Note 17 - Subsequent Events

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE 17. Subsequent Events

Dividends and dividend equivalents. As previously discussed, in October 2021, the Company paid a quarterly dividend of $0.025 per share of common stock outstanding which resulted in a total of $2.3 million in dividends being paid on October 25, 2021. In addition, under the terms of the LTIP, the Company paid a dividend equivalent per share to all vested stock option holders of $207,000 in October 2021 and will accrue a dividend equivalent per share to all unvested stock option holders which is payable upon vesting of up to an additional $31,000 in August 2022, assuming no forfeitures.

Revolving Credit Facility. Also as previously discussed, in October 2021, the Company entered into the Second Amendment to the Credit Agreement to among other things, (i) complete a semi-annual borrowing base redetermination process, which increased the borrowing base from $125.0 million to $195.0 million and (ii) modified the terms of the Credit Agreement to increase the aggregate elected commitments from $125.0 million to $195.0 million. The syndicate of banks in the credit facility remained the same, although commitment percentages changed slightly with Fifth Third remaining the administrative agent.

Public Offering of Common Stock. On October 25, 2021, the Company completed the offering of 2,530,000 shares of its common stock, at a price to the public of $10.00 per share, pursuant to a registration statement on Form S-1 filed with the Securities and Exchange Commission on October 19, 2021. The net proceeds to the Company from the offering, after deducting the underwriting discounts and commissions and other offering expenses, were approximately $23.0 million. The Company intends to use the net proceeds of this offering for general corporate purposes, which may include accelerating its drilling and development activities and funding additional bolt-on acquisitions.

Derivative financial instruments. In October 2021, the Company entered into additional crude oil derivative financial instruments with other counterparties that are included in our syndicate of banks associated with our Revolving Credit Facility. After giving effect to these new contracts, the Company’s outstanding crude oil derivative contracts and the weighted average crude oil prices per barrel for those contracts are as follows:

	2021		2022										2023
	Fourth Quarter		First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total		First Quarter		Second Quarter		Total
Crude Oil Price Swaps - WTI: (a)
Volume (MBbls)		540.6		684.0		441.5		146.0		239.0		1,510.5		198.0		200.2		398.2
Price per Bbl	$	64.35	$	67.52	$	66.59	$	65.88	$	59.37	$	65.80	$	57.22	$	57.22	$	57.22