Note 16 - Subsequent Events

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE

1

6

. Subsequent Events

The Company continues to monitor the impact of the COVID-

19

pandemic on all aspects of its business, including the disruption to oil demand throughout the world. The length of this demand disruption is unknown, and there is significant uncertainty regarding the long-term impact to global oil demand, which has negatively impacted the Company's results of operations and led to a significant reduction in the Company's

2020

capital activities.

The Company granted

62,500

shares of common stock to its outside board members (

12,500

shares to each board member) in

November 2020

that were fully vested upon grant as compensation for their services to the Company for the

first

year of their terms. Directors elected to have a portion of their annual retainer paid in cash. Compensation expense related to these awards will be recognized during the

fourth

quarter of

2020

at the closing stock price on the date of grant.

In

October 2020,

the Company paid

G4

Companies, LLC, a company wholly owned by a director of the Company,

$1.5

million for the design of a full scale model for a water recycle and purification treatment facility that the Company plans to construct in our development area to handle produced water in an environmentally friendly manner. Phase I and II water testing has already been completed to ascertain the viability of such a system. The timing of the construction of the facility is still under review and consideration.