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Asset Retirement Obligations
 3 Months Ended
Mar. 31, 2022
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 activity is as follows for the quarter ended March 31, 2022:

 

      
Asset retirement obligations, beginning of period  $20,640,599 
Accretion expense   330,000 
Asset retirement obligation, end of period  $20,970,599