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 7).

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 up to $325,000 to a consultant of the Company, $200,000 of which was purchased in the first quarter of 2020 and the final $125,000 was purchased in the third quarter of 2020.

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.

On April 6, 2020 the Company, through its wholly owned subsidiary, Empire Texas, LLC, purchased oil and natural gas properties in Texas (see Note 5).

During the nine months ended September 30, 2020, NYMEX strip prices experienced significant volatility, 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 for the quarter ended March 31, 2020. These impairment charges are included in impairments of long-lived assets on the consolidated statement of operations for the nine months ended September 30, 2020. The Company did not recognize an impairment of proved oil and natural gas properties during the nine months ended September 30, 2019.

The aggregate capitalized costs of oil and natural gas properties as of September 30, 2020, are as follows:

Proved producing wells	$	5,284,041
Proved undeveloped		2,232,458
Lease, well and gathering equipment		1,680,692
Asset retirement obligation		14,988,534
Unproved leasehold costs		492,741
Gross capitalized costs		24,678,466
Less: accumulated depreciation, depletion and impairment		(5,172,138	)
	$	19,506,328

Other property and equipment consists of office furniture and equipment.

Other property and equipment, at cost	$	14,456
Less: accumulated depreciation		(4,184	)
Oher property and equipment, net	$	10,272