XML 25 R13.htm IDEA: XBRL DOCUMENT
v3.20.4

Property and Equipment | 6 Months Ended
--- | ---
Dec. 31, 2020
Property, Plant and Equipment [Abstract] |
Property and Equipment | Property and Equipment
| December 31, 2020 |  | June 30, 2020
Oil and natural gas properties: |  |  |
Property costs subject to amortization | $ | 107,610,555 |  |  | $ | 107,390,379 |
Less: Accumulated depreciation, depletion, amortization and impairment | (68,339,820) |  |  | (40,878,098) |
Oil and natural gas properties, net | $ | 39,270,735 |  |  | $ | 66,512,281 |
Other property and equipment: |  |  |
Furniture, fixtures, and office equipment, at cost | $ | 154,731 |  |  | $ | 154,731 |
Less: Accumulated depreciation | (140,712) |  |  | (137,092) |
Other property and equipment, net | $ | 14,019 |  |  | $ | 17,639 |
During the six months ended December 31, 2020 and 2019, the Company incurred capital expenditures of $0.2 million and $1.1 million, respectively. On November 1, 2019, the Company acquired its 23.51% non-operating working interest and a 19.70% revenue interest in the Hamilton Dome unitized field located in Hot Springs County, Wyoming, from the Merit Energy Company. As a result of this cash purchase combined with its subsequent purchase adjustments, the Company recorded a purchase cost of $9.3 million and also recognized $0.9 million in non-cash asset retirement obligations. The Company uses the full cost method of accounting for its investment in oil and natural gas properties. All costs of acquisition, exploration, and development of oil and natural gas reserves are capitalized as the cost of oil and natural gas and properties when incurred. To the extent capitalized costs of evaluated oil and natural gas properties, net of accumulated depletion, exceed the discounted future net revenues of proved oil and natural gas reserves, net of deferred taxes, such excess capitalized costs result in an impairment charge. At December 31, 2020, the ceiling test value of the Company’s reserves was calculated based on the first-day-of-the-month average for the 12-months ended December 31, 2020 of the West Texas Intermediate (WTI) crude oil spot price of $39.54 per barrel, adjusted by market differentials by field. The net price per barrel of NGLs was $8.30, which does not have any single comparable reference index price. The NGL price was based on historical prices received. Using these prices, the Company’s net book value of oil and natural gas properties at December 31, 2020 exceeded the current ceiling. During the three months ended December 31, 2020, the Company recorded $15.2 million of ceiling test impairment charges. The ceiling test impairment was driven by a decrease in the first-day-of-the-month average price for crude oil used in the ceiling test calculation, from $43.63 per barrel at September 30, 2020 to $39.54 per barrel at December 31, 2020 together with adverse changes in differentials received in the Delhi field. The first-day-of-the-month average oil price as of December 31, 2020 was heavily influenced by the extremely low oil prices realized in March through May of 2020 combined with the roll off of high oil prices during the quarter ended December 31, 2019. At September 30, 2020, the Company recorded a $9.6 million ceiling test impairment charge. The ceiling test impairment was driven by a decrease in the first-day-of-the-month average price for crude oil used in the ceiling test calculation, from $47.37 per barrel at June 30, 2020 to $43.63 per barrel at September 30, 2020 together with adverse changes in differentials received in the Delhi field. The first-day-of-the-month average oil price as of September 30, 2020 was heavily influenced by the extremely low oil prices realized in March through May of 2020 combined with the roll off of high oil prices during the quarter ended September 30, 2019.

X
- References No definition available. + Details
Name: | us-gaap_PropertyPlantAndEquipmentAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=120429125&loc=d3e99893-112916 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=120429125&loc=SL120174063-112916 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 1 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120429125&loc=d3e99779-112916 + Details
Name: | us-gaap_PropertyPlantAndEquipmentDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration