |
Beginning balance, value at Dec. 31, 2020 | $ 77,000 | $ 943,000 | $ (1,874,000) | $ 16,376,000 |
Shares, Issued at Dec. 31, 2020 | 7,677,471 | 922,153 | ||
Net Income | 1,037,000 | |||
Ending balance, value at Dec. 31, 2021 | $ 77,000 | 943,000 | $ 1,874,000 | 17,413,000 |
Shares, Issued at Dec. 31, 2021 | 7,677,471 | 922,153 | ||
Purchase of shares of Common Stock as Treasury Stock | $ (15,000) | |||
Purchase shares of Common Stock as Treasury Stock, shares | 5,000 | |||
Net Income | 669,000 | |||
Ending balance, value at Dec. 31, 2022 | $ 77,000 | 943,000 | $ 1,889,000 | 18,082,000 |
Shares, Issued at Dec. 31, 2022 | 7,677,471 | 927,153 | ||
Purchase of shares of Common Stock as Treasury Stock | $ (30,000) | |||
Purchase shares of Common Stock as Treasury Stock, shares | 10,375 | |||
Net Income | 7,000 | |||
Ending balance, value at Dec. 31, 2023 | $ 77,000 | $ 943,000 | $ 1,919,000 | $ 18,089,000 |
Shares, Issued at Dec. 31, 2023 | 7,677,471 | 937,528 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Parenthetical) - shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jul. 07, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Treasury Stock, Common [Member] | ||||
Purchase shares of Common Stock as Treasury Stock, shares | 30,000 | 15,500 | 10,375 | 5,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | |||
Net Income | $ 7,000 | $ 669,000 | $ 1,037,000 |
Reconciliation of net Income to net cash provided by operating activities | |||
Depreciation and amortization | 229,000 | 74,000 | 121,000 |
Accretion of asset retirement obligation | 509,000 | 2,014,000 | 572,000 |
Proceeds from sale of oil and gas properties | (104,000) | (1,531,000) | |
Changes in accounts receivable | 110,000 | 904,000 | (491,000) |
Changes in income tax receivable | 540,000 | (180,000) | (176,000) |
Changes in accounts payable and accrued liabilities | (317,000) | (742,000) | 1,887,000 |
Forgiveness of SBA paycheck Protection Loan | (403,000) | ||
Changes in deferred Income tax asset | (40,000) | 311,000 | (106,000) |
Changes in deferred Income tax payable | (81,000) | 81,000 | |
Net cash provided for operating activities | 853,000 | 1,600,000 | 2,441,000 |
Cash Flows from Investing Activities | |||
Capitalized acquisition, exploration and development | (573,000) | 703,000 | 542,000 |
Purchase of other property and equipment | (83,000) | (82,000) | (1,000) |
Changes in other long-term investments | (7,000,000) | (634,000) | (116,000) |
Proceeds from sale of oil and gas properties | 104,000 | 1,531,000 | |
Capitalized tenant improvements and broker fees | (279,000) | (1,000) | |
Net cash (used) for investing activities | (7,552,000) | 1,239,000 | 424,000 |
Cash Flows from Financing Activities | |||
Purchase of 10,375 and 5,000 shares of treasury stock | (30,000) | (15,000) | |
Proceeds from SBA Paycheck Protection Loan Program | 403,000 | ||
Net cash used for financing activities | (30,000) | (15,000) | 403,000 |
Increase (Decrease) in cash, cash equivalents, and restricted cash | (6,729,000) | 2,824,000 | 3,268,000 |
Cash, cash equivalents, and restricted cash at beginning of period | 13,867,000 | 11,043,000 | 7,775,000 |
Cash, cash equivalents, and restricted cash at end of period | $ 7,138,000 | $ 13,867,000 | $ 11,043,000 |
1. BASIS OF PRESENTATION AND OR
1. BASIS OF PRESENTATION AND ORGANIZATION | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
1. BASIS OF PRESENTATION AND ORGANIZATION | 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. 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 rentable square feet, of which the Company occupies approximately 10,273 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. |
2. SUMMARY OF SIGNIFICANT ACCOU
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
2. 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: 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. 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 unless such adjustment would significantly alter the relationship between capitalized costs and proved oil and gas reserves attributed to a cost center. For instance, a significant alteration would not ordinarily be expected to occur for sales involving less than 25% of the reserve quantities of a given cost center. Although expected to occur infrequently, a significant alteration of the relationship between capitalized costs and proved reserves also could occur for sales of less than 25 % of the reserve quantities if there were substantial economic differences between properties sold and those retained. Significant judgment is required to determine whether an adjustment to capitalized costs would result in a significant alteration. When it is determined that a gain or loss should be recognized on such a sale, total capitalized costs within the cost center are allocated between reserves sold and reserves retained. The allocation of capitalized costs should be made on the same basis used to compute amortization, unless there are substantial economic differences between properties sold and those retained, in which case capitalized costs should be allocated on the basis of the relative fair values of the properties. Such sales occurred during the years ended December 31, 2023, and December 31, 2022, the Company sold a property for which there were no reserves included in the proved oil and gas reserves for approximately $104,000 and $1,531,000 respectively. At the recognition of the sales, the net unamortized full cost pool was approximately $545.000 and $319,000 respectively. Therefore, an adjustment to the capitalized costs would result in a significant alteration between the properties sold and those retained. As a result, the Company recognized a gain on this sale. 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 building 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 2023, 2022, or 2021 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 periods ending December 31. 2023 2022 Carrying amount of asset retirement obligation $ 3,654,000 $ 1,925,000 Liabilities added 565,000 — Liabilities divested or settled (314,000 ) (285,000 ) Current period accretion expenses 509,000 2,014,000 Carrying amount as of December 31, $ 4,414,000 $ 3,654,000 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 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 been 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 In February 2016, the FASB issued Accounting Standards Update No. 2016-02: Leases (Topic 842). The FASB issued this Update to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The accounting for Lessees relates primarily to finance leases and for operating leases. The Company does not currently have any finance or operating leases as a lessee. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. Under GAAP accounting, lessors should continue to recognize lease income for those leases on a generally straight-line basis over the lease term. The Company does lease space in its commercial office building to third-party tenants under rental lease agreements as the lessor and recognizes lease income from tenants on a straight-line basis. The amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. The Company does not anticipate that this new guidance will have a material impact on the Company’s consolidated financial position or results of operations for the periods presented. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers Sales of oil, condensate, natural gas and natural gas liquids (“NGLs”) are recognized at the time control of the products are transferred to the customer. Based upon the Company’s current purchasers past experience and expertise in the market, collectability is probable, and there have not been payment issues with the Company’s purchasers over the past year or currently. Generally, the Company’s gas processing and purchase agreements indicate that the processors take control of the gas at the inlet of the plant and that control of residue gas is returned to the Company at the outlet of the plant. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sales of NGLs. The Company delivers oil and condensate to the purchaser at a contractually agreed-upon delivery point at which the purchaser takes custody, title and risk of loss of the product. When sales volumes exceed the Company’s entitled share, a production imbalance occurs. If production imbalance exceeds the Company’s share of the remaining estimated proved natural gas reserves for a given property, the Company records a liability. Production imbalances have not had and currently do not have a material impact on the financial statements, and this did not change with the adoption of ASC 606. Generally, the Company’s contracts have an initial term of one year or longer but continue month to month unless written notification of termination in a specified time period is provided by either party to the contract. The Company has used the practical expedient in ASC 606 which states that the Company is not required to disclose that transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligation is not required. Contract Balances The Company receives purchaser statements from the majority of its customers but there are a few contracts where the Company prepares the invoice. Payment is unconditional upon receipt of the statement or invoice. Accordingly, the Company’s product sales contracts do not give rise to contract assets or liabilities under ASC 606. The majority of the Company’s contract pricing provisions are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality of the oil or natural gas, and supply and demand conditions. The price of these commodities fluctuates to remain competitive with supply. Prior Period Performance Obligations The Company records revenue in the month production is delivered to the purchaser. Settlement statements may not be received for 30 to 90 days after the date production is delivered, and therefore the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. Differences between the Company’s estimates and the actual amounts received for product sales are generally recorded in the following month that payment is received. Any differences between the Company’s revenue estimates and actual revenue received historically have not been significant. The Company has internal controls in place for its revenue estimation accrual process. Impact of Adoption of ASC 606 The Company has completed its review of its primary oil and natural gas marketing agreements in order to assess the impact of adoption, and it has assessed that adoption of this standard will not have a material impact on the Company's financial statements because revenue will continue to be recognized as production is delivered. The Company adopted this standard in the first quarter of 2018 utilizing the modified retrospective method. In August 2016, the FASB issued Accounting Standards Update No 2016-15: Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. The FASB issued this Accounting Standards Update to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for public entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Currently, there are no other new accounting pronouncements that were issued to be effective in 2023 or subsequent thereto that would have a material impact on the Company’s financial reporting. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation on the consolidated balance sheet, consolidated statement of operations, and consolidated statements of cash flows. Subsequent Events The Company has evaluated subsequent events through the issuance date of April 16, 2024. |
3. ACCOUNTS RECEIVABLE
3. ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
3. ACCOUNTS RECEIVABLE | 3. ACCOUNTS RECEIVABLE December 31, 2023 2022 Trade $ 18,000 $ 151,000 Accrued receivable 2,087,000 2,064,000 2,105,000 2,215,000 Less: Allowance for losses (15,000 ) (15,000 ) $ 2,090,000 $ 2,200,000 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. |
4. ACCOUNTS PAYABLE
4. ACCOUNTS PAYABLE | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
4. ACCOUNTS PAYABLE | 4. ACCOUNTS PAYABLE December 31, 2023 2022 Trade payables $ 1,834,000 $ 1,983,000 Production proceeds payable 3,371,000 3,541,000 Prepaid drilling costs 1,337,000 1,335,000 $ 6,542,000 $ 6,859,000 |
5. RELATED PARTY TRANSACTIONS
5. RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
5. RELATED PARTY TRANSACTIONS | 5. RELATED PARTY TRANSACTIONS Certain officers, directors, and related parties including entities controlled by officers of the Company, engage in business transactions with the Company which were not the result of arms-length negotiations between independent parties. Accounts receivable and accounts payable contain $78,000 $215,000 On October 1, 2008, Giant entered into an Administrative Services Agreement with the Company whereby Giant pays the Company $250 1,500.00 $500.00 $350.00 During the year ended December 31, 2022, the Company sold five wells to a related party for a sales price of $563,000 During the fourth quarter of 2022, the Company participated in the drilling of the Smead Heirs #2 well located in Gregg County, Texas, operated by Giant NRG Co. LP, a related entity. |
6. COMMON STOCK
6. COMMON STOCK | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
6. COMMON STOCK | 6. 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. During the three-year period ending December 31, 2023, the Company did not issue any compensation related to share-based payments. The Company has not approved nor authorized any standing repurchase program for its common stock. During the three-year period ending December 31, 2023, the Company made the following repurchase of its common stock: Effective July 7, 2022, the Company repurchased 5,000 $15,500 $3.10 Effective June 30, 2023, the Company repurchased 10,375 $30,000 $2.89 |
7. INCOME TAXES
7. INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
7. INCOME TAXES | 7. 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. Income tax differed from the amounts computed by applying an effective United States federal income tax rate of 21% 2023 2022 2021 Computed expected tax expense (benefit) $ (48,000 ) $ 21,000 $ 201,000 Miscellaneous timing differences related to book and tax depletion differences Miscellaneous timing differences related to book and tax depletion differences 17,000 153,000 (308,000 ) NOL Carryforward — — (148,000 ) Gain on sale of oil and gas properties' 22,000 396,000 279,000 Correction of prior year estimate — — — Expected Federal income tax expense (benefit) $ (9,000 ) $ 570,000 $ 24,000 Income tax expense (benefit) for the years ended December 31, 2023, 2022 and 2021 2023 2022 2021 Federal income taxes (benefit) $ (9,000 ) $ 570,000 $ 24,000 State income taxes — — — Current income tax provision (benefit) $ (9,000 ) $ 570,000 $ 24,000 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, 2023 and 2022 consisted of the following: On December 22, 2017, the U.S. Congress enacted the Tax Cuts and Jobs Act (the “Act”) which made significant changes to U.S. federal income tax law, including lowering the federal statutory corporate income tax rate to 21% beginning January 1, 2018. The income tax effects of changes in tax laws are recognized in the period when enacted. The Company's estimate does not reflect effects of any state tax law changes and uncertainties regarding interpretations that may arise as a result of federal tax reform. December 31, 2023 2022 Deferred tax assets Depletion and amortization 273,000 — Depreciation 33,000 — Total deferred tax assets 306,000 — Deferred tax liabilities Intangible drilling costs (266,000 ) (56,000 ) Depreciation — (25,000 ) Total deferred tax liability (266,000 ) (81,000 ) Net deferred income tax asset (payable) $ 40,000 $ (81,000 ) |
8. CASH FLOW INFORMATION
8. CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
8. CASH FLOW INFORMATION | 8. 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: 2023 2022 2021 Net cash provided by operating activities includes cash payments for the following: Income taxes $ — $ 750,000 $ — Excluded from the Consolidated Statements of Cash Flows were the effects of certain non-cash investing and financing activities, as follows: 2023 2022 2021 Addition (Reduction) of oil & gas properties by recognitions of Addition (Reduction) of oil & gas properties by recognitions of $ 251,000 $ (285,000 ) $ (113,000 ) $ 251,000 $ (285,000 ) $ (113,000 ) 2023 2022 2021 Proceeds from sales of oil and gas properties $ 104,000 $ 1,531,000 $ — Less: Qualified Intermediary accounts receivable — — — $ 104,000 $ 1,531,000 $ — |
9. EARNINGS PER SHARE
9. EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
9. EARNINGS PER SHARE | 9. 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. |
10. CONCENTRATIONS OF CREDIT RI
10. CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
10. CONCENTRATIONS OF CREDIT RISK | 10. CONCENTRATIONS OF CREDIT RISK Deposits held in non-interest-bearing transaction accounts at the same institution 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 As of December 31, 2023, the Company had approximately $ 3,461,000 $1,624,000 $1,354,000 877,000 $322,000 $16,575,000 $2,826,000 Most of the Company's business activity is located in Texas. Accounts receivable as of December 31, 2023, and 2022, 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. |
11. FINANCIAL INSTRUMENTS
11. FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
11. FINANCIAL INSTRUMENTS | 11. FINANCIAL INSTRUMENTS The estimated fair value of the Company's financial instruments at December 31, 2023 and 2022 follows: 2023 2022 Carrying Fair Carrying Fair Cash $ 6,868,000 $ 6,868,000 $ 13,597,000 $ 13,597,000 Restricted cash 270,000 270,000 270,000 270,000 Long-term investments 16,575,000 16,575,000 9,575,000 9,575,000 Accounts receivable 2,090,000 2,090,000 2,200,000 2,200,000 The fair value amounts for each of the financial instruments listed above approximate carrying amounts due to the short maturities of these instruments. |
12. COMMITMENTS AND CONTINGENCI
12. COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
12. COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES 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. As of December 31, 2023, 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 $10,000 $10,000 The Company has six letters of credit from a bank issued for the benefit of various state regulatory agencies in Texas, New Mexico, Oklahoma, the U.S. Department of the Interior Bureau of Indian Affairs, and Louisiana, ranging in amounts from $25,000 $100,000 $270,000 The Company has eight additional letters of credit from one bank issued for the benefit of various state agencies in Texas, New Mexico, and Oklahoma ranging from $25,000 $300,000 $600,000 On July 23, 2020, a subsidiary of the Company received notice of a lawsuit filed in Louisiana against the Company’s subsidiary and numerous other oil and gas companies alleging a pollution claim for properties operated by the defendants in Louisiana, and the Company’s subsidiary filed an answer. The Plaintiffs filed a First Supplemental and Amending Petition for Damages on January 21, 2021. The litigation is currently in the discovery phase. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of contingencies for litigation. The Company will continue to defend its subsidiary vigorously in this matter. |
13. ADDITIONAL OPERATIONS AND B
13. ADDITIONAL OPERATIONS AND BALANCE SHEET INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
13. ADDITIONAL OPERATIONS AND BALANCE SHEET INFORMATION | 13. ADDITIONAL OPERATIONS AND BALANCE SHEET INFORMATION Certain information about the Company's operations for the years ended December 31, 2023, 2022 and 2021 follows. Dependence on Purchasers and Operators The following is a summary of a partial list of 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, 2023. Purchaser / Operator 2023 2022 2021 Energy Transfer Crude Marketing, LLC 17 % 14 % 0 % Enlink Gas Marketing, LTD. 11 % 9 % 14 % Scissor Tail Exploration and Production 8 % 0 % 0 % Bedrock Energy Partners 7 % 10 % 9 % Giant Energy Co., LP 6 % 12 % 0 % Pruet Production Co. 5 % 5 % 4 % BKV Midstream 4 % 4 % 0 % Hunt Crude Oil Supply 4 % 3 % 2 % Territory Resources, LLC 4 % 0 % 0 % Trailblazer Energy, Formerly ETX Energy, LLC 4 % 2 % 1 % Eastex Crude Company 4 % 4 % 4 % ETC Texas Pipeline, LTD 3 % 4 % 4 % Targa Midstream Services, LLC 3 % 0 % 11 % Producer's Midstream 2 % 2 % 0 % Oasis Transportation & Marketing Group 2 % 2 % 1 % Bedrock Production LLC 2 % 2 % 2 % Javelin Oil & Gas 1 % 3 % 0 % Phillips 66 1 % 2 % 2 % Land and Natural Resource Development 1 % 1 % 1 % Empire Pipeline Corp. 1 % 2 % 2 % Montare Operating, LTD 1 % 0 % 0 % Edinger Engineering Inc. 1 % 1 % 1 % Callon Petroleum Operating 1 % 0 % 0 % DCP Midstream, LP 1 % 1 % 1 % IACX Roswell LLC 0 % 2 % 3 % Webb Energy Resources, Inc. 0 % 1 % 1 % Barnett Gathering, LP 0 % 7 % 6 % Midcoast Energy Partners LP 0 % 1 % 4 % Eagle Ridge Operating, Inc 0 % 1 % 1 % OXY USA, Inc. 0 % 1 % 1 % FDL Operating LLC 0 % 0 % 2 % Sunoco Partners Marketing 0 % 0 % 13 % Peveler Pipeline, LP 0 % 0 % 6 % Valero Energy Corporation 0 % 0 % 1 % Purchaser / Operator Oil and natural gas production is sold to many different purchasers/operators under market sensitive, short-term contracts. Except as set forth above, there are no other purchasers/operators of the Company’s oil and natural gas production that individually accounted for more than one percent (1%) of the Company's oil and natural gas revenues during the three years ended December 31, 2023. 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, 2023 2022 2021 Capitalized costs relating to oil and gas producing activities: producing activities: Unproved properties $ 1,876,000 $ 1,876,000 $ 1,876,000 Proved properties 23,973,000 23,445,000 24,429,000 Total capitalized costs 25,849,000 25,321,000 26,305,000 Accumulated amortization (25,438,000 ) (25,304,000 ) (25,304,000 ) Total capitalized costs, net $ 411,000 17,000 1,001,000 Year Ended December 31, 2023 2022 2021 Costs incurred in oil and gas property acquisitions, exploration and development: acquisitions, exploration and development: Acquisition of properties $ — $ — $ 19,000 Development costs 565,000 214,000 410,000 Total costs incurred $ 565,000 $ 214,000 $ 429,000 Year Ended December 31, 2023 2022 2021 Results of operations from producing activities: Sales of oil and gas $ 4,502,000 $ 7,775,000 $ 5,466,000 Production costs 2,170,000 2,987,000 2,103,000 Amortization of oil and gas properties 134,000 — 63,000 Total production costs 2,304,000 2,987,000 2,166,000 Total net revenue $ 2,198,000 $ 4,788,000 $ 3,300,000 Year Ended December 31, 2023 2022 2021 Sales price per equivalent Mcf $ 5.56 $ 8.97 $ 5.58 Production costs per equivalent Mcf $ 2.69 $ 3.45 $ 2.15 Amortization per equivalent Mcf $ 0.20 $ — $ 0.06 Year Ended December 31, 2023 2022 2021 Results of operations from gas gathering and equipment rental activities: and equipment rental activities: Revenue $ 120,000 $ 89,000 $ 99,000 Operating expenses 54,000 21,000 17,000 Depreciation 4,000 1,000 1,000 Total costs 58,000 22,000 18,000 Total net revenue $ 62,000 $ 67,000 $ 81,000 |
14. BUSINESS SEGMENTS
14. BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
14. BUSINESS SEGMENTS | 14. 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 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, 2023: Year Ended December 31, 2023 2022 2021 Revenues: (1) Oil and gas exploration, production and operations $ 4,658,000 $ 7,958,000 $ 5,685,000 and operations Gas gathering, compression and equipment rental 120,000 89,000 99,000 equipment rental Real estate rental 270,000 245,000 240,000 Revenues $ 5,048,000 $ 8,292,000 $ 6,024,000 Year Ended December 31, 2023 2022 2021 Depreciation, depletion, and amortization expense: Oil and gas exploration, production and operations $ 155,000 $ 17,000 $ 65,000 and operations Impairment of oil and gas assets — — — Gas gathering, compression and equipment rental 4,000 1,000 1,000 equipment rental Real estate rental 70,000 56,000 55,000 Depreciation, depletion, and amortization expense $ 229,000 $ 74,000 $ 121,000 Year Ended December 31, 2023 2022 2021 Income (loss) from operations: Oil and gas exploration, production and operations $ 1,824,000 $ 2,940,000 $ 2,945,000 and operations Gas gathering, compression and equipment rental 62,000 67,000 81,000 equipment rental Real estate rental 39,000 15,000 18,000 1,925,000 3,022,000 3,044,000 Corporate and other (2) (1,918,000 ) (2,353,000 ) (2,007,000 ) Consolidated net income (loss) $ 7,000 $ 669,000 $ 1,037,000 Year Ended December 31, 2023 2022 2021 Identifiable assets net of DDA: Oil and gas exploration, production Oil and gas exploration, production $ 777,000 $ 83,000 $ 1,001,000 Gas gathering, compression and Gas gathering, compression and 53,000 4,000 5,000 Real estate rental 1,363,000 1,428,000 1,210,000 2,193,000 1,515,000 2,216,000 Corporate and other (3) 25,953,000 26,292,000 23,869,000 Consolidated total assets $ 28,146,000 $ 27,807,000 $ 26,085,000 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. |
15. SUPPLEMENTARY INCOME STATEM
15. SUPPLEMENTARY INCOME STATEMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Supplementary Income Statement Information | |
15. SUPPLEMENTARY INCOME STATEMENT INFORMATION | 15. SUPPLEMENTARY INCOME STATEMENT INFORMATION The following items were charged directly to expense: Year Ended December 31, 2023 2022 2021 Maintenance and repairs $ 54,000 $ 18,000 $ 12,000 Production taxes 208,000 451,000 269,000 Taxes, other than payroll and income taxes 20,000 (45,000 ) 7,000 |
16. QUARTERLY DATA (UNAUDITED)
16. QUARTERLY DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
16. QUARTERLY DATA (UNAUDITED) | 16. QUARTERLY DATA (UNAUDITED) The table below reflects selected quarterly information for the years ended December 31, 2023, 2022 and 2021. QUARTERLY DATA (UNAUDITED) Year Ended December 31, 2023 First Second Third Fourth Revenue $ 1,167,000 $ 1,054,000 $ 1,674,000 1,210,000 Expense (1,514,000 ) (1,125,000 ) (1,273,000 ) (2,181,000 ) Operating income (loss) (347,000 ) (71,000 ) 401,000 (971,000 ) Other revenues 229,000 199,000 209,000 228,000 Net income (loss) (118,000 ) 128,000 610,000 (743,000 ) Current tax (provision) benefit — (17,000 ) (44,000 ) 70,000 Deferred tax (provision) benefit 21,000 14,000 11,000 75,000 Net income (loss) $ (97,000 ) $ 125,000 $ 577,000 $ (598,000 ) Earnings (loss) per share of common stock Earnings (loss) per share of common stock $ (0.01 ) $ 0.02 $ 0.09 $ (0.10 ) Year Ended December 31, 2022 First Second Third Fourth Revenue $ 1,824,000 $ 2,675,000 $ 2,012,000 $ 1,843,000 Expense (1,215,000 ) (1,330,000 ) (1,386,000 ) (4,465,000 ) Operating income (loss) 609,000 1,345,000 626,000 (2,622,000 ) Other revenues — — 1,531,000 142,000 Net income (loss) 609,000 1,345,000 2,157,000 (2,480,000 ) Current tax (provision) benefit (60,000 ) (176,000 ) (416,000 ) 82,000 Deferred tax (provision) benefit (40,000 ) (77,000 ) (48,000 ) (227,000 ) Net income (loss) $ 509,000 $ 1,092,000 $ 1,693,000 $ (2,625,000 ) Earnings (loss) per share of common stock Earnings (loss) per share of common stock $ 0.08 $ 0.16 $ 0.25 $ (0.39 ) Year Ended December 31, 2021 First Second Third Fourth Revenue $ 1,099,000 $ 1,227,000 $ 1,806,000 $ 1,936,000 Expense (978,000 ) (1,230,000 ) (992,000 ) $ (2,465,000 ) Operating income (loss) 121,000 (3,000 ) 814,000 (529,000 ) Other revenues — — — 552,000 Net income (loss) 121,000 (3,000 ) 814,000 23,000 Current tax (provision) benefit (17,000 ) (5,000 ) (229,000 ) 227,000 Deferred tax (provision) benefit (7,000 ) 2,000 (182,000 ) 293,000 Net income (loss) $ 97,000 $ (6,000 ) $ 403,000 $ 543,000 Earnings (loss) per share of common stock Earnings (loss) per share of common stock $ (0.01 ) $ — $ 0.06 $ 0.08 |
17. SUPPLEMENTAL RESERVE INFORM
17. SUPPLEMENTAL RESERVE INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Reserve Information | |
17. SUPPLEMENTAL RESERVE INFORMATION (UNAUDITED) | 17. SUPPLEMENTAL RESERVE INFORMATION (UNAUDITED) The Company’s net proved oil and natural gas reserves as of December 31, 2023, 2022, and 2021, have been estimated by Company personnel. All estimates are in accordance with 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 ensure 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 2023, 2022, and 2021 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 Balance December 31, 2020 144,700 2,912,690 Sales of reserves in place (1,733 ) (193,340 ) Acquired properties 1,603 546 Extensions and discoveries 16,202 833 Revisions of previous estimates * 59,522 3,241,463 Production (33,604 ) (778,462 ) Balance December 31, 2021 186,690 5,183,730 Sales of reserves in place — (49,820 ) Acquired properties 702 — Extensions and discoveries 1,041 1,231 Revisions of previous estimates * 5,105 (356,195 ) Production (35,698 ) (652,786 ) Balance December 31, 2022 157,840 4,126,160 Sales of reserves in place — — Acquired properties 554 — Extensions and discoveries 6,920 37,550 Revisions of previous estimates * 8,078 (1,907,371 ) Production (33,522 ) (608,499 ) Balance December 31, 2023 139,870 1,647,840 * May also include divestitures, not only changes in engineering. Proved Developed Reserves: Balance December 31, 2021 186,690 5,183,730 Balance December 31, 2022 157,840 4,126,160 Balance December 31, 2023 139,870 1,647,830 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 2023, 2022, and 2021, 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. 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 18 operated wells and 56 non-operated wells 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. Year Ended December 31, 2023 2022 2021 Future production revenue $ 15,188,000 $ 38,697,000 $ 32,392,000 Future development costs — — — Future production costs (8,294,000 ) (18,293,000 ) (15,690,000 ) Future net cash flow before Federal income taxes 6,894,000 20,404,000 16,702,000 Future income taxes (1,034,000 ) (3,061,000 ) (2,505,000 ) Future net cash flows 5,860,000 17,343,000 14,197,000 Effect of 10% annual discounting (1,041,000 ) (3,878,000 ) (3,719,000 ) Standardized measure of discounted cash flows $ 4,819,000 $ 13,465,000 $ 10,478,000 Changes in the standardized measure of discounted future net cash flows: Year Ended December 31, 2023 2022 2021 Beginning of the year $ 13,465,000 $ 10,478,000 $ 2,567,000 Sales of oil and gas, net of production costs (2,219,000 ) (4,556,000 ) (3,108,000 ) Net changes in prices and production costs (6,996,000 ) 5,983,000 7,762,000 Extensions, discoveries, additions less related costs 330,000 109,000 574,000 Development costs incurred 538,000 153,000 429,000 Revisions of previous quantity estimates (885,000 ) 3,637,000 1,896,000 Net change in purchase and sales of minerals in place 1,000 (68,000 ) (24,000 ) Accretion of discount 1,347,000 1,048,000 257,000 Net change in income taxes (76,000 ) (577,000 ) (549,000 ) Other (686,000 ) (2,742,000 ) 674,000 End of year $ 4,819,000 $ 13,465,000 $ 10,478,000 SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED DECEMBER 31, 2023, 2022, AND 2021 SCHEDULE I I Balance Costs & Deductions Ending Allowance for doubtful accounts December 31, 2023 $ 15,000 $ — $ — $ 15,000 December 31, 2022 $ 15,000 $ — $ — $ 15,000 December 31, 2021 $ 15,000 $ — $ — $ 15,000 SCHEDULE III SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES REAL ESTATE AND ACCUMULATED DEPRECIATION Initial Cost to Corporation Total Cost Description Encumbrances Land Buildings Subsequent Two story multi-tenant garden office building with sub-grade parking garage located in Dallas, Texas (b) $ 688,000 $ 1,298,000 $ 609,000 Gross amounts at which carried at close of year Land Buildings Total Accumulated Life on which Date $ 688,000 $1,907,000 $ 2,595,000 $ 1,232,000 (a) 12/27/2004 Notes to Schedule III (a) See Footnote 2 to the Financial Statements outlining depreciation methods and lives. (b) None SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION Schedule IIIa (c) The reconciliation for investments in real estate and accumulated depreciation for the years ended December 31, 2023 are as follows Investments in Accumulated Balance, December 31, 2005 $ 1,986,000 $ 49,000 Acquisitions 210,000 Depreciation expense 71,000 Balance, December 31, 2006 2,196,000 120,000 Acquisitions 34,000 Depreciation expense 84,000 Balance, December 31, 2007 2,230,000 204,000 Acquisitions 38,000 Depreciation expense 96,000 Balance, December 31, 2008 2,268,000 300,000 Acquisitions Depreciation expense 100,000 Balance, December 31, 2009 2,268,000 400,000 Acquisitions Depreciation expense 101,000 Balance, December 31, 2010 2,268,000 501,000 Acquisitions Depreciation expense 100,000 Balance, December 31, 2011 2,268,000 601,000 Acquisitions Depreciation expense 51,000 Balance, December 31, 2012 2,268,000 652,000 Acquisitions Depreciation expense 52,000 Balance, December 31, 2013 2,268,000 704,000 Acquisitions Depreciation expense 52,000 Balance, December 31, 2014 2,268,000 756,000 Acquisitions Depreciation expense 47,000 Balance, December 31, 2015 2,268,000 803,000 Acquisitions Depreciation expense 47,000 Balance, December 31, 2016 2,268,000 850,000 Acquisitions Depreciation expense 47,000 Balance, December 31, 2017 2,268,000 897,000 Acquisitions Depreciation expense 48,000 Balance, December 31, 2018 2,268,000 945,000 Acquisitions Depreciation expense 47,000 Balance, December 31, 2019 2,268,000 992,000 Acquisitions 44,000 Depreciation expense 55,000 Balance, December 31, 2020 2,312,000 1,047,000 Acquisitions Depreciation expense 55,000 Balance, December 31, 2021 2,312,000 1,102,000 Acquisitions 279,000 Depreciation expense 61,000 Balance, December 31, 2022 2,591,000 1,163,000 Acquisitions 4,000 Depreciation expense 69,000 Balance, December 31, 2023 2,595,000 1,232,000 |
1. BASIS OF PRESENTATION AND _2
1. BASIS OF PRESENTATION AND ORGANIZATION (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Merger and Basis of Presentation | 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 | 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. 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 rentable square feet, of which the Company occupies approximately 10,273 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. |
2. SUMMARY OF SIGNIFICANT ACC_2
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
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. 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 unless such adjustment would significantly alter the relationship between capitalized costs and proved oil and gas reserves attributed to a cost center. For instance, a significant alteration would not ordinarily be expected to occur for sales involving less than 25% of the reserve quantities of a given cost center. Although expected to occur infrequently, a significant alteration of the relationship between capitalized costs and proved reserves also could occur for sales of less than 25 % of the reserve quantities if there were substantial economic differences between properties sold and those retained. Significant judgment is required to determine whether an adjustment to capitalized costs would result in a significant alteration. When it is determined that a gain or loss should be recognized on such a sale, total capitalized costs within the cost center are allocated between reserves sold and reserves retained. The allocation of capitalized costs should be made on the same basis used to compute amortization, unless there are substantial economic differences between properties sold and those retained, in which case capitalized costs should be allocated on the basis of the relative fair values of the properties. Such sales occurred during the years ended December 31, 2023, and December 31, 2022, the Company sold a property for which there were no reserves included in the proved oil and gas reserves for approximately $104,000 and $1,531,000 respectively. At the recognition of the sales, the net unamortized full cost pool was approximately $545.000 and $319,000 respectively. Therefore, an adjustment to the capitalized costs would result in a significant alteration between the properties sold and those retained. As a result, the Company recognized a gain on this sale. |
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 building 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 2023, 2022, or 2021 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 periods ending December 31. 2023 2022 Carrying amount of asset retirement obligation $ 3,654,000 $ 1,925,000 Liabilities added 565,000 — Liabilities divested or settled (314,000 ) (285,000 ) Current period accretion expenses 509,000 2,014,000 Carrying amount as of December 31, $ 4,414,000 $ 3,654,000 |
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 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 been 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 In February 2016, the FASB issued Accounting Standards Update No. 2016-02: Leases (Topic 842). The FASB issued this Update to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The accounting for Lessees relates primarily to finance leases and for operating leases. The Company does not currently have any finance or operating leases as a lessee. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. Under GAAP accounting, lessors should continue to recognize lease income for those leases on a generally straight-line basis over the lease term. The Company does lease space in its commercial office building to third-party tenants under rental lease agreements as the lessor and recognizes lease income from tenants on a straight-line basis. The amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. The Company does not anticipate that this new guidance will have a material impact on the Company’s consolidated financial position or results of operations for the periods presented. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers Sales of oil, condensate, natural gas and natural gas liquids (“NGLs”) are recognized at the time control of the products are transferred to the customer. Based upon the Company’s current purchasers past experience and expertise in the market, collectability is probable, and there have not been payment issues with the Company’s purchasers over the past year or currently. Generally, the Company’s gas processing and purchase agreements indicate that the processors take control of the gas at the inlet of the plant and that control of residue gas is returned to the Company at the outlet of the plant. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sales of NGLs. The Company delivers oil and condensate to the purchaser at a contractually agreed-upon delivery point at which the purchaser takes custody, title and risk of loss of the product. When sales volumes exceed the Company’s entitled share, a production imbalance occurs. If production imbalance exceeds the Company’s share of the remaining estimated proved natural gas reserves for a given property, the Company records a liability. Production imbalances have not had and currently do not have a material impact on the financial statements, and this did not change with the adoption of ASC 606. Generally, the Company’s contracts have an initial term of one year or longer but continue month to month unless written notification of termination in a specified time period is provided by either party to the contract. The Company has used the practical expedient in ASC 606 which states that the Company is not required to disclose that transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligation is not required. Contract Balances The Company receives purchaser statements from the majority of its customers but there are a few contracts where the Company prepares the invoice. Payment is unconditional upon receipt of the statement or invoice. Accordingly, the Company’s product sales contracts do not give rise to contract assets or liabilities under ASC 606. The majority of the Company’s contract pricing provisions are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality of the oil or natural gas, and supply and demand conditions. The price of these commodities fluctuates to remain competitive with supply. Prior Period Performance Obligations The Company records revenue in the month production is delivered to the purchaser. Settlement statements may not be received for 30 to 90 days after the date production is delivered, and therefore the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. Differences between the Company’s estimates and the actual amounts received for product sales are generally recorded in the following month that payment is received. Any differences between the Company’s revenue estimates and actual revenue received historically have not been significant. The Company has internal controls in place for its revenue estimation accrual process. Impact of Adoption of ASC 606 The Company has completed its review of its primary oil and natural gas marketing agreements in order to assess the impact of adoption, and it has assessed that adoption of this standard will not have a material impact on the Company's financial statements because revenue will continue to be recognized as production is delivered. The Company adopted this standard in the first quarter of 2018 utilizing the modified retrospective method. In August 2016, the FASB issued Accounting Standards Update No 2016-15: Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. The FASB issued this Accounting Standards Update to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for public entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Currently, there are no other new accounting pronouncements that were issued to be effective in 2023 or subsequent thereto that would have a material impact on the Company’s financial reporting. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation on the consolidated balance sheet, consolidated statement of operations, and consolidated statements of cash flows. |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events through the issuance date of April 16, 2024. |
2. SUMMARY OF SIGNIFICANT ACC_3
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies - Asset Retirement Obligation | 2023 2022 Carrying amount of asset retirement obligation $ 3,654,000 $ 1,925,000 Liabilities added 565,000 — Liabilities divested or settled (314,000 ) (285,000 ) Current period accretion expenses 509,000 2,014,000 Carrying amount as of December 31, $ 4,414,000 $ 3,654,000 |
3. ACCOUNTS RECEIVABLE (Tables)
3. ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Account Receivable | December 31, 2023 2022 Trade $ 18,000 $ 151,000 Accrued receivable 2,087,000 2,064,000 2,105,000 2,215,000 Less: Allowance for losses (15,000 ) (15,000 ) $ 2,090,000 $ 2,200,000 |
4. ACCOUNTS PAYABLE (Tables)
4. ACCOUNTS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable - Accounts Payable | December 31, 2023 2022 Trade payables $ 1,834,000 $ 1,983,000 Production proceeds payable 3,371,000 3,541,000 Prepaid drilling costs 1,337,000 1,335,000 $ 6,542,000 $ 6,859,000 |
7. INCOME TAXES (Tables)
7. INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes - Income Tax Expense (Benefit) | 2023 2022 2021 Computed expected tax expense (benefit) $ (48,000 ) $ 21,000 $ 201,000 Miscellaneous timing differences related to book and tax depletion differences Miscellaneous timing differences related to book and tax depletion differences 17,000 153,000 (308,000 ) NOL Carryforward — — (148,000 ) Gain on sale of oil and gas properties' 22,000 396,000 279,000 Correction of prior year estimate — — — Expected Federal income tax expense (benefit) $ (9,000 ) $ 570,000 $ 24,000 |
Income Taxes - Deferred Tax | December 31, 2023 2022 Deferred tax assets Depletion and amortization 273,000 — Depreciation 33,000 — Total deferred tax assets 306,000 — Deferred tax liabilities Intangible drilling costs (266,000 ) (56,000 ) Depreciation — (25,000 ) Total deferred tax liability (266,000 ) (81,000 ) Net deferred income tax asset (payable) $ 40,000 $ (81,000 ) |
8. CASH FLOW INFORMATION (Table
8. CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information - Cash Flow | 2023 2022 2021 Net cash provided by operating activities includes cash payments for the following: Income taxes $ — $ 750,000 $ — |
11. FINANCIAL INSTRUMENTS (Tabl
11. FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments - Financial Instruments | 2023 2022 Carrying Fair Carrying Fair Cash $ 6,868,000 $ 6,868,000 $ 13,597,000 $ 13,597,000 Restricted cash 270,000 270,000 270,000 270,000 Long-term investments 16,575,000 16,575,000 9,575,000 9,575,000 Accounts receivable 2,090,000 2,090,000 2,200,000 2,200,000 |
13. ADDITIONAL OPERATIONS AND_2
13. ADDITIONAL OPERATIONS AND BALANCE SHEET INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Operations and Balance Sheet Information - Significant purchasers / operators | Purchaser / Operator 2023 2022 2021 Energy Transfer Crude Marketing, LLC 17 % 14 % 0 % Enlink Gas Marketing, LTD. 11 % 9 % 14 % Scissor Tail Exploration and Production 8 % 0 % 0 % Bedrock Energy Partners 7 % 10 % 9 % Giant Energy Co., LP 6 % 12 % 0 % Pruet Production Co. 5 % 5 % 4 % BKV Midstream 4 % 4 % 0 % Hunt Crude Oil Supply 4 % 3 % 2 % Territory Resources, LLC 4 % 0 % 0 % Trailblazer Energy, Formerly ETX Energy, LLC 4 % 2 % 1 % Eastex Crude Company 4 % 4 % 4 % ETC Texas Pipeline, LTD 3 % 4 % 4 % Targa Midstream Services, LLC 3 % 0 % 11 % Producer's Midstream 2 % 2 % 0 % Oasis Transportation & Marketing Group 2 % 2 % 1 % Bedrock Production LLC 2 % 2 % 2 % Javelin Oil & Gas 1 % 3 % 0 % Phillips 66 1 % 2 % 2 % Land and Natural Resource Development 1 % 1 % 1 % Empire Pipeline Corp. 1 % 2 % 2 % Montare Operating, LTD 1 % 0 % 0 % Edinger Engineering Inc. 1 % 1 % 1 % Callon Petroleum Operating 1 % 0 % 0 % DCP Midstream, LP 1 % 1 % 1 % IACX Roswell LLC 0 % 2 % 3 % Webb Energy Resources, Inc. 0 % 1 % 1 % Barnett Gathering, LP 0 % 7 % 6 % Midcoast Energy Partners LP 0 % 1 % 4 % Eagle Ridge Operating, Inc 0 % 1 % 1 % OXY USA, Inc. 0 % 1 % 1 % FDL Operating LLC 0 % 0 % 2 % Sunoco Partners Marketing 0 % 0 % 13 % Peveler Pipeline, LP 0 % 0 % 6 % Valero Energy Corporation 0 % 0 % 1 % Purchaser / Operator |
Additional Operations and Balance Sheet Information - Revenues, costs and expenses related to the Company's oil and gas operations | Year Ended December 31, 2023 2022 2021 Capitalized costs relating to oil and gas producing activities: producing activities: Unproved properties $ 1,876,000 $ 1,876,000 $ 1,876,000 Proved properties 23,973,000 23,445,000 24,429,000 Total capitalized costs 25,849,000 25,321,000 26,305,000 Accumulated amortization (25,438,000 ) (25,304,000 ) (25,304,000 ) Total capitalized costs, net $ 411,000 17,000 1,001,000 |
14. BUSINESS SEGMENTS (Tables)
14. BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segments - Business Segments | Year Ended December 31, 2023 2022 2021 Revenues: (1) Oil and gas exploration, production and operations $ 4,658,000 $ 7,958,000 $ 5,685,000 and operations Gas gathering, compression and equipment rental 120,000 89,000 99,000 equipment rental Real estate rental 270,000 245,000 240,000 Revenues $ 5,048,000 $ 8,292,000 $ 6,024,000 |
15. SUPPLEMENTARY INCOME STAT_2
15. SUPPLEMENTARY INCOME STATEMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplementary Income Statement Information | |
Supplementory Income Statement - Supplementary Income statement | Year Ended December 31, 2023 2022 2021 Maintenance and repairs $ 54,000 $ 18,000 $ 12,000 Production taxes 208,000 451,000 269,000 Taxes, other than payroll and income taxes 20,000 (45,000 ) 7,000 |
16. QUARTERLY DATA (UNAUDITED)
16. QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data (Unaudited) | QUARTERLY DATA (UNAUDITED) Year Ended December 31, 2023 First Second Third Fourth Revenue $ 1,167,000 $ 1,054,000 $ 1,674,000 1,210,000 Expense (1,514,000 ) (1,125,000 ) (1,273,000 ) (2,181,000 ) Operating income (loss) (347,000 ) (71,000 ) 401,000 (971,000 ) Other revenues 229,000 199,000 209,000 228,000 Net income (loss) (118,000 ) 128,000 610,000 (743,000 ) Current tax (provision) benefit — (17,000 ) (44,000 ) 70,000 Deferred tax (provision) benefit 21,000 14,000 11,000 75,000 Net income (loss) $ (97,000 ) $ 125,000 $ 577,000 $ (598,000 ) Earnings (loss) per share of common stock Earnings (loss) per share of common stock $ (0.01 ) $ 0.02 $ 0.09 $ (0.10 ) |
Summary of Significant Accounti
Summary of Significant Accounting Policies - Asset Retirement Obligation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Carrying amount of asset retirement obligation | $ 3,654,000 | $ 1,925,000 | |
Liabilities added | 565,000 | ||
Liabilities divested or settled | (314,000) | (285,000) | |
Current period accretion expenses | 509,000 | 2,014,000 | $ 572,000 |
Carrying amount as of December 31, | $ 4,414,000 | $ 3,654,000 | $ 1,925,000 |
Account Receivable (Details)
Account Receivable (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable | $ 2,105,000 | $ 2,215,000 |
Less: Allowance for losses | (15,000) | (15,000) |
Receivables, Net, Current | 2,090,000 | 2,200,000 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable | 18,000 | 151,000 |
Accrued Income Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable | $ 2,087,000 | $ 2,064,000 |
Accounts Payable - Accounts Pay
Accounts Payable - Accounts Payable (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 1,834,000 | $ 1,983,000 |
Production proceeds payable | 3,371,000 | 3,541,000 |
Prepaid drilling costs | 1,337,000 | 1,335,000 |
$ 6,542,000 | $ 6,859,000 |
5. RELATED PARTY TRANSACTIONS (
5. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |||
Oct. 01, 2010 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||||
[custom:AccountsReceivableAndAccountPayableRelatedParty-0] | $ 78,000 | $ 215,000 | ||
Related party Sales | $ 563,000 | |||
Income tax payable | ||||
Related Party Transaction [Line Items] | ||||
Professional Fees | $ 250 | |||
Real Estate Property - at cost | ||||
Related Party Transaction [Line Items] | ||||
Professional Fees | 1,500 | |||
Pipeline and rental operations | ||||
Related Party Transaction [Line Items] | ||||
Professional Fees | 500 | |||
TotalOtherAssets | ||||
Related Party Transaction [Line Items] | ||||
Professional Fees | $ 350 |
6. COMMON STOCK (Details Narrat
6. COMMON STOCK (Details Narrative) - Treasury Stock, Common [Member] - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jul. 07, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Repurchase shares of Common Stock as Treasury Stock, Amount | $ 10,375 | $ 5,000 | $ (30,000) | $ (15,000) |
Repurchase shares of Common Stock as Treasury Stock, Shares | 30,000 | 15,500 | 10,375 | 5,000 |
Price per share | $ 2.89 | $ 3.10 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Computed expected tax expense (benefit) | $ (48,000) | $ 21,000 | $ 201,000 |
Miscellaneous timing differences related to book and tax depletion differences and the expensing of intangible drilling costs. | 17,000 | 153,000 | (308,000) |
NOL Carryforward | (148,000) | ||
Gain on sale of oil and gas properties' | 22,000 | 396,000 | 279,000 |
Correction of prior year estimate | |||
Expected Federal income tax expense (benefit) | (9,000) | 570,000 | 24,000 |
Current income tax provision (benefit) | $ (9,000) | $ 570,000 | $ 24,000 |
Income Taxes - Deferred Tax (De
Income Taxes - Deferred Tax (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets | ||
Depletion and amortization | $ 273,000 | |
Depreciation | 33,000 | |
Total deferred tax assets | 306,000 | |
Deferred tax liabilities | ||
Intangible drilling costs | (266,000) | (56,000) |
Depreciation | (25,000) | |
Total deferred tax liability | (266,000) | (81,000) |
Net deferred income tax asset (payable) | $ 40,000 | $ (81,000) |
7. INCOME TAXES (Details Narrat
7. INCOME TAXES (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, Percent | 21% | 21% | 21% |
Cash Flow Information - Cash Fl
Cash Flow Information - Cash Flow (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net cash provided by operating activities includes cash payments for the following: | |||
Income taxes | $ 750,000 | ||
Excluded from the Consolidated Statements of Cash Flows were the effects of certain non-cash investing and financing activities, as follows: | |||
Addition (Reduction) of oil & gas properties by recognitions of asset retirement obligation | 251,000 | (285,000) | (113,000) |
Proceeds from sales of oil and gas properties | 104,000 | 1,531,000 | |
Qualified Intermediary accounts receivable | |||
$ 104,000 | $ 1,531,000 |
10. CONCENTRATIONS OF CREDIT _2
10. CONCENTRATIONS OF CREDIT RISK (Details Narrative) | Dec. 31, 2023 USD ($) |
Cash and Cash Equivalents [Line Items] | |
Cash, FDIC Insured Amount | $ 250,000 |
Long term investments | 16,575,000 |
FDIC Exceeds amounts insured | 2,826,000 |
Bank Time Deposits [Member] | |
Cash and Cash Equivalents [Line Items] | |
Checking and money market accounts | 3,461,000 |
Bank Time Deposits 2 [Member] | |
Cash and Cash Equivalents [Line Items] | |
Checking and money market accounts | 1,624,000 |
Bank Time Deposits 3 [Member] | |
Cash and Cash Equivalents [Line Items] | |
Checking and money market accounts | 1,354,000 |
Bank Time Deposits 4 [Member] | |
Cash and Cash Equivalents [Line Items] | |
Checking and money market accounts | 877,000 |
Bank Time Deposits 5 [Member] | |
Cash and Cash Equivalents [Line Items] | |
Checking and money market accounts | $ 322,000 |
Financial Instruments - Financi
Financial Instruments - Financial Instruments (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Investments, All Other Investments [Abstract] | ||
Cash and Cash Equivalents, at Carrying Value | $ 6,868,000 | $ 13,597,000 |
Cash and Cash Equivalents, Fair Value Disclosure | 6,868,000 | 13,597,000 |
Restricted Cash and Cash Equivalents, Current | 270,000 | 270,000 |
Restricted Cash Fair Value | 270,000 | 270,000 |
Long-Term Investments and Receivables, Net | 16,575,000 | 9,575,000 |
Investments, Fair Value Disclosure | 16,575,000 | 9,575,000 |
Receivables, Net, Current | 2,090,000 | 2,200,000 |
Accounts Receivable, Fair Value Disclosure | $ 2,090,000 | $ 2,200,000 |
12. COMMITMENTS AND CONTINGEN_2
12. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Single Well Bonds | ||
Loss Contingencies [Line Items] | ||
Municipal Investment Agreements | $ 35,000 | |
Single Well Bonds Additional | ||
Loss Contingencies [Line Items] | ||
Municipal Investment Agreements | $ 10,000 | |
Letter of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Municipal Investment Agreements | $ 270,000 | |
Letter of Credit [Member] | Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Municipal Investment Agreements | 25,000 | |
Letter of Credit [Member] | Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Municipal Investment Agreements | 100,000 | |
Letter Of Credit 1 [Member] | ||
Loss Contingencies [Line Items] | ||
Municipal Investment Agreements | 600,000 | |
Letter Of Credit 1 [Member] | Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Municipal Investment Agreements | $ 300,000 |
Additional Operations and Balan
Additional Operations and Balance Sheet Information - Significant purchasers / operators (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Energy Transfer Crude Marketing L L C [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 17% | 14% | 0% |
Enlink Gas Marketing L T D [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 11% | 9% | 14% |
Scissor Tail Exploration And Production [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 8% | 0% | 0% |
Bedrock Energy Partners [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 7% | 10% | 9% |
Giant Energy Co L P [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 6% | 12% | 0% |
Pruet Production Co [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 5% | 5% | 4% |
B K V Midstream [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 4% | 4% | 0% |
Hunt Crude Oil Supply [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 4% | 3% | 2% |
Territory Resources L L C [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 4% | 0% | 0% |
Trailblazer Formerly E T X Energy L L C [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 4% | 2% | 1% |
Eastex Crude Company [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 4% | 4% | 4% |
E T C Texas Pipeline L T D [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 3% | 4% | 4% |
Targa Midstream Services L L C [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 3% | 0% | 11% |
Producers Midstream [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 2% | 2% | 0% |
Oasis Transportation Marketing Group [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 2% | 2% | 1% |
Bedrock Production L L C [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 2% | 2% | 2% |
Javelin Oil Gas [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 1% | 3% | 0% |
Phillips 66 [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 1% | 2% | 2% |
Landand Natural Resource Development [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 1% | 1% | 1% |
Empire Pipeline Corp [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 1% | 2% | 2% |
Montare Operating L T D [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 1% | 0% | 0% |
Edinger Engineering Inc [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 1% | 1% | 1% |
Callon Petroleum Operating [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 1% | 0% | 0% |
D C P Midstream L P [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 1% | 1% | 1% |
I A C X Roswell L L C [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 0% | 2% | 3% |
Webb Energy Resources Inc [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 0% | 1% | 1% |
Barnett Gathering L P [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 0% | 7% | 6% |
Midcoast Energy Partners L P [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 0% | 1% | 4% |
Eagle Ridge Operating Inc [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 0% | 1% | 1% |
O X Y U S A Inc [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 0% | 1% | 1% |
F D L Operating L L C [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 0% | 0% | 2% |
Sunoco Partners Marketing [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 0% | 0% | 13% |
Peveler Pipeline L P [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 0% | 0% | 6% |
Valero Energy Corporation [Member] | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Purchaser / Operator | 0% | 0% | 1% |
Additional Operations and Bal_2
Additional Operations and Balance Sheet Information - Revenues, costs and expenses related to the Company's oil and gas operations (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) $ / Mcfe | Dec. 31, 2022 USD ($) $ / Mcfe | Dec. 31, 2021 USD ($) $ / Mcfe | |
Capitalized costs relating to oil and gas producing activities: | |||
Unproved properties | $ 1,876,000 | $ 1,876,000 | $ 1,876,000 |
Proved properties | 23,973,000 | 23,445,000 | 24,429,000 |
Total capitalized costs | 25,849,000 | 25,321,000 | 26,305,000 |
Accumulated amortization | (25,438,000) | (25,304,000) | (25,304,000) |
Total capitalized costs, net | 411,000 | 17,000 | 1,001,000 |
Costs incurred in oil and gas property acquisitions, exploration and development: | |||
Acquisition of properties | 19,000 | ||
Development costs | 565,000 | 214,000 | 410,000 |
Total costs incurred | 565,000 | 214,000 | 429,000 |
Results of operations from producing activities: | |||
Sales of oil and gas | $ 4,502,000 | $ 7,775,000 | $ 5,466,000 |
Amortization Expense Per Physical Unit of Production | $ / Mcfe | 0.20 | 0.06 | |
Oil and Gas Properties [Member] | |||
Results of operations from producing activities: | |||
Sales of oil and gas | $ 4,502,000 | $ 7,775,000 | $ 5,466,000 |
Production costs | 2,170,000 | 2,987,000 | 2,103,000 |
Amortization of oil and gas properties | 134,000 | 63,000 | |
Total production costs | 2,304,000 | 2,987,000 | 2,166,000 |
Total net revenue | $ 2,198,000 | $ 4,788,000 | $ 3,300,000 |
Sales price per equivalent Mcf | $ / Mcfe | 5.56 | 8.97 | 5.58 |
Production costs per equivalent Mcf | $ / Mcfe | 2.69 | 3.45 | 2.15 |
Results of operations from gas gathering and equipment rental activities: | |||
Revenue | $ 120,000 | $ 89,000 | $ 99,000 |
Operating expenses | 54,000 | 21,000 | 17,000 |
Depreciation | 4,000 | 1,000 | 1,000 |
Total costs | 58,000 | 22,000 | 18,000 |
Total net revenue | $ 62,000 | $ 67,000 | $ 81,000 |
Business Segments - Business Se
Business Segments - Business Segments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, and amortization expense | $ 229,000 | $ 74,000 | $ 121,000 |
Consolidated net income (loss) | 7,000 | 669,000 | 1,037,000 |
Consolidated total assets | 28,146,000 | 27,807,000 | |
Oil And Gas Properties Exploration [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,658,000 | 7,958,000 | 5,685,000 |
Depreciation, depletion, and amortization expense | 155,000 | 17,000 | 65,000 |
Consolidated net income (loss) | 1,824,000 | 2,940,000 | 2,945,000 |
Consolidated total assets | 777,000 | 83,000 | 1,001,000 |
Gas Gathering Compression And Equipment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 120,000 | 89,000 | 99,000 |
Depreciation, depletion, and amortization expense | 4,000 | 1,000 | 1,000 |
Consolidated net income (loss) | 62,000 | 67,000 | 81,000 |
Consolidated total assets | 53,000 | 4,000 | 5,000 |
Real Estate Rental [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 270,000 | 245,000 | 240,000 |
Depreciation, depletion, and amortization expense | 70,000 | 56,000 | 55,000 |
Consolidated net income (loss) | 39,000 | 15,000 | 18,000 |
Consolidated total assets | 1,363,000 | 1,428,000 | 1,210,000 |
Sub Total [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated net income (loss) | 1,925,000 | 3,022,000 | 3,044,000 |
Consolidated total assets | 2,193,000 | 1,515,000 | 2,216,000 |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated net income (loss) | (1,918,000) | (2,353,000) | (2,007,000) |
Consolidated total assets | 25,953,000 | 26,292,000 | 23,869,000 |
Consolidated Total Assets [Member] | |||
Segment Reporting Information [Line Items] | |||
Consolidated total assets | $ 28,146,000 | $ 27,807,000 | $ 26,085,000 |
Supplementory Income Statement
Supplementory Income Statement - Supplementary Income statement (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplementary Income Statement Information | |||
Maintenance and repairs | $ 54,000 | $ 18,000 | $ 12,000 |
Production taxes | 208,000 | 451,000 | 269,000 |
Taxes, other than payroll and income taxes | 20,000 | 45,000 | 7,000 |
Taxes, other than payroll and income taxes | $ (20,000) | $ (45,000) | $ (7,000) |
Quarterly Data (Unaudited) (Det
Quarterly Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Revenue | $ 1,210,000 | $ 1,674,000 | $ 1,054,000 | $ 1,167,000 | $ 1,843,000 | $ 2,012,000 | $ 2,675,000 | $ 1,824,000 | $ 1,936,000 | $ 1,806,000 | $ 1,227,000 | $ 1,099,000 | |||
Expense | (2,181,000) | (1,273,000) | (1,125,000) | (1,514,000) | (4,465,000) | (1,386,000) | (1,330,000) | (1,215,000) | (2,465,000) | (992,000) | (1,230,000) | (978,000) | |||
Operating income (loss) | (971,000) | 401,000 | (71,000) | (347,000) | (2,622,000) | 626,000 | 1,345,000 | 609,000 | (529,000) | 814,000 | (3,000) | 121,000 | |||
Other revenues | 228,000 | 209,000 | 199,000 | 229,000 | 142,000 | 1,531,000 | 552,000 | ||||||||
Net income (loss) | (743,000) | 610,000 | 128,000 | (118,000) | (2,480,000) | 2,157,000 | 1,345,000 | 609,000 | 23,000 | 814,000 | (3,000) | 121,000 | $ (123,000) | $ 1,631,000 | $ 955,000 |
Current tax (provision) benefit | 70,000 | (44,000) | (17,000) | 82,000 | (416,000) | (176,000) | (60,000) | 227,000 | (229,000) | (5,000) | (17,000) | ||||
Deferred tax (provision) benefit | 75,000 | 11,000 | 14,000 | 21,000 | (227,000) | (48,000) | (77,000) | (40,000) | 293,000 | (182,000) | 2,000 | (7,000) | |||
Net income (loss) | $ (598,000) | $ 577,000 | $ 125,000 | $ (97,000) | $ (2,625,000) | $ 1,693,000 | $ 1,092,000 | $ 509,000 | $ 543,000 | $ 403,000 | $ (6,000) | $ 97,000 | $ 7,000 | $ 669,000 | $ 1,037,000 |
Earnings (loss) per share of common stock Basic and diluted | $ (0.10) | $ 0.09 | $ 0.02 | $ (0.01) | $ (0.39) | $ 0.25 | $ 0.16 | $ 0.08 | $ 0.08 | $ 0.06 | $ (0.01) |