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Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2021
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

Note 6 - Asset Retirement Obligations

 

The Company’s asset retirement obligations represent the estimated present value of the estimated cash flows the Company will incur to plug, abandon and remediate its producing properties at the end of their productive lives, in accordance with applicable state laws. Market risk premiums associated with asset retirement obligations are estimated to represent a component of the Company’s credit-adjusted risk-free rate that is utilized in the calculations of asset retirement obligations.

 

 

 

 

The Company’s asset retirement obligation transactions during the years ended December 31, 2021 and 2020 are summarized in the table below.

 

               
   For the Year Ended December 31, 
   2021   2020 
         
Asset retirement obligations, beginning of period  $15,364,217   $5,788,280 
      Liabilities assumed in acquisitions   6,117,709    9,508,484 
      Revision to estimates   (2,055,806)   (862,405)
      Accretion expense   1,214,479    929,858 
Asset retirement obligation, end of period  $20,640,599   $15,364,217