Liquidity and Going Concern	3 Months Ended
Mar. 31, 2015
Liquidity and Going Concern [Abstract]
Liquidity and Going Concern	Note 2 – Liquidity and Going Concern We expect that for 2015 we will not generate revenue, will continue to generate losses from operations, and our cash flows will not be sufficient to cover our operating expenses or capital needs. Expected continued losses from operations and uses of cash will be funded through debt or equity financings, farm-downs and delay of the discretionary portion of our capital spending to future periods or operating cost reductions. Our ability to continue as a going concern also depends upon the success of our planned exploration and development activities. There can be no guarantee of future capital acquisition, fundraising or explorations success or that we will realize the value of our exploration and exploitation acreage and suspended wells. We believe that we will continue to be successful in securing any funds necessary to continue as a going concern. However, our current cash position and our ability to access additional capital may limit our available opportunities or not provide sufficient cash for operations or capital requirements. Historically, our primary ongoing source of cash has been dividends from Petrodelta, issuance of debt and the sale of oil and gas properties. Our primary use of cash has been to fund oil and gas exploration projects, principal payments on debt, interest, and general and administrative costs. We require capital principally to fund the exploration and development of new oil and gas properties. As is common in the oil and gas industry, we have various contractual commitments pertaining to exploration, development and production activities. As a result of the situation in Venezuela, the actions of the Venezuelan government which have and continue to adversely affect our operations and the expectation that dividends from Petrodelta will be minimal over the next few years, cash generated from operations has been limited and this has had a significant adverse effect on our ability to obtain financing to acquire and develop growth opportunities elsewhere. On August 28, 2014, Petroandina exercised its right to a one month extension of the termination date of the SPA. In accordance with the extension the Company had the option to borrow $2.0 million from Petroandina, which it exercised. Petroandina again extended the SPA on September 29, and October 30, 2014, with the Company borrowing $2.0 million per extension. On November 27, 2014, Petroandina exercised its final extension and the Company borrowed the final maximum amount allowed of $1.6 million. Quarterly interest payments began on December 31, 2014 with the principal due January 1, 2016. Interest accrued at a rate of 11%. We are in default of the loan agreement with Petroandina for not making the April 1, 2015 interest payment. In default the interest rate effective April 2, 2015 is 13%. In the event of default, Petroandina may give notice to take any or all of the following actions, at the same time or different times: 1) terminate the loan agreement and 2) declare the outstanding principal balance of the loan and accrued interest to be due and payable in whole or in part immediately. As of the date of this report, Petroandina has not given us notice exercising any of these actions. As of March 31, 2015, the Company’s note payable balance to Petroandina was $7.6 million and accrued interest of $0.2 million. We are currently marketing our non-Venezuelan assets and in discussion with potential buyers and partners, and we intend to continue our consideration of a possible sale of some or all of our non-Venezuelan assets. Failure to generate sufficient cash flow, raise additional capital through debt or equity financings, farm-downs, or further reduce operating costs could have a material adverse effect on our ability to meet our short- and long-term liquidity needs and achieve our intended long-term business objectives. The above circumstances raise substantial doubt about our ability to continue as a going concern. While we believe the issuance of additional equity securities, short- or long-term debt financing, farm-downs, delay of the discretionary portion of our capital spending to future periods or operating cost reductions could be put into place which would not jeopardize our operations and future growth plans, there can be no assurance that such financings will be successful. Our financial statements have been prepared under the assumption that we will continue as a going concern, which contemplates that we will continue in operation for the foreseeable future and will be able to realize assets and settle liabilities and commitments in the normal course of business. The accompanying consolidated condensed financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or amounts and classification of liabilities that could result should we be unable to continue as a going concern. On May 11, 2015, the Company borrowed $1.3 million to fund certain corporate expenses. The Company issued a note payable to the lender bearing an interest rate of 15% per annum, with a maturity date of January 1, 2016.

Note 2 – Liquidity and Going Concern

We expect that for 2015 we will not generate revenue, will continue to generate losses from operations, and our cash flows will not be sufficient to cover our operating expenses or capital needs. Expected continued losses from operations and uses of cash will be funded through debt or equity financings, farm-downs and delay of the discretionary portion of our capital spending to future periods or operating cost reductions. Our ability to continue as a going concern also depends upon the success of our planned exploration and development activities. There can be no guarantee of future capital acquisition, fundraising or explorations success or that we will realize the value of our exploration and exploitation acreage and suspended wells. We believe that we will continue to be successful in securing any funds necessary to continue as a going concern. However, our current cash position and our ability to access additional capital may limit our available opportunities or not provide sufficient cash for operations or capital requirements.

Historically, our primary ongoing source of cash has been dividends from Petrodelta, issuance of debt and the sale of oil and gas properties. Our primary use of cash has been to fund oil and gas exploration projects, principal payments on debt, interest, and general and administrative costs. We require capital principally to fund the exploration and development of new oil and gas properties. As is common in the oil and gas industry, we have various contractual commitments pertaining to exploration, development and production activities.

As a result of the situation in Venezuela, the actions of the Venezuelan government which have and continue to adversely affect our operations and the expectation that dividends from Petrodelta will be minimal over the next few years, cash generated from operations has been limited and this has had a significant adverse effect on our ability to obtain financing to acquire and develop growth opportunities elsewhere.

On August 28, 2014, Petroandina exercised its right to a one month extension of the termination date of the SPA. In accordance with the extension the Company had the option to borrow $2.0 million from Petroandina, which it exercised. Petroandina again extended the SPA on September 29, and October 30, 2014, with the Company borrowing $2.0 million per extension. On November 27, 2014, Petroandina exercised its final extension and the Company borrowed the final maximum amount allowed of $1.6 million. Quarterly interest payments began on December 31, 2014 with the principal due January 1, 2016. Interest accrued at a rate of 11%. We are in default of the loan agreement with Petroandina for not making the April 1, 2015 interest payment. In default the interest rate effective April 2, 2015 is 13%. In the event of default, Petroandina may give notice to take any or all of the following actions, at the same time or different times: 1) terminate the loan agreement and 2) declare the outstanding principal balance of the loan and accrued interest to be due and payable in whole or in part immediately. As of the date of this report, Petroandina has not given us notice exercising any of these actions. As of March 31, 2015, the Company’s note payable balance to Petroandina was $7.6 million and accrued interest of $0.2 million.

We are currently marketing our non-Venezuelan assets and in discussion with potential buyers and partners, and we intend to continue our consideration of a possible sale of some or all of our non-Venezuelan assets.

Failure to generate sufficient cash flow, raise additional capital through debt or equity financings, farm-downs, or further reduce operating costs could have a material adverse effect on our ability to meet our short- and long-term liquidity needs and achieve our intended long-term business objectives.

The above circumstances raise substantial doubt about our ability to continue as a going concern. While we believe the issuance of additional equity securities, short- or long-term debt financing, farm-downs, delay of the discretionary portion of our capital spending to future periods or operating cost reductions could be put into place which would not jeopardize our operations and future growth plans, there can be no assurance that such financings will be successful.

Our financial statements have been prepared under the assumption that we will continue as a going concern, which contemplates that we will continue in operation for the foreseeable future and will be able to realize assets and settle liabilities and commitments in the normal course of business. The accompanying consolidated condensed financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or amounts and classification of liabilities that could result should we be unable to continue as a going concern.

On May 11, 2015, the Company borrowed $1.3 million to fund certain corporate expenses. The Company issued a note payable to the lender bearing an interest rate of 15% per annum, with a maturity date of January 1, 2016.