Document And Entity Information
v3.8.0.1
Document And Entity Information - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2017
Mar. 26, 2018
Jun. 30, 2017
Document And Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2017    
Document Fiscal Year Focus 2017    
Document Fiscal Period Focus FY    
Entity Registrant Name TENGASCO INC    
Entity Central Index Key 0001001614    
Entity Filer Category Smaller Reporting Company    
Entity Well-known Seasoned Issuer No    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Public Float     $ 3.5
Current Fiscal Year End Date --12-31    
Entity Common Stock, Shares Outstanding   10,624,493  

Consolidated Balance Sheets
v3.8.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Current    
Cash and cash equivalents $ 185 $ 76
Accounts receivable, less allowance for doubtful accounts of $14 608 490
Accounts receivable - related party, less allowance for doubtful accounts of $159
Inventory 541 627
Other current assets 164 421
Total current assets 1,498 1,614
Loan fees, net 13 24
Oil and gas properties, net (full cost accounting method) 4,720 5,225
Manufactured Methane facilities, net 1,497 1,559
Other property and equipment, net 135 140
Deferred tax asset 242  
Total assets 8,105 8,562
Current liabilities    
Accounts payable - trade 208 303
Accounts payable - other 159 159
Accrued liabilities 203 274
Current maturities of long-term debt 41 55
Total current liabilities 611 791
Asset retirement obligation 2,270 2,046
Long term debt, less current maturities 49 2,447
Total liabilities 2,930 5,284
Commitments and contingencies (Note 9)
Stockholders' equity    
Series A Preferred stock, $0.0001 par value, 10,000 shares designated; 0 shares issued and outstanding
Common stock, $.001 par value, authorized 100,000,000 shares, 10,619,924 and 6,097,723 shares issued and outstanding 11 6
Additional paid-in capital 58,253 55,787
Accumulated deficit (53,089) (52,515)
Total stockholders' equity 5,175 3,278
Total liabilities and stockholders' equity $ 8,105 $ 8,562

Consolidated Balance Sheets (Parenthetical)
v3.8.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Allowance for doubtful accounts $ 14 $ 14
Accounts receivable-related party, allowance for doubtful accounts $ 159 $ 159
Preferred stock, shares authorized 25,000,000 25,000,000
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 10,619,924 6,097,723
Common stock, shares outstanding 10,619,924 6,097,723
Series A Preferred Stock [Member]    
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 10,000 10,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0

Consolidated Statements Of Operations
v3.8.0.1
Consolidated Statements Of Operations - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Revenues      
Oil and gas properties $ 4,683 $ 4,113 $ 5,631
Methane facility 580 559 533
Total revenues 5,263 4,672 6,164
Cost and expenses      
Production costs and taxes 3,444 3,064 3,731
Methane facility costs 489 357 493
Depreciation, depletion, and amortization 924 1,139 2,676
General and administrative 1,171 1,405 2,069
Impairment   2,805 14,526
Total cost and expenses 6,028 8,770 23,495
Net loss from operations (765) (4,098) (17,331)
Other income (expense)      
Net interest expense (53) (102) (80)
Gain on sale of assets 2 1 41
Total other (expense) (51) (101) (39)
Loss from operations before income tax (816) (4,199) (17,370)
Deferred income tax benefit (expense) 242   (7,351)
Net loss $ (574) $ (4,199) $ (24,721)
Net loss per share      
Basic $ (0.06) $ (0.69) $ (4.06)
Fully diluted $ (0.06) $ (0.69) $ (4.06)
Shares used in computing earnings per share      
Basic 10,081,218 6,091,028 6,084,241
Diluted 10,081,218 6,091,028 6,084,241

Consolidated Statements Of Stockholders' Equity
v3.8.0.1
Consolidated Statements Of Stockholders' Equity - USD ($)
$ in Thousands
Common Stock [Member]
Paid-In Capital [Member]
Accumulated Deficit [Member]
Total
Balance, value at Dec. 31, 2014 $ 6 $ 55,758 $ (23,595) $ 32,169
Balance, shares at Dec. 31, 2014 6,084,241      
Net loss     (24,721) (24,721)
Compensation expense related to options issued   12   12
Balance, shares at Dec. 31, 2015 6,084,241      
Balance, value at Dec. 31, 2015 $ 6 55,770 (48,316) 7,460
Net loss     (4,199) (4,199)
Compensation expense related to options issued   3   3
Compensation expense related to stock issued   14   $ 14
Compensation expense related to stock issued, shares 12,641      
True up shares due to reverse stock split 841      
Balance, shares at Dec. 31, 2016 6,097,723     6,097,723
Balance, value at Dec. 31, 2016 $ 6 55,787 (52,515) $ 3,278
Net loss     (574) (574)
Compensation expense related to stock issued   14   14
Compensation expense related to stock issued, shares 23,503      
Shares issued for rights offering $ 5 2,452   $ 2,457
Shares issued for rights offering, shares 4,498,698      
Balance, shares at Dec. 31, 2017 10,619,924     10,619,924
Balance, value at Dec. 31, 2017 $ 11 $ 58,253 $ (53,089) $ 5,175

Consolidated Statements Of Cash Flows
v3.8.0.1
Consolidated Statements Of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Operating activities      
Net loss from operations $ (574,000) $ (4,199,000) $ (24,721,000)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Depreciation, depletion, and amortization 924,000 1,139,000 2,676,000
Amortization of loan fees-interest expenses 20,000 11,000 10,000
Accretion of discount on asset retirement obligation 141,000 143,000 126,000
Impairment   2,805,000 14,526,000
Gain on assets sale of vehicles/equipment (2,000)   (41,000)
Compensation and services paid in stock / stock options 14,000 17,000 12,000
Deferred income tax expense (benefit) (242,000)   7,351,000
Changes in assets and liabilities:      
Restricted cash     386,000
Accounts receivable (118,000) (46,000) 432,000
Inventory and other assets 203,000 (238,000) 198,000
Accounts payable (95,000) (482,000) (58,000)
Accrued liabilities (64,000) (89,000) (398,000)
Settlement on asset retirement obligations (53,000) (73,000) (17,000)
Net cash provided by (used in) operating activities 154,000 (1,012,000) 482,000
Investing activities      
Additions to oil and gas properties (169,000) (397,000) (570,000)
Sale of oil and gas properties 7,000 44,000  
Additions to Manufactured Methane facilities   (47,000)  
Additions to other property & equipment (17,000) (5,000) (1,000)
Proceeds from sale of other property & equipment   4,000 30,000
Net cash used in investing activities (179,000) (401,000) (541,000)
Financing activities      
Proceeds from rights offering 2,699,000    
Issuance cost of rights offering (102,000)    
Proceeds from borrowings 400,000 3,850,000 4,300,000
Repayment of borrowings (2,854,000) (2,376,000) (4,234,000)
Loan fees (9,000) (25,000) (2,000)
Net cash provided by financing activities 134,000 1,449,000 64,000
Net change in cash and cash equivalents 109,000 36,000 5,000
Cash and cash equivalents, beginning of period 76,000 40,000 35,000
Cash and cash equivalents, end of period 185,000 76,000 40,000
Supplemental cash flow information:      
Cash interest payments 33,000 91,000 70,000
Supplemental non-cash investing and financing activities:      
Financed company vehicles 81,000 23,000 140,000
Cost of stock issuance in rights offering (140,000)    
Asset retirement obligations incurred 1,000 2,000  
Revisions in estimated liabilities $ 138,000 (210,000) $ 112,000
Capital expenditures included in accounts payable and accrued liabilities   $ 7,000  

Description Of Business And Significant Accounting Policies
v3.8.0.1
Description Of Business And Significant Accounting Policies
12 Months Ended
Dec. 31, 2017
Description Of Business And Significant Accounting Policies [Abstract]  
Description Of Business And Significant Accounting Policies

1. Description of Business and Significant Accounting Policies



Tengasco, Inc. (the “Company”) is a Delaware corporation.  The Company is in the business of exploration for and production of oil and natural gas.  The Company’s primary area of exploration and production is in Kansas. 



The Company’s wholly-owned subsidiary, Tengasco Pipeline Corporation (“TPC”) owned and operated a pipeline which it constructed to transport natural gas from the Company’s Swan Creek Field to customers in Kingsport, Tennessee.  The Company sold all its pipeline assets on August 16, 2013.



The Company’s wholly-owned subsidiary, Manufactured Methane Corporation (“MMC”) operated treatment and delivery facilities in Church Hill, Tennessee for the extraction of methane gas from a landfill for eventual sale as natural gas and for the generation of electricity.  The Company sold all its methane facility assets on January 26, 2018.



Principles of Consolidation



The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).  The consolidated financial statements include the accounts of the Company, and its wholly-owned subsidiaries after elimination of all significant intercompany transactions and balances.



Use of Estimates



The accompanying consolidated financial statements are prepared in conformity with U.S. GAAP which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods.  Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies.  We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates.



Revenue Recognition



Revenues are recognized based on actual volumes of oil, natural gas, methane gas, and electricity sold to purchasers at a fixed or determinable price, when delivery has occurred and title has transferred, and collectability is reasonably assured.   Crude oil is stored and at the time of delivery to the purchasers, revenues are recognized.  There were no natural gas imbalances at December 31, 2017 or December 31, 2016.  Methane gas and electricity sales meters are located at the Carter Valley landfill site and sales of electricity are recognized each month based on metered volumes.  No methane gas was sold during the years ended December 31, 2017 or December 31, 2016.  Effective January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers.  The Company does not expect this to have a material impact on our consolidated financial statements or results of operations.



Cash and Cash Equivalents



Cash and cash equivalents include temporary cash investments with a maturity of ninety days or less at date of purchase.



 

Inventory



Inventory consists of crude oil in tanks and is carried at lower of cost or market value.  The cost component of the oil inventory is calculated using the average quarterly per barrel cost for the quarter ended December 31, 2017 and December 31, 2016, which includes production costs and taxes, allocated general and administrative costs, depletion, and allocated interest cost.  The market component is calculated using the average December 2017 and December 2016 oil sales price for the Company’s Kansas properties.  In addition, the Company also carried equipment and materials to be used in its Kansas operation and is carried at the lower of cost or market value.  The cost component of the equipment and materials inventory represents the original cost paid for the equipment and materials.  The market component is based on estimated sales value for similar equipment and materials at the end of each year.  At December 31, 2017 and December 31, 2016, inventory consisted of the following (in thousands):







 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2017

 

2016

Oil – carried at lower of cost or market

 

$

436 

 

$

505 

Equipment and materials – carried at market

 

 

105 

 

 

122 

Total inventory

 

$

541 

 

$

627 



During 2016, the Company recorded an $88,000 impairment of its equipment and materials inventory.  This impairment was a result of a 2016 decrease in the estimated sales value for similar equipment.



Oil and Gas Properties



The Company follows the full cost method of accounting for oil and gas property acquisition, exploration, and development activities.  Under this method, all costs incurred in connection with acquisition, exploration, and development of oil and gas reserves are capitalized.  Capitalized costs include lease acquisitions, seismic related costs, certain internal exploration costs, drilling, completion, and estimated asset retirement costs. The capitalized costs of oil and gas properties, plus estimated future development costs relating to proved reserves and estimated asset retirement costs which are not already included net of estimated salvage value, are amortized on the unit-of-production method based on total proved reserves. The Company has determined its reserves based upon reserve reports provided by LaRoche Petroleum Consultants Ltd. since 2009. The costs of unproved properties are excluded from amortization until the properties are evaluated, subject to an annual assessment of whether impairment has occurred.  The Company had $0 and $106,000 in unevaluated properties as of December 31, 2017 and 2016, respectively.  Proceeds from the sale of oil and gas properties are accounted for as reductions to capitalized costs unless such sales cause a significant change in the relationship between costs and the estimated value of proved reserves, in which case a gain or loss is recognized.



At the end of each reporting period, the Company performs a “ceiling test” on the value of the net capitalized cost of oil and gas properties. This test compares the net capitalized cost (capitalized cost of oil and gas properties, net of accumulated depreciation, depletion and amortization and related deferred income taxes) to the present value of estimated future net revenues from oil and gas properties using an average price (arithmetic average of the beginning of month prices for the prior 12 months) and current cost discounted at 10%  plus cost of properties not being amortized and the lower of cost or estimated  fair value of unproven properties included in the cost being amortized (ceiling). If the net capitalized cost is greater than the ceiling, a write-down or impairment is required.  A write-down of the carrying value of the asset is a non-cash charge that reduces earnings in the current period.  Once incurred, a write-down may not be reversed in a later period.



Asset Retirement Obligation



An asset retirement obligation associated with the retirement of a tangible long-lived asset is recognized as a liability in the period incurred, with an associated increase in the carrying amount of the related long-lived asset, our oil and natural gas properties. The cost of the tangible asset, including the asset retirement cost, is depleted over the useful life of the asset. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. Accretion expense is recorded as “Production costs and taxes” in the Consolidated Statements of Operations.  If the estimated future cost of the asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the long-lived asset. Revisions to estimated asset retirement obligations can result from changes in retirement cost estimates, revisions to estimated inflation rates, and changes in the estimated timing of abandonment.



Manufactured Methane Facilities



The Manufactured Methane facilities were placed into service in April 2009 and were being depreciated using the straight-line method over the useful life based on the estimated landfill closure date of December 2041.  The Company sold all its methane facility assets, except the applicable U.S. patent, on January 26, 2018.



Other Property and Equipment



Other property and equipment is carried at cost.  The Company provides for depreciation of other property and equipment using the straight-line method over the estimated useful lives of the assets which range from two to seven years.  Net gains or losses on other property and equipment disposed of are included in operating income in the period in which the transaction occurs.



Stock-Based Compensation



The Company records stock-based compensation to employees based on the estimated fair value of the award at grant date.  We recognize expense on a straight line basis over the requisite service period. For stock-based compensation that vests immediately, the Company recognizes the entire expense in the quarter in which the stock-based compensation is granted.  The Company recorded compensation expense of $14,000 in 2017, $17,000 in 2016,  and $12,000 in 2015.



Accounts Receivable



Accounts receivable consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date, uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 days of production, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied to the earliest unpaid items. We review accounts receivable periodically and reduce the carrying amount by a valuation allowance that reflects our best estimate of the amount that may not be collectible. An allowance was recorded at December 31, 2017 and 2016.  At December 31, 2017 and 2016, accounts receivable consisted of the following (in thousands):

 





 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2017

 

2016

Revenue

 

$

570 

 

$

476 

Joint interest

 

 

23 

 

 

21 

Other

 

 

29 

 

 

Allowance for doubtful accounts

 

 

(14)

 

 

(14)

Total accounts receivable

 

$

608 

 

$

490 



Income Taxes



Income taxes are reported in accordance with U.S. GAAP, which requires the establishment of deferred tax accounts for all temporary differences between the financial reporting and tax bases of assets and liabilities, using currently enacted federal and state income tax rates.  In addition, deferred tax accounts must be adjusted to reflect new rates if enacted into law.

 

At December 31, 2017, federal net operating loss carryforwards amounted to approximately $30.2 million which expire between 2019 and 2036. The net total deferred tax asset was $242,000 at December 31, 2017 and $0 at 2016.  In 2017, The Company released a portion of the allowance related to the Company’s Minimum Tax Credit (“MTC”) as a result of the 2017 Tax Act.  The Company recorded an allowance on the remaining deferred tax asset at December 31, 2017 primarily due to cumulative losses incurred during the 3 years ended December 31, 2017.  The Company recorded a full allowance against the deferred tax asset at December 31, 2016 primarily due to cumulative losses incurred during the 3 years ended December 31, 2016.



Realization of deferred tax assets is contingent on the generation of future taxable income.  As a result, management considers whether it is more likely than not that all or a portion of such assets will be realized during periods when they are available, and if not, management provides a valuation allowance for amounts not likely to be recognized.



Management periodically evaluates tax reporting methods to determine if any uncertain tax positions exist that would require the establishment of a loss contingency.  A loss contingency would be recognized if it were probable that a liability has been incurred as of the date of the financial statements and the amount of the loss can be reasonably estimated.



The amount recognized is subject to estimates and management’s judgment with respect to the likely outcome of each uncertain tax position.  The amount that is ultimately incurred for an individual uncertain tax position or for all uncertain tax positions in the aggregate could differ from the amount recognized.



Concentration of Credit Risk



Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable.  Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances.



The Company’s primary business activities include oil sales to a limited number of customers in the state of Kansas.  The related trade receivables subject the Company to a concentration of credit risk.  The Company sells a majority of its crude oil primarily to two customers in Kansas.  Although management believes that customers could be replaced in the ordinary course of business, if the present customers were to discontinue business with the Company, it may have a significant adverse effect on the Company’s projected results of operations.



Revenue from the top three purchasers accounted for 75.3%,  13.1%, and 11.0% of total revenues for year ended December 31, 2017.  Revenue from the top three purchasers accounted for 73.9%,  13.1%, and 12.0% of total revenues for year ended December 31, 2016.  Revenue from the top three purchasers accounted for 74.5%,  16.1%, and 8.6% of total revenues for year ended December 31, 2015.  As of December 31, 2017 and 2016, two of the Company’s oil purchasers accounted for 76.2% and 84.1%, respectively of accounts receivable, of which one oil purchaser accounted for 63.2% and 71.0%, respectively.



Earnings per Common Share



The Company reports basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share which include the effect of all potentially dilutive securities unless their impact is anti-dilutive. The following are reconciliations of the numerators and denominators of the Company’s basic and diluted earnings per share, (in thousands except for share and per share amounts):







 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

For the years ended December 31,



 

2017

 

2016

 

2015

Income (numerator):

 

  

 

 

  

 

 

  

 

Net loss

 

$

(574)

 

$

(4,199)

 

$

(24,721)

Weighted average shares (denominator):

 

 

 

 

 

 

 

 

 

Weighted average shares - basic

 

 

10,081,218 

 

 

6,091,028 

 

 

6,084,241 

Dilution effect of share-based compensation, treasury method

 

 

 —

 

 

 —

 

 

 —

Weighted average shares - dilutive

 

 

10,081,218 

 

 

6,091,028 

 

 

6,084,241 

Loss per share – Basic and Dilutive:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.06)

 

$

(0.69)

 

$

(4.06)

Dilutive

 

$

(0.06)

 

$

(0.69)

 

$

(4.06)



For the years ended December 31, 2016 and 2015, 114 and 760 shares, respectively, were excluded from dilutive shares as they would have been anti-dilutive.  The 114 and 760 shares excluded from the dilutive share calculation represents shares calculated using the treasury method for options issued to the Company’s directors in which the exercise price was lower than the average market price each quarter.  In addition, options issued to the Company’s directors in which the exercise price was higher than the average market price each quarter was also excluded from diluted shares as they would have been anti-dilutive.



Fair Value of Financial Instruments



The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payables, accrued liabilities and long term debt approximates fair value as of December 31, 2017 and 2016.



Derivative Financial Instruments



The Company uses derivative instruments to manage our exposure to commodity price risk on sales of oil production.  The Company does not enter into derivative instruments for speculative trading purposes.  The Company presents the fair value of derivative contracts on a net basis where the right to offset is provided for in our counterparty agreements.  As of December 31, 2017 and 2016, the Company did not have any open derivatives.



Reclassifications



Certain prior year amounts have been reclassified to conform to current year presentation with no effect on net income.

 


Description Of Business And Significant Accounting Policies (Policy)
v3.8.0.1
Description Of Business And Significant Accounting Policies (Policy)
12 Months Ended
Dec. 31, 2017
Description Of Business And Significant Accounting Policies [Abstract]  
Principles Of Consolidation

Principles of Consolidation



The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).  The consolidated financial statements include the accounts of the Company, and its wholly-owned subsidiaries after elimination of all significant intercompany transactions and balances.

Use Of Estimates

Use of Estimates



The accompanying consolidated financial statements are prepared in conformity with U.S. GAAP which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods.  Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies.  We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates.

Revenue Recognition

Revenue Recognition



Revenues are recognized based on actual volumes of oil, natural gas, methane gas, and electricity sold to purchasers at a fixed or determinable price, when delivery has occurred and title has transferred, and collectability is reasonably assured.   Crude oil is stored and at the time of delivery to the purchasers, revenues are recognized.  There were no natural gas imbalances at December 31, 2017 or December 31, 2016.  Methane gas and electricity sales meters are located at the Carter Valley landfill site and sales of electricity are recognized each month based on metered volumes.  No methane gas was sold during the years ended December 31, 2017 or December 31, 2016.  Effective January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers.  The Company does not expect this to have a material impact on our consolidated financial statements or results of operations.

Cash And Cash Equivalents

Cash and Cash Equivalents



Cash and cash equivalents include temporary cash investments with a maturity of ninety days or less at date of purchase.

Inventory

Inventory



Inventory consists of crude oil in tanks and is carried at lower of cost or market value.  The cost component of the oil inventory is calculated using the average quarterly per barrel cost for the quarter ended December 31, 2017 and December 31, 2016, which includes production costs and taxes, allocated general and administrative costs, depletion, and allocated interest cost.  The market component is calculated using the average December 2017 and December 2016 oil sales price for the Company’s Kansas properties.  In addition, the Company also carried equipment and materials to be used in its Kansas operation and is carried at the lower of cost or market value.  The cost component of the equipment and materials inventory represents the original cost paid for the equipment and materials.  The market component is based on estimated sales value for similar equipment and materials at the end of each year.  At December 31, 2017 and December 31, 2016, inventory consisted of the following (in thousands):







 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2017

 

2016

Oil – carried at lower of cost or market

 

$

436 

 

$

505 

Equipment and materials – carried at market

 

 

105 

 

 

122 

Total inventory

 

$

541 

 

$

627 



During 2016, the Company recorded an $88,000 impairment of its equipment and materials inventory.  This impairment was a result of a 2016 decrease in the estimated sales value for similar equipment.



Oil And Gas Properties

Oil and Gas Properties



The Company follows the full cost method of accounting for oil and gas property acquisition, exploration, and development activities.  Under this method, all costs incurred in connection with acquisition, exploration, and development of oil and gas reserves are capitalized.  Capitalized costs include lease acquisitions, seismic related costs, certain internal exploration costs, drilling, completion, and estimated asset retirement costs. The capitalized costs of oil and gas properties, plus estimated future development costs relating to proved reserves and estimated asset retirement costs which are not already included net of estimated salvage value, are amortized on the unit-of-production method based on total proved reserves. The Company has determined its reserves based upon reserve reports provided by LaRoche Petroleum Consultants Ltd. since 2009. The costs of unproved properties are excluded from amortization until the properties are evaluated, subject to an annual assessment of whether impairment has occurred.  The Company had $0 and $106,000 in unevaluated properties as of December 31, 2017 and 2016, respectively.  Proceeds from the sale of oil and gas properties are accounted for as reductions to capitalized costs unless such sales cause a significant change in the relationship between costs and the estimated value of proved reserves, in which case a gain or loss is recognized.



At the end of each reporting period, the Company performs a “ceiling test” on the value of the net capitalized cost of oil and gas properties. This test compares the net capitalized cost (capitalized cost of oil and gas properties, net of accumulated depreciation, depletion and amortization and related deferred income taxes) to the present value of estimated future net revenues from oil and gas properties using an average price (arithmetic average of the beginning of month prices for the prior 12 months) and current cost discounted at 10%  plus cost of properties not being amortized and the lower of cost or estimated  fair value of unproven properties included in the cost being amortized (ceiling). If the net capitalized cost is greater than the ceiling, a write-down or impairment is required.  A write-down of the carrying value of the asset is a non-cash charge that reduces earnings in the current period.  Once incurred, a write-down may not be reversed in a later period.

Asset Retirement Obligation

Asset Retirement Obligation



An asset retirement obligation associated with the retirement of a tangible long-lived asset is recognized as a liability in the period incurred, with an associated increase in the carrying amount of the related long-lived asset, our oil and natural gas properties. The cost of the tangible asset, including the asset retirement cost, is depleted over the useful life of the asset. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. Accretion expense is recorded as “Production costs and taxes” in the Consolidated Statements of Operations.  If the estimated future cost of the asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the long-lived asset. Revisions to estimated asset retirement obligations can result from changes in retirement cost estimates, revisions to estimated inflation rates, and changes in the estimated timing of abandonment.

Manufactured Methane Facilities

Manufactured Methane Facilities



The Manufactured Methane facilities were placed into service in April 2009 and were being depreciated using the straight-line method over the useful life based on the estimated landfill closure date of December 2041.  The Company sold all its methane facility assets, except the applicable U.S. patent, on January 26, 2018.

Other Property And Equipment

Other Property and Equipment



Other property and equipment is carried at cost.  The Company provides for depreciation of other property and equipment using the straight-line method over the estimated useful lives of the assets which range from two to seven years.  Net gains or losses on other property and equipment disposed of are included in operating income in the period in which the transaction occurs.

Stock-Based Compensation

Stock-Based Compensation



The Company records stock-based compensation to employees based on the estimated fair value of the award at grant date.  We recognize expense on a straight line basis over the requisite service period. For stock-based compensation that vests immediately, the Company recognizes the entire expense in the quarter in which the stock-based compensation is granted.  The Company recorded compensation expense of $14,000 in 2017, $17,000 in 2016,  and $12,000 in 2015.

Accounts Receivable

Accounts Receivable



Accounts receivable consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date, uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 days of production, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied to the earliest unpaid items. We review accounts receivable periodically and reduce the carrying amount by a valuation allowance that reflects our best estimate of the amount that may not be collectible. An allowance was recorded at December 31, 2017 and 2016.  At December 31, 2017 and 2016, accounts receivable consisted of the following (in thousands):

 





 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2017

 

2016

Revenue

 

$

570 

 

$

476 

Joint interest

 

 

23 

 

 

21 

Other

 

 

29 

 

 

Allowance for doubtful accounts

 

 

(14)

 

 

(14)

Total accounts receivable

 

$

608 

 

$

490 



Income Taxes

Income Taxes



Income taxes are reported in accordance with U.S. GAAP, which requires the establishment of deferred tax accounts for all temporary differences between the financial reporting and tax bases of assets and liabilities, using currently enacted federal and state income tax rates.  In addition, deferred tax accounts must be adjusted to reflect new rates if enacted into law.

 

At December 31, 2017, federal net operating loss carryforwards amounted to approximately $30.2 million which expire between 2019 and 2036. The net total deferred tax asset was $242,000 at December 31, 2017 and $0 at 2016.  In 2017, The Company released a portion of the allowance related to the Company’s Minimum Tax Credit (“MTC”) as a result of the 2017 Tax Act.  The Company recorded an allowance on the remaining deferred tax asset at December 31, 2017 primarily due to cumulative losses incurred during the 3 years ended December 31, 2017.  The Company recorded a full allowance against the deferred tax asset at December 31, 2016 primarily due to cumulative losses incurred during the 3 years ended December 31, 2016.



Realization of deferred tax assets is contingent on the generation of future taxable income.  As a result, management considers whether it is more likely than not that all or a portion of such assets will be realized during periods when they are available, and if not, management provides a valuation allowance for amounts not likely to be recognized.



Management periodically evaluates tax reporting methods to determine if any uncertain tax positions exist that would require the establishment of a loss contingency.  A loss contingency would be recognized if it were probable that a liability has been incurred as of the date of the financial statements and the amount of the loss can be reasonably estimated.



The amount recognized is subject to estimates and management’s judgment with respect to the likely outcome of each uncertain tax position.  The amount that is ultimately incurred for an individual uncertain tax position or for all uncertain tax positions in the aggregate could differ from the amount recognized.

Concentration Of Credit Risk

Concentration of Credit Risk



Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable.  Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances.



The Company’s primary business activities include oil sales to a limited number of customers in the state of Kansas.  The related trade receivables subject the Company to a concentration of credit risk.  The Company sells a majority of its crude oil primarily to two customers in Kansas.  Although management believes that customers could be replaced in the ordinary course of business, if the present customers were to discontinue business with the Company, it may have a significant adverse effect on the Company’s projected results of operations.



Revenue from the top three purchasers accounted for 75.3%,  13.1%, and 11.0% of total revenues for year ended December 31, 2017.  Revenue from the top three purchasers accounted for 73.9%,  13.1%, and 12.0% of total revenues for year ended December 31, 2016.  Revenue from the top three purchasers accounted for 74.5%,  16.1%, and 8.6% of total revenues for year ended December 31, 2015.  As of December 31, 2017 and 2016, two of the Company’s oil purchasers accounted for 76.2% and 84.1%, respectively of accounts receivable, of which one oil purchaser accounted for 63.2% and 71.0%, respectively.

Earnings Per Common Share

Earnings per Common Share



The Company reports basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share which include the effect of all potentially dilutive securities unless their impact is anti-dilutive. The following are reconciliations of the numerators and denominators of the Company’s basic and diluted earnings per share, (in thousands except for share and per share amounts):







 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

For the years ended December 31,



 

2017

 

2016

 

2015

Income (numerator):

 

  

 

 

  

 

 

  

 

Net loss

 

$

(574)

 

$

(4,199)

 

$

(24,721)

Weighted average shares (denominator):

 

 

 

 

 

 

 

 

 

Weighted average shares - basic

 

 

10,081,218 

 

 

6,091,028 

 

 

6,084,241 

Dilution effect of share-based compensation, treasury method

 

 

 —

 

 

 —

 

 

 —

Weighted average shares - dilutive

 

 

10,081,218 

 

 

6,091,028 

 

 

6,084,241 

Loss per share – Basic and Dilutive:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.06)

 

$

(0.69)

 

$

(4.06)

Dilutive

 

$

(0.06)

 

$

(0.69)

 

$

(4.06)



For the years ended December 31, 2016 and 2015, 114 and 760 shares, respectively, were excluded from dilutive shares as they would have been anti-dilutive.  The 114 and 760 shares excluded from the dilutive share calculation represents shares calculated using the treasury method for options issued to the Company’s directors in which the exercise price was lower than the average market price each quarter.  In addition, options issued to the Company’s directors in which the exercise price was higher than the average market price each quarter was also excluded from diluted shares as they would have been anti-dilutive.

Fair Value Of Financial Instruments

Fair Value of Financial Instruments



The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payables, accrued liabilities and long term debt approximates fair value as of December 31, 2017 and 2016.

Derivative Financial Instruments

Derivative Financial Instruments



The Company uses derivative instruments to manage our exposure to commodity price risk on sales of oil production.  The Company does not enter into derivative instruments for speculative trading purposes.  The Company presents the fair value of derivative contracts on a net basis where the right to offset is provided for in our counterparty agreements.  As of December 31, 2017 and 2016, the Company did not have any open derivatives.

Reclassifications

Reclassifications



Certain prior year amounts have been reclassified to conform to current year presentation with no effect on net income.


Description Of Business And Significant Accounting Policies (Tables)
v3.8.0.1
Description Of Business And Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2017
Description Of Business And Significant Accounting Policies [Abstract]  
Inventory



 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2017

 

2016

Oil – carried at lower of cost or market

 

$

436 

 

$

505 

Equipment and materials – carried at market

 

 

105 

 

 

122 

Total inventory

 

$

541 

 

$

627 



Accounts Receivable



 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2017

 

2016

Revenue

 

$

570 

 

$

476 

Joint interest

 

 

23 

 

 

21 

Other

 

 

29 

 

 

Allowance for doubtful accounts

 

 

(14)

 

 

(14)

Total accounts receivable

 

$

608 

 

$

490 



Reconciliations Of The Numerators And Denominators On Basic And Diluted Earnings Per Share



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

For the years ended December 31,



 

2017

 

2016

 

2015

Income (numerator):

 

  

 

 

  

 

 

  

 

Net loss

 

$

(574)

 

$

(4,199)

 

$

(24,721)

Weighted average shares (denominator):

 

 

 

 

 

 

 

 

 

Weighted average shares - basic

 

 

10,081,218 

 

 

6,091,028 

 

 

6,084,241 

Dilution effect of share-based compensation, treasury method

 

 

 —

 

 

 —

 

 

 —

Weighted average shares - dilutive

 

 

10,081,218 

 

 

6,091,028 

 

 

6,084,241 

Loss per share – Basic and Dilutive:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.06)

 

$

(0.69)

 

$

(4.06)

Dilutive

 

$

(0.06)

 

$

(0.69)

 

$

(4.06)




Description Of Business And Significant Accounting Policies (Narrative) (Details)
v3.8.0.1
Description Of Business And Significant Accounting Policies (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Description Of Business And Significant Accounting Policies [Line Items]      
Material natural gas imbalances $ 0 $ 0  
Methane gas revenue 0 0  
Impairment of equipment and materials inventory   88,000  
Unevaluated properties $ 0 106,000  
Current cost discount 10.00%    
Stock based compensation $ 14,000 17,000 $ 12,000
Federal net operating loss carryforwards 30,200,000    
Deferred tax asset $ 242,000  
Shares excluded from dilutive shares   114 760
Customer A [Member] | Revenue [Member]      
Description Of Business And Significant Accounting Policies [Line Items]      
Customer's percentage of revenue 75.30% 73.90% 74.50%
Customer B [Member] | Revenue [Member]      
Description Of Business And Significant Accounting Policies [Line Items]      
Customer's percentage of revenue 13.10% 13.10% 16.10%
Customer C [Member] | Revenue [Member]      
Description Of Business And Significant Accounting Policies [Line Items]      
Customer's percentage of revenue 11.00% 12.00% 8.60%
Two Customers [Member] | Accounts Receivable [Member]      
Description Of Business And Significant Accounting Policies [Line Items]      
Customer's percentage of revenue 76.20% 84.10%  
Customer D [Member] | Accounts Receivable [Member]      
Description Of Business And Significant Accounting Policies [Line Items]      
Customer's percentage of revenue 63.20% 71.00%  
Minimum [Member]      
Description Of Business And Significant Accounting Policies [Line Items]      
Federal net operating loss carryforwards expiration between, years Dec. 31, 2019    
Maximum [Member]      
Description Of Business And Significant Accounting Policies [Line Items]      
Federal net operating loss carryforwards expiration between, years Dec. 31, 2036    

Description Of Business And Significant Accounting Policies (Inventory) (Details)
v3.8.0.1
Description Of Business And Significant Accounting Policies (Inventory) (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Description Of Business And Significant Accounting Policies [Abstract]    
Oil - carried at lower of cost or market $ 436 $ 505
Equipment and materials - carried at market 105 122
Total inventory $ 541 $ 627

Description Of Business And Significant Accounting Policies (Accounts Receivable) (Details)
v3.8.0.1
Description Of Business And Significant Accounting Policies (Accounts Receivable) (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Allowance for doubtful accounts $ (14) $ (14)
Total accounts receivable 608 490
Revenue [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable 570 476
Joint Interest [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable 23 21
Other [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable $ 29 $ 7

Description Of Business And Significant Accounting Policies (Reconciliations Of The Numerators And Denominators On Basic And Diluted Earnings Per Share) (Details)
v3.8.0.1
Description Of Business And Significant Accounting Policies (Reconciliations Of The Numerators And Denominators On Basic And Diluted Earnings Per Share) (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Earnings Per Common Share [Abstract]                      
Net loss $ 132 $ (315) $ (178) $ (213) $ (260) $ (908) $ (1,627) $ (1,404) $ (574) $ (4,199) $ (24,721)
Weighted average shares - basic                 10,081,218 6,091,028 6,084,241
Weighted average shares - dilutive                 10,081,218 6,091,028 6,084,241
Basic $ 0.02 $ (0.03) $ (0.02) $ (0.03) $ (0.04) $ (0.15) $ (0.27) $ (0.23) $ (0.06) $ (0.69) $ (4.06)
Dilutive                 $ (0.06) $ (0.69) $ (4.06)

Recent Accounting Pronouncements
v3.8.0.1
Recent Accounting Pronouncements
12 Months Ended
Dec. 31, 2017
Recent Accounting Pronouncements [Abstract]  
Recent Accounting Pronouncements

2. Recent Accounting Pronouncements



In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014–09 Revenue from Contracts with Customers (“ASU 2014-09”)This ASU, as amended, superseded virtually all of the revenue recognition guidance in generally accepted accounting principles in the United States. The core principle of the five–step model is that an entity will recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. Entities can choose to apply the standard using either the full retrospective approach or a modified retrospective approach. The provisions of ASU 2014–09 are applicable to annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. We have implemented ASU 2014-09 as of January 1, 2018 using the modified retrospective approach.  To date, the Company has identified the contracts with each of its customers and the separate performance obligations associated with each of these contracts.  Based on the evaluation performed to date, we have identified similar performance obligations as compared with deliverables and separate units of account previously identified, and we do not expect any change related to the allocation of the transaction price and the timing of our revenue to have a material impact on our consolidated financial statements or results of operations.



In February 2016, the FASB issued Update 2016-02 Leases (Topic 842).  This guidance was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements.  This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.  Early application of the amendments in this Update is permitted for all entities.  To date, the Company has identified each of its leases and is in the process of determining the impact of this new guidance on each of the identified leases.  The Company does not expect this to impact its operating results or cash flows, however, the Company does expect to carry a portion of future lease costs as an asset and a liability on its balance sheet.



In March 2016, the FASB issued Update 2016-09 Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.  This guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows.  This guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The company implement this in 2017 with no impact on the Company’s operating results or cash flows.



In August 2016, the FASB issued Update 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.  This amendment provides guidance on certain cash flow classification issues, thereby reducing the current and potential future diversity in practice.  This guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period.  The Company does not expect this to impact operating results or cash flows.

 


Related Party Transactions
v3.8.0.1
Related Party Transactions
12 Months Ended
Dec. 31, 2017
Related Party Transactions [Abstract]  
Related Party Transactions

3. Related Party Transactions



On September 17, 2007, Hoactzin Partners, L.P. (“Hoactzin”) subscribed to a drilling program offered by the Company consisting of wells to be drilled on the Company’s Kansas Properties (the “Program”).  Peter E. Salas, the Chairman of the Board of Directors of the Company, is the controlling person of Hoactzin and of Dolphin Offshore Partners, L.P., the Company’s largest shareholder.  Hoactzin was also conveyed a net profits interest in the MMC facility at the Carter Valley municipal solid waste landfill owned and operated by Republic Services, Inc. in Church Hill, Tennessee where the Company installed a propriety combination of advanced gas treatment technology to extract the methane component of the purchased gas stream (the “Methane Project”).  The net profits interest owned by Hoactzin during 2017 was 7.5% of the net profits as defined by agreement and takes into account specific costs and expenses as well as gross gas revenues for the project.  As a result of the startup costs, monthly operating expenses, and gas production levels experienced, no net profits as defined were realized during the period from the project startup in April, 2009 through December 31, 2017 for payment to Hoactzin under the net profits interest.  Since the start of 2014, there have been no methane gas sales or revenues, and consequently no net profits attributable to Hoactzin’s net profits interest. 



On December 18, 2007, the Company entered into a Management Agreement with Hoactzin to manage on behalf of Hoactzin all of its working interest in certain oil and gas properties owned by Hoactzin and located in the onshore Texas Gulf Coast, and offshore Texas and offshore Louisiana. As part of the consideration for the Company’s agreement to enter into the Management Agreement, Hoactzin granted to the Company an option to participate in up to a 15% working interest on a dollar for dollar cost basis in any new drilling or workover activities undertaken on Hoactzin’s managed properties during the term of the Management Agreement.  The Management Agreement expired on December 18, 2012. 



The Company entered into a transition agreement with Hoactzin whereby the Company no longer performs operations, but administratively assists Hoactzin in becoming operator of record of these wells and transferring all bonds from the Company to Hoactzin.  This assistance is primarily related to signing the necessary documents to effectuate this transition.  Hoactzin and its controlling member are indemnifying the Company for any costs or liabilities incurred by the Company resulting from such assistance, or the fact that the Company is the operator of record on certain of these wells.  As of the date of this Report, the Company continues to administratively assist Hoactzin with this transition process. 



As operator during the term of the Management Agreement that expired in 2012, the Company routinely contracted in its name for goods and services with vendors in connection with its operation of the Hoactzin properties.  In practice, Hoactzin directly paid these invoices for goods and services that were contracted in the Company’s name.  As a result of the operations performed in late 2009 and early 2010, Hoactzin had significant past due balances to several vendors, a portion of which were included on the Company’s balance sheet.  Payables related to these past due and ongoing operations remained outstanding at December 31, 2017 and December 31, 2016 in the amount of $159,000.  The Company has recorded the Hoactzin-related payables and the corresponding receivable from Hoactzin as of December 31, 2017 and December 31, 2016 in its Consolidated Balance Sheets under “Accounts payable – other” and “Accounts receivable – related party”.  The outstanding balance of $159,000 should not increase in the future.  However, Hoactzin has not made payments to reduce the $159,000 of past due balances from 2009 and 2010 since the second quarter of 2012.  Based on these circumstances, the Company has elected to record an allowance in the amount of $159,000 for the balances outstanding at December 31, 2017 and December 31, 2016.  This allowance was recorded in the Company’s Consolidated Balance Sheets under “Accounts receivable – related party”.  The resulting balances recorded in the Company’s Consolidated Balance Sheets under “Accounts receivable – related party, less allowance for doubtful accounts of $159” are $0 at December 31, 2017 and December 31, 2016. 




Related Party Transactions (Narrative) (Details)
v3.8.0.1
Related Party Transactions (Narrative) (Details) - USD ($)
12 Months Ended 48 Months Ended 105 Months Ended
Dec. 18, 2007
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Dec. 31, 2017
Related Party Transaction [Line Items]            
Cost incurred, development costs       $ 252,000    
Working interest percent 15.00%          
Related party allowance for doubtful accounts receivable   $ 14,000 $ 14,000   $ 14,000 $ 14,000
Accounts receivable-related party, allowance for doubtful accounts   159,000 159,000   159,000 159,000
Accounts receivable - related parties balance    
Methane gas sales   $ 4,683,000 4,113,000 $ 5,631,000    
Methane Project [Member]            
Related Party Transaction [Line Items]            
Percent of net profits, interest   7.50%        
Hoactzin Partners, L.P. [Member]            
Related Party Transaction [Line Items]            
Related parties accounts payable   $ 159,000 159,000   159,000 159,000
Past due related parties accounts payable   159,000     159,000 159,000
Hoactzin Partners, L.P. [Member] | Methane Project [Member]            
Related Party Transaction [Line Items]            
Net profits           0
Methane gas sales         0  
Related Party [Member] | Hoactzin Partners, L.P. [Member]            
Related Party Transaction [Line Items]            
Accounts receivable-related party, allowance for doubtful accounts   159,000 159,000   159,000 159,000
Accounts receivable - related parties balance   $ 159,000 $ 0   $ 159,000 $ 159,000

Oil And Gas Properties
v3.8.0.1
Oil And Gas Properties
12 Months Ended
Dec. 31, 2017
Oil And Gas Properties [Abstract]  
Oil And Gas Properties

4. Oil and Gas Properties



The following table sets forth information concerning the Company’s oil and gas properties: (in thousands):







 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2017

 

2016

Oil and gas properties

 

$

5,704 

 

$

5,315 

Unevaluated properties

 

 

 —

 

 

106 

Accumulated depreciation, depletion and amortization

 

 

(984)

 

 

(196)

Oil and gas properties, net

 

$

4,720 

 

$

5,225 



During the years ended December 31, 2017, 2016, and 2015, the Company recorded depletion expense of $796,000,  $1.0 million, and $2.5 million, respectively.  In addition, as a result of the ceiling test impairments during 2015 and the first three quarters of 2016, the accumulated depreciation, depletion, and amortization was been netted against the cost to reflect the post impairment value of the oil and gas properties.  As no ceiling test impairment was recorded during the quarter ended December 31, 2016, nor during any of the quarters ended in 2017, these amounts were not netted against cost, but remained in accumulated depreciation, depletion, and amortization at December 31, 2017 and December 31, 2016.

 


Oil And Gas Properties (Tables)
v3.8.0.1
Oil And Gas Properties (Tables)
12 Months Ended
Dec. 31, 2017
Oil And Gas Properties [Abstract]  
Schedule Of Oil And Gas Properties



 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2017

 

2016

Oil and gas properties

 

$

5,704 

 

$

5,315 

Unevaluated properties

 

 

 —

 

 

106 

Accumulated depreciation, depletion and amortization

 

 

(984)

 

 

(196)

Oil and gas properties, net

 

$

4,720 

 

$

5,225 




Oil And Gas Properties (Narrative) (Details)
v3.8.0.1
Oil And Gas Properties (Narrative) (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Oil And Gas Properties [Abstract]                
Depletion expense           $ 796,000 $ 1,000,000 $ 2,500,000
Impairment $ 0 $ 0 $ 0 $ 0 $ 0   $ 2,805,000 $ 14,526,000

Oil And Gas Properties (Schedule Of Oil And Gas Properties) (Details)
v3.8.0.1
Oil And Gas Properties (Schedule Of Oil And Gas Properties) (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Oil And Gas Properties [Abstract]    
Oil and gas properties $ 5,704 $ 5,315
Unevaluated properties   106
Accumulated depreciation, depletion, and amortization (984) (196)
Oil and gas properties, net $ 4,720 $ 5,225

Manufactured Methane Facilities
v3.8.0.1
Manufactured Methane Facilities
12 Months Ended
Dec. 31, 2017
Manufactured Methane Facilities [Abstract]  
Manufactured Methane Facilities

5. Manufactured Methane Facilities

 

The following table sets forth information concerning the Manufactured Methane facilities: (in thousands):







 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2017

 

2016

Manufactured Methane facilities, net of impairment

 

$

1,681 

 

$

1,681 

Accumulated depreciation

 

 

(184)

 

 

(122)

Manufactured Methane facilities, net

 

$

1,497 

 

$

1,559 



During each of the years ended December 31, 2017, 2016, and 2015, the Company recorded depreciation expense of $62,000,  $62,000,  and $60,000, respectively. 

 


Manufactured Methane Facilities (Tables)
v3.8.0.1
Manufactured Methane Facilities (Tables)
12 Months Ended
Dec. 31, 2017
Manufactured Methane Facilities [Abstract]  
Methane Facilities



 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2017

 

2016

Manufactured Methane facilities, net of impairment

 

$

1,681 

 

$

1,681 

Accumulated depreciation

 

 

(184)

 

 

(122)

Manufactured Methane facilities, net

 

$

1,497 

 

$

1,559 




Manufactured Methane Facilities (Narrative) (Details)
v3.8.0.1
Manufactured Methane Facilities (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Methane Project [Line Items]      
Depreciation expense $ 66,000 $ 69,000 $ 77,000
Methane Project [Member]      
Methane Project [Line Items]      
Depreciation expense $ 62,000 $ 62,000 $ 60,000

Manufactured Methane Facilities (Methane Facilities) (Details)
v3.8.0.1
Manufactured Methane Facilities (Methane Facilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Dec. 31, 2016
Property, Plant and Equipment [Line Items]    
Manufactured Methane facilities, net of impairment $ 401 $ 422
Accumulated depreciation (266) (282)
Manufactured Methane facilities, net 135 140
Methane Project [Member]    
Property, Plant and Equipment [Line Items]    
Manufactured Methane facilities, net of impairment 1,681 1,681
Accumulated depreciation (184) (122)
Manufactured Methane facilities, net $ 1,497 $ 1,559

Other Property And Equipment
v3.8.0.1
Other Property And Equipment
12 Months Ended
Dec. 31, 2017
Other Property And Equipment [Abstract]  
Other Property And Equipment

6. Other Property and Equipment



Other property and equipment consisted of the following as of December 31, 2017: (in thousands)







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

Depreciable

 

 

 

 

Accumulated

 

Net Book

Type

 

Life

 

Gross Cost

 

Depreciation

 

Value

Machinery and equipment

 

5-7 yrs

 

$

20 

 

$

20 

 

$

 —

Vehicles

 

2-5 yrs

 

 

318 

 

 

183 

 

 

135 

Other

 

5 yrs

 

 

63 

 

 

63 

 

 

 —

Total

 

 

 

$

401 

 

$

266 

 

$

135 



Other property and equipment consisted of the following as of December 31, 2016: (in thousands)







 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

Depreciable

 

 

 

 

Accumulated

 

Net Book

Type

 

Life

 

Gross Cost

 

Depreciation

 

Value

Machinery and equipment

 

5-7 yrs