Document and Entity Information
| Document and Entity Information - shares | 6 Months Ended | |
| Dec. 31, 2016 | Feb. 28, 2017 | |
| Document and Entity Information [Abstract] | ||
| Entity Registrant Name | HYPERDYNAMICS CORP | |
| Entity Central Index Key | 937,136 | |
| Document Type | 10-Q | |
| Document Period End Date | Dec. 31, 2016 | |
| Amendment Flag | false | |
| Current Fiscal Year End Date | --06-30 | |
| Entity Current Reporting Status | Yes | |
| Entity Filer Category | Smaller Reporting Company | |
| Entity Common Stock, Shares Outstanding | 21,801,536 | |
| Document Fiscal Year Focus | 2,017 | |
| Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
| CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
| Current assets: | ||
| Cash and cash equivalents | $ 2,239 | $ 10,327 |
| Prepaid expenses | 645 | 1,294 |
| Deposits and other current assets | 235 | 6 |
| Total current assets | 3,119 | 11,627 |
| Property and equipment, net of accumulated depreciation of $2,097 and $2,075 | 59 | 51 |
| Unproved oil and gas properties excluded from amortization (Full-Cost Method) | 4,142 | |
| Total property and equipment and unproved oil and gas properties, net | 4,201 | 51 |
| Total assets | 7,320 | 11,678 |
| Current Liabilities: | ||
| Accounts payable and accrued expenses | 1,475 | 1,743 |
| Liability for legal settlement (Note 6) | 1,308 | |
| Total current liabilities | 2,783 | 1,743 |
| Commitments and contingencies (Note 6) | ||
| Shareholders' equity: | ||
| Preferred stock, $0.001 par value; 20,000,000 authorized, 0 shares issued and outstanding | ||
| Common stock, $0.001 par value, 87,000,000 shares authorized; 21,201,536 and 21,046,591 shares issued and outstanding | 169 | 169 |
| Additional paid-in capital | 317,938 | 317,757 |
| Accumulated deficit | (313,570) | (307,991) |
| Total shareholders' equity | 4,537 | 9,935 |
| Total liabilities and shareholders' equity | $ 7,320 | $ 11,678 |
CONDENSED CONSOLIDATED BALANCE3
| CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| Property and equipment, accumulated depreciation (in dollars) | $ 2,097 | $ 2,075 |
| Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
| Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
| Preferred stock, shares issued | 0 | 0 |
| Preferred stock, shares outstanding | 0 | 0 |
| Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
| Common stock, shares authorized | 87,000,000 | 87,000,000 |
| Common stock, shares issued | 21,201,536 | 21,046,591 |
| Common stock, shares outstanding | 21,201,536 | 21,046,591 |
CONDENSED CONSOLIDATED STATEMEN
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
| Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
| Costs and expenses: | ||||
| Depreciation | $ 10 | $ 28 | $ 35 | $ 56 |
| General, administrative and other operating | 4,281 | 1,829 | 8,247 | 3,706 |
| Full-cost ceiling test write-down | 753 | 753 | ||
| Loss from operations | (5,044) | (1,857) | (9,035) | (3,762) |
| Gain (loss) on settlement agreement | (371) | 4,764 | ||
| Cost of legal settlement | (1,308) | (1,308) | ||
| Loss before income tax | (6,723) | (1,857) | (5,579) | (3,762) |
| Net loss | $ (6,723) | $ (1,857) | $ (5,579) | $ (3,762) |
| Basic and diluted loss per share | $ (0.31) | $ (0.09) | $ (0.26) | $ (0.18) |
| Weighted average shares outstanding - basic and diluted | 21,201,536 | 21,046,591 | 21,127,758 | 21,046,591 |
CONDENSED CONSOLIDATED STATEME5
| CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
| Balance at Jun. 30, 2015 | $ 169 | $ 317,404 | $ (285,145) | $ 32,428 |
| Balance (in shares) at Jun. 30, 2015 | 21,046,591 | |||
| Increase (Decrease) in Shareholders' Equity | ||||
| Net loss | (22,846) | (22,846) | ||
| Amortization of fair value of stock options | 353 | 353 | ||
| Balance at Jun. 30, 2016 | $ 169 | 317,757 | (307,991) | 9,935 |
| Balance (in shares) at Jun. 30, 2016 | 21,046,591 | |||
| Increase (Decrease) in Shareholders' Equity | ||||
| Net loss | (5,579) | (5,579) | ||
| Exercise of stock options | 18 | 18 | ||
| Exercise of stock options (in shares) | 20,000 | |||
| Awards in lieu of cash bonus | 57 | 57 | ||
| Awards in lieu of cash bonus (in shares) | 134,945 | |||
| Amortization of fair value of stock options | 106 | 106 | ||
| Balance at Dec. 31, 2016 | $ 169 | $ 317,938 | $ (313,570) | $ 4,537 |
| Balance (in shares) at Dec. 31, 2016 | 21,201,536 |
CONDENSED CONSOLIDATED STATEME6
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
| Dec. 31, 2016 | Dec. 31, 2015 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net loss | $ (5,579) | $ (3,762) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| Depreciation | 35 | 56 |
| Full-cost ceiling test write-down | 753 | |
| Stock based compensation | 106 | 189 |
| Stock issued in lieu of cash bonuses | 57 | |
| Gain on legal settlement | (4,078) | |
| Cost of legal settlement | 1,308 | |
| Changes in operating assets and liabilities: | ||
| Increase in Accounts receivable - joint interest | (52) | |
| Decrease in Prepaid expenses | 649 | 582 |
| Increase in Deposits and other current assets | (229) | (8) |
| Decrease in Accounts payable and accrued expenses | (268) | (992) |
| Net cash used in operating activities | (7,246) | (3,987) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Purchase of property and equipment | (42) | |
| Investment in unproved oil and gas properties | (818) | (20) |
| Net cash used in investing activities | (860) | (20) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Proceeds from exercise of stock options | 18 | |
| Net cash provided by financing activities | 18 | |
| DECREASE IN CASH AND CASH EQUIVALENTS | (8,088) | (4,007) |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 10,327 | 18,374 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 2,239 | $ 14,367 |
ORGANIZATION AND SIGNIFICANT AC
| ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
| Dec. 31, 2016 | |
| ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |
| ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES General Overview Hyperdynamics Corporation (“Hyperdynamics,” the “Company,” “we,” “us,” and “our”) is a Delaware corporation formed in March 1996. Hyperdynamics has two wholly-owned subsidiaries, SCS Corporation Ltd (“SCS”), a Cayman corporation, and HYD Resources Corporation (“HYD”), a Texas corporation. Through SCS, Hyperdynamics focuses on oil and gas exploration offshore the coast of West Africa. Our exploration efforts are pursuant to a Hydrocarbon Production Sharing Contract, as amended (the “PSC”). We refer to the rights granted under the PSC as the “Concession.” We began operations in oil and gas exploration, seismic data acquisition, processing, and interpretation in late fiscal 2002. As used herein, references to “Hyperdynamics,” “Company,” “we,” “us,” and “our” refer to Hyperdynamics Corporation and our subsidiaries, including SCS. The rights in the Concession offshore Guinea are held by SCS. Status of our Business, Liquidity and Going Concern We have no source of operating revenue and there is no assurance when we will, if ever. On December 31, 2016, we had $2.2 million in cash, and $1.5 million in accounts payable and accrued expense liabilities, all of which are current liabilities. The net working capital of approximately $0.7 million will not be sufficient to meet our corporate needs and Concession related activities for the quarter ending March 31, 2017. We are currently pursuing several avenues to raise funds. We have no other material commitments other than ordinary operating costs and commitments relating to the PSC. As of February 28, 2017 the Company’s trade accounts payable and accrued expenses exceeded its cash balances. In 2010 we sold a 23% gross interest in the Concession to Dana Petroleum, PLC (“Dana”), a subsidiary of the Korean National Oil Corporation. Later, at the end of 2012, we sold a 40% gross interest to Tullow Guinea Ltd. (“Tullow”). The Share Purchase Agreement (“Tullow SPA”) was dated December 31, 2012. A few months later Tullow became the Operator of the Concession on April 1, 2013. We refer to Tullow, Dana and us in the Concession as the “Consortium”. Pursuant to the Tullow SPA between Tullow and us, Tullow paid us $26.0 million in cash and Tullow agreed to pay our entire participating interest share of expenditures associated with joint operations in the Concession up to a gross expenditure cap of $100.0 million incurred during the period of our carried interest while drilling the initial exploratory well that began on September 21, 2013. Tullow also agreed to pay our participating interest share of future costs for the drilling of an appraisal well following the initial exploration well, if drilled, up to an additional gross expenditure cap of $100.0 million. The Consortium planned to drill the exploration well in the ultra-deepwater area (water depths of over 2,000 meters) of the Concession during the first half of calendar 2014, but Tullow declared Force Majeure in March of 2014 based on the mere existence of the Department of Justice (“DOJ”) and Securities and Exchange Commission (“SEC”) investigations pursuant to the Foreign Corrupt Practices Act of the United States (“FCPA Investigations”). Tullow withdrew its Force Majeure declaration in May of 2014, but did not resume petroleum operations citing the existence of the FCPA investigations and the Ebola outbreak in Guinea as the reason. The DOJ investigation ended last May 2015, the SEC investigation ended last September 2015, and the World Health Organization declared Guinea Ebola free on December 29, 2015. Notwithstanding the resolution of the FCPA investigations, Dana insisted on further specific title assurances from the Government of Guinea and at a Petroleum Operations Management Committee meeting with the Government of Guinea in Conakry on December 16 and 17, 2015, Tullow and SCS obtained a PSC Amendment that we believed provided such further assurances. Instead of signing the PSC Amendment both Tullow and Dana refused to execute the agreement. Unable to see a path forward, we filed legal actions against Tullow and Dana under our Joint Operating Agreement. On August 15, 2016, we entered into a Settlement and Release Agreement with Tullow and Dana (“Settlement Agreement”) that returned to Hyperdynamics 100% of the interest under the PSC, long-lead item property useful in the drilling of an exploratory well, and $0.7 million in cash, in return for a mutual release of all claims. We also agreed to pay Dana a success fee based upon the certified reserves of the Fatala well if it results in a discovery. On August 19, 2016, we signed a non-binding Memorandum of Understanding with the Government of Guinea and executed a Second Amendment to the PSC (“2016 Amendment”) on September 15, 2016. We also received a Presidential Decree that gave Hyperdynamics a one year extension to the second exploration period of the PSC to September 22, 2017 (“PSC Extension Period”) and we also became the designated Operator with the receipt of the Presidential Decree. In addition to clarifying certain elements of the initial PSC, we agreed in the 2016 Amendment to drill one exploratory well to a minimum depth of 2,500 meters below the seabed within the PSC Extension Period with a projected commencement date of April 2017 (the “Extension Well”) with the option of drilling additional wells. If the Extension Well is not drilled within the PSC Extension Period, we will owe the Government of Guinea, under Article 4.2 of the PSC, the difference between the actual expenditures in Guinea that are related to the well and $46.0 million. Fulfillment of the work obligations exempts us from the expenditure obligations during the PSC Extension Period. Failure to comply with the drilling and other obligations of the PSC as amended subjects us to financial penalties and a risk of loss of the Concession. In mid-January 2017 the Company requested and received a notification letter dated January 24, 2017 from the General Director of the National Petroleum Office of the Republic of Guinea, informing the Company that the Republic of Guinea granted a postponement of the Company’s obligation to provide a mutually acceptable security of $5.0 million to February 20, 2017 (originally required by no later than January 21, 2017) as well as a clarification regarding the timing of the security under Article 4.2 of the 2016 PSC Amendment until the work on the Fatala-1 well is completed. On March 1, 2017, the Republic of Guinea has issued a reservation of rights letter asserting the Company has not satisfied its obligation to deposit mutually acceptable security of $5.0 million. The Company and the Republic of Guinea have been and continue to be in negotiations regarding the mutually acceptable assets that would satisfy the $5.0 million security requirement. These negotiations have not yet reached a conclusion. If we do not reach an agreement with the Government of Guinea on a mutually acceptable security instrument, the Republic of Guinea may terminate the PSC at any time and without prior notice to remedy such non-compliance with the PSC. To date the $5.0 million security has not been provided and no extension, though requested, subsequent to February 20 has been provided by the Republic of Guinea. Also, if the well is not drilled during the Extension Period we will owe the Republic of Guinea the remaining balance under Article 4.2 of the PSC. The delays prior to the signing of the Second Amendment have adversely affected our ability to date to explore the Concession and reduce the attractiveness of the Concession to prospective industry participants and financing parties. While we currently hold 100% of the Concession, it is unknown whether we will be able to raise the necessary funds to drill the exploratory well during the PSC Extension Period. Absent cash inflows we will not have adequate capital resources to meet our current obligations as they become due and therefore there is substantial doubt about our ability to continue as a going concern. Our ability to meet our current obligations as they become due over the next twelve-months, and to be able to continue exploration, will depend on obtaining additional resources through sales of additional interests in the Concession, equity or debt financial offerings, or through other means. No assurance can be given that any of these actions can be completed. Principles of consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Hyperdynamics and its direct and indirect wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in our Annual Report filed with the SEC on Form 10-K for the year ended June 30, 2016. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended June 30, 2016, as reported in the Form 10-K, have been omitted. Use of estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and expenses at the balance sheet date and for the period then ended. We believe our estimates and assumptions are reasonable; however, such estimates and assumptions are subject to a number of risks and uncertainties that may cause actual results to differ materially from such estimates. Significant estimates and assumptions underlying these financial statements include: · estimates in the calculation of share-based compensation expense, · estimates made in our income tax calculations, · estimates in the assessment of current litigation claims against the Company, · estimates and assumptions involved in our assessment of unproved oil and gas properties for impairment, and · estimates and assumptions involved in our fair market value assessment of the well construction equipment received in the August 15, 2016 Settlement Agreement with Tullow and Dana. We are subject, from time to time, to legal proceedings, claims, and liabilities that arise in the ordinary course of business. We accrue for losses when such losses are considered probable and the amounts can be reasonably estimated. Cash and cash equivalents Cash equivalents are highly liquid investments with an original maturity of three months or less. For the periods presented, we maintained all of our cash in bank deposit accounts which, at times, exceed the federally insured limits. Earnings per share Basic loss per common share has been computed by dividing net loss by the weighted average number of shares of common stock outstanding during each period. In period of earnings, diluted earnings per common share are calculated by dividing net income available to common shareholders by weighted-average common shares outstanding during the period plus weighted-average dilutive potential common shares. Diluted earnings per share calculations assume, as of the beginning of the period, exercise of stock options and warrants using the treasury stock method. All potential dilutive securities, including potentially dilutive options, warrants and convertible securities, if any, were excluded from the computation of dilutive net loss per common share for the three and six month periods ended December 31, 2016 and 2015, respectively, because their effects in the computation are antidilutive due to our net loss for those periods. Stock options to purchase approximately 1.2 million common shares at an average exercise price of $4.08 were outstanding at December 31, 2016. Using the treasury stock method, had we had net income, approximately 298,700 common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the three month period ended December 31, 2016 while approximately 182,200 common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the six month period ended December 31, 2016. Stock options to purchase approximately 1.0 million common shares at an average exercise price of $5.67 were outstanding at December 31, 2015. Using the treasury stock method, had we had net income, approximately 101,600 common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the three month period ended December 31, 2015 while approximately 50,800 common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the six month period ended December 31, 2015. Contingencies We are subject to legal proceedings, claims and liabilities. We accrue for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. Legal fees are charged to expense as they are incurred. See Note 6 for more information on legal proceedings and settlements. Fair Value Measurements The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurements and enhance disclosure requirements for fair value measures. As discussed in Note 2, we determined a fair value of the well construction equipment material (Level 3 fair value measurement) that we received at the time of our legal settlement with Tullow and Dana. The fair value estimate was based on the combination of cost and market approaches taking into consideration a number of factors, which included but were not limited to the original cost and the condition of the material and demand for steel and tubulars at the time of measurement. |
INVESTMENT IN OIL AND GAS PROPE
| INVESTMENT IN OIL AND GAS PROPERTIES | 6 Months Ended |
| Dec. 31, 2016 | |
| INVESTMENT IN OIL AND GAS PROPERTIES | |
| INVESTMENT IN OIL AND GAS PROPERTIES | 2. INVESTMENT IN OIL AND GAS PROPERTIES Investment in oil and gas properties consists entirely of our Concession in offshore Guinea, West Africa. We previously owned a 37% participating interest in our Guinea Concession on June 30, 2016. On August 19, 2016, we signed a non-binding Memorandum of Understanding with the Government of Guinea and executed a Second Amendment to the PSC (“2016 Amendment”) on September 15, 2016 and received a Presidential Decree on September 21, 2016 giving us a one year extension to the second exploration period of the PSC to September 22, 2017 (“PSC Extension Period”) and reaffirming that we now own 100% of the Concession. One part of our settlement with Tullow and Dana included the relinquishments of their respective 40% and 23% participating interests in the Concession. Hyperdynamics now owns 100% of the participating interests in the Concession. In addition to clarifying certain elements of the PSC, we agreed in the 2016 Amendment to drill one (1) exploratory well to a minimum depth of 2,500 meters below the seabed within the PSC Extension Period with a projected commencement date of April 2017 (the “Extension Well”) with the option of drilling additional wells. If the Extension Well is not drilled within the PSC Extension Period, we will owe the Government of Guinea the difference between the actual expenditures in Guinea related to the well and $46.0 million. Fulfillment of the work obligations exempts us from the expenditure obligations during the PSC Extension Period. In the event a discovery is made, the terms of the PSC make us eligible for a two-year appraisal period during which we are obliged either to declare that the reserves are commerciality viable or that we decide that the PSC shall terminate. In turn, we will retain only an area equivalent to approximately 5,000 square kilometers in the Guinea offshore and will provide the Government of Guinea: (1) A parent company guarantee for the well obligation, (2) monthly progress reports and a reconciliation of budget to actual expenditures, (failure to provide the reports and assurances on a timely basis could result in a notice of termination with a 30 day period to cure), and (3) guarantees to the Guinea Government that (a) no later than January 21, 2017 we will provide a mutually acceptable security for $5.0 million on terms customary in international petroleum operations, provided that this security is to be released at the time the drilling rig for the Extension Well is on location offshore Guinea, and (b) no later than April 12, 2017, we will deliver a mutually acceptable security for the difference between $46.0 million and the amount spent to date on the Extension Well. For the purposes of calculation for this clause, however, only costs spent for services and goods provided in Guinea shall be taken into account until the drilling rig to be used in the drilling of the Extension Well is located in the territorial waters of the Republic of Guinea. On January 24, 2017 the Company requested and received a notification letter from the General Director of the National Petroleum Office of the Republic of Guinea, informing the Company that the Republic of Guinea granted a postponement to provide a mutually acceptable security of $5.0 million to February 20, 2017 as well as a clarification regarding the timing of the $46.0 million security payment under Article 4.2 of the 2016 PSC Amendment until the work on the Fatala well is completed. On March 1, 2017, the Republic of Guinea has issued a reservation of rights letter asserting the Company has not satisfied its obligation to deposit mutually acceptable security of $5.0 million. The Company and the Republic of Guinea have been and continue to be in negotiations regarding the mutually acceptable assets that would satisfy the $5.0 million requirement. These negotiations have not yet reached a conclusion. If we do not agree with the Government of Guinea on a mutually acceptable security instrument the Government of Guinea may terminate the PSC at any time and without prior notice to remedy such non-compliance with the PSC. To date the $5.0 million security has not been provided and no extension, though requested, subsequent to February 20 has been provided by the Republic of Guinea. Also, if the well is not drilled during the Extension Period we will owe the Republic of Guinea the difference between the $46.0 million and the costs incurred to date on the Extension Well. Additionally, we agreed to limit the cost recovery pool to date to our share of expenditures in the PSC since 2009 (estimated to be approximately $150,000,000) and move into the territory of Guinea the long lead items we received in the Settlement Agreement that are currently in Takoradi, Ghana for the drilling of the Extension Well by January 31, 2017. The movement of approximately $1.6 million of the $4.1 million of equipment was started on January 29, 2017 and was completed on February 5, 2017. The balance of the material still in Ghana will be moved at a later date. Finally, we agreed to allocate and administer a training budget during the PSC Extension Period for the benefit of the Guinea National Petroleum Office of $250,000 in addition to any unused portion of the training program under Article 10.3 of the PSC, estimated to be approximately $500,000. Failure to comply with the drilling and other obligations of the PSC as amended subjects us to financial penalties and a risk of loss of the Concession. The continued delays have affected adversely the ability to explore the Concession and reduce the attractiveness of the Concession to prospective industry participants and financing sources. While we currently hold 100% of the Concession, it is unknown whether we will be able to raise the necessary funds to drill the exploratory well during the PSC Extension Period. We follow the “Full-Cost” method of accounting for oil and natural gas property and equipment costs. Under this method, internal costs incurred that were directly identified with exploration, development, and acquisition activities undertaken by us for our own account, and which were not related to production, general corporate overhead, or similar activities, are capitalized. Capitalization of internal costs was discontinued April 1, 2013 when Tullow became the operator. Hyperdynamics became the operator after the signing of the Second Amendment of the PSC on September 15, 2016 and thus capitalization of certain internal, project related costs had resumed. For the three and six month periods ended December 31, 2016, we capitalized $1.3 million and $1.5 million of such costs, respectively. Capitalized internal costs of $ 0.2 million from the previous quarter were written off and recorded as full-cost ceiling test write-down expenses, and capitalized internal costs of $1.3 million in the current quarter were written off and recorded as General, administrative and other operating costs. Geological and geophysical costs incurred that are directly associated with specific unproved properties are capitalized in “Unproved properties excluded from amortization” and evaluated as part of the total capitalized costs associated with a prospect. The cost of unproved properties not being amortized is assessed to determine whether such properties have been impaired. In determining whether such costs should be impaired, we evaluate current drilling plans and drilling results and available geological and geophysical information. No reserves have been attributed to the Concession. The following table provides detail of total capitalized costs for the Concession which remain unproved and unevaluated and are excluded from amortization as of December 31, 2016 and June 30, 2016 (in thousands): December 31, June 30, Oil and Gas Properties: Unproved properties not subject to amortization $ $ — During the six month period ended December 31, 2016, our oil and gas property balance increased by $4.1 million as a result of the fair value of the material received in our settlement with Tullow and Dana. The fair value of the material, for the most part well construction material, at the time of the settlement was approximately $4.4 million, of which we reduced by approximately $0.4 million during the second quarter of fiscal year 2017 based on additional information that we determined reduced the original fair market value. We engaged an independent outside party with expertise in valuing oil and gas equipment to conduct an appraisal and provide a fair valuation determination for our initial recording and reporting purposes. During the quarter ended December 31, 2016 we impaired $0.8 million of unproved oil and gas property costs capitalized during the current quarter ($0.5 million) and previous quarter ($0.3 million) and the internal costs described above. That impairment assessment was based on our liquidity position, and the possibility that we may not reach an agreement with the Government of Guinea regarding the requirement under the PSC to provide a mutually acceptable security of $5.0 million, and the possibility that the Government of Guinea may at any time and without prior notice terminate our Concession. As of June 30, 2016 at the close of our last fiscal year we fully impaired the $14.3 million of previously capitalized unproved oil and gas property costs. That impairment assessment was based on the continued impasse at the time by our members of the Consortium to resume petroleum operations and drill the next exploration obligation well, which needed to be commenced at that time by the end of September 2016, and our inability at the time to get interim injunctive relief from the American Arbitration Association requiring Tullow and Dana to join with SCS in the negotiation of an acceptable amendment to the PSC and to agree to a process that would result in the execution of the amendment which we hoped would have led to the resumption of petroleum operations by the Consortium. Thus, we believed all legal measures to require Tullow and Dana to drill the planned exploration well had been exhausted. |
ACCOUNTS PAYABLE AND ACCRUED EX
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 6 Months Ended |
| Dec. 31, 2016 | |
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 3. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses as of December 31, 2016 and June 30, 2016 include the following (in thousands): December 31, June 30, Accounts payable — trade and oil and gas exploration activities $ $ Accounts payable — legal costs Accrued payroll Liability for legal settlement (Note 6) — $ $ |
SHARE-BASED COMPENSATION
| SHARE-BASED COMPENSATION | 6 Months Ended |
| Dec. 31, 2016 | |
| SHARE-BASED COMPENSATION | |
| SHARE-BASED COMPENSATION | 4. SHARE-BASED COMPENSATION On February 18, 2010, at our annual meeting of stockholders, the board of directors and stockholders approved the 2010 Equity Incentive Plan (the “2010 Plan”). Prior to the 2010 stockholder meeting, we had two stock award plans: the Stock and Stock Option Plan, which was adopted in 1997 (“1997 Plan”) and the 2008 Restricted Stock Award Plan (“2008 Plan”). In conjunction with the approval of the 2010 Plan at the annual meeting, the 1997 Plan and the 2008 Plan were terminated as of February 18, 2010. Subsequently, on February 17, 2012, the 2010 Plan was amended to increase the maximum shares issuable under the 2010 Plan and again on January 27, 2016, at our annual meeting of stockholders, the stockholders approved amending the 2010 Plan to increase the number of shares available for issuance by 750,000 shares. The 2010 Plan provides for the awards of shares of common stock, restricted stock units or incentive stock options or nonqualified stock options to purchase our common stock to selected employees, directors, officers, agents, consultants, attorneys, vendors and advisors of ours’ or of any parent or subsidiary thereof. Shares of common stock, options, or restricted stock can only be awarded under the 2010 Plan within 10 years from the effective date of February 18, 2010. A maximum of 2,000,000 shares are issuable under the 2010 Plan and at December 31, 2016, 783,460 shares remained available for issuance. The 2010 Plan provides a means to attract and retain the services of participants and also to provide added incentive to such persons by encouraging stock ownership in the Company. Plan awards are administered by the Compensation, Nominating, and Corporate Governance Committee, who has substantial discretion to determine which persons, amounts, time, price, exercise terms, and restrictions, if any. From time to time we issue non-compensatory warrants, such as warrants issued to investors. Stock Options The fair value of stock option awards is estimated using the Black-Scholes valuation model. For market-based pricing of stock option awards, those options where vesting terms are dependent on achieving a specified stock price, the fair value was estimated using a Black-Scholes option pricing model with inputs adjusted for the probability of the vesting criteria being met and the median expected term for each award as determined by utilizing a Monte Carlo simulation. Expected volatility is based solely on historical volatility of our common stock over the period commensurate with the expected term of the stock options. We rely solely on historical volatility because we do not have options that are traded. The expected term calculation for stock options is based on the simplified method as described in the Securities and Exchange Commission Staff Accounting Bulletin No. 107. We use this method because we do not have sufficient historical information on exercise patterns to develop a model for expected term. The risk-free interest rate is based on the U. S. Treasury yield in effect at the time of award for an instrument with a maturity that is commensurate with the expected term of the stock options. The dividend yield rate of 0% is based on the fact that we have never paid cash dividends on our common stock and we do not expect to pay cash dividends on our common stock during the expected term of the options. The following table provides information about options during the six months ended December 31, 2016 and 2015: 2016 2015 Number of options awarded Compensation expense recognized $ $ Weighted average award-date fair value of options outstanding $ $ The following table details the significant assumptions used to compute the fair values of employee and director stock options awarded during the six month periods ended December 31, 2016 and 2015: 2016 2015 Risk-free interest rate 0.47-1.86 % % Dividend yield % % Volatility factor 109-157 % % Expected life (years) 1.0-4.73 Summary information regarding employee and director stock options issued and outstanding under all plans as of December 31, 2016 is as follows: Options Weighted Aggregate Weighted Options outstanding at July 1, 2016 $ $ — Awarded Exercised ) Forfeited — — Expired ) Options outstanding at December 31, 2016 $ $ Options exercisable at December 31, 2016 $ $ Options outstanding and exercisable as of December 31, 2016 Exercise Price Outstanding Number of Remaining Life Exercisable $ 0.41-4.00 Less than1 year $ 0.41-4.00 1 year $ 0.41-4.00 2 years $ 0.41-4.00 3 years $ 0.41-4.00 4 years $ 0.41-4.00 5 years — $ 4.01-10.00 Less than 1 year $ 4.01-10.00 1 year $ 4.01-10.00 2 years $ 4.01-10.00 3 years $ 10.01-20.00 Less than 1 year $ 10.01-20.00 4 years $ 20.01-30.00 Less than 1 year $ 20.01-30.00 4 years $ 30.01-40.00 Less than 1 year $ 30.01-40.00 5 years $ 40.01-48.72 4 years At December 31, 2016, there were $177 thousand of unrecognized compensation costs related to non-vested share based compensation arrangements awarded to employees and directors under the plans. During the six months ended December 31, 2016, a total of 76,404 options, with a weighted average award date fair value of $0.57 per share, vested in accordance with the underlying agreements. Unvested options at December 31, 2016 totaled 199,697 with a weighted average award date fair value of $4.72, an amortization period of one year and a weighted average remaining life of 0.93 years. Restricted Stock The fair value of restricted stock awards classified as equity awards is based on the Company’s stock price as of the date of grant. During the year ended June 30, 2015, all such awards were forfeited. No new grants have been issued, and none are outstanding at December 31, 2016. |
INCOME TAXES
| INCOME TAXES | 6 Months Ended |
| Dec. 31, 2016 | |
| INCOME TAXES | |
| INCOME TAXES | 5. INCOME TAXES Federal income taxes are not due as we have had losses since inception. Our effective tax rate for the six month periods ended December 31, 2016 and 2015 is 0%. This rate is lower than the U.S. statutory rate of 35% primarily due to the valuation allowance applied against our net deferred tax assets. |
COMMITMENTS AND CONTINGENCIES
| COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
| Dec. 31, 2016 | |
| COMMITMENTS AND CONTINGENCIES | |
| COMMITMENTS AND CONTINGENCIES | 6. COMMITMENTS AND CONTINGENCIES LITIGATION AND OTHER LEGAL MATTERS From time to time, we and our subsidiaries are involved in disputes. We review the status of on-going proceedings and other contingent matters with legal counsel. Liabilities for such items are recorded if and when it is probable that a liability has been incurred and when the amount of the liability can be reasonably estimated. If we are able to reasonably estimate a range of possible losses, an estimated range of possible loss is disclosed for such matters in excess of the accrued liability, if any. Liabilities are periodically reviewed for adjustments based on additional information. Iroquois Lawsuit On May 9, 2012, a lawsuit was filed in the Supreme Court of the State of New York against us and all of our directors. The plaintiffs, five hedge funds that invested in us in early 2012, alleged that we breached an agreement with the plaintiffs, and that we and the directors made certain negligent misrepresentations relating to our drilling operations. Among other claims, the plaintiffs alleged that we misrepresented the status of our drilling operations and the speed with which the drilling would be completed. The plaintiffs’ advanced claims for breach of contract and negligent misrepresentation and sought damages in the amount of $18.5 million plus pre-judgment interest. On July 12, 2012, we and the directors moved to dismiss the suit for failure to state a claim as to all defendants and for lack of personal jurisdiction over the director defendants. On June 19, 2013, the court dismissed the negligent misrepresentation claim but declined to dismiss the breach of contract claim. The negligent misrepresentation claim was dismissed without prejudice, meaning plaintiffs could attempt to refile it. On August 12, 2013, the plaintiffs filed an amended complaint. That complaint named only the Company and sought recovery for alleged breaches of contract. We filed an answer to the plaintiffs’ amended complaint on September 9, 2013, and the court entered a scheduling order governing pre-trial proceedings in the matter. On December 31, 2016 we entered into a settlement agreement with the plaintiffs whereby Hyperdynamics will issue to the plaintiffs a total of 600,000 new shares of common stock, and it will cause a payment to be made of $1.35 million in cash that will be covered under its directors’ and officers’ insurance policy.The liability for the issuance of the shares was recorded to “liability for legal settlement” in the amount of $1.3 million based on the $2.18 December 30, 2016 closing price of our common stock. The plaintiffs are restricted from selling the shares before April 1, 2017 under the terms of the agreement. The shares of common stock were issued on February 2, 2017, whereby the issuance of those shares will be recorded to “Common Stock” and “Additional paid in capital” and the liability for legal settlement will be cleared. Shareholder Lawsuits Beginning on March 13, 2014, two lawsuits styled as class actions were filed in the U.S. District Court for the Southern District of Texas against us and several then-current officers of the Company alleging that the Company made false and misleading statements that artificially inflated the Company’s stock prices. The lawsuits alleged, among other things, that the Company misrepresented its compliance with the Foreign Corrupt Practices Act and anti-money laundering statutes and that it lacked adequate internal controls. The lawsuits sought damages based on Sections 10(b) and 20 of the Securities Exchange Act of 1934, although the specific amount of damages is not specified. On May 12, 2014, a shareholder filed a motion for appointment as lead plaintiff. Both of the March 2014 lawsuits were dismissed voluntarily. One was dismissed during the quarter ended September 30, 2016 and the second on October 6, 2016. Tullow and Dana Legal Actions On January 11, 2016, we filed legal actions against members of the Consortium under the Joint Operating Agreement governing the oil and gas exploration rights offshore Guinea (“JOA”) in the United States District Court for the Southern District of Texas and before the American Arbitration Association (“AAA”) against Tullow for their failure to meet their obligations under the JOA. On January 28, 2016, the action in the Federal District Court was voluntarily dismissed by us and refiled in District Court in Harris County, Texas. On February 8, 2016 Tullow and Dana removed the case to Federal District Court. On February 2, 2016, SCS filed an Application for Emergency Arbitrator and Interim Measures of Protection and requested the following relief: (a) expedite discovery prior to the constitution of the arbitral tribunal; (b) provide that the time period permitted by the parties’ arbitration agreement for the selection of the arbitrators and the filing of any responsive pleadings or counterclaims be accelerated; (c) require Tullow, as the designated operator under the JOA, to maintain existing “well-planning activities”; (d) require Tullow to undertake and complete certain planning activities; and (e) require Tullow and Dana to join with SCS in completing the negotiation of an acceptable amendment to the PSC and to agree to a process that will result in the execution of the amendment. With the exception of limited relief regarding discovery and agreement by Tullow to maintain certain well plan readiness, the Emergency Arbitrator ruled on February 17, 2016, that SCS was not entitled to the emergency injunctive relief it requested. Further, the Emergency Arbitrator enjoined all parties to the dispute from pursuing parallel District Court proceedings. On February 12, 2016, the case was voluntarily stayed by us. The AAA action sought (1) a determination that Tullow and Dana was in breach of their contractual obligations and (2) the damages caused by the repeated delays in well drilling caused by the activities of Tullow and Dana. We determined to bring the legal actions only after it became apparent that Tullow and Dana would not move forward, despite many opportunities to do so, with petroleum operations. SCS believed that it had exhausted all of its options for the pursuit of legal measures to require Tullow and Dana to drill the planned exploration well. On August 15, 2016, we subsequently entered into a Settlement and Release Agreement with Tullow and Dana (“Settlement and Release”) with respect to our dispute in arbitration. Under the Settlement and Release, we released all claims against Tullow and Dana and Tullow and Dana (i) issued to the Government of Guinea a notice of withdrawal from the Concession and PSC effective immediately, (ii) transferred their interest in the long lead items of well construction material previously purchased by the Consortium in preparation for the initial drilling of the Fatala well, and agreed to pay net cash of $686,570 to us. The net cash received was recorded as a part of the gain on the legal settlement. We also agreed to pay Dana a success fee based upon the certified reserves of the Fatala well if it results in a discovery of commercially producible oil and gas reserves. The $4.8 million gain on legal settlement also includes the estimated fair value of $4.1 million for the well construction material we received from Tullow as a part of our Settlement and Release Agreement. COMMITMENTS AND CONTINGENCIES Operating Leases We lease office space under long-term operating leases with varying terms. Most of the operating leases contain renewal and purchase options. We expect that in the normal course of business, most of the operating leases will be renewed or replaced by other similar leases. During the three months period ended December 31, 2016 and as a part of our program to begin drilling operations in Guinea, we entered into a lease for in-country offices and nearby apartments. The leases are for six months with options to renew as necessary and collectively cost about $30 thousand per month. The following is a schedule by years of minimum future rental payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year (in thousands): Years ending June 30: 2017 $ 2018 2019 2020 2021 and thereafter — Total minimum payments required $ Rent expense included in net loss from operations for the three month periods ended December 31, 2016 and 2015 was $0.1 million in each period. Rent expense included in net loss from operations for the six month periods ended December 31, 2016 and 2015 was $0.2 million and $0.3 million respectively, in each period. |
SUBSEQUENT EVENTS
| SUBSEQUENT EVENTS | 6 Months Ended |
| Dec. 31, 2016 | |
| SUBSEQUENT EVENTS | |
| SUBSEQUENT EVENTS | 7. SUBSEQUENT EVENTS Issuance of Common Stock and Payment of Cash by Insurers: Settlement of Iroquois Lawsuit On January 11, 2017 a payment of $1.35 million was made by the insurance underwriters of the Company’s directors’ and officers’ insurance policy to the hedge funds in the Iroquois lawsuit on behalf of the Company. On February 2, 2017 the Company issued 600,000 shares of its common stock to the hedge funds named in the settlement agreement. On December 31, 2016 we had entered into a settlement agreement with the five hedge funds in the Iroquois lawsuit. Under the terms of the settlement agreement, Hyperdynamics would issue to the plaintiffs a total of 600,000 shares of new common stock, and it would cause a payment to be made of $1.35 million in cash that would be covered under its directors’ and officers’ insurance policy. The plaintiffs are restricted from selling the shares of common stock before April 1, 2017 under the terms of the agreement. Certain requirements under the PSC On January 24, 2017 the Company requested and received a notification letter from the General Director of the National Petroleum Office of the Republic of Guinea, informing the Company that the Republic of Guinea granted a postponement to provide a mutually acceptable security of $5.0 million to February 20, 2017 as well as a clarification regarding the timing of the $46.0 million security payment under Article 4.2 of the 2016 PSC Amendment until the work on the Fatala well is completed. On March 1, 2017, the Republic of Guinea has issued a reservation of rights letter asserting the Company has not satisfied its obligation to deposit mutually acceptable security of $5.0 million. The Company and the Republic of Guinea have been and continue to be in negotiations regarding the mutually acceptable assets that would satisfy the $5.0 million requirement. These negotiations have not yet reached a conclusion. If we do not agree with the Government of Guinea on a mutually acceptable security instrument the Government of Guinea may terminate the PSC at any time and without prior notice to remedy such non-compliance with the PSC. To date the $5.0 million security has not been provided and no extension, though requested, subsequent to February 20 has been provided by the Republic of Guinea. Also, if the well is not drilled during the Extension Period we will owe the Republic of Guinea the difference between the $46.0 million and the costs incurred to date on the Extension Well. OTC Markets Group Listing Requirements and Delinquency Notice On February 27, 2017 the OTC Markets Group determined that the Company was delinquent in filing its SEC Form 10-Q for the Quarter ended December 31, 2016. The Company was advised that it had until March 29, 2017, a thirty day period, to correct the deficiency. If the Company is unable to correct the deficiency or provide an acceptable plan to comply with the requirement to timely file its ongoing disclosure obligations, the OTC Markets Group will remove the Company from OTCQX U.S. to OTC Pink on March 30, 2017. The filing of this Form 10-Q on or prior to March 29 cures this delinquency. |
ORGANIZATION AND SIGNIFICANT 14
| ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
| Dec. 31, 2016 | |
| ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |
| Principles of consolidation | Principles of consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Hyperdynamics and its direct and indirect wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in our Annual Report filed with the SEC on Form 10-K for the year ended June 30, 2016. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal year ended June 30, 2016, as reported in the Form 10-K, have been omitted. |
| Use of estimates | Use of estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and expenses at the balance sheet date and for the period then ended. We believe our estimates and assumptions are reasonable; however, such estimates and assumptions are subject to a number of risks and uncertainties that may cause actual results to differ materially from such estimates. Significant estimates and assumptions underlying these financial statements include: · estimates in the calculation of share-based compensation expense, · estimates made in our income tax calculations, · estimates in the assessment of current litigation claims against the Company, · estimates and assumptions involved in our assessment of unproved oil and gas properties for impairment, and · estimates and assumptions involved in our fair market value assessment of the well construction equipment received in the August 15, 2016 Settlement Agreement with Tullow and Dana. We are subject, from time to time, to legal proceedings, claims, and liabilities that arise in the ordinary course of business. We accrue for losses when such losses are considered probable and the amounts can be reasonably estimated. |
| Cash and cash equivalents | Cash and cash equivalents Cash equivalents are highly liquid investments with an original maturity of three months or less. For the periods presented, we maintained all of our cash in bank deposit accounts which, at times, exceed the federally insured limits. |
| Earnings per share | Earnings per share Basic loss per common share has been computed by dividing net loss by the weighted average number of shares of common stock outstanding during each period. In period of earnings, diluted earnings per common share are calculated by dividing net income available to common shareholders by weighted-average common shares outstanding during the period plus weighted-average dilutive potential common shares. Diluted earnings per share calculations assume, as of the beginning of the period, exercise of stock options and warrants using the treasury stock method. All potential dilutive securities, including potentially dilutive options, warrants and convertible securities, if any, were excluded from the computation of dilutive net loss per common share for the three and six month periods ended December 31, 2016 and 2015, respectively, because their effects in the computation are antidilutive due to our net loss for those periods. Stock options to purchase approximately 1.2 million common shares at an average exercise price of $4.08 were outstanding at December 31, 2016. Using the treasury stock method, had we had net income, approximately 298,700 common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the three month period ended December 31, 2016 while approximately 182,200 common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the six month period ended December 31, 2016. Stock options to purchase approximately 1.0 million common shares at an average exercise price of $5.67 were outstanding at December 31, 2015. Using the treasury stock method, had we had net income, approximately 101,600 common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the three month period ended December 31, 2015 while approximately 50,800 common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the six month period ended December 31, 2015. |
| Contingencies | Contingencies We are subject to legal proceedings, claims and liabilities. We accrue for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. Legal fees are charged to expense as they are incurred. See Note 6 for more information on legal proceedings and settlements. |
| Fair Value Measurements | Fair Value Measurements The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurements and enhance disclosure requirements for fair value measures. As discussed in Note 2, we determined a fair value of the well construction equipment material (Level 3 fair value measurement) that we received at the time of our legal settlement with Tullow and Dana. The fair value estimate was based on the combination of cost and market approaches taking into consideration a number of factors, which included but were not limited to the original cost and the condition of the material and demand for steel and tubulars at the time of measurement. |
INVESTMENT IN OIL AND GAS PRO15
| INVESTMENT IN OIL AND GAS PROPERTIES (Tables) | 6 Months Ended |
| Dec. 31, 2016 | |
| INVESTMENT IN OIL AND GAS PROPERTIES | |
| Schedule of total capitalized costs of oil and gas properties | The following table provides detail of total capitalized costs for the Concession which remain unproved and unevaluated and are excluded from amortization as of December 31, 2016 and June 30, 2016 (in thousands): December 31, June 30, Oil and Gas Properties: Unproved properties not subject to amortization $ $ — |
ACCOUNTS PAYABLE AND ACCRUED 16
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 6 Months Ended |
| Dec. 31, 2016 | |
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |
| Summary of accounts payable and accrued expenses | Accounts payable and accrued expenses as of December 31, 2016 and June 30, 2016 include the following (in thousands): December 31, June 30, Accounts payable — trade and oil and gas exploration activities $ $ Accounts payable — legal costs Accrued payroll Liability for legal settlement (Note 6) — $ $ |
SHARE-BASED COMPENSATION (Table
| SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
| Dec. 31, 2016 | |
| SHARE-BASED COMPENSATION | |
| Schedule of information about options | 2016 2015 Number of options awarded Compensation expense recognized $ $ Weighted average award-date fair value of options outstanding $ $ |
| Schedule of significant assumptions used to compute the fair values of employee and director stock options awarded | 2016 2015 Risk-free interest rate 0.47-1.86 % % Dividend yield % % Volatility factor 109-157 % % Expected life (years) 1.0-4.73 |
| Summary of employee and director stock options issued and outstanding | Options Weighted Aggregate Weighted Options outstanding at July 1, 2016 $ $ — Awarded Exercised ) Forfeited — — Expired ) Options outstanding at December 31, 2016 $ $ Options exercisable at December 31, 2016 $ $ |
| Schedule of stock options outstanding and exercisable | Options outstanding and exercisable as of December 31, 2016 Exercise Price Outstanding Number of Remaining Life Exercisable $ 0.41-4.00 Less than1 year $ 0.41-4.00 1 year $ 0.41-4.00 2 years $ 0.41-4.00 3 years $ 0.41-4.00 4 years $ 0.41-4.00 5 years — $ 4.01-10.00 Less than 1 year $ 4.01-10.00 1 year $ 4.01-10.00 2 years $ 4.01-10.00 3 years $ 10.01-20.00 Less than 1 year $ 10.01-20.00 4 years $ 20.01-30.00 Less than 1 year $ 20.01-30.00 4 years $ 30.01-40.00 Less than 1 year $ 30.01-40.00 5 years $ 40.01-48.72 4 years |
COMMITMENTS AND CONTINGENCIES (
| COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
| Dec. 31, 2016 | |
| COMMITMENTS AND CONTINGENCIES | |
| Schedule by years of minimum future rental payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year | The following is a schedule by years of minimum future rental payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year (in thousands): Years ending June 30: 2017 $ 2018 2019 2020 2021 and thereafter — Total minimum payments required $ |
ORGANIZATION AND SIGNIFICANT 19
| ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - General Overview (Details) | 6 Months Ended |
| Dec. 31, 2016subsidiary | |
| ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |
| Number of wholly-owned subsidiaries | 2 |
ORGANIZATION AND SIGNIFICANT 20
| ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Status of Our Business - General Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
| Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
| ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||||
| Operating revenue | $ 0 | $ 0 | $ 0 | $ 0 | |||
| Costs and expenses | (5,044) | $ (1,857) | (9,035) | (3,762) | |||
| Cash | 2,239 | $ 14,367 | 2,239 | $ 14,367 | $ 10,327 | $ 18,374 | |
| Accounts payable and accrued expense liabilities | 1,475 | 1,475 | $ 1,743 | ||||
| Net working capital | 700 | 700 | |||||
| Other commitments | $ 0 | $ 0 | |||||
ORGANIZATION AND SIGNIFICANT 21
| ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Status of Our Business - Liquidity and Going Concern (Details) $ in Millions | Mar. 01, 2017USD ($) | Jan. 24, 2017USD ($) | Aug. 19, 2016USD ($)itemm | Aug. 15, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($)m | Jun. 30, 2016 | Dec. 31, 2012 | Jun. 30, 2010 |
| Tullow and Dana | |||||||||
| Status of our Business | |||||||||
| Minimum ultra deepwater depth (in meters) | m | 2,000 | ||||||||
| Tullow and Dana | Settlement Agreement | |||||||||
| Status of our Business | |||||||||
| Ownership interest (as a percent) | 100.00% | ||||||||
| Settlement amount | $ 0.7 | ||||||||
| Guinea concession | |||||||||
| Status of our Business | |||||||||
| Cash proceeds from Tullow | $ 26 | ||||||||
| Ownership interest (as a percent) | 100.00% | 100.00% | 100.00% | 37.00% | |||||
| Gross expenditure cap | $ 100 | $ 100 | |||||||
| Threshold gross expenditure cap for well to be paid by the entity | 100 | $ 100 | |||||||
| Extension period for second exploration (in years) | 1 year | ||||||||
| Number of exploratory wells drilled | item | 1 | ||||||||
| Depth below seabed required to be drilled of an exploration well (in meters) | m | 2,500 | ||||||||
| Amount receivable, if extension well not drilled | $ 46 | ||||||||
| Mutually acceptable security | $ 5 | $ 5 | |||||||
| Maximum period of time over which current available liquidity could be exhausted | 12 months | ||||||||
| Guinea concession | Subsequent Events | |||||||||
| Status of our Business | |||||||||
| Amount receivable, if extension well not drilled | $ 46 | ||||||||
| Mutually acceptable security | $ 5 | $ 5 | |||||||
| Guinea concession | Tullow Guinea Ltd | |||||||||
| Status of our Business | |||||||||
| Ownership interest sold (as a percent) | 40.00% | ||||||||
| Guinea concession | Dana | |||||||||
| Status of our Business | |||||||||
| Ownership interest (as a percent) | 23.00% |
ORGANIZATION AND SIGNIFICANT 22
| ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Earnings per Share (Details) - Stock options - $ / shares | 3 Months Ended | 6 Months Ended | ||
| Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
| Earnings per share | ||||
| Potentially dilutive securities excluded from the computation of dilutive net loss per common share | 1,200,000 | 1,000,000 | ||
| Average exercise price of common stock (in dollars per share) | $ 4.08 | $ 5.67 | $ 4.08 | $ 5.67 |
| Common shares included in fully diluted earnings per share | 298,700 | 101,600 | 182,200 | 50,800 |
INVESTMENT IN OIL AND GAS PRO23
| INVESTMENT IN OIL AND GAS PROPERTIES (Details) | Mar. 01, 2017USD ($) | Jan. 29, 2017USD ($) | Jan. 24, 2017USD ($) | Aug. 19, 2016USD ($)km²itemm | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)bbl | Dec. 31, 2016USD ($)bbl | Sep. 30, 2016USD ($) | Jun. 30, 2010 |
| Investments in oil and gas properties | |||||||||
| Movement in oil and gas properties | $ 4,100,000 | ||||||||
| Oil and Gas Properties: | |||||||||
| Unproved properties not subject to amortization | $ 4,142,000 | $ 4,142,000 | |||||||
| Full impairment of unproved oil and gas properties | 753,000 | 753,000 | |||||||
| Settlement and Release Agreement with Tullow and Dana | |||||||||
| Oil and Gas Properties: | |||||||||
| Fair value of well construction material | $ 4,100,000 | $ 4,100,000 | |||||||
| Guinea concession | |||||||||
| Investments in oil and gas properties | |||||||||
| Ownership interest in Guinea Concession (as a percent) | 100.00% | 37.00% | 100.00% | 100.00% | |||||
| Extension period for second exploration (in years) | 1 year | ||||||||
| Number of exploratory well in extension period | item | 1 | ||||||||
| Depth below seabed required to be drilled of an exploration well (in meters) | m | 2,500 | ||||||||
| Amount receivable, if extension well not drilled | $ 46,000,000 | ||||||||
| Eligible appraisal period | 2 years | ||||||||
| Contract area retained (in square kilometers/square miles) | km² | 5,000 | ||||||||
| Notice period for termination (in days) | 30 days | ||||||||
| Mutually acceptable security | $ 5,000,000 | $ 5,000,000 | |||||||
| Estimated amount to limit cost recovery to share of expenditures | 150,000,000 | ||||||||
| Agreed amount in training budget | 250,000 | ||||||||
| Estimated amount of unused portion of training program | $ 500,000 | ||||||||
| Movement in oil and gas properties | $ 1,600,000 | ||||||||
| Capitalized costs | $ 1,300,000 | $ 1,500,000 | |||||||
| Reserves | bbl | 0 | 0 | |||||||
| Oil and Gas Properties: | |||||||||
| Unproved properties not subject to amortization | $ 4,142,000 | $ 4,142,000 | |||||||
| Increase in property balance resulting from capitalized cost adjustment | 4,100,000 | ||||||||
| Fair value of well construction material | 4,400,000 | 4,400,000 | |||||||
| Reduction in fair value of well construction material | 400,000 | ||||||||
| Oil and gas property capitalized | 500,000 | 500,000 | $ 300,000 | ||||||
| Full impairment of unproved oil and gas properties | $ 14,300,000 | $ 800,000 | 200,000 | ||||||
| Guinea concession | General, Administrative And Other Operating Cost | |||||||||
| Investments in oil and gas properties | |||||||||
| Capitalized costs | $ 1,300,000 | ||||||||
| Guinea concession | Tullow Guinea Ltd | |||||||||
| Investments in oil and gas properties | |||||||||
| Ownership interest sold (as a percent) | 40.00% | 40.00% | |||||||
| Guinea concession | Dana | |||||||||
| Investments in oil and gas properties | |||||||||
| Ownership interest in Guinea Concession (as a percent) | 23.00% | ||||||||
| Ownership interest sold (as a percent) | 23.00% | 23.00% | |||||||
| Guinea concession | Subsequent Events | |||||||||
| Investments in oil and gas properties | |||||||||
| Amount receivable, if extension well not drilled | $ 46,000,000 | ||||||||
| Mutually acceptable security | $ 5,000,000 | $ 5,000,000 |
ACCOUNTS PAYABLE AND ACCRUED 24
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
| ACCOUNTS PAYABLE AND ACCRUED EXPENSES | ||
| Accounts payable - trade and oil and gas exploration activities | $ 601 | $ 1,361 |
| Accounts payable - legal costs | 171 | 61 |
| Accrued payroll | 703 | 321 |
| Accounts payable and accrued expenses | 1,475 | 1,743 |
| Liability for legal settlement (Note 6) | 1,308 | |
| Total current liabilities | $ 2,783 | $ 1,743 |
SHARE-BASED COMPENSATION - Gene
| SHARE-BASED COMPENSATION - General Information (Details) | Jan. 27, 2016shares | Feb. 18, 2010plan | Dec. 31, 2016shares |
| SHARE-BASED COMPENSATION | |||
| Number of stock award plans prior to the adoption of 2010 plan | plan | 2 | ||
| 2010 Plan | Stock options | |||
| SHARE-BASED COMPENSATION | |||
| Increase in the number of shares available for issuance | 750,000 | ||
| Period within which shares of common stock, options or restricted stock can be awarded under the 2010 plan | 10 years | ||
| Number of shares issuable under the plan | 2,000,000 | ||
| Number of shares remaining available for issuance | 783,460 |
SHARE-BASED COMPENSATION - Info
| SHARE-BASED COMPENSATION - Information about Options (Details) - Stock options - USD ($) | 6 Months Ended | |
| Dec. 31, 2016 | Dec. 31, 2015 | |
| Stock Options | ||
| Number of options awarded (in shares) | 178,500 | 30,000 |
| Compensation expense recognized | $ 106,000 | $ 189,000 |
| Weighted average award-date fair value of options outstanding (in dollars per share) | $ 4.08 | $ 5.67 |
SHARE-BASED COMPENSATION - Sign
| SHARE-BASED COMPENSATION - Significant Assumptions (Details) - Stock options | 6 Months Ended | |
| Dec. 31, 2016 | Dec. 31, 2015 | |
| Significant assumptions used to compute the fair market values | ||
| Risk-free interest rate (as a percent) | 1.74% | |
| Risk-free interest rate, low end of range (as a percent) | 0.47% | |
| Risk-free interest rate, high end of range (as a percent) | 1.86% | |
| Dividend yield (as a percent) | 0.00% | 0.00% |
| Volatility factor (as a percent) | 109.00% | |
| Volatility factor, low end of range (as a percent) | 109.00% | |
| Volatility factor, high end of range (as a percent) | 157.00% | |
| Expected life (years) | 2 years 10 months 17 days | |
| Minimum | ||
| Significant assumptions used to compute the fair market values | ||
| Expected life (years) | 1 year | |
| Maximum | ||
| Significant assumptions used to compute the fair market values | ||
| Expected life (years) | 4 years 8 months 23 days | |
SHARE-BASED COMPENSATION - Stoc
| SHARE-BASED COMPENSATION - Stock Option Activity (Details) - Stock options - USD ($) | 6 Months Ended | 12 Months Ended | |
| Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | |
| Options | |||
| Outstanding at the beginning of the period (in shares) | 1,016,997 | ||
| Awarded (in shares) | 178,500 | 30,000 | |
| Exercised (in shares) | (20,000) | ||
| Expired (in shares) | (16,250) | ||
| Outstanding at the end of the period (in shares) | 1,159,247 | 1,016,997 | |
| Options exercisable at end of period (in shares) | 959,550 | ||
| Weighted Average Exercise Price | |||
| Outstanding at the beginning of the period (in dollars per share) | $ 5.03 | ||
| Awarded (in dollars per share) | 1.06 | ||
| Exercised (in dollars per share) | 0.90 | ||
| Expired (in dollars per share) | 34.43 | ||
| Outstanding at the end of the period (in dollars per share) | 4.08 | $ 5.03 | |
| Options exercisable at end of period (in dollars per share) | $ 4.72 | ||
| Aggregate intrinsic value | |||
| Outstanding at the end of the period | $ 883,620 | ||
| Options exercisable at period end | $ 646,342 | ||
| Weighted average remaining contractual term (years) | |||
| Outstanding at the end of the period | 2 years 6 months 15 days | 3 years 2 months 9 days | |
| Options exercisable at period end | 2 years 1 month 2 days | ||
SHARE-BASED COMPENSATION - Opti
| SHARE-BASED COMPENSATION - Options Outstanding and Exercisable (Details) - Stock options | 6 Months Ended |
| Dec. 31, 2016$ / sharesshares | |
| Options outstanding and exercisable | |
| Outstanding Number of Shares | 1,159,247 |
| Exercisable Number of Shares | 959,550 |
| Exercise price range $0.41 - $4.00, remaining life less than 1 year | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 0.41 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 4 |
| Outstanding Number of Shares | 245,525 |
| Exercisable Number of Shares | 245,525 |
| Exercise price range $0.41 - $4.00, remaining life less than 1 year | Maximum | |
| Options outstanding and exercisable | |
| Remaining Life (in years) | 1 year |
| Exercise price range $0.41 - $4.00, remaining life 1 year | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 0.41 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 4 |
| Outstanding Number of Shares | 57,916 |
| Remaining Life (in years) | 1 year |
| Exercisable Number of Shares | 57,916 |
| Exercise price range $0.41 - $4.00, remaining life 2 years | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 0.41 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 4 |
| Outstanding Number of Shares | 136,296 |
| Remaining Life (in years) | 2 years |
| Exercisable Number of Shares | 136,296 |
| Exercise price range $0.41 - $4.00, remaining life 3 years | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 0.41 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 4 |
| Outstanding Number of Shares | 226,720 |
| Remaining Life (in years) | 3 years |
| Exercisable Number of Shares | 226,720 |
| Exercise price range $0.41 - $4.00, remaining life 4 years | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 0.41 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 4 |
| Outstanding Number of Shares | 112,610 |
| Remaining Life (in years) | 4 years |
| Exercisable Number of Shares | 71,405 |
| Exercise price range $0.41 - $4.00, remaining life 5 years | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 0.41 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 4 |
| Outstanding Number of Shares | 158,492 |
| Remaining Life (in years) | 5 years |
| Exercise price range $4.01 - $10.00, remaining life less than 1 year | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 4.01 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 10 |
| Outstanding Number of Shares | 79,563 |
| Exercisable Number of Shares | 79,563 |
| Exercise price range $4.01 - $10.00, remaining life less than 1 year | Maximum | |
| Options outstanding and exercisable | |
| Remaining Life (in years) | 1 year |
| Exercise price range $4.01 - $10.00, remaining life 1 year | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 4.01 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 10 |
| Outstanding Number of Shares | 38,625 |
| Remaining Life (in years) | 1 year |
| Exercisable Number of Shares | 38,625 |
| Exercise price range $4.01 - $10.00, remaining life 2 years | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 4.01 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 10 |
| Outstanding Number of Shares | 4,062 |
| Remaining Life (in years) | 2 years |
| Exercisable Number of Shares | 4,062 |
| Exercise price range $4.01 - $10.00, remaining life 3 years | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 4.01 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 10 |
| Outstanding Number of Shares | 7,000 |
| Remaining Life (in years) | 3 years |
| Exercisable Number of Shares | 7,000 |
| Exercise price range $10.01 - $20.00, remaining life less than 1 year | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 10.01 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 20 |
| Outstanding Number of Shares | 13,125 |
| Exercisable Number of Shares | 13,125 |
| Exercise price range $10.01 - $20.00, remaining life less than 1 year | Maximum | |
| Options outstanding and exercisable | |
| Remaining Life (in years) | 1 year |
| Exercise price range $10.01 - $20.00, remaining life 4 years | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 10.01 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 20 |
| Outstanding Number of Shares | 17,500 |
| Remaining Life (in years) | 4 years |
| Exercisable Number of Shares | 17,500 |
| Exercise price range $20.01 - $30.00, remaining life less than 1 year | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 20.01 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 30 |
| Outstanding Number of Shares | 3,750 |
| Exercisable Number of Shares | 3,750 |
| Exercise price range $20.01 - $30.00, remaining life less than 1 year | Maximum | |
| Options outstanding and exercisable | |
| Remaining Life (in years) | 1 year |
| Exercise price range $20.01 - $30.00, remaining life 4 years | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 20.01 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 30 |
| Outstanding Number of Shares | 28,500 |
| Remaining Life (in years) | 4 years |
| Exercisable Number of Shares | 28,500 |
| Exercise price range $30.01 - $40.00, remaining life less than 1 year | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 30.01 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 40 |
| Outstanding Number of Shares | 12,500 |
| Exercisable Number of Shares | 12,500 |
| Exercise price range $30.01 - $40.00, remaining life less than 1 year | Maximum | |
| Options outstanding and exercisable | |
| Remaining Life (in years) | 1 year |
| Exercise price range $30.01 - $40.00, remaining life 5 years | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 30.01 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 40 |
| Outstanding Number of Shares | 13,313 |
| Remaining Life (in years) | 5 years |
| Exercisable Number of Shares | 13,313 |
| Exercise price range $40.01 - $48.72, remaining life 4 years | |
| Options outstanding and exercisable | |
| Exercise Price, low end of the range (in dollars per share) | $ / shares | $ 40.01 |
| Exercise Price, high end of the range (in dollars per share) | $ / shares | $ 48.72 |
| Outstanding Number of Shares | 3,750 |
| Remaining Life (in years) | 4 years |
| Exercisable Number of Shares | 3,750 |
SHARE-BASED COMPENSATION - St30
| SHARE-BASED COMPENSATION - Stock Options - Additional Disclosures (Details) - Stock options $ / shares in Units, $ in Thousands | 6 Months Ended |
| Dec. 31, 2016USD ($)$ / sharesshares | |
| Stock Options | |
| Unrecognized compensation costs | $ | $ 177 |
| Option vested (in shares) | shares | 76,404 |
| Weighted average award date fair value of options vested (in dollars per share) | $ / shares | $ 0.57 |
| Unvested options outstanding (in shares) | shares | 199,697 |
| Weighted average award date fair value of unvested options outstanding (in dollars per share) | $ / shares | $ 4.72 |
| Amortization period | 1 year |
| Weighted average remaining life of unvested options outstanding | 11 months 5 days |
SHARE-BASED COMPENSATION - Rest
| SHARE-BASED COMPENSATION - Restricted Stock - General Disclosures (Details) - Restricted Stock | 6 Months Ended |
| Dec. 31, 2016shares | |
| Restricted stock | |
| Granted (in shares) | 0 |
| Outstanding (in shares) | 0 |
INCOME TAXES (Details)
| INCOME TAXES (Details) | 6 Months Ended | |
| Dec. 31, 2016 | Dec. 31, 2015 | |
| INCOME TAXES | ||
| Effective tax rate (as a percent) | 0.00% | 0.00% |
| Statutory federal rate (as a percent) | 35.00% | 35.00% |
COMMITMENTS AND CONTINGENCIES -
| COMMITMENTS AND CONTINGENCIES - Litigation and Other Legal Matters (Details) | Oct. 06, 2016lawsuit | Aug. 15, 2016USD ($) | Mar. 13, 2014lawsuit | May 09, 2012USD ($)plaintiff | Dec. 31, 2016USD ($)$ / sharesshares | Sep. 30, 2016lawsuit | Dec. 31, 2016USD ($)plaintiff$ / sharesshares |
| LITIGATION AND OTHER LEGAL MATTERS | |||||||
| Liability for legal settlement | $ 1,308,000 | $ 1,308,000 | |||||
| Closing price of common stock (in dollars per share) | $ / shares | $ 2.18 | $ 2.18 | |||||
| Gain on legal settlement | $ (371,000) | $ 4,764,000 | |||||
| Iroquois Lawsuit | |||||||
| LITIGATION AND OTHER LEGAL MATTERS | |||||||
| Number of plaintiffs which filed lawsuit | plaintiff | 5 | ||||||
| Damages sought | $ 18,500,000 | ||||||
| Settlement of Iroquois Lawsuit | |||||||
| LITIGATION AND OTHER LEGAL MATTERS | |||||||
| Number of plaintiffs which filed lawsuit | plaintiff | 5 | ||||||
| Number of shares will issue to the plaintiffs | shares | 600,000 | 600,000 | |||||
| Settlements in cash payable | $ 1,350,000 | $ 1,350,000 | |||||
| Shareholder Lawsuits | |||||||
| LITIGATION AND OTHER LEGAL MATTERS | |||||||
| Number of lawsuits filed | lawsuit | 2 | ||||||
| Number of lawsuits dismissed | lawsuit | 1 | 1 | |||||
| Settlement and Release Agreement with Tullow and Dana | |||||||
| LITIGATION AND OTHER LEGAL MATTERS | |||||||
| Settlement amount | $ 686,570 | ||||||
| Gain on legal settlement | 4,800,000 | ||||||
| Fair value of well construction material | $ 4,100,000 | $ 4,100,000 |
COMMITMENTS AND CONTINGENCIES34
| COMMITMENTS AND CONTINGENCIES - Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
| Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
| Operating Leases | ||||
| Operating lease term (in years) | 6 months | |||
| Operating lease cost per month | $ 30 | |||
| 2,017 | $ 377 | 377 | ||
| 2,018 | 399 | 399 | ||
| 2,019 | 406 | 406 | ||
| 2,020 | 309 | 309 | ||
| Total minimum payments required | 1,491 | 1,491 | ||
| Rent expense | $ 100 | $ 100 | $ 200 | $ 300 |
SUBSEQUENT EVENTS (Details)
| SUBSEQUENT EVENTS (Details) $ in Thousands | Mar. 01, 2017USD ($) | Feb. 27, 2017 | Feb. 02, 2017shares | Jan. 24, 2017USD ($) | Jan. 11, 2017USD ($) | Aug. 19, 2016USD ($) | Dec. 31, 2016USD ($)shares | Dec. 31, 2016USD ($)plaintiffshares |
| Settlement of Iroquois Lawsuit | ||||||||
| SUBSEQUENT EVENTS | ||||||||
| Number of plaintiffs which filed lawsuit | plaintiff | 5 | |||||||
| Number of shares will issue to the plaintiffs | shares | 600,000 | 600,000 | ||||||
| Settlements in cash payable | $ 1,350 | $ 1,350 | ||||||
| Subsequent Events | ||||||||
| SUBSEQUENT EVENTS | ||||||||
| Period to correct delinquency | 30 days | |||||||
| Subsequent Events | Settlement of Iroquois Lawsuit | ||||||||
| SUBSEQUENT EVENTS | ||||||||
| Cash payment of settlements | $ 1,350 | |||||||
| Number of shares issued to plaintiffs | shares | 600,000 | |||||||
| Guinea concession | ||||||||
| SUBSEQUENT EVENTS | ||||||||
| Mutually acceptable security | $ 5,000 | $ 5,000 | ||||||
| Amount receivable, if extension well not drilled | $ 46,000 | |||||||
| Guinea concession | Subsequent Events | ||||||||
| SUBSEQUENT EVENTS | ||||||||
| Mutually acceptable security | $ 5,000 | $ 5,000 | ||||||
| Amount receivable, if extension well not drilled | $ 46,000 |