Document And Entity Information
v3.19.3
Document And Entity Information - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Mar. 23, 2020
Jun. 28, 2019
Document And Entity Information [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Fiscal Year Focus 2019    
Document Period End Date Dec. 31, 2019    
Document Transition Report false    
Entity File Number 1-15555    
Entity Registrant Name TENGASCO INC    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 87-0267438    
Entity Address, Address Line One 8000 E. Maplewood Ave.    
Entity Address, Address Line Two Suite 130    
Entity Address, City or Town Greenwood Village    
Entity Address, State or Province CO    
Entity Address, Postal Zip Code 80111    
City Area Code 720    
Local Phone Number 420-4460    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Amendment Flag false    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001001614    
Entity Filer Category Non-accelerated Filer    
Current Fiscal Year End Date --12-31    
Entity Small Business true    
Entity Emerging Growth Company false    
Entity Shell Company false    
Title of 12(b) Security Common Stock    
Trading Symbol tgc    
Security Exchange Name NYSE    
Entity Public Float     $ 4.4
Entity Common Stock, Shares Outstanding   10,666,211  

Consolidated Balance Sheets
v3.19.3
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Current    
Cash and cash equivalents $ 3,055 $ 3,115
Accounts receivable 557 533
Inventory 415 464
Prepaid expenses 247 235
Other current assets 4  
Total current assets 4,278 4,347
Loan fees, net 4 9
Right of use asset - operating leases 41  
Oil and gas properties, net (full cost accounting method) 4,385 4,804
Other property and equipment, net 149 190
Accounts receivable - noncurrent 65 130
Other noncurrent assets   4
Total assets 8,922 9,484
Current liabilities    
Accounts payable - trade 269 132
Accrued liabilities 164 282
Lease liabilities - operating leases - current 41  
Lease liabilities - finance leases - current 61  
Current maturities of long-term debt   51
Asset retirement obligation - current 75 83
Total current liabilities 610 548
Lease liabilities - finance leases - noncurrent 41  
Long term debt, less current maturities   73
Asset retirement obligation - non current 1,923 2,096
Total liabilities 2,574 2,717
Commitments and contingencies (Note 9)
Preferred stock, 25,000,000 shares authorized:    
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, 10,658,775 and 10,639,290 shares issued and outstanding 11 11
Additional paid in capital 58,293 58,276
Accumulated deficit (51,956) (51,520)
Total stockholders' equity 6,348 6,767
Total liabilities and stockholders' equity $ 8,922 $ 9,484

Consolidated Balance Sheets (Parenthetical)
v3.19.3
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2019
Dec. 31, 2018
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 10,658,775 10,639,290
Common stock, shares outstanding 10,658,775 10,639,290
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
v3.19.3
Consolidated Statements Of Operations - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Revenues    
Revenues $ 4,911 $ 5,871
Cost and expenses    
Production costs and taxes 3,398 3,591
Depreciation, depletion, and amortization 716 795
General and administrative 1,302 1,245
Total cost and expenses 5,416 5,631
Net income (loss) from operations (505) 240
Other income (expense)    
Net interest expense (10) (5)
Gain on sale of assets 45 33
Other income 6 157
Total other income (expense) 41 185
Income (loss) from operations before income tax (464) 425
Deferred income tax benefit 28 17
Net income (loss) from continuing operations (436) 442
Net income from discontinued operations   1,127
Net income (loss) $ (436) $ 1,569
Net income (loss) per share - basic and fully diluted    
Continuing operations $ (0.04) $ 0.04
Discontinued operations   $ 0.11
Shares used in computing earnings per share    
Basic and fully diluted 10,651,342 10,628,170
Oil And Gas Properties [Member]    
Revenues    
Revenues $ 4,911 $ 5,871

Consolidated Statements of Stockholders' Equity
v3.19.3
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Common Stock [Member]
Paid-In Capital [Member]
Accumulated Deficit [Member]
Total
Balance, value at Dec. 31, 2017 $ 11 $ 58,253 $ (53,089) $ 5,175
Balance, shares at Dec. 31, 2017 10,619,924      
Net income (loss)     1,569 1,569
Compensation expense related to stock issued   23   $ 23
Compensation expense related to stock issued, shares 19,366      
Balance, shares at Dec. 31, 2018 10,639,290     10,639,290
Balance, value at Dec. 31, 2018 $ 11 58,276 (51,520) $ 6,767
Net income (loss)     (436) (436)
Compensation expense related to stock issued   17   $ 17
Compensation expense related to stock issued, shares 19,485      
Balance, shares at Dec. 31, 2019 10,658,775     10,658,775
Balance, value at Dec. 31, 2019 $ 11 $ 58,293 $ (51,956) $ 6,348

Consolidated Statements Of Cash Flows
v3.19.3
Consolidated Statements Of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Operating activities    
Net income (loss) from continuing operations $ (436,000) $ 442,000
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation, depletion, and amortization 716,000 795,000
Amortization of loan fees-interest expense 5,000 4,000
Accretion of asset retirement obligation 132,000 141,000
Gain on asset sales (45,000) (33,000)
Compensation and services paid in stock / stock options 17,000 23,000
Changes in assets and liabilities:    
Accounts receivable 41,000 96,000
Inventory, prepaid expense, and other assets (68,000) (28,000)
Accounts payable 63,000 (58,000)
Accrued liabilities (123,000) (64,000)
Settlement on asset retirement obligation (76,000) (25,000)
Net cash provided by operating activities - continuing operations 226,000 1,293,000
Net cash provided by operating activities - discontinued operations   44,000
Net cash provided by operating activities 226,000 1,337,000
Investing activities    
Additions to oil and gas properties (437,000) (1,011,000)
Proceeds from sale of oil and gas properties 56,000 7,000
Additions to other property and equipment (2,000) (27,000)
Proceeds from sale of other property and equipment 150,000 8,000
Net cash provided by investing activities - continuing operations (233,000) (1,023,000)
Net cash provided by investing activities - discontinued operations   2,658,000
Net cash provided by (used in) investing activities (233,000) 1,635,000
Financing activities    
Proceeds from borrowings   100,000
Repayment of borrowings (53,000) (142,000)
Net cash used in financing activities - continuing operations (53,000) (42,000)
Net cash used in financing activities (53,000) (42,000)
Net change in cash and cash equivalents (60,000) 2,930,000
Cash and cash equivalents, beginning of period 3,115,000 185,000
Cash and cash equivalents, end of period 3,055,000 3,115,000
Supplemental cash flow information:    
Cash interest payments 5,000  
Supplemental non-cash investing and financing activities:    
Financed company vehicles 57,000 136,000
Asset retirement obligations incurred 12,000 7,000
Revisions to asset retirement obligations (187,000) (198,000)
Capital expenditures included in accounts payable and accrued liabilities $ 88,000 $ 9,000

Description Of Business And Significant Accounting Policies
v3.19.3
Description Of Business And Significant Accounting Policies
12 Months Ended
Dec. 31, 2019
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.  (See Note 5. Discontinued Operations)



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



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 and request them to pick up the crude oil from 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 represent 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 reported 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 and generation assets on January 26, 2018 and therefore will not recognize revenues associated with any sales volumes after that date.  Revenues associated with the methane facility are included in Discontinued Operations. (See Note 5. 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 years ended December 31, 2019 and 2018 (in thousands):  









 

 

 

 

 

 



 

 

 

 

 

 



 

Year ended December 31,



 

2019

 

2018



 

 

 

 

 

 

Crude oil

 

$

4,884 

 

 

5,840 

Saltwater disposal fees

 

 

27 

 

 

31 

Total

 

$

4,911 

 

$

5,871 













There were no natural gas imbalances at December 31, 2019 or 2018. 

.



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, 2019 and December 31, 2018.  During 2019 and 2018, the Company included production costs and taxes in its calculation of estimated cost.  The market component is calculated using the average December 2019 and December 2018 oil sales price for the Company’s Kansas properties.  At December 31, 2018, 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.  In January 2019, the Company sold its equipment inventory for $150,000 and recorded a gain on the sale of the in the amount of $45,000.  At December 31, 2019 and December 31, 2018, inventory consisted of the following (in thousands):







 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2019

 

2018

Oil – carried at cost

 

$

415 

 

$

359 

Equipment and materials – carried at market

 

 

 —

 

 

105 

Total inventory

 

$

415 

 

$

464 



 

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 in unevaluated properties as of both December 31, 2019 and 2018.  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.  The Company performed its ceiling tests during 2019 and 2018, resulting in no impairments of its oil and gas properties.



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.  (See Note 5. Discontinued Operations)



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 $17,000 in 2019 and $23,000 in 2018.



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. No allowance was recorded at December 31, 2019 and 2018.  At December 31, 2019 and 2018, accounts receivable consisted of the following (in thousands):

 





 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2019

 

2018

Revenue

 

$

415 

 

$

396 

Tax

 

 

65 

 

 

129 

Joint interest

 

 

77 

 

 

Accounts receivable - current

 

$

557 

 

$

533 



 

 

 

 

 

 

Tax - noncurrent

 

$

65 

 

$

130 



At December 31, 2019 and December 31, 2018, the Company recorded a tax related non-current receivable in the amount of $65,000 and $130,000, respectively.  (See Note 13. 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.

 

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 results of operations.



Revenue from the top two purchasers accounted for 87.7% and 11.8% of total revenues for year ended December 31, 2019.  Revenue from the top two purchasers accounted for 85.6% and 13.8% of total revenues for year ended December 31, 2018.  As of December 31, 2019 and 2018, two of the Company’s oil purchasers accounted for 86.0% and 93.2%, respectively of accounts receivable, of which one oil purchaser accounted for 76.9% and 84.4%, respectively.



The amounts above exclude revenues and accounts receivable associated with Discontinued Operations.  (see Note 5. Discontinued Operations)



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,



 

2019

 

2018

Income (numerator):

 

  

 

 

  

 

Net income (loss) from continuing operations

 

$

(436)

 

$

442 

Net income from discontinued operations

 

 

 —

 

 

1,127 

Weighted average shares (denominator):

 

 

 

 

 

 

Weighted average shares - basic

 

 

10,651,342 

 

 

10,628,170 

Dilution effect of share-based compensation, treasury method

 

 

 —

 

 

 —

Weighted average shares - dilutive

 

 

10,651,342 

 

 

10,628,170 

Income (loss) per share – Basic and Dilutive:

 

 

 

 

 

 

Continuing operations

 

$

(0.04)

 

$

0.04 

Discontinued operations

 

$

 —

 

$

0.11 



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 (See Note 12. Stock and Stock Options).  In addition, the shares that would be issued to employees and Company directors have also been excluded from this calculation.  (See Note 9. Commitments and Contingencies)



Fair Value of Financial Instruments



The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payables, accrued liabilities, lease liabilities, and long-term debt approximates fair value as of December 31, 2019 and 2018.



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, 2019 and 2018, 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)
v3.19.3
Description Of Business And Significant Accounting Policies (Policy)
12 Months Ended
Dec. 31, 2019
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



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 and request them to pick up the crude oil from 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 represent 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 reported 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 and generation assets on January 26, 2018 and therefore will not recognize revenues associated with any sales volumes after that date.  Revenues associated with the methane facility are included in Discontinued Operations. (See Note 5. 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 years ended December 31, 2019 and 2018 (in thousands):  









 

 

 

 

 

 



 

 

 

 

 

 



 

Year ended December 31,



 

2019

 

2018



 

 

 

 

 

 

Crude oil

 

$

4,884 

 

 

5,840 

Saltwater disposal fees

 

 

27 

 

 

31 

Total

 

$

4,911 

 

$

5,871 













There were no natural gas imbalances at December 31, 2019 or 2018. 

.

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, 2019 and December 31, 2018.  During 2019 and 2018, the Company included production costs and taxes in its calculation of estimated cost.  The market component is calculated using the average December 2019 and December 2018 oil sales price for the Company’s Kansas properties.  At December 31, 2018, 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.  In January 2019, the Company sold its equipment inventory for $150,000 and recorded a gain on the sale of the in the amount of $45,000.  At December 31, 2019 and December 31, 2018, inventory consisted of the following (in thousands):







 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2019

 

2018

Oil – carried at cost

 

$

415 

 

$

359 

Equipment and materials – carried at market

 

 

 —

 

 

105 

Total inventory

 

$

415 

 

$

464 



 

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 in unevaluated properties as of both December 31, 2019 and 2018.  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.  The Company performed its ceiling tests during 2019 and 2018, resulting in no impairments of its oil and gas properties.

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.  (See Note 5. Discontinued Operations)

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 $17,000 in 2019 and $23,000 in 2018.

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. No allowance was recorded at December 31, 2019 and 2018.  At December 31, 2019 and 2018, accounts receivable consisted of the following (in thousands):

 





 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2019

 

2018

Revenue

 

$

415 

 

$

396 

Tax

 

 

65 

 

 

129 

Joint interest

 

 

77 

 

 

Accounts receivable - current

 

$

557 

 

$

533 



 

 

 

 

 

 

Tax - noncurrent

 

$

65 

 

$

130 



At December 31, 2019 and December 31, 2018, the Company recorded a tax related non-current receivable in the amount of $65,000 and $130,000, respectively.  (See Note 13. Income Taxes) 



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.

 

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 results of operations.



Revenue from the top two purchasers accounted for 87.7% and 11.8% of total revenues for year ended December 31, 2019.  Revenue from the top two purchasers accounted for 85.6% and 13.8% of total revenues for year ended December 31, 2018.  As of December 31, 2019 and 2018, two of the Company’s oil purchasers accounted for 86.0% and 93.2%, respectively of accounts receivable, of which one oil purchaser accounted for 76.9% and 84.4%, respectively.



The amounts above exclude revenues and accounts receivable associated with Discontinued Operations.  (see Note 5. Discontinued Operations)

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,



 

2019

 

2018

Income (numerator):

 

  

 

 

  

 

Net income (loss) from continuing operations

 

$

(436)

 

$

442 

Net income from discontinued operations

 

 

 —

 

 

1,127 

Weighted average shares (denominator):

 

 

 

 

 

 

Weighted average shares - basic

 

 

10,651,342 

 

 

10,628,170 

Dilution effect of share-based compensation, treasury method

 

 

 —

 

 

 —

Weighted average shares - dilutive

 

 

10,651,342 

 

 

10,628,170 

Income (loss) per share – Basic and Dilutive:

 

 

 

 

 

 

Continuing operations

 

$

(0.04)

 

$

0.04 

Discontinued operations

 

$

 —

 

$

0.11 



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 (See Note 12. Stock and Stock Options).  In addition, the shares that would be issued to employees and Company directors have also been excluded from this calculation.  (See Note 9. Commitments and Contingencies)

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, lease liabilities, and long-term debt approximates fair value as of December 31, 2019 and 2018.

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, 2019 and 2018, 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)
v3.19.3
Description Of Business And Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2019
Description Of Business And Significant Accounting Policies [Abstract]  
Disaggregation Of Revenue



 

 

 

 

 

 



 

 

 

 

 

 



 

Year ended December 31,



 

2019

 

2018



 

 

 

 

 

 

Crude oil

 

$

4,884 

 

 

5,840 

Saltwater disposal fees

 

 

27 

 

 

31 

Total

 

$

4,911 

 

$

5,871 



Inventory



 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2019

 

2018

Oil – carried at cost

 

$

415 

 

$

359 

Equipment and materials – carried at market

 

 

 —

 

 

105 

Total inventory

 

$

415 

 

$

464 



Accounts Receivable



 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2019

 

2018

Revenue

 

$

415 

 

$

396 

Tax

 

 

65 

 

 

129 

Joint interest

 

 

77 

 

 

Accounts receivable - current

 

$

557 

 

$

533 



 

 

 

 

 

 

Tax - noncurrent

 

$

65 

 

$

130 



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



 

 

 

 

 

 



 

 

 

 

 

 



 

For the years ended December 31,



 

2019

 

2018

Income (numerator):

 

  

 

 

  

 

Net income (loss) from continuing operations

 

$

(436)

 

$

442 

Net income from discontinued operations

 

 

 —

 

 

1,127 

Weighted average shares (denominator):

 

 

 

 

 

 

Weighted average shares - basic

 

 

10,651,342 

 

 

10,628,170 

Dilution effect of share-based compensation, treasury method

 

 

 —

 

 

 —

Weighted average shares - dilutive

 

 

10,651,342 

 

 

10,628,170 

Income (loss) per share – Basic and Dilutive:

 

 

 

 

 

 

Continuing operations

 

$

(0.04)

 

$

0.04 

Discontinued operations

 

$

 —

 

$

0.11 




Description Of Business And Significant Accounting Policies (Narrative) (Details)
v3.19.3
Description Of Business And Significant Accounting Policies (Narrative) (Details)
12 Months Ended
Dec. 31, 2019
USD ($)
customer
Dec. 31, 2018
USD ($)
Description Of Business And Significant Accounting Policies [Line Items]    
Unevaluated properties $ 0 $ 0
Current cost discount 10.00%  
Stock based compensation $ 17,000 23,000
Federal net operating loss carryforwards 33,800,000  
Deferred tax asset 65,000 130,000
Derivatives $ 0 0
Customers | customer 2  
Impairment $ 0 0
Accounts receivable - noncurrent 65,000 130,000
Gain on sale of assets 45,000 33,000
Inventory 415,000 464,000
Allowance for doubtful accounts 0 0
Revenue 4,911,000 5,871,000
Natural Gas Imbalances [Member]    
Description Of Business And Significant Accounting Policies [Line Items]    
Revenue $ 0 $ 0
Customer A [Member] | Revenue [Member]    
Description Of Business And Significant Accounting Policies [Line Items]    
Customer's percentage of risk 87.70% 85.60%
Customer B [Member] | Revenue [Member]    
Description Of Business And Significant Accounting Policies [Line Items]    
Customer's percentage of risk 11.80% 13.80%
Customer C [Member] | Accounts Receivable [Member]    
Description Of Business And Significant Accounting Policies [Line Items]    
Customer's percentage of risk 76.90% 84.40%
Two Customers [Member] | Accounts Receivable [Member]    
Description Of Business And Significant Accounting Policies [Line Items]    
Customer's percentage of risk 86.00% 93.20%
Equipment [Member]    
Description Of Business And Significant Accounting Policies [Line Items]    
Gain on sale of assets $ 45,000  
Proceeds from sale of equipment inventory $ 150,000  

Description Of Business And Significant Accounting Policies (Disaggregation Of Revenue) (Details)
v3.19.3
Description Of Business And Significant Accounting Policies (Disaggregation Of Revenue) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Disaggregation of Revenue [Line Items]    
Revenue $ 4,911 $ 5,871
Crude Oil [Member]    
Disaggregation of Revenue [Line Items]    
Revenue 4,884 5,840
Saltwater Disposal Fees [Member]    
Disaggregation of Revenue [Line Items]    
Revenue $ 27 $ 31

Description Of Business And Significant Accounting Policies (Inventory) (Details)
v3.19.3
Description Of Business And Significant Accounting Policies (Inventory) (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Description Of Business And Significant Accounting Policies [Abstract]    
Oil - carried at cost $ 415 $ 359
Equipment and materials - carried at market   105
Total inventory $ 415 $ 464

Description Of Business And Significant Accounting Policies (Accounts Receivable) (Details)
v3.19.3
Description Of Business And Significant Accounting Policies (Accounts Receivable) (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable - current $ 557 $ 533
Revenue [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable - current 415 396
Tax [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable - current 65 129
Accounts receivable - noncurrent 65 130
Joint Interest [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable - current $ 77 $ 8

Description Of Business And Significant Accounting Policies (Reconciliations Of The Numerators And Denominators On Basic And Diluted Earnings Per Share) (Details)
v3.19.3
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, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Earnings Per Common Share [Abstract]                    
Net income (loss) from continuing operations $ (167) $ (182) $ 9 $ (96) $ (88) $ 298 $ 99 $ 133 $ (436) $ 442
Net income from discontinued operations                   $ 1,127
Weighted average shares - basic                 10,651,342 10,628,170
Dilution effect of share-based compensation, treasury method                
Weighted average shares - dilutive                 10,651,342 10,628,170
Continuing operations                 $ (0.04) $ 0.04
Discontinued operations                   $ 0.11

Recent Accounting Pronouncements
v3.19.3
Recent Accounting Pronouncements
12 Months Ended
Dec. 31, 2019
Recent Accounting Pronouncements [Abstract]  
Recent Accounting Pronouncements

2. Recent Accounting Pronouncements



In February 2016, the FASB issued ASU 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 was permitted for all entities.  The Company has identified each of its leases and determined the impact of this new guidance on each of the identified leases.  The Company implemented ASU 2016-02 Leases (Topic 842) as of January 1, 2019 using the modified retrospective approach.  As a result of this implementation, the Company recorded right-of-use assets and liabilities associated with operating leases of approximately $98,000.  There was no transition adjustment related to finance leases.



The Company elected the package of practical expedients within ASU 2016-02 Leases (Topic 842) that allows an entity to not reassess, prior to the effective date, (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification of any expired or existing leases, or (iii) initial direct costs for any existing leases.  Additionally, the Company elected the practical expedient to not evaluate existing or expired land easements not previously accounted for as leases prior to the effective date.  The Company also made an account policy election not to apply the lease recognition requirements to leases with an initial term of 12 months or less.

 


Recent Accounting Pronouncements (Narrative) (Details)
v3.19.3
Recent Accounting Pronouncements (Narrative) (Details) - USD ($)
Dec. 31, 2019
Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Operating lease, Right-of-use asset $ 41,000  
Accounting Standards Update 2016-02 [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Operating lease, Right-of-use asset   $ 98,000
Finance Lease, Right-of-Use Asset   $ 0

Related Party Transactions
v3.19.3
Related Party Transactions
12 Months Ended
Dec. 31, 2019
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 took 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 January 26, 2018, the date the Company sold the Methane Project to a third party, for payment to Hoactzin under the net profits interest.  In addition, during Company during the 4th quarter of 2018, the Company acquired all of Hoactzin’s working interest in the drilling program wells for $134,690.



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 by Hoactzin in late 2009 and 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 in the amount of $159,000.  The Company had recorded the Hoactzin-related payables and the corresponding receivable from Hoactzin as of December 31, 2017 in its Consolidated Balance Sheets under “Accounts payable – other” and “Accounts receivable – related party”.  However, Hoactzin had 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 had elected to establish an allowance in the amount of $159,000 for the balances outstanding at December 31, 2017.  This allowance was recorded in the Company’s Consolidated Balance Sheets under “Accounts receivable – related party”.  At year-end 2018, the Company had determined that the outstanding balances under these vendor contracts for services or materials provided in 2009 and 2010 were not recoverable against the Company by operation of applicable statutes of limitation or prescription, and consequently, the associated accounts payable and accounts receivable amounts had been removed from the Company’s balance sheet at December 31, 2018.  This removal resulted in the Company recording other income in 2018 in the amount of $159,000




Related Party Transactions (Narrative) (Details)
v3.19.3
Related Party Transactions (Narrative) (Details) - USD ($)
3 Months Ended 12 Months Ended 106 Months Ended
Dec. 18, 2007
Dec. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Jan. 26, 2018
Related Party Transaction [Line Items]          
Working interest percent 15.00%        
Other income     $ 159,000    
Payments to acquire interest in the drilling program wells   $ 134,690      
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  
Past due related parties accounts payable       159,000  
Accounts receivable-related party, allowance for doubtful accounts       $ 159,000  
Hoactzin Partners, L.P. [Member] | Methane Project [Member]          
Related Party Transaction [Line Items]          
Net profits         $ 0

Oil And Gas Properties
v3.19.3
Oil And Gas Properties
12 Months Ended
Dec. 31, 2019
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,



 

2019

 

2018

Oil and gas properties

 

$

6,751 

 

$

6,503 

Unevaluated properties

 

 

 —

 

 

23 

Accumulated depreciation, depletion and amortization

 

 

(2,366)

 

 

(1,722)

Oil and gas properties, net

 

$

4,385 

 

$

4,804 



During the years ended December 31, 2019 and 2018, the Company recorded depletion expense of $637,000 and $722,000, respectively.

 


Oil And Gas Properties (Tables)
v3.19.3
Oil And Gas Properties (Tables)
12 Months Ended
Dec. 31, 2019
Oil And Gas Properties [Abstract]  
Schedule Of Oil And Gas Properties



 

 

 

 

 

 



 

 

 

 

 

 



 

December 31,



 

2019

 

2018

Oil and gas properties

 

$

6,751 

 

$

6,503 

Unevaluated properties

 

 

 —

 

 

23 

Accumulated depreciation, depletion and amortization

 

 

(2,366)

 

 

(1,722)

Oil and gas properties, net

 

$

4,385 

 

$

4,804 




Oil And Gas Properties (Narrative) (Details)
v3.19.3
Oil And Gas Properties (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Oil And Gas Properties [Abstract]    
Depletion expense $ 637,000 $ 722,000

Oil And Gas Properties (Schedule Of Oil And Gas Properties) (Details)
v3.19.3
Oil And Gas Properties (Schedule Of Oil And Gas Properties) (Details) - USD ($)
$ in Thousands
Dec. 31, 2019
Dec. 31, 2018
Oil And Gas Properties [Abstract]    
Oil and gas properties $ 6,751 $ 6,503
Unevaluated properties   23
Accumulated depreciation, depletion and amortization (2,366) (1,722)
Oil and gas properties, net $ 4,385 $ 4,804

Discontinued Operations
v3.19.3
Discontinued Operations
12 Months Ended
Dec. 31, 2019
Discontinued Operations [Abstract]  
Discontinued Operations

5. Discontinued Operations

 

The following table sets forth information concerning Discontinued Operations: (in thousands):







 

 

 

 

 

 



 

 

 

 

 

 



For the years ended December 31,



 

2019

 

2018

Revenues

 

$

 —

 

$

Production costs and taxes

 

 

 —

 

 

(40)

Depreciation, depletion, and amortization

 

 

 —

 

 

(4)

Interest income

 

 

 —

 

 

 —

Gain on sale of assets

 

 

 —

 

 

1,165 

Deferred income tax benefit

 

 

 —

 

 

 —

Net income from discontinued operations

 

$

 —

 

$

1,127 



The Discontinued Operations are related to the Manufactured Methane facilities.  The Company sold all its methane facility assets, except the applicable U.S. patent, on January 26, 2018 for $2.65 million.

 

 


Discontinued Operations (Tables)
v3.19.3
Discontinued Operations (Tables)
12 Months Ended
Dec. 31, 2019
Discontinued Operations [Abstract]  
Schedule Of The Amounts In Net Loss From Discontinued Operations



 

 

 

 

 

 



 

 

 

 

 

 



For the years ended December 31,



 

2019

 

2018

Revenues

 

$

 —

 

$

Production costs and taxes

 

 

 —

 

 

(40)

Depreciation, depletion, and amortization

 

 

 —

 

 

(4)

Interest income

 

 

 —

 

 

 —

Gain on sale of assets

 

 

 —

 

 

1,165 

Deferred income tax benefit

 

 

 —

 

 

 —

Net income from discontinued operations

 

$

 —

 

$

1,127 




Discontinued Operations (Schedule Of The Amounts In Net Loss From Discontinued Operations) (Details)
v3.19.3
Discontinued Operations (Schedule Of The Amounts In Net Loss From Discontinued Operations) (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 26, 2018
Dec. 31, 2019
Dec. 31, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Net income from discontinued operations     $ 1,127
Sale of methane facility assets $ 2,650    
Discontinued Operations [Member] | Methane Facilities [Member]      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Revenues     6
Production costs and taxes     (40)
Depreciation, depletion, and amortization     (4)
Interest income  
Gain on sale of assets     1,165
Deferrred income tax benefit  
Net income from discontinued operations     $ 1,127