Document And Entity Information
v3.8.0.1
Document And Entity Information - shares
3 Months Ended
Mar. 31, 2018
May 07, 2018
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q1  
Entity Registrant Name TENGASCO INC  
Entity Central Index Key 0001001614  
Entity Filer Category Smaller Reporting Company  
Current Fiscal Year End Date --12-31  
Entity Common Stock, Shares Outstanding   10,624,493

Condensed Consolidated Balance Sheets
v3.8.0.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Current    
Cash and cash equivalents $ 2,916 $ 185
Accounts receivable, less allowance for doubtful accounts of $14 550 517
Accounts receivable - related party, less allowance for doubtful accounts of $159
Inventory 656 541
Other current assets 219 134
Discontinued operations included in current assets   121
Total current assets 4,341 1,498
Loan fees, net 12 13
Oil and gas properties, net (full cost accounting method) 4,570 4,720
Other property and equipment, net 243 135
Deferred tax asset 242 242
Discontinued operations included in non-current assets   1,497
Total assets 9,408 8,105
Current liabilities    
Accounts payable - trade 133 181
Accounts payable - other 159 159
Accrued and other current liabilities 211 187
Current maturities of long-term debt 56 41
Discontinued operations included in current liabilities 32 43
Total current liabilities 591 611
Asset retirement obligation 2,292 2,270
Long term debt, less current maturities 103 49
Total liabilities 2,986 2,930
Commitments and contingencies (Note 13)
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, 10,624,493 and 10,619,924 shares issued and outstanding 11 11
Additional paid-in capital 58,257 58,253
Accumulated deficit (51,846) (53,089)
Total stockholders' equity 6,422 5,175
Total liabilities and stockholders' equity $ 9,408 $ 8,105

Condensed Consolidated Balance Sheets (Parenthetical)
v3.8.0.1
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Allowance for doubtful accounts $ 14 $ 14
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 10,624,493 10,619,924
Common stock, shares outstanding 10,624,493 10,619,924
Related Party [Member]    
Allowance for doubtful accounts $ 159 $ 159
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

Condensed Consolidated Statements Of Operations
v3.8.0.1
Condensed Consolidated Statements Of Operations - USD ($)
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Revenues    
Revenue $ 1,367,000 $ 1,209,000
Cost and expenses    
Production costs and taxes 730,000 808,000
Depreciation, depletion, and amortization 183,000 221,000
General and administrative 336,000 334,000
Impairment
Total cost and expenses 1,249,000 1,363,000
Net income (loss) from operations 118,000 (154,000)
Other expense    
Net interest expense (1,000) (16,000)
Gain on sale of assets 16,000
Total other expenses 15,000 (16,000)
Income (loss) from continuing operations before income tax 133,000 (170,000)
Deferred income tax benefit
Net income (loss) from continuing operations 133,000 (170,000)
Net income (loss) from discontinued operations 1,110,000 (43,000)
Net income (loss) $ 1,243,000 $ (213,000)
Net income (loss) per share - Basic and Fully Diluted    
Continuing operations $ 0.01 $ (0.02)
Discontinued operations $ 0.10 $ (0.01)
Shares used in computing earnings per share    
Basic and fully diluted 10,624,442 8,452,132
Oil And Gas Proeprties Revenue [Member]    
Revenues    
Revenue $ 1,367,000 $ 1,209,000

Condensed Consolidated Statements Of Cash Flows
v3.8.0.1
Condensed Consolidated Statements Of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Operating activities    
Net income (loss) from continuing operations $ 133 $ (170)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation, depletion, and amortization 183 221
Amortization of loan fees-interest expense 1 4
Accretion on asset retirement obligation 36 36
(Gain) loss on assets sales (16)
Stock based compensation 4 4
Changes in assets and liabilities:    
Accounts receivable (33) 44
Inventory and other assets (200) 56
Accounts payable (48) (63)
Accrued and other current liabilities 18 (50)
Settlement on asset retirement obligation (7) (10)
Net cash provided by operating activities - continuing operations 71 72
Net cash provided by (used in) operating activities - discontinued operations 67 (160)
Net cash provided by (used in) operating activities 138 (88)
Investing activities    
Additions to oil and gas properties (32) (7)
Prooceeds from sale of oil and gas properties 3  
Additions to other property & equipment (19)  
Proceeds from sale of other property and equipment 7  
Net cash used in investing activities - continuing operations (41) (7)
Net cash provided by investing activities - discontinued operations 2,650  
Net cash provided by (used in) investing activities 2,609 (7)
Financing activities    
Repayments of borrowings (116) (2,815)
Proceeds from borrowings 100 400
Proceeds from stock issuance in rights offering   2,699
Costs of stock issuance in rights offering   (37)
Net cash provided by (used in) financing activities - continuing operations (16) 247
Net cash provided by financing activities (16) 247
Net change in cash and cash equivalents 2,731 152
Net change in cash and cash equivalents 2,731 152
Cash and cash equivalents, beginning of period 185 76
Cash and cash equivalents, end of period 2,916 228
Supplemental cash flow information:    
Cash interest payments   12
Supplemental non-cash investing and financing activities:    
Financed company vehicles 109  
Costs of stock issuance in rights offering   $ (140)
Capital expenditures included in accounts payable and accrued liabilities $ 6  

Description Of Business And Significant Accounting Policies
v3.8.0.1
Description Of Business And Significant Accounting Policies
3 Months Ended
Mar. 31, 2018
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, except the applicable U.S. patent, on January 26, 2018 for $2.65 million. (See Note 11. Discontinued Operations)



Basis of Presentation



The accompanying unaudited condensed consolidated financial statements as of March 31, 2018 and March 31, 2017 have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Item 210 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  The condensed consolidated balance sheet as of December 31, 2017 is derived from the audited financial statements, but does not include all disclosures required by U.S. GAAP.  The Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation for the periods presented have been included as required by Regulation S-X, Rule 10-01.  Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018. It is suggested that these condensed consolidated financial statements be read in conjunction with the Company’s consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.



Principles of Consolidation



The accompanying condensed 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 condensed 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 condensed consolidated financial statements are appropriate, actual results could differ from those estimates.



Revenue Recognition



Effective January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers.  The Company identifies the contracts with each of its customers and the separate performance obligations associated with each of these contracts.  Revenues are recognized when the performance obligations are satisfied and 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.



Crude oil is sold on a month-to-month contract at a price based on an index price from the purchaser, net of differentials.  Crude oil that is produced is stored in storage tanks.  The Company will contact the purchaser to pick up the crude the storage tanks.  When the purchaser picks up the crude from the storage tanks, control of the crude transfers to the purchaser, the Company’s contractual obligation is satisfied, and revenues are recognized.  The sales of oil represents the Company’s share of revenues net of royalties and excluding revenue interests owned by others.  When selling oil on behalf of royalty owners or working interest owners, the Company is acting as an agent and thus reports revenues on a net basis.  Fees and other deductions incurred prior to transfer of control are recorded as production costs.  Revenues are report net of fees and other deductions incurred after transfer of control.



Electricity from the Company’s methane facility was sold on a long term contract.  There were no specific volumes of electricity that were required to be delivered under this contract.  Electricity passed through sales meters located at the Carter Valley landfill site, at which time control of the electricity transferred to the purchaser, the Company’s contractual obligation was satisfied, and revenues were recognizedThe Company sold its methane facility assets on January 26, 2018 and therefore will not recognize revenues associated with any sales volumes after this date.  Revenues associated with the methane facility are included in Discontinued Operations.  (See Note 11. Discontinued Operations)



The Company operates certain salt water disposal wells, some of which accept water from third parties.  The contracts with the third parties primarily require a flat monthly fee for the third parties to dispose water into the wells.  In some cases, the contract is based on a per barrel charge to dispose water into the wells.  There is no requirement under the contracts for these third parties to use these wells for their water disposal.  If the third parties do dispose water into the Company operated wells in a given month, the Company has met its contractual obligations and revenues are recognized for that month.



The following table presents the disaggregated revenue by commodity for the three months ended March 31, 2018 and 2017 (in thousands):





 

 

 



Three Months Ended



March 31, 2018

 

March 31, 2017

Revenues (in thousands):

 

 

 

     Crude oil

$1,357 

 

$1,203 

     Salt water disposal fees

10 

 



 

 

 

     Total

$1,367 

 

$1,209 





There were no natural gas imbalances at March 31, 2018 or December 31, 2017. 



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 cost per barrel for the three months ended March 31, 2018 and December 31, 2017.  These costs includes production costs and taxes, allocated general and administrative costs, depletion, and allocated interest cost.  The market value component is calculated using the average March 2018 and December 2017 oil sales prices received from 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 period.  At March 31, 2018 and December 31, 2017, inventory consisted of the following (in thousands):







 

 

 

 

 

 



 

 

 

 

 

 



 

March 31,

 

December 31,



 

2018

 

2017

Oil – carried at cost

 

$

551 

 

$

436 

Equipment and materials – carried at market

 

 

105 

 

 

105 

Total inventory

 

$

656 

 

$

541 



Full Cost Method of Accounting



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 in unevaluated properties as of March 31, 2018 and December 31, 2017.  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.



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 sales of oil and gas production and within 60 days of sales of produced electricity, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied first 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 March 31, 2018 and December 31, 2017.



The following table sets forth information concerning the Company’s accounts receivable (in thousands):







 

 

 

 

 

 



 

 

 

 

 

 



 

March 31,

 

December 31,



 

2018

 

2017

Revenue

 

$

519 

 

$

479 

Joint interest

 

 

23 

 

 

23 

Other

 

 

22 

 

 

29 

Allowance for doubtful accounts

 

 

(14)

 

 

(14)

Total accounts receivable

 

$

550 

 

$

517 

 



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)
3 Months Ended
Mar. 31, 2018
Description Of Business And Significant Accounting Policies [Abstract]  
Basis Of Presentation

Basis of Presentation



The accompanying unaudited condensed consolidated financial statements as of March 31, 2018 and March 31, 2017 have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Item 210 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  The condensed consolidated balance sheet as of December 31, 2017 is derived from the audited financial statements, but does not include all disclosures required by U.S. GAAP.  The Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation for the periods presented have been included as required by Regulation S-X, Rule 10-01.  Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018. It is suggested that these condensed consolidated financial statements be read in conjunction with the Company’s consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Principles Of Consolidation

Principles of Consolidation



The accompanying condensed 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 condensed 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 condensed consolidated financial statements are appropriate, actual results could differ from those estimates.

Revenue Recognition

Revenue Recognition



Effective January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers.  The Company identifies the contracts with each of its customers and the separate performance obligations associated with each of these contracts.  Revenues are recognized when the performance obligations are satisfied and 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.



Crude oil is sold on a month-to-month contract at a price based on an index price from the purchaser, net of differentials.  Crude oil that is produced is stored in storage tanks.  The Company will contact the purchaser to pick up the crude the storage tanks.  When the purchaser picks up the crude from the storage tanks, control of the crude transfers to the purchaser, the Company’s contractual obligation is satisfied, and revenues are recognized.  The sales of oil represents the Company’s share of revenues net of royalties and excluding revenue interests owned by others.  When selling oil on behalf of royalty owners or working interest owners, the Company is acting as an agent and thus reports revenues on a net basis.  Fees and other deductions incurred prior to transfer of control are recorded as production costs.  Revenues are report net of fees and other deductions incurred after transfer of control.



Electricity from the Company’s methane facility was sold on a long term contract.  There were no specific volumes of electricity that were required to be delivered under this contract.  Electricity passed through sales meters located at the Carter Valley landfill site, at which time control of the electricity transferred to the purchaser, the Company’s contractual obligation was satisfied, and revenues were recognizedThe Company sold its methane facility assets on January 26, 2018 and therefore will not recognize revenues associated with any sales volumes after this date.  Revenues associated with the methane facility are included in Discontinued Operations.  (See Note 11. Discontinued Operations)



The Company operates certain salt water disposal wells, some of which accept water from third parties.  The contracts with the third parties primarily require a flat monthly fee for the third parties to dispose water into the wells.  In some cases, the contract is based on a per barrel charge to dispose water into the wells.  There is no requirement under the contracts for these third parties to use these wells for their water disposal.  If the third parties do dispose water into the Company operated wells in a given month, the Company has met its contractual obligations and revenues are recognized for that month.



The following table presents the disaggregated revenue by commodity for the three months ended March 31, 2018 and 2017 (in thousands):





 

 

 



Three Months Ended



March 31, 2018

 

March 31, 2017

Revenues (in thousands):

 

 

 

     Crude oil

$1,357 

 

$1,203 

     Salt water disposal fees

10 

 



 

 

 

     Total

$1,367 

 

$1,209 





There were no natural gas imbalances at March 31, 2018 or December 31, 2017. 

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 cost per barrel for the three months ended March 31, 2018 and December 31, 2017.  These costs includes production costs and taxes, allocated general and administrative costs, depletion, and allocated interest cost.  The market value component is calculated using the average March 2018 and December 2017 oil sales prices received from 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 period.  At March 31, 2018 and December 31, 2017, inventory consisted of the following (in thousands):







 

 

 

 

 

 



 

 

 

 

 

 



 

March 31,

 

December 31,



 

2018

 

2017

Oil – carried at cost

 

$

551 

 

$

436 

Equipment and materials – carried at market

 

 

105 

 

 

105 

Total inventory

 

$

656 

 

$

541 



Full Cost Method Of Accounting

Full Cost Method of Accounting



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 in unevaluated properties as of March 31, 2018 and December 31, 2017.  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.

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 sales of oil and gas production and within 60 days of sales of produced electricity, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied first 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 March 31, 2018 and December 31, 2017.



The following table sets forth information concerning the Company’s accounts receivable (in thousands):







 

 

 

 

 

 



 

 

 

 

 

 



 

March 31,

 

December 31,



 

2018

 

2017

Revenue

 

$

519 

 

$

479 

Joint interest

 

 

23 

 

 

23 

Other

 

 

22 

 

 

29 

Allowance for doubtful accounts

 

 

(14)

 

 

(14)

Total accounts receivable

 

$

550 

 

$

517 

 

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)
3 Months Ended
Mar. 31, 2018
Description Of Business And Significant Accounting Policies [Abstract]  
Disaggregation Of Revenue



 

 

 



Three Months Ended



March 31, 2018

 

March 31, 2017

Revenues (in thousands):

 

 

 

     Crude oil

$1,357 

 

$1,203 

     Salt water disposal fees

10 

 



 

 

 

     Total

$1,367 

 

$1,209 



Inventory



 

 

 

 

 

 



 

 

 

 

 

 



 

March 31,

 

December 31,



 

2018

 

2017

Oil – carried at cost

 

$

551 

 

$

436 

Equipment and materials – carried at market

 

 

105 

 

 

105 

Total inventory

 

$

656 

 

$

541 



Accounts Receivable



 

 

 

 

 

 



 

 

 

 

 

 



 

March 31,

 

December 31,



 

2018

 

2017

Revenue

 

$

519 

 

$

479 

Joint interest

 

 

23 

 

 

23 

Other

 

 

22 

 

 

29 

Allowance for doubtful accounts

 

 

(14)

 

 

(14)

Total accounts receivable

 

$

550 

 

$

517 




Description Of Business And Significant Accounting Policies (Narrative) (Details)
v3.8.0.1
Description Of Business And Significant Accounting Policies (Narrative) (Details) - USD ($)
1 Months Ended 3 Months Ended
Jan. 26, 2018
Jan. 31, 2018
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Description Of Business And Significant Accounting Policies [Abstract]          
Material natural gas imbalances     $ 0   $ 0
Unevaluated properties     0   $ 0
Impairment      
Sale of methane facility assets $ 2,650,000 $ 2,650,000      

Description Of Business And Significant Accounting Policies (Disaggregation Of Revenue) (Details)
v3.8.0.1
Description Of Business And Significant Accounting Policies (Disaggregation Of Revenue) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Disaggregation of Revenue [Line Items]    
Revenues $ 1,367 $ 1,209
Crude Oil [Member]    
Disaggregation of Revenue [Line Items]    
Revenues 1,357 1,203
Salt Water Disposal Fees [Member]    
Disaggregation of Revenue [Line Items]    
Revenues $ 10 $ 6

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
Mar. 31, 2018
Dec. 31, 2017
Description Of Business And Significant Accounting Policies [Abstract]    
Oil - carried at cost $ 551 $ 436
Equipment and materials - carried at market 105 105
Total inventory $ 656 $ 541

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
Mar. 31, 2018
Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Allowance for doubtful accounts $ (14) $ (14)
Total accounts receivable 550 517
Revenue [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable 519 479
Joint Interest [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable 23 23
Other [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable $ 22 $ 29

Liquidity
v3.8.0.1
Liquidity
3 Months Ended
Mar. 31, 2018
Liquidity [Abstract]  
Liquidity

(2) Liquidity



The Company incurred a net loss of approximately $574,000 in 2017.  In January 2018, the Company sold its methane facility for $2.65 million.  During 2018, the Company believes its revenues as well as the proceeds received from the sale of the methane facility will be sufficient to fund operating and general and administrative expenses and to remain in compliance with its bank covenants.  If revenues and the proceeds from the sale of the methane facility are not sufficient to fund these expenses or if the Company needs additional funds for capital spending, the Company could borrow funds against the credit facility as this facility currently has a $2.0 million borrowing base with no funds currently drawn.  In addition, if required, the Company could also issue additional shares of stock and/or sell assets as needed to further fund operations.


Liquidity (Narrative) (Details)
v3.8.0.1
Liquidity (Narrative) (Details) - USD ($)
1 Months Ended 3 Months Ended 12 Months Ended
Jan. 26, 2018
Jan. 31, 2018
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Liquidity [Line Items]          
Net loss from operations     $ 1,243,000 $ (213,000) $ (574,000)
Sale of methane facility assets $ 2,650,000 $ 2,650,000      
Prosperity Bank [Member]          
Liquidity [Line Items]          
Credit facility current borrowing capacity     2,000,000    
Current funds drawn     $ 0    

Income Taxes
v3.8.0.1
Income Taxes
3 Months Ended
Mar. 31, 2018
Income Taxes [Abstract]  
Income Taxes

(3)  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.



The deferred income tax assets or liabilities for an oil and gas exploration and development company are dependent on many variables such as estimates of the economic lives of depleting oil and gas reserves and commodity prices.  Accordingly, the asset or liability is subject to continuous recalculation, and revision of the numerous estimates required, and may change significantly in the event of occurrences such as major acquisitions, divestitures, commodity price changes, changes in reserve estimates, changes in reserve lives, and changes in tax rates or tax laws.



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 March 31, 2018 and December 31, 2017.  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 March 31, 2018 and December 31, 2017 primarily due to cumulative losses incurred during the 3 years ended December 31, 2017.  The Company expects to utilize its net operating losses and reduce its valuation allowance to offset taxable income resulting from the sale of the methane facility assets. There were no recorded unrecognized tax benefits at March 31, 2018. 

 


Income Taxes (Narrative) (Details)
v3.8.0.1
Income Taxes (Narrative) (Details) - USD ($)
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Income Taxes [Line Items]      
Provision or benefit for income taxes  
Unrecognized tax benefits 0    
Federal net operating loss carryforwards     $ 30,200,000
Deferred tax asset $ 242,000   $ 242,000
Minimum [Member]      
Income Taxes [Line Items]      
Federal net operating loss carryforwards expiration between, years Dec. 31, 2019    
Maximum [Member]      
Income Taxes [Line Items]      
Federal net operating loss carryforwards expiration between, years Dec. 31, 2036    

Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details)
v3.8.0.1
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($)
Mar. 31, 2018
Dec. 31, 2017
Income Taxes [Abstract]    
Net deferred tax asset $ 242,000 $ 242,000

Capital Stock
v3.8.0.1
Capital Stock
3 Months Ended
Mar. 31, 2018
Capital Stock [Abstract]  
Capital Stock

(4) Capital Stock

Common Stock

On January 2, 2018, 4,569 common shares were issued in the aggregate to the Company’s four directors and CFO and interim CEO.



Rights Agreement

Effective March 17, 2017 the Board of Directors declared a dividend of one right (a “Right”) for each of the Company’s issued and outstanding shares of common stock, $0.001 par value per share (“Common Stock”). The dividend was paid to the stockholders of record at the close of business on March 27, 2017 (the “Record Date”). Each Right entitles the registered holder, subject to the terms of the Rights Agreement dated as of March 16, 2017 (the “Rights Agreement”) between the Company and the Rights Agent, Continental Stock Transfer & Trust Company, to purchase from the Company one one-thousandth of a share of the Company’s Series A Preferred Stock at a price of $1.10 (the “Exercise Price”), subject to certain adjustments.

The purpose of the Rights Agreement is to reduce the risk that the Company’s ability to use its net operating losses to reduce potential future federal income tax obligations would be limited by reason of the Company’s experiencing an “ownership change,” as defined in Section 382 of the Internal Revenue Code. A company generally experiences an ownership change if the percentage of its stock owned by its “5-percent shareholders,” as defined in Section 382 of the Tax Code, increases by more than 50 percentage points over a rolling three-year period. The Rights Agreement is designed to reduce the likelihood that the Company will experience an ownership change under Section 382 of the Tax Code by discouraging any person or group from becoming a 4.95% shareholder and also discouraging any existing 4.95% (or more) shareholder from acquiring additional shares of the Company’s stock.

The Rights will not be exercisable until the “Distribution Date”, which is generally defined as the earlier to occur of:(i) a public announcement or filing that a person or group has, become an “Acquiring Person” which is defined as a person or group of affiliated or associated persons or persons acting in concert who, at any time after the date of the Rights Agreement, have acquired, or obtained the right to acquire, beneficial ownership of 4.95% or more of the Company’s outstanding shares of Common Stock; or a person or group currently owning 4.95% (or more) of the Company’s outstanding shares acquires additional shares of the Company’s stock; subject to certain exceptions; or (ii) the commencement of, or announcement of an intention to commence, a tender offer or exchange offer the consummation of which would result in any person becoming an Acquiring Person. 

The Rights will expire prior to the earlier of March 16, 2020; or a date the Board of Directors determines by resolution in its business judgment that the Agreement is no longer necessary or appropriate; or in certain other specified circumstances.

At any time after any person or group of affiliated or associated persons becomes an Acquiring Person, the Board, at its option, may exchange each Right (other than Rights owned by such person or group of affiliated or associated persons which will have become void), in whole or in part, at an exchange ratio of two shares of Common Stock per outstanding Right (subject to adjustment).

For further information on the Rights Agreement, please refer to the Rights Agreement that was attached in full as an exhibit to the Company’s Form 8-K filed with SEC on March 17, 2017.



Preferred Stock

Series A Preferred Stock has a par value of $0.0001 and 10,000 shares have been designated.  No shares of Series A Preferred Stock have been issued by the Company pursuant to the Rights Agreement described above or otherwise.


Capital Stock (Narrative) (Details)
v3.8.0.1
Capital Stock (Narrative) (Details)
3 Months Ended
Jan. 02, 2018
item
shares
Mar. 17, 2017
$ / shares
Mar. 31, 2018
$ / shares
shares
Dec. 31, 2017
$ / shares
shares
Mar. 16, 2017
$ / shares
Capital Stock [Line Items]          
Common stock, par value | $ / shares     $ 0.001 $ 0.001  
Preferred stock, shares authorized     25,000,000 25,000,000  
Dividends conversion ratio     0.001    
Exercise price | $ / shares         $ 1.10
Rights Plan [Member]          
Capital Stock [Line Items]          
Number of preferred share purchase right for each outstanding share of its common stock to shareholder | $ / shares   $ 1      
Common stock, Threshold for exercise of rights percentage   4.95%      
Rights [Member]          
Capital Stock [Line Items]          
Date declared     Mar. 17, 2017    
Date to be paid     Mar. 27, 2017    
Date of record     Mar. 16, 2017    
Directors, CFO And Interim CEO [Member]          
Capital Stock [Line Items]          
Common stock, New shares issued 4,569        
Number of directors | item 4        
Series A Preferred Stock [Member]          
Capital Stock [Line Items]          
Preferred stock, shares authorized     10,000 10,000  
Preferred stock, shares issued     0 0  
Series A Preferred Stock [Member] | Rights Plan [Member]          
Capital Stock [Line Items]          
Preferred stock, shares issued     0    

Earnings Per Common Share
v3.8.0.1
Earnings Per Common Share
3 Months Ended
Mar. 31, 2018
Earnings Per Common Share [Abstract]  
Earnings Per Common Share

(5)  Earnings per Common Share



We report 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 our basic and diluted earnings per share, (in thousands except for share and per share amounts):







 

 

 

 

 

 



 

 

 

 

 

 



 

For the Three Months Ended



 

March 31,



 

2018

 

2017

Income (numerator):

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

133 

 

$

(170)

Net income (loss) from discontinued operations

 

$

1,110 

 

$

(43)

Weighted average shares (denominator):

 

 

 

 

 

 

Weighted average shares – basic

 

 

10,624,442 

 

 

8,452,132 

Dilution effect of share-based compensation, treasury method

 

 

 —

 

 

 —

Weighted average shares – dilutive

 

 

10,624,442 

 

 

8,452,132 

Income (loss) per share – Basic and Dilutive:

 

 

 

 

 

 

Continuing operations

 

$

0.01 

 

$

(0.02)

Discontinued operations

 

$

0.10 

 

$

(0.01)





Options issued to the Company’s directors in which the exercise price was higher than the average market price each quarter were excluded from diluted shares.


Earnings Per Common Share (Tables)
v3.8.0.1
Earnings Per Common Share (Tables)
3 Months Ended
Mar. 31, 2018
Earnings Per Common Share [Abstract]  
Reconciliations Of The Numerators And Denominators On Basic And Diluted Earnings Per Share



 

 

 

 

 

 



 

 

 

 

 

 



 

For the Three Months Ended



 

March 31,



 

2018

 

2017

Income (numerator):

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

133 

 

$

(170)

Net income (loss) from discontinued operations

 

$

1,110 

 

$

(43)

Weighted average shares (denominator):

 

 

 

 

 

 

Weighted average shares – basic

 

 

10,624,442 

 

 

8,452,132 

Dilution effect of share-based compensation, treasury method

 

 

 —

 

 

 —

Weighted average shares – dilutive

 

 

10,624,442 

 

 

8,452,132 

Income (loss) per share – Basic and Dilutive:

 

 

 

 

 

 

Continuing operations

 

$

0.01 

 

$

(0.02)

Discontinued operations

 

$

0.10 

 

$

(0.01)




Earnings Per Common Share (Reconciliations Of The Numerators And Denominators Of Basic And Diluted Earnings Per Share) (Details)
v3.8.0.1
Earnings Per Common Share (Reconciliations Of The Numerators And Denominators Of Basic And Diluted Earnings Per Share) (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Earnings Per Common Share [Abstract]    
Net income (loss) from continuing operations $ 133 $ (170)
Net income (loss) from discontinued operations $ 1,110 $ (43)
Weighted average shares - basic 10,624,442 8,452,132
Dilution effect of share-based compensation, treasury method
Weighted average shares - dilutive 10,624,442 8,452,132
Continuing operations $ 0.01 $ (0.02)
Discontinued operations $ 0.10 $ (0.01)

Recent Accounting Pronouncements
v3.8.0.1
Recent Accounting Pronouncements
3 Months Ended
Mar. 31, 2018
Recent Accounting Pronouncements [Abstract]  
Recent Accounting Pronouncements

(6)  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. 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.  The Company implemented ASU 2014-09 as of January 1, 2018 using the modified retrospective approach with no impact on the Company’s operating results or cash flows.



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 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 implemented this in 2018 with no impact on the Company’s operating results or cash flows.



 


Related Party Transactions
v3.8.0.1
Related Party Transactions
3 Months Ended
Mar. 31, 2018
Related Party Transactions [Abstract]  
Related Party Transactions

(7) 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 2018 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 the sale of the Methane Project and other related assets in 2018.  The Company sold all of the Methane Project and all its other methane facility assets, except the applicable U.S. patent, on January 26, 2018. 



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 March 31, 2018 and December 31, 2017 in the amount of $159,000.  The Company has recorded the Hoactzin-related payables and the corresponding receivable from Hoactzin as of March 31, 2018 and December 31, 2017 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 March 31, 2018 and December 31, 2017.  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 March 31, 2018 and December 31, 2017.

 


Related Party Transactions (Narrative) (Details)
v3.8.0.1
Related Party Transactions (Narrative) (Details) - USD ($)
3 Months Ended 108 Months Ended
Dec. 18, 2007
Mar. 31, 2018
Mar. 31, 2018
Dec. 31, 2017
Related Party Transaction [Line Items]        
Working interest percent 15.00%      
Related party allowance for doubtful accounts receivable   $ 14,000 $ 14,000 $ 14,000
Accounts receivable - related parties balance  
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
Past due related parties accounts payable   159,000 159,000  
Hoactzin Partners, L.P. [Member] | Methane Project [Member]        
Related Party Transaction [Line Items]        
Net profits     0  
Related Party [Member]        
Related Party Transaction [Line Items]        
Related party allowance for doubtful accounts receivable   159,000 159,000 159,000
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
Accounts receivable - related parties balance   $ 159,000 $ 159,000 $ 0

Oil And Gas Properties
v3.8.0.1
Oil And Gas Properties
3 Months Ended
Mar. 31, 2018
Oil And Gas Properties [Abstract]  
Oil And Gas Properties

(8)  Oil and Gas Properties



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







 

 

 

 

 

 



 

 

 

 

 

 



 

March 31,

 

December 31,



 

2018

 

2017

Oil and gas properties

 

$

5,733 

 

$

5,704 

Unevaluated properties

 

 

 —

 

 

 —

Accumulated depreciation, depletion, and amortization

 

 

(1,163)

 

 

(984)

Oil and gas properties

 

$

4,570 

 

$

4,720 



The Company recorded depletion expense of $172,000 and $204,000 for the three months ended March 31, 2018 and 2017, respectively.  During the three months ended March 31, 2018 and 2017, the Company also recorded in “Accumulated depreciation, depletion, and amortization” a $7,000 gain on asset retirement obligations and a $1,000 gain on asset retirement obligations, respectively.

 


Oil And Gas Properties (Tables)
v3.8.0.1
Oil And Gas Properties (Tables)
3 Months Ended
Mar. 31, 2018
Oil And Gas Properties [Abstract]  
Schedule Of Oil And Gas Properties



 

 

 

 

 

 



 

 

 

 

 

 



 

March 31,

 

December 31,



 

2018

 

2017

Oil and gas properties

 

$

5,733 

 

$

5,704 

Unevaluated properties

 

 

 —

 

 

 —

Accumulated depreciation, depletion, and amortization

 

 

(1,163)

 

 

(984)

Oil and gas properties

 

$

4,570 

 

$

4,720 




Oil And Gas Properties (Narrative) (Details)
v3.8.0.1
Oil And Gas Properties (Narrative) (Details) - USD ($)
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Oil And Gas Properties [Abstract]    
Depletion expense $ 172,000 $ 204,000
Impairment
Gain on asset retirement obligations $ 7,000 $ 1,000

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
Mar. 31, 2018
Dec. 31, 2017
Oil And Gas Properties [Abstract]    
Oil and gas properties $ 5,733 $ 5,704
Accumulated depreciation, depletion, and amortization (1,163) (984)
Oil and gas properties $ 4,570 $ 4,720

Asset Retirement Obligation
v3.8.0.1
Asset Retirement Obligation
3 Months Ended
Mar. 31, 2018
Asset Retirement Obligation [Abstract]  
Asset Retirement Obligation

(9)  Asset Retirement Obligation



Our asset retirement obligations represent the estimated present value of the amount we will incur to plug, abandon, and remediate our producing properties at the end of their productive lives in accordance with applicable laws. The following table summarizes the Company’s Asset Retirement Obligation transactions for the three months ended March 31, 2018 (in thousands):







 

 

 



 

 

 

Balance December 31, 2017

 

$

2,270 

Accretion expense

 

 

36 

Liabilities incurred

 

 

 —

Liabilities settled

 

 

(14)

Balance March 31, 2018

 

$

2,292 

 


Asset Retirement Obligation (Tables)
v3.8.0.1
Asset Retirement Obligation (Tables)
3 Months Ended
Mar. 31, 2018
Asset Retirement Obligation [Abstract]  
Asset Retirement Obligation Transactions



 

 

 



 

 

 

Balance December 31, 2017

 

$

2,270 

Accretion expense

 

 

36 

Liabilities incurred

 

 

 —

Liabilities settled

 

 

(14)

Balance March 31, 2018

 

$

2,292 




Asset Retirement Obligation (Asset Retirement Obligation Transactions) (Details)
v3.8.0.1
Asset Retirement Obligation (Asset Retirement Obligation Transactions) (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Asset Retirement Obligation [Abstract]    
Balance $ 2,270  
Accretion expense 36 $ 36
Liabilities incurred  
Liabilities settled (14)  
Balance $ 2,292  

Long-Term Debt
v3.8.0.1
Long-Term Debt
3 Months Ended
Mar. 31, 2018
Long-Term Debt [Abstract]  
Long-Term Debt

(10)  Long-Term Debt



Long-term debt to unrelated entities consisted of the following (in thousands):







 

 

 

 

 

 



 

 

 

 

 

 



 

March 31,

 

December 31,



 

2018

 

2017

Note payable to a financial institution, with interest only payment until maturity

 

$

 —

 

$

 —

Installment notes bearing interest at the rate of 4.16% to 4.60% per annum collateralized by vehicles with monthly payments including interest, insurance and maintenance of approximately $10

 

 

159 

 

 

90 

Total debt

 

 

159 

 

 

90 

Less current maturities

 

 

(56)

 

 

(41)

Long-term debt, less current maturities

 

$

103 

 

$

49 





At March 31, 2018, the Company had a revolving credit facility with Prosperity Bank.  This has historically been the Company’s primary source to fund working capital and future capital spending.  Under the credit facility, loans and letters of credit are available to the Company on a revolving basis in an amount outstanding not to exceed the lesser of $50 million or the Company’s borrowing base in effect from time to time. As of March 31, 2018, the Company’s borrowing base was $2 million.  The credit facility is secured by substantially all of the Company’s producing and non-producing oil and gas properties.  The credit facility includes certain covenants with which the Company is required to comply.  At March 31, 2018, these covenants include the following: (a) Current Ratio > 1:1; (b) Funded Debt to EBITDA < 3.5x; and (c) Interest Coverage > 3.0x.  At March 31, 2018, the interest rate on this credit facility was 5.25%.  The Company was in compliance with all covenants during the quarter ended March 31, 2018.



On March 21, 2018, the Company’s senior credit facility with Prosperity Bank after Prosperity Bank’s most recent review of the Company’s currently owned producing properties was amended to increase the borrowing base to $2 million and the maturity date was extended to July 31, 2020.  The borrowing base remains subject to the existing periodic redetermination provisions in the credit facility. The interest rate remained prime plus 0.50% per annum.  This rate was 5.00% at the date of the amendment.  The maximum line of credit of the Company under the Prosperity Bank credit facility remained $50 million and the Company had no outstanding borrowing under the facility as of March 31, 2018.  The next borrowing base review will take place in July 2018.

 


Long-Term Debt (Tables)
v3.8.0.1
Long-Term Debt (Tables)
3 Months Ended
Mar. 31, 2018
Long-Term Debt [Abstract]  
Schedule Of Long-term Debt To Unrelated Entites



 

 

 

 

 

 



 

 

 

 

 

 



 

March 31,

 

December 31,



 

2018

 

2017

Note payable to a financial institution, with interest only payment until maturity

 

$

 —

 

$

 —

Installment notes bearing interest at the rate of 4.16% to 4.60% per annum collateralized by vehicles with monthly payments including interest, insurance and maintenance of approximately $10

 

 

159 

 

 

90 

Total debt

 

 

159 

 

 

90 

Less current maturities

 

 

(56)

 

 

(41)

Long-term debt, less current maturities

 

$

103 

 

$

49