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Note 3 - Net Profits Interest Divestiture

12 Months Ended

Dec. 31, 2020

Net Profits Interests Divestiture [Text Block]

Net Profits Interest Divestiture

On September 30, 2020, the Partnership and affiliates of its General Partner closed the divestiture of our Hugoton net profits interest located in Texas County, Oklahoma and Stevens County, Kansas to a third party. In accordance with the full cost method of accounting, as the divestiture did not represent a significant portion of the Partnership’s reserves, gross divestiture proceeds of $5.7 million were credited to the oil and natural gas properties full cost pool as of December 31, 2020. Transaction costs of $0.5 million are included in general and administrative expenses on the consolidated income statement for the year ended December 31, 2020. Holdbacks of $0.2 million are included in trade and other receivables on the consolidated balance sheet as of December 21, 2020. Final net proceeds from the sale are subject to customary holdbacks and post-closing adjustments.