Note 8 - Asset Retirement Obligations

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Asset Retirement Obligation Disclosure [Text Block]

NOTE 8. 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, 2023
Beginning asset retirement obligations	$	7,502
Liabilities incurred from new wells		143
Accretion of discount		118
Ending asset retirement obligations	$	7,763

As of March 31, 2023 and December 31, 2022, all asset retirement obligations are considered noncurrent and classified as such in the accompanying consolidated balance sheets.