OIL AND NATURAL GAS PROPERTIES	6 Months Ended
Mar. 31, 2020
Oil and Natural Gas Properties [Abstract]
OIL AND NATURAL GAS PROPERTIES	OIL AND NATURAL GAS PROPERTIES Dispositions In October 2019, Barnwell entered into a purchase and sale agreement with an independent third party and sold its interests in properties located in the Progress area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $594,000 in order to, among other things, reflect an economic effective date of October 1, 2019. The final determination of the customary adjustments to the purchase price has not yet been made however it is not expected to result in a material adjustment. The proceeds were credited to the full cost pool, with no gain or loss recognized, as the sale did not result in a significant alteration of the relationship between capitalized costs and proved reserves. There were no oil and natural gas property dispositions during the six months ended March 31, 2019. The $1,519,000 of proceeds from sale of oil and natural gas properties included in the Condensed Consolidated Statement of Cash Flows for the six months ended March 31, 2019 primarily represents the refund of income taxes previously withheld from what otherwise would have been proceeds on the previous years' oil and natural gas property sales. Acquisitions There were no significant amounts paid for oil and natural gas property acquisitions during the six months ended March 31, 2020. In the quarter ended December 31, 2018, Barnwell acquired additional working interests in oil and natural gas properties located in the Wood River and Twining areas of Alberta, Canada for cash consideration of $355,000. The purchase prices per the agreements were adjusted for customary purchase price adjustments to reflect the economic activity from the effective date to the closing date. The customary adjustments to the purchase prices were finalized during the quarter ended June 30, 2019 and resulted in an immaterial adjustment. There were no oil and natural gas property acquisitions during the quarter ended March 31, 2019. Impairment of Oil and Natural Gas Properties Under the full cost method of accounting, the Company performs quarterly oil and natural gas ceiling test calculations. Changes in the mandated 12-month historical rolling average first-day-of-the-month prices for oil, natural gas and natural gas liquids prices, the value of reserve additions as compared to the amount of capital expenditures to obtain them, and changes in production rates and estimated levels of reserves, future development costs and the estimated market value of unproved properties, impact the determination of the maximum carrying value of oil and natural gas properties. Prior to the three months ended March 31, 2020, the ceiling test calculation included management’s estimation that the Company had the ability to fund the approximately $12,000,000 of future capital expenditures necessary over the next five years to develop proved undeveloped reserves in the Twining area of Alberta, Canada. However, due to the impact on oil prices and the extreme uncertainties created by the COVID-19 pandemic during the three months ended March 31, 2020 on the Company's financial outlook, management is no longer reasonably certain that the Company will have the financial resources necessary to make any of the approximately $12,000,000 of capital expenditures necessary to develop the proved undeveloped reserves. Therefore, the proved undeveloped reserves have been excluded from the ceiling test calculation and the Company incurred a $1,637,000 ceiling test impairment in the three and six months ended March 31, 2020. As discussed above, the ceiling test mandates the use of the 12-month historical rolling average first-day-of-the-month prices. Given the recent decline in oil prices, current oil prices are now lower than the 12-month historical rolling average first-day-of-the-month oil price used in our ceiling test calculation for the quarter ended March 31, 2020. If oil prices remain at current levels or decline further, it is more likely than not that the Company will incur further impairment write-downs in future periods in the absence of any offsetting factors that are not currently known or projected, as the 12-month historical rolling average first-day-of-the-month oil prices used in our oil and natural gas ceiling test would continue to decline during each rolling quarterly period in 2020. Based on the oil prices for April 1 and May 1 and the estimated oil price for June 1 of 2020, oil prices are estimated to be approximately 65% lower than April 1, May 1, and June 1 of 2019 oil prices, which will result in an approximately 18% decrease in the 12-month historical rolling first-day-of-the-month average oil price for the quarter ending June 30, 2020. During the three and six months ended March 31, 2019, there was a $243,000 and $2,413,000 ceiling test impairment, respectively.

OIL AND NATURAL GAS PROPERTIES

Dispositions

In October 2019, Barnwell entered into a purchase and sale agreement with an independent third party and sold its interests in properties located in the Progress area of Alberta, Canada. The sales price per the agreement was adjusted for customary purchase price adjustments to $594,000 in order to, among other things, reflect an economic effective date of October 1, 2019. The final determination of the customary adjustments to the purchase price has not yet been made however it is not expected to result in a material adjustment. The proceeds were credited to the full cost pool, with no gain or loss recognized, as the sale did not result in a significant alteration of the relationship between capitalized costs and proved reserves.

There were no oil and natural gas property dispositions during the six months ended March 31, 2019. The $1,519,000 of proceeds from sale of oil and natural gas properties included in the Condensed Consolidated Statement of Cash Flows for the six months ended March 31, 2019 primarily represents the refund of income taxes previously withheld from what otherwise would have been proceeds on the previous years' oil and natural gas property sales.

Acquisitions

There were no significant amounts paid for oil and natural gas property acquisitions during the six months ended March 31, 2020.

In the quarter ended December 31, 2018, Barnwell acquired additional working interests in oil and natural gas properties located in the Wood River and Twining areas of Alberta, Canada for cash consideration of $355,000. The purchase prices per the agreements were adjusted for customary purchase price adjustments to reflect the economic activity from the effective date to the closing date. The customary adjustments to the purchase prices were finalized during the quarter ended June 30, 2019 and resulted in an immaterial adjustment.

There were no oil and natural gas property acquisitions during the quarter ended March 31, 2019.

Impairment of Oil and Natural Gas Properties

Under the full cost method of accounting, the Company performs quarterly oil and natural gas ceiling test calculations. Changes in the mandated 12-month historical rolling average first-day-of-the-month prices for oil, natural gas and natural gas liquids prices, the value of reserve additions as compared to the amount of capital expenditures to obtain them, and changes in production rates and estimated levels of reserves, future development costs and the estimated market value of unproved properties, impact the determination of the maximum carrying value of oil and natural gas properties.

Prior to the three months ended March 31, 2020, the ceiling test calculation included management’s estimation that the Company had the ability to fund the approximately $12,000,000 of future capital expenditures necessary over the next five years to develop proved undeveloped reserves in the Twining area of Alberta, Canada. However, due to the impact on oil prices and the extreme uncertainties created by the COVID-19 pandemic during the three months ended March 31, 2020 on the Company's financial outlook, management is no longer reasonably certain that the Company will have the financial resources necessary to make any of the approximately $12,000,000 of capital expenditures necessary to develop the proved undeveloped reserves. Therefore, the proved undeveloped reserves have been excluded from the ceiling test calculation and the Company incurred a $1,637,000 ceiling test impairment in the three and six months ended March 31, 2020.

As discussed above, the ceiling test mandates the use of the 12-month historical rolling average first-day-of-the-month prices. Given the recent decline in oil prices, current oil prices are now lower than the 12-month historical rolling average first-day-of-the-month oil price used in our ceiling test calculation for the quarter ended March 31, 2020. If oil prices remain at current levels or decline further, it is more likely than not that the Company will incur further impairment write-downs in future periods in the absence of any offsetting factors that are not currently known or projected, as the 12-month historical rolling average first-day-of-the-month oil prices used in our oil and natural gas ceiling test would continue to decline during each rolling quarterly period in 2020. Based on the oil prices for April 1 and May 1 and the estimated oil price for June 1 of 2020, oil prices are estimated to be approximately 65% lower than April 1, May 1, and June 1 of 2019 oil prices, which will result in an approximately 18% decrease in the 12-month historical rolling first-day-of-the-month average oil price for the quarter ending June 30, 2020.

During the three and six months ended March 31, 2019, there was a $243,000 and $2,413,000 ceiling test impairment, respectively.