Quarterly report pursuant to Section 13 or 15(d)

REVENUE RECOGNITION

v3.8.0.1
REVENUE RECOGNITION
3 Months Ended
Mar. 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 it 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, it delivers natural gas to a midstream processing entity. 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 purchased at the point of delivery. 
 
Disaggregation of Revenue. The following table presents revenues disaggregated by product:
 
 
 
 
For The Three Months
 
 
 
Ended March 31,
 
 
 
2018
 
2017
 
Operating revenues
 
 
 
 
 
 
 
Oil
 
$
29,140,165
 
$
11,697,084
 
Natural gas
 
 
751,226
 
 
546,709
 
 
 
 
 
 
 
 
 
Total operating revenues
 
$
29,891,391
 
$
12,243,793
 
 
All revenues, both oil and gas, are from production from the Permian Basin in Texas.