Summary of Significant Accounting Policies (Tables)
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6 Months Ended |
Jun. 30, 2019 |
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| Summary of Significant Accounting Policies (Tables) |
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| Financial Assets and liabilities measured at fair value |
Assets and liabilities measured at fair value as of June 30, 2019 are classified below based on the three fair value hierarchy described above:
Description |
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Quoted Prices in Active Markets for Identical Assets
(Level 1)
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Significant Other Observable Inputs
(Level 2)
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Significant Unobservable Inputs
(Level 3)
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Total Gains
(Losses)
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Financial Assets |
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Commodity Derivative |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
- |
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Financial liabilities |
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Commodity Derivative |
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$ |
|
|
|
$ |
7,121,509 |
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$ |
- |
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|
$ |
(5,271,567 |
) |
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$ |
- |
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|
$ |
7,121,509 |
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|
$ |
- |
|
|
$ |
(5,271,567 |
) |
Assets and liabilities measured at fair value as of December 31, 2018, are classified below based on the three-level fair value hierarchy described above:
Description |
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
|
Significant Other Observable Inputs
(Level 2)
|
|
|
Significant Unobservable Inputs
(Level 3)
|
|
|
Total Gains
(Losses)
|
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Financial Assets |
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Commodity Derivative |
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$ |
- |
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|
$ |
681,776 |
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$ |
- |
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$ |
926,802 |
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|
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$ |
- |
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|
$ |
681,776 |
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|
$ |
- |
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|
$ |
926,802 |
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Financial liabilities |
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Commodity Derivative |
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$ |
- |
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$ |
2,531,718 |
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$ |
- |
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|
$ |
(2,531,718 |
) |
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$ |
- |
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$ |
2,531,718 |
|
|
$ |
- |
|
|
$ |
(2,531,718 |
) |
|
| Summary of company commodity derivatives |
Natural Gas |
|
Period |
|
Average MMBTU per Month |
|
Fixed Price per MMBTU |
|
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Swap |
|
Dec-18 to Dec-22 |
|
118,936 |
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$2.715 |
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Crude Oil |
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Period |
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Average BBL per Month |
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Price per BBL |
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Swap |
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Dec-18 to Dec-22 |
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24,600 |
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$ 50.85 |
Swap |
|
Dec-17 to Dec-19 |
|
1,400 |
|
$ 54.77 |
Swap |
|
Jan-20 to Jun-20 |
|
1,400 |
|
$ 52.71 |
Collar |
|
Dec-17 to Jun-20 |
|
4,000 |
|
$55.00 / $72.00 |
Collar |
|
Sep-17 to Sep-19 |
|
1,100 |
|
$47.00 / $54.10 |
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| Depreciation, depletion and amortization expense |
Depreciation, depletion and amortization expense utilizing the unit-of-production method for the Companys oil and gas properties for the three and six months ended June 30, 2019 and 2018 were as follows:
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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Cost Center |
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2019 |
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2018 |
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2019 |
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2018 |
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Canada |
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$ |
- |
|
|
$ |
10,649 |
|
|
$ |
- |
|
|
$ |
21,387 |
|
United States |
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|
2,228,191 |
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|
449,302 |
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4,598,879 |
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|
928,250 |
|
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$ |
2,228,191 |
|
|
$ |
459,951 |
|
|
$ |
4,598,879 |
|
|
$ |
949,637 |
|
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| Summary of disaggregates the company's revenue by source |
The following table disaggregates the Companys revenue by source for the six months ended June 30, 2019 and 2018:
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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2019 |
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2018 |
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2019 |
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2018 |
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Oil |
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$ |
7,194,400 |
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$ |
2,248,725 |
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$ |
14,926,562 |
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|
$ |
4,272,909 |
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Natural gas and natural gas liquids |
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|
1,539,923 |
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|
69,897 |
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3,154,353 |
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|
207,660 |
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$ |
8,734,323 |
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|
$ |
2,318,622 |
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|
$ |
18,080,915 |
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|
$ |
4,480,569 |
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| Stock-Based Compensation |
The following table represents stock warrant activity as of and for the six months ended June 30, 2019:
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Number of
Shares
|
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Weighted
Average
Exercise
Price
|
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Weighted
Average
Remaining
Contractual Life
|
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Aggregate
Intrinsic
Value
|
|
Warrants Outstanding – December 31, 2018 |
|
|
54,821,690 |
|
|
$ |
0.26 |
|
|
6.0 years |
|
|
$ |
- |
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Granted |
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|
- |
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- |
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- |
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Exercised |
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- |
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- |
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- |
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- |
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Forfeited/expired/cancelled |
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- |
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- |
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- |
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Warrants Outstanding – June 30, 2019 |
|
|
54,821,690 |
|
|
$ |
0.26 |
|
|
4.7 years |
|
|
$ |
- |
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Outstanding Exercisable – June 30, 2019 |
|
|
54,821,690 |
|
|
$ |
0.26 |
|
|
4.7 years |
|
|
$ |
- |
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| Summary of changes in the Company's asset retirement obligations |
The following table describes the changes in the Companys asset retirement obligations for the six months ended June 30, 2019:
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Six months ended June 30, 2019 |
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Asset retirement obligation beginning |
|
$ |
4,413,465 |
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Oil and gas purchases |
|
|
94,796 |
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Adjustments through disposals and settlements |
|
|
(797,796 |
) |
Accretion expense |
|
|
158,227 |
|
Asset retirement obligation ending |
|
$ |
3,868,692 |
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|