Note 7 - Hedging Program and Derivatives

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

7.

  

Hedging Program and Derivatives

The derivative contracts the Company utilizes are based on index prices that

may

and often do differ from the actual oil and gas prices realized in our operations.  The Company's derivative contracts do

not

qualify for hedge accounting; therefore, fluctuations in the market value of the derivative contracts are recognized in earnings during the current period. There are

no

netting agreements relating to these derivative contracts and there is

no

policy to offset.

The following table sets forth the summary position of our derivative contracts as of

June 30, 2018:

	Oil - WTI
Contract Periods	Daily Volume (Bbl)		Swap Price (per Bbl)
Fixed Swaps
2018 July - December		4,238	$	53.70
2019 January - December		2,800	$	55.66
2020 January - December		2,200	$	54.34

The following table illustrates the impact of derivative contracts on the Company’s balance sheet:

Fair Value Derivative Contracts as of June 30, 2018
	Asset Derivatives			Liability Derivatives
Derivatives not designated as hedging instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity price derivatives	Derivatives - current	$	-	Derivatives - current	$	21,477
Commodity price derivatives	Derivatives - long-term		-	Derivatives - long-term		10,852
		$	-		$	32,329

Fair Value Derivative Contracts as of December 31, 2017
	Asset Derivatives			Liability Derivatives
Derivatives not designated as hedging instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity price derivatives	Derivatives - current	$	-	Derivatives - current	$	10,837
Commodity price derivatives	Derivatives - long-term		-	Derivatives - long-term		2,387
		$	-		$	13,224