OIL AND NATURAL GAS PRODUCTION ACTIVITIES	6 Months Ended
Jun. 30, 2022
Extractive Industries [Abstract]
OIL AND NATURAL GAS PRODUCTION ACTIVITIES	5. OIL AND NATURAL GAS PRODUCTION ACTIVITIES Divestitures During the six months ended June 30, 2022, the Company divested of the Wildhorse Waterflood Unit in Osage County, Oklahoma, which was part of the Acquired Assets acquired on January 5, 2022. Net proceeds from sale of the waterflood unit were $1.2 million. During the six months ended June 30, 2021, the Company sold approximately 12 acres of undeveloped acreage in Midland County, Texas for approximately $30 thousand. Ceiling Test and Impairment The Company did not record a ceiling test write-down of its oil and natural gas properties during the six months ended June 30, 2022 or 2021. The reserves used in the ceiling test incorporate assumptions regarding pricing and discount rates over which management has no influence in the determination of present value. In the calculation of the ceiling test as of June 30, 2022, the Company used $85.78 per barrel for oil and $5.13 per one million British Thermal Units (MMbtu) for natural gas (as further adjusted for property, specific gravity, quality, local markets and distance from markets) to compute the future cash flows of the Company’s producing properties. The discount factor used was 10%.

OIL AND NATURAL GAS PRODUCTION ACTIVITIES

6 Months Ended

Jun. 30, 2022

OIL AND NATURAL GAS PRODUCTION ACTIVITIES

5. OIL AND NATURAL GAS PRODUCTION ACTIVITIES

Divestitures

During the six months ended June 30, 2022, the Company divested of the Wildhorse Waterflood Unit in Osage County, Oklahoma, which was part of the Acquired Assets acquired on January 5, 2022. Net proceeds from sale of the waterflood unit were $1.2 million. During the six months ended June 30, 2021, the Company sold approximately 12 acres of undeveloped acreage in Midland County, Texas for approximately $30 thousand.

Ceiling Test and Impairment

The Company did not record a ceiling test write-down of its oil and natural gas properties during the six months ended June 30, 2022 or 2021. The reserves used in the ceiling test incorporate assumptions regarding pricing and discount rates over which management has no influence in the determination of present value. In the calculation of the ceiling test as of June 30, 2022, the Company used $85.78 per barrel for oil and $5.13 per one million British Thermal Units (MMbtu) for natural gas (as further adjusted for property, specific gravity, quality, local markets and distance from markets) to compute the future cash flows of the Company’s producing properties. The discount factor used was 10%.