PROVISION FOR TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Tax (Benefit) Provision

The Company’s income tax (benefit) provision is as follows:

	2013			2012
Current:	$	—		$	(58,013	)
Deferred:
Change in depreciation, depletion and amortization	$	2,895,000		$	(1,737,000	)
Change in unrealized loss on derivative		232,000			(275,000	)
Change in other items		128,000			(29,000	)
Change in NOL		(11,783,000	)		(3,564,000	)
Increase in AMT credit		—			58,000
Change in valuation allowance		8,528,000			5,547,000
Total	$	—		$	(58,013	)

Net Deferred Tax Assets and Liabilities

Net deferred tax assets and liabilities consist of the following components as of December 31, 2013 and 2012:

	2013			2012
Deferred tax assets:
NOL carryover	$	17,465,000		$	5,682,000
AMT credit		606,000			606,000
Unrealized loss on derivative contract		43,000			275,000
Other		14,000			142,000
Total deferred tax assets		18,128,000			6,705,000
Deferred tax liabilities:
Depreciation, depletion and amortization		(3,447,000	)		(552,000	)
Total deferred tax liabilities		(3,447,0000	)		(552,000	)
Valuation allowance		(14,681,000	)		(6,153,000	)
Net deferred taxes	$	—		$	—