In March 2019, the Company, through its subsidiary, Empire North Dakota, LLC, purchased oil and natural gas properties in Montana and North Dakota (See Note 5).

On January 27, 2020 the Company, through its wholly owned subsidiary, Empire North Dakota, LLC, entered into a Bill of Sale and Assignment to purchase lease interests in approximately 4,936 acres in Montana for $500,000.

On February 10, 2020 the Company, through its wholly owned subsidiary, Empire North Dakota, LLC, sold overriding royalty interests for leases it owned in Montana for $325,000 to a consultant of the Company. As of March 31, 2020 $200,000 of the sale had been received with the balance pending completion of title work.

On February 17, 2020 the Company, through its wholly owned subsidiary, Empire North Dakota, LLC, sold all of its interest in leases of approximately 337 acres in Montana for $1,010,400.

During the three months ended March 31, 2020, NYMEX strip prices declined significantly as compared to December 31, 2019, resulting in a significant decrease in value of the Company’s economically recoverable proved oil and natural gas reserves. As such, the carrying amount of the Company’s proved oil and natural gas properties exceeded the expected undiscounted future net cash flows for certain leases, resulting in impairment charges against earnings of $800,452. These impairment charges are included in impairments of long-lived assets on the consolidated statement of operations for the three months ended March 31, 2020. The Company did not recognize an impairment of proved oil and natural gas properties during the three months ended March 31, 2019.

The aggregate capitalized costs of oil and natural gas properties as of March 31, 2020, are as follows:

Proved producing wells	$	3,832,783
Proved undeveloped		2,232,458
Lease and well equipment		1,112,045
Asset retirement obligation		5,480,050
Unproved leasehold costs		492,480
Gross capitalized costs		13,149,816
Less: accumulated depreciation, depletion and impairment		(4,433,025	)
	$	8,716,791

Other property and equipment consists of office furniture and equipment.

Oher property and equipment, at cost	$	14,456
Less: accumulated depreciation		(2,615	)
Oher property and equipment, net	$	11,841