Note 7 - Asset Retirement Obligations

3 Months Ended

Mar. 31, 2021

Asset Retirement Obligation Disclosure [Text Block]

Note

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):

	Three Months Ended March 31,
	2021			2020
	Successor			Predecessor
Beginning asset retirement obligations	$	2,293		$	2,212
Liabilities incurred from new wells		163			97
Revision of estimates (a)		(10	)		-
Accretion of discount		35			34
Ending asset retirement obligations	$	2,481		$	2,343

(a) The revisions to the Company's asset retirement obligation estimates are primarily due to changes in estimated costs based on experience with the properties and their expected useful lives.

As of

March 31, 2021

and

December 31, 2020,

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