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OIL AND GAS PROPERTY, NET
 6 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Extractive Industries [Abstract]    
OIL AND GAS PROPERTY, NET

NOTE 5 – OIL AND GAS PROPERTY, NET

 

The following tables summarize the Company’s oil and gas activities by classification.

 

 

    June 30,
2021		     December 31,
2020		  
      (Unaudited)          
Oil and gas property – subject to amortization   $ 22,053,581     $ 20,912,041  
Accumulated depletion and impairment     (19,839,524 )     (19,573,054 )
Oil and gas property – subject to amortization, net   $ 2,214,057     $ 1,338,987  
                 
Oil and gas property – not subject to amortization   $ 1,129,500     $ 1,113,494  
Accumulated impairment     -       -  
Oil and gas property – not subject to amortization, net   $ 1,129,500     $ 1,113,494  

 

The following shows the movement of the oil and gas property – subject to amortization balance.

 

 

 

    Oil & Gas
Property – Kruh		  
December 31, 2020   $ 1,338,987  
Additional capitalization     1,141,540  
Depletion     (266,470 )
June 30, 2021 (Unaudited)   $ 2,214,057  

 

For the six months ended June 30, 2021, the Company incurred an aggregated development costs and abandonment and site restoration provisions, which were capitalized, at $1,141,540, mainly for the purpose of drilling 3 new wells at Kruh Block, geological and geophysical studies as well as development administration for these new wells.

 

Depletion recorded for production on properties subject to amortization for the six months ended June 30, 2021 and 2020, were $266,470 and $265,625, respectively.

 

Furthermore, for the six months ended June 30, 2021, the Company did not record any impairment to the oil and gas property according to the ceiling tests conducted, which showed that the present value of estimated future net revenues generated by the oil and gas property exceeded the carrying balances.

  

 

NOTE 6 – OIL AND GAS PROPERTY, NET

 

The following tables summarize the Company’s oil and gas activities by classification.

 

   2020   2019 
   As of December 31, 
   2020   2019 
Oil and gas property – subject to amortization  $20,912,041   $20,345,797 
Accumulated depletion and impairment   (19,573,054)   (18,918,311)
Oil and gas property – subject to amortization, net  $1,338,987   $1,427,486 
           
Oil and gas property – not subject to amortization  $1,113,494   $958,133 
Accumulated impairment   -    - 
Oil and gas property – not subject to amortization, net  $1,113,494   $958,133 

 

 

The following shows the movement of the oil and gas property – subject to amortization balance.

 

   Oil & Gas Property – Kruh 
January 1, 2018  $2,911,730 
Additional capitalization   166,871 
Depletion   (1,078,784)
January 1, 2019  $1,999,817 
Additional capitalization   245,202 
Depletion   (817,533)
December 31, 2019  $1,427,486 
Additional capitalization   566,244 
Depletion   (654,743)
December 31, 2020  $1,338,987 

 

During the years ended December 31, 2020, 2019, and 2018 the Company incurred an aggregated development costs and abandonment and site restoration provisions, which were capitalized, at $566,244, $245,202 and $166,871 respectively, mainly for the purpose of the geological and geophysical studies and drilling of wells.

 

Depletion recorded for production on properties subject to amortization for the years ended December 31, 2020, 2019 and 2018 were $654,743,$817,533 and $1,078,784 respectively.

 

Furthermore, the Company did not record any impairment to the Oil and gas property -Kruh Block Proven as a result of the ceiling tests conducted due to that the present value of estimated future net revenues generated by the Oil and gas property -Kruh Block Proven exceeded the carrying balances on the Consolidated Balance Sheets.