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Property
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property

Note 3 – Property

  

The capitalized costs of oil and natural gas properties as of December 31, 2022 and 2021 are as follows:

   2022   2021 
         
Proved Properties  $52,831,131   $44,189,360 
Unproved Properties   2,865,556    2,724,966 
Work in process   8,289,652     — 
Gross capitalized costs   63,986,339    46,914,326 
Depreciation, Depletion, Amortization and Impairment   (20,116,696)   (17,525,918)
Total Oil and Gas Properties, Net  $43,869,643   $29,388,408 

  

The Company assesses its oil and gas properties for impairment when circumstances indicate the carrying value may be greater than its estimated future net cash flows. In 2022, estimated future cash flows from the Company’s properties in Louisiana were less than the net book value. As a result, the Company recorded a $936,000 impairment expense in 2022.

 

In April 2022, the Company purchased working interests of oil and natural gas properties primarily located in the Landa field in North Dakota and assumed the role of operator. The Company paid approximately $1.4 million for eight producing properties, two properties with behind-pipe reserves, and related lease and well equipment. The Company allocated 80% of the acquisition cost to leasehold costs and the remaining 20% to related lease and well equipment. Non-cash asset retirement obligations were assumed of $233,659. The acquisition was accounted for as an asset acquisition. The Company purchased additional oil and gas properties in 2022 totaling $1.3 million. In May 2021 the Company purchased oil and natural gas properties in New Mexico (see Note 4).

 

Other property and equipment consists of operating lease assets, vehicles, office furniture, and equipment with lives ranging from three to five years. The capitalized costs of other property and equipment as of December 31, 2022 and 2021 are as follows:

   2022   2021 
           
Other property and equipment, at cost  $1,878,325   $1,547,325 
Less: accumulated depreciation   (436,796)   (258,714)
Oher property and equipment, net  $1,441,529   $1,288,611