Supplemental Oil and Gas Reserve Information (Unaudited) (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| Extractive Industries [Abstract] |
|
| Schedule of Results of Operations from Oil and Gas Producing Activities |
The results
of operations from the Company’s oil and gas producing activities for the years ended December 31, 2017 and 2016 are summarized
below:
| |
|
December 31, |
|
| |
|
2017 |
|
|
2016 |
|
| Net revenues from production: |
|
|
|
|
|
|
|
|
| Sales of oil and gas production to third parties |
|
$ |
155,161 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
| Production costs: |
|
|
|
|
|
|
|
|
| Oil and gas lease operating expense |
|
|
(252,753 |
) |
|
|
— |
|
| Depletion, depreciation, amortization, accretion, and impairment expense |
|
|
(1,525,784 |
) |
|
|
— |
|
| Income tax expense |
|
|
— |
|
|
|
|
|
| Results of operations |
|
$ |
(1,623,376 |
) |
|
$ |
— |
|
|
| Schedule of Capitalized Costs |
Capitalized
costs and accumulated depletion, depreciation, and amortization relating to the Company’s oil and gas producing activities
as of December 31, 2017 and 2016 are summarized below:
| |
|
2017 |
|
|
2016 |
|
| Unproved properties not being amortized |
|
$ |
2,509,274 |
|
|
$ |
1,181,421 |
|
| |
|
|
|
|
|
|
|
|
| Proved properties subject to amortization |
|
$ |
10,762,380 |
|
|
|
10,352,014 |
|
| Accumulated depreciation, depletion, and amortization |
|
$ |
(18,016 |
) |
|
|
|
|
| Net capitalized costs |
|
$ |
13,253,638 |
|
|
$ |
11,533,435 |
|
|
| 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, 2017:
| |
|
2017 |
|
| Proved acreage |
|
$ |
18,653 |
|
| Producing assets |
|
|
580,158 |
|
| Incomplete construction |
|
|
1,501,369 |
|
| Exploration costs |
|
|
(148,533 |
) |
| Development costs |
|
|
— |
|
| Net capitalized costs |
|
$ |
1,951,647 |
|
|
| Schedule of Estimated Quantities of Oil and Natural Gas Reserves |
| |
|
December 31, |
|
| |
|
Crude Oil |
|
|
Natural Gas |
|
|
Crude Oil |
|
|
Natural Gas |
|
| |
|
(MSTB) |
|
|
(MCF) |
|
|
(MSTB) |
|
|
(MCF) |
|
| |
|
2017 |
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
| TOTAL PROVED RESERVES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of year |
|
|
1,622 |
|
|
|
811 |
|
|
|
— |
|
|
|
— |
|
| Purchases of minerals in place |
|
|
— |
|
|
|
— |
|
|
|
1,622 |
|
|
|
811 |
|
| Sales of minerals in place |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Extensions and discoveries |
|
|
4,174 |
|
|
|
8,353 |
|
|
|
— |
|
|
|
— |
|
| Revisions of previous estimates |
|
|
(1,620 |
) |
|
|
(811 |
) |
|
|
— |
|
|
|
— |
|
| Production |
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| End of period |
|
|
4,174 |
|
|
|
8,353 |
|
|
|
1,622 |
|
|
|
811 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PROVED DEVELOPED RESERVES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proved developed producing |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Proved developed nonproducing |
|
|
— |
|
|
|
— |
|
|
|
193 |
|
|
|
97 |
|
| End of period |
|
|
4,174 |
|
|
|
8,353 |
|
|
|
1,622 |
|
|
|
811 |
|
| Total proved undeveloped |
|
|
4,174 |
|
|
|
8,353 |
|
|
|
1,429 |
|
|
|
714 |
|
|
| Schedule of Standardized Measure of Discounted Future Net Cash Flows |
| Net cash flows at December 31, |
|
2017 |
|
|
2016 |
|
| |
|
|
|
|
|
|
| Future cash inflows |
|
$ |
268,949,000 |
|
|
$ |
74,093,600 |
|
| Future production costs |
|
|
(103,926,000 |
) |
|
|
(17,313,400 |
) |
| Future development costs |
|
|
(48,000,000 |
) |
|
|
(19,750,000 |
) |
| Future income tax expense |
|
|
(23,275,919 |
) |
|
|
(12,590,268 |
) |
| Future net cash flows |
|
|
93,747,081 |
|
|
|
24,439,932 |
|
| 10% annual discount for estimated timing of cash flow |
|
|
(68,046,395 |
) |
|
|
(14,908,800 |
) |
| Standard measure of discounted future net cash flows related to proved reserves |
|
$ |
25,700,686 |
|
|
$ |
9,531,132 |
|
|
| Schedule of Changes in the Standardized Measure of the Future Net Cash Flows |
| |
|
2017 |
|
| Balance, beginning of period |
|
$ |
9,531,132 |
|
| Sales and transfers of oil and gas produced during the period |
|
|
97,592 |
|
| Sales of minerals in place |
|
|
— |
|
| Purchases of minerals in place |
|
|
— |
|
| Net change in sales price, net of production costs |
|
|
(4,564,023 |
) |
| Net changes due to extensions and discoveries |
|
|
50,755,047 |
|
| Changes in estimated future development costs |
|
|
(25,709,147 |
) |
| Previously estimated development costs incurred during the period |
|
|
— |
|
| Net change due to revisions in quantity estimates |
|
|
(16,007,121 |
) |
| Other |
|
|
11,284,522 |
|
| Accretion of discount |
|
|
3,599,200 |
|
| Net change in income tax |
|
|
(3,286,516 |
) |
| Balance, end of period |
|
$ |
25,700,686 |
|
|