Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.21.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2020
Summary of Significant Accounting Policies  
Summary of financial Assets and liabilities measured at fair value

Assets and liabilities measured at fair value as of and for the year ended December 31, 2020 are classified below based on the three 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

Commodity Derivative

 

 

-

 

 

 

1,220,209

 

 

 

-

 

 

 

6,227,390

 

 

 

$

-

 

 

$

1,220,209

 

 

$

-

 

 

$

6,227,390

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity Derivative

 

 

-

 

 

 

893,458

 

 

 

-

 

 

 

(741,818

)

 

 

$

-

 

 

$

893,458

 

 

$

-

 

 

$

(741,818

)

 

Assets and liabilities measured at fair value as of and for the year ended December 31, 2019 are classified below based on the three 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

Commodity Derivative

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity Derivative

 

 

 

 

 

 

5,158,822

 

 

 

-

 

 

 

(3,308,880

)

 

 

$

-

 

 

$

5,158,822

 

 

$

-

 

 

$

(3,308,880

)

Summary of company commodity derivatives

Natural Gas

 

Period

 

Average

MMBTU

per Month

 

 

Fixed

Price per

MMBTU

 

 

 

 

 

 

 

 

 

 

Swap

 

Dec-18 to Dec-22

 

 

118,936

 

 

$

2.715

 

Collar

 

Mar 20 / Aug 22

 

 

196,078

 

 

$2.00 / $2.43

 

 

 

 

 

 

 

 

 

 

 

 

Crude Oil

 

Period

 

Average

BBL per

Month

 

 

Price

per BBL

 

 

 

 

 

 

 

 

 

 

 

 

Swap

 

Dec-18 to Dec- 22

 

 

24,600

 

 

$

50.85

 

Collar

 

Feb 20 to Dec 20

 

 

16,278

 

 

$45.00 / $54.20

 

Collar

 

Jan 21 to Dec 21

 

 

10,135

 

 

$45.00 / $56.00

 

Collar

 

Jan 22 to July 22

 

 

6,934

 

 

$45.00 / $52.70

 

Summary of disaggregates the company's revenue by source

 

 

Years Ended

 

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

Oil

 

$

24,070,203

 

 

$

32,030,490

 

Natural gas and natural gas liquids

 

 

9,360,895

 

 

 

6,019,879

 

Settlements on Hedge Contracts

 

 

6,009,454

 

 

 

(3,757,339

)

Other income

 

 

826,228

 

 

 

299,820

 

 

 

 

 

 

 

 

 

 

 

 

$

40,266,780

 

 

$

34,592,850

 

Summary of stock warrant activity

 

 

Number of Shares

 

 

Weighted Average Exercise Price

 

 

Weighted Average Remaining Contractual Life

 

 

Aggregate Intrinsic Value

 

Warrants Outstanding – December 31, 2019

 

 

4,958,882

 

 

 

2.34

 

 

5.6 years

 

 

 

-

 

Granted

 

 

4,452,527

 

 

 

0.48

 

 

7.9 years

 

 

 

-

 

Exercised

 

 

(78,166

)

 

 

-

 

 

 

-

 

 

 

-

 

Forfeited/expired/cancelled

 

 

(2,222,222

)

 

 

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants Outstanding – December 31, 2020

 

 

7,111,021

 

 

$

0.99

 

 

5.7 years

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding Exercisable – December 31, 2020

 

 

7,111,021

 

 

$

0.99

 

 

5.7 years

 

 

$

-

 

Summary of changes in the company's asset retirement obligations

 

 

Year ended

December 31,

2020

 

 

Year ended

December 31,

2019

 

 

 

 

 

 

 

 

Asset retirement obligation – beginning

 

$

3,538,637

 

 

$

4,413,465

 

Oil and gas purchases

 

 

1,514,328

 

 

 

94,796

 

Adjustments through disposals and settlements

 

 

-

 

 

 

(1,361,106

)

Accretion expense

 

 

1,111,266

 

 

 

391,482

 

 

 

 

 

 

 

 

 

 

Asset retirement obligation – ending

 

$

6,164,231

 

 

$

3,538,637