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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue and Cost Recognition (Policies)
12 Months Ended
Dec. 31, 2017
Policies  
Revenue and Cost Recognition

Revenue and Cost Recognition

 

The Company records revenues from the sales of natural gas and crude oil when the production is produced and sold, and also when collectability is ensured. The Company may in the future have an interest with other producers in certain properties, in which case the Company will use the sales method to account for gas imbalances. Under this method, revenue will be recorded on the basis of natural gas actually sold by the Company. The Company also reduces revenue for other owners’ natural gas sold by the Company that cannot be volumetrically balanced in the future due to insufficient remaining reserves. The Company’s remaining over- and under-produced gas balancing positions are considered in the Company’s proved oil and natural gas reserves. The Company had no gas imbalances at December 31, 2017 or 2016. The Company recorded revenues of $4,472 and $0 and costs of revenues totaling $5,735 and $0 during the years ended December 31, 2017 and 2016. There was $1,285 and $0 of accounts receivable at December 31, 2017 and 2016.