OIL AND NATURAL GAS PROPERTIES

9 Months Ended

Sep. 30, 2022

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES

NOTE 6—OIL AND NATURAL GAS PROPERTIES

Oil and natural gas properties consist of the following:

	September 30,		December 31,
	2022		2021
Oil and natural gas properties
Proved properties	$	1,156,149,642	$	1,051,111,311
Unevaluated properties		48,689,818		153,284,173
Less: accumulated depreciation, depletion and impairment		(696,086,227)		(663,603,142)
Total oil and natural gas properties	$	508,753,233	$	540,792,342

The Partnership assesses all unevaluated properties on a periodic basis for possible impairment. The Partnership assesses properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: economic and market conditions, operators’ intent to drill, remaining lease term, geological and geophysical evaluations, operators’ drilling results and activity, the assignment of proved reserves and the economic viability of operator development if proved reserves are assigned. Costs associated with unevaluated properties are excluded from the full cost pool until a determination as to the existence of proved reserves is able to be made. During any period in which these factors indicate an impairment, all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to amortization and to the full cost ceiling test.

After evaluating certain external factors in 2020, the Partnership determined that it did not have reasonable certainty as to the timing of the development of the proved undeveloped (“PUD”) reserves and, therefore did not book PUD reserves in its total estimated proved reserves as of September 30, 2022 or December 31, 2021 and it does not intend to book PUD reserves going forward.

The Partnership did not record an impairment on its oil and natural gas properties for the three or nine months ended September 30, 2022 or 2021.