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Property
 6 Months Ended
Jun. 30, 2025
Property, Plant and Equipment [Abstract]  
Property

Note 3 – Property

  

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

 

   June 30,   December 31, 
   2025   2024 
         
Proved properties  $138,315   $134,239 
Unproved properties   3,913    3,858 
Work in process   1,780    2,578 
Gross capitalized costs   144,008    140,675 
Accumulated depletion, amortization and impairment   (36,583)   (31,974)
Total Oil and gas properties, net  $107,425   $108,701 

 

Depletion and amortization expense related to oil and gas properties for the three months ended June 30, 2025 and 2024, was approximately $2.5 million and $2.6 million, respectively. Depletion and amortization expense related to oil and gas properties for the six months ended June 30, 2025 and 2024, was approximately $4.6 million and $4.0 million, respectively.

 

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 six months ended June 30, 2025.

 

On April 9, 2024, Empire acquired 60% of certain New Mexico interests from Energy Evolution. As consideration, Empire issued Energy Evolution 600,000 shares of common stock of Empire based on an agreed upon price of $5.00 per share for an aggregate agreed upon value of $3.0 million. On August 8, 2024, Empire successfully extended its option to purchase the remaining interest with the issuance of 16,800 shares of common stock (the “Option Shares”) to Energy Evolution, and as such, Empire has the right to acquire the remaining interest for an exercise price of $2.0 million (the “Purchase Option”).

 

On May 1, 2025, the Company amended its ability to further extend the Purchase Option to allow for payment for such extension to be made in cash in lieu of the Option Shares, due and payable on or before September 30, 2025.

 

In April 2025, Empire disposed of certain non-core undeveloped leasehold rights held from a previous acquisition in Montana resulting in a gain on sale of approximately $0.2 million which is reflected within other income (expense) on the unaudited interim condensed consolidated statements of operations.

 

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 are as follows:

 

   June 30,   December 31, 
   2025   2024 
         
Other property and equipment, at cost  $3,770   $3,304 
Less: accumulated depreciation   (2,286)   (1,913)
Other property and equipment, net  $1,484   $1,391 

 

 

Depreciation expense related to other property and equipment for the three months ended June 30, 2025 and 2024, was approximately $0.1 million for both periods. Depreciation expense related to other property and equipment for the six months ended June 30, 2025 and 2024, was approximately $0.2 million and $0.1 million, respectively.