Annual report pursuant to Section 13 and 15(d)

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

v3.19.1
Supplemental Oil and Gas Reserve Information (Unaudited) (Tables)
12 Months Ended
Dec. 31, 2018
Oil and Gas Exploration and Production Industries Disclosures [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, 2018 and 2017 are summarized below:

 

    December 31,  
    2018     2017  
Net revenues from production:                
Sales of oil and gas production to third parties   $ 2,567,438     $ 155,161  
                 
Production costs:                
Oil and gas lease operating expense     (1,648,155 )     (252,753 )
Depletion, depreciation, amortization, accretion, and impairment expense     (2,908,787 )     (1,525,784 )
Income tax expense            
Results of operations   $ (1,989,504 )   $ (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, 2018 and 2017 are summarized below:

 

    2018     2017  
Unproved properties not being amortized   $ 106,299     $ 2,509,274  
                 
Proved properties subject to amortization     12,752,515       10,762,380  
Accumulated depreciation, depletion, and amortization     (431,554 )     (18,016 )
Net capitalized costs   $ 12,427,260     $ 13,253,638  

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, 2018 and 2017:

 

    2018     2017  
Proved acreage   $ (871,637 )   $ 18,653  
Producing assets     184,742       580,158  
Incomplete construction     (1,501,369 )     1,501,369  
Exploration costs     1,361,886       (148,533  
Development costs            
Net capitalized costs   $ (826,378 )   $ 1,951,647  

Schedule of Estimated Quantities of Proved Reserves

The following table sets forth certain data pertaining to changes in reserves quantities of the proved, proved developed, and proved undeveloped reserves for the years ended December 31, 2018 and 2017.

 

    December 31,  
    Crude Oil     Natural Gas     Crude Oil     Natural Gas  
    (MSTB)     (MCF)     (MSTB)     (MCF)  
    2018     2018     2017     2017  
TOTAL PROVED RESERVES                                
Beginning of year     4,174       8,353              
Purchases of minerals in place                 1,622       811  
Sales of minerals in place                        
Extensions and discoveries                 4,174       8,353  
Revisions of previous estimates     161       2,099       (1,620 )     (811 )
Production     (764 )     (870 )            
End of period     4,334       9,582       4,174       8,353  
                                 
PROVED DEVELOPED RESERVES                                
Proved developed producing                        
Proved developed nonproducing                        
End of period                        
Total proved undeveloped     4,334       9,582       4,174       8,353  

Schedule of Standardized Measure of Discounted Future Net Cash Flows

The standardized measure is prepared on the basis of certain prescribed assumptions, which represent discrete points in time and may cause significant variability in cash flows from year to year as prices change.

 

Net cash flows at December 31,   2018     2017  
             
Future cash inflows   $ 360,258,000     $ 268,949,000  
Future production costs     (126,192,000 )     (103,926,000 )
Future development costs     (53,250,000 )     (48,000,000 )
Future income tax expense     (54,833,123 )     (23,275,919 )
Future net cash flows     125,982,877       93,747,081  
10% annual discount for estimated timing of cash flow     (77,591,818 )     (68,046,395 )
Standard measure of discounted future net cash flows related to proved reserves   $ 48,391,059     $ 25,700,686  

Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows

The principal sources of changes in the standardized measure of the future net cash flows for the years ended December 31, 2018 and 2017 are:

 

    2018     2017  
Balance, beginning of period   $ 25,700,686     $ 9,531,132  
Sales and transfers of oil and gas produced during the period     (1,133,957 )     97,592  
Sales of minerals in place            
Purchases of minerals in place            
Net change in sales price, net of production costs     18,083,915       (4,564,023 )
Net changes due to extensions and discoveries           50,755,047  
Changes in estimated future development costs     (1,848,661 )     (25,709,147 )
Previously estimated development costs incurred during the period            
Net change due to revisions in quantity estimates     6,749,925       (16,007,121 )
Other     2,227,581       11,284,522  
Accretion of discount     3,599,200       3,599,200  
Net change in income tax     (4,987,627 )     (3,286,516 )
Balance, end of period   $ 48,391,059     $ 25,700,686