Provision for Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Tax (Benefit) Provision

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

	2015			2014
Current:	$	—		$	—
Deferred:
Change in depreciation, depletion and amortization	$	3,864,000		$	1,437,000
Change in unrealized gain (loss) on derivative		(1,399,000	)		2,841,000
Change in other items		17,000			(17,000	)
Change in NOL		(10,342,000	)		(4,160,000	)
Change in accruals		544,000			(1,020,000	)
Change in valuation allowance		7,316,000			919,000
Total	$	—		$	—

Net Deferred Tax Assets and Liabilities

Net deferred tax assets and liabilities consist of the following components as of December 31, 2015 and 2014:

	2015			2014
Deferred tax assets:
NOL carryover	$	31,967,000		$	21,625,000
AMT credit		606,000			606,000
Accruals		476,000			1,020,000
Other		14,000			31,000
Total deferred tax assets		33,063,000			23,282,000
Deferred tax liabilities:
Depreciation, depletion and amortization		(8,748,000	)		(4,884,000	)
Unrealized gain on derivative contract		(1,399,000	)		(2,798,000	)
Total deferred tax liabilities		(10,147,000	)		(7,682,000	)
Valuation allowance		(22,916,000	)		(15,600,000	)
Net deferred taxes	$	—		$	—