OIL AND NATURAL GAS PROPERTIES, NET

3 Months Ended

Mar. 31, 2023

Oil and Gas Property [Abstract]

OIL AND NATURAL GAS PROPERTIES, NET [Text Block]

4. OIL AND NATURAL GAS PROPERTIES, NET

The Company uses the full-cost method of accounting for its oil and natural gas properties. Under this method, the Company is required to perform a ceiling test each quarter, that determines a limit, or ceiling, on the net capitalized costs of oil and natural gas properties. For the three months ended March 31, 2023 and 2022, the Company’s full-cost ceiling exceeded the net capitalized costs less related deferred income taxes. As a result, the Company recorded no impairment to its net capitalized costs for those periods.

Further, during the three months ended March 31, 2023 and 2022, no unproved and unevaluated properties were impaired and transferred to be included in the depletion base as part of evaluated properties.