Quarterly report pursuant to Section 13 or 15(d)

Supplemental Oil and Gas Reserve Information (Unaudited) (Tables)

v3.7.0.1
Supplemental Oil and Gas Reserve Information (Unaudited) (Tables)
3 Months Ended
Mar. 31, 2017
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 three months ended March 31, 2017, the Company realized $73,894 in revenues from oil and gas producing activities.

 

    Three months ended     Three months ended  
    March 31, 2017     March 31, 2016  
Production revenues   $ 73,894     $  
Production costs            
Depletion and depreciation            
Income tax            
Results of operations for producing activities   $ 73,894     $  

Schedule of Capitalized Costs

The following table summarizes the Company’s capitalized costs of oil and gas properties:

 

    Three months ended        
    March 31, 2017     December 31, 2016  
Properties subject to depletion   $ 11,349,097     $ 11,198,411  
Accumulated depletion     (3,646 )      
Net capitalized costs   $ 11,345,451     $ 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 three months ended March 31, 2017:

 

    Three months ended        
    March 31, 2017     December 31, 2016  
Acquisition of properties   $     $ 10,016,991  
Exploration costs     1,474,584       1,181,450  
Development costs            
Net capitalized costs   $ 1,474,584     $ 11,198,441  

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.

 

          March 31, 2017        
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 March 31, 2017, 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.

 

    Three months ended  
    March 31, 2017  
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