XML 20 R9.htm IDEA: XBRL DOCUMENT
v3.23.3

Property | 9 Months Ended
--- | ---
Sep. 30, 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 activities. Under this method, costs to acquire oil and natural gas properties and costs incurred to drill and equip development and exploratory wells are deferred until exploration and completion results are evaluated. Exploration drilling costs are expensed if recoverable reserves are not found. 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. On August 9, 2023, the Company and a subsidiary of Energy Evolution Master Fund, Ltd., a related party, collectively acquired additional working interests in certain of the Company’s New Mexico properties. The Company paid $2.1 million in cash and acquired 10% of the total acquired working interests in the transaction. The subsidiary of Energy Evolution Master Fund, Ltd. acquired the other 90% of the acquired working interest (“EEF Interest”). The Company has a one-year option to acquire the EEF Interest for $5 million, subject to adjustments (“Purchase Option”). In exchange for the Purchase Option, the Company issued 67,000 shares of common stock valued at approximately $601,000 and reflected in Utility and Other Deposits. The Company has the right to extend the initial one-year Purchase Option period for two successive one-year periods by agreeing to issue an additional 42,000 shares of common stock prior to the end of the one-year period then in effect. The Purchase Option may be exercised by the Company at any time during the one-year period then in effect by sending written notice to Energy Evolution Master Fund, Ltd. prior to the expiration of such one-year period. 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 during the nine months ended September 30, 2023. Aggregate capitalized costs of oil and natural gas properties are as follows: Schedule of aggregate capitalized costs oil and natural gas properties
|  | September 30, 2023 |  |  | December 31, 2022 |
Proved properties |  | $ | 69,756,380 |  |  | $ | 52,831,131 |
Unproved properties |  |  | 3,158,299 |  |  |  | 2,865,556 |
Work in process |  |  | 1,706,199 |  |  |  | 8,289,652 |
Gross capitalized costs |  |  | 74,620,878 |  |  |  | 63,986,339 |
Depreciation, depletion, amortization and impairment |  |  | (22,014,050 | ) |  |  | (20,116,696 | )
Total oil and gas properties, net |  | $ | 52,606,828 |  |  | $ | /43,869,643 |
Depletion and amortization expense for the three months ended September 30, 2023 and 2022 was approximately $677,000 and $500,000, respectively. Depletion and amortization expense for the nine months ended September 30, 2023 and 2022 was approximately $1,897,000 and $1,331,000, respectively. Other property and equipment consists of operating lease assets, vehicles, office furniture, and equipment with lives ranging from three to five years. Schedule of other property plant and equipment
|  | September 30, 2023 |  |  | December 31, 2022 |
Other property and equipment, at cost |  | $ | 2,795,308 |  |  | $ | 1,878,325 |
Less: Accumulated depreciation |  |  | (927,397 | ) |  |  | (436,796 | )
Other property and equipment, net |  | $ | 1,867,911 |  |  | $ | 1,441,529 |
Depreciation expense for the three months ended September 30, 2023 and 2022 was approximately $51,000 and $39,000, respectively. Depreciation expense for the nine months ended September 30, 2023 and 2022 was approximately $164,000 and $99,000, respectively.

X
- References No definition available. + Details
Name: | us-gaap_PropertyPlantAndEquipmentAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//360/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Section 50 -Paragraph 6 -SubTopic 360 -Topic 958 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480321/958-360-50-6 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d) -SubTopic 360 -Topic 958 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480321/958-360-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Section 50 -Paragraph 7 -SubTopic 360 -Topic 958 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480321/958-360-50-7 + Details
Name: | us-gaap_PropertyPlantAndEquipmentDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration