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Property and Equipment
 3 Months Ended
Sep. 30, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment 
 September 30,
2021		June 30,
2021
Oil and natural gas properties:  
Property costs subject to amortization$129,402,638 $129,123,227 
Less: Accumulated depreciation, depletion, amortization and impairment (a)(72,033,235)(70,607,367)
Oil and natural gas properties, net$57,369,403 $58,515,860 
Other property and equipment:  
Furniture, fixtures, and office equipment, at cost$154,731 $154,731 
Less: Accumulated depreciation (b)(145,176)(144,092)
Other property and equipment, net$9,555 $10,639 

 (a) Depletion on oil and natural gas properties was $1,425,868 for the quarter ended September 30, 2021, and $1,247,659 for the quarter ended June 30, 2021. There was no impairment on oil and natural gas properties for the quarter ended September 30, 2021 or the quarter ended June 30, 2021.
(b) Depreciation was $1,084 for the quarter ended September 30, 2021, and $1,570 for the quarter ended June 30, 2021.

As of September 30, 2021, all oil and natural gas property costs were subject to amortization.
During the three months ended September 30, 2021 and 2020, the Company incurred capital expenditures of $0.3 million and $0.2 million, respectively.
On May 7, 2021, the Company acquired an approximate 17% working interest and a 14% revenue interest in non-operated oil and natural gas assets in the Barnett Shale from Tokyo Gas Americas for $18.3 million, net of preliminary purchase price adjustments, and also recognized $2.8 million in non-cash asset retirement obligations (the “Barnett Shale Acquisition”). The Company accounted for this transaction as an asset acquisition with an effective date of January 1, 2021.
In accordance with the FASB’s authoritative guidance on asset acquisitions, the Company allocated the costs of the Barnett Shale Acquisition to the assets acquired and liabilities assumed based on a relative fair value basis of the assets acquired and
liabilities assumed, with no recognition of goodwill or bargain purchase gain recorded. Incremental legal and professional fees related directly to the acquisition were capitalized as part of the acquisition cost. The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Fair value measurements also utilize market assumptions of market participants.
The Company uses the full cost method of accounting for its investment in oil and natural gas properties. All costs of acquisition, exploration, and development of oil and natural gas reserves are capitalized as the cost of oil and natural gas and properties when incurred. To the extent capitalized costs of evaluated oil and natural gas properties, net of accumulated depletion, exceed the discounted future net revenues of proved oil and natural gas reserves, net of deferred taxes, such excess capitalized costs result in an impairment charge.
At September 30, 2021, the ceiling test value of the Company’s reserves was calculated based on the first-day-of-the-month average for the 12-months ended September 30, 2021 of the West Texas Intermediate (WTI) crude oil spot price of $57.64
per barrel and Henry Hub natural gas spot price of $2.97 per MMBtu, adjusted by market differentials by field. The net price per barrel of NGLs was $23.04, which was based on historical prices received as NGLs do not have any single comparable reference index price. Using these prices, the Company’s net book value of oil and natural gas properties at September 30, 2021 was below the current ceiling.
At September 30, 2020, the ceiling test value of the Company’s reserves was calculated based on the first-day-of-the-month average for the 12-months ended September 30, 2020 of the WTI crude oil spot price of $43.63 per barrel, adjusted by market differentials by field, and the net price per barrel of NGLs was $7.85. Using these prices, the Company’s net book value of oil and natural gas properties at September 30, 2020 exceeded the current ceiling, and the Company recorded a $9.6 million ceiling test impairment charge. The ceiling test impairment was driven by a decrease in the first-day-of-the-month average price for crude oil used in the ceiling test calculation and adverse changes in differentials received in the Delhi and Hamilton Dome fields.