PROVISION FOR INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

PROVISION FOR INCOME TAXES

Components of Deferred Tax Assets and Liabilities

	Year Ended December 31,
	2017		2016
Deferred tax assets - current:
Exploration costs	$	—	$	—
Deferred tax assets - noncurrent:
NOL carryover		2,109,423		4,287,567
Stock based compensation		727,631		576,808
Asset retirement obligation		277,015		350,333
Charitable contribution		814		—
Total deferred tax assets		3,114,883		5,214,708
Deferred tax liabilities - current:
Property and equipment		(15,251)		(1,990)
Impairment, intangible drilling costs and other exploration costs capitalized		(935,482)		(1,796,102)
Debt discount - Beneficial conversion feature		(337,518)		—
Total deferred tax liabilities		(1,288,251)		(1,798,092)
Net deferred tax assets		1,826,632		3,416,616
Valuation allowance		(1,826,632)		(3,416,616)
Net deferred tax assets	$	—	$	—

Schedule of Effective Income Tax Rate Reconciliation

	Year Ended December 31,
	2017		2016
Tax at statutory federal rate	$	(3,688,109)	$	(1,520,524)
Permanent difference		2,258,353		2,378
State taxes, net of federal		(331,474)		(136,847)
Depletion, depreciation, amortization and impairment		—		—
Change in valuation allowance		396,256		938,026
Effect of the Tax Cuts and Jobs Act		918,446
Other		446,528		716,967
Provision (benefit) for income taxes	$	—	$	—