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Revenue From Lease of Mineral Interests
12 Months Ended
Dec. 31, 2018
Leases [Abstract]  
Revenue From Lease of Mineral Interests

NOTE 3 – REVENUE FROM LEASE OF MINERAL INTERESTS

 

The Company holds a 23.437% mineral interest in 2,485 gross acres in East Baton Rouge Parish, Louisiana. Out of that acreage, in 2018, the Company leased to an operator/lessee 743.94 acres. Under the terms of that lease, the Company received a lease bonus totaling $113,335 and a royalty of 22.5% gross, entitling the Company to a 5.27% net interest in all production from the acreage free of operating costs, other than production and ad valorem taxes. The lease bonus received was recorded as lease bonus revenue on the statement of operations when the drilling did not commence under the terms of the lease.