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Property
 3 Months Ended
Mar. 31, 2022
Property, Plant and Equipment [Abstract]  
Property

Note 3 – Property

 

The Company follows the successful efforts method of accounting for its oil and natural gas properties. Under this method, costs to acquire oil and natural gas properties and costs incurred to drill and equip development and exploratory wells are capitalized. Exploration costs are charged to operations as incurred. Upon sale or retirement of oil and natural gas properties, the costs and related accumulated depreciation, depletion and amortization are eliminated from the accounts and the resulting gain or loss is recognized.

 

Costs incurred to maintain wells and related equipment and lease and well operating costs are charged to expense as incurred.

 

Depletion is calculated on a units-of-production basis at the field level based on total proved developed reserves.

 

Proved Properties and Impairments

 

Proved oil and natural gas properties are reviewed for impairment at least annually, or as indicators of impairment arise. There were no indicators of impairment in the current quarter or for the same quarter in the previous period.

 

In May 2021 the Company purchased oil and natural gas properties in New Mexico (see Note 4).

 

The aggregate capitalized costs of oil and natural gas properties as of March 31, 2022 are as follows:

Proved producing wells  $20,977,026 
Proved undeveloped   2,724,966 
Lease and well equipment   5,448,952 
Asset retirement obligation   18,188,033 
Gross capitalized costs   47,338,977 
Accumulated Depreciation, Depletion, Amortization     
and Impairment   (17,926,748)
Net capitalized costs  $29,412,229 

 

 

Other property and equipment consists of operating lease assets, vehicles, office furniture, and equipment with lives ranging from three to five years.

 

      
Other property and equipment, at cost  $1,559,064 
Less: accumulated depreciation   (334,745)
Other property and equipment, net  $1,224,319