Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Nov. 15, 2017 | Dec. 31, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | HYPERDYNAMICS CORP | ||
Entity Central Index Key | 937,136 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 40,793,217 | ||
Entity Common Stock, Shares Outstanding | 35,572,445 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Current assets: | ||
Restricted cash | $ 75 | |
Unrestricted cash and cash equivalents | 2,454 | $ 10,327 |
Prepaid expenses | 35 | 1,294 |
Other current assets | 110 | 6 |
Total current assets | 2,674 | 11,627 |
Property and equipment, net of accumulated depreciation of $2,109 and $2,075 | 51 | 51 |
Total long-term assets: | 51 | 51 |
Total assets | 2,725 | 11,678 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 4,682 | 1,743 |
Total current liabilities | 4,682 | 1,743 |
Warrants derivative liability | 2,030 | |
Total Liabilities | 6,712 | 1,743 |
Commitments and contingencies (Note 8) | ||
Shareholders' (deficit) equity: | ||
Preferred stock, $0.001 par value; 20,000,000 authorized, 1,951 and 1,791 shares issued and outstanding as of June 30, 2017 and -0- issued and outstanding on June 30, 2016 | ||
Common stock, $0.001 par value, 87,000,000 shares authorized; 27,405,283 and 21,046,591 shares issued and outstanding as of June 30, 2017 and June 30, 2016, respectively | 175 | 169 |
Additional paid-in capital | 325,355 | 317,757 |
Accumulated deficit | (329,517) | (307,991) |
Total shareholders' (deficit) equity | (3,987) | 9,935 |
Total liabilities and shareholders' (deficit) equity | $ 2,725 | $ 11,678 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Accumulated depreciation | ||
Accumulated depreciation (in dollars) | $ 2,109 | $ 2,075 |
Preferred stock | ||
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 | 1,951 | 0 |
Preferred stock, shares outstanding | 1,791 | 0 |
Common stock | ||
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 | 27,405,283 | 27,405,283 |
Common stock, shares outstanding | 21,046,591 | 21,046,591 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Costs and expenses: | ||
Depreciation | $ 48 | $ 109 |
General, administrative and other operating | 12,323 | 8,406 |
Full-Cost ceiling test write-down | 13,316 | 14,331 |
Loss from operations | (25,687) | (22,846) |
Other income (expense): | ||
Gain on legal settlement | 4,764 | |
Cost of legal settlement | (1,308) | |
Unrealized gain on change in warrants derivative liability | 705 | |
Total other income (expense) | 4,161 | |
Loss before income tax | (21,526) | (22,846) |
Income tax | 0 | 0 |
Net loss | (21,526) | (22,846) |
Non-cash preferred dividend | (1,511) | |
Net loss available to common stockholders | $ (23,037) | $ (22,846) |
Basic and diluted loss per common share (in dollars per share) | $ (1.06) | $ (1.09) |
Weighted average shares outstanding - basic and diluted (in shares) | 21,765,985 | 21,046,591 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ (DEFICIT) EQUITY - USD ($) $ in Thousands | Common Stock | Preferred 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 | |||
Exercise of stock options (in shares) | 0 | ||||
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 | (21,526) | (21,526) | |||
Amortization of fair value of stock options | 190 | 190 | |||
Exercise of stock options | 121 | 121 | |||
Exercise of stock options (in shares) | 183,492 | ||||
Stock issued in lieu of cash bonus | 57 | $ 57 | |||
Stock issued in lieu of cash bonus (in shares) | 536,091 | 536,091 | |||
Stock issued for legal settlement | $ 1 | 1,307 | $ 1,308 | ||
Stock issued for legal settlement (in shares) | 600,000 | ||||
Stock issued for services | $ 1 | 999 | 1,000 | ||
Stock issued for services (in shares) | 567,859 | ||||
Common stock issued, net of fees | $ 4 | 3,606 | 3,610 | ||
Common stock issued, net of fees (in shares) | 4,335,625 | ||||
Preferred stock issued, net of fees, discount, and preferred dividends of $1,511 associated with the beneficial conversion feature | 1,238 | 1,238 | |||
Preferred stock issued, net of fees, discount, and preferred dividends of $1,511 associated with the beneficial conversion feature (in shares) | 1,951 | ||||
Conversion of preferred stock (in shares) | 135,625 | (160) | |||
Other | 80 | 80 | |||
Balance at Jun. 30, 2017 | $ 175 | $ 325,355 | $ (329,517) | $ (3,987) | |
Balance (in shares) at Jun. 30, 2017 | 27,405,283 | 1,791 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ (DEFICIT) EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Jun. 30, 2017USD ($) | |
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ (DEFICIT) EQUITY | |
Preferred dividends | $ 1,511 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (21,526) | $ (22,846) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Gain on legal settlement | (4,079) | |
Depreciation | 48 | 109 |
Loss on disposal of fixed assets | 1 | |
Full-Cost ceiling test write-down | 13,316 | 14,331 |
Unrealized gain on change in warrants derivative liability | (705) | |
Stock based compensation | 190 | 353 |
Stock issued in lieu of cash bonuses | 57 | |
Stock issued for settlement | 1,308 | |
Cost of equity issuance for warrants | 244 | |
Changes in operating assets and liabilities: | ||
(Increase) decrease in Prepaid expenses | 1,259 | (124) |
(Increase) decrease in Other current assets | (104) | 75 |
Increase (decrease) in Accounts payable and accrued expenses | (337) | 75 |
Net cash used in operating activities | (10,328) | (8,027) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (49) | |
Increase in restricted cash | (75) | |
Proceeds from sale of 50% interest to SAPETRO | 4,100 | |
Investment in oil and gas properties | (9,062) | (20) |
Net cash used in investing activities | (5,086) | (20) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Common stock issued, net of stock issuance cost of $664 | 5,666 | |
Preferred stock issued, net of stock issuance cost of $308 | 1,643 | |
Other | 111 | |
Proceeds from exercise of stock options | 121 | |
Net cash provided by financing activities | 7,541 | |
DECREASE IN CASH AND CASH EQUIVALENTS | (7,873) | (8,047) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 10,327 | 18,374 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 2,454 | $ 10,327 |
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ||
Capital expenditures in accounts payable at June 30, 2017 | 3,276 | |
Stock issued to Pacific Drilling in lieu of cash | 1,000 | |
Investor warrants issued as part of equity offerings (reduction to equity) | $ 2,492 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Common Stock | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |
Stock issuance costs | $ 664 |
Preferred Stock | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |
Stock issuance costs | $ 308 |
ORGANIZATION AND SIGNIFICANT AC
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2007 | |
Disclosure Text Block | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Nature of business 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’s branch located in Conakry, Guinea, 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 Corporation Ltd. 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 June 30, 2017, we had $2.5 million in unrestricted cash and $4.7 million in accounts payable and accrued expense liabilities. As of the date of this filing, the Company’s trade accounts payable and accrued expenses substantially exceeded our cash balances. We have no other material commitments other than ordinary operating costs. Our net working capital will not be sufficient to meet our corporate needs and Concession related activities for the year ending June 30, 2018. As of the date of this filing, our substantial working capital deficit, stockholders’ deficit and absence of cash inflows raise substantial doubt about our ability to continue as a going concern. We are currently pursuing several avenues to raise funds including the signing of a share purchase agreement for the sale of greater than 50% of our stock to CLNG for $6 million (See Note 9). These funds are not sufficient to pay off all of our existing trade debts, therefore, we have engaged in settlement discussions with our creditors. If we are successful in negotiating a settlement with our existing trade creditors, and if we complete the sale of our stock to CLNG, we will be able to pay down a substantial portion of our existing trade debts. If the transaction with CLNG closes, the net proceeds will not be sufficient to cover current operating expenses and, if the two-year appraisal period in Guinea for which we have applied is granted, will not be sufficient to fund operations for the appraisal program. To meet any capital and operational needs over the next twelve months, the company will have to raise additional funds through farm-out, debt, or equity financings, which may not be available on acceptable terms to us or at all. On August 15, 2016, we entered into a Settlement and Release Agreement with Dana Petroleum, PLC (“Dana”), a subsidiary of the Korean National Oil Corporation, and Tullow Guinea Ltd. (“Tullow”) (the “Settlement Agreement”) that returned to us 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 which is based upon $50,000 per million barrels upon declaration of the certified commercial reserves of the Fatala-1 well, if it resulted in a discovery. We executed a Second Amendment to the PSC (“Second PSC Amendment”) with the Government of Guinea on September 15, 2016, and received a Presidential decree that gave us a one-year extension to the second exploration period of the PSC to September 22, 2017 (“PSC Extension Period”) and became the designated operator of the Concession. In addition to clarifying certain elements of the PSC, we agreed in the Second PSC Amendment to drill one exploratory well to a minimum depth of 2,500 meters below the seabed within the PSC Extension Period (the “Extension Well”) with the option of drilling additional wells. The extension well is the Fatala-1 well. Fulfillment of this work obligations exempts us from the expenditure obligations during the PSC Extension Period. In turn, we retained an area equivalent to approximately 5,000-square kilometers in the Guinea offshore waters and took on the obligation to 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) certain guarantees. 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 $165.0 million net to our interest) and began to move into the territory of Guinea the long lead items we received in the Settlement Agreement that are currently stored in Takoradi, Ghana. 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. 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 approximately $0.25 million in addition to any unused portion of the training program under Article 10.3 of the PSC. The unused portion of the training program is now estimated to be approximately $0.2 million. We also agreed to allocate up to a maximum total budget of $120,000 for the actual travel and operating expenses incurred by Guinea for its participation in the management and administration of the Concession, subject to our review of receipts and limited to reimbursement of actual costs. The unused portion of this budget is now estimated to be $22,000. Finally, we agreed that we would make available for the benefit of Guinea a virtual data room containing all seismic data in our possession relating to relinquished areas. We would not be agents of or work on behalf of Guinea, but would provide, at the request of Guinea during the PSC Extension Period, access to the virtual data room to interested third parties. On March 30, 2017, we entered into the Farm-out Agreement with SAPETRO. On April 12, 2017 SCS, SAPETRO and Guinea executed a Third Amendment to the PSC (the "Third PSC Amendment") that was subject to the receipt of a Presidential Decree and the closing of the Farm-out Agreement. The Presidential Decree was signed on April 21, 2017 approving the assignment of 50% of SCS' participating interest in the Guinea concession to SAPETRO, and confirmed the two companies' rights to explore for oil and gas on our 5,000-square-kilometer Concession offshore the Republic of Guinea. The contract required that drilling operations in relation to the obligation well Fatala-1 (the "Extension Well") were to begin no later than May 30, 2017 and provided that additional exploration wells may be drilled within the exploration period at the companies' option. The Third PSC Amendment further reaffirmed clear title of SAPETRO and SCS to the Concession as well as amended the security instrument requirements under the PSC. SCS and SAPETRO agreed to joint and several liability to the Government of Guinea in respect to the PSC. SAPETRO and SCS further agreed that if SCS were unable to pay its share of any Fatala-1 well costs, SAPETRO could elect to pay for a portion of SCS's Fatala-1 well costs such amount so long as SCS is not in default of either the PSC or the Farmout Agreement. In case SAPETRO had made such payments for a share of SCS's costs of, SCS would have been obligated to assign to SAPETRO a 2% participating interest in the Concession for each $1 million of SCS's costs paid by SAPETRO. On May 21, 2017, drilling operations commenced upon the Pacific Scirocco drillship entering Guinean continental shelf waters. The Farmout Agreement was completed between the SCS and SAPETRO on June 2, 2017. Pursuant to the terms of the Farmout Agreement, SCS assigned and transferred to SAPETRO 50% of its 100% gross participating interest in the PSC and executed a Joint Operating Agreement. Upon closing, SAPETRO (i) reimbursed SCS its proportional share of past costs associated with the preparations for the drilling of the Fatala-1 well which amounted to $4.4 million, and (ii) agreed to pay its participating interest's share of future costs in the Concession. On June 5, 2017, SCS received $4.1 million from SAPETRO in accordance with a Preliminary Closing Statement delivered by SCS, thus completing closing of the Farm-out Agreement and the assignment to SAPETRO of the 50% participating interest in the PSC, the parties executed a Joint Operating Agreement governing the conduct of operations, and Hyperdynamics executed a parent guaranty of SCS's obligations as required by the Farm-out Agreement. On June 12, 2017, we delivered to SAPETRO a Final Adjustment Statement with the final calculation of past costs incurred by SCS in the amount of $0.7 million. After final review done by SAPETRO the Final Adjustment Statement was submitted to SAPETRO, under which SAPETRO paid to SCS $0.3 million. On July 12, 2017, we obtained a letter from the Director General of the National Office of Petroleum of Guinea stating that in the event of an oil discovery at the end of the drilling of the Fatala-1 well, the government would have no objection to granting an additional period of two years to enable us to carry out the work of appraisal on the Concession. On August 11, 2017, the actual drilling of the Fatala well commenced. The drilling operations were completed following a non-commercial discovery on September 8, 2017, and the Fatala-1 well was plugged and abandoned. We are awaiting the decision of the Government of Guinea on our appraisal application. There can be no assurance that such application will be approved, or if it is, that it will be on terms acceptable to us. If the Government of Guinea does not approve our appraisal period application, the PSC will have terminated by its terms on September 21, 2017. As more fully described in Note 6 , between March 17 and April 26, 2017, we held four closings of a private placement offering (the “Series A Offering”) of an aggregate of 1,951 Units of our securities, at a purchase price of $1,000 per Unit. Each “Unit” consisted of (i) one share of the Company’s 1% Series A Convertible Preferred Stock, with a stated value of $1,040 per share (“Stated Value”), and (ii) a warrant (the “Series A Investor Warrant”) to purchase 223 shares of the Company’s common stock, exercisable from issuance until March 17, 2019, at an exercise price of $3.50 per share (subject to adjustment in certain circumstances). At the closings, we issued to the subscribers an aggregate of: (i) 1,951 Units of Series A Preferred Stock and (ii) the Series A Investor Warrants to purchase an aggregate of 435,073 shares of common stock. The Company received an aggregate of approximately $2.0 million in gross cash proceeds, before deducting placement agent fees and expenses, legal, accounting and other fees and expenses, in connection with the sale of the Units in the Series A Offering. Katalyst Securities, LLC was engaged by the Company as placement agent (the “Placement Agent”) for the Series A Offering, on a reasonable best effort basis. We paid the Placement Agent a total of $0.2 million of cash fees and issued to the Placement Agent or its designees warrants (the “Placement Agent Warrants”) to purchase an aggregate of 51,650 shares of common stock. On June 5, 2017, we held a closing of a private placement offering (the "Common Unit Offering") of an aggregate of 4,335,625 Units of our securities, at a purchase price of $1.46 per Unit. Each "Unit" consisted of (i) one share of our common stock, and (ii) a warrant (the "Common Unit Investor Warrant") to purchase three quarters (3/4) of a share of the Company's common stock, exercisable for two years from issuance, at an exercise price of $1.825 per whole share (subject to adjustment in certain circumstances). At the closing, we issued to the subscribers an aggregate of: (i) 4,335,625 shares of common stock and (ii) Common Unit Investor Warrants to purchase an aggregate of 3,251,726 shares of common stock. The Company received an aggregate of approximately $ 6.3 million in gross cash proceeds, before deducting placement agent fees and expenses, legal, accounting and other fees and expenses, in connection with the sale of the Units. The Company engaged Katalyst Securities, LLC as Placement Agent for the Common Unit Offering, on a reasonable best effort basis. At that closing, we paid the Placement Agent $0.6 million of cash fees and issued to the Placement Agent or its designees warrants (“Common Unit Placement Agent Warrants’) to purchase an aggregate of 303,502 shares of common stock. On October 8, 2017, SAPETRO and Hyperdynamics agreed to a settlement of all of SAPETRO’s remaining obligations under the PSC and JOA for a payment to us of $4,924,000. Principles of Consolidation The accompanying 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 (“SEC”). 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 in the value of our warrants derivative liability, · estimates made in our income tax calculations, · estimates in the assessment of current litigation claims against the company, and · estimates and assumptions involved in our assessment of unproved oil and gas properties for impairment. We are subject 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 years presented, we maintained all of our cash in bank deposit accounts which, at times, exceed the federally insured limits. Oil and Gas Properties Full-Cost Method We account for oil and natural gas producing activities using the full-cost method of accounting as prescribed by the SEC. Accordingly, all costs incurred in the acquisition, exploration, and development of oil and natural gas properties, including the costs of abandoned properties, dry holes, geophysical costs and annual lease rentals are capitalized. All selling, general and administrative corporate costs unrelated to drilling activities are expensed as incurred. Sales or other dispositions of oil and natural gas properties are accounted for as adjustments to capitalized costs, with no gain or loss recorded unless the ratio of capitalized costs to proved reserves would significantly change, or to the extent that the sale proceeds exceed our capitalized costs. Depletion of evaluated oil and natural gas properties would be computed on the units of production method based on proved reserves. The net capitalized costs of proved oil and natural gas properties are subject to quarterly impairment tests. Costs Excluded from Amortization Costs associated with unproved properties are excluded from amortization until it is determined whether proved reserves can be assigned to the properties. We review our unproved properties at the end of each quarter to determine whether the costs incurred should be transferred to the amortization base. We assess unproved property on a quarterly basis for possible impairment or reduction in value. We assess properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term under our concession; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. We assess our unproved properties on a country-by-country basis. During any period in which these factors indicate an impairment, the adjustment is recorded through earnings of the period. Full-Cost Ceiling Test At the end of each quarterly reporting period, the capitalized costs less accumulated amortization and deferred income taxes shall not exceed an amount equal to the sum of the following items: (i) the present value of estimated future net revenues of oil and gas properties (including future development and abandonment costs of wells to be drilled) using prices based on the preceding 12-months’ average price based on closing prices on the first day of each month, or prices defined by existing contractual arrangements, discounted at 10%, (ii) the cost of properties not being amortized, and (iii) the lower of cost or estimated fair value of unproved properties included in the costs being amortized, less related income tax effects (“Full-Cost Ceiling Test”). The calculation of the Full-Cost Ceiling Test is based on estimates of proved reserves. There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting the future rates of production, timing, and plan of development. The accuracy of any reserves estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of drilling, testing, and production subsequent to the date of the estimate may justify revision of such estimates. Accordingly, reserves estimates are often different from the quantities of oil and natural gas that are ultimately recovered. We have no proved reserves. We recognized a $13.3 million and $14.3 million Full-Cost Ceiling test write-down in the years ended June 30, 2017 and June 30, 2016, respectively. Property and Equipment, other than Oil and Gas Property and equipment are stated on the basis of historical cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, generally three to five years. Income Taxes We account for income taxes in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, “Income Taxes,” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the tax and financial reporting basis of assets and liabilities and for loss and credit carryforwards. Valuation allowances are provided when recovery of deferred tax assets is not considered likely. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in our tax returns that do not meet these recognition and measurement standards. As of June 30, 2017 and 2016, the Company has unrecognized tax benefits totaling $5.5 million. Our policy is to recognize potential accrued interest and penalties related to unrecognized tax benefits within income tax expense. For the years ended June 30, 2017 and 2016, we did not recognize any interest or penalties in our consolidated statements of operations, nor did we have any interest or penalties accrued on our consolidated balance sheets at June 30, 2017 and 2016 relating to unrecognized benefits. The tax years 2011-2016 remain open to examination for federal income tax purposes and by the other major taxing jurisdictions to which we are subject. Stock-Based Compensation ASC 718, “Compensation-Stock Compensation” requires recognition in the financial statements of the cost of employee services received in exchange for an award of equity instruments over the period the employee is required to perform the services in exchange for the award (presumptively the vesting period). We measure the cost of employee services received in exchange for an award based on the grant-date fair value of the award. We account for non-employee share-based awards based upon ASC 505-50, “Equity-Based Payments to Non-Employees.” 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 a 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 years ended June 30, 2017, and 2016, respectively, as their effects are antidilutive due to our net loss for those periods. Stock options to purchase approximately 1.1 million common shares at an average exercise price of $3.19 were outstanding at June 30, 2017. Using the treasury stock method, had we had net income, approximately 25 thousand common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the year ended June 30, 2017. Stock options to purchase approximately 1.0 million common shares at an average exercise price of $7.43 were outstanding at June 30, 2016. Using the treasury stock method, had we had net income, approximately 25 thousand common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the year ended June 30, 2016. There were 1,791 Series A Preferred Stock units that were convertible at June 30, 2017. Using the treasury stock method, had we had net income, approximately 1,545,776 common shares attributable to our outstanding Series A Preferred Stock would have been included in the fully diluted earnings per share for the year ended June 30, 2017. There were no Series A Preferred Stock Units outstanding at June 30, 2016. 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 8 for more information on legal proceedings. 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. The three levels of valuation hierarchy are defined as follows: · Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. · Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. 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. As discussed further below the fair value of the warrants derivative liability was determined using the Binomial Option Pricing Model. The warrants derivative liability is carried on the balance sheet at its fair value. Significant Level 3 inputs used to calculate the fair value of the warrants include expected volatility, risk-free interest rate and expected dividends. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that Investor Warrants and Placement Agent Warrants issued in March, April, and June 2017 qualify as derivative financial instruments. These warrant agreements include provisions designed to protect holders from a decline in the stock price (‘down-round’ provision) by reducing the exercise price of warrants in the event we issue equity shares at a price lower than the exercise price of the warrants. Such down-round provisions were triggered upon issuance of our common shares in June 2017 and the exercise price of investor warrants associated with preferred stock was adjusted down accordingly and reflected in fair value measurement of such warrants as of June 30, 2017. These warrants are considered derivative liabilities and as such, are recorded at fair value at date of issuance and at each reporting date. The change in the fair value of derivative instruments during the period is recorded in earnings as “Other income (expense) — Gain (loss) on change in warrants derivative liability.” As such, we recorded an unrealized gain on the change in value of warrants derivative liability of $0.7 million to account for the change in fair value of our derivative liability compared to amount at issuance. We had no warrant derivative liability as of June 30, 2016. The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2017 (in thousands): Carrying Value at Fair Value Measurement at June 30, 2017 June 30, 2017 Level 1 Level 2 Level 3 Warrants derivative liability $ 2,030 $ — $ — $ 2,030 Summary information regarding the warrant derivative liability as of June 30, 2017 (in thousands): Warrant Derivative Liability Warrant derivative liability as of June 30, 2016 $ - Liabilities incurred 2,735 Unrealized gain (705) Warrant derivative liability as of June 30, 2017 $ 2,030 The following describes some of the key inputs into our fair value model as it relates to valuation of warrants. Expected Volatility The expected stock price volatility for the Company’s common stock was estimated by taking the average of the observed volatility of industry peers based on daily price observations. Industry peers consist of several public companies in the Company’s industry. The Company intends to continue to consistently apply this process using the same or similar public companies until a statistically significant amount of historical information regarding the volatility of its own share price becomes available, or unless circumstances change such that the identified companies are no longer similar to the Company, in which case, more suitable companies whose share prices are publicly available would be used in the calculation. Risk-Free Interest Rate The risk-free interest rate is based on the zero-coupon U.S. Treasury notes. Expected Dividend Yield The Company does not anticipate paying any dividends on the common stock in the foreseeable future and, therefore, uses an expected dividend yield of zero in the Binomial Option Pricing Model. Foreign currency gains and losses from current operations In accordance with ASC Topic 830, Foreign Currency Matters , the functional currency of our international subsidiaries is the U.S. Dollar. Gains and losses from foreign currency transactions arising from operating assets and liabilities are included in general, administrative and other operating expense, have not been significant. New Accounting Pronouncements In July 2017, the FASB issued Update No. 2017-11— Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. The Company has determined that Investor Warrants and Placement Agent Warrants issued in fiscal year 2017 qualify as derivative financial instruments. These warrant agreements include provisions designed to protect holders from a decline in the stock price (‘down-round’ provision) by reducing the exercise price of warrants in the event we issue equity shares at a price lower than the exercise price of the warrants. As a result of this down-round provision, these warrants are considered derivative liabilities and as such, are recorded at fair value at date of issuance and at each reporting date. Change in fair value of derivative instruments during the period are recorded in earnings as “Other income (expense) — Gain (loss) on warrants derivative liability.” The Company is in the process of evaluating this new update and whether to early adopt this amendment. In August 2014, the FASB issued ASU No. 2014-15 “Presentation of Financial Statements: Subsequent Events The Company evaluated all subsequent events from June 30, 2017 through the date of issuance of these financial statements. See Note 9 . |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block | |
PROPERTY AND EQUIPMENT | 2. PROPERTY AND EQUIPMENT A summary of property and equipment as of June 30, 2017 and 2016 is as follows: June 30, (in thousands) Useful Life 2017 2016 Computer equipment and software 3 years $ 1,319 $ 1,285 Office equipment and furniture 5 years 307 307 Leasehold improvements 3 years 534 534 Total Cost 2,160 2,126 Less - Accumulated depreciation (2,109) (2,075) $ 51 $ 51 We review assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. As of June 30, 2017 and 2016, there were no impairments of property and equipment. |
INVESTMENT IN OIL AND GAS PROPE
INVESTMENT IN OIL AND GAS PROPERTIES | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block | |
INVESTMENT IN OIL AND GAS PROPERTIES | 3. INVESTMENT IN OIL AND GAS PROPERTIES Investment in oil and gas properties consists entirely of our Guinea Concession in offshore West Africa. We owned a 37% participating interest in our Guinea Concession prior to the relinquishment of a 40% share owned by Tullow and a 23% interest owned by Dana. On June 2, 2017, we completed the sale of a 50% gross interest to SAPETRO. On September 19, 2017, SAPETRO notified us that it did not wish to participate in the application for the two-year appraisal program and formally withdrew from the Joint Operating Agreement (“JOA”) and PSC on September 20, 2017. On the basis of a five-meter calculated hydrocarbon pay zone encountered in the Fatala-1 well, we applied for a two-year appraisal period on a 100% basis on September 19, 2017 and we are awaiting the decision of the Government of Guinea on our appraisal application. If the Government of Guinea does not approve our appraisal period application, the PSC will have terminated by its terms on September 21, 2017. Guinea Concession We have been conducting exploration work related to offshore Guinea since 2002. On September 22, 2006, we entered into the PSC with Guinea. Under that agreement, we were granted certain exclusive contractual rights to explore and exploit offshore oil and gas reserves, if any, off the coast of Guinea. We refer to the rights to the offshore area subject to the Concession as the "Contract Area." On March 25, 2010, we entered into the First PSC Amendment with Guinea. In May 2010, the government of Guinea issued a Presidential Decree approving the PSC, as amended by the First PSC Amendment. The First PSC Amendment clarified that we retained a Contract Area of approximately 25,000 square kilometers or 30% of the original Contract Area under the PSC. The First PSC Amendment required that an additional 25% of the retained Contract Area be relinquished by September 21, 2013 as part of the renewal of the second exploration period. As of June 30, 2016, the Contract Area was 18,750 square kilometers. Under the terms of the First PSC Amendment, the first exploration period ended and the second exploration period began on September 21, 2010. The second exploration period ran until September 2013, at which point it was renewed to September 2016. The First PSC Amendment required the drilling of an exploration well, which had to be commenced by year-end 2011 and drilled to a minimum depth of 2,500 meters below seabed. This requirement was satisfied with the drilling of the Sabu-1 well which was commenced during October of 2011 and reached the minimum depth of 2,500 meters below the seabed in February of 2012. It also required the acquisition of at least 2,000-square kilometers of 3D seismic data which was satisfied by the 3,600-square kilometer seismic acquisition in 2010-2011. To satisfy the September 2013-2016 work requirement, the Consortium is required to commence drilling of an additional exploration well by the end of September 2016, to a minimum depth of 2,500 meters below seabed. We spent approximately $200 million fulfilling work obligations under the PSC through fiscal 2016. Under the First PSC Amendment, Guinea may participate in development of any discovery at a participating interest of up to 15% of costs being carried for its share. The cost of that carry is to be recovered out of 62.5% of Guinea's share of cost and profit oil. It also required the establishment of an annual training budget for the benefit of Guinea's oil industry personnel, and obligated the Consortium to pay an annual surface tax of $2.00 per square kilometer on the retained Concession acreage. The First PSC Amendment further provided that should the Guinea government note material differences between provisions of the First PSC Amendment and international standards or the Petroleum Code, the parties will renegotiate the relevant articles. On September 15, 2016, we executed the Second PSC Amendment in which we received a one (1) year extension to the second exploration period of the PSC to September 21, 2017 and confirmed that we are the holder of a 100% interest in the Concession following the official withdrawal by Tullow and Dana on August 15, 2016. The Second PSC Amendment became effective upon the receipt of a Presidential Decree on September 22, 2016. We executed a Second Amendment to the PSC ("Second PSC Amendment") on September 15, 2016, and received a Presidential Decree on September 22, 2016 that gave us a one-year extension to the second exploration period of the PSC to September 22, 2017 ("PSC Extension Period") and became the designated Operator of the Concession. In addition to clarifying certain elements of the PSC, we agreed in the Second PSC Amendment to drill one exploratory well to a minimum depth of 2,500 meters below the seabed within the PSC Extension Period (the "Extension Well") with a projected commencement date of May 2017 and the option of drilling additional wells. Fulfillment of the work obligations exempts us from the expenditure obligations during the PSC Extension Period. In turn, we retained an area equivalent to approximately 5,000 square kilometers in the Guinea offshore waters and were obliged to 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) certain guarantees to Guinea. For the purposes of calculation for this clause (Article 4 of the PSC), however, only costs spent for services and goods provided in Guinea were to 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. Additionally, we agreed to limit the cost recovery pool to that date to our share of expenditures in the PSC since 2009 (estimated to be approximately $165,000,000 net to our interest). 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. The unused portion of the training program is now estimated to be approximately $221,000. We also agreed to allocate up to a maximum total budget of $120,000 for the actual travel and operating expenses incurred by Guinea for its participation in the management and administration of the Concession, subject to our review of receipts and limited to reimbursement of actual costs. The unused portion of this budget is now estimated to be $22,000. Finally, we agreed that we would make available for the benefit of Guinea a virtual data room containing all seismic data in our possession relating to relinquished areas. We would not be agents of or work on behalf of Guinea, but would provide, at the request of Guinea during the PSC Extension Period, access to the virtual data room to interested third parties. On March 30, 2017, we entered into the Farm-out Agreement with SAPETRO. On April 12, 2017 SCS, SAPETRO and Guinea executed a Third Amendment to the PSC (the "Third PSC Amendment") that was subject to the receipt of a Presidential Decree and the closing of the Farm-out Agreement. The Presidential Decree was signed on April 21, 2017 approving the assignment of 50% of SCS' participating interest in the Guinea concession to SAPETRO, and confirmed the two companies' rights to explore for oil and gas on our 5,000-square-kilometer Concession offshore the Republic of Guinea. The contract required that drilling operations in relation to the obligation well Fatala-1 (the "Extension Well") were to begin no later than May 30, 2017 and provided that additional exploration wells may be drilled within the exploration period at the companies' option. The Third PSC Amendment further reaffirmed clear title of SAPETRO and SCS to the Concession as well as amended the security instrument requirements under the PSC. SCS and SAPETRO agreed to joint and several liability to the Government of Guinea in respect to the PSC. SAPETRO and SCS further agreed that if SCS were unable to pay its share of any Fatala-1 well costs, SAPETRO could elect to pay for a portion of SCS's Fatala-1 well costs such amount so long as SCS is not in default of either the PSC or the Farmout Agreement. In case SAPETRO had made such payments for a share of SCS's costs of, SCS would have been obligated to assign to SAPETRO a 2% participating interest in the Concession for each $1 million of SCS's costs paid by SAPETRO. On May 21, 2017, drilling operations commenced upon the Pacific Scirocco drillship entering Guinean continental shelf waters. The Farmout Agreement was completed between the SCS and SAPETRO on June 2, 2017. Pursuant to the terms of the Farmout Agreement, SCS assigned and transferred to SAPETRO 50% of its 100% gross participating interest in the PSC and executed a Joint Operating Agreement. Upon closing, SAPETRO (i) reimbursed SCS its proportional share of past costs associated with the preparations for the drilling of the Fatala-1 well which amounted to $4.4 million, and (ii) agreed to pay its participating interest's share of future costs in the Concession. On June 5, 2017, SCS received $4.1 million from SAPETRO in accordance with a Preliminary Closing Statement delivered by SCS, thus completing closing of the Farm-out Agreement and the assignment to SAPETRO of the 50% participating interest in the PSC, the parties executed a Joint Operating Agreement governing the conduct of operations, and Hyperdynamics executed a parent guaranty of SCS's obligations as required by the Farm-out Agreement. On June 12, 2017, we delivered to SAPETRO a Final Adjustment Statement with the final calculation of past costs incurred by SCS in the amount of $0.7 million. After final review done by SAPETRO the Final Adjustment Statement was submitted to SAPETRO, under which SAPETRO paid to SCS $0.3 million. On July 12, 2017, we obtained a letter from the Director General of the National Office of Petroleum of Guinea stating that in the event of an oil discovery at the end of the drilling of the Fatala-1 well, the government would have no objection to granting an additional period of two years to enable us to carry out the work of appraisal on the Concession. On August 11, 2017, the actual drilling of the Fatala well commenced. The drilling operations were completed on September 8, 2017 and the Fatala-1 well was plugged and abandoned. We applied to the government of Guinea for a two-year appraisal program of the Concession pursuant to Article 3.7 of our PSC on a 100% basis following SAPETRO’s vote by notice not to participate in the appraisal application. SAPETRO formally exited from the JOA and the PSC on September 20, 2017. We are awaiting the decision of the Government of Guinea on our appraisal application. There can be no assurance that such application will be approved, or if it is, that it will be on terms acceptable to us. If the Government of Guinea does not approve our appraisal period application, the PSC will have terminated by its terms on September 21, 2017. After recovery cost of operations, revenue will be split as outlined in the table below: Daily production (b/d) Guinea Share Contractor Share From 0 to 2,000 25 % 75 % From 2,001 to 5,000 30 % 70 % From 5,001 to 100,000 41 % 59 % Over 100,001 60 % 40 % The Guinea Government may elect to take a 15% working interest in any exploitation area. Accounting for oil and gas property and equipment costs We follow the “Full-Cost” method of accounting for oil and natural gas property and equipment costs. Under this method, internal costs incurred that are 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. 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 results and available geological and geophysical information. If petroleum operations are not commenced soon, our ability to obtain additional financing and our financial condition will be adversely affected, which will likely impact our ability to conduct exploration. No reserves have been attributed to the concession. We exclude capitalized costs of unproved oil and gas properties from amortization until evaluated. Geological and geophysical information pertaining to the Guinea concession was collected and evaluated and no reserves have been attributed to the Concession. In February 2012, we completed the drilling of the Sabu-1 well, which was determined to be non-commercial. As a result, we evaluated certain geological and geophysical related costs in unproved properties along with the drilling costs of the Sabu-1 well totaling $116.8 million and determined that these properties were subject to the Full-Cost Ceiling Test. As we have no proved reserves to include in the Full-Cost Ceiling Test, the entire $116.8 million resulted in a Full-Cost Ceiling Test write-down of our unproved oil and gas properties. At June 30, 2016, based on our impairment assessment, we fully impaired the $14.3 million of unproved oil and gas properties. This impairment assessment was based on the continued impasse by our members of the Consortium to resume petroleum operations and drill the next exploration obligation well, which needed to be commenced by the end of September 2016, and our inability 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. Thus, we believed all legal measures to require Tullow and Dana to drill the planned exploration well had been exhausted. In fiscal year 2017, we impaired unproven oil and gas properties due to uncertainties surrounding the ability of the Company to continue operations and following the determination of non-commerciality of the Fatala-1 well ultimately fully impaired unproven oil and gas properties. The following table provides detail of total capitalized costs for our Guinea Concession as of June 30, 2017 and 2016 (in thousands): June 30, June 30, 2017 2016 Oil and Gas Properties: Unproved oil and gas Properties $ — $ — |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 4. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses as of June 30, 2017 and 2016 include the following (in thousands): 2017 2016 Accounts payable – trade $ 4,010 $ 1,361 Other Accrued 672 382 $ 4,682 $ 1,743 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block | |
INCOME TAXES | 5. INCOME TAXES Federal Income taxes are not currently due since Hyperdynamics has had losses since inception. Components of deferred tax assets as of June 30, 2017 and 2016 are as follows (in thousands): 2017 2016 Current deferred tax assets: Other current deferred tax assets $ — $ — Total current temporary differences — — Less: valuation allowance — — Net current deferred tax assets $ — $ — Non-current deferred tax assets Stock compensation $ 2,470 $ 2,464 Property and Equipment 15 69 Oil and gas properties 13,582 21,504 Capital loss 144 144 Other 111 — Total non-current deferred tax assets $ 16,322 $ 24,181 Non-current deferred tax liabilities Property and Equipment — — Net operating losses 40,281 36,138 56,603 60,319 Less: valuation allowance (56,603) (60,319) Net non-current deferred tax assets (liabilities) $ — $ — Deferred tax assets have been fully reserved due to determination that it is more likely than not that the Company will not be able to realize the benefit from them. In accordance with generally accepted accounting principles, no deferred income tax asset has been recognized for the $130 million excess of the income tax basis in SCS, the Company’s Cayman Island operating subsidiary, over the book basis of the subsidiary. This potential tax benefit will only be fully realized if the subsidiary or the Concession is sold at a taxable gain, subject to potential tax limitations. Hyperdynamics has U.S. net operating loss carryforwards of approximately $127.4 million at June 30, 2017. The U.S. net operating losses contain excess tax benefits related to stock compensation in the amount of $2.2 million which have not been included in the financial statements. Internal Revenue Code Section 382 restricts the ability to use these carryforwards whenever an ownership change, as defined, occurs. Hyperdynamics incurred such an ownership change on January 14, 1998 and again on June 30, 2001. As a result of the first ownership change, Hyperdynamics’ use of net operating losses as of January 14, 1998, of $0.9 million, is restricted to $0.2 million per year. The availability of losses from that date through June 30, 2001 of $3.3 million is restricted to $0.8 million per year. The Company underwent a restructuring during fiscal 2012 that removed approximately $13.3 million of net operating losses from the U.S. consolidated tax return. It is unlikely that the entity where these net operating losses reside will ever generate U.S. taxable income sufficient to utilize any of these losses. Due to the existence of the valuation allowance, it is not expected that any possible limitation will have an impact on the results of operations or financial position of the Company. The U.S. net operating loss carryforwards expire from 2020 to 2035. The difference between the statutory tax rates and our effective tax rate is primarily due to the valuation allowance applied against our deferred tax assets generated by net operating losses. A reconciliation of the actual taxes to the U.S. statutory tax rate for the years ended June 30, 2017 and 2016 is as follows (in thousands): 2017 2016 Income tax (benefit) at the statutory federal rate (35%) $ (7,534) $ (7,996) Increase (decrease) resulting from nondeductible stock compensation 38 56 Foreign Rate Differential (330) 914 Disallowed foreign capital loss 12,136 — Derivative loss (247) 35 Other, net (323) — Change in valuation allowance (3,740) 6,991 Net income tax expense $ — $ — The following table summarizes the activity related to our gross unrecognized tax benefits from July 1, 2015 to June 30, 2017 (in thousands): Federal, State and Foreign Tax (In thousands) Balance at July 1, 2015 $ 5,485 Additions to tax positions related to the current year — Additions to tax positions related to prior years — Statute expirations — Balance at June 30, 2016 $ 5,485 Additions to tax positions related to the current year — Additions to tax positions related to prior years — Statute expirations — Balance at June 30, 2017 $ 5,485 The total unrecognized tax benefits that, if recognized, would affect our effective tax rate was $5,485,000 for the years ended June 30, 2017 and June 30, 2016. We file income tax returns, including tax returns for our subsidiaries, with federal, state, local, and foreign jurisdictions. Our tax returns are subject to routine compliance review by the taxing authorities in the jurisdictions in which we file tax returns in the ordinary course of business. We consider the United States to be our most significant tax jurisdiction; however, the taxing authorities in Guinea may audit various tax returns. We currently have no ongoing federal or state audits. The normal statute of limitations for tax returns being available for IRS audit is three years from the filing date of the return. However, net operating losses are subject to adjustment upon utilization of the loss to offset taxable income regardless of when the net operating loss was generated. Therefore, all of our historic losses are subject to adjustment until they are utilized or expire. We do not believe there will be any decreases to our unrecognized tax benefits within the next twelve months. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block | |
SHAREHOLDERS' EQUITY | 6. SHAREHOLDERS’ EQUITY Preferred Stock issuances Series A Preferred Stock Offering On March 17, 2017, we held the first closing of the Series A Offering of 680 Units of our securities, at a purchase price of $1,000 per Unit and on March 28, 2017, we consummated a second closing of the Series A Offering and issued and sold an additional 511 Units of our securities, at a purchase price of $1,000 per Unit. On April 18, 2017, we consummated a third closing of the Series A Offering and issued and sold additional 710 Units of our securities, at a purchase price of $1,000 per Unit. On April 26, 2017, we consummated a fourth closing of the Series A Offering and issued and sold additional 50 Units of our securities at a purchase price of $1,000 per Unit. Each “Unit” consisted of (i) one share of the Company’s Series A Preferred Stock, and (ii) the Series A Investor Warrant. We entered into subscription agreements for the Units (the “Subscription Agreements”) with certain accredited investors (as such term is defined in the Rule 501 under the Securities Act of 1933, as amended (the “Securities Act”) (the “Subscribers”). The subscription agreements contained customary representations and warranties of the Company and the Subscribers, and indemnification of the Company and the Placement Agent by the Subscribers. The Company received an aggregate of approximately $2.0 million in gross cash proceeds, before deducting placement agent fees and expenses, legal, accounting and other fees and expenses, in connection with the sale of the Units. The Company used the net proceeds of approximately $1.6 million from the sale of the Units for general corporate purposes and to further its business interests in the Republic of Guinea, including, but not limited to the drilling of an exploration well on the Company’s offshore Concession. At the March 17, 2017 closing, we issued to the Subscribers an aggregate of: (i) 680 Units of Series A Preferred Stock and (ii) Series A Investor Warrants to purchase an aggregate of 151,640 shares of common stock and at the March 28, 2017 closing we issued to the Subscribers an aggregate of (i) 511 Units of Series A Preferred Stock and (ii) Series A Investor Warrants to purchase an aggregate of 113,953 shares of common stock. At the April 18, 2017 closing, we issued to the Subscribers an aggregate of (i) 710 shares of Series A Preferred Stock and (ii) Series A Investor Warrants to purchase an aggregate of 158,330 shares of common stock. At the April 26, 2017 closing, we issued to the Subscribers an aggregate of (i) 50 shares of Series A Preferred Stock and (ii) Series A Investor Warrants to purchase an aggregate of 11,150 shares of Common Stock. Subscribers in the Offering had an option (the “Subscriber Option”) to purchase their pro rata share of up to an aggregate of $3,000,000 in additional Units following the effective date of the registration statement registering for resale the shares of Common Stock issuable upon conversion of the Series A Preferred Stock and exercise of the Investor Warrants and Placement Agent Warrants, which we filed on May 1, 2017 and amended on May 18, 2017, June 7, 2017, and June 20, 2017. See Note 9 for the subscriber option exercises. On March 17, 2017, the Company filed a Certificate of Designations, Preferences and Rights of Series A Convertible Preferred Stock (the “Certificate of Designations”) with the Secretary of State of the State of Delaware, authorizing, and establishing the voting powers, designations, preferences, limitations, restrictions and relative rights of, the Series A Preferred Stock. The Certificate of Designations was adopted by resolution of the Company’s board of directors pursuant to the Company’s Certificate of Incorporation, as amended, which vests in the Company’s board of directors with the authority to provide for the authorization and issuance of one or more series of preferred stock of the Company within the limitations and restrictions set forth therein. The Certificate of Designations contains the following key terms: · Each holder of Series A Preferred Stock is entitled to receive dividends payable on the Stated Value of such Series A Preferred Stock at the rate of 1% per annum, which shall be cumulative and be due and payable in Common Stock on the applicable conversion date or in cash in the case of a redemption of the Series A Preferred Stock by the Company. · Shares of Series A Preferred Stock are redeemable, in whole or in part, at the option of the Company, in cash, at a price per share equal to 115% of the Stated Value plus 115% of accrued but unpaid dividends. · In the event of any liquidation, dissolution or winding up of the Company, holders of Series A Preferred Stock will be entitled to receive, out of assets available therefor, an amount equal to 115% of the Stated Value of their shares plus 115% of any accrued but unpaid dividends. · The Series A Preferred Stock is convertible at the option of the holder, in whole or in part, into shares of Common Stock at any time after the earlier of (i) the date the Registration Statement is declared effective by the SEC or (ii) six months after the date of the closing. If no conversion has taken place within nine months after the date of the closing, the Series A Preferred Stock, plus any accrued but unpaid dividends, will automatically convert into shares of Common Stock. · The conversion price per share of common stock in either event is the lesser of (i) $2.75 per share (subject to adjustment in certain circumstances), or (ii) 80% of the lowest closing price during 21 consecutive trading days ending on the trading day immediately prior to the conversion date, subject to a floor of $0.25 per share (which floor is subject to “full ratchet” adjustment in certain circumstances if we issue Common Stock (or Common Stock equivalents) in the aggregate amount of not less than $1.0 million at a price below $0.25 per share of Common Stock, and to proportionate adjustment in certain other circumstances). · Except in certain limited circumstances affecting the rights of the holders of Series A Preferred Stock or as required by law, holders of the Series A Preferred Stock will not have voting rights. · Until the date that is six months following the date of the closing, the Company will not authorize or create any class of stock ranking as to dividends, redemption or distribution of assets upon a liquidation senior to the Series A Preferred Stock, without the consent of holders of no less than 66 2 / 3 % of the then-outstanding shares of Series A Preferred Stock. We also agreed in the Subscription Agreements that until the date that is 12 months following the closing, we will not create or allow to be created any security interest, lien, charge or other encumbrance on any of our or our subsidiaries’ rights under or interests in the PSC, as amended, that secures the repayment of indebtedness of the Company or any of its subsidiaries for money borrowed. The Company engaged Katalyst Securities, LLC as Placement Agent for the Series A Offering, on a reasonable best effort basis. We agreed to pay to the Placement Agent (and any sub agent) a cash commission of 9% of the gross purchase price paid by the Subscribers for the Units (including for Units that may be issued upon exercise of the Subscriber Option), and to issue to the Placement Agent (and any sub agent) warrants to purchase a number of shares of common stock equal to 7% of the number of shares of common stock initially issuable upon conversion of the shares of Series A Preferred Stock at a fixed price of $2.75 per share contained in the Units sold in Series A Offering (including Units that may be issued upon exercise of the Subscriber Option), at the exercise price of $3.00 per share (the “Placement Agent Warrants”). We also agreed to reimburse the Placement Agent for certain expenses related to the Series A Offering. At the March 17, 2017 closing, we paid the Placement Agent $61,200 of cash fees and issued to the Placement Agent or its designees Placement Agent Warrants to purchase an aggregate of 18,002 shares of common stock. At the March 28, 2017 closing, $45,990 of cash fees were paid and Placement Agent Warrants to purchase an aggregate of 13,528 shares of common stock were issued to the Placement Agent or its designees. In conjunction with the April 18, 2017 and April 26, 2017 closing, we paid the Placement Agent $68,400 of cash fees and issued to the Placement Agent or its designees Placement Agent Warrants to purchase an aggregate of 20,120 shares of common stock. The Placement Agency Agreement between the Company and the Placement Agent contains customary representations, warranties and covenants of and indemnifications by the parties. Series A Investor Warrants – Series A Offering The exercise price is subject to weighted average anti-dilution provisions. The Series A investor warrants are exercisable at any time at the option of the holder until the second annual anniversary of the first closing of the financing which was March 17, 2017. The combined fair value of the Series A investor warrants is estimated to be $0.1 million as of June 30, 2017. The following are weighted average assumptions: June 30, 2017 Expected term (in years) 1.75 Expected volatility% 75 % Risk-free interest rate% 1.34 % Expected dividend yield% — % Placement Agent Warrants – Series A Offering As part of the placement agent’s fees, the Placement Agent received warrants to purchase 51,650 shares of the Company’s stock at the exercise price of $3.00 per share in connection with these four closings of the Series A Offering. The exercise price is subject to weighted average anti-dilution provisions. The Placement Agent Warrants are exercisable at any time at the option of the holder until the second annual anniversary of the first closing of the financing which was March 17, 2017. The Company estimated the aggregate fair value of the Series A warrants issued to the placement agent to be $15,029 as of June 30, 2017. The fair value of placement agent warrants which was not material at the issuance date, was considered part of total equity issuance cost and allocated between reduction to additional paid-in capital and expense based on relative values of investor warrants and preferred stock relative to proceeds from issuance. The Series A Placement Agent Warrants were valued using the following weighted average assumptions: June 30, 2017 Expected term (in years) 1.75 Expected volatility% 75 % Risk-free interest rate% 1.34 % Expected dividend yield% — % The Series A Investor Warrants and the Placement Agent Warrants have provisions for the “weighted average” adjustment of their exercise price in the event that we issue shares of common stock (or common stock equivalents) for a consideration per share less than the exercise price then in effect, subject to certain exceptions. On March 28, 2017, we also entered into an amendment to the Subscription Agreements (the “Amendment”) with Subscribers that purchased the Units in the initial closing of the Offering on March 17, 2017, and with the Subscribers in this closing, to expand the scope of a right of first refusal contained in the Subscription Agreement. As so amended, the Subscription Agreement provides that if, following the termination of the Offering and prior to December 17, 2017, the Company determines to offer for sale or to accept an offer to purchase any additional shares of common stock or securities convertible into or exercisable or exchangeable for shares of common stock (subject to certain limitations and adjustments described therein) for consideration consisting of cash and/or outstanding debt of the Company, each Subscriber who previously purchased Units in the Offering will have an option to purchase such Subscriber’s pro rata share of such securities on the same terms and conditions on which such securities are proposed to be issued, exercisable on the terms set forth in the Subscription Agreement. Beneficial Conversion Feature For the March 17, 2017 and the March 28, 2017 closing of the Series A Offering, the Company determined that the conversion feature in the Preferred Stock represented a beneficial conversion feature. The fair value of the common stock ranging from $1.60 to $1.75 per share on the Commitment Dates was greater than the effective conversion price of $0.47 per share of common stock, representing a beneficial conversion feature of $2.6 million in aggregate. Since the intrinsic value of the beneficial conversion feature is greater than the proceeds allocated to the convertible instrument, the amount of the reduction (the “Discount”) assigned to the beneficial conversion feature was limited to the amount of the proceeds allocated to the convertible instrument. A total of $1.2 million was recorded as the Discount to additional paid-in capital. The Discount resulting from the allocation of value to the beneficial conversion feature is required to be amortized on a non-cash basis from the issuance date over a six-month period, or fully amortized upon an accelerated date of redemption or conversion, and recorded as a preferred dividend. For the April 18, 2017 and the April 26, 2017 closing of the Series A Offering, the Company determined that the conversion feature in the Preferred Stock represented a beneficial conversion feature. The fair value of the common stock ranging from $1.46 to $1.75 per share on the Commitment Dates was greater than the effective conversion price of $0.80 to $0.87 per share of common stock, representing a beneficial conversion feature of $0.5 million in aggregate. A total of $0.7 million was recorded as the Discount to additional paid-in capital. The Discount resulting from the allocation of value to the beneficial conversion feature is required to be amortized on a non-cash basis from the issuance date over a six-month period, or fully amortized upon an accelerated date of redemption or conversion, and recorded as a preferred dividend. The S-1 Registration Statement (SEC File No. 333-217577) that we filed on May 1, 2017 and subsequently amended on May 18, 2017, June 7, 2017, and June 20, 2017, and which was declared effective by the SEC on June 22, 2017, triggered the full amortization of the beneficial conversion feature for the quarter and year ended June 30, 2017. Accordingly, a preferred dividend of $1.5 million was recorded as a reduction to additional paid in capital since the Company has no retained earnings. Common Stock issuances Shares issued for services In consideration for the Drilling Contract Amendment and taking into account certain significant costs incurred by Pacific Scirocco while waiting for SCS to agree terms of the Farm-out Agreement with SAPETRO and the Third Amendment to the Production Sharing Contract between SCS and the Government of the Republic of Guinea, the Company agreed to issue to Pacific Drilling Operations a number of shares of our common stock equal to $1.0 million divided by the volume-weighted average price for the ten trading days preceding the date of the agreement, which was June 2, 2017. Under this agreement the issuance price was calculated at $1.761 per share, and 567,859 unregistered shares of our common stock were delivered to Pacific Drilling Operations within 10 business days. Conversion of Series A Preferred Stock During the year ended June 30, 2017, a total of 135,625 shares of common stock were issued upon the conversion of 160 shares of Series A Preferred Stock. Common Unit Offering On June 5, 2017, the Company held a first closing of the Common Unit Offering of 4,335,625 Units of our securities, at a purchase price of $1.46 per Unit. The Company received an aggregate of approximately $ 6.3 million in gross cash proceeds, before deducting placement agent fees and expenses, legal, accounting and other fees and expenses, in connection with the sale of the Units. Katalyst Securities, LLC, was engaged by the Company as Placement Agent for the Common Unit Offering, on a reasonable best effort basis. We agreed to pay to the Placement Agent (and any sub agent) a cash commission of 9% of the gross purchase price paid by the Subscribers for the Units, and to issue to the Placement Agent (and any sub agent) warrants to purchase a number of shares of common stock equal to 7% of the number of shares of common stock contained in the Units sold in the Common Unit Offering, at the exercise price of $1.825 per share (the "Common Unit Placement Agent Warrants"). We also agreed to reimburse the Placement Agent for certain expenses related to the Common Unit Offering. We paid the Placement Agent a total of $0.6 million of cash fees and issued to the Placement Agent or its designees Common Unit Placement Agent Warrants to purchase an aggregate of 303,502 shares of common stock. Investor Warrants - Common Unit Offering As part of the Common Unit Offering, each "Unit" consisted of (i) one share of our common stock, and (ii) (the Common Unit Investor Warrant to purchase three quarters ( 3 / 4 ) of a share of our common stock, exercisable for two years from issuance, at an exercise price of $1.825 per whole share (subject to adjustment in certain circumstances). We entered into subscription agreements (the “Subscription Agreements”) for the Units with certain accredited investors (as such term is defined in the Rule 501 under the Securities Act). The Subscription Agreements contained customary representations and warranties of the Company and the subscribers, and indemnification of the Company and the Placement Agent by the subscribers. At that closing, we issued to the subscribers an aggregate of: (i) 4,335,625 shares of common stock and (ii) Common Unit Investor Warrants to purchase an aggregate of 3,251,726 shares of common stock. The exercise price is subject to weighted average anti-dilution provisions. The Common Unit Investor Warrants are exercisable at any time at the option of the holder until the second annual anniversary of the common unit closing of the financing which was June 5, 2017. The fair value of the Common Unit Investor Warrants is estimated to be $1.7 million as of June 30, 2017. The following are weighted average assumptions: June 30, 2017 Expected term (in years) 1.93 Expected volatility% 76 % Risk-free interest rate% 1.37 % Expected dividend yield% — % Placement Agent Warrants – Common Unit Offering As part of the placement agent’s fees, the Placement Agent received Common Unit Placement Agent Warrants to purchase 303,502 shares of the Company’s stock at the exercise price of $1.825 per share. The exercise price is subject to weighted average anti-dilution provisions. These placement agent warrants are exercisable at any time at the option of the holder until the second annual anniversary of the closing of the common unit offering which was June 5, 2017. The Company estimated the fair value of the warrants issued to the placement agent to be $161,410 as of June 30, 2017. The fair value of warrants at issuance date of $201,000 was considered part of total equity issuance cost and allocated between reduction to additional paid-in capital and expense based on relative values of investor warrants and common stock relative to proceeds from issuance. The Common Unit Placement Agent Warrants were valued using the following weighted average assumptions: June 30, 2017 Expected term (in years) 1.93 Expected volatility% 76 % Risk-free interest rate% 1.37 % Expected dividend yield% — % The Common Unit Investor Warrants and the Common Unit Placement Agent Warrants have provisions for the "weighted average" adjustment of their exercise price in the event that we issue shares of common stock (or common stock equivalents) for a consideration per share less than the exercise price then in effect, subject to certain exceptions. Registration Rights The Series A Registration Rights Agreement In connection with the Series A Offering, we entered into the Series A Registration Rights Agreement with each of the subscribers for the Series A Preferred Stock and the holders of the Series A Placement Agent Warrants, which required the Company to file a Registration Statement with the SEC by May 1, 2017, registering for resale (i) all shares of common stock issued or issuable upon conversion of the Series A Preferred Stock (including any shares of Series A Preferred Stock issued pursuant to the Subscriber Option) and (ii) all shares of common stock issued or issuable upon exercise of the Series A Investor Warrants (including any Series A Investor Warrants issued pursuant to the Subscriber Option described above) and the Placement Agent Warrants (including any that may be issued upon exercise of the Subscriber Option), and to use our commercially reasonable efforts to cause the Registration Statement to be declared effective no later than July 29, 2017. On May 1, 2017, we filed a registration statement in compliance with the agreement, which became effective on June 22, 2017. We also granted to the holders of these registrable shares certain "piggyback" registration rights until two years after the effectiveness of the Registration Statement. If the Registration Statement ceases to be effective or otherwise cannot be used for a period specified in the Series A Registration Rights Agreement, or trading of the common stock on the Company's principal market is suspended or halted for more than three consecutive trading days (each, a "Registration Event"), monetary penalties payable by the Company to the holders of registrable shares that are affected by such Registration Event will commence to accrue at a rate equal to 12% per annum of the purchase price paid for each Unit purchased, for the period that such Registration event continues, but not exceeding in the aggregate 5% of such purchase price. We have agreed to use our commercially reasonable efforts to keep such Registration Statement effective until the earliest of (a) the date that is two years from the date it is declared effective by the SEC, (b) the date on which all the securities registered thereunder have been transferred other than to certain permitted assignees, and (c) the date as of which all of the selling stockholders may sell all of the securities registered hereunder without restriction pursuant to Rule 144 (including, without limitation, volume restrictions) and without the need for current public information required by Rule 144(c)(1) or Rule 144(i)(2), if applicable. Pursuant to comments received from the staff of the SEC reflecting SEC staff policy, we were not permitted to include in such Registration Statement up to 12,573,598 as the number of shares that may be issuable upon conversion of the up to 3,000 shares of Series A Preferred Stock that may be issued pursuant to the Subscriber Option, up to 669,000 shares that may be issuable upon exercise of the Series A Investor Warrants that may be issued pursuant to the Subscriber Option, and up to 79,420 shares that may be issuable upon exercise of Series A Placement Agent Warrants that may be issued to the placement agent for the Series A Convertible Preferred Stock and its designees in connection with exercises of the Subscriber Option. (Such 12,573,598 shares represent the number of shares that would become issuable upon conversion of all of such shares of Series A Preferred Stock at a price of $0.25 per share, the current "floor" on the conversion price of the Series A Preferred Stock.) The Series A Registration Rights Agreement provides that in this circumstance, we are not liable for the payment of the monetary penalties described above with respect to those shares. The Common Unit Registration Rights Agreement In connection with the Common Unit Offering, we entered into a Registration Rights Agreement (the "Common Unit Registration Rights Agreement") with each of the subscribers of the common stock Units and the holders of the Common Unit Placement Agent Warrants, which requires the Company to file a Registration Statement with the SEC within 45 calendar days after the final closing of the Common Unit Offering, registering for resale (i) all shares of common stock sold in the Common Unit Offering, and (ii) all shares of common stock issued or issuable upon exercise of the Common Unit Investor Warrants and the Common Unit Placement Agent Warrants, and to use our commercially reasonable efforts to cause the Registration Statement to be declared effective no later than 90 calendar days after the filing deadline. The 567,859 unregistered shares of common stock issued to Pacific Drilling Operations as described above will also be included in this registration. The Company filed a registration statement on Form S-1 with the SEC on July 27, 2017 (SEC File No. 333-219495), which has not yet been declared effective. We also granted to the holders of these registrable shares certain "piggyback" registration rights until two years after the effectiveness of the Registration Statement. If the Registration Statement is not filed with or declared effective by the SEC within the specified deadlines set forth above, or the Registration Statement ceases to be effective or otherwise cannot be used for a period specified in the Registration Rights Agreement, or trading of the common stock on the Company's principal market is suspended or halted for more than three consecutive trading days (each, a "Registration Event"), monetary penalties payable by the Company to the holders of registrable shares that are affected by such Registration Event will commence to accrue at a rate equal to 12% per annum of the purchase price paid for each Unit purchased, for the period that such Registration event continues, but not exceeding in the aggregate 5% of such purchase price. We have agreed to use our commercially reasonable efforts to keep the Registration Statement effective until the earliest of (a) the date that is two years from the date it is declared effective by the SEC, (b) the date on which all the securities registered thereunder have been transferred other than to certain permitted assignees, and (c) the date as of which all of the selling stockholders may sell all of the securities registered hereunder without restriction pursuant to Rule 144 (including, without limitation, volume restrictions) and without the need for current public information required by Rule 144(c)(1) or Rule 144(i)(2), if applicable. Exercise of Stock Options During the twelve months ended June 30, 2017 there were a total of 183,492 shares of common stock issued upon the exercise of stock options. There were no stock options or warrants exercised during 2016. Awards issued in lieu of cash bonus During the twelve months ended June 30, 2017, there were a total of 536,091 shares of common stock issued in lieu of cash bonuses. Stock issued for settlement On December 31, 2016, the Company entered into a settlement agreement with the plaintiffs (See Note 8 ) whereby Hyperdynamics issued to the plaintiffs a total of 600,000 shares of common stock. The shares of common stock were issued on February 2, 2017. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block | |
SHARE-BASED COMPENSATION | 7. 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 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 grants of shares of common stock, restricted stock or incentive stock options and/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 granted under this 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 June 30, 2017, there were 267,912 shares remaining 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 grants 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. Additionally, 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 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 grant 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 as we do not have traded options. The expected term calculation for stock options is based on the simplified method as described in the Securities and Exchange Commission Staff Accounting Bulletin number 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 grant for an instrument with a maturity that is commensurate with the expected term of the stock options. The dividend yield rate of zero 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 years ended June 30: 2017 2016 Number of options granted 498,500 183,860 Compensation expense recognized $ 189,880 $ 352,653 Compensation cost capitalized — — Weighted average grant-date fair value of options outstanding $ 1.37 $ 5.03 The following table details the significant assumptions used to compute the fair market values of employee and director stock options granted during the years ended June 30: 2017 2016 Risk-free interest rate 0.9 - 1.86 % 0.36 - 1.01 % Dividend yield % % Volatility factor 109 - 157 % 109 - 148 % Expected life (years) 2.9 - 4.80 0.5 - 2.875 Summary information regarding employee stock options issued and outstanding under all plans as of June 30, 2017 is as follows: Weighted average Weighted Aggregate remaining Average Share intrinsic contractual life Options Price value (years) Options outstanding at July 1, 2015 1,181,954 $ 8.76 $ 8,327 3.14 Granted 183,860 1.40 Exercised — — Forfeited (39,175) 4.21 Expired (309,642) 10.71 Options outstanding at June 30, 2016 1,016,997 $ 7.43 $ — 3.39 Granted 498,500 1.37 Exercised (183,492) 0.66 Forfeited — — Expired (221,840) 9.64 Options outstanding at June 30, 2017 1,110,165 $ 3.19 $ — 3.56 Options exercisable at June 30, 2017 740,915 $ 4.05 $ — 2.94 Options outstanding and exercisable as of June 30, 2017 Options outstanding and exercisable as of June 30, 2017 Outstanding Number of Exercisable Exercise Price Shares Remaining Life Number of Shares $ 0.41 - 4.00 57,915 year 57,915 $ 0.41 - 4.00 136,296 years 136,296 $ 0.41 - 4.00 226,720 years 226,720 $ 0.41 - 4.00 112,610 years 33,360 $ 0.41 - 4.00 478,500 years 188,500 $ 4.01 - 10.00 24,000 year 24,000 $ 4.01 - 10.00 4,062 years 4,062 $ 4.01 - 10.00 7,000 years 7,000 $ 10.01 - 20.00 17,500 years 17,500 $ 20.01 - 30.00 28,500 years 28,500 $ 30.01 - 40.00 13,312 years 13,312 $ 40.01 - 50.00 3,750 years 3,750 1,110,165 740,915 Options outstanding and exercisable as of June 30, 2016 Outstanding Number of Exercisable Exercise Price Shares Remaining Life Number of Shares $ 0.42 - 4.00 71,250 1 year 71,250 $ 0.42 - 4.00 78,855 2 years 78,855 $ 0.42 - 4.00 197,390 3 years 197,390 $ 0.42 - 4.00 348,954 4 years 333,963 $ 0.42 - 4.00 82,610 5 year — $ 4.01 - 10.00 97,938 1 years 97,938 $ 4.01 - 10.00 9,000 2 years 9,000 $ 4.01 - 10.00 4,062 3 years 4,062 $ 4.01 - 10.00 18,250 4 year 18,250 $ 10.01 - 20.00 1,875 1 years 1,875 $ 10.01 - 20.00 28,750 4 years 28,750 $ 20.01 - 30.00 1,250 1 year 1,250 $ 20.01 - 30.00 — 2 years — $ 20.01 - 30.00 31,000 4 years 31,000 $ 30.01 - 40.00 16,250 1 year 16,250 $ 30.01 - 40.00 25,813 5 years 25,813 $ 40.01 - 50.00 — 1 year — $ 40.01 - 50.00 3,750 5 years 3,750 1,016,997 919,396 At June 30, 2017, there was $457 thousand of unrecognized compensation costs related to non-vested share based compensation arrangements granted to employees under the plans. During 2017, a total of 226,860 options, with a weighted average grant date fair value of $0.89 per share, vested in accordance with the underlying agreements. Unvested options at June 30, 2017 totaled 369,250 with a weighted average grant date fair value of $4.05, an amortization period of one to two years and a weighted average remaining life of 4.23 years. At June 30, 2016, there was $31 thousand of unrecognized compensation costs related to non-vested share based compensation arrangements granted to employees under the plans. During 2016, a total of 449,904 options, with a weighted average grant date fair value of $1.10 per share, vested in accordance with the underlying agreements. Unvested options at June 30, 2016 totaled 97,601 with a weighted average grant date fair value of $5.50, an amortization period of one to two years and a weighted average remaining life of 4.91 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. Such awards do not grant any rights as a shareholder of the company until a certificate for the vested shares of common stock has been issued. During the year ended June 30, 2017, we granted 401,146 shares of restricted stock awards with a fair value of $0.6 million. There were none outstanding at June 30, 2016. Summary information regarding employee restricted stock issued and outstanding under the 2010 Plan as of June 30, 2017 is as follows: Weighted Restricted Stock Average Share Shares Price Restricted Stock outstanding at June 30, 2016 — $ — Granted 401,146 1.51 Vested — — Forfeited — — Restricted Stock outstanding at June 30, 2017 401,146 $ 1.51 Warrants The exercise price of the warrants may be adjusted in the case of stock splits, stock dividends or combinations of shares, or in the event the Company issues rights, options or warrants to all holders of the Company’s common stock with an exercise or purchase price less than the volume weighted average price of the Company’s shares on the record date. The warrants are not considered to be indexed to our common stock and therefore are considered a derivative. The fair value of the warrants was determined using the Binomial Option Pricing Model. Summary information regarding common stock warrants issued and outstanding as of June 30, 2017 is as follows: Weighted average Weighted Aggregate remaining Average intrinsic contractual Warrants Share Price value life(years) Outstanding at year ended June 30, 2016 — $ — $ — — Granted 4,041,951 1.98 — 1.91 Exercised — — — Expired — — — Outstanding at year ended June 30, 2017 4,041,951 $ 1.98 $ — 1.91 Warrants outstanding and exercisable as of June 30, 2017 Outstanding Exercisable Exercise Number of Number of Price Shares Remaining Life Shares $ 3,555,228 1.93 years 3,555,228 $ 3.00-3.04 486,723 1.71-1.82 years 486,723 4,041,951 4,041,951 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block | |
COMMITMENTS AND CONTINGENCIES | 8. COMMITMENTS AND CONTINGENCIES LITIGATION AND OTHER LEGAL MATTERS While there are currently no pending legal proceedings to which we are a party (or that are to our knowledge contemplated by governmental authorities) that we believe will have individually or in the aggregate, a material adverse effect on our business, financial condition or operating results, from time to time we may become involved in various lawsuits and legal proceedings that arise in the ordinary course of business or otherwise. Litigation is subject to inherent uncertainties, and an adverse result in any such matters could occur that could harm our business, financial condition or results of operation, including significant monetary damages or limitations on our ability to engage in our business activities. Although we have director and officer insurance, in case such claims arise it may not apply to or fully cover any liabilities we may incur as a result of these lawsuits. The following are descriptions of certain concluded legal proceedings in which we were involved that have historical significance in relation to the discussions herein under "Business," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere, and are included for reference purposes. 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 ("First JOA") in the United States District Court for the Southern District of Texas and before the AAA against Tullow for their failure to meet their obligations under the First 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 First 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 is 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 were 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 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-1 well, and agreed to pay net cash of $0.7 million to us. We also agreed to pay Dana a success fee which is based upon $50,000 per million barrels upon declaration of the certified commercial reserves of the Fatala-1 well, if it results in a discovery. 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, including Iroquois Master Fund Ltd., that invested in us in early 2012, allege 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 June 19, 2013, the court dismissed the negligent misrepresentation claim but declined to dismiss the breach of contract claim. On August 12, 2013, the plaintiffs filed an amended complaint. That complaint named only us and sought recovery for alleged breaches of contract. On December 31, 2016, we entered into a settlement agreement with the five hedge funds in this lawsuit. Under the terms of the settlement agreement, Hyperdynamics would issue to the plaintiffs a total of 600,000 new shares of 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. On January 26, 2017, an order to approve the settlement agreement was entered in the Supreme Court of the State of New York, New York County and subsequently approved by the Court on the same day. 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. 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, the majority of operating leases will be renewed or replaced by other leases. 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 as of June 30, 2017 (in thousands): Years ending June 30: 2018 $ — 2019 399 2020 406 2021 309 Total minimum payments required $ 1,114 Rent expense included in loss from operations for the years ended June 30, 2017 and 2016 was $0.6 million and $0.4 million, respectively in each year. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block | |
SUBSEQUENT EVENTS | 9. SUBSEQUENT EVENTS Submission of Matters to a Vote of Security Holders On July 11, 2017, the Company filed a proxy statement pursuant to section 14(a) of the Securities Exchange Act of 1934. The notice of consent solicitation was t o amend the Company’s Certificate of Incorporation, as amended to effect a reverse stock split (the "Reverse Stock Split") of the Company's common stock at a ratio within a range between one-for-two (1:2) and one-for-six (1:6) (the "Split Ratio"), with the exact Split Ratio to be determined within that range by the Board of Directors in its sole discretion, and with such Reverse Stock Split to be effective at such date and time, if at all, as determined by the board of directors in its sole discretion. As of August 10, 2017, the Company has received written consents from holders representing 72.3% of the voting power of its common stock outstanding as of July 7, 2017, the record date in favor of the Reverse Stock Split and terminated the consent solicitation period. As of the July 7, 2017, 27,510,636 shares of the Company’s common stock were outstanding. The final vote tabulation was as follows: Votes For — 72.3% Votes Abstentions — 0.3% 19,879,984 2,878,387 71,651 No other proposals were presented in this consent solicitation statement. The written consents by the requisite number of the Company stock entitled to vote for this proposal granted the board of directors the ultimate authority to determine the exact Reverse Split Ratio and to effectuate the Reverse Stock Split, if at all, at such date and time when the board of directors determines, in its sole discretion, it to be in the best interests of the Company and its stockholders. On July 12, 2017, the Company obtained a letter from the Director General of the National Office of Petroleum of Guinea stating that in the event of an oil discovery at the end of the drilling of the Fatala-1 well, the government would have no objection to granting an additional period of two years to enable us to carry out the work of appraisal on the Concession. On August 11, 2017 actual drilling on the Fatala-1 well commenced. Drilling operations were completed on September 8, 2017. On September 19, 2017, SAPETRO notified us that it did not wish to participate in the application for the two-year appraisal program and subsequently withdrew from the JOA and the PSC on September 20, 2017. We applied for an appraisal period on a 100% basis on September 19, 2017 according to Article 3.7 in our PSC that provides that in case there is a Petroleum Discovery during the Extension Period and there is insufficient time to carry out the appraisal works of said discovery, an appropriate representative of the Government of Guinea has the authority to grant an extension for two additional years. We are awaiting the decision of the Government of Guinea on our appraisal application. On November 2, 2017, the Company executed an agreement to issue and sell 40 million shares of its common stock at a price of $0.15 per share (for a total purchase price of $6,000,000) to CLNG Limited (Hong Kong) (“CLNG”) or its affiliate (the “Buyer”). CLNG is a private investment company involved in global energy and mineral projects. The closing of the sale is subject to (i) the completion of satisfactory due diligence by each party of the other, (ii) waiver by holders of our Series A Convertible Preferred Stock of their right of first refusal, (iii) negotiation of reductions in our outstanding current liabilities satisfactory to CLNG, and (iv) satisfaction of other customary closing conditions. If this purchase is completed, the Buyer will own approximately 53% of our outstanding common stock, which would result in a change in control of the Company. If the transaction closes, the Buyer has informed the Company that it intends, as majority stockholder, to appoint representatives who will form a majority of Hyperdynamics’ board of directors, but no specific agreement has yet been entered into in this respect. The stock purchase agreement provides that Ray Leonard will remain President, Chief Executive Officer and a director of the Company, and Jason Davis will remain Chief Financial Officer, subject to the discretion of the board and resolutions of the stockholders. There can be no assurance that the Company’s due diligence of the Buyer will be acceptable to the Company, that the Buyer’s due diligence of the Company will be acceptable to the Buyer, that all holders of our Series A Convertible Preferred Stock will waive their right of first refusal, that we will successfully negotiate reductions in our outstanding current liabilities satisfactory to CLNG, or that the stock purchase agreement will close. Closing of Additional Private Placement Offerings Series A Preferred Stock Under the terms of the Subscription Agreement for the Series A Offering, Subscribers were given an option (the “Subscriber Option”) to purchase, at the same purchase price of $1,000 per Unit, their pro rata share of up to an aggregate of $3,000,000 in additional Units of the Series A Offering. On August 2, 2017, we consummated a closing of the Subscriber Option. At this closing, we issued to the Subscribers that exercised their Subscriber Option an aggregate of (i) 756 shares of Series A Preferred Stock and (ii) Series A Investor Warrants to purchase an aggregate of 168,588 shares of common stock. The Company received an aggregate of $756,000 in gross cash proceeds, before deducting placement agent fees and expenses, and other fees and expenses, in connection with the sale of these additional Units. The Company used the net proceeds of $687,890 from the sale of the additional Series A Units for general corporate purposes and to further its business interests in the Republic of Guinea, including, but not limited to, the drilling of an exploration well on the Company’s offshore Concession. At the closing, we paid to the Placement Agent $68,040 of cash fees and issued to the Placement Agent or its designees Placement Agent Warrants to purchase an aggregate of 20,014 shares of common stock. Pursuant to the Registration Rights Agreement we entered with the Subscribers and the holders of the Placement Agent Warrants, we agreed to register for resale the shares of common stock issuable upon conversion of the Series A Preferred Stock and upon exercise of the Series A Investor Warrants and the Placement Agent Warrants issued pursuant to the Subscriber Option. From July 1, 2017 to the filing of this Form 10-K, there have been a total of 1,952 units of Series A Preferred Stock converted into 1,825,934 shares of the Company’s common stock. Common Unit Offering Between July 17, 2017 and September 1, 2017, we held five additional closings of the Common Unit Offering and issued and sold 6,135,968 Units of our securities, at a purchase price of $1.46 per Unit. The Units were sold to certain accredited investors (as such term is defined in the Rule 501 under the Securities Act (the “Subscribers”) pursuant to subscription agreements for the Units (the “Subscription Agreements”) between the Company and the Subscribers. The Subscription Agreements contained customary representations and warranties by the Company and by the Subscribers. At these closings, we issued to the Subscribers an aggregate of (i) 6,135,968 shares of common stock and (ii) Investor Warrants to purchase an aggregate of 4,601,992 shares of common stock. The Company received an aggregate of $8,958,413 in gross cash proceeds, before deducting placement agent fees and expenses, and other fees and expenses, in connection with the sale of the Units. The Company used the net proceeds of $7,619,724 from the sale of the Units for general corporate purposes and to further its business interests in the Republic of Guinea, including, but not limited to, the drilling of an exploration well on the Company’s offshore Concession. Pursuant to the Placement Agency Agreement dated June 5, 2017, as amended, between the Company and Katalyst Securities, LLC as the “Placement Agent, engaged by the Company, on a reasonable best effort basis for the Common Unit Offering, we agreed to pay to the Placement Agent (and any sub agent) a cash commission of 9% of the gross purchase price paid by the Subscribers for the Units, except for the purchase of Units by certain Subscribers referred to by the Company, in which case, the Company has agreed to pay to the Placement Agent (and any sub agent), a cash commission of 4% of the gross purchase price paid by these referred Subscribers, and to issue to the Placement Agent (and any sub-agent) warrants to purchase a number of shares of Common Stock equal to 7% of the number of shares of Common Stock contained in the Units sold in the Offering, at the exercise price of $1.825 per share (the “Placement Agent Warrants”). At these closings, we paid the Placement Agent $576,265 of cash fees and issued to the Placement Agent or its designees Placement Agent Warrants to purchase an aggregate of 429,544 shares of common stock. Pursuant to the Registration Rights Agreement, we entered with the Subscribers and the holders of the Placement Agent Warrants, we agreed to register for resale the shares of common stock issuable upon exercise of the Common Unit Investor Warrants and the Common Unit Placement Agent Warrants. Settlement with SAPETRO Subsequent to SAPETRO’s formal notice of withdrawal from the PSC and JOA on September 20, 2017, on October 8, 2017, we agreed to a settlement of all of SAPETRO’s remaining obligations under the PSC and JOA for a payment to us of $4,924,000. The majority of the payment of $4,924,000 made by SAPETRO as well as the majority of the net proceeds from the Series A Preferred Unit and Common Unit offerings from July 1, 2017 to the date of this filing have been spent on the drilling operations associated with the Fatala-1 exploration well and general and administrative costs, resulting in substantial working capital deficit as of the filing date. Related Party Transactions In July 2017, Ray Leonard purchased 51,370 Units in our Common Unit Offering, for a purchase price of $75,000. Jason D. Davis purchased 34,248 Units in our Common Unit Offering, for a purchase price of $50,001.24. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block [Abstract] | |
RELATED PARTY TRANSACTIONS | 10. RELATED PARTY TRANSACTIONS Paolo G. Amoruso and David W. Wesson continued, after year end, to provide services to the Company as independent consultants pursuant to Consulting Agreements entered into on June 30, 2016, extending through September 30, 2016. Under the Consulting Agreements, Mr. Amoruso received a consulting fee of $30,000 per month and Mr. Wesson received a consulting fee of $25,000 per month. After September 30, 2016, Mr. Wesson continued to provide services as a contractor, respectively, to the Company on an hourly basis pursuant to engagement agreements depending on the needs of the Company. Mr. Amoruso, through his law firm, Paolo G Amoruso PLLC, entered into an engagement agreement with the Company on October 1, 2016 to provide outside counsel services depending on the needs of the Company. On June 30, 2016, the Company also entered into Transition Agreements with Messrs. Amoruso and Wesson. Mr. Amoruso and Mr. Wesson agreed in the Transition Agreements that they are not entitled to any payments under their former employment agreements. Pursuant to his Transition Agreement, Mr. Amoruso received payments of $150,000 on July 15, 2016, $50,000 on August 15, 2016, and $300,000 on September 15, 2016; provided, if the Company and Mr. Amoruso entered into a new employment agreement as Vice President, General Counsel and Corporate Secretary prior to September 15, 2016, Mr. Amoruso would not be entitled to the September 15, 2016 payment of $300,000. Mr. Amoruso and the Company did not enter into a new employment agreement. In addition, Mr. Amoruso received an award of non-qualified stock options to acquire 36,875 shares of the Company's common stock with an exercise price equal to the closing price on June 30, 2016. Pursuant to his Transition Agreement, Mr. Wesson received payments of $150,000 on July 15, 2016, August 15, 2016, and September 15, 2016. In addition, Mr. Wesson received an award of non-qualified stock options to acquire 34,375 shares of the Company's common stock with an exercise price equal to the closing price on June 30, 2016. In March 2017, Ray Leonard, our President and Chief Executive Officer and a director, purchased 50 Units in our Series A Offering, described above under "Management's Discussion and Analysis of Financial Condition and Results of Operations—Series A Preferred Stock Offering" above, for a purchase price of $50,000. In June 2017: " Gary D. Elliston, our director, purchased 34,247 Units in our Common Unit Offering, described above under "Management's Discussion and Analysis of Financial Condition and Results of Operations—Common Unit Offering" above, for a purchase price of $50,000. " Ray Leonard purchased 68,494 Units in our Common Unit Offering, for a purchase price of $100,000. " William O. Strange, our director, purchased 34,247 Units in our Common Unit Offering, for a purchase price of $50,000. " Jason D. Davis, our Interim Chief Financial Officer and Secretary, purchased 34,247 Units in our Common Unit Offering, for a purchase price of $50,000. " Pacific Drilling Operations Limited, the parent of Pacific Scirocco, and a beneficial owner of more than 5% of our outstanding shares of common stock, purchased 2,739,727 Units in the Common Unit Offering for a purchase price of $4,000,000. " Pacific Drilling Operations also received 567,859 shares of common stock in connection with the amendment to our Offshore Drilling Contract as described under "Management's Discussion and Analysis of Financial Condition and Results of Operations—Overview" above. In July 2017: " Ray Leonard purchased 51,370 Units in our Common Unit Offering, for a purchase price of $75,000. " Jason D. Davis purchased 34,248 Units in our Common Unit Offering, for a purchase price of $50,001.24 |
QUARTERLY RESULTS (UNAUDITED)
QUARTERLY RESULTS (UNAUDITED) | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block | |
QUARTERLY RESULTS (UNAUDITED) | 11. QUARTERLY RESULTS (UNAUDITED) Shown below are selected unaudited quarterly data for the years ended June 30, 2017 and 2016 (in thousands, except per share data): First Quarter Second Quarter Third Quarter Fourth Quarter 2017: Depreciation $ 25 $ 10 $ 7 $ 6 General, administrative and other operating 3,966 3,006 3,380 1,971 Full impairment of unproved oil and gas properties — 2,028 — 11,288 Profit (Loss) from operations (3,991) (5,044) (3,387) (13,265) Gain (loss) on legal settlement 5,135 (371) — — Cost of legal settlement — (1,308) — — Gain on derivative liability — — — 705 Net Profit (Loss) 1,144 (6,723) (3,387) (12,560) Non-cash preferred dividends — — — (1,511) Net Profit (Loss) available to common stockholders 1,144 (6,723) (3,387) (14,071) Basic and diluted loss per common share: $ 0.05 $ (0.31) $ (0.16) $ (0.64) x` First Quarter Second Quarter Third Quarter Fourth Quarter 2016: Depreciation $ 28 $ 28 $ 27 $ 26 General, administrative and other operating 1,877 1,829 3,266 1,434 Full impairment of unproved oil and gas properties — — 14,331 — Loss from operations (1,905) (1,857) (17,624) (1,460) Net loss (1,905) (1,857) (17,624) (1,460) Basic and diluted loss per common share: $ (0.09) $ (0.09) $ (0.84) $ (0.07) The sum of the individual quarterly net loss per share amounts may not agree with year-to-date net loss per share as each quarterly computation is based on the weighted average number of common shares outstanding during that period. In addition, certain potentially dilutive securities were not included in any of the quarterly computations of diluted net loss per share because to do so would have been antidilutive. For the second quarterly results, $1.3 million was reclassed from general, administrative and other operating to full impairment of unproved oil and gas properties. |
SUPPLEMENTAL OIL AND GAS INFORM
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure Text Block | |
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) | 12. SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) Estimates of reserve quantities and related standardized measure of discounted net cash flows are estimates only, and are not intended to reflect realizable values or fair market values of reserves. Reserve estimates are inherently imprecise and estimates of new discoveries are more imprecise than producing oil and gas properties. Additionally, the price of oil has been very volatile and downward changes in prices can significantly affect quantities that are economically recoverable. Accordingly, estimates are expected to change as future information becomes available and these changes may be significant. Proved reserves are estimated reserves of crude oil and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are those expected to be recovered through existing wells, equipment and operating methods. The standardized measure of discounted future net cash flows are computed by applying average price for the year (with consideration of price changes only to the extent provided by contractual arrangements) to the estimated future production of proved oil and gas reserves, less estimated future expenditures (based on year-end costs) to be incurred in developing and producing the proved reserves, less estimated future income tax expenses. The estimated future net cash flows are then discounted using a rate of 10% per year to reflect the estimated timing of the future cash flows. Capitalized Costs Related to Oil and Gas Activities Aggregate capitalized costs relating to our crude oil and natural gas producing activities, including asset retirement costs and related accumulated depreciation, depletion & amortization are shown below (in thousands): United Republic of States Guinea Total June 30, 2017 Unproved properties $ — $ — $ — Proved properties — — — — — — Less accumulated DD&A — — — Net capitalized costs $ — $ — $ — June 30, 2016 Unproved properties $ — $ — $ — Proved properties — — — — — — Less accumulated DD&A — — — Net capitalized costs $ — $ — $ — Costs Incurred in Oil and Gas Activities Costs incurred in connection with our crude oil and natural gas acquisition, exploration and development activities are shown below (in thousands): United Republic of States Guinea Total June 30, 2017 Property acquisition: Unproved $ — $ — $ — Exploration — 13,316 13,316 Development — — — Total costs incurred $ — $ 13,316 $ 13,316 June 30, 2016 Property acquisition: Unproved $ — $ — $ — Exploration — — — Development — — — Total costs incurred $ — $ — $ — Proved Reserves We do not hold any proved reserves as of June 30, 2017 and 2016. |
ORGANIZATION AND SIGNIFICANT 21
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Policy Text Blocks | |
Principles of Consolidation | Principles of Consolidation The accompanying 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 (“SEC”). |
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 in the value of our warrants derivative liability, · estimates made in our income tax calculations, · estimates in the assessment of current litigation claims against the company, and · estimates and assumptions involved in our assessment of unproved oil and gas properties for impairment. We are subject 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 years presented, we maintained all of our cash in bank deposit accounts which, at times, exceed the federally insured limits. |
Oil and Gas Properties | Oil and Gas Properties Full-Cost Method We account for oil and natural gas producing activities using the full-cost method of accounting as prescribed by the SEC. Accordingly, all costs incurred in the acquisition, exploration, and development of oil and natural gas properties, including the costs of abandoned properties, dry holes, geophysical costs and annual lease rentals are capitalized. All selling, general and administrative corporate costs unrelated to drilling activities are expensed as incurred. Sales or other dispositions of oil and natural gas properties are accounted for as adjustments to capitalized costs, with no gain or loss recorded unless the ratio of capitalized costs to proved reserves would significantly change, or to the extent that the sale proceeds exceed our capitalized costs. Depletion of evaluated oil and natural gas properties would be computed on the units of production method based on proved reserves. The net capitalized costs of proved oil and natural gas properties are subject to quarterly impairment tests. Costs Excluded from Amortization Costs associated with unproved properties are excluded from amortization until it is determined whether proved reserves can be assigned to the properties. We review our unproved properties at the end of each quarter to determine whether the costs incurred should be transferred to the amortization base. We assess unproved property on a quarterly basis for possible impairment or reduction in value. We assess properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term under our concession; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. We assess our unproved properties on a country-by-country basis. During any period in which these factors indicate an impairment, the adjustment is recorded through earnings of the period. Full-Cost Ceiling Test At the end of each quarterly reporting period, the capitalized costs less accumulated amortization and deferred income taxes shall not exceed an amount equal to the sum of the following items: (i) the present value of estimated future net revenues of oil and gas properties (including future development and abandonment costs of wells to be drilled) using prices based on the preceding 12-months’ average price based on closing prices on the first day of each month, or prices defined by existing contractual arrangements, discounted at 10%, (ii) the cost of properties not being amortized, and (iii) the lower of cost or estimated fair value of unproved properties included in the costs being amortized, less related income tax effects (“Full-Cost Ceiling Test”). The calculation of the Full-Cost Ceiling Test is based on estimates of proved reserves. There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting the future rates of production, timing, and plan of development. The accuracy of any reserves estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of drilling, testing, and production subsequent to the date of the estimate may justify revision of such estimates. Accordingly, reserves estimates are often different from the quantities of oil and natural gas that are ultimately recovered. We have no proved reserves. We recognized a $13.3 million and $14.3 million Full-Cost Ceiling test write-down in the years ended June 30, 2017 and June 30, 2016, respectively. |
Property and Equipment, other than Oil and Gas | Property and Equipment, other than Oil and Gas Property and equipment are stated on the basis of historical cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, generally three to five years. |
Income Taxes | Income Taxes We account for income taxes in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, “Income Taxes,” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the tax and financial reporting basis of assets and liabilities and for loss and credit carryforwards. Valuation allowances are provided when recovery of deferred tax assets is not considered likely. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in our tax returns that do not meet these recognition and measurement standards. As of June 30, 2017 and 2016, the Company has unrecognized tax benefits totaling $5.5 million. Our policy is to recognize potential accrued interest and penalties related to unrecognized tax benefits within income tax expense. For the years ended June 30, 2017 and 2016, we did not recognize any interest or penalties in our consolidated statements of operations, nor did we have any interest or penalties accrued on our consolidated balance sheets at June 30, 2017 and 2016 relating to unrecognized benefits. The tax years 2011-2016 remain open to examination for federal income tax purposes and by the other major taxing jurisdictions to which we are subject. |
Stock-Based Compensation | Stock-Based Compensation ASC 718, “Compensation-Stock Compensation” requires recognition in the financial statements of the cost of employee services received in exchange for an award of equity instruments over the period the employee is required to perform the services in exchange for the award (presumptively the vesting period). We measure the cost of employee services received in exchange for an award based on the grant-date fair value of the award. We account for non-employee share-based awards based upon ASC 505-50, “Equity-Based Payments to Non-Employees.” |
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 a 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 years ended June 30, 2017, and 2016, respectively, as their effects are antidilutive due to our net loss for those periods. Stock options to purchase approximately 1.1 million common shares at an average exercise price of $3.19 were outstanding at June 30, 2017. Using the treasury stock method, had we had net income, approximately 25 thousand common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the year ended June 30, 2017. Stock options to purchase approximately 1.0 million common shares at an average exercise price of $7.43 were outstanding at June 30, 2016. Using the treasury stock method, had we had net income, approximately 25 thousand common shares attributable to our outstanding stock options would have been included in the fully diluted earnings per share for the year ended June 30, 2016. There were 1,791 Series A Preferred Stock units that were convertible at June 30, 2017. Using the treasury stock method, had we had net income, approximately 1,545,776 common shares attributable to our outstanding Series A Preferred Stock would have been included in the fully diluted earnings per share for the year ended June 30, 2017. There were no Series A Preferred Stock Units outstanding at June 30, 2016. |
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 8 for more information on legal proceedings. |
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. The three levels of valuation hierarchy are defined as follows: · Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. · Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. 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. As discussed further below the fair value of the warrants derivative liability was determined using the Binomial Option Pricing Model. The warrants derivative liability is carried on the balance sheet at its fair value. Significant Level 3 inputs used to calculate the fair value of the warrants include expected volatility, risk-free interest rate and expected dividends. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that Investor Warrants and Placement Agent Warrants issued in March, April, and June 2017 qualify as derivative financial instruments. These warrant agreements include provisions designed to protect holders from a decline in the stock price (‘down-round’ provision) by reducing the exercise price of warrants in the event we issue equity shares at a price lower than the exercise price of the warrants. Such down-round provisions were triggered upon issuance of our common shares in June 2017 and the exercise price of investor warrants associated with preferred stock was adjusted down accordingly and reflected in fair value measurement of such warrants as of June 30, 2017. These warrants are considered derivative liabilities and as such, are recorded at fair value at date of issuance and at each reporting date. The change in the fair value of derivative instruments during the period is recorded in earnings as “Other income (expense) — Gain (loss) on change in warrants derivative liability.” As such, we recorded an unrealized gain on the change in value of warrants derivative liability of $0.7 million to account for the change in fair value of our derivative liability compared to amount at issuance. We had no warrant derivative liability as of June 30, 2016. The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2017 (in thousands): Carrying Value at Fair Value Measurement at June 30, 2017 June 30, 2017 Level 1 Level 2 Level 3 Warrants derivative liability $ 2,030 $ — $ — $ 2,030 Summary information regarding the warrant derivative liability as of June 30, 2017 (in thousands): Warrant Derivative Liability Warrant derivative liability as of June 30, 2016 $ - Liabilities incurred 2,735 Unrealized gain (705) Warrant derivative liability as of June 30, 2017 $ 2,030 The following describes some of the key inputs into our fair value model as it relates to valuation of warrants. Expected Volatility The expected stock price volatility for the Company’s common stock was estimated by taking the average of the observed volatility of industry peers based on daily price observations. Industry peers consist of several public companies in the Company’s industry. The Company intends to continue to consistently apply this process using the same or similar public companies until a statistically significant amount of historical information regarding the volatility of its own share price becomes available, or unless circumstances change such that the identified companies are no longer similar to the Company, in which case, more suitable companies whose share prices are publicly available would be used in the calculation. Risk-Free Interest Rate The risk-free interest rate is based on the zero-coupon U.S. Treasury notes. Expected Dividend Yield The Company does not anticipate paying any dividends on the common stock in the foreseeable future and, therefore, uses an expected dividend yield of zero in the Binomial Option Pricing Model. |
Foreign currency gains and losses from current operations | Foreign currency gains and losses from current operations In accordance with ASC Topic 830, Foreign Currency Matters , the functional currency of our international subsidiaries is the U.S. Dollar. Gains and losses from foreign currency transactions arising from operating assets and liabilities are included in general, administrative and other operating expense, have not been significant. |
New Accounting Pronouncements | New Accounting Pronouncements In July 2017, the FASB issued Update No. 2017-11— Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. The Company has determined that Investor Warrants and Placement Agent Warrants issued in fiscal year 2017 qualify as derivative financial instruments. These warrant agreements include provisions designed to protect holders from a decline in the stock price (‘down-round’ provision) by reducing the exercise price of warrants in the event we issue equity shares at a price lower than the exercise price of the warrants. As a result of this down-round provision, these warrants are considered derivative liabilities and as such, are recorded at fair value at date of issuance and at each reporting date. Change in fair value of derivative instruments during the period are recorded in earnings as “Other income (expense) — Gain (loss) on warrants derivative liability.” The Company is in the process of evaluating this new update and whether to early adopt this amendment. In August 2014, the FASB issued ASU No. 2014-15 “Presentation of Financial Statements: |
Subsequent Events | Subsequent Events The Company evaluated all subsequent events from June 30, 2017 through the date of issuance of these financial statements. See Note 9 . |
ORGANIZATION AND SIGNIFICANT 22
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Table Text Blocks | |
Schedule of liabilities measured at fair value on a recurring basis | The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2017 (in thousands): Carrying Value at Fair Value Measurement at June 30, 2017 June 30, 2017 Level 1 Level 2 Level 3 Warrants derivative liability $ 2,030 $ — $ — $ 2,030 |
Summary information regarding the warrant derivative liability | Summary information regarding the warrant derivative liability as of June 30, 2017 (in thousands): Warrant Derivative Liability Warrant derivative liability as of June 30, 2016 $ - Liabilities incurred 2,735 Unrealized gain (705) Warrant derivative liability as of June 30, 2017 $ 2,030 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Table Text Blocks | |
Summary of property and equipment | June 30, (in thousands) Useful Life 2017 2016 Computer equipment and software 3 years $ 1,319 $ 1,285 Office equipment and furniture 5 years 307 307 Leasehold improvements 3 years 534 534 Total Cost 2,160 2,126 Less - Accumulated depreciation (2,109) (2,075) $ 51 $ 51 |
INVESTMENT IN OIL AND GAS PRO24
INVESTMENT IN OIL AND GAS PROPERTIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Table Text Blocks | |
Schedule of allocation of revenue after recovery cost of operations | After recovery cost of operations, revenue will be split as outlined in the table below: Daily production (b/d) Guinea Share Contractor Share From 0 to 2,000 25 % 75 % From 2,001 to 5,000 30 % 70 % From 5,001 to 100,000 41 % 59 % Over 100,001 60 % 40 % |
Schedule of total capitalized costs of oil and gas properties | Aggregate capitalized costs relating to our crude oil and natural gas producing activities, including asset retirement costs and related accumulated depreciation, depletion & amortization are shown below (in thousands): United Republic of States Guinea Total June 30, 2017 Unproved properties $ — $ — $ — Proved properties — — — — — — Less accumulated DD&A — — — Net capitalized costs $ — $ — $ — June 30, 2016 Unproved properties $ — $ — $ — Proved properties — — — — — — Less accumulated DD&A — — — Net capitalized costs $ — $ — $ — |
Guinea Concession | |
Table Text Blocks | |
Schedule of total capitalized costs of oil and gas properties | The following table provides detail of total capitalized costs for our Guinea Concession as of June 30, 2017 and 2016 (in thousands): June 30, June 30, 2017 2016 Oil and Gas Properties: Unproved oil and gas Properties $ — $ — |
ACCOUNTS PAYABLE AND ACCRUED 25
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Table Text Blocks | |
Summary of accounts payable and accrued expenses | 2017 2016 Accounts payable – trade $ 4,010 $ 1,361 Other Accrued 672 382 $ 4,682 $ 1,743 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Table Text Blocks | |
Components of deferred tax assets | Components of deferred tax assets as of June 30, 2017 and 2016 are as follows (in thousands): 2017 2016 Current deferred tax assets: Other current deferred tax assets $ — $ — Total current temporary differences — — Less: valuation allowance — — Net current deferred tax assets $ — $ — Non-current deferred tax assets Stock compensation $ 2,470 $ 2,464 Property and Equipment 15 69 Oil and gas properties 13,582 21,504 Capital loss 144 144 Other 111 — Total non-current deferred tax assets $ 16,322 $ 24,181 Non-current deferred tax liabilities Property and Equipment — — Net operating losses 40,281 36,138 56,603 60,319 Less: valuation allowance (56,603) (60,319) Net non-current deferred tax assets (liabilities) $ — $ — |
Reconciliation of actual taxes | A reconciliation of the actual taxes to the U.S. statutory tax rate for the years ended June 30, 2017 and 2016 is as follows (in thousands): 2017 2016 Income tax (benefit) at the statutory federal rate (35%) $ (7,534) $ (7,996) Increase (decrease) resulting from nondeductible stock compensation 38 56 Foreign Rate Differential (330) 914 Disallowed foreign capital loss 12,136 — Derivative loss (247) 35 Other, net (323) — Change in valuation allowance (3,740) 6,991 Net income tax expense $ — $ — |
Summary of activity related to gross unrecognized tax benefits | The following table summarizes the activity related to our gross unrecognized tax benefits from July 1, 2015 to June 30, 2017 (in thousands): Federal, State and Foreign Tax (In thousands) Balance at July 1, 2015 $ 5,485 Additions to tax positions related to the current year — Additions to tax positions related to prior years — Statute expirations — Balance at June 30, 2016 $ 5,485 Additions to tax positions related to the current year — Additions to tax positions related to prior years — Statute expirations — Balance at June 30, 2017 $ 5,485 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Series A Investor Warrant | |
Table Text Blocks | |
Schedule of weighted average assumptions | June 30, 2017 Expected term (in years) 1.75 Expected volatility% 75 % Risk-free interest rate% 1.34 % Expected dividend yield% — % |
Placement Agent Series A Warrants | |
Table Text Blocks | |
Schedule of weighted average assumptions | June 30, 2017 Expected term (in years) 1.75 Expected volatility% 75 % Risk-free interest rate% 1.34 % Expected dividend yield% — % |
Common Unit Investor Warrant | |
Table Text Blocks | |
Schedule of weighted average assumptions | June 30, 2017 Expected term (in years) 1.93 Expected volatility% 76 % Risk-free interest rate% 1.37 % Expected dividend yield% — % |
Placement Agent Common Units Warrants | |
Table Text Blocks | |
Schedule of weighted average assumptions | June 30, 2017 Expected term (in years) 1.93 Expected volatility% 76 % Risk-free interest rate% 1.37 % Expected dividend yield% — % |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Table Text Blocks | |
Schedule of information about options | 2017 2016 Number of options granted 498,500 183,860 Compensation expense recognized $ 189,880 $ 352,653 Compensation cost capitalized — — Weighted average grant-date fair value of options outstanding $ 1.37 $ 5.03 |
Schedule of significant assumptions used to compute the fair values of employee and director stock options awarded | 2017 2016 Risk-free interest rate 0.9 - 1.86 % 0.36 - 1.01 % Dividend yield % % Volatility factor 109 - 157 % 109 - 148 % Expected life (years) 2.9 - 4.80 0.5 - 2.875 |
Summary of employee and director stock options issued and outstanding | Weighted average Weighted Aggregate remaining Average Share intrinsic contractual life Options Price value (years) Options outstanding at July 1, 2015 1,181,954 $ 8.76 $ 8,327 3.14 Granted 183,860 1.40 Exercised — — Forfeited (39,175) 4.21 Expired (309,642) 10.71 Options outstanding at June 30, 2016 1,016,997 $ 7.43 $ — 3.39 Granted 498,500 1.37 Exercised (183,492) 0.66 Forfeited — — Expired (221,840) 9.64 Options outstanding at June 30, 2017 1,110,165 $ 3.19 $ — 3.56 Options exercisable at June 30, 2017 740,915 $ 4.05 $ — 2.94 |
Schedule of stock options outstanding and exercisable | Options outstanding and exercisable as of June 30, 2017 Options outstanding and exercisable as of June 30, 2017 Outstanding Number of Exercisable Exercise Price Shares Remaining Life Number of Shares $ 0.41 - 4.00 57,915 year 57,915 $ 0.41 - 4.00 136,296 years 136,296 $ 0.41 - 4.00 226,720 years 226,720 $ 0.41 - 4.00 112,610 years 33,360 $ 0.41 - 4.00 478,500 years 188,500 $ 4.01 - 10.00 24,000 year 24,000 $ 4.01 - 10.00 4,062 years 4,062 $ 4.01 - 10.00 7,000 years 7,000 $ 10.01 - 20.00 17,500 years 17,500 $ 20.01 - 30.00 28,500 years 28,500 $ 30.01 - 40.00 13,312 years 13,312 $ 40.01 - 50.00 3,750 years 3,750 1,110,165 740,915 Options outstanding and exercisable as of June 30, 2016 Outstanding Number of Exercisable Exercise Price Shares Remaining Life Number of Shares $ 0.42 - 4.00 71,250 1 year 71,250 $ 0.42 - 4.00 78,855 2 years 78,855 $ 0.42 - 4.00 197,390 3 years 197,390 $ 0.42 - 4.00 348,954 4 years 333,963 $ 0.42 - 4.00 82,610 5 year — $ 4.01 - 10.00 97,938 1 years 97,938 $ 4.01 - 10.00 9,000 2 years 9,000 $ 4.01 - 10.00 4,062 3 years 4,062 $ 4.01 - 10.00 18,250 4 year 18,250 $ 10.01 - 20.00 1,875 1 years 1,875 $ 10.01 - 20.00 28,750 4 years 28,750 $ 20.01 - 30.00 1,250 1 year 1,250 $ 20.01 - 30.00 — 2 years — $ 20.01 - 30.00 31,000 4 years 31,000 $ 30.01 - 40.00 16,250 1 year 16,250 $ 30.01 - 40.00 25,813 5 years 25,813 $ 40.01 - 50.00 — 1 year — $ 40.01 - 50.00 3,750 5 years 3,750 1,016,997 919,396 |
Summary information regarding employee and director restricted stock issued and outstanding | Weighted Restricted Stock Average Share Shares Price Restricted Stock outstanding at June 30, 2016 — $ — Granted 401,146 1.51 Vested — — Forfeited — — Restricted Stock outstanding at June 30, 2017 401,146 $ 1.51 |
Summary of common stock warrants issued and outstanding | Weighted average Weighted Aggregate remaining Average intrinsic contractual Warrants Share Price value life(years) Outstanding at year ended June 30, 2016 — $ — $ — — Granted 4,041,951 1.98 — 1.91 Exercised — — — Expired — — — Outstanding at year ended June 30, 2017 4,041,951 $ 1.98 $ — 1.91 |
Schedule of warrants outstanding and exercisable | Outstanding Exercisable Exercise Number of Number of Price Shares Remaining Life Shares $ 3,555,228 1.93 years 3,555,228 $ 3.00-3.04 486,723 1.71-1.82 years 486,723 4,041,951 4,041,951 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Table Text Blocks | |
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 as of June 30, 2017 (in thousands): Years ending June 30: 2018 $ — 2019 399 2020 406 2021 309 Total minimum payments required $ 1,114 |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Table Text Blocks | |
Schedule of final votes of security holders | Votes For — 72.3% Votes Abstentions — 0.3% 19,879,984 2,878,387 71,651 |
QUARTERLY RESULTS (UNAUDITED) (
QUARTERLY RESULTS (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Table Text Blocks | |
QUARTERLY RESULTS (UNAUDITED) | Shown below are selected unaudited quarterly data for the years ended June 30, 2017 and 2016 (in thousands, except per share data): First Quarter Second Quarter Third Quarter Fourth Quarter 2017: Depreciation $ 25 $ 10 $ 7 $ 6 General, administrative and other operating 3,966 3,006 3,380 1,971 Full impairment of unproved oil and gas properties — 2,028 — 11,288 Profit (Loss) from operations (3,991) (5,044) (3,387) (13,265) Gain (loss) on legal settlement 5,135 (371) — — Cost of legal settlement — (1,308) — — Gain on derivative liability — — — 705 Net Profit (Loss) 1,144 (6,723) (3,387) (12,560) Non-cash preferred dividends — — — (1,511) Net Profit (Loss) available to common stockholders 1,144 (6,723) (3,387) (14,071) Basic and diluted loss per common share: $ 0.05 $ (0.31) $ (0.16) $ (0.64) x` First Quarter Second Quarter Third Quarter Fourth Quarter 2016: Depreciation $ 28 $ 28 $ 27 $ 26 General, administrative and other operating 1,877 1,829 3,266 1,434 Full impairment of unproved oil and gas properties — — 14,331 — Loss from operations (1,905) (1,857) (17,624) (1,460) Net loss (1,905) (1,857) (17,624) (1,460) Basic and diluted loss per common share: $ (0.09) $ (0.09) $ (0.84) $ (0.07) |
SUPPLEMENTAL OIL AND GAS INFO32
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Table Text Blocks | |
Schedule of total capitalized costs of oil and gas properties | Aggregate capitalized costs relating to our crude oil and natural gas producing activities, including asset retirement costs and related accumulated depreciation, depletion & amortization are shown below (in thousands): United Republic of States Guinea Total June 30, 2017 Unproved properties $ — $ — $ — Proved properties — — — — — — Less accumulated DD&A — — — Net capitalized costs $ — $ — $ — June 30, 2016 Unproved properties $ — $ — $ — Proved properties — — — — — — Less accumulated DD&A — — — Net capitalized costs $ — $ — $ — |
Schedule of costs incurred in oil and gas, exploration and development activities | Costs incurred in connection with our crude oil and natural gas acquisition, exploration and development activities are shown below (in thousands): United Republic of States Guinea Total June 30, 2017 Property acquisition: Unproved $ — $ — $ — Exploration — 13,316 13,316 Development — — — Total costs incurred $ — $ 13,316 $ 13,316 June 30, 2016 Property acquisition: Unproved $ — $ — $ — Exploration — — — Development — — — Total costs incurred $ — $ — $ — |
ORGANIZATION AND SIGNIFICANT 33
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - General Overview (Details) | 12 Months Ended |
Jun. 30, 2017subsidiary | |
Nature of business | |
Number of wholly-owned subsidiaries | 2 |
ORGANIZATION AND SIGNIFICANT 34
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Status of Our Business, Liquidity and Going Concern - Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue | ||||||||||
Operating revenue | $ 0 | $ 0 | ||||||||
Costs and expenses | ||||||||||
Depreciation | $ 6 | $ 7 | $ 10 | $ 25 | $ 26 | $ 27 | $ 28 | $ 28 | 48 | 109 |
General, administrative and other operating | 1,971 | 3,380 | 3,006 | 3,966 | 1,434 | 3,266 | 1,829 | 1,877 | 12,323 | 8,406 |
Full-Cost ceiling test write-down | 11,288 | 2,028 | 14,331 | 13,316 | 14,331 | |||||
Costs and expenses | 25,687 | 22,846 | ||||||||
Loss from operations | $ (13,265) | $ (3,387) | $ (5,044) | $ (3,991) | $ (1,460) | $ (17,624) | $ (1,857) | $ (1,905) | $ (25,687) | $ (22,846) |
ORGANIZATION AND SIGNIFICANT 35
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Status of Our Business, Liquidity and Going Concern - Balance Sheet Accounts (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Current assets: | |||
Unrestricted cash | $ 2,454 | $ 10,327 | $ 18,374 |
Current Liabilities: | |||
Accounts payable and accrued expense liabilities | $ 4,682 | $ 1,743 |
ORGANIZATION AND SIGNIFICANT 36
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Status of Our Business, Liquidity and Going Concern - Share Purchase Agreement (Details) - USD ($) | Jul. 12, 2017 | Dec. 31, 2017 | Jun. 30, 2017 |
Status of our Business | |||
Total purchase price | $ 3,610,000 | ||
Subsequent Event | Forecast | CLNG | Hyperdynamics Corporation | |||
Status of our Business | |||
CLNG Limited's potential ownership percentage in Hyperdynamics (as a percent) | 53.00% | ||
Subsequent Event | Forecast | CLNG | Hyperdynamics Corporation | Minimum | |||
Status of our Business | |||
CLNG Limited's potential ownership percentage in Hyperdynamics (as a percent) | 50.00% | ||
CLNG | Subsequent Event | Forecast | |||
Status of our Business | |||
Total purchase price | $ 6,000,000 | ||
Guinea Concession | Subsequent Event | |||
Status of our Business | |||
Appraisal period | 2 years |
ORGANIZATION AND SIGNIFICANT 37
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Status of Our Business, Liquidity and Going Concern - Additional Information (Details) | Oct. 08, 2017USD ($) | Sep. 19, 2017 | Jul. 12, 2017 | Jun. 12, 2017USD ($) | Jun. 05, 2017USD ($) | Jun. 02, 2017USD ($) | Jan. 29, 2017USD ($) | Sep. 15, 2016USD ($)km²itemm | Aug. 15, 2016USD ($) | Jun. 30, 2017USD ($) | Apr. 21, 2017km² | Mar. 25, 2010km² |
Status of our Business | ||||||||||||
Additional participating interest (as a percent) | 2.00% | |||||||||||
Tullow and Dana | Settlement Agreement | ||||||||||||
Status of our Business | ||||||||||||
Ownership interest (as a percent) | 100.00% | |||||||||||
Settlement amount | $ 700,000 | |||||||||||
Success fee per million barrels | $ 50,000 | |||||||||||
Guinea Concession | ||||||||||||
Status of our Business | ||||||||||||
Ownership interest (as a percent) | 37.00% | |||||||||||
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 | |||||||||||
Contract area retained (in square kilometers/square miles) | km² | 5,000 | 25,000 | ||||||||||
Maximum period of time over which current available liquidity could be exhausted | 30 days | |||||||||||
Estimated amount to limit cost recovery to share of expenditures | $ 165,000,000 | $ 165,000,000 | ||||||||||
Portion of oil and gas equipment moved from Takoradi, Ghana to Guinea | $ 1,600,000 | |||||||||||
Total value of oil and gas equipment stored at Takoradi, Ghana | $ 4,100,000 | |||||||||||
Agreed amount in training budget | 250,000 | 250,000 | ||||||||||
Estimated amount of unused portion of training program | $ 200,000 | 221,000 | ||||||||||
Maximum total budget | 120,000 | |||||||||||
Estimated Unused portion of Budget | $ 22,000 | |||||||||||
Guinea Concession | Subsequent Event | ||||||||||||
Status of our Business | ||||||||||||
Appraisal period | 2 years | |||||||||||
Percentage of appraisal extension (as a percent) | 100.00% | |||||||||||
Guinea Concession | SAPETRO | ||||||||||||
Status of our Business | ||||||||||||
Ownership interest sold (as a percent) | 50.00% | |||||||||||
Preliminary closing statement | $ 4,100,000 | |||||||||||
Payment for legal settlement | $ 300,000 | |||||||||||
Guinea Concession | SAPETRO | Subsequent Event | ||||||||||||
Status of our Business | ||||||||||||
Settlement amount | $ 4,924,000 | |||||||||||
Guinea Concession | SAPETRO | Farm-out Agreement | ||||||||||||
Status of our Business | ||||||||||||
Settlement amount | $ 700,000 | |||||||||||
Contract area retained (in square kilometers/square miles) | km² | 5,000 | |||||||||||
Ownership interest sold (as a percent) | 50.00% | |||||||||||
Additional participating interest (as a percent) | 2.00% | |||||||||||
Threshold amount for additional assigned 2% participating interest | $ 1,000,000 | |||||||||||
Participation interest in joint venture (as a percent) | 100.00% | |||||||||||
Estimated total drilling preparation cost | $ 4,400,000 | |||||||||||
Guinea Concession | Dana | ||||||||||||
Status of our Business | ||||||||||||
Ownership interest sold (as a percent) | 23.00% | |||||||||||
Guinea Concession | Tullow Guinea Ltd | ||||||||||||
Status of our Business | ||||||||||||
Ownership interest sold (as a percent) | 40.00% | |||||||||||
Guinea Concession | SAPETRO | Farm-out Agreement | ||||||||||||
Status of our Business | ||||||||||||
Contract area retained (in square kilometers/square miles) | km² | 5,000 | |||||||||||
Ownership interest sold (as a percent) | 50.00% |
ORGANIZATION AND SIGNIFICANT 38
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Series A Preferred Stock Offering (Details) | Jun. 30, 2017 | Apr. 26, 2017USD ($)$ / sharesshares | Apr. 26, 2017$ / sharesshares | Apr. 18, 2017$ / sharesshares | Mar. 28, 2017USD ($)$ / sharesshares | Mar. 17, 2017USD ($)$ / sharesshares | Apr. 26, 2017USD ($)item$ / sharesshares | Jun. 30, 2017 |
SHAREHOLDERS’ EQUITY | ||||||||
Number of closings of a private placement offerings held | item | 4 | |||||||
Units issued (in shares) | 50 | 710 | 511 | 680 | 1,951 | |||
Units issued, unit price (in dollars per share) | $ / shares | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | ||
Gross cash proceeds | $ | $ 2,000,000 | |||||||
Series A Preferred Stock | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Units issued, shares or units consisting of units issued (in shares) | 1 | 1 | 1 | 1 | 1 | 1 | ||
Dividend rate (as a percent) | 1.00% | 1.00% | 1.00% | |||||
Share price (in dollars per share) | $ / shares | $ 1,040 | $ 1,040 | $ 1,040 | |||||
Shares issued (in shares) | 50 | 710 | 511 | 680 | 1,951 | |||
Total equity issuance cost | $ | $ 200,000 | |||||||
Series A Investor Warrant | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Units issued, shares or units consisting of units issued (in shares) | 1 | 1 | 1 | 1 | 1 | 1 | ||
Exercise price (in dollars per share) | $ / shares | $ 3.50 | $ 3.50 | $ 3.50 | |||||
Number of shares each warrant can purchase (in shares) | 223 | 223 | 223 | |||||
Warrants issued to purchase shares of common stock (in shares) | 435,073 | 435,073 | 435,073 | |||||
Placement Agent Series A Warrants | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Exercise price (in dollars per share) | $ / shares | $ 3 | $ 3 | $ 3 | |||||
Number of shares each warrant can purchase (in shares) | 20,120 | 20,120 | 13,528 | 18,002 | 20,120 | |||
Total equity issuance cost | $ | $ 68,400 | $ 45,990 | $ 61,200 | |||||
Warrants issued to purchase shares of common stock (in shares) | 51,650 | 51,650 | 51,650 |
ORGANIZATION AND SIGNIFICANT 39
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Common Unit Offering (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 05, 2017 | Jun. 30, 2017 |
SHAREHOLDERS’ EQUITY | ||
Units issued (in shares) | 4,335,625 | |
Units issued, unit price (in dollars per share) | $ 1.46 | |
Gross proceeds | $ 6,300 | |
Common Stock | ||
SHAREHOLDERS’ EQUITY | ||
Shares issued (in shares) | 4,335,625 | 4,335,625 |
Total equity issuance cost | $ 600 | $ 664 |
Common Unit Investor Warrant | ||
SHAREHOLDERS’ EQUITY | ||
Number of shares each warrant can purchase (in shares) | 0.75 | |
Common stock exercisable period | 2 years | |
Exercise price (in dollars per share) | $ 1.825 | |
Warrants issued to purchase shares of common stock (in shares) | 3,251,726 | |
Placement Agent Common Units Warrants | ||
SHAREHOLDERS’ EQUITY | ||
Number of shares each warrant can purchase (in shares) | 303,502 | |
Exercise price (in dollars per share) | $ 1.825 | |
Warrants issued to purchase shares of common stock (in shares) | 303,502 |
ORGANIZATION AND SIGNIFICANT 40
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Oil and Gas Property (Details) $ in Millions | 12 Months Ended | |
Jun. 30, 2017USD ($)bbl | Jun. 30, 2016USD ($)bbl | |
Oil and Gas Properties | ||
Average period over which oil and natural gas price is based to derive future net revenue | 12 months | |
Discount percentage | 10.00% | |
Proved reserves | bbl | 0 | 0 |
Amortization of proved oil and gas properties subject to the full-cost ceiling test | $ | $ 13.3 | $ 14.3 |
ORGANIZATION AND SIGNIFICANT 41
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment, Other than Oil and Gas (Details) | 12 Months Ended |
Jun. 30, 2017 | |
Minimum | |
Property and equipment | |
Estimated useful lives of the assets | 3 years |
Maximum | |
Property and equipment | |
Estimated useful lives of the assets | 5 years |
ORGANIZATION AND SIGNIFICANT 42
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Impairments and Income Taxes (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Income Taxes | |||
Unrecognized tax benefits | $ 5,485 | $ 5,485 | $ 5,485 |
ORGANIZATION AND SIGNIFICANT 43
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Earnings per Share (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share | |||
Series A Preferred Stock units outstanding (in shares) | 1,791 | 0 | |
Series A Preferred Stock | If net income had been earned | |||
Earnings Per Share | |||
Common shares included in fully diluted earnings per share (in shares) | 1,545,776 | ||
Stock options | |||
Earnings Per Share | |||
Stock options (in shares) | 1,110,165 | 1,016,997 | 1,181,954 |
Average exercise price of common stock (in dollars per share) | $ 3.19 | $ 7.43 | $ 8.76 |
Stock options | If net income had been earned | |||
Earnings Per Share | |||
Common shares included in fully diluted earnings per share (in shares) | 25,000 | 25,000 | |
Stock options | |||
Earnings Per Share | |||
Potentially dilutive securities excluded from the computation of dilutive net loss per common share | 1,100,000 | 1,000,000 |
ORGANIZATION AND SIGNIFICANT 44
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Fair Value Measurements - Change in Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Gain on change in warrants derivative liability | ||
Unrealized gain on change in warrants derivative liability | $ 705 | $ 705 |
ORGANIZATION AND SIGNIFICANT 45
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Fair Value Measurements | ||
Warrants derivative liability | $ 0 | |
Carrying Value | ||
Fair Value Measurements | ||
Warrants derivative liability | $ 2,030 | |
Recurring | Level 3 | ||
Fair Value Measurements | ||
Warrants derivative liability | $ 2,030 |
ORGANIZATION AND SIGNIFICANT 46
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Fair Value Measurements - Warrant Derivative Liability (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Warrant derivative liability | |
Warrant derivative liability as of June 30, 2016 | $ 0 |
Liabilities incurred | 2,735 |
Unrealized gain | (705) |
Warrant derivative liability as of June 30, 2017 | $ 2,030 |
ORGANIZATION AND SIGNIFICANT 47
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Fair Value Measurements - Fair Value Assumptions (Details) | 12 Months Ended |
Jun. 30, 2017 | |
Weighted average assumptions: | |
Expected dividend yield (as a percent) | 0.00% |
PROPERTY AND EQUIPMENT - Useful
PROPERTY AND EQUIPMENT - Useful Lives (Details) | 12 Months Ended |
Jun. 30, 2017 | |
Computer equipment and software | |
Property and equipment | |
Useful Life | 3 years |
Office equipment and furniture | |
Property and equipment | |
Useful Life | 5 years |
Leasehold improvements | |
Property and equipment | |
Useful Life | 3 years |
PROPERTY AND EQUIPMENT - Proper
PROPERTY AND EQUIPMENT - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Property and equipment | ||
Total Cost | $ 2,160 | $ 2,126 |
Less - Accumulated depreciation | (2,109) | (2,075) |
Property and equipment, net | 51 | 51 |
Computer equipment and software | ||
Property and equipment | ||
Total Cost | 1,319 | 1,285 |
Office equipment and furniture | ||
Property and equipment | ||
Total Cost | 307 | 307 |
Leasehold improvements | ||
Property and equipment | ||
Total Cost | $ 534 | $ 534 |
PROPERTY AND EQUIPMENT - Impair
PROPERTY AND EQUIPMENT - Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Impairments of property and equipment | ||
Impairments of property and equipment | $ 0 | $ 0 |
INVESTMENT IN OIL AND GAS PRO51
INVESTMENT IN OIL AND GAS PROPERTIES - Ownership Interests (Details) - Guinea Concession - m | Sep. 08, 2017 | Jul. 12, 2017 | Jun. 30, 2017 | Jun. 02, 2017 |
INVESTMENT IN OIL AND GAS PROPERTIES | ||||
Ownership interest in Guinea Concession (as a percent) | 37.00% | |||
SAPETRO | ||||
INVESTMENT IN OIL AND GAS PROPERTIES | ||||
Ownership interest sold (as a percent) | 50.00% | |||
Tullow Guinea Ltd | ||||
INVESTMENT IN OIL AND GAS PROPERTIES | ||||
Ownership interest sold (as a percent) | 40.00% | |||
Dana | ||||
INVESTMENT IN OIL AND GAS PROPERTIES | ||||
Ownership interest sold (as a percent) | 23.00% | |||
Subsequent Event | ||||
INVESTMENT IN OIL AND GAS PROPERTIES | ||||
Appraisal period | 2 years | |||
Interval (in meters) | 5 |
INVESTMENT IN OIL AND GAS PRO52
INVESTMENT IN OIL AND GAS PROPERTIES - Guinea Concession - General Information (Details) | Oct. 08, 2017USD ($) | Sep. 19, 2017 | Sep. 08, 2017m | Jul. 12, 2017 | Jun. 12, 2017USD ($) | Jun. 05, 2017USD ($) | Jun. 02, 2017USD ($) | Jan. 29, 2017USD ($) | Sep. 15, 2016USD ($)km² | Mar. 25, 2010km²m | Jun. 30, 2017USD ($)itemm$ / km² | Jun. 30, 2016USD ($)km² | Jun. 30, 2012km² | Apr. 21, 2017km² |
INVESTMENT IN OIL AND GAS PROPERTIES | ||||||||||||||
Contract area retained as percentage of original contract area, required to be relinquished under PSC | 25.00% | |||||||||||||
Additional participating interest (as a percent) | 2.00% | |||||||||||||
Guinea Concession | ||||||||||||||
INVESTMENT IN OIL AND GAS PROPERTIES | ||||||||||||||
Contract area retained (in square kilometers/square miles) | km² | 5,000 | 25,000 | ||||||||||||
Contract area retained as percentage of original contract area | 30.00% | |||||||||||||
Current contract area | km² | 18,750 | |||||||||||||
Area of 3D seismic required to be acquired (in square kilometers) | km² | 3,600 | |||||||||||||
Amount spent for work obligations | $ 200,000,000 | |||||||||||||
Guinea's participating interest in development of discovery as percentage of costs, maximum (as a percent) | 15.00% | |||||||||||||
Guinea's share of cost and profit oil (as a percent) | 62.50% | |||||||||||||
Annual surface tax, obligated to pay (in dollars per square kilometers) | $ / km² | 2 | |||||||||||||
Extension of exploration period Additionally allowable to completion of appraisal of discovery made | 1 year | |||||||||||||
Number of exploratory well in extension period | item | 1 | |||||||||||||
Minimum depth to be seabed | m | 2,500 | |||||||||||||
Notice period for termination (in days) | 30 days | |||||||||||||
Estimated amount to limit cost recovery to share of expenditures | $ 165,000,000 | $ 165,000,000 | ||||||||||||
Agreed amount in training budget | $ 250,000 | 250,000 | ||||||||||||
Estimated amount of unused portion of training program | $ 200,000 | 221,000 | ||||||||||||
Maximum total budget | 120,000 | |||||||||||||
Estimated Unused portion of Budget | $ 22,000 | |||||||||||||
Guinea Concession | Minimum | ||||||||||||||
INVESTMENT IN OIL AND GAS PROPERTIES | ||||||||||||||
Minimum depth to be reached to satisfy work requirement | m | 2,500 | |||||||||||||
Area of 3D seismic required to be acquired (in square kilometers) | km² | 2,000 | |||||||||||||
Guinea Concession | Subsequent Event | ||||||||||||||
INVESTMENT IN OIL AND GAS PROPERTIES | ||||||||||||||
Percentage of appraisal extension (as a percent) | 100.00% | |||||||||||||
Appraisal period | 2 years | |||||||||||||
Interval (in meters) | m | 5 | |||||||||||||
SAPETRO | Guinea Concession | ||||||||||||||
INVESTMENT IN OIL AND GAS PROPERTIES | ||||||||||||||
Ownership interest sold (as a percent) | 50.00% | |||||||||||||
Preliminary closing statement | $ 4,100,000 | |||||||||||||
Payment for legal settlement | $ 300,000 | |||||||||||||
SAPETRO | Guinea Concession | Subsequent Event | ||||||||||||||
INVESTMENT IN OIL AND GAS PROPERTIES | ||||||||||||||
Settlement amount | $ 4,924,000 | |||||||||||||
SAPETRO | Guinea Concession | Farm-out Agreement | ||||||||||||||
INVESTMENT IN OIL AND GAS PROPERTIES | ||||||||||||||
Contract area retained (in square kilometers/square miles) | km² | 5,000 | |||||||||||||
Ownership interest sold (as a percent) | 50.00% | |||||||||||||
Participation interest in joint venture (as a percent) | 100.00% | |||||||||||||
Estimated total drilling preparation cost | $ 4,400,000 | |||||||||||||
Settlement amount | $ 700,000 | |||||||||||||
Additional participating interest (as a percent) | 2.00% | |||||||||||||
Threshold amount for additional assigned 2% participating interest | $ 1,000,000 |
INVESTMENT IN OIL AND GAS PRO53
INVESTMENT IN OIL AND GAS PROPERTIES - Guinea Concession - Revenue Split (Details) - Guinea Concession - bbl / d | 12 Months Ended | |
Jun. 30, 2017 | Mar. 25, 2010 | |
INVESTMENT IN OIL AND GAS PROPERTIES | ||
Guinea's participating interest in development of discovery as percentage of costs, maximum (as a percent) | 15.00% | |
Maximum | ||
INVESTMENT IN OIL AND GAS PROPERTIES | ||
Guinea's participating interest in development of discovery as percentage of costs, maximum (as a percent) | 15.00% | |
From 0 to 2,000 | ||
INVESTMENT IN OIL AND GAS PROPERTIES | ||
Guinea's share in revenue, after recovery cost of operations (as a percent) | 25.00% | |
Contractor share in revenue, after recovery cost of operations (as a percent) | 75.00% | |
From 0 to 2,000 | Minimum | ||
INVESTMENT IN OIL AND GAS PROPERTIES | ||
Daily production (in barrels per day) | 0 | |
From 0 to 2,000 | Maximum | ||
INVESTMENT IN OIL AND GAS PROPERTIES | ||
Daily production (in barrels per day) | 2,000 | |
From 2,001 to 5,000 | ||
INVESTMENT IN OIL AND GAS PROPERTIES | ||
Guinea's share in revenue, after recovery cost of operations (as a percent) | 30.00% | |
Contractor share in revenue, after recovery cost of operations (as a percent) | 70.00% | |
From 2,001 to 5,000 | Minimum | ||
INVESTMENT IN OIL AND GAS PROPERTIES | ||
Daily production (in barrels per day) | 2,001 | |
From 2,001 to 5,000 | Maximum | ||
INVESTMENT IN OIL AND GAS PROPERTIES | ||
Daily production (in barrels per day) | 5,000 | |
From 5,001 to 100,000 | ||
INVESTMENT IN OIL AND GAS PROPERTIES | ||
Guinea's share in revenue, after recovery cost of operations (as a percent) | 41.00% | |
Contractor share in revenue, after recovery cost of operations (as a percent) | 59.00% | |
From 5,001 to 100,000 | Minimum | ||
INVESTMENT IN OIL AND GAS PROPERTIES | ||
Daily production (in barrels per day) | 5,001 | |
From 5,001 to 100,000 | Maximum | ||
INVESTMENT IN OIL AND GAS PROPERTIES | ||
Daily production (in barrels per day) | 100,000 | |
Over 100,001 | ||
INVESTMENT IN OIL AND GAS PROPERTIES | ||
Guinea's share in revenue, after recovery cost of operations (as a percent) | 60.00% | |
Contractor share in revenue, after recovery cost of operations (as a percent) | 40.00% | |
Over 100,001 | Minimum | ||
INVESTMENT IN OIL AND GAS PROPERTIES | ||
Daily production (in barrels per day) | 100,001 |
INVESTMENT IN OIL AND GAS PRO54
INVESTMENT IN OIL AND GAS PROPERTIES - Accounting for Oil and Gas Property and Equipment Costs (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017USD ($)bbl | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2017USD ($)bbl | Jun. 30, 2016USD ($)bbl | Jun. 30, 2013USD ($)bbl | |
INVESTMENT IN OIL AND GAS PROPERTIES | ||||||
Reserves | bbl | 0 | 0 | 0 | |||
Unproved Oil and Gas Properties | $ 0 | $ 0 | $ 0 | |||
Full impairment of unproved oil and gas properties | $ 11,288 | $ 2,028 | $ 14,331 | $ 13,316 | 14,331 | |
Guinea Concession | ||||||
INVESTMENT IN OIL AND GAS PROPERTIES | ||||||
Reserves | bbl | 0 | |||||
Full-Cost Ceiling Test written-down | $ 116,800 | |||||
Full impairment of unproved oil and gas properties | $ 14,300 |
INVESTMENT IN OIL AND GAS PRO55
INVESTMENT IN OIL AND GAS PROPERTIES - Total Capitalized Costs - Guinea Concession (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Oil and Gas Properties: | ||
Unproved Oil and Gas Properties | $ 0 | $ 0 |
ACCOUNTS PAYABLE AND ACCRUED 56
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Accounts payable and accrued expenses | ||
Accounts payable—trade | $ 4,010 | $ 1,361 |
Other Accrued | 672 | 382 |
Accounts payable and accrued expenses | $ 4,682 | $ 1,743 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Current deferred tax assets: | ||
Other current deferred tax assets | $ 0 | $ 0 |
Total current temporary differences | 0 | 0 |
Less: valuation allowance | 0 | 0 |
Net current deferred tax assets | 0 | 0 |
Non-current deferred tax assets | ||
Stock compensation | 2,470 | 2,464 |
Property and Equipment | 15 | 69 |
Oil and gas properties | 13,582 | 21,504 |
Capital loss | 144 | 144 |
Other | 111 | 0 |
Total non-current deferred tax assets | 16,322 | 24,181 |
Non-current deferred tax liabilities | ||
Property and Equipment | 0 | 0 |
Net operating losses | 40,281 | 36,138 |
Total | 56,603 | 60,319 |
Less: valuation allowance | (56,603) | (60,319) |
Net non-current deferred tax assets (liabilities) | $ 0 | $ 0 |
INCOME TAXES - Additional Discl
INCOME TAXES - Additional Disclosures (Details) - SCS Corporation Ltd $ in Millions | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Components of deferred tax assets | |
Deferred income tax asset | $ 0 |
Differences in profit between book and tax basis | $ 130 |
INCOME TAXES - Net Operating Lo
INCOME TAXES - Net Operating Loss Carryforwards (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2012 | Jun. 30, 2001 | Jan. 14, 1998 | |
Net operating loss carryforwards | ||||
Net operating loss carryforwards | $ 127,400,000 | |||
Excess tax benefits related to stock compensation | $ 2,200,000 | |||
Domestic Tax Authority | ||||
Net operating loss carryforwards | ||||
Amount of net operating losses carryforwards, prior to ownership change | $ 3,300,000 | $ 900,000 | ||
Net operating losses carryforwards per year | $ 800,000 | $ 200,000 | ||
Net operating losses removed due to restructuring | $ (13,300,000) |
INCOME TAXES - U.S. Statutory T
INCOME TAXES - U.S. Statutory Tax Rate (Details) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal rate (as a percent) | 35.00% | 35.00% |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of the Actual Taxes to the U.S. Statutory Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of the actual taxes | ||
Income tax (benefit) at the statutory federal rate (35%) | $ (7,534) | $ (7,996) |
Increase (decrease) resulting from nondeductible stock compensation | 38 | 56 |
Foreign Rate Differential | (330) | 914 |
Disallowed foreign capital loss | 12,136 | |
Derivative loss | (247) | 35 |
Other, net | (323) | |
Change in valuation allowance | (3,740) | 6,991 |
Net income tax expense | $ 0 | $ 0 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Income Taxes | ||
Unrecognized tax benefits that, if recognized, would affect our effective tax rate | $ 5,485 | $ 5,485 |
INCOME TAXES - Gross Unrecogniz
INCOME TAXES - Gross Unrecognized Tax Benefits Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Summary of activity related to gross unrecognized tax benefits | ||
Balance at the beginning of the period | $ 5,485 | $ 5,485 |
Additions to tax positions related to the current year | 0 | 0 |
Additions to tax positions related to prior years | 0 | 0 |
Statute expirations | 0 | 0 |
Balance at the end of the period | $ 5,485 | $ 5,485 |
SHAREHOLDERS_ EQUITY - Series A
SHAREHOLDERS’ EQUITY - Series A Preferred Stock Offering - Units Offered (Details) - $ / shares | Apr. 26, 2017 | Apr. 18, 2017 | Mar. 28, 2017 | Mar. 17, 2017 | Apr. 26, 2017 |
SHAREHOLDERS’ EQUITY | |||||
Units issued (in shares) | 50 | 710 | 511 | 680 | 1,951 |
Units issued, unit price (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 |
Series A Preferred Stock | |||||
SHAREHOLDERS’ EQUITY | |||||
Units issued, shares or units consisting of units issued (in shares) | 1 | 1 | 1 | 1 | 1 |
Series A Investor Warrant | |||||
SHAREHOLDERS’ EQUITY | |||||
Units issued, shares or units consisting of units issued (in shares) | 1 | 1 | 1 | 1 | 1 |
SHAREHOLDERS_ EQUITY - Series65
SHAREHOLDERS’ EQUITY - Series A Preferred Stock Offering - Proceeds (Details) $ in Millions | 1 Months Ended |
Apr. 26, 2017USD ($) | |
SHAREHOLDERS’ EQUITY | |
Gross cash proceeds | $ 2 |
Net proceeds | $ 1.6 |
SHAREHOLDERS_ EQUITY - Series66
SHAREHOLDERS’ EQUITY - Series A Preferred Stock Offering - Issued to Subscribers (Details) - shares | Apr. 26, 2017 | Apr. 18, 2017 | Mar. 28, 2017 | Mar. 17, 2017 | Apr. 26, 2017 |
Series A Preferred Stock | |||||
SHAREHOLDERS’ EQUITY | |||||
Shares issued (in shares) | 50 | 710 | 511 | 680 | 1,951 |
Series A Investor Warrant, March 17, 2017 | |||||
SHAREHOLDERS’ EQUITY | |||||
Warrants issued to purchase shares of common stock (in shares) | 151,640 | ||||
Series A Investor Warrant, March 28, 2017 | |||||
SHAREHOLDERS’ EQUITY | |||||
Warrants issued to purchase shares of common stock (in shares) | 113,953 | ||||
Series A Investor Warrant, April 18, 2017 | |||||
SHAREHOLDERS’ EQUITY | |||||
Warrants issued to purchase shares of common stock (in shares) | 158,330 | ||||
Series A Investor Warrant, April 26, 2017 | |||||
SHAREHOLDERS’ EQUITY | |||||
Warrants issued to purchase shares of common stock (in shares) | 11,150 | 11,150 |
SHAREHOLDERS_ EQUITY - Series67
SHAREHOLDERS’ EQUITY - Series A Preferred Stock Offering - General Information (Details) - USD ($) | Jun. 30, 2017 | Mar. 17, 2017 | Jun. 30, 2017 |
SHAREHOLDERS’ EQUITY | |||
Maximum value of pro rata shares to be purchased | $ 3,000,000 | ||
Subscription agreement closing term | P12M | ||
Series A Preferred Stock | |||
SHAREHOLDERS’ EQUITY | |||
Dividend rate (as a percent) | 1.00% | 1.00% | 1.00% |
Percentage of stated value portion of price per share | 115.00% | ||
Percentage of price per share accrued but unpaid dividends | 115.00% | ||
Conversion, common stock effective period, minimum | 6 months | ||
Conversion, common stock effective period, maximum | 9 months | ||
Conversion price per share (in dollars per share) | $ 2.75 | $ 2.75 | |
Lowest closing price percentage (as a percent) | 80.00% | 80.00% | |
Number of consecutive trading days | 21 days | ||
Floor (in dollars per share) | $ 0.25 | $ 0.25 | |
Common stock issued value, maximum | $ 1,000,000 | $ 1,000,000 | |
Percentage of consent of holders required to authorize or create any class of stock | 66.67% |
SHAREHOLDERS_ EQUITY - Series68
SHAREHOLDERS’ EQUITY - Series A Preferred Stock Offering - Placement Agent (Details) - USD ($) | Apr. 26, 2017 | Mar. 28, 2017 | Mar. 17, 2017 | Apr. 26, 2017 |
Series A Preferred Stock | ||||
SHAREHOLDERS’ EQUITY | ||||
Percentage of placement agent commission fee (as a percent) | 9.00% | |||
Percentage of warrants to purchase a number of shares of common stock (as a percent) | 7.00% | |||
Fixed purchase (in dollars per share) | $ 2.75 | $ 2.75 | ||
Total equity issuance cost | $ 200,000 | |||
Placement Agent Series A Warrants | ||||
SHAREHOLDERS’ EQUITY | ||||
Exercise price (in dollars per share) | $ 3 | $ 3 | ||
Total equity issuance cost | $ 68,400 | $ 45,990 | $ 61,200 | |
Number of shares each warrant can purchase (in shares) | 20,120 | 13,528 | 18,002 | 20,120 |
SHAREHOLDERS_ EQUITY - Series69
SHAREHOLDERS’ EQUITY - Series A Investor Warrants - Series A Offering - General Information (Details) $ in Millions | Jun. 30, 2017USD ($) |
Series A Investor Warrant | |
SHAREHOLDERS’ EQUITY | |
Fair value of warrants | $ 0.1 |
SHAREHOLDERS_ EQUITY - Series70
SHAREHOLDERS’ EQUITY - Series A Investor Warrants - Series A Offering - Weighted Average Assumptions (Details) | 12 Months Ended |
Jun. 30, 2017 | |
Weighted average assumptions: | |
Expected dividend yield (as a percent) | 0.00% |
Series A Investor Warrant | |
Weighted average assumptions: | |
Expected term (in years) | 1 year 9 months |
Expected volatility (as a percent) | 75.00% |
Risk-free interest rate (as a percent) | 1.34% |
Expected dividend yield (as a percent) | 0.00% |
SHAREHOLDERS_ EQUITY - Placemen
SHAREHOLDERS’ EQUITY - Placement Agent Warrants - Series A Offering - General Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Apr. 26, 2017 | Jun. 30, 2016 | |
SHAREHOLDERS’ EQUITY | |||
Preferred dividends | $ 1,511,000 | ||
Accumulated deficit (no retained earnings) | (329,517,000) | $ (307,991,000) | |
Placement Agent Series A Warrants | |||
SHAREHOLDERS’ EQUITY | |||
Warrants issued to purchase shares of common stock (in shares) | 51,650 | ||
Exercise price (in dollars per share) | $ 3 | ||
Fair value of warrants | 15,029 | ||
Additional Paid-in Capital | |||
SHAREHOLDERS’ EQUITY | |||
Preferred dividends | $ 1,500,000 |
SHAREHOLDERS_ EQUITY - Placem72
SHAREHOLDERS’ EQUITY - Placement Agent Warrants - Series A Offering - Weighted Average Assumptions (Details) | 12 Months Ended |
Jun. 30, 2017 | |
Weighted average assumptions: | |
Expected dividend yield (as a percent) | 0.00% |
Placement Agent Series A Warrants | |
Weighted average assumptions: | |
Expected term (in years) | 1 year 9 months |
Expected volatility (as a percent) | 75.00% |
Risk-free interest rate (as a percent) | 1.34% |
Expected dividend yield (as a percent) | 0.00% |
SHAREHOLDERS_ EQUITY - Benefici
SHAREHOLDERS’ EQUITY - Beneficial Conversion Feature (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 26, 2017 | Apr. 26, 2017 | Apr. 18, 2017 | Mar. 28, 2017 | Mar. 28, 2017 | Mar. 17, 2017 |
Series A Preferred Stock | ||||||
SHAREHOLDERS’ EQUITY | ||||||
Share price (in dollars per share) | $ 1,040 | $ 1,040 | ||||
Aggregate beneficial conversion feature | $ 0.5 | $ 2.6 | ||||
A reduction (the discount) to the additional paid-in capital | $ 0.7 | $ 1.2 | ||||
Amortization period for discount on beneficial conversion feature (in months) | 6 months | 6 months | ||||
Common Stock | ||||||
SHAREHOLDERS’ EQUITY | ||||||
Conversion price (in dollars per share) | $ 0.47 | $ 0.47 | ||||
Common Stock | Minimum | ||||||
SHAREHOLDERS’ EQUITY | ||||||
Share price (in dollars per share) | 1.46 | $ 1.46 | $ 1.46 | $ 1.60 | 1.60 | 1.60 |
Conversion price (in dollars per share) | 0.80 | 0.80 | ||||
Common Stock | Maximum | ||||||
SHAREHOLDERS’ EQUITY | ||||||
Share price (in dollars per share) | 1.75 | $ 1.75 | 1.75 | $ 1.75 | $ 1.75 | $ 1.75 |
Conversion price (in dollars per share) | $ 0.87 | $ 0.87 |
SHAREHOLDERS_ EQUITY - Common S
SHAREHOLDERS’ EQUITY - Common Stock - Shares Issued for Services (Details) - Pacific Drilling Operations $ / shares in Units, $ in Millions | Jun. 02, 2017USD ($)$ / sharesshares |
SHAREHOLDERS’ EQUITY | |
Value of common stock issuable | $ | $ 1 |
Average market price (in days) | 10 days |
Share price (in dollars per share) | $ / shares | $ 1.761 |
Number of unregistered shares of common stock issued (in shares) | shares | 567,859 |
Maximum days for security instrument to put in place | 10 days |
SHAREHOLDERS_ EQUITY - Common75
SHAREHOLDERS’ EQUITY - Common Stock - Conversion of Series A Preferred Stock (Details) | 12 Months Ended |
Jun. 30, 2017shares | |
Series A Preferred Stock | |
SHAREHOLDERS’ EQUITY | |
Number of shares converted (in shares) | 160 |
Common Stock | |
SHAREHOLDERS’ EQUITY | |
Conversion of preferred stock (in shares) | 135,625 |
SHAREHOLDERS_ EQUITY - Common U
SHAREHOLDERS’ EQUITY - Common Unit Offering - Units Offered and Proceeds (Details) $ / shares in Units, $ in Millions | Jun. 05, 2017USD ($)$ / sharesshares |
SHAREHOLDERS’ EQUITY | |
Units issued (in shares) | shares | 4,335,625 |
Units issued, unit price (in dollars per share) | $ / shares | $ 1.46 |
Gross proceeds | $ | $ 6.3 |
SHAREHOLDERS_ EQUITY - Common77
SHAREHOLDERS’ EQUITY - Common Unit Offering - Placement Agent (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 05, 2017 | Jun. 30, 2017 |
Common Stock | ||
SHAREHOLDERS’ EQUITY | ||
Percentage of placement agent commission fee (as a percent) | 9.00% | |
Percentage of warrants to purchase a number of shares of common stock (as a percent) | 7.00% | |
Total equity issuance cost | $ 600 | $ 664 |
Placement Agent Common Units Warrants | ||
SHAREHOLDERS’ EQUITY | ||
Exercise price (in dollars per share) | $ 1.825 | |
Number of shares each warrant can purchase (in shares) | 303,502 |
SHAREHOLDERS_ EQUITY - Common78
SHAREHOLDERS’ EQUITY - Common Stock - Investor Warrants - Common Unit Offering (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 05, 2017 | Jun. 30, 2017 |
Common Stock | ||
SHAREHOLDERS’ EQUITY | ||
Units issued, shares or units consisting of units issued (in shares) | 1 | |
Shares issued (in shares) | 4,335,625 | 4,335,625 |
Common Unit Investor Warrant | ||
SHAREHOLDERS’ EQUITY | ||
Number of shares each warrant can purchase (in shares) | 0.75 | |
Common stock exercisable period | 2 years | |
Exercise price (in dollars per share) | $ 1.825 | |
Warrants issued to purchase shares of common stock (in shares) | 3,251,726 | |
Fair value of warrants | $ 1.7 |
SHAREHOLDERS_ EQUITY - Common79
SHAREHOLDERS’ EQUITY - Common Stock - Investor Warrants - Weighted Average Assumptions (Details) | 12 Months Ended |
Jun. 30, 2017 | |
Weighted average assumptions: | |
Expected dividend yield (as a percent) | 0.00% |
Common Unit Investor Warrant | |
Weighted average assumptions: | |
Expected term (in years) | 1 year 11 months 5 days |
Expected volatility (as a percent) | 76.00% |
Risk-free interest rate (as a percent) | 1.37% |
Expected dividend yield (as a percent) | 0.00% |
SHAREHOLDERS_ EQUITY - Placem80
SHAREHOLDERS’ EQUITY - Placement Agent Warrants - Common Unit Offering - General Information (Details) - Placement Agent Common Units Warrants - USD ($) | Jun. 30, 2017 | Jun. 05, 2017 |
SHAREHOLDERS’ EQUITY | ||
Warrants issued to purchase shares of common stock (in shares) | 303,502 | |
Exercise price (in dollars per share) | $ 1.825 | |
Fair value of warrants | $ 161,410 | $ 201,000 |
SHAREHOLDERS_ EQUITY - Placem81
SHAREHOLDERS’ EQUITY - Placement Agent Warrants - Common Unit Offering - Weighted Average Assumptions (Details) | 12 Months Ended |
Jun. 30, 2017 | |
Weighted average assumptions: | |
Expected dividend yield (as a percent) | 0.00% |
Placement Agent Common Units Warrants | |
Weighted average assumptions: | |
Expected term (in years) | 1 year 11 months 5 days |
Expected volatility (as a percent) | 76.00% |
Risk-free interest rate (as a percent) | 1.37% |
Expected dividend yield (as a percent) | 0.00% |
SHAREHOLDERS_ EQUITY - Registra
SHAREHOLDERS’ EQUITY - Registration Rights (Details) - USD ($) | Jul. 27, 2017 | Jun. 30, 2017 | Jun. 05, 2017 | Apr. 26, 2017 | Apr. 18, 2017 | Mar. 28, 2017 | Mar. 17, 2017 | Apr. 26, 2017 | Jun. 30, 2017 | Jun. 30, 2016 |
Common Stock | ||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||
Piggyback registration right term | P2Y | |||||||||
Number of consecutive days suspended or halted for trading | 3 days | |||||||||
Accrue rate per annum of purchase price of monetary penalties payable by the company to the holders of registrable shares | 12.00% | |||||||||
Percentage of aggregate purchase price | 5.00% | |||||||||
Shares issued (in shares) | 4,335,625 | 4,335,625 | ||||||||
Number of days for filing registration statement after final closing | 45 days | |||||||||
Number of days for registration statement to be declared after filing deadline | 90 days | |||||||||
Number of unregistered shares of common stock issued (in shares) | 567,859 | |||||||||
Series A Preferred Stock | ||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||
Piggyback registration right term | P2Y | |||||||||
Number of consecutive days suspended or halted for trading | 3 days | |||||||||
Accrue rate per annum of purchase price of monetary penalties payable by the company to the holders of registrable shares | 12.00% | |||||||||
Percentage of aggregate purchase price | 5.00% | |||||||||
Common shares excluded (in shares) | 12,573,598 | 12,573,598 | 12,573,598 | |||||||
Subscriber Option, shares issuable (in shares) | $ 3,000 | |||||||||
Number of shares converted (in shares) | 160 | |||||||||
Shares issued (in shares) | 50 | 710 | 511 | 680 | 1,951 | |||||
Conversion price, floor (in dollars per share) | $ 0.25 | $ 0.25 | ||||||||
Series A Investor Warrant | ||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||
Warrants, shares issuable (in shares) | $ 669,000 | |||||||||
Placement Agent Series A Warrants | ||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||
Warrants, shares issuable (in shares) | $ 79,420 |
SHAREHOLDERS_ EQUITY - Exercise
SHAREHOLDERS’ EQUITY - Exercise of Stock Options (Details) - shares | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
SHAREHOLDERS’ EQUITY | ||
Exercise of warrants (in shares) | 0 | |
Common Stock | ||
SHAREHOLDERS’ EQUITY | ||
Exercise of stock options (in shares) | 183,492 | 0 |
SHAREHOLDERS_ EQUITY - Awards I
SHAREHOLDERS’ EQUITY - Awards Issued in Lieu of Cash Bonus (Details) | 12 Months Ended |
Jun. 30, 2017shares | |
SHAREHOLDERS’ EQUITY | |
Stock issued in lieu of cash bonus (in shares) | 536,091 |
SHAREHOLDERS_ EQUITY - Stock Is
SHAREHOLDERS’ EQUITY - Stock Issued for Settlement (Details) - Settlement of Iroquois Lawsuit - shares | Feb. 02, 2017 | Dec. 31, 2016 |
SHAREHOLDERS’ EQUITY | ||
Number of shares will issue to the plaintiffs (in shares) | 600,000 | |
Stock issued for legal settlement (in shares) | 600,000 |
SHARE-BASED COMPENSATION - Gene
SHARE-BASED COMPENSATION - General Information (Details) | Jan. 27, 2016shares | Feb. 18, 2010plan | Jun. 30, 2017shares |
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 | 267,912 |
SHARE-BASED COMPENSATION - Info
SHARE-BASED COMPENSATION - Information about Options (Details) - Stock options - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Options | ||
Number of options granted | 498,500 | 183,860 |
Compensation expense recognized | $ 189,880 | $ 352,653 |
Weighted average award-date fair value of options outstanding (in dollars per share) | $ 1.37 | $ 5.03 |
SHARE-BASED COMPENSATION - Sign
SHARE-BASED COMPENSATION - Significant Assumptions (Details) - Stock options | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Significant assumptions used to compute the fair market values | ||
Risk-free interest rate, low end of range (as a percent) | 0.90% | 0.36% |
Risk-free interest rate, high end of range (as a percent) | 1.86% | 1.01% |
Dividend yield (as a percent) | 0.00% | 0.00% |
Volatility factor, low end of range (as a percent) | 109.00% | 109.00% |
Volatility factor, high end of range (as a percent) | 157.00% | 148.00% |
Minimum | ||
Significant assumptions used to compute the fair market values | ||
Expected life (years) | 2 years 10 months 24 days | 6 months |
Maximum | ||
Significant assumptions used to compute the fair market values | ||
Expected life (years) | 4 years 9 months 18 days | 2 years 10 months 15 days |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Option Activity (Details) - Stock options - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Options | |||
Outstanding at the beginning of the period (in shares) | 1,016,997 | 1,181,954 | |
Awarded (in shares) | 498,500 | 183,860 | |
Exercised (in shares) | (183,492) | ||
Forfeited (in shares) | (39,175) | ||
Expired (in shares) | (221,840) | (309,642) | |
Outstanding at the end of the period (in shares) | 1,110,165 | 1,016,997 | 1,181,954 |
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 7.43 | $ 8.76 | |
Awarded (in dollars per share) | 1.37 | 1.40 | |
Exercised (in dollars per share) | 0.66 | ||
Forfeited (in dollars per share) | 4.21 | ||
Expired (in dollars per share) | 9.64 | 10.71 | |
Outstanding at the end of the period (in dollars per share) | $ 3.19 | $ 7.43 | $ 8.76 |
Stock Options | |||
Options - Options exercisable at end of period (in shares) | 740,915 | ||
Weighted Average Share Price - Options exercisable at end of period (in dollars per share) | $ 4.05 | ||
Aggregate intrinsic value - Options outstanding | $ 8,327 | ||
Weighted average remaining contractual term (years) - Options outstanding | 3 years 6 months 22 days | 3 years 4 months 21 days | 3 years 1 month 21 days |
Weighted average remaining contractual term (years) - Options exercisable | 2 years 11 months 9 days |
SHARE-BASED COMPENSATION - Opti
SHARE-BASED COMPENSATION - Options Outstanding and Exercisable (Details) - Stock options - $ / shares | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Options outstanding and exercisable | ||
Outstanding Number of Shares | 1,110,165 | 1,016,997 |
Exercisable Number of Shares | 740,915 | 919,396 |
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) | $ 0.41 | |
Exercise Price, high end of the range (in dollars per share) | $ 4 | |
Outstanding Number of Shares | 57,915 | |
Remaining Life (in years) | 1 year | |
Exercisable Number of Shares | 57,915 | |
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) | $ 0.41 | |
Exercise Price, high end of the range (in dollars per share) | $ 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) | $ 0.41 | |
Exercise Price, high end of the range (in dollars per share) | $ 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) | $ 0.41 | |
Exercise Price, high end of the range (in dollars per share) | $ 4 | |
Outstanding Number of Shares | 112,610 | |
Remaining Life (in years) | 4 years | |
Exercisable Number of Shares | 33,360 | |
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) | $ 0.41 | |
Exercise Price, high end of the range (in dollars per share) | $ 4 | |
Outstanding Number of Shares | 478,500 | |
Remaining Life (in years) | 5 years | |
Exercisable Number of Shares | 188,500 | |
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) | $ 4.01 | $ 4.01 |
Exercise Price, high end of the range (in dollars per share) | $ 10 | $ 10 |
Outstanding Number of Shares | 24,000 | 97,938 |
Remaining Life (in years) | 1 year | 1 year |
Exercisable Number of Shares | 24,000 | 97,938 |
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) | $ 4.01 | $ 4.01 |
Exercise Price, high end of the range (in dollars per share) | $ 10 | $ 10 |
Outstanding Number of Shares | 4,062 | 9,000 |
Remaining Life (in years) | 2 years | 2 years |
Exercisable Number of Shares | 4,062 | 9,000 |
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) | $ 4.01 | $ 4.01 |
Exercise Price, high end of the range (in dollars per share) | $ 10 | $ 10 |
Outstanding Number of Shares | 7,000 | 4,062 |
Remaining Life (in years) | 3 years | 3 years |
Exercisable Number of Shares | 7,000 | 4,062 |
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) | $ 10.01 | |
Exercise Price, high end of the range (in dollars per share) | $ 20 | |
Outstanding Number of Shares | 1,875 | |
Remaining Life (in years) | 1 year | |
Exercisable Number of Shares | 1,875 | |
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) | $ 10.01 | $ 10.01 |
Exercise Price, high end of the range (in dollars per share) | $ 20 | $ 20 |
Outstanding Number of Shares | 17,500 | 28,750 |
Remaining Life (in years) | 4 years | 4 years |
Exercisable Number of Shares | 17,500 | 28,750 |
Exercise price range $20.01 - $30.00, remaining life 1 year | ||
Options outstanding and exercisable | ||
Exercise Price, low end of the range (in dollars per share) | $ 20.01 | |
Exercise Price, high end of the range (in dollars per share) | $ 30 | |
Outstanding Number of Shares | 1,250 | |
Remaining Life (in years) | 1 year | |
Exercisable Number of Shares | 1,250 | |
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) | $ 20.01 | $ 20.01 |
Exercise Price, high end of the range (in dollars per share) | $ 30 | $ 30 |
Outstanding Number of Shares | 28,500 | 31,000 |
Remaining Life (in years) | 4 years | 4 years |
Exercisable Number of Shares | 28,500 | 31,000 |
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) | $ 30.01 | |
Exercise Price, high end of the range (in dollars per share) | $ 40 | |
Outstanding Number of Shares | 16,250 | |
Remaining Life (in years) | 1 year | |
Exercisable Number of Shares | 16,250 | |
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) | $ 30.01 | |
Exercise Price, high end of the range (in dollars per share) | $ 40 | |
Outstanding Number of Shares | 25,813 | |
Remaining Life (in years) | 5 years | |
Exercisable Number of Shares | 25,813 | |
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) | $ 40.01 | |
Exercise Price, high end of the range (in dollars per share) | $ 50 | |
Outstanding Number of Shares | 3,750 | |
Remaining Life (in years) | 4 years | |
Exercisable Number of Shares | 3,750 | |
Exercise price range $0.42 - $4.00, remaining life 1 year | ||
Options outstanding and exercisable | ||
Exercise Price, low end of the range (in dollars per share) | $ 0.42 | |
Exercise Price, high end of the range (in dollars per share) | $ 4 | |
Outstanding Number of Shares | 71,250 | |
Remaining Life (in years) | 1 year | |
Exercisable Number of Shares | 71,250 | |
Exercise price range $0.42 - $4.00, remaining life 2 years | ||
Options outstanding and exercisable | ||
Exercise Price, low end of the range (in dollars per share) | $ 0.42 | |
Exercise Price, high end of the range (in dollars per share) | $ 4 | |
Outstanding Number of Shares | 78,855 | |
Remaining Life (in years) | 2 years | |
Exercisable Number of Shares | 78,855 | |
Exercise price range $0.42 - $4.00, remaining life 3 years | ||
Options outstanding and exercisable | ||
Exercise Price, low end of the range (in dollars per share) | $ 0.42 | |
Exercise Price, high end of the range (in dollars per share) | $ 4 | |
Outstanding Number of Shares | 197,390 | |
Remaining Life (in years) | 3 years | |
Exercisable Number of Shares | 197,390 | |
Exercise price range $0.42 - $4.00, remaining life 4 years | ||
Options outstanding and exercisable | ||
Exercise Price, low end of the range (in dollars per share) | $ 0.42 | |
Exercise Price, high end of the range (in dollars per share) | $ 4 | |
Outstanding Number of Shares | 348,954 | |
Remaining Life (in years) | 4 years | |
Exercisable Number of Shares | 333,963 | |
Exercise price range $0.42 - $4.00, remaining life 5 years | ||
Options outstanding and exercisable | ||
Exercise Price, low end of the range (in dollars per share) | $ 0.42 | |
Exercise Price, high end of the range (in dollars per share) | $ 4 | |
Outstanding Number of Shares | 82,610 | |
Remaining Life (in years) | 5 years | |
Exercise price range $4.01 - $10.00, remaining life 4 years | ||
Options outstanding and exercisable | ||
Exercise Price, low end of the range (in dollars per share) | $ 4.01 | |
Exercise Price, high end of the range (in dollars per share) | $ 10 | |
Outstanding Number of Shares | 18,250 | |
Remaining Life (in years) | 4 years | |
Exercisable Number of Shares | 18,250 | |
Exercise price range $30.01 - $40.00, remaining life 4 year | ||
Options outstanding and exercisable | ||
Exercise Price, low end of the range (in dollars per share) | $ 30.01 | |
Exercise Price, high end of the range (in dollars per share) | $ 40 | |
Outstanding Number of Shares | 13,312 | |
Remaining Life (in years) | 4 years | |
Exercisable Number of Shares | 13,312 | |
Exercise price range $20.01 - $30.00, remaining life 2 years | ||
Options outstanding and exercisable | ||
Exercise Price, low end of the range (in dollars per share) | $ 20.01 | |
Exercise Price, high end of the range (in dollars per share) | $ 30 | |
Remaining Life (in years) | 2 years | |
Exercise price range $40.01 - $50.00, remaining life 1 Year | ||
Options outstanding and exercisable | ||
Exercise Price, low end of the range (in dollars per share) | $ 40.01 | |
Exercise Price, high end of the range (in dollars per share) | $ 50 | |
Remaining Life (in years) | 1 year | |
Exercise price range $40.01 - $50.00, remaining life 5 years | ||
Options outstanding and exercisable | ||
Exercise Price, low end of the range (in dollars per share) | $ 40.01 | |
Exercise Price, high end of the range (in dollars per share) | $ 50 | |
Outstanding Number of Shares | 3,750 | |
Remaining Life (in years) | 5 years | |
Exercisable Number of Shares | 3,750 |
SHARE-BASED COMPENSATION - St91
SHARE-BASED COMPENSATION - Stock Options - Additional Disclosures (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Options | ||
Unrecognized compensation costs | $ 457 | $ 31,000 |
Option vested (in shares) | 226,860 | 449,904 |
Weighted average award date fair value of options vested (in dollars per share) | $ 0.89 | $ 1.10 |
Unvested options outstanding (in shares) | 369,250 | 97,601 |
Weighted average award date fair value of unvested options outstanding (in dollars per share) | $ 4.05 | $ 5.50 |
Weighted average remaining life of unvested options outstanding | 4 years 2 months 23 days | 4 years 10 months 28 days |
Minimum | ||
Stock Options | ||
Amortization period | 1 year | 1 year |
Maximum | ||
Stock Options | ||
Amortization period | 2 years | 2 years |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock - General Information (Details) - Unvested restricted stock awards - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Restricted stock | ||
Fair value of restricted shares granted | $ 0.6 | |
Granted (in shares) | 401,146 | |
Outstanding (in shares) | 401,146 | 0 |
SHARE-BASED COMPENSATION - Re93
SHARE-BASED COMPENSATION - Restricted Stock - Activity (Details) - Unvested restricted stock awards | 12 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Restricted Stock Shares | |
Outstanding at the beginning of the period (in shares) | shares | 0 |
Granted (in shares) | shares | 401,146 |
Outstanding at the end of the period (in shares) | shares | 401,146 |
Weighted average share price | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 1.51 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 1.51 |
SHARE-BASED COMPENSATION - Warr
SHARE-BASED COMPENSATION - Warrants - Activity (Details) | 12 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Warrants | |
Outstanding at the beginning of the period (in shares) | shares | 0 |
Granted (in shares) | shares | 4,041,951 |
Outstanding at the end of the period (in shares) | shares | 4,041,951 |
Weighted average share price | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 1.98 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 1.98 |
Weighted average remaining contractual life (years) | |
Granted (in years) | 1 year 10 months 28 days |
Outstanding at the end of the period | 1 year 10 months 28 days |
SHARE-BASED COMPENSATION - Wa95
SHARE-BASED COMPENSATION - Warrants - Outstanding and Exercisable (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Warrants outstanding and exercisable | ||
Outstanding Number of Shares (in shares) | 4,041,951 | 0 |
Exercisable Number of Shares (in shares) | 4,041,951 | |
Warrants, Exercise Price $1.83, Remaining Life 1.93 Years | ||
Warrants outstanding and exercisable | ||
Exercise price (in dollars per share) | $ 1.83 | |
Outstanding Number of Shares (in shares) | 3,555,228 | |
Remaining Life | 1 year 11 months 5 days | |
Exercisable Number of Shares (in shares) | 3,555,228 | |
Warrants, Exercise Price Range $3.00 and $3.04, Remaining Life Range 1.71 Years and 1.82 Years | ||
Warrants outstanding and exercisable | ||
Outstanding Number of Shares (in shares) | 486,723 | |
Exercisable Number of Shares (in shares) | 486,723 | |
Warrants, Exercise Price Range $3.00 and $3.04, Remaining Life Range 1.71 Years and 1.82 Years | Minimum | ||
Warrants outstanding and exercisable | ||
Exercise price (in dollars per share) | $ 3 | |
Remaining Life | 1 year 8 months 16 days | |
Warrants, Exercise Price Range $3.00 and $3.04, Remaining Life Range 1.71 Years and 1.82 Years | Maximum | ||
Warrants outstanding and exercisable | ||
Exercise price (in dollars per share) | $ 3.04 | |
Remaining Life | 1 year 9 months 26 days |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Litigation and Other Legal Matters (Details) | Feb. 02, 2017shares | Jan. 11, 2017USD ($) | Dec. 31, 2016USD ($)plaintiffshares | Aug. 15, 2016USD ($) | May 09, 2012USD ($)plaintiff |
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 (in shares) | shares | 600,000 | ||||
Stock issued for legal settlement (in shares) | shares | 600,000 | ||||
Settlements in cash payable | $ 1,350,000 | ||||
Payment by insurance underwriters | $ 1,350,000 | ||||
Tullow and Dana Legal Actions | Tullow and Dana | |||||
LITIGATION AND OTHER LEGAL MATTERS | |||||
Settlement amount | $ 700,000 | ||||
Success fee per million barrels | $ 50,000 |
COMMITMENTS AND CONTINGENCIES97
COMMITMENTS AND CONTINGENCIES - Operating Leases - Minimum Future Rental Payments (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Operating Leases | |
2,019 | $ 399 |
2,020 | 406 |
2,021 | 309 |
Total minimum payments required | $ 1,114 |
COMMITMENTS AND CONTINGENCIES98
COMMITMENTS AND CONTINGENCIES - Operating Leases - Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Rent expense | ||
Rent expense | $ 0.6 | $ 0.4 |
SUBSEQUENT EVENTS - Reverse Sto
SUBSEQUENT EVENTS - Reverse Stock Split - General Information (Details) | Jul. 11, 2017 | Aug. 10, 2017 | Jul. 07, 2017shares | Jun. 30, 2017shares | Jun. 30, 2016shares |
SUBSEQUENT EVENTS | |||||
Common stock, shares outstanding | 21,046,591 | 21,046,591 | |||
Subsequent Event | |||||
SUBSEQUENT EVENTS | |||||
Votes For (as percent) | 72.30% | ||||
Common stock, shares outstanding | 27,510,636 | ||||
Minimum | Subsequent Event | |||||
SUBSEQUENT EVENTS | |||||
Reverse stock split ratio | 0.50 | ||||
Maximum | Subsequent Event | |||||
SUBSEQUENT EVENTS | |||||
Reverse stock split ratio | 0.167 |
SUBSEQUENT EVENTS - Reverse 100
SUBSEQUENT EVENTS - Reverse Stock Split - Tabular Information (Details) - Subsequent Event | Aug. 10, 2017shares |
SUBSEQUENT EVENTS | |
Votes For (as percent) | 72.30% |
Votes For (in shares) | 19,879,984 |
Votes Against (as percent) | 10.50% |
Votes Against (in shares) | 2,878,387 |
Abstentions (as percent) | 0.30% |
Abstentions (in shares) | 71,651 |
SUBSEQUENT EVENTS - Appraisal P
SUBSEQUENT EVENTS - Appraisal Period (Details) - Guinea Concession - Subsequent Event - m | Sep. 19, 2017 | Sep. 08, 2017 | Jul. 12, 2017 |
SUBSEQUENT EVENTS | |||
Interval (in meters) | 5 | ||
Percentage of appraisal extension (as a percent) | 100.00% | ||
Appraisal period | 2 years |
SUBSEQUENT EVENTS - Share Purch
SUBSEQUENT EVENTS - Share Purchase Agreement (Details) - USD ($) $ / shares in Units, shares in Millions | 2 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jun. 30, 2017 | |
SUBSEQUENT EVENTS | ||
Total purchase price | $ 3,610,000 | |
Subsequent Event | Forecast | CLNG | Hyperdynamics Corporation | ||
SUBSEQUENT EVENTS | ||
CLNG Limited's potential ownership percentage in Hyperdynamics (as a percent) | 53.00% | |
Subsequent Event | Forecast | CLNG | ||
SUBSEQUENT EVENTS | ||
Shares issued (in shares) | 40 | |
Share price (in dollars per share) | $ 0.15 | |
Total purchase price | $ 6,000,000 |
SUBSEQUENT EVENTS - Closing of
SUBSEQUENT EVENTS - Closing of Additional Private Placement Offerings - Series A Preferred Stock (Details) - USD ($) | Aug. 02, 2017 | Apr. 26, 2017 | Apr. 26, 2017 | Apr. 18, 2017 | Mar. 28, 2017 | Mar. 17, 2017 | Apr. 26, 2017 | Jun. 30, 2017 | Jun. 30, 2017 |
SUBSEQUENT EVENTS | |||||||||
Units issued, unit price (in dollars per share) | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | |||
Maximum value of pro rata shares to be purchased | $ 3,000,000 | ||||||||
Gross cash proceeds | $ 2,000,000 | ||||||||
Net proceeds | $ 1,600,000 | ||||||||
Subsequent Event | |||||||||
SUBSEQUENT EVENTS | |||||||||
Gross cash proceeds | $ 756,000 | ||||||||
Net proceeds | $ 687,890 | ||||||||
Conversion of preferred stock (in shares) | 1 | ||||||||
Series A Preferred Stock | |||||||||
SUBSEQUENT EVENTS | |||||||||
Shares issued (in shares) | 50 | 710 | 511 | 680 | 1,951 | ||||
Total equity issuance cost | $ 200,000 | ||||||||
Number of shares converted (in shares) | 160 | ||||||||
Series A Preferred Stock | Subsequent Event | |||||||||
SUBSEQUENT EVENTS | |||||||||
Shares issued (in shares) | 756 | ||||||||
Number of shares converted (in shares) | 1,952 | ||||||||
Series A Investor Warrant | |||||||||
SUBSEQUENT EVENTS | |||||||||
Warrants issued to purchase shares of common stock (in shares) | 435,073 | 435,073 | 435,073 | ||||||
Series A Investor Warrant | Subsequent Event | |||||||||
SUBSEQUENT EVENTS | |||||||||
Warrants issued to purchase shares of common stock (in shares) | 168,588 | ||||||||
Placement Agent Series A Warrants | |||||||||
SUBSEQUENT EVENTS | |||||||||
Warrants issued to purchase shares of common stock (in shares) | 51,650 | 51,650 | 51,650 | ||||||
Total equity issuance cost | $ 68,400 | $ 45,990 | $ 61,200 | ||||||
Placement Agent Series A Warrants | Subsequent Event | |||||||||
SUBSEQUENT EVENTS | |||||||||
Warrants issued to purchase shares of common stock (in shares) | 20,014 | ||||||||
Total equity issuance cost | $ 68,040 |
SUBSEQUENT EVENTS - Closing 104
SUBSEQUENT EVENTS - Closing of Additional Private Placement Offerings - Common Unit Offering (Details) | Sep. 01, 2017item$ / sharesshares | Jul. 17, 2017item | Jun. 05, 2017USD ($)$ / sharesshares | Apr. 26, 2017item | Sep. 01, 2017USD ($)$ / sharesshares | Sep. 30, 2017USD ($)shares | Jun. 30, 2017USD ($)shares |
SUBSEQUENT EVENTS | |||||||
Number of closings of a private placement offerings held | item | 4 | ||||||
Units issued (in shares) | 4,335,625 | ||||||
Units issued, unit price (in dollars per share) | $ / shares | $ 1.46 | ||||||
Gross proceeds | $ | $ 6,300,000 | ||||||
Subsequent Event | |||||||
SUBSEQUENT EVENTS | |||||||
Number of closings of a private placement offerings held | item | 5 | 5 | |||||
Units issued (in shares) | 6,135,968 | 34,248 | |||||
Units issued, unit price (in dollars per share) | $ / shares | $ 1.46 | $ 1.46 | |||||
Gross proceeds | $ | $ 8,958,413 | $ 50,001.24 | |||||
Net proceeds | $ | $ 7,619,724 | ||||||
Common Unit Investor Warrant | |||||||
SUBSEQUENT EVENTS | |||||||
Warrants issued to purchase shares of common stock (in shares) | 3,251,726 | ||||||
Exercise price (in dollars per share) | $ / shares | $ 1.825 | ||||||
Number of shares each warrant can purchase (in shares) | 0.75 | ||||||
Common Unit Investor Warrant | Subsequent Event | |||||||
SUBSEQUENT EVENTS | |||||||
Warrants issued to purchase shares of common stock (in shares) | 4,601,992 | 4,601,992 | |||||
Placement Agent Common Units Warrants | |||||||
SUBSEQUENT EVENTS | |||||||
Warrants issued to purchase shares of common stock (in shares) | 303,502 | ||||||
Exercise price (in dollars per share) | $ / shares | $ 1.825 | ||||||
Number of shares each warrant can purchase (in shares) | 303,502 | ||||||
Placement Agent Common Units Warrants | Subsequent Event | |||||||
SUBSEQUENT EVENTS | |||||||
Warrants issued to purchase shares of common stock (in shares) | 429,544 | 429,544 | |||||
Exercise price (in dollars per share) | $ / shares | $ 1.825 | $ 1.825 | |||||
Total equity issuance cost | $ | $ 576,265 | ||||||
Common Stock | |||||||
SUBSEQUENT EVENTS | |||||||
Shares issued (in shares) | 4,335,625 | 4,335,625 | |||||
Percentage of placement agent commission fee (as a percent) | 9.00% | ||||||
Percentage of placement agent commission fee, referred subscribers (as a percent) | 4.00% | ||||||
Percentage of warrants to purchase a number of shares of common stock (as a percent) | 7.00% | ||||||
Total equity issuance cost | $ | $ 600,000 | $ 664,000 | |||||
Common Stock | Subsequent Event | |||||||
SUBSEQUENT EVENTS | |||||||
Shares issued (in shares) | 6,135,968 |
SUBSEQUENT EVENTS - Settlement
SUBSEQUENT EVENTS - Settlement with SAPETRO (Details) | Oct. 08, 2017USD ($) |
Guinea Concession | SAPETRO | Subsequent Event | |
SUBSEQUENT EVENTS | |
Settlement amount | $ 4,924,000 |
SUBSEQUENT EVENTS - Related Par
SUBSEQUENT EVENTS - Related Party Transactions (Details) - USD ($) | Jun. 05, 2017 | Jul. 31, 2017 | Jun. 30, 2017 | Sep. 01, 2017 | Sep. 30, 2017 |
SUBSEQUENT EVENTS | |||||
Units issued (in shares) | 4,335,625 | ||||
Purchase price | $ 6,300,000 | ||||
Chief Executive Officer | |||||
SUBSEQUENT EVENTS | |||||
Units issued (in shares) | 68,494 | ||||
Purchase price | $ 100,000 | ||||
Chief Financial Officer | |||||
SUBSEQUENT EVENTS | |||||
Units issued (in shares) | 34,247 | ||||
Purchase price | $ 50,000 | ||||
Subsequent Event | |||||
SUBSEQUENT EVENTS | |||||
Units issued (in shares) | 6,135,968 | 34,248 | |||
Purchase price | $ 8,958,413 | $ 50,001.24 | |||
Subsequent Event | Chief Executive Officer | |||||
SUBSEQUENT EVENTS | |||||
Units issued (in shares) | 51,370 | 51,370 | |||
Purchase price | $ 75,000 | $ 75,000 | |||
Subsequent Event | Chief Financial Officer | |||||
SUBSEQUENT EVENTS | |||||
Units issued (in shares) | 34,248 | ||||
Purchase price | $ 50,001.24 |
RELATED PARTY TRANSACTIONS - Ge
RELATED PARTY TRANSACTIONS - General Information (Details) - USD ($) | Apr. 26, 2017 | Apr. 18, 2017 | Mar. 28, 2017 | Mar. 17, 2017 | Aug. 15, 2016 | Jul. 15, 2016 | Apr. 26, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 15, 2016 |
RELATED PARTY TRANSACTIONS | |||||||||||
Units issued (in shares) | 50 | 710 | 511 | 680 | 1,951 | ||||||
Gross cash proceeds | $ 2,000,000 | ||||||||||
Chief Executive Officer | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Units issued (in shares) | 50 | ||||||||||
Gross cash proceeds | $ 50,000 | ||||||||||
Paolo G Amoruso | Officer | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Consulting fee, monthly | $ 30,000 | ||||||||||
Transition Agreement, amount paid | $ 50,000 | $ 150,000 | |||||||||
Transition Agreement, contingent payment amount | $ 300,000 | ||||||||||
David W Wesson | Officer | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Consulting fee, monthly | $ 25,000 | ||||||||||
Transition Agreement, amount paid | $ 150,000 | ||||||||||
Stock options | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Awarded (in shares) | 498,500 | 183,860 | |||||||||
Stock options | Paolo G Amoruso | Officer | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Awarded (in shares) | 36,875 | ||||||||||
Stock options | David W Wesson | Officer | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Awarded (in shares) | 34,375 |
RELATED PARTY TRANSACTIONS - Co
RELATED PARTY TRANSACTIONS - Common Unit Offerings (Details) - USD ($) | Jun. 05, 2017 | Jul. 31, 2017 | Jun. 30, 2017 | Sep. 01, 2017 | Sep. 30, 2017 |
RELATED PARTY TRANSACTIONS | |||||
Units issued (in shares) | 4,335,625 | ||||
Purchase price | $ 6,300,000 | ||||
Subsequent Event | |||||
RELATED PARTY TRANSACTIONS | |||||
Units issued (in shares) | 6,135,968 | 34,248 | |||
Purchase price | $ 8,958,413 | $ 50,001.24 | |||
Director | Gary D Elliston | |||||
RELATED PARTY TRANSACTIONS | |||||
Units issued (in shares) | 34,247 | ||||
Purchase price | $ 50,000 | ||||
Director | William O Strange | |||||
RELATED PARTY TRANSACTIONS | |||||
Units issued (in shares) | 34,247 | ||||
Purchase price | $ 50,000 | ||||
Chief Executive Officer | |||||
RELATED PARTY TRANSACTIONS | |||||
Units issued (in shares) | 68,494 | ||||
Purchase price | $ 100,000 | ||||
Chief Executive Officer | Subsequent Event | |||||
RELATED PARTY TRANSACTIONS | |||||
Units issued (in shares) | 51,370 | 51,370 | |||
Purchase price | $ 75,000 | $ 75,000 | |||
Chief Financial Officer | |||||
RELATED PARTY TRANSACTIONS | |||||
Units issued (in shares) | 34,247 | ||||
Purchase price | $ 50,000 | ||||
Chief Financial Officer | Subsequent Event | |||||
RELATED PARTY TRANSACTIONS | |||||
Units issued (in shares) | 34,248 | ||||
Purchase price | $ 50,001.24 | ||||
Beneficial Owner | |||||
RELATED PARTY TRANSACTIONS | |||||
Units issued (in shares) | 2,739,727 | ||||
Purchase price | $ 4,000,000 | ||||
Stock issued for services (in shares) | 567,859 | ||||
Beneficial Owner | Minimum | |||||
RELATED PARTY TRANSACTIONS | |||||
Beneficial owner, ownership percentage (as a percent) | 5.00% |
QUARTERLY RESULTS (UNAUDITED) -
QUARTERLY RESULTS (UNAUDITED) - Tabular Disclosure (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | |
Selected unaudited quarter data | ||||||||||
Depreciation | $ 6 | $ 7 | $ 10 | $ 25 | $ 26 | $ 27 | $ 28 | $ 28 | $ 48 | $ 109 |
General, administrative and other operating | 1,971 | 3,380 | 3,006 | 3,966 | 1,434 | 3,266 | 1,829 | 1,877 | 12,323 | 8,406 |
Full impairment of unproved oil and gas properties | 11,288 | 2,028 | 14,331 | 13,316 | 14,331 | |||||
Profit (Loss) from operations | (13,265) | (3,387) | (5,044) | (3,991) | (1,460) | (17,624) | (1,857) | (1,905) | (25,687) | (22,846) |
Gain (loss) on legal settlement | (371) | 5,135 | 4,764 | |||||||
Cost of legal settlement | (1,308) | (1,308) | ||||||||
Gain on derivative liability | 705 | 705 | ||||||||
Net Profit (Loss) | (12,560) | (3,387) | (6,723) | 1,144 | $ (1,460) | $ (17,624) | $ (1,857) | $ (1,905) | (21,526) | (22,846) |
Non-cash preferred dividend | (1,511) | (1,511) | ||||||||
Net Profit (Loss) available to common stockholders | $ (14,071) | $ (3,387) | $ (6,723) | $ 1,144 | $ (23,037) | $ (22,846) | ||||
Basic and diluted loss per common share (in dollars per share) | $ (0.64) | $ (0.16) | $ (0.31) | $ 0.05 | $ (0.07) | $ (0.84) | $ (0.09) | $ (0.09) | $ (1.06) | $ (1.09) |
QUARTERLY RESULTS (UNAUDITED110
QUARTERLY RESULTS (UNAUDITED) - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | |
Selected unaudited quarter data | ||||||||||
General, administrative and other operating | $ 1,971 | $ 3,380 | $ 3,006 | $ 3,966 | $ 1,434 | $ 3,266 | $ 1,829 | $ 1,877 | $ 12,323 | $ 8,406 |
Full impairment of unproved oil and gas properties | $ 11,288 | 2,028 | $ 14,331 | $ 13,316 | $ 14,331 | |||||
Adjustment | ||||||||||
Selected unaudited quarter data | ||||||||||
General, administrative and other operating | (1,300) | |||||||||
Full impairment of unproved oil and gas properties | $ 1,300 |
SUPPLEMENTAL OIL AND GAS INF111
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) - General Disclosures (Details) | 12 Months Ended |
Jun. 30, 2017 | |
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) | |
Estimated future net cash flows, discount rate (as a percent) | 10.00% |
SUPPLEMENTAL OIL AND GAS INF112
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) - Capitalized Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Capitalized Costs Related to Oil and Gas Activities | ||
Unproved properties | $ 0 | $ 0 |
Proved properties | 0 | 0 |
Total oil and gas properties | 0 | 0 |
Less accumulated DD&A | 0 | 0 |
Net capitalized costs | 0 | 0 |
United States | ||
Capitalized Costs Related to Oil and Gas Activities | ||
Unproved properties | 0 | 0 |
Proved properties | 0 | 0 |
Total oil and gas properties | 0 | 0 |
Less accumulated DD&A | 0 | 0 |
Net capitalized costs | 0 | 0 |
Republic of Guinea | ||
Capitalized Costs Related to Oil and Gas Activities | ||
Unproved properties | 0 | 0 |
Proved properties | 0 | 0 |
Total oil and gas properties | 0 | 0 |
Less accumulated DD&A | 0 | 0 |
Net capitalized costs | $ 0 | $ 0 |
SUPPLEMENTAL OIL AND GAS INF113
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) - Costs Incurred (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Property acquisition: | ||
Unproved | $ 0 | $ 0 |
Exploration | 13,316 | 0 |
Development | 0 | 0 |
Total costs incurred | 13,316 | 0 |
United States | ||
Property acquisition: | ||
Unproved | 0 | 0 |
Exploration | 0 | 0 |
Development | 0 | 0 |
Total costs incurred | 0 | 0 |
Republic of Guinea | ||
Property acquisition: | ||
Unproved | 0 | 0 |
Exploration | 13,316 | 0 |
Development | 0 | 0 |
Total costs incurred | $ 13,316 | $ 0 |
SUPPLEMENTAL OIL AND GAS INF114
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) - Proved Reserves (Details) - bbl | Jun. 30, 2017 | Jun. 30, 2016 |
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) | ||
Proved reserves | 0 | 0 |