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Derivatives | 3 Months Ended
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Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Derivatives It is the Company’s policy to enter into derivative contracts only with counterparties that are creditworthy financial or commodity hedging institutions deemed by management as competent and competitive market makers. As of September 30, 2020, the Company did not post collateral under its one open derivative contract as trades were uncollateralized. The Company may utilize fixed-price swaps or costless put/call collars to hedge a portion of its anticipated future production. Fixed-price swaps are designed so that the Company receives or makes payments based on a differential between fixed and variable prices for the volumes under contract. A costless collar consists of a sold call, which establishes a maximum price the Company will receive for the volumes under contract, and a purchased put that establishes a minimum price. The Company has elected not to designate its open derivative contracts for hedge accounting. Accordingly, the Company records the net change in the mark-to-market valuation of the derivative contracts and all payments and receipts on settled derivative contracts in “Net loss on derivative contracts” on the unaudited consolidated condensed statements of operations.
|  | Three Months Ended September 30,
|  | 2020 |  | 2019
Realized (gain) loss |  | $ | 1,151,576 |  |  | $ | — |
Unrealized (gain) loss |  | (816,610) |  |  | — |
Net (gain) loss on derivative contracts |  | $ | 334,966 |  |  | $ | — |
The Company’s derivative contract is recorded at fair market value and is included in the unaudited consolidated condensed balance sheets as an asset or a liability. Refer to Note 16 – Fair Value Measurement for the table summarizing the location and fair value amounts of the Company’s open derivative contract in the consolidated balance sheet as of September 30, 2020. The Company did not have any open positions as of September 30, 2019. The following sets forth a summary of the Company’s open crude oil derivative positions as of September 30, 2020.
Period |  | Type of Contract |  | Volumes in Barrels |  | Price / Price Range |  | Weighted Average Floor Price per Bbl. |  | Weighted Average Ceiling Price per Bbl.
October 2020 to December 2020 |  | Fixed-Price Swap |  | 128,800 |  |  | $32 |  | $32 |  | $—
The Company presents the fair value of its derivative contracts at the gross amounts in the consolidated balance sheets. The Company enters into an International Swap Dealers Association Master Agreement ("ISDA") with each counterparty prior to a derivative contract with such counterparty. The ISDA is a standard contract that governs all derivative contracts entered into between the Company and the respective counterparty. The ISDA allows for offsetting of amounts payable or receivable between the Company and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency.

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- References No definition available. + Details
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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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