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Subsequent Events | 12 Months Ended
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Mar. 31, 2020
Subsequent Events [Abstract] |
Subsequent Events | 16. Subsequent Events During the first quarter of fiscal 2021, the Company borrowed $235,000 on the line of credit and made a payment of $100,000 to reduce the line of credit leaving a balance of $930,000. During the first quarter of fiscal 2021, the Company expended approximately $200,000 for participation in the drilling of four wells in Lea County, New Mexico. On April 10, 2020, the Company’s Certificate of Deposit Account used to collateralize a plugging bond with the Texas Railroad Commission in the amount of $25,000 was closed and the funds deposited into the Company’s operating account. On March 27, 2020, President Trump signed the Coronavirus Aid, Relief and Economic Security (the “CARES Act”), which, among other things, outlines the provisions of the Paycheck Protection Program (the “PPP”). The Company determined that it met the criteria to be eligible to obtain a loan under the PPP because, among other reasons, in light of the COVID-19 outbreak and the uncertainty of economic conditions related thereto, the loan was necessary to support the Company’s ongoing operations. Under the PPP, the Company could obtain a U.S. Small Business Administration loan in an amount equal to the average of the Company’s monthly payroll costs (as defined under the PPP) for calendar 2019 multiplied by 2.5 (approximately 10 weeks of payroll costs). Section 1106 of the CARES Act contains provisions for the forgiveness of all or a portion of a PPP loan, subject to the satisfaction of certain requirements. The amount eligible for forgiveness is, subject to certain limitations, the sum of the Company’s payroll costs, rent and utilities paid by the Company during the 24-week period beginning on the funding date of the PPP loan. On May 5, 2020, the Company closed on a PPP loan in the amount of $68,574, which was funded on the date thereof. Beginning in March 2020, significant price decline and price volatility for oil and gas products emerged in the market. The Company could be directly impacted by these price changes if the decline in demand and price remain depressed for an extended period of time. The financial statement impact, change in price and expected time for these changes is not estimable but will result in significant decreases in oil and gas operations. Management has considered all available information and has concluded that volatility in price and demand is difficult to estimate and the current outcome of future operations is unknown. The extent of the operational and financial impact the COVID-19 pandemic may have on the Company has yet to be determined and is dependent on its duration and spread, any related operational restrictions and the overall economy. The Company is unable to accurately predict how COVID-19 will affect the results of its operations because the virus’s severity and the duration of the pandemic are uncertain. For example, the NYMEX West Texas Intermediate (“WTI”) posted price for crude oil on March 31, 2020 was $16.75 per bbl and averaged $14.68 and $24.67 per bbl for the months of April and May 2020, respectively. The WTI posted price for crude oil was $35.75 on June 19, 2020. The Henry Hub Spot Market Price (“Henry Hub”) posted price for natural gas on March 31, 2020 was $1.71 per MMBtu and averaged $1.74 and $1.75 per MMBtu for the months of April and May 2020, respectively. The Henry Hub posted price for natural gas was $1.67 on June 19, 2020. In April 2020, the Company expended approximately $28,100 to purchase twelve 1,000 barrel contracts to hedge our oil production for the months of April through August at a floor price of $25.00 per barrel. On May 4, 2020, the Company received a net settlement of $8,200 for the first of these contracts. In June 2020, in exchange for a reduction in rent for the months of June and July 2020, the Company agreed to a 2-month extension to its current lease agreement at the regular monthly rate extending its current lease expiration date to July 2021.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 855 -URI http://asc.fasb.org/topic&trid=2122774 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 855 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6842918&loc=SL6314017-165662 + Details
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