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Document and Entity Information - shares
6 Months Ended
Jun. 30, 2016
Aug. 09, 2016
Document And Entity Information    
Entity Registrant Name HOUSTON AMERICAN ENERGY CORP  
Entity Central Index Key 0001156041  
Document Type 10-Q  
Document Period End Date Jun. 30, 2016  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   51,499,336
Trading Symbol HUSA  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2016  
Consolidated Balance Sheets (Unaudited) - USD ($)
Jun. 30, 2016
Dec. 31, 2015
CURRENT ASSETS    
Cash $ 1,248,762 $ 2,123,520
Escrow receivable 262,016 262,016
Prepaid expenses and other current assets 26,250 38,257
TOTAL CURRENT ASSETS 1,537,028 2,423,793
Oil and gas properties, full cost method    
Costs subject to amortization 54,843,643 54,840,599
Costs not being amortized 2,947,029 2,879,063
Office equipment 90,004 90,004
Total 57,880,676 57,809,666
Accumulated depletion, depreciation, amortization, and impairment (54,725,987) (54,676,723)
PROPERTY AND EQUIPMENT, NET 3,154,689 3,132,943
Other assets 3,167 3,167
TOTAL ASSETS 4,694,884 5,559,903
CURRENT LIABILITIES    
Accounts payable 19,416 23,195
Accrued expenses 13,534 16,315
TOTAL CURRENT LIABILITIES 32,950 39,510
LONG-TERM LIABILITIES    
Reserve for plugging and abandonment costs 25,538 25,262
TOTAL LIABILITIES $ 58,488 $ 64,772
SHAREHOLDERS’ EQUITY    
Preferred stock, par value $0.001; 10,000,000 shares authorized, 0 shares issued and outstanding
Common stock, par value $0.001; 150,000,000 shares authorized 52,169,945 shares issued $ 52,170 $ 52,170
Additional paid-in capital 66,080,883 66,019,681
Treasury shares, at cost; 670,609 and 190,000 shares, respectively (128,231) (38,152)
Accumulated deficit (61,368,426) (60,538,568)
TOTAL SHAREHOLDERS’ EQUITY 4,636,396 5,495,131
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 4,694,884 $ 5,559,903
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Jun. 30, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 150,000,000 150,000,000
Common stock, shares issued 52,169,945 52,169,945
Treasury stock, at cost 670,609 190,000
Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Income Statement [Abstract]        
OIL AND GAS REVENUE $ 33,887 $ 114,122 $ 82,147 $ 216,093
EXPENSES OF OPERATIONS        
Lease operating expense and severance tax 26,973 30,735 37,361 59,648
General and administrative expense $ 474,865 $ 276,703 $ 831,135 732,576
Impairment of oil and gas properties 677,051
Depreciation and depletion $ 24,251 $ 146,172 $ 49,264 278,075
Total operating expenses 526,089 453,610 917,760 1,747,350
Loss from operations (492,202) (339,488) (835,613) (1,531,257)
OTHER INCOME        
Interest income, net 1,796 4,989 5,756 10,445
Total other income 1,796 4,989 5,756 10,445
Net loss before taxes $ (490,406) (334,499) $ (829,857) (1,520,812)
Income tax expense 17,309 18,060
Net loss $ (490,406) $ (351,808) $ (829,857) $ (1,538,872)
Basic and diluted loss per common share $ (0.01) $ (0.01) $ (0.02) $ (0.03)
Based and diluted weighted average common shares outstanding 51,499,336 52,169,945 51,572,931 52,169,945
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (829,857) $ (1,538,872)
Adjustments to reconcile net loss to net cash used in operations:    
Depreciation and depletion 49,264 278,075
Accretion of asset retirement obligation $ 276 1,053
Impairment of oil and gas properties 677,051
Stock-based compensation $ 61,201 39,758
Changes in operating assets and liabilities:    
Decrease in insurance receivable 8,583,869
Decrease (Increase) in prepaid expenses and other current assets $ 12,007 (91,804)
Decrease in accounts payable, contingent liabilities and accrued expenses $ (6,560) (455,178)
Decrease in settlement payable (7,000,000)
Decrease in accrued legal costs (1,693,869)
Net cash used in operating activities $ (713,669) (1,199,917)
CASH FLOWS FROM INVESTING ACTIVITIES    
Cash paid for oil and gas development costs (71,010) (192,856)
Proceeds from sale of mineral interest   56,705
Proceeds from escrow receivables   59,412
Net cash used in investing activities (71,010) $ (76,739)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payments for the acquisition of treasury shares (90,079)
Net cash used in financing activities (90,079)
Decrease in cash (874,758) $ (1,276,656)
Cash, beginning of period 2,123,520 4,052,212
Cash, end of period $ 1,248,762 $ 2,775,556
SUPPLEMENTAL CASH FLOW INFORMATION    
Interest paid
Income taxes paid $ 18,060
Basis of Presentation and Significant Accounting Policies
6 Months Ended
Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Significant Accounting Policies

NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

 

The accompanying unaudited consolidated financial statements of Houston American Energy Corp., a Delaware corporation (the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for a complete financial presentation. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included in the accompanying unaudited consolidated financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year.

 

These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes, which are included as part of the Company’s Form 10-K for the year ended December 31, 2015.

 

Going Concern

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the date of these consolidated financial statements. The Company has incurred continuing losses, negative operating cash flow and declining cash balances since 2011, including negative operating cash flow of $713,669 for the six months ended June 30, 2016. These conditions, together with continued low oil and natural gas prices and financial commitments the Company has made relative to its Colombian properties, raise substantial doubt as to the Company’s ability to continue as a going concern. These financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

To address these concerns, the Company may seek additional financing or may consider divestiture of certain assets. There can be no assurance that the Company will be successful in its efforts.

 

Consolidation

 

The accompanying consolidated financial statements include all accounts of the Company and its subsidiaries (HAEC Louisiana E&P, Inc., HAEC Oklahoma E&P, Inc. and HAEC Caddo Lake E&P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation.

 

Accounting Principles and Use of Estimates

 

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews its estimates, including those related to such potential matters as litigation, environmental liabilities, income taxes and the related valuation allowance, determination of proved reserves of oil and gas and asset retirement obligations. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates.

 

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to a concentration of credit risk include cash, cash equivalents and any marketable securities. The Company had cash deposits of $944,001 in excess of the FDIC’s current insured limit on interest bearing accounts of $250,000 as of June 30, 2016. The Company has not experienced any losses on its deposits of cash and cash equivalents.

 

Loss per Share

 

Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares that then shared in the earnings of the Company. The Company’s only outstanding potentially dilutive securities are options and warrants. Using the treasury stock method, outstanding ‘in-the-money’ options would have increased our diluted weighted average shares outstanding by approximately 55,600 and 55,600 shares, respectively, for the three and six months ended June 30, 2016 and by approximately 55,600 and 55,600 shares, respectively, for the three and six months ended June 30, 2015; however, due to losses during these periods, these options were excluded from the diluted earnings per share calculation because their effect would have been anti-dilutive.

 

Subsequent Events

 

The Company has evaluated all transactions from June 30, 2016 through the financial statement issuance date for subsequent event disclosure consideration.

 

Recent Accounting Pronouncements

 

No accounting standards or interpretations issued recently are expected to a have a material impact on our consolidated financial position, operations or cash flows.

Escrow Receivable
6 Months Ended
Jun. 30, 2016
ESCROW RECEIVABLE [Abstract]  
Escrow Receivable

NOTE 2 – ESCROW RECEIVABLE

 

At June 30, 2016 and December 31, 2015, the Company’s balance sheets reflected the following current escrow receivables relating to various oil and gas properties previously held by the Company:

 

    June 30, 2016     December 31, 2015  
             
HDC LLC & HL LLC 15% Escrow   $ 251,125       251,125  
HDC LLC & HL LLC 5% Contingency     10,891       10,891  
TOTAL   $ 262,016     $ 262,016  

Oil and Gas Properties
6 Months Ended
Jun. 30, 2016
Oil and Gas Property [Abstract]  
Oil and Gas Properties

NOTE 3 – OIL AND GAS PROPERTIES

 

During the six months ended June 30, 2016, the Company invested $71,010 for the development of oil and gas properties, consisting of: (1) preparation and evaluation costs in Colombia of $67,966, and (2) costs on U.S. properties of $3,044. Of the amount invested, the Company capitalized $3,044 to oil and gas properties subject to amortization, and $67,966 to oil and gas properties not subject to amortization.

 

During the six months ended June 30, 2015, the Company disposed of a portion of its interest in three non-producing domestic prospects for proceeds of $56,705. Proceeds received from disposal of such interests were accounted for as a reduction in capitalized cost of oil and gas properties.

 

Geographical Information

 

The Company currently has operations in two geographical areas, the United States and Colombia. Revenues for the six months ended June 30, 2016 and long lived assets (net of depletion, amortization, and impairments) as of June 30, 2016 attributable to each geographical area are presented below:

 

    Six Months Ended June 30, 2016     As of June 30, 2016  
    Revenues     Long Lived Assets, Net  
United States   $ 82,147     $ 973,349  
Colombia           2,181,340  
Total   $ 82,147     $ 3,154,689  

Stock-Based Compensation Expense
6 Months Ended
Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Expense

NOTE 4 – STOCK-BASED COMPENSATION EXPENSE

 

The Company periodically grants options to employees, directors and consultants under the Company’s 2005 Stock Option Plan and the Company’s 2008 Equity Incentive Plan (together, the “Plans”). The Company is required to make estimates of the fair value of the related instruments and recognize expense over the period benefited, usually the vesting period.

 

Stock Option Activity

 

In March 2016, options to purchase an aggregate of 20,000 shares were granted to non-employee directors. The options were granted in connection with service on an ad hoc board committee and vest on the earlier of August 15, 2016, the termination of the committee or termination of service on the committee due to death or disability. The options have a five-year life and an exercise price of $0.1982 per share. The options were valued on the date of grant at $2,896 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 1.49%; (2) expected life in years of 4.99; (3) expected stock volatility of 106.95%; (4) expected dividend yield of 0%; and (5) forfeiture rate of 15.22%. The Company determined the options qualify as ‘plain vanilla’ under the provisions of SAB 107 and the simplified method was used to estimate the expected option life.

 

In June 2016, options to purchase an aggregate of 800,000 shares were granted to non-employee directors. The options, which included a one-time supplemental grant to purchase an aggregate of 600,000 shares, were granted in connection with service on the board of directors. 200,000 of the options granted to non-employee directors vested 20% on the grant date and vest as to the remaining 80% nine months from the grant date, have a ten-year life and have an exercise price of $0.2201 per share. Those option grants were valued on the date of grant at $32,640 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 1.26%; (2) expected life in years of 5.28; (3) expected stock volatility of 108.5%; (4) expected dividend yield of 0%; and (5) forfeiture rate of 15.01%. 600,000 of the options granted to non-employee directors vest (i) 50% on the earlier of June 7, 2017 or the day preceding the next annual shareholders meeting at which directors are elected, (ii) 50% on the earlier of June 7, 2018 or the day preceding the second annual shareholders meeting (after the grant date) at which directors are to be elected, and (iii) in the event that the Company consummates a transaction(s) (after the option grant date) in the nature of a sale of shares of equity securities for cash or assets resulting in a net addition(s) to the Company’s stockholders’ equity of not less than $2 million, all unvested options vest in full. Those options have a ten-year life and have an exercise price of $0.2201 per share. Those option grants were valued on the date of grant at $83,421 using the Black-Scholes option-pricing model with the following parameters: (1) risk-free interest rate of 1.26% (2) expected life in years of 5.28, and (3) expected stock volatility of 108.5%. The Company determined the option qualifies as ‘plain vanilla’ under the provisions of SAB 107 and the simplified method was used to estimate the expected option life.

 

A summary of stock option activity and related information for the six months ended June 30, 2016 is presented below:

 

    Options     Weighted-Average Exercise Price     Aggregate Intrinsic Value  
                         
Outstanding at January 1, 2016     4,432,165     $ 2.47       7,260  
Granted     820,000       0.22       436  
Expired/Forfeited     (20,000 )     4.10          
Exercised     -       -          
Outstanding at June 30, 2016     5,232,165     $ 2.11     $ 7,696  
Exercisable at June 30, 2016     3,652,165     $ 2.92     $ -  

 

Shares available for issuance under the Plans as of June 30, 2016 totaled 767,835 shares.

 

Share-Based Compensation Expense

 

During the three and six months ended June 30, 2016, the Company recognized $38,334 and $61,201, respectively, of stock compensation expense attributable to the amortization of unrecognized stock-based compensation.

 

As of June 30, 2016, total unrecognized stock-based compensation expense related to non-vested stock options was $190,656. The unrecognized expense is expected to be recognized over a weighted average period of 1.55 years and the weighted average remaining contractual term of the outstanding options and exercisable options at June 30, 2016 is 6.85 years and 5.72 years, respectively.

 

The following table reflects share-based compensation recorded by the Company for the three months ended June 30, 2016 and 2015:

 

    Three Months Ended
June 30,
 
    2016     2015  
                 
Share-based compensation expense included in general and administrative expense   $ 38,334     $ 19,962  
Earnings per share effect of share-based compensation expense – basic and diluted   $ (0.00 )   $ (0.00 )

 

The following table reflects share-based compensation recorded by the Company for the six months ended June 30, 2016 and 2015:

 

    Six Months Ended
June 30,
 
    2016     2015  
                 
Share-based compensation expense included in general and administrative expense   $ 61,201     $ 39,758  
Earnings per share effect of share-based compensation expense – basic and diluted   $ (0.00 )   $ (0.00 )

Commitments and Contingencies
6 Months Ended
Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

NOTE 5 - COMMITMENTS AND CONTINGENCIES

 

Lease Commitment

 

The Company leases office facilities under an operating lease agreement that expires on May 31, 2017. As of June 30, 2016, the lease agreement requires future payments as follows:

 

Year   Amount  
2016     48,018  
2017     40,479  
Total   $ 88,497  

 

For the three and six months ended June 30, 2016, the total base rental expense was $25,627 and $51,056, respectively. The Company does not have any capital leases or other operating lease commitments.

Taxes
6 Months Ended
Jun. 30, 2016
Income Tax Disclosure [Abstract]  
Taxes

NOTE 6 – TAXES

 

The Company has estimated that its effective tax rate for U.S. purposes will be zero for 2016, and consequently, recorded no U.S. income tax liability or tax expense for the three and six months ended June 30, 2016.

 

During the three and six months ended June 30, 2016, significant temporary differences between financial statement net loss and estimated taxable income related primarily to the stock compensation expense recognized for book purposes during the period.

Basis of Presentation and Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern

Going Concern

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the date of these consolidated financial statements. The Company has incurred continuing losses, negative operating cash flow and declining cash balances since 2011, including negative operating cash flow of $713,669 for the six months ended June 30, 2016. These conditions, together with continued low oil and natural gas prices and financial commitments the Company has made relative to its Colombian properties, raise substantial doubt as to the Company’s ability to continue as a going concern. These financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

To address these concerns, the Company may seek additional financing or may consider divestiture of certain assets. There can be no assurance that the Company will be successful in its efforts.

Consolidation

Consolidation

 

The accompanying consolidated financial statements include all accounts of the Company and its subsidiaries (HAEC Louisiana E&P, Inc., HAEC Oklahoma E&P, Inc. and HAEC Caddo Lake E&P, Inc.). All significant inter-company balances and transactions have been eliminated in consolidation.

Accounting Principles and Use of Estimates

Accounting Principles and Use of Estimates

 

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing financial statements, management makes informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management reviews its estimates, including those related to such potential matters as litigation, environmental liabilities, income taxes and the related valuation allowance, determination of proved reserves of oil and gas and asset retirement obligations. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates.

Concentration of Credit Risk

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to a concentration of credit risk include cash, cash equivalents and any marketable securities. The Company had cash deposits of $944,001 in excess of the FDIC’s current insured limit on interest bearing accounts of $250,000 as of June 30, 2016. The Company has not experienced any losses on its deposits of cash and cash equivalents.

Loss per Share

Loss per Share

 

Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares that then shared in the earnings of the Company. The Company’s only outstanding potentially dilutive securities are options and warrants. Using the treasury stock method, outstanding ‘in-the-money’ options would have increased our diluted weighted average shares outstanding by approximately 55,600 and 55,600 shares, respectively, for the three and six months ended June 30, 2016 and by approximately 55,600 and 55,600 shares, respectively, for the three and six months ended June 30, 2015; however, due to losses during these periods, these options were excluded from the diluted earnings per share calculation because their effect would have been anti-dilutive.

Subsequent Events

Subsequent Events

 

The Company has evaluated all transactions from June 30, 2016 through the financial statement issuance date for subsequent event disclosure consideration.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

No accounting standards or interpretations issued recently are expected to a have a material impact on our consolidated financial position, operations or cash flows.

Escrow Receivable (Tables)
6 Months Ended
Jun. 30, 2016
ESCROW RECEIVABLE [Abstract]  
Schedule of Escrow Receivables Relating to Oil and Gas Properties

At June 30, 2016 and December 31, 2015, the Company’s balance sheets reflected the following current escrow receivables relating to various oil and gas properties previously held by the Company:

 

    June 30, 2016     December 31, 2015  
             
HDC LLC & HL LLC 15% Escrow   $ 251,125       251,125  
HDC LLC & HL LLC 5% Contingency     10,891       10,891  
TOTAL   $ 262,016     $ 262,016  

Oil and Gas Properties (Tables)
6 Months Ended
Jun. 30, 2016
Oil and Gas Property [Abstract]  
Schedule of Revenues and Long Lived Assets Attributable to Geographical Area

The Company currently has operations in two geographical areas, the United States and Colombia. Revenues for the six months ended June 30, 2016 and long lived assets (net of depletion, amortization, and impairments) as of June 30, 2016 attributable to each geographical area are presented below:

 

    Six Months Ended June 30, 2016     As of June 30, 2016  
    Revenues     Long Lived Assets, Net  
United States   $ 82,147     $ 973,349  
Colombia           2,181,340  
Total   $ 82,147     $ 3,154,689  

Stock-Based Compensation Expense (Tables)
6 Months Ended
Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of Stock Option Activity

A summary of stock option activity and related information for the six months ended June 30, 2016 is presented below:

 

    Options     Weighted-Average Exercise Price     Aggregate Intrinsic Value  
                         
Outstanding at January 1, 2016     4,432,165     $ 2.47       7,260  
Granted     820,000       0.22       436  
Expired/Forfeited     (20,000 )     4.10          
Exercised     -       -          
Outstanding at June 30, 2016     5,232,165     $ 2.11     $ 7,696  
Exercisable at June 30, 2016     3,652,165     $ 2.92     $ -  

Share-based Compensation Expense

The following table reflects share-based compensation recorded by the Company for the three months ended June 30, 2016 and 2015:

 

    Three Months Ended
June 30,
 
    2016     2015  
                 
Share-based compensation expense included in general and administrative expense   $ 38,334     $ 19,962  
Earnings per share effect of share-based compensation expense – basic and diluted   $ (0.00 )   $ (0.00 )

 

The following table reflects share-based compensation recorded by the Company for the six months ended June 30, 2016 and 2015:

 

    Six Months Ended
June 30,
 
    2016     2015  
                 
Share-based compensation expense included in general and administrative expense   $ 61,201     $ 39,758  
Earnings per share effect of share-based compensation expense – basic and diluted   $ (0.00 )   $ (0.00 )

Commitments and Contingencies (Tables)
6 Months Ended
Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Payments Under Lease Agreement

The Company leases office facilities under an operating lease agreement that expires on May 31, 2017. As of June 30, 2016, the lease agreement requires future payments as follows:

 

Year   Amount  
2016     48,018  
2017     40,479  
Total   $ 88,497  

Basis of Presentation and Significant Accounting Policies (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Net cash used in operations     $ 713,669 $ 1,199,917
Cash deposits in excess of the FDIC's current insured limit $ 944,001   944,001  
Current insured limit on interest bearing accounts $ 250,000   $ 250,000  
Options [Member]        
Antidilutive securities excluded from computation of earnings per share 55,600 55,600 55,600 55,600
Escrow Receivable - Schedule of Escrow Receivables Relating to Oil and Gas Properties (Details) - USD ($)
Jun. 30, 2016
Dec. 31, 2015
Restricted Cash and Cash Equivalents Items [Line Items]    
Escrow receivable - Total $ 262,016 $ 262,016
HDC LLC and HL LLC 15% Escrow [Member]    
Restricted Cash and Cash Equivalents Items [Line Items]    
Escrow receivable - Total $ 251,125 $ 251,125
Escrow receivables, percentage 15.00% 15.00%
HDC LLC & HL LLC 5% Contingency [Member]    
Restricted Cash and Cash Equivalents Items [Line Items]    
Escrow receivable - Total $ 10,891 $ 10,891
Escrow receivables, percentage 5.00% 5.00%
Oil and Gas Properties (Details Narrative)
6 Months Ended
Jun. 30, 2016
USD ($)
Segment
Jun. 30, 2015
USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]    
Investment in development of oil and gas properties $ 71,010 $ 192,856
Proceeds from disposal of a portion of its interest in three non-producing domestic prospects $ 56,705  
Number of geographical areas in which entity operates | Segment 2  
Colombia [Member] | Reportable Geographical Components [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Preparation and evaluation costs $ 67,966  
Development costs not subject to amortization 67,966  
United States [Member] | Reportable Geographical Components [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Preparation and evaluation costs 3,044  
Development costs subject to amortization $ 3,044  
Oil and Gas Properties - Schedule of Revenues and Long Lived Assets Attributable to Geographical Area (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Revenues $ 33,887 $ 114,122 $ 82,147 $ 216,093
Long Lived Assets, Net 3,154,689   3,154,689  
United States [Member]        
Revenues     82,147  
Long Lived Assets, Net 973,349   $ 973,349  
Colombia [Member]        
Revenues      
Long Lived Assets, Net $ 2,181,340   $ 2,181,340  
Stock-Based Compensation Expense (Details Narrative) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2016
Mar. 31, 2016
Jun. 30, 2016
Jun. 30, 2016
Jun. 30, 2015
Number of stock option shares granted       820,000  
Options granted exercise price of per share       $ 0.22  
Shares available for issuance 767,835   767,835 767,835  
Stock compensation amortized expense     $ 38,334 $ 61,201 $ 39,758
Unrecognized share-based compensation expense related to non-vested stock options $ 190,656   $ 190,656 $ 190,656  
Weighted average period for recognition of compensation expense     1 year 6 months 18 days    
Weighted average remaining contractual term of the outstanding options     6 years 10 months 6 days    
Weighted average remaining contractual term of the exercisable options     5 years 8 months 19 days    
Non Employee Directors [Member]          
Number of stock option shares granted 800,000 20,000      
Stock options vested date   Aug. 15, 2016      
Option vesting period 10 years 5 years   10 years  
Options granted exercise price of per share $ 0.2201 $ 0.1982   $ 0.2201  
Total value of options granted $ 32,640 $ 2,896   $ 83,421  
Risk free interest rate 1.26% 1.49%   1.26%  
Stock option expected life 5 years 3 months 11 days 4 years 11 months 27 days   5 years 3 months 11 days  
Expected stock volatility 108.50% 106.95%   108.50%  
Expected dividend yield 0.00% 0.00%      
Forfeiture rate 15.01% 15.22%      
Non Employee Directors [Member] | Maximum [Member]          
Sale of shares of equity securities for cash       $ 2,000,000  
Non Employee Directors [Member] | Share-based Compensation Award, Tranche One [Member]          
Number of stock option shares granted 600,000        
Stock option vesting percentage 80.00%        
Non Employee Directors [Member] | Share-based Compensation Award, Tranche Two [Member]          
Number of stock option shares granted 200,000        
Stock option vesting percentage 20.00%        
Non Employee Directors [Member] | June 7, 2017 [Member]          
Stock option vesting percentage 50.00%        
Non Employee Directors [Member] | June 7, 2018 [Member]          
Stock option vesting percentage 50.00%        
Stock-Based Compensation Expense - Summary of Stock Option Activity (Details)
6 Months Ended
Jun. 30, 2016
USD ($)
$ / shares
shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Outstanding at beginning of the period | shares 4,432,165
Granted | shares 820,000
Exprired/Forfeited | shares (20,000)
Exercised | shares
Outstanding at end of the period | shares 5,232,165
Exercisable at end of the period | shares 3,652,165
Outstanding at beginning of the period | $ / shares $ 2.47
Granted | $ / shares 0.22
Exprired/Forfeited | $ / shares $ 4.10
Exercised | $ / shares
Outstanding at end of the period | $ / shares $ 2.11
Exercisable at end of the period | $ / shares $ 2.92
Outstanding at end of the period | $ $ 7,260
Granted | $ 436
Outstanding at end of the period | $ $ 7,696
Stock-Based Compensation Expense - Share-based Compensation Expense (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based compensation expense included in general and administrative expense $ 38,334   $ 61,201 $ 39,758
General and Administrative Expense [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Share-based compensation expense included in general and administrative expense $ 38,334 $ 19,962 $ 61,201 $ 39,758
Earnings per share effect of share-based compensation expense - basic and diluted $ 0.00 $ 0.00 $ 0.00 $ 0.00
Commitments and Contingencies (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]    
Operating lease agreement expiration date   May 31, 2017
Total rental expense $ 25,627 $ 51,056
Commitments and Contingencies - Schedule of Future Payments Under Lease Agreement (Details)
Jun. 30, 2016
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2016 $ 48,018
2017 40,479
Total $ 88,497
Taxes (Details Narrative)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2016
Income Tax Disclosure [Abstract]    
Effective tax rate for US purposes 0.00% 0.00%