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Asset Retirement Obligations
 9 Months Ended
Sep. 30, 2023
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

 Note 4 - 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:

 

Schedule of asset retirement activity  For the Nine Months Ended September 30, 
   2023   2022 
Asset retirement obligations, beginning of period  $25,000,740   $20,640,599 
Additions   72,000    233,659 
Liabilities settled   (910,967)   (160,958)
Revisions   2,303,939    — 
Accretion expense   1,277,140    1,009,107 
Asset retirement obligation, end of period  $27,742,852   $21,722,407 
           

 

The revisions in 2023 primarily reflect cost revision estimates to wells in New Mexico based on 2023 plugging activity.