Note 6 - Asset Retirement Obligations

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Asset Retirement Obligation Disclosure [Text Block]

Note

6

.

Asset Retirement Obligations

The Company's asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. Market risk premiums associated with asset retirement obligations are estimated to represent a component of the Company's credit-adjusted risk-free rate that is utilized in the calculations of asset retirement obligations.

Asset retirement obligations activity is as follows (in thousands):

	Successor			Predecessors
	August 22, 2020 through September 30, 2020			January 1, 2020 through August 21, 2020
Beginning asset retirement obligations	$	2,398		$	2,212
New wells placed on production		15			97
Liabilities settled		(29	)		-
Accretion of discount		15			89
Ending asset retirement obligations	$	2,399		$	2,398

As of

September 30, 2020

and

December 31, 2019,

all asset retirement obligations are considered noncurrent and classified as such in the accompanying consolidated balance sheet.