Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of income (loss) before income taxes

	Year ended December 31,
	2019		2018
Foreign		(307,286)	$	(665,924)
U.S.		12,782,774		8,070,409
	$	12,475,488	$	7,404,485

Schedule of current and deferred tax expense (benefit)

	Year ended December 31,
	2019		2018
Current:
Federal	$	1,010,181	$	1,742,898
State		355,122		(428,068)
Total current income tax expense		1,365,303		1,314,830
Deferred:
Federal		1,527,937		(392,574)
State		884,249		(179,831)
Total deferred tax expense (benefit)		2,412,186		(572,405)
Income tax expense	$	3,777,489	$	742,425

Schedule of reconciliation between statutory rate and effective income tax rate

	Year Ended				Year Ended
	December 31,		Effective		December 31,		Effective
	2019		Tax Rate		2018		Tax Rate
Income tax provision computed at the statutory federal tax rate	$	2,619,853	21.00	%	$	1,554,942	21.00	%
Difference in Canadian and U.S. tax rate		(16,901)	(0.14)	%		(30,633)	(0.41)	%
Valuation allowance on Canadian loss		81,431	0.65	%		170,477	2.30	%
Return to provision adjustment		16,503	0.13	%		(179,120)	(2.42)	%
State taxes		979,102	7.85	%		349,643	4.72	%
Miscellaneous other items		97,501	0.80	%		28,860	0.39	%
Change in uncertain tax position		—	—	%		(1,151,744)	(15.55)	%
Income tax expense	$	3,777,489	30.29	%	$	742,425	10.03	%

Schedule of net deferred tax liabilities

	As at December 31,
	2019		2018
Deferred tax assets:
State net operating loss carryforwards	$	492,672	$	465,496
Canadian net operating loss carryforwards		12,195,114		12,113,684
ARO		833,562		—
Unrealized Hedge/Other		71,524		91,646
Gross deferred tax assets		13,592,872		12,670,826
Valuation allowance		(12,195,114)		(12,113,684)
Total deferred tax assets		1,397,758		557,142
Deferred tax liabilities:
Oil and gas property		(10,210,078)		(7,407,828)
Partnership		(3,016,277)		(3,138,592)
Unrealized Hedge/Other		(572,867)		—
Total deferred tax liabilities		(13,799,222)		(10,546,420)
Net deferred tax liability	$	(12,401,464)	$	(9,989,278)