Supplemental Oil and Gas Reserve Information (Unaudited) (Tables)
|
12 Months Ended |
Dec. 31, 2016 |
|---|
| Oil and Gas Exploration and Production Industries Disclosures [Abstract] |
|
| Schedule of results of operations from oil and gas producing activities |
The
following table shows the results of operations from the Company’s oil and gas producing activities. For the
year ended December 31, 2016, the Company had no revenue from oil and gas producing activities.
| |
|
Year Ended |
|
| |
|
December 31, |
|
| |
|
2016 |
|
| Production
revenues |
|
$ |
— |
|
| Production costs |
|
|
— |
|
| Depletion and depreciation |
|
|
— |
|
| Income
tax |
|
|
— |
|
| Results
of operations for producing activities |
|
$ |
— |
|
|
| Schedule of capitalized costs |
The
following table summarizes the Company’s capitalized costs of oil and gas properties:
| |
|
Year Ended |
|
| |
|
December 31, |
|
| |
|
2016 |
|
| Properties
subject to depletion |
|
$ |
11,198,411 |
|
| Accumulated
depletion |
|
|
— |
|
| Net
capitalized costs |
|
$ |
11,198,411 |
|
|
| Schedule of costs incurred in property acquisition, exploration and development activities |
The
following table summarizes the Company’s costs incurred in property acquisition, exploration and development activities
for the year ended December 31, 2016:
| |
|
Year Ended |
|
| |
|
December 31, |
|
| |
|
2016 |
|
| Acquisition of properties |
|
$ |
10,462,220 |
|
| Exploration costs |
|
|
736,191 |
|
| Development
costs |
|
|
— |
|
| Net
capitalized costs |
|
$ |
11,198,411 |
|
|
| Schedule of estimated quantities of proved reserves |
Although
every reasonable effort is made to ensure that the reserve estimates are accurate, by their nature reserve estimates are generally
less precise than other estimates presented in connection with financial statement disclosures.
| |
|
|
|
|
December 31, 2016 |
|
|
|
|
| Proved Reserves |
|
Total Proved
Non-Producing |
|
|
Proved
Undeveloped |
|
|
Total
Proved |
|
| |
|
|
|
|
|
|
|
|
|
| Beginning |
|
|
|
|
|
|
|
|
|
|
|
|
| Crude
Oil MSTB’s |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Natural
Gas Liquids MSTB’s |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Natural
Gas MCF’s |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Oil
Equivalents MBOE’s |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Revisions of previous
estimates |
|
|
|
|
|
|
|
|
|
|
|
|
| Crude
Oil MSTB’s |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Natural
Gas Liquids MSTB’s |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Natural
Gas MCF’s |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Oil
Equivalents MBOE’s |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Sales of minerals in
place |
|
|
|
|
|
|
|
|
|
|
|
|
| Crude
Oil MSTB’s |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Production |
|
|
|
|
|
|
|
|
|
|
|
|
| Crude
Oil MSTB’s |
|
|
— |
|
|
|
- |
|
|
|
— |
|
| Natural
Gas Liquids MSTB’s |
|
|
— |
|
|
|
- |
|
|
|
— |
|
| Natural
Gas MCF’s |
|
|
— |
|
|
|
- |
|
|
|
— |
|
| Oil
Equivalents MBOE’s |
|
|
— |
|
|
|
- |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Ending |
|
|
|
|
|
|
|
|
|
|
|
|
| Crude
Oil MSTB’s |
|
|
193 |
|
|
|
1,429 |
|
|
|
1,622 |
|
| Natural
Gas Liquids MSTB’s |
|
|
— |
|
|
|
- |
|
|
|
— |
|
| Natural
Gas MMCF’s |
|
|
97 |
|
|
|
714 |
|
|
|
811 |
|
| Oil
Equivalents MBOE’s |
|
|
212.4 |
|
|
|
1,571.8 |
|
|
|
1,784.2 |
|
|
| Schedule of development plan |
At
December 31, 2016, the Company expects its development plan to generally perform as follows:
| |
|
Estimated
Conversion of
Proved Undeveloped Reserves |
|
| |
|
CAPEX
(000’s) |
|
|
MBOE |
|
| 2017 |
|
$ |
4,120.0 |
|
|
|
22.806 |
|
| 2018 |
|
$ |
6,175.0 |
|
|
|
155.948 |
|
| 2019 |
|
$ |
9,500.0 |
|
|
|
231.795 |
|
| 2020 |
|
|
— |
|
|
|
270.064 |
|
| 2021 |
|
|
— |
|
|
|
211.554 |
|
|
| Schedule of standardized measure of discounted future net cash flows |
The
standardized measure of discounted future net cash flows from our proved non-producing and proved undeveloped reserves for the
periods presented in the financial statements is summarized below.
| |
|
Year Ended |
|
| |
|
December 31, |
|
| |
|
2016 |
|
| Future
net production revenue |
|
$ |
74,093,600 |
|
| Future operating costs |
|
|
(17,313,400 |
) |
| Future
capex costs |
|
|
(19,750,000 |
) |
| Future net cash flows
before tax |
|
|
37,030,200 |
|
| Future
income taxes (assuming 34% corporate tax rate) |
|
|
(12,590,268 |
) |
| Future net cash flows
after tax |
|
|
24,439,932 |
|
| 10%
annual discount for estimating of future cash flows |
|
|
(14,908,800 |
) |
| Standardized
measure of discounted net future cash flows |
|
$ |
9,531,132 |
|
|