Quarterly report pursuant to Section 13 or 15(d)

4. Debt Restructuring (Tables)

v3.5.0.2
4. Debt Restructuring (Tables)
9 Months Ended
Sep. 30, 2016
Restructuring and Related Activities [Abstract]  
Loss from discontinued operations, net of income taxes

The income and expense for the associated with the operating activities (through June 21, 2016, the date of the BRHC transaction) contributed in the BRHC Transaction are reflected as “Loss from discontinued items, net of income taxes” on our condensed statement of operations for all periods presented herein. The items included in “Loss from discontinued operations, net of income taxes” are as follows:

 

    For the Three Months     For the Nine Months  
    Ended September 30,     Ended September 30,  
    2016     2015     2016     2015  
                         
Oil and gas sales   $     $ 3,359,684     $ 5,539,613     $ 11,296,220  
Gain on settled derivatives           7,456,284       1,043,026       9,436,903  
Loss on the mark-to-market of derivatives           (3,297,358 )     (4,288,736 )     (4,886,184 )
Total revenues           7,518,610       2,293,903       15,846,939  
                                 
Operating expenses:                                
Production expenses           887,187       1,400,639       3,030,707  
Production taxes           330,186       568,028       1,171,530  
General and administrative           102,129       476,461       309,858  
Depletion of oil and gas properties           1,778,580       3,114,347       7,346,356  
Impairment of oil and gas properties           30,995,000       5,219,000       52,634,000  
Accretion of discount on asset retirement obligations           8,039       16,258       23,900  
Total operating expenses           34,101,121       10,794,733       64,516,351  
                                 
Net operating loss           (26,582,511 )     (8,500,830 )     (48,669,412 )
                                 
Other income (expense):                                
Interest expense           (1,681,307 )     (1,696,544 )     (4,795,727 )
Total other income (expense)           (1,681,307 )     (1,696,544 )     (4,795,727 )
                                 
Loss before provision for income taxes           (28,263,818 )     (10,197,374 )     (53,465,139 )
                                 
Provision for income taxes                       6,593,040  
                                 
Net income (loss)   $     $ (28,263,818 )   $ (10,197,374 )   $ (46,872,099 )

 

The assets and liabilities subject to the BRHC Transaction have been retroactively reclassified as assets and liabilities from discontinued operations on the Company’s balance sheet as of December 31, 2015.

 

Assets and liabilities reclassified as assets and liabilities from discontinued operations as of December 31, 2015 consisted of the following:

 

    December 31,  
    2015  
ASSETS        
         
Assets from discontinued operations, current        
Derivative instruments   $ 1,154,400  
Accounts receivable     5,038,146  
Prepaid expenses     37,100  
Total assets from discontinued operations, current     6,229,646  
         
Assets from discontinued operations, long term        
Oil and natural gas properties, full cost method of accounting        
Proved properties     131,168,906  
Unproved properties     10,394  
Total oil and natural gas properties, full cost method of accounting     131,179,300  
Less, accumulated depletion and allowance for impairment     (99,371,070 )
Total assets from discontinued operations, long term     31,808,230  
         
Total assets from discontinued operations   $ 38,037,876  
         
         
LIABILITIES        
         
Liabilities from discontinued operations, current        
Accounts payable   $ 7,906,438  
Accrued expenses     55,830  
Current portion of revolving credit facility and long term debt     60,350,629  
Total liabilities from discontinued operations, current     68,312,897  
         
Liabilities from discontinued operations, long term        
Asset retirement obligations     368,089  
Total liabilities from discontinued operations, long term     368,089  
         
Total liabilities from discontinued operations   $ 68,680,986