Annual report pursuant to Section 13 and 15(d)

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

v3.10.0.1
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