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Derivatives | 12 Months Ended
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Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Derivatives In early June 2015, the Company began using derivative instruments to reduce its exposure to oil price volatility for a substantial portion of its forecasted production for the months of July 2015 through December 2015 to achieve a more predictable level of cash flows to support the Company’s capital expenditure program. The costless collars the Company uses to manage risk are designed to establish floor and ceiling prices on anticipated future oil production. While the use of these derivative instruments limits the downside risk of adverse price movements, they may also limit future revenues from favorable price movements. The Company does not enter into derivative instruments for speculative or trading purposes. These derivative instruments can result in both fair value asset and liability positions held with that counterparty, which positions are all offset to a single fair value asset or liability at the end of each reporting period. The Company nets its fair value amounts of derivative instruments executed with the same counterparty pursuant to ISDA master agreements, which provide for net settlement over the term of the contract and in the event of default or termination of the contract. The fair value of derivative instruments where the Company is in a net liability position with its counterparty as of June 30, 2015 totaled $109,974. Refer to Note 21—Fair Value Measurement for derivative asset and derivative liability balances before offsetting. The Company monitors the credit rating of its counterparty, Cargill, Incorporated, and believes it does not have significant credit risk. Accordingly, we do not currently require our counterparty to post collateral to support the net asset positions of our derivative instruments. As such, the Company is exposed to credit risk to the extent of nonperformance by the counterparty to its derivative instruments. The Company's collateral obligations are met by a credit line of $5,000,000 provided by the counterparty during the first ninety days of the agreement and thereafter by the Company which is seeking a secured facility to fund collateral obligations. For the year ended June 30, 2015, the Company recorded in the consolidated statement of operations a loss on unsettled derivatives, net of $109,974. The following sets forth a summary of the Company’s crude oil derivative positions at average NYMEX WTI prices as of June 30, 2015.
Period |  | Type of Contract |  | Volumes (in Bbls./day) |  | Weighted Average Floor Price per Bbl. |  | Weighted Average Ceiling Price per Bbl. |  | Weighted Average Collar Spread per Bbl.
Months of July 2015 through December 2015 |  | Costless Collar |  | 1,100 |  | $55.00 |  | $64.05 |  | $9.05
Subsequent to June 30, 2015, the Company realized gains of $138,787 and $412,985 on derivative contracts expiring in July 2015 and August 2015, respectively.

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