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Property
 3 Months Ended
Mar. 31, 2023
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 have been no indicators of impairment in any period disclosed in these financial statements.

  

Aggregate capitalized costs of oil and natural gas properties are as follows:

   March 31, 2023   December 31, 2022 
           
Proved properties  $58,651,754   $52,831,131 
Unproved properties   2,901,047    2,865,556 
Work in process   4,574,733    8,289,652 
Gross capitalized costs   66,127,534    63,986,339 
           
Depreciation, depletion, amortization and impairment   (20,679,739)   (20,116,696)
Total oil and gas properties, net  $45,447,795   $43,869,643 

 

 

Depletion and amortization expense for the three months ended March 31, 2023 and 2022 was approximately $563,000 and $401,000, respectively.

 

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

 

 

   March 31, 2023   December 31, 2022 
           
Other property and equipment, at cost  $1,812,095   $1,878,325 
Less: accumulated depreciation   (359,958)   (436,796)
Other property and equipment, net  $1,452,137   $1,441,529 

  

Depreciation expense for the three months ended March 31, 2023 and 2022 was approximately $59,000 and $34,000, respectively.