Annual report pursuant to Section 13 and 15(d)

STATEMENTS OF CASH FLOWS

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STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cash Flows From Operating Activities      
Net income (loss) $ 1,753,869 $ (37,637,687) $ (9,052,771)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Depreciation, depletion and amortization 20,517,780 11,483,314 15,175,791
Ceiling test impairment 0 56,513,016 9,312,203
Accretion expense 567,968 487,182 418,384
Share-based compensation 3,685,079 2,267,053 2,566,716
Deferred income tax expense (benefit) 3,862,827 (19,987,585) (5,003,713)
Excess tax benefit related to share-based compensation (49,896) 0 0
Adjustment to deferred tax asset for change in effective tax rate 6,603,240  
Change in fair value of derivative instruments 3,968,286 0 0
Changes in assets and liabilities:      
Accounts receivable (9,980,206) 229,324 2,163,440
Prepaid expenses 268,080 334,162 (806,422)
Accounts payable 12,375,772 (2,233,776) (4,929,884)
Settlement of asset retirement obligation (766,595) (240,606) (446,192)
Net Cash Provided by Operating Activities 42,806,204 11,214,397 9,397,552
Cash Flows From Investing Activities      
Payments to purchase oil and natural gas properties (28,682,298) (10,193,927) (77,902,553)
Payments to develop oil and natural gas properties (124,680,469) (26,554,171) (31,430,355)
Purchase of inventory for development (4,214,686) (1,582,427) 0
Purchase of equipment, vehicles and leasehold improvements (335,507) (9,320) (330,182)
Net Cash Used in Investing Activities (157,912,960) (38,339,845) (109,663,090)
Cash Flows From Financing Activities      
Proceeds from revolving line of credit 0 7,000,000 45,900,000
Proceeds from issuance of common stock 59,026,956 139,567,979 50,039,853
Principal payments on revolving line of credit 0 (52,900,000) 0
Proceeds from option exercise 0 112,500 134,800
Net Cash Provided by Financing Activities 59,026,956 93,780,479 96,074,653
Net Increase (Decrease) in Cash (56,079,800) 66,655,031 (4,190,885)
Cash at Beginning of Period 71,086,381 4,431,350 8,622,235
Cash at End of Period 15,006,581 71,086,381 4,431,350
Supplemental Cash Flow Information      
Cash paid for interest 0 649,010 426,742
Noncash Investing and Financing Activities      
Asset retirement obligation incurred during development 1,297,289 308,509 171,635
Asset retirement obligation acquired 0 0 3,361,634
Use of inventory in property development 5,797,113 0 0
Capitalized expenditures attributable to drilling projects financed through current liabilities $ 23,000,000 $ 0 $ 0