Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

In February 2018, the Company signed a rig under contract, the original term of which was completed during the second quarter of 2018, and has since been extended to provide for a drilling rate of $22.5 thousand per day with either party eligible to terminate the contract with 30 days' notice.

In March 2018, the Company signed a dedicated fleet contract that provides for hydraulic fracturing and wireline services at variable rates depending on the work performed. The early termination fee equals $133 thousand for each scheduled well that is not hydraulically fractured as of the date of termination. The contract expires on December 31, 2018. As of November 2018, the Company had completed the initial term of the contract and had extended the contract for two additional wells on the 2018 drilling schedule. The Company has the ability to further extend the contract on any additional wells added to the 2018 drilling schedule.

From time to time, we are subject to legal proceedings and claims that arise in the ordinary course of business. Like other crude oil and gas producers and marketers, our operations are subject to extensive and rapidly changing federal and state environmental, health and safety, and other laws and regulations governing air emissions, wastewater discharges and solid and hazardous waste management activities. We are not aware of any pending or overtly threatened legal action against us that could have a material impact on our business.