Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables)

v3.4.0.3
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables)
 3 Months Ended
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of non-cash gains or losses on derivative contracts
The following table presents cash settlements on matured or liquidated derivative instruments and non-cash gains and losses on open derivative instruments for the periods presented.  Cash receipts and payments below reflect proceeds received upon early liquidation of derivative positions and gains or losses on derivative contracts which matured during the period, calculated as the difference between the contract price and the market settlement price of matured contracts.  Non-cash gains and losses below represent the change in fair value of derivative instruments which continue to be held at period-end and the reversal of previously recognized non-cash gains or losses on derivative contracts that matured or were liquidated during the period.

 
Three Months Ended
March 31,
 
2016
 
2015
Cash Received (Paid) on Derivatives
$
25,446,900

 
$
39,994,650

Non-Cash Gain (Loss) on Derivatives
(21,983,017
)
 
(14,331,367
)
Gain on Derivative Instruments, Net
$
3,463,883

 
$
25,663,283


Open commodity swap contracts
The following table reflects open commodity swap contracts as of March 31, 2016, the associated volumes and the corresponding fixed price.

Settlement Period
 
Oil (Barrels)
 
Fixed Price ($)
Swaps-Crude Oil
 
 
 
 
04/01/15 – 06/30/16
 
90,000

 
89.00

04/01/15 – 06/30/16
 
90,000

 
90.00

04/01/15 – 06/30/16
 
90,000

 
91.00

04/01/15 – 06/30/16
 
90,000

 
90.00

04/01/15 – 06/30/16
 
45,000

 
90.00

04/01/15 – 06/30/16
 
45,000

 
90.00

07/01/16 – 12/31/16
 
180,000

 
65.00

07/01/16 – 12/31/16
 
180,000

 
64.93

07/01/16 – 12/31/16
 
90,000

 
65.00

07/01/16 – 12/31/16
 
180,000

 
65.00

07/01/16 – 12/31/16
 
180,000

 
64.93

07/01/16 – 12/31/16
 
90,000

 
65.30


Schedule of weighted average price of open commodity derivative contracts
The following table reflects the weighted average price of open commodity swap derivative contracts as of March 31, 2016, by year with associated volumes.

Year
 
Volumes (Bbl)
 
Weighted
Average Price ($)
2016
 
1,350,000

 
73.33

2017 and beyond
 
—

 
—

Derivatives instruments Balance Sheet location
The following table sets forth the amounts, on a gross basis, and classification of the Company’s outstanding derivative financial instruments at March 31, 2016 and December 31, 2015, respectively.  Certain amounts may be presented on a net basis on the condensed financial statements when such amounts are with the same counterparty and subject to a master netting arrangement:
Type of Crude Oil Contract
 
Balance Sheet Location
 
March 31, 2016 Estimated Fair Value
 
December 31, 2015 Estimated Fair Value
Derivative Assets:
 
 
 
 
 
 
Swap Contracts
 
Current Assets
 
$
42,628,541

 
$
64,611,558

Reconciliation between gross assets and liabilities and the amounts reflected on balance sheet
The tables presented below provide reconciliation between the gross assets and liabilities and the amounts reflected on the balance sheet.  The amounts presented exclude derivative settlement receivables and payables as of the balance sheet dates.

 
Estimated Fair Value at March 31, 2016
 
Gross Amounts of
Recognized Assets
 
Gross Amounts Offset
in the Balance Sheet
 
Net Amounts of Assets Presented
in the Balance Sheet
Offsetting of Derivative Assets:
 
 
Current Assets
$
42,628,541

 
$
—

 
$
42,628,541


 
Estimated Fair Value at December 31, 2015
 
Gross Amounts of
Recognized Assets
 
Gross Amounts Offset
in the Balance Sheet
 
Net Amounts of Assets Presented
in the Balance Sheet
Offsetting of Derivative Assets:
 
 
Current Assets
$
64,611,558

 
$
—

 
$
64,611,558