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Asset Retirement Obligations
 9 Months Ended
Sep. 30, 2024
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

Note 4 - Asset Retirement Obligations

 

Empire’s asset retirement obligations represent the estimated present value of the estimated cash flows Empire 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 Empire’s credit-adjusted risk-free rate that is utilized in the calculations of asset retirement obligations.

 

Empire’s asset retirement obligation activity is as follows:

           
   For the Nine Months Ended September 30, 
   2024   2023 
Asset retirement obligations, beginning of period  $28,168,427   $25,000,740 
Additions   876,955    72,000 
Liabilities settled   (864,138)   (910,967)
Revisions   —    2,303,939 
Accretion expense   1,486,929    1,277,140 
Asset retirement obligation, end of period  $29,668,173   $27,742,852 
Less current portion included in Accrued Expenses   700,000    — 
Asset retirement obligation, long-term  $28,968,173   $27,742,852 

 

The additions in 2024 primarily relate to the completion of new wells as part of Empire’s North Dakota Starbuck Drilling Program and additional working interest acquired in New Mexico (see Note 3).