Annual report pursuant to Section 13 and 15(d)

REVENUE RECOGNITION

v3.10.0.1
REVENUE RECOGNITION
 12 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block]
NOTE 2 – REVENUE RECOGNITION
         
 
Oil sales
 
Under the Company’s oil sales contracts, the Company sells oil production at the point of delivery and collects an agreed upon index price, net of pricing differentials. The Company recognizes revenue when control transfers to the purchaser at the point of delivery at the net price received.
 
Natural gas sales
 
Under the Company’s natural gas sales processing contracts, the Company delivers unprocessed natural gas to a midstream processing entity at the wellhead. The midstream processing entity obtains control of the natural gas at the wellhead. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sale of natural gas. Under these processing agreements, the Company recognizes revenue when control transfers to the purchaser at the point of delivery. As such, the Company accounts for any fees and deductions as a reduction of the transaction price.
 
Disaggregation of Revenue.
The following table presents revenues disaggregated by product:
 
 
 
For the years ended December 31,
 
 
 
2018
 
 
2017
 
 
2016
 
Operating revenues
 
 
 
 
 
 
 
 
 
 
 
 
Oil
 
$
116,678,375
 
 
$
64,236,490
 
 
$
28,599,140
 
Natural gas
 
 
3,386,986
 
 
 
2,463,210
 
 
 
2,251,108
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total operating revenues
 
$
120,065,361
 
 
$
66,699,700
 
 
$
30,850,248
 
 
All revenues, both oil and gas, are from production from the Permian Basin in Texas.